| DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the nine months ended September 30, 2026, we added one embedded derivative for a make-whole provision with an initial fair value totaling $679. See Note 8 for additional information about the financing.
The following table presents information about the fair value amounts of our cash flow derivative instruments:
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Derivatives as of |
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September 30, 2026 |
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December 31, 2025 |
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Balance Sheet Location |
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Fair Value |
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Fair Value |
Derivatives Designated as Hedging Instruments: |
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Interest rate swap contracts |
Other assets |
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$ |
1,735 |
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$ |
721 |
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Derivatives Not Designated as Hedging Instruments: |
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Interest rate swap contracts |
Other assets |
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$ |
1,475 |
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$ |
— |
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Interest rate swap contracts |
Other liabilities |
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$ |
— |
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$ |
197 |
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Make-whole provisions |
Other liabilities |
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$ |
21,027 |
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$ |
19,075 |
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The following table presents information about the effects of our derivative instruments on our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income:
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Amount of (Gain) Loss Recognized in Net Income |
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Location of (Gain) Loss Recognized in Net Income |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
Derivatives Designated as Hedging Instruments: |
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Interest rate swap contracts |
Other expenses, net |
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$ |
(40) |
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$ |
(91) |
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$ |
(131) |
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$ |
(295) |
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Derivatives Not Designated as Hedging Instruments: |
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Interest rate swap contracts |
Other expenses, net |
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$ |
(1,210) |
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$ |
54 |
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$ |
(1,671) |
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$ |
1,065 |
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Make-whole provisions |
Other expenses, net |
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$ |
602 |
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$ |
759 |
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$ |
1,275 |
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$ |
(3,219) |
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The following table presents the changes in Accumulated Other Comprehensive Loss (“AOCL”), net of taxes, from our hedging instruments:
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Nine Months Ended September 30, 2026 |
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Derivatives Designated as Hedging Instruments: |
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Accumulated gain in AOCL at the beginning of the period |
$ |
671 |
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Unrealized gain recognized in AOCL |
879 |
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Gain reclassified from AOCL to other expenses, net |
(131) |
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Gain on derivatives |
748 |
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Accumulated gain in AOCL at the end of the period |
$ |
1,419 |
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The following tables present all of our active derivative instruments as of September 30, 2026:
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| Active Interest Rate Swaps |
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Expiration Date |
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Initial Notional
Amount ($) |
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Status |
11-Year, 5.77% Fixed |
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October 2029 |
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$ |
9,200 |
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Designated |
15-Year, 5.24% Fixed |
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June 2033 |
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$ |
10,000 |
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Designated |
10-Year, 4.74% Fixed |
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December 2027 |
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$ |
14,100 |
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Designated |
17.75-Year, 3.16% Fixed |
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December 2040 |
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$ |
14,084 |
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Designated |
18-Year, 3.81% Fixed |
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July 2041 |
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$ |
32,021 |
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Not Designated |
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| Other Derivatives |
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Classification |
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Effective Date |
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Expiration Date |
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Fair Value ($) |
Make-whole provisions |
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Liability |
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June 2018 |
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December 2038 |
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$ |
167 |
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Make-whole provisions |
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Liability |
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July 2016 |
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July 2031 |
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$ |
13 |
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Make-whole provisions |
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Liability |
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June 2017 |
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February 2034 |
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$ |
17 |
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Make-whole provisions |
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Liability |
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November 2020 |
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December 2027 |
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$ |
3 |
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Make-whole provisions |
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Liability |
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October 2011 |
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May 2028 |
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$ |
— |
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Make-whole provisions |
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Liability |
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May 2021 |
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April 2045 |
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$ |
9 |
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Make-whole provisions |
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Liability |
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March 2023 |
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December 2047 |
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$ |
1,333 |
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Make-whole provisions |
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Liability |
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June 2022 |
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March 2042 |
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$ |
612 |
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Make-whole provisions |
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Liability |
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July 2021 |
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March 2046 |
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$ |
1,613 |
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Make-whole provisions |
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Liability |
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April 2024 |
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June 2042 |
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$ |
6,964 |
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Make-whole provisions |
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Liability |
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April 2024 |
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June 2042 |
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$ |
923 |
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Make-whole provisions |
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Liability |
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April 2025 |
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September 2045 |
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$ |
1,940 |
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Make-whole provisions |
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Liability |
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May 2025 |
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December 2037 |
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$ |
212 |
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Make-whole provisions |
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Liability |
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December 2025 |
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September 2045 |
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$ |
1,337 |
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Make-whole provisions |
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Liability |
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December 2025 |
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December 2046 |
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$ |
1,234 |
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Make-whole provisions |
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Liability |
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August 2026 |
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December 2046 |
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$ |
1,356 |
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Make-whole provisions |
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Liability |
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October 2025 |
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December 2043 |
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$ |
2,567 |
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Make-whole provisions |
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Liability |
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October 2025 |
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September 2040 |
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$ |
728 |
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