Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 27, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-7685 | |
Entity Registrant Name | AVERY DENNISON CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-1492269 | |
Entity Address, Address Line One | 8080 Norton Parkway | |
Entity Address, City or Town | Mentor | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44060 | |
City Area Code | 440 | |
Local Phone Number | 534-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 80,519,053 | |
Entity Central Index Key | 0000008818 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common stock, $1 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, $1 par value | |
Trading Symbol | AVY | |
Security Exchange Name | NYSE | |
1.25% Senior Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.25% Senior Notes due 2025 | |
Trading Symbol | AVY25 | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 208.8 | $ 215 |
Trade accounts receivable, less allowances of $36.7 and $34.4 at June 29, 2024 and December 30, 2023, respectively | 1,528.6 | 1,414.9 |
Inventories | 979.9 | 920.7 |
Other current assets | 250.5 | 245.4 |
Total current assets | 2,967.8 | 2,796 |
Property, plant and equipment, net | 1,590 | 1,625.8 |
Goodwill | 1,989.8 | 2,013.6 |
Other intangibles resulting from business acquisitions, net | 800.9 | 849.1 |
Deferred tax assets | 113 | 115.7 |
Other assets | 836.7 | 809.6 |
Total assets | 8,298.2 | 8,209.8 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt and finance leases | 1,172.3 | 622.2 |
Accounts payable | 1,313.4 | 1,277.1 |
Accrued payroll and employee benefits | 235.4 | 213.4 |
Other current liabilities | 579.1 | 586.8 |
Total current liabilities | 3,300.2 | 2,699.5 |
Long-term debt and finance leases | 2,046.5 | 2,622.1 |
Long-term retirement benefits and other liabilities | 415.9 | 500.3 |
Deferred tax liabilities and income taxes payable | 248.5 | 260 |
Commitments and contingencies (see Note 10) | ||
Shareholders’ equity: | ||
Common stock, $1 par value per share, authorized – 400,000,000 shares at June 29, 2024 and December 30, 2023; issued – 124,126,624 shares at June 29, 2024 and December 30, 2023; outstanding – 80,570,966 shares and 80,495,585 shares at June 29, 2024 and December 30, 2023, respectively | 124.1 | 124.1 |
Capital in excess of par value | 833.1 | 854.5 |
Retained earnings | 4,922.2 | 4,691.8 |
Treasury stock at cost, 43,555,658 shares and 43,631,039 shares at June 29, 2024 and December 30, 2023, respectively | (3,154.6) | (3,134.4) |
Accumulated other comprehensive loss | (437.7) | (408.1) |
Total shareholders’ equity | 2,287.1 | 2,127.9 |
Total liabilities and shareholders' equity | $ 8,298.2 | $ 8,209.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 36.7 | $ 34.4 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued (in shares) | 124,126,624 | 124,126,624 |
Common stock, outstanding (in shares) | 80,570,966 | 80,495,585 |
Treasury stock (in shares) | 43,555,658 | 43,631,039 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,235.3 | $ 2,090.5 | $ 4,386.6 | $ 4,155.5 |
Cost of products sold | 1,572.6 | 1,537.1 | 3,091.7 | 3,059.8 |
Gross profit | 662.7 | 553.4 | 1,294.9 | 1,095.7 |
Marketing, general and administrative expense | 373.9 | 319.6 | 739.1 | 654 |
Other expense (income), net | 27 | 68.3 | 39.6 | 86.1 |
Interest expense | 29.2 | 31.9 | 57.8 | 58.3 |
Other non-operating expense (income), net | (5.8) | (6.6) | (14.4) | (11.2) |
Income before taxes | 238.4 | 140.2 | 472.8 | 308.5 |
Provision for income taxes | 61.6 | 39.8 | 123.6 | 86.9 |
Net income | $ 176.8 | $ 100.4 | $ 349.2 | $ 221.6 |
Per share amounts: | ||||
Net income per common share (in dollars per share) | $ 2.19 | $ 1.24 | $ 4.34 | $ 2.74 |
Net income per common share, assuming dilution (in dollars per share) | $ 2.18 | $ 1.24 | $ 4.31 | $ 2.73 |
Weighted average number of shares outstanding: | ||||
Common shares (in shares) | 80.6 | 80.7 | 80.5 | 80.8 |
Common shares, assuming dilution (in shares) | 81 | 81 | 81 | 81.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 176.8 | $ 100.4 | $ 349.2 | $ 221.6 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (17.8) | (27.3) | (29.7) | (26.9) |
Pension and other postretirement benefits | 0.2 | (0.2) | 0.4 | (0.4) |
Cash flow hedges | 1.9 | (4.7) | (0.3) | (1.9) |
Other comprehensive income (loss), net of tax | (15.7) | (32.2) | (29.6) | (29.2) |
Total comprehensive income, net of tax | $ 161.1 | $ 68.2 | $ 319.6 | $ 192.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Operating Activities | ||
Net income | $ 349.2 | $ 221.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 98.7 | 91.5 |
Amortization | 57.2 | 54.8 |
Provision for credit losses and sales returns | 28.2 | 18.9 |
Stock-based compensation | 17.4 | 12.2 |
Deferred taxes and other non-cash taxes | (3.8) | (17.5) |
Other non-cash expense and loss (income and gain), net | 46.6 | 17 |
Changes in assets and liabilities and other adjustments | (276) | (207) |
Net cash provided by operating activities | 317.5 | 191.5 |
Investing Activities | ||
Purchases of property, plant and equipment | (96.3) | (115.9) |
Purchases of software and other deferred charges | (12.9) | (11) |
Purchases of Argentine Blue Chip Swap securities | (34.2) | 0 |
Proceeds from sales of Argentine Blue Chip Swap securities | 24 | 0 |
Proceeds from sales of property, plant and equipment | 0.3 | 0.3 |
Proceeds from insurance and sales (purchases) of investments, net | 2.2 | (1.2) |
Payments for acquisitions, net of cash acquired, and venture investments | (1.9) | (194.1) |
Net cash used in investing activities | (118.8) | (321.9) |
Financing Activities | ||
Net increase (decrease) in borrowings with maturities of three months or less | (2.2) | 281.8 |
Additional long-term borrowings | 0 | 394.9 |
Repayments of long-term debt and finance leases | (3.5) | (252.6) |
Dividends paid | (136.2) | (126.2) |
Share repurchases | (40.7) | (89.5) |
Net (tax withholding) proceeds related to stock-based compensation | (18.4) | (23.7) |
Other | (1.1) | (1.6) |
Net cash (used in) provided by financing activities | (202.1) | 183.1 |
Effect of foreign currency translation on cash balances | (2.8) | (2.8) |
Increase (decrease) in cash and cash equivalents | (6.2) | 49.9 |
Cash and cash equivalents, beginning of year | 215 | 167.2 |
Cash and cash equivalents, end of period | $ 208.8 | $ 217.1 |
General
General | 6 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The unaudited Condensed Consolidated Financial Statements and related notes in this Quarterly Report on Form 10-Q are presented as permitted by Article 10 of Regulation S-X and do not contain certain information included in the audited Consolidated Financial Statements and related notes in our 2023 Annual Report on Form 10-K, which should be read in conjunction with this Quarterly Report on Form 10-Q. These unaudited Condensed Consolidated Financial Statements contain all adjustments of a normal and recurring nature necessary for a fair statement of our interim results. Interim results of operations are not necessarily indicative of future results. These unaudited Condensed Consolidated Financial Statements reflect our current estimates and assumptions affecting (i) our reported amounts of assets and liabilities and related disclosures as of the date of the financial statements and (ii) our reported amounts of sales and expenses during the reporting periods presented. Fiscal Periods The three and six months ended June 29, 2024 and July 1, 2023 each consisted of thirteen-week and twenty-six week periods, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Resulting from Business Acquisitions | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles Resulting from Business Acquisitions | Goodwill and Other Intangibles Resulting from Business Acquisitions Changes in the net carrying amount of goodwill for the six months ended June 29, 2024 by reportable segment are shown below. (In millions) Materials Group Solutions Group Total Goodwill as of December 30, 2023 $ 630.7 $ 1,382.9 $ 2,013.6 Acquisition adjustments (1) — (2.9) (2.9) Translation adjustments (14.1) (6.8) (20.9) Goodwill as of June 29, 2024 $ 616.6 $ 1,373.2 $ 1,989.8 (1) Measurement period adjustments related to the purchase price allocation for our 2023 acquisitions of Silver Crystal Group, LG Group, Inc., and Thermopatch, Inc. Amortization expense for finite-lived intangible assets resulting from business acquisitions was $22.3 million and $21.6 million for the three months ended June 29, 2024 and July 1, 2023, respectively, and $44.7 million and $42.1 million for the six months ended June 29, 2024 and July 1, 2023, respectively. Estimated future amortization expense related to existing finite-lived intangible assets for the remainder of fiscal year 2024 and for each of the next four fiscal years and thereafter is shown below. (In millions) Estimated 2024 (remainder of year) $ 44.5 2025 88.4 2026 85.5 2027 85.2 2028 77.3 2029 and thereafter 265.2 |
