We employ established policies and procedures to manage our exposure to changes in interest rates and foreign currencies. We use foreign exchange forward and option contracts to hedge certain short-term foreign currency denominated loans and third-party and intercompany transactions. We may also use foreign exchange forward contracts to hedge our net investments in our foreign subsidiaries. In addition, we may use interest rate derivatives to hedge a portion of the interest rate exposure on our outstanding debt or in anticipation of a future debt issuance, as discussed under “Interest Rate Risk Management” below.

We do not use derivative financial instruments for trading or speculative purposes. If a hedging instrument is not designated as a hedge or ceases to qualify as a hedge in accordance with hedge accounting guidelines, any subsequent gains and losses are recognized currently in income. Collateral is generally not required for these types of instruments.

By their nature, all such instruments involve risk, including the credit risk of non-performance by counterparties. However, at December 31, 2021 and 2020, there was no significant risk of loss in the event of non-performance of the counterparties to these financial instruments. We control our exposure to credit risk through monitoring procedures and by selection of reputable counterparties.

Our objective in managing our exposure to interest rates is to limit the impact of interest rate changes on our earnings, cash flows and financial position, and to lower our overall borrowing costs. To achieve these objectives, we maintain a practice that floating-rate debt be managed within a minimum and maximum range of our total debt exposure. To manage our exposure and limit volatility, we may use fixed-rate debt, floating-rate debt and/or interest rate swaps. We recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet.

We use interest rate swaps to manage the impact of interest rate changes on our earnings. Under the swap agreements, we make monthly payments based on the fixed interest rate and receive monthly payments based on the floating rate. The objective of the swaps is to mitigate the variation of future cash flows from changes in the floating interest rates on our existing debt. The swaps are designated and accounted for as cash flow hedges. Changes in the fair value of the hedging instruments are recorded in other comprehensive income (loss) and reclassified to earnings in the same line item associated with the hedged item when the hedged item impacts earnings.

On March 30, 2021, the Company entered into three-year interest rate swaps with an aggregate notional amount of $1 billion, effective March 29, 2021 through March 27, 2024. For these swaps, the Company pays a fixed rate of 0.467% and receives the one-month LIBOR rate. The interest rate swaps, with an aggregate notional amount of $129 million, under the April 20, 2018 agreement expired on April 27, 2021.

Our objective in managing exposure to foreign currency fluctuations is to reduce the volatility caused by foreign exchange rate changes on the earnings, cash flows and financial position of our international operations. From time to time, we follow a practice of hedging certain balance sheet positions denominated in currencies other than the functional currency applicable to each of our various subsidiaries. In addition, we are subject to foreign exchange risk associated with our international earnings and net investments in our foreign subsidiaries. We may use short-term, foreign exchange forward and, from time to time, option contracts to execute our hedging strategies. Typically, these contracts have maturities of 12 months or less. These contracts are denominated primarily in the British pound sterling, the Euro, the Swedish Krona, and the Norwegian Krone. The gains and losses on the forward contracts associated with our balance sheet positions are recorded in “Other income (expense) – net” in the consolidated statements of operations and comprehensive income (loss) and are essentially offset by the losses and gains on the underlying foreign currency transactions. Our foreign exchange forward contracts are not designated as hedging instruments under authoritative guidance.

To decrease earnings volatility, we currently hedge substantially all our intercompany balance positions denominated in a currency other than the functional currency applicable to each of our various subsidiaries with short-term, foreign exchange forward contracts. In the prior year, certain balance sheet positions were not being hedged in order to reduce the volatility of cash flows required to settle these forward contracts. However, starting in the third quarter of 2020, we resumed our practice of hedging substantially all our intercompany balance positions. The underlying transactions and the corresponding foreign exchange forward contracts are marked to market at the end of each quarter and the fair value impacts are reflected within “Non-operating income (expense) – net” in the consolidated financial statements. In addition, in connection with the acquisition of Bisnode, we entered into a zero-cost foreign currency collar in October 2020, with a notional amount of SEK 4.8 billion to reduce our foreign currency exposure. Unrealized gain associated with the instrument was $23.5 million at December 31, 2020. We settled the collar on January 8, 2021 with a total realized gain of $21.0 million upon the close of the Bisnode transaction, resulting in a loss of $2.5 million for the year ended December 31, 2021.

