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Derivatives and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Derivatives Designated as Cash Flow Hedges

As of December 31, 2021, the Company did not have any derivatives. As of December 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

 

Interest Rate Derivative  Number of
Instruments		  Notional
Interest rate swaps  2  £95.0 million ($128.0 million) at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60.0 million ($67.9 million) at a fixed rate of 0.102% based on the 6 month EURIBOR rate
Schedule of Fair Value of Derivative Financial Instruments

The Company did not have any derivative financial instruments as of December 31, 2021. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of December 31, 2020.

 

   Balance Sheet
Classification		  Asset
Derivatives
Fair Value		   Balance Sheet
Classification		  Liability
Derivatives
Fair Value		 
      (in millions)      (in millions) 
Derivatives designated as hedging instruments:                
Interest Rate Products  Fair Value of Hedging Instruments  $—   Other Current Liabilities and Long Term Derivative Liability  $(2.6)
Total derivatives designated as hedging instruments     $—      $(2.6)
Schedule of Accumulated Other Comprehensive Income

The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the year ended December 31, 2021.

 

   Amount of Gain/(Loss)
Recognized in
Other
Comprehensive
Income on Derivative		      Location of Gain/(Loss)
Reclassified from
Accumulated Other
Comprehensive
Income into Income		 
   (in millions)      (in millions) 
Interest Rate Products  $0.3   Interest Expense  $(1.5)
Total  $0.3      $(1.5)

 

The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the year ended December 31, 2020.

 

   Amount of Gain/(Loss)
Recognized in
Other
Comprehensive
Income on Derivative		      Location of Gain/(Loss)
Reclassified from
Accumulated Other
Comprehensive
Income into Income		 
   (in millions)      (in millions) 
Interest Rate Products  $(2.9)  Interest Expense  $(1.5)
Total  $(2.9)     $(1.5)

 

The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the year ended December 31, 2019.

 

   Amount of Gain/(Loss)
Recognized in
Other
Comprehensive
Income on Derivative		      Location of Gain/(Loss)
Reclassified from
Accumulated Other
Comprehensive
Income into Income		 
   (in millions)      (in millions) 
Interest Rate and Foreign Exchange Products  $2.9   Interest Expense  $1.2 
        Foreign Currency Remeasurement   3.2 
Total  $2.9      $4.4 
Schedule of Consolidated Income Statements

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the year ended December 31, 2021.

 

   Interest
Expense		 
   (in millions) 
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded  $44.3 
      
Gain/(loss) on cash flow hedging relationships in Subtopic 815-20  $(1.5)

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2021 AND 2020, AND FOR THE YEARS ENDED

DECEMBER 31, 2021, 2020 AND 2019

 

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the year ended December 31, 2020.

 

   Interest
Expense		 
   (in millions) 
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded  $30.6 
      
Gain/(loss) on cash flow hedging relationships in Subtopic 815-20  $(1.5)

 

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the year ended December 31, 2019.

 

   Interest
Expense		   Foreign
Currency
Remeasurement		 
   (in millions) 
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded  $27.8   $(3.2)
           
Gain/(loss) on cash flow hedging relationships in Subtopic 815-20  $1.2   $3.2 
Schedule of Financial Instruments Not Designated as Hedging Instruments

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the consolidated statements of operations for the year ended December 31, 2019.

 

 

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 

Location of

Income

Recognized in
Income
on Derivative

   Amount of
Income
Recognized in
Income
on Derivative		 
       (in millions) 
Interest Rate and Foreign Exchange Products  Change in fair value of derivative liability   $2.9 
Schedule of Offsetting of Derivative Assets and Liabilities

Offsetting of Derivative Assets
December 31, 2020                              
    Gross
Amounts		     Gross
Amounts
Offset in the
Statement		    Net Amounts
of Assets
presented in
the
Statement		    Gross Amounts Not Offset in the
Statement of Financial Position		 
    

of

 Recognized
Assets

    

of

Financial
Position

    

of

Financial
Position

    Financial
Instruments		    Cash
Collateral
Received		    Net
Amount		 
    (in millions)  
Fair value of hedging instrument  $—   $—   $—   $—   $—   $— 

 

Offsetting of Derivative Liabilities  
December 31, 2020                                    
    Gross
Amounts		     Gross
Amounts
Offset in the
Statement
    Net Amounts
of Liabilities
presented in
the
Statement		    Gross Amounts Not Offset in the
Statement of Financial Position		 
    

of

 Recognized
Liabilities

    

of

Financial
Position

    

of

Financial
Position

    Financial
Instruments		    Cash
Collateral
Received		    Net
Amount		 
    (in millions)  
Fair value of hedging instrument   $ 2.6     $ —     $ 2.6     $ —     $ —     $ —