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Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income

14.

Accumulated Other Comprehensive Income

AOCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity.  Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events.

Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans.  Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity.  Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings.  Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan.  See Note 16 for more information on our defined benefit plans.

The following table shows the changes in the components of AOCI, net of tax (in millions):

 

 

 

Foreign

 

 

Cash

 

 

Defined

 

 

 

 

 

 

 

Currency

 

 

Flow

 

 

Benefit

 

 

Total

 

 

 

Translation

 

 

Hedges

 

 

Plan Items

 

 

AOCI

 

Balance December 31, 2020

 

$

(7.2

)

 

$

(55.6

)

 

$

(235.0

)

 

$

(297.8

)

AOCI before reclassifications

 

 

(99.9

)

 

 

86.4

 

 

 

73.5

 

 

 

60.0

 

Reclassifications to statements of earnings

 

 

-

 

 

 

1.3

 

 

 

4.9

 

 

 

6.2

 

Balance December 31, 2021

 

$

(107.1

)

 

$

32.1

 

 

$

(156.6

)

 

$

(231.6

)

 

 

The following table shows the reclassification adjustments from AOCI (in millions):

 

 

 

Amount of Gain / (Loss)

 

 

 

 

 

Reclassified from AOCI

 

 

 

 

 

For the Years Ended December 31,

 

 

Location on

Component of AOCI

 

2021

 

 

2020

 

 

2019

 

 

Statements of Earnings

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

$

(0.8

)

 

$

45.4

 

 

$

38.4

 

 

Cost of products sold

Interest rate swaps

 

 

-

 

 

 

-

 

 

 

2.8

 

 

Interest expense, net

Forward starting interest rate swaps

 

 

(0.6

)

 

 

(0.6

)

 

 

(0.6

)

 

Interest expense, net

 

 

 

(1.4

)

 

 

44.8

 

 

 

40.6

 

 

Total before tax

 

 

 

(0.1

)

 

 

6.3

 

 

 

5.5

 

 

Provision (benefit) for income taxes

 

 

$

(1.3

)

 

$

38.5

 

 

$

35.1

 

 

Net of tax

Defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

4.0

 

 

$

3.9

 

 

$

7.3

 

 

Other income (expense), net

Curtailment gain

 

 

-

 

 

 

-

 

 

 

7.2

 

 

Other income (expense), net

Unrecognized actuarial loss

 

 

(11.1

)

 

 

(8.5

)

 

 

(21.8

)

 

Other income (expense), net

 

 

 

(7.1

)

 

 

(4.6

)

 

 

(7.3

)

 

Total before tax

 

 

 

(2.2

)

 

 

(1.7

)

 

 

(2.3

)

 

Provision (benefit) for income taxes

 

 

$

(4.9

)

 

$

(2.9

)

 

$

(5.0

)

 

Net of tax

Total reclassifications

 

$

(6.2

)

 

$

35.6

 

 

$

30.1

 

 

Net of tax

 

The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions):

 

 

 

For the Years Ended December 31,

 

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Foreign currency cumulative

   translation adjustments

 

$

(54.8

)

 

$

(43.4

)

 

$

12.1

 

 

$

45.1

 

 

$

(69.0

)

 

$

13.6

 

 

$

(99.9

)

 

$

25.6

 

 

$

(1.5

)

Unrealized cash flow hedge gains (losses)

 

 

102.5

 

 

 

(42.7

)

 

 

34.6

 

 

 

16.1

 

 

 

(9.2

)

 

 

4.0

 

 

 

86.4

 

 

 

(33.5

)

 

 

30.6

 

Reclassification adjustments on

  cash flow hedges

 

 

1.4

 

 

 

(44.8

)

 

 

(40.6

)

 

 

0.1

 

 

 

(6.3

)

 

 

(5.5

)

 

 

1.3

 

 

 

(38.5

)

 

 

(35.1

)

Adjustments to prior service cost

   and unrecognized actuarial

   assumptions

 

 

96.9

 

 

 

(20.9

)

 

 

(56.4

)

 

 

18.5

 

 

 

(11.4

)

 

 

(7.9

)

 

 

78.4

 

 

 

(9.5

)

 

 

(48.5

)

Total Other Comprehensive

   Income (Loss)

 

$

146.0

 

 

$

(151.8

)

 

$

(50.3

)

 

$

79.8

 

 

$

(95.9

)

 

$

4.2

 

 

$

66.2

 

 

$

(55.9

)

 

$

(54.5

)