0001193125-21-055146 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Jan. 02, 2021	Jan. 30, 2021	Jun. 27, 2020
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 02, 2021
Document Transition Report	false
Entity File Number	1-7685
Entity Registrant Name	AVERY DENNISON CORPORATION
Entity Central Index Key	0000008818
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-1492269
Entity Address, City or Town	Glendale
Entity Address, State or Province	CA
Entity Address, Address Line One	207 Goode Avenue
City Area Code	626
Local Phone Number	304-2000
Entity Address, Postal Zip Code	91203
Current Fiscal Year End Date	--01-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 9.1
Entity Common Stock, Shares Outstanding		83,044,019
ICFR Auditor Attestation Flag	true
Common stock, $1 par value
Document Information [Line Items]
Security Exchange Name	NYSE
Title of 12(b) Security	Common stock, $1 par value
Trading Symbol	AVY
Senior notes due 2025 at 1.25%
Document Information [Line Items]
Security Exchange Name	NASDAQ
Title of 12(b) Security	1.25% Senior Notes due 2025
Trading Symbol	AVY25

Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 252.3	$ 253.7
Trade accounts receivable, less allowances of $44.6 and $27.1 at year-end 2020 and 2019, respectively	1,235.2	1,212.2
Inventories, net	717.2	663.0
Other current assets	211.5	211.7
Total current assets	2,416.2	2,340.6
Property, plant and equipment, net	1,343.7	1,210.7
Goodwill	1,136.4	930.8
Other intangibles resulting from business acquisitions, net	224.9	126.5
Deferred tax assets	197.7	225.4
Other assets	765.0	654.8
Total assets	6,083.9	5,488.8
Current liabilities:
Short-term borrowings and current portion of long-term debt and finance leases	64.7	440.2
Accounts payable	1,050.9	1,066.1
Accrued payroll and employee benefits	239.0	220.4
Accrued trade rebates	140.2	132.4
Income taxes payable	86.3	71.4
Other current liabilities	344.9	323.3
Total current liabilities	1,926.0	2,253.8
Long-term debt and finance leases	2,052.1	1,499.3
Long-term retirement benefits and other liabilities	503.6	421.4
Deferred tax liabilities and income taxes payable	117.3	110.3
Commitments and contingencies (see Notes 7 and 8)
Shareholders' equity:
Common stock, $1 par value per share, authorized – 400,000,000 shares at year-end 2020 and 2019; issued – 124,126,624 shares at year-end 2020 and 2019; outstanding – 83,151,174 and 83,366,840 shares at year-end 2020 and 2019, respectively	124.1	124.1
Capital in excess of par value	862.1	874.0
Retained earnings	3,349.3	2,979.1
Treasury stock at cost, 40,975,450 and 40,759,784 shares at year-end 2020 and 2019, respectively	(2,501.0)	(2,425.1)
Accumulated other comprehensive loss	(349.6)	(348.1)
Total shareholders' equity	1,484.9	1,204.0
Total liabilities and shareholders' equity	$ 6,083.9	$ 5,488.8

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Consolidated Balance Sheets
Trade accounts receivable, allowances (in dollars)	$ 44.6	$ 27.1
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	83,151,174	83,366,840
Treasury stock, shares	40,975,450	40,759,784

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Statement [Abstract]
Net sales	$ 6,971.5	$ 7,070.1	$ 7,159.0
Cost of products sold	5,048.2	5,166.0	5,243.5
Gross profit	1,923.3	1,904.1	1,915.5
Marketing, general and administrative expense	1,060.5	1,080.4	1,127.5
Other expense (income), net	53.6	53.2	69.9
Interest expense	70.0	75.8	58.5
Other non-operating expense (income), net	1.9	445.2	104.8
Income before taxes	737.3	249.5	554.8
Provision for (benefit from) income taxes	177.7	(56.7)	85.4
Equity method investment (losses) gains	(3.7)	(2.6)	(2.0)
Net income	$ 555.9	$ 303.6	$ 467.4
Per share amounts:
Net income per common share (in dollars per share)	$ 6.67	$ 3.61	$ 5.35
Net income per common share, assuming dilution (in dollars per share)	$ 6.61	$ 3.57	$ 5.28
Weighted average number of shares outstanding:
Common shares (in shares)	83.4	84.0	87.3
Common shares, assuming dilution (in shares)	84.1	85.0	88.6

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 555.9	$ 303.6	$ 467.4
Foreign currency translation:
Translation gain (loss)	(3.0)	2.3	(91.2)
Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior service cost/credit	6.2	66.4	(4.1)
Reclassifications to net income	2.9	266.1	93.8
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	(7.5)	0.5	1.1
Reclassifications to net income	(0.1)	(1.4)	(1.1)
Other comprehensive income (loss), net of tax	(1.5)	333.9	(1.5)
Total comprehensive income, net of tax	$ 554.4	$ 637.5	$ 465.9

Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Previously Reported [Member]	Revision of Prior Period, Accounting Standards Update, Adjustment [Member]	Common stock, $1 par value	Common stock, $1 par value Previously Reported [Member]	Common stock, $1 par value Revision of Prior Period, Accounting Standards Update, Adjustment [Member]	Capital in excess of par value	Capital in excess of par value Previously Reported [Member]	Capital in excess of par value Revision of Prior Period, Accounting Standards Update, Adjustment [Member]	Retained earnings	Retained earnings Previously Reported [Member]	Retained earnings Revision of Prior Period, Accounting Standards Update, Adjustment [Member]	Treasury stock, at cost	Treasury stock, at cost Previously Reported [Member]	Treasury stock, at cost Revision of Prior Period, Accounting Standards Update, Adjustment [Member]	Accumulated other comprehensive loss	Accumulated other comprehensive loss Previously Reported [Member]	Accumulated other comprehensive loss Revision of Prior Period, Accounting Standards Update, Adjustment [Member]
Beginning balance at Dec. 30, 2017	$ 1,032.4	$ 1,046.2	$ (13.8)	$ 124.1	$ 124.1	$ 0.0	$ 862.6	$ 862.6	$ 0.0	$ 2,582.9	$ 2,596.7	$ (13.8)	$ (1,856.7)	$ (1,856.7)	$ 0.0	$ (680.5)	$ (680.5)	$ 0.0
Increase (Decrease) in Stockholders' Equity
Net income	467.4									467.4
Other comprehensive income (loss), net of tax	(1.5)															(1.5)
Repurchase of 792,997, 2,222,937 and 3,951,215 shares for treasury for the years ended 2020, 2019, and 2018, respectively	(392.9)												(392.9)
Issuance of 389,102, 665,380 and 458,506 shares under stock-based compensation plans for the years ended 2020, 2019 and 2018, respectively	2.9						9.4			(24.1)			17.6
Contribution of 188,229, 200,742 and 204,823 shares to 401(k) Plan for the years ended 2020, 2019 and 2018, respectively	21.8									13.7			8.1
Dividends of $2.36, $2.26 and $2.01 per share for the years ended 2020, 2019 and 2018, respectively	(175.0)									(175.0)
Ending balance at Dec. 29, 2018	955.1			124.1			872.0			2,864.9			(2,223.9)			(682.0)
Increase (Decrease) in Stockholders' Equity
Net income	303.6									303.6
Other comprehensive income (loss), net of tax	333.9															333.9
Repurchase of 792,997, 2,222,937 and 3,951,215 shares for treasury for the years ended 2020, 2019, and 2018, respectively	(237.7)												(237.7)
Issuance of 389,102, 665,380 and 458,506 shares under stock-based compensation plans for the years ended 2020, 2019 and 2018, respectively	16.4						2.0			(13.6)			28.0
Contribution of 188,229, 200,742 and 204,823 shares to 401(k) Plan for the years ended 2020, 2019 and 2018, respectively	22.4									13.9			8.5
Dividends of $2.36, $2.26 and $2.01 per share for the years ended 2020, 2019 and 2018, respectively	(189.7)									(189.7)
Ending balance at Dec. 28, 2019	1,204.0			124.1			874.0			2,979.1			(2,425.1)			(348.1)
Increase (Decrease) in Stockholders' Equity
Net income	555.9									555.9
Other comprehensive income (loss), net of tax	(1.5)															(1.5)
Repurchase of 792,997, 2,222,937 and 3,951,215 shares for treasury for the years ended 2020, 2019, and 2018, respectively	(104.3)												(104.3)
Issuance of 389,102, 665,380 and 458,506 shares under stock-based compensation plans for the years ended 2020, 2019 and 2018, respectively	4.9						(11.9)			(3.4)			20.2
Contribution of 188,229, 200,742 and 204,823 shares to 401(k) Plan for the years ended 2020, 2019 and 2018, respectively	22.7									14.5			8.2
Dividends of $2.36, $2.26 and $2.01 per share for the years ended 2020, 2019 and 2018, respectively	(196.8)									(196.8)
Ending balance at Jan. 02, 2021	$ 1,484.9			$ 124.1			$ 862.1			$ 3,349.3			$ (2,501.0)			$ (349.6)

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Stock issued under stock-based compensation plans (in shares)	389,102	665,380	458,506
Stock issued under 401(k) Plan (in shares)	188,229	200,742	204,823
Dividends per common share (in dollars per share)	$ 2.36	$ 2.26	$ 2.01
Treasury stock, at cost
Repurchase of shares for treasury (in shares)	792,997	2,222,937	3,951,215

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Operating Activities
Net income	$ 555.9	$ 303.6	$ 467.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	154.2	140.3	141.5
Amortization	51.1	38.7	39.5
Provision for credit losses and sales returns	64.0	58.7	45.6
Stock-based compensation	24.0	34.5	34.3
Pension plan settlements and related charges	0.5	444.1	93.7
Deferred taxes and other non-cash taxes	9.3	(216.9)	(32.7)
Other non-cash expense and loss (income and gain), net	44.9	28.3	60.4
Changes in assets and liabilities and other adjustments:
Trade accounts receivable	14.7	(42.2)	(62.5)
Inventories	(6.0)	(18.1)	(70.5)
Accounts payable	(68.2)	46.4	43.6
Taxes on income	(35.2)	5.4	(35.5)
Other assets	18.2	38.4	(11.6)
Other liabilities	(76.1)	(114.7)	(255.3)
Net cash provided by operating activities	751.3	746.5	457.9
Investing Activities
Purchases of property, plant and equipment	(201.4)	(219.4)	(226.7)
Purchases of software and other deferred charges	(17.2)	(37.8)	(29.9)
Proceeds from sales of property, plant and equipment	9.2	7.8	9.4
Proceeds from insurance and sales (purchases) of investments, net	5.6	4.9	18.5
Payments for acquisitions, net of cash acquired, and investments in businesses	(350.4)	(6.5)	(3.8)
Net cash used in investing activities	(554.2)	(251.0)	(232.5)
Financing Activities
Net increase (decrease) in borrowings (maturities of three months or less)	(110.4)	(5.3)	(77.6)
Additional borrowings under revolving credit facility	500.0
Repayments of revolving credit facility	(500.0)
Additional long-term borrowings	493.7		493.3
Repayments of long-term debt and finance leases	(270.2)	(18.6)	(6.4)
Dividends paid	(196.8)	(189.7)	(175.0)
Share repurchases	(104.3)	(237.7)	(392.9)
Net (tax withholding) proceeds related to stock-based compensation	(19.7)	(17.4)	(32.2)
Payments of contingent consideration		(1.6)	(17.3)
Net cash used in financing activities	(207.7)	(470.3)	(208.1)
Effect of foreign currency translation on cash balances	9.2	(3.5)	(9.7)
Increase (decrease) in cash and cash equivalents	(1.4)	21.7	7.6
Cash and cash equivalents, beginning of year	253.7	232.0	224.4
Cash and cash equivalents, end of year	$ 252.3	$ 253.7	$ 232.0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 02, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Our businesses produce pressure-sensitive materials and a variety of tickets, tags, labels and other converted products. We sell most of our pressure-sensitive materials to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and

die-cutting.

We sell other pressure-sensitive materials in converted form as tapes and reflective sheeting. We also manufacture and sell a variety of other converted products and items not involving pressure-sensitive components, such as fasteners, tickets, tags, radio-frequency identification (“RFID”) inlays and tags, and imprinting equipment and related solutions, which serve the apparel and other end markets.

The

coronavirus/COVID-19

pandemic (collectively referred to herein as

“COVID-19”)

negatively impacted our financial position and results of operations in fiscal year 2020, most significantly in our Retail Branding and Information Solutions (“RBIS”) and Industrial and Healthcare Materials (“IHM”) reportable segments.

Principles of Consolidation

Our Consolidated Financial Statements include the accounts of majority-owned and controlled subsidiaries. Intercompany accounts, transactions, and profits are eliminated in consolidation. We apply the equity method of accounting for investments in which we have significant influence but not a controlling interest.

Fiscal Year

Normally, our fiscal years consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks. Our 2020 fiscal year consisted of a

53-week

period ending January 2, 2021. Our 2019 and 2018 fiscal years consisted of

52-week

periods ending December 28, 2019 and December 29, 2018, respectively.

Accounting Guidance Updates

Credit Losses

In the first quarter of 2020, using the modified retrospective approach, we adopted amended accounting guidance that requires credit losses on financial instruments, including trade receivables, to be measured based on the expected credit loss model instead of the incurred loss model. The expected credit loss model requires us to consider forward-looking information to estimate our allowance for credit losses. Our adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions for the reporting period and as of the date of our financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expense. Actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents generally consist of cash on hand, deposits in banks,

cash-in-transit,

and bank drafts and short-term investments with maturities of three months or less when purchased or received. The carrying value of these assets approximates fair value due to the short maturity of the instruments.

Trade Accounts Receivable

We record trade accounts receivable at the invoiced amount. Our allowance for credit losses reserve represents allowances for customer trade accounts receivable that are estimated to be partially or entirely uncollectible. These allowances are used to reduce gross trade receivables to their net realizable values. We record these allowances based on estimates related to the following:

•

The financial condition of customers;

•

The aging of receivable balances;

•

Our historical collection experience; and

•

Current and expected future macroeconomic and market conditions.

No single customer represented 10% or more of our net sales in, or trade accounts receivable at,

year-end

2020 or 2019. However, during 2020, 2019, and 2018, our ten largest customers by net sales in the aggregate represented approximately 17%, 16%, and 15% of our net sales, respectively. As of January 2, 2021 and December 28, 2019, our ten largest customers by trade accounts receivable in the aggregate represented approximately 13% and 12% of our trade accounts receivable, respectively. These customers were concentrated primarily in our Label and Graphic Materials (“LGM”) reportable segment. We generally do not require our customers to provide collateral.

Inventories

We state inventories at the lower of cost or net realizable value and categorized as raw materials,

work-in-progress,

or finished goods. Cost is determined using the

first-in,

first-out

method. Inventory reserves are

recorded to cost of products sold for damaged, obsolete, excess and slow-moving inventory and we establish a lower cost basis for the inventory. We use estimates to record these reserves. Slow-moving inventory is reviewed by category and may be partially or fully reserved for depending on the type of product, level of usage, and length of time the product has been included in inventory.

Property, Plant and Equipment

We generally compute depreciation using the

straight-line

method over the estimated useful lives of the respective assets, ranging from ten to 45 years for buildings and improvements and three to 15 years for machinery and equipment. Leasehold improvements are depreciated over the shorter of the useful life of the asset or the term of the associated leases. We expense maintenance and repair costs as incurred; we capitalize renewals and improvements. Upon the sale or retirement of assets, the accounts are relieved of the cost and the related accumulated depreciation, with any resulting gain or loss included in net income.

Leases

Our leases primarily relate to office and warehouse space, machinery, transportation, and equipment for information technology. For lease accounting purposes, we do not separate lease and nonlease components, nor do we record operating or finance lease assets and liabilities for short-term leases. We determine if an arrangement is a lease or contains a lease at inception. We have options to renew or terminate some of our leases. We evaluate renewal and termination options based on considerations available at the lease commencement date and over the lease term to determine if we are reasonably certain to exercise these options. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments. We recognize expense for operating leases on a straight-line basis over the lease term, with variable lease payments recognized in the periods in which they are incurred.

Software

We capitalize software costs incurred during the application development stage of software development, including costs incurred for design, coding, installation to hardware, testing, and upgrades and enhancements that provide the software or hardware with additional functionalities and capabilities. We expense software costs, including internal and external training costs and maintenance costs, incurred during the preliminary project stage and the post-implementation and/or operation stage. In addition, we capitalize implementation costs incurred under a hosting arrangement that is a service contract. Capitalized software, which is included in “Other assets” in the Consolidated Balance Sheets, is amortized on a straight-line basis over the estimated useful life of the software, which is generally between five and ten years.

Impairment of Long-lived Assets

We record impairment charges when the carrying amounts of long-lived assets are determined not to be recoverable. We measure recoverability by comparing the undiscounted cash flows expected from the applicable asset or asset group’s use and eventual disposition to its carrying value. We calculate the amount of impairment loss as the excess of the carrying value over the fair value. Historically, changes in market conditions and management strategy have caused us to reassess the carrying amount of our long-lived assets.

Goodwill and Other Intangibles Resulting from Business Acquisitions

We account for business combinations using the acquisition method, with the excess of the acquisition cost over the fair value of net tangible assets and identified intangible assets acquired considered goodwill. As a result, we disclose goodwill separately from other intangible assets. Other identifiable intangibles include customer relationships, patented and other developed technology, and trade names and trademarks.

We perform an annual impairment test of goodwill during the fourth quarter. In performing the impairment tests, we have the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative assessment for goodwill impairment. If the qualitative assessment indicates that it is

more-likely-than-not

that the fair value of a reporting unit is less than its carrying value, we perform a quantitative assessment. A quantitative assessment primarily consists of a present value (discounted cash flow) method to determine the fair value of reporting units with goodwill.

Certain factors may cause us to perform an impairment test prior to the fourth quarter, including significant underperformance of a business relative to expected operating results, significant adverse economic and industry trends, significant decline in our market capitalization for an extended period of time relative to net book value, or a decision to divest a portion of a reporting unit.

We compare the fair value of each reporting unit to its carrying amount, and, to the extent the carrying amount exceeds the unit’s fair value, we recognize an impairment of goodwill for the excess up to the amount of goodwill of that reporting unit.

In consultation with outside specialists, we estimate the fair value of our reporting units using various valuation techniques, with the primary technique being a discounted cash flow analysis. A discounted cash flow analysis requires us to make various assumptions about our reporting units, including their respective forecasted sales, operating margins and growth rates, as well as discount rates. Assumptions about discount rates are based on a weighted average cost of capital for comparable companies. Assumptions about sales, operating margins, and growth rates are based on our forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. We base our fair value estimates on projected financial information and assumptions that we believe are reasonable. However, actual future results may materially differ from these estimates and projections. The valuation methodology we use to estimate the fair value of reporting units requires inputs and assumptions that reflect current market conditions, as well as the impact of planned business and operational strategies that require management judgment. The estimated fair value could increase or decrease depending on changes in the inputs and assumptions.

We test indefinite-lived intangible assets, consisting of trade names and trademarks, for impairment in the fourth quarter or whenever events or circumstances indicate that it is

more-likely-than-not

that their carrying amounts exceed their fair values. Fair value is estimated as the discounted value of future revenues using a royalty rate that a third party would pay for use of the asset. Variation in the royalty rates could impact our estimate of fair value. If the carrying amount of an asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.

We amortize finite-lived intangible assets, consisting of customer relationships, patented and other developed technology, trade names and trademarks, and other intangibles, on a straight-line basis over the estimated useful life of the assets.

See Note 3, “Goodwill and Other Intangibles Resulting from Business Acquisitions,” for more information.

Foreign Currency

We translate asset and liability accounts of international operations into U.S. dollars at current rates. Revenues and expenses are translated at the weighted average currency rate for the fiscal year. We record gains and losses resulting from hedging the value of investments in certain international operations and from the translation of balance sheet accounts directly as a component of other comprehensive income.

On July 1, 2018, we began accounting for our operations in Argentina as highly inflationary, as the country’s three-year cumulative inflation rate exceeded 100%. As a result, the functional currency of our Argentine subsidiary became the U.S. dollar.

Financial Instruments

We enter into foreign exchange derivative 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. From time to time, 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 is 36 months for forecasted foreign exchange and commodity transactions and 10 years for cross-currency swap transactions.

On the date we enter into a derivative contract, we determine whether the derivative will be designated as a hedge. Derivatives designated as hedges are classified as either (1) hedges of the fair value of a recognized asset or liability or an unrecognized firm commitment (“fair value” hedges) or (2) hedges of a forecasted transaction or the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (“cash flow” hedges). Other derivatives not designated as hedges are recorded on the balance sheets at fair value, with changes in fair value recognized in earnings. Our policy is not to purchase or hold any foreign currency, interest rate or commodity contracts for trading purposes.

We assess, both at the inception of any hedge and on an ongoing basis, whether our hedges are highly effective. If we determine that a hedge is not highly effective, we prospectively discontinue hedge accounting. For cash flow hedges, we record gains and losses as components of other comprehensive income and reclassify them into earnings in the same period during which the hedged transaction affects earnings. In the event that the anticipated transaction is no longer likely to occur, we recognize the change in fair value of the instrument in current period earnings. We recognize changes in fair value hedges in current period earnings. We also recognize changes in the fair value of underlying hedged items (such as recognized assets or liabilities) in current period earnings and offset the changes in the fair value of the derivative.

In the Consolidated Statements of Cash Flows, hedges are classified in the same category as the item hedged, primarily in operating activities.

We also utilized certain foreign-currency-denominated debt to mitigate our foreign currency translation exposure from our net investment in foreign operations.

See Note 5, “Financial Instruments,” for more information.

Fair Value Measurements

We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability.

We determine fair value based on a three-tier fair value hierarchy, which we use to prioritize the inputs used in measuring fair value. These tiers consist of Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, which require us to develop our own assumptions to determine the best estimate of fair value.

Revenue Recognition

We recognize sales when or as we satisfy a performance obligation by transferring control of a product or service to a customer, in an amount that reflects the consideration to which we expect to be entitled for the product or service. We consider a number of factors in determining when we have transferred control to a customer, including the following: (i) our present right to payment; (ii) the customer’s legal title to the asset; (iii) physical possession of the asset; (iv) the customer’s significant risks and rewards of ownership of the asset; and (v) the customer’s acceptance of the asset.

Our payment terms with our customers are generally consistent with those used in our industries and the regions in which we operate.

We accept sales returns in certain limited circumstances. We record an estimate for return liabilities and a corresponding reduction to sales, in the amount we expect to repay or credit customers, which we base on historical returns and outstanding customer claims. We update our estimates each reporting period.

Sales rebates, discounts, and other customer concessions represent variable consideration and are common in the industries and regions in which we operate, which we account for as a reduction to sales based on estimates at the time at which products are sold. We base these estimates on our historical experience, as well as current information such as sales forecasts. We review our estimates regularly and, as additional information becomes available, we adjust our sales and the respective accruals, as necessary.

We exclude sales tax, value-added tax, and other taxes we collect from customers from sales. We account for shipping and handling activities after control of a product is transferred to a customer as fulfillment costs and not as separate performance obligations. As a practical expedient, we have elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of less than one year. We generally expense sales commissions when incurred because the amortization period would have been one year or less. We record these costs in “Marketing, general and administrative expense” in the Consolidated Statements of Income.

Research and Development

Research and development costs are related to research, design, and testing of new products and applications, which we expense as incurred.

Long-Term Incentive Compensation

No long-term incentive compensation expense was capitalized in 2020, 2019, or 2018.

Valuation of Stock-Based Awards

We base our stock-based compensation expense on the fair value of awards, adjusted for estimated forfeitures, amortized on a straight-line basis over the requisite service period for stock options and restricted stock units (“RSUs”). We base compensation expense for performance units (“PUs”) on the fair value of awards, adjusted for estimated forfeitures, and amortized on a straight-line basis as these awards cliff-vest at the end of the requisite service period. We base compensation expense related to market-leveraged stock units (“MSUs”) on the fair value of awards, adjusted for estimated forfeitures, and amortized on a graded-vesting basis over their respective performance periods.

Compensation expense for awards with a market condition as a performance objective, which includes PUs and MSUs, is not adjusted if the condition is not met, as long as the requisite service period is met.

We estimated the fair value of stock options as of the date of grant using the Black-Scholes option-pricing

model. This model requires input assumptions for our expected dividend yield, expected stock price volatility, risk-free interest rate, and the expected option term.

We determine the fair value of RSUs and the component of PUs that is subject to the achievement of a performance objective based on a financial performance condition based on the fair market value of our common stock as of the date of grant, adjusted for foregone dividends. Over the performance period of the PUs, the estimated number of shares of our common stock issuable upon vesting is adjusted upward or downward from the target shares at the time of grant based on the probability of the performance objectives established for the award being achieved.

