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FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivatives

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at March 28, 2020 and December 28, 2019 is as follows: 

(Millions of Dollars)	Balance Sheet Classification		March 28, 2020				December 28, 2019				Balance Sheet Classification		March 28, 2020				December 28, 2019
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	LT other assets		$	—			$	—			LT other liabilities		$	118.9			$	40.5
Foreign Exchange Contracts Cash Flow	Other current assets		17.2				7.0				Accrued expenses		0.6				7.8
Net Investment Hedge	Other current assets		26.0				18.6				Accrued expenses		2.2				8.5
	LT other assets		—				—				LT other liabilities		0.9				2.6
Non-derivative designated as hedging instrument:
Net Investment Hedge			—				—				Short-term borrowings		460.4				335.5
Total designated as hedging			$	43.2			$	25.6					$	583.0			$	394.9
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets		$	24.9			$	3.7			Accrued expenses		$	10.6			$	6.1
Total			$	68.1			$	29.3					$	593.6			$	401.0

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) into Earnings

The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for the three months ended March 28, 2020 and March 30, 2019: 

		Year-to-Date 2020
(Millions of Dollars)		Gain (Loss) Recorded in OCI				Classification of Gain (Loss) Reclassified from OCI to Income		Gain (Loss) Reclassified from OCI to Income				Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts		$	(98.9	)		Interest expense		$	(4.5	)		$	—
Foreign Exchange Contracts		$	20.3			Cost of sales		$	2.3			$	—

		Year-to-Date 2019
(Millions of Dollars)		Gain (Loss) Recorded in OCI				Classification of Gain (Loss) Reclassified from OCI to Income		Gain (Loss) Reclassified from OCI to Income				Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts		$	(10.9	)		Interest expense		$	(4.0	)		$	—
Foreign Exchange Contracts		$	7.0			Cost of sales		$	(0.2	)		$	—

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended March 28, 2020 and March 30, 2019 is as follows:

		Year-to-Date 2020
(Millions of Dollars)		Cost of Sales				Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive (Loss) Income in which the effects of the cash flow hedges are recorded		$	2,106.3			$	59.7
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items		$	(2.3	)		$	—
Gain (loss) reclassified from OCI into Income		$	2.3			$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1		$	—			$	(4.5	)

		Year-to-Date 2019
(Millions of Dollars)		Cost of Sales				Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive (Loss) Income in which the effects of the cash flow hedges are recorded		$	2,228.0			$	74.4
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items		$	0.2			$	—
Gain (loss) reclassified from OCI into Income		$	(0.2	)		$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1		$	—			$	(4.0	)

¹ Inclusive of the gain/loss amortization on terminated derivative financial instruments.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended March 28, 2020 and March 30, 2019 is as follows:

(Millions of Dollars)		Year-to-Date 2020 Interest Expense				Year-to-Date 2019 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive (Loss) Income in which the effects of the fair value hedges are recorded		$	59.7			$	74.4
Amortization of gain on terminated swaps		$	(0.8	)		$	(5.4	)

In February 2019, the Company redeemed all of the outstanding 2053 Junior Subordinated Debentures. As a result, the Company recorded a pre-tax gain of $4.6 million relating to the remaining unamortized gain on swap termination related to this debt.

A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of March 28, 2020 and December 28, 2019 is as follows:

		March 28, 2020
(Millions of Dollars)		Carrying Amount of Hedged Liability (1)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt		$	3.1			Terminated Swaps		$	3.1
Long-Term Debt		$	4,662.6			Terminated Swaps		$	(18.3	)

		December 28, 2019
(Millions of Dollars)		Carrying Amount of Hedged Liability (1)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt		$	3.1			Terminated Swaps		$	3.1
Long-Term Debt		$	3,176.4			Terminated Swaps		$	(17.5	)

Details of Foreign Exchange Contracts Pre-Tax Amounts

The pre-tax gain or loss from fair value changes for the three months ended March 28, 2020 and March 30, 2019 was as follows:

		Year-to-Date 2020
(Millions of Dollars)		Total Gain (Loss) Recorded in OCI				Excluded Component Recorded in OCI				Income Statement Classification		Total Gain (Loss) Reclassified from OCI to Income				Excluded Component Amortized from OCI to Income
Forward Contracts		$	(0.1	)		$	—			Other, net		$	—			$	—
Cross Currency Swap		$	42.0			$	18.8			Other, net		$	5.4			$	5.4
Option Contracts		$	—			$	—			Other, net		$	—			$	—
Non-derivative designated as Net Investment Hedge		$	15.6			$	—			Other, net		$	—			$	—

		Year-to-Date 2019
(Millions of Dollars)		Total Gain (Loss) Recorded in OCI				Excluded Component Recorded in OCI				Income Statement Classification		Total Gain (Loss) Reclassified from OCI to Income				Excluded Component Amortized from OCI to Income
Forward Contracts		$	(1.2	)		$	4.2			Other, net		$	1.0			$	1.0
Cross Currency Swap		$	25.9			$	13.4			Other, net		$	7.7			$	7.7
Option Contracts		$	(1.0	)		$	—			Other, net		$	—			$	—
Non-derivative designated as Net Investment Hedge		$	15.6			$	—			Other, net		$	—			$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The gain (loss) recorded in income from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three months ended March 28, 2020 and March 30, 2019 are as follows: 

(Millions of Dollars)	Income Statement Classification		Year-to-Date  2020				Year-to-Date  2019
Foreign Exchange Contracts	Other, net		$	12.4			$	2.3

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