COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

COMPREHENSIVE LOSS

COMPREHENSIVE LOSS

Total comprehensive loss includes net income or loss, foreign currency translation adjustments, and net change in derivative transactions, net of any related deferred taxes and valuation allowance. Certain of the Company’s foreign subsidiaries use their respective local currency as their functional currency. In accordance with the Foreign Currency Matters Topic of the FASB ASC, assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. Income statement items are translated at the average exchange rates for the period. The cumulative impact of currency fluctuations related to the balance sheet translation is included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets and was an unrealized loss of $1.4 million and $1.3 million at June 30, 2020 and December 31, 2019, respectively.

The income tax impact related to components of other comprehensive loss for the three and six months ended June 30, 2020 and 2019 is reflected on the condensed consolidated statements of comprehensive loss. During the three and six months ended June 30, 2019, the Company established a valuation allowance on its deferred tax assets. As a result, the first quarter's tax impact recorded through other comprehensive income was reversed.