Balance Sheet Information and Other

9 Months Ended

Oct. 01, 2021

Balance Sheet Related Disclosures [Abstract]

Note 6: Balance Sheet Information and Other

Goodwill

There was an insignificant change in the balance of goodwill from December 31, 2020 to October 1, 2021 relating to the divestiture of a business. See Note 4: ''Acquisition and Divestiture''. Goodwill is tested for impairment annually on the first day of the fourth quarter or more frequently if events or changes in circumstances (each, a "triggering event") would more likely than not reduce the carrying value of goodwill below its fair value. Management did not identify any triggering events during the quarter ended October 1, 2021 that would require an interim impairment analysis.

Inventory

Details of Inventory included in the Company’s Consolidated Balance Sheets are as follows (in millions):


	As of
	October 1, 2021		December 31, 2020
Inventories:
Raw materials	$	160.8	$	135.7
Work in process	871.7		829.7
Finished goods	295.1		286.0
	$	1,327.6	$	1,251.4

Defined Benefit Plans

The Company recognizes the aggregate amount of all overfunded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. As of October 1, 2021, the net assets for the overfunded plans totaled $12.5 million. The total accrued pension liability for underfunded plans was $142.8 million, of which the current portion of $0.4 million was classified as accrued expenses and other current liabilities. As of December 31, 2020, the net funded status for all the plans was a liability of $141.9 million, of which the current portion of $0.3 million was classified as accrued expenses and other current liabilities.

The components of the net periodic pension expense were as follows (in millions):


	Quarters Ended				Nine Months Ended
	October 1, 2021		October 2, 2020		October 1, 2021		October 2, 2020
Service cost	$	2.8	$	2.7	$	8.9	$	8.1
Interest cost	1.1		1.2		3.3		3.5
Expected return on plan assets	(1.6)		(1.6)		(4.9)		(4.7)

Curtailment gain	(2.3)		—		(0.4)		(1.6)

Total net periodic pension cost	$	—	$	2.3	$	6.9	$	5.3

Leases

Operating lease arrangements are comprised primarily of real estate and equipment agreements. The components of lease expense were as follows (in millions):


	Quarters Ended				Nine Months Ended
	October 1, 2021		October 2, 2020		October 1, 2021		October 2, 2020
Operating lease	$	9.8	$	9.9	$	29.6	$	28.1
Variable lease	0.9		1.3		2.9		3.1
Short-term lease	0.4		1.0		1.6		3.4
Total lease expense	$	11.1	$	12.2	$	34.1	$	34.6

The lease liabilities recognized in the Consolidated Balance Sheets are as follows (in millions):


	As of
	October 1, 2021		December 31, 2020
Accrued expenses and other current liabilities	$	32.4	$	32.2
Other long-term liabilities	98.3		115.7
Total lease liabilities	$	130.7	$	147.9

Operating right-of-use ("ROU") assets as of October 1, 2021 and December 31, 2020 amounted to $124.0 million and $136.3 million, respectively, and are included in other assets in the Consolidated Balance Sheets. As of October 1, 2021, the weighted-average remaining lease-term was 6.5 years and the weighted-average discount rate was 4.8%.

Supplemental Disclosure of Cash Flow Information

Certain of the Company's cash and non-cash activities were as follows (in millions):


	Nine Months Ended
	October 1, 2021		October 2, 2020
Non-cash investing activities:
Capital expenditures in accounts payable and other long-term liabilities	$	153.3	$	156.1
Divestiture/Sale of property in exchange of receivable	9.1		4.7
ROU assets obtained in exchange of lease liabilities	14.2		54.8





Cash paid for:

Interest expense	$	80.7	$	80.9
Income taxes	65.1		29.9
Operating lease payments in operating cash flows	30.6		27.5

Reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions)


	As of
	October 1, 2021		December 31, 2020		October 2, 2020		December 31, 2019
Consolidated Balance Sheets:
Cash and cash equivalents	$	1,389.2	$	1,080.7	$	1,654.0	$	894.2
Restricted cash (included in other current assets)	1.4		0.8		0.8		—
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows	$	1,390.6	$	1,081.5	$	1,654.8	$	894.2