0001193125-22-049910 | 10-K | XBRL Viewer

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Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 162.7	$ 252.3
Trade accounts receivable, less allowances of $33 and $44.6 at year-end 2021 and 2020, respectively	1,424.5	1,235.2
Inventories	907.2	717.2
Other current assets	240.2	211.5
Total current assets	2,734.6	2,416.2
Property, plant and equipment, net	1,477.7	1,343.7
Goodwill	1,881.5	1,136.4
Other intangibles resulting from business acquisitions, net	911.4	224.9
Deferred tax assets	130.2	197.7
Other assets	836.2	765.0
Total assets	7,971.6	6,083.9
Current liabilities:
Short-term borrowings and current portion of long-term debt and finance leases	318.8	64.7
Accounts payable	1,298.8	1,050.9
Accrued payroll and employee benefits	299.0	239.0
Accrued trade rebates	176.3	140.2
Income taxes payable	74.9	86.3
Other current liabilities	380.1	344.9
Total current liabilities	2,547.9	1,926.0
Long-term debt and finance leases	2,785.9	2,052.1
Long-term retirement benefits and other liabilities	474.9	503.6
Deferred tax liabilities and income taxes payable	238.5	117.3
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 2021 and 2020; issued – 124,126,624 shares at year-end 2021 and 2020; outstanding – 82,605,953 and 83,151,174 shares at year-end 2021 and 2020, respectively	124.1	124.1
Capital in excess of par value	862.3	862.1
Retained earnings	3,880.7	3,349.3
Treasury stock at cost, 41,520,671 and 40,975,450 shares at year-end 2021 and 2020, respectively	(2,659.8)	(2,501.0)
Accumulated other comprehensive loss	(282.9)	(349.6)
Total shareholders' equity	1,924.4	1,484.9
Total liabilities and shareholders' equity	$ 7,971.6	$ 6,083.9

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Consolidated Balance Sheets
Trade accounts receivable, allowances (in dollars)	$ 33.0	$ 44.6
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	82,605,953	83,151,174
Treasury stock, shares	41,520,671	40,975,450

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Statement [Abstract]
Net sales	$ 8,408.3	$ 6,971.5	$ 7,070.1
Cost of products sold	6,095.5	5,048.2	5,166.0
Gross profit	2,312.8	1,923.3	1,904.1
Marketing, general and administrative expense	1,248.5	1,060.5	1,080.4
Other expense (income), net	5.6	53.6	53.2
Interest expense	70.2	70.0	75.8
Other non-operating expense (income), net	(4.1)	1.9	445.2
Income before taxes	992.6	737.3	249.5
Provision for (benefit from) income taxes	248.6	177.7	(56.7)
Equity method investment (losses) gains	(3.9)	(3.7)	(2.6)
Net income	$ 740.1	$ 555.9	$ 303.6
Per share amounts:
Net income per common share (in dollars per share)	$ 8.93	$ 6.67	$ 3.61
Net income per common share, assuming dilution (in dollars per share)	$ 8.83	$ 6.61	$ 3.57
Weighted average number of shares outstanding:
Common shares (in shares)	82.9	83.4	84.0
Common shares, assuming dilution (in shares)	83.8	84.1	85.0

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 740.1	$ 555.9	$ 303.6
Foreign currency translation:
Translation gain (loss)	30.7	(3.0)	2.3
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	27.9	6.2	66.4
Reclassifications to net income	4.4	2.9	266.1
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	5.4	(7.5)	0.5
Reclassifications to net income	(1.7)	(0.1)	(1.4)
Other comprehensive income (loss), net of tax	66.7	(1.5)	333.9
Total comprehensive income, net of tax	$ 806.8	$ 554.4	$ 637.5

Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common stock, $1 par value	Capital in excess of par value	Retained earnings	Treasury stock, at cost	Accumulated other comprehensive loss
Beginning 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 925,425, 792,997 and 2,222,937 shares for treasury for the years ended 2021, 2020 and 2019, respectively	(237.7)				(237.7)
Issuance of 257,189, 389,102 and 665,380 shares under stock-based compensation plans for the years ended 2021, 2020 and 2019, respectively	16.4		2.0	(13.6)	28.0
Contribution of 123,015, 188,229 and 200,742 shares to 401(k) Plan for the years ended 2021, 2020 and 2019, respectively	22.4			13.9	8.5
Dividends of $2.66, $2.36 and $2.26 per share for the years ended 2021, 2020 and 2019, 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 925,425, 792,997 and 2,222,937 shares for treasury for the years ended 2021, 2020 and 2019, respectively	(104.3)				(104.3)
Issuance of 257,189, 389,102 and 665,380 shares under stock-based compensation plans for the years ended 2021, 2020 and 2019, respectively	4.9		(11.9)	(3.4)	20.2
Contribution of 123,015, 188,229 and 200,742 shares to 401(k) Plan for the years ended 2021, 2020 and 2019, respectively	22.7			14.5	8.2
Dividends of $2.66, $2.36 and $2.26 per share for the years ended 2021, 2020 and 2019, 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)
Increase (Decrease) in Stockholders' Equity
Net income	740.1			740.1
Other comprehensive income (loss), net of tax	66.7					66.7
Repurchase of 925,425, 792,997 and 2,222,937 shares for treasury for the years ended 2021, 2020 and 2019, respectively	(180.9)				(180.9)
Issuance of 257,189, 389,102 and 665,380 shares under stock-based compensation plans for the years ended 2021, 2020 and 2019, respectively	9.6		0.2	(7.2)	16.6
Contribution of 123,015, 188,229 and 200,742 shares to 401(k) Plan for the years ended 2021, 2020 and 2019, respectively	24.6			19.1	5.5
Dividends of $2.66, $2.36 and $2.26 per share for the years ended 2021, 2020 and 2019, respectively	(220.6)			(220.6)
Ending balance at Jan. 01, 2022	$ 1,924.4	$ 124.1	$ 862.3	$ 3,880.7	$ (2,659.8)	$ (282.9)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- 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.

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock issued under stock-based compensation plans (in shares)	257,189	389,102	665,380
Stock issued under 401(k) Plan (in shares)	123,015	188,229	200,742
Dividends per common share (in dollars per share)	$ 2.66	$ 2.36	$ 2.26
Treasury stock, at cost
Repurchase of shares for treasury (in shares)	925,425	792,997	2,222,937

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Operating Activities
Net income	$ 740.1	$ 555.9	$ 303.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	167.3	154.2	140.3
Amortization	76.8	51.1	38.7
Provision for credit losses and sales returns	35.7	64.0	58.7
Stock-based compensation	37.2	24.0	34.5
Pension plan settlements and related charges	1.6	0.5	444.1
Deferred taxes and other non-cash taxes	2.6	9.3	(216.9)
Other non-cash expense and loss (income and gain), net	10.1	44.9	28.3
Changes in assets and liabilities and other adjustments:
Trade accounts receivable	(113.2)	14.7	(42.2)
Inventories	(182.7)	(6.0)	(18.1)
Accounts payable	255.2	(68.2)	46.4
Taxes on income	(7.3)	(35.2)	5.4
Other assets	4.1	18.2	38.4
Other liabilities	19.3	(76.1)	(114.7)
Net cash provided by operating activities	1,046.8	751.3	746.5
Investing Activities
Purchases of property, plant and equipment	(255.0)	(201.4)	(219.4)
Purchases of software and other deferred charges	(17.1)	(17.2)	(37.8)
Proceeds from sales of property, plant and equipment	1.1	9.2	7.8
Proceeds from insurance and sales (purchases) of investments, net	3.1	5.6	4.9
Proceeds from sale of product line	7.6	0.0	0.0
Payments for acquisitions, net of cash acquired, and investments in businesses	(1,477.6)	(350.4)	(6.5)
Net cash used in investing activities	(1,737.9)	(554.2)	(251.0)
Financing Activities
Net increase (decrease) in borrowings with maturities of three months or less	259.2	(110.4)	(5.3)
Additional borrowings under revolving credit facility		500.0
Repayments of borrowings under revolving credit facility		(500.0)
Additional long-term borrowings	791.7	493.7
Repayments of long-term debt and finance leases	(13.4)	(270.2)	(18.6)
Dividends paid	(220.6)	(196.8)	(189.7)
Share repurchases	(180.9)	(104.3)	(237.7)
Net (tax withholding) proceeds related to stock-based compensation	(25.4)	(19.7)	(17.4)
Other	(6.3)		(1.6)
Net cash provided by (used in) financing activities	604.3	(207.7)	(470.3)
Effect of foreign currency translation on cash balances	(2.8)	9.2	(3.5)
Increase (decrease) in cash and cash equivalents	(89.6)	(1.4)	21.7
Cash and cash equivalents, beginning of year	252.3	253.7	232.0
Cash and cash equivalents, end of year	$ 162.7	$ 252.3	$ 253.7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 01, 2022

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, imprinting equipment and related solutions, and shelf-edge pricing, productivity, and consumer engagement solutions.

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

Our fiscal years generally consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks; our 2021 and 2019 fiscal years consisted of

52-week

periods ending January

, 2022 and December 28, 2019, respectively. Our 2020 fiscal year consisted of a

53-week

period ending January

, 2021.

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. The business and economic uncertainty caused by the COVID-19 pandemic has made these estimates and assumptions more difficult to determine. As future events and their effect cannot be determined with precision, actual results could differ significantly from those 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 these instruments.

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. We record inventory that is damaged, obsolete, excess and slow-moving

to cost of products sold

and we establish a lower cost basis for the inventory. Slow-moving inventory is reviewed by category and may be recognized partially or fully to cost of products sold depending on the type of product, level of usage, and length of time the product has been included in inventory.

Trade Accounts Receivable

We record trade accounts receivable at the invoiced amount. Our allowance for credit losses reflects 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.

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. We determine if an arrangement is a lease or contains a lease at inception. 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 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 using 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. 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 our decision to divest a portion of a reporting unit. In performing 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 uses a present value (discounted cash flow) method to determine the fair value of reporting units with goodwill.

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. Our assumptions about discount rates are based on the weighted average cost of capital for comparable companies. Our assumptions about sales, operating margins and growth rates are based on our forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. We also make assumptions for varying perpetual growth rates for periods beyond our 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. 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 indefinite-lived intangible asset impairment. If we decide not to perform a qualitative assessment, or if the qualitative assessment indicates that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we perform a quantitative assessment. 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.

We account 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 is 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.

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. In 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, which are observable inputs such as quoted prices in active markets; Level 2, which are inputs

other than

quoted prices in active markets that are either directly or indirectly observable; and Level 3, which are unobservable inputs in which little or no market data exists, and 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 the 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 2021, 2020 or 2019.

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 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 using 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 financial 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 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.

Recent Accounting Requirements

In November 2021, the Financial Accounting Standards Board (“FASB”) issued an accounting guidance update that requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. This guidance is effective for our annual disclosures for our fiscal year beginning January 2, 2022. We are currently assessing the impact of this guidance on our disclosures.

In October 2021, the FASB issued an accounting guidance update that requires entities to recognize and measure contract assets and liabilities acquired in a business combination in accordance with revenue recognition guidance. The update will generally result in an entity recognizing contract assets and liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than fair value. This guidance is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. We will adopt this guidance at the beginning of our fiscal year on January 2, 2022.

ACQUISITIONS

12 Months Ended

Jan. 01, 2022

ACQUISITIONS

ACQUISITIONS

NOTE 2. ACQUISITIONS

Vestcom Acquisition

On August 31, 2021, we completed our acquisition of

CB Velocity Holdings, LLC (“Vestcom”), an

Arkansas-based provider of shelf-edge pricing, productivity and consumer engagement solutions for retailers and consumer packaged goods companies, for purchase consideration

of $1.47 billion. We funded this acquisition using a combination of cash and proceeds from commercial paper borrowings and issuances of senior notes. Refer to Note 4, “Debt,” to the Consolidated Financial Statements for more information.

We believe Vestcom’s solutions expand our position in high value categories while adding channel access and data management capabilities to our Retail Branding and Information Solutions (“RBIS”) reportable segment.

The table below summarizes the preliminary fair value of assets acquired and liabilities assumed in the Vestcom acquisition.


(In millions)
Cash and cash equivalents	$	24.3
Trade accounts receivable		98.7
Other current assets		28.5
Property, plant and equipment		56.3
Goodwill		756.6
Other intangibles resulting from business acquisition		727.0
Other assets		22.7
Total assets		1,714.1
Current liabilities		47.5
Other liabilities		17.2
Deferred and non-current income tax liabilities		184.3
Total liabilities		249.0
Net assets acquired	$	1,465.1

The final allocation of purchase consideration to assets and liabilities is

ongoing

as we continue to evaluate certain balances, estimates and assumptions during the measurement period (up to one year from the acquisition date). Consistent with the allowable time to complete our assessment, the valuation of certain acquired assets and liabilities, including environmental liabilities and income taxes, is currently

pending finalization.

The impact of the Vestcom acquisition was not material to the proforma net sales or net income of our combined operations for the periods presented. Net sales and net income related to Vestcom post-acquisition were not material to the Consolidated Statements of Income for the periods presented.

Other 2021 Acquisitions

On March 18, 2021, we completed our acquisition of the net assets of ZippyYum, LLC (“ZippyYum”), a California-based developer of software products used in the food service and food preparation industries. We believe this acquisition enhances the product portfolio in our RBIS reportable segment.

On March 1, 2021, we completed our acquisition of the issued and outstanding stock of JDC Solutions, Inc. (“JDC”), a Tennessee-based manufacturer of pressure-sensitive specialty tapes. We believe that this acquisition expands the product portfolio in our Industrial and Healthcare Materials (“IHM”) reportable segment.

The acquisitions of ZippyYum and JDC are referred to collectively as the “Other 2021 Acquisitions.”

The aggregate purchase consideration for the Other 2021 Acquisitions was approximately $43 million. We funded the Other 2021 Acquisitions using cash and commercial paper borrowings. In addition to the cash paid at closing, the sellers in one of these acquisitions are eligible for

earn-out

payments of up to approximately $13 million subject to the acquired company’s achievement of certain performance targets.

As of the acquisition date, we

estimate

the fair value of these

earn-out

payments to be approximately $12 million, which has been included in the $43 million of aggregate purchase consideration.

The Other 2021 Acquisitions were not material, individually or in the aggregate, to the Consolidated Financial Statements.

2020 Acquisitions

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. We

believe this acquisition expands our product portfolio in the North American business of our

Labels and Graphic Materials (“

LGM

”)

reportable segment.

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 additional manufacturing capacity. Results for Smartrac’s operations were included in our RBIS reportable segment.

These acquisitions (the “2020 Acquisitions”) were not material, individually or in the aggregate, to

the

Consolidated Financial Statements.

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

12 Months Ended

Jan. 01, 2022

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 2021 indicated that no impairment occurred during 2021. 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 2021 and 2020 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 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
Acquisitions (2)		–			774.5			6.9			781.4
Acquisition adjustment (3)		1.2			–			–			1.2
Translation adjustments		(25.7	)		(10.3	)		(1.5	)		(37.5	)
Goodwill as of January 1, 2022	$	456.4		$	1,236.0		$	189.1		$	1,881.5

(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.

(2)

Goodwill acquired related to the acquisitions of Vestcom, JDC and ZippyYum. We expect nearly all of the recognized goodwill related to the Vestcom and JDC acquisitions not to be deductible for income tax purposes and the recognized goodwill related to the ZippyYum acquisition to be deductible for income tax purposes.

(3)	Measurement period adjustment related to the finalization of the purchase price allocation for the acquisition of ACPO completed in December 2020.

The carrying amounts of goodwill at January 1, 2022 and January 2, 2021 were net of accumulated impairment losses

of $820 million recognized in fiscal year 2009 by our RBIS reportable segment.

Indefinite-Lived Intangible Assets

In connection with our acquisition of Vestcom, we acquired approximately $135

million of identifiable indefinite lived intangible assets consisting of trade names and trademarks. We utilized the income approach to estimate the fair values of acquired identifiable intangibles, primarily using Level 3 inputs. We applied significant judgment in determining the fair value of intangible assets, which included our estimates and assumptions with respect to estimated future revenue and related profit margins, royalty rates, discount rates, and economic lives assigned to the acquired intangible assets.

Results from our annual indefinite-lived intangible assets impairment test in the fourth quarter indicated that no impairment occurred in 2021. The carrying value of indefinite-lived intangible assets resulting from business acquisitions, consisting of trade names and trademarks, was $155.6 million and $22.2 million at January 1, 2022 and January 2, 2021, respectively.

Finite-Lived Intangible Assets

In connection with our acquisition of Vestcom, we acquired approximately

$592

million

of identifiable finite-lived intangible assets, which consisted of customer relationships and patented and other developed technology. We utilized the income approach to estimate the fair values of acquired identifiable intangibles, primarily using Level 3 inputs. We applied significant judgment in determining the fair value of intangible assets, which included our estimates and assumptions with respect to estimated future revenue and related profit margins, customer retention rates, technology migration curves, royalty rates, discount rates, and economic lives assigned to the acquired intangible assets.

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


	Amount (in millions)		Amortization period (in years)

Customer relationships	$	492.0		12
Patented and other developed technology		100.4		7

The intangible assets from the Other 2021 Acquisitions were not material to the Consolidated Financial Statements.

