FINANCIAL INSTRUMENTS AND DERIVATIVES

12 Months Ended

Dec. 31, 2013

FINANCIAL INSTRUMENTS AND DERIVATIVES

FINANCIAL INSTRUMENTS AND DERIVATIVES

Derivative Instruments and Hedging Activities

The Company’s activities expose it to a variety of market risks, which primarily include the risks related to the effects of changes in foreign currency exchange rates, interest rates and commodity prices. These financial exposures are monitored and managed by the Company as part of its overall risk management program. The objective of this risk management program is to reduce the volatility that these market risks may have on the Company’s operating results and equity. The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, or assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert variable rate debt to fixed rate debt and to convert fixed rate debt to variable rate debt, cross currency basis swaps to convert debt denominated in one currency to another currency and commodity swaps to fix certain variable raw material costs.

Derivative Instruments Not Designated as Hedging

The Company enters into derivative financial instruments to hedge the foreign exchange revaluation risk associated with recorded assets and liabilities that are denominated in a non-functional currency. The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances and are recorded in “Other expense (income), net” on the Consolidated Statements of Operations. The Company primarily uses forward foreign exchange contracts and cross currency basis swaps to hedge these risks. The Company’s significant contracts outstanding at December 31, 2013 are summarized in the tables that follow.

On December 20, 2012, the Company established hedges totaling 241.4 million Swiss francs to offset an intercompany Swiss franc note receivable at a U.S. dollar functional entity that was created by a net dividend of 241.4 million Swiss francs. The change in the value of the hedges offset the change in the value of the Swiss franc denominated intercompany note receivable held at a U.S. dollar functional entity. During the year ending December 31, 2013, the Company adjusted the amount of the hedge each quarter to reflect note repayments and maintain an offset to the currency revaluation of the Swiss franc note receivable outstanding. The note and the hedge decreased by 142.3 million Swiss francs as the note was repaid. The hedge settlements resulted in $7.0 million cash receipt.

On January 10, 2013, the Company entered into 347.8 million euros of cross currency basis swaps to hedge a balance sheet liability resulting from a legal entity restructuring pursuant to the Company’s acquisition integration plans. The hedges had an original exchange rate of approximately 1.32 U.S. dollars per euro and offset currency revaluation of a euro note payable by a U.S. dollar functional company. On June 19, 2013, the Company terminated these swaps resulting in a cash receipt of $2.2 million.

On June 27, 2013 and September 16, 2013, the Company dedesignated 36.0 million euros and 48.0 million euros, respectively, of its net investment hedges. These trades matured during the fourth quarter of 2013, resulting in a net cash payment of $3.7 million. The change in the value of the hedges offset the change in the value of a euro denominated intercompany note receivable held at a U.S. dollar functional entity.

Derivative Instruments Designated as Hedging

Cash Flow Hedges

Foreign Exchange Risk Management

The Company uses a layered hedging program to hedge select anticipated foreign currency cash flows to reduce volatility in both cash flows and reported earnings of the consolidated Company. The Company accounts for the foreign exchange forward contracts as cash flow hedges. As a result, the Company records the fair value of the contracts primarily through AOCI based on the tested effectiveness of the foreign exchange forward contracts. The Company measures the effectiveness of cash flow hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be deferred in AOCI and released and recorded on the Consolidated Statements of Operations in the same period that the hedged transaction is recorded. The time value component of the fair value of the derivative is deemed ineffective and is reported currently in “Other expense (income), net” on the Consolidated Statements of Operations in the period which it is applicable. Any cash flows associated with these instruments are included in cash from operating activities on the Consolidated Statements of Cash Flows in accordance with the Company’s policy of classifying the cash flows from these instruments in the same category as the cash flows from the items being hedged.

These foreign exchange forward contracts generally have maturities up to eighteen months and the counterparties to the transactions are typically large international financial institutions. The Company’s significant contracts outstanding at December 31, 2013 are summarized in the tables that follow.

