In September 2021, to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated purchase price for HRA Pharma, we entered into two non-designated currency option contracts with a total notional amount of $1.1 billion that were scheduled to mature in September 2022. In April 2022, due to market conditions, we unwound the two options and entered into two new undesignated options to economically hedge the purchase price for HRA Pharma for a total notional amount of $2.0 billion. All premiums associated with the HRA Pharma related currency options were settled in April 2022 for $37.1 million, and within Other (income) expense we recorded no loss and $16.2 million for the three and nine months ended October 1, 2022, respectively.

Interest rate swap agreements are contracts to exchange fixed or floating rates over the life of the agreement without the exchange of the underlying notional amounts. The notional amounts of the interest rate swap agreements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense.

In April 2022, to economically hedge the interest rate risk of the New Senior Secured Credit Facilities (as defined in Note 11), we entered into five variable-to-fixed interest rate swap agreements. Three of the interest rate swaps were designated as cash flow hedges to fix the interest rate on a substantial portion of the 2022 Term Loan B Facility (as defined in Note 11). The interest rate swaps cover an interest period ranging from June 1, 2022, through April 1, 2029, on notional balances that decline from $1.0 billion to $812.5 million over the term. The other two interest rate swaps were designated as cash flow hedges to fix the interest rate on a substantial portion of the 2022 Term Loan A Facility (as defined in Note 11). The interest rate swaps cover an interest period ranging from June 1, 2022, through April 1, 2027, on notional balances that decline from $487.5 million to $387.5 million over the term.

As a designated cash flow hedge, gains and losses will be deferred in Accumulated Other Comprehensive Income (“AOCI”) and recognized within Interest expense, net when interest is paid on the New Senior Secured Credit Facilities.

In April 2022, we entered into three fixed-for-fixed cross currency interest rate swaps designated as net investment hedge to hedge the EUR currency exposure of our investment in European operations. Over the term, we made EUR interest payments and received USD interest payments followed by an exchange of notional currencies at the expiration of the contract. The following are the terms and notional amounts outstanding:

After the end of the quarter, on October 25, 2022, we cash settled three fixed-for-fixed cross currency interest rate swaps designated as net investment hedges on our investment in European operations for $98.8 million in proceeds. On the same day, we replaced the terminated instruments with three new fixed-for-fixed cross currency interest rate swaps at market rates and designated the instruments as net investment hedges on our investment in European operations. The following are the terms and notional amounts outstanding:

As a designated net investment hedge, gains and losses related to the EUR spot exchange rate will be deferred within the Cumulative Translation Adjustment, a component of AOCI, and recognized in the Statement of Operations when the hedged EUR net investment is substantially liquidated. Gains and losses on excluded components (e.g. interest differentials) will be recorded in Interest expense, net on a systematic and rational basis.

In August 2019, we entered into a cross-currency swap designated as a net investment hedge to hedge the EUR currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate EUR payments for floating-rate USD payments through August 15, 2022. We terminated this cross-currency swap on January 28, 2022.


	Notional Amount
	October 1, 2022		December 31, 2021
British Pound (GBP)	$	187.7	$	135.8
Swedish Krona (SEK)	53.2		47.8
Danish Krone (DKK)	43.1		37.5
European Euro (EUR)	35.8		232.6
Chinese Yuan (CNH)	34.1		37.7
Canadian Dollar (CAD)	34.1		29.0
Polish Zloty (PLZ)	17.5		21.0

United States Dollar (USD)	14.3		22.9
Mexican Peso (MXN)	12.9		1.0
Norwegian Krone (NOK)	10.6		11.0
Brazilian Real (BRL)	3.6		—

Turkish Lira (TRY)	3.0		3.1
Romanian New Leu (RON)	2.7		1.6
Australian Dollar (AUD)	2.3		1.6
Switzerland Franc (CHF)	0.9		1.9
Other	8.2		3.6


Total	$	464.0	$	588.1


		Asset Derivatives
		Fair Value
	Balance Sheet Location	October 1, 2022		December 31, 2021
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	7.5	$	3.5
Interest rate swap agreements	Prepaid expenses and other current assets	7.1		—
Foreign currency forward contracts	Other non-current assets	0.4		1.3

