SEGMENT INFORMATION (Tables)

6 Months Ended

Jul. 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						Six Months Ended
	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
Net sales:
North America	$	1,444,841		$	1,399,574		$	3,078,312		$	3,106,569
International and Other	192,830			179,251			388,171			410,056
Total	$	1,637,671		$	1,578,825		$	3,466,483		$	3,516,625
Segment income:
North America	$	425,723		$	460,667		$	955,113		$	1,014,973
International and Other	(3,462		)	(44,485		)	(16,695		)	(66,244		)
Total segment income	422,261			416,182			938,418			948,729
Unallocated corporate expense (1)	126,623			126,794			248,794			265,466
Unallocated mark-to-market gains on commodity derivatives (2)	(39,886		)	—			(4,940		)	—
Goodwill impairment	—			249,811			—			249,811
Charges associated with business realignment activities	62,095			28,825			76,525			33,965
Non-service related pension expense	9,205			931			14,306			2,927
Acquisition integration costs	1,462			2,321			1,462			4,894
Operating profit	262,762			7,500			602,271			391,666
Interest expense, net	21,338			18,877			42,343			38,079
Other (income) expense, net	8,128			4,759			(13,097		)	(5,081		)
Income (loss) before income taxes	$	233,296		$	(16,136	)	$	573,025		$	358,668

(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. See Note 5.

Activity within the unallocated mark-to-market gains (losses) on commodity derivatives for the three and six months ended July 3, 2016 included:

	Three Months Ended			Six Months Ended
	July 3, 2016			July 3, 2016
Net gains on mark-to-market valuation of unallocated commodity derivative positions	$	(39,011	)	$	(70	)
Net losses on commodity derivative positions allocated to segment income	875			4,870
Net gains on mark-to-market valuation of commodity derivative positions remaining in unallocated derivative gains	$	(39,886	)	$	(4,940	)

Based on our forecasts of the timing of the recognition of the underlying hedged items, we expect to reclassify losses on commodity derivatives of $1.5 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				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
North America	$	39,844	$	39,439	$	78,786	$	74,952
International and Other	13,085		9,090		24,008		20,140
Corporate (1)	43,937		11,934		53,985		23,709
Total	$	96,866	$	60,463	$	156,779	$	118,801

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

ctivity within the unallocated mark-to-market gains (losses) on commodity derivatives for the three and six months ended July 3, 2016 included:

	Three Months Ended			Six Months Ended
	July 3, 2016			July 3, 2016
Net gains on mark-to-market valuation of unallocated commodity derivative positions	$	(39,011	)	$	(70	)
Net losses on commodity derivative positions allocated to segment income	875			4,870
Net gains on mark-to-market valuation of commodity derivative positions remaining in unallocated derivative gains	$	(39,886	)	$	(4,940	)