Avery Dennison (AVY) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 28, 2017
Document and Entity Information
Entity Registrant Name	Avery Dennison Corp
Entity Central Index Key	8,818
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,036,368
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 232.3	$ 195.1
Trade accounts receivable, less allowances of $41.3 and $47.8 at September 30, 2017 and December 31, 2016, respectively	1,184.8	1,001
Inventories, net	620	519.1
Assets held for sale	6.8	6.8
Other current assets	239.4	182.8
Total current assets	2,283.3	1,904.8
Property, plant and equipment	2,941.4	2,661.4
Accumulated depreciation	(1,894.4)	(1,746.2)
Property, plant and equipment, net	1,047	915.2
Goodwill	977.1	793.6
Other intangibles resulting from business acquisitions, net	170.1	66.7
Non-current deferred income taxes	347.4	313.2
Other assets	445.1	402.9
Total assets	5,270	4,396.4
Current liabilities:
Short-term borrowings and current portion of long-term debt and capital leases	383	579.1
Accounts payable	949.2	841.9
Accrued payroll and employee benefits	226.1	217.4
Other current liabilities	465	365.9
Total current liabilities	2,023.3	2,004.3
Long-term debt and capital leases	1,298.4	713.4
Long-term retirement benefits and other liabilities	678.7	660.9
Non-current deferred and payable income taxes	134.7	92.3
Commitments and contingencies (see Note 15)
Shareholders' equity:
Common stock, $1 par value per share, authorized - 400,000,000 shares at September 30, 2017 and December 31, 2016; issued - 124,126,624 shares at September 30, 2017 and December 31, 2016; outstanding - 88,080,629 shares and 88,308,860 shares at September 30, 2017 and December 31, 2016, respectively	124.1	124.1
Capital in excess of par value	854.6	852
Retained earnings	2,693.3	2,473.3
Treasury stock at cost, 36,045,995 shares and 35,817,764 shares at September 30, 2017 and December 31, 2016, respectively	(1,838)	(1,772)
Accumulated other comprehensive loss	(699.1)	(751.9)
Total shareholders' equity	1,134.9	925.5
Total liabilities and shareholders' equity	$ 5,270	$ 4,396.4

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Trade accounts receivable, allowances (in dollars)	$ 41.3	$ 47.8
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	88,080,629	88,308,860
Treasury stock, shares	36,045,995	35,817,764

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Net sales	$ 1,679.5	$ 1,508.7	$ 4,878.5	$ 4,535.7
Cost of products sold	1,227.9	1,091.1	3,531.9	3,261.4
Gross profit	451.6	417.6	1,346.6	1,274.3
Marketing, general and administrative expense	277.2	270.3	837.2	817.7
Interest expense	16.8	14.7	49.7	45.4
Other expense, net	10.8	4.6	27.5	60.4
Income before taxes	146.8	128	432.2	350.8
Provision for income taxes	38.5	38.9	90.8	92.1
Net income	$ 108.3	$ 89.1	$ 341.4	$ 258.7
Per share amounts:
Net income per common share (in dollars per share)	$ 1.23	$ 1	$ 3.86	$ 2.90
Net income per common share, assuming dilution (in dollars per share)	1.20	0.98	3.79	2.85
Dividends per common share (in dollars per share)	$ 0.45	$ 0.41	$ 1.31	$ 1.19
Weighted average number of shares outstanding:
Common shares (in shares)	88.3	89.1	88.4	89.2
Common shares, assuming dilution (in shares)	89.9	90.6	90.1	90.9

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 108.3	$ 89.1	$ 341.4	$ 258.7
Other comprehensive income (loss), net of tax:
Foreign currency translation	12.1	15.5	39.3	21.1
Pension and other postretirement benefits	5	4.4	14.6	(6.9)
Cash flow hedges	0.2	(0.1)	(1.1)	(0.2)
Other comprehensive income, net of tax	17.3	19.8	52.8	14
Total comprehensive income, net of tax	$ 125.6	$ 108.9	$ 394.2	$ 272.7

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Operating Activities
Net income	$ 341.4	$ 258.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	92.6	88.8
Amortization	42.2	46.7
Provision for doubtful accounts and sales returns	28.1	33.8
Net losses from asset impairments and sales/disposals of assets	2.4	3.8
Stock-based compensation	22.2	20.1
Loss from settlement of pension obligations		41.4
Other non-cash expense and loss	41	34.7
Changes in assets and liabilities and other adjustments	(177.3)	(162.3)
Net cash provided by operating activities	392.6	365.7
Investing Activities
Purchases of property, plant and equipment	(111.4)	(104.9)
Purchases of software and other deferred charges	(23.5)	(16.6)
Proceeds from sales of property, plant and equipment	3	4.3
Purchases of investments, net	(4.7)	(0.8)
Payments for acquisitions, net of cash acquired, and investments in businesses	(309.5)	(227.5)
Net cash used in investing activities	(446.1)	(345.5)
Financing Activities
Net (decrease) increase in borrowings (maturities of three months or less)	(220.1)	242
Additional long-term borrowings	526.6
Repayments of long-term debt	(2.5)	(1.9)
Dividends paid	(115.8)	(106.2)
Share repurchases	(104.8)	(181.5)
Proceeds from exercises of stock options, net	17.7	63.4
Tax withholding for and excess tax benefit from stock-based compensation, net	(20.3)	(4.4)
Net cash provided by financing activities	80.8	11.4
Effect of foreign currency translation on cash balances	9.9	(1)
Increase in cash and cash equivalents	37.2	30.6
Cash and cash equivalents, beginning of year	195.1	158.8
Cash and cash equivalents, end of period	$ 232.3	$ 189.4

General

General	9 Months Ended
	Sep. 30, 2017
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 2016 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. Interim results of operations are not necessarily indicative of future results. Fiscal Periods The three and nine months ended September 30, 2017 and October 1, 2016 each consisted of thirteen-week and thirty-nine-week periods, respectively. Accounting Guidance Update In the first quarter of 2017, we adopted an accounting guidance update that simplifies several aspects of the accounting for stock-based payment transactions. As a result of adopting this update, beginning in the first quarter of 2017, (i) the tax effects related to stock-based payments at settlement or expiration were recognized through the income statement, a change from the previous requirement that certain tax effects be recognized in capital in excess of par value, and, as required by this guidance, this change was applied prospectively, and (ii) all tax-related cash flows resulting from stock-based payments were reported as operating activities on the statements of cash flows, a change from the previous requirement to present excess tax benefits as an inflow from financing activities and an outflow from operating activities, and, as permitted by this update, prior periods were not retrospectively adjusted. Refer to Note 8, “Long-Term Incentive Compensation and Supplemental Equity Information,” and Note 11, “Taxes Based on Income,” for further information.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Acquisitions
Acquisitions	Note 2. Acquisitions On June 23, 2017, we completed the stock acquisition of Yongle Tape Ltd. (“Yongle Tape”), a China-based manufacturer of specialty tapes and related products used in a variety of industrial markets, from Yongle Tape’s management and Shaw Kwei & Partners. On May 19, 2017, we completed the stock acquisition of Finesse Medical Limited (“Finesse Medical”), an Ireland-based manufacturer of healthcare products used in the management of wound care and skin conditions, from Finesse Medical’s management. On March 1, 2017, we completed the net asset acquisition of Hanita Coatings Rural Cooperative Association Limited and stock acquisition of certain of its subsidiaries (“Hanita”), an Israel-based pressure-sensitive manufacturer of specialty films and laminates, from Kibbutz Hanita Coatings and Tene Investment Funds. We expect the acquisitions of Yongle Tape, Finesse Medical, and Hanita (collectively, the “2017 Acquisitions”) to expand our product portfolio and provide new growth opportunities. The aggregate purchase consideration for these acquisitions, which is subject to customary post-closing adjustments, was approximately $344 million. This included $15 million of payments based on Yongle Tape’s achievement of certain pre-acquisition performance targets. The payments for the 2017 Acquisitions were funded through cash and existing credit facilities. In addition to the cash paid at the closing of the 2017 Acquisitions, certain sellers are eligible for earn-out payments of up to approximately $45 million related to the achievement of certain performance targets for 2017 and 2018. Based on our current estimates, we have accrued approximately $38 million for these additional earn-out payments, which has been included in the $344 million of aggregate purchase consideration. Consistent with the allowable time to complete our assessment, the valuations of certain acquired assets and liabilities, including tangible and intangible assets, environmental liabilities and income taxes, are currently pending. The 2017 Acquisitions were not material, individually or in the aggregate, to our unaudited Condensed Consolidated Financial Statements.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventories
Inventories	Note 3. Inventories Net inventories consisted of: (In millions) September 30, 2017 December 31, 2016 Raw materials $ $ Work-in-progress Finished goods Inventories, net $ $

Goodwill and Other Intangibles

Goodwill and Other Intangibles Resulting from Business Acquisitions	9 Months Ended
	Sep. 30, 2017
Goodwill and Other Intangibles Resulting from Business Acquisitions
Goodwill and Other Intangibles Resulting from Business Acquisitions	Note 4. Goodwill and Other Intangibles Resulting from Business Acquisitions Goodwill Changes in the net carrying amount of goodwill for the nine months ended September 30, 2017, by reportable segment, were as follows: (In millions) Label and Retail Branding Industrial and Total Goodwill as of December 31, 2016 $ $ $ $ 2017 Acquisitions (1) – Acquisition adjustments (2) – .7 Translation adjustments Goodwill as of September 30, 2017 $ $ $ $ (1) Goodwill acquired related to the acquisitions of Hanita, which is included in the Label and Graphic Materials reportable segment, and Finesse Medical and Yongle Tape, which are included in the Industrial and Healthcare Materials reportable segment. (2) Goodwill purchase price allocation adjustments related to the acquisition of the European business of Mactac completed in August 2016. The carrying amounts of goodwill at September 30, 2017 and December 31, 2016 were net of cumulative impairment losses of $820 million recognized in fiscal year 2009 by our Retail Branding and Information Solutions reportable segment. In connection with the 2017 Acquisitions, we recognized goodwill based on our expectation of synergies and other benefits from acquiring these businesses. We expect the majority of the recognized goodwill related to the Hanita acquisition to be deductible for income tax purposes. Finite-Lived Intangible Assets In connection with the 2017 Acquisitions, we acquired approximately $111 million of identifiable intangible assets, which consisted of customer relationships, trade names and trademarks, and patents and other acquired technology. We utilized the income approach to estimate the fair values of the identifiable intangibles associated with the 2017 Acquisitions, using primarily Level 3 inputs. The discount rates we used to value these assets were between 10% and 16%. The table below summarizes the preliminary amounts and weighted useful lives of these intangible assets: Amount (in millions) Weighted-average Customer relationships $ Patents and other acquired technology Trade names and trademarks Refer to Note 2, “Acquisitions,” for more information.

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt
Debt	Note 5. Debt In March 2017, we issued €500 million of senior notes, due March 2025. The senior notes bear an interest rate of 1.25% per year, payable annually in arrears. The net proceeds from the offering, after deducting underwriting discounts and estimated offering expenses, were $526.6 million (€495.5 million), a portion of which was used to repay commercial paper borrowings that we used to finance a portion of our acquisition of the European business of Mactac (“Mactac”) in August 2016 and the remainder of which was used for general corporate purposes, including acquisitions. We designated the senior notes as a net investment hedge of our investment in foreign operations. Refer to Note 10, “Financial Instruments,” for more information. The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury 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 carrying value given the short duration of these obligations. The fair value of our total debt was $1.7 billion at September 30, 2017 and $1.31 billion at December 31, 2016. 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 $700 million revolving credit facility (the “Revolver”) contains financial covenants requiring that we maintain specified ratios of total debt and interest expense in relation to certain measures of income. As of September 30, 2017 and December 31, 2016, we were in compliance with our financial covenants. On October 2, 2017, subsequent to the end of the third quarter of 2017, we repaid $250 million of senior notes at maturity using commercial paper borrowings.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2017
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. 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 these benefits, 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, for our defined benefit plans: Pension Benefits Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In millions) U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l Service cost $ .1 $ $ .1 $ $ .3 $ $ .3 $ Interest cost Actuarial loss .2 – .7 – – – Expected return on plan assets ) ) ) ) ) ) ) ) Recognized net actuarial loss Amortization of prior service cost (credit) .3 (.1 ) .3 – .7 (.3 ) .9 (.2 ) Recognized loss on settlements (1) – – – – – – – Net periodic benefit cost $ $ $ $ $ $ $ $ (1) In the second quarter of 2016, we recognized loss on settlements related to the Avery Dennison Pension Plan, our U.S. pension plan, as a result of lump-sum pension payments to eligible former employees who were vested participants in the plan. The loss on settlements was recorded in “Other expense, net” in the unaudited Condensed Consolidated Statements of Income. U.S. Postretirement Health Benefits Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Interest cost $ – $ – $ .1 $ .1 Recognized net actuarial loss .4 .5 Amortization of prior service credit (.9 ) (.9 ) ) ) Net periodic benefit credit $ (.5 ) $ (.4 ) $ ) $ )

Research and Development

Research and Development	9 Months Ended
	Sep. 30, 2017
Research and Development
Research and Development	Note 7. Research and Development Research and development expense was $23.6 million and $70 million for the three and nine months ended September 30, 2017, respectively, and $22.4 million and $67.4 million for the three and nine months ended October 1, 2016, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Condensed Consolidated Statements of Income.

Long-Term Incentive Compensatio

Long-Term Incentive Compensation and Supplemental Equity Information	9 Months Ended
	Sep. 30, 2017
Long-Term Incentive Compensation and Supplemental Equity Information
Long-Term Incentive Compensation and Supplemental Equity Information	Note 8. Long-Term Incentive Compensation and Supplemental Equity Information As discussed in Note 1, “General,” we adopted an accounting guidance update in the first quarter of 2017 that, among other things, provided an accounting policy election to account for forfeitures of stock-based awards as they occur, rather than based on an estimate of expected forfeitures. We elected to continue our current practice of estimating expected forfeitures in determining the compensation cost to be recognized each period. In April 2017, our shareholders approved our 2017 Incentive Award Plan (the “2017 Plan”) to replace our Amended and Restated Stock Option and Incentive Plan. The 2017 Plan, a long-term incentive plan for eligible employees and non-employee directors, allows us to grant stock-based compensation awards – including stock options, restricted stock units, performance units, and market-leveraged stock units – or a combination of these and other awards. Under the 2017 Plan, the aggregate number of shares available for issuance is 5.4 million shares and each full value award will be counted as 1.5 shares for purposes of the number of shares authorized for issuance. Full value awards include restricted stock units, performance units, and market-leveraged stock units. Stock-Based Awards Stock-based compensation expense was $9 million and $22.2 million for the three and nine months ended September 30, 2017, respectively, and $6 million and $20.1 million for the three and nine months ended October 1, 2016, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Condensed Consolidated Statements of Income. As of September 30, 2017, we had approximately $46 million of unrecognized compensation expense related to unvested stock-based awards, which is expected to be recognized over the remaining weighted-average requisite service period of approximately two years. Cash-Based Awards The compensation expense related to long-term incentive units was $7.8 million and $24.6 million for the three and nine months ended September 30, 2017, respectively, and $7 million and $21.7 million for the three and nine months ended October 1, 2016, respectively. This expense was included in “Marketing, general and administrative expense” in the unaudited Condensed Consolidated Statements of Income. Share Repurchase Program In April 2017, our Board of Directors (“Board”) authorized the repurchase of shares of our common stock with a fair market value of up to $650 million, exclusive of any fees, commissions or other expenses related to such purchases and in addition to the amount outstanding under our previous Board authorization. Our Board repurchase authorizations remain in effect until shares in the respective amount authorized thereunder have been repurchased.

