v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Tables)
3 Months Ended
Mar. 31, 2026
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract]  
Fair Value, by Balance Sheet Grouping

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:

(Dollars in thousands)

March 31, 2026

December 31, 2025

Fair Value Level

Cash and cash equivalents

$

141,847

$

116,922

Level 1

Short-term investments

235,000

50,000

Level 1

2030 Bonds

(253,130)

(249,748)

Level 1

ECA Credit Facility(1)

(123,079)

(81,494)

Level 2

BoComm Lease Financing (2)

(171,114)

(174,713)

Level 2

Toshin Lease Financing (2)

(9,752)

(10,151)

Level 2

Hyuga Lease Financing (2)

(9,642)

(10,164)

Level 2

Kaiyo Lease Financing (2)

(8,508)

(9,485)

Level 2

Kaisha Lease Financing (2)

(8,499)

(8,921)

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.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

(Dollars in thousands)

Current portion of derivative asset

Long-term derivative
assets

Other
receivables

March 31, 2026:

Derivatives designated as hedging instruments:

Interest rate swaps

$

317

$

$

82

Total

$

317

$

$

82

December 31, 2025:

Derivatives designated as hedging instruments:

Interest rate swaps

$

406

$

5

$

139

Total

$

406

$

5

$

139

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Loss

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:

Three Months Ended March 31,

(Dollars in thousands)

2026

2025

Derivatives designated as hedging instruments:

Interest rate swaps

$

132

$

(181)

Total other comprehensive income/(loss)

$

132

$

(181)

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:

Three Months Ended March 31,

(Dollars in thousands)

2026

2025

Derivatives designated as hedging instruments:

Interest rate swaps

$

(226)

$

(815)

Discontinued hedging instruments:

Interest rate swap

(249)

219

Total interest expense

$

(475)

$

(596)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

(Dollars in thousands)

March 31, 2026

December 31, 2025

Fair Value Level

Derivative Assets (interest rate swaps)

$

399

$

550

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.
Summary the fair values of net assets acquired in business combinations

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

(Dollars in thousands)

Fair Value

Level 1

Level 2

Previously held equity interest(1)

$

5,000

$

$

5,000

Identifiable net assets acquired in business combination(2)

2,376

507

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.