0000008818-23-000002 | 10-K | XBRL Viewer

COMMITMENTS AND LEASES

12 Months Ended

Dec. 31, 2022

Supplemental cost information related to leases is shown below.


(In millions)	2022		2021		2020
Operating lease costs	$	70.8	$	68.8	$	63.1

Lease costs related to finance leases were not material in 2022, 2021 or 2020.

Supplemental balance sheet information related to leases is shown below.


(In millions)	Balance Sheet Location	2022		2021
Assets
Operating	Other assets	$	161.7	$	183.0
Finance(1)	Property, plant and equipment, net	27.5		28.9
Total leased assets		$	189.2	$	211.9
Liabilities
Current:
Operating	Other current liabilities	$	42.4	$	47.3
Finance	Short-term borrowings and current portion of long-term debt and finance leases	5.4		5.5
Non-current:
Operating	Long-term retirement benefits and other liabilities	113.6		135.3
Finance	Long-term debt and finance leases	8.2		11.7
Total lease liabilities		$	169.6	$	199.8


(1)			Finance lease assets are net of accumulated amortization of $12.4 million and $10.4 million as of December 31, 2022 and January 1, 2022, respectively.

Supplemental cash flow information related to leases is shown below.


(In millions)	2022		2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	60.5	$	54.2	$	54.9
Operating lease assets obtained in exchange for operating lease liabilities	37.2		58.0		48.4

Cash flows related to finance leases were not material in 2022, 2021 or 2020.

Weighted average remaining lease term and discount rate information related to leases as of December 31, 2022 and January 1, 2022 is shown below.


	2022		2021
Weighted average remaining lease term (in years):
Operating	5.9		6.5
Finance	2.7		3.3
Weighted average discount rate (percentage):
Operating	3.2	%	3.0	%
Finance	2.8		2.9

Operating and finance lease liabilities by maturity date from December 31, 2022 are shown below.


(In millions)	Operating Leases		Finance Leases
2023	$	45.8	$	5.8
2024	35.4		5.4
2025	27.8		2.1
2026	18.8		.7
2027	10.8		.2
2028 and thereafter	35.5		—
Total lease payments	174.1		14.2
Less: imputed interest	(18.1)		(.6)
Present value of lease liabilities	$	156.0	$	13.6

As of December 31, 2022, we had no significant operating or finance leases that had not yet commenced.

SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

Inventories

Inventories at year-end were as follows:


(In millions)	2022		2021
Raw materials	$	457.6	$	393.6
Work-in-progress	255.1		233.1
Finished goods	297.2		280.5
Inventories	$	1,009.9	$	907.2

Property, Plant and Equipment, Net

Major classes of property, plant and equipment, stated at cost, at year-end were as follows:


(In millions)	2022		2021
Land	$	29.3	$	28.6
Buildings and improvements	781.0		777.6
Machinery and equipment	2,667.8		2,582.2
Construction-in-progress	269.6		237.8
Property, plant and equipment	3,747.7		3,626.2
Accumulated depreciation	(2,207.5)		(2,148.5)
Property, plant and equipment, net	$	1,540.2	$	1,477.7

Software

Capitalized software costs at year-end were as follows:


(In millions)	2022		2021
Cost	$	390.6	$	403.9
Accumulated amortization	(282.3)		(280.6)
Software, net	$	108.3	$	123.3

Software amortization expense was $29.5 million in 2022, $30.1 million in 2021 and $29.0 million in 2020.

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)	2022		2021
Balance at beginning of year	$	33.0	$	44.6
Provision for (reversal of) credit losses	6.9		(4.7)
Amounts written off	(4.3)		(7.7)
Other, including foreign currency translation	(1.2)		.8
Balance at end of year	$	34.4	$	33.0

The provision for credit losses was $20.3 million in 2020 and reflected impacts on customers as a result of COVID-19.

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)	2022		2021		2020
Research and development expense	$	136.1	$	136.6	$	112.8

Supplemental Cash Flow Information

Cash paid for interest and income taxes was as follows:


(In millions)	2022		2021		2020
Interest	$	80.9	$	62.8	$	69.6
Income taxes, net of refunds	204.8		253.4		203.4

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 2022, 2021 or 2020.

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 December 31, 2022 and January 1, 2022:


(In millions)	December 31, 2022		January 1, 2022
Other current liabilities	$	22.2	$	24.7
Long-term retirement benefits and other liabilities	2.1		1.9
Total deferred revenue	$	24.3	$	26.6

Revenue recognized from amounts included in deferred revenue as of January 1, 2022 was $23.5 million in 2022. 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 $12.0 million in 2020. This revenue was included in “Net sales” in the Consolidated Statements of Income.

PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

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.

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 26% in equity securities, 59% in fixed income securities and cash, and 15% 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)
2022
Cash	$	6.4	$	6.4	$	—	$	—
Insurance contracts	37.1		—		—		37.1
Pooled funds – real estate investment trusts	8.3		—		—		8.3
Pooled funds – fixed income securities(1)	335.7
Pooled funds – equity securities(1)	151.9
Pooled funds – other investments(1)	45.9
Total international plan assets at fair value	$	585.3
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

(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 December 31, 2022:


	Level 3 Assets
(In millions)	Insurance Contracts		Pooled Funds – Real Estate Investment Trusts		Total
Balance at January 1, 2022	$	37.9	$	11.0	$	48.9
Net realized and unrealized gain (loss)	.7		(1.6)		(.9)
Purchases	3.2		—		3.2
Settlements	(3.2)		—		(3.2)

Impact of changes in foreign currency exchange rates	(1.5)		(1.1)		(2.6)
Balance at December 31, 2022	$	37.1	$	8.3	$	45.4

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
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$	66.8	$	882.4	$	77.3	$	953.9
Service cost	—		16.5		—		19.0
Interest cost	1.2		10.8		1.0		8.9
Participant contribution	—		4.6		—		4.7
Amendments	—		—		—		(.9)
Actuarial (gain) loss	(9.1)		(244.9)		(1.7)		(15.6)
Benefits paid	(7.1)		(21.3)		(9.8)		(23.3)
Settlements	—		(1.0)		—		(3.7)
Foreign currency translation	—		(60.2)		—		(60.6)
Projected benefit obligations at end of year	$	51.8	$	586.9	$	66.8	$	882.4
Accumulated benefit obligations at end of year	$	51.8	$	540.2	$	66.8	$	806.4

Plan Assets


	Pension Benefits
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Change in plan assets
Plan assets at beginning of year	$	—	$	874.6	$	—	$	897.2
Actual return on plan assets	—		(226.5)		—		37.3
Employer contributions	7.1		15.2		9.8		20.7
Participant contributions	—		4.6		—		4.7
Benefits paid	(7.1)		(21.3)		(9.8)		(23.3)
Settlements	—		(1.0)		—		(3.7)
Foreign currency translation	—		(60.3)		—		(58.3)
Plan assets at end of year	$	—	$	585.3	$	—	$	874.6

Funded Status


	Pension Benefits
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Funded status of the plans
Other assets	$	—	$	70.0	$	—	$	113.6
Other accrued liabilities	(6.2)		(.4)		(7.0)		(1.0)
Long-term retirement benefits and other liabilities(1)	(45.6)		(71.2)		(59.8)		(120.4)
Plan assets less than benefit obligations	$	(51.8)	$	(1.6)	$	(66.8)	$	(7.8)

(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
	2022				2021
	U.S.		Int’l		U.S.		Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate	5.06	%	4.36	%	2.49	%	1.57	%
Compensation rate increase	—		2.75		—		2.33

For U.S. and international plans combined, the projected benefit obligations and fair values of plan assets for pension plans with projected benefit obligations in excess of plan assets were $165 million and $42 million, respectively, at year-end 2022 and $261 million and $73 million, respectively, at year-end 2021.

