Other Comprehensive Earnings (Loss)

3 Months Ended

Mar. 31, 2019

Other Comprehensive Earnings (Loss) [Abstract]

(4) 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 quarters ended March 31, 2019 and April 1, 2018.

		Quarter Ended
		March 31,		April 1,
		2019		2018

Other comprehensive earnings (loss), tax effect:
Tax (expense) benefit on unrealized holding (gains) losses		$	(77)		41
Tax (expense) benefit on cash flow hedging activities			(3)		5,980
Tax benefit on changes in unrecognized pension amounts			-		7,565
Reclassifications to earnings, tax effect:
	Tax expense (benefit) on cash flow hedging activities		346		(794)
	Tax benefit on unrecognized pension and postretirement
	amounts reclassified to the consolidated statements of operations		(331)		(528)
Total tax effect on other comprehensive earnings (loss)		$	(65)		12,264

Changes in the components of accumulated other comprehensive earnings (loss) for the three months ended March 31, 2019 and April 1, 2018 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
2019
Balance at December 30, 2018	$	(143,134)		1,549		(744)		(152,185)		(294,514)
Current period other comprehensive earnings (loss)		1,139		3,778		265		6,993		12,175
Balance at March 31, 2019	$	(141,995)		5,327		(479)		(145,192)		(282,339)

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)		(24,238)		(19,915)		(143)		12,829		(31,467)
Balance at April 1, 2018	$	(153,274)		(56,402)		1,113		(83,832)		(292,395)

Gains (Losses) on Derivative Instruments

At March 31, 2019, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $24,290 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2019 or forecasted to be purchased during the remainder of 2019 through 2022, intercompany expenses expected to be paid or received during 2019, television and movie production costs paid in 2019, and cash receipts for sales made at the end of the first quarter of 2019 or forecasted to be made in the remainder of 2019 and, to a lesser extent, 2020 through 2021. 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 March 31, 2019, deferred losses, net of tax of $18,963 related to these instruments remained in AOCE. For the quarters ended March 31, 2019 and April 1, 2018, losses of $450, were reclassified from AOCE to net earnings.

Of the amount included in AOCE at March 31, 2019, the Company expects net gains of approximately $16,761 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.