| Comprehensive Income Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets includes foreign currency cumulative translation adjustments; prior service costs and credits and net actuarial gains and losses for defined benefit plans; 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 and six months ended July 2, 2022 and July 3, 2021 are as follows:
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Three Months Ended |
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Six Months Ended |
| (in millions) |
July 2,
2022 |
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July 3,
2021 |
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July 2,
2022 |
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July 3,
2021 |
| Net earnings |
$ |
197.3
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$ |
179.4 |
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$ |
371.5
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$ |
348.7 |
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| Other comprehensive (loss) income: |
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| Foreign currency cumulative translation adjustment |
(32.6) |
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3.2 |
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(30.5) |
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(4.3) |
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| Net change in unamortized prior service credits |
—
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— |
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—
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(0.2) |
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| Net change in unamortized actuarial gains |
0.3
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0.1 |
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0.5
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0.3 |
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| Net change in unrealized derivative gains |
20.0
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1.3 |
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27.6
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14.4 |
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| Total other comprehensive income |
(12.3) |
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4.6 |
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(2.4) |
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10.2 |
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| Comprehensive income |
$ |
185.0
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$ |
184.0 |
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$ |
369.1
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$ |
358.9 |
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The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended July 2, 2022:
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| (in millions) |
Foreign currency translation |
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Prior service credits |
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Net actuarial losses |
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Unrealized investment gains |
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Net derivative gains |
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Total |
| Beginning balance |
$ |
(32.4) |
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$ |
(3.7) |
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$ |
(3.2) |
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$ |
0.2 |
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$ |
17.5 |
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$ |
(21.6) |
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Other comprehensive (loss) income before reclassifications (A)
|
(32.6) |
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— |
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— |
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— |
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25.6 |
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|
(7.0) |
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Amounts reclassified from Accumulated other comprehensive loss (income) (B)
|
— |
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— |
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0.3 |
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— |
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(5.6) |
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(5.3) |
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| Net other comprehensive income |
(32.6) |
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— |
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0.3 |
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— |
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20.0 |
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(12.3) |
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| Ending balance |
$ |
(65.0) |
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$ |
(3.7) |
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$ |
(2.9) |
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$ |
0.2 |
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$ |
37.5 |
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$ |
(33.9) |
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(A) The tax effects for the three months ended July 2, 2022 were $1.5 million for foreign currency translation and $(9.2) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the three months ended July 2, 2022.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the six months ended July 2, 2022:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
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Net actuarial losses |
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Unrealized investment gains |
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Net derivative gains |
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Total |
| Beginning balance |
$ |
(34.5) |
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$ |
(3.7) |
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$ |
(3.4) |
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$ |
0.2 |
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$ |
9.9 |
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$ |
(31.5) |
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Other comprehensive (loss) income before reclassifications (A)
|
(30.5) |
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— |
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— |
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— |
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36.4 |
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5.9
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Amounts reclassified from Accumulated other comprehensive loss (income) (B)
|
— |
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— |
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0.5 |
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— |
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(8.8) |
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(8.3) |
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| Net other comprehensive (loss) income |
(30.5) |
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— |
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0.5 |
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— |
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27.6 |
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(2.4) |
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| Ending balance |
$ |
(65.0) |
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$ |
(3.7) |
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$ |
(2.9) |
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$ |
0.2 |
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$ |
37.5 |
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$ |
(33.9) |
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(A) The tax effects for the six months ended July 2, 2022 were $3.1 million for foreign currency translation and $(12.7) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the six months ended July 2, 2022.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the three months ended July 3, 2021:
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| (in millions) |
Foreign currency translation |
|
Prior service credits |
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Net actuarial losses |
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Net derivative losses |
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Total |
| Beginning balance |
$ |
(22.6) |
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$ |
(3.7) |
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$ |
(8.7) |
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$ |
(2.1) |
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$ |
(37.1) |
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Other comprehensive income (loss) before reclassifications (A)
|
3.2 |
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— |
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— |
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(0.9) |
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2.3
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Amounts reclassified from Accumulated other comprehensive loss (B)
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— |
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— |
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0.1 |
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2.2 |
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2.3
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| Net other comprehensive income |
3.2 |
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— |
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0.1 |
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1.3 |
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4.6
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| Ending balance |
$ |
(19.4) |
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$ |
(3.7) |
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$ |
(8.6) |
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$ |
(0.8) |
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$ |
(32.5) |
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(A) The tax effects for the three months ended July 3, 2021 were $(0.9) million for foreign currency translation and $0.2 million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the three months ended July 3, 2021.