Interest Rate Risk Management

The Company uses interest rate swaps to convert a portion of its variable interest rate debt to fixed interest rate debt. At December 31, 2013, the Company has two groups of significant interest rate swaps. One of the groups of swaps has notional amounts totaling 12.6 billion Japanese yen, and effectively converts the underlying variable interest rates to an average fixed interest rate of 0.2% for a term of three years, ending in September 2014. Another swap has a notional amount of 65.0 million Swiss francs, and effectively converts the underlying variable interest rates to a fixed interest rate of 0.7% for a term of five years, ending in September 2016.

The Company enters into interest rate swap contracts infrequently as they are only used to manage interest rate risk on long-term debt instruments and not for speculative purposes. Any cash flows associated with these instruments are included in cash from operating activities on the Consolidated Statements of Cash Flows in accordance with the Company’s policy of classifying the cash flows from these instruments in the same category as the cash flows from the items being hedged. The Company’s significant contracts outstanding at December 31, 2013 are summarized in the tables that follow.

Commodity Risk Management

The Company selectively enters into commodity swaps to effectively fix certain variable raw material costs. These swaps are used to stabilize the cost of components used in the production of certain of the Company’s products. The Company generally accounts for the commodity swaps as cash flow hedges. As a result, the Company records the fair value of the contracts primarily through AOCI based on the tested effectiveness of the commodity swaps. The Company measures the effectiveness of cash flow hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be deferred in AOCI and released and recorded on the Consolidated Statements of Operations in the same period that the hedged transaction is recorded. The time value component of the fair value of the derivative is deemed ineffective and is reported currently in “Interest expense” on the Consolidated Statements of Operations in the period which it is applicable. Any cash flows associated with these instruments are included in cash from operating activities on the Consolidated Statements of Cash Flows in accordance with the Company’s policy of classifying the cash flows from these instruments in the same category as the cash flows from the items being hedged.

The following tables summarize the notional amounts and fair value of the Company’s cash flow hedges and non-designated derivatives at December 31, 2013:

Foreign Exchange Forward Contracts	Notional Amounts Maturing in the Year						Fair Value Net Asset (Liability)
(in thousands)	2014			2015			December 31, 2013
Forward sale, 14.9 million Australian dollars	$	12,331		$	1,610		$	757
Forward purchase, 12.6 million British pounds	(20,916		)	—			193
Forward sale, 46.5 million Canadian dollars	35,861			8,247			1,045
Forward purchase, 22.7 million Danish kroner	(4,181		)	—			(4		)
Forward sale, 212.9 million euros	243,739			47,344			(2,755		)
Forward sale, 23.3 million Hong Kong dollars	3,006			—			133
Forward sale, 870.6 million Japanese yen	8,263			—			(626		)
Forward sale, 180.9 million Mexican pesos	13,837			—			46
Forward purchase, 12.9 million Norwegian kroner	(2,118		)	—			(2		)
Forward sale, 0.5 million New Zealand dollars	417			—			2
Forward sale, 17.0 million Polish zlotys	5,621			—			(73		)
Forward sale, 3.2 million Singapore dollars	2,515			—			7
Forward sale, 4.2 billion South Korean won	4,000			—			1
Forward purchase, 1.3 billion Swedish kronor	(183,015		)	(28,429		)	(1,282		)
Forward purchase, 48.1 million Swiss francs	(62,278		)	7,225			(1,009		)
Forward sale, 71.6 million Taiwanese dollars	2,401			—			31
Total foreign exchange forward contracts	$	59,483		$	35,997		$	(3,536	)

Interest Rate Swaps	Notional Amounts Maturing in the Year										Fair Value Net Asset (Liability)
(in thousands)	2014		2015		2016		2017		2018 and Beyond		December 31, 2013
Euro	$	993	$	993	$	993	$	993	$	248	$	(341	)
Japanese yen	119,213		—		—		—		—		47
Swiss francs	—		—		72,829		—		—		(885		)
Total interest rate swaps	$	120,206	$	993	$	73,822	$	993	$	248	$	(1,179	)