We determine the fair value of stock-based awards that are subject to achievement of performance objectives based on a market condition, which includes MSUs and the other component of PUs, using the Monte-Carlo simulation method, which utilizes multiple input variables, including expected stock price volatility and other assumptions appropriate for determining fair value, to estimate the probability of satisfying the target performance objectives established for the award.

Certain of these assumptions are based on management’s estimates, in consultation with outside specialists. Significant changes in assumptions for future awards and actual forfeiture rates could materially impact stock-based compensation expense and our results of operations.

Valuation of Cash-Based Awards

Cash-based awards consist of long-term incentive units (“LTI Units”) granted to eligible employees. We classify LTI Units are as liability awards and remeasure them at each

quarter-end

over the applicable vesting or performance period. In addition to LTI Units with terms and conditions that mirror those of RSUs, we also grant certain employees LTI Units with terms and conditions that mirror those of PUs and MSUs.

Forfeitures

We estimate expected forfeitures in determining the compensation cost to be recognized each period, rather than accounting for forfeitures as they occur. We record changes in estimated forfeiture rates as cumulative adjustments in the period estimates are revised.

See Note 12, “Long-term Incentive Compensation,” for more information.

Taxes Based on Income

We are subject to income tax in the U.S. and multiple foreign jurisdictions, whereby judgment is required in evaluating and estimating our worldwide provision, accruals for taxes, deferred taxes and for evaluating our tax positions. Our provision for income taxes is determined using the asset and liability approach in accordance with GAAP. Under this approach, deferred taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets when uncertainty regarding their realizability exists. We recognize and measure our uncertain tax positions following the

more-likely-than-not

threshold for recognition and measurement for tax positions we take or expect to take on a tax return.

See Note 14, “Taxes Based on Income,” for more information.

ACQUISITIONS	12 Months Ended
ACQUISITIONS	Jan. 02, 2021
ACQUISITIONS
ACQUISITIONS	NOTE 2. ACQUISITIONS Subsequent to our fiscal year-end 2020, in February 2021, we announced our agreement to acquire JDC Solutions, Inc., a Tennessee-based manufacturer of pressure-sensitive specialty tapes , for a purchase price of approximately $24 million, subject to customary adjustments. We believe this acquisition expands the product portfolio in our IHM reportable segment. We expect to complete this acquisition in the first quarter of 2021. On December 31, 2020 , we completed our acquisition of ACPO, Ltd . (“ACPO”), an Ohio-based manufacturer of self-wound (linerless) pressure-sensitive overlaminate products, for consideration of approximately $88 million, subject to customary adjustments. We believe this acquisition expands our product portfolio in the North American business of our LGM reportable segment. Consistent with the time allowed to complete our assessment, our valuation of certain acquired assets and liabilities, including tangible and intangible assets and environmental liabilities, is preliminary. On February 28, 2020, we completed our acquisition of Smartrac’s Transponder (RFID Inlay) division (“Smartrac”), a manufacturer of RFID products, for consideration of approximately $255 million ( € 232 million). We believe this acquisition enhances our research and development capabilities, expands our product lines, and provides added manufacturing capacity. Results for Smartrac’s operations were included in our RBIS reportable segment. These acquisitions were not material, individually or in the aggregate, to our Consolidated Financial Statements.

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

12 Months Ended

Jan. 02, 2021

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

NOTE 3. GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

Goodwill

Results from our annual goodwill impairment test in the fourth quarter of 2020 indicated that no impairment occurred during 2020. The assumptions used in our assessment of these assets were primarily based on Level 3 inputs.

Changes in the net carrying amount of goodwill for 2020 and 2019 by reportable segment were as follows:


(In millions)	Label and Graphic Materials			Retail Branding and Information Solutions			Industrial and Healthcare Materials			Total
Goodwill as of December 29, 2018	$	415.5		$	349.7		$	176.6		$	941.8
Translation adjustments		(7.7	)		(.4	)		(2.9	)		(11.0	)
Goodwill as of December 28, 2019		407.8			349.3			173.7			930.8
Acquisitions (1)		45.8			112.7			–			158.5
Translation adjustments		27.3			9.8			10.0			47.1
Goodwill as of January 2, 2021	$	480.9		$	471.8		$	183.7		$	1,136.4

(1)

Goodwill acquired in 2020 related to the acquisitions of Smartrac, which is included in our RBIS reportable segment, and ACPO, which is included in our LGM reportable segment. We expect the recognized goodwill related to the Smartrac acquisition not to be deductible for income tax purposes and the recognized goodwill related to the ACPO acquisition to be deductible for income tax purposes.

The carrying amounts of goodwill at January 2, 2021 and December 28, 2019 were net of accumulated impairment losses of $820 million recognized in fiscal year 2009 by our RBIS reportable segment.

Indefinite-Lived Intangible Assets

Results from our annual indefinite-lived intangible assets impairment test in the fourth quarter indicated that no impairment occurred in 2020. The carrying value of indefinite-lived intangible assets resulting from business acquisitions, consisting of trade names and trademarks, was $22.2 million and $20.8 million at January 2, 2021 and December 28, 2019, respectively.

Finite-Lived Intangible Assets

In connection with our acquisitions of Smartrac and ACPO, we acquired approximately $106 million of identifiable intangible assets, which consisted of customer relationships, trade names and trademarks, and patented and other developed technology. We utilized the income approach and the cost approach to estimate the fair values of acquired identifiable intangibles, primarily using Level 3 inputs. The discount rates we used to value these assets were between 13.5% and 16%.

The table below summarizes the preliminary amounts and weighted useful lives of these intangible assets as of the acquisition date.


	Amount (in millions)		Weighted average amortization period (in years)
Patented and other developed technology	$	62.5		11
Customer relationships		41.4		7
Trade names and trademarks		2.2		5

Refer to Note 2, “Acquisitions,” for more information.

The table below sets forth our finite-lived intangible assets resulting from business acquisitions at January 2, 2021 and December 28, 2019, which continue to be amortized.


	2020						2019
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	373.3	$	254.1	$	119.2	$	319.5	$	238.7	$	80.8
Patented and other developed technology		147.3		69.8		77.5		81.7		61.3		20.4
Trade names and trademarks		28.2		22.2		6.0		24.3		19.8		4.5
Other intangibles		.2		.2		–		.2		.2		–
Total	$	549.0	$	346.3	$	202.7	$	425.7	$	320.0	$	105.7

Amortization expense for finite-lived intangible assets resulting from business acquisitions was $19.9 million for 2020, $13.5 million for 2019, and $15.2 million for 2018.

We expect estimated amortization expense for finite-lived intangible assets resulting from business acquisitions for each of the next five fiscal years to be as follows:


(In millions)	Estimated Amortization Expense
2021	$	25.1
2022		24.0
2023		23.0
2024		21.2
2025		20.4

DEBT

12 Months Ended

Jan. 02, 2021

DEBT

DEBT

NOTE 4. DEBT

Short-Term Borrowings

We had no outstanding borrowings from U.S. commercial paper as of January 2, 2021 and had $83.2 million of outstanding borrowings from U.S. commercial paper issuances with a weighted average interest rate of 1.98% as of December 28, 2019.

We have a Euro-Commercial Paper Program under which we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding of $500 million. Proceeds from issuances under this program may be used for general corporate purposes. The maturities of the notes vary, but may not exceed 364 days from the date of issuance. Our payment obligations with respect to any notes issued under this program are backed by our $800 million revolving credit facility (the “Revolver”). There are no financial covenants under this program. We had a balance of $36.9 million and $50.1 million outstanding under this program as of January 2, 2021 and December 28, 2019, respectively.

Short-Term Credit Facilities

In February 2020, we amended and restated the Revolver, eliminating one of the financial covenants and extending its maturity date to February 13, 2025. The maturity date may be extended for a

one-year

period under certain circumstances. The commitments under the Revolver may be increased by up to $400 million, subject to lender approvals and customary requirements. The Revolver is used as a

back-up

facility for our commercial paper program and can be used for other corporate purposes.

No balance was outstanding under the Revolver as of January 2, 2021 or December 28, 2019. Commitment fees associated with the Revolver in 2020, 2019, and 2018 were $.8 million, $1.2 million, and $1.2 million, respectively.

In addition to the Revolver, we have significant short-term lines of credit available in various countries of approximately $390 million in the aggregate at January 2, 2021. These lines may be cancelled at any time by us or the issuing banks. Short-term borrowings outstanding under our lines of credit were $22.2 million and $37.4 million at January 2, 2021 and December 28, 2019, respectively, with a weighted average interest rate of 3.6% and 6.4%, respectively.

From time to time, certain of our subsidiaries provide guarantees on certain arrangements with banks. Our exposure to these guarantees is not material.

Long-Term Borrowings

In March 2020, we issued $500 million of senior notes, due April 2030. These senior notes bear an interest rate of 2.65% per year, payable semiannually in arrears. Our net proceeds from the issuance, after deducting underwriting discounts and offering expenses, were $493.7 million, which we used to repay both existing indebtedness under our commercial paper program used to fund our Smartrac acquisition and our $250 million of senior notes that matured in April 2020.

In December 2018, we issued $500 million of senior notes, due December 2028. These senior notes bear an interest rate of 4.875% per year, payable semiannually in arrears. Our net proceeds from this issuance, after deducting underwriting discounts and offering expenses, were $493.3 million, which we used to repay commercial paper borrowings. Prior to the issuance of these senior notes, we used commercial paper borrowings in August 2018 to fund our $200 million contribution to the Avery Dennison Pension Plan (the “ADPP”) in connection with its termination.

Long-term debt, including its respective interest rates, at

year-end

is shown below.


(In millions)	2020		2019
Long-term debt
Medium-term notes:
Series 1995 due 2020 through 2025	$	30.0	$	45.0
Long-term notes:
Senior notes due 2020 at 5.4%		–		250.0
Senior notes due 2023 at 3.4%		249.3		249.1
Senior notes due 2025 at 1.25% (1)		612.1		553.4
Senior notes due 2028 at 4.875%		494.6		493.9
Senior notes due 2030 at 2.650%		494.2		–
Senior notes due 2033 at 6.0%		149.0		148.9
Less amount classified as current		–		(265.0	)
Total long-term debt (2)	$	2,029.2	$	1,475.3

(1)	These senior notes are euro-denominated.

(2)	Includes unamortized debt issuance cost and debt discount of $8.7 million and $4.9 million, respectively, as of year-end 2020 and $5.6 million and $5.7 million, respectively, as of year-end 2019.

year-end

2020 and 2019, our medium-term notes had maturities in 2025 and from 2020 through 2025, respectively, and accrued interest at a weighted average fixed rate of 7.5%. In the second quarter of 2020, we repaid $15 million of medium-term notes that matured in June 2020.

We expect maturities of our long-term debt for each of the next five fiscal years and thereafter to be as follows:


Year	(In millions)
2021	$	–
2022		–
2023		250.0
2024		–
2025		644.9
2026 and thereafter		1,147.9

Refer to Note 7, “Commitments and Leases,” for information related to finance leases.

Other

Prior to its amendment and restatement in February 2020, the Revolver contained financial covenants requiring that we maintain specified ratios of total debt and interest expense in relation to certain measures of income. In February 2020, one of the financial covenants was eliminated. The remaining financial covenant requires us to maintain a specified ratio of total debt in relation to a certain measure of income. As of January 2, 2021 and December 28, 2019, we were in compliance with our financial covenants.

Our total interest costs in 2020, 2019, and 2018 were $73.9 million, $81.1 million, and $63.8 million, respectively, of which $3.9 million, $5.3 million, and $5.3 million, respectively, was capitalized as part of the cost of property, plant and equipment and capitalized software.

The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury securities or euro government bond securities, as applicable, on notes with similar rates, credit ratings, and remaining maturities. The fair value of short-term borrowings, which includes 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 $2.34 billion at January 2, 2021 and $2.05 billion at December 28, 2019. 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. Refer to Note 1, “Summary of Significant Accounting Policies,” for more information.

FINANCIAL INSTRUMENTS

12 Months Ended

Jan. 02, 2021

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

NOTE 5. FINANCIAL INSTRUMENTS

As of January 2, 2021, the aggregate U.S. dollar equivalent notional value of our outstanding commodity contracts and foreign exchange contracts was $4.2 million and $1.38 billion, respectively.

We recognize derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. We designate commodity forward contracts on forecasted purchases of commodities and foreign exchange contracts on forecasted transactions as cash flow hedges. We also enter into foreign exchange contracts to offset certain of our economic exposures arising from foreign exchange rate fluctuations.

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 these derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings. Except for the cross-currency swap discussed below, cash flow hedges were not material in 2020, 2019, or 2018.

Cross-Currency Swap

Following our Smartrac acquisition and our issuance of senior notes in March 2020, we entered into U.S. dollar to euro cross-currency swap contracts with a total notional amount of $250 million to have the effect of converting the fixed-rate U.S. dollar-denominated debt to euro-denominated debt, including semiannual interest payments and the payment of principal at maturity. During the term of the contract, which ends on April 30, 2030, we pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars. These contracts have been designated as cash flow hedges and were effective as of January 2, 2021, with a fair value of $(36.7) million. This amount was included in “Long-term retirement benefits and other liabilities” in the Consolidated Balance Sheets. Refer to Note 9, “Fair Value Measurements,” to the Consolidated Financial Statements for more information.

We recorded no ineffectiveness from our cross-currency swap to earnings during 2020.

Other Derivatives

The following table shows the fair value and balance sheet locations of other derivatives as of January 2, 2021 and December 28, 2019:


	Asset					Liability
(In millions)	Balance Sheet Location	2020		2019		Balance Sheet Location	2020		2019
Foreign exchange contracts	Other current assets	$	5.1	$	4.8	Other current liabilities	$	8.4	$	4.7
Commodity contracts	Other current assets		.1		–	Other current liabilities		.1		–
		$	5.2	$	4.8		$	8.5	$	4.7

For other derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings.

The following table shows the components of the net gains (losses) recognized in income related to these derivative instruments:


(In millions)	Statements of Income Location		2020			2019			2018
Foreign exchange contracts	Cost of products sold	$	1.9		$	(1.5	)	$	4.5
Foreign exchange contracts	Marketing, general and administrative expense		(14.2	)		3.5			(27.0	)
		$	(12.3	)	$	2.0		$	(22.5	)

Net Investment Hedge

In January 2018, we reduced the amount we designated as a net investment hedge in foreign operations in March 2017 from

€

500 million to

€

255 million of our 1.25% senior notes due 2025. In May 2019, we

de-designated

the remaining net investment hedge as a result of changes in our intercompany capital structure. Through the period preceding the

de-designation,

the net assets from our investment in foreign operations were greater than the amount designated as a net investment hedge, and, as such, the net investment hedge was effective.

Gains (losses), before taxes, recognized in “Accumulated other comprehensive loss” (effective portion) related to the net investment hedge were as follows:


(In millions)	2020		2019		2018
Foreign currency denominated debt	$	–	$	6.8	$	1.3

We recorded no ineffectiveness from our net investment hedge to earnings during 2019 or 2018.

PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Jan. 02, 2021

Retirement Benefits [Abstract]

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 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 have been included in the disclosures below.

In 2019, we terminated and settled the ADPP, a U.S. defined benefit plan. In connection with this termination, we settled approximately $753 million of ADPP liabilities by entering into an agreement to purchase annuities primarily from American General Life Insurance Company and through a combination of annuities and direct funding to the Pension Benefit Guaranty Corporation for a small portion of former employees and their beneficiaries. These settlements resulted in approximately $444 million of pretax charges in 2019, partially offset by related tax benefits of approximately $179 million.

Plan Assets

Assets in our international plans are invested in accordance with locally accepted practices and primarily include equity securities, fixed income securities, insurance contracts and cash. Asset allocations and investments vary by country and plan. Our target plan asset investment allocation for our international plans in the aggregate is 37% in equity securities, 53% in fixed income securities and cash, and 10% in insurance contracts and other investments, subject to periodic fluctuations among these asset classes.

Fair Value Measurements

The valuation methodologies we use for assets measured at fair value are described below.

Cash is valued at nominal value. Cash equivalents and mutual funds are valued at fair value as determined by quoted market prices, based upon the net asset value (“NAV”) of shares held at

year-end.

Fixed income treasury securities are valued at fair value as determined by quoted prices in active markets. Fixed income municipal and corporate bonds are valued at fair value based on quoted prices for similar instruments in active markets or other inputs that are observable or can be corroborated by observable market data. Pooled funds are structured as collective trusts, not publicly traded, and valued by calculating NAV per unit based on the NAV of the underlying funds/trusts as a practical expedient for the fair value of the pooled funds. Insurance contracts are valued at book value, which approximates fair value and is calculated using the prior year balance plus or minus investment returns and changes in cash flows.

These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe these valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth, by level within the fair value hierarchy (as applicable), international plan assets at fair value:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
2020
Cash	$	3.8	$	3.8	$	–	$	–
Insurance contracts		41.2		–		–		41.2
Pooled funds – fixed income securities (1)		469.9
Pooled funds – equity securities (1)		332.8
Pooled funds – other investments (1)		49.5
Total international plan assets at fair value	$	897.2
2019
Cash	$	1.2	$	1.2	$	–	$	–
Insurance contracts		36.3		–		–		36.3
Pooled funds – fixed income securities (1)		329.9
Pooled funds – equity securities (1)		268.8
Pooled funds – other investments (1)		98.2
Total international plan assets at fair value	$	734.4

(1)	Pooled funds that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to reconcile to total international plan assets.

The following table presents a reconciliation of Level 3 international plan asset activity during the year ended January 2, 2021:


	Level 3 Assets
(In millions)	Insurance Contracts
Balance at December 28, 2019	$	36.3
Net realized and unrealized gain		.5
Purchases		4.0
Settlements		(3.6	)
Impact of changes in foreign currency exchange rates		4.0
Balance at January 2, 2021	$	41.2

As a result of the ADPP settlements, there were no U.S. plan assets remaining as of December 28, 2019.

Plan Assumptions

Discount Rate

In consultation with our actuaries, we annually review and determine the discount rates used to value our pension and other postretirement obligations. The assumed discount rate for each pension plan reflects market rates for high quality corporate bonds currently available. Our discount rate is determined by evaluating yield curves consisting of large populations of high quality corporate bonds. The projected pension benefit payment streams are then matched with bond portfolios to determine a rate that reflects the liability duration unique to our plans.

We use the full yield curve approach to estimate the service and interest cost components of net periodic benefit cost for our pension and other postretirement benefit plans. Under this approach, we apply multiple discount rates from a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date. We believe this approach provides a more precise measurement of service and interest cost by aligning the timing of a plan’s liability cash flows to its corresponding rates on the yield curve.

Long-term Return on Assets

We determine the long-term rate of return assumption for plan assets by reviewing the historical and expected returns of both the equity and fixed income markets, taking into account our asset allocation, the correlation between returns in our asset classes, and the mix of active and passive investments. Additionally, we evaluate current market conditions, including interest rates, and review market data for reasonableness and appropriateness.

Measurement Date

We measure the actuarial value of our benefit obligations and plan assets using the calendar

month-end

closest to our fiscal

year-end

and adjust for any contributions or other significant events between the measurement date and our fiscal

year-end.

Plan Balance Sheet Reconciliations

The following table provides a reconciliation of benefit obligations, plan assets, funded status of the plans and accumulated other comprehensive loss for our defined benefit plans:

Plan Benefit Obligations


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$	75.7		$	811.7		$	868.5		$	755.8
Service cost		–			17.8			–			15.6
Interest cost		1.8			11.0			9.0			14.8
Participant contribution		–			3.7			–			4.1
Amendments		–			.4			–			1.8
Actuarial (gain) loss		7.1			53.5			(27.1	)		56.8
Benefits paid		(7.3	)		(21.1	)		(20.7	)		(21.3	)
Settlements (1)		–			(2.4	)		(754.0	)		(4.5	)
Foreign currency translation		–			79.3			–			(11.4	)
Projected benefit obligations at end of year	$	77.3		$	953.9		$	75.7		$	811.7
Accumulated benefit obligations at end of year	$	77.3		$	883.6		$	75.7		$	754.0

(1)	In 2020, settlements in our international plans related to lump-sum payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to lump-sum payments in Switzerland.

Plan Assets


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in plan assets
Plan assets at beginning of year	$	–		$	734.4		$	735.6		$	631.8
Actual return on plan assets		–			91.5			20.7			118.5
Employer contributions (1)		7.3			17.2			18.4			13.6
Participant contributions		–			3.7			–			4.1
Benefits paid		(7.3	)		(21.1	)		(20.7	)		(21.3)
Settlements (2)		–			(2.4	)		(754.0	)		(4.5)
Foreign currency translation		–			73.9			–			(7.8)
Plan assets at end of year	$	–		$	897.2		$	–		$	734.4

(1)	In 2019, we contributed $10 million to the ADPP to pay the remaining liabilities associated with its termination.

(2)	In 2020, settlements in our international plans related to lump-sum payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to lump-sum payments in Switzerland.

Funded Status


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Funded status of the plans
Other assets	$	–		$	92.4		$	–		$	50.8
Other accrued liabilities		(9.1	)		(1.5	)		(7.5	)		(2.4	)
Long-term retirement benefits and other liabilities (1)		(68.2	)		(147.6	)		(68.2	)		(125.7	)
Plan assets less than benefit obligations	$	(77.3	)	$	(56.7	)	$	(75.7	)	$	(77.3	)

(1)	In accordance with our funding strategy, we have the option to fund certain of our U.S. liabilities with proceeds from our company-owned life insurance policies.

Notes to Consolidated Financial Statements


	Pension Benefits
	2020						2019
	U.S.			Int’l			U.S.			Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate		2.02	%		1.26	%		2.93	%		1.66	%
Compensation rate increase		–			2.15			–			2.21

For U.S. and international plans combined, the projected benefit obligations and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $295 million and $69 million, respectively, at

year-end

2020 and $263 million and $59 million, respectively, at

year-end

2019.

For U.S. and international plans combined, the accumulated benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $265 million and $69 million, respectively, at

year-end

2020 and $237 billion and $59 million, respectively, at

year-end

2019.

Accumulated Other Comprehensive Loss

The following table shows the

pre-tax

amounts recognized in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets:


	Pension Benefits
	2020					2019
(In millions)	U.S.		Int’l			U.S.		Int’l
Net actuarial loss	$	18.2	$	83.3		$	15.5	$	101.9
Prior service (credit) cost		–		(3.9	)		–		(4.3	)

Net amount recognized in accumulated other comprehensive loss	$	18.2	$	79.4		$	15.5	$	97.6

The following table shows the

pre-tax

amounts recognized in “Other comprehensive loss (income)”:


	Pension Benefits
	2020						2019						2018
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l
Net actuarial loss (gain)	$	3.5		$	(13.5	)	$	(44.6	)	$	(42.7	)	$	33.5		$	(27.2)
Prior service credit		–			.4			–			1.8			–			–
Amortization of unrecognized:
Net actuarial gain		(.6	)		(5.2	)		(.5	)		(4.0	)		(21.2	)		(8.1)
Prior service credit (cost)		–			.4			–			.4			(.8	)		.5
Settlements		(.2	)		(.3	)		(442.8	)		(.6	)		(92.0	)		(1.7	)

Net amount recognized in other comprehensive loss (income)	$	2.7		$	(18.2	)	$	(487.9	)	$	(45.1	)	$	(80.5	)	$	(36.5	)

Plan Income Statement Reconciliations

The following table shows the components of net periodic benefit cost, which are recorded in net income for our defined benefit plans:


	Pension Benefits
	2020					2019					2018
(In millions)	U.S.		Int’l			U.S.		Int’l			U.S.			Int’l
Service cost	$	–	$	17.8		$	–	$	15.6		$	–		$	19.2
Interest cost		1.8		11.0			2.7		14.8			34.5			15.7
Actuarial loss (gain)		3.7		–			2.5		–			(.6	)		–
Expected return on plan assets		–		(18.5	)		–		(21.0	)		(42.5	)		(23.8	)
Amortization of actuarial loss		.6		5.2			.5		4.0			21.2			8.1
Amortization of prior service (credit) cost		–		(.4	)		–		(.4	)		.8			(.5	)
Recognized loss on settlements (1)		.2		.3			443.5		.6			92.0			1.7

Net periodic benefit cost (credit)	$	6.3	$	15.4		$	449.2	$	13.6		$	105.4		$	20.4

(1)

In 2020, settlements in the U.S. related to a

non-qualified

plan; settlements in our international plans related to

lump-sum

payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to

lump-sum

payments in Switzerland. In 2018, settlements in the U.S. related to

lump-sum

payments associated with the ADPP and two nonqualified benefit plans; settlements in our international plans related to

lump-sum

payments in the United Kingdom and France.

