FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables)

9 Months Ended

Sep. 30, 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 are as follows:


		As of September 30, 2022
	Balance Sheet Location	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
Assets:
Interest rate swaps	Other current assets	$	30.7	$	—	$	30.7	$	—
Interest rate swaps	Other noncurrent assets	85.1		—		85.1		—
Total assets		$	115.8	$	—	$	115.8	$	—

Liabilities:

Private warrants	Warrant liabilities	$	25.6	$	—	$	25.6	$	—
Total liabilities		$	25.6	$	—	$	25.6	$	—


		As of December 31, 2021
	Balance Sheet Location	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
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	September 30, 2022			December 31, 2021
Stock price	$	9.72		$	24.97
Strike price	$	11.50		$	11.50
Remaining life	2.35			3.10
Volatility	46.0		%	34.2		%
Interest rate (1)	4.23		%	0.98		%
Dividend yield (2)	0.10		%	0.04		%

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

(2) September 30, 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 September 30, 2022 and December 31, 2021.


	September 30, 2022				December 31, 2021
	Fair Value		Par Value (1)		Fair Value		Par Value (1)
Term Loan due 2027	$	2,053.9	$	2,150.7	$	2,148.2	$	2,161.7
Senior Secured Notes due 2028	683.3		850.0		853.2		850.0
ABL Revolving Credit Facility due 2025	280.0		280.0		—		—

(1)See “Note 6 — Debt” for additional information.