Cost Reduction Actions

Cost Reduction Actions	9 Months Ended
	Sep. 30, 2017
Cost Reduction Actions
Cost Reduction Actions	Note 9. Cost Reduction Actions 2015/2016 Actions During the nine months ended September 30, 2017, we recorded $24.4 million in restructuring charges, net of reversals, related to restructuring actions initiated during the third quarter of 2015 (“2015/2016 Actions”). These charges consisted of severance and related costs for the reduction of approximately 670 positions, lease cancellation costs, and asset impairment charges. Accruals for severance and related costs and lease cancellation costs were included in “Other current 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, net” in the unaudited Condensed Consolidated Statements of Income. During the nine months ended September 30, 2017, restructuring charges and payments were as follows: (In millions) Accrual at Charges Cash Non-cash Foreign Accrual at 2015/2016 Actions Severance and related costs $ $ $ $ – $ .1 $ Lease cancellation costs .2 (.4) – – .9 Asset impairment charges – – ) – – Prior actions Severance and related costs (.7) (.7) – .1 – Total $ $ $ $ ) $ .2 $ The table below shows the total amount of restructuring charges incurred by reportable segment and Corporate: Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Restructuring charges by reportable segment and Corporate Label and Graphic Materials $ $ .7 $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials – .4 .2 .9 Corporate – – – – Total $ $ $ $

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, the aggregate U.S. dollar equivalent notional value of our outstanding commodity contracts and foreign exchange contracts was $4.4 million and $1.84 billion, respectively. We recognize 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 designate foreign exchange contracts on existing balance sheet items as fair value hedges. The following table shows the fair value and balance sheet locations of derivatives as of September 30, 2017: Asset Liability (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Other current assets $ Other current liabilities $ The following table shows the fair value and balance sheet locations of derivatives as of December 31, 2016: Asset Liability (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Other current assets $ Other current liabilities $ Commodity contracts Other current assets .5 Other current liabilities – Commodity contracts Other assets .1 $ $ Fair Value Hedges The following table shows the components of net gains (losses), before taxes, recognized in income related to fair value hedge contracts. The corresponding gains or losses on the underlying hedged items approximated the net gains (losses) on these fair value hedge contracts. Three Months Ended Nine Months Ended (In millions) Location of Net Gains September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign exchange contracts Cost of products sold $ (.1 ) $ (.2 ) $ ) $ Foreign exchange contracts Marketing, general and administrative expense ) ) ) (.4 ) $ ) $ ) $ ) $ 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. Cash Flow Hedges Gains (losses), before taxes, recognized in “Accumulated other comprehensive loss” (effective portion) on derivatives related to cash flow hedge contracts were as follows: Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign exchange contracts $ $ ) $ ) $ ) Commodity contracts – (.2 ) (.4 ) .1 $ $ ) $ ) $ ) 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. The amount 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 was not material for the three and nine months ended September 30, 2017 and October 1, 2016, respectively. As of September 30, 2017, we expected a net loss of approximately $.1 million to be reclassified from “Accumulated other comprehensive loss” to earnings within the next 12 months. Net Investment Hedge In March 2017, we designated our €500 million of euro-denominated 1.25% senior notes due 2025 as a net investment hedge of our investment in foreign operations. The net assets from the investment in foreign operations were greater than the senior notes, and as such, the net investment hedge was effective. Refer to Note 5, “Debt,” for further information about our euro-denominated debt. Gain (loss), before tax, recognized in “Accumulated other comprehensive loss” (effective portion) related to the net investment hedge was as follows: Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign currency denominated debt $ ) $ n/a $ ) $ n/a We recorded no ineffectiveness from our net investment hedge in earnings during the three or nine months ended September 30, 2017.

Taxes Based on Income

Taxes Based on Income	9 Months Ended
	Sep. 30, 2017
Taxes Based on Income
Taxes Based on Income	Note 11. Taxes Based on Income The following table summarizes our income before taxes, provision for income taxes, and effective tax rate: Three Months Ended Nine Months Ended (Dollars in millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Income before taxes $ $ $ $ Provision for income taxes Effective tax rate % % % % The effective tax rate for the three and nine months ended September 30, 2017 included $1.7 million and $3.2 million, respectively, of tax benefit from the releases of valuation allowances on certain U.S. state deferred tax assets and $1.1 million and $4.5 million, respectively, of tax benefit from the effective settlements of certain tax examinations and changes in our judgment about tax filing positions as a result of new information. The effective tax rate for the nine months ended September 30, 2017 included $4.6 million of tax benefit from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years. The effective tax rate for the three and nine months ended September 30, 2017 also included a net benefit of $.3 million and $13.6 million, respectively, related to our adoption of the accounting guidance update related to stock-based payments described in Note 1, “General.” The accounting guidance update related to stock-based payments requires that the effect of excess tax benefits associated with stock-based payments be recognized in the income statement instead of in capital in excess of par value as was the case prior to our adoption of this update. Excess tax benefits are the effects of tax deductions in excess of compensation expenses recognized for financial accounting purposes. These benefits related to stock-based awards are generally generated as a result of stock price appreciation during the vesting period or between the time of grant and the time of exercise. We expect future excess tax benefits pursuant to this update to vary depending on our stock-based payments in future reporting periods. These excess tax benefits may cause variability in our future effective tax rate as they can fluctuate based on vesting and exercise activity, as well as our future stock price. The tax effect of the tax deductions in excess of compensation cost related to the exercise of nonqualified stock options and vesting of other stock-based compensation awards recognized in capital in excess of par value was $2.9 million and $10.0 million for the three and nine months ended October 1, 2016, respectively. The effective tax rate for the three and nine months ended September 30, 2017 also included the immediate recognition of $1.6 million of tax expense primarily from intra-entity sales and transfers of assets other than inventory related to the integration of a recent acquisition. The remaining tax effects were recognized as deferred tax charges and recorded in “Other current assets” and “Other assets.” However, we expect the deferred tax charges to be derecognized as an adjustment to retained earnings upon adoption of the accounting guidance update described in Note 17, “Recent Accounting Requirements.” In addition, the effective tax rate for the three and nine months ended September 30, 2017 compared to the same period last year reflects a decrease in tax expense related to the repatriation of non-permanently reinvested earnings of certain foreign subsidiaries and favorable changes in the geographic mix of our income before taxes. The effective tax rate for the three and nine months ended October 1, 2016 included $4.8 million and $3.1 million of tax expense, respectively, resulting from return to provision adjustments pursuant to the completion of the 2015 U.S. federal tax return; $1 million and $7.1 million of tax benefit, respectively, from our change in judgment about tax filing positions in certain foreign jurisdictions as a result of new information gained from our interactions with tax authorities; and $17.7 million and $26.9 million of tax expense, respectively, associated with the tax cost to repatriate non-permanently reinvested earnings of certain foreign subsidiaries. The effective tax rate for each of the three and nine months ended October 1, 2016 also included $11.1 million of tax benefit resulting from effective settlements of tax examinations in various foreign jurisdictions. Included in the $11.1 million of tax benefit was an effective settlement for certain members of a consolidated tax group under examination. Additionally, the effective tax rate for the nine months ended October 1, 2016 included $6.7 million of tax benefit from the releases of valuation allowances against certain deferred tax assets in a foreign jurisdiction associated with a structural simplification approved by the tax authority and $3.3 million of tax benefit due to decreases in certain tax reserves as a result of closing tax years. 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 $23 million, primarily as a result of audit settlements and closing tax years.

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended (In millions, except per share amounts) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (A) Net income available to common shareholders $ $ $ $ (B) Weighted average number of common shares outstanding Dilutive shares (additional common shares issuable under stock-based awards) (1) (C) Weighted average number of common shares outstanding, assuming dilution Net income per common share (A) ÷ (B) $ $ $ $ Net income per common share, assuming dilution (A) ÷ (C) $ $ .98 $ $ (1) In 2017, the dilutive shares calculation reflects the impact of our adoption of the accounting guidance update described in Note 1, “General.” 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 for the nine months ended September 30, 2017, and approximately .1 million shares and .2 million shares for the three and nine months ended October 1, 2016, respectively. No stock-based compensation awards were anti-dilutive for the three months ended September 30, 2017.

Comprehensive Income

Comprehensive Income	9 Months Ended
	Sep. 30, 2017
Comprehensive Income
Comprehensive Income	Note 13. Comprehensive Income The changes in “Accumulated other comprehensive loss” (net of tax) for the nine-month period ended September 30, 2017 were as follows: (In millions) Foreign Pension and Cash Flow Total Balance as of December 31, 2016 $ ) $ ) $ $ ) Other comprehensive income (loss) before reclassifications, net of tax – ) Reclassifications to net income, net of tax – Net current-period other comprehensive income (loss), net of tax ) Balance as of September 30, 2017 $ ) $ ) $ (.1 ) $ ) The changes in “Accumulated other comprehensive loss” (net of tax) for the nine-month period ended October 1, 2016 were as follows: (In millions) Foreign Pension and Cash Flow Total Balance as of January 2, 2016 $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications, net of tax ) ) ) Reclassifications to net income, net of tax – Net current-period other comprehensive income (loss), net of tax ) (.2 ) Balance as of October 1, 2016 $ ) $ ) $ ) $ ) The amounts reclassified from “Accumulated other comprehensive loss” to increase (decrease) net income were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Affected Line Item Cash flow hedges: Foreign exchange contracts $ $ ) $ .1 $ ) Cost of products sold Commodity contracts – – .2 (.6 ) Cost of products sold Interest rate contracts – (.1 ) ) (.1 ) Interest expense ) ) ) Total before tax (.3 ) .4 .5 .8 Provision for income taxes .7 (.9 ) ) ) Net of tax Pension and other postretirement benefits (1) ) ) ) ) Provision for income taxes ) ) ) ) Net of tax Total reclassifications for the period $ ) $ ) $ ) $ ) Total, net of tax (1) See Note 6, “Pension and Other Postretirement Benefits,” for more information.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Fair Value Measurements	Note 14. Fair Value Measurements Recurring Fair Value Measurements The following table shows the assets and liabilities carried at fair value, measured on a recurring basis, as of September 30, 2017: Fair Value Measurements Using (In millions) Total Quoted Prices in Significant Other (Level 2) Significant Other Assets Trading securities $ $ $ $ – Derivative assets – – Bank drafts – – Liabilities Derivative liabilities $ $ – $ $ – The following table shows the assets and liabilities carried at fair value, measured on a recurring basis, as of December 31, 2016: Fair Value Measurements Using (In millions) Total Quoted Prices in Significant Other Significant Other Assets Trading securities $ $ $ $ – Derivative assets .6 – Bank drafts – – Liabilities Derivative liabilities $ $ – $ $ – 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 September 30, 2017, trading securities of $1.1 million and $21.5 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the unaudited Condensed Consolidated Balance Sheets. As of December 31, 2016, trading securities of $.5 million and $17.6 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) are valued at face value due to their short-term nature and are included in “Other current assets” in the unaudited Condensed Consolidated Balance Sheets.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
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. 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 liabilities be incurred that were not previously accrued. Potential insurance reimbursements are not offset against these liabilities. 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. 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 Expenditures Environmental expenditures are generally expensed. However, environmental expenditures for newly acquired assets and those which 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. We review our estimates of the costs of complying with environmental laws related to remediation and cleanup of various sites, including sites in which governmental agencies have designated us as a potentially responsible party (“PRP”). 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. Potential insurance reimbursements are not offset against these liabilities. As of September 30, 2017, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or other responsible state agencies as a PRP at thirteen 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 negotiate 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, 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 nine months ended September 30, 2017 related to our environmental liabilities was as follows: (In millions) Balance at December 31, 2016 $ Acquisitions Charges (reversals), net Payments ) Balance at September 30, 2017 $ Approximately $8 million of the balance was classified as short-term and included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets as of both September 30, 2017 and December 31, 2016.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Information
Segment Information	Note 16. Segment Information Financial information by reportable segment is set forth below: Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Net sales to unaffiliated customers Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials Net sales to unaffiliated customers $ $ $ $ Intersegment sales Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions .7 .6 Industrial and Healthcare Materials Intersegment sales $ $ $ $ Income before taxes Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials Corporate expense ) ) ) ) Interest expense ) ) ) ) Income before taxes $ $ $ $ Other expense, net by reportable segment Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials .2 .4 .9 Corporate – – – Other expense, net $ $ $ $ Other expense, net by type Restructuring charges: Severance and related costs $ $ $ $ Asset impairment charges and lease cancellation costs .7 Other items: Transaction costs .3 Loss from settlement of pension obligations – – – Loss on sale of asset – – – .3 Other expense, net $ $ $ $

Recent Accounting Requirements

Recent Accounting Requirements	9 Months Ended
	Sep. 30, 2017
Recent Accounting Requirements
Recent Accounting Requirements	Note 17. Recent Accounting Requirements In August 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements, as well as to simplify the application of hedge accounting. The amended presentation and disclosure guidance is required prospectively. The guidance will be effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We are currently assessing the impact of this guidance on our financial position, results of operations, cash flows, and disclosures. In May 2017, the FASB issued amended guidance that provides clarity on which changes to share-based awards are considered substantive and require modification accounting to be applied. This guidance will be effective for interim and annual periods beginning after December 15, 2017. We do not regularly modify the terms and conditions of share-based awards and do not believe adoption of this amended guidance will have a significant effect on our financial position, results of operations, cash flows, and disclosures. In March 2017, the FASB issued guidance that requires employers with defined benefit plans to present only the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers are required to present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. Components other than the service cost component will not be eligible for capitalization in assets. Employers are required to apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively, while the guidance that limits the capitalization of net periodic benefit cost in assets to the service cost component must be applied prospectively. This guidance will be effective for interim and annual periods beginning after December 15, 2017. The other components of net periodic pension cost totaled approximately $13 million and $53 million for the nine months ended September 30, 2017 and October 1, 2016, respectively. The amount in 2016 included a recognized loss on settlement of approximately $41 million. We continue to assess the impact of this guidance on the presentation of our results of operations and disclosures. In January 2017, the FASB issued amended guidance that simplifies the subsequent measurement of goodwill. This amended guidance eliminates step two of the goodwill impairment test, so that a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. We adopted this guidance in the third quarter of 2017. This adoption did not have a significant impact on our financial position, results of operations, cash flows, or disclosures. In October 2016, the FASB issued guidance that requires companies to recognize the income tax effects of intra-entity sales and transfers of assets other than inventory in the period in which they occur. This guidance will be effective for fiscal years and interim periods beginning after December 15, 2017. The guidance requires modified retrospective adoption. Upon adoption, we expect to derecognize tax-related deferred charges and recognize deferred taxes related to certain intra-entity asset transfers as a net reduction to retained earnings. We do not believe adoption of this guidance will have a significant effect on our financial position, results of operations, cash flows, and disclosures. In March 2016, the FASB issued guidance on accounting for leases that requires lessees to recognize the rights and obligations created by leases on their balance sheets. This guidance, which will be effective for interim and annual periods beginning after December 15, 2018, also requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. Early adoption is permitted. We expect to adopt this guidance as of the effective date. A modified retrospective approach is required for adoption with respect to all leases that exist at or commence after the date of initial application, with an option to use certain practical expedients. While we are currently assessing the impact of this guidance on our financial position, results of operations, cash flows, and disclosures, we expect its adoption to have a significant impact on our financial position and disclosures. In May 2014, and in subsequent updates, 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 requires 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 revised guidance 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, 2017, and interim periods within those fiscal years, and can be applied retrospectively either to each prior reporting period presented (“full retrospective”) or with the cumulative effect of adoption recognized at the date of initial application (“modified retrospective”). We expect to adopt this revised guidance under the modified retrospective approach in the first quarter of 2018. We established a project plan and cross-functional team to manage the assessment, design, and implementation of this new guidance. Based on our assessment to date, we do not anticipate that the adoption of this revised guidance will have a significant impact on our financial position, results of operations, or cash flows. Upon adoption of this guidance, allowances for customer returns, currently presented as a reduction of trade accounts receivable, will be classified as a returns liability. The allowance for customer returns was $12.1 million and $10 million as of September 30, 2017 and December 31, 2016, respectively. Upon adoption, we do not expect the value of return assets to be significant. We are in the process of implementing appropriate changes to processes, policies, systems, and controls to support revenue recognition and disclosures in accordance with the revised guidance.

