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Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 28, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)

Stockholders’ equity includes certain items classified as AOCI, including:

•
Unrealized gain (loss) 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 gain (loss) on forward interest rate swaps hedging transactions refers to the hedging of the interest rate risk exposure associated with the Company’s variable rate debt. As a result of the Company’s debt refinancing during the third quarter of 2019, remaining losses associated with terminated interest rate swaps were recognized as a component of Interest expense, net on the Consolidated Statements of Operations. See Note 8, Long-Term Debt for more information regarding the Company’s debt refinancing.
•
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 U.S. 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 AOCI.

The components of AOCI for the nine months ended September 28, 2019 and September 29, 2018 are as follows (in millions):
 
 
Unrealized gain (loss) on sales hedging
 
Unrealized gain (loss) on forward interest rate swaps
 
Currency translation adjustments
 
Total
Balance at December 31, 2017
 
$
(9
)
 
$
(9
)
 
$
(34
)
 
$
(52
)
Other comprehensive income (loss) before reclassifications
 
27

 
7

 
(7
)
 
27

Amounts reclassified from AOCI(1)
 
(1
)
 
3

 
—

 
2

Tax effect
 
(4
)
 
(2
)
 
—

 
(6
)
Other comprehensive income (loss), net of tax
 
22

 
8

 
(7
)
 
23

Balance at September 29, 2018
 
$
13

 
$
(1
)
 
$
(41
)
 
$
(29
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
 
$
12

 
$
—

 
$
(47
)
 
$
(35
)
Other comprehensive income (loss) before reclassifications
 
41

 
—

 
(3
)
 
38

Amounts reclassified from AOCI(1)
 
(32
)
 
2

 
—

 
(30
)
Tax effect
 
(2
)
 
(2
)
 
—

 
(4
)
Other comprehensive (loss) income, net of tax
 
7

 
—

 
(3
)
 
4

Balance at September 28, 2019
 
$
19

 
$
—

 
$
(50
)
 
$
(31
)

(1) See Note 7, Derivative Instruments regarding timing of reclassifications to operating results.