| Accumulated Other Comprehensive (Loss) Income The components of, and changes in, accumulated other comprehensive income, net of tax, were as follows (in thousands): | | | | | | | Net Cash Flow Hedge Adjustments | Balance as of December 31, 2025 | $ | (3,352) | | | | | | | | | Net deferred gains/(losses) on cash flow hedges | 4,240 | | | Net deferred (losses)/gains on cash flow hedges reclassified to net income | (185) | | Balance as of June 30, 2026 | $ | 703 | | | | | | | |
| | | | | | | Net Cash Flow
Hedge Adjustments | Balance as of December 31, 2024 | $ | — | | | | | | | | | Net deferred (losses)/gains on cash flow hedges | (4,117) | | | Net deferred gains/(losses) on cash flow hedges reclassified to net income | 765 | | Balance as of December 31, 2025 | $ | (3,352) | | | | | | | |
The gross amount and related tax benefit/(expense) recorded in, and associated with, each component of other comprehensive income were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Three Months Ended June 30, 2025 | | Before Tax Amount | | Tax | | Net of Tax Amount | | Before Tax Amount | | Tax | | Net of Tax Amount | | Net deferred gains/(losses) on cash flow hedges | $ | 2,803 | | | $ | (688) | | | $ | 2,115 | | | $ | (3,203) | | | $ | 778 | | | $ | (2,425) | | | Net deferred (losses)/gains on cash flow hedges reclassified to net income | $ | (139) | | | $ | 35 | | | $ | (104) | | | $ | 376 | | | $ | (92) | | | $ | 284 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Six Months Ended June 30, 2025 | | Before Tax Amount | | Tax | | Net of Tax Amount | | Before Tax Amount | | Tax | | Net of Tax Amount | | Net deferred gains/(losses) on cash flow hedges | $ | 5,586 | | | $ | (1,346) | | | $ | 4,240 | | | $ | (5,614) | | | $ | 1,381 | | | $ | (4,233) | | | Net deferred (losses)/gains on cash flow hedges reclassified to net income | $ | (245) | | | $ | 60 | | | $ | (185) | | | $ | 491 | | | $ | (121) | | | $ | 370 | |
The amounts reclassified from accumulated other comprehensive income were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Accumulated Other Comprehensive Income (OCI) Component | Affected Line Item in the Statements of Income | | Reclassified from Accumulated OCI to Earnings | | (Losses)/gains on cash flow hedges: | | | | | | | | | | | Swap contract | Interest expense | | $ | (139) | | | $ | 376 | | | $ | (245) | | | $ | 491 | | Collar contract(1) | Interest expense | | — | | | — | | | — | | | — | | | (Losses)/gains on hedges before income taxes | | | $ | (139) | | | $ | 376 | | | $ | (245) | | | $ | 491 | | | Income tax benefit/(expense) | | | 35 | | | (92) | | | 60 | | | (121) | | | (Losses)/gains on hedges | | | $ | (104) | | | $ | 284 | | | $ | (185) | | | $ | 370 | |
_________________________________________(1) As of the reporting date, the 1-month Term SOFR remains within the specified cap strike and floor strike bands. Consequently, no amounts have been reclassified from OCI to earnings.
|