Annual report pursuant to Section 13 and 15(d)

Foreign Currency Translation

v3.20.4
Foreign Currency Translation
12 Months Ended
Dec. 31, 2020
Foreign Currency [Abstract]  
Foreign Currency Translation

15.

FOREIGN CURRENCY TRANSLATION

The accumulated other comprehensive loss account in stockholders’ equity of $340,112 and $398,653 at December 31, 2019 and 2020, respectively, includes the cumulative foreign currency losses of $328,053 and $375,539, respectively, from translating the financial statements of the Company’s international subsidiaries and the change in fair values of the Company’s interest rate swap agreements designated as hedges.

As of December 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 statements 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 financial statements of the Company’s international subsidiaries, whose functional currency is other than the US dollar, for the periods presented.

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

Exchange Rate as of December 31,

 

 

For the Year Ended December 31,

 

Country

 

2018

 

2019

 

2020

 

 

2018

 

 

2019 (1)

 

 

2020 (1)

 

Brazil

 

 

3.88

 

 

4.02

 

 

5.20

 

 

$

(34,086

)

 

$

(8,140

)

 

$

(42,698

)

Argentina (1)

 

 

37.68

 

 

59.89

 

 

84.12

 

 

 

(14,357

)

 

 

 

 

 

 

Colombia

 

 

3,249.75

 

 

3,277.14

 

 

3,432.50

 

 

 

(1,795

)

 

 

(362

)

 

 

(2,183

)

Chile

 

 

694.74

 

 

736.86

 

 

714.14

 

 

 

(8,924

)

 

 

(5,158

)

 

 

1,228

 

Peru

 

 

3.39

 

 

3.37

 

 

3.65

 

 

 

(2,136

)

 

 

257

 

 

 

(3,403

)

All other

 

 

 

 

 

 

 

 

 

 

 

 

(955

)

 

 

650

 

 

 

(536

)

 

 

 

 

 

 

 

 

 

 

 

 

$

(62,253

)

 

$

(12,753

)

 

$

(47,592

)

(1)  

For Argentina, represents the cumulative comprehensive loss recorded through June 30, 2018.  The impact of translating Argentina financial results to U.S. dollars, subsequent to June 30, 2018, has been recorded in foreign currency exchange gain (loss) on the Company’s consolidated statements of income.  A loss of $3,707 and gain of $1,243 were recorded for the years ended December 31, 2019 and 2020, respectively.    

 

 

During the year ended December 31, 2018, the Company reclassified $518 of cumulative foreign currency translation adjustments, related to the settlement of an intercompany note between a domestic and an international subsidiary, from accumulated other comprehensive loss to foreign currency exchange gain (loss) on the consolidated statement of income.