In the fourth quarter of 2023, the Company monetized the gain on the floating-to-fixed interest rate swap transaction (“Swap”) entered into in 2020 to effectively fix the interest rate on $450 million of its outstanding Term Loan through the Term Loan maturity date of July 2026.

The deferred gain on the termination of the Swap is being amortized on a straight-line basis through July 1, 2026 and is included in interest expense and other financing costs on the unaudited Condensed Consolidated Statements of Operations. As of September 30, 2024 and December 31, 2023, the unamortized deferred gain on Swap monetization was $29.1 million and $41.6 million, respectively, before tax.

The Swap was designated as a cash flow hedge. Prior to its termination, the Swap was measured at fair value with mark-to-market gains or losses deferred and included in AOCI(L), net of tax, to the extent the hedge was determined to be effective. Gains or losses were reclassified to interest expenses and other financing costs on the unaudited Condensed Consolidated Statements of Operations in the same period during which the hedged transaction affected earnings.

The following tables summarize the classification of the Swap in our consolidated financial statements (in thousands):


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Statement of Operations	Description	2024		2023		2024		2023
Interest expense and other financing costs	Reclassification from AOCI - Swap income	$	—	$	5,116	$	—	$	14,005
Interest expense and other financing costs	Reclassification from AOCI - Amortization of Swap deferred gain		4,200		—		12,509		—
Total		$	4,200	$	5,116	$	12,509	$	14,005


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
Statements of Comprehensive Income	Description	2024			2023			2024			2023
Other comprehensive income (loss)	Loss recognized in AOCI(L), net of tax	$	—		$	(56	)	$	—		$	(1,225	)
Other comprehensive income (loss)	Amortization of deferred gain on terminated Swap, net of tax		(3,174	)		—			(9,452	)		—
Total		$	(3,174	)	$	(56	)	$	(9,452	)	$	(1,225	)