Financial Instruments

6 Months Ended

Jun. 28, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial Instruments

We use various derivative financial instruments to manage risks in foreign currency exchange rates, commodity prices and interest rates. We recognize derivative financial instruments as either assets or liabilities at fair value in the unaudited Condensed Consolidated Balance Sheets. Refer to Note 9, “Fair Value Measurements,” to the unaudited Condensed Consolidated Financial Statements for more information.

Fair Value Hedges

During 2024, we entered into foreign currency forward contracts to hedge a portion of the principal balance of our €500 million of senior notes that matured in the first quarter of 2025 and €500 million of senior notes due in the fourth quarter of 2034 to offset changes in the fair value of the hedged item attributable to foreign currency risk. The foreign currency forward contracts hedging our €500 million of senior notes due in the fourth quarter of 2034 mature in December 2025.

Refer to Note 3, “Debt,” to the unaudited Condensed Consolidated Financial Statements for more information.

Cash Flow Hedges

During 2020, we entered into U.S. dollar to euro cross-currency swap contracts to effectively convert our fixed-rate U.S. dollar-denominated debt to euro-denominated debt, including semiannual interest payments and the payment of principal at maturity. During the term of the contracts, which end on April 30, 2030, we pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars.

We designate commodity forward contracts on forecasted purchases of commodities as cash flow hedges. The impact of these commodity hedge activities on the unaudited Condensed Consolidated Financial Statements was not material.

Net Investment Hedges

During 2024, we entered into foreign currency forward contracts and zero-cost collars, combining each pair as net investment hedges for accounting purposes, to minimize the effect of foreign currency exchange rates on our net investment in certain foreign operations between the sold put strike and the bought call strike rates of the contracts. The notional amount of the hedges, which mature in December 2025, was €500 million at June 28, 2025.

Other Derivatives

We enter into foreign currency exchange contracts to reduce the risk from foreign currency exchange rate fluctuations associated with our receivables, payables, loans and firm commitments denominated in certain foreign currencies that arise primarily as a result of our operations outside the U.S. The impact of these foreign currency exchange on the unaudited Condensed Consolidated Financial Statements was not material.

The following table shows the fair value and balance sheet locations of our fair value hedges, cross-currency swap contracts designated as cash flow hedges and net investment hedges as of June 28, 2025 and December 28, 2024:

(In millions)	Notional Amount		Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Type of Hedge
June 28, 2025
Derivatives designated as hedges:
Foreign currency forward contracts	$	585.8	$	35.8	$	—	$	—	$	—	Fair value
Cross-currency swap contracts	250.0		—		—		—		12.7		Cash flow
Foreign currency forward contracts with collars	585.8		—		—		17.5		—		Net investment
Total			$	35.8	$	—	$	17.5	$	12.7
December 28, 2024
Derivatives designated as hedges:
Foreign currency forward contracts	$	958.9	$	.2	$	—	$	36.7	$	—	Fair value
Cross-currency swap contracts	250.0		—		10.9		—		—		Cash flow
Foreign currency forward contracts with collars	958.9		17.8		—		.2		—		Net investment
Total			$	18.0	$	10.9	$	36.9	$	—

The following table shows the components of net gains (losses) recognized in income related to derivative instruments:

	Three Months Ended				Six Months Ended
(In millions)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Gain (loss) on derivatives designated as fair value hedges:
Foreign currency forward contracts - Marketing, general and administrative expense	$	46.4	$	—	$	66.3	$	—

The impact of the hedged items associated with the derivative in the table above is recorded to the same income statement line as the derivative instrument. The net gains (losses) recognized in income related to our cross-currency swap contracts were not material to the unaudited Condensed Consolidated Statements of Income for the three and six months ended June 28, 2025 and June 29, 2024.

The loss recognized in translation for the net investment hedges was approximately $27 million and $35 million for the three and six months ended June 28, 2025, respectively.