FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jul. 01, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivatives

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at July 1, 2023 and December 31, 2022 is as follows: 

(Millions of Dollars)	Balance Sheet Classification	July 1, 2023		December 31, 2022		Balance Sheet Classification	July 1, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Foreign Exchange Contracts Cash Flow	Other current assets	$	3.1	$	4.5	Accrued expenses	$	5.6	$	4.2
	LT other assets	0.3		—		LT other liabilities	0.1		—
Non-derivative designated as hedging instrument:
Net Investment Hedge		$	—	$	—	Short-term borrowings	$	736.9	$	—
Total designated as hedging instruments		$	3.4	$	4.5		$	742.6	$	4.2
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	3.0	$	7.7	Accrued expenses	$	13.7	$	11.9
Total		$	6.4	$	12.2		$	756.3	$	16.1

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 six months ended July 1, 2023 and July 2, 2022:

	Second Quarter 2023
(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	$	—	Interest expense	$	(1.6)	$	—
Foreign Exchange Contracts	$	(1.9)	Cost of sales	$	(1.0)	$	—

	Year-to-Date 2023
(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	$	—	Interest expense	$	(3.1)	$	—
Foreign Exchange Contracts	$	(4.5)	Cost of sales	$	(0.4)	$	—

	Second Quarter 2022
(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	$	—	Interest expense	$	(1.5)	$	—
Foreign Exchange Contracts	$	16.9	Cost of sales	$	7.2	—

	Year-to-Date 2022
(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	$	23.4	Interest expense	$	(2.7)	$	—
Foreign Exchange Contracts	$	23.4	Cost of sales	$	13.3	$	—

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended July 1, 2023 and July 2, 2022 is as follows:

	Second Quarter 2023				Year-to-Date 2023
(Millions of Dollars)	Cost of Sales		Interest Expense		Cost of Sales		Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income (Loss) in which the effects of the cash flow hedges are recorded	$	3,226.8	$	144.6	$	6,323.1	$	275.5
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	1.0	$	—	$	0.4	$	—
Gain (loss) reclassified from OCI into Income	$	(1.0)	$	—	$	(0.4)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1	$	—	$	(1.6)	$	—	$	(3.1)

	Second Quarter 2022				Year-to-Date 2022
(Millions of Dollars)	Cost of Sales		Interest Expense		Cost of Sales		Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income (Loss) in which the effects of the cash flow hedges are recorded	$	3,185.9	$	78.2	$	6,328.5	$	132.9
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	(7.2)	$	—	$	(13.3)	$	—
Gain (loss) reclassified from OCI into Income	$	7.2	$	—	$	13.3	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1	$	—	$	(1.5)	$	—	$	(2.7)

1 Inclusive 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 (Loss) for the three and six months ended July 1, 2023 and July 2, 2022 is as follows:

(Millions of Dollars)	Second Quarter 2023 Interest Expense		Year-to-Date 2023 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income (Loss) in which the effects of the fair value hedges are recorded	$	144.6	$	275.5
Amortization of gain on terminated swaps	$	(0.1)	$	(0.2)

(Millions of Dollars)	Second Quarter 2022 Interest Expense		Year-to-Date 2022 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income (Loss) in which the effects of the fair value hedges are recorded	$	78.2	$	132.9
Amortization of gain on terminated swaps	$	(0.1)	$	(0.2)

A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of July 1, 2023 and December 31, 2022 is as follows:

	July 1, 2023
(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
Long-Term Debt	$	532.8	Terminated Swaps	$	(19.9)

	December 31, 2022
(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
Long-Term Debt	$	533.1	Terminated Swaps	$	(20.1)

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

Schedule of Derivatives Pre-tax Gain or Loss from Fair Value Change

The pre-tax gain or loss from fair value changes for the three and six months ended July 1, 2023 and July 2, 2022 is as follows:

	Second Quarter 2023
(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	$	—	$	—	Other, net	$	—	$	—
Cross Currency Swap	$	—	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	2.8	$	—	Other, net	$	—	$	—

	Year-to-Date 2023
(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	$	0.2	$	—	Other, net	$	—	$	—
Cross Currency Swap	$	(0.1)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	(9.8)	$	—	Other, net	$	—	$	—

	Second Quarter 2022
(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	$	2.5	$	—	Other, net	$	0.2	$	0.2
Cross Currency Swap	$	(0.6)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	—	$	—	Other, net	$	—	$	—

	Year-to-Date 2022
(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	$	5.3	$	0.6	Other, net	$	0.7	$	0.7
Cross Currency Swap	$	(1.4)	$	2.5	Other, net	$	1.5	$	1.5
Non-derivative designated as Net Investment Hedge	$	(0.1)	$	—	Other, net	$	—	$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The (loss) gain recorded in income from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and six months ended July 1, 2023 and July 2, 2022 is as follows: 

(Millions of Dollars)	Income Statement Classification	Second Quarter  2023		Year-to-Date  2023		Second Quarter  2022		Year-to-Date  2022
Foreign Exchange Contracts	Other, net	$	(22.5)	$	(23.5)	$	7.0	$	7.9