Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.22.2.2
Comprehensive Income
9 Months Ended
Oct. 01, 2022
Comprehensive Income [Abstract]  
Comprehensive Income 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 October 1, 2022 and October 2, 2021 are as follows:
Three Months Ended Nine Months Ended
(in millions) October 1,
2022
October 2,
2021
October 1,
2022
October 2,
2021
Net earnings $ 163.8  $ 143.1  $ 535.3  $ 491.8 
Other comprehensive (loss) income:    
Foreign currency cumulative translation adjustment (27.5) (9.9) (58.0) (14.2)
Net change in unamortized prior service credits   —    (0.2)
Net change in unamortized actuarial gains 0.4  0.3  0.9  0.6 
Net change in unrealized derivative gains 21.3  7.1  48.9  21.5 
Total other comprehensive (loss) income (5.8) (2.5) (8.2) 7.7 
Comprehensive income $ 158.0  $ 140.6  $ 527.1  $ 499.5 

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:
(in millions) Foreign currency translation Prior service credits Net actuarial losses Unrealized investment gains Net derivative gains Total
Beginning balance $ (65.0) $ (3.7) $ (2.9) $ 0.2  $ 37.5  $ (33.9)
Other comprehensive (loss) income before reclassifications (A)
(27.5) —  0.3  —  26.3  (0.9)
Amounts reclassified from Accumulated other comprehensive loss (income) (B)
—  —  0.1  —  (5.0) (4.9)
Net other comprehensive (loss) income (27.5) —  0.4  —  21.3  (5.8)
Ending balance $ (92.5) $ (3.7) $ (2.5) $ 0.2  $ 58.8  $ (39.7)

(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:
(in millions) Foreign currency translation Prior service credits Net actuarial losses Unrealized investment gains Net derivative gains Total
Beginning balance $ (34.5) $ (3.7) $ (3.4) $ 0.2  $ 9.9  $ (31.5)
Other comprehensive (loss) income before reclassifications (A)
(58.0) —  0.3  —  62.7  5.0 
Amounts reclassified from Accumulated other comprehensive loss (income) (B)
—  —  0.6  —  (13.8) (13.2)
Net other comprehensive (loss) income (58.0) —  0.9  —  48.9  (8.2)
Ending balance $ (92.5) $ (3.7) $ (2.5) $ 0.2  $ 58.8  $ (39.7)

(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 the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended October 2, 2021:
(in millions) Foreign currency translation Prior service credits Net actuarial losses Net derivative losses Total
Beginning balance $ (19.4) $ (3.7) $ (8.6) $ (0.8) $ (32.5)
Other comprehensive (loss) income before reclassifications (A)
(9.9) —  0.1  6.9  (2.9)
Amounts reclassified from Accumulated other comprehensive loss (B)
—  —  0.2  0.2  0.4 
Net other comprehensive (loss) income (9.9) —  0.3  7.1  (2.5)
Ending balance $ (29.3) $ (3.7) $ (8.3) $ 6.3  $ (35.0)

(A) The tax effects for the three months ended October 2, 2021 were $0.4 million for foreign currency translation and $(2.5) 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 2, 2021.

The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the nine months ended October 2, 2021:
(in millions) Foreign currency translation Prior service credits Net actuarial losses Net derivative losses Total
Beginning balance $ (15.1) $ (3.5) $ (8.9) $ (15.2) $ (42.7)
Other comprehensive (loss) income before reclassifications (A)
(14.2) —  0.1  17.0  2.9 
Amounts reclassified from Accumulated other comprehensive loss (income) (B)
—  (0.2) 0.5  4.5  4.8 
Net other comprehensive (loss) income (14.2) (0.2) 0.6  21.5  7.7 
Ending balance $ (29.3) $ (3.7) $ (8.3) $ 6.3  $ (35.0)

(A) The tax effects for the nine months ended October 2, 2021 were $0.4 million for foreign currency translation and $(5.9) 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 2, 2021.
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three and nine months ended October 1, 2022 and October 2, 2021:

Three Months Ended Nine Months Ended
Details about Accumulated other comprehensive income (loss) components (in millions) October 1,
2022
October 2,
2021
October 1,
2022
October 2,
2021
Affected line item in the statement where net income is presented
Amortization of defined benefit items:
Prior service credits $   $ —  $   $ 0.2  Other expense, net
Net actuarial losses (0.4) (0.2) (0.9) (0.6) Other expense, net
(0.4) (0.2) (0.9) (0.4) Earnings before income taxes
0.3  —  0.3  0.1  Income tax provision
$ (0.1) $ (0.2) $ (0.6) $ (0.3) Net earnings from continuing operations
Amount of (loss) gain reclassified into earnings on derivative contracts:
Interest-rate contracts $ (0.1) $ (0.2) $ (0.2) $ (0.5) Interest expense
Foreign exchange contracts 7.7  (1.7) 15.7  (8.8) Cost of sales
Commodity contracts (0.8) 1.6  3.1  3.1  Cost of sales
6.8  (0.3) 18.6  (6.2) Earnings before income taxes
(1.8) 0.1  (4.8) 1.7  Income tax provision
$ 5.0  $ (0.2) $ 13.8  $ (4.5) Net earnings from continuing operations