Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.20.1
Foreign Currency Translation
3 Months Ended
Mar. 31, 2020
Foreign Currency [Abstract]  
Foreign Currency Translation

15.

Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $421,908 and $340,112 as of March 31, 2020 and December 31, 2019, respectively, primarily includes cumulative foreign currency net losses of $385,678 and $328,053, respectively, from translating the financial statements of the Company’s international subsidiaries and the cumulative changes in fair value of the Company’s interest rate swap agreements that are designated as hedges.

As of March 31, 2020, all foreign countries where the Company has operations, other than Argentina, 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.  The Company deemed Argentina to be highly inflationary beginning July 1, 2018.  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 financial statements of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity.  The financial information of the Company’s Argentina subsidiaries has been remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters, effective beginning July 1, 2018.  

Below is a summary of the impact of translating the March 31, 2020 and 2019 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

 

 

Other Comprehensive Income (Loss) for

 

 

 

Exchange Rate as of

 

 

Three Months Ended

 

Country

 

March 31, 2020

 

 

December 31, 2019

 

 

March 31, 2020

 

March 31, 2019

 

Brazil

 

 

5.20

 

 

 

4.02

 

 

$

(42,873

)

$

(2,334

)

Chile

 

 

857.94

 

 

 

736.86

 

 

 

(11,126

)

 

1,473

 

Colombia

 

 

4,064.81

 

 

 

3,277.14

 

 

 

(3,274

)

 

982

 

Peru

 

 

3.47

 

 

 

3.37

 

 

 

(1,450

)

 

431

 

All other

 

 

 

 

 

 

 

 

 

 

1,098

 

 

203

 

 

 

 

 

 

 

 

 

 

 

$

(57,625

)

$

755

 

 

(1)  

Beginning July 1, 2018, Argentina was deemed highly inflationary.  A loss of $294 and $394 for the three months ended March 31, 2020 and 2019, respectively, is reflected as foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars.