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, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments held as of September 30, 2021 and December 31, 2020 are shown below:


	Balance sheet location	September 30, 2021		December 31, 2020
Derivative assets:
Derivatives designated as cash flow hedges:



Interest rate caps	Other long-term assets	$	189	$	—






Total derivative assets		$	189	$	—
Derivative liabilities:
Derivatives designated as cash flow hedges:

Interest rate caps	Accrued liabilities	$	1,937	$	1,954

Interest rate caps	Other long-term liabilities	—		1,750



Total derivative liabilities		$	1,937	$	3,704

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, 2021 and 2020:


		Three months ended September 30,
		2021				2020
	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	$	510	$	(104)	$	573	$	506




		Nine months ended September 30,
		2021				2020
	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	$	1,901	$	(283)	$	(347)	$	(18)

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, 2021 and 2020:


	Location and amount of gain (loss) recognized in income on cash flow hedging relationships
	Three months ended September 30,
	2021				2020
	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	$	(113,784)	$	(9,005)	$	(89,844)	$	(10,430)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income	—		(104)		—		506



	Location and amount of gain (loss) recognized in income on cash flow hedging relationships
	Nine months ended September 30,
	2021				2020
	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	$	(318,768)	$	(28,202)	$	(258,462)	$	(40,864)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest contracts:
Amount of gain (loss) reclassified from AOCI into income	—		(283)		—		(18)

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

The following tables show 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 and 2020:


	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 September 30,					Three months ended September 30,					Three months ended September 30,
	2021		2020			2021		2020			2021		2020
Cross-currency interest rate swaps	$	—	$	(5,206)	Net (loss) income from discontinued operations, net of tax	$	9,754	$	—	Interest (expense) income	$	—	$	1,552

	Amount of pre-tax 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)
	Nine months ended September 30,					Nine months ended September 30,					Nine months ended September 30,
	2021		2020			2021		2020			2021		2020
Cross-currency interest rate swaps	$	9,787	$	9,603	Net (loss) income from discontinued operations, net of tax	$	9,754	$	—	Interest (expense) income	$	545	$	3,244