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Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure HEDGE AGREEMENTS
We are exposed to foreign currency exchange rate risk related to our ongoing business operations in Canada. To mitigate the
impact of fluctuations in the USD–CAD exchange rate, on July 29, 2025, we entered into fixed-to-fixed cross-currency swap
agreements designated as net investment hedges, which were deemed effective on the commencement date. The aggregate notional
amount of the swaps is CAD $400.0 million, and the corresponding total USD notional is approximately $290.3 million based on the
fixed contractual USD–CAD exchange rate of 1.38 at inception. Under the terms of the swap agreements, USD fixed interest amounts
are payable to us and CAD fixed interest amounts are payable to the counterparty. The swap agreements mature on April 30, 2026. As
of September 30, 2025, the hedge relationship remained highly effective. Refer to “Hedge accounting” in Note 2 – “Summary of
significant accounting policies” to our unaudited consolidated financial statements for additional information.
The tables below summarize the fair value of our cross-currency swap agreements designated as net investment hedges and
the impact on our consolidated financial statements. We did not have any outstanding hedge agreements as of and during the year
ended December 31, 2024. Amounts are presented in USD (in thousands).
Fair value of cross-currency swap agreements designated as net investment hedges
As of September 30, 2025
Balance Sheet Location
Fair Value – Asset
Notional Amount Outstanding
Other assets
$2,970
$290,317
Effect on consolidated other comprehensive income
Location in Consolidated Statement of
Comprehensive Income
September 30, 2025
Three Months Ended
Nine Months Ended
Total unrealized gain recognized in other
comprehensive income
Unrealized gains related to net
investment hedge
$2,970
$2,970
For the three and nine months ended September 30, 2025, there were no reclassification of gain or loss from accumulated
other comprehensive income into net income in connection with our hedge agreements.
Effect on consolidated statements of operations
Location in Consolidated
Statement of Operations
September 30, 2025
Three Months Ended
Nine Months Ended
Total gain recognized in net income(1)
Other income
$748
$748
(1)Represents net interest expense settlements and interest rate forward points excluded from assessment of hedge effectiveness. Refer to “Hedge accounting” in Note 2 –
“Summary of significant accounting policies” to our unaudited consolidated financial statements for additional information.