Ecovyst, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments held as of September 30, 2022 and December 31, 2021 are shown below:


	Balance sheet location	September 30, 2022		December 31, 2021
Derivative assets:
Derivatives designated as cash flow hedges:

Interest rate caps	Prepaid and other current assets	$	17,347	$	—

Interest rate caps	Other long-term assets	18,644		1,080






Total derivative assets		$	35,991	$	1,080

Derivative liabilities:
Derivatives designated as cash flow hedges:

Interest rate caps	Accrued liabilities	$	—	$	1,288





Total derivative liabilities		$	—	$	1,288

Effect of Derivative Instruments Designated as Hedges on Other Comprehensive Income

The following tables show the effect of the Company’s derivative instruments designated as cash flow hedges on AOCI for the three and nine months ended September 30, 2022 and 2021:


		Three months ended September 30,
		2022				2021
	Location of gain (loss) reclassified from AOCI into income	Amount of gain (loss) recognized in OCI on derivatives		Amount of gain (loss) reclassified from AOCI into income		Amount of gain (loss) recognized in OCI on derivatives		Amount of gain (loss) reclassified from AOCI into income
Interest rate caps	Interest (expense) income	$	12,159	$	(29)	$	510	$	(104)




		Nine months ended September 30,
		2022				2021
	Location of gain (loss) reclassified from AOCI into income	Amount of gain (loss) recognized in OCI on derivatives		Amount of gain (loss) reclassified from AOCI into income		Amount of gain (loss) recognized in OCI on derivatives		Amount of gain (loss) reclassified from AOCI into income
Interest rate caps	Interest (expense) income	$	36,200	$	(627)	$	1,901	$	(283)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following tables show the effect of the Company’s cash flow hedge accounting on the condensed consolidated statements of income for the three and nine months ended September 30, 2022 and 2021:



	Three months ended September 30,
	2022				2021
	Cost of goods sold		Interest (expense) income		Cost of goods sold		Interest (expense) income
Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded	$	(164,864)	$	(9,542)	$	(113,784)	$	(9,005)


Interest contracts:
Amount of loss reclassified from AOCI into income	—		(29)		—		(104)




	Nine months ended September 30,
	2022				2021
	Cost of goods sold		Interest (expense) income		Cost of goods sold		Interest (expense) income
Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded	$	(462,156)	$	(26,880)	$	(318,768)	$	(28,202)


Interest contracts:
Amount of loss reclassified from AOCI into income	—		(627)		—		(283)

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

The following table shows the effect of the Company’s net investment hedges on AOCI and the condensed consolidated statements of income for the three and nine months ended September 30, 2021:

Amount of pre-tax gain recognized in OCI on derivative

Location of gain (loss) reclassified from AOCI into income

Amount of gain reclassified from AOCI into income

Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)

Amount of gain recognized in income on derivative (amount excluded from effectiveness testing)

Three months ended
September 30, 2021

Cross-currency interest rate swaps

—

Net (loss) income from discontinued operations, net of tax

9,754

Interest (expense) income

—