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)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments held as of March 31, 2019 and December 31, 2018 are shown below:



	Balance sheet location	March 31, 2019		December 31, 2018
Derivative assets:
Derivatives designated as cash flow hedges:
Natural gas swaps	Prepaid and other current assets	$	88	$	21
Interest rate caps	Prepaid and other current assets	442		$	1,358
Interest rate caps	Other long-term assets	68		546
		598		1,925
Derivatives designed as net investment hedges:
Cross currency swaps	Prepaid and other current assets	7,224		5,499
Cross currency swaps	Other long-term assets	20,172		13,344
		27,396		18,843
Total derivative assets		$	27,994	$	20,768

Derivative liabilities:
Derivatives designated as cash flow hedges:
Natural gas swaps	Accrued liabilities	$	—	$	36
Natural gas swaps	Other long-term liabilities	72		148
Interest rate caps	Other long-term liabilities	2,820		1,842
Total derivative liabilities		$	2,892	$	2,026

Effect of Derivative Instruments Designated as Hedges on Other Comprehensive Income

The following table shows the effect of the Company’s derivative instruments designated as cash flow hedges on accumulated other comprehensive income (“AOCI”) for the three months ended March 31, 2019 and 2018:



		Three months ended March 31,
		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
Interest rate caps	Interest (expense) income	$	(2,373	)	$	(123	)	$	2,852	$	(35	)
Natural gas swaps	Cost of goods sold	371			191			53		28
		$	(2,002	)	$	68		$	2,905	$	(7	)

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

The following table shows the effect of the Company’s cash flow hedge accounting on the condensed consolidated statements of income for the three months ended March 31, 2019 and 2018:



	Location and amount of gain (loss) recognized in income on cash flow hedging relationships
	Three months ended March 31,
	2019				2018
	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	(278,311	)	(28,618	)	(288,076	)	(29,163	)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income	—		(123	)	—		(35	)
Commodity contracts:
Amount of gain (loss) reclassified from AOCI into income	191		—		28		—

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 months ended March 31, 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)
	Three months ended March 31,						Three months ended March 31,					Three months ended March 31,
	2019		2018				2019		2018			2019		2018
Cross currency swaps	$	8,553	$	(9,276	)	Gain (loss) on sale of subsidiary	$	—	$	—	Interest (expense) income	$	1,446	$	1,167