Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2015 | 2-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | Avery Dennison Corp | |
Entity Central Index Key | 8818 | |
Document Type | 10-Q | |
Document Period End Date | 4-Apr-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -1 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 91,022,066 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $212.50 | $227 |
Trade accounts receivable, less allowances of $34.3 and $30.5 at April 4, 2015 and January 3, 2015, respectively | 988 | 958.1 |
Inventories, net | 508.9 | 491.8 |
Current deferred and refundable income taxes | 102.9 | 107.5 |
Assets held for sale | 17.7 | 0.8 |
Other current assets | 134.1 | 136.1 |
Total current assets | 1,964.10 | 1,921.30 |
Property, plant and equipment | 2,566.20 | 2,654.50 |
Accumulated depreciation | -1,735 | -1,779.20 |
Property, plant and equipment, net | 831.2 | 875.3 |
Goodwill | 697 | 721.6 |
Other intangibles resulting from business acquisitions, net | 60.9 | 67.4 |
Non-current deferred income taxes | 305.8 | 311 |
Other assets | 453.6 | 463.6 |
Total assets | 4,312.60 | 4,360.20 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt and capital leases | 265.7 | 204.3 |
Accounts payable | 825.1 | 797.8 |
Current deferred and payable income taxes | 64.9 | 64.9 |
Liabilities held for sale | 17.8 | |
Other accrued liabilities | 433.3 | 530.8 |
Total current liabilities | 1,606.80 | 1,597.80 |
Long-term debt and capital leases | 945.3 | 945.3 |
Long-term retirement benefits and other liabilities | 610.4 | 622.8 |
Non-current deferred and payable income taxes | 124.1 | 127.8 |
Commitments and contingencies (see Note 15) | ||
Shareholders' equity: | ||
Common stock, $1 par value per share, authorized - 400,000,000 shares at April 4, 2015 and January 3, 2015; issued - 124,126,624 shares at April 4, 2015 and January 3, 2015; outstanding - 90,834,254 shares and 90,458,956 shares at April 4, 2015 and January 3, 2015, respectively | 124.1 | 124.1 |
Capital in excess of par value | 810.4 | 823.9 |
Retained earnings | 2,175.40 | 2,137.10 |
Treasury stock at cost, 33,292,370 shares and 33,667,668 shares at April 4, 2015 and January 3, 2015, respectively | -1,470.20 | -1,471.30 |
Accumulated other comprehensive loss | -613.7 | -547.3 |
Total shareholders' equity | 1,026 | 1,066.50 |
Total liabilities and shareholders' equity | $4,312.60 | $4,360.20 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Trade accounts receivable, allowances (in dollars) | $34.30 | $30.50 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 124,126,624 | 124,126,624 |
Common stock, outstanding shares | 90,834,254 | 90,458,956 |
Treasury stock, shares | 33,292,370 | 33,667,668 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
CONSOLIDATED STATEMENTS OF INCOME | ||
Net sales | $1,528 | $1,550.10 |
Cost of products sold | 1,098 | 1,142.90 |
Gross profit | 430 | 407.2 |
Marketing, general and administrative expense | 300.9 | 296.7 |
Interest expense | 15.3 | 15.4 |
Other expense, net | 14.3 | 7.3 |
Income from continuing operations before taxes | 99.5 | 87.8 |
Provision for income taxes | 27.9 | 16.2 |
Income from continuing operations | 71.6 | 71.6 |
(Loss) income from discontinued operations, net of tax | -0.4 | |
Net income | $71.60 | $71.20 |
Net income (loss) per common share: | ||
Continuing operations (in dollars per share) | $0.79 | $0.74 |
Discontinued operations (in dollars per share) | $0 | $0 |
Net income per common share (in dollars per share) | $0.79 | $0.74 |
Net income (loss) per common share, assuming dilution: | ||
Continuing operations (in dollars per share) | $0.77 | $0.73 |
Discontinued operations (in dollars per share) | $0 | $0 |
Net income per common share, assuming dilution (in dollars per share) | $0.77 | $0.73 |
Dividends per common share (in dollars per share) | $0.35 | $0.29 |
Weighted average shares outstanding: | ||
Common shares (in shares) | 90.6 | 96.1 |
Common shares, assuming dilution (in shares) | 92.4 | 98 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $71.60 | $71.20 |
Other comprehensive (loss) income, before tax: | ||
Foreign currency translation | -72.1 | -0.9 |
Pension and other postretirement benefits | 7.6 | 5.5 |
Cash flow hedges | -1 | -0.1 |
Other comprehensive (loss) income, before tax | -65.5 | 4.5 |
Income tax expense related to items of other comprehensive (loss) income | 0.9 | 1.2 |
Other comprehensive (loss) income, net of tax | -66.4 | 3.3 |
Total comprehensive income, net of tax | $5.20 | $74.50 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Operating Activities | ||
Net income | $71.60 | $71.20 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 33.2 | 33.6 |
Amortization | 16.1 | 16.4 |
Provision for doubtful accounts and sales returns | 9.8 | 7.3 |
Net losses from asset impairments and sales/disposals of assets | 1.1 | 0.8 |
Stock-based compensation | 7.4 | 6 |
Other non-cash expense and loss | 13.6 | 11.8 |
Changes in assets and liabilities and other adjustments | -144.5 | -255.1 |
Net cash provided by (used in) operating activities | 8.3 | -108 |
Investing Activities | ||
Purchases of property, plant and equipment | -25.3 | -38.7 |
Purchases of software and other deferred charges | -1.4 | -8.9 |
Proceeds from sales of property, plant and equipment | 2.8 | 0.1 |
(purchases) sales of investments, net | -0.4 | 0.1 |
Net cash (used in) investing activities | -24.3 | -47.4 |
Financing Activities | ||
Net increase in borrowings (maturities of 90 days or less) | 64.2 | 90.4 |
Payments of debt (maturities longer than 90 days) | -0.2 | -0.4 |
Dividends paid | -31.8 | -27.8 |
Share repurchases | -33.8 | -59.2 |
Proceeds from exercises of stock options, net | 16 | 12.5 |
Other | -8.4 | -3.2 |
Net cash provided by financing activities | 6 | 12.3 |
Effect of foreign currency translation on cash balances | -4.5 | -3.4 |
Decrease in cash and cash equivalents | -14.5 | -146.5 |
Cash and cash equivalents, beginning of year | 227 | 351.6 |
Cash and cash equivalents, end of period | $212.50 | $205.10 |
General
General | 3 Months Ended |
Apr. 04, 2015 | |
General | |
General | |
Note 1. General | |
The unaudited Condensed Consolidated Financial Statements and 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 notes thereto in our 2014 Annual Report on Form 10-K, which should be read in conjunction with this Quarterly Report on Form 10-Q. The accompanying unaudited Condensed Consolidated Financial Statements include normal recurring adjustments necessary for a fair statement of our interim results. | |
Assets_Held_for_Sale_and_Disco
Assets Held for Sale and Discontinued Operations | 3 Months Ended |
Apr. 04, 2015 | |
Assets Held for Sale and Discontinued Operations | |
Assets Held for Sale and Discontinued Operations | Note 2. Assets Held for Sale and Discontinued Operations |
Assets Held for Sale | |
In February 2015, we entered into an agreement to sell certain assets, and transfer certain liabilities, of a product line from our Retail Branding and Information Solutions reportable segment. This transaction, which is subject to customary closing conditions, is expected to be completed in the second quarter of 2015 for a sale price that is subject to working capital and other closing adjustments. The assets and liabilities of the product line were presented as “held for sale” in the unaudited Condensed Consolidated Balance Sheet as of April 4, 2015. | |
We recorded an impairment charge of approximately $2 million related to certain long-lived assets of this product line during the three months ended April 4, 2015. This loss was included in “Other expense, net” in the unaudited Consolidated Statements of Income. | |
Discontinued Operations | |
During the three months ended March 29, 2014, loss from discontinued operations, net of tax, included costs related to the resolution of certain post-closing adjustments from the sale of our former Office and Consumer Products (“OCP”) and Designed and Engineered Solutions (“DES”) businesses. We continue to be subject to certain indemnification obligations under the terms of the purchase agreement. In addition, the tax liability associated with the sale is subject to completion of tax return filings in certain foreign jurisdictions where we operated the OCP and DES businesses. | |
Inventories
Inventories | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Inventories | ||||||||
Inventories | ||||||||
Note 3. Inventories | ||||||||
Net inventories consisted of: | ||||||||
(In millions) | 4-Apr-15 | 3-Jan-15 | ||||||
Raw materials | $ | 189.5 | $ | 183.6 | ||||
Work-in-progress | 157.6 | 150.4 | ||||||
Finished goods | 161.8 | 157.8 | ||||||
Inventories, net | $ | 508.9 | $ | 491.8 | ||||
Goodwill
Goodwill | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
Goodwill. | |||||||||||
Goodwill | |||||||||||
Note 4. Goodwill | |||||||||||
Changes in the net carrying amount of goodwill for the three months ended April 4, 2015, by reportable segment, were as follows: | |||||||||||
(In millions) | Pressure-sensitive | Retail Branding | Total | ||||||||
Materials | and Information | ||||||||||
Solutions | |||||||||||
Goodwill as of January 3, 2015 | $ | 306.6 | $ | 415 | $ | 721.6 | |||||
Translation adjustments | (19.8 | ) | (4.8 | ) | (24.6 | ) | |||||
Goodwill as of April 4, 2015 | $ | 286.8 | $ | 410.2 | $ | 697 | |||||
The carrying amounts of goodwill at April 4, 2015 and January 3, 2015 were net of accumulated impairment losses of $820 million, which were included in our Retail Branding and Information Solutions reportable segment. | |||||||||||
There was no goodwill associated with our Vancive Medical Technologies reportable segment. | |||||||||||
Debt
Debt | 3 Months Ended |
Apr. 04, 2015 | |
Debt | |
Debt | |
Note 5. Debt | |
The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury securities 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 carrying value given the short duration of these obligations. The fair value of our total debt was $1.3 billion at April 4, 2015 and $1.22 billion at January 3, 2015. Fair value amounts were determined based primarily on Level 2 inputs, which are inputs other than quoted prices in active markets that are either directly or indirectly observable. | |
Our various loan agreements require that we maintain specified financial covenant ratios of total debt and interest expense in relation to certain measures of income. As of April 4, 2015, we were in compliance with our financial covenants. | |
Pension_And_Other_Postretireme
Pension And Other Postretirement Benefits | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Pension and Other Postretirement Benefits. | ||||||||||||||||||||
Pension and Other Postretirement Benefits | ||||||||||||||||||||
Note 6. Pension and Other Postretirement Benefits | ||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||
We sponsor a number of defined benefit plans, the accrual of benefits under some of which has been frozen, covering eligible employees in the U.S. and certain other countries. Benefits payable to an employee are based primarily on years of service and the employee’s compensation during the course of his or her employment with us. While we have not expressed any intent to terminate these plans, we may do so at any time, subject to applicable laws and regulations. | ||||||||||||||||||||
We are also obligated to pay unfunded termination indemnity benefits to certain employees outside of the U.S., which are subject to applicable agreements, laws and regulations. We have not incurred significant costs related to termination indemnity arrangements, and therefore, no related costs are included in the disclosures below. | ||||||||||||||||||||
The following table sets forth the components of net periodic benefit cost (credit), which are recorded in income from continuing operations, for our defined benefit plans: | ||||||||||||||||||||
Pension Benefits | U.S. Postretirement | |||||||||||||||||||
Health Benefits | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
4-Apr-15 | 29-Mar-14 | 4-Apr-15 | 29-Mar-14 | |||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | ||||||||||||||||
Service cost | $ | 0.1 | $ | 3.7 | $ | 0.1 | $ | 3.5 | $ | – | $ | – | ||||||||
Interest cost | 10.7 | 4.5 | 11 | 6 | 0.1 | – | ||||||||||||||
Expected return on plan assets | (12.9 | ) | (5.5 | ) | (13.0 | ) | (6.5 | ) | – | – | ||||||||||
Recognized net actuarial loss | 5.1 | 2.5 | 3.9 | 1.3 | 0.6 | 0.7 | ||||||||||||||
Amortization of prior service cost (credit) | 0.3 | (.1 | ) | 0.3 | 0.1 | (.8 | ) | (.8 | ) | |||||||||||
Net periodic benefit cost (credit) | $ | 3.3 | $ | 5.1 | $ | 2.3 | $ | 4.4 | $ | (.1 | ) | $ | (.1 | ) | ||||||
We make contributions to our defined benefit plans sufficient to meet the minimum funding requirements of applicable laws and regulations, plus additional amounts, if any, we determine to be appropriate. All of the contributions made in the first three months of 2015 and 2014 were made to meet minimum funding requirements. | ||||||||||||||||||||
The following table sets forth the contributions to our defined benefit plans: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
U.S. | $ | 1.2 | $ | 1.0 | ||||||||||||||||
Int’l | 7.1 | 8.0 | ||||||||||||||||||
U.S. postretirement health benefits | 0.3 | 0.3 | ||||||||||||||||||
Research_and_Development
Research and Development | 3 Months Ended |
Apr. 04, 2015 | |
Research and Development | |
Research and Development | |
Note 7. Research and Development | |
Research and development expense from continuing operations was $25.6 million and $24.9 million for the three months ended April 4, 2015 and March 29, 2014, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Consolidated Statements of Income. | |
LongTerm_Incentive_Compensatio
Long-Term Incentive Compensation | 3 Months Ended |
Apr. 04, 2015 | |
Long-Term Incentive Compensation | |
Long-Term Incentive Compensation | |
Note 8. Long-Term Incentive Compensation | |
Equity Awards | |
Stock-based compensation expense from continuing operations was $7.4 million and $6 million for the three months ended April 4, 2015 and March 29, 2014, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Consolidated Statements of Income. | |
As of April 4, 2015, we had approximately $49 million of unrecognized compensation expense from continuing operations related to unvested stock-based awards, which is expected to be recognized over the remaining weighted-average period of approximately three years. | |
Cash Awards | |
Compensation expense from continuing operations related to long-term incentive units was $5.2 million and $5.3 million for the three months ended April 4, 2015 and March 29, 2014, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Consolidated Statements of Income. | |
Cost_Reduction_Actions
Cost Reduction Actions | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Cost Reduction Actions | ||||||||||||||||||||
Cost Reduction Actions | ||||||||||||||||||||
Note 9. Cost Reduction Actions | ||||||||||||||||||||
2014/2015 Actions | ||||||||||||||||||||
During the three months ended April 4, 2015, we recorded $13.9 million in restructuring charges, net of reversals, related to restructuring actions we initiated in 2014 that are continuing through 2015 (“2014/2015 Actions”). These charges consisted of severance and related costs for the reduction of approximately 245 positions and asset impairment charges. | ||||||||||||||||||||
In 2014, we recorded $66.5 million in restructuring charges, net of reversals, related to our 2014/2015 Actions. These charges consisted of severance and related costs for the reduction of approximately 1,420 positions, lease cancellation costs, and asset impairment charges. | ||||||||||||||||||||
Approximately 130 employees impacted by our 2014/2015 Actions remained employed with us as of April 4, 2015. We expect charges and payments related to these actions to be substantially completed in 2015. | ||||||||||||||||||||
Accruals for severance and related costs and lease cancellation costs were included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. For assets that were not disposed of, impairments were based on the estimated market value of the assets. Restructuring costs were included in “Other expense, net” in the unaudited Consolidated Statements of Income. | ||||||||||||||||||||
During the three months ended April 4, 2015, restructuring charges and payments were as follows: | ||||||||||||||||||||
(In millions) | Accrual at | Charges | Cash | Non-cash | Foreign | Accrual at | ||||||||||||||
January 3, | (Reversals), | Payments | Impairment | Currency | 4-Apr-15 | |||||||||||||||
2015 | net | Translation | ||||||||||||||||||
2014/2015 Actions | ||||||||||||||||||||
Severance and related costs | $ | 16.8 | $ | 13.5 | $ | (11.7 | ) | $ | – | $ | (.9 | ) | $ | 17.7 | ||||||
Asset impairment charges | – | 0.4 | – | (.4 | ) | – | – | |||||||||||||
Lease cancellation costs | 0.1 | – | (.1 | ) | – | – | – | |||||||||||||
2012 Program | ||||||||||||||||||||
Severance and related costs | 0.8 | – | – | – | (.1 | ) | 0.7 | |||||||||||||
Total | $ | 17.7 | $ | 13.9 | $ | (11.8 | ) | $ | (.4 | ) | $ | (1.0 | ) | $ | 18.4 | |||||
The table below shows the total amount of restructuring costs incurred by reportable segment and Corporate. Restructuring costs were included in “Other expense, net” in the unaudited Consolidated Statements of Income. | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
Restructuring costs by reportable segment and Corporate | ||||||||||||||||||||
Pressure-sensitive Materials | $ | 7.3 | $ | 1.3 | ||||||||||||||||
Retail Branding and Information Solutions | 3.4 | 6.0 | ||||||||||||||||||
Vancive Medical Technologies | 1.1 | – | ||||||||||||||||||
