NOTE 8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) (“AOCI”) primarily consists of foreign currency translation adjustments and changes in our forward foreign exchange contracts. The components of AOCI, net of tax, were as follows:
|
|
|
|
|
|
|
|
|
|
Foreign Currency Translation Adjustments |
|
Unrealized Gains (Losses) on Cash Flow Hedges |
|
Total |
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2019 |
$ |
(286) |
|
$ |
(17) |
|
$ |
(303) |
Other comprehensive income (loss) before reclassifications |
|
1,766 |
|
|
(1,069) |
|
|
697 |
Amounts reclassified from other comprehensive income (loss) |
|
- |
|
|
106 |
|
|
106 |
Net current period other comprehensive income (loss) |
|
1,766 |
|
|
(963) |
|
|
803 |
Balance as of December 31, 2020 |
$ |
1,480 |
|
$ |
(980) |
|
$ |
500 |
|
|
|
|
|
|
|
|
|
|
Foreign Currency Translation Adjustments |
|
Unrealized Gains (Losses) on Cash Flow Hedges |
|
Total |
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2018 |
$ |
73 |
|
$ |
404 |
|
$ |
477 |
Other comprehensive income (loss) before reclassifications |
|
(359) |
|
|
487 |
|
|
128 |
Amounts reclassified from other comprehensive income (loss) |
|
- |
|
|
(908) |
|
|
(908) |
Net current period other comprehensive loss |
|
(359) |
|
|
(421) |
|
|
(780) |
Balance as of December 31, 2019 |
$ |
(286) |
|
$ |
(17) |
|
$ |
(303) |
The effects on net income of amounts reclassified from unrealized gains (losses) on cash flow hedges for foreign exchange contracts and foreign currency translation adjustments for the years ended December 31, 2020 and 2019 were as follows:
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Gains (losses) reclassified from AOCI to the Consolidated Statements of Comprehensive Income |
Affected line item in the Consolidated |
Twelve Months Ended |
Statements of Comprehensive Income |
December 31, 2020 |
|
December 31, 2019 |
Foreign exchange contracts: |
|
|
|
|
|
Sales |
$ |
(139) |
|
$ |
1,017 |
Less: Income tax (benefit) expense |
|
(33) |
|
|
109 |
Amount reclassified, net of tax |
$ |
(106) |
|
$ |
908 |
|
|
|
|
|
|
Total reclassifications from AOCI |
$ |
(106) |
|
$ |
908 |
The Company’s policy is to classify reclassifications of cumulative foreign currency translation from AOCI to Other, net.
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