Other Comprehensive Earnings (Loss)

9 Months Ended

Sep. 29, 2024

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 three and nine months ended September 29, 2024 and October 1, 2023.


	Three Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities	$	0.4	$	(0.7)	$	(0.8)	$	1.6
Reclassifications to earnings (loss), tax effect:
Tax (benefit) expense on cash flow hedging activities	—		(0.9)		(0.5)		(1.4)
Amortization of unrecognized pension and postretirement amounts	—		—		—		0.1
Total tax effect on other comprehensive earnings (loss)	$	0.4	$	(1.6)	$	(1.3)	$	0.3

Changes in the components of Accumulated other comprehensive earnings (loss), net of tax for the nine months ended September 29, 2024 and October 1, 2023 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
2024
Balance at December 31, 2023	$	(4.2)	$	(16.8)	$	(0.1)	$	(180.4)	$	(201.5)
Current period other comprehensive earnings (loss)	(0.1)		1.9		—		(28.1)		(26.3)
Balance at September 29, 2024	$	(4.3)	$	(14.9)	$	(0.1)	$	(208.5)	$	(227.8)

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)

Gains (Losses) on Derivative Instruments

At September 29, 2024, the Company had remaining deferred losses on foreign currency forward contracts, net of tax, of $0.2 million in Accumulated other comprehensive earnings (loss) ("AOCE"). These instruments hedge payments related to inventory purchased in the nine months ended September 29, 2024 or forecasted to be purchased during the remainder of 2024, intercompany expenses expected to be paid or received during 2024 and cash receipts for sales made at the end of the third quarter of 2024 or forecasted to be made in the remainder of 2024. These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales expenses.

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, 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 September 29, 2024, deferred losses, net of tax of $13.5 million related to these instruments remained in AOCE. For each of the three months ended September 29, 2024 and October 1, 2023, previously deferred losses, net of tax of $0.2 million related to these instruments were reclassified from AOCE to net earnings. For the nine months ended September 29, 2024 and October 1, 2023, previously deferred losses, net of tax of $0.5 million and $0.5 million, respectively, related to these instruments were reclassified from AOCE to net earnings.

Of the net deferred losses included in AOCE at September 29, 2024, the Company expects net losses of approximately $0.4 million to be reclassified to the Consolidated Statements of Operations within the next twelve months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.

See Note 12 for additional discussion on reclassifications from AOCE to earnings.