XML 42 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Risk Management (Notes)
12 Months Ended
Dec. 31, 2015
Risks and Uncertainties [Abstract]  
Foreign Currency Disclosure [Text Block]
RISK MANAGEMENT

We are subject to various risks and uncertainties in the ordinary course of business due, in part, to the competitive global nature of the industry in which we operate, changing commodity prices for the materials used in the manufacture of our products and the development of new products.

The functional currency of certain foreign operations in Mexico is the Mexican peso.  The settlement of accounts receivable and accounts payable for our operations in Mexico requires the transfer of funds denominated in the Mexican peso, the value of which decreased 17 percent in relation to the U.S. dollar in 2015. Foreign exchange losses totaled $1.2 million and $1.0 million in 2015 and 2014, respectively and a foreign exchange gain totaled $0.2 million in 2013. All transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations.

As it relates to foreign currency translation gains and losses, however, since 1990, the Mexican peso has experienced periods of relative stability followed by periods of major declines in value. The impact of these changes in value relative to our Mexico operations resulted in a cumulative unrealized translation loss at December 31, 2015 of $88.3 million. Translation gains and losses are included in other comprehensive income in the condensed consolidated statements of comprehensive (loss) income.

When market conditions warrant, we may also enter into purchase commitments to secure the supply of certain commodities used in the manufacture of our products, such as aluminum, natural gas and other raw materials. At December 31, 2015, we did not have any purchase commitments in place for the delivery of natural gas in 2016.