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Accumulated Other Comprehensive (Loss) Income
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income
NOTE 13 – Accumulated Other Comprehensive (Loss) Income

Shareholders’ equity includes certain items classified as accumulated other comprehensive (loss) income (“AOCI”) in the Condensed Consolidated Balance Sheets, including:
 
Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our revolving credit facility's outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings.  Further information related to our derivative financial instruments is included in Note 12 - Derivative Financial Instruments and Note 16 – Fair Value Measurements.
 
Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense). Further information related to our pension obligations is included in Note 6 – Retirement Plans.
 
Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.  

Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three months and nine months ended September 30, 2019 were $2,473 and $2,828, respectively and transaction losses for the three and nine months ended September 30, 2018 were $1,740 and $2,658, respectively, which have been included in other income (expense) in the Condensed Consolidated Statement of Earnings.

The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2019, are as follows:

 
 
 
 
 
(Gain) Loss
 
 
 
As of
 
Gain (Loss)
 
Reclassified
 
As of
 
June 30,
 
Recognized
 
from AOCI
 
September 30,

2019
 
in OCI
 
to Income
 
2019
Changes in fair market value of hedges:
 
 
 
 
 
 
 
Gross
$
1,036

 
$
(529
)
 
$
(426
)
 
$
81

Income tax (expense) benefit
(234
)
 
119

 
96

 
(19
)
Net
802

 
(410
)
 
(330
)
 
62



 

 

 

Changes in unrealized pension cost:
 
 
 
 
 
 
 
Gross
(129,810
)
 
—

 
1,313

 
(128,497
)
Income tax benefit (expense)
35,297

 
—

 
(296
)
 
35,001

Net
(94,513
)
 
—

 
1,017

 
(93,496
)



 

 


 


Cumulative translation adjustment:
 

 
 
 
 

 
 

Gross
(2,287
)
 
(89
)
 
—

 
(2,376
)
Income tax benefit (expense)
95

 
(3
)
 
—

 
92

Net
(2,192
)
 
(92
)
 
—

 
(2,284
)
Total accumulated other comprehensive (loss) income
$
(95,903
)
 
$
(502
)
 
$
687

 
$
(95,718
)

The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2018, are as follows:
 
 
 
 
 
(Gain) Loss
 
 
 
As of
 
Gain (Loss)
 
Reclassified
 
As of
 
June 30,
 
Recognized
 
from AOCI
 
September 30,

2018
 
in OCI
 
to Income
 
2018
Changes in fair market value of hedges:

 

 
 
 
 
Gross
$
1,418

 
$
1,023

 
$
(217
)
 
$
2,224

Income tax (expense) benefit
(360
)
 
(231
)
 
49

 
(542
)
Net
1,058

 
792

 
(168
)
 
1,682



 

 

 

Changes in unrealized pension cost:
 
 
 
 
 
 
 
Gross
(127,055
)
 
—

 
1,491

 
(125,564
)
Income tax benefit (expense)
52,152

 
—

 
(334
)
 
51,818

Net
(74,903
)
 
—

 
1,157

 
(73,746
)
 
 
 
 
 
 
 
 
Cumulative translation adjustment:
 

 
 
 
 

 
 

Gross
(2,115
)
 
1

 
—

 
(2,114
)
Income tax benefit
98

 
—

 
—

 
98

Net
(2,017
)
 
1

 
—

 
(2,016
)
Total accumulated other comprehensive (loss) income
$
(75,862
)
 
$
793

 
$
989

 
$
(74,080
)



































The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2019 are as follows:
 
 
 
 
 
(Gain) Loss
 
 
 
As of
 
Gain (Loss)
 
Reclassified
 
As of
 
December 31,
 
Recognized
 
from AOCI
 
September 30,

2018
 
in OCI
 
to Income
 
2019
Changes in fair market value of hedges:
 
 
 
 
 
 
 
Gross
$
1,316

 
$
(181
)
 
$
(1,054
)
 
$
81

Income tax (expense) benefit
(298
)
 
41

 
238

 
(19
)
Net
1,018

 
(140
)
 
(816
)
 
62



 

 

 

Changes in unrealized pension cost:
 
 
 
 
 
 
 
Gross
(132,454
)
 
—

 
3,957

 
(128,497
)
Income tax benefit (expense)
35,893

 
—

 
(892
)
 
35,001

Net
(96,561
)
 
—

 
3,065

 
(93,496
)

 

 

 


 


Cumulative translation adjustment:


 
 
 
 

 
 

Gross
(2,291
)
 
(85
)
 
—

 
(2,376
)
Income tax benefit (expense)
95

 
(3
)
 
—

 
92

Net
(2,196
)
 
(88
)
 
—

 
(2,284
)
Total accumulated other comprehensive (loss) income
$
(97,739
)
 
$
(228
)
 
$
2,249

 
$
(95,718
)

The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2018 are as follows:
 
 
 
 
 
(Gain) Loss
 
 
 
As of
 
Gain (Loss)
 
Reclassified
 
As of
 
December 31,
 
Recognized
 
from AOCI
 
September 30,
 
2017
 
in OCI
 
to Income
 
2018
Changes in fair market value of hedges:
 
 
 
 
 
 
 
Gross
$
289

 
$
2,420

 
$
(485
)
 
$
2,224

Income tax (expense) benefit
(105
)
 
(547
)
 
110

 
(542
)
Net
184

 
1,873

 
(375
)
 
1,682



 

 

 

Changes in unrealized pension cost:
 
 
 
 
 
 
 
Gross
(130,096
)
 
—

 
4,532

 
(125,564
)
Income tax benefit (expense)
52,837

 
—

 
(1,019
)
 
51,818

Net
(77,259
)
 
—

 
3,513

 
(73,746
)



 

 


 


Cumulative translation adjustment:
 

 
 
 
 

 
 

Gross
(1,985
)
 
(129
)
 
—

 
(2,114
)
Income tax benefit (expense)
100

 
(2
)
 
—

 
98

Net
(1,885
)
 
(131
)
 
—

 
(2,016
)
Total accumulated other comprehensive (loss) income
$
(78,960
)
 
$
1,742

 
$
3,138

 
$
(74,080
)