Accumulated Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income/(Loss)

Accumulated Other Comprehensive Income/(Loss)Accumulated other comprehensive income/(loss) (“AOCI”) consists of actuarial gain/(loss) on retirement benefits and foreign currency translation adjustments. In addition, the Company enters into foreign currency forward contracts and interest rate swaps, which are designated as cash flow hedges and net investment hedges, as applicable, in accordance with ASC 815. Cumulative changes in the fair values of cash flow hedges are recognized in AOCI on the Company’s consolidated balance sheets. The fair value changes are reclassified from AOCI to unaudited consolidated statements of income upon settlement of foreign currency forward contracts designated as cash flow hedges of a forecast transaction, whereas such changes are for interest rate swaps are reclassified over the term of the contract. Fair value changes related to net investment hedges are included in AOCI and are reclassified to unaudited consolidated statements of income when a foreign operation is disposed or partially disposed. The following table sets forth the changes in AOCI for the nine months ended September 30, 2022 and 2021:

	Accumulated Other Comprehensive Income/(Loss)
	Foreign currency translation loss		Unrealized gain/(loss) on cash flow hedges		Retirement benefits		Total
Balance as of January 1, 2022	$	(95,437)	$	8,420	$	(2,457)	$	(89,474)
Losses recognized during the period	(49,371)		(28,638)		—		(78,009)
Reclassification to net income (1)	—		(1,881)		451		(1,430)
Income tax effects (2)	8,898		5,948		(136)		14,710
Accumulated other comprehensive income/(loss) as of September 30, 2022	$	(135,910)	$	(16,151)	$	(2,142)	$	(154,203)
Balance as of January 1, 2021	$	(86,185)	$	13,799	$	(2,598)	$	(74,984)
Losses recognized during the period	(10,475)		(42)		—		(10,517)
Losses on net investment hedges	(1,134)		—		—		(1,134)
Reclassification to net income (1)	—		(7,845)		533		(7,312)
Income tax effects (2)	1,859		(15)		(154)		1,690
Accumulated other comprehensive income/(loss) as of September 30, 2021	$	(95,935)	$	5,897	$	(2,219)	$	(92,257)

(1) Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income.

(2) These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation loss. Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.