Debt
Debt | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt In June 2024, we entered into a Credit Agreement (the "Credit Agreement") related to our revolving credit facility (the “Revolver”) to borrow up to an aggregate of $1.20 billion through its maturity date of June 26, 2029. The Revolver refinanced our Fifth Amended and Restated Credit Agreement dated as of February 13, 2020, as amended. Pursuant to the Credit Agreement, the commitments under the Revolver may be increased by up to $600 million, subject to lender approvals and customary requirements. Under certain circumstances, we may request that the commitments under the Revolver be extended for one-year periods in accordance with the terms and conditions of the Credit Agreement. We use the Revolver as a back-up facility for our commercial paper program and for other corporate purposes. The Revolver contains a financial covenant requiring that we maintain a specified ratio of total debt minus unrestricted cash and cash equivalents to a certain measure of income. As of both June 29, 2024 and December 30, 2023, we were in compliance with the applicable financial covenants. No balance was outstanding under the Revolver as of June 29, 2024 or our prior revolving credit facility as of December 30, 2023. In the six months ended June 29, 2024, we reclassified $25 million of our medium-term notes due in the second quarter of 2025 and our €500 million senior notes due in the first quarter of 2025 from "Long-term debt and finance leases" to "Short-term borrowings and current portion of long-term debt and finance leases" in the unaudited Condensed Consolidated Balance Sheets. The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury securities or euro government bond securities, as applicable, on notes with similar rates, credit ratings and remaining maturities. The fair value of short-term borrowings, which include commercial paper issuances and short-term lines of credit, approximates their carrying value given the short duration of these obligations. The fair value of our total debt was $3.05 billion at June 29, 2024 and $3.11 billion at December 30, 2023. Fair value was determined based primarily on Level 2 inputs, which are inputs other than quoted prices in active markets that are either directly or indirectly observable. |
Cost Reduction Actions
Cost Reduction Actions | 6 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Cost Reduction Actions | Cost Reduction Actions 2023 Actions We recorded $13.2 million in restructuring charges, net of reversals, during the six months ended June 29, 2024. These charges consisted of severance and related costs for the reduction of approximately 380 positions, as well as asset impairment and lease cancellation charges, at various locations across our company. In the third quarter of 2023, we approved a restructuring plan (the “2023 Plan”) to further optimize the European footprint of our Materials Group reportable segment by reducing operations in a manufacturing facility in Belgium. The cumulative charges associated with the 2023 Plan, which we recorded in 2023, consisted of severance and related costs for the reduction of approximately 210 positions, as well as asset impairment charges. We do not anticipate additional charges related to the 2023 Plan and expect it to be substantially completed by mid-2025. During the six months ended June 29, 2024, restructuring charges and payments were as follows: (In millions) Accrual at December 30, 2023 Charges, Net of Reversals Cash Payments Non-cash Impairment Foreign Currency Translation Accrual at June 29, 2024 2023 Actions Severance and related costs $ 27.7 $ 11.2 $ (23.2) $ — $ (.6) $ 15.1 Asset impairment charges — 1.6 — (1.6) — — Lease cancellation charges — .4 (.4) — — — Total $ 27.7 $ 13.2 $ (23.6) $ (1.6) $ (.6) $ 15.1 Accruals for severance and related costs, as well as lease cancellation charges, were included in “Other current liabilities” and "Long-term retirement benefits and other liabilities" in the unaudited Condensed Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets, less selling costs, if applicable. Restructuring charges were included in “Other expense (income), net” in the unaudited Condensed Consolidated Statements of Income. The table below shows the total amount of restructuring charges, net of reversals, incurred by reportable segment and Corporate. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Restructuring charges, net of reversals, by reportable segment and Corporate Materials Group $ 1.6 $ 5.6 $ 4.1 $ 19.9 Solutions Group 5.4 4.4 8.8 7.8 Corporate .2 — .3 (.1) Total $ 7.2 $ 10.0 $ 13.2 $ 27.6 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We enter into foreign exchange hedge contracts to reduce the risk from foreign 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. We also enter into futures contracts to hedge certain price fluctuations for a portion of our anticipated domestic purchases of natural gas. The impact of these foreign exchange and commodities hedge activities on the unaudited Condensed Consolidated Financial Statements was not material. In March 2020, we entered into U.S. dollar to euro cross-currency swap contracts with a total notional amount of $250 million to have the effect of converting the 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. These contracts have been designated as cash flow hedges. The fair value of these contracts was $9.8 million and $2.3 million as of June 29, 2024 and December 30, 2023, respectively, which was included in "Other Assets" in the unaudited Condensed Consolidated Balance Sheets. Refer to Note 9, “Fair Value Measurements,” to the unaudited Condensed Consolidated Financial Statements for more information. We recorded no ineffectiveness from our cross-currency swap contracts to earnings during the six months ended June 29, 2024 or July 1, 2023. |
Taxes Based on Income
Taxes Based on Income | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Taxes Based on Income | Taxes Based on Income The following table summarizes our income before taxes, provision for income taxes, and effective tax rate: Three Months Ended Six Months Ended (Dollars in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income before taxes $ 238.4 $ 140.2 $ 472.8 $ 308.5 Provision for income taxes 61.6 39.8 123.6 86.9 Effective tax rate 25.8 % 28.4 % 26.1 % 28.2 % Our provision for income taxes for the three and six months ended June 29, 2024 included a net tax charge related to the tax on global intangible low-taxed income (“GILTI”) of our foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from foreign-derived intangible income (“FDII”). Our provision for income taxes for these periods was favorably affected by (i) higher tax incentives in certain foreign jurisdictions and the tax impacts resulting from Blue Chip Swap transactions in Argentina and (ii) discrete tax benefits from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years. Our provision for income taxes for the three and six months ended July 1, 2023 included a net tax charge related to the tax on GILTI of our foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from FDII. Our provision for income taxes for these periods (i) was adversely affected by higher non-deductible expenses primarily resulting from foreign currency and interest rate fluctuations, as well as lower tax incentives in certain foreign jurisdictions, and (ii) included discrete tax benefits from decreases in certain tax reserves as a result of favorable court rulings in a foreign jurisdiction. The amount of income taxes we pay is subject to ongoing audits by taxing jurisdictions around the world. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts and circumstances existing at the time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. The final determination of tax audits and any related legal proceedings could materially differ from the amounts currently reflected in our tax provision for income taxes and the related liabilities. We and our U.S. subsidiaries have completed the Internal Revenue Service Compliance Assurance Process through 2021. With limited exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2010. It is reasonably possible that, during the next 12 months, we may realize a net decrease in our uncertain tax positions, including interest and penalties, of approximately $6 million, primarily as a result of closing tax years. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Net income per common share was computed as follows: Three Months Ended Six Months Ended (In millions, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (A) Net income $ 176.8 $ 100.4 $ 349.2 $ 221.6 (B) Weighted average number of common shares outstanding 80.6 80.7 80.5 80.8 Dilutive shares (additional common shares issuable under stock-based awards) .4 .3 .5 .4 (C) Weighted average number of common shares outstanding, assuming dilution 81.0 81.0 81.0 81.2 Net income per common share: (A) ÷ (B) $ 2.19 $ 1.24 $ 4.34 $ 2.74 Net income per common share, assuming dilution: (A) ÷ (C) $ 2.18 $ 1.24 $ 4.31 $ 2.73 Certain stock-based compensation awards were excluded from the computation of net income per common share, assuming dilution, because they would not have had a dilutive effect. Stock-based compensation awards excluded from the computation totaled 0.1 million shares for the three and six months ended June 29, 2024 and July 1, 2023. |
Supplemental Equity and Compreh
Supplemental Equity and Comprehensive Income Information | 6 Months Ended |
Jun. 29, 2024 | |
Stockholders' Equity Note [Abstract] | |
Supplemental Equity and Comprehensive Income Information | Supplemental Equity and Comprehensive Income Information Consolidated Changes in Shareholders’ Equity Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Common stock issued, $1 par value per share $ 124.1 $ 124.1 $ 124.1 $ 124.1 Capital in excess of par value Beginning balance $ 834.0 $ 850.8 $ 854.5 $ 879.3 Issuance of shares under stock-based compensation plans (1) (.9) .5 (21.4) (28.0) Ending balance $ 833.1 $ 851.3 $ 833.1 $ 851.3 Retained earnings Beginning balance $ 4,809.1 $ 4,486.4 $ 4,691.8 $ 4,414.6 Net income 176.8 100.4 349.2 221.6 Issuance of shares under stock-based compensation plans (1) .9 .8 4.1 5.6 Contribution of shares to 401(k) plan (1) 6.3 4.7 13.3 11.3 Dividends (70.9) (65.4) (136.2) (126.2) Ending balance $ 4,922.2 $ 4,526.9 $ 4,922.2 $ 4,526.9 Treasury stock at cost Beginning balance $ (3,141.2) $ (3,057.4) $ (3,134.4) $ (3,021.8) Repurchase of shares for treasury (25.1) (38.8) (40.7) (89.5) Issuance of shares under stock-based compensation plans (1) 9.8 .4 16.3 13.0 Contribution of shares to 401(k) plan (1) 1.9 1.9 4.2 4.4 Ending balance $ (3,154.6) $ (3,093.9) $ (3,154.6) $ (3,093.9) Accumulated other comprehensive loss Beginning balance $ (422.0) $ (361.0) $ (408.1) $ (364.0) Other comprehensive income (loss), net of tax (15.7) (32.2) (29.6) (29.2) Ending balance $ (437.7) $ (393.2) $ (437.7) $ (393.2) (1) We fund a portion of our employee-related costs using shares of our common stock held in treasury. We reduce capital in excess of par value based on the grant date fair value of vesting awards and record net gains or losses associated with using treasury shares to retained earnings. Dividends per common share were as follows: Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Dividends per common share $ .88 $ .81 $ 1.69 $ 1.56 Changes in Accumulated Other Comprehensive Loss The changes in “Accumulated other comprehensive loss” (net of tax) for the six-month period ended June 29, 2024 were as follows: (In millions) Foreign Currency Translation Pension and Other Postretirement Benefits Cash Flow Hedges Total Balance as of December 30, 2023 $ (328.6) $ (77.5) $ (2.0) $ (408.1) Other comprehensive income (loss) before reclassifications, net of tax (29.7) — (.6) (30.3) Reclassifications to net income, net of tax — .4 .3 .7 Other comprehensive income (loss), net of tax (29.7) .4 (.3) (29.6) Balance as of June 29, 2024 $ (358.3) $ (77.1) $ (2.3) $ (437.7) The changes in “Accumulated other comprehensive loss” (net of tax) for the six-month period ended July 1, 2023 were as follows: (In millions) Foreign Currency Translation Pension and Other Postretirement Benefits Cash Flow Hedges Total Balance as of December 31, 2022 $ (314.0) $ (51.3) $ 1.3 $ (364.0) Other comprehensive income (loss) before reclassifications, net of tax (26.9) — (4.0) (30.9) Reclassifications to net income, net of tax — (.4) 2.1 1.7 Other comprehensive income (loss), net of tax (26.9) (.4) (1.9) (29.2) Balance as of July 1, 2023 $ (340.9) $ (51.7) $ (.6) $ (393.2) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Assets and liabilities carried at fair value, measured on a recurring basis, as of June 29, 2024 were as follows: Fair Value Measurements Using (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Assets Investments $ 48.8 $ 29.2 $ 19.6 $ — Derivative assets 5.8 — 5.8 — Bank drafts 6.1 6.1 — — Cross-currency swap 9.8 — 9.8 — Liabilities Derivative liabilities $ 7.8 $ .7 $ 7.1 $ — Contingent consideration liabilities 9.9 — — 9.9 Assets and liabilities carried at fair value, measured on a recurring basis, as of December 30, 2023 were as follows: Fair Value Measurements Using (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets Investments $ 37.8 $ 19.6 $ 18.2 $ — Derivative assets 6.3 — 6.3 — Bank drafts 5.3 5.3 — — Cross-currency swap 2.3 — 2.3 — Liabilities Derivative liabilities $ 7.6 $ 1.6 $ 6.0 $ — Contingent consideration liabilities 10.0 — — 10.0 Investments include fixed income securities (primarily U.S. government and corporate debt and equity securities) measured at fair value using quoted prices/bids and a money market fund measured at fair value using net asset value. As of June 29, 2024, investments of $2.2 million, $36.2 million and $10.4 million were included in “Cash and cash equivalents,” “Other current assets,” and "Other assets," respectively, in the unaudited Condensed Consolidated Balance Sheets. As of December 30, 2023, investments of $2.7 million and $35.1 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the unaudited Condensed Consolidated Balance Sheets. Derivatives that are exchange-traded are measured at fair value using quoted market prices and classified within Level 1 of the valuation hierarchy. Derivatives measured based on foreign exchange rate inputs that are readily available in public markets are classified within Level 2 of the valuation hierarchy. Bank drafts (maturities greater than three months), which are valued at face value due to their short-term nature, were included in “Other current assets” in the unaudited Condensed Consolidated Balance Sheets. Contingent consideration liabilities as of June 29, 2024 relate to estimated earn-out payments associated with certain acquisitions completed in 2023, 2022 and 2021, which are subject to the acquired companies achieving certain post-acquisition performance targets. These liabilities were recorded based on the expected payments and have been classified as Level 3. Activity related to contingent consideration was immaterial for the six months ended June 29, 2024 and July 1, 2023. In addition to the investments described above, we hold venture investments that had a total carrying value of approximately $44 million and $71 million as of June 29, 2024 and December 30, 2023, respectively, which was included in “Other assets” in the unaudited Condensed Consolidated Balance Sheets. During the three months ended June 29, 2024, we began revaluing certain venture investments based on Level 1 inputs; the fair value of these investments was $10.4 million as of June 29, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are involved in various lawsuits, claims, inquiries and other regulatory and compliance matters, most of which are routine to the nature of our business. When it is probable that a loss will be incurred and where a range of the loss can be reasonably estimated, the best estimate within the range is accrued. When the best estimate within the range cannot be determined, the low end of the range is accrued. The ultimate resolution of these claims could affect future results of operations should our exposure be materially different from our estimates or should we incur liabilities that were not