Commodity Swap Contracts	Notional Amounts Maturing in the Year				Fair Value Net Asset (Liability)
(in thousands)	2014		2015		December 31, 2013
Silver swap - U.S. dollar	$	1,446	$	112	$	(343	)
Platinum swap - U.S. dollar	1,351		101		(91		)
Total commodity contracts	$	2,797	$	213	$	(434	)

Cross Currency Basis Swaps	Notional  Amounts Maturing in the Year				Fair Value Net Asset (Liability)
(in thousands)	2014		2015		December 31, 2013
449.8 million euros at 1.45 pay U.S. dollar three-month LIBOR receive three-month Euro Inter-Bank Offered Rate	$	618,449	$	—	$	(33,800	)
141.4 million Swiss francs at 0.93 pay Swiss francs three-month LIBOR receive U.S. dollar three-month LIBOR	112,045		46,370		(6,692		)
Total cross currency basis swaps	$	730,494	$	46,370	$	(40,492	)

At December 31, 2013, deferred net losses on derivative instruments of $7.7 million, which were recorded in AOCI, are expected to be reclassified to current earnings during the next twelve months. This reclassification is primarily due to the sale of inventory that includes hedged purchases and recognized interest expense on interest rate swaps. The maximum term over which the Company is hedging exposures to variability of cash flows (for all forecasted transactions, excluding interest payments on variable interest rate debt) is eighteen months. Overall, the derivatives designated as cash flow hedges are highly effective. Any cash flows associated with these instruments are included in cash from operating activities in the Consolidated Statements of Cash Flows in accordance with the Company’s policy of classifying the cash flows from these instruments in the same category as the cash flows from the items being hedged.

Hedges of Net Investments in Foreign Operations

The Company has significant investments in foreign subsidiaries. The net assets of these subsidiaries are exposed to volatility in currency exchange rates. Currently, the Company uses both non-derivative financial instruments, including foreign currency denominated debt held at the parent company level and derivative financial instruments to hedge some of this exposure. Translation gains and losses related to the net assets of the foreign subsidiaries are offset by gains and losses in the non-derivative and derivative financial instruments designated as hedges of net investments, which are included in AOCI.

During the fourth quarter of 2013, the Company settled and replaced net investment hedges totaling 533.8 million euros. The settled hedge instruments were cross currency basis swaps that matured in October and December of 2013. The Company replaced these hedges with new foreign exchange forward contracts that have layered maturity dates from March 2014 to June 2015. These net investment hedges were traded at an exchange rate of approximately 1.37 U.S. dollars per euro which resulted in cash payments totaling $52.7 million to settle the hedges during the fourth quarter of 2013. On December 30, 2013, the Company entered into 22.0 million euros of additional foreign exchange forward contracts designated as hedges of net investments, maturing June 2015. The hedges had an original exchange rate of approximately 1.38 U.S. dollars per euro.

On January 17, 2013, the Company extended 295.5 million Swiss francs of cross currency basis swaps maturing in February, March and April of 2013 with five new forward starting swaps totaling 295.5 million Swiss francs maturing in February 2016, March 2017 and April 2018. These net investment hedges were traded at an exchange rate of approximately .93 Swiss francs per U.S. dollar which resulted in cash payments totaling $55.2 million to settle the hedges in February, March, and April of 2013. The Company will receive three-month U.S. dollar LIBOR and pay three-month Swiss franc LIBOR minus 31.6 basis points.

