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Accumulated Other Comprehensive Loss
 9 Months Ended
Sep. 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, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone denominated variable rate debt. 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 nine months ended September 30, 2022 were $451 and $3,980, respectively. Transaction losses for the three and nine months ended September 30, 2021 were $1,011 and $1,412, 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 September 30, 2022 are as follows:

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

June 30,

 

 

Recognized

 

 

from AOCI

 

 

September 30,

 

 

 

2022

 

 

in OCI

 

 

to Earnings

 

 

2022

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

1,884

 

 

$

2,539

 

 

$

(295

)

 

$

4,128

 

Income tax benefit (expense)

 

 

(431

)

 

 

(585

)

 

 

68

 

 

 

(948

)

Net

 

 

1,453

 

 

 

1,954

 

 

 

(227

)

 

 

3,180

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(504

)

 

 

161

 

 

 

(1,954

)

 

 

(2,297

)

Income tax benefit (expense)

 

 

674

 

 

 

(492

)

 

 

450

 

 

 

632

 

Net

 

 

170

 

 

 

(331

)

 

 

(1,504

)

 

 

(1,665

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(4,293

)

 

 

(6,071

)

 

 

—

 

 

 

(10,364

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(4,293

)

 

 

(6,071

)

 

 

—

 

 

 

(10,364

)

Total accumulated other comprehensive (loss) income

 

$

(2,670

)

 

$

(4,448

)

 

$

(1,731

)

 

$

(8,849

)

 

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

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

June 30,

 

 

Recognized

 

 

from AOCI

 

 

September 30,

 

 

 

2021

 

 

in OCI

 

 

to Earnings

 

 

2021

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(529

)

 

$

(128

)

 

$

(251

)

 

$

(908

)

Income tax benefit (expense)

 

 

123

 

 

 

29

 

 

 

58

 

 

 

210

 

Net

 

 

(406

)

 

 

(99

)

 

 

(193

)

 

 

(698

)

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(104,052

)

 

 

(5,450

)

 

 

106,622

 

 

 

(2,880

)

Income tax benefit (expense)

 

 

29,411

 

 

 

1,254

 

 

 

(29,896

)

 

 

769

 

Net

 

 

(74,641

)

 

 

(4,196

)

 

 

76,726

 

 

 

(2,111

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,023

)

 

 

(10

)

 

 

—

 

 

 

(2,033

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,023

)

 

 

(10

)

 

 

—

 

 

 

(2,033

)

Total accumulated other comprehensive (loss) income

 

$

(77,070

)

 

$

(4,305

)

 

$

76,533

 

 

$

(4,842

)

 

 

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

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

September 30,

 

 

 

2021

 

 

in OCI

 

 

to Earnings

 

 

2022

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(635

)

 

$

5,093

 

 

 

(330

)

 

$

4,128

 

Income tax benefit (expense)

 

 

147

 

 

 

(1,171

)

 

 

76

 

 

 

(948

)

Net

 

 

(488

)

 

 

3,922

 

 

 

(254

)

 

 

3,180

 

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,744

)

 

 

2,139

 

 

 

(1,692

)

 

 

(2,297

)

Income tax benefit (expense)

 

 

738

 

 

 

(492

)

 

 

386

 

 

 

632

 

Net

 

 

(2,006

)

 

 

1,647

 

 

 

(1,306

)

 

 

(1,665

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,032

)

 

 

(8,332

)

 

 

—

 

 

 

(10,364

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,032

)

 

 

(8,332

)

 

 

—

 

 

 

(10,364

)

Total accumulated other comprehensive (loss) income

 

$

(4,526

)

 

$

(2,763

)

 

$

(1,560

)

 

$

(8,849

)

 

 

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

 

 

 

 

 

 

 

 

 

(Gain) Loss

 

 

 

 

 

 

As of

 

 

Gain (Loss)

 

 

Reclassified

 

 

As of

 

 

 

December 31,

 

 

Recognized

 

 

from AOCI

 

 

September 30,

 

 

 

2020

 

 

in OCI

 

 

to Earnings

 

 

2021

 

Changes in fair market value of derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

$

(1,038

)

 

$

568

 

 

 

(438

)

 

$

(908

)

Income tax benefit (expense)

 

 

240

 

 

 

(131

)

 

 

101

 

 

 

210

 

Net

 

 

(798

)

 

 

437

 

 

 

(337

)

 

 

(698

)

Changes in unrealized pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(128,004

)

 

 

(4,951

)

 

 

130,075

 

 

 

(2,880

)

Income tax benefit (expense)

 

 

34,917

 

 

 

1,139

 

 

 

(35,287

)

 

 

769

 

Net

 

 

(93,087

)

 

 

(3,812

)

 

 

94,788

 

 

 

(2,111

)

Cumulative translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

(2,036

)

 

 

3

 

 

 

—

 

 

 

(2,033

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net

 

 

(2,036

)

 

 

3

 

 

 

—

 

 

 

(2,033

)

Total accumulated other comprehensive (loss) income

 

$

(95,921

)

 

$

(3,372

)

 

$

94,451

 

 

$

(4,842

)