General (Policies)

General (Policies)	9 Months Ended
	Sep. 30, 2017
General
Fiscal Periods	Fiscal Periods The three and nine months ended September 30, 2017 and October 1, 2016 each consisted of thirteen-week and thirty-nine-week periods, respectively.
Accounting Guidance Update	Accounting Guidance Update In the first quarter of 2017, we adopted an accounting guidance update that simplifies several aspects of the accounting for stock-based payment transactions. As a result of adopting this update, beginning in the first quarter of 2017, (i) the tax effects related to stock-based payments at settlement or expiration were recognized through the income statement, a change from the previous requirement that certain tax effects be recognized in capital in excess of par value, and, as required by this guidance, this change was applied prospectively, and (ii) all tax-related cash flows resulting from stock-based payments were reported as operating activities on the statements of cash flows, a change from the previous requirement to present excess tax benefits as an inflow from financing activities and an outflow from operating activities, and, as permitted by this update, prior periods were not retrospectively adjusted. Refer to Note 8, “Long-Term Incentive Compensation and Supplemental Equity Information,” and Note 11, “Taxes Based on Income,” for further information.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventories
Net inventories	(In millions) September 30, 2017 December 31, 2016 Raw materials $ $ Work-in-progress Finished goods Inventories, net $ $

Goodwill and Other Intangible26

Goodwill and Other Intangibles Resulting from Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Other Intangibles Resulting from Business Acquisitions
Changes in net carrying amount of goodwill	(In millions) Label and Retail Branding Industrial and Total Goodwill as of December 31, 2016 $ $ $ $ 2017 Acquisitions (1) – Acquisition adjustments (2) – .7 Translation adjustments Goodwill as of September 30, 2017 $ $ $ $ (1) Goodwill acquired related to the acquisitions of Hanita, which is included in the Label and Graphic Materials reportable segment, and Finesse Medical and Yongle Tape, which are included in the Industrial and Healthcare Materials reportable segment. (2) Goodwill purchase price allocation adjustments related to the acquisition of the European business of Mactac completed in August 2016.
Summary of the preliminary amounts and weighted useful lives of finite-lived intangible assets	Amount (in millions) Weighted-average Customer relationships $ Patents and other acquired technology Trade names and trademarks

Pension and Other Postretirem27

Pension and Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2017
Pension and Other Postretirement Benefits
Schedule of components of net periodic benefit cost (credit)	Pension Benefits Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In millions) U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l Service cost $ .1 $ $ .1 $ $ .3 $ $ .3 $ Interest cost Actuarial loss .2 – .7 – – – Expected return on plan assets ) ) ) ) ) ) ) ) Recognized net actuarial loss Amortization of prior service cost (credit) .3 (.1 ) .3 – .7 (.3 ) .9 (.2 ) Recognized loss on settlements (1) – – – – – – – Net periodic benefit cost $ $ $ $ $ $ $ $ (1) In the second quarter of 2016, we recognized loss on settlements related to the Avery Dennison Pension Plan, our U.S. pension plan, as a result of lump-sum pension payments to eligible former employees who were vested participants in the plan. The loss on settlements was recorded in “Other expense, net” in the unaudited Condensed Consolidated Statements of Income. U.S. Postretirement Health Benefits Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Interest cost $ – $ – $ .1 $ .1 Recognized net actuarial loss .4 .5 Amortization of prior service credit (.9 ) (.9 ) ) ) Net periodic benefit credit $ (.5 ) $ (.4 ) $ ) $ )

Cost Reduction Actions (Tables)

Cost Reduction Actions (Tables)	9 Months Ended
	Sep. 30, 2017
Cost Reduction Actions
Restructuring charges and payments	(In millions) Accrual at Charges Cash Non-cash Foreign Accrual at 2015/2016 Actions Severance and related costs $ $ $ $ – $ .1 $ Lease cancellation costs .2 (.4) – – .9 Asset impairment charges – – ) – – Prior actions Severance and related costs (.7) (.7) – .1 – Total $ $ $ $ ) $ .2 $
Total amount of restructuring charges incurred by reportable segment and Corporate	Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Restructuring charges by reportable segment and Corporate Label and Graphic Materials $ $ .7 $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials – .4 .2 .9 Corporate – – – – Total $ $ $ $

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Financial Instruments
Fair value and balance sheet locations of derivatives	The following table shows the fair value and balance sheet locations of derivatives as of September 30, 2017: Asset Liability (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Other current assets $ Other current liabilities $ The following table shows the fair value and balance sheet locations of derivatives as of December 31, 2016: Asset Liability (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Other current assets $ Other current liabilities $ Commodity contracts Other current assets .5 Other current liabilities – Commodity contracts Other assets .1 $ $
Components of net gains (losses), before taxes, recognized in income related to fair value hedge contracts	Three Months Ended Nine Months Ended (In millions) Location of Net Gains September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign exchange contracts Cost of products sold $ (.1 ) $ (.2 ) $ ) $ Foreign exchange contracts Marketing, general and administrative expense ) ) ) (.4 ) $ ) $ ) $ ) $
Components of the gains (losses), before taxes, recognized in Accumulated other comprehensive loss related to cash flow hedge contracts	Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign exchange contracts $ $ ) $ ) $ ) Commodity contracts – (.2 ) (.4 ) .1 $ $ ) $ ) $ )
Components of gain (loss), before tax, recognized in Accumulated other comprehensive loss related to the net investment hedge	Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Foreign currency denominated debt $ ) $ n/a $ ) $ n/a

Taxes Based on Income (Tables)

Taxes Based on Income (Tables)	9 Months Ended
	Sep. 30, 2017
Taxes Based on Income
Income before taxes, provision for income taxes, and effective tax rate from continuing operations	Three Months Ended Nine Months Ended (Dollars in millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Income before taxes $ $ $ $ Provision for income taxes Effective tax rate % % % %

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Net Income Per Common Share
Schedule of net income per common share	Three Months Ended Nine Months Ended (In millions, except per share amounts) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (A) Net income available to common shareholders $ $ $ $ (B) Weighted average number of common shares outstanding Dilutive shares (additional common shares issuable under stock-based awards) (1) (C) Weighted average number of common shares outstanding, assuming dilution Net income per common share (A) ÷ (B) $ $ $ $ Net income per common share, assuming dilution (A) ÷ (C) $ $ .98 $ $ (1) In 2017, the dilutive shares calculation reflects the impact of our adoption of the accounting guidance update described in Note 1, “General.”

