Other Comprehensive Earnings (Loss)

9 Months Ended

Oct. 01, 2023

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 October 1, 2023 and September 25, 2022.


	Quarter Ended				Nine Months Ended
	October 1, 2023		September 25, 2022		October 1, 2023		September 25, 2022

Other comprehensive earnings (loss), tax effect:
Tax expense on unrealized holding losses	$	—	$	—	$	—	0.1
Tax (expense) benefit on cash flow hedging activities	(0.7)		(1.7)		1.6		(2.1)


Reclassifications to earnings, tax effect:
Tax (benefit) expense on cash flow hedging activities	(0.9)		0.6		(1.4)		0.5

Amortization of unrecognized pension and postretirement amounts	—		—		0.1		(0.1)

Total tax effect on other comprehensive earnings (loss)	$	(1.6)	$	(1.1)	$	0.3	(1.6)

Changes in the components of accumulated other comprehensive earnings (loss), net of tax for the nine months ended October 1, 2023 and September 25, 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)	(0.2)		0.3	—	46.4	46.5
Balance at October 1, 2023	$	(3.2)	(11.7)	(0.1)	(193.4)	$	(208.4)

2022
Balance at December 26, 2021	$	(35.1)	(6.0)	0.2	(194.4)	$	(235.3)

Current period other comprehensive earnings (loss)	0.3		13.4	(0.3)	(103.0)	(89.6)
Balance at September 25, 2022	$	(34.8)	7.4	(0.1)	(297.4)	$	(324.9)

Gains (Losses) on Derivative Instruments

At October 1, 2023, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $2.7 million in accumulated other comprehensive earnings (loss) ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2023 or forecasted to be purchased during the remainder of 2023 and throughout 2024, 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 third quarter of 2023 or forecasted to be made in the remainder of 2023 and throughout 2024. 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 October 1, 2023, deferred losses, net of tax of $14.4 million related to these instruments remained in AOCE. For the quarters ended October 1, 2023 and September 25, 2022, previously deferred losses of $0.2 million related to these instruments were reclassified from AOCE to net earnings. For the nine months ended October 1, 2023 and September 25, 2022, previously deferred losses of $0.5 million were reclassified from AOCE to net earnings, respectively.

Of the net deferred losses included in AOCE at October 1, 2023, the Company expects net losses of approximately $0.4 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.