Quarterly report pursuant to Section 13 or 15(d)

Interest Rate Swap

v3.22.2.2
Interest Rate Swap
9 Months Ended
Sep. 30, 2022
Interest Rate Cash Flow Hedges [Abstract]  
Interest Rate Swap

10. Interest Rate Swap

In May 2020, the Company entered into a pay-fixed, receive-floating interest rate swap (the “Swap”) to mitigate variability in forecasted interest payments on an amortizing notional of $550,000 of the Company’s variable-rate First Lien Term Loan. The Company designated the Swap as a cash flow hedge.

As of September 30, 2022, information pertaining to the Swap was as follows:

 

Notional Amount

 

 

Fair Value

 

 

Pay-Fixed

 

Receive-Floating

 

Maturity Date

$

540,228

 

 

$

1,206

 

 

0.308%

 

2.99%

 

October 20, 2022

 

As of September 30, 2022 and December 31, 2021, the fair value of the Swap was $1,206 and $268, respectively, and is reported as a debit balance as a result of floating interest rates above fixed interest rates, and is included in prepaid expenses and other current assets in the accompanying unaudited condensed consolidated balance sheets.

For the three months ended September 30, 2022 and 2021, amounts reported in other comprehensive income (loss) in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) are net of tax of $(601) and $18, respectively.

For the nine months ended September 30, 2022 and 2021, amounts reported in other comprehensive income (loss) in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) are net of tax of $125 and $133, respectively

In October 2022, the interest rate swap expired and was not replaced by a new interest rate swap.