In connection with the 2020 Acquisitions, we acquired

approximately

$106

million of identifiable finite-lived intangible assets, which consisted of customer relationships, trade names and trademarks and patented and other developed technology. We utilized the income and cost approaches to estimate the fair values of acquired identifiable intangibles, primarily using Level 3 inputs.

The table below summarizes the amounts and weighted

average

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 1, 2022 and January 2, 2021, which continue to be amortized.


	2021						2020
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	862.5	$	277.2	$	585.3	$	373.3	$	254.1	$	119.2
Patented and other developed technology		247.7		84.7		163.0		147.3		69.8		77.5
Trade names and trademarks		14.8		9.7		5.1		28.2		22.2		6.0
Other intangibles		3.2		.8		2.4		.2		.2		–
Total	$	1,128.2	$	372.4	$	755.8	$	549.0	$	346.3	$	202.7

Amortization expense for finite-lived intangible assets resulting from business acquisitions was $44.6 million for 2021, $19.9 million for 2020 and $13.5 million for 2019.

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
2022	$	43.5
2023		42.5
2024		40.8
2025		40.0
2026		36.9

DEBT

12 Months Ended

Jan. 01, 2022

DEBT

DEBT

NOTE 4. DEBT

Short-Term Borrowings

We had

$189

million of outstanding borrowings from U.S. commercial paper issuances with a weighted average interest rate of 0.32% as of January

1, 2022 and no outstanding borrowings from U.S. commercial paper as of January

2, 2021.

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 balance

of $113.1 million and $36.9 million outstanding under this program as of January 1, 2022 and January 2, 2021, 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 further 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. We use the Revolver as a

back-up

facility for our commercial paper program

and for other corporate purposes.

No balance was outstanding under the Revolver as of January 1, 2022 or January 2, 2021. Commitment fees associated with the Revolver in 2021, 2020 and 2019 were $.9 million, $.8 million and $1.2 million, respectively.

In addition to the Revolver, we have short-term lines of credit available in various countries of approximately $358 million in the aggregate at January

, 202

. These lines may be cancelled at any time by us or the issuing banks. Short-term borrowings outstanding under

these

lines of credit were $

11.2 million and $

22.2 million at January

, 202

and

January 2, 2021

, respectively, with weighted average interest rate

of 4.97% and 3.6%, respectively.

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

Long-Term Borrowings

In August 2021, we issued $500 million of senior notes, due February 15, 2032, which bear an interest rate of 2.250%, payable semiannually in arrears. Our net proceeds from th

issuance, after deducting underwriting discounts and offering expenses, were $493.7 million. Additionally, in August 2021, we issued $300 million of senior notes, due August 15, 2024, which

we can repay

without penalty on or after August 15, 2022 and bear an interest rate of 0.850%, payable semiannually in arrears. Our net proceeds from th

issuance, after deducting underwriting discounts and offering expenses, were $298 million. We used the net proceeds from these two debt issuances to finance a portion of the Vestcom acquisition.

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.

Our long

-term debt, and their respective interest rates, at

year-end

2021 and 2020 is shown below.


(In millions)	2021		2020
Long-term debt
Medium-term notes:
Series 1995 due 2020 and 2025	$	30.0	$	30.0
Long-term notes:
Senior notes due 2023 at 3.4%		249.5		249.3
Senior notes due 2024 at 0.85%		298.3		–
Senior notes due 2025 at 1.25% (1)		563.3		612.1
Senior notes due 2028 at 4.875%		495.3		494.6
Senior notes due 2030 at 2.650%		494.8		494.2
Senior notes due 2032 at 2.25%		493.9		–
Senior notes due 2033 at 6.0%		149.1		149.0
Less amount classified as current		–		–
Total long-term debt (2)	$	2,774.2	$	2,029.2

(1)	These senior notes are euro-denominated.

(2)	Includes unamortized debt issuance cost s and debt discount s of $12.9 million and $8.2 million, respectively, as of year-end 2021 and $8.7 million and $4.9 million, respectively, as of year-end 2020.

year-end

2021 and 2020, our medium-term notes had 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)
2022	$	–
2023		250.0
2024		300.0
2025		595.3
2026		–
2027 and thereafter		1,650.0

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 t

maintain a specified ratio of total debt in relation to a certain measure of income. As of January 1, 2022 and

January 2, 2021, we were in compliance with our financial covenants.

Our total interest costs in 2021, 2020 and 2019 were $75 million, $73.9 million and $81.1 million, respectively, of which $4.8 million, $3.9 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 their carrying value given their short duration. The fair value of our total debt was

$3.25 billion at January 1, 2022 and $2.34 billion at January 2, 2021. 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.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

FINANCIAL INSTRUMENTS

12 Months Ended

Jan. 01, 2022

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

NOTE 5. FINANCIAL INSTRUMENTS

As of January 1, 2022, the aggregate U.S. dollar equivalent notional value of our outstanding commodity contracts and foreign exchange contracts was $3.5 million and $1.67 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 2021, 2020 or 2019.

Cross-Currency Swap

Following our Smartrac acquisition and 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

. The

fair value of

these contracts was $(10.3) million and

$(36.7) million

as of January 1, 2022 and January 2, 2021, respectively, and

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

2021 or 2020.

Other Derivatives

The following table shows the fair value and balance sheet locations of other derivatives as of January 1, 2022 and January 2, 2021:


	Asset					Liability
(In millions)	Balance Sheet Location	2021		2020		Balance Sheet Location	2021		2020
Foreign exchange contracts	Other current assets	$	6.3	$	5.1	Other current liabilities	$	2.9	$	8.4
Commodity contracts	Other current assets		–		.1	Other current liabilities		–		.1
		$	6.3	$	5.2		$	2.9	$	8.5

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		2021		2020			2019
Foreign exchange contracts	Cost of products sold	$	1.4	$	1.9		$	(1.5	)
Foreign exchange contracts	Marketing, general and administrative expense		21.0		(14.2	)		3.5
		$	22.4	$	(12.3	)	$	2.0

PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Jan. 01, 2022

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 Avery Dennison Pension Plan (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

approximately

% in equity securities,

% in fixed income securities and cash, and

% 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. 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)
2021

Cash	$	10.1	$	10.1	$	–	$	–
Insurance contracts		37.9		–		–		37.9
Pooled funds – real estate investment trusts		11.0		–		–		11.0
Pooled funds – fixed income securities (1)		464.4
Pooled funds – equity securities (1)		302.8
Pooled funds – other investments (1)		48.4
Total international plan assets at fair value	$	874.6
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

(1)	Pooled funds that are measured at fair value using the NAV per unit (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 1, 2022:


	Level 3 Assets
(In millions)	Insurance Contracts			Pooled Funds – Real Estate Investment Trusts		Total
Balance at January 2, 2021	$	41.2		$	–	$	41.2
Net realized and unrealized gain		.7			–		.7
Purchases		3.3			–		3.3
Settlements		(4.6	)		–		(4.6	)
Transfers into Level 3 (1)		–			11.0		11.0
Impact of changes in foreign currency exchange rates		(2.7	)		–		(2.7	)
Balance at January 1, 2022	$	37.9		$	11.0	$	48.9

(1)	Transfers into Level 3 were primarily driven by the use of unobservable inputs in the pricing of the underlying assets.

As a result of the ADPP settlements, there were no U.S. plan assets remaining as of January 1, 202

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 that 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 our 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
	2021						2020
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in projected benefit obligations

Projected benefit obligations at beginning of year	$	77.3		$	953.9		$	75.7		$	811.7
Service cost		–			19.0			–			17.8
Interest cost		1.0			8.9			1.8			11.0
Participant contribution		–			4.7			–			3.7
Amendments		–			(.9	)		–			.4
Actuarial (gain) loss		(1.7	)		(15.6	)		7.1			53.5
Benefits paid		(9.8	)		(23.3	)		(7.3	)		(21.1	)
Settlements		–			(3.7	)		–			(2.4	)
Foreign currency translation		–			(60.6	)		–			79.3
Projected benefit obligations at end of year	$	66.8		$	882.4		$	77.3		$	953.9
Accumulated benefit obligations at end of year	$	66.8		$	806.4		$	77.3		$	883.6

Plan Assets


	Pension Benefits
	2021						2020
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in plan assets
Plan assets at beginning of year	$	–		$	897.2		$	–		$	734.4
Actual return on plan assets		–			37.3			–			91.5
Employer contributions		9.8			20.7			7.3			17.2
Participant contributions		–			4.7			–			3.7
Benefits paid		(9.8	)		(23.3	)		(7.3	)		(21.1)
Settlements		–			(3.7	)		–			(2.4)
Foreign currency translation		–			(58.3	)		–			73.9
Plan assets at end of year	$	–		$	874.6		$	–		$	897.2

Funded Status


	Pension Benefits
	2021						2020
(In millions)	U.S.			Int’l			U.S.			Int’l
Funded status of the plans

Other assets	$	–		$	113.6		$	–		$	92.4
Other accrued liabilities		(7.0	)		(1.0	)		(9.1	)		(1.5	)
Long-term retirement benefits and other liabilities (1)		(59.8	)		(120.4	)		(68.2	)		(147.6	)
Plan assets less than benefit obligations	$	(66.8	)	$	(7.8	)	$	(77.3	)	$	(56.7	)

(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.


	Pension Benefits
	2021						2020
	U.S.			Int’l			U.S.			Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate		2.49	%		1.57	%		2.02	%		1.26	%
Compensation rate increase		–			2.33			–			2.15

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 $261 million and $73 million, respectively, at

year-end

2021 and $295 million and $69 million, respectively, at

year-end

2020.

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 $228 million and $67 million, respectively, at

year-end

2021 and $265

llion and $69 million, respectively, at

year-end

2020.

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
	2021					2020
(In millions)	U.S.		Int’l			U.S.		Int’l
Net actuarial loss	$	15.6	$	41.5		$	18.2	$	83.3
Prior service (credit) cost		–		(4.0	)		–		(3.9	)

Net amount recognized in accumulated other comprehensive loss	$	15.6	$	37.5		$	18.2	$	79.4

The following table shows the

pre-tax

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


	Pension Benefits
	2021						2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Net actuarial loss (gain)	$	(.7	)	$	(34.8	)	$	3.5		$	(13.5	)	$	(44.6	)	$	(42.7)
Prior service credit		–			(.9	)		–			.4			–			1.8
Amortization of unrecognized:
Net actuarial gain		(.8	)		(6.1	)		(.6	)		(5.2	)		(.5	)		(4.0)
Prior service credit (cost)		–			.4			–			.4			–			.4
Settlements		(1.1	)		(.5	)		(.2	)		(.3	)		(442.8	)		(.6	)

Net amount recognized in other comprehensive loss (income)	$	(2.6	)	$	(41.9	)	$	2.7		$	(18.2	)	$	(487.9	)	$	(45.1	)

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
	2021						2020					2019
(In millions)	U.S.			Int’l			U.S.		Int’l			U.S.		Int’l

Service cost	$	–		$	19.0		$	–	$	17.8		$	–	$	15.6
Interest cost		1.0			8.9			1.8		11.0			2.7		14.8
Actuarial loss (gain)		(1.1	)		–			3.7		–			2.5		–
Expected return on plan assets		–			(19.8	)		–		(18.5	)		–		(21.0	)
Amortization of actuarial loss		.8			6.1			.6		5.2			.5		4.0
Amortization of prior service (credit) cost		–			(.4	)		–		(.4	)		–		(.4	)
Recognized loss on settlements (1)		1.1			.5			.2		.3			443.5		.6

Net periodic benefit cost (credit)	$	1.8		$	14.3		$	6.3	$	15.4		$	449.2	$	13.6

(1)

In 2021, settlements in the U.S. related to a

non-qualified

plan; settlements in our international plans related to

lump-sum

payments in Belgium and Switzerland. 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.

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
	2021						2020						2019
	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Discount rate		2.20	%		1.26	%		2.89	%		1.66	%		3.73	%		2.39	%
Expected return on assets		–			2.61			–			2.79			–			3.38
Compensation rate increase		–			2.15			–			2.21			–			2.23

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 2022:


(In millions)


U.S. pension plans	$	7.1
International pension plans		13.5

Future Benefit Payments

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


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

2022	$	7.1	$	20.1
2023		6.3		22.5
2024		6.1		23.6
2025		6.1		22.2
2026		5.9		27.1

2027-2031		22.5		138.5

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

postretirement health benefit plan was closed to

new

eligible participants retiring after December 31, 2021.

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

2021, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately

million and approximately $

million, respectively. At

year-end

2020

, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately $

million and approximately $

million, respectively. Net periodic benefit cost was not material in

2021

2020

2019

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 $24.6 million, $22.7 million and $22.4 million in 2021, 2020 and 2019, 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

2021 and 2020, we had accrued $96.1 million and $95.1 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 separation from our Board. Approximately

.1 million DSUs were outstanding

for both

year-end

2021 and 2020, with an aggregate value of $24 million and $22 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 $272.2 million and $254.8 million at

year-end

2021 and 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

COMMITMENTS AND LEASES

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

COMMITMENTS AND LEASES

NOTE 7. COMMITMENTS AND LEASES

Supplemental cost information related to leases is shown below.


(In millions)	2021		2020		2019
Operating lease costs	$	68.8	$	63.1	$	65.4

Lease costs related to finance leases were not material in 2021, 2020 or 2019.

Supplemental balance sheet information related to leases is shown below.


(In millions)	Balance Sheet Location	2021		2020
Assets
Operating	Other assets		$ 183.0		$ 161.3
Finance (1)	Property, plant and equipment, net		28.9		38.2
Total leased assets			$ 211.9		$ 199.5

Liabilities
Current:
Operating	Other current liabilities		$ 47.3		$ 44.3
Finance	Short-term borrowings and current portion of long-term debt and finance leases		5.5		5.6
Non-current:
Operating	Long-term retirement benefits and other liabilities		135.3		116.0
Finance	Long-term debt and finance leases		11.7		22.9
Total lease liabilities			$ 199.8		$ 188.8

(1)	Finance lease assets are net of accumulated amortization of $10.4 million and $8.3 million as of January 1, 2022 and January 2, 2021, respectively.

Supplemental cash flow information related to leases is shown below.


(In millions)	2021		2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities		$ 54.2		$ 54.9		$ 53.1
Operating lease assets obtained in exchange for operating lease liabilities		58.0		48.4		32.6

Cash flows related to finance leases were not material in 2021, 2020 or 2019.

Weighted average remaining lease term and discount rate information related to leases as of January 1, 2022 is shown below.


	2021			2020
Weighted average remaining lease term (in years):

Operating		6.5			6.2
Finance		3.3			3.2
Weighted average discount rate (percentage):
Operating		3.0	%		4.3	%
Finance		2.9			2.9

Operating and finance lease liabilities by maturity date from January 1, 2022 are shown below.


(In millions)	Operating Leases			Finance Leases
2022	$	51.5		$	6.1
2023		40.1			5.3
2024		29.8			5.0
2025		22.9			1.7
2026		14.4			.2
2027 and thereafter		45.7			–
Total lease payments		204.4			18.3
Less: imputed interest		(21.8	)		(1.1	)
Present value of lease liabilities	$	182.6		$	17.2

As of January 1, 2022, we had no significant operating or finance leases that had not yet commenced.

CONTINGENCIES

12 Months Ended

Jan. 01, 2022

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.

We are currently party to a litigation in which ADASA Inc. (“Adasa”), an unrelated third party, alleged that certain of our radio-frequency identification (“RFID”) products infringed on its patent. We recorded a contingent liability related to this matter in the second quarter of 2021 in the amount of $26.6 million based on a jury verdict issued on May 14, 2021.

During the third quarter of 2021, the first instance judgment associated with the jury verdict was issued. This resulted in additional potential liability of $35.8 million for, among other things,

royalties on a higher number of tags and royalties on tags sold after March 31, 2021. We did not increase the contingent liability we recorded for this additional potential liability. With continued evaluation of the matter and our defenses, as well as consultation with our outside counsel, we continue to believe that

Adasa’s

patent is invalid and that, even if valid, we have not

infringed it, and that the royalty rate used as the basis for the jury’s determination is unreasonable under prevailing industry standards, as well as that any liability related to this matter would be substantially lower than that which is reflected in either the jury verdict or the first instance judgment. On October 22, 2021, we appealed the judgment to the United States Court of Appeals for the Federal Circuit and continue to believe meritorious defenses exist to significantly reduce the liability we currently have recorded.

As our appeal is still pending, we

maintained our current contingent liability of $26.6 million for this matter as a reasonable estimate within the range of probable outcomes.

We have largely completed our migration to alternative encoding methods used in our other RFID tags.

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 determined to be probable in an amount higher or lower than what we have accrued, we would adjust our accrued liabilities accordingly. Additional lawsuits, claims, inquiries, and other regulatory and compliance matters could arise in the future. The range of expenses for resolving any future matters would be assessed as they arise; until then, a range of potential expenses for 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. When it is probable that a loss will be incurred and where a range of the loss can be reasonably estimated, the best estimate within the range is accrued. When the best estimate within the range cannot be determined, the low end of the range is accrued. The ultimate resolution of these matters could affect future results of operations should our exposure be materially different from our estimates or should liabilities be incurred that were not previously accrued. Potential insurance reimbursements are not offset against potential liabilities. We review our estimates of the costs of complying with environmental laws related to remediation and cleanup of various sites, including sites in which governmental agencies have designated us as a potentially responsible party (“PRP”). Environmental expenditures for newly acquired assets and those that extend or improve the economic useful life of existing assets are capitalized and amortized over the shorter of the estimated useful life of the acquired asset or the remaining life of the existing asset.

As of January 1, 2022, 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 determined to be probable 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 2021 and 2020 was as follows:


(In millions)	2021			2020
Balance at beginning of year	$	21.1		$	21.4
Charges, net of reversals		2.9			3.0
Payments		(2.1	)		(3.3	)
Balance at end of year	$	21.9		$	21.1

Approximately $2 million and $9 million, respectively, of the balance was classified as short-term and included in “Other current liabilities” in the Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021.

FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 01, 2022

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 1,

2022:


			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	$	33.9	$	27.1	$	6.8	$	–
Derivative assets		7.1		.6		6.5		–
Bank drafts		14.1		14.1		–		–
Liabilities
Cross-currency swap	$	10.3	$	–	$	10.3	$	–
Derivative liabilities		3.6		–		3.6		–
Contingent consideration liabilities		7.6		–		–		7.6

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		–

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 1, 2022, investments of $.5 million and $33.4 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the Consolidated Balance Sheets. 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. 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.

Contingent consideration liabilities relate to estimated earn-out payments associated with one of the Other 2021 Acquisitions. These payments are based on the acquired company’s achievement of certain performance targets based on the terms of the purchase agreement, and our estimates are based on the expected payments related to these targets. We have classified these liabilities as Level 3. As of January 1, 2022, contingent

consideration

liabilities of approximately $2 million and $6 million were included in “Other current liabilities” and “Long-term retirement benefits and other liabilities,” respectively, in the Consolidated Balance Sheets.

The activity related to contingent consideration in 2021 is shown below.


(In millions)
Acquisition	$	11.6
Payments		(2.6	)
Adjustments		(1.4	)
Balance at year end	$	7.6

In addition to the investments

described

above, we also hold venture investments in privately held companies and utilize the measurement alternative for equity investments that do not have readily determinable fair values, measuring these investments at cost less impairment plus or minus observable price changes in orderly transactions. We recognized net gains of $23 million and $5.4 million in 2021 and 2020, respectively, in “Other expense (income), net” in the Consolidated Income Statements related to these venture investments. The total carrying values of our venture investments were $49.3 million and $22 million as of January 1, 2022 and January 2, 2021, respectively, and included in “Other assets” in the Consolidated Balance Sheets.

- 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. 01, 2022

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)		2021		2020		2019
(A) Net income	$	740.1	$	555.9	$	303.6
(B) Weighted average number of common shares outstanding		82.9		83.4		84.0
Dilutive shares (additional common shares issuable under stock-based awards)		.9		.7		1.0
(C) Weighted average number of common shares outstanding, assuming dilution		83.8		84.1		85.0
Net income per common share (A) ÷ (B)	$	8.93	$	6.67	$	3.61
Net income per common share, assuming dilution (A) ÷ (C)	$	8.83	$	6.61	$	3.57

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 2021, 2020 or 2019.

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION

12 Months Ended

Jan. 01, 2022

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 2021, we repurchased approximately .9 million shares of our common stock at an aggregate cost of $180.9 million. In 2020, we repurchased approximately .8 million shares of our common stock at an aggregate cost of $104.3 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 $359.6 million as of January 1, 2022 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 2021 and 2020 were as follows:


(In millions)	Foreign Currency Translation			Pension and Other Postretirement Benefits			Cash Flow Hedges			Total
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	)
Other comprehensive income (loss) before reclassifications, net of tax		30.7			27.9			5.4			64.0
Reclassifications to net income, net of tax		–			4.4			(1.7	)		2.7

Net current-period other comprehensive income (loss), net of tax		30.7			32.3			3.7			66.7

Balance as of January 1, 2022	$	(217.4	)	$	(60.4	)	$	(5.1	)	$	(282.9	)

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


(In millions)	2021			2020			2019			Statements of Income Location
Cash flow hedges:
Foreign exchange contracts	$	1.3		$	.7		$	2.1		Cost of products sold
Commodity contracts		.9			(.6	)		(.2	)	Cost of products sold

Total before tax		2.2			.1			1.9
Tax		(.5	)		–			(.5	)	Provision for (benefit from) income taxes

Net of tax		1.7			.1			1.4

Pension and other postretirement benefits		(6.0	)		(3.8	)		(445.4	)	Other non-operating expense (income), net
Tax		1.6			.9			179.3		Provision for (benefit from) income taxes

Net of tax		(4.4	)		(2.9	)		(266.1	)

Total reclassifications for the period	$	(2.7	)	$	(2.8	)	$	(264.7	)

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


(In millions)	2021			2020			2019
Foreign currency translation:
Translation gain (loss)	$	(23.2	)	$	27.5		$	(5.5	)
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit		8.5			3.1			19.4
Reclassifications to net income		1.6			.9			179.3
Cash flow hedges:
Gains (losses) recognized on cash flow hedges		1.7			(2.3	)		.2
Reclassifications to net income		(.5	)		–			(.5	)

Income tax (benefit) expense allocated to components of other comprehensive income (loss)	$	(11.9	)	$	29.2		$	192.9

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
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+ Details

LONG-TERM INCENTIVE COMPENSATION

12 Months Ended

Jan. 01, 2022

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 March and

non-employee

directors in May. Certain awards granted to retirement-eligible employees one year or more before their 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)	2021		2020		2019
Stock-based compensation expense	$	37.2	$	24.0	$	34.5
Tax benefit		4.6		2.9		4.3

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

As of January 1, 2022, we had approximately $47 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.

No stock options were granted in fiscal years 2021, 2020 or 2019.

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 January 2, 2021		162.1		$	68.84		4.86	$	14.0
Exercised		(20.1	)		34.19
Outstanding at January 1, 2022		142.0		$	73.76		4.40	$	20.3
Options vested and expected to vest at January 1, 2022		142.0			73.76		4.40		20.3
Options exercisable at January 1, 2022		142.0		$	73.76		4.40	$	20.3

The total intrinsic value of stock options exercised was $3.5 million in 2021, $4 million in 2020 and $23.5 million in 2019. We received approximately $1 million in 2021, $2 million in 2020 and $10 million in 2019 from the exercise of stock options. The tax benefit associated with these exercised options was $.9 million in 2021, $1 million in 2020 and $5.7 million in 2019. 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 the 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 achieving 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 $191.86, $115.07 and $104.43 in 2021, 2020 and 2019, respectively.

The following table summarizes information related to awarded PUs:


	Number of PUs (in thousands)			Weighted average grant-date fair value
Unvested at January 2, 2021		356.6		$	112.31
Granted at target		73.1			191.86
Adjustment for above-target performance (1)		54.3			122.96
Vested		(156.1	)		122.96
Forfeited/cancelled		(5.8	)		132.92

Unvested at January 1, 2022		322.1		$	127.33

(1)	Reflects adjustments for the vesting of awards based on above-target performance for the 201 8 -20 20 performance period.

The fair value of vested PUs was $19.2 million in 2021, $20.4 million in 2020 and $25.6 million in 2019.

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

designated

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 $216.06, $94.55 and $135.85 in 2021, 2020 and 2019, respectively.

The following table summarizes information related to awarded MSUs:


	Number of MSUs (in thousands)			Weighted average grant- date fair value
Unvested at January 2, 2021		235.9		$	110.89
Granted at target		61.2			216.06
Adjustments for above-target performance (1)		62.7			113.24
Vested		(160.1	)		110.99
Forfeited/cancelled		(4.5	)		141.78

Unvested at January 1, 2022		195.2		$	143.16

(1)	Reflects adjustments for the vesting of awards based on above-target performance for each of the tranches of awards vesting in 2021.

The fair value of vested MSUs was $17.8 million in 2021, $17.6 million in 2020 and $15.9 million in 2019.

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 o

four years. RSUs granted to

non-employee

directors generally vest

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 $196.26, $111.71 and $107.18 in 2021, 2020 and 2019, respectively.

The following table summarizes information related to awarded RSUs:


	Number of RSUs (in thousands)			Weighted average grant-date fair value
Unvested at January 2, 2021		51.4		$	109.47
Granted		11.2			196.26
Vested		(26.1	)		104.70
Forfeited/cancelled		(.4	)		108.44
Unvested at January 1, 2022		36.1		$	139.82

The fair value of vested RSUs was $2.7 million, $3.8 million and $4.4 million in 2021, 2020 and 2019, 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

designated

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 $21.3 million in 2021, $13.8 million in 2020 and $19.1 million in 2019. 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 $5.1 million in 2021, $3.3 million in 2020 and $4.4 million in 2019.

COST REDUCTION ACTIONS

12 Months Ended

Jan. 01, 2022

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 2021, we recorded $13.3 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 360 positions and asset impairment charges at numerous locations across our company,

primarily

reflecting

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 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, as well as asset impairment charges.

Our activities related to our 2019/2020 actions began in the fourth quarter of fiscal year 2019 and continued through fiscal year 2021.

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

2021 and 2020, 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.

Our

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

2021 and 2020 related to other 2018/2019 actions were not material.

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 Statemen

ts of

Income.

During 2021, restructuring charges and payments were as follows:


(In millions)	Accrual at January 2, 2021		Charges, Net of Reversals		Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at January 1, 2022
2019/2020 Actions
Severance and related costs	$	28.3	$	10.3	$	(26.2	)	$	–		$	(.9	)	$	11.5
Asset impairment charges		–		2.4		–			(2.4	)		–			–
Lease cancellation costs		–		.6		(.6	)		–			–			–

2018/2019 Actions
Lease cancellation costs		.3		–		(.3	)		–			–			–

Total	$	28.6	$	13.3	$	(27.1	)	$	(2.4	)	$	(.9	)	$	11.5

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

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


(In millions)	2021		2020		2019
Restructuring charges by reportable segment and Corporate
Label and Graphic Materials	$	3.4	$	27.9	$	29.0
Retail Branding and Information Solutions		7.6		18.7		9.8
Industrial and Healthcare Materials		1.6		8.4		9.4
Corporate		1.0		.3		2.2

Total	$	13.6	$	55.3	$	50.4

TAXES BASED ON INCOME

12 Months Ended

Jan. 01, 2022

Taxes Based on Income

TAXES BASED ON INCOME

NOTE 14. TAXES BASED ON INCOME

Taxes based on income were as follows:


(In millions)	2021			2020			2019
Current:
U.S. federal tax	$	7.3		$	1.1		$	11.0
State taxes		5.3			1.9			.5
International taxes		229.9			168.5			148.1
		242.5			171.5			159.6
Deferred:
U.S. federal tax		(1.1	)		5.0			(168.0	)
State taxes		(5.3	)		1.6			(8.9	)
International taxes		12.5			(.4	)		(39.4	)
		6.1			6.2			(216.3	)
Provision for (benefit from) income taxes	$	248.6		$	177.7		$	(56.7	)

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


(In millions)	2021			2020			2019
Tax provision computed at U.S. federal statutory rate (1)	$	208.5		$	154.8		$	52.4
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit (1)		4.5			6.9			(12.8	)
U.S. pension plan settlements and related charges (1)		–			–			(76.6	)
Foreign earnings taxed at different rates (2)		75.4			51.4			56.2
GILTI high-tax exclusion election, net (3)		(22.8	)		(12.5	)		–
Foreign tax structuring and planning transactions (4)		–			–			(47.9	)
Excess tax benefits associated with stock-based payments		(4.1	)		(3.2	)		(7.8	)
Valuation allowance		(4.8	)		(3.3	)		2.0
U.S. federal research and development tax credits		(6.2	)		(6.2	)		(6.1	)
Tax contingencies and audit settlements		3.9			(5.5	)		(11.8	)
Other items, net		(5.8	)		(4.7	)		(4.3	)
Provision for (benefit from) income taxes	$	248.6		$	177.7		$	(56.7	)

(1)

Included in 2019 are tax effects of the pension plan settlement charges associated with the termination of the ADPP. In 2019, tax benefit o

$102

million on the pretax charge was reflected in the tax provision computed at 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.

(

)

All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.

(

)

In 2021, we recognized $

14.1

million and $8.7 million of benefit related to GILTI exclusion elections made on our amended 2018 and originally filed 2020 U.S. federal tax returns, respectively. In 2020, we recognized $12.5 million of benefit related to a GILTI exclusion election

we planned to make

on our amended 2019 U.S. federal tax return.

(

)

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.

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


(In millions)	2021		2020		2019
U.S.	$	88.0	$	123.8	$	(355.4	)
International		904.6		613.5		604.9

Income before taxes	$	992.6	$	737.3	$	249.5

Our effective tax rate was 25%,

24.1%

and

(22.7)%

or fiscal years 2021, 2020 and 2019, res

ectively.

Our 2021 provision for (benefit from) income taxes included (i)

28.5

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”); (ii) $

14.1

million of

return-to-provision

benefit related to a GILTI exclusion election made on our amended 2018 U.S. federal tax return; and (iii) $11.3 million of return-to-provision benefit, including $8.7 million

related to a GILTI exclusion election and a higher FDII deduction reflected on our 2020 U.S. federal tax return.

In fiscal year 2020, the U.S. Department of Treasury issued final regulations that provide certain U.S. taxpayers with an annual election to exclude foreign income subject to a high effective tax rate from their GILTI inclusions. This annual election included an option for retroactive application to tax years 2018 through 2020. We recognized related tax benefits for tax years 2018 through 2020 as of January 1, 2022. We have not yet determined whether to make the election for tax year 2021. We continue to evaluate the impact of these regulations and currently anticipate that the benefit from making this election on our 2021 U.S. federal tax return may be significant.

Our 2021 provision for (benefit from) income taxes also reflected (i) net tax benefit primarily from the release of valuation allowance against certain deferred tax assets in the U.S. and foreign jurisdictions; (ii) net tax benefit primarily from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years; and (iii) net tax charges related to the tax effects of outcomes of certain legal proceedings.

Our 2020 provision for (benefit from) income taxes included (i) $22.1 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; (ii) a $12.5

million return-to-provision adjustment related to an election we planned to make on our 2019 amended U.S. tax return; and (iii) net tax benefit primarily from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years in foreign jurisdictions, partially offset by increases in reserves from changes in judgment and additional interest and penalty accruals.

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

tax effect on the pretax charge of $444 million and $77 million of which was related to the rel

ase 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

Tax Cut

and

Jobs Act.

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) net tax benefit primarily from the effective settlement of certain German tax audits and decreases in reserves as a result of closing tax years; and (iv) excess tax benefits associated with stock-based payments.

Our accumulated earnings in foreign subsidiaries are not indefinitely reinvested and can generally be repatriated to the U.S. without material tax consequences. As of January 1, 2022, we recorded a deferred tax liability of $16.2 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)	2021			2020
Accrued expenses not currently deductible	$	34.6		$	28.1
Net operating loss carryforwards		154.4			161.4
Tax credit carryforwards		34.6			55.9
Stock-based compensation		13.6			10.7
Pension and other postretirement benefits		38.8			52.4
Inventory reserve		14.7			12.9
Lease liabilities		42.5			39.0
Other assets		25.3			16.1
Valuation allowance		(70.1	)		(68.2	)

Total deferred tax assets (1)		288.4			308.3
Depreciation and amortization		(268.9	)		(80.2	)
Repatriation accrual		(16.2	)		(39.0	)
Foreign operating loss recapture		(3.4	)		(3.6	)
Lease assets		(43.8	)		(38.7	)

Total deferred tax liabilities (1)		(332.3	)		(161.5	)

Total net deferred tax assets (liabilities) (2)	$	(43.9	)	$	146.8

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

(2)	2021 included deferred tax liabilities recognized as a result of the acquisition of Vestcom described in Note 2, “Acquisitions.”

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 determined by the manner in which we operate our business and the relevant carryforward periods. 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 1, 2022 and January 2, 2021 were

$508 million and $563

million, respectively.

Tax credit carryforwards of both domestic and foreign subsidiaries at January 1, 2022 and January 2, 2021 totaled $35 million and $56 million, respectively. If unused, foreign net operating losses and tax credit carryforwards will expire as follows:


(In millions)	Net Operating Losses (1)		Tax Credits
Year of Expiry
2022	$	1.7	$	.4
2023		3.8		.4
2024		2.9		.2
2025		3.2		.2
2026		9.4		1.0
2027-2041		19.9		28.2
Indefinite life/no expiry		467.0		4.2

Total	$	507.9	$	34.6

(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 1, 2022, we had net operating loss carryforwards in certain states of

$547

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

$479 million of these carryforwards.

As of January 1, 2022, our provision for (benefit from) income taxes did not materially benefit from applicable tax holidays in

foreign jurisdictions.

Unrecognized Tax Benefits

As of January 1, 2022, our unrecognized tax benefits totaled $74 million, $68 million of which, if recognized,

would reduce our annual effective income tax rate. 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.

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 2021, 2020 and 2019 were not material, individually or in aggregate, to the Consolidated Statements of Income. We have accrued balance

s of $19 million and $22 million for interest and penalties, net of tax benefit, in the

Consolidated Balance Sheets at January 1, 2022 and January 2, 2021, respectively.

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


(In millions)	2021			2020
Balance at beginning of year	$	72.0		$	69.9
Additions for tax positions of current year		9.1			6.5
Additions (reductions) for tax positions of prior years, net		1.2			5.2
Settlements with tax authorities		(1.1	)		(3.3	)
Expirations of statutes of limitations		(5.2	)		(8.7	)
Changes due to translation of foreign currencies		(2.0	)		2.4

Balance at end of year	$	74.0		$	72.0

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 $9 million,

primarily as a result of closing tax years.

