Accumulated Other Comprehensive Income ("AOCI")

9 Months Ended

Oct. 03, 2020

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

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