Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.22.2.2
Foreign Currency Translation
9 Months Ended
Sep. 30, 2022
Foreign Currency [Abstract]  
Foreign Currency Translation
14.
Foreign Currency Translation

The accumulated other comprehensive loss account in Holdings stockholders’ equity of $362.9 and $394.5 and CUSA stockholder's equity of $368.2 and $397.0, each as of September 30, 2022 and December 31, 2021, respectively, primarily includes cumulative foreign currency net losses of $400.4 and $394.5, respectively, from translating the financial statements of the Company's international subsidiaries and the cumulative changes in fair value of the interest rate swap agreements that are designated as hedges.

As of September 30, 2022, all foreign countries where the Company has operations are non-highly inflationary, other than Argentina. In non-highly inflationary countries, the local currency is the same as the functional currency and 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 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, 2022 and September 30, 2021 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

Other Comprehensive Income (Loss) for

 

 

 

Exchange Rate as of

 

 

Nine Months Ended

 

Country

 

September 30, 2022

 

 

December 31, 2021

 

 

September 30, 2022

 

September 30, 2021

 

Brazil

 

 

5.40

 

 

 

5.57

 

 

$

0.4

 

$

(3.4

)

Chile

 

 

965.80

 

 

 

852.00

 

 

 

(7.7

)

 

(7.9

)

Peru

 

 

3.99

 

 

 

4.02

 

 

 

0.2

 

 

(3.6

)

All other

 

 

 

 

 

 

 

 

1.2

 

 

(0.1

)

 

 

 

 

 

 

 

 

$

(5.9

)

$

(15.0

)

As noted above, beginning July 1, 2018, Argentina was deemed highly inflationary. A foreign currency exchange loss of $5.1 and gain of $0.4 was recorded for the nine months ended September 30, 2022 and 2021, respectively, as a result of translating Argentina's financial results to U.S. dollars.