Schedule of accumulated other comprehensive loss |
The components of AOCI, net of the effect of income taxes, and activity for the nine months ended September 30, 2019 and 2020 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Components of AOCI, Net of Tax | (In thousands) | | Cumulative Foreign Exchange Translation Adjustments | | Effective Portion of Derivatives Designated as Hedging Instruments | | Cumulative Unrecognized Actuarial Losses on Pension Obligations | | Unrealized Gain (Loss) on Marketable Securities | | Total | Balance at December 31, 2018 | | $ | (159,810) | | | $ | 1,389 | | | $ | (408,655) | | | $ | (31) | | | $ | (567,107) | | Adoption of new accounting standard | | — | | | — | | | (21,429) | | (a) | — | | | (21,429) | | OCI before reclassifications | | (20,513) | | (b) | (5,889) | | (c) | 11,630 | | (b) | 19 | | | (14,753) | | Amounts reclassified from AOCI, net of tax | | (1,763) | | | 1,404 | | | 14,021 | | | — | | | 13,662 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total OCI | | (22,276) | | | (4,485) | | | 25,651 | | | 19 | | | (1,091) | | OCI attributable to noncontrolling interests | | 1,868 | | | — | | | — | | | — | | | 1,868 | | OCI attributable to Harsco Corporation | | (20,408) | | | (4,485) | | | 25,651 | | | 19 | | | 777 | | Balance at September 30, 2019 | | $ | (180,218) | | | $ | (3,096) | | | $ | (404,433) | | | $ | (12) | | | $ | (587,759) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Components of AOCI, Net of Tax | (In thousands) | | Cumulative Foreign Exchange Translation Adjustments | | Effective Portion of Derivatives Designated as Hedging Instruments | | Cumulative Unrecognized Actuarial Losses on Pension Obligations | | Unrealized Gain (Loss) on Marketable Securities | | Total | Balance at December 31, 2019 | | $ | (143,340) | | | $ | (3,717) | | | $ | (440,562) | | | $ | (3) | | | $ | (587,622) | | | | | | | | | | | | | OCI before reclassifications | | (48,150) | | (b) | (2,226) | | (c) | 9,905 | | (b) | (22) | | | (40,493) | | Amounts reclassified from AOCI, net of tax | | 12,906 | | | 604 | | | 18,132 | | | — | | | 31,642 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total OCI | | (35,244) | | | (1,622) | | | 28,037 | | | (22) | | | (8,851) | | OCI attributable to noncontrolling interests | | (579) | | | — | | | — | | | — | | | (579) | | OCI attributable to Harsco Corporation | | (35,823) | | | (1,622) | | | 28,037 | | | (22) | | | (9,430) | | Balance at September 30, 2020 | | $ | (179,163) | | | $ | (5,339) | | | $ | (412,525) | | | $ | (25) | | | $ | (597,052) | |
(a) Represents the adoption of the new accounting standard on January 1, 2019 related to stranded tax effects from the Tax Cuts and Jobs Act. (b) Principally foreign currency fluctuation. (c) Net change from periodic revaluations.
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Reclassification out of accumulated other comprehensive income |
Amounts reclassified from AOCI were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (In thousands) | | Three Months Ended | | Nine Months Ended | | Location on the Condensed Consolidated Statements of Operations | | September 30 | | September 30 | | 2020 | | 2019 | | 2020 | | 2019 | Recognition of cumulative foreign currency translation adjustments: | Gain on substantial liquidation of subsidiaries (d) | | $ | — | | | $ | (154) | | | $ | 12,906 | | | $ | (2,425) | | | Other expenses, net | Loss on substantial liquidation of subsidiaries (d) | | — | | | 662 | | | — | | | 662 | | | Gain on sale of discontinued businesses | Amortization of cash flow hedging instruments: | Foreign currency exchange forward contracts | | $ | 174 | | | $ | (512) | | | $ | (1,562) | | | $ | (977) | | | Product revenues | Foreign currency exchange forward contracts | | — | | | — | | | — | | | 44 | | | Cost of services sold | | | | | | | | | | | | CCIRs | | 312 | | | 291 | | | 912 | | | 908 | | | Interest expense | Interest rate swaps | | 739 | | | (76) | | | 1,849 | | | (648) | | | Interest expense | Interest rate swaps | | — | | | — | | | — | | | 2,741 | | | Income from discontinued businesses | Total before taxes | | 1,225 | | | (297) | | | 1,199 | | | 2,068 | | | | Income taxes | | (408) | | | (21) | | | (595) | | | (664) | | | | Total reclassification of cash flow hedging instruments, net of tax | | $ | 817 | | | $ | (318) | | | $ | 604 | | | $ | 1,404 | | | | | | | | | | | | | | | Amortization of defined benefit pension items (e): | Recognized losses | | $ | 4,962 | | | $ | 4,721 | | | $ | 14,799 | | | $ | 14,761 | | | Defined benefit pension income (expense) | Recognized prior service costs | | 113 | | | 61 | | | 326 | | | 192 | | | Defined benefit pension income (expense) | | | | | | | | | | | | Settlement/curtailment losses | | — | | | — | | | — | | | 129 | | | Defined benefit pension income (expense) | Pension liability transfer - discontinued business | | — | | | — | | | 5,363 | | | — | | | Gain on sale of discontinued businesses | Total before taxes | | 5,075 | | | 4,782 | | | 20,488 | | | 15,082 | | | | Income taxes | | (323) | | | (340) | | | (2,356) | | | (1,061) | | | | Total reclassification of defined benefit pension items, net of tax | | $ | 4,752 | | | $ | 4,442 | | | $ | 18,132 | | | $ | 14,021 | | | |
(d) No tax impact. (e) These AOCI components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details.
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