The amount of income taxes we pay is subject to ongoing audits by taxing jurisdictions around the world. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts, and circumstances existing at the time. We believe 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 201

. 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: 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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+ Details

SEGMENT AND DISAGGREGATED REVENUE INFORMATION

12 Months Ended

Jan. 01, 2022

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)	2021		2020		2019

Net sales to unaffiliated customers
Label and Graphic Materials:
U.S.	$	1,462.5	$	1,294.3	$	1,246.6
Europe		2,025.5		1,758.1		1,767.9
Asia		1,224.5		1,040.8		1,065.0
Latin America		395.4		340.3		375.4
Other international		322.5		281.6		291.0

Total Label and Graphic Materials		5,430.4		4,715.1		4,745.9

Retail Branding and Information Solutions:
Apparel		1,839.1		1,432.3		1,458.5
Identification Solutions (1) and Vestcom		362.7		198.6		191.8

Total Retail Branding and Information Solutions		2,201.8		1,630.9		1,650.3

Industrial and Healthcare Materials		776.1		625.5		673.9

Net sales to unaffiliated customers	$	8,408.3	$	6,971.5	$	7,070.1

(1)	Previously referred to as Printer Solutions

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


(In millions)	2021		2020		2019

Net sales to unaffiliated customers
U.S.	$	2,065.2	$	1,683.6	$	1,638.8
Europe		2,541.4		2,164.7		2,160.2
Asia		2,914.5		2,378.5		2,458.5
Latin America		537.6		440.3		498.3
Other international		349.6		304.4		314.3

Net sales to unaffiliated customers	$	8,408.3	$	6,971.5	$	7,070.1

Net sales to unaffiliated customers in Asia included sales in China (including Hong Kong) of $1.68 billion in 2021, $1.31 billion in 2020 and $1.38 billion in 2019.

No single customer represented 10% or more of our net sales in year-end 2021, 2020 and 2019. During 2021, 2020 and 2019, our ten largest customers by net sales in the aggregate represented approximately 16%, 17% and 16% of our net sales, respectively.

Additional Segment Information

Additional financial information by reportable segment is shown below.


(In millions)	2021			2020			2019

Intersegment sales

Label and Graphic Materials	$	98.5		$	80.3		$	80.2
Retail Branding and Information Solutions		37.3			27.5			20.6
Industrial and Healthcare Materials		13.3			6.4			8.8

Intersegment sales	$	149.1		$	114.2		$	109.6

Income before taxes
Label and Graphic Materials	$	801.7		$	688.8		$	601.5
Retail Branding and Information Solutions		257.2			144.7			196.6
Industrial and Healthcare Materials		81.6			58.2			60.0
Corporate expense		(81.8	)		(82.5	)		(87.6	)
Interest expense		(70.2	)		(70.0	)		(75.8	)
Other non-operating expense (income), net		4.1			(1.9	)		(445.2	)

Income before taxes	$	992.6		$	737.3		$	249.5

Capital expenditures (1) (2)
Label and Graphic Materials	$	133.6		$	87.3		$	137.8
Retail Branding and Information Solutions		96.3			101.6			63.1
Industrial and Healthcare Materials		36.7			17.3			24.2

Capital expenditures	$	266.6		$	206.2		$	225.1

Depreciation and amortization expense (1)
Label and Graphic Materials	$	114.3		$	107.0		$	100.2
Retail Branding and Information Solutions		102.2			71.6			52.6
Industrial and Healthcare Materials		27.6			26.7			26.2

Depreciation and amortization expense	$	244.1		$	205.3		$	179.0

Other expense (income), net by reportable segment
Label and Graphic Materials	$	(28.1	)	$	22.2		$	28.3
Retail Branding and Information Solutions		36.6			22.7			9.9
Industrial and Healthcare Materials		2.4			8.4			9.4
Corporate		(5.3	)		.3			5.6

Other expense (income), net	$	5.6		$	53.6		$	53.2

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

(2)	Capital expenditures for property, plant and equipment include accruals.

Other expense (income), net by type were as follows:


(In millions)	2021			2020			2019

Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	10.5		$	49.1		$	45.3
Asset impairment charges and lease cancellation costs		3.1			6.2			5.1
Other items:
Transaction and related costs		20.9			4.2			2.6
Loss (gain) on sales of assets, net		.2			(.5	)		(3.2	)
Gain on venture investments, net		(23.0	)		(5.4	)		–
Gain on sale of product line		(5.7	)		–			–
Outcomes of legal proceedings, net (1)		(.4	)		–			3.4

Other expense (income), net	$	5.6		$	53.6		$	53.2

(1)

2021 includes an indirect tax credit based on a Brazilian Federal Supreme Court ruling in our favor in the amount of $29.1 million, partially offset by a contingent liability related to a patent infringement lawsuit in the amount of $26.6 million. Refer to Note 8, “Contingencies” for more information related to the patent infringement lawsuit.

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


(In millions)	2021		2020		2019

Property, plant and equipment, net
U.S.	$	524.0	$	403.1	$	366.9
International		953.7		940.6		843.8

Property, plant and equipment, net	$	1,477.7	$	1,343.7	$	1,210.7

Property, plant a

d equipment, net, located in China (including Hong Kong) was approximately $290 million in 2021, approximately $297 million in 2020 and approximately $282 million in 2019.

- 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
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jan. 01, 2022

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

NOTE 16. SUPPLEMENTAL FINANCIAL INFORMATION

Inventories

year-end

were as follows:


(In millions)	2021		2020
Raw materials	$	393.6	$	268.6
Work-in-progress		233.1		210.3
Finished goods		280.5		238.3

Inventories	$	907.2	$	717.2

Property, Plant and Equipment

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

year-end

were as follows:


(In millions)	2021			2020
Land	$	28.6		$	26.1
Buildings and improvements		777.6			746.4
Machinery and equipment		2,582.2			2,538.6
Construction-in-progress		237.8			165.2

Property, plant and equipment		3,626.2			3,476.3
Accumulated depreciation		(2,148.5	)		(2,132.6	)

Property, plant and equipment, net	$	1,477.7		$	1,343.7

Software

Capitalized software costs at

year-end

were as follows:


(In millions)	2021			2020
Cost	$	403.9		$	506.5
Accumulated amortization		(280.6	)		(370.1	)

Software, net	$	123.3		$	136.4

Software amortization expense was $30.1 million in 2021, $29 million in 2020 and $20.8 million in 2019.

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 was as follows:


(In millions)	2021			2020
Balance at beginning of year	$	44.6		$	27.1
(Reversal of) provision for credit losses (1)		(4.7	)		20.3
Amounts written off		(7.7	)		(5.7	)
Other, including foreign currency translation		.8			2.9
Balance at end of year	$	33.0		$	44.6

(1)	For 2020, our provision for credit losses reflected impacts on customers as a result of COVID-19.

The provision for credit losses was $10.6 million in 2019.

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)	2021		2020		2019
Research and development expense	$	136.6	$	112.8	$	92.6

Supplemental Cash Flow Information

Cash paid for interest and income taxes was as follows:


(In millions)	2021		2020		2019
Interest	$	62.8	$	69.6	$	74.3
Income taxes, net of refunds		253.4		203.4		155.0

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, were not material in 2021, 2020 or 2019.

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 1, 2022 and January 2, 2021:


(In millions)	January 1, 2022		January 2, 2021
Other current liabilities		$24.7		$18.9
Long-term retirement benefits and other liabilities		1.9		1.4

Total deferred revenue		$26.6		$20.3

Revenue recognized from amounts included in deferred revenue as of January 2, 2021 was $18.4 million in 2021. Revenue recognized from amounts included in deferred revenue as of December 28, 2019 was $12 million in 2020. Revenue recognized from amounts included in deferred revenue as of December 29, 2018 was $10.8 million in 2019. This revenue was included in “Net sales” in the Consolidated Statements of Income.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jan. 01, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

die-cutting.

Principles of Consolidation

Fiscal Year

Our fiscal years generally consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks; our 2021 and 2019 fiscal years consisted of

52-week

periods ending January

, 2022 and December 28, 2019, respectively. Our 2020 fiscal year consisted of a

53-week

period ending January

, 2021.

Use of Estimates

Cash and Cash Equivalents

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

cash-in-transit,

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. We record inventory that is damaged, obsolete, excess and slow-moving

to cost of products sold

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.

Property, Plant and Equipment

We generally compute depreciation using the

straight-line

gain or loss included in net income.

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

We account 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 is the U.S. dollar.

Financial Instruments

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

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

Fair Value Measurements

other than

Revenue Recognition

Our payment terms with our customers are generally consistent with those used in the 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 2021, 2020 or 2019.

Valuation of Stock-Based Awards

to estimate the probability of satisfying the target performance objectives established for the award.

Valuation of Cash-Based Awards

Cash-based awards consist of long-term incentive units (“LTI Units”) granted to eligible employees. We classify LTI Units 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.

Recent Accounting Requirements

ACQUISITIONS (Tables)

12 Months Ended

Jan. 01, 2022

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Schedule Of Assets Acquired And Liabilities Assumed In Business Acquisition

The table below summarizes the preliminary fair value of assets acquired and liabilities assumed in the Vestcom acquisition.


(In millions)
Cash and cash equivalents	$	24.3
Trade accounts receivable		98.7
Other current assets		28.5
Property, plant and equipment		56.3
Goodwill		756.6
Other intangibles resulting from business acquisition		727.0
Other assets		22.7
Total assets		1,714.1
Current liabilities		47.5
Other liabilities		17.2
Deferred and non-current income tax liabilities		184.3
Total liabilities		249.0
Net assets acquired	$	1,465.1

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Jan. 01, 2022

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 2021 and 2020 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 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
Acquisitions (2)		–			774.5			6.9			781.4
Acquisition adjustment (3)		1.2			–			–			1.2
Translation adjustments		(25.7	)		(10.3	)		(1.5	)		(37.5	)
Goodwill as of January 1, 2022	$	456.4		$	1,236.0		$	189.1		$	1,881.5

(1)

(2)

(3)	Measurement period adjustment related to the finalization of the purchase price allocation for the acquisition of ACPO completed in December 2020.

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

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


	Amount (in millions)		Amortization period (in years)

Customer relationships	$	492.0		12
Patented and other developed technology		100.4		7

The table below summarizes the amounts and weighted

average

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

Schedule of finite-lived intangible assets


	2021						2020
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	862.5	$	277.2	$	585.3	$	373.3	$	254.1	$	119.2
Patented and other developed technology		247.7		84.7		163.0		147.3		69.8		77.5
Trade names and trademarks		14.8		9.7		5.1		28.2		22.2		6.0
Other intangibles		3.2		.8		2.4		.2		.2		–
Total	$	1,128.2	$	372.4	$	755.8	$	549.0	$	346.3	$	202.7

Estimated amortization expense for finite lived intangible assets


(In millions)	Estimated Amortization Expense
2022	$	43.5
2023		42.5
2024		40.8
2025		40.0
2026		36.9

DEBT (Tables)

12 Months Ended

Jan. 01, 2022

DEBT

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

Our long

-term debt, and their respective interest rates, at

year-end

2021 and 2020 is shown below.


(In millions)	2021		2020
Long-term debt
Medium-term notes:
Series 1995 due 2020 and 2025	$	30.0	$	30.0
Long-term notes:
Senior notes due 2023 at 3.4%		249.5		249.3
Senior notes due 2024 at 0.85%		298.3		–
Senior notes due 2025 at 1.25% (1)		563.3		612.1
Senior notes due 2028 at 4.875%		495.3		494.6
Senior notes due 2030 at 2.650%		494.8		494.2
Senior notes due 2032 at 2.25%		493.9		–
Senior notes due 2033 at 6.0%		149.1		149.0
Less amount classified as current		–		–
Total long-term debt (2)	$	2,774.2	$	2,029.2

(1)	These senior notes are euro-denominated.

(2)	Includes unamortized debt issuance cost s and debt discount s of $12.9 million and $8.2 million, respectively, as of year-end 2021 and $8.7 million and $4.9 million, respectively, as of year-end 2020.

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

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)
2022	$	–
2023		250.0
2024		300.0
2025		595.3
2026		–
2027 and thereafter		1,650.0

- 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

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-Publisher FASB
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Topic 235
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-Section S99
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-Subparagraph (SX 210.12-04(a))
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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+ Details

FINANCIAL INSTRUMENTS (Tables) - Other Derivatives

12 Months Ended

Jan. 01, 2022

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 1, 2022 and January 2, 2021:


	Asset					Liability
(In millions)	Balance Sheet Location	2021		2020		Balance Sheet Location	2021		2020
Foreign exchange contracts	Other current assets	$	6.3	$	5.1	Other current liabilities	$	2.9	$	8.4
Commodity contracts	Other current assets		–		.1	Other current liabilities		–		.1
		$	6.3	$	5.2		$	2.9	$	8.5

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

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		2021		2020			2019
Foreign exchange contracts	Cost of products sold	$	1.4	$	1.9		$	(1.5	)
Foreign exchange contracts	Marketing, general and administrative expense		21.0		(14.2	)		3.5
		$	22.4	$	(12.3	)	$	2.0

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Jan. 01, 2022

Defined Benefit Plans

Schedule of plan benefit obligations

Schedule of plan assets


	Pension Benefits
	2021						2020
(In millions)	U.S.			Int’l			U.S.			Int’l
Change in plan assets
Plan assets at beginning of year	$	–		$	897.2		$	–		$	734.4
Actual return on plan assets		–			37.3			–			91.5
Employer contributions		9.8			20.7			7.3			17.2
Participant contributions		–			4.7			–			3.7
Benefits paid		(9.8	)		(23.3	)		(7.3	)		(21.1)
Settlements		–			(3.7	)		–			(2.4)
Foreign currency translation		–			(58.3	)		–			73.9
Plan assets at end of year	$	–		$	874.6		$	–		$	897.2

Schedule of funded status


	Pension Benefits
	2021						2020
(In millions)	U.S.			Int’l			U.S.			Int’l
Funded status of the plans

Other assets	$	–		$	113.6		$	–		$	92.4
Other accrued liabilities		(7.0	)		(1.0	)		(9.1	)		(1.5	)
Long-term retirement benefits and other liabilities (1)		(59.8	)		(120.4	)		(68.2	)		(147.6	)
Plan assets less than benefit obligations	$	(66.8	)	$	(7.8	)	$	(77.3	)	$	(56.7	)

(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
	2021						2020
	U.S.			Int’l			U.S.			Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate		2.49	%		1.57	%		2.02	%		1.26	%
Compensation rate increase		–			2.33			–			2.15

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


	Pension Benefits
	2021					2020
(In millions)	U.S.		Int’l			U.S.		Int’l
Net actuarial loss	$	15.6	$	41.5		$	18.2	$	83.3
Prior service (credit) cost		–		(4.0	)		–		(3.9	)

Net amount recognized in accumulated other comprehensive loss	$	15.6	$	37.5		$	18.2	$	79.4

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


	Pension Benefits
	2021						2020						2019
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Net actuarial loss (gain)	$	(.7	)	$	(34.8	)	$	3.5		$	(13.5	)	$	(44.6	)	$	(42.7)
Prior service credit		–			(.9	)		–			.4			–			1.8
Amortization of unrecognized:
Net actuarial gain		(.8	)		(6.1	)		(.6	)		(5.2	)		(.5	)		(4.0)
Prior service credit (cost)		–			.4			–			.4			–			.4
Settlements		(1.1	)		(.5	)		(.2	)		(.3	)		(442.8	)		(.6	)

Net amount recognized in other comprehensive loss (income)	$	(2.6	)	$	(41.9	)	$	2.7		$	(18.2	)	$	(487.9	)	$	(45.1	)

Schedule of components of net periodic benefit cost (credit)


	Pension Benefits
	2021						2020					2019
(In millions)	U.S.			Int’l			U.S.		Int’l			U.S.		Int’l

Service cost	$	–		$	19.0		$	–	$	17.8		$	–	$	15.6
Interest cost		1.0			8.9			1.8		11.0			2.7		14.8
Actuarial loss (gain)		(1.1	)		–			3.7		–			2.5		–
Expected return on plan assets		–			(19.8	)		–		(18.5	)		–		(21.0	)
Amortization of actuarial loss		.8			6.1			.6		5.2			.5		4.0
Amortization of prior service (credit) cost		–			(.4	)		–		(.4	)		–		(.4	)
Recognized loss on settlements (1)		1.1			.5			.2		.3			443.5		.6

Net periodic benefit cost (credit)	$	1.8		$	14.3		$	6.3	$	15.4		$	449.2	$	13.6

(1)

In 2021, settlements in the U.S. related to a

non-qualified

plan; settlements in our international plans related to

lump-sum

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


	Pension Benefits
	2021						2020						2019
	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l

Discount rate		2.20	%		1.26	%		2.89	%		1.66	%		3.73	%		2.39	%
Expected return on assets		–			2.61			–			2.79			–			3.38
Compensation rate increase		–			2.15			–			2.21			–			2.23

Schedule of defined benefit plan contributions


(In millions)


U.S. pension plans	$	7.1
International pension plans		13.5

Schedule of anticipated future benefit payments


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

2022	$	7.1	$	20.1
2023		6.3		22.5
2024		6.1		23.6
2025		6.1		22.2
2026		5.9		27.1

2027-2031		22.5		138.5

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)
2021

Cash	$	10.1	$	10.1	$	–	$	–
Insurance contracts		37.9		–		–		37.9
Pooled funds – real estate investment trusts		11.0		–		–		11.0
Pooled funds – fixed income securities (1)		464.4
Pooled funds – equity securities (1)		302.8
Pooled funds – other investments (1)		48.4
Total international plan assets at fair value	$	874.6
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

(1)	Pooled funds that are measured at fair value using the NAV per unit (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 1, 2022:


	Level 3 Assets
(In millions)	Insurance Contracts			Pooled Funds – Real Estate Investment Trusts		Total
Balance at January 2, 2021	$	41.2		$	–	$	41.2
Net realized and unrealized gain		.7			–		.7
Purchases		3.3			–		3.3
Settlements		(4.6	)		–		(4.6	)
Transfers into Level 3 (1)		–			11.0		11.0
Impact of changes in foreign currency exchange rates		(2.7	)		–		(2.7	)
Balance at January 1, 2022	$	37.9		$	11.0	$	48.9

(1)	Transfers into Level 3 were primarily driven by the use of unobservable inputs in the pricing of the underlying assets.

