Company: NGVT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001653477-25-000108
Chunk: 27

Company: Ingevity Corp
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 27
---
 Risk ManagementDuring the third quarter of 2024, we entered into a floating-to-fixed interest rate swap to convert a notional amount of $200.0 million of the variable, Secured Overnight Financing Rate ("SOFR") based interest component of our 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, which was 4.32 percent as of June 30, 2025,  and in return are obligated to pay interest at a fixed rate of 3.84 percent until August 2026. The fair value of the interest rate swap was an asset (liability) of $(0.2) million and $0.6 million at June 30, 2025 and December 31, 2024, respectively.Effect of Cash Flow Hedge Accounting on AOCIIn millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net income (loss)Location of Gain (Loss) Reclassified from AOCI in Net income (loss)Three Months Ended June 30,2025202420252024Cash flow hedging derivativesCurrency exchange contracts$(0.4)$0.1 $(0.2)$— Net salesNatural gas contracts(1.4)— 0.1 (0.8)Cost of salesInterest rate swap contracts— — — — Interest expense, netTotal$(1.8)$0.1 $(0.1)$(0.8)In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net income (loss)Location of Gain (Loss) Reclassified from AOCI in Net income (loss)Six Months Ended June 30,2025202420252024Cash flow hedging derivativesCurrency exchange contracts$(0.5)$0.1 $(0.2)$— Net salesNatural gas contracts(0.4)(0.4)(0.1)(1.5)Cost of salesInterest rate swap contracts(0.8)— — — Interest expense, netTotal$(1.7)$(0.3)$(0.3)$(1.5)Within the next twelve months, we expect to reclassify $0.4 million of net gains from AOCI to income, before taxes.

14

INGEV