Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

OCI represents income and losses for the reporting period, including the related tax impacts, which are excluded from net income (loss) and recognized directly within AOCI as a component of equity. OCI also includes amounts reclassified to income during the reporting period that were previously recognized within AOCI. Amounts remaining within AOCI are expected to be reclassified out of AOCI in the future, at which point they will be recognized within the consolidated statement of operations as a component of net income (loss). We recognize OCI related to the translation of assets and liabilities of our foreign subsidiaries which are denominated in currencies other than USD, unrealized gains and losses on the effective portion of our derivatives designated in cash flow hedging relationships and derivative and non-derivative instruments designated in net investment hedging relationships, actuarial gains and losses and prior service costs related to our pension and other post-retirement benefit plans, as well as our proportionate share of our equity method investments' OCI. Additionally, when we do not have the expectation or intent to cash settle certain of our intercompany note receivable and note payable positions in the foreseeable future, the remeasurement of these instruments is recorded as a component of foreign currency translation adjustments within OCI. We release stranded tax effects from AOCI using either a specific identification approach or portfolio approach based on the nature of the underlying item. Accumulated Other Comprehensive Income (Loss)

	MCBC stockholders' equity
	Foreign currency translation adjustments		Gain (loss) on derivative instruments		Pension and postretirement benefit adjustments		Equity method investments		Accumulated other comprehensive income (loss)
	(In millions)
As of December 31, 2017	$	(408.5)	$	(13.5)	$	(378.5)	$	(59.5)	$	(860.0)
Foreign currency translation adjustments	(411.6)		—		(0.6)		—		(412.2)
Reclassification of cumulative translation adjustment to income (1)	6.0		—		—		—		6.0
Gain (loss) on net investment hedges	106.4		—		—		—		106.4
Unrealized gain (loss) on derivative instruments	—		14.5		—		—		14.5
Reclassification of derivative (gain) loss to income	—		3.4		—		—		3.4
Pension and other postretirement benefit adjustments	—		—		55.4		—		55.4
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income and settlement	—		—		6.5		—		6.5
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)	—		—		—		(1.0)		(1.0)
Tax benefit (expense)	(51.0)		(4.7)		(13.5)		0.2		(69.0)
As of December 31, 2018	$	(758.7)	$	(0.3)	$	(330.7)	$	(60.3)	$	(1,150.0)
Foreign currency translation adjustments	129.3		—		(2.5)		—		126.8
Gain (loss) on net investment hedges	50.3		—		—		—		50.3
Unrealized gain (loss) on derivative instruments	—		(111.3)		—		—		(111.3)
Reclassification of derivative (gain) loss to income	—		0.6		—		—		0.6
Pension and other postretirement benefit adjustments	—		—		(43.7)		—		(43.7)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income and settlement	—		—		26.5		—		26.5
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)	—		—		—		(14.4)		(14.4)
Tax benefit (expense)	(0.1)		27.0		(2.9)		3.8		27.8
Net period other comprehensive income (loss)	179.5		(83.7)		(22.6)		(10.6)		62.6
Reclassification of stranded tax effects (2)	(73.3)		(3.8)		2.3		—		(74.8)
As of December 31, 2019	$	(652.5)	$	(87.8)	$	(351.0)	$	(70.9)	$	(1,162.2)
Foreign currency translation adjustments	196.0		—		(1.6)		—		194.4
Gain (loss) on net investment hedges	(113.5)		—		—		—		(113.5)
Unrealized gain (loss) on derivative instruments	—		(113.5)		—		—		(113.5)
Reclassification of derivative (gain) loss to income	—		(0.5)		—		—		(0.5)
Pension and other postretirement benefit adjustments	—		—		(52.9)		—		(52.9)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income	—		—		(7.6)		—		(7.6)
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)	—		—		—		19.4		19.4
Tax benefit (expense)	30.5		27.9		15.4		(5.2)		68.6
As of December 31, 2020	$	(539.5)	$	(173.9)	$	(397.7)	$	(56.7)	$	(1,167.8)

(1)As a result of exiting our China business, the associated cumulative foreign currency translation adjustment was reclassified from AOCI and recognized within special items, net upon substantial liquidation. See Note 7, "Special Items" for further details.

(2)Represents the one-time reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the U.S. federal corporate income tax rate as part of the 2017 Tax Act. This reclassification occurred on January 1, 2019 upon adoption of the associated FASB authoritative guidance.

We have significant levels of net assets denominated in currencies other than the USD due to our operations in foreign countries, and therefore we recognize OCI gains and/or losses when those items are translated to USD. The foreign currency translation gains recognized during 2020 and 2019 were primarily due to the strengthening of the CAD and GBP versus the USD. Additionally, the 2020 foreign currency translation adjustment gains were further impacted by the strengthening of other currencies of our Europe operations versus the USD. The foreign currency translation losses recognized during 2018 were due to the weakening of the CAD, GBP and other currencies of our Europe operations versus the USD.

Reclassifications from AOCI to income:

	For the years ended
	December 31, 2020		December 31, 2019		December 31, 2018
	Reclassifications from AOCI						Location of gain (loss) recognized in income
	(In millions)
Gain/(loss) on cash flow hedges:
Forward starting interest rate swaps	$	(2.9)	$	(3.0)	$	(3.0)	Interest expense, net
Foreign currency forwards	4.6		3.1		(0.2)		Cost of goods sold
Foreign currency forwards	(1.2)		(0.7)		(0.2)		Other income (expense), net
Total income (loss) reclassified, before tax	0.5		(0.6)		(3.4)
Income tax benefit (expense)	(0.1)		0.1		0.9
Net income (loss) reclassified, net of tax	$	0.4	$	(0.5)	$	(2.5)
Amortization of defined benefit pension and other postretirement benefit plan items:
Prior service benefit (cost)	$	0.4	$	(0.4)	$	(0.5)	Other pension and postretirement benefits (costs), net
Net actuarial gain (loss) and settlement	7.2		(26.1)		(6.0)		Other pension and postretirement benefits (costs), net
Total income (loss) reclassified, before tax	7.6		(26.5)		(6.5)
Income tax benefit (expense)	(2.4)		6.8		1.6
Net income (loss) reclassified, net of tax	$	5.2	$	(19.7)	$	(4.9)
Other reclassifications from AOCI to Income:
China cumulative translation adjustment resulting from substantial liquidation	$	—	$	—	$	(6.0)	Special items, net
Income tax benefit (expense)	—		—		—
Net income (loss) reclassified, net of tax	$	—	$	—	$	(6.0)
Total income (loss) reclassified, net of tax	$	5.6	$	(20.2)	$	(13.4)