Accumulated Other Comprehensive Income (Loss) ("AOCI")

9 Months Ended

Oct. 08, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss) ("AOCI")

4. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (“AOCI”)

The company’s total comprehensive income presently consists of net income, adjustments for our derivative financial instruments accounted for as cash flow hedges, and various pension and other postretirement benefit related items.

During the twelve and forty weeks ended October 8, 2022 and October 9, 2021, reclassifications out of AOCI were as follows (amounts in thousands):

	Amount Reclassified from AOCI
	For the Twelve Weeks Ended						Affected Line Item in the Statement
Details about AOCI Components (Note 2)	October 8, 2022			October 9, 2021			Where Net Income is Presented
Derivative instruments:
Interest rate contracts	$	115		$	115		Interest expense
Commodity contracts		2,428			453		Cost of sales, Note 3
Total before tax		2,543			568		Total before tax
Tax expense		(635	)		(142	)	Income tax expense
Total net of tax		1,908			426		Net of tax
Pension and postretirement plans:
Prior-service credits (costs)		41			(12	)	Note 1
Actuarial losses		(66	)		(122	)	Note 1
Total before tax		(25	)		(134	)	Total before tax
Tax benefit		7			33		Income tax expense
Total net of tax		(18	)		(101	)	Net of tax
Total reclassifications	$	1,890		$	325		Net of tax

	Amount Reclassified from AOCI
	For the Forty Weeks Ended						Affected Line Item in the Statement
Details about AOCI Components (Note 2)	October 8, 2022			October 9, 2021			Where Net Income is Presented
Derivative instruments:
Interest rate contracts	$	383		$	11		Interest expense
Commodity contracts		5,625			1,055		Cost of sales, Note 3
Total before tax		6,008			1,066		Total before tax
Tax expense		(1,501	)		(266	)	Income tax expense
Total net of tax		4,507			800		Net of tax
Pension and postretirement plans:
Prior-service credits (costs)		137			(41	)	Note 1
Actuarial losses		(220	)		(409	)	Note 1
Total before tax		(83	)		(450	)	Total before tax
Tax benefit		22			112		Income tax expense
Total net of tax		(61	)		(338	)	Net of tax
Total reclassifications	$	4,446		$	462		Net of tax

Note 1: These items are included in the computation of net periodic pension cost and are reported in the other components of net periodic pension and postretirement benefits credit line item on the Condensed Consolidated Statements of Income. See Note 16, Postretirement Plans, of Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information.

Note 2: Amounts in parentheses indicate debits to determine net income.

Note 3: Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows.

During the forty weeks ended October 8, 2022, changes to AOCI, net of income tax, by component were as follows (amounts in thousands and parentheses denote a debit balance):

	Cash Flow Hedge Items			Defined Benefit Pension Plan Items			Total
AOCI at January 1, 2022	$	6,043		$	(3,456	)	$	2,587
Other comprehensive loss before reclassifications		2,654			—			2,654
Reclassified to earnings from AOCI		(4,507	)		61			(4,446	)
AOCI at October 8, 2022	$	4,190		$	(3,395	)	$	795

During the forty weeks ended October 9, 2021, changes to AOCI, net of income tax, by component were as follows (amounts in thousands and parentheses denote a debit balance):

	Cash Flow Hedge Items			Defined Benefit Pension Plan Items			Total
AOCI at January 2, 2021	$	13,072		$	(6,648	)	$	6,424
Other comprehensive income before reclassifications		(3,215	)		—			(3,215	)
Reclassified to earnings from AOCI		(800	)		338			(462	)
AOCI at October 9, 2021	$	9,057		$	(6,310	)	$	2,747

Amounts reclassified out of AOCI to net income that relate to commodity contracts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. The following table presents the net of tax amount reclassified from AOCI for our commodity contracts (amounts in thousands and positive value indicates credits to determine net income):

	For the Forty Weeks Ended
	October 8, 2022			October 9, 2021
Gross gain reclassified from AOCI into net    income	$	5,625		$	1,055
Tax expense		(1,406	)		(263	)
Net of tax	$	4,219		$	792