v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES
 3 Months Ended
Mar. 31, 2026
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES

Note 9 — Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures:

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The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:

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(Dollars in thousands)

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March 31, 2026

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December 31, 2025

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Fair Value Level

Cash and cash equivalents

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$

141,847

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$

116,922

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Level 1

Short-term investments

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​

235,000

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​

50,000

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Level 1

2030 Bonds

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​

(253,130)

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​

(249,748)

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Level 1

ECA Credit Facility(1)

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​

(123,079)

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​

(81,494)

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Level 2

BoComm Lease Financing (2)

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(171,114)

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​

(174,713)

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​

Level 2

Toshin Lease Financing (2)

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​

(9,752)

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​

(10,151)

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Level 2

Hyuga Lease Financing (2)

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(9,642)

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​

(10,164)

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Level 2

Kaiyo Lease Financing (2)

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​

(8,508)

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(9,485)

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Level 2

Kaisha Lease Financing (2)

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(8,499)

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(8,921)

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Level 2

(1)Floating rate debt – the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears a variable interest rate, which is reset every three or six months (the Company’s current reset election is three months).
(2)Fixed rate debt – the fair value of fixed rate debt has been determined using level 2 inputs by discounting the expected cash flows of the outstanding debt.

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Derivatives

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At March 31, 2026, the Company was party to amortizing interest rate swap agreements with major financial institutions participating in the $500 Million Revolving Credit Facility that effectively convert the Company’s interest rate exposure from a three-month SOFR floating rate to a fixed rate of 2.84% through the maturity date of February 22, 2027. The interest rate swap agreements, which contain no leverage features, are designated and qualify as cash flow hedges and have a remaining aggregate notional value of $91.1 million as of March 31, 2026, covering for accounting purposes, $91.1 million of debt outstanding under the ECA Credit Facility. Also, as of March 31, 2026, approximately $0.9 million in gain from previously terminated interest rate swaps is expected to be amortized out of accumulated other comprehensive loss to earnings over the next 12 months.

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Derivatives are recorded on a net basis by counterparty when a legal right of offset exists. The Company had the following amounts recorded on a net basis by transaction in the accompanying unaudited condensed consolidated balance sheets related to the Company’s use of derivatives as of March 31, 2026 and December 31, 2025:

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(Dollars in thousands)

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Current portion of derivative asset

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Long-term derivative
assets

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Other
receivables

March 31, 2026:

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Derivatives designated as hedging instruments:

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Interest rate swaps

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$

317

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$

—

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$

82

Total

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$

317

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$

—

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$

82

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​

​

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December 31, 2025:

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​

​

​

​

​

​

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Derivatives designated as hedging instruments:

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​

​

​

​

​

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Interest rate swaps

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$

406

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$

5

​

$

139

Total

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$

406

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$

5

​

$

139

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The following tables present information with respect to gains and losses on derivative positions reflected in the condensed consolidated statements of operations or in the condensed consolidated statements of comprehensive income.

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The effect of cash flow hedging relationships recognized in other comprehensive income/(loss) excluding amounts reclassified from accumulated other comprehensive income for the three months ended March 31, 2026 and 2025 follows:

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Three Months Ended March 31,

(Dollars in thousands)

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2026

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2025

Derivatives designated as hedging instruments:

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​

​

​

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Interest rate swaps

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$

132

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$

(181)

Total other comprehensive income/(loss)

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$

132

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$

(181)

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The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three months ended March 31, 2026 and 2025 follows:

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Three Months Ended March 31,

(Dollars in thousands)

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2026

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2025

Derivatives designated as hedging instruments:

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​

​

​

​

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Interest rate swaps

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$

(226)

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$

(815)

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​

​

​

​

​

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Discontinued hedging instruments:

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​

​

​

​

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Interest rate swap

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​

(249)

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​

219

Total interest expense

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$

(475)

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$

(596)

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See Note 12, “Accumulated Other Comprehensive Loss,” for disclosures relating to the impact of derivative instruments on accumulated other comprehensive income/(loss).

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The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis:

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(Dollars in thousands)

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March 31, 2026

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December 31, 2025

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Fair Value Level

Derivative Assets (interest rate swaps)

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$

399

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$

550

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Level 2(1)

(1)For the interest rate swaps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company.

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The following table summarizes the fair values of net assets acquired in business combinations during the first quarter of 2026:

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(Dollars in thousands)

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Fair Value

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Level 1

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Level 2

Previously held equity interest(1)

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$

5,000

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$

—

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$

5,000

Identifiable net assets acquired in business combination(2)

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2,376

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​

507

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1,869

(1) The fair value attributed to the previously held equity interest was derived from the consideration transferred in the transaction

(2) Identifiable net assets acquired primarily consisted of working capital, including $0.5 million of cash and cash equivalents.

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