Service cost and components of net periodic benefit cost other than service cost were included in “Marketing, general and administrative expense” and “Other

non-operating

expense (income), net” in the Consolidated Statements of Income, respectively.

The following table shows the weighted average assumptions used to determine net periodic cost:


	Pension Benefits

	2020						2019						2018
	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Discount rate		2.89	%		1.66	%		3.73	%		2.39	%		3.72	%		2.25	%
Expected return on assets		–			2.79			–			3.38			7.00			3.78
Compensation rate increase		–			2.21			–			2.23			–			2.26

Plan Contributions

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. The following table sets forth our expected contributions in 2021:


(In millions)


U.S. pension plans	$	9.2
International pension plans		13.4

Future Benefit Payments

The future benefit payments shown below reflect expected service periods for eligible participants.


	Pension Benefits
(In millions)	U.S.		Int’l

2021	$	9.2	$	23.0
2022		6.9		25.1
2023		6.4		27.0
2024		6.7		26.0
2025		6.1		26.0

2026-2030		24.8		168.4

Postretirement Health Benefits

We provide postretirement health benefits to certain of our retired U.S. employees up to the age of 65 under a cost-sharing arrangement and provide supplemental Medicare benefits to certain of our U.S. retirees over the age of 65. Our policy is to fund the cost of these postretirement benefits from operating cash flows. While we do not intend to terminate these postretirement health benefits, we may do so at any time, subject to applicable laws and regulations. At

year-end

2020, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately $3 million and approximately $10 million, respectively. At

year-end

2019, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately $3 million and approximately $8 million, respectively. Net periodic benefit cost was not material in 2020, 2019, or 2018.

Defined Contribution Plans

We sponsor various defined contribution plans worldwide, the largest of which is the Avery Dennison Corporation Employee Savings Plan (“Savings Plan”), a 401(k) plan for our U.S. employees.

We recognized expense of $22.7 million, $22.4 million, and $21.8 million in 2020, 2019, and 2018, respectively, related to our employer contributions and employer match of participant contributions to the Savings Plan.

Other Retirement Plans

We have deferred compensation plans and programs that permit eligible employees and directors to defer a portion of their compensation. The compensation voluntarily deferred by the participant, together with certain employer contributions, earns specified and variable rates of return. As of

year-end

2020 and 2019, we had accrued $95.1 million and $91.6 million, respectively, for our obligations under these plans. A portion of the interest on certain of our contributions may be forfeited by participants if their employment terminates before age 55 other than by reason of death or disability.

Our Directors Deferred Equity Compensation Program allows our

non-employee

directors to elect to receive their cash compensation in deferred stock units (“DSUs”) issued under our equity plan. Additionally, two legacy deferred compensation plans had DSUs that were issued under our then-active equity plans. Dividend equivalents, representing the value of dividends per share paid on shares of our common stock and calculated with reference to the number of DSUs held as of a quarterly dividend record date, are credited in the form of additional DSUs on the applicable dividend payable date. DSUs are converted into shares of our common stock upon a director’s resignation or retirement. Approximately .1 million and .2 million DSUs were outstanding as of

year-end

2020 and 2019, respectively, with an aggregate value of $22 million and $25 million, respectively.

We hold company-owned life insurance policies, the proceeds from which are payable to us upon the death of covered participants. The cash surrender values of these policies, net of outstanding loans, which are included in “Other assets” in the Consolidated Balance Sheets, were $254.8 million and $236.9 million at

year-end

2020 and 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

COMMITMENTS AND LEASES

12 Months Ended

Jan. 02, 2021

Leases [Abstract]

COMMITMENTS AND LEASES

NOTE 7. COMMITMENTS AND LEASES

Supplemental cost information related to leases is shown below.


(In millions)	2020		2019
Operating lease costs	$	63.1	$	65.4

Lease costs related to finance leases were not material in 2020 or 2019.

Supplemental balance sheet information related to leases is shown below.


(In millions)	Balance Sheet Location	2020		2019
Assets
Operating	Other assets	$	161.3	$	138.1
Finance (1)	Property, plant and equipment, net		38.2		36.1
Total leased assets		$	199.5	$	174.2
Liabilities
Current:
Operating	Other current liabilities	$	44.3	$	41.4
Finance	Short-term borrowings and current portion of long-term debt and finance leases		5.6		4.5
Non-current:
Operating	Long-term retirement benefits and other liabilities		116.0		98.9
Finance	Long-term debt and finance leases		22.9		24.0
Total lease liabilities		$	188.8	$	168.8

(1)	Finance lease assets are net of accumulated amortization of $8.3 million and $5.7 million as of January 2, 2021 and December 28, 2019, respectively.

Supplemental cash flow information related to leases is shown below.


(In millions)	2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	54.9	$	53.1
Operating lease assets obtained in exchange for operating lease liabilities		48.4		32.6

Cash flows related to finance leases were not material in 2020 or 2019.

Weighted average remaining lease term and discount rate information related to leases as of January 2, 2021 is shown below.


	2020
Weighted average remaining lease term (in years):
Operating		6.2
Finance		3.2
Weighted average discount rate (percentage):
Operating		4.3	%
Finance		2.9

Operating and finance lease liabilities by maturity date from January 2, 2021 are shown below.


(In millions)	Operating Leases			Finance Leases
2021	$	47.9		$	14.1
2022		34.7			5.5
2023		25.4			4.8
2024		19.5			4.5
2025		15.3			1.3
2026 and thereafter		40.8			.1
Total lease payments		183.6			30.3
Less: imputed interest		(23.3	)		(1.8	)
Present value of lease liabilities	$	160.3		$	28.5

As of January 2, 2021, we had no significant operating or finance leases that had not yet commenced.

In the first quarter of 2019, we adopted accounting guidance that requires lessees to recognize on their balance sheets the rights and obligations created by leases. We elected to apply this guidance using a modified retrospective approach.

Rent expense for operating leases was approximately $66 million in 2018.

CONTINGENCIES

12 Months Ended

Jan. 02, 2021

Contingencies

CONTINGENCIES

NOTE 8. 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 potential 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 that extend or improve the economic useful life of existing assets are capitalized and amortized over the shorter of the estimated useful life of the acquired asset or the remaining life of the existing asset. 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 potential liabilities.

As of January 2, 2021, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or other responsible state agencies as a PRP at twelve 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, our future expenses to remediate these sites could be higher than the liabilities we have accrued; however, we are unable to reasonably estimate a range of potential expenses. 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 related to our environmental liabilities in 2020 and 2019 was as follows:


(In millions)	2020			2019
Balance at beginning of year	$	21.4		$	20.0
Charges, net of reversals		3.0			7.4
Payments		(3.3	)		(6.0	)
Balance at end of year	$	21.1		$	21.4

Approximately $9 million and $10 million, respectively, of the balance was classified as short-term and included in “Other current liabilities” in the Consolidated Balance Sheets as of January 2, 2021 and December 28, 2019.

FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 02, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 9. 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 January 2, 2021:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	33.6	$	27.4	$	6.2	$	–
Derivative assets		5.2		.1		5.1		–
Bank drafts		12.8		12.8		–		–
Liabilities
Cross-currency swap	$	36.7	$	–	$	36.7	$	–
Derivative liabilities		9.5		.3		9.2		–

The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of December 28, 2019:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	30.6	$	26.0	$	4.6	$	–
Derivative assets		5.2		–		5.2		–
Bank drafts		21.3		21.3		–		–
Liabilities
Derivative liabilities	$	6.0	$	.4	$	5.6	$	–

Investments 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 NAV. As of January 2, 2021, investments of $1 million and $32.6 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the Consolidated Balance Sheets. As of December 28, 2019, investments of $.4 million and $30.2 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the 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 were included in “Other current assets” in the Consolidated Balance Sheets.

Non-Recurring

Fair Value Measurements

During the year ended December 29, 2018, long-lived assets with carrying amounts totaling $18.1 million were written down to their fair value of $10.6 million, resulting in an impairment charge of $7.5 million, which was included in “Other expense (income), net” in the Consolidated Statements of Income. The fair value was based on the estimated sale price of the assets, less estimated broker fees, which is primarily a Level 3 input.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

NET INCOME PER COMMON SHARE

12 Months Ended

Jan. 02, 2021

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

NOTE 10. NET INCOME PER COMMON SHARE

Net income per common share was computed as follows:


(In millions, except per share amounts)		2020		2019		2018
(A) Net income	$	555.9	$	303.6	$	467.4
(B) Weighted average number of common shares outstanding		83.4		84.0		87.3
Dilutive shares (additional common shares issuable under stock-based awards)		.7		1.0		1.3
(C) Weighted average number of common shares outstanding, assuming dilution		84.1		85.0		88.6
Net income per common share (A) ÷ (B)	$	6.67	$	3.61	$	5.35
Net income per common share, assuming dilution (A) ÷ (C)	$	6.61	$	3.57	$	5.28

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 were not significant in 2020, 2019 or 2018.

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION

12 Months Ended

Jan. 02, 2021

Stockholders' Equity Note [Abstract]

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION

NOTE 11. SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION

Common Stock and Share Repurchase Program

Our Amended and Restated Certificate of Incorporation authorizes five

million shares of $1 par value preferred stock (of which no

shares are outstanding), with respect to which our Board may fix the series and terms of issuance, and 400 million shares of $1 par value voting common stock.

From time to time, our Board authorizes the repurchase of shares of our outstanding common stock. Repurchased shares may be reissued under our long-term incentive plan or used for other corporate purposes. In 2020, we repurchased approximately .8 million shares of our common stock at an aggregate cost of $104.3 million. In 2019, we repurchased approximately 2

million shares of our common stock at an aggregate cost of $237.7

million.

In April 2019, our 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, in addition to the amount then outstanding under our previous Board authorization. Board authorizations remain in effect until shares in the amount authorized thereunder have been repurchased. Shares of our common stock in the aggregate amount of $540.4 million as of January 2, 2021 remained authorized for repurchase under this Board authorization.

Treasury Shares Reissuance

We fund a portion of our employee-related expenses using shares of our common stock held in treasury. We record net gains or losses associated with our use of treasury shares to retained earnings.

Accumulated Other Comprehensive Loss

The changes in “Accumulated other comprehensive loss” (net of tax) for 2020 and 2019 were as follows:


(In millions)	Foreign Currency Translation			Pension and Other Postretirement Benefits			Cash Flow Hedges			Total
Balance as of December 29, 2018	$	(247.4	)	$	(434.3	)	$	(.3	)	$	(682.0	)
Other comprehensive income (loss) before reclassifications, net of tax		2.3			66.4			.5			69.2
Reclassifications to net income, net of tax		–			266.1			(1.4	)		264.7

Net current-period other comprehensive income (loss), net of tax		2.3			332.5			(.9	)		333.9
Balance as of December 28, 2019	$	(245.1	)	$	(101.8	)	$	(1.2	)	$	(348.1	)
Other comprehensive income (loss) before reclassifications, net of tax		(3.0	)		6.2			(7.5	)		(4.3	)
Reclassifications to net income, net of tax		–			2.9			(.1	)		2.8

Net current-period other comprehensive income (loss), net of tax		(3.0	)		9.1			(7.6	)		(1.5	)

Balance as of January 2, 2021	$	(248.1	)	$	(92.7	)	$	(8.8	)	$	(349.6	)

The amounts reclassified from “Accumulated other comprehensive loss” to increase (decrease) net income were as follows:


(In millions)	2020			2019			2018			Statements of Income Location
Cash flow hedges:
Foreign exchange contracts	$	.7		$	2.1		$	1.3		Cost of products sold
Commodity contracts		(.6	)		(.2	)		.1		Cost of products sold

Total before tax		.1			1.9			1.4
Tax		–			(.5	)		(.3	)	Provision for (benefit from) income taxes

Net of tax		.1			1.4			1.1

Pension and other postretirement benefits		(3.8	)		(445.4	)		(121.4	)	Other non-operating expense (income), net
Tax		.9			179.3			27.6		Provision for (benefit from) income taxes

Net of tax		(2.9	)		(266.1	)		(93.8	)

Total reclassifications for the period	$	(2.8	)	$	(264.7	)	$	(92.7	)

The following table sets forth the income tax expense (benefit) allocated to each component of other comprehensive income (loss):


(In millions)	2020			2019			2018
Foreign currency translation:
Translation gain (loss)	$	27.5		$	(5.5	)	$	(9.1	)
Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior service cost/credit		3.1			19.4			(2.4	)
Reclassifications to net income		.9			179.3			27.6
Cash flow hedges:
Gains (losses) recognized on cash flow hedges		(2.3	)		.2			.3
Reclassifications to net income		–			(.5	)		(.3	)

Income tax expense (benefit) allocated to components of other comprehensive income (loss)	$	29.2		$	192.9		$	16.1

LONG-TERM INCENTIVE COMPENSATION

12 Months Ended

Jan. 02, 2021

LONG TERM INCENTIVE COMPENSATION

NOTE 12. LONG-TERM INCENTIVE COMPENSATION

Stock-Based Awards

Stock-Based Compensation

We grant our annual stock-based compensation awards to eligible employees in February and March and

non-employee

directors in May. Certain awards granted to retirement-eligible employees one year or more before the retirement date vest upon retirement; these awards are accounted for as fully vested one year from the date of grant.

Our 2017 Incentive Award Plan (the “Equity Plan”), a long-term incentive plan for employees and

non-employee

directors, allows us to grant stock-based compensation awards – including stock options, RSUs, PUs, MSUs and DSUs – or a combination of these and other awards. Under the Equity Plan, 5.4 million shares are available for issuance, and each full value award is counted as 1.5 shares for purposes of the number of shares authorized for issuance. Full value awards include RSUs, PUs, and MSUs.

Stock-based compensation expense and the related recognized tax benefit were as follows:


(In millions)	2020		2019		2018
Stock-based compensation expense	$	24.0	$	34.5	$	34.3
Tax benefit		2.9		4.3		4.7

This expense was included in “Marketing, general and administrative expense” in the Consolidated Statements of Income.

As of January 2, 2021, we had approximately $31 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.

Stock Options

Stock options may be granted to employees and

non-employee

directors at no less than 100% of the fair market value of our common stock on the date of the grant and generally vest ratably over a

four-year period. Options expire

ten years from the date of grant.

stock options were granted in fiscal years 2020, 2019 or 2018.

The following table summarizes information related to stock options:


	Number of options (in thousands)			Weighted average exercise price		Weighted average remaining contractual life (in years)		Aggregate intrinsic value (in millions)
Outstanding at December 28, 2019		206.2		$	62.10		4.92	$	14.3
Exercised		(44.1	)		37.36

Outstanding at January 2, 2021		162.1		$	68.84		4.86	$	14.0
Options vested and expected to vest at January 2, 2021		162.1			68.84		4.86		14.0
Options exercisable at January 2, 2021		162.1		$	68.84		4.86	$	14.0

The total intrinsic value of stock options exercised was $4.0 million in 2020, $23.5 million in 2019, and $2.7 million in 2018. We received approximately $2 million in 2020, $10 million in 2019, and $1 million in 2018 from the exercise of stock options. The tax benefit associated with these exercised options was $1.0 million in 2020, $5.7 million in 2019, and $.6

million in 2018. The intrinsic value of a stock option is based on the amount by which the market value of our stock exceeds the exercise price of the option.

Performance Units (“PUs”)

PUs are performance-based awards granted to eligible employees under the Equity Plan. PUs are payable in shares of our common stock at the end of a three- or four-year cliff vesting period provided that designated performance objectives are achieved at the end of the period. Over the performance period, the estimated number of shares of our common stock issuable upon vesting is adjusted upward or downward based on the probability of the achievement of the performance objectives established for the award. The actual number of shares issued can range from 0% to 200% of the target shares at the time of grant. The weighted average grant date fair value for PUs was $115.07, $104.43, and $120.25 in 2020, 2019, and 2018, respectively.

The following table summarizes information related to awarded PUs:


	Number of PUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		427.5		$	101.61
Granted at target		116.9			115.07
Adjustment for above-target performance (1)		109.6			83.05
Vested		(245.8	)		83.05
Forfeited/cancelled		(51.6	)		112.90

Unvested at January 2, 2021		356.6		$	112.31

(1)	Reflects adjustments for the vesting of awards based on above-target performance for the 2017-2019 performance period.

The fair value of vested PUs was $20.4 million in 2020, $25.6 million in 2019, and $11.9 million in 2018.

Market-Leveraged Stock Units (“MSUs”)

MSUs are performance-based awards granted to eligible employees under our equity plans. MSUs are payable in shares of our common stock over a

four-year period provided that the performance objective is achieved as of the end of each vesting period. MSUs accrue dividend equivalents during the vesting period, which are earned and paid only at vesting provided that, at a minimum, threshold-level performance is achieved. The number of shares earned is based upon our absolute total shareholder return at each vesting date and can range from 0% to 200% of the target amount of MSUs subject to vesting. Each of the four vesting periods represents one

tranche of MSUs and the fair value of each of these four

tranches was determined using the Monte-Carlo simulation model, which utilizes multiple input variables, including expected stock price volatility and other assumptions, to estimate the probability of achieving the performance objective established for the award. The weighted average grant date fair value for MSUs was $94.55, $135.85, and $117.75 in 2020, 2019, and 2018, respectively.

The following table summarizes information related to awarded MSUs:


	Number of MSUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		263.4		$	115.71
Granted at target		114.7			94.55
Adjustments for above-target performance (1)		69.0			92.88
Vested		(177.2	)		99.36
Forfeited/cancelled		(34.0	)		112.57

Unvested at January 2, 2021		235.9		$	110.89

(1)	Reflects adjustments for the vesting of awards based on above-target performance for each of the tranches of awards vesting in 2020.

The fair value of vested MSUs was $17.6 million in 2020, $15.9 million in 2019, and $24.0 million in 2018.

Restricted Stock Units (“RSUs”)

RSUs are service-based awards granted to eligible employees and

non-employee

directors under our equity plans. RSUs granted to employees generally vest ratably over a period of three

four years. RSUs granted to

non-employee

directors generally vest over a period of one year. The vesting of RSUs is subject to continued service through the applicable vesting date. If that condition is not met, unvested RSUs are generally forfeited. The weighted average grant date fair value for RSUs was $111.71, $107.18, and $106.44 in 2020, 2019, and 2018, respectively.

The following table summarizes information related to awarded RSUs:


	Number of RSUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		59.7		$	97.56
Granted		32.7			111.71
Vested		(40.4	)		93.70
Forfeited/cancelled		(.6	)		109.24
Unvested at January 2, 2021		51.4		$	109.47

The fair value of vested RSUs was $3.8 million, $4.4 million, and $5.1 million in 2020, 2019, and 2018, respectively.

Cash-Based Awards

Long-Term Incentive Units (“LTI Units”)

LTI Units are cash-based awards granted to employees under our long-term incentive unit plan. LTI Units are service-based awards that generally vest ratably over a four-year period. The settlement value equals the number of vested LTI Units multiplied by the average of the high and low market prices of our common stock on the vesting date. The compensation expense related to these awards is amortized on a straight-line basis and the fair value is remeasured using the estimated percentage of units expected to be earned multiplied by the average of the high and low market prices of our common stock at each

quarter-end.

We also grant performance-based, cash-based awards in the form of performance and market-leveraged LTI Units to eligible employees. Performance LTI Units are payable in cash at the end of a

three-year cliff vesting period provided that certain performance objectives are achieved at the end of the performance period. Market-leveraged LTI Units are payable in cash and vest ratably over a period of four years. The number of performance and market-leveraged LTI Units earned at vesting is adjusted upward or downward based upon the probability of achieving the performance objectives established for the respective award and the actual number of units issued can range from 0% to 200% of the target units subject to vesting. Performance and market-leveraged LTI Units are remeasured using the estimated percentage of units expected to be earned multiplied by the average of the high and low market prices of our common stock at each

quarter-end

over their respective performance periods. The compensation expense related to performance LTI Units is amortized on a straight-line basis over their respective performance periods. The compensation expense related to market-leveraged LTI Units is amortized on a graded-vesting basis over their respective performance periods.

The compensation expense related to LTI Units was $13.8 million in 2020, $19.1 million in 2019, and $12.4 million in 2018. This expense was included in “Marketing, general and administrative expense” in the Consolidated Statements of Income. The total recognized tax benefit related to LTI Units was $3.3 million in 2020, $4.4 million in 2019, and $2.9 million in 2018.

COST REDUCTION ACTIONS

12 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

COST REDUCTION ACTIONS

NOTE 13. COST REDUCTION ACTIONS

Restructuring Charges

We have plans that provide eligible employees with severance benefits in the event of an involuntary termination. We calculate severance using the benefit formulas under the applicable plans. We record restructuring charges from qualifying cost reduction actions for severance and other exit costs (including asset impairment charges and lease and other contract cancellation costs) when they are probable and estimable.

2019/2020 Actions

During fiscal year 2020, we recorded $56 million in restructuring charges, net of reversals, related to our 2019/2020 actions. These charges consisted of severance and related costs for the reduction of approximately 2,160

positions and

asset

impairment charges at numerous locations across our company, which primarily included actions in our LGM and RBIS reportable segments. The actions in our LGM reportable segment were primarily associated with consolidations of operations in North America and its graphics business in Europe, in part in response to

COVID-19.

The actions in our RBIS reportable segment were primarily related to global headcount and footprint reduction, with some actions accelerated and expanded in response to

COVID-19.

During fiscal year 2019, we recorded $25.2 million in restructuring charges related to our 2019/2020 actions. These charges consisted of severance and related costs for the reduction of approximately 370 positions, as well as asset impairment charges.

2018/2019 Actions

In April 2018, we approved a restructuring plan (the “2018 Plan”) to consolidate the European footprint of our LGM reportable segment, which reduced headcount by approximately 390 positions, including temporary labor, in connection with the closure of a manufacturing facility. This reduction was partially offset by headcount additions in other locations, resulting in a net reduction of approximately 150 positions. During fiscal year 2020 and 2019, net restructuring reversals related to the 2018 Plan were

not material. The cumulative charges associated with the 2018 Plan consisted of severance and related costs for the headcount reduction, as well as asset impairment charges. The activities related to the 2018 Plan were substantially completed as of the end of the second quarter of 2019.

Net restructuring reversals during fiscal year 2020 that related to other 2018/2019 actions, were not material. During fiscal year 2019, we recorded $28.2 million in restructuring charges, net of reversals, relating to these other 2018/2019 actions. These charges consisted of severance and related costs for the reduction of approximately 490 positions, as well as asset impairment charges.

Accruals for severance and related costs and lease cancellation costs were included in “Other current liabilities” in the Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets, less selling costs, if applicable. Restructuring charges were included in “Other expense (income), net” in the Consolidated Statements of Income.

During 2020, restructuring charges and payments were as follows:


(In millions)	Accrual at December 28, 2019		Charges, Net of Reversals			Cash Payments			Non-cash Impairment			Foreign Currency Translation		Accrual at January 2, 2021
2019/2020 Actions
Severance and related costs	$	21.9	$	49.8		$	(45.7	)	$	–		$	2.3	$	28.3
Asset impairment charges		–		6.2			–			(6.2	)		–		–

2018/2019 Actions
Severance and related costs		6.5		(.7	)		(6.0	)		–			.2		–
Lease cancellation costs		.3		–			–			–			–		.3

Total	$	28.7	$	55.3		$	(51.7	)	$	(6.2	)	$	2.5	$	28.6

During 2019, restructuring charges and payments were as follows:


(In millions)	Accrual at December 29, 2018		Charges, Net of Reversals		Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at December 28, 2019
2019/2020 Actions
Severance and related costs	$	–	$	21.9	$	–		$	–		$	–		$	21.9
Asset impairment charges		–		3.3		–			(3.3	)		–			–

2018/2019 Actions
Severance and related costs		40.7		24.0		(57.1	)		–			(1.1	)		6.5
Lease cancellation costs		–		.3		–			–			–			.3
Asset impairment charges		–		1.6		–			(1.6	)		–			–

Total	$	40.7	$	51.1	$	(57.1	)	$	(4.9	)	$	(1.1	)	$	28.7

The table below shows the total amount of restructuring charges incurred by reportable segment and Corporate.


