FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at March 30, 2024 and December 30, 2023 is as follows:


(Millions of Dollars)	Balance Sheet Classification	March 30, 2024		December 30, 2023		Balance Sheet Classification	March 30, 2024		December 30, 2023
Derivatives designated as hedging instruments:

Foreign Exchange Contracts Cash Flow	Other current assets	$	2.9	$	0.1	Accrued expenses	$	0.3	$	4.9



Non-derivative designated as hedging instrument:
Net Investment Hedge		$	—	$	—	Short-term borrowings	$	357.1	$	399.7
Total designated as hedging instruments		$	2.9	$	0.1		$	357.4	$	404.6
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	5.4	$	8.4	Accrued expenses	$	8.6	$	13.0
Total		$	8.3	$	8.5		$	366.0	$	417.6

Detail Pre-tax Amounts Reclassified from Accumulated Other Comprehensive Loss into Earnings

The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for the three months ended March 30, 2024 and April 1, 2023:


	Year-to-Date 2024
(Millions of Dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income		Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	—	Interest expense	$	(1.5)	$	—
Foreign Exchange Contracts	$	7.0	Cost of sales	$	1.7	$	—


	Year-to-Date 2023
(Millions of Dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income		Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	—	Interest expense	$	(1.5)	$	—
Foreign Exchange Contracts	$	(2.6)	Cost of sales	$	0.6	$	—

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows:


	Year-to-Date 2024
(Millions of Dollars)		Cost of Sales		Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded		$	2,761.0	$	131.5
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items		$	(1.7)	$	—
Gain (loss) reclassified from OCI into Income		$	1.7	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1		$	—	$	(1.5)


	Year-to-Date 2023
(Millions of Dollars)		Cost of Sales		Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded		$	3,096.3	$	130.9
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items		$	(0.6)	$	—
Gain (loss) reclassified from OCI into Income		$	0.6	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1		$	—	$	(1.5)

1 Inclusive of the gain/loss amortization on terminated derivative financial instruments.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows:


(Millions of Dollars)	Year-to-Date 2024 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded	$	131.5
Amortization of gain on terminated swaps	$	(0.1)


(Millions of Dollars)	Year-to-Date 2023 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded	$	130.9
Amortization of gain on terminated swaps	$	(0.1)

A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of March 30, 2024 and December 30, 2023 is as follows:


	March 30, 2024
(Millions of Dollars)	Carrying Amount of Hedged Liability (1)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability

Current Maturities of Long-Term Debt	$	500.0	Terminated Swaps	$	—
Long-Term Debt	$	532.5	Terminated Swaps	$	(19.6)


	December 30, 2023
(Millions of Dollars)	Carrying Amount of Hedged Liability (1)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt	$	1.1	Terminated Swaps	$	—

Long-Term Debt	$	532.6	Terminated Swaps	$	(19.7)

(1) Represents hedged items no longer designated in qualifying fair value hedging relationships.

Schedule of Derivatives Pre-tax Gain or Loss from Fair Value Change

The pre-tax gain or loss from fair value changes for the three months ended March 30, 2024 and April 1, 2023 is as follows:


	Year-to-Date 2024
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI		Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	(0.2)	$	—	Other, net	$	—	$	—

Non-derivative designated as Net Investment Hedge	$	8.8	$	—	Other, net	$	—	$	—


	Year-to-Date 2023
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI		Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	0.2	$	—	Other, net	$	—	$	—
Cross Currency Swap	$	(0.1)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	(12.6)	$	—	Other, net	$	—	$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The loss recorded in the Consolidated Statements of Operations and Comprehensive Loss from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three months ended March 30, 2024 and April 1, 2023 is as follows:


(Millions of Dollars)	Income Statement Classification	Year-to-Date 2024		Year-to-Date 2023
Foreign Exchange Contracts	Other, net	$	(13.9)	$	(1.0)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details