15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AND OTHER
COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) includes
(i) adjustments to pension and OPEB plan liabilities;
(ii) foreign currency translation of assets and liabilities of
foreign subsidiaries and the effects of exchange rate changes on
intercompany balances of a long-term nature; (iii) equity
investee’s other comprehensive income or loss items; and
(iv) unrealized gains or losses on derivative financial
instruments designated as cash flow hedges. Amounts recorded in
accumulated other comprehensive income (loss), net of tax, as of
December 31, 2015 and 2014, and changes within those periods
are as follows:
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(In millions)
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Foreign
Currency
Items |
|
|
Derivative Cash
Flow Hedges |
|
|
Accrued
Pension and
OPEB Plan
Liabilities |
|
|
Accumulated
Other
Comprehensive
Income (Loss) |
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|
Balance at January 1, 2014
|
|
$ |
6.7 |
|
|
$ |
(0.9 |
) |
|
$ |
60.5 |
|
|
$ |
66.3 |
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|
Other comprehensive loss before reclassifications
|
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|
(27.1 |
) |
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|
(7.4 |
) |
|
|
(103.2 |
) |
|
|
(137.7 |
) |
|
Amounts reclassified from accumulated other comprehensive loss, net
of tax
|
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|
— |
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|
— |
|
|
|
(2.3 |
) |
|
|
(2.3 |
) |
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Net current period other comprehensive loss
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|
(27.1 |
) |
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|
(7.4 |
) |
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|
(105.5 |
) |
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|
(140.0 |
) |
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Balance at December 31, 2014
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|
(20.4 |
) |
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|
(8.3 |
) |
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|
(45.0 |
) |
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|
(73.7 |
) |
|
Other comprehensive income (loss) before reclassifications
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|
(69.0 |
) |
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|
15.7 |
|
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|
20.6 |
|
|
|
(32.7 |
) |
|
Amounts reclassified from accumulated other comprehensive loss, net
of tax
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|
— |
|
|
|
(6.9 |
) |
|
|
(4.7 |
) |
|
|
(11.6 |
) |
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Net current period other comprehensive income (loss)
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|
(69.0 |
) |
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|
8.8 |
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|
15.9 |
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(44.3 |
) |
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Balance at December 31, 2015
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$ |
(89.4 |
) |
|
$ |
0.5 |
|
|
$ |
(29.1 |
) |
|
$ |
(118.0 |
) |
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Other Comprehensive Income (Loss)
Other comprehensive income (loss) is derived from adjustments to
reflect the unrealized gain or loss on derivatives, changes in
pension and OPEB liability adjustments, changes in equity
investee’s other comprehensive income or loss and changes in
foreign currency translation adjustments. The components of other
comprehensive income (loss) for the years ended December 31,
2015, 2014 and 2013 are as follows:
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| |
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Year Ended
December 31, |
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(In millions)
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2015 |
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2014 |
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2013 |
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Change in foreign currency translation adjustment:
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Foreign currency translation adjustments
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$ |
(82.5 |
) |
|
$ |
(57.7 |
) |
|
$ |
(34.7 |
) |
|
Tax benefit
|
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|
(9.7 |
) |
|
|
(22.9 |
) |
|
|
(14.7 |
) |
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Foreign currency translation adjustments, net of tax
|
|
$ |
(72.8 |
) |
|
$ |
(34.8 |
) |
|
$ |
(20.0 |
) |
|
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Change in derivative cash flow hedges:
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Commodity hedge contracts
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$ |
10.2 |
|
|
$ |
(10.6 |
) |
|
$ |
— |
|
|
Equity interest in investee’s other comprehensive income
(loss)
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|
3.9 |
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|
(1.2 |
) |
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(1.4 |
) |
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Pre-tax amount
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14.1 |
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(11.8 |
) |
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(1.4 |
) |
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Tax expense (benefit)
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5.3 |
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(4.4 |
) |
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(0.5 |
) |
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Derivative cash flow hedges, net of tax
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$ |
8.8 |
|
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$ |
(7.4 |
) |
|
$ |
(0.9 |
) |
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Change in pension and OPEB liability adjustments:
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Adjustments to pension liabilities
|
|
$ |
32.6 |
|
|
$ |
(164.9 |
) |
|
$ |
189.1 |
|
|
Curtailment gain
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|
— |
|
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|
— |
|
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|
(15.5 |
) |
|
Settlement loss
|
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|
— |
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|
5.8 |
|
|
|
— |
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|
Amortization of actuarial gain (loss) and prior service credit
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|
(7.5 |
) |
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(9.5 |
) |
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(0.2 |
) |
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Pre-tax amount
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|
25.1 |
|
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|
(168.6 |
) |
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|
173.4 |
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|
Tax expense (benefit)
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|
9.4 |
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|
(63.1 |
) |
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64.3 |
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Pension and OPEB liability adjustments, net of tax
|
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$ |
15.7 |
|
|
$ |
(105.5 |
) |
|
$ |
109.1 |
|
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Other comprehensive income (loss), before income taxes
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$ |
(43.3 |
) |
|
$ |
(238.1 |
) |
|
$ |
137.3 |
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|
Tax expense (benefit) for the period
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|
5.0 |
|
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(90.4 |
) |
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|
49.1 |
|
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Other comprehensive income (loss), net of tax
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|
$ |
(48.3 |
) |
|
$ |
(147.7 |
) |
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$ |
88.2 |
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The components of other comprehensive income (loss) that have been
reclassified during the years ended December 31, 2015, 2014
and 2013 are as follows:
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Affected Line Items
on the Unaudited
Consolidated
Statements of Operations
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| |
Year Ended
December 31, |
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(In millions)
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2015 |
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2014 |
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2013 |
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Details about other comprehensive income (loss)
components:
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Change in derivative cash flow hedges:
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Loss on derivative cash flow hedges
|
|
$ |
(11.1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
Cost of sales |
|
Tax benefit
|
|
|
(4.2 |
) |
|
|
— |
|
|
|
— |
|
|
Provision for (benefit from) income taxes |
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|
|
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Reclassifications for the period, net of tax
|
|
$ |
(6.9 |
) |
|
$ |
— |
|
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$ |
— |
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Change in pension and OPEB liability adjustments:
|
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|
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|
Curtailment gain
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(15.5 |
) |
|
Integration-related costs and other, net |
|
Settlement loss
|
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|
— |
|
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|
5.8 |
|
|
|
— |
|
|
Integration-related costs and other, net |
|
Amortization of actuarial gain (loss) and prior service credit
|
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|
(7.5 |
) |
|
|
(9.5 |
) |
|
|
(0.2 |
) |
|
Cost of sales and selling, general and administrative expenses
|
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|
Pre-tax amount
|
|
|
(7.5 |
) |
|
|
(3.7 |
) |
|
|
(15.7 |
) |
|
|
|
Tax benefit
|
|
|
(2.8 |
) |
|
|
(1.4 |
) |
|
|
(6.0 |
) |
|
Provision for (benefit from) income taxes |
|
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|
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|
|
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|
Reclassifications for the period, net of tax
|
|
$ |
(4.7 |
) |
|
$ |
(2.3 |
) |
|
$ |
(9.7 |
) |
|
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