Note 12 – Comprehensive Income
Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets includes prior service costs and credits and net actuarial gains and losses for defined benefit plans; foreign currency cumulative translation adjustments; unrealized derivative gains and losses; and unrealized investment gains and losses, all net of tax. Changes in the components of Accumulated other comprehensive loss for the three months ended March 29, 2014 and March 30, 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions) |
March 29,
2014 |
|
March 30,
2013 |
Net earnings |
$ |
57.0 |
|
|
$ |
49.8 |
|
Other comprehensive income (loss): |
|
|
|
|
|
Foreign currency cumulative translation adjustment |
(1.6 |
) |
|
(7.0 |
) |
Net change in unamortized prior service credits |
(0.3 |
) |
|
(1.7 |
) |
Net change in unamortized actuarial losses |
2.5 |
|
|
5.9 |
|
Net change in unrealized derivative losses |
0.9 |
|
|
(0.3 |
) |
Total other comprehensive income (loss) |
1.5 |
|
|
(3.1 |
) |
Comprehensive income |
$ |
58.5 |
|
|
$ |
46.7 |
|
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended March 29, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Actuarial losses |
|
Derivative losses |
|
Total |
Beginning balance |
$ |
11.0 |
|
|
$ |
(2.6 |
) |
|
$ |
(398.6 |
) |
|
$ |
(11.3 |
) |
|
$ |
(401.5 |
) |
Other comprehensive income (loss) before reclassifications |
(1.6 |
) |
|
— |
|
|
0.2 |
|
|
(0.7 |
) |
|
(2.1 |
) |
Amounts reclassified from Accumulated other comprehensive loss |
— |
|
|
(0.3 |
) |
|
2.3 |
|
|
1.6 |
|
|
3.6 |
|
Net current-period other comprehensive income (loss) |
(1.6 |
) |
|
(0.3 |
) |
|
2.5 |
|
|
0.9 |
|
|
1.5 |
|
Ending balance |
$ |
9.4 |
|
|
$ |
(2.9 |
) |
|
$ |
(396.1 |
) |
|
$ |
(10.4 |
) |
|
$ |
(400.0 |
) |
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended March 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Actuarial losses |
|
Derivatives losses |
|
Total |
Beginning balance |
$ |
18.4 |
|
|
$ |
4.4 |
|
|
$ |
(567.2 |
) |
|
$ |
(10.7 |
) |
|
$ |
(555.1 |
) |
Other comprehensive income (loss) before reclassifications |
(7.0 |
) |
|
— |
|
|
0.2 |
|
|
(1.6 |
) |
|
(8.4 |
) |
Amounts reclassified from Accumulated other comprehensive loss |
— |
|
|
(1.7 |
) |
|
5.7 |
|
|
1.3 |
|
|
5.3 |
|
Net current-period other comprehensive income (loss) |
(7.0 |
) |
|
(1.7 |
) |
|
5.9 |
|
|
(0.3 |
) |
|
(3.1 |
) |
Ending balance |
$ |
11.4 |
|
|
$ |
2.7 |
|
|
$ |
(561.3 |
) |
|
$ |
(11.0 |
) |
|
$ |
(558.2 |
) |
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three months ended March 29, 2014:
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
Details about Accumulated other comprehensive income (loss) components |
|
Amount reclassified from Accumulated other comprehensive income (loss) |
|
Affected line item in the statement where net income is presented |
Amortization of defined benefit items: |
|
|
|
|
Prior service credits |
|
$ |
0.5 |
|
|
(A) |
Net actuarial losses |
|
(3.7 |
) |
|
(A) |
|
|
(3.2 |
) |
|
Total before tax |
|
|
1.2 |
|
|
Tax benefit |
|
|
$ |
(2.0 |
) |
|
Net of tax |
|
|
|
|
|
Amount of loss reclassified into earnings on derivative contracts: |
|
|
|
|
Foreign exchange contracts |
|
$ |
(0.4 |
) |
|
Cost of sales |
Commodity contracts |
|
(2.2 |
) |
|
Cost of sales |
|
|
(2.6 |
) |
|
Total before tax |
|
|
1.0 |
|
|
Tax benefit |
|
|
$ |
(1.6 |
) |
|
Net of tax |
(A) These Accumulated other comprehensive income (loss) components are included in the computation of net pension and other benefit costs. See Note 15 – Pension and Other Postretirement Benefits for additional details.
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three months ended March 30, 2013:
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
Details about Accumulated other comprehensive income (loss) components |
|
Amount reclassified from Accumulated other comprehensive income (loss) |
|
Affected line item in the statement where net income is presented |
Amortization of defined benefit items: |
|
|
|
|
Prior service credits |
|
$ |
1.7 |
|
|
(A) |
Net actuarial losses |
|
(5.7 |
) |
|
(A) |
|
|
(4.0 |
) |
|
Total before tax |
|
|
— |
|
|
Tax benefit (B)
|
|
|
$ |
(4.0 |
) |
|
Net of tax |
|
|
|
|
|
Amount of gain (loss) reclassified into earnings on derivative contracts: |
|
|
|
|
Interest rate contracts |
|
$ |
0.3 |
|
|
Interest expense |
Foreign exchange contracts |
|
(1.3 |
) |
|
Cost of sales |
Commodity contracts |
|
(0.4 |
) |
|
Cost of sales |
|
|
(1.4 |
) |
|
Total before tax |
|
|
0.1 |
|
|
Tax benefit (B)
|
|
|
$ |
(1.3 |
) |
|
Net of tax |
(A) These Accumulated other comprehensive income (loss) components are included in the computation of net pension and other benefit costs. See Note 15 – Pension and Other Postretirement Benefits for additional details.
(B) Pre-tax and after-tax amounts are substantially the same as the Company maintained a tax valuation allowance for these items until its reversal at December 31, 2013. See Note 14 – Income Taxes for additional details.
|