Other Comprehensive Earnings (Loss)

12 Months Ended

Dec. 27, 2020

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 each of the three fiscal years ended December 27, 2020.


	2020		2019		2018
Other comprehensive earnings (loss), tax effect:
Tax (expense) benefit on unrealized holding (losses) gains	$	(185)	$	(150)	581
Tax (expense) benefit on cash flow hedging activities	(3,433)		223		(930)
Tax benefit on foreign currency translation amounts	2,059		—		—
Tax benefit (expense) on changes in unrecognized pension amounts	2,559		(3,518)		6,085
Reclassifications to earnings, tax effect:
Tax expense on cash flow hedging activities	4,332		2,269		817
Tax benefit on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations	(780)		(2,005)		(2,729)
Tax benefit on settlement of U.S. defined benefit plan	—		(24,966)		—
Total tax effect on other comprehensive earnings (loss)	$	4,552	(28,147)		3,824

Changes in the components of accumulated other comprehensive earnings (loss), net of tax for each of the three fiscal years ended December 27, 2020 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 Earnings (Loss)
2020
Balance at December 29, 2019	$	(36,129)	(5,232)	(230)	(142,629)	(184,220)
Current period other comprehensive earnings (loss)	(6,609)		2,380	640	10,087	6,498
Reclassifications from AOCE to earnings	2,021		(19,252)	—	—	(17,231)
Balance at December 27, 2020	$	(40,717)	(22,104)	410	(132,542)	(194,953)
2019
Balance at December 30, 2018	$	(143,134)	1,549	(744)	(152,185)	(294,514)

Current period other comprehensive earnings (loss)	14,850		11,678	514	9,556	36,598
Reclassifications from AOCE to earnings	92,155		(18,459)	—	—	73,696
Balance at December 29, 2019	$	(36,129)	(5,232)	(230)	(142,629)	(184,220)
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)	(23,763)		36,107	(2,000)	(55,524)	(45,180)
Reclassifications from AOCE to earnings	9,665		1,929	—	—	11,594
Balance at December 30, 2018	$	(143,134)	1,549	(744)	(152,185)	(294,514)

Gains (Losses) on Derivative Instruments

At December 27, 2020, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $5,581 in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2020 or forecasted to be purchased from 2021 through 2022, intercompany expenses expected to be paid or received during 2021, television and movie production costs paid in 2020 or expected to be paid in 2021, and cash receipts for sales made at the end of the fourth quarter of 2020 or forecasted to be made in 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 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 December 27, 2020, deferred losses, net of tax, of $16,523 related to these instruments remained in AOCE. For the year ended December 27, 2020, losses, net of tax of $1,394 related to these hedging instruments were reclassified from AOCE to net earnings. For each of the years ended December 29, 2019 and December 30, 2018, losses, net of tax of $1,394, related to these hedging instruments were reclassified from AOCE to net earnings.

Of the net deferred losses included in AOCE at December 27, 2020, the Company expects approximately $7,502 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.

See notes 16 and 18 for additional discussion on reclassifications from AOCE to earnings.