previously accrued. Potential insurance reimbursements are not offset against potential liabilities. We were party to a litigation in which ADASA Inc. (“Adasa”), an unrelated third party, alleged that certain of our RFID products within our Solutions Group reportable segment infringed its patent. The case was filed on October 24, 2017 in the United States District Court in the District of Oregon (Eugene Division) and was captioned ADASA Inc. v. Avery Dennison Corporation. We recorded a contingent liability in the amount of $26.6 million related to this matter in the second quarter of 2021 based on a jury verdict issued on May 14, 2021. We appealed the first instance judgment associated with the jury verdict – which resulted in additional potential liability for the RFID tags sold during the period from the jury verdict to the issuance of the first instance judgment, a higher royalty applicable to tags sold after the judgment and a royalty on additional late-disclosed tags, as well as sanctions, prejudgment interest, costs, and attorneys’ fees, as well as an ongoing royalty on in-scope tags sold after October 14, 2021 – to the United States Court of Appeals for the Federal Circuit (the “CAFC”). During the fourth quarter of 2022, the CAFC issued its opinion, reversing the grant of summary judgment of validity as to anticipation and obviousness, vacating the sanctions ruling, and remanding the case for retrial with respect to validity for anticipation and obviousness over the prior art. The CAFC affirmed subject-matter eligibility and damages if liability was determined on retrial. On remand, the trial court was required to reconsider the amount of sanctions consistent with the CAFC's instruction to limit sanctions to the late-disclosed tags. After the U.S. Supreme Court denied our writ of certiorari petition on May 30, 2023, the trial court’s retrial began on July 10, 2023. On July 18, 2023, the jury in the retrial issued a verdict that Adasa’s patent is valid. We increased our contingent liability to reflect our then-best estimate of the anticipated judgment to $80.4 million as of July 1, 2023, with an expectation to continue adjusting our accrual quarterly, as appropriate. As of December 30, 2023, our contingent liability for this matter was $82.9 million. On January 25, 2024, the district court issued a revised sanctions order lowering the sanctions against us from approximately $20 million to $5.2 million based on a rate of $0.0025/late-reported tag, which was consistent with the amount we had accrued. In February 2024, the district court issued its decision denying our motion for judgment as a matter of law and our motion for a new trial. On March 7, 2024, the Court issued an amended final judgment, assessing damages, pre- and post-judgment interest, costs, attorneys' fees, sanctions, and ongoing royalties. On April 25, 2024, we executed a Settlement Agreement, License and Mutual Release with Adasa pursuant to which, among other things, (i) we agreed to pay $75.0 million to Adasa without any concessions or admissions of liability; (ii) Adasa agreed to grant us a worldwide, nonexclusive, nontransferable fully-paid up, and ongoing royalty-free perpetual license, without the right to sublicense, to the patents at issue in the litigation; and (iii) the parties mutually released all claims against one another. We paid the agreed-upon settlement amount to Adasa on April 26, 2024. No court approval of the settlement was required, however, as required by the settlement agreement, Adasa filed a Stipulation of Satisfaction of Judgment with the trial court on April 29, 2024. Because of the uncertainties associated with claims resolution and litigation, future expenses to resolve legal proceedings could be higher than the liabilities we have accrued; however, we are unable to reasonably estimate a range of potential expenses. If information were to become available that allowed us to reasonably estimate a range of potential expenses determined to be probable in an amount higher or lower than what we have accrued, we would adjust our accrued liabilities accordingly. Additional lawsuits, claims, inquiries and other regulatory and compliance matters could arise in the future. The range of expenses for resolving any future matters would be assessed as they arise; until then, a range of potential expenses for their resolution cannot be determined. Based upon current information, we believe that the impact of the resolution of legal proceedings would not be, individually or in the aggregate, material to our financial position, results of operations or cash flows. Environmental Expenditures Environmental expenditures are generally expensed. When it is probable that a loss will be incurred and where a range of the loss can be reasonably estimated, the best estimate within the range is accrued. When the best estimate within the range cannot be determined, the low end of the range is accrued. The ultimate resolution of these matters could affect future results of operations should our exposure be materially different from our estimates or should we incur liabilities that were not previously accrued. Potential insurance reimbursements are not offset against potential liabilities. We review our estimates of the costs of complying with environmental laws related to the remediation and cleanup of various sites, including sites in which governmental agencies have designated us as a potentially responsible party (“PRP”). Environmental expenditures for newly acquired assets and those that extend or improve the economic useful life of existing assets are capitalized and amortized over the shorter of the estimated useful life of the acquired asset or the remaining life of the existing asset. As of June 29, 2024, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or other responsible state agencies as a PRP at ten waste disposal or waste recycling sites that are the subject of separate investigations or proceedings concerning alleged soil and/or groundwater contamination. No settlement of our liability related to any of these sites has been agreed upon. We are participating with other PRPs at these sites and anticipate that our share of remediation costs will be determined pursuant to agreements that we enter into with the EPA or other governmental authorities. These estimates could change as a result of changes in planned remedial actions, remediation technologies, site conditions, the estimated time to complete remediation, environmental laws and regulations, and other factors. Because of the uncertainties associated with environmental assessment and remediation activities, our future expenses to remediate these sites could be higher than the liabilities we have accrued; however, we are unable to reasonably estimate a range of potential expenses determined to be probable. If information were to become available that allowed us to reasonably estimate a range of potential expenses in an amount higher or lower than what we have accrued, we would adjust our environmental liabilities accordingly. In addition, we may be identified as a PRP at additional sites in the future. The range of expenses for remediation of any future-identified sites would be addressed as they arise; until then, a range of expenses for their remediation cannot be determined. The activity related to our environmental liabilities (In millions) Balance at December 30, 2023 $ 24.5 Charges, net of reversals 1.1 Payments (5.1) Balance at June 29, 2024 $ 20.5 Approximately $11 million of this balance was classified as short-term and included in “ Other current liabilities |
Segment and Disaggregated Reven
