XML 23 R15.htm IDEA: XBRL DOCUMENT v3.23.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company has interest rate swap arrangements with counterparties to reduce its exposure to variability in cash flows relating to interest payments on its outstanding LIBOR-based Term Loan arrangements. Our interest rate swap arrangements are subject to hedge accounting, by designating the interest rate swaps as hedges on applicable future quarterly interest payments. The following table provides a summary of the Company's interest rate swap arrangements by maturity date as of March 31, 2023 :
Notional ValueEffective DateMaturity DateFixed Rate
$49.0March 31, 2021September 29, 20231.695%
$49.0April 30, 2021September 29, 20231.695%
$100.0March 31, 2021March 28, 20240.451%
$100.0October 31, 2022March 28, 20240.471%
$150.0October 31, 2022March 31, 20240.487%
$385.5August 4, 2022October 31, 20262.857%
$385.5August 5, 2022October 31, 20263.063%
Changes in fair value are recorded in Accumulated other comprehensive income (loss) ("AOCI") in the Condensed Consolidated Balance Sheets and the amounts reclassified out of AOCI are recorded to Interest expense and amortization of debt discount, net in the Condensed Consolidated Statements of Operations.
The fair value of the interest rate swaps is recorded in Other current assets or Accrued expenses and other current liabilities and Other non-current assets or Other non-current liabilities in the Condensed Consolidated Balance Sheets, according to the duration of related cash flows. The fair value of the interest rate swaps was an asset balance of $34.6 and $49.5 as of March 31, 2023 and December 31, 2022, respectively. See Note 8 - Fair Value Measurements for additional information related to the fair value of these derivative instruments.
For additional information on our interest rate risk, see Item 3. Quantitative and Qualitative Disclosures about Market Risk, and see Note 9 - Debt for additional information on our outstanding Term Loan.
Foreign Currency Forward Contracts
The Company periodically enters into foreign currency contracts, which generally do not exceed 180 days in duration, to help manage the Company’s exposure to foreign exchange rate risks. The contracts are not designated as accounting hedges under the applicable sections of ASC 815, Derivatives and Hedging.
The Company accounts for these forward contracts at fair value and recognizes the associated realized and unrealized gains and losses in Other operating income, net in the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2023 and 2022, the Company recognized a (gain) loss from the mark to market adjustment of $(3.2) and $6.7, respectively. The principal amount of outstanding foreign currency contracts was $187.2 as of March 31, 2023 and $165.1 as of December 31, 2022.
The total fair value of the forward contracts represented an asset balance of $3.7 and $0.8, and a liability balance of $0.1 and $0.4, as of March 31, 2023 and December 31, 2022, respectively, which are classified as Other current assets and Accrued expenses and other current liabilities, respectively, in the Condensed Consolidated Balance Sheets. See Note 8 - Fair Value Measurements for additional information related to fair value of these derivative instruments.