Company: NGVT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001653477-25-000091
Chunk: 23

Company: Ingevity Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---
52024Selling, general, and administrative expenses$7.5 $9.5 Restructuring and other (income) charges, net (1)— 22.1 Total amortization expense$7.5 $31.6 _______________(1) Amounts recorded to Restructuring and other (income) charges, net are not included within segment depreciation and amortization.Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: $22.2 million for the remainder of 2025, 2026 - $29.0 million, 2027 - $29.0 million, 2028 - $29.0 million, and 2029 - $29.0 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency exchange rates.

Note 8: Financial Instruments and Risk Management

Cash Flow HedgesForeign Currency Exchange Risk ManagementAs of March 31, 2025, there were $4.7 million open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was a net asset (liability) of $(0.1) million and $0.1 million at March 31, 2025 and December 31, 2024, respectively.Commodity Price Risk ManagementAs of March 31, 2025, we had 1.8 million mmBTUS (millions of British Thermal Units) in open natural gas derivative contracts, designated as cash flow hedges. As of March 31, 2025, open natural gas derivative contracts hedge a portion of forecasted transactions until June 2026. The fair value of the open natural gas derivative contracts was a net asset (liability) of $1.0 million and $0.3 million as of March 31, 2025 and December 31, 2024, respectively.Interest Rate Risk ManagementDuring the third quarter of 2024, we entered into a floating-to-fixed interest rate swap with a notional amount of $200.0 million to manage the variability of cash flows in the interest rate payments associated with our existing Secured Overnight Financing Rate ("SOFR") based interest payments, effectively converting $200.0 million of our floating rate debt to a fixed rate. In accordance with the terms of this instrument, we receive floating rate interest payments based upon one-month U.S. dollar SOFR and in return are obligated