Annual report pursuant to Section 13 and 15(d)

FOREIGN CURRENCY TRANSLATION

v3.8.0.1
FOREIGN CURRENCY TRANSLATION
12 Months Ended
Dec. 31, 2017
Foreign Currency [Abstract]  
FOREIGN CURRENCY TRANSLATION

12.

FOREIGN CURRENCY TRANSLATION

The accumulated other comprehensive loss account in stockholders’ equity of $247,013 and $253,282 at December 31, 2016 and 2017, respectively, includes the cumulative foreign currency losses of $247,046 and $253,565, respectively, from translating the financial statements of the Company’s international subsidiaries, the change in fair values of the Company’s interest rate swap agreements that were designated as hedges and the changes in fair value of the Company’s previously held available-for-sale securities.

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.

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. There has been a steady devaluation of the Argentine peso relative to the U.S. dollar in recent years. As of December 31, 2017, the Company has not designated Argentina as highly inflationary for accounting purposes. 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 financial statements of the Company’s international subsidiaries as of and for the years ended December 31, 2015, 2016 and 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss)

 

 

 

Exchange Rate as of December 31,

 

 

For the Year Ended December 31,

 

Country

 

2015

 

 

2016

 

 

2017

 

 

2015

 

 

2016

 

 

2017

 

Brazil

 

 

3.96

 

 

 

3.26

 

 

 

3.31

 

 

$

(74,559

)

 

$

37,286

 

 

$

(4,567

)

Argentina

 

 

12.95

 

 

 

16.04

 

 

 

18.65

 

 

 

(30,520

)

 

 

(13,362

)

 

 

(8,200

)

Colombia

 

 

3,149.47

 

 

 

3,000.71

 

 

 

2,936.67

 

 

 

(8,043

)

 

 

1,278

 

 

 

246

 

Chile

 

 

709.16

 

 

 

679.09

 

 

 

615.97

 

 

 

(6,572

)

 

 

1,855

 

 

 

5,672

 

Peru

 

 

3.46

 

 

 

3.45

 

 

 

3.24

 

 

 

(4,882

)

 

 

87

 

 

 

2,752

 

All other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(898

)

 

 

(783

)

 

 

(869

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(125,474

)

 

$

26,361

 

 

$

(4,966

)

 

During the year ended December 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 consolidated statement of income.