The following table presents the changes in Accumulated other comprehensive loss by component, all net of tax, for the six months ended July 3, 2021:
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| (in millions) |
Foreign currency translation |
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Prior service credits |
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Net actuarial losses |
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Net derivative losses |
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Total |
| Beginning balance |
$ |
(15.1) |
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$ |
(3.5) |
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$ |
(8.9) |
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$ |
(15.2) |
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$ |
(42.7) |
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Other comprehensive (loss) income before reclassifications (A)
|
(4.3) |
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— |
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— |
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|
10.1 |
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|
5.8
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Amounts reclassified from Accumulated other comprehensive loss (income) (B)
|
— |
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(0.2) |
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0.3 |
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|
4.3 |
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4.4
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| Net other comprehensive (loss) income |
(4.3) |
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(0.2) |
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0.3 |
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14.4 |
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|
10.2
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| Ending balance |
$ |
(19.4) |
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$ |
(3.7) |
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$ |
(8.6) |
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$ |
(0.8) |
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$ |
(32.5) |
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(A) The tax effects for the six months ended July 3, 2021 were $0.0 million for foreign currency translation and $(3.4) million for derivatives.
(B) See the table depicting reclassification adjustments out of Accumulated other comprehensive loss below for the tax effects for the six months ended July 3, 2021.
The following table presents reclassification adjustments out of Accumulated other comprehensive loss during the three and six months ended July 2, 2022 and July 3, 2021:
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Three Months Ended |
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Six Months Ended |
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| Details about Accumulated other comprehensive income (loss) components (in millions) |
|
July 2,
2022 |
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July 3,
2021 |
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July 2,
2022 |
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July 3,
2021 |
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Affected line item in the statement where net income is presented |
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| Amortization of defined benefit items: |
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| Prior service credits |
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$ |
—
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$ |
— |
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$ |
—
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$ |
0.2 |
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Other income (expense), net |
| Net actuarial losses |
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(0.3) |
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(0.2) |
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(0.5) |
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(0.4) |
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Other income (expense), net |
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(0.3) |
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(0.2) |
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(0.5) |
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(0.2) |
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Earnings before income taxes |
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—
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0.1 |
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—
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|
0.1 |
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Income tax provision |
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$ |
(0.3) |
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$ |
(0.1) |
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$ |
(0.5) |
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$ |
(0.1) |
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Net earnings from continuing operations |
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| Amount of (loss) gain reclassified into earnings on derivative contracts: |
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| Interest rate contracts |
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$ |
(0.1) |
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$ |
(0.2) |
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$ |
(0.1) |
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$ |
(0.3) |
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Interest expense |
| Foreign exchange contracts |
|
5.3
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|
(4.0) |
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|
8.0
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|
(7.1) |
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Cost of sales |
| Commodity contracts |
|
2.3
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|
1.2 |
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3.9
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1.5 |
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Cost of sales |
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7.5
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(3.0) |
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11.8
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|
(5.9) |
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Earnings before income taxes |
|
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(1.9) |
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|
0.8 |
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(3.0) |
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1.6 |
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Income tax provision |
|
|
$ |
5.6
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$ |
(2.2) |
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$ |
8.8
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$ |
(4.3) |
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Net earnings from continuing operations |
|