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Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 28, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)

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

•
Unrealized 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 8, 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 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 three months ended March 28, 2020 and March 30, 2019 are as follows (in millions):
 
 
Unrealized gain on sales hedging
 
Foreign currency translation adjustments
 
Total
Balance at December 31, 2018
 
$
12

 
$
(47
)
 
$
(35
)
Other comprehensive income before reclassifications
 
16

 
—

 
16

Amounts reclassified from AOCI(1)
 
(11
)
 
—

 
(11
)
Tax effect
 
(1
)
 
—

 
(1
)
Other comprehensive income, net of tax
 
4

 
—

 
4

Balance at March 30, 2019
 
$
16

 
$
(47
)
 
$
(31
)
 
 
 
 
 
 
 
Balance at December 31, 2019
 
$
2

 
$
(46
)
 
$
(44
)
Other comprehensive income (loss) before reclassifications
 
11

 
(9
)
 
2

Amounts reclassified from AOCI(1)
 
(8
)
 
—

 
(8
)
Tax effect
 
(1
)
 
—

 
(1
)
Other comprehensive income (loss), net of tax
 
2

 
(9
)
 
(7
)
Balance at March 28, 2020
 
$
4

 
$
(55
)
 
$
(51
)

(1) See Note 8, Derivative Instruments regarding timing of reclassifications to operating results.