(In millions)	2020		2019		2018
Restructuring charges by reportable segment and Corporate
Label and Graphic Materials	$	27.9	$	29.0	$	57.8
Retail Branding and Information Solutions		18.7		9.8		11.9
Industrial and Healthcare Materials		8.4		9.4		4.0
Corporate		.3		2.2		–

Total	$	55.3	$	50.4	$	73.7

TAXES BASED ON INCOME

12 Months Ended

Jan. 02, 2021

Taxes Based on Income

TAXES BASED ON INCOME

NOTE 14. TAXES BASED ON INCOME

Taxes based on income were as follows:


(In millions)	2020			2019			2018
Current:
U.S. federal tax	$	1.1		$	11.0		$	(19.7	)
State taxes		1.9			.5			.8
International taxes		168.5			148.1			134.3
		171.5			159.6			115.4
Deferred:
U.S. federal tax		5.0			(168.0	)		(6.3	)
State taxes		1.6			(8.9	)		2.3
International taxes		(.4	)		(39.4	)		(26.0	)
		6.2			(216.3	)		(30.0	)
Provision for (benefit from) income taxes	$	177.7		$	(56.7	)	$	85.4

The principal items accounting for the difference between taxes computed at the U.S. federal statutory rate and taxes recorded were as follows:


(In millions)	2020			2019			2018
Tax provision computed at the U.S. federal statutory rate (1)	$	154.8		$	52.4		$	116.5
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit (1)		6.9			(12.8	)		3.9
U.S. pension plan settlements and related charges (1)		–			(76.6	)		–
Tax Cuts and Jobs Act (2)		–			–			(34.7	)
Foreign earnings taxed at different rates (3)		51.4			56.2			44.0
GILTI high-tax exclusion election, net (4)		(12.5	)		–			–
Foreign tax structuring and planning transactions (5)		–			(47.9	)		(31.0	)
Excess tax benefits associated with stock-based payments		(3.2	)		(7.8	)		(7.7	)
Valuation allowance		(3.3	)		2.0			10.7
U.S. federal research and development tax credits		(6.2	)		(6.1	)		(6.1	)
Tax contingencies and audit settlements (6)		(5.5	)		(11.8	)		(11.9	)
Other items, net		(4.7	)		(4.3	)		1.7
Provision for (benefit from) income taxes	$	177.7		$	(56.7	)	$	85.4

(1)

Included in 2019 and 2018 are tax effects of the pension plan settlement charges associated with the termination of the ADPP. In 2019 and 2018, tax benefits of $102 million and $19 million on the pretax charges, respectively, were reflected in the tax provision computed at the U.S. federal statutory rate and state taxes, net of federal tax benefit. Moreover, in 2019, the tax benefit of $77 million related to the release of stranded tax effects in AOCI through the income statement was reflected in U.S. pension plan settlements and related charges.

(2)

During 2018, we recognized a net tax benefit of $34.7 million as a result of the TCJA. This amount included our TCJA provisional amount and subsequent adjustments, including items that would otherwise be separately disclosed as state taxes, net of federal tax benefit, tax effects of foreign earnings taxed at different rates, tax contingencies and audit settlements, and other items, net. We finalized our TCJA provisional amount as defined under SEC Staff Accounting Bulletin No. 118 in 2018.

(3)	All years included certain U.S. international tax provisions imposed by the TCJA and foreign earnings taxed in the U.S., net of credits.

(4)

In 2020, we recognized a tax benefit of $12.5 million as a

return-to-provision

adjustment resulting from our decision to elect to exclude certain high-taxed foreign income from our 2019 GILTI inclusions. This election will provide a reversal of certain 2019 GILTI tax expense recognized in 2019. We expect to make the election by amending our 2019 U.S. tax return within the time allowed under applicable regulations.

(5)

In 2019, we recognized a net tax benefit of $47.9 million related to a foreign structuring transaction. This net benefit resulted from the elimination of recapture conditions to which our previously recognized net operating losses were subject. By eliminating these conditions, our losses became permanent, and the offsetting deferred tax liability related to future recapture was released. In 2018, we recognized a net tax benefit of $31 million related to a foreign planning transaction. This net benefit resulted from the recognition of a deferred tax asset in a higher tax rate jurisdiction, partially offset by a taxable gain recognized in a lower effective tax rate jurisdiction.

(6)

In 2020, we recognized a net tax benefit of $5.5 million. This amount included $22.4 million of tax benefits from decreases in certain tax reserves, including associated interest and penalties, as a result of closing tax years, and the effective settlements of certain foreign tax audits, partially offset by $16.6 million of tax charge related to our eligibility for incentive tax rates in a foreign jurisdiction for tax years 2016-2020 and additional interest and penalty accruals.

Income before taxes from our U.S. and international operations was as follows:


(In millions)	2020		2019			2018
U.S.	$	123.8	$	(355.4	)	$	(7.3	)
International		613.5		604.9			562.1

Income before taxes	$	737.3	$	249.5		$	554.8

Our effective tax rate was 24.1%, (22.7)%, and 15.4% for fiscal years 2020, 2019, and 2018, respectively.

Our 2020 provision for (benefit from) income taxes included: (i) $22.1 million of net tax charge related to the tax on global intangible

low-taxed

income (“GILTI”) of our foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from foreign-derived intangible income (“FDII”) and (ii) a $12.5 million

return-to-provision

adjustment recognized in the fourth quarter related to an election to be made on our 2019 amended U.S. tax return.

In July 2020, the U.S. Department of Treasury issued final regulations that provide certain U.S. taxpayers with an annual election to exclude foreign income that is subject to a high effective tax rate from their GILTI inclusions, with an option to retroactively apply them to their 2018 through 2020 tax years. While we have not yet made our determination on whether to make the election for all applicable tax years, we have made the determination to do so for tax year 2019. We continue to evaluate the impact of these regulations and currently anticipate that the benefits from electing these exclusions on our original or amended returns may be significant for certain years. We will reflect the impacts on our provision for (benefit from) income taxes upon the completion of our evaluation within the time allowed under applicable regulations.

Our 2020 provision for (benefit from) income taxes also included: $5.5 million of net tax benefit primarily from decreases in certain tax reserves, including associated interest and penalties, as a result of closing tax years in foreign jurisdictions, partially offset by increases in reserves from our change in judgment and additional interest and penalty accruals. In the fourth quarter of 2020, our eligibility for incentive tax rates in a foreign jurisdiction was denied under audit for tax years 2016-2019. We appealed the decision through the tax administration review process, and anticipate our appeal could continue into the judiciary for a final determination. As a result, we recognized a $14.3 million of tax charge related to our change in judgment on our uncertain tax positions for tax years 2016-2020.

Moreover, our 2020 provision for (benefit from) income taxes was not significantly affected by a tax incentive settlement agreement reached with a foreign tax authority related to self-developed intellectual property. Under the agreement, the impact for applicable tax years was roughly equivalent to the net benefit, after considering related uncertain tax positions previously recognized in our Consolidated Financial Statements.

Our 2019 provision for (benefit from) income taxes included $179 million of tax benefit related to the effective settlement of the ADPP, $102 million of which was the related tax effect on the pretax charge of $444 million, and $77 million of which was related to the release of stranded tax effects in AOCI through the income statement. The tax effects were stranded primarily as a result of the U.S. federal tax rate change under the TCJA. Refer to Note 6, “Pension and Other Postretirement Benefits,” for more information. Our 2019 provision for (benefit from) income taxes also reflected the following items: (i) $47.9 million of tax benefit from a foreign tax structuring transaction resulting in previously recognized tax losses becoming permanent; (ii) $24.7 million of net tax charge related to the tax on GILTI of our foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from FDII; (iii) $11.8 million of net tax benefit from the effective settlement of certain German tax audits and decreases in reserves as a result of closing tax years, partially offset by additional interest and penalty accruals, and increases in reserves from our change in judgment; and (iv) $7.8 million of tax benefit related to excess tax benefits associated with stock-based payments. Effective in 2019, we implemented certain operational structure changes to more closely align with our business strategies, one benefit of which was to reduce our base erosion payments below the statutory threshold. As a result, our 2019 provision for (benefit from) income taxes did not include a tax charge related to Base Erosion Antiabuse Tax (“BEAT”).

Our 2018 provision for (benefit from) income taxes included the following items: (i) $34.7 million of tax benefit for measurement period adjustments to our 2017 TCJA provisional amount in accordance with guidance provided under SEC Staff Accounting Bulletin No. 118; (ii) $31 million of net tax charge for GILTI and BEAT, and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from FDII; (iii) $11.9 million of net tax benefit from the effective settlement of certain German tax audits and decreases in reserves as a result of closing tax years, partially offset by additional interest and penalty accruals, and increases in reserves from our change in judgment; and (iv) $31 million of net tax benefit primarily due to the recognition of a deferred tax asset in a higher tax rate jurisdiction, partially offset by a taxable gain recognized in a lower effective tax rate jurisdiction. Our 2018 provision for (benefit from) income taxes was not significantly impacted by the $10.7 million increase in our valuation allowance primarily due to offsetting changes in deferred taxes and uncertain tax positions.

U.S. Tax Reform

The TCJA enacted in the U.S. in December 2017 significantly changed U.S. corporate income taxation by, among other things, reducing the federal corporate income tax rates to 21%; implementing a modified territorial tax system prospectively by providing a dividend received deduction on certain dividends from our foreign subsidiaries; loss of domestic manufacturing deductions; limitations on the deductibility of our executive compensation and interest expense; and imposing a

one-time

transition tax through a deemed repatriation of accumulated untaxed earnings and profits of foreign subsidiaries.

As of December 29, 2018, we completed our accounting for the income tax effects of the TCJA following the guidance of SAB 118. Specifically, we included $34.7 million of net tax benefit as measurement period adjustments primarily related to (i) $9.5 million of tax charge as an adjustment to the transition tax, reflecting subsequent regulatory and administrative guidance issued by the Internal Revenue Service (“IRS”) and certain state taxing authorities and the finalization of our foreign earnings and profits as well as taxes; (ii) $39.6 million of tax benefit as an adjustment to the remeasurement of deferred taxes as a result of our decision to accelerate certain deductions in conjunction

with the completion of our 2017 U.S. federal income tax return; (iii) $3.6 million of tax charge as an incremental accrual for foreign withholding taxes associated with changes in our indefinite reinvestment assertions after information required to make such determination was obtained; and (iv) $9.4 million of tax benefit from releasing a previously recorded uncertain tax position after we did not take the position on our 2017 U.S. federal income tax return.

Our accumulated earnings in foreign subsidiaries are not indefinitely reinvested. As a result of the

one-time

transition tax and the dividend received deduction prescribed by the TCJA, our accumulated earnings in foreign subsidiaries can generally be repatriated to the U.S. without material tax consequences. As of January 2, 2021, we recorded a deferred tax liability of $39 million related to future tax consequences from repatriating our accumulated earnings in foreign subsidiaries that are not indefinitely reinvested.

Deferred Taxes

Deferred taxes reflect the temporary differences between the amounts at which assets and liabilities are recorded for financial reporting purposes and the amounts utilized for tax purposes. The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:


(In millions)	2020			2019
Accrued expenses not currently deductible	$	24.9		$	25.7
Net operating loss carryforwards		161.4			154.6
Tax credit carryforwards		55.9			46.5
Stock-based compensation		10.7			11.8
Pension and other postretirement benefits		52.4			57.8
Lease liabilities		39.0			30.5
Other assets		32.2			21.3
Valuation allowance		(68.2	)		(67.7	)

Total deferred tax assets (1)		308.3			280.5
Depreciation and amortization		(80.2	)		(41.6	)
Repatriation accrual		(39.0	)		(18.9	)
Foreign operating loss recapture		(3.6	)		(3.4	)
Lease assets		(38.7	)		(29.7	)

Total deferred tax liabilities (1)		(161.5	)		(93.6	)

Total net deferred tax assets	$	146.8		$	186.9

(1)	Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.

We assess the available positive and negative evidence to estimate if sufficient future taxable income is expected to be generated to use existing deferred tax assets. On the basis of our assessment, we record valuation allowances only with respect to the portion of the deferred tax asset that is not

more-likely-than-not

to be realized. Our assessment of the future realizability of our deferred tax assets relies heavily on our forecasted earnings in certain jurisdictions, the relevant carryforward periods, and these forecasted earnings are determined by the manner in which we operate our business. Any changes to our operations may affect our assessment of deferred tax assets considered realizable if the positive evidence no longer outweighs the negative evidence.

Net operating loss carryforwards of foreign subsidiaries at January 2, 2021 and December 28, 2019 were $563 million and $508 million, respectively. Tax credit carryforwards of both domestic and foreign subsidiaries at January 2, 2021 and December 28, 2019 totaled $56 million and $47 million, respectively. If unused, foreign net operating losses and tax credit carryforwards will expire as follows:


(In millions)	Net Operating
Year of Expiry	Losses (1)		Tax Credits
2021	$	2.1	$	.4
2022		5.3		.5
2023		4.3		4.4
2024		3.8		.3
2025		5.9		7.2
2026 - 2040		19.1		36.2
Indefinite life/no expiry		522.7		6.5

Total	$	563.2	$	55.5

(1)	Net operating losses are presented before tax effects and valuation allowance.

Certain indefinite-lived foreign net operating losses may require decades to be fully utilized under our current business model.

At January 2, 2021, we had net operating loss carryforwards in certain states of $664 million before tax effects. Based on our estimates of future state taxable income, it is

more-likely-than-not

that the majority of these carryforwards will not be realized before they expire. Accordingly, a valuation allowance has been recorded on $624 million of these carryforwards.

As of January 2, 2021, our provision for (benefit from) income taxes did not materially benefit from applicable tax holidays in foreign jurisdictions.

Unrecognized Tax Benefits

As of January 2, 2021, our unrecognized tax benefits totaled $72 million, $63 million of which, if recognized, would reduce our annual effective income tax rate. As of December 28, 2019, our unrecognized tax benefits totaled $70 million, $61 million of which, if recognized, would reduce our annual effective income tax rate.

Where applicable, we accrue potential interest and penalties related to unrecognized tax benefits in income tax expense. The interest and penalties we recognized during fiscal years 2020, 2019 and 2018 were not material, individually or in aggregate, to the Consolidated Statements of Income. We have accrued balances of $22 million and $22 million for interest and penalties, net of tax benefit, in the Consolidated Balance Sheets at January 2, 2021 and December 28, 2019, respectively.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is set forth below:


(In millions)	2020			2019
Balance at beginning of year	$	69.9		$	80.8
Additions for tax positions of current year		6.5			7.5
Additions (reductions) for tax positions of prior years, net		5.2			(6.7	)
Settlements with tax authorities		(3.3	)		(1.9	)
Expirations of statutes of limitations		(8.7	)		(8.0	)
Changes due to translation of foreign currencies		2.4			(1.8	)

Balance at end of year	$	72.0		$	69.9

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, primarily as a result of audit settlements and 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 we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. The final determination of tax audits and any related legal proceedings could materially differ from amounts reflected in our tax provision for (benefit from) income taxes and the related liabilities. To date, we and our U.S. subsidiaries have completed the IRS’ Compliance Assurance Process Program through 2017. With limited exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2010.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SEGMENT AND DISAGGREGATED REVENUE INFORMATION

12 Months Ended

Jan. 02, 2021

Segment Reporting [Abstract]

SEGMENT AND DISAGGREGATED REVENUE INFORMATION

NOTE 15. SEGMENT AND DISAGGREGATED REVENUE

INFORMATION

Segment Reporting

We have the following reportable segments:

•

Label and Graphic Materials – manufactures and sells pressure-sensitive label and packaging materials and films for graphic and reflective products;

•

Retail Branding and Information Solutions – designs, manufactures and sells a wide variety of branding and information solutions, including brand and price tickets, tags and labels (including RFID inlays), and related services, supplies and equipment; and

•

Industrial and Healthcare Materials – manufactures and sells performance tapes and other adhesive products for industrial, medical and other applications, as well as fastener solutions.

Intersegment sales are recorded at or near market prices and are eliminated in determining consolidated sales. We evaluate our performance based on income from operations before interest expense and taxes. Corporate expense is excluded from the computation of income from operations for the segments.

We do not disclose total assets by reportable segment since we neither generate nor review that information internally. As our reporting structure is neither organized nor reviewed internally by country, results by individual country are not provided.

Disaggregated Revenue Information

Disaggregated revenue information is shown below in the manner that best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue from our LGM reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue from our RBIS reportable segment is shown by product group.


(In millions)	2020		2019		2018

Net sales to unaffiliated customers
Label and Graphic Materials:
U.S.	$	1,294.3	$	1,246.6	$	1,256.0
Europe		1,758.1		1,767.9		1,851.3
Asia		1,040.8		1,065.0		1,081.2
Latin America		340.3		375.4		367.8
Other international		281.6		291.0		294.8

Total Label and Graphic Materials		4,715.1		4,745.9		4,851.1

Retail Branding and Information Solutions:
Apparel		1,432.3		1,458.5		1,441.7
Printer Solutions		198.6		191.8		171.5

Total Retail Branding and Information Solutions		1,630.9		1,650.3		1,613.2

Industrial and Healthcare Materials		625.5		673.9		694.7

Net sales to unaffiliated customers	$	6,971.5	$	7,070.1	$	7,159.0

Revenue by geographic area is shown below. Revenue is attributed to geographic areas based on the location from which products are shipped.


(In millions)	2020		2019		2018

Net sales to unaffiliated customers
U.S.	$	1,683.6	$	1,638.8	$	1,625.1
Europe		2,164.7		2,160.2		2,251.4
Asia		2,378.5		2,458.5		2,473.2
Latin America		440.3		498.3		490.0
Other international		304.4		314.3		319.3

Net sales to unaffiliated customers	$	6,971.5	$	7,070.1	$	7,159.0

Net sales to unaffiliated customers in Asia included sales in China (including Hong Kong) of $1.31 billion in 2020, $1.38 billion in 2019, and $1.43 billion in 2018.

Additional Segment Information

Additional financial information by reportable segment is shown below.


(In millions)	2020			2019			2018

Intersegment sales
Label and Graphic Materials	$	80.3		$	80.2		$	78.7
Retail Branding and Information Solutions		27.5			20.6			4.7
Industrial and Healthcare Materials		6.4			8.8			8.8

Intersegment sales	$	114.2		$	109.6		$	92.2

Income before taxes
Label and Graphic Materials	$	688.8		$	601.5		$	568.2
Retail Branding and Information Solutions		144.7			196.6			170.4
Industrial and Healthcare Materials		58.2			60.0			62.9
Corporate expense		(82.5	)		(87.6	)		(83.4	)
Interest expense		(70.0	)		(75.8	)		(58.5	)
Other non-operating expense (income), net		(1.9	)		(445.2	)		(104.8	)

Income before taxes	$	737.3		$	249.5		$	554.8

Capital expenditures (1)
Label and Graphic Materials	$	87.3		$	137.8		$	151.5
Retail Branding and Information Solutions		101.6			63.1			57.1
Industrial and Healthcare Materials		17.3			24.2			19.3

Capital expenditures	$	206.2		$	225.1		$	227.9

Depreciation and amortization expense (1)
Label and Graphic Materials	$	107.0		$	100.2		$	104.7
Retail Branding and Information Solutions		71.6			52.6			49.0
Industrial and Healthcare Materials		26.7			26.2			27.3

Depreciation and amortization expense	$	205.3		$	179.0		$	181.0

Other expense (income), net by reportable segment
Label and Graphic Materials	$	22.2		$	28.3		$	61.8
Retail Branding and Information Solutions		22.7			9.9			11.4
Industrial and Healthcare Materials		8.4			9.4			(1.0	)
Corporate		.3			5.6			(2.3	)

Other expense (income), net	$	53.6		$	53.2		$	69.9

Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	49.1		$	45.3		$	63.0
Asset impairment charges and lease cancellation costs		6.2			5.1			10.7
Other items:
Transaction and related costs		4.2			2.6			–
Legal settlement		–			3.4			–
Argentine peso remeasurement transition loss		–			–			3.4
Other restructuring-related charge		–			–			.5
Net gain on investments		(5.4	)		–			–
Net gain on sales of assets		(.5	)		(3.2	)		(2.7	)
Reversal of acquisition-related contingent consideration		–			–			(5.0	)

Other expense (income), net	$	53.6		$	53.2		$	69.9

(1)	Corporate capital expenditures and depreciation and amortization expense are allocated to the segments based on their percentage of consolidated net sales.

Property, plant and equipment, net, in our U.S. and international operations were as follows:


(In millions)	2020		2019		2018

Property, plant and equipment, net
U.S.	$	403.1	$	366.9	$	317.3
International		940.6		843.8		820.1

Property, plant and equipment, net	$	1,343.7	$	1,210.7	$	1,137.4

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (f)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jan. 02, 2021

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

NOTE 16. SUPPLEMENTAL FINANCIAL INFORMATION

Inventories

Net inventories at

year-end

were as follows:


(In millions)	2020		2019
Raw materials	$	268.6	$	231.6
Work-in-progress		210.3		201.0
Finished goods		238.3		230.4

Inventories, net	$	717.2	$	663.0

Property, Plant and Equipment

Major classes of property, plant and equipment, stated at cost, at

year-end

were as follows:


(In millions)	2020			2019
Land	$	26.1		$	25.1
Buildings and improvements		746.4			687.4
Machinery and equipment		2,538.6			2,316.9
Construction-in-progress		165.2			142.2

Property, plant and equipment		3,476.3			3,171.6
Accumulated depreciation		(2,132.6	)		(1,960.9	)

Property, plant and equipment, net	$	1,343.7		$	1,210.7

Software

Capitalized software costs at

year-end

were as follows:


(In millions)	2020			2019
Cost	$	506.5		$	487.2
Accumulated amortization		(370.1	)		(334.4	)

Software, net	$	136.4		$	152.8

Software amortization expense was $29.0 million in 2020, $20.8 million in 2019, and $20.2 million in 2018.

Allowance for Credit Losses

Given the short-term nature of trade receivables, our allowance for credit losses is based on the financial condition of customers, the aging of receivable balances, our historical collections experience, and current and expected future macroeconomic and market conditions, including as a result of

COVID-19.

Balances are written off in the period in which they are determined to be uncollectible.

The activity related to our allowance for credit losses in 2020 was as follows:


(In millions)
Balance at beginning of year	$	27.1
Provision for credit losses (1)		20.3
Amounts written off		(5.7	)
Other, including foreign currency translation		2.9
Balance at end of year	$	44.6

(1)	Primarily reflects estimated impacts on customers from COVID-19.

Provisions for credit losses were $10.6 million and $5.1 million in 2019 and 2018, respectively.

Equity Method Investment

As of January 2, 2021, we held a 22.9% interest in PragmatIC Printing Limited (“PragmatIC”), a company that develops flexible electronics technology. The carrying value of this investment was $5.3 million and $8.8 million as of January 2, 2021 and December 28, 2019, respectively, and was included in “Other assets” in the Consolidated Balance Sheets. In 2019, we made an additional investment in PragmatIC of approximately $4 million.

Research and Development

Research and development expense, which is included in “Marketing, general and administrative expense” in the Consolidated Statements of Income, was as follows:


(In millions)	2020		2019		2018
Research and development expense	$	112.8	$	92.6	$	98.2

Supplemental Cash Flow Information

Cash paid for interest and income taxes was as follows:


(In millions)	2020		2019		2018
Interest	$	69.6	$	74.3	$	54.9
Income taxes, net of refunds		203.4		155.0		153.5

Foreign Currency Effects

Gains and losses resulting from foreign currency transactions are included in income in the period incurred. Transactions in foreign currencies (including receivables, payables and loans denominated in currencies other than the functional currency), including hedging impacts, decreased net income by $7.2 million, $9.7 million, and $13.4 million in 2020, 2019, and 2018, respectively.

Deferred Revenue

Deferred revenue primarily relates to constrained variable consideration on supply agreements for sales of products, as well as to payments received in advance of performance under a contract. Deferred revenue is recognized as revenue as or when we perform under a contract.

The following table shows the amounts and balance sheet locations of deferred revenue as of January 2, 2021 and December 28, 2019:


(In millions)	January 2, 2021		December 28, 2019
Other current liabilities		$18.9		$12.6
Long-term retirement benefits and other liabilities		1.4		.3

Total deferred revenue		$20.3		$12.9

Revenue recognized from amounts included in deferred revenue as of December 28, 2019 was $12.0 million in 2020. Revenue recognized from amounts included in deferred revenue as of December 29, 2018 was $10.8 million in 2019. Revenue recognized from amounts included in deferred revenue as of December 30, 2017 was $12.2 million in 2018. This revenue was included in “Net sales” in the Consolidated Statements of Income.

