v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES     
Interest Rate Swaps

We have $712.5 million notional amount of variable-to-fixed interest rate swaps used to economically hedge interest rate risk on a substantial portion of our Senior Secured Credit Facilities (as defined in Note 11). The interest rate swaps were designated as cash flow hedges to fix the variable interest rate. As a designated cash flow hedge, changes in fair value will be deferred in AOCI and recognized within Interest expense, net when interest is paid on the Senior Secured Credit Facilities.

As of June 27, 2026, the designated instruments used to hedge the exposure to variable interest on the Senior Secured Credit Facilities totaled $712.5 million notional amount which is effective through April 2029.

As of June 27, 2026, the undesignated economically offsetting interest rate swaps totaling $600.0 million are effective through April 2029.

Cross-currency Swaps

We have $2.3 billion notional amount fixed-for-fixed cross-currency interest rate swaps designated as net investment hedges to hedge the European Euro (“EUR”) currency exposure of our investment in European operations. As designated net investment hedges, 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 Condensed Consolidated Statements 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.

As of June 27, 2026, of the total $2.3 billion notional amount, $1.0 billion, $300.0 million, $450.0 million, $380.0 million, and $200.0 million notional amounts are effective through April 2027, September 2028, November 2030, December 2030, and March 2033, respectively.

Other Hedging Instruments

The €350.0 million 2032 Notes (as defined in Note 11) are designated as a net investment hedge on our investment in European operations.
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 Condensed Consolidated Statements of Operations when the hedged EUR net investment is substantially liquidated.

Foreign Currency Forwards

Notional amounts of foreign currency forward contracts were as follows (in millions):
June 27, 2026December 31, 2025
European Euro (EUR)$397.9 $50.1 
United States Dollar (USD)111.3 160.6 
British Pound (GBP)106.1 148.1 
Polish Zloty (PLZ)58.3 43.3 
Danish Krone (DKK)39.4 56.8 
Canadian Dollar (CAD)15.1 21.2 
Swedish Krona (SEK)11.2 48.6 
Hungarian Forint (HUF)11.2 11.0 
Chinese Yuan (CNH)11.0 16.3 
Norwegian Krone (NOK)— 4.6 
Other(1)
8.5 18.1 
Total$769.8 $578.7 
(1) Number consists of notional amounts of various currencies, none of which individually exceed $10.0 million in either year presented.

The maximum term of our forward currency exchange contracts is 60 months.

On August 1, 2025, we entered into a deal-contingent EUR/USD forward contract of €300 million to hedge foreign exchange risk related to the proceeds expected for the planned divestiture of our Dermacosmetics Business (refer to Note 3 for additional details). The contract was contingent on the successful closing of the transaction, which occurred on April 30, 2026. Gains or losses on the derivatives due to changes in the EUR/USD exchange rate prior to the close of the divestiture were economically offset at closing in the final settlement of the euro-denominated Dermacosmetics Business purchase price. The total settlement loss was $5.6 million of which we recorded a loss of $4.8 million and a gain of $3.2 million during the three and six months ended June 27, 2026, respectively, and a loss of $8.8 million during the twelve months ended December 31, 2025 in Other (income) expense, net on the Condensed Consolidated Statements of Operations.
Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects.

The balance sheet location and gross fair value of our derivative instruments were as follows (in millions):
Balance Sheet LocationJune 27, 2026December 31, 2025
Designated derivative assets:
Foreign currency forward contractsPrepaid expenses and other current assets$0.9 $0.3 
Interest rate swap agreements Other non-current assets— 1.1 
Total designated derivative assets$0.9 $1.4 
Non-designated derivative assets:
Foreign currency forward contracts Prepaid expenses and other current assets$2.0 $2.1 
Total non-designated derivatives$2.0 $2.1 
Designated derivative liabilities:
Foreign currency forward contractsAccrued derivative liabilities$2.2 $1.1 
Cross-currency swapsAccrued derivative liabilities70.1 — 
Cross-currency swapsOther non-current liabilities122.7 265.6 
Interest rate swap agreementsOther non-current liabilities8.7 22.0 
Total designated derivative liabilities$203.7 $288.7 
Non-designated derivative liabilities:
Foreign currency forward contractsAccrued derivative liabilities$13.9 $13.4 
Interest rate swap agreementsOther non-current liabilities9.0 10.8 
Total non-designated derivative liabilities$22.9 $24.2 