Segment and Disaggregated Revenue Information | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Segment and Disaggregated Revenue Information | Segment and Disaggregated Revenue Information Disaggregated Revenue Information Disaggregated revenue information is shown below in the manner that best reflects how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue from our Materials Group reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue from our Solutions Group reportable segment is shown by product group. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net sales to unaffiliated customers Materials Group: U.S. $ 441.6 $ 430.7 $ 879.0 $ 877.1 Europe, the Middle East and North Africa 549.9 510.3 1,084.6 1,009.2 Asia 344.0 338.1 670.2 653.7 Latin America 127.0 117.2 247.6 230.9 Other 84.3 79.7 161.9 165.6 Total Materials Group 1,546.8 1,476.0 3,043.3 2,936.5 Solutions Group: Apparel and other 476.2 398.9 935.8 817.7 Identification Solutions and Vestcom 212.3 215.6 407.5 401.3 Total Solutions Group 688.5 614.5 1,343.3 1,219.0 Net sales to unaffiliated customers $ 2,235.3 $ 2,090.5 $ 4,386.6 $ 4,155.5 Additional Segment Information Additional financial information by reportable segment and Corporate is shown below. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Intersegment sales Materials Group $ 38.3 $ 38.2 $ 85.3 $ 73.1 Solutions Group 15.4 10.0 26.3 20.0 Intersegment sales $ 53.7 $ 48.2 $ 111.6 $ 93.1 Income before taxes Materials Group $ 223.4 $ 193.8 $ 449.5 $ 354.3 Solutions Group 64.1 (7.2) 120.2 44.3 Corporate expense (25.7) (21.1) (53.5) (43.0) Interest expense (29.2) (31.9) (57.8) (58.3) Other non-operating expense (income), net 5.8 6.6 14.4 11.2 Income before taxes $ 238.4 $ 140.2 $ 472.8 $ 308.5 Other expense (income), net, by reportable segment and Corporate Materials Group $ 21.1 $ 6.1 $ 35.5 $ 20.4 Solutions Group 5.7 62.2 3.8 65.8 Corporate .2 — .3 (.1) Other expense (income), net $ 27.0 $ 68.3 $ 39.6 $ 86.1 Other expense (income), net, by type were as follows: Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Other expense (income), net, by type Restructuring charges, net of reversals: Severance and related costs, net of reversals $ 6.3 $ 8.8 $ 11.2 $ 25.9 Asset impairment and lease cancellation charges .9 1.2 2.0 1.7 Other items: (Gain) loss on venture investments 15.0 — 17.2 — Losses from Argentine peso remeasurement and Blue Chip Swap transactions 4.1 — 15.4 — Outcomes of legal matters and settlements, net .4 53.8 (6.5) 53.8 Transaction and related costs .3 4.0 .3 4.2 (Gain) loss on sales of assets — .5 — .5 Other expense (income), net $ 27.0 $ 68.3 $ 39.6 $ 86.1 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 29, 2024 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Inventories The table below summarizes amounts in inventories. (In millions) June 29, 2024 December 30, 2023 Raw materials $ 397.8 $ 415.4 Work-in-progress 243.1 238.2 Finished goods 339.0 267.1 Inventories $ 979.9 $ 920.7 Property, Plant and Equipment, Net The table below summarizes the amounts in property, plant and equipment, net. (In millions) June 29, 2024 December 30, 2023 Property, plant and equipment $ 3,936.4 $ 3,970.4 Accumulated depreciation (2,346.4) (2,344.6) Property, plant and equipment, net $ 1,590.0 $ 1,625.8 Allowance for Credit Losses The activity related to our allowance for credit losses is shown below. Six Months Ended (In millions) June 29, 2024 July 1, 2023 Beginning balance $ 34.4 $ 34.4 Provision for credit losses 5.8 — Amounts written off (2.7) (3.0) Other, including foreign currency translation (.8) .9 Ending balance $ 36.7 $ 32.3 Supplier Finance Programs We have agreements with third-party financial institutions to facilitate payments to suppliers. These third-party financial institutions offer voluntary supply chain finance programs that enable certain of our suppliers, at the supplier’s sole discretion, to sell our payment obligations to a financial institution on terms directly negotiated with the financial institution. Participating suppliers decide which payment obligations are sold to the financial institution and we have no economic interest in a supplier’s decision to sell these payment obligations. We make payments to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. Our obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers' decisions to sell amounts under these arrangements. Amounts due under our supply chain finance programs are included in accounts payable in our unaudited Condensed Consolidated Balance Sheets and activities related to these programs are presented as operating activities in our unaudited Condensed Consolidated Statements of Cash Flows. As of June 29, 2024 and December 30, 2023, the amounts due to financial institutions for suppliers that participate in these programs were $404.3 million and $397.4 million, respectively. Argentine Blue Chip Swap During 2019, the Argentine government instituted exchange controls restricting the ability of entities and individuals to exchange Argentine pesos for foreign currencies or remit foreign currency out of Argentina. Due to these currency exchange restrictions, markets in Argentina use a legal trading mechanism known as the Blue Chip Swap that allows entities to transfer U.S. dollars in and out of Argentina. During the three and six months ended June 29, 2024, we entered into Blue Chip Swap transactions that resulted in losses of approximately $4 million and $10 million, respectively, that we recorded in "Other expense (income), net" in the unaudited Condensed Consolidated Statements of Income. Purchases and the proceeds from sales of Argentine Blue Chip Swap securities were included in investing activities in our unaudited Condensed Consolidated Statements of Cash Flows. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 176.8 | $ 100.4 | $ 349.2 | $ 221.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles Resulting from Business Acquisitions (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill for the six months ended June 29, 2024 by reportable segment are shown below. (In millions) Materials Group Solutions Group Total Goodwill as of December 30, 2023 $ 630.7 $ 1,382.9 $ 2,013.6 Acquisition adjustments (1) — (2.9) (2.9) Translation adjustments (14.1) (6.8) (20.9) Goodwill as of June 29, 2024 $ 616.6 $ 1,373.2 $ 1,989.8 (1) |
Schedule of Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated future amortization expense related to existing finite-lived intangible assets for the remainder of fiscal year 2024 and for each of the next four fiscal years and thereafter is shown below. (In millions) Estimated 2024 (remainder of year) $ 44.5 2025 88.4 2026 85.5 2027 85.2 2028 77.3 2029 and thereafter 265.2 |
Cost Reduction Actions (Tables)
Cost Reduction Actions (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Payments | During the six months ended June 29, 2024, restructuring charges and payments were as follows: (In millions) Accrual at December 30, 2023 Charges, Net of Reversals Cash Payments Non-cash Impairment Foreign Currency Translation Accrual at June 29, 2024 2023 Actions Severance and related costs $ 27.7 $ 11.2 $ (23.2) $ — $ (.6) $ 15.1 Asset impairment charges — 1.6 — (1.6) — — Lease cancellation charges — .4 (.4) — — — Total $ 27.7 $ 13.2 $ (23.6) $ (1.6) $ (.6) $ 15.1 |
Schedule of Restructuring and Related Costs | The table below shows the total amount of restructuring charges, net of reversals, incurred by reportable segment and Corporate. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Restructuring charges, net of reversals, by reportable segment and Corporate Materials Group $ 1.6 $ 5.6 $ 4.1 $ 19.9 Solutions Group 5.4 4.4 8.8 7.8 Corporate .2 — .3 (.1) Total $ 7.2 $ 10.0 $ 13.2 $ 27.6 |
Taxes Based on Income (Tables)
Taxes Based on Income (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Taxes, Provision for Income Taxes, and Effective Tax Rate | The following table summarizes our income before taxes, provision for income taxes, and effective tax rate: Three Months Ended Six Months Ended (Dollars in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income before taxes $ 238.4 $ 140.2 $ 472.8 $ 308.5 Provision for income taxes 61.6 39.8 123.6 86.9 Effective tax rate 25.8 % 28.4 % 26.1 % 28.2 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Common Share | Net income per common share was computed as follows: Three Months Ended Six Months Ended (In millions, except per share amounts) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (A) Net income $ 176.8 $ 100.4 $ 349.2 $ 221.6 (B) Weighted average number of common shares outstanding 80.6 80.7 80.5 80.8 Dilutive shares (additional common shares issuable under stock-based awards) .4 .3 .5 .4 (C) Weighted average number of common shares outstanding, assuming dilution 81.0 81.0 81.0 81.2 Net income per common share: (A) ÷ (B) $ 2.19 $ 1.24 $ 4.34 $ 2.74 Net income per common share, assuming dilution: (A) ÷ (C) $ 2.18 $ 1.24 $ 4.31 $ 2.73 |
Supplemental Equity and Compr_2