QUARTERLY FINANCIAL INFORMATION (Unaudited)

12 Months Ended

Jan. 02, 2021

QUARTERLY FINANCIAL INFORMATION (Unaudited)

QUARTERLY FINANCIAL INFORMATION (Unaudited)

NOTE 17. QUARTERLY FINANCIAL INFORMATION (Unaudited)


(In millions, except per share data)	First Quarter			Second Quarter		Third Quarter		Fourth Quarter

2020
Net sales	$	1,723.0		$	1,528.5	$	1,729.1	$	1,990.9
Gross profit		485.1			382.9		484.2		571.1
Net income		134.2			79.7		150.5		191.5
Net income per common share		1.61			.96		1.80		2.30
Net income per common share, assuming dilution		1.60			.95		1.79		2.28


2019
Net sales	$	1,740.1		$	1,795.7	$	1,761.4	$	1,772.9
Gross profit		465.4			482.3		471.7		484.7
Net income (loss) (1)		(146.9	)		143.4		144.6		162.5
Net income (loss) per common share		(1.74	)		1.70		1.72		1.95
Net income (loss) per common share, assuming dilution		(1.74	)		1.69		1.71		1.92

(1)	In the first quarter of 2019, we recognized final settlement charges associated with the termination of the ADPP. Refer to Note 6, “Pension and Other Postretirement Benefits,” for more information.

“Other expense (income), net” by type for each quarter is presented below.


(In millions)	First Quarter			Second Quarter		Third Quarter		Fourth Quarter

2020
Restructuring charges:
Severance and related costs	$	2.4		$	37.5	$	6.5	$	2.7
Asset impairment charges		–			1.8		4.4		–
Other items:
Loss (gain) on investments		–			–		1.5		(6.9	)
Transaction and related costs		2.5			.7		–		1.0
Gain on sale of assets		–			–		–		(.5	)


Other expense (income), net	$	4.9		$	40.0	$	12.4	$	(3.7	)

2019
Restructuring charges:
Severance and related costs	$	10.4		$	6.1	$	3.3	$	25.5
Asset impairment charges and lease cancellation costs		.3			1.4		–		3.4
Other items:
Legal settlement		–			–		3.4		–
Transaction costs		–			–		–		2.6
Net gain on sales of assets		(3.2	)		–		–		–


Other expense (income), net	$	7.5		$	7.5	$	6.7	$	31.5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jan. 02, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

die-cutting.

The

coronavirus/COVID-19

pandemic (collectively referred to herein as

“COVID-19”)

Principles of Consolidation

Fiscal Year

Normally, our fiscal years consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks. Our 2020 fiscal year consisted of a

53-week

period ending January 2, 2021. Our 2019 and 2018 fiscal years consisted of

52-week

periods ending December 28, 2019 and December 29, 2018, respectively.

Accounting Guidance Updates

Credit Losses

Use of Estimates

Cash and Cash Equivalents

Cash and cash equivalents generally consist of cash on hand, deposits in banks,

cash-in-transit,

Trade Accounts Receivable

•

The financial condition of customers;

•

The aging of receivable balances;

•

Our historical collection experience; and

•

Current and expected future macroeconomic and market conditions.

No single customer represented 10% or more of our net sales in, or trade accounts receivable at,

year-end

Inventories

We state inventories at the lower of cost or net realizable value and categorized as raw materials,

work-in-progress,

or finished goods. Cost is determined using the

first-in,

first-out

method. Inventory reserves are

Property, Plant and Equipment

We generally compute depreciation using the

straight-line

Leases

Software

Impairment of Long-lived Assets

Goodwill and Other Intangibles Resulting from Business Acquisitions

more-likely-than-not

We test indefinite-lived intangible assets, consisting of trade names and trademarks, for impairment in the fourth quarter or whenever events or circumstances indicate that it is

more-likely-than-not

See Note 3, “Goodwill and Other Intangibles Resulting from Business Acquisitions,” for more information.

Foreign Currency

Financial Instruments

In the Consolidated Statements of Cash Flows, hedges are classified in the same category as the item hedged, primarily in operating activities.

We also utilized certain foreign-currency-denominated debt to mitigate our foreign currency translation exposure from our net investment in foreign operations.

See Note 5, “Financial Instruments,” for more information.

Fair Value Measurements

Revenue Recognition

Our payment terms with our customers are generally consistent with those used in our industries and the regions in which we operate.

Research and Development

Research and development costs are related to research, design, and testing of new products and applications, which we expense as incurred.

Long-Term Incentive Compensation

No long-term incentive compensation expense was capitalized in 2020, 2019, or 2018.

Valuation of Stock-Based Awards

We estimated the fair value of stock options as of the date of grant using the Black-Scholes option-pricing

model. This model requires input assumptions for our expected dividend yield, expected stock price volatility, risk-free interest rate, and the expected option term.

Valuation of Cash-Based Awards

Cash-based awards consist of long-term incentive units (“LTI Units”) granted to eligible employees. We classify LTI Units are as liability awards and remeasure them at each

quarter-end

Forfeitures

See Note 12, “Long-term Incentive Compensation,” for more information.

Taxes Based on Income

more-likely-than-not

threshold for recognition and measurement for tax positions we take or expect to take on a tax return.

See Note 14, “Taxes Based on Income,” for more information.

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Jan. 02, 2021

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

Schedule of changes in net carrying amount of goodwill

Changes in the net carrying amount of goodwill for 2020 and 2019 by reportable segment were as follows:


(In millions)	Label and Graphic Materials			Retail Branding and Information Solutions			Industrial and Healthcare Materials			Total
Goodwill as of December 29, 2018	$	415.5		$	349.7		$	176.6		$	941.8
Translation adjustments		(7.7	)		(.4	)		(2.9	)		(11.0	)
Goodwill as of December 28, 2019		407.8			349.3			173.7			930.8
Acquisitions (1)		45.8			112.7			–			158.5
Translation adjustments		27.3			9.8			10.0			47.1
Goodwill as of January 2, 2021	$	480.9		$	471.8		$	183.7		$	1,136.4

(1)

Summary of the amounts and weighted useful lives of finite-lived intangible assets


	Amount (in millions)		Weighted average amortization period (in years)
Patented and other developed technology	$	62.5		11
Customer relationships		41.4		7
Trade names and trademarks		2.2		5

Schedule of finite-lived intangible assets


	2020						2019
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	373.3	$	254.1	$	119.2	$	319.5	$	238.7	$	80.8
Patented and other developed technology		147.3		69.8		77.5		81.7		61.3		20.4
Trade names and trademarks		28.2		22.2		6.0		24.3		19.8		4.5
Other intangibles		.2		.2		–		.2		.2		–
Total	$	549.0	$	346.3	$	202.7	$	425.7	$	320.0	$	105.7

Estimated amortization expense for finite lived intangible assets


(In millions)	Estimated Amortization Expense
2021	$	25.1
2022		24.0
2023		23.0
2024		21.2
2025		20.4

DEBT (Tables)

12 Months Ended

Jan. 02, 2021

DEBT

Schedule of long-term debt, including its respective interest rates, at year-end


(In millions)	2020		2019
Long-term debt
Medium-term notes:
Series 1995 due 2020 through 2025	$	30.0	$	45.0
Long-term notes:
Senior notes due 2020 at 5.4%		–		250.0
Senior notes due 2023 at 3.4%		249.3		249.1
Senior notes due 2025 at 1.25% (1)		612.1		553.4
Senior notes due 2028 at 4.875%		494.6		493.9
Senior notes due 2030 at 2.650%		494.2		–
Senior notes due 2033 at 6.0%		149.0		148.9
Less amount classified as current		–		(265.0	)
Total long-term debt (2)	$	2,029.2	$	1,475.3

(1)	These senior notes are euro-denominated.

(2)	Includes unamortized debt issuance cost and debt discount of $8.7 million and $4.9 million, respectively, as of year-end 2020 and $5.6 million and $5.7 million, respectively, as of year-end 2019.

Schedule of maturities of long term debt for each of the next five fiscal years and thereafter


Year	(In millions)
2021	$	–
2022		–
2023		250.0
2024		–
2025		644.9
2026 and thereafter		1,147.9

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jan. 02, 2021

Other Derivatives

Fair value and balance sheet locations of derivatives

The following table shows the fair value and balance sheet locations of other derivatives as of January 2, 2021 and December 28, 2019:


	Asset					Liability
(In millions)	Balance Sheet Location	2020		2019		Balance Sheet Location	2020		2019
Foreign exchange contracts	Other current assets	$	5.1	$	4.8	Other current liabilities	$	8.4	$	4.7
Commodity contracts	Other current assets		.1		–	Other current liabilities		.1		–
		$	5.2	$	4.8		$	8.5	$	4.7

Components of the net gains (losses) recognized in income related to other derivative instruments, which are not designated as hedging instruments


(In millions)	Statements of Income Location		2020			2019			2018
Foreign exchange contracts	Cost of products sold	$	1.9		$	(1.5	)	$	4.5
Foreign exchange contracts	Marketing, general and administrative expense		(14.2	)		3.5			(27.0	)
		$	(12.3	)	$	2.0		$	(22.5	)

Net Investment Hedge

Components of the gain (loss), before tax, recognized in Accumulated other comprehensive loss related to the net investment hedge


(In millions)	2020		2019		2018
Foreign currency denominated debt	$	–	$	6.8	$	1.3

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Jan. 02, 2021

Defined Benefit Plans

Schedule of plan benefit obligations


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$	75.7		$	811.7		$	868.5		$	755.8
Service cost		–			17.8			–			15.6
Interest cost		1.8			11.0			9.0			14.8
Participant contribution		–			3.7			–			4.1
Amendments		–			.4			–			1.8
Actuarial (gain) loss		7.1			53.5			(27.1	)		56.8
Benefits paid		(7.3	)		(21.1	)		(20.7	)		(21.3	)
Settlements (1)		–			(2.4	)		(754.0	)		(4.5	)
Foreign currency translation		–			79.3			–			(11.4	)
Projected benefit obligations at end of year	$	77.3		$	953.9		$	75.7		$	811.7
Accumulated benefit obligations at end of year	$	77.3		$	883.6		$	75.7		$	754.0

(1)	In 2020, settlements in our international plans related to lump-sum payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to lump-sum payments in Switzerland.

Schedule of plan assets


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in plan assets
Plan assets at beginning of year	$	–		$	734.4		$	735.6		$	631.8
Actual return on plan assets		–			91.5			20.7			118.5
Employer contributions (1)		7.3			17.2			18.4			13.6
Participant contributions		–			3.7			–			4.1
Benefits paid		(7.3	)		(21.1	)		(20.7	)		(21.3)
Settlements (2)		–			(2.4	)		(754.0	)		(4.5)
Foreign currency translation		–			73.9			–			(7.8)
Plan assets at end of year	$	–		$	897.2		$	–		$	734.4

(1)	In 2019, we contributed $10 million to the ADPP to pay the remaining liabilities associated with its termination.

(2)	In 2020, settlements in our international plans related to lump-sum payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to lump-sum payments in Switzerland.

Schedule of funded status


	Pension Benefits
	2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l
Funded status of the plans
Other assets	$	–		$	92.4		$	–		$	50.8
Other accrued liabilities		(9.1	)		(1.5	)		(7.5	)		(2.4	)
Long-term retirement benefits and other liabilities (1)		(68.2	)		(147.6	)		(68.2	)		(125.7	)
Plan assets less than benefit obligations	$	(77.3	)	$	(56.7	)	$	(75.7	)	$	(77.3	)

(1)	In accordance with our funding strategy, we have the option to fund certain of our U.S. liabilities with proceeds from our company-owned life insurance policies.

Schedule of weighted-average assumptions used to determine year-end benefit obligations


	Pension Benefits
	2020						2019
	U.S.			Int’l			U.S.			Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate		2.02	%		1.26	%		2.93	%		1.66	%
Compensation rate increase		–			2.15			–			2.21

Schedule of pre-tax amounts, recognized in "Accumulated other comprehensive loss"


	Pension Benefits
	2020					2019
(In millions)	U.S.		Int’l			U.S.		Int’l
Net actuarial loss	$	18.2	$	83.3		$	15.5	$	101.9
Prior service (credit) cost		–		(3.9	)		–		(4.3	)

Net amount recognized in accumulated other comprehensive loss	$	18.2	$	79.4		$	15.5	$	97.6

Schedule of pretax amounts, including that of discontinued operations, recognized in "Other comprehensive loss (income)"


	Pension Benefits
	2020						2019						2018
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l
Net actuarial loss (gain)	$	3.5		$	(13.5	)	$	(44.6	)	$	(42.7	)	$	33.5		$	(27.2)
Prior service credit		–			.4			–			1.8			–			–
Amortization of unrecognized:
Net actuarial gain		(.6	)		(5.2	)		(.5	)		(4.0	)		(21.2	)		(8.1)
Prior service credit (cost)		–			.4			–			.4			(.8	)		.5
Settlements		(.2	)		(.3	)		(442.8	)		(.6	)		(92.0	)		(1.7	)

Net amount recognized in other comprehensive loss (income)	$	2.7		$	(18.2	)	$	(487.9	)	$	(45.1	)	$	(80.5	)	$	(36.5	)

Schedule of components of net periodic benefit cost (credit)


	Pension Benefits
	2020					2019					2018
(In millions)	U.S.		Int’l			U.S.		Int’l			U.S.			Int’l
Service cost	$	–	$	17.8		$	–	$	15.6		$	–		$	19.2
Interest cost		1.8		11.0			2.7		14.8			34.5			15.7
Actuarial loss (gain)		3.7		–			2.5		–			(.6	)		–
Expected return on plan assets		–		(18.5	)		–		(21.0	)		(42.5	)		(23.8	)
Amortization of actuarial loss		.6		5.2			.5		4.0			21.2			8.1
Amortization of prior service (credit) cost		–		(.4	)		–		(.4	)		.8			(.5	)
Recognized loss on settlements (1)		.2		.3			443.5		.6			92.0			1.7

Net periodic benefit cost (credit)	$	6.3	$	15.4		$	449.2	$	13.6		$	105.4		$	20.4

(1)

In 2020, settlements in the U.S. related to a

non-qualified

plan; settlements in our international plans related to

lump-sum

payments in Belgium, France and for certain expatriate employees. In 2019, settlements in the U.S. related to the ADPP termination; settlements in our international plans related to

lump-sum

payments in Switzerland. In 2018, settlements in the U.S. related to

lump-sum

payments associated with the ADPP and two nonqualified benefit plans; settlements in our international plans related to

lump-sum

payments in the United Kingdom and France.

Schedule of weighted-average assumptions used to determine net periodic cost


	Pension Benefits

	2020						2019						2018
	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Discount rate		2.89	%		1.66	%		3.73	%		2.39	%		3.72	%		2.25	%
Expected return on assets		–			2.79			–			3.38			7.00			3.78
Compensation rate increase		–			2.21			–			2.23			–			2.26

Schedule of defined benefit plan contributions


(In millions)


U.S. pension plans	$	9.2
International pension plans		13.4

Schedule of anticipated future benefit payments


	Pension Benefits
(In millions)	U.S.		Int’l

2021	$	9.2	$	23.0
2022		6.9		25.1
2023		6.4		27.0
2024		6.7		26.0
2025		6.1		26.0

2026-2030		24.8		168.4

International

Defined Benefit Plans

Schedule of fair value of plan assets

The following table sets forth, by level within the fair value hierarchy (as applicable), international plan assets at fair value:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
2020
Cash	$	3.8	$	3.8	$	–	$	–
Insurance contracts		41.2		–		–		41.2
Pooled funds – fixed income securities (1)		469.9
Pooled funds – equity securities (1)		332.8
Pooled funds – other investments (1)		49.5
Total international plan assets at fair value	$	897.2
2019
Cash	$	1.2	$	1.2	$	–	$	–
Insurance contracts		36.3		–		–		36.3
Pooled funds – fixed income securities (1)		329.9
Pooled funds – equity securities (1)		268.8
Pooled funds – other investments (1)		98.2
Total international plan assets at fair value	$	734.4

(1)	Pooled funds that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to reconcile to total international plan assets.

Schedule of reconciliation of Level 3 assets

The following table presents a reconciliation of Level 3 international plan asset activity during the year ended January 2, 2021:


	Level 3 Assets
(In millions)	Insurance Contracts
Balance at December 28, 2019	$	36.3
Net realized and unrealized gain		.5
Purchases		4.0
Settlements		(3.6	)
Impact of changes in foreign currency exchange rates		4.0
Balance at January 2, 2021	$	41.2

COMMITMENTS AND LEASES (Tables)

12 Months Ended

Jan. 02, 2021

Leases [Abstract]

Supplemental cost information related to leases


(In millions)	2020		2019
Operating lease costs	$	63.1	$	65.4

Supplemental balance sheet information related to leases

Supplemental balance sheet information related to leases is shown below.


(In millions)	Balance Sheet Location	2020		2019
Assets
Operating	Other assets	$	161.3	$	138.1
Finance (1)	Property, plant and equipment, net		38.2		36.1
Total leased assets		$	199.5	$	174.2
Liabilities
Current:
Operating	Other current liabilities	$	44.3	$	41.4
Finance	Short-term borrowings and current portion of long-term debt and finance leases		5.6		4.5
Non-current:
Operating	Long-term retirement benefits and other liabilities		116.0		98.9
Finance	Long-term debt and finance leases		22.9		24.0
Total lease liabilities		$	188.8	$	168.8

(1)	Finance lease assets are net of accumulated amortization of $8.3 million and $5.7 million as of January 2, 2021 and December 28, 2019, respectively.

Supplemental cash flow information related to leases

Supplemental cash flow information related to leases is shown below.


(In millions)	2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	54.9	$	53.1
Operating lease assets obtained in exchange for operating lease liabilities		48.4		32.6

Schedule of weighted average remaining lease term and discount rate information


	2020
Weighted average remaining lease term (in years):
Operating		6.2
Finance		3.2
Weighted average discount rate (percentage):
Operating		4.3	%
Finance		2.9

Schedule of operating and finance lease liabilities by maturity date

Operating and finance lease liabilities by maturity date from January 2, 2021 are shown below.


(In millions)	Operating Leases			Finance Leases
2021	$	47.9		$	14.1
2022		34.7			5.5
2023		25.4			4.8
2024		19.5			4.5
2025		15.3			1.3
2026 and thereafter		40.8			.1
Total lease payments		183.6			30.3
Less: imputed interest		(23.3	)		(1.8	)
Present value of lease liabilities	$	160.3		$	28.5

CONTINGENCIES (Tables)

12 Months Ended

Jan. 02, 2021

Loss Contingency [Abstract]

Schedule of activity related to our environmental liabilities

The activity related to our environmental liabilities in 2020 and 2019 was as follows:


(In millions)	2020			2019
Balance at beginning of year	$	21.4		$	20.0
Charges, net of reversals		3.0			7.4
Payments		(3.3	)		(6.0	)
Balance at end of year	$	21.1		$	21.4

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 02, 2021

Fair Value Disclosures [Abstract]

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 January 2, 2021:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	33.6	$	27.4	$	6.2	$	–
Derivative assets		5.2		.1		5.1		–
Bank drafts		12.8		12.8		–		–
Liabilities
Cross-currency swap	$	36.7	$	–	$	36.7	$	–
Derivative liabilities		9.5		.3		9.2		–

The following table provides the assets and liabilities carried at fair value, measured on a recurring basis, as of December 28, 2019:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	30.6	$	26.0	$	4.6	$	–
Derivative assets		5.2		–		5.2		–
Bank drafts		21.3		21.3		–		–
Liabilities
Derivative liabilities	$	6.0	$	.4	$	5.6	$	–

NET INCOME PER COMMON SHARE (Tables)

12 Months Ended

Jan. 02, 2021

Earnings Per Share [Abstract]

Schedule of net income per common share

Net income per common share was computed as follows:


(In millions, except per share amounts)		2020		2019		2018
(A) Net income	$	555.9	$	303.6	$	467.4
(B) Weighted average number of common shares outstanding		83.4		84.0		87.3
Dilutive shares (additional common shares issuable under stock-based awards)		.7		1.0		1.3
(C) Weighted average number of common shares outstanding, assuming dilution		84.1		85.0		88.6
Net income per common share (A) ÷ (B)	$	6.67	$	3.61	$	5.35
Net income per common share, assuming dilution (A) ÷ (C)	$	6.61	$	3.57	$	5.28

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION (Tables)

12 Months Ended

Jan. 02, 2021

Stockholders' Equity Note [Abstract]

Schedule of changes in "Accumulated other comprehensive loss" (net of tax)


(In millions)	Foreign Currency Translation			Pension and Other Postretirement Benefits			Cash Flow Hedges			Total
Balance as of December 29, 2018	$	(247.4	)	$	(434.3	)	$	(.3	)	$	(682.0	)
Other comprehensive income (loss) before reclassifications, net of tax		2.3			66.4			.5			69.2
Reclassifications to net income, net of tax		–			266.1			(1.4	)		264.7

Net current-period other comprehensive income (loss), net of tax		2.3			332.5			(.9	)		333.9
Balance as of December 28, 2019	$	(245.1	)	$	(101.8	)	$	(1.2	)	$	(348.1	)
Other comprehensive income (loss) before reclassifications, net of tax		(3.0	)		6.2			(7.5	)		(4.3	)
Reclassifications to net income, net of tax		–			2.9			(.1	)		2.8

Net current-period other comprehensive income (loss), net of tax		(3.0	)		9.1			(7.6	)		(1.5	)

Balance as of January 2, 2021	$	(248.1	)	$	(92.7	)	$	(8.8	)	$	(349.6	)

Schedule of amounts reclassified from "Accumulated other comprehensive loss" to increase (decrease) net income

The amounts reclassified from “Accumulated other comprehensive loss” to increase (decrease) net income were as follows:


(In millions)	2020			2019			2018			Statements of Income Location
Cash flow hedges:
Foreign exchange contracts	$	.7		$	2.1		$	1.3		Cost of products sold
Commodity contracts		(.6	)		(.2	)		.1		Cost of products sold

Total before tax		.1			1.9			1.4
Tax		–			(.5	)		(.3	)	Provision for (benefit from) income taxes

Net of tax		.1			1.4			1.1

Pension and other postretirement benefits		(3.8	)		(445.4	)		(121.4	)	Other non-operating expense (income), net
Tax		.9			179.3			27.6		Provision for (benefit from) income taxes

Net of tax		(2.9	)		(266.1	)		(93.8	)

Total reclassifications for the period	$	(2.8	)	$	(264.7	)	$	(92.7	)

Schedule of income tax expense (benefit) allocated to each component of other comprehensive income (loss)

The following table sets forth the income tax expense (benefit) allocated to each component of other comprehensive income (loss):


(In millions)	2020			2019			2018
Foreign currency translation:
Translation gain (loss)	$	27.5		$	(5.5	)	$	(9.1	)
Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior service cost/credit		3.1			19.4			(2.4	)
Reclassifications to net income		.9			179.3			27.6
Cash flow hedges:
Gains (losses) recognized on cash flow hedges		(2.3	)		.2			.3
Reclassifications to net income		–			(.5	)		(.3	)

Income tax expense (benefit) allocated to components of other comprehensive income (loss)	$	29.2		$	192.9		$	16.1

LONG-TERM INCENTIVE COMPENSATION (Tables)

12 Months Ended

Jan. 02, 2021

Long-Term Incentive Compensation

Summary of stock-based compensation expense and the related recognized tax benefit


(In millions)	2020		2019		2018
Stock-based compensation expense	$	24.0	$	34.5	$	34.3
Tax benefit		2.9		4.3		4.7

Stock Options

Long-Term Incentive Compensation

Summary of information related to stock options


	Number of options (in thousands)			Weighted average exercise price		Weighted average remaining contractual life (in years)		Aggregate intrinsic value (in millions)
Outstanding at December 28, 2019		206.2		$	62.10		4.92	$	14.3
Exercised		(44.1	)		37.36

Outstanding at January 2, 2021		162.1		$	68.84		4.86	$	14.0
Options vested and expected to vest at January 2, 2021		162.1			68.84		4.86		14.0
Options exercisable at January 2, 2021		162.1		$	68.84		4.86	$	14.0

Performance Units (PS)

Long-Term Incentive Compensation

Summary of information related to awarded PUs


	Number of PUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		427.5		$	101.61
Granted at target		116.9			115.07
Adjustment for above-target performance (1)		109.6			83.05
Vested		(245.8	)		83.05
Forfeited/cancelled		(51.6	)		112.90

Unvested at January 2, 2021		356.6		$	112.31

Market-leveraged stock units (MSUs)

Long-Term Incentive Compensation

Summary of information related to awarded MSUs


	Number of MSUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		263.4		$	115.71
Granted at target		114.7			94.55
Adjustments for above-target performance (1)		69.0			92.88
Vested		(177.2	)		99.36
Forfeited/cancelled		(34.0	)		112.57

