DENTSPLY INTERNATIONAL INC /DE/ | 2013 | FY | 3

COMPREHENSIVE INCOME

AOCI includes foreign currency translation adjustments related to the Company’s foreign subsidiaries, net of the related changes in certain financial instruments hedging these foreign currency investments. In addition, changes in the Company’s fair value of certain derivative financial instruments, net unrealized holding gain on available-for-sale securities and pension liability adjustments and prior service costs, net are recorded in AOCI. These changes are recorded in AOCI net of any related tax adjustments. For the years ended December 31, 2013, 2012 and 2011, these tax adjustments were $205.1 million, $185.6 million and $167.5 million, respectively, primarily related to foreign currency translation adjustments.

The cumulative foreign currency translation adjustments included translation gains of $249.9 million and $177.7 million at December 31, 2013 and 2012, respectively, and were offset by losses of $108.9 million and $123.4 million, respectively, on loans designated as hedges of net investments.













Changes in AOCI, net of tax, by component for the years ended December 31, 2013, 2012 and 2011:
(in thousands)
Foreign Currency Translation Adjustments
 
Gains and (Loss) on Derivative Financial Instruments
 
Net Unrealized Holding Gain (Loss) on Available-for-Sale Securities
 
Pension Liability Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
$
54,302

 
$
(143,142
)
 
$
17,822

 
$
(73,182
)
 
$
(144,200
)
Other comprehensive income (loss) before reclassifications
86,690

 
(31,687
)
 
(5,093
)
 
19,478

 
69,388

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
1,962

 
—

 
3,788

 
5,750

Net increase (decrease) in other comprehensive income
86,690

 
(29,725
)
 
(5,093
)
 
23,266

 
75,138

Balance at December 31, 2013
$
140,992

 
$
(172,867
)
 
$
12,729

 
$
(49,916
)
 
$
(69,062
)

(in thousands)
Foreign Currency Translation Adjustments
 
Gains and (Loss) on Derivative Financial Instruments
 
Net Unrealized Holding Gain (Loss) on Available-for-Sale Securities
 
Pension Liability Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2011
$
(39,078
)
 
$
(117,390
)
 
$
(516
)
 
$
(33,986
)
 
$
(190,970
)
Other comprehensive income (loss) before reclassifications
93,380

 
(20,903
)
 
18,338

 
(40,474
)
 
50,341

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
(4,849
)
 
—

 
1,278

 
(3,571
)
Net increase (decrease) in other comprehensive income
93,380

 
(25,752
)
 
18,338

 
(39,196
)
 
46,770

Balance at December 31, 2012
$
54,302

 
$
(143,142
)
 
$
17,822

 
$
(73,182
)
 
$
(144,200
)






















Reclassification out of accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011:
(in thousands)
 
 
 
 
 
 
 
Details about AOCI Components
 
Amounts Reclassified from AOCI
Affected Line Item in the
Statements of Operations
 
Year Ended December, 31
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
Gains and (loss) on derivative financial instruments:
Interest rate swaps
 
$
(3,681
)
 
$
(3,611
)
 
$
(4,903
)
Interest expense
Foreign exchange forward contracts
 
1,184

 
8,029

 
1,503

Cost of products sold
Foreign exchange forward contracts
 
(147
)
 
779

 
39

SG&A expenses
Commodity contracts
 
(288
)
 
136

 
273

Cost of products sold
 
 
(2,932
)
 
5,333

 
(3,088
)
Net (loss) gain before tax
 
 
970

 
(484
)
 
644

Tax benefit (expense)
 
 
$
(1,962
)
 
$
4,849

 
$
(2,444
)
Net of tax
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of defined benefit pension and other postemployment benefit items:
Amortization of prior service benefits
 
$
141

 
$
138

 
$
80

(a)
Amortization of net actuarial losses
 
(5,532
)
 
(1,956
)
 
(1,773
)
(a)
 
 
(5,391
)
 
(1,818
)
 
(1,693
)
Net loss before tax
 
 
1,603

 
540

 
526

Tax benefit
 
 
$
(3,788
)
 
$
(1,278
)
 
$
(1,167
)
Net of tax
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
(5,750
)
 
$
3,571

 
$
(3,611
)
 
 
 
 
 
 
 
 
 
 
 
 
 

(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for the years ended December 31, 2013, 2012, and 2011, respectively (see Note 15, Benefit Plans, for additional details).

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