Supplemental Equity and Comprehensive Income Information (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Consolidated Statements of Shareholders' Equity | Consolidated Changes in Shareholders’ Equity Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Common stock issued, $1 par value per share $ 124.1 $ 124.1 $ 124.1 $ 124.1 Capital in excess of par value Beginning balance $ 834.0 $ 850.8 $ 854.5 $ 879.3 Issuance of shares under stock-based compensation plans (1) (.9) .5 (21.4) (28.0) Ending balance $ 833.1 $ 851.3 $ 833.1 $ 851.3 Retained earnings Beginning balance $ 4,809.1 $ 4,486.4 $ 4,691.8 $ 4,414.6 Net income 176.8 100.4 349.2 221.6 Issuance of shares under stock-based compensation plans (1) .9 .8 4.1 5.6 Contribution of shares to 401(k) plan (1) 6.3 4.7 13.3 11.3 Dividends (70.9) (65.4) (136.2) (126.2) Ending balance $ 4,922.2 $ 4,526.9 $ 4,922.2 $ 4,526.9 Treasury stock at cost Beginning balance $ (3,141.2) $ (3,057.4) $ (3,134.4) $ (3,021.8) Repurchase of shares for treasury (25.1) (38.8) (40.7) (89.5) Issuance of shares under stock-based compensation plans (1) 9.8 .4 16.3 13.0 Contribution of shares to 401(k) plan (1) 1.9 1.9 4.2 4.4 Ending balance $ (3,154.6) $ (3,093.9) $ (3,154.6) $ (3,093.9) Accumulated other comprehensive loss Beginning balance $ (422.0) $ (361.0) $ (408.1) $ (364.0) Other comprehensive income (loss), net of tax (15.7) (32.2) (29.6) (29.2) Ending balance $ (437.7) $ (393.2) $ (437.7) $ (393.2) (1) |
Schedule of Dividends Per Common Share | Dividends per common share were as follows: Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Dividends per common share $ .88 $ .81 $ 1.69 $ 1.56 |
Schedule of Changes in "Accumulated Other Comprehensive Loss" (Net of Tax) | The changes in “Accumulated other comprehensive loss” (net of tax) for the six-month period ended June 29, 2024 were as follows: (In millions) Foreign Currency Translation Pension and Other Postretirement Benefits Cash Flow Hedges Total Balance as of December 30, 2023 $ (328.6) $ (77.5) $ (2.0) $ (408.1) Other comprehensive income (loss) before reclassifications, net of tax (29.7) — (.6) (30.3) Reclassifications to net income, net of tax — .4 .3 .7 Other comprehensive income (loss), net of tax (29.7) .4 (.3) (29.6) Balance as of June 29, 2024 $ (358.3) $ (77.1) $ (2.3) $ (437.7) The changes in “Accumulated other comprehensive loss” (net of tax) for the six-month period ended July 1, 2023 were as follows: (In millions) Foreign Currency Translation Pension and Other Postretirement Benefits Cash Flow Hedges Total Balance as of December 31, 2022 $ (314.0) $ (51.3) $ 1.3 $ (364.0) Other comprehensive income (loss) before reclassifications, net of tax (26.9) — (4.0) (30.9) Reclassifications to net income, net of tax — (.4) 2.1 1.7 Other comprehensive income (loss), net of tax (26.9) (.4) (1.9) (29.2) Balance as of July 1, 2023 $ (340.9) $ (51.7) $ (.6) $ (393.2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Carried at Fair Value, Measured on a Recurring Basis | Assets and liabilities carried at fair value, measured on a recurring basis, as of June 29, 2024 were as follows: Fair Value Measurements Using (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Assets Investments $ 48.8 $ 29.2 $ 19.6 $ — Derivative assets 5.8 — 5.8 — Bank drafts 6.1 6.1 — — Cross-currency swap 9.8 — 9.8 — Liabilities Derivative liabilities $ 7.8 $ .7 $ 7.1 $ — Contingent consideration liabilities 9.9 — — 9.9 Assets and liabilities carried at fair value, measured on a recurring basis, as of December 30, 2023 were as follows: Fair Value Measurements Using (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets Investments $ 37.8 $ 19.6 $ 18.2 $ — Derivative assets 6.3 — 6.3 — Bank drafts 5.3 5.3 — — Cross-currency swap 2.3 — 2.3 — Liabilities Derivative liabilities $ 7.6 $ 1.6 $ 6.0 $ — Contingent consideration liabilities 10.0 — — 10.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity Related to Environmental Liabilities | The activity related to our environmental liabilities (In millions) Balance at December 30, 2023 $ 24.5 Charges, net of reversals 1.1 Payments (5.1) Balance at June 29, 2024 $ 20.5 |
Segment and Disaggregated Rev_2
Segment and Disaggregated Revenue Information (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Disaggregated revenue information is shown below in the manner that best reflects how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue from our Materials Group reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue from our Solutions Group reportable segment is shown by product group. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net sales to unaffiliated customers Materials Group: U.S. $ 441.6 $ 430.7 $ 879.0 $ 877.1 Europe, the Middle East and North Africa 549.9 510.3 1,084.6 1,009.2 Asia 344.0 338.1 670.2 653.7 Latin America 127.0 117.2 247.6 230.9 Other 84.3 79.7 161.9 165.6 Total Materials Group 1,546.8 1,476.0 3,043.3 2,936.5 Solutions Group: Apparel and other 476.2 398.9 935.8 817.7 Identification Solutions and Vestcom 212.3 215.6 407.5 401.3 Total Solutions Group 688.5 614.5 1,343.3 1,219.0 Net sales to unaffiliated customers $ 2,235.3 $ 2,090.5 $ 4,386.6 $ 4,155.5 Additional financial information by reportable segment and Corporate is shown below. Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Intersegment sales Materials Group $ 38.3 $ 38.2 $ 85.3 $ 73.1 Solutions Group 15.4 10.0 26.3 20.0 Intersegment sales $ 53.7 $ 48.2 $ 111.6 $ 93.1 Income before taxes Materials Group $ 223.4 $ 193.8 $ 449.5 $ 354.3 Solutions Group 64.1 (7.2) 120.2 44.3 Corporate expense (25.7) (21.1) (53.5) (43.0) Interest expense (29.2) (31.9) (57.8) (58.3) Other non-operating expense (income), net 5.8 6.6 14.4 11.2 Income before taxes $ 238.4 $ 140.2 $ 472.8 $ 308.5 Other expense (income), net, by reportable segment and Corporate Materials Group $ 21.1 $ 6.1 $ 35.5 $ 20.4 Solutions Group 5.7 62.2 3.8 65.8 Corporate .2 — .3 (.1) Other expense (income), net $ 27.0 $ 68.3 $ 39.6 $ 86.1 Other expense (income), net, by type were as follows: Three Months Ended Six Months Ended (In millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Other expense (income), net, by type Restructuring charges, net of reversals: Severance and related costs, net of reversals $ 6.3 $ 8.8 $ 11.2 $ 25.9 Asset impairment and lease cancellation charges .9 1.2 2.0 1.7 Other items: (Gain) loss on venture investments 15.0 — 17.2 — Losses from Argentine peso remeasurement and Blue Chip Swap transactions 4.1 — 15.4 — Outcomes of legal matters and settlements, net .4 53.8 (6.5) 53.8 Transaction and related costs .3 4.0 .3 4.2 (Gain) loss on sales of assets — .5 — .5 Other expense (income), net $ 27.0 $ 68.3 $ 39.6 $ 86.1 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Supplemental Financial Information | |
Schedule of Net Inventories | The table below summarizes amounts in inventories. (In millions) June 29, 2024 December 30, 2023 Raw materials $ 397.8 $ 415.4 Work-in-progress 243.1 238.2 Finished goods 339.0 267.1 Inventories $ 979.9 $ 920.7 |
Schedule of Property, Plant and Equipment | The table below summarizes the amounts in property, plant and equipment, net. (In millions) June 29, 2024 December 30, 2023 Property, plant and equipment $ 3,936.4 $ 3,970.4 Accumulated depreciation (2,346.4) (2,344.6) Property, plant and equipment, net $ 1,590.0 $ 1,625.8 |
Schedule of Allowance for Credit Losses | The activity related to our allowance for credit losses is shown below. Six Months Ended (In millions) June 29, 2024 July 1, 2023 Beginning balance $ 34.4 $ 34.4 Provision for credit losses 5.8 — Amounts written off (2.7) (3.0) Other, including foreign currency translation (.8) .9 Ending balance $ 36.7 $ 32.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles Resulting from Business Acquisitions - Schedule of Changes in Net Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Changes in the net carrying amount of goodwill | |
Goodwill, Beginning balance | $ 2,013.6 |
Acquisition adjustments | (2.9) |
Translation adjustments | (20.9) |
Goodwill, Ending balance | 1,989.8 |
Materials Group | |
Changes in the net carrying amount of goodwill | |
Goodwill, Beginning balance | 630.7 |
Acquisition adjustments | 0 |
Translation adjustments | (14.1) |
Goodwill, Ending balance | 616.6 |
Solutions Group | |
Changes in the net carrying amount of goodwill | |
Goodwill, Beginning balance | 1,382.9 |
Acquisition adjustments | (2.9) |
Translation adjustments | (6.8) |
Goodwill, Ending balance | $ 1,373.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles Resulting from Business Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 22.3 | $ 21.6 | $ 44.7 | $ 42.1 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Resulting from Business Acquisitions - Expected Amortization (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Estimated Amortization Expense | |
