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Subsequent Events
9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Divestiture of Life Sciences Business
The sale of our Life Sciences business closed on October 6, 2020. We received cash proceeds at closing of $757.2 million. The purchase price is subject to customary post-closing adjustments and is expected to be finalized in the first quarter of 2021. We prepaid $700.0 million in the aggregate on the Senior Secured Term Loan and the Incremental Term Loan immediately following the sale. We also paid in full the outstanding balance on the Senior Secured Revolver. We expect to recognize a gain on sale of greater than $100 million, net of income taxes, in the fourth quarter of 2020. Under the terms of a transition services agreement, we are providing certain support services for up to 180 days from the closing date of the sale.
Senior Secured Revolver
On October 6, 2020, the total borrowing capacity of the Senior Secured Revolver was reduced to $60.0 million from $75.0 million, and we repaid the entire principal balance outstanding.
Discontinuation of Hedge Accounting
In connection with the prepayment of debt on October 6, 2020, with proceeds from the sale of our Life Sciences business, the outstanding balance of our variable rate debt fell below the $700.0 million notional amount of the interest rate swap contract. After the prepayment, a portion of the hedged interest payments were no longer probable of occurring, and the hedging relationship on this portion was no longer highly effective. Therefore, part of the interest rate swap no longer qualified for hedge accounting after the debt prepayment. After the discontinuation of hedge accounting, changes in the fair value of this portion of the swap will be recognized in earnings rather than in accumulated other comprehensive income. During the fourth quarter of 2020, the accumulated loss in accumulated other comprehensive income related to the hedged interest payments that are no longer probable of occurring will be reclassified to earnings.