Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2025

The components of, and changes in, accumulated other comprehensive income, net of tax, were as follows (in thousands):


	Net Cash Flow Hedge Adjustments






Balance as of June 30, 2025	$	(3,863)
Net deferred (losses)/gains on cash flow hedges	(15)
Net deferred gains/(losses) on cash flow hedges reclassified to net income	289
Balance as of September 30, 2025	$	(3,589)


	Net Cash Flow Hedge Adjustments
Balance as of December 31, 2024	$	—
Net deferred (losses)/gains on cash flow hedges	(4,248)
Net deferred gains/(losses) on cash flow hedges reclassified to net income	659
Balance as of September 30, 2025	$	(3,589)

The gross amount and related tax benefit/(expense) recorded in, and associated with, each component of other comprehensive income were as follows (in thousands):


	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	Before Tax Amount		Tax		Net of Tax Amount		Before Tax Amount		Tax		Net of Tax Amount
Net deferred (losses)/gains on cash flow hedges	$	(16)	$	1	$	(15)	$	(5,630)	$	1,382	$	(4,248)
Net deferred gains/(losses) on cash flow hedges reclassified to net income	$	386	$	(97)	$	289	$	877	$	(218)	$	659

The amounts reclassified from accumulated other comprehensive income were as follows (in thousands):



		Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
Accumulated Other Comprehensive Income (OCI) Component	Affected Line Item in the Statements of Income	Reclassified from Accumulated OCI to Earnings
Gains/(losses) on cash flow hedges:
Swap contract	Interest expense	$	386	$	877
Collar contract(1)	Interest expense	—		—
Gains/(losses) on hedges before income taxes		$	386	$	877
Income tax expense		(97)		(218)
Gains on hedges		$	289	$	659

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(1) As of the reporting date, the 1-month Term SOFR remains within the specified cap strike and floor strike bands. Consequently, no amounts have been reclassified from OCI to earnings.