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, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments held as of March 31, 2018 and December 31, 2017 are shown below:



	Balance sheet location	March 31, 2018		December 31, 2017
Derivative assets:
Derivatives designated as cash flow hedges:
Interest rate caps	Prepaid and other current assets	$	1,039	$	44
Interest rate caps	Other long-term assets	2,857		999
		3,896		1,043
Derivatives designed as net investment hedges:
Cross currency swaps	Prepaid and other current assets	6,327		—
Total derivative assets		$	10,223	$	1,043

Derivative liabilities:
Derivatives designated as cash flow hedges:
Natural gas swaps	Accrued liabilities	$	246	$	318
Natural gas swaps	Other long-term liabilities	177		130
		423		448
Derivatives designated as net investment hedges:
Cross currency swaps	Other long-term liabilities	15,603		—
Total derivative liabilities		$	16,026	$	448

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 (loss) (“AOCI”) for the three months ended March 31, 2018 and 2017:



		Three months ended March 31,
		2018					2017
	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	$	2,852	$	(35	)	$	(2,311	)	$	(2	)
Natural gas swaps	Cost of goods sold	53		28			(535		)	18
		2,905		(7		)	(2,846		)	16

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 consolidated statements of operations for the three months ended March 31, 2018 and 2017:



	Location and amount of gain (loss) recognized in income on cash flow hedging relationships
	Three months ended March 31,
	2018						2017
	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 operations in which the effects of cash flow hedges are recorded	$	(288,076	)	$	(29,163	)	$	(250,219	)	$	(46,785	)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income	—			(35		)	—			(2		)
Commodity contracts:
Amount of gain (loss) reclassified from AOCI into income	28			—			18			—

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 consolidated statements of operations for the three months ended March 31, 2018 and 2017:



	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,
	2018			2017			2018		2017			2018		2017
Cross currency swaps	$	(9,276	)	$	—	Gain (loss) on sale of subsidiary	$	—	$	—	Interest (expense) income	$	1,167	$	—