Investments

6 Months Ended

Jun. 30, 2024

Investments, All Other Investments [Abstract]

Equity Method Investments

The following table presents the activity in equity method investments:


	Equity Method Investments
Balance at December 31, 2023	$	109.9

Equity in loss of unconsolidated affiliates	(1.6)
Dividend received from equity method investment	(0.7)
Foreign currency translation adjustments and other	(3.0)
Balance at June 30, 2024	$	104.6

Investments in Equity Securities

The following table presents the activity in investments in equity securities:


	Investment in Equity Securities, Level 1		Investment in Equity Securities, Level 2		Investments in Equity Securities, All Others (1)		Investments Total
Balance at December 31, 2023	$	4.8	$	6.1	$	80.3	$	91.2
New investments	—		—		13.1		13.1
(Decrease) increase in fair value of investments in equity securities	(1.8)		(0.4)		0.2		(2.0)



Foreign currency translation adjustments and other	(0.1)		—		(0.2)		(0.3)
Balance at June 30, 2024	$	2.9	$	5.7	$	93.4	$	102.0

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(1)Consists of investments in equity securities without a readily determinable fair value. Such investments are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer.

Co-Investment Agreement

On September 7, 2021 (the “Closing Date”), we entered into a Co-investment agreement with I Squared Capital (“ISQ”), an infrastructure-focused private equity firm (the “Co-Investment Agreement”), pursuant to which Chart and ISQ have agreed to the following:

•In the following circumstances, ISQ shall have the right but not the obligation to require Chart to purchase all (and not less than all) of the shares of Hydrogen Technology & Energy Corporation (“HTEC”) common stock acquired as part of ISQ’s investment described above (the “Put Option”):

i.the third anniversary of the Closing Date,

ii.the date Chart undergoes a change of control (subject to certain exceptions),

iii.the date upon which Chart, during the period from the Closing Date through the third anniversary of the Closing Date, has made certain distributions to its shareholders (including cash or other dividends, or via a spin-off transaction), in excess of $900.0,

iv.the date, if any, upon which our leverage ratio exceeds certain thresholds and

v.the date, if any, of a bankruptcy event (including certain insolvency-related actions) involving Chart.

•In the event that ISQ exercises its Put Option, we shall pay to ISQ an amount in cash in exchange for the HTEC common stock then held by ISQ such that ISQ shall realize the greater of (i) an internal rate of return of 10% and (ii) a multiple on ISQ’s invested capital of 1.65x.

•Conversely, at any time after the third anniversary of the Closing Date, we shall have the right to purchase from ISQ up to 20% of the shares of HTEC common stock acquired as part of the ISQ Investment. In exchange for the common stock, we shall pay ISQ the greater of (i) an internal rate of return of 12.5% and (ii) a multiple on ISQ’s invested capital of 1.65x.

•In addition, we shall have (i) a right of first offer: if ISQ desires to transfer any of its HTEC common stock to any third party, we shall have the right to first offer provided that upon notice, we shall have the option to make a first offer to purchase the offered interest in cash exclusively and (ii) a right of first refusal: if ISQ desires to sell its HTEC common stock to any third party pursuant to a definitive agreement therewith, we shall have the right of first refusal provided that the purchase consideration paid by Chart to ISQ upon our exercise of such right of first refusal must be equal to 102% of the purchase consideration agreed to be paid by such third party.

•The Co-Investment Agreement shall terminate automatically upon the consummation of an initial public offering by HTEC of its common stock.

Our equity method investment in HTEC was $77.6 and $82.3 at June 30, 2024 and December 31, 2023, respectively.

Accounting Treatment of Put and Call Options

We record the Put and Call Options (together “the Options”) at fair value and record any change in fair value through earnings at each reporting period. The fair value of the Options was not material on the Closing Date or at June 30, 2024 and December 31, 2023.

Hy24 (f/k/a FiveT Hydrogen Fund and Clean H2 Infra Fund)

On April 5, 2021, we were admitted as an anchor investor in Hy24 (the “Hydrogen Fund”). Hy24 is a joint venture between Ardian, a European investment house, and FiveT Hydrogen, an investment manager specialized purely on clean hydrogen investments. Investments to date include a green steel manufacturing plant that integrates green hydrogen located in Sweden, upstream e-Methanol and sustainable aviation fuel production in Europe, and green hydrogen production projects (electrolysis) in Europe. Our total investment to date is euro 14.2 million (equivalent to $15.2), making our unfunded commitment euro 35.8 million (equivalent to $38.4).