Other Comprehensive Earnings (Loss)

9 Months Ended

Sep. 30, 2018

Other Comprehensive Earnings (Loss) [Abstract]

(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 nine-month periods ended September 30, 2018 and October 1, 2017.

		Quarter Ended				Nine Months Ended
		September 30,		October 1,		September 30,		October 1,
		2018		2017		2018		2017

Other comprehensive earnings (loss), tax effect:
Tax benefit on unrealized holding losses		$	179		445		195		315
Tax (expense) benefit on cash flow hedging activities			(73)		1,700		238		5,936
Tax benefit on changes in unrecognized pension amounts			-		-		7,565		-
Reclassifications to earnings, tax effect:
	Tax expense (benefit) on cash flow hedging activities		1,015		(1,875)		107		(2,884)
	Tax benefit on unrecognized pension and
	postretirement amounts reclassified to the
	consolidated statements of operations		(600)		(822)		(1,857)		(2,466)
Total tax effect on other comprehensive earnings (loss)		$	521		(552)		6,248		901

Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 30, 2018 and October 1, 2017 are as follows:

					Unrealized
					Holding
					Gains				Total
			Gains		(Losses) 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)		(19,660)		29,083		(673)		(44,560)		(35,810)
Balance at September 30, 2018	$	(148,696)		(7,404)		583		(141,221)		(296,738)

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)

At September 30, 2018, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $12,255 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter 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 2019 and cash receipts for sales made at the end of the third 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 September 30, 2018, deferred losses, net of tax, of $19,659 related to these instruments remained in AOCE. For the quarters ended September 30, 2018 and October 1, 2017, previously deferred losses of $450 were reclassified from AOCE to net earnings, respectively. For the nine-month periods ended September 30, 2018 and October 1, 2017, previously deferred losses of $1,349 and $1,384 were reclassified from AOCE to net earnings, respectively.

Of the amount included in AOCE at September 30, 2018, the Company expects net gains of approximately $10,898 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.