Corporate | 2.1 | – | ||||||||||||||||||
$ | 13.9 | $ | 7.3 | |||||||||||||||||
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Financial Instruments | ||||||||||||
Financial Instruments | ||||||||||||
Note 10. Financial Instruments | ||||||||||||
We enter into foreign exchange hedge contracts to reduce our risk from exchange rate fluctuations associated with 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 enter into interest rate contracts to help manage our exposure to certain interest rate fluctuations. We also enter into futures contracts to hedge certain price fluctuations for a portion of our anticipated domestic purchases of natural gas. The maximum length of time for which we hedge our exposure to the variability in future cash flows for forecasted transactions is 36 months. | ||||||||||||
As of April 4, 2015, the aggregate U.S. dollar equivalent notional value of our outstanding commodity contracts and foreign exchange contracts was $4.3 million and $1.3 billion, respectively. | ||||||||||||
We recognize all derivative instruments as either assets or liabilities at fair value in the unaudited Condensed Consolidated Balance Sheets. We designate commodity forward contracts on forecasted purchases of commodities and foreign exchange contracts on forecasted transactions as cash flow hedges and foreign exchange contracts on existing balance sheet items as fair value hedges. | ||||||||||||
The following table provides the fair value and balance sheet locations of derivatives as of April 4, 2015: | ||||||||||||
Asset | Liability | |||||||||||
(In millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Foreign exchange contracts | Other current assets | $ | 10.0 | Other accrued liabilities | $ | 5.0 | ||||||
Commodity contracts | Other current assets | – | Other accrued liabilities | 0.8 | ||||||||
Long-term retirement benefits and other liabilities | 0.2 | |||||||||||
$ | 10.0 | $ | 6.0 | |||||||||
The following table provides the fair value and balance sheet locations of derivatives as of January 3, 2015: | ||||||||||||
Asset | Liability | |||||||||||
(In millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Foreign exchange contracts | Other current assets | $ | 10.3 | Other accrued liabilities | $ | 10.5 | ||||||
Commodity contracts | Other current assets | – | Other accrued liabilities | 1.0 | ||||||||
Long-term retirement benefits and other liabilities | 0.2 | |||||||||||
$ | 10.3 | $ | 11.7 | |||||||||
Fair Value Hedges | ||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings, resulting in no material net impact to income. | ||||||||||||
The following table provides the components of net gain (loss) recognized in income related to fair value hedge contracts. The corresponding gains or losses on the underlying hedged items approximated the net gain (loss) on these fair value hedge contracts. | ||||||||||||
Three Months Ended | ||||||||||||
(In millions) | Location of Gain (Loss) in Income | April 4, 2015 | March 29, 2014 | |||||||||
Foreign exchange contracts | Cost of products sold | $ | 1.4 | $ | -0.9 | |||||||
Foreign exchange contracts | Marketing, general and administrative expense | 11.7 | 1.0 | |||||||||
$ | 13.1 | $ | 0.1 | |||||||||
Cash Flow Hedges | ||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of “Accumulated other comprehensive loss” and reclassified into earnings in the same period(s) during which the hedged transaction impacts earnings. Gains and losses on the derivative, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings. | ||||||||||||
Gains (losses) recognized in “Accumulated other comprehensive loss” (effective portion) on derivatives related to cash flow hedge contracts were as follows: | ||||||||||||
Three Months Ended | ||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||
Foreign exchange contracts | $ | 1.5 | $ | (.3 | ) | |||||||
Commodity contracts | (.5 | ) | 0.4 | |||||||||
$ | 1.0 | $ | 0.1 | |||||||||
The amount of gain or loss recognized in income related to the ineffective portion of, and the amount excluded from, effectiveness testing for cash flow hedges and derivatives not designated as hedging instruments were not material for the three months ended April 4, 2015 and March 29, 2014, respectively. | ||||||||||||
As of April 4, 2015, we expected a net gain of approximately $1 million to be reclassified from “Accumulated other comprehensive loss” to earnings within the next 12 months. See Note 13, “Comprehensive Income,” for more information. | ||||||||||||
Taxes_Based_on_Income
Taxes Based on Income | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Taxes Based on Income | ||||||||
Taxes Based On Income | ||||||||
Note 11. Taxes Based on Income | ||||||||
The following table summarizes our income from continuing operations before taxes, provision for income taxes from continuing operations, and effective tax rate: | ||||||||
Three Months Ended | ||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||
Income from continuing operations before taxes | $ | 99.5 | $ | 87.8 | ||||
Provision for income taxes | 27.9 | 16.2 | ||||||
Effective tax rate | 28.0 | % | 18.4 | % | ||||
The effective tax rate for continuing operations for the three months ended April 4, 2015 included a discrete tax benefit of $3.3 million due to a decrease in certain tax reserves, including interest and penalties, as a result of closing tax years, and a net benefit of $1.6 million related to changes in the effective tax rates in certain foreign municipalities. | ||||||||
The effective tax rate for continuing operations for the three months ended March 29, 2014 included a discrete tax benefit of $9.5 million as a result of changes in certain tax reserves and valuation allowances and a $4.8 million benefit from out-of-period adjustments to properly state deferred taxes related to acquisitions completed in 2002 and 2003. | ||||||||
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. With some exceptions, we and our subsidiaries are no longer subject to income tax examinations by tax authorities for years prior to 2006. | ||||||||
It is reasonably possible that, during the next 12 months, we may realize a decrease in our uncertain tax positions, including interest and penalties, of approximately $10 million, as a result of settlements and closing tax years. | ||||||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Net Income Per Common Share | |||||||||
Net Income Per Common Share | |||||||||
Note 12. Net Income Per Common Share | |||||||||
Net income per common share was computed as follows: | |||||||||
Three Months Ended | |||||||||
(In millions, except per share amounts) | April 4, 2015 | March 29, 2014 | |||||||
(A) | Income from continuing operations | $ | 71.6 | $ | 71.6 | ||||
(B) | Loss from discontinued operations, net of tax | – | (.4 | ) | |||||
(C) | Net income available to common shareholders | $ | 71.6 | $ | 71.2 | ||||
(D) | Weighted-average number of common shares outstanding | 90.6 | 96.1 | ||||||
Dilutive shares (additional common shares issuable under stock-based awards) | 1.8 | 1.9 | |||||||
(E) | Weighted-average number of common shares outstanding, assuming dilution | 92.4 | 98.0 | ||||||
Net income per common share: | |||||||||
Continuing operations (A) ÷ (D) | $ | 0.79 | $ | 0.74 | |||||
Discontinued operations (B) ÷ (D) | – | – | |||||||
Net income per common share (C) ÷ (D) | $ | 0.79 | $ | 0.74 | |||||
Net income per common share, assuming dilution: | |||||||||
Continuing operations (A) ÷ (E) | $ | 0.77 | $ | 0.73 | |||||
Discontinued operations (B) ÷ (E) | – | – | |||||||
Net income per common share, assuming dilution (C) ÷ (E) | $ | 0.77 | $ | 0.73 | |||||
Certain stock-based compensation awards were not included in 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 approximately 1 million shares and 4 million shares for the three months ended April 4, 2015 and March 29, 2014, respectively. | |||||||||
Comprehensive_Income
Comprehensive Income | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Comprehensive Income | ||||||||||||||
Comprehensive Income | ||||||||||||||
Note 13. Comprehensive Income | ||||||||||||||
The changes in “Accumulated other comprehensive loss” (net of tax) for the three-month period ended April 4, 2015 were as follows: | ||||||||||||||
(In millions) | Foreign | Pension and | Cash Flow | Total | ||||||||||
Currency | Other | Hedges | ||||||||||||
Translation | Postretirement | |||||||||||||
Benefits | ||||||||||||||
Balance as of January 3, 2015 | $ | (16.7 | ) | $ | (530.6 | ) | $ | – | $ | (547.3 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (72.1 | ) | – | – | (72.1 | ) | ||||||||
Reclassifications to net income, net of tax | – | 6.4 | (.7 | ) | 5.7 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (72.1 | ) | 6.4 | (.7 | ) | (66.4 | ) | |||||||
Balance as of April 4, 2015 | $ | (88.8 | ) | $ | (524.2 | ) | $ | (.7 | ) | $ | (613.7 | ) | ||
The changes in “Accumulated other comprehensive loss” (net of tax) for the three-month period ended March 29, 2014 were as follows: | ||||||||||||||
(In millions) | Foreign | Pension and | Cash Flow | Total | ||||||||||
Currency | Other | Hedges | ||||||||||||
Translation | Postretirement | |||||||||||||
Benefits | ||||||||||||||
Balance as of December 28, 2013 | $ | 138 | $ | (418.1 | ) | $ | (1.0 | ) | $ | (281.1 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (.9 | ) | – | – | (.9 | ) | ||||||||
Reclassifications to net income, net of tax | – | 4.3 | (.1 | ) | 4.2 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (.9 | ) | 4.3 | (.1 | ) | 3.3 | ||||||||
Balance as of March 29, 2014 | $ | 137.1 | $ | (413.8 | ) | $ | (1.1 | ) | $ | (277.8 | ) | |||
The amounts reclassified from “Accumulated other comprehensive loss” to increase (decrease) income from continuing operations were as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | Affected Line Item in the | |||||||||||
Statements Where Net | ||||||||||||||
Income is Presented | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Foreign exchange contracts | $ | 1.5 | $ | – | Cost of products sold | |||||||||
Commodity contracts | (.5 | ) | 0.1 | Cost of products sold | ||||||||||
1 | 0.1 | Total before tax | ||||||||||||
(.3 | ) | – | Provision for income taxes | |||||||||||
0.7 | 0.1 | Net of tax | ||||||||||||
Pension and other postretirement benefits(1) | (7.6 | ) | (5.5 | ) | ||||||||||
1.2 | 1.2 | Provision for income taxes | ||||||||||||
(6.4 | ) | (4.3 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (5.7 | ) | $ | (4.2 | ) | Total, net of tax | |||||||
-1 | See Note 6, “Pension and Other Postretirement Benefits,” for more information. | |||||||||||||
The following table sets forth the income tax expense (benefit) allocated to each component of other comprehensive income: | ||||||||||||||
Three Months Ended | ||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||
Pension and other postretirement benefits | $ | 1.2 | $ | 1.2 | ||||||||||
Cash flow hedges | (.3 | ) | – | |||||||||||
Income tax expense allocated to components of other comprehensive income | $ | 0.9 | $ | 1.2 | ||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Note 14. Fair Value Measurements | ||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||
The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of April 4, 2015: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
(In millions) | Total | Quoted Prices in | Significant Other | Significant Other | ||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Trading securities | $ | 18.0 | $ | 7.8 | $ | 10.2 | $ | – | ||||||
Derivative assets | 10.0 | – | 10.0 | – | ||||||||||
Liabilities | ||||||||||||||
Derivative liabilities | $ | 6.0 | $ | 1.0 | $ | 5.0 | $ | – | ||||||
The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of January 3, 2015: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
(In millions) | Total | Quoted Prices in | Significant Other | Significant Other | ||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Trading securities | $ | 17.9 | $ | 7.6 | $ | 10.3 | $ | – | ||||||
Derivative assets | 10.3 | – | 10.3 | – | ||||||||||
Liabilities | ||||||||||||||
Derivative liabilities | $ | 11.7 | $ | 1.2 | $ | 10.5 | $ | – | ||||||
Trading securities include fixed income securities (primarily U.S. government and corporate debt securities) measured at fair value using quoted prices/bids and a money market fund measured at fair value using net asset value. As of April 4, 2015, trading securities of $.4 million and $17.6 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the unaudited Condensed Consolidated Balance Sheets. As of January 3, 2015, trading securities of $.8 million and $17.1 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 are 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. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
Note 15. 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. We have accrued liabilities for matters where it is probable that a loss will be incurred and the amount of loss can be reasonably estimated. Because of the uncertainties associated with claims resolution and litigation, future expenses to resolve these matters 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 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 such resolution cannot be determined. Potential insurance reimbursements are not offset against potential liabilities, and such liabilities are not discounted. Based upon current information, we believe that the impact of the resolution of these matters would not be, individually or in the aggregate, material to our financial position, results of operations or cash flows. | |||||
Environmental | |||||
As of April 4, 2015, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or other responsible state agencies as a potentially responsible party (“PRP”) at fifteen waste disposal or waste recycling sites, which are the subject of separate investigations or proceedings concerning alleged soil and/or groundwater contamination and for which no settlement of our liability has been agreed. We are participating with other PRPs at these sites, and anticipate that our share of remediation costs will be determined pursuant to agreements entered into in the normal course of negotiations with the EPA or other governmental authorities. | |||||
We have accrued liabilities for sites where it is probable that a loss will be incurred and the cost or amount of loss can be reasonably estimated. 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, 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. 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 such remediation cannot be determined. | |||||
The activity for the three months ended April 4, 2015 related to environmental liabilities was as follows: | |||||
(In millions) | |||||
Balance at January 3, 2015 | $ | 26.2 | |||
Charges (reversals), net | 0.6 | ||||
Payments | (1.4 | ) | |||
Balance at April 4, 2015 | $ | 25.4 | |||
As of April 4, 2015, approximately $10 million of the balance was classified as short-term and included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. | |||||
Guarantees | |||||
We participate in receivable financing programs with several financial institutions whereby advances may be requested from these financial institutions. We guarantee the collection of the related receivables. At April 4, 2015, the outstanding amount guaranteed was approximately $17 million. We believe our exposure to these guarantees is not material. | |||||
Unused letters of credit (primarily standby) outstanding with various financial institutions were approximately $47 million at April 4, 2015. | |||||
Commitments | |||||
On September 9, 2005, we completed a ten-year lease financing for a commercial facility located in Mentor, Ohio, used primarily for the North American headquarters and research center of our Materials group. The facility consists of land, buildings, and equipment. We lease the facility under an operating lease arrangement, which contains a residual value guarantee of $31.5 million, as well as certain obligations with respect to the refinancing of the lessor’s debt of $11.5 million (collectively, the “Guarantee”). At the end of the lease term, we have the option to purchase or remarket the facility at an amount equivalent to the value of the Guarantee. If our estimated fair value (or estimated selling price) of the facility falls below the Guarantee, we would be required to pay the lessor a shortfall, which is an amount equivalent to the Guarantee less our estimated fair value. During the second quarter of 2011, we estimated a shortfall with respect to the Guarantee and began to recognize the shortfall on a straight-line basis over the remaining lease term. The carrying amount of the shortfall was approximately $17 million at April 4, 2015, of which $4 million was included in “Other current liabilities” and $13 million in “Long-term retirement benefits and other liabilities” in the unaudited Condensed Consolidated Balance Sheets. We are in the process of negotiating an extension and amendment of the lease, and expect to conclude negotiations with the lessor in the second quarter of 2015. | |||||
Segment_Information
Segment Information | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Segment Information | ||||||||
Segment Information | ||||||||
Note 16. Segment Information | ||||||||
Financial information by reportable segment from continuing operations is set forth below. | ||||||||
Three Months Ended | ||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||
Net sales to unaffiliated customers | ||||||||
Pressure-sensitive Materials | $ | 1,120.60 | $ | 1,143.50 | ||||
Retail Branding and Information Solutions | 388.1 | 387.7 | ||||||
Vancive Medical Technologies | 19.3 | 18.9 | ||||||
