NOTE 20 | Other Comprehensive Income (Loss) |
Comprehensive income (loss) for TSYS consists of net income, cumulative foreign currency translation adjustments, unrealized gain on available for sale securities and the recognition of an overfunded or underfunded status of a defined benefit postretirement plan recorded as a component of shareholders’ equity. The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive income (loss) are as follows:
(in thousands) | Beginning Balance |
Pretax amount |
Tax effect |
Net-of-tax Amount |
Ending Balance |
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As of December 31, 2010 |
$ | 5,673 | (9,747 | ) | (1,489 | ) | (8,258 | ) | $ | (2,585 | ) | |||||||||
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Foreign currency translation adjustments |
$ | (1,242 | ) | 3,718 | 2,662 | 1,056 | $ | (186 | ) | |||||||||||
Transfer from noncontrolling interest (NCI) |
— | 28 | — | 28 | 28 | |||||||||||||||
Change in accumulated other comprehensive income (OCI) related to postretirement healthcare plans |
(1,343 | ) | 1,651 | 595 | 1,056 | (287 | ) | |||||||||||||
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As of December 31, 2011 |
$ | (2,585 | ) | 5,397 | 3,257 | 2,140 | $ | (445 | ) | |||||||||||
Foreign currency translation adjustments |
$ | (186 | ) | 4,875 | 1,357 | 3,518 | $ | 3,332 | ||||||||||||
Transfer from NCI |
28 | — | — | — | 28 | |||||||||||||||
Change in accumulated OCI related to postretirement healthcare plans |
(287 | ) | (2,603 | ) | (938 | ) | (1,665 | ) | (1,952 | ) | ||||||||||
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As of December 31, 2012 |
$ | (445 | ) | 2,272 | 419 | 1,853 | $ | 1,408 | ||||||||||||
Foreign currency translation adjustments |
$ | 3,332 | (295 | ) | 1,033 | (1,328 | ) | $ | 2,004 | |||||||||||
Transfer from NCI |
28 | — | — | — | 28 | |||||||||||||||
Gain on available for sale securities |
— | 2,810 | 1,037 | 1,773 | 1,773 | |||||||||||||||
Change in accumulated OCI related to postretirement healthcare plans |
(1,952 | ) | 1,926 | 30 | 1,896 | (56 | ) | |||||||||||||
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As of December 31, 2013 |
$ | 1,408 | 4,441 | 2,100 | 2,341 | $ | 3,749 | |||||||||||||
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Consistent with its overall strategy of pursuing international investment opportunities, TSYS adopted the permanent reinvestment exception under ASC 740, “Income Taxes,” with respect to future earnings of certain foreign subsidiaries. Its decision to permanently reinvest foreign earnings offshore means TSYS will no longer allocate taxes to foreign currency translation adjustments associated with these foreign subsidiaries accumulated in other comprehensive income.