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Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Assets and Liabilities at Fair Value
The table below summarizes our derivative assets and liabilities that were measured at fair value as of March 30, 2013, and December 29, 2012.
 
 
 
Fair value measurements as of March 30, 2013
 
Total at March 30, 2013
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(206.2
)
 
$
—

 
$
(206.2
)
 
$
—

Foreign currency forwards
(4.0
)
 
—

 
(4.0
)
 
—

Commodity swaps
(1.4
)
 
—

 
(1.4
)
 
—

Equity conversion feature of debt
(37.4
)
 
—

 
—

 
(37.4
)
Total
$
(249.0
)
 
$
—

 
$
(211.6
)
 
$
(37.4
)
 
 
 
 
Fair value measurements as of December 29, 2012
 
Total at December 29, 2012
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(220.4
)
 
$
—

 
$
(220.4
)
 
$
—

Foreign currency forwards
(1.7
)
 
—

 
(1.7
)
 
—

Commodity swaps
(2.5
)
 
—

 
(2.5
)
 
—

Equity conversion feature of debt
(7.9
)
 
—

 
—

 
(7.9
)
Total
$
(232.5
)
 
$
—

 
$
(224.6
)
 
$
(7.9
)
Schedule of Derivative Valuation Activity, Unobservable Inputs (Level 3)
The table below summarizes derivative valuation activity using significant unobservable inputs (Level 3) (in millions):
 
Rollforward of Level 3 Inputs
Total at December 29, 2012
$
(7.9
)
Total losses (realized/unrealized)
 
Included in earnings
(29.5
)
Included in other comprehensive income
—

Purchases
—

Sales
—

Issuances
—

Settlements
—

Net transfers in/out of Level 3
—

Total at March 30, 2013
$
(37.4
)
Unrealized losses for Level 3 assets/liabilities outstanding at March 30, 2013
$
(29.5
)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value, were as follows (in millions):
 
Balance at March 30, 2013
Valuation Technique
Significant Unobservable Input(s)/Sensitivity of the Fair Value to Changes in the Unobservable Inputs
Range
Equity conversion feature of debt
$
(37.4
)
Option model
Implied volatility(1)
21-25%
(1)
Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
March 30, 2013
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
601.3

 
Other non-current assets
 
$
—

 
Non-current derivative hedging instruments
 
$
(206.2
)
Foreign currency forwards
USD
453.2

 
Other current assets
 
4.7

 
Current derivative hedging instruments
 
(1.1
)
 
 
 
 
Other non-current assets
 
3.2

 
Non-current derivative hedging instruments
 
(0.2
)
Commodity swaps
kWh
485.9

 
Other current assets
 
0.3

 
Current derivative hedging instruments
 
(0.4
)
 
 
 
 
Other non-current assets
 
0.1

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
8.3

 
 
 
$
(208.0
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(37.4
)
Aluminum swaps
Metric tonnes (actual)
2,075

 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
3,977

 
Other current assets
 
0.1

 
Current derivative hedging instruments
 
—

Foreign currency forwards
EUR
244.0

 
Other current assets
 
—

 
Current derivative hedging instruments
 
(10.6
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
0.1

 
 
 
$
(49.4
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(120.1
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(120.1
)

 
December 29, 2012
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
601.3
 
Other non-current assets
 
$
—

 
Non-current derivative hedging instruments
 
$
(220.4
)
Foreign currency forwards
USD
507.3
 
Other current assets
 
2.0

 
Current derivative hedging instruments
 
(3.4
)
 
 
 
 
Other non-current assets
 
1.4

 
Non-current derivative hedging instruments
 
(1.7
)
Commodity swaps
kWh
486.1
 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.0
)
 
 
 
 
Other non-current assets
 
0.2

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
3.6

 
 
 
$
(226.6
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(7.9
)
Aluminum swaps
Metric tonnes (actual)
2,850

 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
5,493

 
Other current assets
 
—

 
Current derivative hedging instruments
 
(0.2
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
—

 
 
 
$
(9.5
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(123.9
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(123.9
)
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations
The Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$
—

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
8.9

 
Other income (expense), net
 
(0.1
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
0.5

 
Cost of goods sold
 
—

Commodity swaps
 
0.6

 
Cost of goods sold
 
(0.2
)
 
Cost of goods sold
 
—

Total
 
$
9.5

 
 
 
$
(0.2
)
 
 
 
$
—


For the Thirteen Weeks Ended March 30, 2013
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
14.2

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

€120 million term loan due 2016
 
3.7

 
Other income (expense), net
 
—

 
Other income (expense), net
 
—

Total
 
$
17.9

 
 
 
$
—

 
 
 
$
—

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.
For the Thirteen Weeks Ended March 31, 2012
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$
—

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
(8.0
)
 
Other income (expense), net
 
(0.6
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
(1.1
)
 
Cost of goods sold
 
—

Commodity swaps
 
1.3

 
Cost of goods sold
 
(0.3
)
 
Cost of goods sold
 
—

Total
 
$
(6.7
)
 
 
 
$
(2.4
)
 
 
 
$
—

For the Thirteen Weeks Ended March 31, 2012
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
(20.5
)
 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

Total
 
$
(20.5
)
 
 
 
$
—

 
 
 
$
—

Note: Amounts recognized in AOCI are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow hedges.
Other Derivatives
Other Derivatives (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Equity conversion feature of debt
 
Interest expense, net
 
$
(29.7
)
 
 
Other income (expense), net
 
0.2

Foreign currency forwards
 
Other income (expense), net
 
(10.6
)
Total
 
 
 
$
(40.1
)
For the Thirteen Weeks Ended March 31, 2012
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Commodity swaps
 
Cost of goods sold
 
$
0.1

Total
 
 
 
$
0.1