Derivative Financial Instruments (Tables)

6 Months Ended

Jul. 02, 2016

A summary of the fair value of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at July 2, 2016 and January 2, 2016 follows:



(Millions of Dollars)	Balance Sheet Classification	July 2, 2016		January 2, 2016		Balance Sheet Classification	July 2, 2016		January 2, 2016
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	LT other assets	$	—	$	—	LT other liabilities	$	95.1	$	41.1
Interest Rate Contracts Fair Value	Other current assets	—		14.9		Accrued expenses	—		2.5
	LT other assets	—		1.4		LT other liabilities	—		5.2
Foreign Exchange Contracts Cash Flow	Other current assets	11.6		21.9		Accrued expenses	4.3		1.8
	LT other assets	4.6		3.7		LT other liabilities	0.4		—
Net Investment Hedge	Other current assets	92.3		30.3		Accrued expenses	1.5		4.8
	LT other assets	—		—		LT other liabilities	20.5		—
Total Designated		$	108.5	$	72.2		$	121.8	$	55.4
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	37.3	$	7.1	Accrued expenses	$	85.2	$	40.7
Total Undesignated		$	37.3	$	7.1		$	85.2	$	40.7

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) into Earnings for Active Derivative Financial Instruments

The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for the three and six months ended July 2, 2016 and July 4, 2015 (in millions):



Second Quarter 2016	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(22.5	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	17.5		Cost of sales	$	5.0	$	—



Year-to-Date 2016	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(54.1	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(4.4	)	Cost of sales	$	23.6	$	—



Second Quarter 2015	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	35.0		Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(3.6	)	Cost of sales	$	16.2	$	—



Year-to-Date 2015	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	19.5	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	34.4	Cost of sales	$	22.9	$	—

* Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

Fair Value Adjustments Relating to Swaps

A summary of the fair value adjustments relating to these swaps is as follows (in millions):



	Second Quarter 2016					Year-to-Date 2016
Income Statement Classification	Gain/(Loss) on Swaps*			Gain /(Loss) on Borrowings		Gain/(Loss) on Swaps*			Gain /(Loss) on Borrowings
Interest Expense	$	(28.6	)	$	29.0	$	(3.3	)	$	3.8



	Second Quarter 2015					Year-to-Date 2015
Income Statement Classification	Gain/(Loss) on Swaps*			Gain /(Loss) on Borrowings		Gain/(Loss) on Swaps*			Gain /(Loss) on Borrowings
Interest Expense	$	(18.6	)	$	18.3	$	(1.4	)	$	1.5

Details of Foreign Exchange Contracts Pre-Tax Amounts

The pre-tax gain or loss from fair value changes recorded in Accumulated other comprehensive loss was as follows (in millions):



	Second Quarter 2016						Year-to-Date 2016
Income Statement Classification	Amount Recorded in OCI Gain (Loss)		Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in OCI Gain (Loss)		Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	35.2	$	—	$	—	$	37.8	$	—	$	—



	Second Quarter 2015							Year-to-Date 2015
Income Statement Classification	Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(39.4	)	$	—	$	—	$	(2.5	)	$	—	$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The income statement impacts related to derivatives not designated as hedging instruments for the three and six months ended July 2, 2016 and July 4, 2015 are as follows (in millions):



Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Second Quarter 2016 Amount of Gain (Loss) Recorded in Income on Derivative			Year-to-Date 2016 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(31.0	)	$	(37.0	)



Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Second Quarter 2015 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2015 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	50.1	$	20.7