v3.25.2
Financial Instruments
 6 Months Ended
Jun. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
The Company operates globally with manufacturing and sales facilities around the world. Due to the Company’s global operations, the Company engages in activities involving both financial and market risks. The Company utilizes normal operating and financing activities, along with derivative financial instruments, to minimize these risks. See Note 12 in the Notes to Consolidated Financial Statements in the 2024 Form 10-K for further details regarding the Company's financial instruments and hedging policies.

The Company regularly enters into cross-currency swaps to hedge Euro and Yuan currency exposures of the net investment in certain foreign subsidiaries. During the first half of 2025, the Company entered into $500.0 million of cross-currency swap contracts and settled $400.0 million of cross-currency swap contracts previously entered into, resulting in a deferred gain of $4.9 million within Accumulated other comprehensive loss, net of tax.
The following table summarizes the notional values of the Company's derivative instruments as of June 28, 2025, December 31, 2024, and June 29, 2024:
(in millions)Notional Value
InstrumentsJune 28, 2025December 31, 2024June 29, 2024
Cross-currency swaps$500.0 $400.0 $300.0 
Commodity contracts (A)(B)
37.8 26.9 39.9 
Foreign exchange contracts (B)(C)
715.3 571.2 575.8 

(A) Commodity contracts outstanding as of June 28, 2025 mature through 2027.
(B) The amount of gain or loss that is expected to be reclassified from Accumulated other comprehensive loss to earnings in the next twelve months is immaterial.
(C) Forward contracts outstanding as of June 28, 2025 mature through 2027 and mainly relate to the Euro, Australian dollar, Mexican peso and Norwegian krone.

As of June 28, 2025, December 31, 2024 and June 29, 2024, the fair values of the Company’s derivative instruments were:
(in millions)Fair Value
Asset DerivativesJune 28, 2025December 31, 2024June 29, 2024
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts$4.8 $13.2 $4.6 
Commodity contracts5.3 0.8 1.3 
Total$10.1 $14.0 $5.9 
Derivatives Designated as Net Investment Hedges
Cross-currency swaps$0.1 $5.1 $1.8 
Other Hedging Activity
Foreign exchange contracts$1.6 $3.0 $0.7 
Liability Derivatives
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts$17.1 $5.8 $6.1 
Commodity contracts— 0.4 0.2 
Total$17.1 $6.2 $6.3 
Derivatives Designated as Net Investment Hedges
Cross-currency swaps$45.5 $— $— 
Other Hedging Activity
Foreign exchange contracts$1.4 $3.2 $3.0 

As of June 28, 2025, December 31, 2024 and June 29, 2024, asset derivatives are included within Prepaid expenses and other and Other long-term assets, and liability derivatives are included within Accrued expenses and Other long-term liabilities in the Condensed Consolidated Balance Sheets.
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 28, 2025 and June 29, 2024 is shown in the tables below.

The amount of gain (loss) on derivatives recognized in Accumulated other comprehensive loss was as follows:
(in millions)Three Months EndedSix Months Ended
Derivatives Designated as Cash Flow Hedging InstrumentsJune 28, 2025June 29, 2024June 28, 2025June 29, 2024
Foreign exchange contracts$(16.3)$(5.7)$(21.3)$5.1 
Commodity contracts2.9 1.6 6.1 0.5 
Total$(13.4)$(4.1)$(15.2)$5.6 
Derivatives Designated as Net Investment Hedging Instruments
Cross-currency swaps$(33.1)$2.8 $(45.5)$6.8 

The amount of gain (loss) reclassified from Accumulated other comprehensive loss into earnings was as follows:
(in millions)Three Months EndedSix Months Ended
Derivatives Designated as Cash Flow Hedging InstrumentsLocation of Gain (Loss)June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Interest-rate contractsInterest expense$0.1 $0.1 $0.1 $0.1 
Foreign exchange contractsCost of sales0.8 2.5 2.5 4.4 
Commodity contractsCost of sales0.6 (0.2)1.1 (1.0)
Total$1.5 $2.4 $3.7 $3.5 

The amount of gain (loss) on derivatives recognized directly into earnings was as follows:
(in millions)Three Months EndedSix Months Ended
Other Hedging ActivityLocation of Gain (Loss)June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Foreign exchange contractsCost of sales$(6.5)$1.5 $(11.2)$3.5 
Foreign exchange contractsOther expense, net4.3 (2.2)9.4 (4.9)
Total$(2.2)$(0.7)$(1.8)$(1.4)