Comprehensive Income and Shareholders Equity

9 Months Ended

Sep. 28, 2013

Comprehensive Income and Shareholders Equity Disclosure [Abstract]

Comprehensive Income and Shareholders Equity [Text Block]

Note 10.Comprehensive Income and Shareholders' Equity

Comprehensive Income

       Comprehensive income combines net income and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of shareholders' equity in the accompanying balance sheet.

Changes in each component of accumulated other comprehensive items, net of tax are as follows:

(In millions)			Currency Translation Adjustment		Unrealized Gains (Losses) on Available-for-Sale Investments		Unrealized Gains (Losses) on Hedging Instruments		Pension and Other Postretirement Benefit Liability Adjustment		Total
Balance at December 31, 2012			$	87.4	$	7.7	$	(32.9)	$	(212.6)	$	(150.4)
	Other comprehensive income (loss) before reclassifications			(6.2)		1.2		5.0		(0.2)		(0.2)
	Amounts reclassified from accumulated other comprehensive items			—		(8.0)		2.4		5.8		0.2
		Net other comprehensive items		(6.2)		(6.8)		7.4		5.6		—
Balance at September 28, 2013			$	81.2	$	0.9	$	(25.5)	$	(207.0)	$	(150.4)

The amounts reclassified out of accumulated other comprehensive items are as follows:

					Nine Months Ended
			Affected Line Item in the	September 28,			September 29,
(In millions)			Statement of Income		2013			2012
Amounts Reclassified From Accumulated Other Comprehensive Items
	Unrealized gains and losses on available-for-sale investments
		Realized gain on sale or transfer of available-for-sale investments	Other Expense, Net		$	(10.5)		$	—
		Tax provision	Provision for Income Taxes			2.5			—
					$	(8.0)		$	—
	Unrealized gains and losses on hedging instruments
		Realized loss on interest rate swaps and locks	Other Expense, Net		$	4.0		$	3.9
		Tax benefit	Provision for Income Taxes			(1.6)			(1.5)
					$	2.4		$	2.4
	Pension and other postretirement benefit liability adjustment
		Amortization of actuarial losses	Net Periodic Benefit Cost -		$	8.6		$	5.0
		Amortization of prior service benefit	see Note 6 for details			(0.2)			(0.1)
		Total before tax				8.4			4.9
		Tax benefit	Provision for Income Taxes			(2.6)			(1.6)
					$	5.8		$	3.3
		Total reclassifications			$	0.2		$	5.7

Shareholders' Equity

       In June 2013, in anticipation of the planned acquisition of Life Technologies, the company entered into equity forward agreements in connection with a public offering of 29.6 million shares of its common stock. The use of the equity forward agreements substantially eliminates future equity market price risk by fixing a common equity offering sales price under the then existing market conditions, while mitigating share dilution from the offering by postponing the actual issuance of common stock until the funds are needed for the Life Technologies Acquisition.

       Under the terms of the agreements, the counterparties borrowed shares of the company's common stock and sold them for $85.50 per share. Upon settlement of the agreements, to the extent that the agreements are physically settled, the company would be required to issue and deliver shares of its common stock at the then applicable forward sale price. The forward price was initially $83.2770 per share, net of underwriting fees, and is subject to adjustment in accordance with the terms of the agreements including fixed reductions related to cash dividends. The forward price was $82.8277per share on September 28, 2013. The equity forward agreements must be settled fully within 14 months of the date of the agreements. Although the company expects to physically settle the forward sale agreements by delivering shares of its common stock in exchange for cash proceeds, it may elect cash or net share settlement for all or a portion of its obligations under the forward agreements.

       The equity forward agreements had no initial fair value as they were entered into at the then market price of the common stock. The company will not receive any proceeds from the sale of common stock until the equity forward agreements are settled, and at that time it will record the proceeds, if any, in equity.

       At September 28, 2013, the equity forward agreements could have been settled with physical delivery of the shares to the forward counterparties in exchange for cash of $2.45 billion. At September 28, 2013, the equity forward agreements could also have been cash settled, with delivery of cash of approximately $301.3 million to the forward counterparties, or net share settled with delivery of approximately 3.2 million shares of common stock to the forward counterparties.

       Prior to their settlement, to the extent that the equity forward agreements are dilutive, they are reflected in the company's diluted earnings per share calculations using the treasury stock method.