Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.10.0.1
Foreign Currency Translation
9 Months Ended
Sep. 30, 2018
Foreign Currency [Abstract]  
Foreign Currency Translation

13.

Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $320,166 and $253,282 as of September 30, 2018 and December 31, 2017, respectively, primarily includes cumulative foreign currency adjustments of $320,406 and $253,565, respectively, from translating the financial statements of the Company’s international subsidiaries.

As of September 30, 2018, 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 September 30, 2018 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

 

 

 

 

 

 

 

 

Loss for the

 

 

 

Exchange Rate as of

 

 

Nine Months Ended

 

Country

 

September 30, 2018

 

 

December 31, 2017

 

 

September 30, 2018

 

Brazil

 

 

4.05

 

 

 

3.31

 

 

$

(42,588

)

Argentina (1)

 

 

41.29

 

 

 

18.65

 

 

 

(18,272

)

Chile

 

 

658.22

 

 

 

615.97

 

 

 

(4,822

)

All other

 

 

 

 

 

 

 

 

 

 

(1,159

)

 

 

 

 

 

 

 

 

 

 

$

(66,841

)

 

(1)  

Amount represents the cumulative comprehensive loss recorded for Argentina through September 30, 2018.  Beginning July 1, 2018, Argentina was deemed highly inflationary.  The impact of translating Argentina financial results to U.S. dollars, which was not significant, has been recorded in foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income.