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Derivative Instruments and Hedging Activities
 3 Months Ended
Apr. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES     
Foreign Currency Option Contracts

In September of 2021, to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated purchase price for HRA Pharma, we entered into two non-designated currency option contracts with a total notional amount of $1.1 billion that were scheduled to mature in the third quarter of 2022. We recorded a loss of $3.5 million for the change in fair value of the option contracts during the three months ended April 2, 2022 in Other (income) expense, net. These options and other economic hedging activity using options were settled subsequent to April 2, 2022 in connection with the closing of the acquisition of HRA Pharma on April 29, 2022 (refer to Note 18).

Cross-currency Swaps

On August 15, 2019, we entered into a cross-currency swap designated as a net investment hedge to hedge the EUR currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate Euro payments for floating-rate U.S. dollar payments through August 15, 2022. We terminated this cross-currency swap on January 28, 2022.

Interest Rate Swaps

There were no active designated or non-designated interest rate swaps as of April 2, 2022 or December 31, 2021.

Foreign Currency Forwards

Foreign currency forward contracts were as follows (in millions):
Notional Amount
April 2,
2022		December 31,
2021
European Euro (EUR)$192.4 $232.6 
British Pound (GBP)161.2 135.8 
Danish Krone (DKK)53.2 37.5 
Swedish Krona (SEK)50.1 47.8 
Chinese Yuan (CNH)44.5 37.7 
Canadian Dollar (CAD)27.3 29.0 
Mexican Peso (MXN)18.8 1.0 
United States Dollar (USD)18.3 22.9 
Polish Zloty (PLZ)14.1 21.0 
Norwegian Krone (NOK)9.3 11.0 
Brazilian Real (BRL)6.8 — 
Turkish Lira (TRY)3.4 3.1 
Romanian New Leu (RON)2.7 1.6 
Australian Dollar (AUD)2.2 1.6 
Switzerland Franc (CHF)2.0 1.9 
Other6.7 3.6 
Total$613.0 $588.1 

The maximum term of our forward currency exchange contracts is 60 months.
Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects.

The balance sheet location and gross fair value of our derivative instruments were as follows (in millions):
Asset Derivatives
Fair Value
Balance Sheet LocationApril 2,
2022		December 31,
2021
Designated derivatives:
Foreign currency forward contractsPrepaid expenses and other current assets$2.1 $3.5 
Foreign currency forward contractsOther non-current assets0.8 1.3 
Total designated derivatives$2.9 $4.8 
Non-designated derivatives:
Foreign currency forward contractsPrepaid expenses and other current assets$1.4 $0.9 
Foreign currency optionsPrepaid expenses and other current assets1.5 5.0 
Total non-designated derivatives$2.9 $5.9 

Liability Derivatives
Fair Value
Balance Sheet LocationApril 2,
2022		December 31,
2021
Designated derivatives:
Foreign currency forward contractsOther accrued liabilities$2.0 $1.2 
Cross-currency swapOther accrued liabilities— 13.8 
Total designated derivatives$2.0 $15.0 
Non-designated derivatives:
Foreign currency forward contractsOther accrued liabilities$1.4 $1.2 

The following tables summarize the effect of derivative instruments designated as hedging instruments in Accumulated Other Comprehensive Income ("AOCI") (in millions):
Three Months Ended
April 2, 2022
InstrumentAmount of Gain/(Loss) Recorded in OCIClassification of Gain/(Loss) Reclassified from AOCI into EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements$— Interest expense, net$(0.5)Interest expense, net$— 
Foreign currency forward contracts(7.2)Net sales0.3 Net sales— 
Cost of sales(0.4)Cost of sales0.1 
Other (income) expense, net0.1 
$(7.2)$(0.6)$0.2 
Net investment hedges:
Cross-currency swap$(4.6)Interest expense, net$(0.5)

(1) Net loss of $6.3 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

Three Months Ended
April 3, 2021
InstrumentAmount of Gain/(Loss) Recorded in OCIClassification of Gain/(Loss) Reclassified from AOCI into EarningsAmount of Gain/(Loss) Reclassified from AOCI into EarningsClassification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness TestingAmount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements$— Interest expense, net$(0.5)Interest expense, net$— 
Foreign currency forward contracts1.7 Net sales(0.9)Net sales— 
Cost of sales(1.4)Cost of sales0.1 
Other (income) expense, net(0.1)
$1.7 $(2.8)$— 
Net investment hedges:
Cross-currency swap$(0.5)Interest expense, net$1.0 
The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Condensed Consolidated Statements of Operations were as follows (in millions):

Three Months Ended
Non-Designated DerivativesIncome Statement
Location		April 2,
2022		April 3,
2021
Foreign currency forward contractsOther (income) expense, net$0.5 $(4.8)
Interest expense, net(0.4)1.2 
$0.1 $(3.6)
Foreign currency optionsOther (income) expense, net$3.5 $— 

The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions):

Three Months Ended
April 2, 2022
Net SalesCost of SalesInterest Expense, netOther (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
$1,074.5 $736.7 $35.8 $(1.1)
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 $(0.4)$— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$— $0.1 $— $0.1 
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings$— $— $(0.5)$— 
Three Months Ended
April 3, 2021
Net SalesCost of SalesInterest Expense, netOther (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
$1,010.0 $641.6 $32.0 $2.4 
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings$(0.9)$(1.4)$— $— 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach$— $0.1 $— $(0.1)
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings$— $— $(0.5)$—