Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Translation

v3.8.0.1
Foreign Currency Translation
9 Months Ended
Sep. 30, 2017
Foreign Currency [Abstract]  
Foreign Currency Translation

12.

Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $242,894 and $247,013 as of September 30, 2017 and December 31, 2016, respectively, primarily includes cumulative foreign currency adjustments of $243,020 and $247,047, respectively, from translating the financial statements of the Company’s international subsidiaries.

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.  The official cumulative inflation rate for Argentina over the last three years has not definitively reached 100 percent and remeasurement is not required.  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 September 30, 2017 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

Exchange Rate as of

 

 

Income (Loss) for The

 

Country

 

September 30, 2017

 

 

December 31, 2016

 

 

Nine Months Ended September 30, 2017

 

Brazil

 

 

3.17

 

 

 

3.26

 

 

$

6,700

 

Argentina

 

 

17.70

 

 

 

16.04

 

 

 

(5,918

)

Peru

 

 

3.35

 

 

 

3.45

 

 

 

1,133

 

Chile

 

 

640.60

 

 

 

679.09

 

 

 

3,136

 

All other

 

 

 

 

 

 

 

 

 

 

527

 

 

 

 

 

 

 

 

 

 

 

$

5,578

 

 

During the nine months ended September 30, 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 condensed consolidated statement of income.