| Accumulated Other Comprehensive (Loss) Income |
NOTE 14 – 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:
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• |
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. |
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• |
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. |
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• |
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, 2021 were $(1,011) and $(1,412), respectively, and transaction gains for the three and nine months ended September 30, 2020 were $2,326 and $1,947, respectively, which have been included in other (expense) income in the Condensed Consolidated Statements of (Loss) Earnings.
The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2021 are as follows:
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|
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|
|
|
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(Gain) Loss |
|
|
|
|
|
|
|
|
As of |
|
|
Gain (Loss) |
|
|
Reclassified |
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|
As of |
|
|
|
|
June 30, |
|
|
Recognized |
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|
from AOCI |
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|
September 30, |
|
|
|
|
2021 |
|
|
in OCI |
|
|
to Earnings |
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|
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 |
) |
|
Total accumulated other comprehensive (loss) income |
|
$ |
(77,070 |
) |
|
$ |
(4,305 |
) |
|
$ |
76,533 |
|
|
$ |
(4,842 |
) |
The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2020, are as follows:
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|
|
|
|
|
|
|
|
Loss |
|
|
|
|
|
|
|
|
As of |
|
|
Gain (Loss) |
|
|
Reclassified |
|
|
As of |
|
|
|
|
June 30, |
|
|
Recognized |
|
|
from AOCI |
|
|
September 30, |
|
|
|
|
2020 |
|
|
in OCI |
|
|
to Earnings |
|
|
2020 |
|
|
Changes in fair market value of derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
$ |
(4,239 |
) |
|
$ |
525 |
|
|
$ |
656 |
|
|
$ |
(3,058 |
) |
|
Income tax benefit (expense) |
|
|
978 |
|
|
|
(122 |
) |
|
|
(150 |
) |
|
|
706 |
|
|
Net |
|
|
(3,261 |
) |
|
|
403 |
|
|
|
506 |
|
|
|
(2,352 |
) |
|
Changes in unrealized pension cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
(120,906 |
) |
|
|
— |
|
|
|
1,606 |
|
|
|
(119,300 |
) |
|
Income tax benefit (expense) |
|
|
33,278 |
|
|
|
— |
|
|
|
(367 |
) |
|
|
32,911 |
|
|
Net |
|
|
(87,628 |
) |
|
|
— |
|
|
|
1,239 |
|
|
|
(86,389 |
) |
|
Cumulative translation adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
(2,266 |
) |
|
|
99 |
|
|
|
— |
|
|
|
(2,167 |
) |
|
Total accumulated other comprehensive (loss) income |
|
$ |
(93,155 |
) |
|
$ |
502 |
|
|
$ |
1,745 |
|
|
$ |
(90,908 |
) |
The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2021, are as follows:
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|
|
|
|
|
|
|
|
|
|
(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 |
) |
|
Total accumulated other comprehensive (loss) income |
|
$ |
(95,921 |
) |
|
$ |
(3,372 |
) |
|
$ |
94,451 |
|
|
$ |
(4,842 |
) |
The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2020, are as follows:
|
|
|
|
|
|
|
|
|
|
|
Loss |
|
|
|
|
|
|
|
|
As of |
|
|
Gain |
|
|
Reclassified |
|
|
As of |
|
|
|
|
December 31, |
|
|
Recognized |
|
|
from AOCI |
|
|
September 30, |
|
|
|
|
2019 |
|
|
in OCI |
|
|
to Earnings |
|
|
2020 |
|
|
Changes in fair market value of derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
$ |
659 |
|
|
$ |
(4,647 |
) |
|
$ |
930 |
|
|
$ |
(3,058 |
) |
|
Income tax benefit (expense) |
|
|
(150 |
) |
|
|
1,059 |
|
|
|
(203 |
) |
|
|
706 |
|
|
Net |
|
|
509 |
|
|
|
(3,588 |
) |
|
|
727 |
|
|
|
(2,352 |
) |
|
Changes in unrealized pension cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
(124,140 |
) |
|
|
— |
|
|
|
4,840 |
|
|
|
(119,300 |
) |
|
Income tax benefit (expense) |
|
|
34,018 |
|
|
|
— |
|
|
|
(1,107 |
) |
|
|
32,911 |
|
|
Net |
|
|
(90,122 |
) |
|
|
— |
|
|
|
3,733 |
|
|
|
(86,389 |
) |
|
Cumulative translation adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
(2,211 |
) |
|
|
44 |
|
|
|
— |
|
|
|
(2,167 |
) |
|
Income tax benefit (expense) |
|
|
98 |
|
|
|
(98 |
) |
|
|
— |
|
|
|
0 |
|
|
Net |
|
|
(2,113 |
) |
|
|
(54 |
) |
|
|
— |
|
|
|
(2,167 |
) |
|
Total accumulated other comprehensive (loss) income |
|
$ |
(91,726 |
) |
|
$ |
(3,642 |
) |
|
$ |
4,460 |
|
|
$ |
(90,908 |
) |
|