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Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 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 11, 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 12, Long-Term Debt 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 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 changes in each component of AOCI during the three years ended December 31, 2019, 2018 and 2017 were as follows (in millions):
 
Unrealized gain (loss) on sales hedging
 
Unrealized gain (loss) on forward interest rate swaps
 
Foreign currency translation adjustments
 
Total
Balance at December 31, 2016
$
6

 
$
(15
)
 
$
(36
)
 
$
(45
)
Other comprehensive (loss) income before reclassifications
(26
)
 
1

 
2

 
(23
)
Amounts reclassified from AOCI(1)
8

 
8

 
—

 
16

Tax effect
3

 
(3
)
 
—

 
—

Other comprehensive loss (income), net of tax
(15
)
 
6

 
2

 
(7
)
Balance at December 31, 2017
(9
)
 
(9
)
 
(34
)
 
(52
)
Other comprehensive income (loss) before reclassifications
38

 
8

 
(13
)
 
33

Amounts reclassified from AOCI(1)
(13
)
 
4

 
—

 
(9
)
Tax effect
(4
)
 
(3
)
 
—

 
(7
)
Other comprehensive income (loss), net of tax
21

 
9

 
(13
)
 
17

Balance at December 31, 2018
12

 
—

 
(47
)
 
(35
)
Other comprehensive income before reclassifications
30

 
—

 
1

 
31

Amounts reclassified from AOCI(1)
(42
)
 
2

 
—

 
(40
)
Tax effect
2

 
(2
)
 
—

 
—

Other comprehensive income (loss), net of tax
(10
)
 
—

 
1

 
(9
)
Balance at December 31, 2019
$
2

 
$
—

 
$
(46
)
 
$
(44
)


(1) See Note 11, Derivative Instruments regarding timing of reclassifications to operating results.