Comprehensive Income (Tables)

Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2017
Comprehensive Income
Schedule of changes in "Accumulated other comprehensive loss" (net of tax)	(In millions) Foreign Pension and Cash Flow Total Balance as of December 31, 2016 $ ) $ ) $ $ ) Other comprehensive income (loss) before reclassifications, net of tax – ) Reclassifications to net income, net of tax – Net current-period other comprehensive income (loss), net of tax ) Balance as of September 30, 2017 $ ) $ ) $ (.1 ) $ ) (In millions) Foreign Pension and Cash Flow Total Balance as of January 2, 2016 $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications, net of tax ) ) ) Reclassifications to net income, net of tax – Net current-period other comprehensive income (loss), net of tax ) (.2 ) Balance as of October 1, 2016 $ ) $ ) $ ) $ )
Schedule of amounts reclassified from "Accumulated other comprehensive loss" to increase (decrease) net income	Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Affected Line Item Cash flow hedges: Foreign exchange contracts $ $ ) $ .1 $ ) Cost of products sold Commodity contracts – – .2 (.6 ) Cost of products sold Interest rate contracts – (.1 ) ) (.1 ) Interest expense ) ) ) Total before tax (.3 ) .4 .5 .8 Provision for income taxes .7 (.9 ) ) ) Net of tax Pension and other postretirement benefits (1) ) ) ) ) Provision for income taxes ) ) ) ) Net of tax Total reclassifications for the period $ ) $ ) $ ) $ ) Total, net of tax (1) See Note 6, “Pension and Other Postretirement Benefits,” for more information.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Assets and liabilities carried at fair value, measured on a recurring basis	The following table shows the assets and liabilities carried at fair value, measured on a recurring basis, as of September 30, 2017: Fair Value Measurements Using (In millions) Total Quoted Prices in Significant Other (Level 2) Significant Other Assets Trading securities $ $ $ $ – Derivative assets – – Bank drafts – – Liabilities Derivative liabilities $ $ – $ $ – The following table shows the assets and liabilities carried at fair value, measured on a recurring basis, as of December 31, 2016: Fair Value Measurements Using (In millions) Total Quoted Prices in Significant Other Significant Other Assets Trading securities $ $ $ $ – Derivative assets .6 – Bank drafts – – Liabilities Derivative liabilities $ $ – $ $ –

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Costs of environmental liabilities with remediation	(In millions) Balance at December 31, 2016 $ Acquisitions Charges (reversals), net Payments ) Balance at September 30, 2017 $

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Information
Summary of financial information by reportable segment	Three Months Ended Nine Months Ended (In millions) September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 Net sales to unaffiliated customers Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials Net sales to unaffiliated customers $ $ $ $ Intersegment sales Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions .7 .6 Industrial and Healthcare Materials Intersegment sales $ $ $ $ Income before taxes Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials Corporate expense ) ) ) ) Interest expense ) ) ) ) Income before taxes $ $ $ $ Other expense, net by reportable segment Label and Graphic Materials $ $ $ $ Retail Branding and Information Solutions Industrial and Healthcare Materials .2 .4 .9 Corporate – – – Other expense, net $ $ $ $ Other expense, net by type Restructuring charges: Severance and related costs $ $ $ $ Asset impairment charges and lease cancellation costs .7 Other items: Transaction costs .3 Loss from settlement of pension obligations – – – Loss on sale of asset – – – .3 Other expense, net $ $ $ $

General (Details)

General (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
General
Length of fiscal period	91 days	91 days	273 days	273 days

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Sep. 30, 2017USD ($)
2017 Acquisitions
Acquisitions
Purchase price	$ 344
Additional earn-out payments related to acquired businesses' achievement of certain performance targets for 2017 and 2018 years	45
Accrued additional earn-out payments	38
Yongle Tape Acquisition
Acquisitions
Purchase consideration paid on achievement of certain pre-acquisition performance targets	$ 15

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventories
Raw materials	$ 222.1	$ 185
Work-in-progress	182.6	156.8
Finished goods	215.3	177.3
Inventories, net	$ 620	$ 519.1

Goodwill and Other Intangible39

Goodwill and Other Intangibles Resulting from Business Acquisitions (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	$ 793.6
2017 Acquisitions	135.6
Acquisition adjustments	5.7
Translation adjustments	42.2
Goodwill, Ending Balance	977.1
2017 Acquisitions
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 111
2017 Acquisitions | Significant Other Unobservable Inputs (Level 3) | Minimum
Finite Lived Intangible Assets Acquired
Discount rate used to value the intangibles	10.00%
2017 Acquisitions | Significant Other Unobservable Inputs (Level 3) | Maximum
Finite Lived Intangible Assets Acquired
Discount rate used to value the intangibles	16.00%
Customer relationships
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 74.3
Weighted-average amortization period (in years)	15 years
Patents and other acquired technology
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 32.2
Weighted-average amortization period (in years)	9 years
Trade names and trademarks
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 4.2
Weighted-average amortization period (in years)	6 years
Label and Graphic Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	$ 373.3
2017 Acquisitions	20.8
Acquisition adjustments	5
Translation adjustments	35.6
Goodwill, Ending Balance	434.7
Retail Branding and Information Solutions
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	353.9
Translation adjustments	2.7
Goodwill, Ending Balance	356.6
Cumulative impairment losses	820	$ 820
Industrial and Healthcare Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	66.4
2017 Acquisitions	114.8
Acquisition adjustments	0.7
Translation adjustments	3.9
Goodwill, Ending Balance	$ 185.8

Debt (Details)

Debt (Details) € in Millions, $ in Millions	Oct. 02, 2017USD ($)	Mar. 31, 2017EUR (€)	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Debt and Capital Leases
Fair value of debt				$ 1,700	$ 1,310
Revolving credit facility
Debt and Capital Leases
Maximum borrowing capacity				$ 700
Covenants compliance				we were in compliance with our financial covenants	we were in compliance with our financial covenants
Senior notes due March 2025 at 1.25%
Debt and Capital Leases
Senior notes issued | €		€ 500
Interest rate of senior notes (as a percent)		1.25%
Proceeds, net of underwriting discounts and offering expenses		€ 495.5	$ 526.6
Senior notes due October 2017 at 6.6%
Debt and Capital Leases
Repayment of senior notes	$ 250

Pension and Other Postretirem41

Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Components of net periodic benefit cost (credit)
Recognized loss on settlements				$ 41.4
U.S.
Components of net periodic benefit cost (credit)
Service cost	$ 0.1	$ 0.1	$ 0.3	0.3
Interest cost	8.1	8.1	26.2	26.4
Actuarial loss	0.2	0.7	1.1	2.4
Expected return on plan assets	(10.1)	(10.4)	(30.4)	(32.3)
Recognized net actuarial loss	4.7	4.9	14.1	14.1
Amortization of prior service cost (credit)	0.3	0.3	0.7	0.9
Recognized loss on settlements				41.4
Net periodic benefit cost (credit)	3.3	3.7	12	53.2
Int'l
Components of net periodic benefit cost (credit)
Service cost	4.6	3.5	13.4	10.4
Interest cost	3.7	4.1	10.6	12.4
Expected return on plan assets	(5.4)	(5.4)	(15.6)	(16.1)
Recognized net actuarial loss	2.8	1.7	8	5.3
Amortization of prior service cost (credit)	(0.1)		(0.3)	(0.2)
Net periodic benefit cost (credit)	5.6	3.9	16.1	11.8
U.S. Postretirement Health Benefits
Components of net periodic benefit cost (credit)
Interest cost			0.1	0.1
Recognized net actuarial loss	0.4	0.5	1.1	1.3
Amortization of prior service cost (credit)	(0.9)	(0.9)	(2.5)	(2.5)
Net periodic benefit cost (credit)	$ (0.5)	$ (0.4)	$ (1.3)	$ (1.1)

Research and Development (Detai

Research and Development (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Marketing, general and administrative expense
Research and development expense	$ 23.6	$ 22.4	$ 70	$ 67.4

