v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Risk Management Objective of Using Derivatives
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps
as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.
For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.
In February 2026, the Company terminated three interest rate swaps with a total notional value of $400.0 million that were set to mature in 2026 and 2027. The Company entered into two new interest rate swaps with a total notional value of $400.0 million, at a strike price of 3.32%, that mature in January 2029. In May 2026, the Company had four interest rate swaps with a total notional value of $100.0 million mature.
As of June 30, 2026, the Company had two outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk for a total notional value of $400 million at a rate of 3.32%.
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet
The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2026 and December 31, 2025.
AS OF JUNE 30, 2026AS OF DECEMBER 31, 2025
In thousandsBALANCE SHEET LOCATIONFAIR VALUEBALANCE SHEET LOCATIONFAIR VALUE
Interest rate swaps 2019Other Assets$— Other Assets$488 
Interest rate swaps 2022Other Liabilities— Other Liabilities(3,928)
Interest rate swaps 2026Other Assets5,683 Other Assets— 
Total derivatives designated as hedging instruments$5,683 $(3,440)

Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss)
The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2026 and 2025 related to the Company's outstanding interest rate swaps.
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
three months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
three months ended June 30,
In thousands2026202520262025
Interest rate swaps$(3,789)$1,028 Interest expense$(333)$(1,098)
Settled treasury hedges— — Interest expense107 107 
Settled interest rate swaps— — Interest expense505 11 
 $(3,789)$1,028 Total$279 $(980)
(GAIN)/LOSS RECOGNIZED IN
AOCI ON DERIVATIVE
six months ended June 30,		(GAIN)/LOSS RECLASSIFIED FROM
AOCI INTO INCOME
six months ended June 30,
In thousands2026202520262025
Interest rate swaps$(6,175)$6,206 Interest expense$(493)$(2,188)
Settled treasury hedges— — Interest expense213 214 
Settled interest rate swaps(391)— Interest expense581 53 
 $(6,566)$6,206 Total $301 $(1,921)
The Company estimates that an additional $0.1 million will be reclassified from accumulated other comprehensive loss as a net increase to interest expense over the next 12 months.
Credit-risk-related Contingent Features
The Company has agreements with each of its derivative counterparties providing that if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.
As of June 30, 2026, the Company did not have any derivatives in a net liability position including accrued interest. As of June 30, 2026, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions.