Redeemable Preferred Units Embedded Derivatives

As discussed in Note 10, Stockholders' and Members' Equity, the Company's IPO in July 2021 was a realization event triggering the payment of the make-whole provision related to the Redeemable Preferred Units to Onex. Consequently, the embedded derivatives related to the make-whole provision were no longer outstanding as of March 31, 2022. The Company recognized $12.6 million of loss related to the Redeemable Preferred Units embedded derivatives during the three months ended March 31, 2021. The losses were recognized in Other non-operating loss within the Consolidated Statements of Income.

Additionally, for the three months ended March 31, 2022 and 2021, the Company recognized an increase in cash flows from derivatives of $0 and $12.6 million, respectively, from changes in Other current assets and accrued liabilities within the operating section of the Consolidated Statements of Cash Flows.