Comprehensive Income
Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets includes prior service costs and credits and net actuarial gains and losses for defined benefit plans; foreign currency cumulative translation adjustments; and unrealized derivative gains and losses, all net of tax. Changes in the components of Accumulated other comprehensive loss, all net of tax, for the three months and nine months ended October 3, 2015 and September 27, 2014 were as follows:
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Three Months Ended |
|
Nine Months Ended |
(in millions) |
October 3,
2015 |
|
September 27,
2014 |
|
October 3,
2015 |
|
September 27,
2014 |
Net earnings |
$ |
75.9 |
|
|
$ |
104.4 |
|
|
$ |
250.7 |
|
|
$ |
250.0 |
|
Other comprehensive income (loss): |
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|
|
|
|
|
|
|
|
Foreign currency cumulative translation adjustment |
(9.8 |
) |
|
(11.7 |
) |
|
(32.0 |
) |
|
(12.0 |
) |
Net change in unamortized prior service credits |
(0.2 |
) |
|
(0.4 |
) |
|
(0.6 |
) |
|
(1.0 |
) |
Net change in unamortized actuarial losses |
3.4 |
|
|
2.3 |
|
|
10.4 |
|
|
7.0 |
|
Net change in unrealized derivative losses |
1.7 |
|
|
3.1 |
|
|
(0.1 |
) |
|
4.2 |
|
Total other comprehensive income (loss) |
(4.9 |
) |
|
(6.7 |
) |
|
(22.3 |
) |
|
(1.8 |
) |
Comprehensive income |
$ |
71.0 |
|
|
$ |
97.7 |
|
|
$ |
228.4 |
|
|
$ |
248.2 |
|
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended October 3, 2015:
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|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Net actuarial losses |
|
Net derivative losses |
|
Total |
Beginning balance |
$ |
(36.7 |
) |
|
$ |
(4.3 |
) |
|
$ |
(449.6 |
) |
|
$ |
(7.3 |
) |
|
$ |
(497.9 |
) |
Other comprehensive income (loss) before reclassifications (A)
|
(9.8 |
) |
|
— |
|
|
0.1 |
|
|
3.4 |
|
|
(6.3 |
) |
Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
|
|
(0.2 |
) |
|
3.3 |
|
|
(1.7 |
) |
|
1.4 |
|
Net current-period other comprehensive income (loss) |
(9.8 |
) |
|
(0.2 |
) |
|
3.4 |
|
|
1.7 |
|
|
(4.9 |
) |
Ending balance |
$ |
(46.5 |
) |
|
$ |
(4.5 |
) |
|
$ |
(446.2 |
) |
|
$ |
(5.6 |
) |
|
$ |
(502.8 |
) |
(A) The tax effects for the three months ended October 3, 2015 were $0.7 million for foreign currency translation, $(0.1) million for net actuarial losses arising during the period and $(1.3) million for derivatives.
(B) See the table below for the tax effects for the three months ended October 3, 2015.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the nine months ended October 3, 2015:
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|
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|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Net actuarial losses |
|
Net derivative losses |
|
Total |
Beginning balance |
$ |
(14.5 |
) |
|
$ |
(3.9 |
) |
|
$ |
(456.6 |
) |
|
$ |
(5.5 |
) |
|
$ |
(480.5 |
) |
Other comprehensive income (loss) before reclassifications (A)
|
(32.0 |
) |
|
— |
|
|
0.6 |
|
|
6.9 |
|
|
(24.5 |
) |
Amounts reclassified from Accumulated other comprehensive loss (B)
|
— |
|
|
(0.6 |
) |
|
9.8 |
|
|
(7.0 |
) |
|
2.2 |
|
Net current-period other comprehensive income (loss) |
(32.0 |
) |
|
(0.6 |
) |
|
10.4 |
|
|
(0.1 |
) |
|
(22.3 |
) |
Ending balance |
$ |
(46.5 |
) |
|
$ |
(4.5 |
) |
|
$ |
(446.2 |
) |
|
$ |
(5.6 |
) |
|
$ |
(502.8 |
) |
(A) The tax effects for the nine months ended October 3, 2015 were $(2.9) million for foreign currency translation, $(0.3) million for net actuarial losses arising during the period and $(2.9) million for derivatives.
(B) See the table below for the tax effects for the nine months ended October 3, 2015.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended September 27, 2014:
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|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Net actuarial losses |
|
Net derivative losses |
|
Total |
Beginning balance |
$ |
10.7 |
|
|
$ |
(3.2 |
) |
|
$ |
(393.9 |
) |
|
$ |
(10.2 |
) |
|
$ |
(396.6 |
) |
Other comprehensive income (loss) before reclassifications (A)
|
(12.4 |
) |
|
— |
|
|
— |
|
|
2.6 |
|
|
(9.8 |
) |
Amounts reclassified from Accumulated other comprehensive loss (B)
|
0.7 |
|
|
(0.4 |
) |
|
2.3 |
|
|
0.5 |
|
|
3.1 |
|
Net current-period other comprehensive income (loss) |
(11.7 |
) |
|
(0.4 |
) |
|
2.3 |
|
|
3.1 |
|
|
(6.7 |
) |
Ending balance |
$ |
(1.0 |
) |
|
$ |
(3.6 |
) |
|
$ |
(391.6 |
) |
|
$ |
(7.1 |
) |
|
$ |
(403.3 |
) |
(A) The tax effects for the three months ended September 27, 2014 were $4.8 million for foreign currency translation, $(0.2) million for net actuarial losses arising during the period and $(1.3) million for derivatives.
