Other Comprehensive Earnings

12 Months Ended

Dec. 25, 2016

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 25, 2016.

		2016		2015		2014
Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities		$	1,340		(11,190)		8,259
Tax (expense) benefit on unrealized holding gains			(94)		364		(1,077)
Tax benefit (expense) on unrecognized pension and postretirement
amounts			12,945		(928)		23,869
Reclassifications to earnings, tax effect:
	Tax (benefit) expense on cash flow hedging activities		4,098		5,435		(2,488)
	Tax (benefit) expense on unrecognized pension and postretirement
amounts reclassified to the consolidated statements of operations			(3,038)		(1,861)		(1,327)
Total tax effect on other comprehensive earnings (loss)		$	15,251		(8,180)		27,236

In 2016, 2015 and 2014, net gains on cash flow hedging activities reclassified to earnings, net of tax, included gains of $1,428, $1,111 and $58, respectively, as a result of hedge ineffectiveness.

	Changes in the components of accumulated other comprehensive earnings (loss), net of tax are as follows:
						Unrealized
				Gains		Holding Gains		Foreign		Total Accumulated
		Pension and		(Losses) on		on Available		Currency		Other
		Postretirement		Derivative		for-Sale		Translation		Comprehensive
		Amounts		Instruments		Securities		Adjustments		Earnings(Loss)
2016
Balance at December 27, 2015		$	(102,931)		79,317		1,258		(123,645)		(146,001)
Current period other comprehensive			(20,829)		25,748		166		(5,033)		52
	earnings (loss)
Reclassifications from AOCE to earnings			5,359		(53,980)		—		—		(48,621)
Balance at December 25, 2016		$	(118,401)		51,085		1,424		(128,678)		(194,570)
2015
Balance at December 28, 2014		$	(113,092)		43,689		1,900		(27,951)		(95,454)
Current period other comprehensive			6,892		86,155		(642)		(95,694)		(3,289)
	earnings (loss)
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			(51,206)		47,600		1,900		(65,970)		(67,676)
	earnings (loss)
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)

At December 25, 2016, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $69,301 in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2016 or forecasted to be purchased from 2017 through 2021, intercompany expenses expected to be paid or received during 2017, 2018 and 2019 and cash receipts for sales made at the end of 2016 or forecasted to be made in 2017. 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 25, 2016, deferred losses, net of tax, of $18,216 related to these instruments remained in AOCE. For each of the years ended December 25, 2016 and December 27, 2015, losses, net of tax of $1,148 related to these hedging instruments were reclassified from AOCE to net earnings. 

Of the net deferred gains included in AOCE at December 25, 2016, the Company expects approximately $24,476 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.