XML 36 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Investments
 6 Months Ended
Jun. 27, 2020
Investments [Abstract]  
Investments INVESTMENTS

The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):
Measurement Category
 
Balance Sheet Location
 
June 27,
2020
 
December 31,
2019
Fair value method
 
Prepaid expenses and other current assets
 
$
4.1

 
$
6.6

Fair value method(1)
 
Other non-current assets
 
$
2.3

 
$
2.3

Equity method
 
Other non-current assets
 
$
70.5

 
$
17.8


(1)
Measured at fair value using the Net Asset Value practical expedient.

The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):
 
 
 
 
Three Months Ended
Six Months Ended
Measurement Category
 
Income Statement Location
 
June 27,
2020
 
June 29,
2019
June 27,
2020
 
June 29,
2019
Fair value method
 
Other (income) expense, net
 
$
(0.4
)
 
$
1.8

$
2.5

 
$
7.9

Equity method
 
Other (income) expense, net
 
$
(0.8
)
 
$
(1.0
)
$
(1.5
)
 
$
(1.7
)

    
On June 17, 2020, we announced our entrance into the cannabidiol (“CBD”) market through a strategic investment in and long-term supply agreement with Kazmira LLC ("Kazmira"), a leading supplier of hemp-based CBD products free of tetrahydrocannabinol (“THC-free”) based in Watkins, Colorado. In addition to the supply agreement, we acquired an approximate 20% equity stake in Kazmira for $50.0 million with $15.0 million paid at close of the transaction and the balance due within 18 months thereafter. Our minority equity investment initiates the first phase of the partnership in which we will collaborate to scale-up Kazmira’s facilities and laboratories, in accordance with current Good Manufacturing Practices, to produce THC-free CBD from industrial hemp that meets our standards for reliability and consistency. In the second phase of the partnership, we will work to launch THC-free hemp-based CBD products in a number of global markets, while leveraging our supply agreement with Kazmira, which is exclusive for the U.S. store brand market. We will report our equity method earnings from Kazmira in our Condensed Consolidated Financial Statements on a quarterly lag.