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106
Year Ended December 31, 2013
Change,
Tax benefit
Change,
net of tax
(liability)
pre-tax
Components of other comprehensive earnings (loss):
Foreign currency translation adjustment
$
(31.8)
$
3.5
$
(35.3)
Recognition of pension and other postretirement benefit plans prior service
credit
2.1
(0.8)
2.9
Net unrealized gain (loss) on marketable securities
(1.1)
–
(1.1)
Forward starting interest rate swap designated as a cash flow hedge
0.9
(0.5)
1.4
Total other comprehensive earnings (loss)
$
(29.9)
$
2.2
$
(32.1)
The change in Accumulated other comprehensive (loss) earnings, net of tax, consists of the following:
Recognition of
Net
Forward-Starting
Pension and
Unrealized
Net
Interest Rate
Accumulated
Foreign
Other
Gain (Loss) on
Unrealized
Unrealized
Swap
Other
Currency
Postretirement
Marketable
Gain (Loss) on
Gain on
Designated as a
Comprehensive
Translation
Benefit Plans
Securities –
Marketable
Cash Flow
Cash Flow
(Loss)
Adjustment
Prior Service Credit
OTTI
Securities
Hedges
Hedge
Earnings
Balance at December 31,
2012
$
0.3
$
(0.7)
$
0.1
$
2.0
–
$
(0.9)
$
0.8
Other comprehensive
income before
reclassifications
(21.1)
2.1
0.1
(0.1)
–
0.9
(18.1)
Amounts reclassified
from accumulated
other comprehensive
income
(10.7)
–
(0.1)
(1.0)
–
–
(11.8)
Net 2013 other
comprehensive (loss)
earnings
(31.8)
2.1
–
(1.1)
–
0.9
(29.9)
Balance at December 31,
2013
(31.5)
1.4
0.1
0.9
–
–
(29.1)
Other comprehensive
income before
reclassifications
(70.4)
0.2
0.1
1.7
15.9
–
(52.5)
Amounts reclassified
from accumulated
other comprehensive
income
–
(0.4)
(0.2)
(2.5)
–
–
(3.1)
Net 2014 other
comprehensive earnings
(loss)
(70.4)
(0.2)
(0.1)
(0.8)
15.9
–
(55.6)
Balance at December 31,
2014
(101.9)
1.2
–
0.1
15.9
–
(84.7)
Other comprehensive
income before
reclassifications
(73.7)
–
–
1.4
61.1
–
(11.2)
Amounts reclassified
from accumulated
other comprehensive
income
–
(0.5)
–
(1.5)
(67.1)
–
(69.1)
Net 2015 other
comprehensive (loss)
earnings
(73.7)
(0.5)
–
(0.1)
(6.0)
–
(80.3)
Balance at December 31,
2015
$
(175.6)
$
0.7
$
–
$
–
9.9
$
–
$
(165.0)
Changes in the Company's foreign currency translation adjustments were due to a number of factors as the Company operates in
various currencies throughout the world. The primary drivers of the unfavorable change in 2015 were decreases in the exchange rate
values of approximately 33% in the Brazilian real, 14% in the Mexican peso, 10% in the Euro, 8% in the Swedish krona and 5% in the
British pound. The primary drivers of the unfavorable change in 2014 were decreases in the exchange rate values of approximately
11% in the Brazilian real, 12% in the Mexican peso, 12% in the Euro and 18% in the Swedish krona. The primary drivers of the
unfavorable change in 2013 were decreases in the exchange rate values of approximately 8% in the Philippine peso, 13% in the
Brazilian real and 19% in the South African rand. The exchange rates referenced above are calculated as U.S. dollar per unit of foreign
currency.