For U.S. and international plans combined, the accumulated benefit obligations and fair values of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $132 million and $23 million, respectively, at year-end 2022 and $228 million and $67 million, respectively, at year-end 2021.

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
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Net actuarial loss	$	9.1	$	38.2	$	15.6	$	41.5
Prior service (credit) cost	—		(3.5)		—		(4.0)
Net amount recognized in accumulated other comprehensive loss	$	9.1	$	34.7	$	15.6	$	37.5

The following table shows the pre-tax amounts recognized in “Other comprehensive loss (income)”:


	Pension Benefits
	2022				2021				2020
(In millions)	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Net actuarial (gain) loss	$	(5.6)	$	(.8)	$	(.7)	$	(34.8)	$	3.5	$	(13.5)
Prior service credit	—		—		—		(.9)		—		.4
Amortization of unrecognized:
Net actuarial gain	(.8)		(2.5)		(.8)		(6.1)		(.6)		(5.2)
Prior service credit (cost)	—		.4		—		.4		—		.4
Settlements	(.1)		.1		(1.1)		(.5)		(.2)		(.3)
Net amount recognized in other comprehensive loss (income)	$	(6.5)	$	(2.8)	$	(2.6)	$	(41.9)	$	2.7	$	(18.2)

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
	2022				2021				2020
(In millions)	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Service cost	$	—	$	16.5	$	—	$	19.0	$	—	$	17.8
Interest cost	1.2		10.8		1.0		8.9		1.8		11.0
Actuarial (gain) loss	(3.5)		—		(1.1)		—		3.7		—
Expected return on plan assets	—		(21.9)		—		(19.8)		—		(18.5)
Amortization of actuarial loss	.8		2.5		.8		6.1		.6		5.2
Amortization of prior service (credit) cost	—		(.4)		—		(.4)		—		(.4)
Recognized loss (gain) on settlements(1)	.1		(.1)		1.1		.5		.2		.3
Net periodic benefit cost (credit)	$	(1.4)	$	7.4	$	1.8	$	14.3	$	6.3	$	15.4

(1)In 2022, settlements in the U.S. related to a non-qualified plan; settlements in our international plans related to lump-sum payments in Belgium. 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.

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
	2022				2021				2020
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Discount rate	2.19	%	1.57	%	2.20	%	1.26	%	2.89	%	1.66	%
Expected return on assets	—		3.00		—		2.61		—		2.79
Compensation rate increase	—		2.33		—		2.15		—		2.21

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 2023:


(In millions)
U.S. pension plans	$	6.3
International pension plans	12.8

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
2023	$	6.3	$	22.2
2024	6.1		22.6
2025	5.9		23.9
2026	5.9		26.4
2027	5.3		27.0
2028-2032	20.2		142.7

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 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 2022, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately $2 million and $11 million, respectively. At year-end 2021, our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were approximately $2 million and $12 million, respectively. Net periodic benefit cost was not material in 2022, 2021 or 2020.

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 $27.3 million, $24.6 million and $22.7 million in 2022, 2021 and 2020, 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 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 2022 and 2021, we had accrued $87.3 million and $96.1 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 0.1 million DSUs were outstanding for both year-end 2022 and 2021, with an aggregate value of $20 million and $24 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 $265.0 million and $272.2 million at year-end 2022 and 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

TAXES BASED ON INCOME - Income (Loss) from Continuing Operations before Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income (loss) before taxes
U.S.	$ 232.4	$ 88.0	$ 123.8
International	766.9	904.6	613.5
Income before taxes	$ 999.3	$ 992.6	$ 737.3

- Definition

Amount after tax of income (loss) from continuing operations attributable to the parent.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

TAXES BASED ON INCOME - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 69.5	$ 74.0	$ 72.0
Unrecognized tax benefits, if recognized, would reduce annual effective income tax rate	65.0	68.0
Accrued interest and penalties for uncertain tax positions, net of tax benefit	$ 16.0	$ 19.0

ACQUISITIONS

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

ACQUISITIONS

Subsequent to our fiscal year-end 2022, in January 2023, we entered into an agreement to acquire Thermopatch, Inc., a New York-based manufacturer specializing in labeling, embellishments, and transfers for the sports, industrial laundry, workwear and hospitality industries. We believe this acquisition will expand the product portfolio in our Solutions Group reportable segment. We expect to complete this acquisition in the first quarter of 2023.

2022 Acquisitions

In January 2022, we completed our acquisitions of TexTrace AG ("TexTrace"), a Switzerland-based technology developer specializing in custom-made woven and knitted RFID products that can be sewn onto or inserted into garments, and Rietveld Serigrafie B.V. and Rietveld Screenprinting Serigrafi Baski Matbaa Tekstil Ithalat Ihracat Sanayi ve Ticaret Limited Sirketi (collectively, "Rietveld"), a Netherlands-based provider of external embellishment solutions and application and printing methods for performance brands and team sports in Europe. These acquisitions expanded the product portfolio in our Solutions Group reportable segment. The acquisitions of TexTrace and Rietveld are referred to collectively as the "2022 Acquisitions."

The aggregate purchase consideration for the 2022 Acquisitions was approximately $35 million. We funded the 2022 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 $30 million, subject to the acquired company achieving certain post-acquisition performance targets. As of the acquisition date, we included an estimate of the fair value of these earn-out payments in the aggregate purchase consideration.

The 2022 Acquisitions were not material, individually or in the aggregate, to the Consolidated Financial Statements.

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 cash and proceeds from both commercial paper borrowings and issuances of senior notes. Refer to Note 4, “Debt,” to the Consolidated Financial Statements for more information.

Vestcom’s solutions expanded our position in high value categories and added channel access and data management capabilities to our Solutions Group reportable segment.

The table below summarizes the fair value of assets acquired and liabilities assumed in the Vestcom acquisition based on our final allocation of the purchase consideration.


(In millions)
Cash and cash equivalents	$	24.3
Trade accounts receivable	98.4
Other current assets	28.5
Property, plant and equipment	56.2
Goodwill	756.1
Other intangibles resulting from business acquisition	727.0
Other assets	22.8
Total assets	1,713.3
Current liabilities	47.5
Other liabilities	17.2
Deferred and non-current income tax liabilities	183.5
Total liabilities	248.2
Net assets acquired	$	1,465.1

The impact of the Vestcom acquisition was not material to the pro forma 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 2021.

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. This acquisition enhanced the product portfolio in our Solutions Group 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. This acquisition expanded the product portfolio in our Materials Group 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 post-acquisition performance targets. As of the acquisition date, we estimated the fair value of these earn-out payments to be approximately $12 million, which was 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.

