XML 34 R12.htm IDEA: XBRL DOCUMENT v3.23.1
Other Comprehensive Earnings (Loss)
 3 Months Ended
Apr. 02, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Other Comprehensive Earnings (Loss) 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 April 2, 2023 and March 27, 2022.
Quarter Ended
April 2,
2023		March 27,
2022
Other comprehensive earnings (loss), tax effect:
Tax expense on unrealized holding gains$— $(0.1)
Tax benefit on cash flow hedging activities1.2 0.9 
Reclassifications to earnings, tax effect:
Tax expense (benefit) on cash flow hedging activities0.1 (0.2)
Total tax effect on other comprehensive earnings$1.3 $0.6 

Changes in the components of accumulated other comprehensive earnings (loss), net of tax for the quarters ended April 2, 2023 and March 27, 2022 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
2023
Balance at December 25, 2022$(3.0)(12.0)(0.1)(239.8)$(254.9)
Current period other comprehensive earnings (loss)(0.1)(6.7)— 24.3 17.5 
Balance at April 2, 2023$(3.1)(18.7)(0.1)(215.5)$(237.4)
2022
Balance at December 26, 2021$(35.1)(6.0)0.2 (194.4)$(235.3)
Current period other comprehensive earnings (loss)0.1 (1.2)0.2 (10.7)(11.6)
Balance at March 27, 2022$(35.0)(7.2)0.4 (205.1)$(246.9)
Gains (Losses) on Derivative Instruments
At April 2, 2023, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $4.0 million in accumulated other comprehensive earnings (loss) ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2023 or forecasted to be purchased during the remainder of 2023, intercompany expenses expected to be paid or received during 2023, television and movie production costs paid in 2023 or expected to be paid in 2024, and cash receipts for sales made at the end of the first quarter of 2023 or forecasted to be made in the remainder of 2023. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory, the recognition of the related production costs or the recognition of the related sales or intercompany expenses to be paid or received.
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 in 2021 (See note 7), 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 April 2, 2023, deferred losses, net of tax of $14.7 million related to these instruments remained in AOCE. For each of the quarters ended April 2, 2023 and March 27, 2022, previously deferred losses of $0.2 million related to these instruments were reclassified from AOCE to net earnings.
Of the net deferred losses included in AOCE at April 2, 2023, the Company expects net losses of approximately $4.2 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 note 11 for additional discussion on reclassifications from AOCE to earnings.