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Financial Instruments | 9 Months Ended
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Sep. 28, 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 September 28, 2019, December 31, 2018 and September 29, 2018 had notional contract values of $309.8 million, $308.9 million and $249.4 million, respectively. Option contracts outstanding at September 28, 2019, December 31, 2018 and September 29, 2018 had notional contract values of $17.8 million, $27.2 million and $27.2 million, respectively. The forward contracts outstanding at September 28, 2019 mature through 2021 and mainly relate to the Euro, Australian dollar, Japanese yen and Canadian dollar. As of September 28, 2019, the Company estimates that during the next 12 months, it will reclassify approximately $8.8 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 its long-term debt from fixed to floating rate debt. In the third quarter of 2019, the Company retired its Senior notes due 2021 and settled the associated interest rate swaps. As of September 28, 2019, the remaining outstanding swaps had a notional contract value of $50.0 million corresponding to the Company's 7.375 percent Debentures due 2023. As of December 31, 2018 and September 29, 2018, the outstanding swaps had a total notional contract value of $200.0 million, of which $150.0 million corresponded to the Company's 4.625 percent Senior notes due 2021 and $50.0 million corresponded 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 September 28, 2019, December 31, 2018 and September 29, 2018, the Company had $2.1 million, $2.5 million and $2.7 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 September 28, 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 September 28, 2019, December 31, 2018 and September 29, 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
|  |  |  | Sep 28, 2019 |  | Dec 31, 2018 |  | Sep 29, 2018 |  |  |  | Sep 28, 2019 |  | Dec 31, 2018 |  | Sep 29, 2018
Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 9.0 |  |  | $ | 6.8 |  |  | $ | 3.8 |  |  | Accrued expenses |  | $ | 1.3 |  |  | $ | 0.3 |  |  | $ | 0.4 |
Derivatives Designated as Fair Value Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Prepaid expenses and other |  | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 0.0 |  |  | Accrued expenses |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |
Interest rate contracts |  | Other long-term assets |  | 2.2 |  |  | — |  |  | — |  |  | Other long-term liabilities |  | — |  |  | 1.8 |  |  | 4.0 |
Total |  |  |  | $ | 2.2 |  |  | $ | 0.0 |  |  | $ | 0.0 |  |  |  |  | $ | — |  |  | $ | 1.9 |  |  | $ | 4.1 |
Other Hedging Activity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 0.5 |  |  | $ | 0.8 |  |  | $ | 0.8 |  |  | Accrued expenses |  | $ | 0.5 |  |  | $ | 0.0 |  |  | $ | 0.4 |
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months and nine months ended September 28, 2019 and September 29, 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
|  | Three Months Ended |  | Nine Months Ended |  |  |  | Three Months Ended |  | Nine Months Ended
|  | Sep 28, 2019 |  | Sep 29, 2018 |  | Sep 28, 2019 |  | Sep 29, 2018 |  |  |  | Sep 28, 2019 |  | Sep 29, 2018 |  | Sep 28, 2019 |  | Sep 29, 2018
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Interest expense |  | $ | (0.1 | ) |  | $ | (0.2 | ) |  | $ | (0.4 | ) |  | $ | (0.7 | )
Foreign exchange contracts |  | 7.8 |  |  | 1.5 |  |  | 8.8 |  |  | 6.8 |  |  | Cost of sales |  | 2.6 |  |  | 0.9 |  |  | 8.0 |  |  | (2.5 | )
Total |  | $ | 7.8 |  |  | $ | 1.5 |  |  | $ | 8.8 |  |  | $ | 6.8 |  |  |  |  | $ | 2.5 |  |  | $ | 0.7 |  |  | $ | 7.6 |  |  | $ | (3.2 | )
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
|  |  |  | Three Months Ended |  | Nine Months Ended
|  |  |  | Sep 28, 2019 |  | Sep 29, 2018 |  | Sep 28, 2019 |  | Sep 29, 2018
Interest rate contracts |  | Interest expense |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 0.1 |
Other Hedging Activity |  | Location of Gain (Loss) on Derivatives Recognized in Earnings |  | Amount of Gain (Loss) on Derivatives Recognized in Earnings
|  |  |  | Three Months Ended |  | Nine Months Ended
|  |  |  | Sep 28, 2019 |  | Sep 29, 2018 |  | Sep 28, 2019 |  | Sep 29, 2018
Foreign exchange contracts |  | Cost of sales |  | $ | 3.2 |  |  | $ | (0.1 | ) |  | $ | 3.9 |  |  | $ | 5.6 |
Foreign exchange contracts |  | Other expense, net |  | (1.3 | ) |  | 0.1 |  |  | (0.7 | ) |  | 0.8 |
Total |  |  |  | $ | 1.9 |  |  | $ | — |  |  | $ | 3.2 |  |  | $ | 6.4 |
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 September 28, 2019, December 31, 2018 and September 29, 2018, the fair value of the Company’s long-term debt was approximately $1,233.9 million, $1,292.9 million and $1,279.8 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 short-term debt and current maturities of long-term debt, was $1,151.8 million, $1,226.4 million and $1,238.3 million as of September 28, 2019, December 31, 2018 and September 29, 2018, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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