Net sales to unaffiliated customers | $ | 1,528.00 | $ | 1,550.10 | ||||
Intersegment sales | ||||||||
Pressure-sensitive Materials | $ | 15.7 | $ | 16.2 | ||||
Retail Branding and Information Solutions | 0.6 | 0.8 | ||||||
Vancive Medical Technologies | 1.6 | 2.3 | ||||||
Intersegment sales | $ | 17.9 | $ | 19.3 | ||||
Income from continuing operations before taxes | ||||||||
Pressure-sensitive Materials | $ | 122.9 | $ | 112 | ||||
Retail Branding and Information Solutions | 19.2 | 16.6 | ||||||
Vancive Medical Technologies | (2.1 | ) | (2.6 | ) | ||||
Corporate expense | (25.2 | ) | (22.8 | ) | ||||
Interest expense | (15.3 | ) | (15.4 | ) | ||||
Income from continuing operations before taxes | $ | 99.5 | $ | 87.8 | ||||
Other expense, net by reportable segment | ||||||||
Pressure-sensitive Materials | $ | 5.6 | $ | 1.3 | ||||
Retail Branding and Information Solutions | 5.5 | 6 | ||||||
Vancive Medical Technologies | 1.1 | – | ||||||
Corporate | 2.1 | – | ||||||
Other expense, net | $ | 14.3 | $ | 7.3 | ||||
Other expense, net by type | ||||||||
Restructuring costs: | ||||||||
Severance and related costs | $ | 13.5 | $ | 7 | ||||
Asset impairment charges | 0.4 | 0.3 | ||||||
Other items: | ||||||||
Impairment charges on assets held for sale | 2 | – | ||||||
Legal settlement | (.5 | ) | – | |||||
Gain on sale of asset | (1.7 | ) | – | |||||
Divestiture-related costs | 0.6 | – | ||||||
Other expense, net | $ | 14.3 | $ | 7.3 | ||||
Recent_Accounting_Requirements
Recent Accounting Requirements | 3 Months Ended |
Apr. 04, 2015 | |
Recent Accounting Requirements | |
Recent Accounting Requirements | |
Note 17. Recent Accounting Requirements | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued guidance about accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements. If a cloud computing arrangement includes a software license, as clarified in the guidance, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. This guidance is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years and may be adopted prospectively or retrospectively. We do not anticipate that adoption of this guidance will have a significant impact on our financial position, results of operations, cash flows, or disclosures. | |
In April 2015, the FASB revised guidance to allow employers with fiscal year-ends that do not coincide with a calendar month-end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the calendar month closest to their fiscal year-end. Employers that make this election must apply the alternative measurement date to all defined benefit plans. The guidance also allows all employers to elect to remeasure defined plan assets and obligations in interim periods at the closest calendar month-end to an event that triggers the remeasurement. This revised guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those fiscal years. We do not anticipate that adoption of this revised guidance will have a significant impact on our financial position, results of operations, cash flows, or disclosures. | |
In April 2015, the FASB revised guidance on the presentation of debt issuance costs. Under this revised guidance, debt issuance costs should be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. This revised guidance is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years. We do not anticipate that adoption of this revised guidance will have a significant impact on our financial position, results of operations, cash flows, or disclosures. | |
In May 2014, the FASB issued revised guidance on revenue recognition. This revised guidance provides a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This revised guidance will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. This revised guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This revised guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, and can be applied retrospectively either to each prior reporting period presented or with the cumulative effect of adoption recognized at the date of initial application. Early adoption is not permitted. We are evaluating the impact of this revised guidance, but based on the information that we have evaluated to date, we do not anticipate its adoption to have a significant impact on our financial position, results of operations, cash flows, or disclosures. | |
General_Policies
General (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
General | |
Fiscal Period | Fiscal Period |
The first quarters of 2015 and 2014 consisted of thirteen-week periods ending April 4, 2015 and March 29, 2014, respectively. Interim results of operations are not necessarily indicative of future results. | |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Inventories | ||||||||
Net inventories | (In millions) | 4-Apr-15 | 3-Jan-15 | |||||
Raw materials | $ | 189.5 | $ | 183.6 | ||||
Work-in-progress | 157.6 | 150.4 | ||||||
Finished goods | 161.8 | 157.8 | ||||||
Inventories, net | $ | 508.9 | $ | 491.8 | ||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
Goodwill. | |||||||||||
Changes in net carrying amount of goodwill | (In millions) | Pressure-sensitive | Retail Branding | Total | |||||||
Materials | and Information | ||||||||||
Solutions | |||||||||||
Goodwill as of January 3, 2015 | $ | 306.6 | $ | 415 | $ | 721.6 | |||||
Translation adjustments | (19.8 | ) | (4.8 | ) | (24.6 | ) | |||||
Goodwill as of April 4, 2015 | $ | 286.8 | $ | 410.2 | $ | 697 | |||||
Recovered_Sheet1
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Pension and Other Postretirement Benefits. | ||||||||||||||||||||
Schedule of components of net periodic benefit cost (credit) | Pension Benefits | U.S. Postretirement | ||||||||||||||||||
Health Benefits | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
4-Apr-15 | 29-Mar-14 | 4-Apr-15 | 29-Mar-14 | |||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | ||||||||||||||||
Service cost | $ | 0.1 | $ | 3.7 | $ | 0.1 | $ | 3.5 | $ | – | $ | – | ||||||||
Interest cost | 10.7 | 4.5 | 11 | 6 | 0.1 | – | ||||||||||||||
Expected return on plan assets | (12.9 | ) | (5.5 | ) | (13.0 | ) | (6.5 | ) | – | – | ||||||||||
Recognized net actuarial loss | 5.1 | 2.5 | 3.9 | 1.3 | 0.6 | 0.7 | ||||||||||||||
Amortization of prior service cost (credit) | 0.3 | (.1 | ) | 0.3 | 0.1 | (.8 | ) | (.8 | ) | |||||||||||
Net periodic benefit cost (credit) | $ | 3.3 | $ | 5.1 | $ | 2.3 | $ | 4.4 | $ | (.1 | ) | $ | (.1 | ) | ||||||
Schedule of defined benefit plan contributions | Three Months Ended | |||||||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
U.S. | $ | 1.2 | $ | 1.0 | ||||||||||||||||
Int’l | 7.1 | 8.0 | ||||||||||||||||||
U.S. postretirement health benefits | 0.3 | 0.3 | ||||||||||||||||||
Cost_Reduction_Actions_Tables
Cost Reduction Actions (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Cost Reduction Actions | ||||||||||||||||||||
Restructuring charges and payments | (In millions) | Accrual at | Charges | Cash | Non-cash | Foreign | Accrual at | |||||||||||||
January 3, | (Reversals), | Payments | Impairment | Currency | 4-Apr-15 | |||||||||||||||
2015 | net | Translation | ||||||||||||||||||
2014/2015 Actions | ||||||||||||||||||||
Severance and related costs | $ | 16.8 | $ | 13.5 | $ | (11.7 | ) | $ | – | $ | (.9 | ) | $ | 17.7 | ||||||
Asset impairment charges | – | 0.4 | – | (.4 | ) | – | – | |||||||||||||
Lease cancellation costs | 0.1 | – | (.1 | ) | – | – | – | |||||||||||||
2012 Program | ||||||||||||||||||||
Severance and related costs | 0.8 | – | – | – | (.1 | ) | 0.7 | |||||||||||||
Total | $ | 17.7 | $ | 13.9 | $ | (11.8 | ) | $ | (.4 | ) | $ | (1.0 | ) | $ | 18.4 | |||||
Total amount of restructuring costs incurred by reportable segment and Corporate | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
Restructuring costs by reportable segment and Corporate | ||||||||||||||||||||
Pressure-sensitive Materials | $ | 7.3 | $ | 1.3 | ||||||||||||||||
Retail Branding and Information Solutions | 3.4 | 6.0 | ||||||||||||||||||
Vancive Medical Technologies | 1.1 | – | ||||||||||||||||||
Corporate | 2.1 | – | ||||||||||||||||||
$ | 13.9 | $ | 7.3 | |||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Financial Instruments | ||||||||||||
Fair value and balance sheet locations of derivatives | ||||||||||||
The following table provides the fair value and balance sheet locations of derivatives as of April 4, 2015: | ||||||||||||
Asset | Liability | |||||||||||
(In millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Foreign exchange contracts | Other current assets | $ | 10.0 | Other accrued liabilities | $ | 5.0 | ||||||
Commodity contracts | Other current assets | – | Other accrued liabilities | 0.8 | ||||||||
Long-term retirement benefits and other liabilities | 0.2 | |||||||||||
$ | 10.0 | $ | 6.0 | |||||||||
The following table provides the fair value and balance sheet locations of derivatives as of January 3, 2015: | ||||||||||||
Asset | Liability | |||||||||||