Long-Term Incentive Compensat43

Long-Term Incentive Compensation and Supplemental Equity Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Supplemental Equity Information
Share repurchase authorized amount	$ 650
Marketing, general and administrative expense
Long-Term Incentive Compensation
Stock-based compensation expense		$ 9	$ 6	$ 22.2	$ 20.1
Cash-based awards compensation expense
Cash-based awards compensation expense		7.8	$ 7	24.6	$ 21.7
Stock-based awards
Long-Term Incentive Compensation
Unrecognized compensation cost related to share based compensation cost		$ 46		$ 46
Unrecognized compensation cost weighted average recognition period				2 years
2017 Plan
Long-Term Incentive Compensation
Aggregate number of shares available under the plan	5,400,000
Fungible share ratio	1.5

Cost Reduction Actions (Details

Cost Reduction Actions (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)item
Restructuring charges:
Charges (Reversals), net	$ 23.8
2015/2016 Actions
Restructuring charges:
Charges (Reversals), net	$ 24.4
Number of positions reduced as a result of Cost Reduction Actions | item	670

Cost Reduction Actions - Restru

Cost Reduction Actions - Restructuring Charges and Payments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Cost Reduction Actions
Beginning Balance			$ 4.8
Charges (Reversals), net			23.8
Cash Payments			(23.6)
Non-cash Impairment			(1)
Foreign Currency Translation			0.2
Ending Balance	$ 4.2		4.2
Severance and related costs
Cost Reduction Actions
Charges (Reversals), net	8.7	$ 1.9	21.7	$ 10.7
2015/2016 Actions
Cost Reduction Actions
Charges (Reversals), net			24.4
2015/2016 Actions | Severance and related costs
Cost Reduction Actions
Beginning Balance			3.3
Charges (Reversals), net			22.4
Cash Payments			(22.5)
Foreign Currency Translation			0.1
Ending Balance	3.3		3.3
2015/2016 Actions | Lease cancellation costs
Cost Reduction Actions
Beginning Balance			0.2
Charges (Reversals), net			1.1
Cash Payments			(0.4)
Ending Balance	$ 0.9		0.9
2015/2016 Actions | Asset impairment charges
Cost Reduction Actions
Charges (Reversals), net			1
Non-cash Impairment			(1)
Prior actions | Severance and related costs
Cost Reduction Actions
Beginning Balance			1.3
Charges (Reversals), net			(0.7)
Cash Payments			(0.7)
Foreign Currency Translation			$ 0.1

Cost Reduction Actions - Report

Cost Reduction Actions - Reportable Segment and Corporate (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Restructuring charges:
Restructuring charges			$ 23.8
Other expense, net
Restructuring charges:
Restructuring charges	$ 10.5	$ 2.6	23.8	$ 14.6
Label and Graphic Materials | Other expense, net
Restructuring charges:
Restructuring charges	3.1	0.7	9.9	7.3
Retail Branding and Information Solutions | Other expense, net
Restructuring charges:
Restructuring charges	$ 7.4	1.5	13.7	6.4
Industrial and Healthcare Materials | Other expense, net
Restructuring charges:
Restructuring charges		$ 0.4	$ 0.2	$ 0.9

Financial Instruments (Details)

Financial Instruments (Details) - Cash Flow Hedging $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Financial Instruments
Maximum length of time hedged in cash flow hedge	36 months
Cash flow net loss to be reclassified within the next 12 months	$ 0.1
Commodity contracts
Financial Instruments
Notional amount	4.4
Foreign exchange contracts
Financial Instruments
Notional amount	$ 1,840

Financial Instruments - Fair Va

Financial Instruments - Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value
Asset		$ 5.2
Liability		7.8
Foreign exchange contracts | Other current assets
Derivatives, Fair Value
Asset	$ 5.7	4.6
Foreign exchange contracts | Other current liabilities
Derivatives, Fair Value
Liability	$ 3	7.8
Commodity contracts | Other current assets
Derivatives, Fair Value
Asset		0.5
Commodity contracts | Other assets
Derivatives, Fair Value
Asset		$ 0.1

Financial Instruments - Net Gai

Financial Instruments - Net Gains (Losses), before Taxes Recognized in Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Fair Value Hedges
Gain (loss) in income	$ (19)	$ (3)	$ (42.7)	$ 1.1
Foreign exchange contracts | Cost of products sold
Fair Value Hedges
Gain (loss) in income	(0.1)	(0.2)	(1.1)	1.5
Foreign exchange contracts | Marketing, general and administrative expense
Fair Value Hedges
Gain (loss) in income	$ (18.9)	$ (2.8)	$ (41.6)	$ (0.4)

Financial Instruments - Gains (

Financial Instruments - Gains (Losses), before Taxes, Recognized in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Derivative Instruments, Gains (Losses)
Gains (losses) recognized in accumulated other comprehensive loss	$ 1.3	$ (1.5)	$ (2.6)	$ (3)
Foreign exchange contracts
Derivative Instruments, Gains (Losses)
Gains (losses) recognized in accumulated other comprehensive loss	$ 1.3	(1.3)	(2.2)	(3.1)
Commodity contracts
Derivative Instruments, Gains (Losses)
Gains (losses) recognized in accumulated other comprehensive loss		$ (0.2)	$ (0.4)	$ 0.1

Financial Instruments - Net Inv

Financial Instruments - Net Investment Hedge (Details) € in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)	Mar. 31, 2017EUR (€)
Derivative Instruments, Gains (Losses)
Amount of ineffectiveness from net investment hedge in earnings | $	$ 0	$ 0
Senior notes due March 2025 at 1.25%
Derivative Instruments, Gains (Losses)
Senior notes issued | €			€ 500
Interest rate of senior notes (as a percent)			1.25%
Net Investment Hedge | Designated
Derivative Instruments, Gains (Losses)
Foreign currency denominated debt | $	$ (22.7)	$ (60.4)
Net Investment Hedge | Designated | Senior notes due March 2025 at 1.25%
Derivative Instruments, Gains (Losses)
Senior notes issued | €			€ 500
Interest rate of senior notes (as a percent)			1.25%

Taxes Based on Income (Details)

Taxes Based on Income (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Taxes Based on Income
Income before taxes		$ 146.8	$ 128	$ 432.2	$ 350.8
Provision for income taxes		$ 38.5	$ 38.9	$ 90.8	$ 92.1
Effective tax rate (as a percent)		26.20%	30.40%	21.00%	26.30%
Tax benefit from releases of valuation allowances on certain U.S. state deferred tax assets		$ 1.7		$ 3.2
Tax benefit from the effective settlements of certain tax examinations and changes in our judgment about tax filing positions as a result of new information		1.1		4.5
Tax benefit from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years				4.6
Net benefit related to the adoption of an accounting guidance update related to stock-based payments		0.3		13.6
Tax effect of the tax deductions in excess of compensation cost related to the exercise of nonqualified stock options and vesting of other stock-based compensation awards recognized in capital in excess of par value			$ 2.9		$ 10
Tax expense primarily from intra-entity sales and transfers of assets other than inventory related to the integration of a recent acquisition	$ 1.6			1.6
Tax expenses resulting from return-to-provision adjustments pursuant to the completion of 2015 U.S federal tax return			4.8		3.1
Tax benefit from our change in judgment about tax filing positions in certain foreign jurisdictions as a result of new information gained from our interactions with tax authorities			1		7.1
Tax expense associated with the tax cost to repatriate non-permanently reinvested earnings of certain foreign subsidiaries			17.7		26.9
Tax benefit resulting from effective settlements of tax examinations in various foreign jurisdictions			11.1		11.1
Tax benefit from an effective settlement for certain members of a consolidated tax group under examination			$ 11.1		11.1
Tax benefit from the releases of valuation allowances against certain deferred tax assets in a foreign jurisdiction associated with a structural simplification approved by the tax authority					6.7
Tax benefit due to decreases in certain tax reserves as a result of closing tax years					$ 3.3
Reasonably possible decrease in uncertain tax positions, including interest and penalties, primarily as a result of audit settlements and closing tax years during the next 12 months	$ 23	$ 23		$ 23

