On January 1, 2019, we adopted Accounting Standards Update No. 2017-12 Targeted Improvements to Accounting for Hedge Activities ("ASU 2017-12") using a modified retrospective approach. Among other provisions, the new standard required modifications to existing presentation and disclosure requirements on a prospective basis. As such, certain disclosures for the three and six months ended June 30, 2018 below conform to the disclosure requirements prior to the adoption of ASU 2017-12.

Prior to the adoption of ASU 2017-12, we were required to separately measure and reflect the amount by which the hedging instrument did not offset the changes in the fair value or cash flows of hedged items, which was referred to as the ineffective amount. We assessed hedge effectiveness on a quarterly basis and recorded the gain or loss related to the ineffective portion of derivative instruments, if any, in Other (income) expense, net on the Condensed Consolidated Statements of Operations. Pursuant to the provisions of ASU 2017-12, we are no longer required to separately measure and recognize hedge ineffectiveness. Therefore, we no longer recognize hedge ineffectiveness separately on our Condensed Consolidated Statements of Income, but instead recognize the entire change in the fair value of:

recognized all changes in fair value of the excluded components in Other (income) expense, net, on the Condensed Consolidated Statements of Operations. The amendments in ASU 2017-12 continue to allow those components to be excluded from the assessment of hedge effectiveness and add cross-currency basis spread as an allowable excluded component. The provisions of ASU 2017-12 allow a policy election to either continue to recognize changes in the fair value of the excluded components currently in earnings or to recognize the initial value of the excluded component using an amortization approach. We have elected to recognize the initial value of the excluded component on a straight-line basis over the life of the derivative instrument, within the same line item on the Condensed Consolidated Statements of Operations that is used to present the earnings effect of the hedged item. The cumulative effect adjustment between Accumulated Other Comprehensive Income ("AOCI") and Retained earnings (accumulated deficit) from applying this policy on existing hedges at the date of adoption was immaterial.

We record derivative instruments on the balance sheet on a gross basis as either an asset or liability measured at fair value (refer to Note 6). Additionally, changes in a derivative's fair value, which are measured at the end of each period, are recognized in earnings unless a derivative can be designated in a qualifying hedging relationship.

Designated derivatives meet hedge accounting criteria, which means the fair value of the hedge is recorded in shareholders’ equity as a component of OCI, net of tax. The deferred gains and losses are recognized in income in the period in which the hedged item affects earnings. We have elected to recognize the fair value of the excluded component in OCI and amortize on a straight-line basis over the life of the derivative instrument, within the same line item on the Condensed Consolidated Statements of Operations that is used to present the earnings effect of the hedged item. All of our designated derivatives are assessed for hedge effectiveness quarterly. All of our designated derivatives were classified as cash flow hedges as of June 29, 2019 and December 31, 2018.

We also have economic non-designated derivatives that do not meet hedge accounting criteria. These derivative instruments are adjusted to current market value at the end of each period through earnings. Gains or losses on these instruments are offset substantially by the remeasurement adjustment on the hedged item.

We are exposed to credit loss in the event of nonperformance by the counterparties on derivative contracts. It is our policy to manage our credit risk on these transactions by dealing only with financial institutions having a long-term credit rating of "Aa3" or better and by distributing the contracts among several financial institutions to diversify credit concentration risk. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. The maximum term of our forward currency exchange contracts is 18 months.

Interest rate risk management - We are exposed to the impact of interest rate changes through our cash investments and borrowings. We utilize a variety of strategies to manage the impact of changes in interest rates including using a mix of debt maturities along with both fixed-rate and variable-rate debt. In addition, we may enter into treasury-lock agreements and interest rate swap agreements on certain investing and borrowing transactions to manage our exposure to interest rate changes and our overall cost of borrowing.

Foreign currency exchange risk management - We conduct business in several major currencies other than the U.S. dollar and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce cash flow volatility associated with foreign exchange rate changes on a consolidated basis to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments, and anticipated foreign currency sales and expenses.

All derivative instruments are managed on a consolidated basis to efficiently net exposures and thus take advantage of any natural offsets. Gains and losses related to the derivative instruments are expected to be offset largely by gains and losses on the original underlying asset or liability. We do not use derivative financial instruments for speculative purposes.

Interest rate swap agreements are contracts to exchange floating rate for fixed rate payments (or vice versa) over the life of the agreement without the exchange of the underlying notional amounts. The notional amounts of the interest rate swap agreements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. There were no active designated or non-designated interest rate swaps as of June 29, 2019 and December 31, 2018.



