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Hedging Transactions and Derivative Financial Instruments
 3 Months Ended
Mar. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Hedging Transactions and Derivative Financial Instruments HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS
The Company uses cross-currency swap derivative contracts to partially hedge its net investments in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The cross-currency swap derivative contracts are agreements to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. On December 23, 2024, the Company extended its existing $150.0 million notional value cross-currency swap derivative contract for an additional three years, which now matures on January 17, 2028. This contract effectively converts a portion of the Company’s U.S. dollar denominated senior term loan facilities to obligations denominated in euros and partially offsets the impact of changes in currency rates on foreign currency denominated net investments.
The Company also has foreign currency denominated long-term debt consisting of a senior euro term loan facility. The senior euro term loan facility represents a partial hedge of the Company’s net investment in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The senior euro term loan facility is designated and qualifies as a non-derivative hedging instrument.

Refer to Note 11 for further discussion of the Company’s debt and credit facilities.

The change in the fair value of the cross-currency swap instrument and the foreign currency translation of the senior euro term loan facilities are recorded in accumulated other comprehensive loss in the accompanying Condensed Consolidated Balance Sheets, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive loss as reflected in Note 13.

The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges in accumulated other comprehensive loss (“OCI”) for the three months ended March 28, 2025 and March 29, 2024 ($ in millions):
Notional AmountLoss Recognized in OCI
Three Months Ended March 28, 2025
Foreign currency denominated debt$379.0 $(16.6)
Foreign currency contract150.0 (4.7)
Total$529.0 $(21.3)
Notional AmountGain Recognized in OCI
Three Months Ended March 29, 2024
Foreign currency denominated debt$377.8 $8.6 
Foreign currency contract150.0 3.3 
Total$527.8 $11.9 
The Company did not reclassify any deferred gains or losses related to its net investment hedge from accumulated other comprehensive loss to income during the three months ended March 28, 2025 and March 29, 2024. In addition, the Company did not have any ineffectiveness related to its net investment hedge and therefore did not reclassify any portion of the above net investment hedge from accumulated other comprehensive loss into income during the three months ended March 28, 2025 and March 29, 2024. The cash inflows and outflows associated with the Company’s derivative contract designated as a net investment hedge is classified in investing activities in the accompanying Condensed Consolidated Statements of Cash Flows.

Additionally during the first quarter of 2025, the Company entered into foreign exchange forward contracts to hedge its foreign currency risk associated with certain foreign denominated balance sheet transactions. These forward contracts are not designated as a hedge for accounting purposes and therefore the changes in the fair value of these instruments are recognized immediately in earnings. As of March 28, 2025, the Company did not have any outstanding foreign exchange forward contracts. Any realized gain (losses) related to forward contracts partially offset the corresponding gains (losses) related to the underlying foreign denominated balance sheet transactions.

The Company’s derivative instrument, as well as its non-derivative debt instrument designated and qualifying as net investment hedges, were classified in the Company’s Condensed Consolidated Balance Sheets as follows ($ in millions)
March 28, 2025December 31, 2024
Derivative assets:
Other long-term assets$1.2 $5.9 
Nonderivative hedging instruments:
Long-term debt$379.0 $362.4 
Amounts above related to the Company’s hedged derivative assets expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant.