Other Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Other Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss

NOTE 6 – OTHER COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Other comprehensive (loss) income includes foreign currency translation adjustments arising from the conversion of financial statements of foreign subsidiaries into U.S. dollars, the amortization of the gain on the sale of an interest rate hedge agreement, and the change in the fair value of current interest rate hedge agreements. Components of accumulated other comprehensive loss as of June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30, 2020
	Foreign Currency Translation Adjustments			Gain on Sale of Interest Rate Hedge Agreement ⁽¹⁾			Change in Fair Value of Interest Rate Hedge Agreements ⁽²⁾			Total
Accumulated other comprehensive (loss) income at March 31, 2020	$	(15,813	)	$	1,501		$	(8,955	)	$	(23,267	)
Current period other comprehensive (loss) income:
Other comprehensive loss before reclassifications		609			—			(1,582	)		(973	)
Amounts reclassified from accumulated other comprehensive income ⁽³⁾		—			(180	)		721			541
Effect of taxes⁽⁴⁾		(5	)		47			226			268
Total current period other comprehensive (loss) income		604			(133	)		(635	)		(164	)
Accumulated other comprehensive (loss) income at June 30, 2020	$	(15,209	)	$	1,368		$	(9,590	)	$	(23,431	)

	Three Months Ended June 30, 2019
	Foreign Currency Translation Adjustments			Gain on Sale of Interest Rate Hedge Agreement ⁽¹⁾			Change in Fair Value of Interest Rate Hedge Agreement ⁽²⁾			Total
Accumulated other comprehensive (loss) income at March 31, 2019	$	(12,914	)	$	2,031		$	(1,385	)	$	(12,268	)
Current period other comprehensive (loss) income:
Other comprehensive (loss) income before reclassifications		(1,304	)		—			(2,173	)		(3,477	)
Amounts reclassified from accumulated other comprehensive (loss) income ⁽³⁾		—			(180	)		31			(149	)
Effect of taxes⁽⁴⁾		163			47			563			773
Total current period other comprehensive (loss) income		(1,141	)		(133	)		(1,579	)		(2,853	)
Accumulated other comprehensive (loss) income at June 30, 2019	$	(14,055	)	$	1,898		$	(2,964	)	$	(15,121	)

	Six Months Ended June 30, 2020
	Foreign Currency Translation Adjustments			Gain on Sale of Interest Rate Hedge Agreement ⁽¹⁾			Change in Fair Value of Interest Rate Hedge Agreements ⁽²⁾			Total
Accumulated other comprehensive (loss) income at December 31, 2019	$	(10,995	)	$	1,634		$	(2,783	)	$	(12,144	)
Current period other comprehensive (loss) income:
Other comprehensive income (loss) before reclassifications		(4,821	)		—			(10,155	)		(14,976	)
Amounts reclassified from accumulated other comprehensive (loss) income ⁽³⁾		—			(360	)		923			563
Effect of taxes⁽⁴⁾		607			94			2,425			3,126
Total current period other comprehensive (loss) income		(4,214	)		(266	)		(6,807	)		(11,287	)
Accumulated other comprehensive (loss) income at June 30, 2020	$	(15,209	)	$	1,368		$	(9,590	)	$	(23,431	)

	Six Months Ended June 30, 2019
	Foreign Currency Translation Adjustments			Gain on Sale of Interest Rate Hedge Agreement ⁽¹⁾			Change in Fair Value of Interest Rate Hedge Agreement ⁽²⁾			Total
Accumulated other comprehensive (loss) income at December 31, 2018	$	(14,168	)	$	2,164		$	(547	)	$	(12,551	)
Current period other comprehensive (loss) income:
Other comprehensive (loss) income before reclassifications		(50	)		—			(3,337	)		(3,387	)
Amounts reclassified from accumulated other comprehensive income ⁽³⁾		—			(360	)		54			(306	)
Effect of taxes⁽⁴⁾		163			94			866			1,123
Total current period other comprehensive (loss) income		113			(266	)		(2,417	)		(2,570	)
Accumulated other comprehensive (loss) income at June 30, 2019	$	(14,055	)	$	1,898		$	(2,964	)	$	(15,121	)

(1)

Represents the unamortized value of an interest rate hedge agreement, designated as a cash flow hedge, which was sold on December 1, 2016. The fair value of the interest rate hedge agreement, at the date of the sale, was recorded in other comprehensive income, net of tax, and is being reclassified to interest expense when earnings are impacted by the hedged items and as interest payments are made on the Credit Facility from January 31, 2018 to January 31, 2023 (see Note 10—Derivative Instruments and Hedging Activities).

(2)

Represents the change in fair value of interest rate hedge agreements designated as a cash flow hedge. The fair value of the interest rate hedge agreements was recorded in other comprehensive income and will be reclassified to interest expense when earnings are impacted by the hedged items and as interest payments are made on the Credit Facility from August 31, 2018 to February 28, 2025 (see Note 10—Derivative Instruments and Hedging Activities).

(3)	The Company expects to reclassify $0.7 million net gains related to the Gain on Sale of Interest Rate Hedge Agreement and $3.7 million net losses related to the Change in Fair Value of Interest Rate Hedge Agreement from accumulated other comprehensive loss into earnings during the next 12 months.

(4)	The Company’s effective tax rate for the three months ended June 30, 2020 and 2019 was 29.0% and 26.2%, respectively, and 24.6% and 22.9% for the six months ended June 30, 2020 and 2019, respectively.