Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 28, 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 September 28, 2013, and December 29, 2012.

				Fair value measurements as of September 28, 2013 Using
	Total at September 28, 2013			Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	(In millions)
Cross currency swaps	$	(134.0	)	$	—	$	(134.0	)	$	—
Foreign currency forwards	8.0			—		8.0			—
Commodity swaps	(4.4		)	—		(4.4		)	—
Total	$	(130.4	)	$	—	$	(130.4	)	$	—

				Fair value measurements as of December 29, 2012 Using
	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):

	Rollforward of Level 3 Inputs
	(In millions)
Total at December 29, 2012	$	(7.9	)
Total losses (realized/unrealized)
Included in earnings	(6.5		)
Included in other comprehensive income	—
Purchases	—
Sales	—
Issuances	—
Settlements	14.4
Net transfers in/out of Level 3	—
Total at September 28, 2013	$	—
Unrealized losses for Level 3 assets/liabilities settled in the third quarter 2013	$	(6.5	)

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)

	September 28, 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	401.2	Other current assets	$	—	Current derivative hedging instruments	$	(134.0	)
Foreign currency forwards	USD	432.1	Other current assets	5.7		Current derivative hedging instruments	(0.3		)
			Other non-current assets	3.2		Non-current derivative hedging instruments	(0.5		)
Commodity swaps	kWh	963.6	Other current assets	0.1		Current derivative hedging instruments	(0.7		)
			Other non-current assets	—		Non-current derivative hedging instruments	(0.7		)
Total derivatives designated as hedging instruments				$	9.0		$	(136.2	)
Derivatives not designated as hedging instruments:
Commodity swaps	Metric tonnes (actual)	61,735	Other current assets	0.1		Current derivative hedging instruments	(1.7		)
			Other non-current assets	—		Non-current derivative hedging instruments	(1.6		)
Total derivatives not designated as hedging instruments				$	0.1		$	(3.3	)

	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	)
Commodity swaps	Metric tonnes (actual)	8,343	Other current assets	$	—	Current derivative hedging instruments	(1.6		)
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 September 28, 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	(9.0		)	Other income (expense), net	0.7			Other income (expense), net	—
				Cost of goods sold	1.7			Cost of goods sold	—
Commodity swaps	(0.7		)	Cost of goods sold	(0.2		)	Cost of goods sold	—
Total	$	(9.7	)		$	1.8			$	—

For the Thirteen Weeks Ended September 28, 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 swaps	$	(9.3	)	Other income (expense), net	$	—	Other income (expense), net	$	—
€120 million term loan due 2016	(1.9		)	Other income (expense), net	—		Other income (expense), net	—
Total	$	(11.2	)		$	—		$	—

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 September 29, 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	(14.9		)	Other income (expense), net	(0.7		)	Other income (expense), net	—
				Cost of goods sold	(1.6		)	Cost of goods sold	—
Commodity swaps	(0.6		)	Cost of goods sold	(0.5		)	Cost of goods sold	—
Total	$	(15.5	)		$	(3.2	)		$	—

For the Thirteen Weeks Ended September 29, 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 swaps	$	(13.3	)	Other income (expense), net	$	—	Other income (expense), net	$	—
€120 million term loan due 2016	(4.7		)	Other income (expense), net	—		Other income (expense), net	—
Total	$	(18.0	)		$	—		$	—

Note: Amounts recognized in AOCI are presented gross of taxes

During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.

For the Thirty-Nine Weeks Ended September 28, 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	$	(1.2	)	Interest expense, net	$	—
Foreign currency forwards	14.7			Other income (expense), net	1.1			Other income (expense), net	—
				Cost of goods sold	3.4			Cost of goods sold	—
Commodity swaps	(0.7		)	Cost of goods sold	(0.2		)	Cost of goods sold	—
Total	$	14.0			$	3.1			$	—

For the Thirty-Nine Weeks Ended September 28, 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 swaps	$	20.2	Other income (expense), net	$	—	Other income (expense), net	$	—
€120 million term loan due 2016	0.1		Other income (expense), net	—		Other income (expense), net	—
Total	$	20.3		$	—		$	—

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 Thirty-Nine Weeks Ended September 29, 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	$	(1.2	)	Interest expense, net	$	—
Foreign currency forwards	(17.7		)	Other income (expense), net	(1.7		)	Other income (expense), net	—
				Cost of goods sold	(4.0		)	Cost of goods sold	—
Commodity swaps	0.1			Cost of goods sold	(1.2		)	Cost of goods sold	—
Total	$	(17.6	)		$	(8.1	)		$	—

For the Thirty-Nine Weeks Ended September 29, 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 swaps	$	(26.5	)	Other income (expense), net	$	—	Other income (expense), net	$	—
€120 million term loan due 2016	(4.7		)	Other income (expense), net	—		Other income (expense), net	—
Total	$	(31.2	)		$	—		$	—

Note: Amounts recognized in AOCI are presented gross of taxes

During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.

We expect net gains of approximately $4.9 million (pre-tax) recorded in AOCI at September 28, 2013, will be reclassified into earnings within the next 12 months. The maximum length of time over which forecasted transactions are hedged at September 28, 2013, is 3.3 years, and such transactions relate to foreign exchange, interest rate and commodity exposures.

Other Derivatives

Other Derivatives (in millions)

For the Thirteen Weeks Ended September 28, 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	$	21.1
	Other income (expense), net	(0.8		)
Commodity swaps	Cost of goods sold	(1.5		)
Foreign currency forwards	Other income (expense), net	10.6
Total		$	29.4

For the Thirteen Weeks Ended September 29, 2012
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	$	(7.7	)
	Other income (expense), net	(0.5		)
Commodity swaps	Cost of goods sold	(0.6		)
Total		$	(8.8	)

For the Thirty-Nine Weeks Ended September 28, 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	$	(5.4	)
	Other income (expense), net	(1.1		)
Commodity swaps	Cost of goods sold	(3.0		)
Foreign currency forwards	Other income (expense), net	3.9
		$	(5.6	)

For the Thirty-Nine Weeks Ended September 29, 2012
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	$	(13.3	)
	Other income (expense), net	(0.5		)
Treasury locks(1)	Interest expense, net	(39.2		)
		$	(53.0	)

(1) Entered into to remove a portion of our interest rate market risk in connection with debt issued to fund the Acquisition.