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
U.S.
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	$ (5.6)	$ (0.7)	$ 3.5
Prior service credit	0.0	0.0	0.0
Amortization of unrecognized net actuarial gain	(0.8)	(0.8)	(0.6)
Amortization of unrecognized prior service credit (cost)	0.0	0.0	0.0
Settlements	(0.1)	(1.1)	(0.2)
Net amount recognized in other comprehensive loss (income)	(6.5)	(2.6)	2.7
International
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	(0.8)	(34.8)	(13.5)
Prior service credit	0.0	(0.9)	0.4
Amortization of unrecognized net actuarial gain	(2.5)	(6.1)	(5.2)
Amortization of unrecognized prior service credit (cost)	0.4	0.4	0.4
Settlements	0.1	(0.5)	(0.3)
Net amount recognized in other comprehensive loss (income)	$ (2.8)	$ (41.9)	$ (18.2)

TAXES BASED ON INCOME - Schedule of Components of the Temporary Differences (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Components of Deferred Tax Assets and Liabilities [Abstract]
Accrued expenses not currently deductible	$ 32.3	$ 34.6
Net operating loss carryforwards	137.2	154.4
Tax credit carryforwards	9.7	34.6
Capitalized research expenses	38.6	23.7
Stock-based compensation	15.4	13.6
Pension and other postretirement benefits	31.5	38.8
Inventory reserve	15.6	14.7
Lease liabilities	33.2	42.5
Other assets	21.3	25.3
Valuation allowance	(59.4)	(70.1)
Total deferred tax assets	275.4	312.1
Depreciation and amortization	(296.6)	(292.6)
Repatriation accrual	(12.0)	(16.2)
Foreign operating loss recapture	(3.2)	(3.4)
Lease assets	(33.8)	(43.8)
Total deferred tax liabilities	(345.6)	(356.0)
Total net deferred tax assets (liabilities)	$ (70.2)	$ (43.9)

TAXES BASED ON INCOME - Schedule of Taxes Based on Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Current
U.S. federal tax	$ 29.4	$ 7.3	$ 1.1
State taxes	8.8	5.3	1.9
International taxes	177.7	229.9	168.5
Total	215.9	242.5	171.5
Deferred
U.S. federal tax	5.8	(1.1)	5.0
State taxes	0.9	(5.3)	1.6
International taxes	19.6	12.5	(0.4)
Total	26.3	6.1	6.2
Provision for income taxes	$ 242.2	$ 248.6	$ 177.7

DEBT

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

DEBT

Short-Term Borrowings

We had $128 million and $189 million of outstanding borrowings from U.S. commercial paper issuances as of December 31, 2022 and January 1, 2022, respectively, with a weighted average interest rate of 4.84% and 0.32%, respectively.

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 revolving credit facility (the “Revolver”). There are no financial covenants under this program. We had balances of $213 million and $113.1 million outstanding under this program as of December 31, 2022 and January 1, 2022, respectively, with a weighted average interest rate of 2.06% and (0.47)%, respectively.

Short-Term Credit Facilities

Subsequent to fiscal year 2022, in January 2023, we extended the maturity date of the Revolver by one year to February 13, 2026, and increased the commitments by $400 million, from $800 million to $1.2 billion. Additionally, we amended the Revolver to replace the LIBOR benchmark interest rate with Term SOFR, Euribor and SONIA benchmark interest rates. We use the Revolver as a back-up facility for our commercial paper program and for other corporate purposes. In February 2020, we had amended and restated the Revolver, eliminating one of the financial covenants and extending its maturity date to February 13, 2025. The Revolver allowed for a one-year extension of the maturity date under certain circumstances and the option to increase the commitments by up to $400 million, subject to lender approvals and customary requirements.

No balance was outstanding under the Revolver as of December 31, 2022 or January 1, 2022. Commitment fees associated with the Revolver in 2022, 2021 and 2020 were $0.9 million, $0.9 million and $0.8 million, respectively.

In addition to the Revolver, we have short-term lines of credit available in various countries of approximately $341 million in the aggregate at December 31, 2022. These lines may be cancelled at any time by us or the issuing banks. Short-term borrowings outstanding under these lines of credit were $2.4 million and $11.2 million at December 31, 2022 and January 1, 2022, respectively, with weighted average interest rates of 0.64% and 4.97%, 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 this 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 this 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 related interest rates, at year-end 2022 and 2021 is shown below.


(In millions)	2022		2021
Long-term debt
Medium-term notes:
Series 1995 due 2025	$	30.0	$	30.0
Long-term notes:
Senior notes due 2023 at 3.4%	249.7		249.5
Senior notes due 2024 at 0.85%	299.0		298.3
Senior notes due 2025 at 1.25%(1)	531.3		563.3
Senior notes due 2028 at 4.875%	496.0		495.3
Senior notes due 2030 at 2.650%	495.5		494.8
Senior notes due 2032 at 2.25%	494.5		493.9
Senior notes due 2033 at 6.0%	149.1		149.1
Less amount classified as current	(249.7)		—
Total long-term debt(2)	$	2,495.4	$	2,774.2


(1)			These senior notes are euro-denominated. The face value is €500 million.
(2)			Included unamortized debt issuance costs and debt discounts of $10.5 million and $7.1 million, respectively, as of year-end 2022 and $12.9 million and $8.2 million, respectively, as of year-end 2021.

At year-end 2022 and 2021, 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)
2023	$	250.0
2024	300.0
2025	562.6
2026	—
2027	—
2028 and thereafter	1,650.0

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

Other

The Revolver contains a financial covenant that requires us to maintain a specified ratio of total debt in relation to a certain measure of income. As of December 31, 2022 and January 1, 2022, we were in compliance with our financial covenants.

Our total interest costs in 2022, 2021 and 2020 were $89.8 million, $75.0 million and $73.9 million, respectively, of which $5.7 million, $4.8 million and $3.9 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 $2.85 billion at December 31, 2022 and $3.25 billion at January 1, 2022. 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.

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+ Details

PENSION AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - International	Dec. 31, 2022
Pooled funds - equity securities
Defined Benefit Plan Disclosure [Line Items]
Target assets allocation	26.00%
Fixed income securities and cash
Defined Benefit Plan Disclosure [Line Items]
Target assets allocation	59.00%
Other investments
Defined Benefit Plan Disclosure [Line Items]
Target assets allocation	15.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations We are a global materials science and digital identification solutions company that provides branding and information labeling solutions, including pressure-sensitive materials, radio-frequency identification ("RFID") inlays and tags, and a variety of converted products and solutions. We design and manufacture a wide range of labeling and functional materials that enhance branded packaging, carry or display information that connects the physical and the digital, and improve customers’ product performance. We serve an array of industries worldwide, including home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals and automotive.
Principles of Consolidation	Principles of ConsolidationOur Consolidated Financial Statements include the accounts of majority-owned and controlled subsidiaries. Intercompany accounts, transactions and profits are eliminated in consolidation.
Segment Information	Segment InformationIn the fourth quarter of 2022, we changed our operating structure to align with our overall business strategy, and our Chief Executive Officer, who is also our chief operating decision maker, requested changes in the information that he regularly reviews to allocate resources and assess performance. As a result, our fiscal year 2022 results are reported based on our new reportable segments as described in Note 15, "Segment Information." We have recast prior periods to reflect our new operating structure.
Fiscal Year	Fiscal YearOur fiscal years generally consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks; our 2022 and 2021 fiscal years consisted of 52-week periods ending December 31, 2022 and January 1, 2022, respectively. Our 2020 fiscal year consisted of a 53-week period ending January 2, 2021.
Use of Estimates	Use of EstimatesThe 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. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates.
Cash and Cash Equivalents	Cash and Cash EquivalentsCash 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	InventoriesWe 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	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	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	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	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.
Venture Investments	Venture Investments We invest in privately held companies and utilize the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost less impairment plus or minus observable price changes in orderly transactions. The carrying value of our venture investments is included in “Other assets” in the Consolidated Balance Sheets.
Impairment of Long-lived Assets	Impairment of Long-lived AssetsWe 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	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 and, as necessary, if changes in facts and circumstances that indicate the fair value of a reporting unit may be less than its carrying value. Certain factors may cause us to perform an impairment test outside of our annual assessment, 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 the 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 differ materially 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 to use 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 their estimated useful lives. See Note 3, “Goodwill and Other Intangibles Resulting from Business Acquisitions,” for more information.
Foreign Currency	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, because the country’s three-year cumulative inflation rate exceeds 100%. As a result, the functional currency of our Argentine subsidiary is the U.S. dollar.
Financial Instruments	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.
Fair Value Measurements	Fair Value Measurements We define fair value as the price that would be received from selling an asset or paid for transferring 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	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 which we would expect 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 DevelopmentResearch and development costs are related to research, design and testing of new products and applications, which we expense as incurred.
Long-Term Incentive Compensation	Long-Term Incentive Compensation No long-term incentive compensation expense was capitalized in 2022, 2021 or 2020. 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 estimate 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.
Taxes Based on Income	Taxes Based on IncomeBecause we are subject to income tax in the U.S. and multiple foreign jurisdictions, judgment is required in evaluating and estimating our worldwide provision, accruals for taxes, deferred taxes and 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.
Recent Accounting Requirements	Recent Accounting Requirements In September 2022, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the transparency of supplier finance programs by requiring disclosures of key program terms, information about obligations under these programs and a rollforward of these obligations. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We plan to adopt this guidance at the beginning of our 2023 fiscal year on January 1, 2023.