COMMITMENTS AND LEASES (Tables)

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Supplemental cost information related to leases


(In millions)	2021		2020		2019
Operating lease costs	$	68.8	$	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	2021		2020
Assets
Operating	Other assets		$ 183.0		$ 161.3
Finance (1)	Property, plant and equipment, net		28.9		38.2
Total leased assets			$ 211.9		$ 199.5

Liabilities
Current:
Operating	Other current liabilities		$ 47.3		$ 44.3
Finance	Short-term borrowings and current portion of long-term debt and finance leases		5.5		5.6
Non-current:
Operating	Long-term retirement benefits and other liabilities		135.3		116.0
Finance	Long-term debt and finance leases		11.7		22.9
Total lease liabilities			$ 199.8		$ 188.8

(1)	Finance lease assets are net of accumulated amortization of $10.4 million and $8.3 million as of January 1, 2022 and January 2, 2021, respectively.

Supplemental cash flow information related to leases

Supplemental cash flow information related to leases is shown below.


(In millions)	2021		2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities		$ 54.2		$ 54.9		$ 53.1
Operating lease assets obtained in exchange for operating lease liabilities		58.0		48.4		32.6

Schedule of weighted average remaining lease term and discount rate information


	2021			2020
Weighted average remaining lease term (in years):

Operating		6.5			6.2
Finance		3.3			3.2
Weighted average discount rate (percentage):
Operating		3.0	%		4.3	%
Finance		2.9			2.9

Schedule of operating and finance lease liabilities by maturity date

Operating and finance lease liabilities by maturity date from January 1, 2022 are shown below.


(In millions)	Operating Leases			Finance Leases
2022	$	51.5		$	6.1
2023		40.1			5.3
2024		29.8			5.0
2025		22.9			1.7
2026		14.4			.2
2027 and thereafter		45.7			–
Total lease payments		204.4			18.3
Less: imputed interest		(21.8	)		(1.1	)
Present value of lease liabilities	$	182.6		$	17.2

CONTINGENCIES (Tables)

12 Months Ended

Jan. 01, 2022

Loss Contingency [Abstract]

Schedule of activity related to our environmental liabilities

The activity related to our environmental liabilities in 2021 and 2020 was as follows:


(In millions)	2021			2020
Balance at beginning of year	$	21.1		$	21.4
Charges, net of reversals		2.9			3.0
Payments		(2.1	)		(3.3	)
Balance at end of year	$	21.9		$	21.1

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 01, 2022

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 1,

2022:


			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	$	33.9	$	27.1	$	6.8	$	–
Derivative assets		7.1		.6		6.5		–
Bank drafts		14.1		14.1		–		–
Liabilities
Cross-currency swap	$	10.3	$	–	$	10.3	$	–
Derivative liabilities		3.6		–		3.6		–
Contingent consideration liabilities		7.6		–		–		7.6

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		–

Summary of activity related to contingent consideration

The activity related to contingent consideration in 2021 is shown below.


(In millions)
Acquisition	$	11.6
Payments		(2.6	)
Adjustments		(1.4	)
Balance at year end	$	7.6

In addition to the investments

described

NET INCOME PER COMMON SHARE (Tables)

12 Months Ended

Jan. 01, 2022

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)		2021		2020		2019
(A) Net income	$	740.1	$	555.9	$	303.6
(B) Weighted average number of common shares outstanding		82.9		83.4		84.0
Dilutive shares (additional common shares issuable under stock-based awards)		.9		.7		1.0
(C) Weighted average number of common shares outstanding, assuming dilution		83.8		84.1		85.0
Net income per common share (A) ÷ (B)	$	8.93	$	6.67	$	3.61
Net income per common share, assuming dilution (A) ÷ (C)	$	8.83	$	6.61	$	3.57

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION (Tables)

12 Months Ended

Jan. 01, 2022

Stockholders' Equity Note [Abstract]

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

The changes in “Accumulated other comprehensive loss” (net of tax) for 2021 and 2020 were as follows:


(In millions)	Foreign Currency Translation			Pension and Other Postretirement Benefits			Cash Flow Hedges			Total
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	)
Other comprehensive income (loss) before reclassifications, net of tax		30.7			27.9			5.4			64.0
Reclassifications to net income, net of tax		–			4.4			(1.7	)		2.7

Net current-period other comprehensive income (loss), net of tax		30.7			32.3			3.7			66.7

Balance as of January 1, 2022	$	(217.4	)	$	(60.4	)	$	(5.1	)	$	(282.9	)

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)	2021			2020			2019			Statements of Income Location
Cash flow hedges:
Foreign exchange contracts	$	1.3		$	.7		$	2.1		Cost of products sold
Commodity contracts		.9			(.6	)		(.2	)	Cost of products sold

Total before tax		2.2			.1			1.9
Tax		(.5	)		–			(.5	)	Provision for (benefit from) income taxes

Net of tax		1.7			.1			1.4

Pension and other postretirement benefits		(6.0	)		(3.8	)		(445.4	)	Other non-operating expense (income), net
Tax		1.6			.9			179.3		Provision for (benefit from) income taxes

Net of tax		(4.4	)		(2.9	)		(266.1	)

Total reclassifications for the period	$	(2.7	)	$	(2.8	)	$	(264.7	)

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

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


(In millions)	2021			2020			2019
Foreign currency translation:
Translation gain (loss)	$	(23.2	)	$	27.5		$	(5.5	)
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit		8.5			3.1			19.4
Reclassifications to net income		1.6			.9			179.3
Cash flow hedges:
Gains (losses) recognized on cash flow hedges		1.7			(2.3	)		.2
Reclassifications to net income		(.5	)		–			(.5	)

Income tax (benefit) expense allocated to components of other comprehensive income (loss)	$	(11.9	)	$	29.2		$	192.9

LONG-TERM INCENTIVE COMPENSATION (Tables)

12 Months Ended

Jan. 01, 2022

Long-Term Incentive Compensation

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


(In millions)	2021		2020		2019
Stock-based compensation expense	$	37.2	$	24.0	$	34.5
Tax benefit		4.6		2.9		4.3

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 January 2, 2021		162.1		$	68.84		4.86	$	14.0
Exercised		(20.1	)		34.19
Outstanding at January 1, 2022		142.0		$	73.76		4.40	$	20.3
Options vested and expected to vest at January 1, 2022		142.0			73.76		4.40		20.3
Options exercisable at January 1, 2022		142.0		$	73.76		4.40	$	20.3

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 January 2, 2021		356.6		$	112.31
Granted at target		73.1			191.86
Adjustment for above-target performance (1)		54.3			122.96
Vested		(156.1	)		122.96
Forfeited/cancelled		(5.8	)		132.92

Unvested at January 1, 2022		322.1		$	127.33

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 January 2, 2021		235.9		$	110.89
Granted at target		61.2			216.06
Adjustments for above-target performance (1)		62.7			113.24
Vested		(160.1	)		110.99
Forfeited/cancelled		(4.5	)		141.78

Unvested at January 1, 2022		195.2		$	143.16

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 January 2, 2021		51.4		$	109.47
Granted		11.2			196.26
Vested		(26.1	)		104.70
Forfeited/cancelled		(.4	)		108.44
Unvested at January 1, 2022		36.1		$	139.82

COST REDUCTION ACTIONS (Tables)

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring charges and payments

During 2021, restructuring charges and payments were as follows:


(In millions)	Accrual at January 2, 2021		Charges, Net of Reversals		Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at January 1, 2022
2019/2020 Actions
Severance and related costs	$	28.3	$	10.3	$	(26.2	)	$	–		$	(.9	)	$	11.5
Asset impairment charges		–		2.4		–			(2.4	)		–			–
Lease cancellation costs		–		.6		(.6	)		–			–			–

2018/2019 Actions
Lease cancellation costs		.3		–		(.3	)		–			–			–

Total	$	28.6	$	13.3	$	(27.1	)	$	(2.4	)	$	(.9	)	$	11.5

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

Total amount of restructuring charges incurred by reportable segment and Corporate

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


(In millions)	2021		2020		2019
Restructuring charges by reportable segment and Corporate
Label and Graphic Materials	$	3.4	$	27.9	$	29.0
Retail Branding and Information Solutions		7.6		18.7		9.8
Industrial and Healthcare Materials		1.6		8.4		9.4
Corporate		1.0		.3		2.2

Total	$	13.6	$	55.3	$	50.4

TAXES BASED ON INCOME (Tables)

12 Months Ended

Jan. 01, 2022

Taxes Based on Income

Taxes based on income

Taxes based on income were as follows:


(In millions)	2021			2020			2019
Current:
U.S. federal tax	$	7.3		$	1.1		$	11.0
State taxes		5.3			1.9			.5
International taxes		229.9			168.5			148.1
		242.5			171.5			159.6
Deferred:
U.S. federal tax		(1.1	)		5.0			(168.0	)
State taxes		(5.3	)		1.6			(8.9	)
International taxes		12.5			(.4	)		(39.4	)
		6.1			6.2			(216.3	)
Provision for (benefit from) income taxes	$	248.6		$	177.7		$	(56.7	)

The principal items accounting for the difference between taxes

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


(In millions)	2021			2020			2019
Tax provision computed at U.S. federal statutory rate (1)	$	208.5		$	154.8		$	52.4
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit (1)		4.5			6.9			(12.8	)
U.S. pension plan settlements and related charges (1)		–			–			(76.6	)
Foreign earnings taxed at different rates (2)		75.4			51.4			56.2
GILTI high-tax exclusion election, net (3)		(22.8	)		(12.5	)		–
Foreign tax structuring and planning transactions (4)		–			–			(47.9	)
Excess tax benefits associated with stock-based payments		(4.1	)		(3.2	)		(7.8	)
Valuation allowance		(4.8	)		(3.3	)		2.0
U.S. federal research and development tax credits		(6.2	)		(6.2	)		(6.1	)
Tax contingencies and audit settlements		3.9			(5.5	)		(11.8	)
Other items, net		(5.8	)		(4.7	)		(4.3	)
Provision for (benefit from) income taxes	$	248.6		$	177.7		$	(56.7	)

(1)

Included in 2019 are tax effects of the pension plan settlement charges associated with the termination of the ADPP. In 2019, tax benefit o

$102

million on the pretax charge was reflected in the tax provision computed at 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.

(

)

All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.

(

)

In 2021, we recognized $

14.1

we planned to make

on our amended 2019 U.S. federal tax return.

(

)

In 2019, we recognized a net tax benefit of $

47.9

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

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


(In millions)	2021		2020		2019
U.S.	$	88.0	$	123.8	$	(355.4	)
International		904.6		613.5		604.9

Income before taxes	$	992.6	$	737.3	$	249.5

Components of the temporary differences

The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:


(In millions)	2021			2020
Accrued expenses not currently deductible	$	34.6		$	28.1
Net operating loss carryforwards		154.4			161.4
Tax credit carryforwards		34.6			55.9
Stock-based compensation		13.6			10.7
Pension and other postretirement benefits		38.8			52.4
Inventory reserve		14.7			12.9
Lease liabilities		42.5			39.0
Other assets		25.3			16.1
Valuation allowance		(70.1	)		(68.2	)

Total deferred tax assets (1)		288.4			308.3
Depreciation and amortization		(268.9	)		(80.2	)
Repatriation accrual		(16.2	)		(39.0	)
Foreign operating loss recapture		(3.4	)		(3.6	)
Lease assets		(43.8	)		(38.7	)

Total deferred tax liabilities (1)		(332.3	)		(161.5	)

Total net deferred tax assets (liabilities) (2)	$	(43.9	)	$	146.8

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

(2)	2021 included deferred tax liabilities recognized as a result of the acquisition of Vestcom described in Note 2, “Acquisitions.”

Schedule of tax credit and net operating loss carryforwards

If unused, foreign net operating losses and tax credit carryforwards will expire as follows:


(In millions)	Net Operating Losses (1)		Tax Credits
Year of Expiry
2022	$	1.7	$	.4
2023		3.8		.4
2024		2.9		.2
2025		3.2		.2
2026		9.4		1.0
2027-2041		19.9		28.2
Indefinite life/no expiry		467.0		4.2

Total	$	507.9	$	34.6

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

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

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


(In millions)	2021			2020
Balance at beginning of year	$	72.0		$	69.9
Additions for tax positions of current year		9.1			6.5
Additions (reductions) for tax positions of prior years, net		1.2			5.2
Settlements with tax authorities		(1.1	)		(3.3	)
Expirations of statutes of limitations		(5.2	)		(8.7	)
Changes due to translation of foreign currencies		(2.0	)		2.4

Balance at end of year	$	74.0		$	72.0

SEGMENT AND DISAGGREGATED REVENUE INFORMATION (Tables)

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


(In millions)	2021		2020		2019

Net sales to unaffiliated customers
Label and Graphic Materials:
U.S.	$	1,462.5	$	1,294.3	$	1,246.6
Europe		2,025.5		1,758.1		1,767.9
Asia		1,224.5		1,040.8		1,065.0
Latin America		395.4		340.3		375.4
Other international		322.5		281.6		291.0

Total Label and Graphic Materials		5,430.4		4,715.1		4,745.9

Retail Branding and Information Solutions:
Apparel		1,839.1		1,432.3		1,458.5
Identification Solutions (1) and Vestcom		362.7		198.6		191.8

Total Retail Branding and Information Solutions		2,201.8		1,630.9		1,650.3

Industrial and Healthcare Materials		776.1		625.5		673.9

Net sales to unaffiliated customers	$	8,408.3	$	6,971.5	$	7,070.1

(1)	Previously referred to as Printer Solutions

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


(In millions)	2021		2020		2019

Net sales to unaffiliated customers
U.S.	$	2,065.2	$	1,683.6	$	1,638.8
Europe		2,541.4		2,164.7		2,160.2
Asia		2,914.5		2,378.5		2,458.5
Latin America		537.6		440.3		498.3
Other international		349.6		304.4		314.3

Net sales to unaffiliated customers	$	8,408.3	$	6,971.5	$	7,070.1

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

Additional financial information by reportable segment is shown below.


(In millions)	2021			2020			2019

Intersegment sales

Label and Graphic Materials	$	98.5		$	80.3		$	80.2
Retail Branding and Information Solutions		37.3			27.5			20.6
Industrial and Healthcare Materials		13.3			6.4			8.8

Intersegment sales	$	149.1		$	114.2		$	109.6

Income before taxes
Label and Graphic Materials	$	801.7		$	688.8		$	601.5
Retail Branding and Information Solutions		257.2			144.7			196.6
Industrial and Healthcare Materials		81.6			58.2			60.0
Corporate expense		(81.8	)		(82.5	)		(87.6	)
Interest expense		(70.2	)		(70.0	)		(75.8	)
Other non-operating expense (income), net		4.1			(1.9	)		(445.2	)

Income before taxes	$	992.6		$	737.3		$	249.5

Capital expenditures (1) (2)
Label and Graphic Materials	$	133.6		$	87.3		$	137.8
Retail Branding and Information Solutions		96.3			101.6			63.1
Industrial and Healthcare Materials		36.7			17.3			24.2

Capital expenditures	$	266.6		$	206.2		$	225.1

Depreciation and amortization expense (1)
Label and Graphic Materials	$	114.3		$	107.0		$	100.2
Retail Branding and Information Solutions		102.2			71.6			52.6
Industrial and Healthcare Materials		27.6			26.7			26.2

Depreciation and amortization expense	$	244.1		$	205.3		$	179.0

Other expense (income), net by reportable segment
Label and Graphic Materials	$	(28.1	)	$	22.2		$	28.3
Retail Branding and Information Solutions		36.6			22.7			9.9
Industrial and Healthcare Materials		2.4			8.4			9.4
Corporate		(5.3	)		.3			5.6

Other expense (income), net	$	5.6		$	53.6		$	53.2

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

(2)	Capital expenditures for property, plant and equipment include accruals.

