Other Comprehensive Earnings (Loss)

12 Months Ended

Dec. 26, 2021

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 each of the three fiscal years ended December 26, 2021.


(In millions)	2021		2020		2019
Other comprehensive earnings (loss), tax effect:
Tax (expense) on unrealized holding (losses) gains	$	—	$	(0.2)	(0.2)
Tax (expense) benefit on cash flow hedging activities	(1.0)		(3.4)		0.2
Tax benefit on foreign currency translation amounts	(7.2)		2.1		—
Tax (expense) benefit on changes in unrecognized pension amounts	(1.5)		2.6		(3.5)
Reclassifications to earnings, tax effect:
Tax (benefit) expense on cash flow hedging activities	(0.5)		4.3		2.3
Tax benefit on amortization of unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations	(0.6)		(0.8)		(2.0)
Tax benefit on settlement of U.S. defined benefit plan	—		—		(24.9)
Total tax effect on other comprehensive earnings (loss)	$	(10.8)	4.6		(28.1)

Changes in the components of accumulated other comprehensive earnings (loss), net of tax for each of the three fiscal years ended December 26, 2021 are as follows:


(In millions)	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)
2021
Balance at December 27, 2020	$	(40.7)	(22.1)	0.3	(132.5)	(195.0)
Current period other comprehensive earnings (loss)	3.4		13.5	(0.1)	(61.9)	(45.1)
Reclassifications from AOCE to earnings	2.2		2.6	—	—	4.8
Balance at December 26, 2021	$	(35.1)	(6.0)	0.2	(194.4)	(235.3)
2020
Balance at December 29, 2019	$	(36.1)	(5.2)	(0.3)	(142.6)	(184.2)

Current period other comprehensive earnings (loss)	(6.6)		2.4	0.5	10.1	6.4
Reclassifications from AOCE to earnings	2.0		(19.3)	—	—	(17.2)
Balance at December 27, 2020	$	(40.7)	(22.1)	0.3	(132.5)	(195.0)
2019
Balance at December 30, 2018	$	(143.1)	1.5	(0.9)	(152.2)	(294.7)
Current period other comprehensive earnings (loss)	14.8		11.7	0.6	9.6	36.7
Reclassifications from AOCE to earnings	92.2		(18.4)	—	—	73.8
Balance at December 29, 2019	$	(36.1)	(5.2)	(0.3)	(142.6)	(184.2)

Gains (Losses) on Derivative Instruments

At December 26, 2021, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $9.6 million in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2021 or forecasted to be purchased in 2022, intercompany expenses expected to be paid or received during 2022, television and movie production costs paid in 2021 or expected to be paid in 2022 or 2023, and cash receipts for sales made at the end of the fourth quarter of 2021 or forecasted to be made in 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 3.15% Notes, that were repaid in full in the aggregate principal amount of $300.0 million during the first quarter of 2021 (See note 11), and the 5.10% Notes due 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 26, 2021, deferred losses, net of tax, of $15.6 million related to these instruments remained in AOCE. For the year ended December 26, 2021, losses, net of tax of $1.0 million related to these hedging instruments were reclassified from AOCE to net earnings. For each of the years ended December 27, 2020 and December 29, 2019, losses, net of tax of $1.4 million, related to these hedging instruments were reclassified from AOCE to net earnings.

Of the net deferred gains included in AOCE at December 26, 2021, the Company expects net gains of approximately $8.0 million 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.