At December 31, 2013 and 2012, the Company had debt, cross currency basis swaps and foreign exchange forward contracts to hedge the currency exposure related to a designated portion of the net assets of its European, Swiss and Japanese subsidiaries. The fair value net asset (liability) of the cross currency interest rate swap agreements and foreign exchange forward contracts is the estimated amount the Company would receive (pay) at the reporting date, taking into account the effective interest rates, currency swap basis rates and foreign exchange rates. At December 31, 2013 and 2012, the estimated net fair values of the cross currency interest rate swap agreements was a liability of $18.1 million and a liability of $90.7 million, respectively. At December 31, 2013, the estimated net fair values of the foreign exchange forward contracts was a liability of $5.1 million; the Company did not hold similar contracts at December 31, 2012. The effective portion of the change in the value of these derivatives is recorded in AOCI, net of tax effects. At December 31, 2013 and 2012, the accumulated translation gain (loss) on investments in foreign subsidiaries, primarily denominated in euros, Swiss francs, Japanese yen and Swedish kronor, net of these net investment hedges, were losses of $10.1 million and $71.4 million, respectively, which were included in AOCI, net of tax effects.

The following tables summarize the notional amounts and fair value of the Company’s hedges of net investments in foreign operations at December 31, 2013:

Foreign Exchange Forward Contracts	Notional Amounts Maturing in the Year				Fair Value Net Asset (Liability)
(in thousands)	2014		2015		December 31, 2013
Forward sale, 555.8 million euros	$	705,078	$	59,127	$	(5,112	)
Total foreign exchange forward contracts	$	705,078	$	59,127	$	(5,112	)

Cross Currency Basis Swaps	Notional Amounts Maturing in the Year										Fair Value Net Asset (Liability)
(in thousands)	2014		2015		2016		2017		2018		December 31, 2013
432.5 million Swiss francs at 0.93 pay Swiss francs three-month LIBOR receive U.S. dollar three-month LIBOR	$	90,084	$	63,417	$	112,045	$	112,045	$	107,003	$	(18,106	)
Total cross currency basis swaps	$	90,084	$	63,417	$	112,045	$	112,045	$	107,003	$	(18,106	)

Fair Value Hedges

The Company uses interest rate swaps to convert a portion of its fixed interest rate debt to variable interest rate debt. The Company has a group of U.S. dollar denominated interest rate swaps with an initial total notional value of $150.0 million to effectively convert the underlying fixed interest rate of 4.1% on the Company’s $250.0 million PPN to variable rate for a term of five years, ending February 2016. The notional value of the swaps will decline proportionately as portions of the PPN mature. These interest rate swaps are designated as fair value hedges of the interest rate risk associated with the hedged portion of the fixed rate PPN. Accordingly, the Company will carry the portion of the hedged debt at fair value, with the change in debt and swaps offsetting each other in the Consolidated Statements of Operations. At December 31, 2013, the estimated net fair value of these interest rate swaps was an asset of $2.4 million.

The following tables summarize the notional amounts and fair value of the Company’s fair value hedges at December 31, 2013:

							Fair Value Net
Interest Rate Swaps	Notional Amounts Maturing in the Year						Asset (Liability)
(in thousands)	2014		2015		2016		December 31, 2013
U.S. dollar	$	45,000	$	60,000	$	45,000	$	2,359
Total interest rate swaps	$	45,000	$	60,000	$	45,000	$	2,359

The following tables summarize the fair value and location of the Company’s derivatives on the Consolidated Balance Sheets at December 31, 2013 and 2012:

	December 31, 2013
	Prepaid Expenses and Other Current Assets		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities
(in thousands)
Designated as Hedges
Foreign exchange forward contracts	$	1,517	$	255	$	10,280	$	940
Commodity contracts	—		1		434		1
Interest rate swaps	789		1,617		466		419
Cross currency basis swaps	530		—		2,223		16,413
Total	$	2,836	$	1,873	$	13,403	$	17,773
Not Designated as Hedges
Foreign exchange forward contracts	$	3,128	$	—	$	2,328	$	—
DIO equity option contracts	—		—		—		142
Interest rate swaps	—		—		85		256
Cross currency basis swaps	—		—		38,551		1,941
Total	$	3,128	$	—	$	40,964	$	2,339