Other expense (income), net by type were as follows:


(In millions)	2021			2020			2019

Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	10.5		$	49.1		$	45.3
Asset impairment charges and lease cancellation costs		3.1			6.2			5.1
Other items:
Transaction and related costs		20.9			4.2			2.6
Loss (gain) on sales of assets, net		.2			(.5	)		(3.2	)
Gain on venture investments, net		(23.0	)		(5.4	)		–
Gain on sale of product line		(5.7	)		–			–
Outcomes of legal proceedings, net (1)		(.4	)		–			3.4

Other expense (income), net	$	5.6		$	53.6		$	53.2

(1)

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

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


(In millions)	2021		2020		2019

Property, plant and equipment, net
U.S.	$	524.0	$	403.1	$	366.9
International		953.7		940.6		843.8

Property, plant and equipment, net	$	1,477.7	$	1,343.7	$	1,210.7

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)

12 Months Ended

Jan. 01, 2022

Supplemental Financial Information

Schedule of inventories

Inventories

year-end

were as follows:


(In millions)	2021		2020
Raw materials	$	393.6	$	268.6
Work-in-progress		233.1		210.3
Finished goods		280.5		238.3

Inventories	$	907.2	$	717.2

Schedule of property, plant and equipment

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

year-end

were as follows:


(In millions)	2021			2020
Land	$	28.6		$	26.1
Buildings and improvements		777.6			746.4
Machinery and equipment		2,582.2			2,538.6
Construction-in-progress		237.8			165.2

Property, plant and equipment		3,626.2			3,476.3
Accumulated depreciation		(2,148.5	)		(2,132.6	)

Property, plant and equipment, net	$	1,477.7		$	1,343.7

Schedule of capitalized software costs

Capitalized software costs at

year-end

were as follows:


(In millions)	2021			2020
Cost	$	403.9		$	506.5
Accumulated amortization		(280.6	)		(370.1	)

Software, net	$	123.3		$	136.4

Software amortization expense was $30.1 million in 2021, $29 million in 2020 and $20.8 million in 2019.

Schedule of allowance for credit losses

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


(In millions)	2021			2020
Balance at beginning of year	$	44.6		$	27.1
(Reversal of) provision for credit losses (1)		(4.7	)		20.3
Amounts written off		(7.7	)		(5.7	)
Other, including foreign currency translation		.8			2.9
Balance at end of year	$	33.0		$	44.6

(1)	For 2020, our provision for credit losses reflected impacts on customers as a result of COVID-19.

Schedule of research and development expense

Research

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



(In millions)	2021		2020		2019
Research and development expense	$	136.6	$	112.8	$	92.6

Schedule of cash paid for interest and income taxes

Cash paid for interest and income taxes was as follows:


(In millions)	2021		2020		2019
Interest	$	62.8	$	69.6	$	74.3
Income taxes, net of refunds		253.4		203.4		155.0

Schedule of amounts and balance sheet locations of deferred revenue

The following table shows the amounts and balance sheet locations of deferred revenue as of January 1, 2022 and January 2, 2021:


(In millions)	January 1, 2022		January 2, 2021
Other current liabilities		$24.7		$18.9
Long-term retirement benefits and other liabilities		1.9		1.4

Total deferred revenue		$26.6		$20.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Summary Of Significant Accounting Policies [Line Items]
Length of fiscal period	364 days	371 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
Minimum
Summary Of Significant Accounting Policies [Line Items]
Software estimated useful lives	5 years
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 \| Argentina
Summary Of Significant Accounting Policies [Line Items]
Cumulative inflation rate				100.00%
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	Aug. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Feb. 28, 2020 USD ($)	Feb. 28, 2020 EUR (€)	Jan. 01, 2022 USD ($)
ACQUISITIONS
Business combination contingent consideration liability						$ 7.6
Smartrac Transponder Division
ACQUISITIONS
Purchase consideration				$ 255.0	€ 232
ACPO Limited
ACQUISITIONS
Purchase consideration			$ 88.0
Vestcom
ACQUISITIONS
Purchase consideration	$ 1,470.0
ZippyYum And Jdc
ACQUISITIONS
Purchase consideration		$ 43.0
Business combination contingent consideration maximum amount		13.0
Business combination contingent consideration liability		$ 12.0

ACQUISITIONS - SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED IN BUSINESS ACQUISTION (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Goodwill	$ 1,881.5	$ 1,136.4	$ 930.8
Vestcom
Business Acquisition [Line Items]
Cash and cash equivalents	24.3
Trade accounts receivable	98.7
Other current assets	28.5
Property, plant and equipment	56.3
Goodwill	756.6
Other intangibles resulting from business acquisition	727.0
Other assets	22.7
Total assets	1,714.1
Current liabilities	47.5
Other liabilities	17.2
Deferred and non-current income tax liabilities	184.3
Total liabilities	249.0
Net assets acquired	$ 1,465.1

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	$ 1,136.4	$ 930.8
Acquisition	781.4	158.5
Acquisition adjustment	1.2
Translation adjustments	(37.5)	47.1
Goodwill, Ending Balance	1,881.5	1,136.4
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets, carrying value	155.6	22.2
Impairment of indefinite-lived intangible assets		0.0
Vestcom
Changes in the net carrying amount of goodwill
Goodwill, Ending Balance	756.6
Finite Lived Intangible Assets Acquired
Intangible assets acquired	592.0
Indefinite-Lived Intangible Assets
Indefinite-lived Intangible Assets Acquired	135.0
Customer relationships
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 492.0	$ 41.4
Amortization period (in years)	12 years	7 years
Patented and other developed technology
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 100.4	$ 62.5
Amortization period (in years)	7 years	11 years
Trade names and trademarks
Finite Lived Intangible Assets Acquired
Intangible assets acquired		$ 2.2
Amortization period (in years)		5 years
Label and Graphic Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	$ 480.9	$ 407.8
Acquisition		45.8
Acquisition adjustment	1.2
Translation adjustments	(25.7)	27.3
Goodwill, Ending Balance	456.4	480.9
Retail Branding and Information Solutions
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	471.8	349.3
Acquisition	774.5	112.7
Translation adjustments	(10.3)	9.8
Goodwill, Ending Balance	1,236.0	471.8
Accumulated impairment losses	820.0	820.0
Industrial and Healthcare Materials
Changes in the net carrying amount of goodwill
Goodwill, Beginning Balance	183.7	173.7
Acquisition	6.9
Translation adjustments	(1.5)	10.0
Goodwill, Ending Balance	189.1	$ 183.7
ACPO Limited \| Smartrac Transponder Division
Finite Lived Intangible Assets Acquired
Intangible assets acquired	$ 106.0

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Finite-Lived Intangible Assets
Gross Carrying Amount	$ 1,128.2	$ 549.0
Accumulated Amortization	372.4	346.3
Net Carrying Amount	755.8	202.7
Amortization expense on finite-lived intangible assets from business acquisition	44.6	19.9	$ 13.5
Customer relationships
Finite-Lived Intangible Assets
Gross Carrying Amount	862.5	373.3
Accumulated Amortization	277.2	254.1
Net Carrying Amount	585.3	119.2
Patented and other developed technology
Finite-Lived Intangible Assets
Gross Carrying Amount	247.7	147.3
Accumulated Amortization	84.7	69.8
Net Carrying Amount	163.0	77.5
Trade names and trademarks
Finite-Lived Intangible Assets
Gross Carrying Amount	14.8	28.2
Accumulated Amortization	9.7	22.2
Net Carrying Amount	5.1	6.0
Other intangibles
Finite-Lived Intangible Assets
Gross Carrying Amount	3.2	0.2
Accumulated Amortization	0.8	0.2
Net Carrying Amount	$ 2.4	$ 0.0

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Future Amortization Expense (Details) $ in Millions	Jan. 01, 2022 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022	$ 43.5
2023	42.5
2024	40.8
2025	40.0
2026	$ 36.9

DEBT - (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
DEBT - (Details) - USD ($) $ in Millions	Feb. 29, 2020	Jan. 01, 2022	Jan. 02, 2021
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		$ 189.0	$ 0.0
U.S. Commercial paper weighted average interest rate		0.32%
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		$ 113.1	$ 36.9
Revolving credit facility
Short-term debt
Commitment for increased borrowing	$ 400.0
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	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revolving credit facility
Line of Credit Facility [Line Items]
Amount outstanding	$ 0.0	$ 0.0
Commitment fees	0.9	0.8	$ 1.2
Uncommitted lines of credit
Line of Credit Facility [Line Items]
Uncommitted lines of credit	358.0
Short term borrowings outstanding	$ 11.2	$ 22.2
Weighted average interest rate	4.97%	3.60%

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

DEBT - Long-Term Debt and Respective Weighted-Average Interest Rate (Details) - USD ($) $ in Millions	1 Months Ended			5 Months Ended
	Aug. 31, 2021	Apr. 30, 2020	Mar. 31, 2020	Jun. 27, 2020	Jan. 01, 2022	Jan. 02, 2021	Mar. 29, 2020
Long-term Debt, Unclassified [Abstract]
Less amount classified as current
Total long-term debt					$ 2,774.2	2,029.2
Unamortized debt issuance cost					12.9	8.7
Unamortized debt discount					8.2	4.9
Repayment of medium-term notes				$ 15.0
ADPP
Long-term Debt, Unclassified [Abstract]
Amount of contribution		$ 250.0
Series 1995 due 2020 and 2025
Long-term Debt, Unclassified [Abstract]
Medium-term notes					$ 30.0	$ 30.0
Medium-Term Notes
Long-term Debt, Unclassified [Abstract]
Weighted-average interest rate					7.50%	7.50%
Senior notes due 2023 at 3.4%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 249.5	$ 249.3
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					$ 563.3	$ 612.1
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					$ 495.3	$ 494.6
Interest rate of senior notes (as a percent)					4.875%	4.875%
Senior notes due 2030 at 2.650%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 494.8	$ 494.2
Senior notes issued							$ 500.0
Interest rate of senior notes (as a percent)					2.65%	2.65%	2.65%
Proceeds, net of underwriting discounts and estimated offering expenses			$ 493.7
Senior notes due 2033 at 6.0%
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 149.1	$ 149.0
Interest rate of senior notes (as a percent)					6.00%	6.00%
Senior Notes Due 2024
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 298.3
Senior notes issued	$ 300.0
Interest rate of senior notes (as a percent)	0.85%				0.85%	0.85%
Proceeds, net of underwriting discounts and estimated offering expenses	$ 298.0
Senior Notes Due 2032
Long-term Debt, Unclassified [Abstract]
Senior notes					$ 493.9
Senior notes issued	$ 500.0
Interest rate of senior notes (as a percent)	2.25%				2.25%	2.25%
Proceeds, net of underwriting discounts and estimated offering expenses	$ 493.7

DEBT - Long-Term Debt and Capital Leases (Details) $ in Millions	Jan. 01, 2022 USD ($)
Maturities of Long-term Debt and Capital Lease Obligations [Abstract]
2022
2023	250.0
2024	300.0
2025	595.3
2026
2027 and thereafter	$ 1,650.0

DEBT - Debt issued and Capital Lease Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Debt Instrument [Line Items]
Interest costs	$ 75.0	$ 73.9	$ 81.1
Interest costs capitalized	4.8	3.9	$ 5.3
Fair value of debt	$ 3,250.0	$ 2,340.0
Covenants compliance	we were in compliance with our financial covenants.	we were in compliance with our financial covenants.

FINANCIAL INSTRUMENTS (Details) $ in Millions	Jan. 01, 2022 USD ($)
Commodity contracts
Financial Instruments
Notional amount	$ 3.5
Foreign exchange contracts
Financial Instruments
Notional amount	$ 1,670.0

FINANCIAL INSTRUMENTS - Cross-Currency Swap (Details) - Cross-Currency Swap - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Mar. 28, 2020
Financial Instruments
Notional amount			$ 250.0
Foreign Currency Contracts, Liability, Fair Value Disclosure	$ (10.3)	$ (36.7)
Amount of ineffectiveness from cross-currency swap	$ 0.0	$ 0.0

FINANCIAL INSTRUMENTS - Net Losses Recognized in Income (Details) - Other Derivatives - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	$ 22.4	$ (12.3)	$ 2.0
Foreign exchange contracts \| Cost of products sold
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	1.4	1.9	(1.5)
Foreign exchange contracts \| Marketing, general and administrative expense
Gains (losses) recognized in current earnings [Line Items]
Net Gains (Losses) in Income	$ 21.0	$ (14.2)	$ 3.5

FINANCIAL INSTRUMENTS - Balance Sheet Locations of Other Derivatives, Fair Value (Details) - Other Derivatives - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset	$ 6.3	$ 5.2
Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability	2.9	8.5
Foreign exchange contracts \| Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset	6.3	5.1
Foreign exchange contracts \| Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability	$ 2.9	8.4
Commodity contracts \| Other current assets [Member]
Other Derivatives, Fair Value [Line Items]
Asset		0.1
Commodity contracts \| Other current liabilities [Member]
Other Derivatives, Fair Value [Line Items]
Liability		$ 0.1

PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Components of net periodic benefit cost (credit)
Recognized loss on settlements	$ 1.6	$ 0.5	$ 444.1
ADPP
Components of net periodic benefit cost (credit)
Recognized loss on settlements			444.0
Settlements			753.0
Tax benefit associated with termination of pension plan			$ 179.0
International \| Equity Securities
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)	32.00%
International \| Fixed income securities and cash
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)	60.00%
International \| Other investments
Components of net periodic benefit cost (credit)
Target assets allocation (as a percent)	8.00%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Defined Benefit Plans (Details) - International - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Defined Benefit Plans
Total plan assets	$ 874.6	$ 897.2	$ 734.4
Cash \| Total
Defined Benefit Plans
Total plan assets at fair value	10.1	3.8
Pooled funds - Fixed income securities \| Total
Defined Benefit Plans
Total plan assets at fair value	464.4	469.9
Pooled funds – Real Estate Investment Trusts \| Total
Defined Benefit Plans
Total plan assets at fair value	11.0
Insurance contracts \| Total
Defined Benefit Plans
Total plan assets at fair value	37.9	41.2
Pooled funds - Other \| Total
Defined Benefit Plans
Total plan assets at fair value	48.4	49.5
Equity Securities \| Total
Defined Benefit Plans
Total plan assets at fair value	302.8	332.8
Quoted Prices in Active Markets (Level 1) \| Cash
Defined Benefit Plans
Total plan assets at fair value	10.1	3.8
Significant Other Observable Inputs (Level 3) \| Pooled funds – Real Estate Investment Trusts
Defined Benefit Plans
Total plan assets at fair value	11.0
Significant Other Observable Inputs (Level 3) \| Insurance contracts
Defined Benefit Plans
Total plan assets at fair value	$ 37.9	$ 41.2

PENSION AND OTHER POSTRETIREMENT BENEFITS - Reconciliation For Assets Measure At Fair Value Using Level 3 (Details) - Significant Other Observable Inputs (Level 3) - International $ in Millions	12 Months Ended
	Jan. 01, 2022 USD ($)
Reconciliation of Level 3 assets
Balance at the beginning of the year	$ 41.2
Net realized and unrealized gain	0.7
Purchases	3.3
Settlements	(4.6)
Transfers into Level 3	11.0
Impact of changes in foreign currency exchange rates	(2.7)
Balance at the end of the year	48.9
Insurance contracts
Reconciliation of Level 3 assets
Balance at the beginning of the year	41.2
Net realized and unrealized gain	0.7
Purchases	3.3
Settlements	(4.6)
Impact of changes in foreign currency exchange rates	(2.7)
Balance at the end of the year	37.9
Pooled funds – Real Estate Investment Trusts
Reconciliation of Level 3 assets
Transfers into Level 3	11.0
Balance at the end of the year	$ 11.0

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Projected Benefit Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
U.S.
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$ 77.3	$ 75.7
Interest cost	1.0	1.8
Actuarial (gain) loss	(1.7)	7.1
Benefits paid	(9.8)	(7.3)
Projected benefit obligations at end of year	66.8	77.3
Accumulated benefit obligations at end of year	66.8	77.3
International
Change in projected benefit obligations
Projected benefit obligations at beginning of year	953.9	811.7
Service cost	19.0	17.8
Interest cost	8.9	11.0
Participant contribution	4.7	3.7
Amendments	(0.9)	0.4
Actuarial (gain) loss	(15.6)	53.5
Benefits paid	(23.3)	(21.1)
Settlements	(3.7)	(2.4)
Foreign currency translation	(60.6)	79.3
Projected benefit obligations at end of year	882.4	953.9
Accumulated benefit obligations at end of year	$ 806.4	$ 883.6

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
U.S.
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 9.8	$ 7.3
Benefits paid	(9.8)	(7.3)
International
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	897.2	734.4
Actual return on plan assets	37.3	91.5
Employer contributions	20.7	17.2
Participant contributions	4.7	3.7
Benefits paid	(23.3)	(21.1)
Settlements	(3.7)	(2.4)
Foreign currency translation	(58.3)	73.9
Plan assets at end of year	$ 874.6	$ 897.2

