Company: MATV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001000623-25-000024
Chunk: 23

Company: Mativ Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 23
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)Three Months EndedMarch 31,20252024Derivatives designated as cash flow hedgeAmounts included in assessment of effectiveness$(3.0)$10.2 Derivatives designated as net investment hedgeAmounts included in assessment of effectiveness(17.7)8.7 Total gain (loss)$(20.7)$18.9 The Company's designated derivative instruments are highly effective. As such, there were no gains or losses recognized immediately in income related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing for the three months ended March 31, 2025 or 2024, other than those related to derivatives designated as a net investment hedge, noted below.

21

MATIV HOLDINGS, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Gains (losses) on derivatives within the Condensed Consolidated Statement of Income (Loss) were as follows (in millions): Location of Gains (Losses)Amount of Gains (Losses) RecognizedThree Months EndedMarch 31,20252024Effect of cash flow hedgesAmount reclassified from Accumulated other comprehensive loss to incomeInterest expense$3.9 $6.3 Effect of net investment hedgesAmount excluded from assessment of hedge effectivenessInterest expense2.0 2.0 Effect of fair value hedgesHedged itemInterest expense— 1.1 Derivative designated as hedgesInterest expense— (1.1)Effect of non-designated hedgesForeign exchange contractsOther income0.1 1.7 Total gain$6.0 $10.0 

Deferred gains of $8.2 million attributable to settled interest rate swaps designated as cash flow hedges are expected to be reclassified to Interest expense over the next twelve months. 

Note 11. Commitments and Contingencies

Other CommitmentsIn connection with the EP Divestiture, we undertook to indemnify and hold Evergreen Hill Enterprise harmless from claims and liabilities related to the EP business that were identified as excluded or specified liabilities in the related agreements up to an amount not to exceed $10 million. As of March 31, 2025, there were no material claims pending under this indemnification.Litigation We are involved in various legal proceedings from time to time, including relating to contracts, commercial disputes, taxes, environmental issues, employment and workers' compensation claims, product