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Accumulated Other Comprehensive (Loss) Income
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income
Stockholders’ equity includes certain items classified as other comprehensive income (loss), including:
•
Unrealized (loss) gain on anticipated sales hedging transactions relate to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 8 Derivative Instruments.
•
Unrealized (loss) gain on forward interest rate swaps hedging transactions refer to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 8 Derivative Instruments for more details.
•
Foreign currency translation adjustment relates to the Company’s non-U.S. subsidiary companies that have been designated a functional currency other than the U.S. dollar. The Company is 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 (loss) income.
The components of accumulated other comprehensive (loss) income (“AOCI”) for each of the three years ended December 31 are as follows (in millions):
 
 
Unrealized gains (losses) on sales hedging
 
Unrealized gains (losses) on forward interest rate swaps
 
Foreign Currency Translation Adjustments
 
Total
Balance at December 31, 2013
$
(2
)
 
$
—

 
$
(7
)
 
$
(9
)
 
Other comprehensive (loss) income before reclassifications
8

 
(12
)
 
1

 
(3
)
 
Amounts reclassified from AOCI
1

 
—

 
—

 
1

 
Tax benefit (expense)
(2
)
 
4

 
—

 
2

 
Other comprehensive income (loss)
7

 
(8
)
 
1

 
—

Balance at December 31, 2014
5

 
(8
)
 
(6
)
 
(9
)
 
Other comprehensive (loss) income before reclassifications
7

 
(12
)
 
(11
)
 
(16
)
 
Amounts reclassified from AOCI
(15
)
 
1

 
(15
)
 
(29
)
 
Tax benefit (expense)
2

 
4

 
—

 
6

 
Other comprehensive (loss) income
(6
)
 
(7
)
 
(26
)
 
(39
)
Balance at December 31, 2015
(1
)
 
(15
)
 
(32
)
 
(48
)
 
Other comprehensive (loss) income before reclassifications
1

 
(1
)
 
(4
)
 
(4
)
 
Amounts reclassified from AOCI
7

 
2

 
—

 
9

 
Tax benefit (expense)
(1
)
 
(1
)
 
—

 
(2
)
 
Other comprehensive (loss) income
7

 
—

 
(4
)
 
3

Balance at December 31, 2016
$
6

 
$
(15
)
 
$
(36
)
 
$
(45
)











Reclassification out of AOCI to earnings were as follows (in millions):
 
 
 
Year Ended December 31,
Comprehensive Income Components
Financial Statement Line Item
 
2016
 
2015
 
2014
Unrealized gain (loss) on sales hedging:
 
 
 
 
 
 
 
   Total before tax
Net sales of tangible products
 
$
(7
)
 
$
15

 
$
(1
)
   Tax benefit (expense)
 
 
1

 
(3
)
 
—

   Net of taxes
 
 
(6
)
 
12

 
(1
)
Unrealized gain (loss) on forward interest rate swaps:
 
 
 
 
 
 
 
   Total before tax
Interest expense, net
 
(2
)
 
(1
)
 
—

   Tax benefit (expense)
 
 
1

 
—

 
—

   Net of taxes
 
 
(1
)
 
(1
)
 
—

Foreign Currency Translation
Foreign exchange loss
 
—

 
15

 
—

Total amounts reclassified from AOCI
 
 
$
(7
)
 
$
26

 
$
(1
)