XML 30 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Instruments and Hedging
 3 Months Ended
Apr. 01, 2017
Derivative Instruments and Hedging
11. Derivative Instruments and Hedging

As of April 1, 2017 and December 31, 2016, the Company had in effect an interest rate swap with a notional amount totaling $1,500,000.

On July 26, 2013, in order to hedge a portion of its variable rate debt, the Company entered into a forward-starting interest rate swap with an effective date of March 31, 2014 and a termination date of April 2, 2020. The initial notional amount of this swap was $1,500,000. During the term of this swap, the notional amount decreases from $1,500,000 effective March 31, 2014 to $1,250,000 on April 3, 2017, with a further reduction to $1,000,000 to occur on April 1, 2019. This interest rate swap effectively fixes the variable interest rate on the notional amount of this swap at 2.38%. This swap qualifies for hedge accounting and, therefore, changes in the fair value of this swap have been recorded in accumulated other comprehensive loss.

As of April 1, 2017 and December 31, 2016, cumulative unrealized losses for qualifying hedges were reported as a component of accumulated other comprehensive loss in the amounts of $12,640 ($20,719 before taxes) and $16,002 ($26,232 before taxes), respectively.

The Company is hedging forecasted transactions for periods not exceeding the next four years. The Company expects approximately $6,236 ($10,223 before taxes) of derivative losses included in accumulated other comprehensive loss at April 1, 2017, based on current market rates, will be reclassified into earnings within the next 12 months.