Unvested at January 2, 2021		235.9		$	110.89

Restricted Stock Units (RSUs)

Long-Term Incentive Compensation

Summary of information related to awarded RSUs


	Number of RSUs (in thousands)			Weighted average grant-date fair value
Unvested at December 28, 2019		59.7		$	97.56
Granted		32.7			111.71
Vested		(40.4	)		93.70
Forfeited/cancelled		(.6	)		109.24
Unvested at January 2, 2021		51.4		$	109.47

COST REDUCTION ACTIONS (Tables)

12 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

Restructuring charges and payments

During 2020, restructuring charges and payments were as follows:


(In millions)	Accrual at December 28, 2019		Charges, Net of Reversals			Cash Payments			Non-cash Impairment			Foreign Currency Translation		Accrual at January 2, 2021
2019/2020 Actions
Severance and related costs	$	21.9	$	49.8		$	(45.7	)	$	–		$	2.3	$	28.3
Asset impairment charges		–		6.2			–			(6.2	)		–		–

2018/2019 Actions
Severance and related costs		6.5		(.7	)		(6.0	)		–			.2		–
Lease cancellation costs		.3		–			–			–			–		.3

Total	$	28.7	$	55.3		$	(51.7	)	$	(6.2	)	$	2.5	$	28.6

During 2019, restructuring charges and payments were as follows:


(In millions)	Accrual at December 29, 2018		Charges, Net of Reversals		Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at December 28, 2019
2019/2020 Actions
Severance and related costs	$	–	$	21.9	$	–		$	–		$	–		$	21.9
Asset impairment charges		–		3.3		–			(3.3	)		–			–

2018/2019 Actions
Severance and related costs		40.7		24.0		(57.1	)		–			(1.1	)		6.5
Lease cancellation costs		–		.3		–			–			–			.3
Asset impairment charges		–		1.6		–			(1.6	)		–			–

Total	$	40.7	$	51.1	$	(57.1	)	$	(4.9	)	$	(1.1	)	$	28.7

Total amount of restructuring charges incurred by reportable segment and Corporate


(In millions)	2020		2019		2018
Restructuring charges by reportable segment and Corporate
Label and Graphic Materials	$	27.9	$	29.0	$	57.8
Retail Branding and Information Solutions		18.7		9.8		11.9
Industrial and Healthcare Materials		8.4		9.4		4.0
Corporate		.3		2.2		–

Total	$	55.3	$	50.4	$	73.7

TAXES BASED ON INCOME (Tables)

12 Months Ended

Jan. 02, 2021

Taxes Based on Income

Taxes based on income


(In millions)	2020			2019			2018
Current:
U.S. federal tax	$	1.1		$	11.0		$	(19.7	)
State taxes		1.9			.5			.8
International taxes		168.5			148.1			134.3
		171.5			159.6			115.4
Deferred:
U.S. federal tax		5.0			(168.0	)		(6.3	)
State taxes		1.6			(8.9	)		2.3
International taxes		(.4	)		(39.4	)		(26.0	)
		6.2			(216.3	)		(30.0	)
Provision for (benefit from) income taxes	$	177.7		$	(56.7	)	$	85.4

The principal items accounting for the difference between taxes


(In millions)	2020			2019			2018
Tax provision computed at the U.S. federal statutory rate (1)	$	154.8		$	52.4		$	116.5
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit (1)		6.9			(12.8	)		3.9
U.S. pension plan settlements and related charges (1)		–			(76.6	)		–
Tax Cuts and Jobs Act (2)		–			–			(34.7	)
Foreign earnings taxed at different rates (3)		51.4			56.2			44.0
GILTI high-tax exclusion election, net (4)		(12.5	)		–			–
Foreign tax structuring and planning transactions (5)		–			(47.9	)		(31.0	)
Excess tax benefits associated with stock-based payments		(3.2	)		(7.8	)		(7.7	)
Valuation allowance		(3.3	)		2.0			10.7
U.S. federal research and development tax credits		(6.2	)		(6.1	)		(6.1	)
Tax contingencies and audit settlements (6)		(5.5	)		(11.8	)		(11.9	)
Other items, net		(4.7	)		(4.3	)		1.7
Provision for (benefit from) income taxes	$	177.7		$	(56.7	)	$	85.4

(1)

(2)

(3)	All years included certain U.S. international tax provisions imposed by the TCJA and foreign earnings taxed in the U.S., net of credits.

(4)

In 2020, we recognized a tax benefit of $12.5 million as a

return-to-provision

(5)

(6)

Income before taxes from our U.S. and international operations


(In millions)	2020		2019			2018
U.S.	$	123.8	$	(355.4	)	$	(7.3	)
International		613.5		604.9			562.1

Income before taxes	$	737.3	$	249.5		$	554.8

Components of the temporary differences


(In millions)	2020			2019
Accrued expenses not currently deductible	$	24.9		$	25.7
Net operating loss carryforwards		161.4			154.6
Tax credit carryforwards		55.9			46.5
Stock-based compensation		10.7			11.8
Pension and other postretirement benefits		52.4			57.8
Lease liabilities		39.0			30.5
Other assets		32.2			21.3
Valuation allowance		(68.2	)		(67.7	)

Total deferred tax assets (1)		308.3			280.5
Depreciation and amortization		(80.2	)		(41.6	)
Repatriation accrual		(39.0	)		(18.9	)
Foreign operating loss recapture		(3.6	)		(3.4	)
Lease assets		(38.7	)		(29.7	)

Total deferred tax liabilities (1)		(161.5	)		(93.6	)

Total net deferred tax assets	$	146.8		$	186.9

(1)	Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.

Schedule of tax credit and net operating loss carryforwards


(In millions)	Net Operating
Year of Expiry	Losses (1)		Tax Credits
2021	$	2.1	$	.4
2022		5.3		.5
2023		4.3		4.4
2024		3.8		.3
2025		5.9		7.2
2026 - 2040		19.1		36.2
Indefinite life/no expiry		522.7		6.5

Total	$	563.2	$	55.5

(1)	Net operating losses are presented before tax effects and valuation allowance.

Reconciliation of the beginning and ending amounts of unrecognized tax benefits


(In millions)	2020			2019
Balance at beginning of year	$	69.9		$	80.8
Additions for tax positions of current year		6.5			7.5
Additions (reductions) for tax positions of prior years, net		5.2			(6.7	)
Settlements with tax authorities		(3.3	)		(1.9	)
Expirations of statutes of limitations		(8.7	)		(8.0	)
Changes due to translation of foreign currencies		2.4			(1.8	)

Balance at end of year	$	72.0		$	69.9

SEGMENT AND DISAGGREGATED REVENUE INFORMATION (Tables)

12 Months Ended

Jan. 02, 2021

Segment Reporting [Abstract]

Schedule Of Revenue From External Customers By Geographic Area And Product Group


(In millions)	2020		2019		2018

Net sales to unaffiliated customers
Label and Graphic Materials:
U.S.	$	1,294.3	$	1,246.6	$	1,256.0
Europe		1,758.1		1,767.9		1,851.3
Asia		1,040.8		1,065.0		1,081.2
Latin America		340.3		375.4		367.8
Other international		281.6		291.0		294.8

Total Label and Graphic Materials		4,715.1		4,745.9		4,851.1

Retail Branding and Information Solutions:
Apparel		1,432.3		1,458.5		1,441.7
Printer Solutions		198.6		191.8		171.5

Total Retail Branding and Information Solutions		1,630.9		1,650.3		1,613.2

Industrial and Healthcare Materials		625.5		673.9		694.7

Net sales to unaffiliated customers	$	6,971.5	$	7,070.1	$	7,159.0

Revenue by geographic area is shown below. Revenue is attributed to geographic areas based on the location from which products are shipped.


(In millions)	2020		2019		2018

Net sales to unaffiliated customers
U.S.	$	1,683.6	$	1,638.8	$	1,625.1
Europe		2,164.7		2,160.2		2,251.4
Asia		2,378.5		2,458.5		2,473.2
Latin America		440.3		498.3		490.0
Other international		304.4		314.3		319.3

Net sales to unaffiliated customers	$	6,971.5	$	7,070.1	$	7,159.0

Net sales to unaffiliated customers in Asia included sales in China (including Hong Kong) of $1.31 billion in 2020, $1.38 billion in 2019, and $1.43 billion in 2018.

Schedule of Segment Reporting Information, by Segment


(In millions)	2020			2019			2018

Intersegment sales
Label and Graphic Materials	$	80.3		$	80.2		$	78.7
Retail Branding and Information Solutions		27.5			20.6			4.7
Industrial and Healthcare Materials		6.4			8.8			8.8

Intersegment sales	$	114.2		$	109.6		$	92.2

Income before taxes
Label and Graphic Materials	$	688.8		$	601.5		$	568.2
Retail Branding and Information Solutions		144.7			196.6			170.4
Industrial and Healthcare Materials		58.2			60.0			62.9
Corporate expense		(82.5	)		(87.6	)		(83.4	)
Interest expense		(70.0	)		(75.8	)		(58.5	)
Other non-operating expense (income), net		(1.9	)		(445.2	)		(104.8	)

Income before taxes	$	737.3		$	249.5		$	554.8

Capital expenditures (1)
Label and Graphic Materials	$	87.3		$	137.8		$	151.5
Retail Branding and Information Solutions		101.6			63.1			57.1
Industrial and Healthcare Materials		17.3			24.2			19.3

Capital expenditures	$	206.2		$	225.1		$	227.9

Depreciation and amortization expense (1)
Label and Graphic Materials	$	107.0		$	100.2		$	104.7
Retail Branding and Information Solutions		71.6			52.6			49.0
Industrial and Healthcare Materials		26.7			26.2			27.3

Depreciation and amortization expense	$	205.3		$	179.0		$	181.0

Other expense (income), net by reportable segment
Label and Graphic Materials	$	22.2		$	28.3		$	61.8
Retail Branding and Information Solutions		22.7			9.9			11.4
Industrial and Healthcare Materials		8.4			9.4			(1.0	)
Corporate		.3			5.6			(2.3	)

Other expense (income), net	$	53.6		$	53.2		$	69.9

Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	49.1		$	45.3		$	63.0
Asset impairment charges and lease cancellation costs		6.2			5.1			10.7
Other items:
Transaction and related costs		4.2			2.6			–
Legal settlement		–			3.4			–
Argentine peso remeasurement transition loss		–			–			3.4
Other restructuring-related charge		–			–			.5
Net gain on investments		(5.4	)		–			–
Net gain on sales of assets		(.5	)		(3.2	)		(2.7	)
Reversal of acquisition-related contingent consideration		–			–			(5.0	)

Other expense (income), net	$	53.6		$	53.2		$	69.9

(1)	Corporate capital expenditures and depreciation and amortization expense are allocated to the segments based on their percentage of consolidated net sales.

Schedule of Entity Wide Disclosure on Geographic Areas Long Lived Assets in Individual Countries


(In millions)	2020		2019		2018

Property, plant and equipment, net
U.S.	$	403.1	$	366.9	$	317.3
International		940.6		843.8		820.1

Property, plant and equipment, net	$	1,343.7	$	1,210.7	$	1,137.4

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)

12 Months Ended

Jan. 02, 2021

Supplemental Financial Information

Schedule of net inventories


(In millions)	2020		2019
Raw materials	$	268.6	$	231.6
Work-in-progress		210.3		201.0
Finished goods		238.3		230.4

Inventories, net	$	717.2	$	663.0

Schedule of property, plant and equipment


(In millions)	2020			2019
Land	$	26.1		$	25.1
Buildings and improvements		746.4			687.4
Machinery and equipment		2,538.6			2,316.9
Construction-in-progress		165.2			142.2

Property, plant and equipment		3,476.3			3,171.6
Accumulated depreciation		(2,132.6	)		(1,960.9	)

Property, plant and equipment, net	$	1,343.7		$	1,210.7

Schedule of capitalized software costs


(In millions)	2020			2019
Cost	$	506.5		$	487.2
Accumulated amortization		(370.1	)		(334.4	)

Software, net	$	136.4		$	152.8

Schedule of allowance for credit losses


(In millions)
Balance at beginning of year	$	27.1
Provision for credit losses (1)		20.3
Amounts written off		(5.7	)
Other, including foreign currency translation		2.9
Balance at end of year	$	44.6

(1)	Primarily reflects estimated impacts on customers from COVID-19.

Schedule of research and development expense


(In millions)	2020		2019		2018
Research and development expense	$	112.8	$	92.6	$	98.2

Schedule of cash paid for interest and income taxes


(In millions)	2020		2019		2018
Interest	$	69.6	$	74.3	$	54.9
Income taxes, net of refunds		203.4		155.0		153.5

Schedule of amounts and balance sheet locations of deferred revenue


(In millions)	January 2, 2021		December 28, 2019
Other current liabilities		$18.9		$12.6
Long-term retirement benefits and other liabilities		1.4		.3

Total deferred revenue		$20.3		$12.9

QUARTERLY FINANCIAL INFORMATION (Unaudited) (Tables)

12 Months Ended

Jan. 02, 2021

QUARTERLY FINANCIAL INFORMATION (Unaudited)

Quarterly financial information


(In millions, except per share data)	First Quarter			Second Quarter		Third Quarter		Fourth Quarter

2020
Net sales	$	1,723.0		$	1,528.5	$	1,729.1	$	1,990.9
Gross profit		485.1			382.9		484.2		571.1
Net income		134.2			79.7		150.5		191.5
Net income per common share		1.61			.96		1.80		2.30
Net income per common share, assuming dilution		1.60			.95		1.79		2.28


2019
Net sales	$	1,740.1		$	1,795.7	$	1,761.4	$	1,772.9
Gross profit		465.4			482.3		471.7		484.7
Net income (loss) (1)		(146.9	)		143.4		144.6		162.5
Net income (loss) per common share		(1.74	)		1.70		1.72		1.95
Net income (loss) per common share, assuming dilution		(1.74	)		1.69		1.71		1.92

(1)	In the first quarter of 2019, we recognized final settlement charges associated with the termination of the ADPP. Refer to Note 6, “Pension and Other Postretirement Benefits,” for more information.

Summary of other expense (income), net, by type


(In millions)	First Quarter			Second Quarter		Third Quarter		Fourth Quarter

2020
Restructuring charges:
Severance and related costs	$	2.4		$	37.5	$	6.5	$	2.7
Asset impairment charges		–			1.8		4.4		–
Other items:
Loss (gain) on investments		–			–		1.5		(6.9	)
Transaction and related costs		2.5			.7		–		1.0
Gain on sale of assets		–			–		–		(.5	)


Other expense (income), net	$	4.9		$	40.0	$	12.4	$	(3.7	)

2019
Restructuring charges:
Severance and related costs	$	10.4		$	6.1	$	3.3	$	25.5
Asset impairment charges and lease cancellation costs		.3			1.4		–		3.4
Other items:
Legal settlement		–			–		3.4		–
Transaction costs		–			–		–		2.6
Net gain on sales of assets		(3.2	)		–		–		–


Other expense (income), net	$	7.5		$	7.5	$	6.7	$	31.5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Summary Of Significant Accounting Policies [Line Items]
Length of fiscal period	371 days	364 days	364 days
Stock-based compensation expense capitalized	$ 0	$ 0	$ 0
Currency Swap
Summary Of Significant Accounting Policies [Line Items]
Maximum length of time for which exposure is hedged to the variability in future cash flows	10 years	10 years	10 years
Foreign Exchange And Commodity Transactions
Summary Of Significant Accounting Policies [Line Items]
Maximum length of time for which exposure is hedged to the variability in future cash flows	36 months	36 months	36 months
Customer concentration risk \| Net sales \| Ten largest customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	17.00%	16.00%	15.00%
Customer concentration risk \| Accounts Receivable \| Ten largest customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	13.00%	12.00%
Minimum
Summary Of Significant Accounting Policies [Line Items]
Software estimated useful lives	5 years
Minimum \| Argentina
Summary Of Significant Accounting Policies [Line Items]
Cumulative inflation rate			100.00%
Minimum \| Buildings and improvements
Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	10 years
Minimum \| Machinery and equipment
Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	3 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Software estimated useful lives	10 years
Maximum \| Customer concentration risk \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	10.00%	10.00%
Maximum \| Buildings and improvements
Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	45 years
Maximum \| Machinery and equipment
Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	15 years

ACQUISITIONS (Details) € in Millions, $ in Millions	1 Months Ended
ACQUISITIONS (Details) € in Millions, $ in Millions	Feb. 28, 2021 USD ($)	Dec. 31, 2020 USD ($)	Feb. 28, 2020 USD ($)	Feb. 28, 2020 EUR (€)
Smartrac Transponder Division
ACQUISITIONS
Purchase consideration			$ 255	€ 232
ACPO Limited
ACQUISITIONS
Purchase consideration		$ 88
JDC Solutions Inc \| Subsequent Event
ACQUISITIONS
Purchase consideration	$ 24

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Goodwill
Impairment of goodwill	$ 0.0
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	930.8	$ 941.8
Acquisition	158.5
Translation adjustments	47.1	(11.0)
Goodwill, Ending Balance	1,136.4	930.8
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets, carrying value	22.2	20.8
Impairment of indefinite-lived intangible assets	0.0
Smartrac Transponder Division
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 106.0
Smartrac Transponder Division \| Maximum [Member]
Finite Lived Intangible Assets Acquired
Discount rate used to value the intangibles	16.00%
Smartrac Transponder Division \| Minimum [Member]
Finite Lived Intangible Assets Acquired
Discount rate used to value the intangibles	13.50%
Customer relationships
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 41.4
Weighted-average amortization period (in years)	7 years
Patented and other developed technology
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 62.5
Weighted-average amortization period (in years)	11 years
Trade names and trademarks
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 2.2
Weighted-average amortization period (in years)	5 years
Label and Graphic Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	$ 407.8	415.5
Acquisition	45.8
Translation adjustments	27.3	(7.7)
Goodwill, Ending Balance	480.9	407.8
Retail Branding and Information Solutions
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	349.3	349.7
Acquisition	112.7
Translation adjustments	9.8	(0.4)
Goodwill, Ending Balance	471.8	349.3
Accumulated impairment losses	820.0	820.0
Industrial and Healthcare Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	173.7	176.6
Translation adjustments	10.0	(2.9)
Goodwill, Ending Balance	$ 183.7	$ 173.7

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets
Gross Carrying Amount	$ 549.0	$ 425.7
Accumulated Amortization	346.3	320.0
Net Carrying Amount	202.7	105.7
Amortization expense on finite-lived intangible assets from business acquisition	19.9	13.5	$ 15.2
Customer relationships
Finite-Lived Intangible Assets
Gross Carrying Amount	373.3	319.5
Accumulated Amortization	254.1	238.7
Net Carrying Amount	119.2	80.8
Patented and other developed technology
Finite-Lived Intangible Assets
Gross Carrying Amount	147.3	81.7
Accumulated Amortization	69.8	61.3
Net Carrying Amount	77.5	20.4
Trade names and trademarks
Finite-Lived Intangible Assets
Gross Carrying Amount	28.2	24.3
Accumulated Amortization	22.2	19.8
Net Carrying Amount	6.0	4.5
Other intangibles
Finite-Lived Intangible Assets
Gross Carrying Amount	0.2	0.2
Accumulated Amortization	0.2	0.2
Net Carrying Amount	$ 0.0	$ 0.0

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Future Amortization Expense (Details) $ in Millions	Jan. 02, 2021 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021	$ 25.1
2022	24.0
2023	23.0
2024	21.2
2025	$ 20.4

DEBT - (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
DEBT - (Details) - USD ($) $ in Millions	Feb. 29, 2020	Jan. 02, 2021	Dec. 28, 2019
Short-term debt
Covenants compliance		we were in compliance with our financial covenants.	we were in compliance with our financial covenants.
Short Term Borrowings From U.S. Commercial Paper
Short-term debt
U.S. Commercial paper		$ 0.0	$ 83.2
U.S. Commercial paper weighted average interest rate			1.98%
Short-Term Borrowings from Euro-Commercial Paper
Short-term debt
Maximum borrowing capacity		$ 500.0
Maturities of the notes		364 days
Covenants compliance		There are no financial covenants under this program.
Euro-Commercial paper		$ 36.9	$ 50.1
Revolving credit facility
Short-term debt
Maximum borrowing capacity		$ 800.0
Covenants compliance	In February 2020, we amended and restated the Revolver, eliminating one of the financial covenants and extending its maturity date to February 13, 2025.

DEBT - Revolving Credit Facility (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Feb. 29, 2020	Feb. 29, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Line of Credit Facility [Line Items]
Covenants compliance			we were in compliance with our financial covenants.	we were in compliance with our financial covenants.
Revolving credit facility
Line of Credit Facility [Line Items]
Commitment for increased borrowing	$ 400.0
Amount outstanding			$ 0.0	$ 0.0
Commitment fees			0.8	1.2	$ 1.2
Covenants compliance		In February 2020, we amended and restated the Revolver, eliminating one of the financial covenants and extending its maturity date to February 13, 2025.
Uncommitted lines of credit
Line of Credit Facility [Line Items]
Uncommitted lines of credit			390.0
Short term borrowings outstanding			$ 22.2	$ 37.4
Weighted average interest rate			3.60%	6.40%

DEBT - Long-Term Debt and Respective Weighted-Average Interest Rate (Details) - USD ($) $ in Millions	1 Months Ended			5 Months Ended
	Mar. 31, 2020	Dec. 31, 2018	Aug. 31, 2018	Jun. 27, 2020	Jan. 02, 2021	Apr. 30, 2020	Dec. 29, 2019	Dec. 28, 2019	Dec. 29, 2018
Long-term Debt, Unclassified [Abstract]
Less amount classified as current								$ (265.0)
Total long-term debt					$ 2,029.2			1,475.3
Unamortized debt issuance cost					8.7			5.6
Unamortized debt discount					4.9			5.7
Repayment of medium-term notes				$ 15.0
ADPP
Long-term Debt, Unclassified [Abstract]
Amount of contribution			$ 200.0
Series 1995 due 2020 through 2025
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 30.0			45.0
Weighted-average interest rate					7.50%		7.50%
Senior notes due 2020 at 5.4%
Long-term Debt, Unclassified [Abstract]
Senior notes								$ 250.0
Interest rate of senior notes (as a percent)					5.40%			5.40%
Senior notes due 2023 at 3.4%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 249.3			$ 249.1
Interest rate of senior notes (as a percent)					3.40%			3.40%
Senior notes due 2025 at 1.25%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 612.1			$ 553.4
Interest rate of senior notes (as a percent)					1.25%			1.25%
Senior notes due 2028 at 4.875%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 494.6			$ 493.9
Senior notes issued									$ 500.0
Interest rate of senior notes (as a percent)					4.875%			4.875%	4.875%
Proceeds, net of underwriting discounts and estimated offering expenses		$ 493.3
Senior notes due 2030 at 2.650%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 494.2
Senior notes issued	$ 500.0
Interest rate of senior notes (as a percent)	2.65%				2.65%
Proceeds, net of underwriting discounts and estimated offering expenses	$ 493.7
Senior notes matured						$ 250.0
Senior notes due 2033 at 6.0%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 149.0			$ 148.9
Interest rate of senior notes (as a percent)					6.00%			6.00%

DEBT - Long-Term Debt and Capital Leases (Details) $ in Millions	Jan. 02, 2021 USD ($)
Maturities of Long-term Debt and Capital Lease Obligations [Abstract]
2021	$ 0.0
2022	0.0
2023	250.0
2024	0.0
2025	644.9
2026 and thereafter	$ 1,147.9

DEBT - Debt issued and Capital Lease Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Interest costs	$ 73.9	$ 81.1	$ 63.8
Interest costs capitalized	3.9	5.3	$ 5.3
Fair value of debt	$ 2,340.0	$ 2,050.0
Covenants compliance	we were in compliance with our financial covenants.	we were in compliance with our financial covenants.

