Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

NOTE 15 – 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 14 - Derivative Financial Instruments and Note 18 – 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 months ended March 31, 2021 and March 31, 2020 were $1,330 and $1,271, respectively, which have been included in other (expense) income in the Condensed Consolidated Statements of Earnings.

The components of accumulated other comprehensive (loss) income for the three months ended March 31, 2021 are as follows:

							(Gain) Loss
	As of			Gain (Loss)			Reclassified			As of
	December 31,			Recognized			from AOCI			March 31,
	2020			in OCI			to Earnings			2021
Changes in fair market value of derivatives:
Gross	$	(1,038	)	$	206		$	(45	)	$	(877	)
Income tax benefit (expense)		240			(47	)		10			203
Net		(798	)		159			(35	)		(674	)
Changes in unrealized pension cost:
Gross		(128,004	)		—			1,847			(126,157	)
Income tax benefit (expense)		34,917			—			(425	)		34,492
Net		(93,087	)		—			1,422			(91,665	)
Cumulative translation adjustment:
Gross		(2,036	)		12			—			(2,024	)
Total accumulated other comprehensive (loss) income	$	(95,921	)	$	171		$	1,387		$	(94,363	)

The components of accumulated other comprehensive (loss) income for the three months ended March 31, 2020, are as follows:

							(Gain) Loss
	As of			(Loss) Gain			Reclassified			As of
	December 31,			Recognized			from AOCI			March 31,
	2019			in OCI			to Earnings			2020
Changes in fair market value of derivatives:
Gross	$	659		$	(5,422	)	$	(281	)	$	(5,044	)
Income tax (expense) benefit		(150	)		1,225			64			1,139
Net		509			(4,197	)		(217	)		(3,905	)
Changes in unrealized pension cost:
Gross		(124,140	)		—			1,660			(122,480	)
Income tax benefit (expense)		34,018			—			(375	)		33,643
Net		(90,122	)		—			1,285			(88,837	)
Cumulative translation adjustment:
Gross		(2,211	)		(41	)		—			(2,252	)
Income tax benefit (expense)		98			(98	)		—			—
Net		(2,113	)		(139	)		—			(2,252	)
Total accumulated other comprehensive (loss) income	$	(91,726	)	$	(4,336	)	$	1,068		$	(94,994	)