2024 (remainder of year) | $ 44.5 |
2025 | 88.4 |
2026 | 85.5 |
2027 | 85.2 |
2028 | 77.3 |
2029 and thereafter | $ 265.2 |
Debt (Details)
Debt (Details) € in Millions | 6 Months Ended | ||
Jun. 29, 2024 USD ($) | Jun. 29, 2024 EUR (€) | Dec. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Fair value of debt | $ 3,050,000,000 | $ 3,110,000,000 | |
Revolving credit facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 1,200,000,000 | ||
Line of credit facility, increase limit | 600,000,000 | ||
Amount outstanding | 0 | $ 0 | |
Medium-Term Note | |||
Debt Instrument [Line Items] | |||
Reclassification from long-term debt to current debt | $ 25,000,000 | ||
1.25% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Reclassification from long-term debt to current debt | € | € 500 |
Cost Reduction Actions - Narrat
Cost Reduction Actions - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 USD ($) position | Dec. 30, 2023 position | |
Other 2023 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ | $ 13.2 | |
Net number of positions reduced as a result of cost reduction actions | 380 | |
Restructuring 2023 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Net number of positions reduced as a result of cost reduction actions | 210 |
Cost Reduction Actions - Schedu
Cost Reduction Actions - Schedule of Restructuring Charges and Payments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Cost Reduction Actions | ||||
Beginning Balance | $ 27.7 | |||
Charges, Net of Reversals | $ 7.2 | $ 10 | 13.2 | $ 27.6 |
Cash Payments | (23.6) | |||
Non-cash Impairment | (1.6) | |||
Foreign Currency Translation | (0.6) | |||
Ending Balance | 15.1 | 15.1 | ||
Restructuring 2023 Actions | Severance and related costs | ||||
Cost Reduction Actions | ||||
Beginning Balance | 27.7 | |||
Charges, Net of Reversals | 11.2 | |||
Cash Payments | (23.2) | |||
Non-cash Impairment | 0 | |||
Foreign Currency Translation | (0.6) | |||
Ending Balance | 15.1 | 15.1 | ||
Restructuring 2023 Actions | Asset impairment charges | ||||
Cost Reduction Actions | ||||
Beginning Balance | 0 | |||
Charges, Net of Reversals | 1.6 | |||
Cash Payments | 0 | |||
Non-cash Impairment | (1.6) | |||
Foreign Currency Translation | 0 | |||
Ending Balance | 0 | 0 | ||
Restructuring 2023 Actions | Lease cancellation charges | ||||
Cost Reduction Actions | ||||
Beginning Balance | 0 | |||
Charges, Net of Reversals | 0.4 | |||
Cash Payments | (0.4) | |||
Non-cash Impairment | 0 | |||
Foreign Currency Translation | 0 | |||
Ending Balance | $ 0 | $ 0 |
Cost Reduction Actions - Sche_2
Cost Reduction Actions - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7.2 | $ 10 | $ 13.2 | $ 27.6 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.2 | 0 | 0.3 | (0.1) |
Materials Group | Operating segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.6 | 5.6 | 4.1 | 19.9 |
Solutions Group | Operating segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5.4 | $ 4.4 | $ 8.8 | $ 7.8 |
Financial Instruments (Details)
Financial Instruments (Details) - Cross-Currency Swap - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Mar. 31, 2020 |
Financial Instruments | |||
Notional amount | $ 250 | ||
Foreign currency contract, asset, fair value disclosure | $ 9.8 | $ 2.3 |
Taxes Based on Income - Schedul
Taxes Based on Income - Schedule of Income Before Taxes, Provision for Income Taxes, and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income before taxes | $ 238.4 | $ 140.2 | $ 472.8 | $ 308.5 |
Provision for income taxes | $ 61.6 | $ 39.8 | $ 123.6 | $ 86.9 |
Effective tax rate | 25.80% | 28.40% | 26.10% | 28.20% |
Taxes Based on Income - Narrati
Taxes Based on Income - Narrative (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Income Tax Disclosure [Abstract] | |
Reasonably possible decrease in uncertain tax positions, including interest and penalties, during the next 12 months | $ 6 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net Income Per Common Share | ||||
Net income | $ 176.8 | $ 100.4 | $ 349.2 | $ 221.6 |
Weighted average number of common shares outstanding (in shares) | 80.6 | 80.7 | 80.5 | 80.8 |
Dilutive shares (additional common shares issuable under stock-based awards) (in shares) | 0.4 | 0.3 | 0.5 | 0.4 |
Weighted average number of common shares outstanding, assuming dilution (in shares) | 81 | 81 | 81 | 81.2 |
Net income per common share (in dollars per share) | $ 2.19 | $ 1.24 | $ 4.34 | $ 2.74 |
Net income per common share, assuming dilution (in dollars per share) | $ 2.18 | $ 1.24 | $ 4.31 | $ 2.73 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Supplemental Equity and Compr_3
Supplemental Equity and Comprehensive Income Information - Schedule of Consolidated Statements of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Changes In Stockholders' Equity [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Common stock issued, $1 par value per share | $ 124.1 | $ 124.1 | $ 124.1 | $ 124.1 | $ 124.1 |
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | 2,127.9 | ||||
Net income | 176.8 | 100.4 | 349.2 | 221.6 | |
Other comprehensive income (loss), net of tax | (15.7) | $ (32.2) | (29.6) | $ (29.2) | |
Ending balance | $ 2,287.1 | $ 2,287.1 | |||
Dividends per common share | $ 0.88 | $ 0.81 | $ 1.69 | $ 1.56 | |
Capital in excess of par value | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | $ 834 | $ 850.8 | $ 854.5 | $ 879.3 | |
Issuance of shares under stock-based compensation plans | (0.9) | 0.5 | (21.4) | (28) | |
Ending balance | 833.1 | 851.3 | 833.1 | 851.3 | |
Retained earnings | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | 4,809.1 | 4,486.4 | 4,691.8 | 4,414.6 | |
Issuance of shares under stock-based compensation plans | 0.9 | 0.8 | 4.1 | 5.6 | |
Net income | 176.8 | 100.4 | 349.2 | 221.6 | |
Contribution of shares to 401(k) plan | 6.3 | 4.7 | 13.3 | 11.3 | |
Dividends | (70.9) | (65.4) | (136.2) | (126.2) | |
Ending balance | 4,922.2 | 4,526.9 | 4,922.2 | 4,526.9 | |
Treasury stock at cost | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | (3,141.2) | (3,057.4) | (3,134.4) | (3,021.8) | |
Issuance of shares under stock-based compensation plans | 9.8 | 0.4 | 16.3 | 13 | |
Repurchase of shares for treasury | (25.1) | (38.8) | (40.7) | (89.5) | |
Contribution of shares to 401(k) plan | 1.9 | 1.9 | 4.2 | 4.4 | |
Ending balance | (3,154.6) | (3,093.9) | (3,154.6) | (3,093.9) | |
Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Beginning balance | (422) | (361) | (408.1) | (364) | |
Other comprehensive income (loss), net of tax | (15.7) | (32.2) | (29.6) | (29.2) | |
Ending balance | $ (437.7) | $ (393.2) | $ (437.7) | $ (393.2) |
Supplemental Equity and Compr_4
Supplemental Equity and Comprehensive Income Information - Schedule of Changes in "Accumulated Other Comprehensive Loss" (Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,127.9 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (30.3) | $ (30.9) | ||
Reclassifications to net income, net of tax | 0.7 | 1.7 | ||
Other comprehensive income (loss), net of tax | $ (15.7) | $ (32.2) | (29.6) | (29.2) |
Ending balance | 2,287.1 | 2,287.1 | ||
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (422) | (361) | (408.1) | (364) |
Other comprehensive income (loss), net of tax | (15.7) | (32.2) | (29.6) | (29.2) |
Ending balance | (437.7) | (393.2) | (437.7) | (393.2) |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (328.6) | (314) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (29.7) | (26.9) | ||
Reclassifications to net income, net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of tax | (29.7) | (26.9) | ||
Ending balance | (358.3) | (340.9) | (358.3) | (340.9) |
Pension and Other Postretirement Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (77.5) | (51.3) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | ||
Reclassifications to net income, net of tax | 0.4 | (0.4) | ||
Other comprehensive income (loss), net of tax | 0.4 | (0.4) | ||
Ending balance | (77.1) | (51.7) | (77.1) | (51.7) |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2) | 1.3 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (0.6) | (4) | ||
Reclassifications to net income, net of tax | 0.3 | 2.1 | ||
Other comprehensive income (loss), net of tax | (0.3) | (1.9) | ||
