Foreign currency

12 Months Ended

Dec. 31, 2018

Foreign Currency [Abstract]

Foreign currency

Foreign currency

Effective July 1, 2018, the company’s Argentinian subsidiary began to apply highly inflationary accounting due to cumulative inflation of approximately 100 percent or more over the last 3-year period. For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net. The impact of applying highly inflationary accounting in the third quarter of 2018 was immaterial. At December 31, 2018, the company’s operations in Argentina had net monetary assets denominated in local currency of approximately $5.1 million.

During the years ended December 31, 2018, 2017 and 2016, the company recognized foreign exchange gains (losses) in “Other income (expense), net” in its consolidated statements of income of $(5.9) million, $(9.9) million and $2.3 million, respectively. The year ended December 31, 2017 also includes $11.8 million of net foreign currency losses related to exiting foreign countries in connection with the company’s restructuring plan.