	December 31, 2012
	Prepaid Expenses and Other Current Assets		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities
(in thousands)
Designated as Hedges
Foreign exchange forward contracts	$	2,353	$	65	$	2,243	$	844
Commodity contracts	—		—		95		—
Interest rate swaps	2,192		2,535		525		948
Cross currency basis swaps	8,191		—		97,281		1,588
Total	$	12,736	$	2,600	$	100,144	$	3,380
Not Designated as Hedges
Foreign exchange forward contracts	$	6,652	$	—	$	1,353	$	—
DIO equity option contracts	—		—		—		153
Interest rate swaps	—		—		114		416
Cross currency basis swaps	537		—		40,026		55,858
Total	$	7,189	$	—	$	41,493	$	56,427

Balance Sheet Offsetting

Substantially all of the Company’s derivative contracts are subject to netting arrangements, whereby the right to offset occurs in the event of default or termination in accordance with the terms of the arrangements with the counterparty. While these contracts contain the enforceable right to offset through netting arrangements, the Company elects to present them on a gross basis on the Consolidated Balance Sheets.

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2013:

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in thousands)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount
Assets
Foreign exchange forward contracts	$	4,900	$	—	$	4,900	$	(4,641	)	$	—	$	259
Commodity contracts	1		—		1		(1		)	—		—
Interest rate swaps	2,406		—		2,406		(1,979		)	—		427
Cross currency basis swaps	530		—		530		(530		)	—		—
Total Assets	$	7,837	$	—	$	7,837	$	(7,151	)	$	—	$	686

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in thousands)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount
Liabilities
Foreign exchange forward contracts	$	13,548	$	—	$	13,548	$	(3,467	)	$	—	$	10,081
Commodity contracts	435		—		435		(1		)	—		434
DIO equity option contracts	142		—		142		—			—		142
Interest rate swaps	1,226		—		1,226		(62		)	—		1,164
Cross currency basis swaps	59,128		—		59,128		(3,621		)	—		55,507
Total Liabilities	$	74,479	$	—	$	74,479	$	(7,151	)	$	—	$	67,328

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2012:

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in thousands)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount
Assets
Foreign exchange forward contracts	$	9,070	$	—	$	9,070	$	(6,131	)	$	—	$	2,939
Interest rate swaps	4,727		—		4,727		(3,146		)	—		1,581
Cross currency basis swaps	8,728		—		8,728		(7,821		)	—		907
Total Assets	$	22,525	$	—	$	22,525	$	(17,098	)	$	—	$	5,427

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in thousands)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount
Liabilities
Foreign exchange forward contracts	$	4,440	$	—	$	4,440	$	(2,339	)	$	—	$	2,101
Commodity contracts	95		—		95		—			—		95
DIO equity option contracts	153		—		153		—			—		153
Interest rate swaps	2,003		—		2,003		(1,339		)	—		664
Cross currency basis swaps	194,753		—		194,753		(13,420		)	—		181,333
Total Liabilities	$	201,444	$	—	$	201,444	$	(17,098	)	$	—	$	184,346

The following tables summarize the amount of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the Company’s cash flow hedges for the years ended December 31, 2013 and 2012:

December 31, 2013
Derivatives in Cash Flow Hedging	Gain (Loss) in AOCI			Affected Line Item in the Consolidated Statements of Operations	Effective Portion Reclassified from AOCI into Income
(in thousands)
Interest rate swaps	$	(166	)	Interest expense	$	(3,681	)
Foreign exchange forward contracts	(6,550		)	Cost of products sold	1,184
Foreign exchange forward contracts	(294		)	SG&A expenses	(147		)
Commodity contracts	(1,004		)	Cost of products sold	(288		)
Total	$	(8,014	)		$	(2,932	)

