| Comprehensive Income Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets includes foreign currency cumulative translation adjustments; prior service costs and credits and net actuarial gains and losses for defined benefit plans; and unrealized derivative gains and losses, all net of tax. Changes in the components of Accumulated other comprehensive loss, all net of tax, for the three and nine months ended September 30, 2023 and October 1, 2022 are as follows:
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Three Months Ended |
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Nine Months Ended |
| (in millions) |
Sep 30,
2023 |
|
Oct 1,
2022 |
|
Sep 30,
2023 |
|
Oct 1,
2022 |
| Net earnings |
$ |
112.5
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|
|
$ |
163.8 |
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$ |
359.5
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|
$ |
535.3 |
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| Other comprehensive income (loss): |
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| Foreign currency cumulative translation adjustments |
(20.7) |
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(27.5) |
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(12.2) |
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(58.0) |
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| Net change in unamortized actuarial gains |
0.1
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0.4 |
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0.3
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0.9 |
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| Net change in unrealized derivative gains |
7.3
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21.3 |
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(0.7) |
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|
48.9 |
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| Total other comprehensive (loss) income |
(13.3) |
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(5.8) |
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(12.6) |
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(8.2) |
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| Comprehensive income |
$ |
99.2
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|
$ |
158.0 |
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$ |
346.9
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|
$ |
527.1 |
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The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended September 30, 2023:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
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Net actuarial gains |
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Unrealized investment gains |
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Net derivative gains |
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Total |
| Beginning balance |
$ |
(62.8) |
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$ |
(4.1) |
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$ |
9.9 |
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|
$ |
0.2 |
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$ |
28.0 |
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$ |
(28.8) |
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Other comprehensive income before reclassifications (A)
|
(20.7) |
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— |
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— |
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— |
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|
8.1 |
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(12.6) |
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Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
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— |
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0.1 |
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— |
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(0.8) |
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|
(0.7) |
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| Net other comprehensive income (loss) |
(20.7) |
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— |
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0.1 |
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— |
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7.3 |
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(13.3) |
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| Ending balance |
$ |
(83.5) |
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$ |
(4.1) |
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$ |
10.0 |
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$ |
0.2 |
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$ |
35.3 |
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$ |
(42.1) |
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(A) The tax effects for the three months ended September 30, 2023 were $1.1 million for foreign currency translation and $(2.9) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the three months ended September 30, 2023.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the nine months ended September 30, 2023:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
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Net actuarial gains |
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Unrealized investment gains |
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Net derivative gains |
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Total |
| Beginning balance |
$ |
(71.3) |
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|
$ |
(4.1) |
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|
$ |
9.7 |
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$ |
0.2 |
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$ |
36.0 |
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$ |
(29.5) |
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Other comprehensive income before reclassifications (A)
|
(12.2) |
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— |
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— |
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— |
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|
7.6 |
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(4.6) |
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Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
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— |
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0.3 |
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— |
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|
(8.3) |
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|
(8.0) |
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| Net other comprehensive income (loss) |
(12.2) |
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— |
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0.3 |
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— |
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(0.7) |
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(12.6) |
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| Ending balance |
$ |
(83.5) |
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$ |
(4.1) |
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$ |
10.0 |
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$ |
0.2 |
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$ |
35.3 |
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$ |
(42.1) |
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(A) The tax effects for the nine months ended September 30, 2023 were $0.6 million for foreign currency translation and $(3.3) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the nine months ended September 30, 2023
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended October 1, 2022:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
|
Net actuarial losses |
|
Unrealized investment gains |
|
Net derivative gains |
|
Total |
| Beginning balance |
$ |
(65.0) |
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|
$ |
(3.7) |
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|
$ |
(2.9) |
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$ |
0.2 |
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$ |
37.5 |
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$ |
(33.9) |
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Other comprehensive (loss) income before reclassifications (A)
|
(27.5) |
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|
— |
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0.3 |
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— |
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26.3 |
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(0.9) |
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Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
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— |
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0.1 |
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— |
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(5.0) |
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|
(4.9) |
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| Net other comprehensive income (loss) |
(27.5) |
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— |
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0.4 |
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— |
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21.3 |
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(5.8) |
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| Ending balance |
$ |
(92.5) |
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$ |
(3.7) |
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$ |
(2.5) |
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$ |
0.2 |
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$ |
58.8 |
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$ |
(39.7) |
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(A) The tax effects for the three months ended October 1, 2022 were $5.4 million for foreign currency translation and $(3.6) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the three months ended October 1, 2022.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the nine months ended October 1, 2022:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
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Net actuarial losses |
|
Unrealized investment gains |
|
Net derivative gains |
|
Total |
| Beginning balance |
$ |
(34.5) |
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|
$ |
(3.7) |
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$ |
(3.4) |
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$ |
0.2 |
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$ |
9.9 |
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$ |
(31.5) |
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Other comprehensive (loss) income before reclassifications (A)
|
(58.0) |
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|
— |
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|
0.3 |
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|
— |
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|
62.7 |
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|
5.0
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Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
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|
— |
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|
0.6 |
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|
— |
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|
(13.8) |
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|
(13.2) |
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| Net other comprehensive income (loss) |
(58.0) |
|
|
— |
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|
0.9 |
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|
— |
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|
48.9 |
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|
(8.2) |
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| Ending balance |
$ |
(92.5) |
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|
$ |
(3.7) |
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$ |
(2.5) |
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$ |
0.2 |
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$ |
58.8 |
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$ |
(39.7) |
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(A) The tax effects for the nine months ended October 1, 2022 were $8.5 million for foreign currency translation and $(16.3) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the nine months ended October 1, 2022
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three and nine months ended September 30, 2023 and October 1, 2022:
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Three Months Ended |
|
Nine Months Ended |
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| Details about Accumulated other comprehensive (loss) income components (in millions) |
|
Sep 30,
2023 |
|
Oct 1,
2022 |
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Sep 30,
2023 |
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Oct 1,
2022 |
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Affected line item in the statement where net income is presented |
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| Amortization of defined benefit items: |
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| Net actuarial losses |
|
$ |
(0.1) |
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$ |
(0.4) |
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$ |
(0.3) |
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$ |
(0.9) |
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Other income (expense), net |
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|
(0.1) |
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|
(0.4) |
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(0.3) |
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(0.9) |
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Earnings before income taxes |
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—
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|
0.3 |
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—
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|
0.3 |
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Income tax provision |
|
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$ |
(0.1) |
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$ |
(0.1) |
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$ |
(0.3) |
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$ |
(0.6) |
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Net earnings from continuing operations |
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| Amount of gain (loss) reclassified into earnings on derivative contracts: |
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| Interest-rate contracts |
|
$ |
—
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|
$ |
(0.1) |
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$ |
(0.1) |
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$ |
(0.2) |
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Interest expense |
| Foreign exchange contracts |
|
2.4
|
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|
7.7 |
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|
14.0
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|
15.7 |
|
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Cost of sales |
| Commodity contracts |
|
(1.1) |
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|
(0.8) |
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|
(2.2) |
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|
3.1 |
|
|
Cost of sales |
|
|
1.3
|
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|
6.8 |
|
|
11.7
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|
18.6 |
|
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Earnings before income taxes |
|
|
(0.5) |
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|
(1.8) |
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|
(3.4) |
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|
(4.8) |
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Income tax provision |
|
|
$ |
0.8
|
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$ |
5.0 |
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$ |
8.3
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$ |
13.8 |
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Net earnings from continuing operations |
|