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,131.7	$ 1,128.2
Accumulated Amortization	446.1	372.4
Net Carrying Amount	685.6	755.8
Amortization expense on finite-lived intangible assets from business acquisition	81.8	44.6	$ 19.9
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	852.2	862.5
Accumulated Amortization	330.1	277.2
Net Carrying Amount	522.1	585.3
Patented and other developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	261.9	247.7
Accumulated Amortization	104.3	84.7
Net Carrying Amount	157.6	163.0
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	14.4	14.8
Accumulated Amortization	10.3	9.7
Net Carrying Amount	4.1	5.1
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3.2	3.2
Accumulated Amortization	1.4	0.8
Net Carrying Amount	$ 1.8	$ 2.4

LONG-TERM INCENTIVE COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

LONG TERM INCENTIVE COMPENSATION

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)	2022		2021		2020
Stock-based compensation expense	$	47.4	$	37.2	$	24.0
Tax benefit	6.7		4.6		2.9

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

As of December 31, 2022, we had approximately $61 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 2022, 2021 or 2020.

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 1, 2022	142.0	$	73.76	4.40	$	20.3
Exercised	(.9)	40.33
Outstanding at December 31, 2022	141.1	$	73.96	3.42	$	15.1
Options vested and expected to vest at December 31, 2022	141.1	73.76		3.42	15.1
Options exercisable at December 31, 2022	141.1	$	73.96	3.42	$	15.1

The total intrinsic value of stock options exercised was $3.5 million in 2021 and $4 million in 2020. We received approximately $1 million in 2021 and $2 million in 2020 from the exercise of stock options. The tax benefit associated with these exercised options was $0.9 million in 2021 and $1 million in 2020. The stock option exercises in 2022 were immaterial. 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 generally ranges from 0% to 200% of the target shares at the time of grant; however certain special PU awards can be issued up to 300% of the target shares at time of grant. The weighted average grant date fair value for PUs was $163.97, $191.86 and $115.07 in 2022, 2021 and 2020, respectively.

The following table summarizes information related to awarded PUs:


	Number of PUs (in thousands)	Weighted average grant-date fair value
Unvested at January 1, 2022	322.1	$	127.33
Granted at target	159.7	163.97
Adjustment for above-target performance(1)	78.1	110.41
Vested	(182.7)	110.41
Forfeited/cancelled	(4.5)	152.27
Unvested at December 31, 2022	372.7	$	147.45

(1)Reflects adjustments for the vesting of awards based on above-target performance for the 2019-2021 performance period.

The fair value of vested PUs was $20.2 million in 2022, $19.2 million in 2021 and $20.4 million in 2020.

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 $141.80, $216.06 and $94.55 in 2022, 2021 and 2020, respectively.

The following table summarizes information related to awarded MSUs:


	Number of MSUs (in thousands)	Weighted average grant- date fair value
Unvested at January 1, 2022	195.2	$	143.16
Granted at target	100.5	141.80
Adjustments for above-target performance(1)	69.2	127.45
Vested	(153.0)	130.34
Forfeited/cancelled	(3.4)	149.91
Unvested at December 31, 2022	208.5	$	145.86

(1)Reflects adjustments for the vesting of awards based on above-target performance for each of the tranches of awards vesting in 2022.

The fair value of vested MSUs was $19.9 million in 2022, $17.8 million in 2021 and $17.6 million in 2020.

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 or four years. RSUs granted to non-employee directors generally vest in 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 $168.34, $196.26 and $111.71 in 2022, 2021 and 2020, respectively.

The following table summarizes information related to awarded RSUs:


	Number of RSUs (in thousands)	Weighted average grant-date fair value
Unvested at January 1, 2022	36.1	$	139.82
Granted	44.6	168.34
Vested	(19.2)	146.32
Forfeited/cancelled	(1.7)	125.93
Unvested at December 31, 2022	59.8	$	159.23

The fair value of vested RSUs was $2.8 million, $2.7 million and $3.8 million in 2022, 2021 and 2020, 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 $11.5 million in 2022, $21.3 million in 2021 and $13.8 million in 2020. 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 $2.7 million in 2022, $5.1 million in 2021 and $3.3 million in 2020.

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 757.1	$ 740.1	$ 555.9
Foreign currency translation:
Translation (loss) gain	(96.6)	30.7	(3.0)
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	6.3	27.9	6.2
Reclassifications to net income	2.8	4.4	2.9
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	4.9	5.4	(7.5)
Reclassifications to net income	1.5	(1.7)	(0.1)
Other comprehensive (loss) income, net of tax	(81.1)	66.7	(1.5)
Total comprehensive income, net of tax	$ 676.0	$ 806.8	$ 554.4

FAIR VALUE MEASUREMENTS - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Liabilities
Gain on private venture companies	$ 13.5	$ 23.0	$ 5.4
Equity securities without readily determinable fair value, amount	70.0	52.0
Cash and cash equivalents
Liabilities
Debt securities, available-for-sale, current	0.7	0.5
Other current assets
Liabilities
Debt securities, available-for-sale, current	30.6	33.4
Recurring
Assets
Investments	31.3	33.9
Derivative assets	4.3	7.1
Bank drafts	3.2	14.1
Cross-currency swap	15.5
Liabilities
Cross-currency swap		10.3
Derivative liabilities	12.2	3.6
Contingent consideration liabilities	6.0	7.6
Quoted Prices in Active Markets (Level 1) \| Recurring
Assets
Investments	22.6	27.1
Derivative assets	0.0	0.6
Bank drafts	3.2	14.1
Cross-currency swap	0.0
Liabilities
Cross-currency swap		0.0
Derivative liabilities	0.3	0.0
Contingent consideration liabilities	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Recurring
Assets
Investments	8.7	6.8
Derivative assets	4.3	6.5
Bank drafts	0.0	0.0
Cross-currency swap	15.5
Liabilities
Cross-currency swap		10.3
Derivative liabilities	11.9	3.6
Contingent consideration liabilities	0.0	0.0
Significant Other Unobservable Inputs (Level 3) \| Recurring
Assets
Investments	0.0	0.0
Derivative assets	0.0	0.0
Bank drafts	0.0	0.0
Cross-currency swap	0.0
Liabilities
Cross-currency swap		0.0
Derivative liabilities	0.0	0.0
Contingent consideration liabilities	$ 6.0	$ 7.6