Derivatives in Cash Flow Hedging	Affected Line Item in the Consolidated Statements of Operations	Ineffective Portion Recognized in Income
(in thousands)
Foreign exchange forward contracts	Other expense (income), net	$	666
Commodity contracts	Interest expense	(56		)
Total		$	610

December 31, 2012
Derivatives in Cash Flow Hedging	Gain (Loss) in AOCI			Affected Line Item in the Consolidated Statements of Operations	Effective Portion Reclassified from AOCI into Income
(in thousands)
Interest rate swaps	$	(1,987	)	Interest expense	$	(3,611	)
Foreign exchange forward contracts	1,027			Cost of products sold	8,029
Foreign exchange forward contracts	80			SG&A expenses	779
Commodity contracts	472			Cost of products sold	136
Total	$	(408	)		$	5,333

Derivatives in Cash Flow Hedging	Affected Line Item in the Consolidated Statements of Operations	Ineffective Portion Recognized in Income
(in thousands)
Foreign exchange forward contracts	Other expense (income), net	$	915
Commodity contracts	Interest expense	(25		)
Total		$	890

The following tables summarize the amount of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the Company’s hedges of net investments for the years ended December 31, 2013 and 2012:

December 31, 2013
Derivatives in Net Investment Hedging	Gain (Loss) in AOCI			Affected Line Item in the Consolidated Statements of Operations	Gain (Loss) Recognized in Income
(in thousands)
Cross currency basis swaps	$	(36,035	)	Interest income	$	4,771
				Interest expense	1,432
Foreign exchange forward contracts	(5,419		)	Other expense (income), net	284
Total	$	(41,454	)		$	6,487

December 31, 2012
Derivatives in Net Investment Hedging	Gain (Loss) in AOCI			Affected Line Item in the Consolidated Statements of Operations	Gain (Loss) Recognized in Income
(in thousands)
Cross currency basis swaps	$	(34,216	)	Interest income	$	4,264
				Interest expense	(1,885		)
Total	$	(34,216	)		$	2,379

The following tables summarize the amount of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the Company’s hedges of fair value for the years ended December 31, 2013 and 2012:

Derivatives in Fair Value Hedging		Gain (Loss) Recognized in Income
	Affected Line Item in the Consolidated Statements of Operations
(in thousands)		2013		2012
Interest rate swaps	Interest expense	$	320	$	2,284
Total		$	320	$	2,284

The following table summarizes the amounts of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the Company’s hedges not designated as hedging for the years ended December 31, 2013 and 2012:

Derivatives Not Designated as Hedging		Gain (Loss) Recognized in Income
	Affected Line Item in the Consolidated Statements of Operations
(in thousands)		2013		2012
Foreign exchange forward contracts (a)	Other expense (income), net	$	6,733	$	(1,224	)
DIO equity option contracts	Other expense (income), net	17		272
Interest rate swaps	Interest expense	6		(155		)
Cross currency basis swaps (a)	Other expense (income), net	15,483		12,323
Total		$	22,239	$	11,216

(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in “Other expense (income), net” on the Consolidated Statements of Operations.

Amounts recorded in AOCI related to cash flow hedging instruments at:

	December 31,
(in thousands, net of tax)	2013			2012
Beginning balance	$	(17,481	)	$	(12,737	)
Changes in fair value of derivatives	(6,234		)	105
Reclassifications to earnings from equity	1,964			(4,849		)
Total activity	(4,270		)	(4,744		)
Ending balance	$	(21,751	)	$	(17,481	)

Amounts recorded in AOCI related to hedges of net investments in foreign operations at:

	December 31,
(in thousands, net of tax)	2013			2012
Beginning balance	$	(71,358	)	$	(143,730	)
Foreign currency translation adjustment	72,159			83,283
Changes in fair value of:
Foreign currency debt	14,531			10,097
Derivative hedge instruments	(25,453		)	(21,008		)
Total activity	61,237			72,372
Ending balance	$	(10,121	)	$	(71,358	)