Other Comprehensive Earnings (Loss)

6 Months Ended

Jul. 01, 2018

Other Comprehensive Earnings (Loss) [Abstract]

Other Comprehensive Earnings (Loss)

(5) Other Comprehensive Earnings (Loss)

Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings (loss). The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarter and six-month periods ended July 1,2018 and July 2,2017.

		Quarter Ended				Six Months Ended
		July 1,		July 2,		July 1,		July 2,
		2018		2017		2018		2017
Other comprehensive earnings (loss), tax effect:
Tax (expense) benefit on unrealized holding gains (losses)		$	(25)		(148)		16		(130)
Tax (expense) benefit on cash flow hedging activities			(5,669)		(1,074)		311		4,236
Tax benefit on changes in unrecognized pension amounts			-		-		7,565		-
Reclassifications to earnings, tax effect:
	Tax benefit on cash flow hedging activities		(114)		(640)		(908)		(1,009)
	Tax benefit on unrecognized pension and
	postretirement amounts reclassified to the
	consolidated statements of operations		(729)		(822)		(1,257)		(1,644)
Total tax effect on other comprehensive earnings (loss)		$	(6,537)		(2,684)		5,727		1,453

Changes in the components of accumulated other comprehensive earnings(loss) for the six months ended July 1,2018 and July 2,2017 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
2018
Balance at December 31, 2017	$	(110,971)		(32,827)		1,034		(96,661)		(239,425)
Adoption of ASU 2018-02		(18,065)		(3,660)		222		-		(21,503)
Current period other comprehensive earnings (loss)		(21,726)		25,432		(56)		(37,798)		(34,148)
Balance at July 1, 2018	$	(150,762)		(11,055)		1,200		(134,459)		(295,076)
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)

At July 1, 2018, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $8,953 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the secondquarter of 2018 or forecasted to be purchased during the remainder of 2018 and, to a lesser extent, 2019 through 2022, intercompany expenses expected to be paid or received during 2018 and 2019, television and movie production costs paid in 2018 or expected to be paid in 2018 or 2019and cash receipts for sales made at the end of the second quarter 2018 or forecasted to be made in the remainder of 2018 and, to a lesser extent, 2019 through 2020. 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 1, 2018, deferred losses, net of tax, of $20,008 related to these instruments remained in AOCE. For the quarters ended July 1, 2018 andJuly 2, 2017, previously deferred losses of $449 and$450were reclassified fromAOCE to net earnings, respectively. For the six-month periodsended July 1, 2018 andJuly 2, 2017, previously deferred losses of $899 and $934 were reclassified from AOCE to net earnings, respectively.

Of the amount included in AOCE at July 1, 2018, the Company expects net gains of approximately $6,028to 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.