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Derivative Instruments | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments The Company is exposed to interest rate risk related to its variable-rate debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed-rate and variable-rate debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk. Interest Rate Swaps As of December 31, 2025, the Company had four interest rate swap agreements, all of which were designated as cash flow hedges. The key terms of the agreements are as follows (dollars in thousands):
Effective | Maturity | Fixed Interest |  | Notional Amount at |  | Asset (Liability) Fair Value at
Date | Date | Rate |  | December 31, 2025 |  | December 31, 2025 |  | December 31, 2024
Interest Rate Swap Agreements |  |  |  |  |  |
4/7/2016 | 8/1/2029 | 3.14% |  | $ | 48,989 |  |  | $ | 2,385 |  |  | $ | 4,310 |
11/3/2025 | 11/3/2030 | 4.57% |  | $ | 70,000 |  |  | $ | (9) |  |  | $ | — |
5/1/2024 | 12/9/2031 | 4.88% |  | $ | 57,000 |  |  | $ | (471) |  |  | $ | 1,254 |
12/9/2024 | 12/9/2031 | 4.83% |  | $ | 73,000 |  |  | $ | (401) |  |  | $ | 1,814 |
In 2022, the Company entered into two forward starting interest rate swap agreements with notional amounts of $57.0 million and $73.0 million. The Company designated the hedging relationships of these two forward interest swap agreements as cash flow hedges at their inception. In December 2023, the Company de-designated the forward interest swap agreements as it was determined that underlying cash flows related to the designated hedging relationships were no longer probable of occurring. As a result, for the year ended December 31, 2023, the Company reclassified from Accumulated other comprehensive income (loss) and recognized in Interest and other income (expense), net a $2.7 million loss related to the fair value adjustment of the de-designated hedging relationships. Subsequent changes in fair value of the forward interest rate swaps were recorded in earnings until, on February 29, 2024, the Company re-designated the hedging relationships of both forward interest rate swaps in anticipation of future financing. The Company recorded a gain on forward interest rate swap valuation adjustment of $3.7 million during the year ended December 31, 2024, that occurred prior to the date of re-designation. Cash settlements related to the $57.0 million notional amount interest rate swap began on May 1, 2024. Cash settlements related to the $73.0 million notional amount interest rate swap began on December 9, 2024. In November 2025, the Company entered into a $70.0 million 1-month Term SOFR interest rate swap that fixes the rate through November 3, 2030, at 4.57% (inclusive of a financials-based applicable rate of 1.15%). Together with the two forward interest rate swaps re-designated in 2024, the three interest rate swaps with a notional amount totaling $200.0 million are hedging the $200.0 million borrowings under the Syndicated Term Loan through maturity to a 4.69% weighted average fixed rate. Assets related to the interest rate swaps are presented within Prepaid expenses and other assets and liabilities related to interest rate swaps are presented within Accrued and other liabilities in the consolidated balance sheets as of December 31, 2025 and December 31, 2024. Designated Hedging Instruments For derivative instruments that are designated and qualify as cash flow hedges, changes in fair value of the cash flow hedges are recorded in Accumulated other comprehensive income (loss) and subsequently reclassified into Interest expense as interest is incurred on the related variable-rate debt. Periodic cash interest settlements related to cash flow hedges are presented as operating cash flows in the Company's consolidated statements of cash flows. Terminated and De-Designated Hedging Instruments When it is probable that a forecasted hedged transaction will not occur, hedge accounting is discontinued, and amounts deferred in Accumulated Other Comprehensive Income are recognized immediately. For derivatives not designated as hedging instruments, including de-designated hedges, changes in fair value are recorded in Interest and other income (expense), net. During the year ended December 31, 2023, the Company reclassified from Accumulated other comprehensive income (loss) and recognized in Interest and other income (expense), net a $2.7 million loss related to de-designated hedging relationships. Statement of Comprehensive Income (Loss) Derivative Instruments Impact The following table represents the pre-tax effect of the derivative instruments in the Company's consolidated statements of comprehensive income (loss) during the three years ended December 31, 2025, 2024, and 2023, (in thousands):
|  | 2025 |  | 2024 |  | 2023
Information regarding derivatives designated as hedging instruments |  |  |  |  |  |
Amount of gain (loss) recognized in OCI on derivatives |  | $ | (3,672) |  |  | $ | 4,100 |  |  | $ | 296 |
Impact of reclassification adjustment to interest expense included in Net Income (Loss) |  | $ | (2,074) |  |  | $ | (1,764) |  |  | $ | (1,680) |
Information regarding derivatives terminated and de-designated hedging instruments |  |  |  |  |  |
Reclassification of interest rate derivative loss (gain) to interest and other income (expense), net included in Net Income (Loss) |  | $ | — |  |  | $ | — |  |  | $ | 2,718 |
As of December 31, 2025, the Company expects to reclassify $0.8 million of net gains (losses) on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months.

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