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FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 26, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at September 26, 2020 and December 28, 2019 is as follows:


(Millions of Dollars)	Balance Sheet Classification	September 26, 2020		December 28, 2019		Balance Sheet Classification	September 26, 2020		December 28, 2019
Derivatives designated as hedging instruments:

Interest Rate Contracts Cash Flow	LT other assets	$	—	$	—	LT other liabilities	$	112.1	$	40.5
Foreign Exchange Contracts Cash Flow	Other current assets	3.0		7.0		Accrued expenses	3.3		7.8

Net Investment Hedge	Other current assets	6.0		18.6		Accrued expenses	25.2		8.5
	LT other assets	—		—		LT other liabilities	3.9		2.6
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	—		335.5
Total designated as hedging		$	9.0	$	25.6		$	144.5	$	394.9
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	9.3	$	3.7	Accrued expenses	$	5.5	$	6.1
Total		$	18.3	$	29.3		$	150.0	$	401.0

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) into Earnings

The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for the three and nine months ended September 26, 2020 and September 28, 2019:


	Third Quarter 2020
(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	$	1.9	Interest expense	$	(4.3)	$	—
Foreign Exchange Contracts	$	(5.3)	Cost of sales	$	5.9	$	—


	Year-to-Date 2020
(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	$	(92.1)	Interest expense	$	(13.5)	$	—
Foreign Exchange Contracts	$	10.1	Cost of sales	$	12.5	$	—


	Third Quarter 2019
(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	$	(31.3)	Interest expense	$	(4.1)	$	—
Foreign Exchange Contracts	$	16.6	Cost of sales	$	5.8	$	—


	Year-to-Date 2019
(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	$	(59.7)	Interest expense	$	(12.2)	$	—
Foreign Exchange Contracts	$	21.1	Cost of sales	$	8.3	$	—

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 26, 2020 and September 28, 2019 is as follows:


	Third Quarter 2020						Year-to-Date 2020
(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	$	2,473.9	$	52.7	$	6,714.9	$	169.7
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	(5.9)	$	—	$	(12.5)	$	—
Gain (loss) reclassified from OCI into Income	$	5.9	$	—	$	12.5	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income ¹	$	—	$	(4.3)	$	—	$	(13.5)


	Third Quarter 2019						Year-to-Date 2019
(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	$	2,393.6	$	72.4	$	7,083.1	$	219.2
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	(5.8)	$	—	$	(8.3)	$	—
Gain (loss) reclassified from OCI into Income	$	5.8	$	—	$	8.3	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income ¹	$	—	$	(4.1)	$	—	$	(12.2)

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

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 26, 2020 and September 28, 2019 is as follows:


(Millions of Dollars)	Third Quarter 2020 Interest Expense		Year-to-Date 2020 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded	$	52.7	$	169.7
Amortization of gain on terminated swaps	$	(0.8)	$	(2.4)


(Millions of Dollars)	Third Quarter 2019 Interest Expense		Year-to-Date 2019 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded	$	72.4	$	219.2
Amortization of gain on terminated swaps	$	(0.8)	$	(6.9)

In February 2019, the Company redeemed all of the outstanding 2053 Junior Subordinated Debentures. As a result, the Company recorded a pre-tax gain of $4.6 million relating to the remaining unamortized gain on swap termination related to this debt.

A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of September 26, 2020 and December 28, 2019 is as follows:


	September 26, 2020
(Millions of Dollars)	Carrying Amount of Hedged Liability ⁽¹⁾		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt	$	3.1	Terminated Swaps	$	3.1
Long-Term Debt	$	4,658.5	Terminated Swaps	$	(19.8)


	December 28, 2019
(Millions of Dollars)	Carrying Amount of Hedged Liability ⁽¹⁾		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt	$	3.1	Terminated Swaps	$	3.1
Long-Term Debt	$	3,176.4	Terminated Swaps	$	(17.5)

^{(1) Represents hedged items no longer designated in qualifying fair value hedging relationships.}

Details of Foreign Exchange Contracts Pre-Tax Amounts

The pre-tax gain or loss from fair value changes for the three and nine months ended September 26, 2020 and September 28, 2019 was as follows:


	Third Quarter 2020
(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	$	0.3	$	—	Other, net	$	—	$	—
Cross Currency Swap	$	(19.0)	$	14.0	Other, net	$	4.1	$	4.1
Option Contracts	$	—	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	(13.1)	$	—	Other, net	$	—	$	—


	Year-to-Date 2020
(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	$	0.4	$	—	Other, net	$	—	$	—
Cross Currency Swap	$	22.3	$	48.9	Other, net	$	13.7	$	13.7
Option Contracts	$	—	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	(8.5)	$	—	Other, net	$	—	$	—


	Third Quarter 2019
(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	$	9.2	$	1.0	Other, net	$	1.1	$	1.1
Cross Currency Swap	$	35.9	$	12.9	Other, net	$	7.7	$	7.7
Option Contracts	$	0.3	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	35.2	$	—	Other, net	$	—	$	—


	Year-to-Date 2019
(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	$	15.4	$	5.2	Other, net	$	3.4	$	3.4
Cross Currency Swap	$	59.4	$	36.9	Other, net	$	22.2	$	22.2
Option Contracts	$	(1.8)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	39.4	$	—	Other, net	$	—	$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The gain (loss) recorded in income from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and nine months ended September 26, 2020 and September 28, 2019 are as follows:


(Millions of Dollars)	Income Statement Classification	Third Quarter 2020		Year-to-Date 2020		Third Quarter 2019		Year-to-Date 2019
Foreign Exchange Contracts	Other, net	$	(9.0)	$	(2.6)	$	2.0	$	0.7