Quarterly report [Sections 13 or 15(d)]

Derivative Instruments and Hedging Activities

v3.25.2
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
The Company's derivative instruments designated as cash flow hedges as of June 30, 2025 were as follows (in thousands):

Notional Amount Paid Fixed Rate Receive Variable Rate Settlement and Termination
Interest rate swaps $150,000 2.8% 1-month term SOFR Monthly through October 31, 2027
Interest rate swaps
 $100,000 4.5% 1-month term SOFR
Monthly through July 31, 2026

The Company is party to fixed interest rate swap instruments that are designated and accounted for as cash flow hedges to manage risks associated with interest rate fluctuations on a portion of the Company's floating rate debt. For the three and six months ended June 30, 2025, the Company reclassified $0.5 million and $1.1 million, respectively, from accumulated other comprehensive income to interest expense, net. The Company estimates that it will reclassify $0.8 million of unrealized gains from accumulated other comprehensive income into earnings in the twelve months following June 30, 2025. See Note (11) "Fair Value Measurements" for the fair value of the interest rate swaps.