Company: GPI
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001031203-25-000029
Chunk: 16

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 valuation method incorporate identical contractual notional amounts, fixed coupon rates, periodic terms for interest payments and contract maturity. The fair value of the interest rate swaps also considers the credit risk of the Company for instruments in a liability position or the counterparty for instruments in an asset position. The credit risk is calculated using the spread between the SOFR yield curve and the relevant interest rate according to rating agencies. The inputs to the fair value measurements reflect Level 2 of the hierarchy framework.Assets associated with the Company’s interest rate swaps, as reflected gross in the Condensed Consolidated Balance Sheets, were as follows (in millions):  March 31, 2025December 31, 2024Assets:Other current assets$1.3 $1.8 Other long-term assets (1)64.3 77.5 Total assets$65.5 $79.3 (1) As of March 31, 2025 and December 31, 2024, the balance included gross fair value of $2.9 million and $3.4 million, respectively, related to the de-designated swaps as described below.There were no liabilities associated with the Company’s interest rate swaps as of March 31, 2025 and December 31, 2024.Interest Rate Swaps De-designated as Cash Flow HedgesAs of March 31, 2025, the Company had one de-designated interest rate swap with a total aggregate notional value of $26.7 million and an interest rate of 0.60%. The de-designated swap will mature on March 1, 2030. No interest rate swaps were de-designated by the Company during the three months ended March 31, 2025. The Company recorded unrealized mark-to-market losses of $0.5 million and gains of $0.3 million and realized gains of $0.3 million and $0.4 million associated with de-designated interest rate swaps within Other interest expense, net, for the three months ended March 31, 2025 and 2024, respectively. 

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Table of Contents            GROUP 1 AUTOMOTIVE, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Interest Rate Swaps Designated as Cash Flow HedgesInterest rate swaps designated as cash flow hedges and the related gains or losses are deferred in stockholders’ equity as a component of A