(In millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Foreign exchange contracts | Other current assets | $ | 10.3 | Other accrued liabilities | $ | 10.5 | ||||||
Commodity contracts | Other current assets | – | Other accrued liabilities | 1.0 | ||||||||
Long-term retirement benefits and other liabilities | 0.2 | |||||||||||
$ | 10.3 | $ | 11.7 | |||||||||
Components of the gain (loss) recognized in income related to fair value hedge contracts | ||||||||||||
Three Months Ended | ||||||||||||
(In millions) | Location of Gain (Loss) in Income | April 4, 2015 | March 29, 2014 | |||||||||
Foreign exchange contracts | Cost of products sold | $ | 1.4 | $ | -0.9 | |||||||
Foreign exchange contracts | Marketing, general and administrative expense | 11.7 | 1.0 | |||||||||
$ | 13.1 | $ | 0.1 | |||||||||
Components of the gain (loss) recognized in income related to cash flow hedges | ||||||||||||
Three Months Ended | ||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||
Foreign exchange contracts | $ | 1.5 | $ | (.3 | ) | |||||||
Commodity contracts | (.5 | ) | 0.4 | |||||||||
$ | 1.0 | $ | 0.1 | |||||||||
Taxes_Based_on_Income_Tables
Taxes Based on Income (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Taxes Based on Income | ||||||||
Income from continuing operations before taxes, provision for income taxes from continuing operations, and effective tax rate | Three Months Ended | |||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||
Income from continuing operations before taxes | $ | 99.5 | $ | 87.8 | ||||
Provision for income taxes | 27.9 | 16.2 | ||||||
Effective tax rate | 28.0 | % | 18.4 | % | ||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Net Income Per Common Share | |||||||||
Schedule of net income per common share | |||||||||
Three Months Ended | |||||||||
(In millions, except per share amounts) | April 4, 2015 | March 29, 2014 | |||||||
(A) | Income from continuing operations | $ | 71.6 | $ | 71.6 | ||||
(B) | Loss from discontinued operations, net of tax | – | (.4 | ) | |||||
(C) | Net income available to common shareholders | $ | 71.6 | $ | 71.2 | ||||
(D) | Weighted-average number of common shares outstanding | 90.6 | 96.1 | ||||||
Dilutive shares (additional common shares issuable under stock-based awards) | 1.8 | 1.9 | |||||||
(E) | Weighted-average number of common shares outstanding, assuming dilution | 92.4 | 98.0 | ||||||
Net income per common share: | |||||||||
Continuing operations (A) ÷ (D) | $ | 0.79 | $ | 0.74 | |||||
Discontinued operations (B) ÷ (D) | – | – | |||||||
Net income per common share (C) ÷ (D) | $ | 0.79 | $ | 0.74 | |||||
Net income per common share, assuming dilution: | |||||||||
Continuing operations (A) ÷ (E) | $ | 0.77 | $ | 0.73 | |||||
Discontinued operations (B) ÷ (E) | – | – | |||||||
Net income per common share, assuming dilution (C) ÷ (E) | $ | 0.77 | $ | 0.73 | |||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Comprehensive Income | ||||||||||||||
Schedule of changes in "Accumulated other comprehensive loss" (net of tax) | ||||||||||||||
(In millions) | Foreign | Pension and | Cash Flow | Total | ||||||||||
Currency | Other | Hedges | ||||||||||||
Translation | Postretirement | |||||||||||||
Benefits | ||||||||||||||
Balance as of January 3, 2015 | $ | (16.7 | ) | $ | (530.6 | ) | $ | – | $ | (547.3 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (72.1 | ) | – | – | (72.1 | ) | ||||||||
Reclassifications to net income, net of tax | – | 6.4 | (.7 | ) | 5.7 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (72.1 | ) | 6.4 | (.7 | ) | (66.4 | ) | |||||||
Balance as of April 4, 2015 | $ | (88.8 | ) | $ | (524.2 | ) | $ | (.7 | ) | $ | (613.7 | ) | ||
(In millions) | Foreign | Pension and | Cash Flow | Total | ||||||||||
Currency | Other | Hedges | ||||||||||||
Translation | Postretirement | |||||||||||||
Benefits | ||||||||||||||
Balance as of December 28, 2013 | $ | 138 | $ | (418.1 | ) | $ | (1.0 | ) | $ | (281.1 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (.9 | ) | – | – | (.9 | ) | ||||||||
Reclassifications to net income, net of tax | – | 4.3 | (.1 | ) | 4.2 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (.9 | ) | 4.3 | (.1 | ) | 3.3 | ||||||||
Balance as of March 29, 2014 | $ | 137.1 | $ | (413.8 | ) | $ | (1.1 | ) | $ | (277.8 | ) | |||
Schedule of amounts reclassified from "Accumulated other comprehensive loss" to increase (decrease) income from continuing operations | ||||||||||||||
Three Months Ended | ||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | Affected Line Item in the | |||||||||||
Statements Where Net | ||||||||||||||
Income is Presented | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Foreign exchange contracts | $ | 1.5 | $ | – | Cost of products sold | |||||||||
Commodity contracts | (.5 | ) | 0.1 | Cost of products sold | ||||||||||
1 | 0.1 | Total before tax | ||||||||||||
(.3 | ) | – | Provision for income taxes | |||||||||||
0.7 | 0.1 | Net of tax | ||||||||||||
Pension and other postretirement benefits(1) | (7.6 | ) | (5.5 | ) | ||||||||||
1.2 | 1.2 | Provision for income taxes | ||||||||||||
(6.4 | ) | (4.3 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (5.7 | ) | $ | (4.2 | ) | Total, net of tax | |||||||
-1 | See Note 6, “Pension and Other Postretirement Benefits,” for more information. | |||||||||||||
Income tax expense (benefit) allocated to each component of other comprehensive loss (income): | ||||||||||||||
Three Months Ended | ||||||||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||||||||
Pension and other postretirement benefits | $ | 1.2 | $ | 1.2 | ||||||||||
Cash flow hedges | (.3 | ) | – | |||||||||||
Income tax expense allocated to components of other comprehensive income | $ | 0.9 | $ | 1.2 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Assets and liabilities carried at fair value, measured on a recurring basis | The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of April 4, 2015: | |||||||||||||
Fair Value Measurements Using | ||||||||||||||
(In millions) | Total | Quoted Prices in | Significant Other | Significant Other | ||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Trading securities | $ | 18.0 | $ | 7.8 | $ | 10.2 | $ | – | ||||||
Derivative assets | 10.0 | – | 10.0 | – | ||||||||||
Liabilities | ||||||||||||||
Derivative liabilities | $ | 6.0 | $ | 1.0 | $ | 5.0 | $ | – | ||||||
The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of January 3, 2015: | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
(In millions) | Total | Quoted Prices in | Significant Other | Significant Other | ||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Trading securities | $ | 17.9 | $ | 7.6 | $ | 10.3 | $ | – | ||||||
Derivative assets | 10.3 | – | 10.3 | – | ||||||||||
Liabilities | ||||||||||||||
Derivative liabilities | $ | 11.7 | $ | 1.2 | $ | 10.5 | $ | – | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Apr. 04, 2015 | |||||
Commitments and Contingencies | |||||
Costs of Environmental Liabilities with Remediation | (In millions) | ||||
Balance at January 3, 2015 | $ | 26.2 | |||
Charges (reversals), net | 0.6 | ||||
Payments | (1.4 | ) | |||
Balance at April 4, 2015 | $ | 25.4 | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Segment Information | ||||||||
Financial information, by reportable segment from continuing operations | ||||||||
Three Months Ended | ||||||||
(In millions) | April 4, 2015 | March 29, 2014 | ||||||
Net sales to unaffiliated customers | ||||||||
Pressure-sensitive Materials | $ | 1,120.60 | $ | 1,143.50 | ||||
Retail Branding and Information Solutions | 388.1 | 387.7 | ||||||
Vancive Medical Technologies | 19.3 | 18.9 | ||||||
Net sales to unaffiliated customers | $ | 1,528.00 | $ | 1,550.10 | ||||
Intersegment sales | ||||||||
Pressure-sensitive Materials | $ | 15.7 | $ | 16.2 | ||||
Retail Branding and Information Solutions | 0.6 | 0.8 | ||||||
Vancive Medical Technologies | 1.6 | 2.3 | ||||||
Intersegment sales | $ | 17.9 | $ | 19.3 | ||||
Income from continuing operations before taxes | ||||||||
Pressure-sensitive Materials | $ | 122.9 | $ | 112 | ||||
Retail Branding and Information Solutions | 19.2 | 16.6 | ||||||
Vancive Medical Technologies | (2.1 | ) | (2.6 | ) | ||||
Corporate expense | (25.2 | ) | (22.8 | ) | ||||
Interest expense | (15.3 | ) | (15.4 | ) | ||||
Income from continuing operations before taxes | $ | 99.5 | $ | 87.8 | ||||
Other expense, net by reportable segment | ||||||||
Pressure-sensitive Materials | $ | 5.6 | $ | 1.3 | ||||
Retail Branding and Information Solutions | 5.5 | 6 | ||||||
Vancive Medical Technologies | 1.1 | – | ||||||
Corporate | 2.1 | – | ||||||
Other expense, net | $ | 14.3 | $ | 7.3 | ||||
Other expense, net by type | ||||||||
Restructuring costs: | ||||||||
Severance and related costs | $ | 13.5 | $ | 7 | ||||
Asset impairment charges | 0.4 | 0.3 | ||||||
Other items: | ||||||||
