DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY	12 Months Ended
Dec. 31, 2020
DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY
DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY	4. DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY In December 2018, we refinanced our previous Credit Agreement and, at the same time, entered into an interest rate swap, which was considered a derivative financial instrument, with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying our Term Loan. In February 2019, we entered into an interest rate swap, which was considered a derivative financial instrument, with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying our DDTL. The hedges had been designated as effective cash flow hedges and qualified for hedge accounting. The interest rate swaps related to the Term Loan and DDTL had a weighted average fixed rate of 2.60% and 2.47%, respectively, with a maturity in December 2023. In April 2020, we terminated the remaining $184.2 million notional value of these interest rate swaps. We discontinued hedge accounting for these instruments and are recognizing the net loss in accumulated other comprehensive loss of $13.2 million to interest expense over the remaining terms through December 2023. At the same time in April 2020, we entered into an interest rate swap with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying total borrowings under our Term Loan and DDTL. The interest rate swap matures in December 2026. As of December 31, 2020, the notional amount of the interest rate swap was $179.4 million and decreases in line with maturities of our Term Loan and DDTL until December 2023, after which it remains static until maturity in 2026. The interest rate swap provides an effective fixed interest rate of 1.99% throughout the term of our Term Loan and DDTL and has been designated as an effective cash flow hedge and therefore qualifies for hedge accounting. As of December 31, 2020, the fair value of the interest rate swap liability recorded in derivatives and other non-current liabilities in the accompanying consolidated balance sheets was $14.1 million. As of December 31, 2020, $11.4 million was recorded in accumulated other comprehensive loss, net of tax in the accompanying consolidated balance sheets. During the year ended December 31, 2020, the change in fair value of the interest rate swaps was $9.2 million. During the year ended December 31, 2020, losses on the interest rate swap of $6.6 million were recorded in accumulated other comprehensive loss, net of tax in our consolidated statements of comprehensive (loss)/income. Differences between the hedged LIBOR rate and the fixed rate are recorded as interest expense in the same period that the related interest is recorded for the Term Loan and DDTL based on the LIBOR rate. In the year ended December 31, 2020, $3.9 million of interest expense was recognized in relation to the interest rate swaps.

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

12 Months Ended

Dec. 31, 2020

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

4. DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

In December 2018, we refinanced our previous Credit Agreement and, at the same time, entered into an interest rate swap, which was considered a derivative financial instrument, with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying our Term Loan. In February 2019, we entered into an interest rate swap, which was considered a derivative financial instrument, with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying our DDTL. The hedges had been designated as effective cash flow hedges and qualified for hedge accounting. The interest rate swaps related to the Term Loan and DDTL had a weighted average fixed rate of 2.60% and 2.47%, respectively, with a maturity in December 2023. In April 2020, we terminated the remaining $184.2 million notional value of these interest rate swaps. We discontinued hedge accounting for these instruments and are recognizing the net loss in accumulated other comprehensive loss of $13.2 million to interest expense over the remaining terms through December 2023.

At the same time in April 2020, we entered into an interest rate swap with Citizens Bank, N.A. to manage our exposure to changes in LIBOR-based interest rates underlying total borrowings under our Term Loan and DDTL. The interest rate swap matures in December 2026. As of December 31, 2020, the notional amount of the interest rate swap was $179.4 million and decreases in line with maturities of our Term Loan and DDTL until December 2023, after which it remains static until maturity in 2026. The interest rate swap provides an effective fixed interest rate of 1.99% throughout the term of our Term Loan and DDTL and has been designated as an effective cash flow hedge and therefore qualifies for hedge accounting. As of December 31, 2020, the fair value of the interest rate swap liability recorded in derivatives and other non-current liabilities in the accompanying consolidated balance sheets was $14.1 million. As of December 31, 2020, $11.4 million was recorded in accumulated other comprehensive loss, net of tax in the accompanying consolidated balance sheets.

During the year ended December 31, 2020, the change in fair value of the interest rate swaps was $9.2 million. During the year ended December 31, 2020, losses on the interest rate swap of $6.6 million were recorded in accumulated other comprehensive loss, net of tax in our consolidated statements of comprehensive (loss)/income. Differences between the hedged LIBOR rate and the fixed rate are recorded as interest expense in the same period that the related interest is recorded for the Term Loan and DDTL based on the LIBOR rate. In the year ended December 31, 2020, $3.9 million of interest expense was recognized in relation to the interest rate swaps.