Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.7.0.1
Foreign Currency Translation
3 Months Ended
Mar. 31, 2017
Foreign Currency Translation
11. Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $233,473 and $247,013 at March 31, 2017 and December 31, 2016, respectively, primarily includes cumulative foreign currency adjustments of $233,705 and $247,047, respectively, from translating the financial statements of the Company’s international subsidiaries.

All foreign countries where the Company has operations are non-highly inflationary, and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss.

There has been a steady devaluation of the Argentine peso relative to the U.S. dollar in recent years. A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 100 percent or more over a three-year period. If a country’s economy is classified as highly inflationary, the functional currency of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity. While the official cumulative inflation rate for Argentina over the last three years has not reached 100 percent, the Company will continue to monitor the inflation on a quarterly basis to determine whether remeasurement is necessary.

 

Below is a summary of the impact of translating the March 31, 2017 financial statements of the Company’s international subsidiaries:

 

     Exchange Rate as of      Other
Comprehensive
Income (Loss) for The

Three Months Ended
March 31, 2017
 

Country

   March 31, 2017      December 31, 2016     

Brazil

     3.15        3.26      $ 7,964  

Argentina

     15.42        16.04        2,617  

Peru

     3.29        3.45        2,039  

Colombia

     2,880.24        3,000.71        1,227  

Chile

     663.28        679.09        1,151  

All other

           (105
        

 

 

 
         $ 14,893  
        

 

 

 

During the three months ended March 31, 2017, the Company reclassified $1,551 of cumulative foreign currency translation adjustments, related to a Canadian subsidiary that was liquidated, from accumulated other comprehensive loss to foreign currency exchange gain on the condensed consolidated statement of income.