v3.25.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company is exposed to interest risk on its floating rate debt. On September 12, 2023, the Company entered into interest rate swap agreements with a total notional value of $800 million to effectively convert a portion of its floating rate debt to a fixed-rate basis. The interest rate swap agreements are effective August 31, 2023 and mature on August 31, 2026. The Company entered into these agreements to reduce the volatility of the cash flows in interest payments associated with the Company's floating rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company's interest rate swaps are highly effective at offsetting the changes in cash outflows and therefore designated as cash flow hedging instruments.
The Company records derivatives on the balance sheet at fair value, as described in Note 6 Fair Value Measurements. The gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings.
The following table represents the activity of cash flow hedges included in accumulated other comprehensive loss for the periods presented:
(in thousands) 20252024
Balance as of December 31, net of tax (Prior Year)$(5,063)$(11,778)
Unrealized (loss) gain recognized in other comprehensive income before reclassifications$(1,330)$6,963 
Reclassifications to interest expense$(294)$1,579 
Balance as of March 31, net of tax$(6,687)$(3,236)
Unrealized gain recognized in other comprehensive income before reclassifications$1,009 $593 
Reclassifications to interest expense$(256)$1,522 
Balance as of June 30, net of tax$(5,934)$(1,121)
The Company recognized a loss related to the cash flow derivatives of $0.3 million and $0.6 million during the three and six months ended June 30, 2025, and a gain of $1.5 million and $3.1 million during the three and six months ended June 30, 2024, respectively. The gains and losses are recognized within interest expense in the accompanying unaudited condensed consolidated statements of loss and comprehensive loss.
The following table represents the fair value of derivative assets and liabilities within the unaudited condensed consolidated balance sheets:
(in thousands)
Fair Value at June 30, 2025
Fair Value at December 31, 2024
Derivatives designated as cash flow hedging instruments:
Other accrued expenses
$5,400 $3,115 
Other liabilities$2,584 $3,599