Cross-currency swap	Other non-current assets	129.2		—
Interest rate swap agreements	Other non-current assets	52.0		—
Total designated derivatives		$	196.2	$	4.8
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1.7	$	0.9
Foreign currency options	Prepaid expenses and other current assets	—		5.0
Total non-designated derivatives		$	1.7	$	5.9


		Liability Derivatives
		Fair Value
	Balance Sheet Location	October 1, 2022		December 31, 2021
Designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	1.2	$	1.2
Cross-currency swap	Other accrued liabilities	—		13.8

Total designated derivatives		$	1.2	$	15.0
Non-designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	3.4	$	1.2


	Three Months Ended
	October 1, 2022
Instrument	Amount of Gain/(Loss) Recorded in OCI(1)		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings		Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing


Cash flow hedges:
Interest rate swap agreements	$	65.4	Interest expense, net	$	0.5	Interest expense, net	$	—
Foreign currency forward contracts	1.6		Net sales	0.4		Net sales	(0.2)
			Cost of sales	(1.7)		Cost of sales	(0.1)
						Other (income) expense, net	(1.0)
	$	67.0		$	(0.8)		$	(1.3)
Net investment hedges:
Cross-currency swap	$	90.5				Interest expense, net	$	(6.7)


	Nine Months Ended
	October 1, 2022
Instrument	Amount of Gain/(Loss) Recorded in OCI(1)		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings		Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:


Interest rate swap agreements	59.2		Interest expense, net	(1.4)		Interest expense, net	—
Foreign currency forward contracts	(3.3)		Net sales	0.9		Net sales	(0.3)
			Cost of sales	(2.9)		Cost of sales	(0.1)
						Other (income) expense, net	(1.7)
	$	55.9		$	(3.5)		$	(2.1)
Net investment hedges:
Cross-currency swap	$	124.7				Interest expense, net	$	(10.9)


	Three Months Ended
	October 2, 2021
Instrument	Amount of Gain/(Loss) Recorded in OCI		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings		Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:


Interest rate swap agreements	$	—	Interest expense, net	$	(0.4)	Interest expense, net	$	—
Foreign currency forward contracts	2.4		Net sales	(0.4)		Net sales	—
			Cost of sales	(0.5)		Cost of sales	—
						Other (income) expense, net	0.2
	$	2.4		$	(1.3)		$	0.2
Net investment hedges:
Cross-currency swap	$	(28.4)				Interest expense, net	$	(0.9)


	Nine Months Ended
	October 2, 2021
Instrument	Amount of Gain/(Loss) Recorded in OCI		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings		Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:


Interest rate swap agreements	—		Interest expense, net	(1.3)		Interest expense, net	—
Foreign currency forward contracts	2.0		Net sales	(2.3)		Net sales	—
			Cost of sales	1.4		Cost of sales	0.4
						Other Income/Expense	$	0.6
	$	2.0		$	(2.3)		$	1.0
Net investment hedges:
Cross-currency swap	$	(30.5)				Interest expense, net	$	(2.9)


		Three Months Ended				Nine Months Ended
Non-Designated Derivatives	Income Statement Location	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Foreign currency forward contracts	Other (income) expense, net	$	(2.9)	$	0.1	$	(0.9)	$	(6.1)
	Interest expense, net	0.1		0.2		(0.2)		1.2
		$	(2.8)	$	0.3	$	(1.1)	$	(4.9)

Foreign currency options	Other (income) expense, net	$	—	$	12.6	$	16.2	$	12.6


	Three Months Ended
	October 1, 2022
	Net Sales		Cost of Sales		Interest Expense, net		Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	1,100.2	$	737.3	$	41.0	$	(4.0)

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.4	$	(1.7)	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.2)	$	(0.1)	$	—	$	(1.0)





Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—	$	0.5	$	—


	Nine Months Ended
	October 1, 2022
	Net Sales		Cost of Sales		Interest Expense, net		Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	3,296.3	$	2,223.5	$	115.1	$	48.7

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.9	$	(2.9)	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.3)	$	(0.1)	$	—	$	(1.7)

Treasury locks
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—	$	(0.1)	$	—


Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—	$	(1.4)	$	—


	Three Months Ended
	October 2, 2021
	Net Sales		Cost of Sales		Interest Expense, net		Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	1,042.7	$	706.3	$	30.9	$	18.5

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	(0.4)	$	(0.5)	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	—	$	—	$	—	$	0.2





Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—	$	(0.4)	$	—