13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AND OTHER COMPREHENSIVE LOSS
Accumulated other comprehensive loss includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature, unrealized gains and losses on derivative financial instruments designated as cash flow hedges and adjustments to pension liabilities. Amounts recorded in accumulated other comprehensive income (loss), net of tax, as of September 30, 2013 and December 31, 2012, and changes within the period are as follows:
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(In millions) |
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Accrued Pension
Benefit Liabilities |
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Foreign Currency
Items |
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Derivative
Cash Flow
Hedges |
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Accumulated Other
Comprehensive
Income (Loss) |
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Balance at December 31, 2012 |
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$ |
(48.6 |
) |
$ |
26.7 |
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$ |
- |
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$ |
(21.9 |
) |
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Other comprehensive income (loss) before reclassifications |
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2.1 |
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(10.7 |
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(0.7 |
) |
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(9.3 |
) |
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Less: amounts reclassified from accumulated other comprehensive income (loss) |
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1.0 |
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- |
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- |
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1.0 |
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Net current period other comprehensive income (loss) |
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1.1 |
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(10.7 |
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(0.7 |
) |
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(10.3 |
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Balance at September 30, 2013 |
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$ |
(47.5 |
) |
$ |
16.0 |
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$ |
(0.7 |
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$ |
(32.2 |
) |
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Other comprehensive income (loss) is derived from adjustments to reflect the unrealized gain (loss) on derivatives, changes in pension liabilities adjustment and changes in foreign currency translation adjustments. The components of other comprehensive income (loss) for the three and nine month periods ended September 30, 2013 and 2012 are as follows:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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(In millions) |
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2013 |
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2012 |
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2013 |
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2012 |
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Affected Line Items on the
Condensed Consolidated
Statements of Income |
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Change in foreign currency translation adjustment: |
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Currency translation adjustments |
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$ |
10.2 |
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$ |
14.6 |
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$ |
(16.4 |
) |
$ |
12.8 |
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Tax expense (benefit) |
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3.2 |
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6.9 |
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(5.7 |
) |
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6.1 |
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Provision for income taxes |
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Change in foreign currency translation adjustment, net of tax |
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$ |
7.0 |
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$ |
7.7 |
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$ |
(10.7 |
) |
$ |
6.7 |
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Unrealized gain (loss) on derivatives: |
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Commodity hedge contracts |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
0.7 |
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Cost of sales |
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Interest rate swaps |
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(0.3 |
) |
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- |
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(1.1 |
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- |
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Cost of sales |
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Pre-tax amount |
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(0.3 |
) |
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- |
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(1.1 |
) |
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0.7 |
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Tax expense (benefit) |
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(0.4 |
) |
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- |
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(0.4 |
) |
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0.3 |
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Provision for income taxes |
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Change in unrealized gain (loss) on derivatives, net of tax |
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$ |
0.1 |
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$ |
- |
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$ |
(0.7 |
) |
$ |
0.4 |
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Change in pension liability adjustment: |
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Adjustments to pension liabilities |
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$ |
0.5 |
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$ |
0.4 |
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$ |
1.6 |
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$ |
1.3 |
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Cost of sales/selling, general and administrative expenses |
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Tax expense |
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0.2 |
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0.1 |
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0.5 |
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0.4 |
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Provision for income taxes |
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Pension liability adjustment, net of tax |
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$ |
0.3 |
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$ |
0.3 |
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$ |
1.1 |
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$ |
0.9 |
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Other comprehensive income (loss), before income taxes |
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$ |
10.4 |
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$ |
15.0 |
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$ |
(15.9 |
) |
$ |
14.8 |
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Total tax expense (benefit) for the period |
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3.0 |
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7.0 |
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(5.6 |
) |
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6.8 |
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Provision for income taxes |
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Other comprehensive income (loss), net of tax |
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$ |
7.4 |
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$ |
8.0 |
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$ |
(10.3 |
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$ |
8.0 |
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