Other Comprehensive Earnings

12 Months Ended

Dec. 27, 2015

Other comprehensive earnings (loss) [Abstract]

Other Comprehensive Earnings (Loss)

(2)Other Comprehensive Earnings (Loss)

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 the three years ended December 27, 2015.

	2015	2014	2013
Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities	$(11,190)	8,259	(511)
Tax benefit (expense) on unrealized holding gains	364	(1,077)	-
Tax benefit (expense) on unrecognized pension and postretirement amounts	(928)	23,869	(25,193)
Reclassifications to earnings, tax effect:
Tax (benefit) expense on cash flow hedging activities	5,435	(2,488)	946
Tax (benefit) expense on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations	(1,861)	(1,327)	(4,275)
Total tax effect on other comprehensive earnings (loss)	$   (8,180)	27,236	(29,033)

In 2015, 2014 and 2013, net gains on cash flow hedging activities reclassified to earnings, net of tax, included gains of $1,111, $58 and $168, respectively, as a result of hedge ineffectiveness.

Changes in the components of accumulated other comprehensive earnings (loss), net of tax are as follows:

	Pension and Postretirement Amounts		Gains (Losses) on Derivative Instruments	Unrealized Holding Gains on Available-for-Sale Securities	Foreign Currency Translation Adjustments	Total Accumulated Other Comprehensive Earnings (Loss)
2015
Balance at December 28, 2014	$	(113,092)	43,689	1,900	(27,951)	(95,454)
Current period other comprehensive earnings (loss)		6,892	86,155	(642)	(95,694)	(3,289)
Reclassifications from AOCE to earnings		3,269	(50,527)	-	-	(47,258)
Balance at December 27, 2015	$	(102,931)	79,317	1,258	(123,645)	(146,001)
2014
Balance at December 29, 2013	$	(64,841)	(7,313)	-	38,019	(34,135)
Current period other comprehensive earnings (loss)		(51,206)	47,600	1,900	(65,970)	(67,676)
Reclassifications from AOCE to earnings		2,955	3,402	-	-	6,357
Balance at December 28, 2014	$	(113,092)	43,689	1,900	(27,951)	(95,454)
2013
Balance at December 30, 2012	$	(120,422)	(1,008)	-	49,123	(72,307)
Current period other comprehensive earnings (loss)		47,081	(3,075)	-	(11,104)	32,902
Reclassifications from AOCE to earnings		8,500	(3,230)	-	-	5,270
Balance at December 29, 2013	$	(64,841)	(7,313)	-	38,019	(34,135)

At December 27, 2015, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $98,680 in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2015 or forecasted to be purchased from 2016 through 2020, intercompany expenses expected to be paid or received during 2016 and 2017 and cash receipts for sales made at the end of 2015 or forecasted to be made in 2016. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition of the related sales, royalties 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 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, 2015, deferred losses, net of tax, of $19,363 related to these instruments remained in AOCE. For the years ended December 27, 2015 and December 28, 2014, losses, net of tax of $1,148 and $1,156, respectively, were reclassified from AOCE to net earnings. 

Of the net deferred gains included in AOCE at December 27, 2015, the Company expects approximately $63,181 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 14 and 16 for additional discussion on reclassifications from AOCE to earnings.