The following information is taken from the annual report of The Home Depot, Inc.:

Discuss why the Foreign Currency Translation Adjustment account was negative for Home Depot in all three fiscal years. Are the changes in this account reported on the income statement or in the statement of cash flow for Home Depot? Why or why not? Why are changes in a company’s “other comprehensive income” not subject to income taxation?

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Other Comprehensive Income (in millions) Foreign currency translation adjustment account January 31, February 1, 2016 2015 $(412) $(510) February 2, 2014 $(329)