XML 41 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

Stockholders’ equity includes certain items classified as Accumulated other comprehensive loss, including:

•
Unrealized (loss) gain on anticipated sales hedging transactions relates 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 7, Derivative Instruments for more details.
•
Unrealized (loss) gain on forward interest rate swaps hedging transactions refers to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Enterprise Acquisition. See Note 7, Derivative Instruments for more details.
•
Foreign currency translation adjustments relate to the Company’s non-U.S. subsidiary companies that have 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 accumulated other comprehensive loss.

The components of Accumulated other comprehensive loss (“AOCI”) for the six months ended June 30, 2018 and July 1, 2017 are as follows (in millions):
 
 
Unrealized (loss) gain on sales hedging
 
Unrealized (loss)/ gain on forward interest rate swaps
 
Currency translation adjustments
 
Total
Balance at December 31, 2016
 
$
6

 
$
(15
)
 
$
(36
)
 
$
(45
)
Other comprehensive (loss) income before reclassifications
 
(16
)
 
1

 
—

 
(15
)
Amounts reclassified from AOCI(1)
 
(1
)
 
1

 
—

 
—

Tax benefit
 
3

 
—

 
—

 
3

Other comprehensive (loss) income
 
(14
)
 
2

 
—

 
(12
)
Balance at July 1, 2017
 
$
(8
)
 
$
(13
)
 
$
(36
)
 
$
(57
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
$
(9
)
 
$
(9
)
 
$
(34
)
 
$
(52
)
Other comprehensive income (loss) before reclassifications
 
21

 
7

 
(7
)
 
21

Amounts reclassified from AOCI(1)
 
6

 
2

 
—

 
8

Tax (expense)
 
(5
)
 
(2
)
 
—

 
(7
)
Other comprehensive income (loss)
 
22

 
7

 
(7
)
 
22

Balance at June 30, 2018
 
$
13

 
$
(2
)
 
$
(41
)
 
$
(30
)
(1) See Note 7, Derivative Instruments regarding timing of reclassifications on forward interest rate swaps.