Foreign Currency Translation

6 Months Ended

Jun. 30, 2018

13.	Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $309,306 and $253,282 as of June 30, 2018 and December 31, 2017, respectively, primarily includes cumulative foreign currency adjustments of $309,609 and $253,565, respectively, from translating the financial statements of the Company’s international subsidiaries.

As of June 30, 2018, all foreign countries where the Company has operations are non-highly inflationary, and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss.

A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 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. There has been a steady devaluation of the Argentine peso relative to the U.S. dollar in recent years. As of June 30, 2018, the Company did not designate Argentina as highly inflationary for accounting purposes. However, the Company has determined that Argentina will be deemed highly inflationary beginning July 1, 2018. The financial information of the Company’s Argentina subsidiaries will be remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters, effective July 1, 2018.

Below is a summary of the impact of translating the June 30, 2018 financial statements of the Company’s international subsidiaries:

					Other
					Comprehensive
					Income (Loss) for the
	Exchange Rate as of				Six Months Ended
Country	June 30, 2018		December 31, 2017		June 30, 2018
Brazil		3.88		3.31	$	(34,511	)
Argentina		28.94		18.65		(16,896	)
Peru		3.28		3.24		(580	)
Chile		654.28		615.97		(4,372	)
All other						315
					$	(56,044	)