FINANCIAL INSTRUMENTS (Details) $ in Millions	Jan. 02, 2021 USD ($)
Commodity contracts
Financial Instruments
Notional amount	$ 4.2
Foreign exchange contracts
Financial Instruments
Notional amount	$ 1,380.0

FINANCIAL INSTRUMENTS - Cross-Currency Swap (Details) - Cross-Currency Swap - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020
Financial Instruments
Notional amount		$ 250.0
Foreign Currency Contracts, Liability, Fair Value Disclosure	$ (36.7)
Amount of ineffectiveness from cross-currency swap	$ 0.0

FINANCIAL INSTRUMENTS - Net Losses Recognized in Income (Details) - Other Derivatives - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	$ (12.3)	$ 2.0	$ (22.5)
Foreign exchange contracts \| Cost of products sold
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	1.9	(1.5)	4.5
Foreign exchange contracts \| Marketing, general and administrative expense
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	$ (14.2)	$ 3.5	$ (27.0)

FINANCIAL INSTRUMENTS - Balance Sheet Locations of Other Derivatives, Fair Value (Details) - Other Derivatives - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset	$ 5.2	$ 4.8
Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability	8.5	4.7
Foreign exchange contracts \| Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset	5.1	4.8
Foreign exchange contracts \| Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability	8.4	4.7
Commodity contracts \| Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset	0.1	0.0
Commodity contracts \| Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability	$ 0.1	$ 0.0

FINANCIAL INSTRUMENTS - Net Investment Hedge (Details) € in Millions, $ in Millions	12 Months Ended
	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Jan. 31, 2018 EUR (€)	Mar. 31, 2017 EUR (€)
Gains (losses) recognized in current earnings [Line Items]
Amount of ineffectiveness from net investment hedge in net (loss) income \| $		$ 0.0	$ 0.0
Senior notes due March 2025 at 1.25%
Gains (losses) recognized in current earnings [Line Items]
Senior notes issued \| €					€ 500
Interest rate of senior notes (as a percent)					1.25%
Net Investment Hedge \| Designated
Gains (losses) recognized in current earnings [Line Items]
Foreign currency denominated debt \| $	$ 0.0	$ 6.8	$ 1.3
Net Investment Hedge \| Designated \| Senior notes due March 2025 at 1.25%
Gains (losses) recognized in current earnings [Line Items]
Senior notes issued \| €				€ 255

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2018	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Components of net periodic benefit cost (credit)
Recognized loss on settlements		$ 0.5	$ 444.1	$ 93.7
ADPP
Components of net periodic benefit cost (credit)
Recognized loss on settlements			444.0
Settlements			753.0
Employer contributions	$ 200.0
Tax benefit associated with termination of pension plan			179.0
U.S. \| ADPP
Components of net periodic benefit cost (credit)
Employer contributions			$ 10.0
International \| Equity Securities
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)		37.00%
International \| Fixed income securities and cash
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)		53.00%
International \| Other investments
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)		10.00%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Defined Benefit Plans (Details) - International - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Defined Benefit Plans
Total plan assets	$ 897.2	$ 734.4	$ 631.8
Cash \| Total
Defined Benefit Plans
Total plan assets at fair value	3.8	1.2
Pooled funds - Fixed income securities \| Total
Defined Benefit Plans
Total plan assets at fair value	469.9	329.9
Insurance contracts \| Total
Defined Benefit Plans
Total plan assets at fair value	41.2	36.3
Pooled funds - Other \| Total
Defined Benefit Plans
Total plan assets at fair value	49.5	98.2
Equity Securities \| Total
Defined Benefit Plans
Total plan assets at fair value	332.8	268.8
Quoted Prices in Active Markets (Level 1) \| Cash
Defined Benefit Plans
Total plan assets at fair value	3.8	1.2
Significant Other Observable Inputs (Level 3) \| Insurance contracts
Defined Benefit Plans
Total plan assets at fair value	$ 41.2	$ 36.3

PENSION AND OTHER POSTRETIREMENT BENEFITS - Reconciliation For Assets Measure At Fair Value Using Level 3 (Details) - Significant Other Observable Inputs (Level 3) - International - Insurance contracts $ in Millions	12 Months Ended
	Jan. 02, 2021 USD ($)
Reconciliation of Level 3 assets
Balance at the beginning of the year	$ 36.3
Net realized and unrealized gain	0.5
Purchases	4.0
Settlements	(3.6)
Impact of changes in foreign currency exchange rates	4.0
Balance at the end of the year	$ 41.2

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Projected Benefit Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
U.S.
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$ 75.7	$ 868.5
Interest cost	1.8	9.0
Actuarial (gain) loss	7.1	(27.1)
Benefits paid	(7.3)	(20.7)
Settlements		(754.0)
Projected benefit obligations at end of year	77.3	75.7
Accumulated benefit obligations at end of year	77.3	75.7
International
Change in projected benefit obligations
Projected benefit obligations at beginning of year	811.7	755.8
Service cost	17.8	15.6
Interest cost	11.0	14.8
Participant contribution	3.7	4.1
Amendments	0.4	1.8
Actuarial (gain) loss	53.5	56.8
Benefits paid	(21.1)	(21.3)
Settlements	(2.4)	(4.5)
Foreign currency translation	79.3	(11.4)
Projected benefit obligations at end of year	953.9	811.7
Accumulated benefit obligations at end of year	$ 883.6	$ 754.0

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
U.S.
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year		$ 735.6
Actual return on plan assets		20.7
Employer contributions	$ 7.3	18.4
Benefits paid	(7.3)	(20.7)
Settlements		(754.0)
International
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	734.4	631.8
Actual return on plan assets	91.5	118.5
Employer contributions	17.2	13.6
Participant contributions	3.7	4.1
Benefits paid	(21.1)	(21.3)
Settlements	(2.4)	(4.5)
Foreign currency translation	73.9	(7.8)
Plan assets at end of year	$ 897.2	$ 734.4

PENSION AND OTHER POSTRETIREMENT BENEFITS - Funded Status of the Plan (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
U.S.
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation in excess of plan assets	$ 295.0	$ 263.0
Accumulated benefit obligations	265.0	237.0
Fair value of plan assets	69.0	59.0
Fair value of plan assets	69.0	59.0
U.S.
Funded status of the plans
Other accrued liabilities	(9.1)	(7.5)
Long-term retirement benefits and other liabilities	(68.2)	(68.2)
Plan assets less than benefit obligations	$ (77.3)	$ (75.7)
Weighted-average assumptions used to determine year-end benefit obligations
Discount rate (as a percent)	2.02%	2.93%
International
Funded status of the plans
Other assets	$ 92.4	$ 50.8
Other accrued liabilities	(1.5)	(2.4)
Long-term retirement benefits and other liabilities	(147.6)	(125.7)
Plan assets less than benefit obligations	$ (56.7)	$ (77.3)
Weighted-average assumptions used to determine year-end benefit obligations
Discount rate (as a percent)	1.26%	1.66%
Compensation rate increase	2.15%	2.21%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
U.S.
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$ 18.2	$ 15.5
Net amount recognized in accumulated other comprehensive loss	18.2	15.5
International
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	83.3	101.9
Prior service (credit) cost	(3.9)	(4.3)
Net amount recognized in accumulated other comprehensive loss	$ 79.4	$ 97.6

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
U.S.
Defined Benefit Plans
Net actuarial loss (gain)	$ 3.5	$ (44.6)	$ 33.5
Amortization of unrecognized net actuarial gain	(0.6)	(0.5)	(21.2)
Amortization of unrecognized prior service credit (cost)			(0.8)
Settlements	(0.2)	(442.8)	(92.0)
Net amount recognized in other comprehensive loss (income)	2.7	(487.9)	(80.5)
International
Defined Benefit Plans
Net actuarial loss (gain)	(13.5)	(42.7)	(27.2)
Prior service credit	0.4	1.8
Amortization of unrecognized net actuarial gain	(5.2)	(4.0)	(8.1)
Amortization of unrecognized prior service credit (cost)	0.4	0.4	0.5
Settlements	(0.3)	(0.6)	(1.7)
Net amount recognized in other comprehensive loss (income)	$ (18.2)	$ (45.1)	$ (36.5)

PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Components of net periodic benefit cost (credit)
Recognized loss on settlements	$ 0.5	$ 444.1	$ 93.7
U.S.
Components of net periodic benefit cost (credit)
Interest cost	1.8	9.0
Actuarial loss (gain)	7.1	(27.1)
U.S. \| Continuing Operations [Member]
Components of net periodic benefit cost (credit)
Interest cost	1.8	2.7	34.5
Actuarial loss (gain)	3.7	2.5	(0.6)
Expected return on plan assets			(42.5)
Amortization of actuarial loss	0.6	0.5	21.2
Amortization of prior service (credit) cost			0.8
Recognized loss on settlements	0.2	443.5	92.0
Net periodic benefit cost (credit)	6.3	449.2	105.4
International
Components of net periodic benefit cost (credit)
Service cost	17.8	15.6
Interest cost	11.0	14.8
Actuarial loss (gain)	53.5	56.8
International \| Continuing Operations [Member]
Components of net periodic benefit cost (credit)
Service cost	17.8	15.6	19.2
Interest cost	11.0	14.8	15.7
Expected return on plan assets	(18.5)	(21.0)	(23.8)
Amortization of actuarial loss	5.2	4.0	8.1
Amortization of prior service (credit) cost	(0.4)	(0.4)	(0.5)
Recognized loss on settlements	0.3	0.6	1.7
Net periodic benefit cost (credit)	$ 15.4	$ 13.6	$ 20.4

PENSION AND OTHER POSTRETIREMENT BENEFITS - Weighted-Average Assumptions for Determining Net Periodic Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
U.S.
Weighted average assumptions used to determine net periodic cost
Discount rate	2.89%	3.73%	3.72%
Expected return on assets			7.00%
Company's contributions to the defined benefit plan in the next fiscal year	$ 9.2
International
Weighted average assumptions used to determine net periodic cost
Discount rate	1.66%	2.39%	2.25%
Expected return on assets	2.79%	3.38%	3.78%
Compensation rate increase	2.21%	2.23%	2.26%
Company's contributions to the defined benefit plan in the next fiscal year	$ 13.4

PENSION AND OTHER POSTRETIREMENT BENEFITS - Future Benefit Payments (Details) $ in Millions	Jan. 02, 2021 USD ($)
U.S.
Future Benefit Payments
2021	$ 9.2
2022	6.9
2023	6.4
2024	6.7
2025	6.1
2026-2030	24.8
International
Future Benefit Payments
2021	23.0
2022	25.1
2023	27.0
2024	26.0
2025	26.0
2026-2030	$ 168.4

PENSION AND OTHER POSTRETIREMENT BENEFITS - Postretirement Health Benefits, Defined Contribution and Other Retirement Plans (Details) shares in Millions, $ in Millions	12 Months Ended
	Jan. 02, 2021 USD ($) plan shares	Dec. 28, 2019 USD ($) shares	Dec. 29, 2018 USD ($)
Defined contribution and other retirement plans
Postretirement health benefits obligation	$ 3.0	$ 3.0
Accumulated other comprehensive loss relating to postretirement health benefits obligation	$ 10.0	8.0
Other deferred compensation plans with DSUs issued under equity \| plan	2
Value of DSUs outstanding under deferred compensation plans	$ 22.0	$ 25.0
DSUs outstanding under deferred compensation plans \| shares	0.1	0.2
Recognized defined contribution plan cost	$ 22.7	$ 22.4	$ 21.8
Deferred compensation plan accrued	$ 95.1	91.6
Minimum age of participant for termination of employment to determine forfeiture of interest on contribution	55 years
Other assets
Defined contribution and other retirement plans
Cash surrender value included in other assets	$ 254.8	$ 236.9

COMMITMENTS AND LEASES - Supplemental Cost Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating lease costs	$ 63.1	$ 65.4

COMMITMENTS AND LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Assets and Liabilities, Lessee [Abstract]
Operating Lease, Assets	$ 161.3	$ 138.1
Operating Lease, Assets (Balance Sheet Location)	us-gaap:OtherAssetsNoncurrent
Finance Lease, Assets	$ 38.2	36.1
Finance Lease, Assets (Balance Sheet Location)	us-gaap:PropertyPlantAndEquipmentNet
Total leased assets	$ 199.5	174.2
Operating Lease, Current Liabilities	$ 44.3	41.4
Operating Lease, Current Liabilities (Balance Sheet Location)	us-gaap:OtherAccruedLiabilitiesCurrent
Finance Lease, Current Liabilities	$ 5.6	4.5
Finance Lease, Current Liabilities (Balance Sheet Location)	us-gaap:DebtCurrent
Operating Lease, Non-current Liabilities	$ 116.0	98.9
Operating Lease, Non-current Liabilities (Balance Sheet Location)	avy:LongTermRetirementBenefitsAndOtherLiabilities
Finance Lease, Non-current Liabilities	$ 22.9	24.0
Finance Lease, Non-current Liabilities (Balance Sheet Location)	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total lease liabilities	$ 188.8	168.8
Accumulated amortization, finance lease assets	$ 8.3	$ 5.7

COMMITMENTS AND LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 54.9	$ 53.1
Operating lease assets obtained in exchange for operating lease liabilities	$ 48.4	$ 32.6

COMMITMENTS AND LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Jan. 02, 2021
Leases [Abstract]
Operating Lease, Weighted average remaining lease term (in years)	6 years 2 months 12 days
Finance Lease, Weighted average remaining lease term (in years)	3 years 2 months 12 days
Operating Lease, Weighted average discount rate (as a percent)	4.30%
Finance Lease, Weighted average discount rate (as a percent)	2.90%

COMMITMENTS AND LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Millions	12 Months Ended
	Dec. 29, 2018 USD ($)	Jan. 02, 2021 USD ($)
Operating Leases
2021		$ 47.9
2022		34.7
2023		25.4
2024		19.5
2025		15.3
2026 and thereafter		40.8
Total lease payments		183.6
Less: imputed interest		(23.3)
Present value of lease liabilities		$ 160.3
Operating Lease, Liability, Statement of Financial Position [Extensible List]		us-gaap:OtherAccruedLiabilitiesCurrent avy:LongTermRetirementBenefitsAndOtherLiabilitie
Finance Leases
2021		$ 14.1
2022		5.5
2023		4.8
2024		4.5
2025		1.3
2026 and thereafter		0.1
Total lease payments		30.3
Less: imputed interest		(1.8)
Present value of lease liabilities		$ 28.5
Number of operating lease contracts not yet commenced		0
Number of finance lease contract not yet commenced		0
Operating leases, rent expense, net, total	$ 66.0

CONTINGENCIES (Details) $ in Millions	12 Months Ended
CONTINGENCIES (Details) $ in Millions	Jan. 02, 2021 USD ($) sites	Dec. 28, 2019 USD ($)
Environmental Liabilities Associated with Remediation
Environmental site contingency number of sites \| sites	12
Balance at beginning of year	$ 21.4	$ 20.0
Charges, net of reversals	3.0	7.4
Payments	(3.3)	(6.0)
Balance at end of year	21.1	21.4
Short term environmental liabilities	$ 9.0	$ 10.0

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Cash and cash equivalents
Assets
Investments	$ 1.0	$ 0.4
Other current assets
Assets
Investments	32.6	30.2
Recurring
Assets
Investments	33.6	30.6
Derivative assets	5.2	5.2
Bank drafts	12.8	21.3
Liabilities
Cross-currency swap	36.7
Derivative liabilities	9.5	6.0
Quoted Prices in Active Markets (Level 1)
Assets
Investments	27.4	26.0
Derivative assets	0.1
Bank drafts	12.8	21.3
Liabilities
Derivative liabilities	0.3	0.4
Significant Other Observable Inputs (Level 2)
Assets
Investments	6.2	4.6
Derivative assets	5.1	5.2
Liabilities
Cross-currency swap	36.7
Derivative liabilities	$ 9.2	$ 5.6

FAIR VALUE MEASUREMENTS - Non-Recurring Fair Value Measurements (Details) $ in Millions	12 Months Ended
	Dec. 29, 2018 USD ($)
Non-Recurring Fair Value Measurements
Carrying amount of long lived-assets	$ 18.1
Fair value of long-lived assets	10.6
Other expense (income), net
Non-Recurring Fair Value Measurements
Impairment charges for long lived-assets	$ 7.5

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net Income Per Common Share
Net income	$ 191.5	$ 150.5	$ 79.7	$ 134.2	$ 162.5	$ 144.6	$ 143.4	$ (146.9)	$ 555.9	$ 303.6	$ 467.4
Weighted average number of common shares outstanding									83.4	84.0	87.3
Dilutive shares (additional common shares issuable under stock-based awards)									0.7	1.0	1.3
Weighted average number of common shares outstanding, assuming dilution									84.1	85.0	88.6
Net income per common share (in dollars per share)	$ 2.30	$ 1.80	$ 0.96	$ 1.61	$ 1.95	$ 1.72	$ 1.70	$ (1.74)	$ 6.67	$ 3.61	$ 5.35
Net income per common share, assuming dilution (in dollars per share)	$ 2.28	$ 1.79	$ 0.95	$ 1.60	$ 1.92	$ 1.71	$ 1.69	$ (1.74)	$ 6.61	$ 3.57	$ 5.28

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Apr. 30, 2019
Preferred stock, shares authorized	5,000,000
Preferred stock, par value (in dollars per share)	$ 1
Preferred stock, outstanding shares	0
Common stock, authorized shares	400,000,000	400,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Repurchase of common stock, value	$ 104.3	$ 237.7	$ 392.9
Share repurchase authorized amount				$ 650.0
Share repurchase remained authorized amount	$ 540.4
Treasury stock, at cost
Repurchase of common stock	792,997	2,222,937	3,951,215
Repurchase of common stock, value	$ 104.3	$ 237.7	$ 392.9

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	$ 1,204.0	$ 955.1	$ 1,032.4
Net current-period other comprehensive income (loss), net of tax	(1.5)	333.9	(1.5)
Ending balance	1,484.9	1,204.0	955.1
Foreign Currency Translation
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(245.1)	(247.4)
Other comprehensive income (loss) before reclassifications, net of tax	(3.0)	2.3
Net current-period other comprehensive income (loss), net of tax	(3.0)	2.3
Ending balance	(248.1)	(245.1)	(247.4)
Pension and Other Postretirement Benefits
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(101.8)	(434.3)
Other comprehensive income (loss) before reclassifications, net of tax	6.2	66.4
Reclassifications to net income, net of tax	2.9	266.1
Net current-period other comprehensive income (loss), net of tax	9.1	332.5
Ending balance	(92.7)	(101.8)	(434.3)
Cash Flow Hedges
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(1.2)	(0.3)
Other comprehensive income (loss) before reclassifications, net of tax	(7.5)	0.5
Reclassifications to net income, net of tax	(0.1)	(1.4)
Net current-period other comprehensive income (loss), net of tax	(7.6)	(0.9)
Ending balance	(8.8)	(1.2)	(0.3)
Accumulated other comprehensive loss
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(348.1)	(682.0)	(680.5)
Other comprehensive income (loss) before reclassifications, net of tax	(4.3)	69.2
Reclassifications to net income, net of tax	2.8	264.7
Net current-period other comprehensive income (loss), net of tax	(1.5)	333.9	(1.5)
Ending balance	$ (349.6)	$ (348.1)	$ (682.0)

- Definition

+ References + Details

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Reclassification Adjustment Out of Accumulated Other Comprehensive loss (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold									$ (5,048.2)	$ (5,166.0)	$ (5,243.5)
Income before taxes									737.3	249.5	554.8
Provision for (benefit from) income taxes									(177.7)	56.7	(85.4)
Net income (loss)	$ 191.5	$ 150.5	$ 79.7	$ 134.2	$ 162.5	$ 144.6	$ 143.4	$ (146.9)	555.9	303.6	467.4
Income tax (benefit) expense allocated - Foreign currency translation:
Translation gain (loss)									27.5	(5.5)	(9.1)
Income tax (benefit) expense allocated - Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior service cost/credit									3.1	19.4	(2.4)
Reclassifications to net income									0.9	179.3	27.6
Income tax (benefit) expense allocated - Cash flow hedges:
Gains (losses) recognized on cash flow hedges									(2.3)	0.2	0.3
Reclassifications to net income										(0.5)	(0.3)
Income tax expense (benefit) allocated to components of other comprehensive income (loss)									29.2	192.9	16.1
Amounts Reclassified from Accumulated other comprehensive loss
Amounts reclassified from Accumulated other comprehensive loss
Net income (loss)									(2.8)	(264.7)	(92.7)
Pension and Other Postretirement Benefits \| Amounts Reclassified from Accumulated other comprehensive loss
Amounts reclassified from Accumulated other comprehensive loss
Other non-operating expense (income), net									(3.8)	(445.4)	(121.4)
Provision for (benefit from) income taxes									0.9	179.3	27.6
Net income (loss)									(2.9)	(266.1)	(93.8)
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss
Amounts reclassified from Accumulated other comprehensive loss
Income before taxes									0.1	1.9	1.4
Provision for (benefit from) income taxes										(0.5)	(0.3)
Net income (loss)									0.1	1.4	1.1
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss \| Foreign exchange contracts
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold									0.7	2.1	1.3
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss \| Commodity contracts
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold									$ (0.6)	$ (0.2)	$ 0.1

LONG-TERM INCENTIVE COMPENSATION (Details) $ in Millions	1 Months Ended	12 Months Ended
LONG-TERM INCENTIVE COMPENSATION (Details) $ in Millions	Apr. 30, 2017 shares	Jan. 02, 2021 USD ($) item shares	Dec. 28, 2019 USD ($) shares	Dec. 29, 2018 USD ($) shares
Long-Term Incentive Compensation
Stock option granted \| shares		0	0	0
Total intrinsic value of stock options exercised		$ 4.0	$ 23.5	$ 2.7
Proceeds from exercises of stock options		2.0	10.0	1.0
Tax benefit associated with option exercises		1.0	5.7	0.6
Equity Plan
Long-Term Incentive Compensation
Aggregate number of shares available under the plan \| shares	5,400,000
Fungible share ratio \| shares	1.5
Marketing, general and administrative expense
Long-Term Incentive Compensation
Stock-based compensation expense		24.0	34.5	34.3
Tax benefit		2.9	4.3	4.7
Long-term incentive units \| Marketing, general and administrative expense
Long-Term Incentive Compensation
Cash-based awards compensation expense		13.8	19.1	12.4
Tax Benefit		$ 3.3	$ 4.4	$ 2.9
Stock Options
Long-Term Incentive Compensation
Option expiration period		10 years
Stock Options \| Ratable vesting
Long-Term Incentive Compensation
Vesting period		4 years
Stock Options \| Minimum
Long-Term Incentive Compensation
Purchase price of common stock as a percentage of its fair market value granted to non-employee directors and employees		100.00%
Market-leveraged stock units (MSUs)
Long-Term Incentive Compensation
Vesting period		4 years
Number of tranches represented by each vesting period \| item		1
Number of tranches represented by the entire vesting period \| item		4
Market-leveraged stock units (MSUs) \| Ratable vesting
Long-Term Incentive Compensation
Vesting period		4 years
Market-leveraged stock units (MSUs) \| Minimum \| Ratable vesting
Long-Term Incentive Compensation
Shares issued (as a percent)		0.00%
Market-leveraged stock units (MSUs) \| Maximum \| Ratable vesting
Long-Term Incentive Compensation
Shares issued (as a percent)		200.00%
Market-leveraged long-term incentive units \| Ratable vesting
Long-Term Incentive Compensation
Vesting period		4 years
Performance long-term incentive units \| Cliff vesting
Long-Term Incentive Compensation
Vesting period		3 years
Performance long-term incentive units \| Minimum \| Cliff vesting
Long-Term Incentive Compensation
Shares issued (as a percent)		0.00%
Performance long-term incentive units \| Maximum \| Cliff vesting
Long-Term Incentive Compensation
Shares issued (as a percent)		200.00%
Performance Units (PS) \| Minimum \| Cliff vesting
Long-Term Incentive Compensation
Vesting period		3 years
Shares issued (as a percent)		0.00%
Performance Units (PS) \| Maximum \| Cliff vesting
Long-Term Incentive Compensation
Vesting period		4 years
Shares issued (as a percent)		200.00%
Restricted Stock Units (RSUs) \| Ratable vesting \| Directors
Long-Term Incentive Compensation
Vesting period		1 year
Restricted Stock Units (RSUs) \| Minimum \| Ratable vesting \| Employees
Long-Term Incentive Compensation
Vesting period		3 years
Restricted Stock Units (RSUs) \| Maximum \| Ratable vesting \| Employees
Long-Term Incentive Compensation
Vesting period		4 years
Unvested Stock Options, Performance Units, Restricted Stock Units and Market-leveraged stock units (MSUs)
Long-Term Incentive Compensation
Unrecognized compensation cost related to share based compensation cost		$ 31.0
Unrecognized compensation cost weighted average recognition period		2 years

