| Accumulated Other Comprehensive Income ("AOCI") |
5. ACCUMULATED OTHER COMPREHENSIVE INCOME (“AOCI”)
The company’s total comprehensive income (loss) presently consists of net income, adjustments for our derivative financial instruments accounted for as cash flow hedges, and various pension and other postretirement benefit related items.
During the twelve and forty weeks ended October 3, 2020 and October 5, 2019, reclassifications out of AOCI were as follows (amounts in thousands):
|
|
|
Amount Reclassified from AOCI |
|
|
|
|
|
|
For the Twelve Weeks Ended |
|
|
Affected Line Item in the Statement |
|
Details about AOCI Components (Note 2) |
|
October 3, 2020 |
|
|
October 5, 2019 |
|
|
Where Net Income is Presented |
|
Gains and losses on cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
$ |
(33 |
) |
|
$ |
(33 |
) |
|
Interest expense |
|
Commodity contracts |
|
|
(869 |
) |
|
|
(313 |
) |
|
Cost of sales, Note 3 |
|
Total before tax |
|
|
(902 |
) |
|
|
(346 |
) |
|
Total before tax |
|
Tax benefit |
|
|
225 |
|
|
|
87 |
|
|
Income tax expense |
|
Total net of tax |
|
|
(677 |
) |
|
|
(259 |
) |
|
Net of tax |
|
Amortization of defined benefit pension items: |
|
|
|
|
|
|
|
|
|
|
|
Prior-service costs |
|
|
(12 |
) |
|
|
(80 |
) |
|
Note 1 |
|
Settlement gain |
|
|
7,153 |
|
|
|
— |
|
|
Note 1 |
|
Actuarial losses |
|
|
(57 |
) |
|
|
(1,574 |
) |
|
Note 1 |
|
Total before tax |
|
|
7,084 |
|
|
|
(1,654 |
) |
|
Total before tax |
|
Tax (expense) benefit |
|
|
(1,771 |
) |
|
|
418 |
|
|
Income tax expense |
|
Total net of tax |
|
|
5,313 |
|
|
|
(1,236 |
) |
|
Net of tax |
|
Total reclassifications |
|
$ |
4,636 |
|
|
$ |
(1,495 |
) |
|
Net of tax |
|
|
|
Amount Reclassified from AOCI |
|
|
|
|
|
|
For the Forty Weeks Ended |
|
|
Affected Line Item in the Statement |
|
Details about AOCI Components (Note 2) |
|
October 3, 2020 |
|
|
October 5, 2019 |
|
|
Where Net Income is Presented |
|
Gains and losses on cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
$ |
(110 |
) |
|
$ |
(110 |
) |
|
Interest expense |
|
Commodity contracts |
|
|
(2,224 |
) |
|
|
3,942 |
|
|
Cost of sales, Note 3 |
|
Total before tax |
|
|
(2,334 |
) |
|
|
3,832 |
|
|
Total before tax |
|
Tax benefit (expense) |
|
|
582 |
|
|
|
(968 |
) |
|
Income tax expense |
|
Total net of tax |
|
|
(1,752 |
) |
|
|
2,864 |
|
|
Net of tax |
|
Amortization of defined benefit pension items: |
|
|
|
|
|
|
|
|
|
|
|
Prior-service credits |
|
|
(98 |
) |
|
|
(265 |
) |
|
Note 1 |
|
Settlement loss |
|
|
(109,054 |
) |
|
|
— |
|
|
Note 1 |
|
Actuarial losses |
|
|
(1,389 |
) |
|
|
(5,248 |
) |
|
Note 1 |
|
Total before tax |
|
|
(110,541 |
) |
|
|
(5,513 |
) |
|
Total before tax |
|
Tax benefit |
|
|
27,929 |
|
|
|
1,392 |
|
|
Income tax expense |
|
Total net of tax |
|
|
(82,612 |
) |
|
|
(4,121 |
) |
|
Net of tax |
|
Total reclassifications |
|
$ |
(84,364 |
) |
|
$ |
(1,257 |
) |
|
Net of tax |
|
Note 1: |
These items are included in the computation of net periodic pension cost and are reported in the other components of net periodic pension and postretirement benefits (credit) expense line item on the Condensed Consolidated Statements of Income. See Note 17, Postretirement Plans, of Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information. |
|
Note 2: |
Amounts in parentheses indicate debits to determine net income. |
|
Note 3: |
Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. |
During the forty weeks ended October 3, 2020, changes to AOCI, net of income tax, by component were as follows (amounts in thousands and parentheses denote a debit balance):
|
|
|
Cash Flow
Hedge Items |
|
|
Defined
Benefit Pension
Plan Items |
|
|
Total |
|
|
AOCI at December 28, 2019 |
|
$ |
1,658 |
|
|
$ |
(107,678 |
) |
|
$ |
(106,020 |
) |
|
Other comprehensive (loss) income before reclassifications |
|
|
2,202 |
|
|
|
21,058 |
|
|
|
23,260 |
|
|
Reclassified to earnings from AOCI |
|
|
1,752 |
|
|
|
82,612 |
|
|
|
84,364 |
|
|
AOCI at October 3, 2020 |
|
$ |
5,612 |
|
|
$ |
(4,008 |
) |
|
$ |
1,604 |
|
During the forty weeks ended October 5, 2019, changes to AOCI, net of income tax, by component were as follows (amounts in thousands and parentheses denote a debit balance):
|
|
|
Cash Flow
Hedge Items |
|
|
Defined
Benefit Pension
Plan Items |
|
|
Total |
|
|
AOCI at December 29, 2018 |
|
$ |
(4,135 |
) |
|
$ |
(105,036 |
) |
|
$ |
(109,171 |
) |
|
Other comprehensive income before reclassifications |
|
|
(4,577 |
) |
|
|
— |
|
|
|
(4,577 |
) |
|
Reclassified to earnings from AOCI |
|
|
(2,864 |
) |
|
|
4,121 |
|
|
|
1,257 |
|
|
AOCI at October 5, 2019 |
|
$ |
(11,576 |
) |
|
$ |
(100,915 |
) |
|
$ |
(112,491 |
) |
Amounts reclassified out of AOCI to net income that relate to commodity contracts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. The following table presents the net of tax amount reclassified from AOCI for our commodity contracts (amounts in thousands and positive value indicates credits to determine net income):
|
|
|
For the Forty Weeks Ended |
|
|
|
|
October 3, 2020 |
|
|
October 5, 2019 |
|
|
Gross (loss) gain reclassified from AOCI into net
income |
|
$ |
(2,224 |
) |
|
$ |
3,942 |
|
|
Tax benefit (expense) |
|
|
556 |
|
|
|
(995 |
) |
|
Net of tax |
|
$ |
(1,668 |
) |
|
$ |
2,947 |
|
|