As of December 31, 2021 and December 31, 2020, the notional amounts of our foreign exchange contracts were $448.5 million and $212.9 million, respectively. Realized gains and losses associated with these contracts were $11.4 million and $10.1 million, respectively, for the year ended December 31, 2021; $17.4 million and $9.7 million, respectively, for the year ended December 31, 2020; and $18.2 million and $27.6 million, respectively, for the period from January 1 to December 31, 2019. Unrealized gains and losses associated with these contracts were $1.9 million and $0.7 million, respectively, at December 31, 2021; $2.0 million and $0.9 million, respectively, at December 31, 2020; and $0.3 million and $0.5 million, respectively, at December 31, 2019.


	Asset derivatives						Liability derivatives
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
	Balance sheet location	Fair value		Balance sheet location	Fair value		Balance sheet location	Fair value		Balance sheet location	Fair value
Derivatives designated as hedging instruments
Interest rate contracts	Other current assets	$	10.1	Other current assets	$	—	Other accrued & current liabilities	$	—	Other accrued & current liabilities	$	1.0
Total derivatives designated as hedging instruments		$	10.1		$	—		$	—		$	1.0
Derivatives not designated as hedging instruments
Foreign exchange collar	Other current assets	$	—	Other current assets	$	23.5		$	—		$	—
Foreign exchange forward contracts	Other current assets	1.9		Other current assets	2.0		Other accrued & current liabilities	0.7		Other accrued & current liabilities	0.9

Total derivatives not designated as hedging instruments		$	1.9		$	25.5		$	0.7		$	0.9
Total derivatives		$	12.0		$	25.5		$	0.7		$	1.9


	Amount of pre-tax gain or (loss) recognized in OCI on derivative
	Successor						Predecessor
Derivatives in cash flow hedging relationships	Year ended December 31, 2021		Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019
Interest contracts	$	11.1	$	0.9	$	(1.6)	$	—


	Amount of gain or (loss) reclassified from accumulated OCI into income
	Successor						Predecessor
Location of gain or (loss) reclassified from accumulated OCI into income	Year ended December 31, 2021		Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019
Interest expense	$	(3.4)	$	(2.8)	$	(0.7)	$	—


	Amount of gain or (loss) recognized in income on derivative
	Successor						Predecessor
Location of gain or (loss) recognized in income on derivative	Year ended December 31, 2021		Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019
Interest expense	$	(3.4)	$	(2.8)	$	(0.7)	$	—


Derivatives not designated as hedging instruments	Location of gain or (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives

		Successor						Predecessor
		Year ended December 31, 2021		Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019
Make-whole derivative liability	Non-operating income (expenses) – net	$	—	$	(32.8)	$	(172.4)	$	—
Foreign exchange collar	Non-operating income (expenses) – net	$	(2.5)	$	23.5	$	—	$	—
Foreign exchange forward contracts	Non-operating income (expenses) – net	$	1.4	$	9.0	$	(12.0)	$	1.8

Our financial assets and liabilities that are reflected in the consolidated financial statements include derivative financial instruments, cash and cash equivalents, accounts receivable, other receivables, accounts payable, short-term borrowings and long-term borrowings.


	Quoted prices in active markets for identical assets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Balance at December 31, 2021
Assets:
Cash equivalents (1)	$	1.7	$	—	$	—	$	1.7
Other current assets:
Foreign exchange forwards (2)	$	—	$	1.9	$	—	$	1.9

Swap arrangements (4)	$	—	$	10.1	$	—	$	10.1
Liabilities:
Other accrued and current liabilities:
Foreign exchange forwards (2)	$	—	$	0.7	$	—	$	0.7


	Quoted prices in active markets for identical assets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Balance at December 31, 2020
Assets:
Cash equivalents (1)	$	212.3	$	—	$	—	$	212.3
Other current assets:
Foreign exchange forwards (2)	$	—	$	2.0	$	—	$	2.0
Foreign exchange collar (3)	$	—	$	23.5	$	—	$	23.5
Other accrued and current liabilities:
Foreign exchange forwards (2)	$	—	$	0.9	$	—	$	0.9
Swap arrangements (4)	$	—	$	1.0	$	—	$	1.0

At December 31, 2021 and December 31, 2020, the fair value of cash and cash equivalents, accounts receivable, other receivables and accounts payable approximated carrying value are due to the short-term nature of these instruments. The estimated fair values of other financial instruments subject to fair value disclosures, determined based on valuation models using discounted cash flow methodologies with market data inputs from globally recognized data providers and third-party quotes from major financial institutions (categorized as Level II in the fair value hierarchy), are as follows:

In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges and for acquisition accounting in accordance with the guidance in ASC 805 "Business Combinations."