DERIVATIVE INSTRUMENTS |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | NOTE 4 – DERIVATIVE INSTRUMENTS The Company has entered into derivative instruments intended to manage its exposure to variable-rate debt indexed to Daily Compounded SOFR, issued under its loans drawn from the Granite Credit Agreement dated March 6, 2026. These interest rate swaps become effective in January 2027 and, accordingly, did not provide any hedge of the Company’s interest rate exposure during the periods presented. Derivative: Certain information related to our derivatives contracts is presented below:
_________________ (a) This amount represents the maximum outstanding notional amount of the interest rate swaps currently entered into over the terms of those interest rate swaps. The notional amounts of the interest rate swaps amortize over the terms of the contracts and range between $262.4 million and $0.8 million each settlement period based on a pre-defined notional schedule. Derivative Impact on the Condensed Consolidated Statements of Operations: For the three and six months ended June 30, 2026, the Company recognized unrealized gains of $1.2 million related to its interest rate swap derivative instruments, which were recorded within Interest expense in the Condensed Consolidated Statements of Operations. Nonperformance risk, including the consideration of credit valuation adjustments related to counterparty credit risk and the Company's own credit risk, is incorporated into the fair value measurements of the Company's derivative instruments.
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