The Company is exposed to the risk that earnings and cash flows could be adversely impacted due to fluctuations in interest rates. To mitigate this risk, the Company has periodically entered into interest rate swaps in which we agree to exchange, at specified intervals, the difference between variable and fixed interest amounts calculated by reference to an agreed-upon notional amount. Derivative instruments are not used for trading purposes or to manage exposure to changes in interest rates for investment securities. The Company's outstanding derivative instruments have not contained credit risk related contingent features nor is collateral generally required.

The interest rate swaps are measured at fair value on a recurring basis and are determined using the income approach based on a discounted cash flow model to determine the present value of future cash flows over the remaining term of the contract incorporating observable market inputs such as prevailing interest rates as of the reporting date (Level 2). Changes in fair value of the interest rate swap are recorded, net of tax, as a component of accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. The Company reclassifies the effective gain or loss from accumulated other comprehensive loss, net of tax, to interest expense on the Consolidated Statements of Income (Loss) as the interest expense is recognized on the related debt. The ineffective portion of the change in fair value of the interest rate swap, if any, is recognized directly in earnings in interest expense.

The Company has entered into $450.0 million of interest rate swap contracts as of December 31, 2025. As of December 31, 2025 and 2024, these contracts had notional values of $428.1 million and $439.1 million, respectively. These contracts are designated and qualify as effective cash flow hedges.


	Fair Value (level 2)
		As of
		December 31,		December 31,
(In thousands)	Balance sheet caption	2025		2024
Interest rate swap designated as cash flow hedge	Prepaid expenses and other current assets	$	—	$	1,918
Interest rate swap designated as cash flow hedge	Other non-current assets	$	—	$	1,938
Interest rate swap designated as cash flow hedge	Other accrued liabilities	$	770	$	—
Interest rate swap designated as cash flow hedge	Other non-current liabilities	$	1,380	$	—
Interest rate swap designated as cash flow hedge	Accumulated other comprehensive loss	$	(2,150)	$	3,856

The Company regularly assesses the creditworthiness of the counterparty. As of December 31, 2025, the counterparty to the interest rate swaps had performed in accordance with its contractual obligations. Both the counterparty credit risk and the Company's credit risk were considered in the fair value determination.

Net interest rate derivative gains of $2.6 million, $5.7 million, and $4.1 million were recognized in interest expense, net in the Consolidated Statements of Income (Loss) during 2025, 2024, and 2023, respectively. The Company expects $0.8 million of existing interest rate swap expense reported in accumulated other comprehensive loss as of December 31, 2025 to be recognized in earnings within the next 12 months.