Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2025

Accumulated Other Comprehensive Income (Loss)

NOTE 13 – Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity includes certain items classified as accumulated other comprehensive income (loss) (“AOCI”) in the Condensed Consolidated Balance Sheets, including:

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Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone denominated variable rate debt. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 12 – “Derivative Financial Instruments” and Note 16 – “Fair Value Measurements”.

•

Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense).

•

Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive earnings (loss).

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction gains (losses) for the three and nine months ended September 30, 2025 were $(565) and $739, respectively. Transaction gains (losses) for the three and nine months ended September 30, 2024 were $1,319 and $(817), respectively. The impact of these changes are included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive income (loss) for the three months ended September 30, 2025, are as follows:


							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	June 30,			Recognized			from AOCI			September 30,
	2025			in OCI			to Earnings			2025
Changes in fair market value of derivatives:
Gross	$	3,136		$	1,846		$	(329	)	$	4,653
Income tax benefit (expense)		(746	)		(434	)		77			(1,103	)
Net		2,390			1,412			(252	)		3,550
Changes in unrealized pension cost:
Gross		(523	)		—			38			(485	)
Income tax benefit (expense)		305			—			7			312
Net		(218	)		—			45			(173	)
Cumulative translation adjustment:
Gross		9,848			(631	)		—			9,217
Income tax benefit (expense)		—			—			—			—
Net		9,848			(631	)		—			9,217
Total accumulated other comprehensive (loss) income	$	12,020		$	781		$	(207	)	$	12,594

The components of accumulated other comprehensive income (loss) for the three months ended September 30, 2024 are as follows:


							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	June 30,			Recognized			from AOCI			September 30,
	2024			in OCI			to Earnings			2024
Changes in fair market value of derivatives:
Gross	$	2,026		$	(2,758	)	$	(437	)	$	(1,169	)
Income tax (expense) benefit		(467	)		634			101			268
Net		1,559			(2,124	)		(336	)		(901	)
Changes in unrealized pension cost:
Gross		(1,017	)		—			(4	)		(1,021	)
Income tax benefit (expense)		432			—			(1	)		431
Net		(585	)		—			(5	)		(590	)
Cumulative translation adjustment:
Gross		(199	)		3,707			—			3,508
Income tax benefit (expense)		—			—			—			—
Net		(199	)		3,707			—			3,508
Total accumulated other comprehensive income (loss)	$	775		$	1,583		$	(341	)	$	2,017

The components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2025 are as follows:


							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			September 30,
	2024			in OCI			to Earnings			2025
Changes in fair market value of derivatives:
Gross	$	(1,730	)	$	5,963		$	420		$	4,653
Income tax benefit (expense)		397			(1,401	)		(99	)		(1,103	)
Net		(1,333	)		4,562			321			3,550
Changes in unrealized pension cost:
Gross		(409	)		—			(76	)		(485	)
Income tax benefit (expense)		300			—			12			312
Net		(109	)		—			(64	)		(173	)
Cumulative translation adjustment:
Gross		(2,824	)		12,041			—			9,217
Income tax benefit (expense)		—			—			—			—
Net		(2,824	)		12,041			—			9,217
Total accumulated other comprehensive (loss) income	$	(4,266	)	$	16,603		$	257		$	12,594

The components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2024 are as follows:


							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			September 30,
	2023			in OCI			to Earnings			2024
Changes in fair market value of derivatives:
Gross	$	3,252		$	(1,970	)	$	(2,451	)	$	(1,169	)
Income tax benefit (expense)		(749	)		453			564			268
Net		2,503			(1,517	)		(1,887	)		(901	)
Changes in unrealized pension cost:
Gross		(1,126	)		—			105			(1,021	)
Income tax benefit (expense)		442			—			(11	)		431
Net		(684	)		—			94			(590	)
Cumulative translation adjustment:
Gross		2,445			1,063			—			3,508
Income tax benefit (expense)		—			—			—			—
Net		2,445			1,063			—			3,508
Total accumulated other comprehensive (loss) income	$	4,264		$	(454	)	$	(1,793	)	$	2,017