PENSION AND OTHER POSTRETIREMENT BENEFITS - Funded Status of the Plan (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
U.S.
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation in excess of plan assets	$ 261.0	$ 295.0
Accumulated benefit obligations	228.0	265.0
Fair value of plan assets	67.0	69.0
Fair value of plan assets	73.0	69.0
U.S.
Funded status of the plans
Other accrued liabilities	(7.0)	(9.1)
Long-term retirement benefits and other liabilities	(59.8)	(68.2)
Plan assets less than benefit obligations	$ (66.8)	$ (77.3)
Weighted-average assumptions used to determine year-end benefit obligations
Discount rate (as a percent)	2.49%	2.02%
International
Funded status of the plans
Other assets	$ 113.6	$ 92.4
Other accrued liabilities	(1.0)	(1.5)
Long-term retirement benefits and other liabilities	(120.4)	(147.6)
Plan assets less than benefit obligations	$ (7.8)	$ (56.7)
Weighted-average assumptions used to determine year-end benefit obligations
Discount rate (as a percent)	1.57%	1.26%
Compensation rate increase	2.33%	2.15%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
U.S.
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$ 15.6	$ 18.2
Net amount recognized in accumulated other comprehensive loss	15.6	18.2
International
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	41.5	83.3
Prior service (credit) cost	(4.0)	(3.9)
Net amount recognized in accumulated other comprehensive loss	$ 37.5	$ 79.4

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
U.S.
Defined Benefit Plans
Net actuarial loss (gain)	$ (0.7)	$ 3.5	$ (44.6)
Amortization of unrecognized net actuarial gain	(0.8)	(0.6)	(0.5)
Settlements	(1.1)	(0.2)	(442.8)
Net amount recognized in other comprehensive loss (income)	(2.6)	2.7	(487.9)
International
Defined Benefit Plans
Net actuarial loss (gain)	(34.8)	(13.5)	(42.7)
Prior service credit	(0.9)	0.4	1.8
Amortization of unrecognized net actuarial gain	(6.1)	(5.2)	(4.0)
Amortization of unrecognized prior service credit (cost)	0.4	0.4	0.4
Settlements	(0.5)	(0.3)	(0.6)
Net amount recognized in other comprehensive loss (income)	$ (41.9)	$ (18.2)	$ (45.1)

PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Components of net periodic benefit cost (credit)
Recognized loss on settlements	$ 1.6	$ 0.5	$ 444.1
U.S.
Components of net periodic benefit cost (credit)
Interest cost	1.0	1.8
Actuarial loss (gain)	(1.7)	7.1
U.S. \| Continuing Operations [Member]
Components of net periodic benefit cost (credit)
Interest cost	1.0	1.8	2.7
Actuarial loss (gain)	(1.1)	3.7	2.5
Amortization of actuarial loss	0.8	0.6	0.5
Recognized loss on settlements	1.1	0.2	443.5
Net periodic benefit cost (credit)	1.8	6.3	449.2
International
Components of net periodic benefit cost (credit)
Service cost	19.0	17.8
Interest cost	8.9	11.0
Actuarial loss (gain)	(15.6)	53.5
International \| Continuing Operations [Member]
Components of net periodic benefit cost (credit)
Service cost	19.0	17.8	15.6
Interest cost	8.9	11.0	14.8
Expected return on plan assets	(19.8)	(18.5)	(21.0)
Amortization of actuarial loss	6.1	5.2	4.0
Amortization of prior service (credit) cost	(0.4)	(0.4)	(0.4)
Recognized loss on settlements	0.5	0.3	0.6
Net periodic benefit cost (credit)	$ 14.3	$ 15.4	$ 13.6

PENSION AND OTHER POSTRETIREMENT BENEFITS - Weighted-Average Assumptions for Determining Net Periodic Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
U.S.
Weighted average assumptions used to determine net periodic cost
Discount rate	2.20%	2.89%	3.73%
Company's contributions to the defined benefit plan in the next fiscal year	$ 7.1
International
Weighted average assumptions used to determine net periodic cost
Discount rate	1.26%	1.66%	2.39%
Expected return on assets	2.61%	2.79%	3.38%
Compensation rate increase	2.15%	2.21%	2.23%
Company's contributions to the defined benefit plan in the next fiscal year	$ 13.5

PENSION AND OTHER POSTRETIREMENT BENEFITS - Future Benefit Payments (Details) $ in Millions	Jan. 01, 2022 USD ($)
U.S.
Future Benefit Payments
2022	$ 7.1
2023	6.3
2024	6.1
2025	6.1
2026	5.9
2027-2031	22.5
International
Future Benefit Payments
2022	20.1
2023	22.5
2024	23.6
2025	22.2
2026	27.1
2027-2031	$ 138.5

PENSION AND OTHER POSTRETIREMENT BENEFITS - Postretirement Health Benefits, Defined Contribution and Other Retirement Plans (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Defined contribution and other retirement plans
Postretirement health benefits obligation	$ 2.0	$ 3.0
Accumulated other comprehensive loss relating to postretirement health benefits obligation	12.0	10.0
Value of DSUs outstanding under deferred compensation plans	$ 24.0	$ 22.0
DSUs outstanding under deferred compensation plans	0.1	0.1
Recognized defined contribution plan cost	$ 24.6	$ 22.7	$ 22.4
Deferred compensation plan accrued	$ 96.1	95.1
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	$ 272.2	$ 254.8

COMMITMENTS AND LEASES - Supplemental Cost Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating lease costs	$ 68.8	$ 63.1	$ 65.4

COMMITMENTS AND LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Assets and Liabilities, Lessee [Abstract]
Operating Lease, Assets	$ 183.0	$ 161.3
Operating Lease, Assets (Balance Sheet Location)	Other assets
Finance Lease, Assets	$ 28.9	38.2
Finance Lease, Assets (Balance Sheet Location)	Property, plant and equipment, net
Total leased assets	$ 211.9	199.5
Operating Lease, Current Liabilities	$ 47.3	44.3
Operating Lease, Current Liabilities (Balance Sheet Location)	Other current liabilities
Finance Lease, Current Liabilities	$ 5.5	5.6
Finance Lease, Current Liabilities (Balance Sheet Location)	Short-term borrowings and current portion of long-term debt and finance leases
Operating Lease, Non-current Liabilities	$ 135.3	116.0
Operating Lease, Non-current Liabilities (Balance Sheet Location)	Long-term retirement benefits and other liabilities
Finance Lease, Non-current Liabilities	$ 11.7	22.9
Finance Lease, Non-current Liabilities (Balance Sheet Location)	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total lease liabilities	$ 199.8	188.8
Accumulated amortization, finance lease assets	$ 10.4	$ 8.3

COMMITMENTS AND LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 54.2	$ 54.9	$ 53.1
Operating lease assets obtained in exchange for operating lease liabilities	$ 58.0	$ 48.4	$ 32.6

COMMITMENTS AND LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Jan. 01, 2022	Jan. 01, 2020
Leases [Abstract]
Operating Lease, Weighted average remaining lease term (in years)	6 years 6 months	6 years 2 months 12 days
Finance Lease, Weighted average remaining lease term (in years)	3 years 3 months 18 days	3 years 2 months 12 days
Operating Lease, Weighted average discount rate (as a percent)	3.00%	4.30%
Finance Lease, Weighted average discount rate (as a percent)	2.90%	2.90%

COMMITMENTS AND LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Millions	Jan. 01, 2022 USD ($)
Operating Leases
2022	$ 51.5
2023	40.1
2024	29.8
2025	22.9
2026	14.4
2027 and thereafter	45.7
Total lease payments	204.4
Less: imputed interest	(21.8)
Present value of lease liabilities	182.6
Finance Leases
2022	6.1
2023	5.3
2024	5.0
2025	1.7
2026	0.2
Total lease payments	18.3
Less: imputed interest	(1.1)
Present value of lease liabilities	$ 17.2
Number of operating lease contracts not yet commenced	0
Number of finance lease contract not yet commenced	0

CONTINGENCIES (Details) $ in Millions	12 Months Ended
CONTINGENCIES (Details) $ in Millions	Jan. 01, 2022 USD ($) sites	Jan. 02, 2021 USD ($)	Oct. 02, 2021 USD ($)	May 14, 2021 USD ($)
Environmental Liabilities Associated with Remediation
Environmental site contingency number of sites \| sites	12
Balance at beginning of year	$ 21.1	$ 21.4
Charges, net of reversals	2.9	3.0
Payments	(2.1)	(3.3)
Balance at end of year	21.9	21.1
Short term environmental liabilities	2.0	$ 9.0
Contingent liability	$ 26.6			$ 26.6
Loss contingency, estimate of possible loss			$ 35.8

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	12 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Liabilities
Contingent consideration liabilities	$ 7.6
Other Expense Income Net [Member]
Liabilities
Unrealized gain (loss) on investments	23.0	$ 5.4
Cash and cash equivalents
Assets
Investments	0.5	1.0
Other current assets
Assets
Investments	33.4	32.6
Venture investments	49.3	22.0
Recurring
Assets
Investments	33.9	33.6
Derivative assets	7.1	5.2
Bank drafts	14.1	12.8
Liabilities
Cross-currency swap	10.3	36.7
Derivative liabilities	3.6	9.5
Contingent consideration liabilities	7.6
Quoted Prices in Active Markets (Level 1)
Assets
Investments	27.1	27.4
Derivative assets	0.6	0.1
Bank drafts	14.1	12.8
Liabilities
Derivative liabilities		0.3
Significant Other Observable Inputs (Level 2)
Assets
Investments	6.8	6.2
Derivative assets	6.5	5.1
Liabilities
Cross-currency swap	10.3	36.7
Derivative liabilities	3.6	$ 9.2
Significant Other Observable Inputs (Level 3)
Liabilities
Contingent consideration liabilities	7.6
Significant Other Observable Inputs (Level 3) \| Other Current Liabilities
Liabilities
Contingent consideration liabilities	2.0
Significant Other Observable Inputs (Level 3) \| Long Term Retirement Benefits And Other Liabilities [Member]
Liabilities
Contingent consideration liabilities	$ 6.0

FAIR VALUE MEASUREMENTS - Summary of Activity Related to Contingent Consideration (Details) $ in Millions	12 Months Ended
	Jan. 01, 2022 USD ($)
ACQUISITIONS
Acquisition	$ 11.6
Payments	(2.6)
Adjustment	(1.4)
Balance at year end	$ 7.6

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Net Income Per Common Share
Net income	$ 740.1	$ 555.9	$ 303.6
Weighted average number of common shares outstanding	82.9	83.4	84.0
Dilutive shares (additional common shares issuable under stock-based awards)	0.9	0.7	1.0
Weighted average number of common shares outstanding, assuming dilution	83.8	84.1	85.0
Net income per common share (in dollars per share)	$ 8.93	$ 6.67	$ 3.61
Net income per common share, assuming dilution (in dollars per share)	$ 8.83	$ 6.61	$ 3.57

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
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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

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	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	$ 180.9	$ 104.3	$ 237.7
Share repurchase authorized amount				$ 650.0
Share repurchase remained authorized amount	$ 359.6
Treasury stock, at cost
Repurchase of common stock	925,425	792,997	2,222,937
Repurchase of common stock, value	$ 180.9	$ 104.3	$ 237.7

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	$ 1,484.9	$ 1,204.0	$ 955.1
Net current-period other comprehensive income (loss), net of tax	66.7	(1.5)	333.9
Ending balance	1,924.4	1,484.9	1,204.0
Foreign Currency Translation
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(248.1)	(245.1)
Other comprehensive income (loss) before reclassifications, net of tax	30.7	(3.0)
Reclassifications to net income, net of tax
Net current-period other comprehensive income (loss), net of tax	30.7	(3.0)
Ending balance	(217.4)	(248.1)	(245.1)
Pension and Other Postretirement Benefits
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(92.7)	(101.8)
Other comprehensive income (loss) before reclassifications, net of tax	27.9	6.2
Reclassifications to net income, net of tax	4.4	2.9
Net current-period other comprehensive income (loss), net of tax	32.3	9.1
Ending balance	(60.4)	(92.7)	(101.8)
Cash Flow Hedges
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(8.8)	(1.2)
Other comprehensive income (loss) before reclassifications, net of tax	5.4	(7.5)
Reclassifications to net income, net of tax	(1.7)	(0.1)
Net current-period other comprehensive income (loss), net of tax	3.7	(7.6)
Ending balance	(5.1)	(8.8)	(1.2)
Accumulated other comprehensive loss
Changes in Accumulated other comprehensive loss (net of tax)
Beginning balance	(349.6)	(348.1)	(682.0)
Other comprehensive income (loss) before reclassifications, net of tax	64.0	(4.3)
Reclassifications to net income, net of tax	2.7	2.8
Net current-period other comprehensive income (loss), net of tax	66.7	(1.5)	333.9
Ending balance	$ (282.9)	$ (349.6)	$ (348.1)

- Definition

+ References

+ Details

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Reclassification Adjustment Out of Accumulated Other Comprehensive loss (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold	$ (6,095.5)	$ (5,048.2)	$ (5,166.0)
Income before taxes	992.6	737.3	249.5
Provision for (benefit from) income taxes	(248.6)	(177.7)	56.7
Net income (loss)	740.1	555.9	303.6
Income tax (benefit) expense allocated - Foreign currency translation:
Translation gain (loss)	(23.2)	27.5	(5.5)
Income tax (benefit) expense allocated - Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	8.5	3.1	19.4
Reclassifications to net income	1.6	0.9	179.3
Income tax (benefit) expense allocated - Cash flow hedges:
Gains (losses) recognized on cash flow hedges	1.7	(2.3)	0.2
Reclassifications to net income	(0.5)		(0.5)
Income tax (benefit) expense allocated to components of other comprehensive income (loss)	(11.9)	29.2	192.9
Amounts Reclassified from Accumulated other comprehensive loss
Amounts reclassified from Accumulated other comprehensive loss
Net income (loss)	(2.7)	(2.8)	(264.7)
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	(6.0)	(3.8)	(445.4)
Provision for (benefit from) income taxes	1.6	0.9	179.3
Net income (loss)	(4.4)	(2.9)	(266.1)
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss
Amounts reclassified from Accumulated other comprehensive loss
Income before taxes	2.2	0.1	1.9
Provision for (benefit from) income taxes	(0.5)		(0.5)
Net income (loss)	1.7	0.1	1.4
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss \| Foreign exchange contracts
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold	1.3	0.7	2.1
Cash Flow Hedges \| Amounts Reclassified from Accumulated other comprehensive loss \| Commodity contracts
Amounts reclassified from Accumulated other comprehensive loss
Cost of products sold	$ 0.9	$ (0.6)	$ (0.2)

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. 01, 2022 USD ($) item shares	Jan. 02, 2021 USD ($) shares	Dec. 28, 2019 USD ($) shares
Long-Term Incentive Compensation
Stock option granted \| shares		0	0	0
Total intrinsic value of stock options exercised		$ 3.5	$ 4.0	$ 23.5
Proceeds from exercises of stock options		1.0	2.0	10.0
Tax benefit associated with option exercises		0.9	1.0	5.7
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		37.2	24.0	34.5
Tax benefit		4.6	2.9	4.3
Long-term incentive units \| Marketing, general and administrative expense
Long-Term Incentive Compensation
Cash-based awards compensation expense		21.3	13.8	19.1
Tax Benefit		$ 5.1	$ 3.3	$ 4.4
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		$ 47.0
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. 01, 2022	Jan. 02, 2021
Number of options
Outstanding beginning balance, options	162,100
Exercised, options	(20,100)
Outstanding ending balance, options	142,000.0	162,100
Options vested and expected to vest, options	142,000.0
Options exercisable	142,000.0
Weighted-average exercise price
Outstanding, Weighted-average exercise price, beginning balance	$ 68.84
Exercised, weighted-average exercise price	34.19
Outstanding, Weighted-average exercise price, ending balance	73.76	$ 68.84
Options vested and expected to vest, Weighted-average exercise price	73.76
Options exercisable ,Weighted-average exercise price	$ 73.76
Weighted-average remaining contractual life
Outstanding ,Weighted-average remaining contractual life	4 years 4 months 24 days	4 years 10 months 9 days
Options vested or expected to vest, Weighted-average remaining contractual life	4 years 4 months 24 days
Options exercisable, Weighted-average remaining contractual life	4 years 4 months 24 days
Aggregate intrinsic value
Outstanding, Aggregate intrinsic value	$ 20.3	$ 14.0
Options vested and expected to vest, Aggregate Intrinsic Value	20.3
Options exercisable, Aggregate Intrinsic Value	$ 20.3

LONG-TERM INCENTIVE COMPENSATION - Number of Awards, Weighted-average Grant-date Fair Value (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Performance Units (PS)
Number of awards
Unvested at January 2, 2021	356,600
Granted at target	73,100
Adjustments for above-target performance	54,300
Vested	(156,100)
Forfeited/cancelled	(5,800)
Unvested at January 1, 2022	322,100	356,600
Fair value	$ 19.2	$ 20.4	$ 25.6
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 112.31
Weighted-average grant-date fair value, granted at target	191.86	$ 115.07	$ 104.43
Weighted-average grant-date fair value, adjustment for above-target performance	122.96
Weighted-average grant-date fair value, vested	122.96
Weighted-average grant-date fair value, forfeited/cancelled	132.92
Weighted-average grant-date fair value unvested, ending balance	$ 127.33	$ 112.31
Market-leveraged stock units (MSUs)
Number of awards
Unvested at January 2, 2021	235,900
Granted at target	61,200
Adjustments for above-target performance	62,700
Vested	(160,100)
Forfeited/cancelled	(4,500)
Unvested at January 1, 2022	195,200	235,900
Fair value	$ 17.8	$ 17.6	$ 15.9
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 110.89
Weighted-average grant-date fair value, granted at target	216.06	$ 94.55	$ 135.85
Weighted-average grant-date fair value, adjustment for above-target performance	113.24
Weighted-average grant-date fair value, vested	110.99
Weighted-average grant-date fair value, forfeited/cancelled	141.78
Weighted-average grant-date fair value unvested, ending balance	$ 143.16	$ 110.89
Restricted Stock Units (RSUs)
Number of awards
Unvested at January 2, 2021	51,400
Granted at target	11,200
Vested	(26,100)
Forfeited/cancelled	(400)
Unvested at January 1, 2022	36,100	51,400
Fair value	$ 2.7	$ 3.8	$ 4.4
Weighted-average grant-date fair value
Weighted-average grant-date fair value unvested, beginning balance	$ 109.47
Weighted-average grant-date fair value, granted at target	196.26	$ 111.71	$ 107.18
Weighted-average grant-date fair value, vested	104.70
Weighted-average grant-date fair value, forfeited/cancelled	108.44
Weighted-average grant-date fair value unvested, ending balance	$ 139.82	$ 109.47

