Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2018

Notes To Financial Statements [Abstract]

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at September 29, 2018 and December 30, 2017 is as follows:



(Millions of Dollars)	Balance Sheet Classification	September 29, 2018		December 30, 2017		Balance Sheet Classification	September 29, 2018		December 30, 2017
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	1.2	$	—	Accrued expenses	$	24.7	$	55.7
Foreign Exchange Contracts Cash Flow	Other current assets	7.4		4.1		Accrued expenses	4.0		33.4
	LT other assets	0.5		—		LT other liabilities	0.6		5.2
Net Investment Hedge	Other current assets	10.1		6.6		Accrued expenses	3.5		7.0
	LT other assets	—		—		LT other liabilities	12.6		5.8
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	932.3		—
Total designated as hedging		$	19.2	$	10.7		$	977.7	$	107.1
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	9.4	$	7.3	Accrued expenses	$	12.5	$	6.9
Total		$	28.6	$	18.0		$	990.2	$	114.0

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 of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for the three and nine months ended September 29, 2018 and September 30, 2017:



	Third Quarter 2018
(Millions of dollars)	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	10.4		Interest expense	$	—		$	—
Foreign Exchange Contracts	$	(2.0	)	Cost of sales	$	(4.6	)	$	—



	Year-to-Date 2018
(Millions of dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	32.2	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	21.0	Cost of sales	$	(16.6	)	$	—



	Third Quarter 2017
(Millions of dollars)	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	$	(1.6	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(26.5	)	Cost of sales	$	3.6	$	—



	Year-to-Date 2017
(Millions of dollars)	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	$	(8.8	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(65.1	)	Cost of sales	$	13.3	$	—

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

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 29, 2018 is as follows:



	Third Quarter 2018						Year-to-Date 2018
(Millions of dollars)	Cost of Sales			Interest Expense			Cost of Sales			Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded	$	2,256.4		$	72.1		$	6,656.5		$	204.3
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	4.6		$	—		$	16.6		$	—
Gain (loss) reclassified from OCI into Income	$	(4.6	)	$	—		$	(16.6	)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income ¹	$	—		$	(3.8	)	$	—		$	(11.3	)

¹Inclusive of the gain/loss amortization on terminated derivative financial instruments.

Details of Foreign Exchange Contracts Pre-Tax Amounts



	Year-to-Date 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI			Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	29.6		$	7.3	Other, net	$	6.4	$	6.4
Cross Currency Swap	$	(1.1	)	$	9.7	Other, net	$	5.1	$	5.1
Option Contracts	$	(3.3	)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	41.8		$	—	Other, net	$	—	$	—



	Third Quarter 2017							Year-to-Date 2017
(Millions of Dollars)	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	$	(42.3	)	$	—	$	—	$	(131.3	)	$	—	$	—

*Includes ineffective portion and amount excluded from effectiveness testing.

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The impacts of changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and nine months ended September 29, 2018 and September 30, 2017 are as follows:



(Millions of Dollars)	Income Statement Classification	Third Quarter 2018 Amount of Gain (Loss) Recorded in Income on Derivative			Year-to-Date 2018 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(5.9	)	$	9.0



(Millions of Dollars)	Income Statement Classification	Third Quarter 2017 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	13.9	$	43.6