v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company uses derivative instruments to manage its exposure to variable-rate debt indexed to 1-month Term Secured Overnight Financing Rate (“Term SOFR”), issued under its Tranche B-1 Term Loans drawn from the Company’s Credit Agreement.
Derivative
Certain information related to our derivatives contracts is presented below (in thousands):
Effective DateNotional AmountFixed RateCapFloorIndexActual Termination Date
Swap contracts3/3/2025$300,000 3.829 %USD-SOFR rate2/29/2028
Collar contracts3/3/2025$300,000 — 4.500 %3.001 %USD-SOFR rate2/29/2028
Cash Flow Hedge Coverage
The Company has entered into interest rate swap and collar agreements designated as cash flow hedges. These agreements are used to manage interest rate risk associated with a portion of the Company’s floating-rate debt for periods through February 2028.
Deferred Hedging Gains and Losses on Cash Flow Hedges
Based on our valuation at June 30, 2026 and assuming market rates remain constant through contract maturities, we expect transfers to earnings of the existing gains or losses reported in accumulated other comprehensive income on interest rate cash flow hedges during the next 12 months to correspond to the current assets and liabilities portion of the derivative as disclosed in Note 8—“Fair Value of Financial Instruments”.
Derivative Impact on the Statements of Comprehensive Income
The following table presents the pre-tax amounts of derivative gains or losses deferred into accumulated other comprehensive income and the income statement line item that will be affected when reclassified to earnings (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Accumulated Other Comprehensive Income Component (OCI)
Location of Gains/(Losses) When Reclassified to Net Income/(Loss)
Gains/(Losses) Recognized in OCI Related to Derivatives Designated as Hedging Instruments
Cash flow hedges:
Swap contractsInterest expense$1,878 $(1,871)$4,108 $(3,283)
Collar contractsInterest expense786 (956)1,233 (1,840)
Total gains/(losses) recognized in statements of comprehensive income
$2,664 $(2,827)$5,341 $(5,123)
Derivative Impact on the Statements of Income
The following table presents the pre-tax amounts of derivative gains or (losses) recorded to earnings and the affected income statement line items (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest expense
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded
(Losses)/gains related to derivatives designated as hedging instruments:
Cash flow hedges(1):
Swap contracts
$(139)$376 $(245)$491 
Collar contracts(2)
— — — — 
Total (losses)/gains recognized in statements of income
$(139)$376 $(245)$491 
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(1)    Represents the pre-tax amounts of derivative gains/(losses) reclassified from accumulated other comprehensive income to earnings.
(2)    As of the reporting date, the 1-month Term SOFR remains within the specified cap strike and floor strike bands. Consequently, there are no payments required to be exchanged under this agreement.