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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
DERIVATIVE INSTRUMENTS  
DERIVATIVE INSTRUMENTS

8.    DERIVATIVE INSTRUMENTS

Interest Rate Swaps

We entered into interest rate swap agreements to hedge forecasted monthly interest rate payments on our floating rate debt. Under the terms of the interest rate swap agreements (“Swap Agreements”), we receive payments based on the 1-month SOFR (3.64% as of June 30, 2026). We had the following Swap Agreements as of June 30, 2026:

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​

​

​

​

​

​

​

Effective Date

  ​ ​ ​

Notional Amount

  ​ ​ ​

Fixed Rate

September 30, 2021 through July 23, 2026

​

$

76,250

​

0.812

%

May 31, 2023 through July 23, 2026

​

$

41,875

  ​ ​ ​

3.905

%

February 14, 2025 through December 20, 2029

​

$

36,422

  ​ ​ ​

4.080

%

April 7, 2025 through December 20, 2029

​

$

46,875

  ​ ​ ​

3.545

%

July 31, 2025 through December 20, 2029

  ​ ​ ​

$

95,000

  ​ ​ ​

3.449

%

​

During the six months ended June 30, 2026, there were no Swap Agreements that expired.

We designated the Swap Agreements as cash flow hedges. A portion of the amount included in accumulated other comprehensive (loss) income is reclassified into interest expense, net as a yield adjustment as interest is either paid or received on the hedged debt. The fair value of our Swap Agreements is based upon Level 2 inputs. We have considered our own credit risk and the credit risk of the counterparties when determining the fair value of our Swap Agreements.

It is our policy to execute such instruments with creditworthy banks and not to enter into derivative financial instruments for speculative purposes. We believe our interest rate swap counterparty will be able to fulfill its obligations under our agreements, and we believe we will have debt outstanding through the expiration date of the swap agreements such that the occurrence of future cash flow hedges remains probable.

The estimated fair value of our Swap Agreements in the condensed consolidated balance sheets was as follows:

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​

​

​

​

​

Balance Sheet Accounts

​

June 30, 2026

  ​ ​ ​

December 31, 2025

Other current assets

​

$

784

​

$

1,181

Other assets

​

$

1,065

​

$

—

Accrued liabilities

​

$

53

​

$

472

Other liabilities

​

$

167

​

$

1,229

​

A cumulative gain, net of tax, of $1,217 and a cumulative loss, net of tax, of $431 is recorded in accumulated other comprehensive (loss) income as of June 30, 2026 and December 31, 2025, respectively.

The Company recognized a gain, net of tax, of $1,493 and a loss, net of tax, of $269 in other comprehensive income (loss) for the three months ended June 30, 2026 and 2025, respectively. There was a gain, net of tax, of $411 and $652 reclassified from accumulated other comprehensive (loss) income into earnings for the three months ended June 30, 2026 and 2025, respectively

The Company recognized a gain, net of tax, of $2,470 and a loss, net of tax, of $964 in other comprehensive income (loss) for the six months ended June 30, 2026 and 2025, respectively. There was a gain, net of tax, of $822 and $1,229 reclassified from accumulated other comprehensive (loss) income into earnings for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, approximately $725 is expected to be reclassified from accumulated other comprehensive (loss) income into interest expense, net over the next 12 months.

Foreign Currency Hedge

We entered into forward contracts to hedge forecasted Mexican Peso (“MXN”) denominated costs associated with our Mexican subsidiary. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are recorded in other comprehensive income (loss) and are reclassified from accumulated other comprehensive (loss) income into earnings in the period the hedged item impacts earnings.

As of June 30, 2026, the Company had outstanding contracts with a total notional amount of $81,938 MXN and recognized a cumulative gain, net of tax, of $103 in accumulated other comprehensive (loss) income.

The Company recognized a gain, net of tax, of $104 and $182 in other comprehensive income (loss) for the three months ended June 30, 2026 and 2025, respectively. There was a gain, net of tax, of $48 and a loss, net of tax, of $55 reclassified from accumulated other comprehensive (loss) income into earnings for the three months ended June 30, 2026 and 2025

The Company recognized a gain, net of tax, of $112 and $127 in other comprehensive income (loss) for the six months ended June 30, 2026 and 2025, respectively. There was a gain, net of tax, of $134 and a loss, net of tax, of $369 reclassified from accumulated other comprehensive (loss) income into earnings for the six months ended June 30, 2026 and 2025.

As of June 30, 2026, approximately $103 is expected to be reclassified from accumulated other comprehensive (loss) income into earnings over the next 12 months.