Foreign Currency Translation

9 Months Ended

Sep. 30, 2023

Foreign Currency [Abstract]

Foreign Currency Translation

14.Foreign Currency Translation

The accumulated other comprehensive loss account in Holdings’ stockholders’ equity of $360.7 and $353.2 and CUSA’s stockholder's equity of $363.8 and $356.3, as of September 30, 2023 and December 31, 2022, respectively, primarily includes cumulative net foreign currency losses of $390.2 and $389.8 as of September 30, 2023 and December 31, 2022, respectively, from translating the financial statements of the Company's international subsidiaries and the cumulative changes in fair value of the interest rate swap agreements that are designated as hedges.

As of September 30, 2023, all foreign countries where the Company has operations are non-highly inflationary, other than Argentina. In non-highly inflationary countries, the local currency is the same as the functional currency and any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of 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. The financial information of the Company’s Argentina subsidiaries was remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters, effective July 1, 2018.

During 2019, the Argentine government instituted exchange controls restricting the ability of entities and individuals to exchange Argentine pesos for foreign currencies and to remit foreign currency out of Argentina. As a result of these currency exchange controls, markets in Argentina developed a legal trading mechanism known as the Blue Chip Swap that allows entities to transfer U.S. dollars out of and into Argentina. In a Blue Chip Swap transaction, an entity buys U.S. dollar denominated securities in Argentina using Argentine pesos, and subsequently sells the securities for U.S. dollars, in Argentina, to access U.S. dollars locally, or outside Argentina, by transferring the securities abroad, prior to being sold (the latter commonly known as Blue Chip Swap Rate). The Blue Chip Swap rate is the implicit exchange rate resulting from the Blue Chip Swap transaction. The Blue Chip Swap rate can diverge significantly from Argentina’s official exchange rate. During the nine months ended September 30, 2023, the Company entered into Blue Chip Swap transactions that resulted in a loss of approximately $10.1 which is reflected in “Foreign currency exchange and other related loss” in the Company’s condensed consolidated statement of income for the nine months ended September 30, 2023.

Below is a summary of the impact of translating the September 30, 2023 and September 30, 2022 financial statements of the Company’s international subsidiaries:

					Other Comprehensive Income (Loss) for the
	Exchange Rate as of				Nine Months Ended
Country	September 30, 2023		December 31, 2022		September 30, 2023			September 30, 2022
Brazil		5.03		5.29	$	2.2		$	0.4
Chile		891.63		852.00		(4.3	)		(7.7	)
Peru		3.81		3.81		(0.1	)		0.2
All other						1.8			1.2
					$	(0.4	)	$	(5.9	)

As noted above, beginning July 1, 2018, Argentina was deemed highly inflationary. For the nine months ended September 30, 2023 and 2022 the Company recorded foreign currency exchange losses of $15.2, excluding the impact of the Blue Chip Swap transactions noted above, and $5.1, respectively, due to the translation of Argentina's financial results to U.S. dollars.