FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 12 – FAIR VALUE MEASUREMENTS

The carrying amounts of certain of the Company’s financial instruments including cash equivalents, accounts receivable, accounts payable, accrued liabilities, and derivative financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing market rates.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate hierarchy disclosures each reporting period. The following table presents the derivative assets recorded that are reported at fair value on our Consolidated Balance Sheets on a recurring basis.

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis

(In thousands)	Level 1		Level 2		Level 3		Total
Derivative Assets
December 31, 2024	$	—	$	20,733	$	—	$	20,733
December 31, 2023		—		20,952		—		20,952
Derivative Liabilities
December 31, 2024	$	—	$	473	$	—	$	473
December 31, 2023		—		2,968		—		2,968

Derivative Financial Instruments

Currently, we use interest rate swaps to manage our interest rate risk associated with our note payable. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

The fair values of interest rate options will be determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities.

To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. We have determined that the significance of the impact of the credit valuation adjustments made to our derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of our derivatives held as of December 31, 2024 were classified as Level 2 of the fair value hierarchy.

The following table presents the carrying value and fair value of certain financial liabilities that are recorded on our Consolidated Balance Sheets.

Fair Value of Certain Financial Liabilities

December 31, 2024	December 31, 2024				December 31, 2023
(In thousands)	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
Term loan due November 2025	$	150,000	$	149,913	$	150,000	$	149,496
Term loan due November 2026		100,000		100,112		100,000		99,799
Term loan due January 2027		90,000		89,902		90,000		89,524
Term loan due March 2027		85,000		86,027		—		—
Term loan due January 2028		90,000		90,744		90,000		89,208
Senior fixed note due June 2024		—		—		50,000		49,641
Senior note due December 2026		50,000		49,432		50,000		49,227
Senior note due June 2027		75,000		74,248		75,000		74,282
Senior note due December 2028		50,000		48,788		50,000		49,195
Senior note due April 2029		50,000		45,003		50,000		44,742
Senior note due June 2029		50,000		45,566		50,000		45,473
Senior note due April 2030		75,000		67,137		75,000		67,262
Senior note due March 2031		50,000		42,733		50,000		43,313
Senior note due April 2031		50,000		43,172		50,000		43,441
Senior note due March 2032		75,000		63,965		75,000		64,818
Senior note due July 2033		100,000		105,308		100,000		109,521
Outstanding revolver borrowings		5,000		4,997		16,000		15,946

(1)Term loan and senior note liabilities exclude deferred financing costs

The fair value of the Notes payable (Level 2) is determined using the present value of the contractual cash flows, discounted at the current market cost of debt.