Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

NOTE 10 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company uses interest rate swap agreements (the “Swaps”) to manage its variable interest rate risk associated with its borrowings under the Credit Facility. The Company does not use such instruments for speculative or trading purposes.

During the second and third quarters of the 2025 fiscal year, the Company executed a strategy that extended the term of the existing Swaps at a lower interest rate while maintaining the same overall notional value of each Swap. As a result of the amendment, $50.0 million will mature on February 28, 2030, $25.0 million will mature on June 26, 2030, and $100.0 million will mature on July 31, 2030. The Company has designated the modified Swaps as cash flow hedges. See “Note 8 - Debt” for details on the impact of the Swap on the Company’s interest rates. See “Note 11 - Fair Value” for the fair value of these Swaps.

For the years ended December 31, 2025 and 2024, the effect of the Swaps on the Company’s financial statements are as follows:

Cash Flow Hedging Derivatives	Total Gain (Loss) Recorded to AOCI					Amount of (Gain) or Loss Reclassified from AOCI into Income
	Year Ended December 31,
	2025			2024		2025			2024
Interest Rate Swaps	$	(2,268	)	$	5,996	$	(1,016	)	$	(6,244	)

As of December 31, 2025, $0.6 million in unrealized losses from the Swaps are expected to be reclassified from AOCI into earnings within the next twelve months.