Other (Income) Expense, Net

9 Months Ended

Sep. 30, 2023

Other Nonoperating Income (Expense) [Abstract]

Other (income) expense, net consisted of the following (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Change in realized and unrealized (gains) losses on investment securities, net	$	0.5	$	0.3	$	0.4	$	6.5
Foreign currency (gains) losses	(1.2)		4.1		(0.8)		8.6
Investment and note receivable impairment	—		—		11.0		—
Early termination of contractual arrangement	—		—		(20.0)		—
Contingent consideration valuation (Note 2)	—		—		1.3		—
Other	2.4		(3.2)		(4.4)		(8.7)
Other (income) expense, net	$	1.7	$	1.2	$	(12.5)	$	6.4

Fair Value Measurement of Investments

The Company invests in certain early-stage automotive companies and funds that relate to the automotive industry. We believe these investments have resulted in the expansion of relationships in the vehicle remarketing industry. There were no realized gains on these investments for the three and nine months ended September 30, 2023 and 2022. The Company had unrealized losses of $0.5 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, and $0.3 million and $6.5 million for the three and nine months ended September 30, 2022, respectively.

ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A small portion of finance receivables for one entity were converted to investment securities during the first quarter of 2021. This entity became publicly traded during the first quarter of 2021 and as a result had a readily determinable fair value. As of September 30, 2023, investment securities measured at fair value are based on quoted market prices for identical assets (Level 1 of the fair value hierarchy) and approximated $0.0 million. The net unrealized loss on these investment securities was $0.4 million for the nine months ended September 30, 2023. The remaining investments held of $25.7 million do not have readily determinable fair values and the Company has elected to apply the measurement alternative to these investments and present them at cost. Investments are reported in "Other assets" in the accompanying consolidated balance sheets. Realized and unrealized gains and losses are reported in "Other (income) expense, net" in the consolidated statements of income.

In late March 2023, one of the investees we presented at cost filed to reorganize its operations through the bankruptcy process. Based on this information, we recorded an other than temporary impairment of approximately $3.7 million in "Other (income) expense, net" representing our entire equity investment in the company. In addition, we also had a note receivable with this investee for $7.3 million, on which we recorded a credit impairment loss in "Other (income) expense, net" in the first quarter of 2023.

In the second quarter of 2023, the Company received $20.0 million in connection with the early termination of a contractual arrangement with IAA. This amount was considered non-operating income and was recorded in "Other (income) expense, net" in the second quarter of 2023.