Derivatives (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The effects of designated cash flow hedges on the Company’s Consolidated and Combined Condensed Statements of Operations consisted of the following:

		Three Months Ended
Derivative type	Loss recognized in the Consolidated and Combined Condensed Statements of Operations:	March 31, 2023
		(In thousands)
Interest rate swap agreements	Interest expense (income) and other, net	$	(1,977)

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The effects of the excluded components of designated net investment hedges on the Company’s Consolidated and

Combined Statements of Operations consisted of the following:

		Three Months Ended
Derivative type	Gain recognized in the Consolidated and Combined Condensed Statements of Operations:	March 31, 2023
		(In thousands)
Cross currency swap agreements	Interest expense (income) and other, net	$	(1,201)

Schedule of Fair Values of Derivative Instruments in the Financial Statements

The table below shows the fair value of the derivatives recognized in the Consolidated Balance Sheet:

	March 31, 2023				December 31, 2022
Designated as hedging instruments:	Other Liabilities		Other Assets		Other Liabilities		Other Assets
	(In thousands)
Cross currency swap agreements	$	13,462	$	—	$	10,769	$	—
Interest rate swap agreements	—		9,716		—		14,342
Total	$	13,462	$	9,716	$	10,769	$	14,342

Derivatives Not Designated as Hedging Instruments

The table below shows the fair value of derivative instruments not designated in a hedging relationship recognized in the Consolidated Balance Sheet:

	March 31, 2023				December 31, 2022
Not designated as hedging instruments	Accrued Liabilities		Other Current Assets		Accrued Liabilities		Other Current Assets
	(In thousands)
Foreign currency contracts	$	96	$	1,754	$	2,166	$	3,682

Schedule of Derivative Instruments

The Company recognized the following in its Consolidated and Combined Condensed Financial Statements related to its derivative instruments not designated in a hedging relationship:

	Three Months Ended
Foreign currency contracts	March 31, 2023		April 1, 2022
	(In thousands)
Change in unrealized gains (losses)	$	143	$	(1,186)
Realized gain (loss)(1)	1,027		(14,479)

(1) The three months ended April 1, 2022 includes realized losses relating to certain corporate entities contributed to ESAB Corporation which are reflected within Interest expense (income) and other, net, in the Consolidated and Combined Condensed Statements of Operations. See Note 1 “Organization and Basis of Presentation” for additional details. These realized losses are offset by unrealized gains which are also reflected within Interest expense (income) and other, net, in the Consolidated and Combined Condensed Statements of Operations during the three months ended April 1, 2022.