	Notional Amount
	June 29, 2019		December 31, 2018
Israeli Shekel (ILS)	$	340.6	$	232.6
British Pound (GBP)	111.0		90.2
European Euro (EUR)	108.0		134.2
Swedish (SEK)	42.2		38.7
Danish Krone (DKK)	58.2		56.5
United States Dollar (USD)	46.2		39.3
Canadian Dollar (CAD)	41.9		31.7
Polish Zloty (PLZ)	33.5		18.2
Chinese Yuan (CNY)	20.0		—
Norwegian Krone (NOK)	6.8		6.2
Romanian New Leu (RON)	5.9		4.4
Mexican Peso (MPX)	4.2		25.9
Other	12.6		8.7
Total	$	831.1	$	686.6



		Asset Derivatives
		Fair Value
	Balance Sheet Location	June 29, 2019		December 31, 2018
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1.0	$	2.0
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	3.0	$	1.8



		Liability Derivatives
		Fair Value
	Balance Sheet Location	June 29, 2019		December 31, 2018
Designated derivatives:
Foreign currency forward contracts	Accrued liabilities	$	2.6	$	6.4
Non-designated derivatives:
Foreign currency forward contracts	Accrued liabilities	$	1.0	$	2.8



	Three Months Ended
	June 29, 2019
Instrument	Amount of Gain/(Loss) Recorded in OCI		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Interest rate swap agreements			Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	$	1.1	Net sales	0.1			Net sales	0.1
			Cost of sales	(0.2		)	Cost of sales	(1.1		)
				$	(0.5	)		$	(1.0	)



	Six Months Ended
	June 29, 2019
Instrument	Amount of Gain/(Loss) Recorded in OCI⁽¹⁾		Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Interest rate swap agreements			Interest expense, net	$	(1.0	)	Interest expense, net	$	—
Foreign currency forward contracts	$	—	Net sales	0.3			Net sales	—
			Cost of sales	(1.4		)	Cost of sales	(2.2		)
				$	(2.1	)		$	(2.2	)



	Three Months Ended
	June 30, 2018
	Effective Portion
Instrument	Amount of Gain/(Loss) Recorded in OCI			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings
Interest rate swap agreements				Interest expense, net	$	(0.4	)
Foreign currency forward contracts	$	(4.3	)	Net sales	—
				Cost of sales	1.6
				Interest expense, net	(1.1		)
				Other (income) expense, net	(0.1		)
					$	—



	Six Months Ended
	June 30, 2018
	Effective Portion
Instrument	Amount of Gain/(Loss) Recorded in OCI			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings
Interest rate swap agreements				Interest expense, net	$	(0.9	)
Foreign currency forward contracts	$	(4.3	)	Net sales	—
				Cost of sales	3.9
				Interest expense, net	(2.0		)
				Other (income) expense, net	(0.5		)
					$	0.5



		Three Months Ended					Six Months Ended
Non-Designated Derivatives	Income Statement Location	June 29, 2019			June 30, 2018		June 29, 2019			June 30, 2018
Foreign currency forward contracts	Other (income) expense, net	$	(4.3	)	$	11.8	$	(13.1	)	$	8.6
	Interest expense, net	1.4			0.2		1.8			(0.7		)
Total		$	(2.9	)	$	12.0	$	(11.3	)	$	7.9

The impact of gains and losses on foreign exchange contracts not designated as hedging instruments related to changes in the fair value of assets and liabilities denominated in foreign currencies are generally offset by net foreign exchange gains and losses, which are also included on the Condensed Consolidated Statements of Operations in Other (income) expense, net for all periods presented. When we enter into foreign exchange contracts not designated as hedging instruments to mitigate the impact of exchange rate volatility in the translation of foreign earnings, gains and losses will generally be offset by fluctuations in the U.S. Dollar-translated amounts of each Income Statement account in current and/or future periods.



	Three Months Ended
	June 29, 2019
	Net Sales		Cost of Sales			Interest Expense, net			Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	1,149.0	$	718.2		$	31.2		$	2.3

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.1	$	(0.2	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	0.1	$	(1.1	)	$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—		$	(0.4	)	$	—



	Six Months Ended
	June 29, 2019
	Net Sales		Cost of Sales			Interest Expense, net			Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	2,323.5	$	1,443.9		$	59.8		$	5.5

The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.3	$	(1.4	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	—	$	(2.2	)	$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—	$	—		$	(1.0	)	$	—