CONTINGENCIES - Activity Related to Environmental Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Environmental Liabilities Associated with Remediation [Roll Forward]
Balance at beginning of year	$ 21.9	$ 21.1
Charges, net of reversals	4.4	2.9
Payments	(2.0)	(2.1)
Balance at end of year	$ 24.3	$ 21.9
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]	Long-term retirement benefits and other liabilities	Long-term retirement benefits and other liabilities

TAXES BASED ON INCOME

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

TAXES BASED ON INCOME

Taxes based on income were as follows:


(In millions)	2022		2021		2020
Current:
U.S. federal tax	$	29.4	$	7.3	$	1.1
State taxes	8.8		5.3		1.9
International taxes	177.7		229.9		168.5
	215.9		242.5		171.5
Deferred:
U.S. federal tax	5.8		(1.1)		5.0
State taxes	.9		(5.3)		1.6
International taxes	19.6		12.5		(.4)
	26.3		6.1		6.2
Provision for income taxes	$	242.2	$	248.6	$	177.7

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


(In millions)	2022		2021		2020
Tax provision computed at U.S. federal statutory rate(1)	$	209.9	$	208.5	$	154.8
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	11.8		4.5		6.9
Foreign earnings taxed at different rates(1)	55.3		75.4		51.4
GILTI high-tax exclusion election, net(2)	(11.9)		(22.8)		(12.5)
Valuation allowance	(5.0)		(4.8)		(3.3)
U.S. federal research and development tax credits	(6.5)		(6.2)		(6.2)
Tax contingencies and audit settlements	(4.3)		3.9		(5.5)
Other items, net	(7.1)		(9.9)		(7.9)
Provision for income taxes	$	242.2	$	248.6	$	177.7


(1)			All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.
(2)			In 2022, we recognized $11.9 million of benefit related to a GILTI exclusion election made on our 2021 U.S. federal tax return. 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.

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


(In millions)	2022		2021		2020
U.S.	$	232.4	$	88.0	$	123.8
International	766.9		904.6		613.5
Income before taxes	$	999.3	$	992.6	$	737.3

Our effective tax rate was 24.2%, 25.0% and 24.1% for fiscal years 2022, 2021 and 2020, respectively.

Our 2022 provision for income taxes included (i) $18.8 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 foreign-derived intangible income (“FDII”); (ii) $17.3 million of return-to-provision benefit, including $11.9 million related to a GILTI exclusion election and a lower net tax charge from other international inclusion items upon completion of our 2021 U.S. federal tax return, (iii) $4.3 million of net tax benefit primarily from decreases in certain tax reserves, including interest and penalties, as a result of closing tax years and the settlement of certain foreign tax audits; and (iv) a return-to-provision benefit from the interest portion of the Brazil indirect tax credit reclaimed in 2021 being adjudicated as non-taxable, pursuant to a Brazilian court decision.

In 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. We have not yet determined whether to make the election for tax year 2022. We continue to evaluate the impact of the election and currently anticipate that the benefit from making this election on our 2022 U.S. federal tax return may be significant.

Our 2021 provision for income taxes included (i) $28.5 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) $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. Our 2021 provision for income taxes also included (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 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 of return-to-provision benefit related to a GILTI exclusion election we planned to make on our 2019 amended U.S. federal 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, partially offset by increases in reserves from changes in judgment and additional interest and penalty accruals.

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)	2022		2021
Accrued expenses not currently deductible	$	32.3	$	34.6
Net operating loss carryforwards	137.2		154.4
Tax credit carryforwards	9.7		34.6
Capitalized research expenses	38.6		23.7
Stock-based compensation	15.4		13.6
Pension and other postretirement benefits	31.5		38.8
Inventory reserve	15.6		14.7
Lease liabilities	33.2		42.5
Other assets	21.3		25.3
Valuation allowance	(59.4)		(70.1)
Total deferred tax assets(1)	275.4		312.1
Depreciation and amortization	(296.6)		(292.6)
Repatriation accrual	(12.0)		(16.2)
Foreign operating loss recapture	(3.2)		(3.4)
Lease assets	(33.8)		(43.8)
Total deferred tax liabilities(1)	(345.6)		(356.0)
Total net deferred tax assets (liabilities)	$	(70.2)	$	(43.9)

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

We assess the available positive and negative evidence to estimate if sufficient future taxable income is expected to be generated to use existing deferred tax assets. On the basis of our assessment, we record valuation allowances only with respect to the portion of the deferred tax asset that is not more-likely-than-not to be realized. Our assessment of the future realizability of our deferred tax assets relies heavily on our forecasted earnings in certain jurisdictions 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 December 31, 2022 and January 1, 2022 were $463 million and $508 million, respectively. Tax credit carryforwards of both domestic and foreign subsidiaries at December 31, 2022 and January 1, 2022 totaled $10 million and $35 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
2023	$	4.5	$	.3
2024	2.6		.2
2025	2.9		.2
2026	7.2		.3
2027	4.1		.8
2028-2040	13.7		5.9
Indefinite life/no expiry	427.7		2.0
Total	$	462.7	$	9.7

(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 December 31, 2022, we had net operating loss carryforwards in certain states of $425 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 $380 million of these carryforwards.

As of December 31, 2022, our provision for income taxes did not materially benefit from applicable tax holidays in foreign jurisdictions.

Unrecognized Tax Benefits

As of December 31, 2022, our unrecognized tax benefits totaled $70 million, $65 million of which, if recognized, would reduce our annual effective income tax rate. 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.

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 2022, 2021 and 2020 were not material, individually or in aggregate, to the Consolidated Statements of Income. We have accrued balances of $16 million and $19 million for interest and penalties, net of tax benefit, in the Consolidated Balance Sheets at December 31, 2022 and January 1, 2022, respectively.

