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DERIVATIVE FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 26, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments are commodity price risk, currency exchange risk, and interest rate risk. Forward contracts on certain commodities are entered into to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. Forward contracts on certain currencies are entered into to manage forecasted cash flows in certain foreign currencies. Interest rate swaps are utilized to manage interest rate risk associated with the Company's floating rate borrowings.
The Company is exposed to credit losses in the event of non-performance by the counterparties to various financial agreements, including its commodity hedging transactions, foreign currency exchange contracts and interest rate swap agreements. Exposure to counterparty credit risk is managed by limiting counterparties to major international banks and financial institutions meeting established credit guidelines and continually monitoring their compliance with the credit guidelines. The Company does not obtain collateral or other security to support financial instruments subject to credit risk. The Company does not anticipate non-performance by its counterparties, but cannot provide assurances.
The Company recognizes all derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. The Company designates commodity forward contracts as cash flow hedges of forecasted purchases of commodities, currency forward contracts as cash flow hedges of forecasted foreign currency cash flows and interest rate swaps as cash flow hedges of forecasted LIBOR-based interest payments. There were no significant collateral deposits on derivative financial instruments as of September 26, 2020 or September 28, 2019.
Cash Flow Hedges
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into the same line within the Condensed Consolidated Statement of Income as the earnings effect of the hedged item in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or changes in market value of derivatives not designated as hedges are recognized in current earnings.
At September 26, 2020, the Company had $(0.5) million, net of tax, of derivative losses on closed hedge instruments in AOCI that will be realized in earnings when the hedged items impact earnings. At December 28, 2019, the Company had $1.3 million, net of tax, of derivative gains on closed hedge instruments in AOCI that was subsequently realized in earnings when the hedged items impacted earnings.
As of September 26, 2020, the Company had the following currency forward contracts outstanding (with maturities extending through June 2022) to hedge forecasted foreign currency cash flows (in millions):
 Notional Amount (in US Dollars)
Chinese Renminbi$55.6 
Mexican Peso110.8 
Euro148.6 
Indian Rupee32.2 
Canadian Dollar2.4 
Australian Dollar16.7 
British Pound17.9 
Thai Baht6.2 

As of September 26, 2020, the Company had the following commodity forward contracts outstanding (with maturities extending through December 2021) to hedge forecasted purchases of commodities (notional amounts expressed in terms of the dollar value of the hedged item (in millions)):
 Notional Amount
Copper$38.9 
Aluminum3.2 
As of September 26, 2020, the total notional amount of the Company's receive variable/pay-fixed interest rate swap was $88.4 million with a maturity of April 12, 2021.
The Company entered into two receive variable/pay-fixed forward starting non-amortizing interest rate swaps in June 2020, with a total notional amount of $250.0 million. These swaps become effective July 2021 and will expire in July 2025.

The following table presents the fair values of derivative instruments as of September 26, 2020 and December 28, 2019 (in millions):
 September 26, 2020
 Prepaid Expenses and Other Current AssetsOther Noncurrent AssetsCurrent Hedging ObligationsNoncurrent Hedging Obligations
Designated as Hedging Instruments:
Interest Rate Swap Contracts$— $— $1.2 $2.0 
Currency Contracts9.7 1.0 6.8 0.3 
Commodity Contracts6.8 — — — 
Not Designated as Hedging Instruments:
Currency Contracts0.1 — — — 
Total Derivatives$16.6 $1.0 $8.0 $2.3 
 December 28, 2019
