DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY	12 Months Ended
Dec. 31, 2021
DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY
DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY	4. DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY 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 term facilities related to our Prior Credit Agreement. The interest rate swap matures in December 2026. Concurrent with the termination of the Prior Credit Agreement and entry into the Credit Agreement with Truist Bank, the interest rate swap with a notional value of $168.6 million was novated and Truist Bank is the new counterparty. The swap is used to manage changes in LIBOR-based interest rates underlying a portion of the borrowing under the Term Facility. The interest rate swap provides an effective fixed interest rate of 2.26% and has been designated as an effective cash flow hedge and therefore qualifies for hedge accounting. As of December 31, 2021, the notional amount of the interest rate swap was $165.8 million and decreases quarterly by approximately $4.0 million until December 2023, after which it remains static until maturity in December 2026. As of December 31, 2021, the fair value of the interest rate swap liability recorded in derivatives and other non-current liabilities in the consolidated balance sheets was $6.8 million. As of December 31, 2021, $3.1 million was recorded in accumulated other comprehensive loss, net of tax in the consolidated balance sheets. During the year ended December 31, 2021, the change in fair value of the interest rate swaps was a gain of $5.4 million. During the year ended December 31, 2021, gains on the interest rate swap of $8.4 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 Facility based on the LIBOR rate. In the year ended December 31, 2021 and 2020, $4.8 million and $3.9 million, respectively, of interest expense was recognized in relation to the interest rate swaps. Included in these amounts for the years ended December 31, 2021 and 2020 are reclassifications out of accumulated other comprehensive income/loss of $3.5 million and $2.5 million in expense, respectively, related to terminated and de-designated cash flow hedges.

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

4. DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY

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 term facilities related to our Prior Credit Agreement. The interest rate swap matures in December 2026. Concurrent with the termination of the Prior Credit Agreement and entry into the Credit Agreement with Truist Bank, the interest rate swap with a notional value of $168.6 million was novated and Truist Bank is the new counterparty. The swap is used to manage changes in LIBOR-based interest rates underlying a portion of the borrowing under the Term Facility. The interest rate swap provides an effective fixed interest rate of 2.26% and has been designated as an effective cash flow hedge and therefore qualifies for hedge accounting. As of December 31, 2021, the notional amount of the interest rate swap was $165.8 million and decreases quarterly by approximately $4.0 million until December 2023, after which it remains static until maturity in December 2026. As of December 31, 2021, the fair value of the interest rate swap liability recorded in derivatives and other non-current liabilities in the consolidated balance sheets was $6.8 million. As of December 31, 2021, $3.1 million was recorded in accumulated other comprehensive loss, net of tax in the consolidated balance sheets.

During the year ended December 31, 2021, the change in fair value of the interest rate swaps was a gain of $5.4 million. During the year ended December 31, 2021, gains on the interest rate swap of $8.4 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 Facility based on the LIBOR rate. In the year ended December 31, 2021 and 2020, $4.8 million and $3.9 million, respectively, of interest expense was recognized in relation to the interest rate swaps. Included in these amounts for the years ended December 31, 2021 and 2020 are reclassifications out of accumulated other comprehensive income/loss of $3.5 million and $2.5 million in expense, respectively, related to terminated and de-designated cash flow hedges.