Derivatives |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives |
Derivatives Deal-Contingent Foreign Currency Forward
On December 21, 2023, the Company entered into the Deal-Contingent Forward to manage the risk of appreciation of the
GBP-denominated purchase price of the acquisition of Castel. The Deal-Contingent Forward had a 200.0 million GBP
notional amount and was executed when the Castel acquisition closed on May 1, 2024. As the Deal-Contingent Forward
was an economic hedge and had not been designated as an accounting hedge, losses resulting from the Deal-Contingent
Forward were recognized through earnings in the periods incurred.
Interest Rate Cap
In April 2022, the Company entered into an interest rate cap agreement to manage its exposure to interest rate fluctuations
related to the Company’s Term Loan in the amount of $25.5 million. The interest rate cap has a $1,000.0 million notional
amount, 2.75% strike, and terminates on December 31, 2025. At inception, the Company formally designated the interest
rate cap as a cash flow hedge. As of September 30, 2024, the interest rate cap continued to be an effective hedge.
For the three months ended September 30, 2024 and 2023, the decrease of $16.4 million and $0.2 million, respectively, in
the fair value of the interest rate cap were recognized in Other comprehensive income (loss). For the nine months ended
September 30, 2024 and 2023, the decrease of $16.5 million and increase of $0.9 million, respectively, in the fair value of
the interest rate cap were recognized in Other comprehensive income (loss). As of September 30, 2024, the Company
expects $10.6 million of unrealized gains from the interest rate cap to be reclassified into earnings over the next twelve
months. See Note 16, Income Taxes, for further information on the tax effects on other comprehensive income (“OCI”)
related to the interest rate cap.
The location and gains (losses) on derivatives are reported on the Consolidated Statements of Income (Loss) as follows:
The location and fair value of derivatives are reported on the Consolidated Balance Sheets as follows:
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