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 EndedSix Months Ended
Non-Designated DerivativesIncome Statement LocationJune 27, 2026June 28, 2025June 27, 2026June 28, 2025
Foreign currency forward contractsOther (income) expense, net$19.2 $0.3 $21.4 $(0.8)
Interest rate swap agreementsInterest expense, net$— $0.2 $— $0.4 

The following tables summarize the effect of derivative instruments designated as hedging instruments in AOCI (in millions):
Gain or (Loss) Reclassified from AOCI into Earnings
Related to Amounts Included in Effectiveness TestingRelated to Amounts Excluded from Effectiveness Testing
Amount of Gain or (Loss) Recognized in OCI(1)
Location of Gain or (Loss)
Amount Reclassified(2)
Location of Gain or (Loss)
Amount Reclassified(2)
Three Months Ended June 27, 2026
Cash flow hedges
Interest rate swap agreements$1.7 Interest expense, net$0.2 Interest expense, net$— 
Foreign currency forward contracts(0.3)Net sales0.2 Net sales— 
Cost of sales(0.4)Cost of sales— 
Other (income) expense, net— 
Total Cash flow hedges$1.4 $— $— 
Net investment hedges
Cross-currency swaps$19.1 Interest expense, net$8.6 
Euro Notes Due 20324.3 
Total Net investment hedges$23.4 $8.6 
Six Months Ended June 27, 2026
Cash flow hedges
Interest rate swap agreements$11.5 Interest expense, net$1.4 Interest expense, net$— 
Foreign currency forward contracts(1.2)Net sales0.1 Net sales0.1 
Cost of sales(1.1)Cost of sales— 
Other (income) expense, net— 
Total Cash flow hedges$10.3 $0.5 $0.1 
Net investment hedges
Cross-currency swaps$74.3 Interest expense, net$16.8 
Euro Notes Due 203212.5 
Total Net investment hedges$86.8 $16.8 
Three Months Ended June 28, 2025
Cash flow hedges
Interest rate swap agreements$(5.0)Interest expense, net$4.4 Interest expense, net$— 
Foreign currency forward contracts2.8 Net sales0.1 Net sales(0.1)
Cost of sales0.1 Cost of sales— 
Other (income) expense, net(0.1)
Total Cash flow hedges$(2.2)$4.6 $(0.2)
Net investment hedges
Cross-currency swaps$(169.0)Interest expense, net$9.5 
Euro Notes Due 2032(31.0)
Total Net investment hedges$(200.0)$9.5 
Six Months Ended June 28, 2025
Cash flow hedges
Interest rate swap agreements$(16.1)Interest expense, net$9.1 Interest expense, net$— 
Foreign currency forward contracts3.3 Net sales0.1 Net sales(0.1)
Cost of sales0.4 Cost of sales0.1 
Other (income) expense, net(0.1)
Total Cash flow hedges$(12.8)$9.6 $(0.1)
Net investment hedges
Cross-currency swaps$(228.9)Interest expense, net$18.9 
Euro Notes Due 2032(47.4)
Total Net investment hedges$(276.3)$18.9 
(1) Net income of $35.1 million is expected to be reclassified out of AOCI into earnings during the next 12 months.
(2) For additional details about the effect of the amounts reclassified from AOCI refer to Note 13.
The classification and amount of gain/(loss) recognized in earnings related to fair value and hedging relationships on the Condensed Consolidated Statement of Operations were as follows (in millions):
Net SalesCost of SalesInterest Expense, netOther (Income) Expense, net
Three Months Ended June 27, 2026
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
$1,022.8 $708.9 $38.4 $(120.5)
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings
$0.2 $(0.4)$— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$— $— $— $— 
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings
$— $— $0.2 $— 
Six Months Ended June 27, 2026
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$1,992.0 $1,352.6 $79.3 $(126.5)
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings$0.1 $(1.1)$— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$0.1 $— $— $— 
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings$— $— $1.4 $— 
Three Months Ended June 28, 2025
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
$1,056.3 $693.4 $39.6 $2.6 
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings
$0.1 $0.1 $— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$(0.1)$— $— $(0.1)
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings
$— $— $4.4 $— 
Six Months Ended June 28, 2025
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$2,100.2 $1,345.0 $78.6 $2.2 
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain (loss) reclassified from AOCI into earnings
$0.1 $0.4 $— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$(0.1)$0.1 $— $(0.1)
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings$— $— $9.1 $—