Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.21.2
Foreign Currency Translation
9 Months Ended
Sep. 30, 2021
Foreign Currency [Abstract]  
Foreign Currency Translation
15.
Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $402,380 and $398,653 as of September 30, 2021 and December 31, 2020, respectively, primarily includes cumulative foreign currency net losses of $390,654 and $375,644, 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 September 30, 2021, 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 was remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters, effective July 1, 2018.

Below is a summary of the impact of translating the September 30, 2021 and 2020 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

Other Comprehensive Loss for

 

 

 

Exchange Rate as of

 

 

Nine Months Ended

 

Country

 

September 30, 2021

 

 

December 31, 2020

 

 

September 30, 2021

 

September 30, 2020

 

Brazil

 

 

5.43

 

 

 

5.20

 

 

$

(3,368

)

$

(51,453

)

Chile

 

 

811.13

 

 

 

714.14

 

 

 

(7,967

)

 

(5,046

)

Colombia

 

 

3,834.68

 

 

 

3,432.50

 

 

 

(140

)

 

(2,584

)

Peru

 

 

4.16

 

 

 

3.65

 

 

 

(3,609

)

 

(3,187

)

All other

 

 

 

 

 

 

 

 

74

 

 

(560

)

 

 

 

 

 

 

 

 

$

(15,010

)

$

(62,830

)

Beginning July 1, 2018, Argentina was deemed highly inflationary. A gain of $345 and $1,053 for the nine months ended September 30, 2021 and 2020, respectively, is reflected as foreign currency exchange loss on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars.