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FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Oct. 02, 2021
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 October 2, 2021 and January 2, 2021 is as follows:
(Millions of Dollars) | Balance Sheet Classification |  | October 2, 2021 |  | January 2, 2021 |  | Balance Sheet Classification |  | October 2, 2021 |  | January 2, 2021
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest Rate Contracts Cash Flow | Other current assets |  | $ | — |  |  | $ | — |  |  | Accrued expenses |  | $ | 60.6 |  |  | $ | 90.9 |
Foreign Exchange Contracts Cash Flow | Other current assets |  | 17.8 |  |  | — |  |  | Accrued expenses |  | 0.9 |  |  | 23.7 |
| LT other assets |  | 0.4 |  |  | — |  |  | LT other liabilities |  | — |  |  | — |
Net Investment Hedge | Other current assets |  | 2.3 |  |  | 3.5 |  |  | Accrued expenses |  | 0.5 |  |  | 55.1 |
| LT other assets |  | 0.4 |  |  | — |  |  | LT other liabilities |  | — |  |  | 5.7 |
Total designated as hedging |  |  | $ | 20.9 |  |  | $ | 3.5 |  |  |  |  | $ | 62.0 |  |  | $ | 175.4 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts | Other current assets |  | $ | 8.7 |  |  | $ | 10.5 |  |  | Accrued expenses |  | $ | 7.2 |  |  | $ | 15.6 |
Total |  |  | $ | 29.6 |  |  | $ | 14.0 |  |  |  |  | $ | 69.2 |  |  | $ | 191.0 |
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 income (loss) during the periods in which the underlying hedged transactions affected earnings for the three and nine months ended October 2, 2021 and September 26, 2020:
|  | Third Quarter 2021
(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 |  | $ | 2.9 |  |  | Interest expense |  | $ | (0.8) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 11.0 |  |  | Cost of sales |  | $ | (9.9) |  |  | $ | — |
|  | Year-to-Date 2021
(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 |  | $ | 30.3 |  |  | Interest expense |  | $ | (2.9) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 19.2 |  |  | Cost of sales |  | $ | (21.3) |  |  | $ | — |
|  | Third Quarter 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 |  | $ | 1.9 |  |  | Interest expense |  | $ | (4.3) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | (5.3) |  |  | Cost of sales |  | $ | 5.9 |  |  | $ | — |
|  | 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 |  | $ | (92.1) |  |  | Interest expense |  | $ | (13.5) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 10.1 |  |  | Cost of sales |  | $ | 12.5 |  |  | $ | — |
A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended October 2, 2021 and September 26, 2020 is as follows:
|  | Third Quarter 2021 |  | Year-to-Date 2021
(Millions of Dollars) |  | Cost of Sales |  | Interest Expense |  | Cost of Sales |  | Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded |  | $ | 2,871.7 |  |  | $ | 45.8 |  |  | $ | 8,261.8 |  |  | $ | 139.8 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign Exchange Contracts: |  |  |  |  |  |  |  |
Hedged Items |  | $ | 9.9 |  |  | $ | — |  |  | $ | 21.3 |  |  | $ | — |
Gain (loss) reclassified from OCI into Income |  | $ | (9.9) |  |  | $ | — |  |  | $ | (21.3) |  |  | $ | — |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |
Gain (loss) reclassified from OCI into Income 1 |  | $ | — |  |  | $ | (0.8) |  |  | $ | — |  |  | $ | (2.9) |
|  | Third Quarter 2020 |  | Year-to-Date 2020
(Millions of Dollars) |  | Cost of Sales |  | Interest Expense |  | Cost of Sales |  | Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded |  | $ | 2,473.9 |  |  | $ | 52.7 |  |  | $ | 6,714.9 |  |  | $ | 169.7 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign Exchange Contracts: |  |  |  |  |  |  |  |
Hedged Items |  | $ | (5.9) |  |  | $ | — |  |  | $ | (12.5) |  |  | $ | — |
Gain (loss) reclassified from OCI into Income |  | $ | 5.9 |  |  | $ | — |  |  | $ | 12.5 |  |  | $ | — |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |
Gain (loss) reclassified from OCI into Income 1 |  | $ | — |  |  | $ | (4.3) |  |  | $ | — |  |  | $ | (13.5) |
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 Income for the three and nine months ended October 2, 2021 and September 26, 2020 is as follows:
(Millions of Dollars) |  | Third Quarter 2021 Interest Expense |  | Year-to-Date 2021 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded |  | $ | 45.8 |  |  | $ | 139.8 |
Amortization of gain on terminated swaps |  | $ | (0.1) |  |  | $ | (0.3) |
(Millions of Dollars) | Third Quarter 2020 Interest Expense |  | Year-to-Date 2020 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded | $ | 52.7 |  |  | $ | 169.7 |
Amortization of gain on terminated swaps | $ | (0.8) |  |  | $ | (2.4) |
A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of October 2, 2021 and January 2, 2021 is as follows:
|  | October 2, 2021
(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
Long-Term Debt |  | $ | 4,246.9 |  |  | Terminated Swaps |  | $ | (20.5) |
|  | January 2, 2021
(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
Long-Term Debt |  | $ | 4,245.4 |  |  | Terminated Swaps |  | $ | (20.8) |
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships.
Schedule of Derivatives Pre-tax Gain Or Loss from Fair Value Change | The pre-tax gain or loss from fair value changes for the three and nine months ended October 2, 2021 and September 26, 2020 was as follows:
|  | Third Quarter 2021
(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 |  | $ | (0.4) |  |  | $ | 0.3 |  |  | Other, net |  | $ | 0.4 |  |  | $ | 0.4 |
Cross Currency Swap |  | $ | (0.2) |  |  | $ | 6.0 |  |  | Other, net |  | $ | 0.8 |  |  | $ | 0.8 |
|  | Year-to-Date 2021
(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 |  | $ | (1.4) |  |  | $ | 1.1 |  |  | Other, net |  | $ | 1.1 |  |  | $ | 1.1 |
Cross Currency Swap |  | $ | 9.1 |  |  | $ | 19.9 |  |  | Other, net |  | $ | 2.9 |  |  | $ | 2.9 |
|  | Third Quarter 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 |  | $ | 0.3 |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Cross Currency Swap |  | $ | (19.0) |  |  | $ | 14.0 |  |  | Other, net |  | $ | 4.1 |  |  | $ | 4.1 |
Non-derivative designated as Net Investment Hedge |  | $ | (13.1) |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
|  | 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 |  | $ | 0.4 |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Cross Currency Swap |  | $ | 22.3 |  |  | $ | 48.9 |  |  | Other, net |  | $ | 13.7 |  |  | $ | 13.7 |
Non-derivative designated as Net Investment Hedge |  | $ | (8.5) |  |  | $ | — |  |  | 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 and nine months ended October 2, 2021 and September 26, 2020 are as follows:
(Millions of Dollars) | Income Statement Classification |  | Third Quarter 2021 |  | Year-to-Date 2021 |  | Third Quarter 2020 |  | Year-to-Date 2020
Foreign Exchange Contracts | Other, net |  | $ | 3.4 |  |  | $ | (20.1) |  |  | $ | (9.0) |  |  | $ | (2.6) |

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