COST REDUCTION ACTIONS (Details) $ in Millions	1 Months Ended	12 Months Ended
COST REDUCTION ACTIONS (Details) $ in Millions	Apr. 28, 2018 position	Jan. 01, 2022 USD ($) position	Jan. 02, 2021 USD ($) position
Restructuring charges:
Charges, Net of Reversals		$ 13.3	$ 55.3
2018 Plan
Restructuring charges:
Net number of position reduced as a result of Cost Reduction Actions \| position	150
Charges, Net of Reversals		0.0	0.0
Expected number of positions reduced as a result of Cost Reduction Actions \| position	390
2018/2019 Actions
Restructuring charges:
Charges, Net of Reversals		$ 0.0	$ 0.0
2019/2020 Actions
Restructuring charges:
Net number of position reduced as a result of Cost Reduction Actions \| position		360	2,160
Charges, Net of Reversals		$ 13.3	$ 56.0

COST REDUCTION ACTIONS - Restructuring Charges and Payments (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cost Reduction Actions
Beginning Balance	$ 28.6	$ 28.7
Charges, Net of Reversals	13.3	55.3
Cash Payments	(27.1)	(51.7)
Non-cash Impairment	(2.4)	(6.2)
Foreign Currency Translation	(0.9)	2.5
Ending Balance	11.5	28.6	$ 28.7
Severance and related costs
Cost Reduction Actions
Charges, Net of Reversals	10.5	49.1	45.3
2019/2020 Actions
Cost Reduction Actions
Charges, Net of Reversals	13.3	56.0
2019/2020 Actions \| Severance and related costs
Cost Reduction Actions
Beginning Balance	28.3	21.9
Charges, Net of Reversals	10.3	49.8
Cash Payments	(26.2)	(45.7)
Non-cash Impairment
Foreign Currency Translation	(0.9)	2.3
Ending Balance	11.5	28.3	21.9
2019/2020 Actions \| Asset impairment charges
Cost Reduction Actions
Beginning Balance
Charges, Net of Reversals	2.4	6.2
Cash Payments
Non-cash Impairment	(2.4)	(6.2)
Foreign Currency Translation
Ending Balance
2019/2020 Actions \| Lease cancellation costs
Cost Reduction Actions
Beginning Balance
Charges, Net of Reversals	0.6
Cash Payments	(0.6)
Non-cash Impairment
Foreign Currency Translation
Ending Balance
2018/2019 Actions
Cost Reduction Actions
Charges, Net of Reversals	0.0	0.0
2018/2019 Actions \| Severance and related costs
Cost Reduction Actions
Beginning Balance		6.5
Charges, Net of Reversals		(0.7)
Cash Payments		(6.0)
Non-cash Impairment
Foreign Currency Translation		0.2
Ending Balance			6.5
2018/2019 Actions \| Lease cancellation costs
Cost Reduction Actions
Beginning Balance	0.3	0.3
Charges, Net of Reversals
Cash Payments	(0.3)
Non-cash Impairment
Foreign Currency Translation
Ending Balance		$ 0.3	$ 0.3

COST REDUCTION ACTIONS - Restructuring Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restructuring charges:
Restructuring charges	$ 13.3	$ 55.3
Other expense (income), net
Restructuring charges:
Restructuring charges	13.6	55.3	$ 50.4
Label and Graphic Materials \| Other expense (income), net
Restructuring charges:
Restructuring charges	3.4	27.9	29.0
Retail Branding and Information Solutions \| Other expense (income), net
Restructuring charges:
Restructuring charges	7.6	18.7	9.8
Industrial and Healthcare Materials \| Other expense (income), net
Restructuring charges:
Restructuring charges	1.6	8.4	9.4
Corporate Segment \| Other expense (income), net
Restructuring charges:
Restructuring charges	$ 1.0	$ 0.3	$ 2.2

TAXES BASED ON INCOME (Details) - USD ($) $ in Millions	12 Months Ended
TAXES BASED ON INCOME (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Current:
U.S. federal tax	$ 7.3	$ 1.1	$ 11.0
State taxes	5.3	1.9	0.5
International taxes	229.9	168.5	148.1
Total	242.5	171.5	159.6
Deferred:
U.S. federal tax	(1.1)	5.0	(168.0)
State taxes	(5.3)	1.6	(8.9)
International taxes	12.5	(0.4)	(39.4)
Total	6.1	6.2	(216.3)
Provision for (benefit from) income taxes	$ 248.6	$ 177.7	$ (56.7)

TAXES BASED ON INCOME - Increase (Decrease) in Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Tax provision computed at the U.S. federal statutory rate	$ 208.5	$ 154.8	$ 52.4
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	4.5	6.9	(12.8)
U.S. pension plan settlements and related charges			(76.6)
Foreign earnings taxed at different rates	75.4	51.4	56.2
Excess tax benefits associated with stock-based payments	(4.1)	(3.2)	(7.8)
Foreign tax structuring and planning transactions			(47.9)
GILTI high-tax exclusion election, net	(22.8)	(12.5)
Valuation allowance	(4.8)	(3.3)	2.0
U.S. federal research and development tax credits	(6.2)	(6.2)	(6.1)
Tax contingencies and audit settlements	3.9	(5.5)	(11.8)
Other items, net	(5.8)	(4.7)	(4.3)
Provision for (benefit from) income taxes	248.6	177.7	(56.7)
Benefits earned related to GILTI exclusion election	8.7
Benefits earned related to GILTI exclusion election for amended tax return	$ 14.1
Return-to-provision adjustment related to an election to be made on our 2019 amended U.S. tax return		$ 12.5
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. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Effective tax rate (as a percent)	25.00%	24.10%	(22.70%)
Recognized loss on settlements	$ 1.6	$ 0.5	$ 444.1
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")	28.5	22.1	24.7
Deferred tax liability related to future tax consequences from repatriating accumulated earnings from foreign subsidiaries that are not indefinitely reinvested	16.2
Return-to-provision adjustment related to an election to be made on our 2019 amended U.S. tax return		$ 12.5
Return-to-provision benefit on amended 2020 U.S. tax return.	11.3
Return-to-provision benefit related to a GILTI exclusion election made on our amended 2018 U.S. federal tax return	14.1
Return-to-provision benefit related to a GILTI exclusion election and a higher FDII deduction upon completion of our 2020 U.S. federal tax return	$ 8.7
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

TAXES BASED ON INCOME - Income (Loss) from Continuing Operations before Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Taxes Based on Income
U.S.	$ 88.0	$ 123.8	$ (355.4)
International	904.6	613.5	604.9
Income before taxes	$ 992.6	$ 737.3	$ 249.5

TAXES BASED ON INCOME - Schedule of Components of the Temporary Differences (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Schedule of components of the temporary differences
Accrued expenses not currently deductible	$ 34.6	$ 28.1
Net operating loss carryforwards	154.4	161.4
Tax credit carryforwards	34.6	55.9
Stock-based compensation	13.6	10.7
Pension and other postretirement benefits	38.8	52.4
Inventory reserve	14.7	12.9
Lease liabilities	42.5	39.0
Other assets	25.3	16.1
Valuation allowance	(70.1)	(68.2)
Total deferred tax assets	288.4	308.3
Depreciation and amortization	(268.9)	(80.2)
Repatriation accrual	(16.2)	(39.0)
Foreign operating loss recapture	(3.4)	(3.6)
Lease assets	(43.8)	(38.7)
Total deferred tax liabilities	(332.3)	(161.5)
Total net deferred tax assets (liabilities)		$ 146.8
Total net deferred tax assets (liabilities)	$ (43.9)

TAXES BASED ON INCOME - Net Operating Loss and Tax Carryforwards (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	$ 508.0	$ 563.0
Tax credit carryforwards of domestic and foreign subsidiaries	34.6	$ 55.9
Net operating loss and credit carryforward
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	507.9
Tax credit carryforwards of domestic and foreign subsidiaries	34.6
2022
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	1.7
Tax credit carryforwards of domestic and foreign subsidiaries	0.4
2023
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	3.8
Tax credit carryforwards of domestic and foreign subsidiaries	0.4
2024
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	2.9
Tax credit carryforwards of domestic and foreign subsidiaries	0.2
2025
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	3.2
Tax credit carryforwards of domestic and foreign subsidiaries	0.2
2026
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	9.4
Tax credit carryforwards of domestic and foreign subsidiaries	1.0
2027 - 2041
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	19.9
Tax credit carryforwards of domestic and foreign subsidiaries	28.2
Indefinite life/no expiry
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	467.0
Tax credit carryforwards of domestic and foreign subsidiaries	4.2
State
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	547.0
Operating loss carryforwards, valuation allowance	$ 479.0

TAXES BASED ON INCOME - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Taxes Based on Income
Unrecognized tax benefits	$ 74.0	$ 72.0	$ 69.9
Unrecognized tax benefits, if recognized, would reduce annual effective income tax rate	68.0	63.0
Accrued interest and penalties for uncertain tax positions, net of tax benefit	$ 19.0	$ 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. 01, 2022	Jan. 02, 2021
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at beginning of year	$ 72.0	$ 69.9
Additions for tax positions of current year	9.1	6.5
Additions (reductions) for tax positions of prior years, net	1.2	5.2
Settlements with tax authorities	(1.1)	(3.3)
Expirations of statutes of limitations	(5.2)	(8.7)
Changes due to translation of foreign currencies	(2.0)	2.4
Balance at end of year	74.0	$ 72.0
Reasonably possible decrease in uncertain tax positions, including interest and penalties, during the next 12 months	$ 9.0

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Net Sales to Unaffiliated Customers (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Net sales to unaffiliated customers
Net sales to unaffiliated customers	$ 8,408.3	$ 6,971.5	$ 7,070.1
Industrial and Healthcare Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	776.1	625.5	673.9
Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	5,430.4	4,715.1	4,745.9
Retail Branding and Information Solutions
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,201.8	1,630.9	1,650.3
Retail Branding and Information Solutions \| Apparel
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,839.1	1,432.3	1,458.5
Retail Branding and Information Solutions \| Identification Solutions and Vestcom
Net sales to unaffiliated customers
Net sales to unaffiliated customers	362.7	198.6	191.8
U.S.
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,065.2	1,683.6	1,638.8
U.S. \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,462.5	1,294.3	1,246.6
Europe
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,541.4	2,164.7	2,160.2
Europe \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,025.5	1,758.1	1,767.9
Asia
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,914.5	2,378.5	2,458.5
Asia \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,224.5	1,040.8	1,065.0
Latin America
Net sales to unaffiliated customers
Net sales to unaffiliated customers	537.6	440.3	498.3
Latin America \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	395.4	340.3	375.4
Other international
Net sales to unaffiliated customers
Net sales to unaffiliated customers	349.6	304.4	314.3
Other international \| Label and Graphic Materials
Net sales to unaffiliated customers
Net sales to unaffiliated customers	322.5	281.6	291.0
China Including HongKong
Net sales to unaffiliated customers
Net sales to unaffiliated customers	$ 1,680.0	$ 1,310.0	$ 1,380.0
Net sales \| Revenue from Rights Concentration Risk [Member] \| Single Customer [Member]
Net sales to unaffiliated customers
Concentration risk percentage	10.00%	10.00%	10.00%
Net sales \| Revenue from Rights Concentration Risk [Member] \| Ten Customer [Member]
Net sales to unaffiliated customers
Concentration risk percentage	16.00%	17.00%	16.00%

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Additional Financial Information by Reportable Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	$ 8,408.3	$ 6,971.5	$ 7,070.1
Interest expense	(70.2)	(70.0)	(75.8)
Other non-operating expense (income), net	4.1	(1.9)	(445.2)
Income before taxes	992.6	737.3	249.5
Capital expenditures	266.6	206.2	225.1
Depreciation and amortization expense	244.1	205.3	179.0
Other expense (income), net	5.6	53.6	53.2
Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	149.1	114.2	109.6
Label and Graphic Materials
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	5,430.4	4,715.1	4,745.9
Label and Graphic Materials \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes	801.7	688.8	601.5
Capital expenditures	133.6	87.3	137.8
Depreciation and amortization expense	114.3	107.0	100.2
Other expense (income), net	(28.1)	22.2	28.3
Label and Graphic Materials \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	98.5	80.3	80.2
Retail Branding and Information Solutions
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	2,201.8	1,630.9	1,650.3
Retail Branding and Information Solutions \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes	257.2	144.7	196.6
Capital expenditures	96.3	101.6	63.1
Depreciation and amortization expense	102.2	71.6	52.6
Other expense (income), net	36.6	22.7	9.9
Retail Branding and Information Solutions \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	37.3	27.5	20.6
Industrial and Healthcare Materials
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	776.1	625.5	673.9
Industrial and Healthcare Materials \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes	81.6	58.2	60.0
Capital expenditures	36.7	17.3	24.2
Depreciation and amortization expense	27.6	26.7	26.2
Other expense (income), net	2.4	8.4	9.4
Industrial and Healthcare Materials \| Intersegment sales
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Net sales to unaffiliated customers	13.3	6.4	8.8
Corporate \| Operating segments
SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Income before taxes	(81.8)	(82.5)	(87.6)
Other expense (income), net	$ (5.3)	$ 0.3	$ 5.6

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Other Expense (Income), Net by Type (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restructuring charges:
Restructuring charges	$ 13.3	$ 55.3
Other items:
Transaction and related costs	20.9	4.2	$ 2.6
Loss (gain) on sales of assets, net	0.2	(0.5)	(3.2)
Gain on venture investments, net	(23.0)	(5.4)
Gain on sale of product line	(5.7)
Outcomes of legal proceedings, net	(0.4)		3.4
Other expense (income), net	5.6	53.6	53.2
Severance and related costs
Restructuring charges:
Restructuring charges	10.5	49.1	45.3
Asset impairment charges and lease cancellation costs
Restructuring charges:
Restructuring charges	$ 3.1	$ 6.2	$ 5.1

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Other Expense (Income), Net by Type (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Dec. 28, 2019
Other Nonrecurring Income Expense [Line Items]
Outcomes of legal proceedings, net	$ (0.4)	$ 3.4
Reduction in Taxes [Member] \| BRAZIL
Other Nonrecurring Income Expense [Line Items]
Outcomes of legal proceedings, net	(29.1)
Infringement of Patent [Member]
Other Nonrecurring Income Expense [Line Items]
Outcomes of legal proceedings, net	$ 26.6

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Property, plant and equipment, net
Property, plant and equipment, net	$ 1,477.7	$ 1,343.7	$ 1,210.7
U.S.
Property, plant and equipment, net
Property, plant and equipment, net	524.0	403.1	366.9
International
Property, plant and equipment, net
Property, plant and equipment, net	953.7	940.6	843.8
China Including HongKong
Property, plant and equipment, net
Property, plant and equipment, net	$ 290.0	$ 297.0	$ 282.0

SUPPLEMENTAL FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Inventories
Raw materials	$ 393.6	$ 268.6
Work-in-progress	233.1	210.3
Finished goods	280.5	238.3
Inventories	$ 907.2	$ 717.2

SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,626.2	$ 3,476.3
Accumulated depreciation	(2,148.5)	(2,132.6)
Property, plant and equipment, net	1,477.7	1,343.7	$ 1,210.7
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment	28.6	26.1
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	777.6	746.4
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	2,582.2	2,538.6
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 237.8	$ 165.2

SUPPLEMENTAL FINANCIAL INFORMATION - Allowance of credit losses (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Allowance for Credit Losses
Balance at beginning of year	$ 44.6	$ 27.1
(Reversal of) provision for credit losses	(4.7)	20.3	$ 10.6
Amounts written off	(7.7)	(5.7)
Other, including foreign currency translation	0.8	2.9
Balance at end of year	$ 33.0	$ 44.6	$ 27.1

SUPPLEMENTAL FINANCIAL INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Research and Development
Research and development expense	$ 136.6	$ 112.8	$ 92.6
Cash paid for interest and income taxes
Interest	62.8	69.6	74.3
Income taxes, net of refunds	253.4	203.4	155.0
Deferred Revenue
Total deferred revenue	26.6	20.3
Revenue recognized during the period	18.4	12.0	10.8
Other current liabilities
Deferred Revenue
Total deferred revenue	24.7	18.9
Long-term retirement benefits and other liabilities
Deferred Revenue
Total deferred revenue	1.9	1.4
Total software
Capitalized software costs
Software amortization expense	30.1	29.0	$ 20.8
Total software \| Other assets
Capitalized software costs
Cost	403.9	506.5
Accumulated amortization	(280.6)	(370.1)
Software, net	$ 123.3	$ 136.4