Other Comprehensive Earnings (Loss)

6 Months Ended

Jul. 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 quarter and six-month periods ended July 2,2017 and June 26,2016.

		Quarter Ended				Six Months Ended
		July 2,		June 26,		July 2,		June 26,
		2017		2016		2017		2016
Other comprehensive earnings (loss), tax effect:
Tax (expense) benefit on cash flow hedging activities		$	(1,074)		4,747		4,236		8,003
Tax (expense) benefit on unrealized holding gains (losses)			(148)		185		(130)		(768)
Reclassifications to earnings, tax effect:
	Tax expense (benefit) on cash flow hedging activities		(640)		1,069		(1,009)		2,818
	Tax benefit on unrecognized pension and
	postretirement amounts reclassified to the
	consolidated statements of operations		(822)		(666)		(1,644)		(1,333)
Total tax effect on other comprehensive earnings (loss)		$	(2,684)		5,335		1,453		8,720

Changes in the components of accumulated other comprehensive loss for the quarters ended July 2,2017 and June 26,2016are as follows:

					Unrealized
					Holding				Total
			Gains		Gains on		Foreign		Accumulated
	Pension and		(Losses) on		Available-		Currency		Other
	Postretirement		Derivative		for-Sale		Translation		Comprehensive
	Amounts		Instruments		Securities		Adjustments		Loss
2017
Balance at December 25, 2016	$	(118,401)		51,085		1,424		(128,678)		(194,570)
Current period other comprehensive earnings (loss)		2,897		(63,981)		229		28,812		(32,043)
Balance at July 2, 2017	$	(115,504)		(12,896)		1,653		(99,866)		(226,613)
2016
Balance at December 27, 2015	$	(102,931)		79,317		1,258		(123,645)		(146,001)
Current period other comprehensive earnings (loss)		2,350		(51,968)		1,353		19,965		(28,300)
Balance at June 26, 2016	$	(100,581)		27,349		2,611		(103,680)		(174,301)

At July 2, 2017, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $4,724in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the secondquarter of 2017or 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 secondquarter of 2017or 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 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 July 2, 2017, deferred losses, net of tax of $17,620 related to these instruments remained in AOCE. For the quarters ended July 2, 2017 andJune 26, 2016, previously deferred losses of $450 were reclassified from AOCE to net earnings. For the six month periodsended July 2, 2017 andJune 26, 2016, previously deferred losses of $934 and $899were reclassified from AOCE to net earnings, respectively.

Of the amount included in AOCE at July 2, 2017, the Company expects net losses of approximately $8,476to 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.