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Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 29, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Net Fair Value of Commodity Price Risk

As of December 29, 2018, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

501

 

 

$

 

 

$

 

 

$

501

 

Other long-term assets

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

501

 

 

$

 

 

$

 

 

$

501

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(7,732

)

 

$

 

 

$

 

 

$

(7,732

)

Other long-term liabilities

 

 

(1,203

)

 

 

 

 

 

 

 

 

(1,203

)

Total

 

$

(8,935

)

 

$

 

 

$

 

 

$

(8,935

)

Net Fair Value

 

$

(8,434

)

 

$

 

 

$

 

 

$

(8,434

)

 

As of December 30, 2017, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

259

 

 

$

 

 

$

 

 

$

259

 

Other long-term assets

 

 

32

 

 

 

 

 

 

 

 

 

32

 

Total

 

$

291

 

 

$

 

 

$

 

 

$

291

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

(10,247

)

 

$

 

 

$

 

 

$

(10,247

)

Other long-term liabilities

 

 

(639

)

 

 

 

 

 

 

 

 

(639

)

Total

 

 

(10,886

)

 

 

 

 

 

 

 

 

(10,886

)

Net Fair Value

 

$

(10,595

)

 

$

 

 

$

 

 

$

(10,595

)

Derivative Held for Hedging the Risk of Changes in Forecasted Interest Payments on Issuance of Long-term Debt

The following table outlines the company’s derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (amounts in thousands, before tax, and an asset is a positive value and a liability is a negative value):

 

Terminated

 

Description

 

Aggregate Notional

Amount

 

 

Fair Value When

Terminated

 

 

Fair Value Deferred in

AOCI (1)

 

 

Ineffective Portion at

Termination

 

April/2012

 

Treasury lock

 

$

500,000

 

 

$

(3,137

)

 

$

2,510

 

 

$

627

 

September/2016

 

Treasury lock

 

$

200,000

 

 

$

1,298

 

 

$

(1,298

)

 

$

 

September/2016

 

Treasury lock

 

$

150,000

 

 

$

(323

)

 

$

215

 

 

$

108

 

 

(1)

The amount reported in AOCI will be reclassified to interest expense as interest payments are made on the related notes.

Derivative Instruments Recorded on Consolidated Balance Sheet

The company had the following derivative instruments recorded on the Consolidated Balance Sheets, all of which are utilized for the risk management purposes detailed above (amounts in thousands):

 

 

 

Derivative Assets

 

 

 

December 29, 2018

 

 

December 30, 2017

 

Derivatives Designated as Hedging Instruments

 

Balance Sheet Location

 

Fair Value

 

 

Balance Sheet Location

 

Fair Value

 

Commodity contracts

 

Other current assets

 

$

501

 

 

Other current assets

 

$

259

 

Commodity contracts

 

Other long-term assets

 

 

 

 

Other long-term assets

 

 

32

 

Total

 

 

 

$

501

 

 

 

 

$

291

 

 

 

 

Derivative Liabilities

 

 

 

December 29, 2018

 

 

December 30, 2017

 

Derivatives Designated as Hedging Instruments

 

Balance Sheet Location

 

Fair Value

 

 

Balance Sheet Location

 

Fair Value

 

Commodity contracts

 

Other current liabilities

 

$

7,732

 

 

Other current liabilities

 

$

10,247

 

Commodity contracts

 

Other long-term liabilities

 

 

1,203

 

 

Other long-term liabilities

 

 

639

 

Total

 

 

 

$

8,935

 

 

 

 

$

10,886

 

Effect of Derivative Instruments for Deferred Gains And (Losses) on Closed Contracts and Effective Portion in Fair Value on AOCI, Utilized for Risk Management Purposes (Detail)

The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax):

 

 

 

Amount of Gain or (Loss) Recognized in OCI on Derivatives

(Effective Portion) (Net of tax)

 

Derivatives in Cash Flow Hedging Relationships

 

Fiscal 2018

 

 

Fiscal 2017

 

 

Fiscal 2016

 

Interest rate contracts

 

$

 

 

$

 

 

$

666

 

Commodity contracts

 

 

2,978

 

 

 

(6,789

)

 

 

5,064

 

Total

 

$

2,978

 

 

$

(6,789

)

 

$

5,730

 

 

 

 

Amount of (Gain) or Loss Reclassified

from Accumulated OCI into Income

(Effective Portion)(Net of tax)

 

 

Location of (Gain) or Loss

Reclassified from AOCI into Income

Derivatives in Cash Flow Hedging Relationships

 

Fiscal 2018

 

 

Fiscal 2017

 

 

Fiscal 2016

 

 

(Effective Portion)

Interest rate contracts

 

$

107

 

 

$

88

 

 

$

135

 

 

Interest expense (income)

Commodity contracts

 

 

972

 

 

 

1,279

 

 

 

3,264

 

 

Production costs (1)

Total

 

$

1,079

 

 

$

1,367

 

 

$

3,399

 

 

 

 

1.

Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately).

Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions

The balance in accumulated other comprehensive loss (income) related to commodity price risk and interest rate risk derivative transactions that are closed or will expire over the next three years are as follows (amounts in thousands and net of tax) at December 29, 2018:

 

 

 

Commodity Price

Risk Derivatives

 

 

Interest Rate Risk

Derivatives

 

 

Totals

 

Closed contracts

 

$

(2,153

)

 

$

(15

)

 

$

(2,168

)

Expiring in 2019

 

 

5,405

 

 

 

 

 

 

5,405

 

Expiring in 2020

 

 

782

 

 

 

 

 

 

782

 

Expiring in 2021

 

 

112

 

 

 

 

 

 

112

 

Expiring in 2022

 

 

6

 

 

 

 

 

 

6

 

Total

 

$

4,152

 

 

$

(15

)

 

$

4,137

 

Financial Contracts Hedging Commodity Risks

As of December 29, 2018, the company had entered into the following financial contracts to hedge commodity risks (amounts in thousands):

 

Derivatives in Cash Flow Hedging Relationships

 

Notional amount

 

Wheat contracts

 

$

122,946

 

Soybean oil contracts

 

 

20,372

 

Corn contracts

 

 

10,570

 

Natural gas contracts

 

 

16,996

 

Total

 

$

170,884