XML 33 R12.htm IDEA: XBRL DOCUMENT
v3.19.1

Financial Instruments | 3 Months Ended
--- | ---
Mar. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments | Financial Instruments The Company operates globally with manufacturing and sales facilities around the world. Due to the Company’s global operations, the Company engages in activities involving both financial and market risks. The Company utilizes normal operating and financing activities, along with derivative financial instruments, to minimize these risks. See Note 15 in the Notes to Consolidated Financial Statements in the 2018 Form 10-K for further details regarding the Company's financial instruments and hedging policies. Foreign Currency Derivatives. Forward exchange contracts outstanding at March 30, 2019, December 31, 2018 and March 31, 2018 had notional contract values of $493.8 million, $424.1 million and $436.0 million, respectively. There were no option contracts outstanding at March 30, 2019. Option contracts outstanding at December 31, 2018 and March 31, 2018 had notional contract values of $27.2 million and $18.0 million, respectively. The forward contracts outstanding at March 30, 2019 mature through 2020 and mainly relate to the Euro, Japanese yen, Canadian dollar and Australian dollar. As of March 30, 2019, the Company estimates that during the next 12 months, it will reclassify approximately $6.8 million of net gains (based on current rates) from Accumulated other comprehensive loss to Cost of sales. Interest Rate Derivatives. The Company enters into fixed-to-floating interest rate swaps to convert a portion of the Company's long-term debt from fixed to floating rate debt. As of March 30, 2019, December 31, 2018 and March 31, 2018, the outstanding swaps had notional contract values of $200.0 million, of which $150.0 million corresponds to the Company's 4.625 percent Senior notes due 2021 and $50.0 million corresponds to the Company's 7.375 percent Debentures due 2023. These instruments have been designated as fair value hedges, with the fair value recorded in long-term debt. As of March 30, 2019, December 31, 2018 and March 31, 2018, the Company had $2.4 million, $2.5 million and $3.2 million, respectively, of net deferred losses associated with all settled forward-starting interest rate swaps, which were designated as cash flow hedges with gains and losses included in Accumulated other comprehensive loss. As of March 30, 2019, the Company estimates that during the next 12 months, it will reclassify approximately $0.6 million of net losses resulting from settled forward-starting interest rate swaps from Accumulated other comprehensive loss to Interest expense. As of March 30, 2019, December 31, 2018 and March 31, 2018, the fair values of the Company’s derivative instruments were:
(in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | Derivative Assets |  | Derivative Liabilities
Instrument |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
|  |  |  | Mar 30, 2019 |  | Dec 31, 2018 |  | Mar 31, 2018 |  |  |  | Mar 30, 2019 |  | Dec 31, 2018 |  | Mar 31, 2018
Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 6.9 |  |  | $ | 8.1 |  |  | $ | 2.8 |  |  | Accrued expenses |  | $ | 1.0 |  |  | $ | 1.1 |  |  | $ | 5.8 |
Derivatives Designated as Fair Value Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Prepaid expenses and other |  | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 2.9 |  |  | Accrued expenses |  | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 2.6 |
Interest rate contracts |  | Other long-term assets |  | 0.9 |  |  | — |  |  | — |  |  | Other long-term liabilities |  | 0.4 |  |  | 1.8 |  |  | 2.8 |
Total |  |  |  | $ | 0.9 |  |  | $ | 0.0 |  |  | $ | 2.9 |  |  |  |  | $ | 0.6 |  |  | $ | 1.9 |  |  | $ | 5.4 |
Other Hedging Activity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 1.3 |  |  | $ | 1.0 |  |  | $ | 0.4 |  |  | Accrued expenses |  | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 0.5 |
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 30, 2019 and March 31, 2018 was:
(in millions) |  |  |  |  |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedging Instruments |  | Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings
|  | Mar 30, 2019 |  | Mar 31, 2018 |  |  |  | Mar 30, 2019 |  | Mar 31, 2018
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | Interest expense |  | $ | (0.1 | ) |  | $ | (0.3 | )
Foreign exchange contracts |  | 1.5 |  |  | (3.6 | ) |  | Cost of sales |  | 2.8 |  |  | (2.6 | )
Total |  | $ | 1.5 |  |  | $ | (3.6 | ) |  |  |  | $ | 2.7 |  |  | $ | (2.9 | )
Derivatives Designated as Fair Value Hedging Instruments |  | Location of Gain (Loss) on Derivatives Recognized in Earnings |  | Amount of Gain (Loss) on Derivatives Recognized in Earnings
|  |  |  | Mar 30, 2019 |  | Mar 31, 2018
Interest rate contracts |  | Interest expense |  | $ | (0.1 | ) |  | $ | 0.2 |
Other Hedging Activity |  | Location of Gain (Loss) on Derivatives Recognized in Earnings |  | Amount of Gain (Loss) on Derivatives Recognized in Earnings
|  |  |  | Mar 30, 2019 |  | Mar 31, 2018
Foreign exchange contracts |  | Cost of sales |  | $ | 1.3 |  |  | $ | (3.7 | )
Foreign exchange contracts |  | Other expense, net |  | 0.0 |  |  | (1.1 | )
Total |  |  |  | $ | 1.3 |  |  | $ | (4.8 | )
Fair Value of Other Financial Instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents and accounts and notes receivable approximate their fair values because of the short maturity of these instruments. At March 30, 2019, December 31, 2018 and March 31, 2018, the fair value of the Company’s long-term debt was approximately $1,363.0 million, $1,292.9 million and $497.6 million, respectively, and was determined using Level 1 and Level 2 inputs described in Note 8 to the Notes to Consolidated Financial Statements in the 2018 Form 10-K. The carrying value of long-term debt, including current maturities, was $1,310.1 million, $1,226.4 million and $438.8 million as of March 30, 2019, December 31, 2018 and March 31, 2018, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration