NONCONTROLLING INTERESTS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NONCONTROLLING INTERESTS | NOTE 13 – NONCONTROLLING INTERESTS As discussed in Note 12 – Variable Interest Entity, the Company has consolidated Cape PI HoldCo and Cape PI Intermediate HoldCo, which were determined to be VIEs for which the Company is the primary beneficiary. Both entities issued Class A Units to third-party investors that represent equity interests in the respective consolidated subsidiaries. Because the Company does not own 100.0% of the outstanding equity in these entities, the Class A Units are accounted for as noncontrolling interests in the consolidated financial statements. The Class A Units issued by Cape PI HoldCo (“CPI HoldCo Class A Units”) and Intermediate Class A Units issued by Cape PI Intermediate HoldCo (“Intermediate Class A Units”) contain redemption features that are outside the control of the respective issuers but are contingent upon the availability of distributable cash. Accordingly, these Class A Units are classified as redeemable noncontrolling interest and are presented as mezzanine equity on the Condensed Consolidated Balance Sheets. CPI HoldCo Class A Units are initially recorded at fair value at the time of issuance, less the direct and incremental issuance costs, and are subsequently measured at the current redemption value to the extent such current redemption value exceeds the attribution of income (loss) to the CPI HoldCo Class A Units. Intermediate Class A Units are initially recorded at proceeds received less the fair value of the warrants issued along with the Intermediate Class A Units and allocated issuance cost. Intermediate Class A Units are subsequently remeasured at their maximum redemption value, to the extent such amounts exceed the allocation of income or loss attributable to the noncontrolling interest. Additionally, two derivatives were identified as being embedded in the Intermediate Class A Units. As of June 30, 2026, conditions relevant to the embedded derivatives were evaluated and one feature was determined to have a fair value of $0.1 million. This amount is included in Other current liabilities (see Note 7 – Other Current Liabilities). Changes in the fair value of the embedded derivative are recognized in earnings. For the three and six months ended June 30, 2026, the Company recognized gains of $0.4 million and $1.6 million, respectively, which were recorded in Other non-operating expense, net. There were no material changes to the terms, classification or measurement of the Company’s redeemable noncontrolling interests during the six months ended June 30, 2026. The following table is a summary of the changes in redeemable noncontrolling interest for CPI HoldCo Class A Units for the six months ended June 30, 2026:
The following table is a summary of the changes in redeemable noncontrolling interest for Intermediate Class A Units for the six months ended June 30, 2026:
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