Foreign Currency Translation

3 Months Ended

Mar. 31, 2019

14.	Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $321,634 and $319,007 as of March 31, 2019 and December 31, 2018, respectively, primarily includes cumulative foreign currency adjustments of $314,545 and $315,300, respectively, from translating the financial statements of the Company’s international subsidiaries and the changes in fair values of the Company’s interest rate swap agreements that are designated as hedges.

As of March 31, 2019, all foreign countries where the Company has operations, other than Argentina, 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. 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 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. The financial information of the Company’s Argentina subsidiaries has been remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters, effective beginning July 1, 2018.

Below is a summary of the impact of translating the March 31, 2019 financial statements of the Company’s international subsidiaries:

					Other Comprehensive Income (Loss) for the
	Exchange Rate as of				Three Months Ended
Country	March 31, 2019		December 31, 2018		March 31, 2019			March 31, 2018
Brazil		3.93		3.88	$	(2,334	)	$	391
Argentina ⁽¹⁾		43.37		37.68		—			(3,541	)
Chile		680.83		694.74		1,473			1,207
Peru		3.32		3.39		982			182
Colombia		3,175.61		3,249.75		431			1,887
All other						203			78
					$	755		$	204

(1)

Beginning July 1, 2018, Argentina was deemed highly inflationary. The impact of translating Argentina financial results to U.S. dollars, which was not significant, has been recorded in foreign currency exchange gain on the Company’s condensed consolidated statement of income.