COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of Other comprehensive (loss) income, net of tax, for the three and nine months ended September 30, 2018 and 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | Nine Months Ended | | | (in millions) | | 2018 | | 2017 | | 2018 | | 2017 | | | | | | | | | | Foreign currency translation gains | | $ | — | | $ | 129.0 | | $ | — | | $ | 433.7 | Foreign currency translation losses | | (30.1) | | — | | (169.5) | | — | Foreign currency translation gain on hedges of net investments | | 1.2 | | — | | 13.3 | | — | Foreign currency translation loss on hedges of net investments | | — | | (7.2) | | — | | (40.9) |
These amounts are recorded in AOCI, net of any related tax adjustments. At September 30, 2018 and December 31, 2017, the cumulative tax adjustments were $163.3 million and $203.8 million, respectively, primarily related to foreign currency translation gains and losses.
The cumulative foreign currency translation adjustments included translation losses of $147.4 million and gains $22.1 million at September 30, 2018 and December 31, 2017, respectively, and cumulative losses on loans designated as hedges of net investments of $113.3 million and $126.6 million, respectively. These foreign currency translation gains and losses were partially offset by movements on derivative financial instruments.
Changes in AOCI, net of tax, by component for the nine months ended September 30, 2018 and 2017 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Currency Translation Gain (Loss) | | Gain and (Loss) on Derivative Financial Instruments Designated as Cash Flow Hedges | | Gain and (Loss) on Derivative Financial Instruments | | Net Unrealized Holding Gain (Loss) on Available-for-Sale Securities | | Pension Liability Gain (Loss) | | Total | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2017 | | $ | (104.5) | | $ | (12.6) | | $ | (127.6) | | $ | 44.3 | | $ | (90.6) | | $ | (291.0) | Other comprehensive (loss) income before reclassifications and tax impact | | (131.6) | | (2.2) | | 28.9 | | — | | 2.4 | | (102.5) | Tax expense | | (24.6) | | — | | (15.3) | | — | | (0.6) | | (40.5) | Other comprehensive (loss) income, net of tax, before reclassifications | | (156.2) | | (2.2) | | 13.6 | | — | | 1.8 | | (143.0) | Amounts reclassified from accumulated other comprehensive income (loss), net of tax | | — | | 8.4 | | — | | (44.3) | | 3.4 | | (32.5) | Net (decrease) increase in other comprehensive loss | | (156.2) | | 6.2 | | 13.6 | | (44.3) | | 5.2 | | (175.5) | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, net of tax, at September 30, 2018 | | $ | (260.7) | | $ | (6.4) | | $ | (114.0) | | $ | — | | $ | (85.4) | | $ | (466.5) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Currency Translation Gain (Loss) | | Gain and (Loss) on Derivative Financial Instruments Designated as Cash Flow Hedges | | Gain and (Loss) on Derivative Financial Instruments | | | | Pension Liability Gain (Loss) | | Total | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2016 | | $ | (490.5) | | $ | (3.2) | | $ | (116.8) | | | | $ | (95.2) | | $ | (705.7) | Other comprehensive income (loss) before reclassifications and tax impact | | 363.0 | | (9.0) | | (3.8) | | | | — | | 350.2 | Tax benefit | | 29.8 | | 0.9 | | 0.7 | | | | — | | 31.4 | Other comprehensive income (loss), net of tax, before reclassifications | | 392.8 | | (8.1) | | (3.1) | | | | — | | 381.6 | Amounts reclassified from accumulated other comprehensive income, net of tax | | — | | 1.9 | | — | | | | 3.6 | | 5.5 | Net increase (decrease) in other comprehensive loss | | 392.8 | | (6.2) | | (3.1) | | | | 3.6 | | 387.1 | | | | | | | | | | | | | | Balance, net of tax, at September 30, 2017 | | $ | (97.7) | | $ | (9.4) | | $ | (119.9) | | | | $ | (91.6) | | $ | (318.6) |
Reclassifications out of AOCI to the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 were as follows:
| | | | | | | | | | | | | | | | | | | | | (in millions) | | | | | | | Details about AOCI Components | | Amounts Reclassified from AOCI | | | | Affected Line Item on the Consolidated Statements of Operations | | | Three Months Ended | | | | | | | 2018 | | 2017 | | | | | | | | | | Loss on derivative financial instruments: | | | | | | | Interest rate swaps | | $ | (0.6) | | $ | (0.6) | | Interest expense | Foreign exchange forward contracts | | (1.8) | | (1.6) | | Cost of products sold | | | | | | | | | | | | | | | Net loss before tax | | (2.4) | | (2.2) | | | Tax impact | | 0.4 | | 0.4 | | Provision (benefit) for income taxes | Net loss after tax | | $ | (2.0) | | $ | (1.8) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortization of defined benefit pension and other postemployment benefit items: | | | | | | | Amortization of prior service benefits | | $ | 0.1 | | $ | — | | (a) | | | | | | | | Amortization of net actuarial losses | | (1.5) | | (1.8) | | (a) | Net loss before tax | | (1.4) | | (1.8) | | | Tax impact | | 0.4 | | 0.5 | | Provision (benefit) for income taxes | Net loss after tax | | $ | (1.0) | | $ | (1.3) | | | | | | | | | | Total reclassifications for the period | | $ | (3.0) | | $ | (3.1) | | |
(a) These AOCI components are included in the computation of net periodic benefit cost for the three months ended September 30, 2018 and 2017 (see Note 8, Benefit Plans, for additional details). | | | | | | | | | | | | | | | | | | | | | (in millions) | | | | | | | Details about AOCI Components | | Amounts Reclassified from AOCI | | | | Affected Line Item on the Consolidated Statements of Operations | | | Nine months ended | | | | | | | 2018 | | 2017 | | | | | | | | | | Loss on derivative financial instruments: | | | | | | | Interest rate swaps | | $ | (1.7) | | $ | (1.7) | | Interest expense | Foreign exchange forward contracts | | (7.9) | | (0.7) | | Cost of products sold | | | | | | | | | | | | | | | Net loss before tax | | (9.6) | | (2.4) | | | Tax impact | | 1.2 | | 0.5 | | Provision (benefit) for income taxes | Net loss after tax | | $ | (8.4) | | $ | (1.9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net realized holding gain on available-for-sale securities: | | | | | | | Available-for-sale securities | | $ | 45.0 | | $ | — | | Other expense (income), net | Tax impact | | (0.7) | | — | | Provision (benefit) for income taxes | Net gain after tax | | $ | 44.3 | | $ | — | | | | | | | | | | Amortization of defined benefit pension and other postemployment benefit items: | | | | | | | Amortization of prior service benefits | | $ | 0.1 | | $ | 0.1 | | (a) | | | | | | | | Amortization of net actuarial losses | | (4.9) | | (5.2) | | (a) | Net loss before tax | | (4.8) | | (5.1) | | | Tax impact | | 1.4 | | 1.5 | | Provision (benefit) for income taxes | Net loss after tax | | $ | (3.4) | | $ | (3.6) | | | | | | | | | | Total reclassifications for the period | | $ | 32.5 | | $ | (5.5) | | |
(a) These AOCI components are included in the computation of net periodic benefit cost for the nine months ended September 30, 2018 and 2017 (see Note 8, Benefit Plans, for additional details).
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