XML 35 R19.htm IDEA: XBRL DOCUMENT v3.25.0.1
FINANCIAL DERIVATIVE INSTRUMENTS
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
FINANCIAL DERIVATIVE INSTRUMENTS FINANCIAL DERIVATIVE INSTRUMENTS
Commodity Pricing Risk
As of December 31, 2024, the Company was party to commodity swap contracts for specific commodities with notional amounts of approximately $15.0 million. The Company uses commodity swap contracts to mitigate the risks associated with fluctuations in commodity prices impacting its cash flows related to inventory purchases from suppliers. The Company does not hedge all commodity price risk.
At inception, the Company designated the commodity swap contracts as cash flow hedges. The contracts mature at specified monthly settlement dates and will be recognized into earnings through December 2025. The effective portion of the hedging transaction is recognized in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and transferred to earnings when the forecasted hedged transaction takes place or when the forecasted hedged transaction is no longer probable to occur.
Financial Statement Presentation
As of December 31, 2024 and 2023, the fair value carrying amount of the Company’s derivative instruments were recorded as follows (in thousands):
Asset / (Liability) Derivatives
Balance Sheet CaptionDecember 31, 2024December 31, 2023
Derivatives designated as hedging instruments
Commodity swap contractsPrepaid expenses and other$163 $1,511 
Commodity swap contractsAccounts payable and Other accrued liabilities(299)(1,045)
Total derivatives designated as hedging instruments$(136)$466 
The following table summarizes the gain or loss recognized in AOCI as of December 31, 2024 and 2023 and the amounts reclassified from AOCI into earnings for the years ended December 31, 2024, 2023, and 2022 (in thousands):
Amount of Gain (Loss) Recognized in
AOCI on Derivatives
(Effective Portion, net of tax)		Location of Gain (Loss) Reclassified from AOCI into Earnings
(Effective Portion)		Amount of Gain (Loss) Reclassified from AOCI into Earnings
Year Ended December 31,
December 31, 2024December 31, 2023202420232022
Derivatives instruments
Commodity swap contracts$(230)$388 Cost of sales$(950)$(3,359)$4,887 
Within next 12 months, the Company expects to reclassify approximately $0.3 million of pretax deferred losses related to the commodity swap contracts from AOCI to cost of sales as inventory purchases are settled.