Other Comprehensive Earnings (Loss)

9 Months Ended

Sep. 27, 2020

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

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 and nine months ended September 27, 2020 and September 29, 2019.


	Quarter Ended			Nine Months Ended
	September 27, 2020		September 29, 2019	September 27, 2020		September 29, 2019

Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on unrealized holding gains (losses)	$	235	46	$	(381)	(116)
Tax benefit (expense) on cash flow hedging activities	285		(570)	(5,474)		(524)
Tax benefit on foreign currency translation adjustments	—		—	8,406		—
Tax expense on changes in unrecognized pension amounts	—		—	—		(5,687)
Reclassifications to earnings, tax effect:
Tax expense on cash flow hedging activities	1,928		703	3,379		1,237

Amortization of unrecognized pension and postretirement amounts	(80)		(80)	(239)		(1,619)
Tax benefit on settlement of U.S defined benefit plan	—		—	—		(24,925)
Total tax effect on other comprehensive earnings (loss)	$	2,368	99	$	5,691	(31,634)

Changes in the components of accumulated other comprehensive earnings (loss) for the nine months ended September 27, 2020 and September 29, 2019 are as follows:


	Pension and Postretirement Amounts		Gains (Losses) on Derivative Instruments	Unrealized Holding Gains (Losses) on Available- for-Sale Securities	Foreign Currency Translation Adjustments	Total Accumulated Other Comprehensive Loss
2020
Balance at December 29, 2019	$	(36,129)	(5,232)	(230)	(142,629)	(184,220)
Current period other comprehensive earnings (loss)	824		(105)	1,315	(98,144)	(96,110)
Balance at September 27, 2020	$	(35,305)	(5,337)	1,085	(240,773)	(280,330)

2019
Balance at December 30, 2018	$	(143,134)	1,549	(744)	(152,185)	(294,514)

Current period other comprehensive earnings (loss)	111,019		3,839	400	(6,120)	109,138
Balance at September 29, 2019	$	(32,115)	5,388	(344)	(158,305)	(185,376)

Gains (Losses) on Derivative Instruments

At September 27, 2020, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $11,534 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2020 or forecasted to be purchased during the remainder of 2020 through 2022, intercompany expenses expected to be paid or received during 2020, television and movie production costs paid in 2020, and cash receipts for sales made at the end of the third quarter of 2020 or forecasted to be made in the remainder of 2020 and, to a lesser extent, 2021 through 2022. 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 September 27, 2020, deferred losses, net of tax of $16,871 related to these instruments remained in AOCE. For the quarters ended September 27, 2020 and September 29, 2019, previously deferred losses of $450, were reclassified from AOCE to net earnings. For the nine-month periods ended September 27, 2020 and September 29, 2019, previously deferred losses of $1,349 were reclassified from AOCE to net earnings.

Of the amount included in AOCE at September 27, 2020, the Company expects net gains of approximately $8,143 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.