Ending balance | $ (2.3) | $ (0.6) | $ (2.3) | $ (0.6) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Carried at Fair Value, Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Assets | ||
Investments | $ 48.8 | $ 37.8 |
Derivative assets | 5.8 | 6.3 |
Bank drafts | 6.1 | 5.3 |
Cross-currency swap | 9.8 | 2.3 |
Liabilities | ||
Derivative liabilities | 7.8 | 7.6 |
Contingent consideration liabilities | 9.9 | 10 |
Quoted Prices in Active Markets (Level 1) | ||
Assets | ||
Investments | 29.2 | 19.6 |
Derivative assets | 0 | 0 |
Bank drafts | 6.1 | 5.3 |
Cross-currency swap | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0.7 | 1.6 |
Contingent consideration liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investments | 19.6 | 18.2 |
Derivative assets | 5.8 | 6.3 |
Bank drafts | 0 | 0 |
Cross-currency swap | 9.8 | 2.3 |
Liabilities | ||
Derivative liabilities | 7.1 | 6 |
Contingent consideration liabilities | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | ||
Assets | ||
Investments | 0 | 0 |
Derivative assets | 0 | 0 |
Bank drafts | 0 | 0 |
Cross-currency swap | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Contingent consideration liabilities | $ 9.9 | $ 10 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Fair value, assets and liabilities measured on a recurring basis | |||||
Equity securities without readily determinable fair value, amount | $ 44,000,000 | $ 44,000,000 | $ 71,000,000 | ||
Equity securities without readily determinable fair value, downward price adjustment, amount | 15,000,000 | $ 0 | 17,200,000 | $ 0 | |
Equity securities without readily determinable fair value, upward price adjustment, amount | $ 0 | $ 0 | |||
Recurring | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | 48,800,000 | 48,800,000 | 37,800,000 | ||
Recurring | Quoted Prices in Active Markets (Level 1) | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | 29,200,000 | 29,200,000 | 19,600,000 | ||
Recurring | Cash and cash equivalents | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | 2,200,000 | 2,200,000 | 2,700,000 | ||
Recurring | Other current assets | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | 36,200,000 | 36,200,000 | $ 35,100,000 | ||
Recurring | Other Assets | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | 10,400,000 | 10,400,000 | |||
Recurring | Other Assets | Quoted Prices in Active Markets (Level 1) | |||||
Fair value, assets and liabilities measured on a recurring basis | |||||
Investments | $ 10,400,000 | $ 10,400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Apr. 25, 2024 USD ($) | Jan. 25, 2024 USD ($) | Jan. 24, 2024 USD ($) | Jun. 29, 2024 USD ($) site | Dec. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | Jul. 03, 2021 USD ($) |
Loss Contingencies [Line Items] | |||||||
Environmental site contingency number of sites | site | 10 | ||||||
Short term environmental liabilities | $ 11 | $ 11 | |||||
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |||||
Infringement of patent | |||||||
Loss Contingencies [Line Items] | |||||||
Contingent liability | $ 82.9 | $ 80.4 | $ 26.6 | ||||
Patent infringement, sanction | $ 5.2 | $ 20 | |||||
Contingency loss based on royalty (usd per unit) | 0.0025 | ||||||
Litigation settlement | $ 75 |
Commitments and Contingencies_2
Commitments and Contingencies - Activity (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Environmental Liabilities Associated with Remediation [Roll Forward] | |
Balance at December 30, 2023 | $ 24.5 |
Charges, net of reversals | 1.1 |
Payments | (5.1) |
Balance at June 29, 2024 | $ 20.5 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Long-term retirement benefits and other liabilities |
Segment and Disaggregated Rev_3
Segment and Disaggregated Revenue Information - Net Sales to Unaffiliated Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | $ 2,235.3 | $ 2,090.5 | $ 4,386.6 | $ 4,155.5 |
Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 1,546.8 | 1,476 | 3,043.3 | 2,936.5 |
Solutions Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 688.5 | 614.5 | 1,343.3 | 1,219 |
Solutions Group | Apparel and other | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 476.2 | 398.9 | 935.8 | 817.7 |
Solutions Group | Identification Solutions and Vestcom | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 212.3 | 215.6 | 407.5 | 401.3 |
U.S. | Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 441.6 | 430.7 | 879 | 877.1 |
Europe, the Middle East and North Africa | Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 549.9 | 510.3 | 1,084.6 | 1,009.2 |
Asia | Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 344 | 338.1 | 670.2 | 653.7 |
Latin America | Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | 127 | 117.2 | 247.6 | 230.9 |
Other | Materials Group | Operating segments | ||||
Net sales to unaffiliated customers | ||||
Net sales to unaffiliated customers | $ 84.3 | $ 79.7 | $ 161.9 | $ 165.6 |
Segment and Disaggregated Rev_4
Segment and Disaggregated Revenue Information - Additional Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | $ 2,235.3 | $ 2,090.5 | $ 4,386.6 | $ 4,155.5 |
Income before taxes | 238.4 | 140.2 | 472.8 | 308.5 |
Interest expense | (29.2) | (31.9) | (57.8) | (58.3) |
Other non-operating expense (income), net | 5.8 | 6.6 | 14.4 | 11.2 |
Other expense (income), net | 27 | 68.3 | 39.6 | 86.1 |
Intersegment sales | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | 53.7 | 48.2 | 111.6 | 93.1 |
Corporate expense | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Income before taxes | (25.7) | (21.1) | (53.5) | (43) |
Other expense (income), net | 0.2 | 0 | 0.3 | (0.1) |
Materials Group | Intersegment sales | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | 38.3 | 38.2 | 85.3 | 73.1 |
Materials Group | Operating segments | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | 1,546.8 | 1,476 | 3,043.3 | 2,936.5 |
Income before taxes | 223.4 | 193.8 | 449.5 | 354.3 |
Other expense (income), net | 21.1 | 6.1 | 35.5 | 20.4 |
Solutions Group | Intersegment sales | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | 15.4 | 10 | 26.3 | 20 |
Solutions Group | Operating segments | ||||
SEGMENT AND DISAGGREGATED REVENUE INFORMATION | ||||
Net sales to unaffiliated customers | 688.5 | 614.5 | 1,343.3 | 1,219 |
Income before taxes | 64.1 | (7.2) | 120.2 | 44.3 |
Other expense (income), net | $ 5.7 | $ 62.2 | $ 3.8 | $ 65.8 |
Segment and Disaggregated Rev_5
Segment and Disaggregated Revenue Information - Other Expense (Income), Net by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Other items: | ||||
(Gain) loss on venture investments | $ 15 | $ 0 | $ 17.2 | $ 0 |
Losses from Argentine peso remeasurement and Blue Chip Swap transactions | 4.1 | 0 | 15.4 | 0 |
Outcomes of legal matters and settlements, net | 0.4 | 53.8 | (6.5) | 53.8 |
Transaction and related costs | 0.3 | 4 | 0.3 | 4.2 |
(Gain) loss on sales of assets | 0 | 0.5 | 0 | 0.5 |
Other expense (income), net | 27 | 68.3 | 39.6 | 86.1 |
Severance and related costs, net of reversals | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 6.3 | 8.8 | 11.2 | 25.9 |
Asset impairment and lease cancellation charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.9 | $ 1.2 | $ 2 | $ 1.7 |
Supplemental Financial Inform_3
Supplemental Financial Information - Schedule of Net Inventories (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Inventories | ||
Raw materials | $ 397.8 | $ 415.4 |
Work-in-progress | 243.1 | 238.2 |
Finished goods | 339 | 267.1 |
Inventories | $ 979.9 | $ 920.7 |
Supplemental Financial Inform_4
Supplemental Financial Information - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Supplemental Financial Information | ||
Property, plant and equipment | $ 3,936.4 | $ 3,970.4 |
Accumulated depreciation | (2,346.4) | (2,344.6) |
Property, plant and equipment, net | $ 1,590 | $ 1,625.8 |
Supplemental Financial Inform_5
Supplemental Financial Information - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 34.4 | $ 34.4 |
Provision for credit losses | 5.8 | 0 |
Amounts written off | (2.7) | (3) |
Other, including foreign currency translation | (0.8) | 0.9 |
Ending balance | $ 36.7 | $ 32.3 |
Supplemental Financial Inform_6
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2024 | Jun. 29, 2024 | Dec. 30, 2023 | |
Supplemental Financial Information | |||
Supplier finance program, obligation, current | $ 404.3 | $ 404.3 | $ 397.4 |
Loss on Blue Chip Swap transactions | $ 4 | $ 10 |