Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Financial Instruments Recognized at Fair Value

A summary of the Company's financial instruments recognized at fair value, and the fair value measurements used, follows:


	Balance Sheet Location	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
March 31, 2022
Assets:
Interest rate swaps	Other current assets	$	4.4	$	—	$	4.4	$	—
Interest rate swaps	Other noncurrent assets	58.5		—		58.5		—
Total assets		$	62.9	$	—	$	62.9	$	—

Liabilities:

Contingent consideration	Accrued expenses and other liabilities	$	2.2	$	—	$	—	$	2.2
Private warrants	Warrant liabilities	54.7		—		54.7		—
Total liabilities		$	56.9	$	—	$	54.7	$	2.2


	Balance Sheet Location	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
December 31, 2021
Assets:
Interest rate swaps	Other noncurrent assets	$	16.1	$	—	$	16.1	$	—
Total assets		$	16.1	$	—	$	16.1	$	—

Liabilities:
Interest rate swaps	Accrued expenses and other liabilities	$	7.4	$	—	$	7.4	$	—
Contingent consideration	Accrued expenses and other liabilities	3.7		—		—		3.7
Private warrants	Warrant liabilities	149.6		—		149.6		—
Total liabilities		$	160.7	$	—	$	157.0	$	3.7

Fair Value Measurement Inputs and Valuation Techniques

The significant assumptions which the Company used in the model are:


Warrant valuation inputs	March 31, 2022			December 31, 2021
Stock price	$	14.00		$	24.97
Strike price	$	11.50		$	11.50
Remaining life	2.85			3.10
Volatility	41.0		%	34.2		%
Interest rate (1)	2.42		%	0.98		%
Dividend yield (2)	0.07		%	0.04		%

(1) Interest rate determined from a constant maturity treasury yield

(2) March 31, 2022 and December 31, 2021 dividend yield assumes $0.01 per share per annum.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the estimated fair value and carrying value of long-term debt, including the current portion of long-term debt as of March 31, 2022 and December 31, 2021.


	March 31, 2022				December 31, 2021
	Fair Value		Par Value (1)		Fair Value		Par Value (1)
Term Loan due 2027	$	2,102.3	$	2,156.2	$	2,148.2	$	2,161.7
Senior Secured Notes due 2028	773.5		850.0		853.2		850.0

(1)See Note 6 — Debt for additional information