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Net Income Per Common Share
Net income available to common shareholders	$ 108.3	$ 89.1	$ 341.4	$ 258.7
Weighted average number of common shares outstanding	88.3	89.1	88.4	89.2
Dilutive shares (additional common shares issuable under stock-based awards)	1.6	1.5	1.7	1.7
Weighted average number of common shares outstanding, assuming dilution	89.9	90.6	90.1	90.9
Net income per common share (in dollars per share)	$ 1.23	$ 1	$ 3.86	$ 2.90
Net income per common share, assuming dilution (in dollars per share)	$ 1.20	$ 0.98	$ 3.79	$ 2.85
Stock-based compensation awards excluded from the computation of net income per common share, assuming dilution	0	0.1	0.1	0.2

Comprehensive Income - Changes

Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Changes in Accumulated other comprehensive loss (net of tax)
Balance at beginning of the period			$ (751.9)	$ (683)
Other comprehensive income (loss) before reclassifications, net of tax			37.2	(27.8)
Reclassifications to net income, net of tax			15.6	41.8
Net current-period other comprehensive income (loss), net of tax	$ 17.3	$ 19.8	52.8	14
Balance at end of the period	(699.1)	(669)	(699.1)	(669)
Foreign Currency Translation
Changes in Accumulated other comprehensive loss (net of tax)
Balance at beginning of the period			(212.6)	(158.9)
Other comprehensive income (loss) before reclassifications, net of tax			39.3	21.1
Net current-period other comprehensive income (loss), net of tax			39.3	21.1
Balance at end of the period	(173.3)	(137.8)	(173.3)	(137.8)
Pension and Other Postretirement Benefits
Changes in Accumulated other comprehensive loss (net of tax)
Balance at beginning of the period			(540.3)	(521.6)
Other comprehensive income (loss) before reclassifications, net of tax				(46.7)
Reclassifications to net income, net of tax			14.6	39.8
Net current-period other comprehensive income (loss), net of tax			14.6	(6.9)
Balance at end of the period	(525.7)	(528.5)	(525.7)	(528.5)
Cash Flow Hedges
Changes in Accumulated other comprehensive loss (net of tax)
Balance at beginning of the period			1	(2.5)
Other comprehensive income (loss) before reclassifications, net of tax			(2.1)	(2.2)
Reclassifications to net income, net of tax			1	2
Net current-period other comprehensive income (loss), net of tax			(1.1)	(0.2)
Balance at end of the period	$ (0.1)	$ (2.7)	$ (0.1)	$ (2.7)

Comprehensive Income - Reclassi

Comprehensive Income - Reclassified from AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold	$ (1,227.9)	$ (1,091.1)	$ (3,531.9)	$ (3,261.4)
Interest expense	(16.8)	(14.7)	(49.7)	(45.4)
Income before taxes	146.8	128	432.2	350.8
Provision for income taxes	(38.5)	(38.9)	(90.8)	(92.1)
Net income	108.3	89.1	341.4	258.7
Amounts Reclassified from Accumulated Other Comprehensive Loss
Amounts reclassified from Accumulated other comprehensive loss
Net income	(4.3)	(5.3)	(15.6)	(41.8)
Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss
Amounts reclassified from Accumulated other comprehensive loss
Income before taxes	1	(1.3)	(1.5)	(2.8)
Provision for income taxes	(0.3)	0.4	0.5	0.8
Net income	0.7	(0.9)	(1)	(2)
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	(1.2)	0.1	(2.1)
Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss | Commodity contracts
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold			0.2	(0.6)
Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss | Interest rate contracts
Amounts reclassified from Accumulated other comprehensive loss
Interest expense		(0.1)	(1.8)	(0.1)
Pension and Other Postretirement Benefits | Amounts Reclassified from Accumulated Other Comprehensive Loss
Amounts reclassified from Accumulated other comprehensive loss
Pension and other postretirement benefits	(7.2)	(6.5)	(21.1)	(60.3)
Provision for income taxes	2.2	2.1	6.5	20.5
Net income	$ (5)	$ (4.4)	$ (14.6)	$ (39.8)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets
Derivative assets		$ 5.2
Liabilities
Derivative liabilities		7.8
Recurring
Assets
Trading securities	$ 22.6	18.1
Derivative assets	5.7	5.2
Bank drafts	13.4	14.3
Liabilities
Derivative liabilities	3	7.8
Recurring | Cash and Cash Equivalents
Assets
Trading securities	1.1	0.5
Recurring | Other current assets
Assets
Trading securities	21.5	17.6
Quoted Prices in Active Markets (Level 1) | Recurring
Assets
Trading securities	14.2	11.7
Derivative assets		0.6
Bank drafts	13.4	14.3
Significant Other Observable Inputs (Level 2) | Recurring
Assets
Trading securities	8.4	6.4
Derivative assets	5.7	4.6
Liabilities
Derivative liabilities	$ 3	$ 7.8

Commitments and Contingencies57

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)item	Dec. 31, 2016USD ($)
Environmental
Environmental site contingency number of sites | item	13
Activity related to environmental liabilities
Balance at beginning of period	$ 21.3
Acquisitions	3.1
Charges (reversals), net	3.1
Payments	(4.7)
Balance at end of period	22.8
Short term environmental liabilities	$ 8	$ 8

Segment Information - Sales (De

Segment Information - Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Segment Information
Net sales	$ 1,679.5	$ 1,508.7	$ 4,878.5	$ 4,535.7
Interest expense	(16.8)	(14.7)	(49.7)	(45.4)
Income before taxes	146.8	128	432.2	350.8
Other expense, net	10.8	4.6	27.5	60.4
Intersegment
Segment Information
Net sales	19	18.8	55.5	57.6
Label and Graphic Materials | Operating segments
Segment Information
Net sales	1,137.3	1,046.3	3,350	3,123.5
Income before taxes	145.5	130.7	429.3	395.6
Other expense, net	3.2	2.7	10.4	11
Label and Graphic Materials | Intersegment
Segment Information
Net sales	16.2	16.6	47.9	49.3
Retail Branding and Information Solutions | Operating segments
Segment Information
Net sales	373.8	351.5	1,115.7	1,069.5
Income before taxes	25.3	23.2	80.1	67.8
Other expense, net	7.4	1.5	14	7.1
Retail Branding and Information Solutions | Intersegment
Segment Information
Net sales	0.7	0.6	2.3	2.3
Industrial and Healthcare Materials | Operating segments
Segment Information
Net sales	168.4	110.9	412.8	342.7
Income before taxes	13.8	12.3	37.6	44.8
Other expense, net	0.2	0.4	3.1	0.9
Industrial and Healthcare Materials | Intersegment
Segment Information
Net sales	2.1	1.6	5.3	6
Corporate
Segment Information
Income before taxes	$ (21)	$ (23.5)	$ (65.1)	(112)
Other expense, net				$ 41.4

Segment Information - Expense (

Segment Information - Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Restructuring charges:
Restructuring charges			$ 23.8
Other items:
Transaction costs	$ 0.3	$ 2	3.7	$ 4.1
Loss from settlement of pension obligations				41.4
Loss on sale of asset				0.3
Other expense, net	10.8	4.6	27.5	60.4
Severance and related costs
Restructuring charges:
Restructuring charges	8.7	1.9	21.7	10.7
Asset impairment charges and lease cancellation costs
Restructuring charges:
Restructuring charges	$ 1.8	$ 0.7	$ 2.1	$ 3.9

Recent Accounting Requirements

Recent Accounting Requirements (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Dec. 31, 2016
Recent Accounting Requirements
Recognized loss on settlements		$ 41.4
Accounting Standards Update 2017-07
Recent Accounting Requirements
Net periodic pension cost	$ 13	53
Recognized loss on settlements		$ 41
Accounting Standards Update 2014-09
Recent Accounting Requirements
Allowance for customer returns	$ 12.1		$ 10