Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

NOTE 14 – Accumulated Other Comprehensive Loss

Shareholders’ equity includes certain items classified as accumulated other comprehensive loss (“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 13 - Derivative Financial Instruments and Note 17 – 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 7 – 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 and six months ended June 30, 2022 were $3,817 and $3,529, respectively. Transaction losses and (gains) for the three and six months ended June 30, 2021 were $928 and $(401), respectively. The impact of these changes have been included in other income (expense) in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive loss for the three months ended June 30, 2022 are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2022			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	969		$	976		$	(61	)	$	1,884
Income tax benefit (expense)		(221	)		(224	)		14			(431	)
Net		748			752			(47	)		1,453
Changes in unrealized pension cost:
Gross		(2,624	)		1,977			143			(504	)
Income tax benefit (expense)		712			—			(38	)		674
Net		(1,912	)		1,977			105			170
Cumulative translation adjustment:
Gross		(2,281	)		(2,012	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,281	)		(2,012	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(3,445	)	$	717		$	58		$	(2,670	)

The components of accumulated other comprehensive loss for the three months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	March 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(877	)	$	490		$	(142	)	$	(529	)
Income tax (expense) benefit		203			(113	)		33			123
Net		(674	)		377			(109	)		(406	)
Changes in unrealized pension cost:
Gross		(126,157	)		499			21,606			(104,052	)
Income tax benefit (expense)		34,492			(115	)		(4,966	)		29,411
Net		(91,665	)		384			16,640			(74,641	)
Cumulative translation adjustment:
Gross		(2,024	)		1			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,024	)		1			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(94,363	)	$	762		$	16,531		$	(77,070	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2022, are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2021			in OCI			to Earnings			2022
Changes in fair market value of derivatives:
Gross	$	(635	)	$	2,554			(35	)	$	1,884
Income tax (expense) benefit		147			(587	)		9			(431	)
Net		(488	)		1,967			(26	)		1,453
Changes in unrealized pension cost:
Gross		(2,744	)		1,977			263			(504	)
Income tax benefit (expense)		738			—			(64	)		674
Net		(2,006	)		1,977			199			170
Cumulative translation adjustment:
Gross		(2,032	)		(2,261	)		—			(4,293	)
Income tax benefit (expense)		—			—			—			—
Net		(2,032	)		(2,261	)		—			(4,293	)
Total accumulated other comprehensive (loss) income	$	(4,526	)	$	1,683		$	173		$	(2,670	)

The components of accumulated other comprehensive loss for the six months ended June 30, 2021, are as follows:

							(Gain) Loss
	As of			Gain			Reclassified			As of
	December 31,			Recognized			from AOCI			June 30,
	2020			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(1,038	)	$	696			(187	)	$	(529	)
Income tax (expense) benefit		240			(160	)		43			123
Net		(798	)		536			(144	)		(406	)
Changes in unrealized pension cost:
Gross		(128,004	)		499			23,453			(104,052	)
Income tax benefit (expense)		34,917			(115	)		(5,391	)		29,411
Net		(93,087	)		384			18,062			(74,641	)
Cumulative translation adjustment:
Gross		(2,036	)		13			—			(2,023	)
Income tax benefit (expense)		—			—			—			—
Net		(2,036	)		13			—			(2,023	)
Total accumulated other comprehensive (loss) income	$	(95,921	)	$	933		$	17,918		$	(77,070	)