v3.25.2
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

NOTE 12 – Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity includes certain items classified as accumulated other comprehensive income (loss) (“AOCI”) in the Condensed Consolidated Balance Sheets, including:

•
Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone denominated variable rate debt. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 11 – “Derivative Financial Instruments” and Note 15 – “Fair Value Measurements”.
•
Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense).
•
Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive earnings (loss).

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction gains for the three and six months ended June 30, 2025 were $770 and $1,304, respectively. Transaction losses for the three and six months ended June 30, 2024 were $629 and $2,136, respectively. The impact of these changes are included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2025, are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

March 31,

 

 

Recognized

 

 

from AOCI

 

 

June 30,

 

 

 

2025

 

 

in OCI

 

 

to Earnings

 

 

2025

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(585

)

 

$

3,410

 

 

$

311

 

 

$

3,136

 

Income tax benefit (expense)

 

 

128

 

 

 

(801

)

 

 

(73

)

 

 

(746

)

Net

 

 

(457

)

 

 

2,609

 

 

 

238

 

 

 

2,390

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(395

)

 

 

—

 

 

 

(128

)

 

 

(523

)

Income tax benefit (expense)

 

 

300

 

 

 

—

 

 

 

5

 

 

 

305

 

Net

 

 

(95

)

 

 

—

 

 

 

(123

)

 

 

(218

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

1,824

 

 

 

8,024

 

 

 

—

 

 

 

9,848

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

1,824

 

 

 

8,024

 

 

 

—

 

 

 

9,848

 

Total accumulated other comprehensive (loss) income

 

$

1,272

 

 

$

10,633

 

 

$

115

 

 

$

12,020

 

 

The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2024 are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

March 31,

 

 

Recognized

 

 

from AOCI

 

 

June 30,

 

 

 

2024

 

 

in OCI

 

 

to Earnings

 

 

2024

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

4,201

 

 

$

(1,350

)

 

$

(825

)

 

$

2,026

 

Income tax (expense) benefit

 

 

(967

)

 

 

310

 

 

 

190

 

 

 

(467

)

Net

 

 

3,234

 

 

 

(1,040

)

 

 

(635

)

 

 

1,559

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(1,057

)

 

 

—

 

 

 

40

 

 

 

(1,017

)

Income tax benefit (expense)

 

 

437

 

 

 

—

 

 

 

(5

)

 

 

432

 

Net

 

 

(620

)

 

 

—

 

 

 

35

 

 

 

(585

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

324

 

 

 

(523

)

 

 

—

 

 

 

(199

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

324

 

 

 

(523

)

 

 

—

 

 

 

(199

)

Total accumulated other comprehensive income (loss)

 

$

2,938

 

 

$

(1,563

)

 

$

(600

)

 

$

775

 

 

 

The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2025 are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

June 30,

 

 

 

2024

 

 

in OCI

 

 

to Earnings

 

 

2025

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(1,730

)

 

$

4,118

 

 

$

748

 

 

$

3,136

 

Income tax benefit (expense)

 

 

397

 

 

 

(968

)

 

 

(175

)

 

 

(746

)

Net

 

 

(1,333

)

 

 

3,150

 

 

 

573

 

 

 

2,390

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(409

)

 

 

—

 

 

 

(114

)

 

 

(523

)

Income tax benefit (expense)

 

 

300

 

 

 

—

 

 

 

5

 

 

 

305

 

Net

 

 

(109

)

 

 

—

 

 

 

(109

)

 

 

(218

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,824

)

 

 

12,672

 

 

 

—

 

 

 

9,848

 

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,824

)

 

 

12,672

 

 

 

—

 

 

 

9,848

 

Total accumulated other comprehensive (loss) income

 

$

(4,266

)

 

$

15,822

 

 

$

464

 

 

$

12,020

 

 

The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2024 are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

June 30,

 

 

 

2023

 

 

in OCI

 

 

to Earnings

 

 

2024

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

3,252

 

 

$

788

 

 

$

(2,014

)

 

$

2,026

 

Income tax benefit (expense)

 

 

(749

)

 

 

(181

)

 

 

463

 

 

 

(467

)

Net

 

 

2,503

 

 

 

607

 

 

 

(1,551

)

 

 

1,559

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(1,126

)

 

 

—

 

 

 

109

 

 

 

(1,017

)

Income tax benefit (expense)

 

 

442

 

 

 

—

 

 

 

(10

)

 

 

432

 

Net

 

 

(684

)

 

 

—

 

 

 

99

 

 

 

(585

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

2,445

 

 

 

(2,644

)

 

 

—

 

 

 

(199

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

2,445

 

 

 

(2,644

)

 

 

—

 

 

 

(199

)

Total accumulated other comprehensive (loss) income

 

$

4,264

 

 

$

(2,037

)

 

$

(1,452

)

 

$

775