 Prepaid Expenses and Other Current AssetsOther Noncurrent AssetsCurrent Hedging ObligationsNoncurrent Hedging Obligations
Designated as Hedging Instruments:
Interest Rate Swap Contracts$— $— $— $1.0 
Currency Contracts8.8 10.3 3.0 0.2 
Commodity Contracts2.6 0.1 0.2 — 
Not Designated as Hedging Instruments:
Currency Contracts0.1 — 0.1 — 
Commodity Contracts— — 0.1 — 
Total Derivatives$11.5 $10.4 $3.4 $1.2 
The following table presents the effect of derivative instruments on the Condensed Consolidated Statements of Income and Condensed Consolidated Statement of Comprehensive Income (pre-tax) (in millions):
Derivatives Designated as Cash Flow Hedging Instruments
Three Months Ended
September 26, 2020September 28, 2019
Commodity ForwardsCurrency ForwardsInterest Rate SwapsTotalCommodity ForwardsCurrency ForwardsInterest Rate SwapsTotal
Gain (Loss) Recognized in Other Comprehensive Income (Loss)$5.8 $2.4 $(0.3)$7.9 $(3.9)$(3.2)$0.6 $(6.5)
Amounts Reclassified from Other Comprehensive Income (Loss):
Gain recognized in Net Sales— — — — — 0.1 — 0.1 
Gain (Loss) Recognized in Cost of Sales(0.4)(4.9)— (5.3)(1.8)2.0 — 0.2 
Gain (Loss) Recognized in Operating Expenses— (3.1)— (3.1)— 3.2 — 3.2 
Gain Recognized in Interest Expense— — 0.2 0.2 — — 0.7 0.7 
Nine Months Ended
September 26, 2020September 28, 2019
Commodity ForwardsCurrency ForwardsInterest Rate SwapsTotalCommodity ForwardsCurrency ForwardsInterest Rate SwapsTotal
Gain (Loss) Recognized in Other Comprehensive Income (Loss)$5.1 $(19.9)$(1.4)$(16.2)$(3.3)$8.5 $0.6 $5.8 
Amounts Reclassified from Other Comprehensive Income (Loss):
Gain Recognized in Net Sales— — — — — 0.3 — 0.3 
Gain (Loss) Recognized in Cost of Sales(2.4)(2.1)— (4.5)(5.4)3.8 — (1.6)
Gain (Loss) Recognized in Operating Expenses— (4.0)— (4.0)— 3.6 — 3.6 
Gain Recognized in Interest Expense— — 0.8 0.8 — — 1.9 1.9 
Derivatives Not Designated as Cash Flow Hedging Instruments (in millions):
Three Months Ended
September 26, 2020September 28, 2019
Commodity ForwardsCurrency ForwardsCommodity ForwardsCurrency Forwards
Gain recognized in Cost of Sales$0.1 $— $— $— 
Gain (Loss) recognized in Operating Expenses$— $(2.4)$— $0.6 
Nine Months Ended
September 26, 2020September 28, 2019
Commodity ForwardsCurrency ForwardsCommodity ForwardsCurrency Forwards
Gain recognized in Cost of Sales$0.1 $0.1 $— 
Gain (Loss) recognized in Operating Expenses$— $(3.7)$— $0.1 
The net AOCI hedging component balance of a $1.5 million gain at September 26, 2020 includes $4.0 million of net current deferred gain expected to be realized in the next twelve months. The gain/loss reclassified from AOCI into earnings on such derivatives will be recognized in the same period in which the related item affects earnings.
The Company's commodity and currency derivative contracts are subject to master netting agreements with the respective counterparties which allow the Company to net settle transactions with a single net amount payable by one party to another party. The Company has elected to present the derivative assets and derivative liabilities on the Condensed Consolidated Balance Sheets on a gross basis for the periods ended September 26, 2020 and December 28, 2019.
The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions):
September 26, 2020
Gross Amounts as Presented in the Condensed Consolidated Balance SheetDerivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts$9.8 $(3.5)$6.3 
Derivative Commodity Contracts6.8 — 6.8 
Other Noncurrent Assets:
Derivative Currency Contracts1.0 (0.1)0.9 
Current Hedging Obligations:
Derivative Currency Contracts6.8 (3.5)3.3 
Noncurrent Hedging Obligations:
Derivative Currency Contracts0.3 (0.1)0.2 
December 28, 2019
Gross Amounts as Presented in the Condensed Consolidated Balance SheetDerivative Contract Amounts Subject to Right of OffsetDerivative Contracts as Presented on a Net Basis
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts$8.9 $(2.5)$6.4 
Derivative Commodity Contracts2.6 (0.3)2.3 
Other Noncurrent Assets:
Derivative Currency Contracts10.3 (0.1)10.2 
Derivative Commodity Contracts0.1 — 0.1 
Current Hedging Obligations:
Derivative Currency Contracts3.1 (2.5)0.6 
Derivative Commodity Contracts0.3 (0.3)— 
Noncurrent Hedging Obligations:
Derivative Currency Contracts0.2 (0.1)0.1