v3.26.3
Derivative Instruments
 3 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In connection with the issuance of the 5.50% 2030 Notes, the Company entered into a series of forward currency contracts designated as hedging instruments under ASC 815. The Company uses derivative instruments in connection with its risk management activities to reduce exposure to foreign currency exchange rate risk arising from foreign-denominated interest payments and foreign-denominated principal on the 5.50% 2030 Notes. Derivative instruments are carried at fair value on the Consolidated Statements of Assets and Liabilities.
The following table provides the terms and the estimated fair values of the Company’s derivative instruments, which are presented as separate asset and liability values, if applicable, on a gross basis within the corresponding line items in the Consolidated Statements of Assets and Liabilities as of September 30, 2026:
Derivative InstrumentsNotional Amount to be PurchasedNotional Amount to be SoldMaturity Date RangeGross Fair Value of Recognized AssetsConsolidated Statement of Assets and Liabilities LocationGross Fair Value Amount of Recognized LiabilitiesConsolidated Statement of Assets and Liabilities Location
Forward Contracts designated as cash flow hedging instrumentsILS 120,547$38,250 December 24, 2026 - December 23, 2030$2,526 Derivative Assets$— Derivative Liabilities
Forward Contracts designated as fair value hedging instrumentsILS 515,710$168,710 December 23, 2030$11,847 Derivative Assets$— Derivative Liabilities
$14,373 $— 
The following table summarizes the impact that changes in the fair values of derivatives designated as fair value hedges on earnings and reclassification of derivatives designated as cash flow hedges into earnings:
Three Months Ended September 30,
Derivative InstrumentsConsolidated Statement of Operations Location Effect of Derivative Instruments20262025
Forward Contracts designated as cash flow hedging instrumentsInterest ExpenseTotal gain (loss) reclassified from accumulated other comprehensive income (loss)$348 $— 
Forward Contracts designated as fair value hedging instruments (1)
Net change in unrealized gains (losses) from derivative instruments and foreign currency transactionsGain (loss) recognized in Income$4,384 $— 
(1) As of September 30, 2026, the net carrying value of the 5.50% 2030 Notes designated as the hedged item in the fair value hedge of the principal was $161,354. Because the hedge is designated for foreign currency exchange risk, the related changes in the 5.50% 2030 Notes’ net carrying value arose from foreign currency remeasurement, with offsetting changes in the related forward contract recognized in Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions.

During the three months ended September 30, 2026, the Company repurchased ILS 30,000 of the 5.50% 2030 Notes and amended its forward contracts to reduce their notional amounts proportionally. The Company received $810 for the terminated portions, of which $159 related to the cash flow hedges and $651 to the fair value hedge. Because the forecasted interest payments on the repurchased notes will not occur, the $159 was reclassified from accumulated other comprehensive income (loss) into interest expense. Hedge accounting continues for the remaining forward contracts.

During the three months ended September 30, 2026, we reclassified net gains of $348 from accumulated other comprehensive income (loss) into earnings as a decrease to interest expense. This consisted of $189 related to hedged interest payments that affected earnings during the period, into earnings as a decrease to interest expense. As of September 30, 2026, the estimated amount of net gains recognized in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings as a decrease to interest expense, net within the next 12 months is approximately $509.
The Company's foreign currency forward contracts are transacted with a single counterparty under an International Swaps and Derivatives Association ("ISDA") Master Agreement providing for netting upon default or early termination. The Company has elected not to offset assets and liabilities in the Consolidated Statements of Assets and Liabilities that may be received or paid as part of collateral arrangements. The following table presents the offsetting of the Company's derivative instruments as of September 30, 2026.

Gross Amounts of Recognized Assets (Liabilities)Gross Amounts Offset in the Consolidated Statement of Assets and LiabilitiesNet Amounts Presented in the Consolidated Statement of Assets and LiabilitiesGross Amounts of Financial Instruments Not Offset in Consolidated Statements of Assets and LiabilitiesGross Amounts of Cash Collateral Received (Pledged) from Counterparty Not Offset in Consolidated Statements of Assets and LiabilitiesNet Amount
Derivative assets:
Foreign currency forward contracts$14,373 $— $14,373 $— $— $14,373 
Total derivative assets$14,373 $— $14,373 $— $— $14,373 
Derivative liabilities:
Foreign currency forward contracts$— $— $— $— $— $— 
Total derivative liabilities$— $— $— $— $— $— 

The Company is required to post collateral if the Company is in a net liability position with its counterparty in excess of $250. As of September 30, 2026, the Company posted collateral of $0, which is included in restricted cash, within cash and cash equivalents on the Consolidated Statements of Assets and Liabilities. The Company also does not offset the fair value of derivative instruments against cash collateral posted or received.