v3.25.2
Derivative Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company is exposed to interest rate risk related to its variable-rate interest debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk.
Cash Flow Hedges of Interest Rate Risk
As of June 30, 2025, the Company had three interest rate swap agreements, all three of which were designated as cash flow hedges. The key terms are as follows (dollars in thousands):

EffectiveMaturityFixed InterestNotional Amount atAsset (Liability) Fair Value at
DateDateRateJune 30, 2025June 30, 2025December 31, 2024
Interest Rate Swap Agreements
4/7/20168/1/20293.14%$49,942 $2,785 $4,310 
5/1/202412/9/20314.88%$57,000 $(578)$1,254 
12/9/202412/9/20314.83%$73,000 $(524)$1,814 
The asset and liabilities related to the interest rate swaps as of June 30, 2025, are presented within Prepaid expenses and other assets and Accrued and other liabilities, respectively, in the condensed consolidated balance sheets. The assets related to the interest rate swaps as of December 31, 2024, are presented within Prepaid expenses and other assets in the condensed consolidated balance sheets. Changes in fair value of designated cash flow hedges are recorded in Accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related variable-rate debt. Changes in fair value of undesignated cash flow hedges, including de-designated hedges, are recorded in Interest and other income (expense), net.
Statement of Comprehensive Income (Loss) Derivative Instruments Impact
The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statements of comprehensive income (loss) (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Information regarding derivatives designated as hedging instruments
Amount of gain (loss) recognized in OCI on derivatives$(1,472)$1,698 $(4,555)$2,900 
Impact of reclassification adjustment to interest expense included in Net Income (Loss)$(530)$(469)$(1,075)$(942)

As of June 30, 2025, the Company expects to reclassify $0.1 million of gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months.