LONG-TERM INCENTIVE COMPENSATION - Stock Option Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Number of options
Outstanding beginning balance, options	206,200
Exercised, options	(44,100)
Outstanding ending balance, options	162,100	206,200
Options vested and expected to vest, options	162,100
Options exercisable	162,100
Weighted-average exercise price
Outstanding, Weighted-average exercise price, beginning balance	$ 62.10
Exercised, weighted-average exercise price	37.36
Outstanding, Weighted-average exercise price, ending balance	68.84	$ 62.10
Options vested and expected to vest, Weighted-average exercise price	68.84
Options exercisable ,Weighted-average exercise price	$ 68.84
Weighted-average remaining contractual life
Outstanding ,Weighted-average remaining contractual life beginning balance	4 years 10 months 9 days	4 years 11 months 1 day
Outstanding ,Weighted-average remaining contractual life ending balance	4 years 10 months 9 days	4 years 11 months 1 day
Options vested or expected to vest, Weighted-average remaining contractual life	4 years 10 months 9 days
Options exercisable, Weighted-average remaining contractual life	4 years 10 months 9 days
Aggregate intrinsic value
Outstanding, Aggregate intrinsic value	$ 14.0	$ 14.3
Options vested and expected to vest, Aggregate Intrinsic Value	14.0
Options exercisable, Aggregate Intrinsic Value	$ 14.0

LONG-TERM INCENTIVE COMPENSATION - Number of Awards, Weighted-average Grant-date Fair Value (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Performance Units (PS)
Number of awards
Unvested at December 28, 2019	427,500
Granted at target	116,900
Adjustments for above-target performance	109,600
Vested	(245,800)
Forfeited/cancelled	(51,600)
Unvested at January 2, 2021	356,600	427,500
Fair value	$ 20.4	$ 25.6	$ 11.9
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 101.61
Weighted-average grant-date fair value, granted at target	115.07	$ 104.43	$ 120.25
Weighted-average grant-date fair value, adjustment for above-target performance	83.05
Weighted-average grant-date fair value, vested	83.05
Weighted-average grant-date fair value, forfeited/cancelled	112.90
Weighted-average grant-date fair value unvested, ending balance	$ 112.31	$ 101.61
Market-leveraged stock units (MSUs)
Number of awards
Unvested at December 28, 2019	263,400
Granted at target	114,700
Adjustments for above-target performance	69,000.0
Vested	(177,200)
Forfeited/cancelled	(34,000.0)
Unvested at January 2, 2021	235,900	263,400
Fair value	$ 17.6	$ 15.9	$ 24.0
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 115.71
Weighted-average grant-date fair value, granted at target	94.55	$ 135.85	$ 117.75
Weighted-average grant-date fair value, adjustment for above-target performance	92.88
Weighted-average grant-date fair value, vested	99.36
Weighted-average grant-date fair value, forfeited/cancelled	112.57
Weighted-average grant-date fair value unvested, ending balance	$ 110.89	$ 115.71
Restricted Stock Units (RSUs)
Number of awards
Unvested at December 28, 2019	59,700
Granted at target	32,700
Vested	(40,400)
Forfeited/cancelled	(600)
Unvested at January 2, 2021	51,400	59,700
Fair value	$ 3.8	$ 4.4	$ 5.1
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 97.56
Weighted-average grant-date fair value, granted at target	111.71	$ 107.18	$ 106.44
Weighted-average grant-date fair value, vested	93.70
Weighted-average grant-date fair value, forfeited/cancelled	109.24
Weighted-average grant-date fair value unvested, ending balance	$ 109.47	$ 97.56

COST REDUCTION ACTIONS (Details) $ in Millions	1 Months Ended	12 Months Ended
COST REDUCTION ACTIONS (Details) $ in Millions	Apr. 28, 2018 item	Jan. 02, 2021 USD ($) item	Dec. 28, 2019 USD ($) item
Restructuring charges:
Charges, Net of Reversals \| $		$ 55.3	$ 51.1
2018 Plan
Restructuring charges:
Net number of position reduced as a result of Cost Reduction Actions \| item	150
Charges, Net of Reversals \| $		0.0	0.0
Expected number of positions reduced as a result of Cost Reduction Actions \| item	390
2018/2019 Actions
Restructuring charges:
Charges, Net of Reversals \| $		$ 0.0	$ 28.2
Expected number of positions reduced as a result of Cost Reduction Actions \| item			490
2019/2020 Actions
Restructuring charges:
Net number of position reduced as a result of Cost Reduction Actions \| item		2,160	370
Charges, Net of Reversals \| $		$ 56.0	$ 25.2

COST REDUCTION ACTIONS - Restructuring Charges and Payments (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Cost Reduction Actions
Beginning Balance				$ 28.7				$ 40.7	$ 28.7	$ 40.7
Charges, Net of Reversals									55.3	51.1
Cash Payments									(51.7)	(57.1)
Non-cash Impairment									(6.2)	(4.9)
Foreign Currency Translation									2.5	(1.1)
Ending Balance	$ 28.6				$ 28.7				28.6	28.7	$ 40.7
Severance and related costs
Cost Reduction Actions
Charges, Net of Reversals	2.7	$ 6.5	$ 37.5	2.4	25.5	$ 3.3	$ 6.1	10.4	49.1	45.3	63.0
2019/2020 Actions
Cost Reduction Actions
Charges, Net of Reversals									56.0	25.2
2019/2020 Actions \| Severance and related costs
Cost Reduction Actions
Beginning Balance				21.9				0.0	21.9	0.0
Charges, Net of Reversals									49.8	21.9
Cash Payments									(45.7)	0.0
Non-cash Impairment									0.0	0.0
Foreign Currency Translation									2.3	0.0
Ending Balance	28.3				21.9				28.3	21.9	0.0
2019/2020 Actions \| Asset impairment charges
Cost Reduction Actions
Beginning Balance				0.0				0.0	0.0	0.0
Charges, Net of Reversals									6.2	3.3
Cash Payments									0.0	0.0
Non-cash Impairment									(6.2)	(3.3)
Foreign Currency Translation									0.0	0.0
Ending Balance	0.0				0.0				0.0	0.0	0.0
2018/2019 Actions
Cost Reduction Actions
Charges, Net of Reversals									0.0	28.2
2018/2019 Actions \| Severance and related costs
Cost Reduction Actions
Beginning Balance				6.5				40.7	6.5	40.7
Charges, Net of Reversals									(0.7)	24.0
Cash Payments									(6.0)	(57.1)
Non-cash Impairment									0.0	0.0
Foreign Currency Translation									0.2	(1.1)
Ending Balance	0.0				6.5				0.0	6.5	40.7
2018/2019 Actions \| Lease cancellation costs
Cost Reduction Actions
Beginning Balance				0.3				0.0	0.3	0.0
Charges, Net of Reversals									0.0	0.3
Cash Payments									0.0	0.0
Non-cash Impairment									0.0	0.0
Foreign Currency Translation									0.0	0.0
Ending Balance	$ 0.3				0.3				0.3	0.3	0.0
2018/2019 Actions \| Asset impairment charges
Cost Reduction Actions
Beginning Balance				$ 0.0				$ 0.0	$ 0.0	0.0
Charges, Net of Reversals										1.6
Cash Payments										0.0
Non-cash Impairment										(1.6)
Foreign Currency Translation										0.0
Ending Balance					$ 0.0					$ 0.0	$ 0.0

COST REDUCTION ACTIONS - Restructuring Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Restructuring charges:
Restructuring charges	$ 55.3	$ 51.1
Other expense (income), net
Restructuring charges:
Restructuring charges	55.3	50.4	$ 73.7
Label and Graphic Materials \| Other expense (income), net
Restructuring charges:
Restructuring charges	27.9	29.0	57.8
Retail Branding and Information Solutions \| Other expense (income), net
Restructuring charges:
Restructuring charges	18.7	9.8	11.9
Industrial and Healthcare Materials \| Other expense (income), net
Restructuring charges:
Restructuring charges	8.4	9.4	4.0
Corporate Segment \| Other expense (income), net
Restructuring charges:
Restructuring charges	$ 0.3	$ 2.2	$ 0.0

TAXES BASED ON INCOME (Details) - USD ($) $ in Millions	12 Months Ended
TAXES BASED ON INCOME (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Current:
U.S. federal tax	$ 1.1	$ 11.0	$ (19.7)
State taxes	1.9	0.5	0.8
International taxes	168.5	148.1	134.3
Total	171.5	159.6	115.4
Deferred:
U.S. federal tax	5.0	(168.0)	(6.3)
State taxes	1.6	(8.9)	2.3
International taxes	(0.4)	(39.4)	(26.0)
Total	6.2	(216.3)	(30.0)
Provision for (benefit from) income taxes	$ 177.7	$ (56.7)	$ 85.4

TAXES BASED ON INCOME - Increase (Decrease) in Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
tax provision computed at the U.S. federal statutory rate	$ 154.8	$ 52.4	$ 116.5
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	6.9	(12.8)	3.9
U.S. pension plan settlements and related charges		(76.6)
Tax Cuts and Jobs Act			(34.7)
Foreign earnings taxed at different rates	51.4	56.2	44.0
Excess tax benefits associated with stock-based payments	(3.2)	(7.8)	(7.7)
Foreign tax structuring and planning transactions		(47.9)	(31.0)
GILTI high-tax exclusion election, net	(12.5)
Valuation allowance	(3.3)	2.0	10.7
U.S. federal research and development tax credits	(6.2)	(6.1)	(6.1)
Tax contingencies and audit settlements	(5.5)	(11.8)	(11.9)
Other items, net	(4.7)	(4.3)	1.7
Provision for (benefit from) income taxes	177.7	(56.7)	85.4
Tax effects of pension plan settlement charges associated with the termination of the ADPP		102.0	19.0
Net tax benefit as a result of TCJA			$ 34.7
Tax benefits from decreases in tax reserves, including associated interest and penalties, as a result of closing tax years, and the effective settlements of certain foreign tax audits	22.4
Tax charge related to our eligibility for incentive tax rates in a foreign jurisdiction for tax years 2016-2020 and additional interest and penalty accruals	$ 16.6
ADPP
Increase (decrease) in taxes resulting from:
Tax effects of pension plan settlement charges associated with the termination of the ADPP		102.0
Release of stranded tax effects in AOCI through the income statement		$ 77.0

TAXES BASED ON INCOME - Effective Tax Rate (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Effective tax rate (as a percent)	24.10%	(22.70%)	15.40%
Tax effect on the pretax charge		$ 102.0	$ 19.0
Recognized loss on settlements	$ 0.5	444.1	93.7
Net tax charge related to the tax on global intangible low-taxed income ("GILTI") of foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from foreign-derived intangible income ("FDII")	22.1	24.7
Net tax benefit primarily from decreases in certain tax reserves, including associated interest and penalties, as a result of closing tax years in foreign jurisdictions, partially offset by increases in reserves from change in judgment and additional interest and penalty accruals	5.5
Tax benefit as measurement period adjustments to 2017 TCJA provisional amount in accordance to SAB 118			34.7
Net tax charge for GILTI and BEAT, and the recognition of foreign withholding taxes on current year earnings, offset by the benefit from FDII			31.0
Net tax benefit primarily due to the recognition of a deferred tax asset in a higher tax rate jurisdiction, partially offset by a taxable gain recognized in a lower effective tax rate jurisdiction			31.0
Increase in Valuation allowance due to offsetting effects from changes in deferred taxes and uncertain tax positions			10.7
Corporate income tax rates that was enacted in the U.S. by the TCJA				21.00%
Tax charge as an adjustment to the transition tax			9.5
Tax benefit as an adjustment to the remeasurement of deferred taxes			39.6
Tax charge as an incremental accrual for foreign withholding taxes associated with changes in indefinate reinvestment assertion			3.6
Tax benefit from releasing a previously recorded uncertain tax position			9.4
Deferred tax liability related to future tax consequences from repatriating accumulated earnings from foreign subsidiaries that are not indefinately reinvested	39.0
Return-to-provision adjustment recognized related to an election to be made on 2019 amended U.S. tax return	(12.5)
Tax charge related to change in judgment on uncertain tax positions for tax years 2016-2020 in a foreign jurisdiction	$ 14.3
ADPP
Tax benefits related to the effective settlement of the ADPP		179.0
Tax effect on the pretax charge		102.0
Recognized loss on settlements		444.0
Release of stranded tax effects in AOCI through the income statement		77.0
Tax benefit from a foreign structuring transaction resulting in previously recognized tax losses becoming permanent		47.9
Net tax benefit from the effective settlement of certain German tax audits and decreases in reserves as a result of closing tax years, partially offset by additional interest and penalty accruals, and increases in reserves from change in judgment		11.8	$ 11.9
Tax benefit related to excess tax benefits associated with stock-based payments		$ 7.8

TAXES BASED ON INCOME - Income (Loss) from Continuing Operations before Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Taxes Based on Income
U.S.	$ 123.8	$ (355.4)	$ (7.3)
International	613.5	604.9	562.1
Income before taxes	$ 737.3	$ 249.5	$ 554.8

TAXES BASED ON INCOME - Schedule of Components of the Temporary Differences (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Schedule of components of the temporary differences
Accrued expenses not currently deductible	$ 24.9	$ 25.7
Net operating loss carryforwards	161.4	154.6
Tax credit carryforwards	55.9	46.5
Stock-based compensation	10.7	11.8
Pension and other postretirement benefits	52.4	57.8
Lease liabilities	39.0	30.5
Other assets	32.2	21.3
Valuation allowance	(68.2)	(67.7)
Total deferred tax assets	308.3	280.5
Depreciation and amortization	(80.2)	(41.6)
Repatriation accrual	(39.0)	(18.9)
Foreign operating loss recapture	(3.6)	(3.4)
Lease assets	(38.7)	(29.7)
Total deferred tax liabilities	(161.5)	(93.6)
Total net deferred tax assets	$ 146.8	$ 186.9

TAXES BASED ON INCOME - Net Operating Loss and Tax Carryforwards (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Net operating loss and credit carryforward [Line Items]
Tax credit carryforwards	$ 55.9	$ 46.5
Net operating loss and credit carryforward
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	563.2
Tax credit carryforwards	55.5
2021
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	2.1
Tax credit carryforwards	0.4
2022
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	5.3
Tax credit carryforwards	0.5
2023
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	4.3
Tax credit carryforwards	4.4
2024
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	3.8
Tax credit carryforwards	0.3
2025
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	5.9
Tax credit carryforwards	7.2
2026 - 2040
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	19.1
Tax credit carryforwards	36.2
Indefinite life/no expiry
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	522.7
Tax credit carryforwards	6.5
Foreign Subsidiaries
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	563.0	$ 508.0
State
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards	664.0
Operating loss carryforwards, valuation allowance	$ 624.0

TAXES BASED ON INCOME - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Taxes Based on Income
Unrecognized tax benefits	$ 72.0	$ 69.9	$ 80.8
Unrecognized tax benefits, if recognized, would reduce annual effective income tax rate	63.0	61.0
Accrued interest and penalties for uncertain tax positions, net of tax benefit	$ 22.0	$ 22.0

TAXES BASED ON INCOME - Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at beginning of year	$ 69.9	$ 80.8
Additions for tax positions of current year	6.5	7.5
Additions (reductions) for tax positions of prior years, net	5.2	(6.7)
Settlements with tax authorities	(3.3)	(1.9)
Expirations of statutes of limitations	(8.7)	(8.0)
Changes due to translation of foreign currencies	2.4	(1.8)
Balance at end of year	72.0	$ 69.9
Reasonably possible decrease in uncertain tax positions, including interest and penalties, during the next 12 months	$ 10.0

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Net Sales to Unaffiliated Customers (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net sales to unaffiliated customers
Net sales to unaffiliated customers	$ 1,990.9	$ 1,729.1	$ 1,528.5	$ 1,723.0	$ 1,772.9	$ 1,761.4	$ 1,795.7	$ 1,740.1	$ 6,971.5	$ 7,070.1	$ 7,159.0
Retail Branding and Information Solutions
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,630.9	1,650.3	1,613.2
Retail Branding and Information Solutions \| Apparel
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,432.3	1,458.5	1,441.7
Retail Branding and Information Solutions \| Printer Solutions
Net sales to unaffiliated customers
Net sales to unaffiliated customers									198.6	191.8	171.5
Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									4,715.1	4,745.9	4,851.1
Industrial and Healthcare Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									625.5	673.9	694.7
U.S.
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,683.6	1,638.8	1,625.1
U.S. \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,294.3	1,246.6	1,256.0
Europe
Net sales to unaffiliated customers
Net sales to unaffiliated customers									2,164.7	2,160.2	2,251.4
Europe \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,758.1	1,767.9	1,851.3
Asia
Net sales to unaffiliated customers
Net sales to unaffiliated customers									2,378.5	2,458.5	2,473.2
Asia \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									1,040.8	1,065.0	1,081.2
Latin America
Net sales to unaffiliated customers
Net sales to unaffiliated customers									440.3	498.3	490.0
Latin America \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									340.3	375.4	367.8
Other international
Net sales to unaffiliated customers
Net sales to unaffiliated customers									304.4	314.3	319.3
Other international \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers									281.6	291.0	294.8
China Including HongKong
Net sales to unaffiliated customers
Net sales to unaffiliated customers									$ 1,310.0	$ 1,380.0	$ 1,430.0

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Additional Financial Information by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	$ 1,990.9	$ 1,729.1	$ 1,528.5	$ 1,723.0	$ 1,772.9	$ 1,761.4	$ 1,795.7	$ 1,740.1	$ 6,971.5	$ 7,070.1	$ 7,159.0
Interest expense									(70.0)	(75.8)	(58.5)
Other non-operating expense (income), net									(1.9)	(445.2)	(104.8)
Income before taxes									737.3	249.5	554.8
Capital expenditures									206.2	225.1	227.9
Depreciation and amortization expense									205.3	179.0	181.0
Other expense (income), net	$ (3.7)	$ 12.4	$ 40.0	$ 4.9	$ 31.5	$ 6.7	$ 7.5	$ 7.5	53.6	53.2	69.9
Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									114.2	109.6	92.2
Label and Graphic Materials
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									4,715.1	4,745.9	4,851.1
Label and Graphic Materials \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes									688.8	601.5	568.2
Capital expenditures									87.3	137.8	151.5
Depreciation and amortization expense									107.0	100.2	104.7
Other expense (income), net									22.2	28.3	61.8
Label and Graphic Materials \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									80.3	80.2	78.7
Retail Branding and Information Solutions \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes									144.7	196.6	170.4
Capital expenditures									101.6	63.1	57.1
Depreciation and amortization expense									71.6	52.6	49.0
Other expense (income), net									22.7	9.9	11.4
Retail Branding and Information Solutions \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									27.5	20.6	4.7
Industrial and Healthcare Materials
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									625.5	673.9	694.7
Industrial and Healthcare Materials \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes									58.2	60.0	62.9
Capital expenditures									17.3	24.2	19.3
Depreciation and amortization expense									26.7	26.2	27.3
Other expense (income), net									8.4	9.4	(1.0)
Industrial and Healthcare Materials \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers									6.4	8.8	8.8
Corporate \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes									(82.5)	(87.6)	(83.4)
Other expense (income), net									$ 0.3	$ 5.6	$ (2.3)

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Other Expense (Income), Net by Type (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Restructuring charges:
Restructuring charges									$ 55.3	$ 51.1
Other items:
Transaction and related costs	$ 1.0		$ 0.7	$ 2.5	$ 2.6				4.2	2.6
Legal settlement						$ 3.4				3.4
Other restructuring-related charge											$ 0.5
Net gain on investments	(6.9)	$ 1.5							(5.4)
Net gain on sales of assets	(0.5)							$ (3.2)	(0.5)	(3.2)	(2.7)
Reversal of acquisition-related contingent consideration											(5.0)
Other expense (income), net	(3.7)	12.4	40.0	4.9	31.5	6.7	$ 7.5	7.5	53.6	53.2	69.9
Argentina
Other items:
Argentine peso remeasurement transition loss											3.4
Severance and related costs
Restructuring charges:
Restructuring charges	$ 2.7	6.5	37.5	$ 2.4	25.5	$ 3.3	6.1	10.4	49.1	45.3	63.0
Asset impairment charges and lease cancellation costs
Restructuring charges:
Restructuring charges		$ 4.4	$ 1.8		$ 3.4		$ 1.4	$ 0.3	$ 6.2	$ 5.1	$ 10.7

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Property, plant and equipment, net
Property, plant and equipment, net	$ 1,343.7	$ 1,210.7	$ 1,137.4
U.S.
Property, plant and equipment, net
Property, plant and equipment, net	403.1	366.9	317.3
International
Property, plant and equipment, net
Property, plant and equipment, net	$ 940.6	$ 843.8	$ 820.1

SUPPLEMENTAL FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Inventories
Raw materials	$ 268.6	$ 231.6
Work-in-progress	210.3	201.0
Finished goods	238.3	230.4
Inventories, net	$ 717.2	$ 663.0

SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,476.3	$ 3,171.6
Accumulated depreciation	(2,132.6)	(1,960.9)
Property, plant and equipment, net	1,343.7	1,210.7	$ 1,137.4
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment	26.1	25.1
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	746.4	687.4
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	2,538.6	2,316.9
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 165.2	$ 142.2

SUPPLEMENTAL FINANCIAL INFORMATION - Allowance of credit losses (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Allowance for Credit Losses
Balance at beginning of year	$ 27.1
Provision for credit losses	20.3	$ 10.6	$ 5.1
Amounts written off	(5.7)
Other, including foreign currency translation	2.9
Balance at end of year	$ 44.6	$ 27.1

SUPPLEMENTAL FINANCIAL INFORMATION (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 01, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Research and Development
Research and development expense		$ 112.8	$ 92.6	$ 98.2
Cash paid for interest and income taxes
Interest		69.6	74.3	54.9
Income taxes, net of refunds		203.4	155.0	153.5
Foreign Currency Effects
Foreign currency transaction gains and losses		7.2	9.7	13.4
Deferred Revenue
Total deferred revenue		20.3	12.9
Revenue recognized during the period		12.0	10.8	12.2
Other current liabilities
Deferred Revenue
Total deferred revenue		18.9	12.6
Long-term retirement benefits and other liabilities
Deferred Revenue
Total deferred revenue		$ 1.4	0.3
PragmatIC
Equity Method Investment
Interest of equity method investment		22.90%
Carrying value of equity method investment		$ 5.3	8.8
Addition to equity method investment	$ 4.0
Total software
Capitalized software costs
Software amortization expense		29.0	20.8	$ 20.2
Total software \| Other assets
Capitalized software costs
Cost		506.5	487.2
Accumulated amortization		(370.1)	(334.4)
Software, net		$ 136.4	$ 152.8

QUARTERLY FINANCIAL INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net sales	$ 1,990.9	$ 1,729.1	$ 1,528.5	$ 1,723.0	$ 1,772.9	$ 1,761.4	$ 1,795.7	$ 1,740.1	$ 6,971.5	$ 7,070.1	$ 7,159.0
Gross profit	571.1	484.2	382.9	485.1	484.7	471.7	482.3	465.4	1,923.3	1,904.1	1,915.5
Net income (loss)	$ 191.5	$ 150.5	$ 79.7	$ 134.2	$ 162.5	$ 144.6	$ 143.4	$ (146.9)	$ 555.9	$ 303.6	$ 467.4
Net income (loss) per common share:
Net income (loss) per common share	$ 2.30	$ 1.80	$ 0.96	$ 1.61	$ 1.95	$ 1.72	$ 1.70	$ (1.74)	$ 6.67	$ 3.61	$ 5.35
Net income (loss) per common share, assuming dilution:
Net income (loss) per common share, assuming dilution	$ 2.28	$ 1.79	$ 0.95	$ 1.60	$ 1.92	$ 1.71	$ 1.69	$ (1.74)	$ 6.61	$ 3.57	$ 5.28

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

QUARTERLY FINANCIAL INFORMATION (Unaudited) - Other Expense (Income), Net by Type (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Restructuring charges:
Restructuring charges									$ 55.3	$ 51.1
Other items:
Loss (gain) on investments	$ (6.9)	$ 1.5							(5.4)
Legal settlement						$ 3.4				3.4
Transaction and related costs	1.0		$ 0.7	$ 2.5	$ 2.6				4.2	2.6
Net gain on sales of assets	(0.5)							$ (3.2)	(0.5)	(3.2)	$ (2.7)
Other expense (income), net	(3.7)	12.4	40.0	4.9	31.5	6.7	$ 7.5	7.5	53.6	53.2	69.9
Severance and related costs
Restructuring charges:
Restructuring charges	$ 2.7	6.5	37.5	$ 2.4	25.5	$ 3.3	6.1	10.4	49.1	45.3	63.0
Asset impairment charges and lease cancellation costs
Restructuring charges:
Restructuring charges		$ 4.4	$ 1.8		$ 3.4		$ 1.4	$ 0.3	$ 6.2	$ 5.1	$ 10.7