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


(In millions)	2022		2021
Balance at beginning of year	$	74.0	$	72.0
Additions for tax positions of current year	6.6		9.1
Additions (reductions) for tax positions of prior years, net	(2.2)		1.2
Settlements with tax authorities	(1.1)		(1.1)
Expirations of statutes of limitations	(4.8)		(5.2)
Changes due to translation of foreign currencies	(3.0)		(2.0)
Balance at end of year	$	69.5	$	74.0

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 $6 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 income taxes and the related liabilities. To date, we and our U.S. subsidiaries have completed the IRS’ Compliance Assurance Process through 2018. 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
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 50
-Paragraph 17
-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: 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(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Aug. 31, 2021	Jan. 31, 2022	Dec. 31, 2022	Jan. 01, 2022
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Impairment of indefinite-lived intangible assets				$ 0.0
Indefinite-lived intangible assets, carrying value			$ 154.7	$ 155.6
Finite-Lived Intangible Assets Acquired
Finite-lived intangible assets acquired		$ 21.0
Vestcom
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived Intangible Assets Acquired	$ 135.0
Finite-Lived Intangible Assets Acquired
Finite-lived intangible assets acquired	$ 592.0
Vestcom \| Customer relationships
Finite-Lived Intangible Assets Acquired
Finite-lived intangible assets acquired			$ 492.0
Acquired finite-lived intangible assets, weighted average useful life			12 years
Vestcom \| Patented and other developed technology
Finite-Lived Intangible Assets Acquired
Finite-lived intangible assets acquired			$ 100.4
Acquired finite-lived intangible assets, weighted average useful life			7 years

PENSION AND OTHER POSTRETIREMENT BENEFITS - Postretirement Health Benefits, Defined Contribution and Other Retirement Plans (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Defined contribution and other retirement plans
Recognized defined contribution plan cost	$ 27.3	$ 24.6	$ 22.7
Deferred compensation plan accrued	$ 87.3	$ 96.1
Minimum age of participant for termination of employment to determine forfeiture of interest on contribution	55 years
DSUs outstanding under deferred compensation plans (in shares)	0.1	0.1
Value of DSUs outstanding under deferred compensation plans	$ 20.0	$ 24.0
Postretirement Health Coverage
Defined contribution and other retirement plans
Postretirement health benefits obligation	2.0	2.0
Accumulated other comprehensive loss relating to postretirement health benefits obligation	11.0	12.0
Other assets
Defined contribution and other retirement plans
Cash surrender value included in other assets	$ 265.0	$ 272.2

CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Activity Related to Environmental Liabilities

The activity related to our environmental liabilities in 2022 and 2021 was as follows:


(In millions)	2022		2021
Balance at beginning of year	$	21.9	$	21.1
Charges, net of reversals	4.4		2.9
Payments	(2.0)		(2.1)
Balance at end of year	$	24.3	$	21.9

LONG-TERM INCENTIVE COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Stock-Based Compensation Expense and the Related Recognized Tax Benefit

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


(In millions)	2022		2021		2020
Stock-based compensation expense	$	47.4	$	37.2	$	24.0
Tax benefit	6.7		4.6		2.9

Summary of Information Related to Stock Options

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 1, 2022	142.0	$	73.76	4.40	$	20.3
Exercised	(.9)	40.33
Outstanding at December 31, 2022	141.1	$	73.96	3.42	$	15.1
Options vested and expected to vest at December 31, 2022	141.1	73.76		3.42	15.1
Options exercisable at December 31, 2022	141.1	$	73.96	3.42	$	15.1

Summary of Information Related to Awarded PUs

The following table summarizes information related to awarded PUs:


	Number of PUs (in thousands)	Weighted average grant-date fair value
Unvested at January 1, 2022	322.1	$	127.33
Granted at target	159.7	163.97
Adjustment for above-target performance(1)	78.1	110.41
Vested	(182.7)	110.41
Forfeited/cancelled	(4.5)	152.27
Unvested at December 31, 2022	372.7	$	147.45

Summary of Information Related to Awarded MSUs

The following table summarizes information related to awarded MSUs:


	Number of MSUs (in thousands)	Weighted average grant- date fair value
Unvested at January 1, 2022	195.2	$	143.16
Granted at target	100.5	141.80
Adjustments for above-target performance(1)	69.2	127.45
Vested	(153.0)	130.34
Forfeited/cancelled	(3.4)	149.91
Unvested at December 31, 2022	208.5	$	145.86

Summary of Information Related to Awarded RSUs

The following table summarizes information related to awarded RSUs:


	Number of RSUs (in thousands)	Weighted average grant-date fair value
Unvested at January 1, 2022	36.1	$	139.82
Granted	44.6	168.34
Vested	(19.2)	146.32
Forfeited/cancelled	(1.7)	125.93
Unvested at December 31, 2022	59.8	$	159.23

COST REDUCTION ACTIONS - Restructuring Charges and Payments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Cost Reduction Actions
Beginning balance	$ 11,500,000	$ 28,600,000
Charges, Net of Reversals	7,300,000	13,300,000
Cash Payments	(13,400,000)	(27,100,000)
Non-cash Impairment	(100,000)	(2,400,000)
Foreign Currency Translation	(200,000)	(900,000)
Ending balance	5,100,000	11,500,000
2019/2020 Actions \| Severance and related costs
Cost Reduction Actions
Beginning balance	11,500,000	28,300,000
Charges, Net of Reversals	7,200,000	10,300,000
Cash Payments	(13,400,000)	(26,200,000)
Non-cash Impairment	0	0
Foreign Currency Translation	(200,000)	(900,000)
Ending balance	5,100,000	11,500,000
2019/2020 Actions \| Asset impairment charges
Cost Reduction Actions
Beginning balance	0	0
Charges, Net of Reversals	100,000	2,400,000
Cash Payments	0	0
Non-cash Impairment	(100,000)	(2,400,000)
Foreign Currency Translation	0	0
Ending balance	0	0
2019/2020 Actions \| Lease cancellation costs
Cost Reduction Actions
Beginning balance	0	0
Charges, Net of Reversals		600,000
Cash Payments		(600,000)
Non-cash Impairment		0
Foreign Currency Translation		0
Ending balance		0
2018/2019 Actions \| Lease cancellation costs
Cost Reduction Actions
Beginning balance	$ 0	300,000
Charges, Net of Reversals		0
Cash Payments		(300,000)
Non-cash Impairment		0
Foreign Currency Translation		0
Ending balance		$ 0

TAXES BASED ON INCOME (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Taxes Based on Income

Taxes based on income were as follows:


(In millions)	2022		2021		2020
Current:
U.S. federal tax	$	29.4	$	7.3	$	1.1
State taxes	8.8		5.3		1.9
International taxes	177.7		229.9		168.5
	215.9		242.5		171.5
Deferred:
U.S. federal tax	5.8		(1.1)		5.0
State taxes	.9		(5.3)		1.6
International taxes	19.6		12.5		(.4)
	26.3		6.1		6.2
Provision for income taxes	$	242.2	$	248.6	$	177.7

Schedule of the Principal Items Accounting for the Difference Between Taxes Computed at the U.S. Federal Statutory Rate

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


(In millions)	2022		2021		2020
Tax provision computed at U.S. federal statutory rate(1)	$	209.9	$	208.5	$	154.8
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	11.8		4.5		6.9
Foreign earnings taxed at different rates(1)	55.3		75.4		51.4
GILTI high-tax exclusion election, net(2)	(11.9)		(22.8)		(12.5)
Valuation allowance	(5.0)		(4.8)		(3.3)
U.S. federal research and development tax credits	(6.5)		(6.2)		(6.2)
Tax contingencies and audit settlements	(4.3)		3.9		(5.5)
Other items, net	(7.1)		(9.9)		(7.9)
Provision for income taxes	$	242.2	$	248.6	$	177.7


(1)			All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.
(2)			In 2022, we recognized $11.9 million of benefit related to a GILTI exclusion election made on our 2021 U.S. federal tax return. 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.