(B) See the table below for the tax effects for the three months ended September 27, 2014.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the nine months ended September 27, 2014:
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|
(in millions) |
Foreign currency translation |
|
Prior service credits |
|
Net actuarial losses |
|
Net derivative losses |
|
Total |
Beginning balance |
$ |
11.0 |
|
|
$ |
(2.6 |
) |
|
$ |
(398.6 |
) |
|
$ |
(11.3 |
) |
|
$ |
(401.5 |
) |
Other comprehensive income (loss) before reclassifications (A)
|
(12.7 |
) |
|
— |
|
|
0.1 |
|
|
2.3 |
|
|
(10.3 |
) |
Amounts reclassified from Accumulated other comprehensive loss (B)
|
0.7 |
|
|
(1.0 |
) |
|
6.9 |
|
|
1.9 |
|
|
8.5 |
|
Net current-period other comprehensive income (loss) |
(12.0 |
) |
|
(1.0 |
) |
|
7.0 |
|
|
4.2 |
|
|
(1.8 |
) |
Ending balance |
$ |
(1.0 |
) |
|
$ |
(3.6 |
) |
|
$ |
(391.6 |
) |
|
$ |
(7.1 |
) |
|
$ |
(403.3 |
) |
(A) The tax effects for the nine months ended September 27, 2014 were $4.3 million for foreign currency translation, $(0.2) million for net actuarial losses arising during the period and $(1.3) million for derivatives.
(B) See the table below for the tax effects for the nine months ended September 27, 2014.
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three months and nine months ended October 3, 2015 and September 27, 2014:
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|
(in millions) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
Details about Accumulated other comprehensive income (loss) components |
|
October 3,
2015 |
|
September 27,
2014 |
|
October 3,
2015 |
|
September 27,
2014 |
|
Affected line item in the statement where net income is presented |
Amount of loss reclassified into earnings on foreign currency: |
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|
|
|
Foreign currency cumulative translation adjustment |
|
$ |
— |
|
|
$ |
(1.2 |
) |
|
$ |
— |
|
|
$ |
(1.2 |
) |
|
Gain on disposal of discontinued operations, net of tax |
|
|
— |
|
|
(1.2 |
) |
|
— |
|
|
(1.2 |
) |
|
Total before tax |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
0.5 |
|
|
Tax benefit |
|
|
$ |
— |
|
|
$ |
(0.7 |
) |
|
$ |
— |
|
|
$ |
(0.7 |
) |
|
Net of tax |
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|
Amortization of defined benefit items: |
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|
Prior service credits |
|
$ |
0.4 |
|
|
$ |
0.5 |
|
|
$ |
1.0 |
|
|
$ |
1.6 |
|
|
(A) |
Net actuarial losses |
|
(5.3 |
) |
|
(3.7 |
) |
|
(15.6 |
) |
|
(11.2 |
) |
|
(A) |
|
|
(4.9 |
) |
|
(3.2 |
) |
|
(14.6 |
) |
|
(9.6 |
) |
|
Total before tax |
|
|
1.8 |
|
|
1.3 |
|
|
5.4 |
|
|
3.7 |
|
|
Tax benefit |
|
|
$ |
(3.1 |
) |
|
$ |
(1.9 |
) |
|
$ |
(9.2 |
) |
|
$ |
(5.9 |
) |
|
Net of tax |
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Amount of gain (loss) reclassified into earnings on derivative contracts: |
|
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|
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|
Interest rate contracts |
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
) |
|
Interest expense |
Foreign exchange contracts |
|
2.4 |
|
|
(0.4 |
) |
|
9.5 |
|
|
(0.9 |
) |
|
Cost of sales |
Commodity contracts |
|
0.1 |
|
|
(0.2 |
) |
|
0.8 |
|
|
(1.9 |
) |
|
Cost of sales |
|
|
2.4 |
|
|
(0.7 |
) |
|
10.2 |
|
|
(2.9 |
) |
|
Total before tax |
|
|
(0.7 |
) |
|
0.2 |
|
|
(3.2 |
) |
|
1.0 |
|
|
Tax (provision) benefit |
|
|
$ |
1.7 |
|
|
$ |
(0.5 |
) |
|
$ |
7.0 |
|
|
$ |
(1.9 |
) |
|
Net of tax |
(A) These Accumulated other comprehensive income (loss) components are included in the computation of net pension and other benefit costs. See Note 13 – Pension and Other Postretirement Benefits for additional details.