Other Comprehensive Earnings (Loss)

9 Months Ended

Oct. 01, 2017

Other Comprehensive Earnings (Loss) [Abstract]

(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 nine-month periods ended October 1, 2017 and September 25, 2016.

		Quarter Ended				Nine Months Ended
		October 1,		September 25,		October 1,		September 25,
		2017		2016		2017		2016

Other comprehensive earnings (loss), tax effect:
Tax benefit on cash flow hedging activities		$	1,700		1,420		5,936		9,423
Tax benefit (expense) on unrealized holding losses and gains			445		221		315		(547)
Reclassifications to earnings, tax effect:
	Tax (benefit) expense on cash flow hedging activities		(1,875)		2,456		(2,884)		5,274
	Tax benefit on unrecognized pension and
	postretirement amounts reclassified to the
	consolidated statements of operations		(822)		(666)		(2,466)		(1,999)
Total tax effect on other comprehensive earnings (loss)		$	(552)		3,431		901		12,151

Changes in the components of accumulated other comprehensive loss for the nine months ended October 1, 2017 and September 25, 2016 are 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)		4,345		(85,966)		(555)		41,954		(40,222)
Balance at October 1, 2017	$	(114,056)		(34,881)		869		(86,724)		(234,792)

2016
Balance at December 27, 2015	$	(102,931)		79,317		1,258		(123,645)		(146,001)
Current period other comprehensive earnings (loss)		3,523		(80,956)		963		18,482		(57,988)
Balance at September 25, 2016	$	(99,408)		(1,639)		2,221		(105,163)		(203,989)

At October 1, 2017, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $17,547 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2017 or forecasted to be purchased during the remainder of 2017 and, to a lesser extent, 2018 through 2022, intercompany expenses expected to be paid or received during 2017 and 2018, and cash receipts for sales 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 October 1, 2017, deferred losses, net of tax, of $17,332 related to these instruments remained in AOCE. For the quarters ended October 1, 2017 and September 25, 2016, previously deferred losses of $450 were reclassified from AOCE to net earnings. For the nine-month periods ended October 1, 2017 and September 25, 2016, previously deferred losses of $1,384 and $1,349 were reclassified from AOCE to net earnings, respectively.

Of the amount included in AOCE at October 1, 2017, the Company expects net losses of approximately $18,932 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.