Note 20 Other Comprehensive Income (Loss)

Stockholders’ equity contains certain items classified as other comprehensive income (loss), including:

•

Unrealized gains (losses) on anticipated sales hedging transactions relate to derivative instruments used to hedge the currency exchange rates for forecasted euro sales and interest rates on variable rate commitments. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transaction occurs. See Note 13 for more details.

•

Unrealized gains (losses) on forward interest rate swap hedging transactions refers to the hedging of the interest rate risk associated with the variable rate commitment entered into for the Acquisition. See Note 13 for more details.

•

Unrealized gains (losses) on investments are deferred from income statement recognition until the gains or losses are realized.

•

Foreign currency translation adjustment relates to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.

The components of other comprehensive income (loss) included in the Consolidated Statements of Comprehensive Income (Loss) are as follows (in thousands):


	As of December 31, 2013		Gain (Loss) recognized in OCI		Gain (Loss) reclassified from AOCI to income		Year ended December 31, 2014		As of December 31, 2014

Unrealized gains (losses) on anticipated sales hedging transactions:
Gross	$	(2,373)	$	9,632	$	(601)(1)	$	9,031	$	6,658
Income tax (benefit)		(509)		1,970		(129)		1,841		1,332

Net		(1,864)		7,662		(472)		7,190		5,326

Unrealized gains (losses) forward interest rate swaps hedging transactions:
Gross		0		(12,069)		0(2)		(12,069)		(12,069)
Income tax (benefit)		0		(4,370)		0		(4,370)		(4,370)

Net		0		(7,699)		0		(7,699)		(7,699)

Unrealized gains (losses) on investments:
Gross		(151)		249		4(3)		253		102
Income tax (benefit)		(73)		(111)		(61)		(172)		(245)

Net		(78)		360		65		425		347

Foreign currency translation adjustments		(7,839)		1,324		(6)(4)		1,318		(6,521)

Total accumulated other comprehensive gains (losses)	$	(9,781)	$	1,647	$	(413)	$	1,234	$	(8,547)


	As of December 31, 2012		Gain (Loss) recognized in OCI		Gain (Loss) reclassified from AOCI to income		Twelve Months ended December 31, 2013		As of December 31, 2013

Unrealized gains (losses) on anticipated sales hedging transactions:
Gross	$	(2,581)	$	3,297	$	(3,089)(1)	$	208	$	(2,373)
Income tax (benefit)		(599)		862		(772)		90		(509)

Net		(1,982)		2,435		(2,317)		118		(1,864)

Unrealized gains (losses) forward interest rate swaps hedging transactions:
Gross		0		0		0(2)		0		0
Income tax (benefit)		0		0		0		0		0

Net		0		0		0		0		0

Unrealized gains (losses) on investments:
Gross		540		(1,294)		603(3)		(691)		(151)
Income tax (benefit)		162		(423)		188		(235)		(73)

Net		378		(871)		415		(456)		(78)

Foreign currency translation adjustments		(8,721)		566		316(4)		882		(7,839)

Total accumulated other comprehensive gains (losses)	$	(10,325)	$	2,130	$	(1,586)	$	544	$	(9,781)


	As of December 31, 2011		Gain (Loss) recognized in OCI		Gain (Loss) reclassified from AOCI to income		Twelve Months ended December 31, 2012		As of December 31, 2012

Unrealized gains (losses) on anticipated sales hedging transactions: :
Gross	$	7,355	$	(14,757)	$	4,821(1)	$	(9,936)	$	(2,581)
Income tax (benefit)		2,096		(3,900)		1,205		(2,695)		(599)

Net		5,259		(10,857)		3,616		(7,241)		(1,982)

Unrealized gains (losses) forward interest rate swaps hedging transactions:
Gross		0		0		0(2)		0		0
Income tax (benefit)		0		0		0		0		0

Net		0		0		0		0		0

Unrealized gains (losses) on investments:
Gross		(797)		1,052		285(3)		1,337		540
Income tax (benefit)		(288)		349		101		450		162

Net		(509)		703		184		887		378

Foreign currency translation adjustments		(8,963)		321		(79)(4)		242		(8,721)

Total accumulated other comprehensive gains (losses)	$	(4,213)	$	(9,833)	$	3,721	$	(6,112)	$	(10,325)

(1)	Transfer of unrealized gains and (losses) from AOCI to income on anticipated sales hedging transactions are included in net sales of tangible products.

(2)	Transfer from AOCI to income and (losses) on forward interest rate swap hedging transactions are reported in forward swaps gain (loss).

(3)	Transfer of unrealized gains and (losses) from AOCI to income on investments are included in investment income.

(4)	Transfer of foreign currency translation gains and (losses) from AOCI to income, are included in foreign exchange.