Impairment charges on assets held for sale | 2 | – | ||||||
Legal settlement | (.5 | ) | – | |||||
Gain on sale of asset | (1.7 | ) | – | |||||
Divestiture-related costs | 0.6 | – | ||||||
Other expense, net | $ | 14.3 | $ | 7.3 | ||||
General_Details
General (Details) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
General | ||
Length of fiscal period | 91 days | 91 days |
Assets_Held_for_Sale_and_Disco1
Assets Held for Sale and Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Operating results of discontinued operations and loss on sale | ||
(Loss) Income from discontinued operations, net of tax | ($0.40) | |
Impairment of long-lived assets of product line | 2 | |
Retail Branding and Information Solutions | ||
Operating results of discontinued operations and loss on sale | ||
Impairment of long-lived assets of product line | $2 |
Inventories_Details
Inventories (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials | $189.50 | $183.60 |
Work-in-progress | 157.6 | 150.4 |
Finished goods | 161.8 | 157.8 |
Inventories, net | $508.90 | $491.80 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 |
Changes in net carrying amount of goodwill | ||
Goodwill, Beginning Balance | $721.60 | |
Translation adjustments | -24.6 | |
Goodwill, Ending Balance | 697 | |
Pressure-sensitive Materials | ||
Changes in net carrying amount of goodwill | ||
Goodwill, Beginning Balance | 306.6 | |
Translation adjustments | -19.8 | |
Goodwill, Ending Balance | 286.8 | |
Retail Branding and Information Solutions | ||
Changes in net carrying amount of goodwill | ||
Goodwill, Beginning Balance | 415 | |
Translation adjustments | -4.8 | |
Goodwill, Ending Balance | 410.2 | |
Accumulated impairment losses | 820 | 820 |
Vancive Medical Technologies | ||
Changes in net carrying amount of goodwill | ||
Goodwill, Ending Balance | $0 |
Debt_Details
Debt (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Billions, unless otherwise specified | ||
Debt | ||
Fair value of debt | $1.30 | $1.22 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
U.S.. | ||
Components of net periodic benefit cost: | ||
Employer contributions | $1.20 | $1 |
U.S.. | Continuing operations | ||
Components of net periodic benefit cost: | ||
Service cost | 0.1 | 0.1 |
Interest cost | 10.7 | 11 |
Expected return on plan assets | -12.9 | -13 |
Recognized net actuarial loss | 5.1 | 3.9 |
Amortization of prior service cost (credit) | 0.3 | 0.3 |
Net periodic benefit cost (credit) | 3.3 | 2.3 |
Int'l | ||
Components of net periodic benefit cost: | ||
Employer contributions | 7.1 | 8 |
Int'l | Continuing operations | ||
Components of net periodic benefit cost: | ||
Service cost | 3.7 | 3.5 |
Interest cost | 4.5 | 6 |
Expected return on plan assets | -5.5 | -6.5 |
Recognized net actuarial loss | 2.5 | 1.3 |
Amortization of prior service cost (credit) | -0.1 | 0.1 |
Net periodic benefit cost (credit) | 5.1 | 4.4 |
U.S. Postretirement Health Benefits | ||
Components of net periodic benefit cost: | ||
Employer contributions | 0.3 | 0.3 |
U.S. Postretirement Health Benefits | Continuing operations | ||
Components of net periodic benefit cost: | ||
Interest cost | 0.1 | |
Recognized net actuarial loss | 0.6 | 0.7 |
Amortization of prior service cost (credit) | -0.8 | -0.8 |
Net periodic benefit cost (credit) | ($0.10) | ($0.10) |
Research_and_Development_Detai
Research and Development (Details) (Marketing, general and administrative expense, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Marketing, general and administrative expense | ||
Research and development expense | $25.60 | $24.90 |
LongTerm_Incentive_Compensatio1
Long-Term Incentive Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Marketing, general and administrative expense | ||
Stock-Based Compensation | ||
Stock-based compensation expense | $7.40 | $6 |
Cash-based LTI awards | 5.2 | 5.3 |
Stock-based awards | Continuing operations | ||
Stock-Based Compensation | ||
Unrecognized compensation cost related to share based compensation cost | $49 | |
Unrecognized compensation cost weighted average recognition period | 3 years |
Cost_Reduction_Actions_Details
Cost Reduction Actions (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 |
item | item | |
Restructuring Cost and Reserve | ||
Charges (Reversals), net | $13.90 | |
2014/2015 Actions | ||
Restructuring Cost and Reserve | ||
Charges (Reversals), net | $13.90 | $66.50 |
Number of positions reduced as a result of Cost Reduction Actions | 245 | 1,420 |
Number of positions remaining | 130 |
Cost_Reduction_Actions_Details1
Cost Reduction Actions (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Jan. 03, 2015 |
Cost Reduction Actions | |||
Beginning Balance | $17.70 | ||
Charges (Reversals), net | 13.9 | ||
Cash payments | -11.8 | ||
Non-cash Impairment | -0.4 | ||
Foreign Currency translation | -1 | ||
Ending Balance | 18.4 | ||
Severance and related costs | |||
Cost Reduction Actions | |||
Charges (Reversals), net | 13.5 | 7 | |
2014/2015 Actions | |||
Cost Reduction Actions | |||
Charges (Reversals), net | 13.9 | 66.5 | |
2014/2015 Actions | Severance and related costs | |||
Cost Reduction Actions | |||
Beginning Balance | 16.8 | ||
Charges (Reversals), net | 13.5 | ||
Cash payments | -11.7 | ||
Foreign Currency translation | -0.9 | ||
Ending Balance | 17.7 | ||
2014/2015 Actions | Asset impairment charges | |||
Cost Reduction Actions | |||
Charges (Reversals), net | 0.4 | ||
Non-cash Impairment | -0.4 | ||
2014/2015 Actions | Lease cancellation costs | |||
Cost Reduction Actions | |||
Beginning Balance | 0.1 | ||
Cash payments | -0.1 | ||
2012 Program | Severance and related costs | |||
Cost Reduction Actions | |||
Beginning Balance | 0.8 | ||
Foreign Currency translation | -0.1 | ||
Ending Balance | $0.70 |
Cost_Reduction_Actions_Details2
Cost Reduction Actions (Details 3) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 |
Restructuring Cost and Reserve | ||
Restructuring costs | $13.90 | |
Other expense, net | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 13.9 | 7.3 |
Pressure-sensitive Materials | Other expense, net | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 7.3 | 1.3 |
Retail Branding and Information Solutions | Other expense, net | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 3.4 | 6 |
Vancive Medical Technologies | Other expense, net | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 1.1 | |
Corporate | Other expense, net | ||
Restructuring Cost and Reserve | ||
Restructuring costs | $2.10 |
Financial_Instruments_Details
Financial Instruments (Details) (Cash Flow Hedging, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 |
Financial Instruments | |
Maximum length of time hedged in cash flow hedge | 36 months |
Cash Flow Hedge Gain to be Reclassified within Twelve Months | $1 |
Foreign exchange contracts | |
Financial Instruments | |
Notional amount | 1,300 |
Commodity contracts | |
Financial Instruments | |
Notional amount | $4.30 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value | ||
Asset | $10 | $10.30 |
Liability | 6 | 11.7 |
Long-term retirement benefits and other liabilities | ||
Derivatives, Fair Value | ||
Liability | 0.2 | 0.2 |
Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset | 10 | 10.3 |
Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability | 5 | 10.5 |
Commodity contracts | Other accrued liabilities | ||
Derivatives, Fair Value | ||
Liability | $0.80 | $1 |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Fair Value Hedges | ||
Gain (loss) in income | $13.10 | $0.10 |
Foreign exchange contracts | Cost of products sold | ||
Fair Value Hedges | ||
Gain (loss) in income | 1.4 | -0.9 |
Foreign exchange contracts | Marketing, general and administrative expense | ||
Fair Value Hedges | ||
Gain (loss) in income | $11.70 | $1 |
Financial_Instruments_Details_2
Financial Instruments (Details 4) (Cash Flow Hedging, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Derivative Instruments, Gains (Losses) | ||
Gains (losses) recognized in accumulated other comprehensive loss on derivatives | $1 | $0.10 |
Foreign exchange contracts | ||
Derivative Instruments, Gains (Losses) | ||
Gains (losses) recognized in accumulated other comprehensive loss on derivatives | 1.5 | -0.3 |
Commodity contracts | ||
Derivative Instruments, Gains (Losses) | ||
Gains (losses) recognized in accumulated other comprehensive loss on derivatives | ($0.50) | $0.40 |
Taxes_Based_on_Income_Details
Taxes Based on Income (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Apr. 04, 2015 | Mar. 29, 2014 |
Taxes Based on Income | |||
Income from continuing operations before taxes | $99.50 | $87.80 | |
Provision for income taxes | 27.9 | 16.2 | |
Effective tax rate (as a percent) | 28.00% | 18.40% | |
Discrete tax benefit due to a decrease in certain tax reserves, including interest and penalties, as a result of closing tax years | 3.3 | ||
