DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 29, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 29, 2018 and December 30, 2017 follows:



(Millions of Dollars)	Balance Sheet Classification	2018		2017		Balance Sheet Classification	2018		2017
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	—	$	—	Accrued expenses	$	—	$	55.7
	LT other assets	—		—		LT other liabilities	—		—
Foreign Exchange Contracts Cash Flow	Other current assets	18.1		4.1		Accrued expenses	0.6		33.4
	LT other assets	—		—		LT other liabilities	—		5.2
Net Investment Hedge	Other current assets	5.7		6.6		Accrued expenses	1.5		7.0
	LT other assets	—		—		LT other liabilities	13.8		5.8
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	228.9		—
Total Designated as hedging instruments		$	23.8	$	10.7		$	244.8	$	107.1
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	9.1	$	7.3	Accrued expenses	$	5.4	$	6.9
Total		$	32.9	$	18.0		$	250.2	$	114.0

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income into Earnings for Active Derivative Financial Instruments

The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for 2018, 2017 and 2016:



2018 (Millions of Dollars)	(Loss) Gain Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	33.1	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	35.9	Cost of sales	$	(17.9	)	$	—



2017 (Millions of Dollars)	(Loss) Gain Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(8.4	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(66.6	)	Cost of sales	$	8.4	$	—



2016 (Millions of Dollars)	(Loss) Gain Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(6.2	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	19.3		Cost of sales	$	21.7	$	—

* Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations for 2018 is as follows:



	2018
(Millions of dollars)	Cost of Sales			Interest Expense
Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded	$	9,131.3		$	277.9
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	17.9		$	—
Gain (loss) reclassified from OCI into Income	$	(17.9	)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income ¹	$	—		$	(15.3	)

¹Inclusive of the gain/loss amortization on terminated derivative financial instruments.



2018 (Millions of Dollars)	(Loss) Gain Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	33.1	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	35.9	Cost of sales	$	(17.9	)	$	—



2017 (Millions of Dollars)	(Loss) Gain Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(8.4	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(66.6	)	Cost of sales	$	8.4	$	—



2016 (Millions of Dollars)	(Loss) Gain Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(6.2	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	19.3		Cost of sales	$	21.7	$	—

* Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

Fair Value Adjustments Relating to Swaps

A summary of the fair value adjustments relating to these swaps is as follows:



	2017				2016
Income Statement Classification (Millions of Dollars)	(Loss)/Gain on Swaps*		Gain /(Loss) on Borrowings		Gain/(Loss) on Swaps*			(Loss)/Gain on Borrowings
Interest expense	$	—	$	—	$	(3.3	)	$	3.8

Details of Pre-Tax Amounts of Gains and Losses on Net Investment Hedges

The pre-tax gain or loss from fair value changes for 2017 and 2016 was as follows:



	2017							2016
Income Statement Classification (Millions of Dollars)	Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in OCI Gain (Loss)		Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement
Other-net	$	(131.3	)	$	—	$	—	$	117.8	$	—	$	—

*Includes ineffective portion.

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The income statement impacts related to derivatives not designated as hedging instruments under ASC 815 for 2018, 2017 and 2016 are as follows:



(Millions of Dollars)	Income Statement Classification	2018 Amount of Gain (Loss) Recorded in Income on Derivative		2017 Amount of Gain (Loss) Recorded in Income on Derivative		2016 Amount of (Loss) Gain Recorded in Income on Derivative
Foreign Exchange Contracts	Other-net	$	17.0	$	51.5	$	(21.1	)