XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.24.3

Financial Instruments | 9 Months Ended
--- | ---
Sep. 28, 2024
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 12 in the Notes to Consolidated Financial Statements in the 2023 Form 10-K for further details regarding the Company's financial instruments and hedging policies. The following table summarizes the notional values of the Company's derivative instruments as of September 28, 2024, December 31, 2023, and September 30, 2023:
(in millions) |  | Notional Value
Instruments |  | September 28, 2024 |  | December 31, 2023 |  | September 30, 2023
Cross-currency swaps |  | $ | 300.0 |  |  | $ | 250.0 |  |  | $ | — |
Commodity contracts (A)(C) |  | 36.7 |  |  | 31.8 |  |  | 28.1 |
Foreign exchange contracts (B)(C) |  | 575.2 |  |  | 694.6 |  |  | 625.6 |
(A) Commodity contracts outstanding as of September 28, 2024 mature through 2026. (B) Forward contracts outstanding as of September 28, 2024 mature through 2026 and mainly relate to the Euro, Australian dollar, Norwegian krone and Mexican peso. (C) The amount of gain or loss that is expected to be reclassified from Accumulated other comprehensive loss to earnings in the next twelve months is immaterial. As of September 28, 2024, December 31, 2023 and September 30, 2023, the fair values of the Company’s derivative instruments were:
(in millions) |  | Fair Value
Asset Derivatives |  | September 28, 2024 |  | December 31, 2023 |  | September 30, 2023
Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |
Foreign exchange contracts |  | $ | 1.0 |  |  | $ | 4.1 |  |  | $ | 13.8 |
Commodity contracts |  | 2.1 |  |  | 0.9 |  |  | 0.4 |
Total |  | $ | 3.1 |  |  | $ | 5.0 |  |  | $ | 14.2 |
Other Hedging Activity |  |  |  |  |  |
Foreign exchange contracts |  | $ | — |  |  | $ | 0.2 |  |  | $ | 0.4 |
Liability Derivatives |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |
Foreign exchange contracts |  | $ | 8.6 |  |  | $ | 6.1 |  |  | $ | 3.3 |
Commodity contracts |  | 0.1 |  |  | 0.8 |  |  | 1.5 |
Total |  | $ | 8.7 |  |  | $ | 6.9 |  |  | $ | 4.8 |
Derivatives Designated as Net Investment Hedges |  |  |  |  |  |
Cross-currency swaps |  | $ | 7.2 |  |  | $ | 5.0 |  |  | $ | — |
Other Hedging Activity |  |  |  |  |  |
Foreign exchange contracts |  | $ | 2.8 |  |  | $ | 1.8 |  |  | $ | 0.6 |
As of September 28, 2024, December 31, 2023 and September 30, 2023, asset derivatives are included within Prepaid expenses and other and Other long-term assets, and liability derivatives are included within Accrued expenses and Other long-term liabilities in the Condensed Consolidated Balance Sheets. The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 28, 2024 and September 30, 2023 is shown in the tables below. The amount of gain (loss) on derivatives recognized in Accumulated other comprehensive loss was as follows:
(in millions) |  | Three Months Ended |  | Nine Months Ended
Derivatives Designated as Cash Flow Hedging Instruments |  | September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023
Foreign exchange contracts |  | $ | (7.5) |  |  | $ | 10.2 |  |  | $ | (2.4) |  |  | $ | 13.3 |
Commodity contracts |  | 0.6 |  |  | 0.8 |  |  | 1.1 |  |  | (2.4) |
Total |  | $ | (6.9) |  |  | $ | 11.0 |  |  | $ | (1.3) |  |  | $ | 10.9 |
Derivatives Designated as Net Investment Hedging Instruments |  |  |  |  |  |  |  |
Cross-currency swaps |  | $ | (9.0) |  |  | $ | — |  |  | $ | (2.2) |  |  | $ | — |
The amount of gain (loss) reclassified from Accumulated other comprehensive loss into earnings was as follows:
(in millions) |  |  |  |  |  |  |  | Three Months Ended |  | Nine Months Ended |  |  |  |
Derivatives Designated as Cash Flow Hedging Instruments |  | Location of Gain (Loss) |  |  |  |  |  | September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023 |  |  |  |
Interest-rate contracts |  | Interest expense |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | (0.1) |  |  |  |  |
Foreign exchange contracts |  | Cost of sales |  |  |  |  |  | (0.3) |  |  | 2.4 |  |  | 4.1 |  |  | 14.0 |  |  |  |  |
Commodity contracts |  | Cost of sales |  |  |  |  |  | (0.2) |  |  | (1.1) |  |  | (1.2) |  |  | (2.2) |  |  |  |  |
Total |  |  |  |  |  |  |  | $ | (0.5) |  |  | $ | 1.3 |  |  | $ | 3.0 |  |  | $ | 11.7 |  |  |  |  |
The amount of gain (loss) on derivatives recognized directly into earnings was as follows:
(in millions) |  |  |  |  |  |  |  | Three Months Ended |  | Nine Months Ended |  |  |  |
Derivatives Designated as Fair Value Hedging Instruments |  | Location of Gain (Loss) |  |  |  |  |  | September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023 |  |  |  |
Interest-rate contracts |  | Interest expense |  |  |  |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.4 |  |  |  |  |
Other Hedging Activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Cost of sales |  |  |  |  |  | $ | (2.3) |  |  | $ | 1.6 |  |  | $ | 1.2 |  |  | $ | (0.6) |  |  |  |  |
Foreign exchange contracts |  | Other (expense) income, net |  |  |  |  |  | (0.2) |  |  | (2.4) |  |  | (5.1) |  |  | (2.9) |  |  |  |  |
Total |  |  |  |  |  |  |  | $ | (2.5) |  |  | $ | (0.8) |  |  | $ | (3.9) |  |  | $ | (3.5) |  |  |  |  |
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. As of September 28, 2024, December 31, 2023 and September 30, 2023, the fair value of the Company’s long-term debt, including current maturities, and short-term debt was approximately $2,462.8 million, $2,228.2 million and $2,102.3 million, respectively, and was determined using Level 1 and Level 2 inputs described in Note 6 to the Notes to Consolidated Financial Statements in the 2023 Form 10-K. The carrying value of long-term debt, including current maturities, and short-term debt was $2,602.3 million, $2,458.7 million and $2,460.5 million as of September 28, 2024, December 31, 2023 and September 30, 2023, 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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration