Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Financial Instruments [Abstract]

Company's Derivative Instruments

At June 30, 2026, the Company’s derivative instruments included one interest rate swap agreement as follows:


					Fixed		Variable
		Notional			Interest		Interest Rate
Date Entered		Amount			Rate Paid ^(a)		Received		Effective Date ^(b)		Expiration Date
December 2018		$	200,000		2.7715	%	1-month term SOFR		November 2022		July 2027

(a)

Plus applicable margin.

(b)

In October 2022, the Company amended the reference rate in its outstanding interest rate swap contract to replace One-Month LIBOR with One-Month term SOFR and certain credit spread adjustments. The Company did not record any gains or losses upon the conversion of the reference rates in this interest rate swap contract, and the Company believes this amendment will not have a material impact on its Condensed Consolidated Financial Statements.

Fair Value of Derivative Instrument Designated as Cash Flow Hedges

The fair values of derivative instruments designated as cash flow hedges at June 30, 2026, were as follows:


Derivatives Designated as Cash		Asset Derivatives					Liability Derivatives
Flow Hedges		Balance Sheet Location		Fair Value			Balance Sheet Location		Fair Value
Interest rate swaps		Prepaid expenses and other current assets^(a)		$	2,344		Accrued liabilities		$	—
		Other assets, net			81
Total derivatives designated as cash flow hedges				$	2,425				$	—

(a)

Represents the estimated amount of the existing unrealized gains on interest rate swaps at June 30, 2026 (based on the interest rate yield curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in interest rates.

The fair values of derivative instruments designated as cash flow hedges at December 31, 2025, were as follows:


Derivatives Designated as Cash		Asset Derivatives					Liability Derivatives
Flow Hedges		Balance Sheet Location		Fair Value			Balance Sheet Location		Fair Value
Interest rate swaps		Prepaid expenses and other current assets		$	1,272		Accrued liabilities		$	—
		Other assets, net			446
Total derivatives designated as cash flow hedges				$	1,718				$	—

Impact of Cash Flow Hedges on Results of Operations, Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following tables summarize the impact of the Company’s cash flow hedges on the results of operations, comprehensive income (loss) and AOCIL for the three and six months ended June 30, 2026 and 2025:

Derivatives

Statement of

Amount of (Gain) or Loss Reclassified

Designated as Cash

Amount of Gain or (Loss) Recognized

Net Income

from AOCIL into Earnings,

Flow Hedges

as AOCIL on Derivatives, Net of Tax ^(a)

Classification

Net of Tax ^(b)

Three Months Ended

Three Months Ended

June 30,

June 30,

 

2026

 

2025

 

 

2026

 

2025

Interest rate swaps

$

455

$

87

Interest expense

$

(325)

$

(2,499)

Derivatives

Statement of

Amount of (Gain) or Loss Reclassified

Designated as Cash

Amount of Gain or (Loss) Recognized

Net Income

from AOCIL into Earnings,

Flow Hedges

 

as AOCIL on Derivatives, Net of Tax ^(a)

Classification

Net of Tax ^(b)

Six Months Ended

Six Months Ended

June 30,

June 30,

 

2026

 

2025

 

 

2026

 

2025

Interest rate swaps

$

1,174

$

(756)

Interest expense

$

(655)

$

(4,942)

(a)

In accordance with the derivatives and hedging guidance, the changes in fair values of interest rate swaps have been recorded in equity as a component of AOCIL. As the critical terms of the interest rate swaps match the underlying debt being hedged, all unrealized changes in fair value are recorded in AOCIL.

(b)

Amounts reclassified from AOCIL into earnings related to realized gains and losses on interest rate swaps are recognized when interest payments or receipts occur related to the swap contracts, which correspond to when interest payments are made on the Company’s hedged debt.