v3.22.2.2
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Oct. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Currency Forward Contracts
Foreign currency forward contracts were as follows (in millions):
Notional Amount
October 1, 2022December 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 
Other8.2 3.6 
Total$464.0 $588.1 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The balance sheet location and gross fair value of our derivative instruments were as follows (in millions):
Asset Derivatives
Fair Value
Balance Sheet LocationOctober 1, 2022December 31, 2021
Designated derivatives:
Foreign currency forward contractsPrepaid expenses and other current assets$7.5 $3.5 
Interest rate swap agreementsPrepaid expenses and other current assets7.1 — 
Foreign currency forward contractsOther non-current assets0.4 1.3 
Cross-currency swapOther non-current assets129.2 — 
Interest rate swap agreementsOther non-current assets52.0 — 
Total designated derivatives$196.2 $4.8 
Non-designated derivatives:
Foreign currency forward contractsPrepaid expenses and other current assets$1.7 $0.9 
Foreign currency optionsPrepaid expenses and other current assets— 5.0 
Total non-designated derivatives$1.7 $5.9 

Liability Derivatives
Fair Value
Balance Sheet LocationOctober 1, 2022December 31, 2021
Designated derivatives:
Foreign currency forward contractsOther accrued liabilities$1.2 $1.2 
Cross-currency swapOther accrued liabilities— 13.8 
Total designated derivatives$1.2 $15.0 
Non-designated derivatives:
Foreign currency forward contractsOther accrued liabilities$3.4 $1.2 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) The following tables summarize the effect of derivative instruments designated as hedging instruments in AOCI (in millions):
Three Months Ended
October 1, 2022
Instrument
Amount of Gain/(Loss) Recorded in OCI(1)
Classification of Gain/(Loss) Reclassified from AOCI into EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount 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 contracts1.6 Net sales0.4 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 EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements59.2 Interest expense, net(1.4)Interest expense, net— 
Foreign currency forward contracts(3.3)Net sales0.9 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)
(1) Net gain of $9.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months.
Three Months Ended
October 2, 2021
InstrumentAmount of Gain/(Loss) Recorded in OCIClassification of Gain/(Loss) Reclassified from AOCI into EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements$— Interest expense, net$(0.4)Interest expense, net$— 
Foreign currency forward contracts2.4 Net sales(0.4)Net sales— 
Cost of sales(0.5)Cost of sales— 
Other (income) expense, net0.2 
$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
InstrumentAmount of Gain/(Loss) Recorded in OCIClassification of Gain/(Loss) Reclassified from AOCI into EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount 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 contracts2.0 Net sales(2.3)Net sales— 
Cost of sales1.4 Cost of sales0.4 
Other Income/Expense$0.6 
$2.0 $(2.3)$1.0 
Net investment hedges:
Cross-currency swap$(30.5)Interest expense, net$(2.9)
Amount of Gain/(Loss) Recognized against Earnings
The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Condensed Consolidated Statements of Operations were as follows (in millions):

Three Months EndedNine Months Ended
Non-Designated DerivativesIncome Statement
Location		October 1,
2022		October 2,
2021		October 1,
2022		October 2,
2021
Foreign currency forward contractsOther (income) expense, net$(2.9)$0.1 $(0.9)$(6.1)
Interest expense, net0.1 0.2 (0.2)1.2 
$(2.8)$0.3 $(1.1)$(4.9)
Foreign currency optionsOther (income) expense, net$— $12.6 $16.2 $12.6 
Classification of Gain (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships
The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions):

Three Months Ended
October 1, 2022
Net SalesCost of SalesInterest Expense, netOther (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 SalesCost of SalesInterest Expense, netOther (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 SalesCost of SalesInterest Expense, netOther (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)$(0.5)$— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$— $— $— $0.2 
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings$— $— $(0.4)$— 
Nine Months Ended
October 2, 2021
Net SalesCost of SalesInterest Expense, netOther (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$3,033.8 $1,980.0 $94.5 $20.4 
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings$(2.3)$1.4 $— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$— $0.4 $— $0.6 
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings$— $— $(1.3)$—