SEGMENT INFORMATION (Tables)

3 Months Ended

Apr. 03, 2016

Segment Reporting [Abstract]

Summary of Net Sales and Earnings, and Depreciation and Amortization, by Segment

Our segment net sales and earnings were as follows:

	Three Months Ended
	April 3, 2016			April 5, 2015
Net sales:
North America	$	1,633,471		$	1,706,995
International and Other	195,341			230,805
Total	$	1,828,812		$	1,937,800
Segment income:
North America	$	529,390		$	554,306
International and Other	(13,233		)	(21,759		)
Total segment income	516,157			532,547
Unallocated corporate expense (1)	122,171			138,672
Unallocated mark-to-market losses on commodity derivatives (2)	34,946			—
Charges associated with business realignment activities	14,430			5,140
Non-service related pension expense	5,101			1,996
Acquisition integration costs	—			2,573
Operating profit	339,509			384,166
Interest expense, net	21,005			19,202
Other (income) expense, net	(21,225		)	(9,840		)
Income before income taxes	$	339,729		$	374,804

(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense, and (d) other gains or losses that are not integral to segment performance.

(2) Reflects gains and losses on commodity derivative instruments that are excluded from segment income until the related inventory is sold.

The activity within the unallocated mark-to-market gains (losses) on commodity derivatives for the quarter ended April 3, 2016 included:

	Three Months Ended
	April 3, 2016
Net losses on mark-to-market valuation of unallocated commodity derivative positions	$	(38,941	)
Net losses on commodity derivative positions allocated to segment income	(3,995		)
Net losses on mark-to-market valuation of commodity derivative positions remaining in unallocated derivative gains (losses)	$	(34,946	)

Based on our forecasts of the timing of the recognition of the underlying hedged items, we expect to reclassify losses on commodity derivatives of $13.6 million after tax to segment operating results in the next twelve months.

Depreciation and amortization expense included within segment income presented above is as follows:

	Three Months Ended
	April 3, 2016		April 5, 2015
North America	$	38,942	$	35,440
International and Other	10,923		11,124
Corporate	10,048		11,774
Total	$	59,913	$	58,338

Summary of Activity Within the Unallocated Mark-to-market Gains (Losses) on Commodity Derivatives

The activity within the unallocated mark-to-market gains (losses) on commodity derivatives for the quarter ended April 3, 2016 included:

	Three Months Ended
	April 3, 2016
Net losses on mark-to-market valuation of unallocated commodity derivative positions	$	(38,941	)
Net losses on commodity derivative positions allocated to segment income	(3,995		)
Net losses on mark-to-market valuation of commodity derivative positions remaining in unallocated derivative gains (losses)	$	(34,946	)