Summary of Income Before Taxes from the U.S. and International Operations

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


(In millions)	2022		2021		2020
U.S.	$	232.4	$	88.0	$	123.8
International	766.9		904.6		613.5
Income before taxes	$	999.3	$	992.6	$	737.3

Schedule of 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)	2022		2021
Accrued expenses not currently deductible	$	32.3	$	34.6
Net operating loss carryforwards	137.2		154.4
Tax credit carryforwards	9.7		34.6
Capitalized research expenses	38.6		23.7
Stock-based compensation	15.4		13.6
Pension and other postretirement benefits	31.5		38.8
Inventory reserve	15.6		14.7
Lease liabilities	33.2		42.5
Other assets	21.3		25.3
Valuation allowance	(59.4)		(70.1)
Total deferred tax assets(1)	275.4		312.1
Depreciation and amortization	(296.6)		(292.6)
Repatriation accrual	(12.0)		(16.2)
Foreign operating loss recapture	(3.2)		(3.4)
Lease assets	(33.8)		(43.8)
Total deferred tax liabilities(1)	(345.6)		(356.0)
Total net deferred tax assets (liabilities)	$	(70.2)	$	(43.9)

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

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
2023	$	4.5	$	.3
2024	2.6		.2
2025	2.9		.2
2026	7.2		.3
2027	4.1		.8
2028-2040	13.7		5.9
Indefinite life/no expiry	427.7		2.0
Total	$	462.7	$	9.7

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

Reconciliation of the Unrecognized Tax Benefits

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


(In millions)	2022		2021
Balance at beginning of year	$	74.0	$	72.0
Additions for tax positions of current year	6.6		9.1
Additions (reductions) for tax positions of prior years, net	(2.2)		1.2
Settlements with tax authorities	(1.1)		(1.1)
Expirations of statutes of limitations	(4.8)		(5.2)
Changes due to translation of foreign currencies	(3.0)		(2.0)
Balance at end of year	$	69.5	$	74.0

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

Assets and liabilities carried at fair value, measured on a recurring basis, as of December 31, 2022, were as follows:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	31.3	$	22.6	$	8.7	$	—
Derivative assets	4.3		—		4.3		—
Bank drafts	3.2		3.2		—		—
Cross-currency swap	15.5		—		15.5		—
Liabilities
Derivative liabilities	$	12.2	$	.3	$	11.9	$	—
Contingent consideration liabilities	6.0		—		—		6.0

Assets and liabilities carried at fair value, measured on a recurring basis, as of January 1, 2022 were as follows:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	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

Investments included 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 December 31, 2022, investments of $0.7 million and $30.6 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the Consolidated Balance Sheets. As of January 1, 2022, investments of $0.5 million and $33.4 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 certain acquisitions completed in 2022 and 2021, which are subject to the acquired companies achieving certain post-acquisition performance targets. These liabilities were recorded based on the expected payments and have been classified as Level 3. Activity related to contingent consideration in 2022 and 2021 were immaterial.

In addition to the investments described above, we hold venture investments that had a total carrying value of $70 million and $52 million as of December 31, 2022 and January 1, 2022, respectively, which was included in “Other assets” in the Consolidated Balance Sheets. We recognized net gains on our venture investments of $13.5 million, $23 million and $5.4 million in 2022, 2021 and 2020, respectively, in “Other expense (income), net” in the Consolidated Statements of Income.

- 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We are a global materials science and digital identification solutions company that provides branding and information labeling solutions, including pressure-sensitive materials, radio-frequency identification ("RFID") inlays and tags, and a variety of converted products and solutions. We design and manufacture a wide range of labeling and functional materials that enhance branded packaging, carry or display information that connects the physical and the digital, and improve customers’ product performance. We serve an array of industries worldwide, including home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals and automotive. 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. Segment Information In the fourth quarter of 2022, we changed our operating structure to align with our overall business strategy, and our Chief Executive Officer, who is also our chief operating decision maker, requested changes in the information that he regularly reviews to allocate resources and assess performance. As a result, our fiscal year 2022 results are reported based on our new reportable segments as described in Note 15, "Segment Information." We have recast prior periods to reflect our new operating structure. Fiscal Year Our fiscal years generally consist of 52 weeks, but every fifth or sixth fiscal year consists of 53 weeks; our 2022 and 2021 fiscal years consisted of 52-week periods ending December 31, 2022 and January 1, 2022, respectively. Our 2020 fiscal year consisted of a 53-week period ending January 2, 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. As future events and their effects 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. Venture Investments We invest in privately held companies and utilize the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost less impairment plus or minus observable price changes in orderly transactions. The carrying value of our venture investments is included in “Other assets” in the Consolidated Balance Sheets. See Note 9, “Fair Value Measurements,” for more information. 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 and, as necessary, if changes in facts and circumstances that indicate the fair value of a reporting unit may be less than its carrying value. Certain factors may cause us to perform an impairment test outside of our annual assessment, 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 the 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 differ materially 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 to use 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 their estimated useful lives. 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, because the country’s three-year cumulative inflation rate exceeds 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 for transferring 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 which we would expect 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 2022, 2021 or 2020. 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 estimate 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 Because we are subject to income tax in the U.S. and multiple foreign jurisdictions, judgment is required in evaluating and estimating our worldwide provision, accruals for taxes, deferred taxes and 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 September 2022, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the transparency of supplier finance programs by requiring disclosures of key program terms, information about obligations under these programs and a rollforward of these obligations. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We plan to adopt this guidance at the beginning of our 2023 fiscal year on January 1, 2023.

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Additional Financial Information by Reportable Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	$ 9,039.3	$ 8,408.3	$ 6,971.5
Income before taxes	999.3	992.6	737.3
Interest expense	(84.1)	(70.2)	(70.0)
Other non-operating expense (income), net	9.4	4.1	(1.9)
Capital expenditures	297.5	266.6	206.2
Depreciation and amortization expense	290.7	244.1	205.3
Other expense (income), net	(0.6)	5.6	53.6
Intersegment sales
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	174.5	143.1	109.4
Corporate Non-Segment
Segment and disaggregated revenue information [Line Items]
Income before taxes	(87.6)	(81.8)	(82.5)
Other expense (income), net	5.0	(5.3)	0.3
Materials Group
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	6,495.1	6,206.5	5,340.6
Capital expenditures	153.5	170.3	104.6
Depreciation and amortization expense	135.8	141.9	133.7
Materials Group \| Intersegment sales
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	137.1	105.8	81.9
Materials Group \| Operating Segments
Segment and disaggregated revenue information [Line Items]
Income before taxes	859.3	883.3	747.0
Other expense (income), net	(13.4)	(25.7)	30.6
Solutions Group
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	2,544.2	2,201.8	1,630.9
Capital expenditures	144.0	96.3	101.6
Depreciation and amortization expense	154.9	102.2	71.6
Solutions Group \| Intersegment sales
Segment and disaggregated revenue information [Line Items]
Net sales to unaffiliated customers	37.4	37.3	27.5
Solutions Group \| Operating Segments
Segment and disaggregated revenue information [Line Items]
Income before taxes	302.3	257.2	144.7
Other expense (income), net	$ 7.8	$ 36.6	$ 22.7

CONTINGENCIES

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

Legal Proceedings

We are involved in various lawsuits, claims, inquiries, and other regulatory and compliance matters, most of which are routine to the nature of our business. When it is probable that a loss will be incurred and where a range of the loss can be reasonably estimated, the best estimate within the range is accrued. When the best estimate within the range cannot be determined, the low end of the range is accrued. The ultimate resolution of these claims could affect future results of operations should our exposure be materially different from our estimates or should we incur liabilities that were not previously accrued. Potential insurance reimbursements are not offset against potential liabilities.