Tax benefits as a result of changes in certain tax reserves and valuation allowance | 9.5 | ||
Tax benefit from the changes in effective tax rate in certain foreign municipalities | 1.6 | ||
Income tax benefit from out-of-period adjustments to properly state deferred taxes related to acquisitions completed in 2002 and 2003 | 4.8 | ||
Reasonably possible decrease in unrecognized tax benefits during next 12 months | $10 |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Net income per common share amounts | ||
Income from continuing operations | $71.60 | $71.60 |
Loss (income) from discontinued operations, net of tax | -0.4 | |
Net income | $71.60 | $71.20 |
Weighted-average number of common shares outstanding | 90.6 | 96.1 |
Dilutive shares (additional common shares issuable under stock-based awards) | 1.8 | 1.9 |
Weighted-average number of common shares outstanding, assuming dilution | 92.4 | 98 |
Net income (loss) per common share: | ||
Continuing operations (in dollars per share) | $0.79 | $0.74 |
Discontinued operations (in dollars per share) | $0 | $0 |
Net income per common share (in dollars per share) | $0.79 | $0.74 |
Net income (loss) per common share, assuming dilution: | ||
Continuing operations (in dollars per share) | $0.77 | $0.73 |
Discontinued operations (in dollars per share) | $0 | $0 |
Net income per common share, assuming dilution (in dollars per share) | $0.77 | $0.73 |
Stock-based compensation awards excluded from the computation of net income per common share, assuming dilution | 1 | 4 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Changes in Accumulated other comprehensive loss (net of tax) | ||
Balance at beginning of the period | ($547.30) | ($281.10) |
Other comprehensive loss before reclassifications, net of tax | -72.1 | -0.9 |
Reclassifications to net income, net of tax | 5.7 | 4.2 |
Other comprehensive (loss) income, net of tax | -66.4 | 3.3 |
Balance at end of the period | -613.7 | -277.8 |
Cash Flow Hedges | ||
Changes in Accumulated other comprehensive loss (net of tax) | ||
Balance at beginning of the period | -1 | |
Reclassifications to net income, net of tax | -0.7 | -0.1 |
Other comprehensive (loss) income, net of tax | -0.7 | -0.1 |
Balance at end of the period | -0.7 | -1.1 |
Pension and Other Postretirement Benefits | ||
Changes in Accumulated other comprehensive loss (net of tax) | ||
Balance at beginning of the period | -530.6 | -418.1 |
Reclassifications to net income, net of tax | 6.4 | 4.3 |
Other comprehensive (loss) income, net of tax | 6.4 | 4.3 |
Balance at end of the period | -524.2 | -413.8 |
Foreign Currency Translation | ||
Changes in Accumulated other comprehensive loss (net of tax) | ||
Balance at beginning of the period | -16.7 | 138 |
Other comprehensive loss before reclassifications, net of tax | -72.1 | -0.9 |
Other comprehensive (loss) income, net of tax | -72.1 | -0.9 |
Balance at end of the period | ($88.80) | $137.10 |
Comprehensive_Income_Details_2
Comprehensive Income (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Amounts reclassified from Accumulated other comprehensive loss | ||
Cost of products sold | ($1,098) | ($1,142.90) |
Income from continuing operations before taxes | 99.5 | 87.8 |
Provision for income taxes | -27.9 | -16.2 |
Income from continuing operations | 71.6 | 71.6 |
Amounts Reclassified from Accumulated other comprehensive loss. | ||
Amounts reclassified from Accumulated other comprehensive loss | ||
Income from continuing operations | -5.7 | -4.2 |
Cash Flow Hedges | Amounts Reclassified from Accumulated other comprehensive loss. | ||
Amounts reclassified from Accumulated other comprehensive loss | ||
Income from continuing operations before taxes | 1 | 0.1 |
Provision for income taxes | -0.3 | |
Income from continuing operations | 0.7 | 0.1 |
Cash Flow Hedges | Amounts Reclassified from Accumulated other comprehensive loss. | Foreign exchange contracts | ||
Amounts reclassified from Accumulated other comprehensive loss | ||
Cost of products sold | 1.5 | |
Cash Flow Hedges | Amounts Reclassified from Accumulated other comprehensive loss. | Commodity contracts | ||
Amounts reclassified from Accumulated other comprehensive loss | ||
Cost of products sold | -0.5 | 0.1 |
Pension and Other Postretirement Benefits | Amounts Reclassified from Accumulated other comprehensive loss. | ||
Amounts reclassified from Accumulated other comprehensive loss | ||
Amortization of defined benefit pension | -7.6 | -5.5 |
Provision for income taxes | 1.2 | 1.2 |
Income from continuing operations | ($6.40) | ($4.30) |
Comprehensive_Income_Details_3
Comprehensive Income (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income tax expense (benefit) allocated to other comprehensive (loss) income | ||
Pension and other postretirement benefits | $1.20 | $1.20 |
Cash flow hedges | -0.3 | |
Income tax expense allocated to components of other comprehensive income | $0.90 | $1.20 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, unless otherwise specified | ||
Assets | ||
Derivative assets | $10 | $10.30 |
Liabilities | ||
Derivative liabilities | 6 | 11.7 |
Recurring | ||
Assets | ||
Trading securities | 18 | 17.9 |
Derivative assets | 10 | 10.3 |
Liabilities | ||
Derivative liabilities | 6 | 11.7 |
Recurring | Cash and Cash Equivalents | ||
Assets | ||
Trading securities | 0.4 | 0.8 |
Recurring | Other current assets | ||
Assets | ||
Trading securities | 17.6 | 17.1 |
Quoted Prices in Active Markets (Level 1) | Recurring | ||
Assets | ||
Trading securities | 7.8 | 7.6 |
Liabilities | ||
Derivative liabilities | 1 | 1.2 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Assets | ||
Trading securities | 10.2 | 10.3 |
Derivative assets | 10 | 10.3 |
Liabilities | ||
Derivative liabilities | $5 | $10.50 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 | Sep. 09, 2005 |
item | ||
Environmental | ||
Environmental site contingency number of sites | 15 | |
Activity related to environmental liabilities | ||
Balance at beginning of year | $26.20 | |
Charges (reversals), net | 0.6 | |
Payments | -1.4 | |
Balance at end of year | 25.4 | |
Short term environmental liabilities | 10 | |
Letters of credit | ||
Guarantor Obligations | ||
Unused borrowing capacity with various financial institutions | 47 | |
Guarantee receivable financing | ||
Guarantor Obligations | ||
Guarantee obligations | 17 | |
Mentor lease facility | ||
Guarantor Obligations | ||
Term of lease financing for commercial facility | 10 years | |
Residual value guarantee | 31.5 | |
Refinancing of lessor debt | 11.5 | |
Mentor lease facility | Long-term retirement benefits and other liabilities | ||
Guarantor Obligations | ||
Aggregate amount of lease commitment | 17 | |
Aggregate amount of lease commitment included in "Other current liabilities" | 4 | |
Aggregate amount of lease commitment included in "Long-term retirement benefits and other liabilities" | $13 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Segment Reporting Information | ||
Net sales | $1,528 | $1,550.10 |
Interest expense | -15.3 | -15.4 |
Income from continuing operations before taxes | 99.5 | 87.8 |
Other expense, net | 14.3 | 7.3 |
Intersegment | ||
Segment Reporting Information | ||
Net sales | 17.9 | 19.3 |
Pressure-sensitive Materials | Operating segments | ||
Segment Reporting Information | ||
Net sales | 1,120.60 | 1,143.50 |
Income from continuing operations before taxes | 122.9 | 112 |
Other expense, net | 5.6 | 1.3 |
Pressure-sensitive Materials | Intersegment | ||
Segment Reporting Information | ||
Net sales | 15.7 | 16.2 |
Retail Branding and Information Solutions | Operating segments | ||
Segment Reporting Information | ||
Net sales | 388.1 | 387.7 |
Income from continuing operations before taxes | 19.2 | 16.6 |
Other expense, net | 5.5 | 6 |
Retail Branding and Information Solutions | Intersegment | ||
Segment Reporting Information | ||
Net sales | 0.6 | 0.8 |
Vancive Medical Technologies | ||
Segment Reporting Information | ||
Other expense, net | 1.1 | |
Vancive Medical Technologies | Operating segments | ||
Segment Reporting Information | ||
Net sales | 19.3 | 18.9 |
Income from continuing operations before taxes | -2.1 | -2.6 |
Vancive Medical Technologies | Intersegment | ||
Segment Reporting Information | ||
Net sales | 1.6 | 2.3 |
Corporate | ||
Segment Reporting Information | ||
Income from continuing operations before taxes | -25.2 | -22.8 |
Other expense, net | $2.10 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Restructuring costs | ||
Asset impairment | $13.90 | |
Other items: | ||
Impairment charges on assets held for sale | 2 | |
Legal settlement | -0.5 | |
Gain on sale of asset | -1.7 | |
Divestiture-related costs | 0.6 | |
Other expense, net | 14.3 | 7.3 |
Severance and related costs | ||
Restructuring costs | ||
Asset impairment | 13.5 | 7 |
Asset impairment | ||
Restructuring costs | ||
Asset impairment | $0.40 | $0.30 |