13.Accumulated Other Comprehensive Income AOCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events. Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan. See Note 15 for more information on our defined benefit plans. The following table shows the changes in the components of AOCI, net of tax (in millions):
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Foreign |
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|
Cash |
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|
Defined |
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Currency |
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|
Flow |
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|
Benefit |
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|
Total |
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|
Translation |
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|
Hedges |
|
|
Plan Items |
|
|
AOCI |
|
Balance December 31, 2024 |
|
$ |
(239.0 |
) |
|
$ |
88.2 |
|
|
$ |
(112.0 |
) |
|
$ |
(262.8 |
) |
AOCI before reclassifications |
|
|
69.8 |
|
|
|
(6.3 |
) |
|
|
37.6 |
|
|
|
101.1 |
|
Reclassifications to statements of earnings |
|
|
- |
|
|
|
(45.3 |
) |
|
|
1.3 |
|
|
|
(44.0 |
) |
Balance December 31, 2025 |
|
$ |
(169.2 |
) |
|
$ |
36.6 |
|
|
$ |
(73.1 |
) |
|
$ |
(205.7 |
) |
The following table shows the reclassification adjustments from AOCI (in millions):
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Amount of Gain / (Loss) |
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|
Reclassified from AOCI |
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|
|
For the Years Ended December 31, |
|
|
Location on |
Component of AOCI |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
Statements of Earnings |
Cash flow hedges |
|
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|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
$ |
56.3 |
|
|
$ |
85.3 |
|
|
$ |
94.1 |
|
|
Cost of products sold |
Forward starting interest rate swaps |
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
Interest expense, net |
|
|
|
55.6 |
|
|
|
84.6 |
|
|
|
93.4 |
|
|
Total before tax |
|
|
|
10.3 |
|
|
|
14.7 |
|
|
|
16.0 |
|
|
Provision for income taxes |
|
|
$ |
45.3 |
|
|
$ |
69.9 |
|
|
$ |
77.4 |
|
|
Net of tax |
Defined benefit plans |
|
|
|
|
|
|
|
|
|
|
|
Settlements, Prior service cost and unrealized actuarial gain |
|
$ |
(1.9 |
) |
|
$ |
1.1 |
|
|
$ |
6.1 |
|
|
Other income (expense), net |
|
|
|
(0.6 |
) |
|
|
0.5 |
|
|
|
0.3 |
|
|
Provision for income taxes |
|
|
$ |
(1.3 |
) |
|
$ |
0.6 |
|
|
$ |
5.8 |
|
|
Net of tax |
Total reclassifications |
|
$ |
44.0 |
|
|
$ |
70.5 |
|
|
$ |
83.2 |
|
|
Net of tax |
The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions):
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|
|
For the Years Ended December 31, |
|
|
|
Before Tax |
|
|
Tax |
|
|
Net of Tax |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Foreign currency cumulative
translation adjustments |
|
$ |
7.1 |
|
|
$ |
(40.3 |
) |
|
$ |
(2.9 |
) |
|
$ |
(62.7 |
) |
|
$ |
39.3 |
|
|
$ |
(12.8 |
) |
|
$ |
69.8 |
|
|
$ |
(79.6 |
) |
|
$ |
9.9 |
|
Unrealized cash flow hedge (losses) gains |
|
|
(6.7 |
) |
|
|
116.0 |
|
|
|
84.8 |
|
|
|
(0.4 |
) |
|
|
21.2 |
|
|
|
13.7 |
|
|
|
(6.3 |
) |
|
|
94.8 |
|
|
|
71.1 |
|
Reclassification adjustments on
cash flow hedges |
|
|
(55.6 |
) |
|
|
(84.6 |
) |
|
|
(93.4 |
) |
|
|
(10.3 |
) |
|
|
(14.7 |
) |
|
|
(16.0 |
) |
|
|
(45.3 |
) |
|
|
(69.9 |
) |
|
|
(77.4 |
) |
Adjustments to prior service cost
and unrecognized actuarial
assumptions |
|
|
48.7 |
|
|
|
(18.6 |
) |
|
|
(17.0 |
) |
|
|
9.8 |
|
|
|
(1.5 |
) |
|
|
(1.7 |
) |
|
|
38.9 |
|
|
|
(17.1 |
) |
|
|
(15.3 |
) |
Total Other Comprehensive
(Loss) Income |
|
$ |
(6.5 |
) |
|
$ |
(27.5 |
) |
|
$ |
(28.5 |
) |
|
$ |
(63.6 |
) |
|
$ |
44.3 |
|
|
$ |
(16.8 |
) |
|
$ |
57.1 |
|
|
$ |
(71.8 |
) |
|
$ |
(11.7 |
) |
|