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FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS We use various derivative financial instruments to manage risks in foreign currency exchange rates, commodity prices and interest rates. We recognize derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. Fair Value Hedges During 2024, we entered into foreign currency forward contracts to hedge a portion of our €500 million of senior notes due in the first quarter of 2025 and €500 million of senior notes due in the fourth quarter of 2034 to offset changes in the fair value of the hedged item attributable to foreign currency risk. The foreign currency forward contracts hedging our €500 million of senior notes due in the fourth quarter of 2034 have a maturity date of December 2025. Cash Flow Hedges During 2020, we entered into U.S. dollar to euro cross-currency swap contracts with a total notional amount of $250 million to effectively convert our fixed-rate U.S. dollar-denominated debt into euro-denominated debt, including semiannual interest payments and the payment of principal at maturity. During the term of the contract, which ends on April 30, 2030, we pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars. We designate commodity forward contracts on forecasted purchases of commodities as cash flow hedges. During 2024, we entered into interest rate forward-starting swap contracts that we designated as cash flow hedges that were terminated upon the issuance of our €500 million of senior notes due in the fourth quarter of 2034. The resulting gain will be amortized to interest expense over the term of the hedged fixed-rate interest payments. Net Investment Hedges During 2024, we entered into foreign currency forward contracts and zero-cost collars, combining each pair as net investment hedges for accounting purposes. The objective of the hedging activity is to minimize the effect of foreign currency exchange rates on our net investment in certain foreign operations between the sold put strike and the purchased call strike rates of the contracts. The notional amount of these hedges are approximately €420 million and €500 million with maturity dates in March 2025 and December 2025, respectively. Other Derivatives Our outstanding foreign currency exchange contracts as of December 28, 2024 were recorded in various currencies, primarily the U.S. dollar, Canadian dollar, euro, Chinese renminbi, British pound sterling and Hong Kong dollar. For other derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings. Derivative Financial Statement Impacts The following table shows the fair value and balance sheet locations of other derivatives as of December 28, 2024 and December 30, 2023:
(In millions) |  | Notional Amount |  | Other Current Assets |  | Other Non-Current Assets |  | Other Current Liabilities |  | Other Non-Current Liabilities |  | Type of Hedge
December 28, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 958.9 |  |  | $ | .2 |  |  | $ | — |  |  | $ | 36.7 |  |  | $ | — |  |  | Fair value
Cross-currency swap contracts |  | 250.0 |  |  | — |  |  | 10.9 |  |  | — |  |  | — |  |  | Cash flow
Commodity contracts |  | 2.9 |  |  | .4 |  |  | — |  |  | .4 |  |  | — |  |  | Cash flow
Foreign currency forward contracts with collars |  | 958.9 |  |  | 17.8 |  |  | — |  |  | .2 |  |  | — |  |  | Net investment
Total |  |  |  | $ | 18.4 |  |  | $ | 10.9 |  |  | $ | 37.3 |  |  | $ | — |  |  |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | 1,741.8 |  |  | $ | 11.9 |  |  | $ | — |  |  | $ | 4.2 |  |  | $ | — |  |  |
December 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Cross-currency swap contracts |  | $ | 250.0 |  |  | $ | — |  |  | $ | 2.3 |  |  | $ | — |  |  | $ | — |  |  | Cash flow
Commodity contracts |  | 5.8 |  |  | — |  |  | — |  |  | 1.4 |  |  | .2 |  |  | Cash flow
Total |  |  |  | $ | — |  |  | $ | 2.3 |  |  | $ | 1.4 |  |  | $ | .2 |  |  |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | 1,336.6 |  |  | $ | 6.3 |  |  | $ | — |  |  | $ | 6.0 |  |  | $ | — |  |  |
The following tables show the components of the net gains (losses) recognized in income related to derivative instruments:
(In millions) |  | 2024 |  | 2023 |  | 2022
Gain (loss) on derivatives designated as fair value hedges: |  |  |  |  |  |
Foreign currency forward contracts - Marketing, general and administrative expense |  | $ | (36.4) |  |  | $ | — |  |  | $ | — |
The impact of the hedged items associated with the derivative in the table above are recorded to the same income statement line as the derivative instrument. The net gains (losses) recognized in income related to our cross-currency swap contracts and commodity contracts were not material in 2024, 2023 or 2022. The gain recognized in translation for the net investment hedges was approximately $15 million for the year ended December 28, 2024. The following table shows the components of the net gains (losses) recognized in income related to the derivative instruments not designated as hedges:
(In millions) |  | Statements of Income Location |  | 2024 |  | 2023 |  | 2022
Foreign currency exchange contracts |  | Cost of products sold |  | $ | 3.2 |  |  | $ | 3.4 |  |  | $ | 5.6 |
Foreign currency exchange contracts |  | Marketing, general and administrative expense |  | (15.2) |  |  | 5.5 |  |  | (4.3) |
|  |  |  | $ | (12.0) |  |  | $ | 8.9 |  |  | $ | 1.3 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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