Interest Rate Swap Contracts |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap Contracts | Note 7. INTEREST RATE SWAP CONTRACTS During 2026 and 2025, we held the following interest rate swap contracts (in thousands):
Our interest rate swap contracts fix the rate on a portion of our SOFR-based borrowings under our Credit Facility, have been designated as cash flow hedges and are expected to be highly effective.
The fair value of these interest rate swap contracts was reported as a separate line item within current assets, current liabilities, noncurrent assets and noncurrent liabilities, as applicable. See Note 10 for additional information on the fair value of the interest rate swap contracts. We report the unrealized gains and losses on our interest rate swap contracts designated as highly effective cash flow hedges as a component of other comprehensive income and reclassify such gains and losses into earnings (interest expense on our statement of operations) in the same period during which the hedged interest expense is recorded. We recognized a net realized gain from settlements of the interest rate swap contracts of $0.3 million and $0.9 million for the three months ended September 30, 2026 and 2025 and $0.8 million and $2.8 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we estimated that a net gain of $4.0 million will be reclassified from AOCI into interest expense during the next 12 months; however, the actual amount that will be reclassified will vary based on changes in interest rates. On October 13, 2026, we terminated the interest rate swap contract with a fixed rate of 2.932% and concurrently entered into a new interest rate swap contract that embedded the value of the terminated swap into the rate of the new swap, resulting in a fixed rate of 3.50%. The new interest rate swap contract has a notional amount of $100 million, matures in July 2033 and is callable by the counterparty on April 1, 2029. |
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