Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments held as of December 31, 2020 and 2019 are shown below:


		December 31,
	Balance sheet location	2020		2019
Derivative assets:






Derivatives designed as net investment hedges:
Cross currency swaps	Prepaid and other current assets	3,249		3,928


Total derivative assets		$	3,249	$	3,928

Derivative liabilities:
Derivatives designated as cash flow hedges:

Interest rate caps	Accrued liabilities	1,954		420

Interest rate caps	Other long-term liabilities	1,750		2,822
		3,704		3,242
Derivatives designated as net investment hedges:
Cross currency swaps	Other long-term liabilities	30,762		8,134
Total derivative liabilities		$	34,466	$	11,376

Effect of Derivative Instruments Designated as Hedges on Accumulated Other Comprehensive Income

The following table shows the effect of the Company’s derivative instruments designated as hedges on accumulated other comprehensive income (loss) (“AOCI”) and the statements of income for the years ended December 31, 2020, 2019 and 2018:


		Years ended December 31,
		2020				2019				2018
	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		Amount of gain (loss) recognized in OCI on derivatives		Amount of gain (loss) reclassified from AOCI into income
Interest rate caps	Interest (expense) income	$	(167)	$	(54)	$	(3,304)	$	(625)	$	(981)	$	(256)

Schedule of Effect of Cash Flow Hedging Instruments on the Statements of Income

The following table shows the effect of the Company’s cash flow hedge accounting on the consolidated statements of income for the years ended December 31, 2020, 2019 and 2018:


	Location and amount of gain (loss) recognized in income on cash flow hedging relationships
	Years ended December 31,
	2020				2019				2018
	Cost of goods sold		Interest (expense) income		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	$	(834,007)	$	(66,979)	$	(901,512)	$	(87,072)	$	(925,534)	$	(90,758)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income	—		(54)		—		(625)		—		(256)

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income

The following table shows the effect of the Company’s net investment hedges on AOCI and the consolidated statements of income for the years ended December 31, 2020, 2019 and 2018:


	Amount of gain (loss) recognized in OCI on derivative						Location of gain (loss) reclassified from AOCI into income	Amount of gain (loss) reclassified from AOCI into income						Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
	Years ended December 31,							Years ended December 31,							Years ended December 31,
	2020		2019		2018			2020		2019		2018			2020		2019		2018
Cross currency swaps	$	(23,622)	$	17,077	$	18,843	Net (loss) income from discontinued operations, net of tax	$	1,967	$	—	$	—	Interest (expense) income	$	5,090	$	7,320	$	6,752