Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments Financial Instruments (Tables)

v3.23.3
Financial Instruments Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Values of Derivative Instruments
As of September 30, 2023, December 31, 2022 and October 1, 2022, the fair values of the Company’s derivative instruments were:
(in millions) Fair Value
Asset Derivatives Sep 30, 2023 Dec 31, 2022 Oct 1, 2022
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts $ 13.8  $ 15.2  $ 37.3 
Commodity contracts 0.4  0.3  — 
Total $ 14.2  $ 15.5  $ 37.3 
Derivatives Designated as Net Investment Hedges
Cross-currency swaps $ —  $ —  $ 26.6 
Other Hedging Activity
Foreign exchange contracts $ 0.4  $ 0.6  $ 1.3 
Liability Derivatives
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts $ 3.3  $ 8.0  $ 3.5 
Commodity contracts 1.5  1.1  4.0 
Total $ 4.8  $ 9.1  $ 7.5 
Other Hedging Activity
Foreign exchange contracts $ 0.6  $ 0.8  $ — 

As of September 30, 2023, December 31, 2022 and October 1, 2022, 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.
Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Income
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and October 1, 2022 is as 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 Ended Nine Months Ended
Derivatives Designated as Cash Flow Hedging Instruments Sep 30, 2023 Oct 1, 2022 Sep 30, 2023 Oct 1, 2022
Interest-rate contracts $ —  $ —  $ —  $ 5.3 
Foreign exchange contracts 10.2  20.7  13.3  48.6 
Commodity contracts 0.8  (3.2) (2.4) (3.9)
Total $ 11.0  $ 17.5  $ 10.9  $ 50.0 
Derivatives Designated as Net Investment Hedging Instruments
Cross-currency swaps $ —  $ 12.4  $ —  $ 29.0 
The amount of gain (loss) reclassified from Accumulated other comprehensive loss into earnings was as follows:
(in millions) Three Months Ended Nine Months Ended
Derivatives Designated as Cash Flow Hedging Instruments Location of Gain (Loss) Sep 30, 2023 Oct 1, 2022 Sep 30, 2023 Oct 1, 2022
Interest-rate contracts Interest expense $ —  $ (0.1) $ (0.1) $ (0.2)
Foreign exchange contracts Cost of sales 2.4  7.7  14.0  15.7 
Commodity contracts Cost of sales (1.1) (0.8) (2.2) 3.1 
Total $ 1.3  $ 6.8  $ 11.7  $ 18.6 
Derivatives Designated as Fair Value Hedging Instruments
Interest-rate contracts Interest expense $ 0.1  $ 0.2  $ 0.4  $ 0.5 
Other Hedging Activity
Foreign exchange contracts Cost of sales $ 1.6  $ 0.3  $ (0.6) $ 2.1 
Foreign exchange contracts Other Income (expense), net (2.4) 0.6  (2.9) 0.8 
Total $ (0.8) $ 0.9  $ (3.5) $ 2.9