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Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Income
14.
Accumulated Other Comprehensive Income

AOCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events.

Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. In the year ended December 31, 2022, due to the spinoff of ZimVie, certain foreign entities were completely liquidated. In a pro rata spinoff of consolidated subsidiaries’ assets and liabilities, the distribution of these net assets is recognized through equity instead of net earnings. Therefore, the foreign currency translation adjustments of those entities that were completely liquidated were reclassified to retained earnings. Similarly, we had entered into instruments designated as net investment hedges against certain of these same foreign entities. We reclassified the portion of the net investment hedge gains (losses) deferred in foreign currency translation adjustments related to those entities to retained earnings. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan. See Note 16 for more information on our defined benefit plans.

The following table shows the changes in the components of AOCI, net of tax (in millions):

 

 

Foreign

 

 

Cash

 

 

Defined

 

 

 

 

 

 

Currency

 

 

Flow

 

 

Benefit

 

 

Total

 

 

 

Translation

 

 

Hedges

 

 

Plan Items

 

 

AOCI

 

Balance December 31, 2023

 

$

(159.4

)

 

$

63.3

 

 

$

(94.9

)

 

$

(191.0

)

AOCI before reclassifications

 

 

(79.6

)

 

 

94.8

 

 

 

(16.5

)

 

 

(1.3

)

Reclassifications to statements of earnings

 

 

-

 

 

 

(69.9

)

 

 

(0.6

)

 

 

(70.5

)

Balance December 31, 2024

 

$

(239.0

)

 

$

88.2

 

 

$

(112.0

)

 

$

(262.8

)

The following table shows the reclassification adjustments from AOCI (in millions):

 

 

Amount of Gain / (Loss)

 

 

 

 

 

Reclassified from AOCI

 

 

 

 

 

For the Years Ended December 31,

 

 

Location on

Component of AOCI

 

2024

 

 

2023

 

 

2022

 

 

Statements of Earnings

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

$

85.3

 

 

$

94.1

 

 

$

54.8

 

 

Cost of products sold

Forward starting interest rate swaps

 

 

(0.7

)

 

 

(0.7

)

 

 

(0.8

)

 

Interest expense, net

 

 

84.6

 

 

 

93.4

 

 

 

54.0

 

 

Total before tax

 

 

14.7

 

 

 

16.0

 

 

 

8.0

 

 

Provision for income taxes

 

$

69.9

 

 

$

77.4

 

 

$

46.0

 

 

Net of tax

Defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

Settlements, Prior service cost and unrealized actuarial gain

 

$

1.1

 

 

$

6.1

 

 

$

0.2

 

 

Other expense, net

 

 

0.5

 

 

 

0.3

 

 

 

(1.2

)

 

Provision for income taxes

 

$

0.6

 

 

$

5.8

 

 

$

1.4

 

 

Net of tax

Total reclassifications

 

$

70.5

 

 

$

83.2

 

 

$

47.4

 

 

Net of tax

The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions):

 

 

For the Years Ended December 31,

 

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

Foreign currency cumulative
   translation adjustments

 

$

(40.3

)

 

$

(2.9

)

 

$

(87.3

)

 

$

39.3

 

 

$

(12.8

)

 

$

36.0

 

 

$

(79.6

)

 

$

9.9

 

 

$

(123.3

)

Unrealized cash flow hedge gains

 

 

116.0

 

 

 

84.8

 

 

 

100.5

 

 

 

21.2

 

 

 

13.7

 

 

 

17.0

 

 

 

94.8

 

 

 

71.1

 

 

 

83.5

 

Reclassification adjustments on
  cash flow hedges

 

 

(84.6

)

 

 

(93.4

)

 

 

(54.0

)

 

 

(14.7

)

 

 

(16.0

)

 

 

(8.0

)

 

 

(69.9

)

 

 

(77.4

)

 

 

(46.0

)

Adjustments to prior service cost
   and unrecognized actuarial
   assumptions

 

 

(18.6

)

 

 

(17.0

)

 

 

95.9

 

 

 

(1.5

)

 

 

(1.7

)

 

 

18.9

 

 

 

(17.1

)

 

 

(15.3

)

 

 

77.0

 

Total Other Comprehensive
   (Loss) Income

 

$

(27.5

)

 

$

(28.5

)

 

$

55.1

 

 

$

44.3

 

 

$

(16.8

)

 

$

63.9

 

 

$

(71.8

)

 

$

(11.7

)

 

$

(8.8

)