Company: ZEUS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014325
Chunk: 10

Company: OLYMPIC STEEL INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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 not yet settled as of  March 31, 2025, are included in “Other accrued liabilities” and the embedded customer derivatives are included in “Accounts receivable, net” on the Consolidated Balance Sheets as of  March 31, 2025.  
    
   Fixed rate interest rate hedge
    
   On  August 15, 2024 the Company entered into a two-year forward starting fixed rate interest rate hedge in order to eliminate the variability of cash interest payments on $75 million of the outstanding SOFR based borrowings under the ABL Credit Facility. The interest rate hedge fixed the rate at 3.82%. The interest rate hedge is included in "Other long-term liabilities" on the Consolidated Balance Sheets as of  March 31, 2025. Although the Company is exposed to credit loss in the event of nonperformance by the other party to the interest rate hedge agreement, the Company anticipates performance by the counterparty. 
    
   The table below shows the total impact to the Company’s Consolidated Statements of Comprehensive Income through pre-tax income of the derivatives for the three months ended  March 31, 2025 and 2024, respectively.

       Net Gain (Loss) Recognized  
   For the Three Months  
   Ended March 31,  
 (in thousands)   2025    2024  
 Fixed interest rate hedge  $95  $55 
 Metals swaps   74   1 
 Embedded customer derivatives   (74)  (1)
 Total gain  $95  $55 

     14

    9.  Fair Value of Assets and Liabilities: 

   During the three months ended  March 31, 2025, there were no transfers of financial assets between Levels 1, 2 or 3 fair value measurements. There have been no changes in the methodologies used as of  March 31, 2025 since  December 31, 2024.
    
   The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company:

       Value of Items Recorded at Fair Value  
   As of March 31, 2025  
 (in thousands)   Level 1    Level 2    Level 3    Total  
 Assets: