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FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
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 September 30, 2023 and December 31, 2022 is as follows:
(Millions of Dollars) | Balance Sheet Classification |  | September 30, 2023 |  | December 31, 2022 |  | Balance Sheet Classification |  | September 30, 2023 |  | December 31, 2022
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts Cash Flow | Other current assets |  | $ | 7.4 |  |  | $ | 4.5 |  |  | Accrued expenses |  | $ | 0.1 |  |  | $ | 4.2 |
| LT other assets |  | 0.9 |  |  | — |  |  | LT other liabilities |  | — |  |  | — |
Non-derivative designated as hedging instrument: |  |  |  |  |  |  |  |  |  |  |
Net Investment Hedge |  |  | $ | — |  |  | $ | — |  |  | Short-term borrowings |  | $ | 553.0 |  |  | $ | — |
Total designated as hedging instruments |  |  | $ | 8.3 |  |  | $ | 4.5 |  |  |  |  | $ | 553.1 |  |  | $ | 4.2 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts | Other current assets |  | $ | 13.1 |  |  | $ | 7.7 |  |  | Accrued expenses |  | $ | 10.3 |  |  | $ | 11.9 |
Total |  |  | $ | 21.4 |  |  | $ | 12.2 |  |  |  |  | $ | 563.4 |  |  | $ | 16.1 |
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 and nine months ended September 30, 2023 and October 1, 2022:
|  | Third Quarter 2023
(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 |  | $ | — |  |  | Interest expense |  | $ | (1.5) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 11.0 |  |  | Cost of sales |  | $ | (0.7) |  |  | $ | — |
|  | Year-to-Date 2023
(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 |  | $ | — |  |  | Interest expense |  | $ | (4.6) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 6.5 |  |  | Cost of sales |  | $ | (1.1) |  |  | $ | — |
|  | Third Quarter 2022
(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 |  | $ | — |  |  | Interest expense |  | $ | (1.5) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 15.8 |  |  | Cost of sales |  | $ | 14.8 |  |  | — |
|  | Year-to-Date 2022
(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 |  | $ | 23.4 |  |  | Interest expense |  | $ | (4.2) |  |  | $ | — |
Foreign Exchange Contracts |  | $ | 39.2 |  |  | Cost of sales |  | $ | 28.1 |  |  | $ | — |
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 and nine months ended September 30, 2023 and October 1, 2022 is as follows:
|  | Third Quarter 2023 |  | Year-to-Date 2023
(Millions of Dollars) |  | Cost of Sales |  | Interest Expense |  | 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 |  | $ | 2,893.3 |  |  | $ | 144.6 |  |  | $ | 9,216.4 |  |  | $ | 420.1 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign Exchange Contracts: |  |  |  |  |  |  |  |
Hedged Items |  | $ | 0.7 |  |  | $ | — |  |  | $ | 1.1 |  |  | $ | — |
Gain (loss) reclassified from OCI into Income |  | $ | (0.7) |  |  | $ | — |  |  | $ | (1.1) |  |  | $ | — |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |
Gain (loss) reclassified from OCI into Income 1 |  | $ | — |  |  | $ | (1.5) |  |  | $ | — |  |  | $ | (4.6) |
|  | Third Quarter 2022 |  | Year-to-Date 2022
(Millions of Dollars) |  | Cost of Sales |  | Interest Expense |  | 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 |  | $ | 3,101.5 |  |  | $ | 91.7 |  |  | $ | 9,430.0 |  |  | $ | 224.6 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign Exchange Contracts: |  |  |  |  |  |  |  |
Hedged Items |  | $ | (14.8) |  |  | $ | — |  |  | $ | (28.1) |  |  | $ | — |
Gain (loss) reclassified from OCI into Income |  | $ | 14.8 |  |  | $ | — |  |  | $ | 28.1 |  |  | $ | — |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |
Gain (loss) reclassified from OCI into Income 1 |  | $ | — |  |  | $ | (1.5) |  |  | $ | — |  |  | $ | (4.2) |
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 and nine months ended September 30, 2023 and October 1, 2022 is as follows:
(Millions of Dollars) | Third Quarter 2023 Interest Expense |  | Year-to-Date 2023 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 | $ | 144.6 |  |  | $ | 420.1 |  |
Amortization of gain on terminated swaps | $ | (0.1) |  |  | $ | (0.3) |  |
(Millions of Dollars) | Third Quarter 2022 Interest Expense |  | Year-to-Date 2022 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 | $ | 91.7 |  |  | $ | 224.6 |
Amortization of gain on terminated swaps | $ | (0.1) |  |  | $ | (0.3) |
A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of September 30, 2023 and December 31, 2022 is as follows:
|  | September 30, 2023
(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 |  | $ | 532.7 |  |  | Terminated Swaps |  | $ | (19.8) |
|  | December 31, 2022
(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 |  | $ | 533.1 |  |  | Terminated Swaps |  | $ | (20.1) |
(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 September 30, 2023 and October 1, 2022 is as follows:
|  | Third Quarter 2023
(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 |  | $ | (0.2) |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Cross Currency Swap |  | $ | — |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Non-derivative designated as Net Investment Hedge |  | $ | 19.2 |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
|  | Year-to-Date 2023
(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 |  | $ | — |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Cross Currency Swap |  | $ | (0.1) |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Non-derivative designated as Net Investment Hedge |  | $ | 9.4 |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
|  | Third Quarter 2022
(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 |  | $ | (0.7) |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Non-derivative designated as Net Investment Hedge |  | $ | — |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
|  | Year-to-Date 2022
(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 |  | $ | 5.4 |  |  | $ | 0.6 |  |  | Other, net |  | $ | 0.7 |  |  | $ | 0.7 |
Cross Currency Swap |  | $ | (2.1) |  |  | $ | 2.5 |  |  | Other, net |  | $ | 1.5 |  |  | $ | 1.5 |
Non-derivative designated as Net Investment Hedge |  | $ | (0.1) |  |  | $ | — |  |  | Other, net |  | $ | — |  |  | $ | — |
Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The (loss) gain 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 September 30, 2023 and October 1, 2022 is as follows:
(Millions of Dollars) | Income Statement Classification |  | Third Quarter 2023 |  | Year-to-Date 2023 |  | Third Quarter 2022 |  | Year-to-Date 2022
Foreign Exchange Contracts | Other, net |  | $ | (6.9) |  |  | $ | (30.4) |  |  | $ | (4.2) |  |  | $ | 3.7 |

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