Other Comprehensive Earnings (Loss)

3 Months Ended

Apr. 02, 2017

Other Comprehensive Earnings (Loss) [Abstract]

Other Comprehensive Earnings (Loss)

(3) Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings. The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarters ended April 2,2017 and March 27,2016.

		Quarter Ended
		April 2,		March 27,
		2017		2016
Other comprehensive earnings (loss), tax effect:
Tax benefit on cash flow hedging activities		$	5,310		3,256
Tax benefit (expense) on unrealized holding gains			18		(953)
Reclassifications to earnings, tax effect:
	Tax (benefit) expense on cash flow hedging activities		(369)		1,749
	Tax benefit on unrecognized pension and postretirement
	amounts reclassified to the consolidated statements of operations		(822)		(667)
Total tax effect on other comprehensive earnings		$	4,137		3,385

Changes in the components of accumulated other comprehensive loss for the quarters ended April 2,2017 and March 27,2016are as follows:

					Unrealized
					Holding
					(Losses)				Total
			Gains		Gains on		Foreign		Accumulated
	Pension and		(Losses) on		Available-		Currency		Other
	Postretirement		Derivative		for-Sale		Translation		Comprehensive
	Amounts		Instruments		Securities		Adjustments		Earnings (Loss)
2017
Balance at December 25, 2016	$	(118,401)		51,085		1,424		(128,678)		(194,570)
Current period other comprehensive earnings (loss)		1,448		(28,691)		(31)		24,673		(2,601)
Balance at April 2, 2017	$	(116,953)		22,394		1,393		(104,005)		(197,171)
2016
Balance at December 27, 2015	$	(102,931)		79,317		1,258		(123,645)		(146,001)
Current period other comprehensive earnings (loss)		1,175		(33,347)		1,680		12,140		(18,352)
Balance at March 27, 2016	$	(101,756)		45,970		2,938		(111,505)		(164,353)

At April 2, 2017, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $40,301 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2017 or forecasted to be purchased during the remainder of 2017 and, to a lesser extent, 2018 through 2021, intercompany expenses expected to be paid or received during 2017 and 2018, cash receipts for sales made at the end of the first quarter of 2017 or forecasted to be made in the remainder of 2017 and, to a lesser extent, 2018 through 2019. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition of the related sales or expenses. 

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the long-term notes due in 2021 and 2044.  At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method. At April 2, 2017, deferred losses, net of tax of $17,907 related to these instruments remained in AOCE. For the quarters ended April 2, 2017 and March 27, 2016, losses of $484 and $450, respectively, were reclassified from AOCE to net earnings. 

Of the amount included in AOCE at April 2, 2017, the Company expects net gains of approximately $5,555 to be reclassified to the consolidated statements of operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.