Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2025

Accumulated Other Comprehensive Income

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 December 31, 2024	$	—
Net deferred (losses)/gains on cash flow hedges	(4,117)
Net deferred gains/(losses) on cash flow hedges reclassified to net income	765
Balance as of December 31, 2025	$	(3,352)

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


	Year Ended December 31, 2025
	Before Tax Amount		Tax		Net of Tax Amount
Net deferred (losses)/gains on cash flow hedges	$	(5,429)	$	1,312	$	(4,117)
Net deferred gains/(losses) on cash flow hedges reclassified to net income	$	1,019	$	(254)	$	765

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



		Year Ended December 31, 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	$	1,019
Collar contract(1)	Interest expense	—
Gains/(losses) on hedges before income taxes		$	1,019
Income tax expense		(254)
Gains on hedges		$	765

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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.