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Derivatives

9 Months Ended

11 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 7. Derivatives

In February 2020, the Company entered into an interest rate collar agreement with a counterparty bank in order to reduce its exposure to interest rate volatility. In this agreement, the Company and the counterparty bank agreed to a one-month LIBOR floor of 0.48% and a cap of 1.50% on a portion of the Company’s Successor First Lien Credit Facility. The notional amount of this agreement is $405.0 million through February 2022 at which time the notional amount reduces to $300.0 million through February 2024.

The following is a summary of location and fair value of the financial position and location and amount of gains and losses recorded related to the derivative agreement (in thousands):

				Fair Value										Gain/(Loss)
Derivatives not designated as hedging instruments		Balance Sheet Location		As of September 30, 2021 (Successor)				As of December 31, 2020 (Successor)				Income Statement Location		Three Months Ended September 30, 2021 (Successor)				Three Months Ended September 30, 2020 (Successor)				Nine Months Ended September 30, 2021 (Successor)				Period from February 1, 2020 through September 30, 2020 (Successor)
Interest rate swaps		Other liabilities		$	1,646			$	3,615			Interest expense		$	(108	)		$	744			$	845			$	(4,412	)

8. DERIVATIVES

In February 2020, the Company entered into an interest rate collar agreement with a counterparty bank in order to reduce its exposure to interest rate volatility. In this agreement, the Company and the counterparty bank agreed to a one-month LIBOR floor of 0.48% and a cap of 1.50% on a portion of the Company’s Successor First Lien Facility. The notional amount of this agreement is $405.0 million through February 2022 at which time the notional amount reduces to $300.0 million through February 2024.

The following is a summary of location and fair value of the financial position and location and amount of gains and losses recorded related to the derivative instruments (in thousands):

				Fair Value						Gain/(Loss)
Derivatives not designated as hedging instruments		Balance Sheet Location		As of December 31, 2020				Income Statement Location		Period from February 1, 2020 through December 31, 2020 (Successor)
Interest rate swaps		Other Liabilities		$	3,615			Interest expense, net		$ (4,383)

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- References

No definition available.

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- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-URI http://asc.fasb.org/topic&trid=2229140

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 5
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008

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