ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Through December 31, 2016, we designated our commodity derivatives as cash flow hedges for accounting purposes upon entering into the contracts, and accordingly, changes in the fair value of the derivative were recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge was considered effective. We had no outstanding derivative contracts at December 31, 2016.

During the periods from March 1, 2017 through December 31, 2017 (Successor) and January 1, 2017 through February 28, 2017 (Predecessor), we entered into various commodity derivative contracts (see Note 9 – Derivative Instruments and Hedging Activities). With respect to our 2017, 2018 and 2019 commodity derivative contracts, we have elected to not designate these contracts as cash flow hedges for accounting purposes. Accordingly, the net changes in the mark-to-market valuations and the monthly settlements of these derivative contracts will be recorded in earnings through derivative income (expense).

During the year ended December 31, 2016, we reclassified a $6.1 million loss related to cumulative foreign currency translation adjustments from accumulated other comprehensive income into other operational expenses upon the liquidation of our former foreign subsidiary, Stone Energy Canada, ULC.

The following tables include the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2016 and 2015 (Predecessor) (in thousands):



	Cash Flow Hedges			Foreign Currency Items			Total
For the Year Ended December 31, 2016 (Predecessor)
Beginning balance, net of tax	$	24,025		$	(6,073	)	$	17,952
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives	(1,648		)	—			(1,648		)
Foreign currency translations	—			(8		)	(8		)
Income tax effect	581			—			581
Net of tax	(1,067		)	(8		)	(1,075		)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/natural gas production	35,457			—			35,457
Other operational expenses	—			(6,081		)	(6,081		)
Income tax effect	(12,499		)	—			(12,499		)
Net of tax	22,958			(6,081		)	16,877
Other comprehensive income (loss), net of tax	(24,025		)	6,073			(17,952		)
Ending balance, net of tax	$	—		$	—		$	—



	Cash Flow Hedges			Foreign Currency Items			Total
For the Year Ended December 31, 2015 (Predecessor)
Beginning balance, net of tax	$	86,783		$	(3,468	)	$	83,315
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives	52,630			—			52,630
Foreign currency translations	—			(2,605		)	(2,605		)
Income tax effect	(19,096		)	—			(19,096		)
Net of tax	33,534			(2,605		)	30,929
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/natural gas production	149,955			—			149,955
Derivative income, net	1,170			—			1,170
Income tax effect	(54,833		)	—			(54,833		)
Net of tax	96,292			—			96,292
Other comprehensive loss, net of tax	(62,758		)	(2,605		)	(65,363		)
Ending balance, net of tax	$	24,025		$	(6,073	)	$	17,952