EQUITY AND LONG-TERM INCENTIVE COMPENSATION (Tables)

3 Months Ended

Mar. 30, 2019

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

Weighted-Average Shares Outstanding Used in Computation of Basic and Diluted Income per Share

The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income per share:



	Three months ended
	March 30, 2019	March 31, 2018
Weighted-average number of common shares used in basic income per share	43.618	42.772
Dilutive securities — Employee stock options and restricted stock units	1.262	1.581
Weighted-average number of common shares and dilutive securities used in diluted income per share	44.880	44.353

Schedule of PSU activity

The following table summarizes the PSU and RSU activity from December 31, 2018 through March 30, 2019:



	Unvested PSU’s and RSU’s,		Weighted-Average Grant-Date Fair Value Per Share
Outstanding at December 31, 2018	0.652		$	24.65
Granted	0.394		40.47
Vested	(0.430	)	18.26
Forfeited	(0.002	)	35.19
Outstanding at March 30, 2019	0.614		36.15

Schedule of RSU activity

The following table summarizes the PSU and RSU activity from December 31, 2018 through March 30, 2019:



	Unvested PSU’s and RSU’s,		Weighted-Average Grant-Date Fair Value Per Share
Outstanding at December 31, 2018	0.652		$	24.65
Granted	0.394		40.47
Vested	(0.430	)	18.26
Forfeited	(0.002	)	35.19
Outstanding at March 30, 2019	0.614		36.15

Stock Option Valuation Assumptions

The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions:



Annual expected stock price volatility	32.70	%
Annual expected dividend yield	—	%
Risk-free interest rate	2.53	%
Expected life of stock option (in years)	6.0

Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss)

The changes in the components of accumulated other comprehensive income, net of tax, for the three months ended March 30, 2019 were as follows:



	Foreign Currency Translation Adjustment		Net Unrealized Losses on Qualifying Cash Flow Hedges⁽¹⁾			Pension and Postretirement Liability Adjustment⁽²⁾			Total
Balance at beginning of period	$	225.8	$	(0.6	)	$	19.7		$	244.9
Other comprehensive loss before reclassifications	—		(0.1		)	—			(0.1		)
Amounts reclassified from accumulated other comprehensive income (loss)	2.4		0.2			(0.8		)	1.8
Current-period other comprehensive income (loss)	2.4		0.1			(0.8		)	1.7
Balance at end of period	$	228.2	$	(0.5	)	$	18.9		$	246.6

__________________________


⁽¹⁾	Net of tax benefit of $0.1 and $0.2 as of March 30, 2019 and December 31, 2018, respectively.


⁽²⁾	Net of tax provision of $6.4 and $6.6 as of March 30, 2019 and December 31, 2018. The balances as of March 30, 2019 and December 31, 2018 include unamortized prior service credits.

The changes in the components of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2018 were as follows:



	Foreign Currency Translation Adjustment		Net Unrealized Gains on Qualifying Cash Flow Hedges⁽¹⁾			Pension and Postretirement Liability Adjustment⁽²⁾			Total
Balance at beginning of period	$	230.2	$	0.8		$	19.1		$	250.1
Other comprehensive income (loss) before reclassifications	1.0		(0.3		)	—			0.7
Amounts reclassified from accumulated other comprehensive income:
Impact of initial adoption of ASC 606 - See Note 2			(0.3		)	—			(0.3		)
Stranded income tax effects resulting from tax reform - See Note 2	—		0.2			4.6			4.8
Commodity contracts and amortization of prior service credits - See below	—		(0.1		)	(0.7		)	(0.8		)
Current-period other comprehensive income (loss)	1.0		(0.5		)	3.9			4.4
Balance at end of period	$	231.2	$	0.3		$	23.0		$	254.5

__________________________


⁽¹⁾	Net of tax provision of $0.1 and $0.5 as of March 31, 2018 and December 31, 2017, respectively.


⁽²⁾	Net of tax provision of $7.6 and $12.5 as of March 31, 2018 and December 31, 2017. The balances as of March 31, 2018 and December 31, 2017 include unamortized prior service credits.

Schedule of Amounts Reclassified from Each Component of Other Comprehensive Income (Loss)

The following summarizes amounts reclassified from each component of accumulated comprehensive income for the three months ended March 30, 2019 and March 31, 2018:



	Amount Reclassified from AOCI
	Three months ended
	March 30, 2019			March 31, 2018			Affected Line Item in the Condensed Consolidated Statements of Operations
(Gains) losses on qualifying cash flow hedges:
Commodity contracts	$	0.3		$	(0.2	)	Cost of products sold
Swaps	—			—			Interest expense
Pre-tax	0.3			(0.2		)
Income taxes	(0.1		)	0.1
	$	0.2		$	(0.1	)

Gains on pension and postretirement items:
Amortization of unrecognized prior service credits - Pre-tax	$	(1.0	)	$	(1.0	)	Other income (expense), net
Income taxes	0.2			0.3
	$	(0.8	)	$	(0.7	)

Schedule of Changes in Equity

A summary of the changes in equity for the three months ended March 30, 2019 and March 31, 2018 is provided below:



	Three months ended
	March 30, 2019			March 31, 2018
Equity, beginning of period	$	414.9		$	314.7
Net income (loss)	(0.8		)	12.4
Net unrealized gains (losses) on qualifying cash flow hedges, net of tax (provision) benefit of $(0.1) and $0.4 for the three months ended March 30, 2019 and March 31, 2018, respectively	0.1			(0.5		)
Pension and postretirement liability adjustment, net of tax benefit of $0.2 and $4.9 for the three months ended March 30, 2019 and March 31, 2018, respectively	(0.8		)	3.9
Foreign currency translation adjustments	2.4			1.0
Total comprehensive income	0.9			16.8
Impact of initial adoption of ASC 606 - See Note 2	—			4.0
Stranded income tax effects resulting from tax reform - See Note 2	—			(4.8		)
Impact of adoption of ASU 2016-16 - See Note 2	—			(0.2		)
Incentive plan activity	3.4			3.0
Long-term incentive compensation expense	2.6			3.0
Restricted stock and restricted stock unit vesting, net of tax withholdings	(6.5		)	(3.3		)
Equity, end of period	$	415.3		$	333.2