We are currently party to a litigation in which ADASA Inc. (“Adasa”), an unrelated third party, alleged that certain of our RFID products infringed on its patent. The case was filed on October 24, 2017 in the United States District Court in the District of Oregon (Eugene Division) and is captioned ADASA Inc. v. Avery Dennison Corporation. We recorded a contingent liability in the amount of $26.6 million related to this matter in the second quarter of 2021 based on a jury verdict issued on May 14, 2021.

During the fourth quarter of 2021, the first instance judgment associated with the jury verdict was issued. This resulted in additional potential liability for the RFID tags sold during the period from the jury verdict to the issuance of the first instance judgment and a royalty on additional late-disclosed tags, as well as sanctions, prejudgment interest, costs, and attorneys’ fees. In addition, Adasa was awarded an ongoing royalty on in-scope tags sold after October 14, 2021. On October 22, 2021, we appealed the judgment to the United States Court of Appeals for the Federal Circuit ("CAFC"). We have largely completed our migration to alternative encoding methods for our RFID tags.

During the fourth quarter of 2022, the CAFC issued its opinion, reversing the grant of summary judgment of validity as to anticipation and obviousness, vacating the sanctions ruling, and remanding the case for retrial. The CAFC affirmed subject-matter eligibility and damages if liability is determined in the retrial. On remand, the trial court must reconsider the amount of sanctions consistent with the CAFC's instruction to limit sanctions to the late-disclosed tags. 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 the sanctions are unreasonable. In addition, we believe that there are appealable grounds in the CAFC’s decision; as a result, we will seek U.S. Supreme Court review as the first of the potential next steps in the litigation process. As of December 31, 2022, we continue to evaluate our options and estimate a range of potential outcomes between approximately $5 million to $71 million. Based on our assessment, we concluded that the current reserve of $26.6 million is representative of the estimated liability taking into consideration the potential outcomes; as such, we did not record a change to the accrued liability.

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 and determined such to be probable, 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 we incur liabilities that were not previously accrued. Potential insurance reimbursements are not offset against potential liabilities. We review our estimates of the costs of complying with environmental laws related to remediation and cleanup of various sites, including sites in which governmental agencies have designated us as a potentially responsible party (“PRP”). However, environmental expenditures for newly acquired assets and those that extend or improve the economic useful life of existing assets are capitalized and amortized over the shorter of the estimated useful life of the acquired asset or the remaining life of the existing asset.

As of December 31, 2022, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or other responsible state agencies as a PRP at eleven 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 determined to be probable. If information were to become available that allowed us to reasonably estimate a range of potential expenses in an amount higher or lower than what we have accrued, we would adjust our environmental liabilities accordingly. In addition, we may be identified as a PRP at additional sites in the future. The range of expenses for remediation of any future-identified sites would be addressed as they arise; until then, a range of expenses for such remediation cannot be determined.

The activity related to our environmental liabilities in 2022 and 2021 was as follows:


(In millions)	2022		2021
Balance at beginning of year	$	21.9	$	21.1
Charges, net of reversals	4.4		2.9
Payments	(2.0)		(2.1)
Balance at end of year	$	24.3	$	21.9

Approximately $9 million and $2 million, respectively, of this balance was classified as short-term and included in “Other current liabilities” in the Consolidated Balance Sheets as of December 31, 2022 and January 1, 2022.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References + Details

TAXES BASED ON INCOME - Net Operating Loss and Tax Carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	$ 463.0	$ 508.0
Tax credit carryforwards of domestic and foreign subsidiaries	9.7	$ 34.6
Net operating loss and credit carryforward
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	462.7
Tax credit carryforwards of domestic and foreign subsidiaries	9.7
2023
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	4.5
Tax credit carryforwards of domestic and foreign subsidiaries	0.3
2024
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	2.6
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	2.9
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	7.2
Tax credit carryforwards of domestic and foreign subsidiaries	0.3
2027
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	4.1
Tax credit carryforwards of domestic and foreign subsidiaries	0.8
2028-2040
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	13.7
Tax credit carryforwards of domestic and foreign subsidiaries	5.9
Indefinite life/no expiry
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	427.7
Tax credit carryforwards of domestic and foreign subsidiaries	2.0
State
Net operating loss and credit carryforward [Line Items]
Net operating loss carryforwards of foreign subsidiaries	425.0
Operating loss carryforwards, valuation allowance	$ 380.0

SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Property, plant and equipment
Property, plant and equipment	$ 3,747.7	$ 3,626.2
Accumulated depreciation	(2,207.5)	(2,148.5)
Property, plant and equipment, net	1,540.2	1,477.7	$ 1,343.7
Land
Property, plant and equipment
Property, plant and equipment	29.3	28.6
Buildings and improvements
Property, plant and equipment
Property, plant and equipment	781.0	777.6
Machinery and equipment
Property, plant and equipment
Property, plant and equipment	2,667.8	2,582.2
Construction-in-progress
Property, plant and equipment
Property, plant and equipment	$ 269.6	$ 237.8

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Projected Benefit Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
U.S.
Change in projected benefit obligations [Roll Forward]
Projected benefit obligations at beginning of year	$ 66.8	$ 77.3
Service cost	0.0	0.0
Interest cost	1.2	1.0
Participant contribution	0.0	0.0
Amendments	0.0	0.0
Actuarial (gain) loss	(9.1)	(1.7)
Benefits paid	(7.1)	(9.8)
Settlements	0.0	0.0
Foreign currency translation	0.0	0.0
Projected benefit obligations at end of year	51.8	66.8
Accumulated benefit obligations at end of year	51.8	66.8
International
Change in projected benefit obligations [Roll Forward]
Projected benefit obligations at beginning of year	882.4	953.9
Service cost	16.5	19.0
Interest cost	10.8	8.9
Participant contribution	4.6	4.7
Amendments	0.0	(0.9)
Actuarial (gain) loss	(244.9)	(15.6)
Benefits paid	(21.3)	(23.3)
Settlements	(1.0)	(3.7)
Foreign currency translation	(60.2)	(60.6)
Projected benefit obligations at end of year	586.9	882.4
Accumulated benefit obligations at end of year	$ 540.2	$ 806.4

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Carried at Fair Value

Assets and liabilities carried at fair value, measured on a recurring basis, as of December 31, 2022, were as follows:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	31.3	$	22.6	$	8.7	$	—
Derivative assets	4.3		—		4.3		—
Bank drafts	3.2		3.2		—		—
Cross-currency swap	15.5		—		15.5		—
Liabilities
Derivative liabilities	$	12.2	$	.3	$	11.9	$	—
Contingent consideration liabilities	6.0		—		—		6.0

Assets and liabilities carried at fair value, measured on a recurring basis, as of January 1, 2022 were as follows:


			Fair Value Measurements Using
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Investments	$	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

SUPPLEMENTAL FINANCIAL INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Research and Development
Research and development expense	$ 136.1	$ 136.6	$ 112.8
Cash paid for interest and income taxes
Interest	80.9	62.8	69.6
Income taxes, net of refunds	204.8	253.4	203.4
Deferred Revenue
Other current liabilities	22.2	24.7
Long-term retirement benefits and other liabilities	2.1	1.9
Total deferred revenue	24.3	26.6
Revenue recognized during the period	$ 23.5	$ 18.4	$ 12.0

LONG-TERM INCENTIVE COMPENSATION (Details)	1 Months Ended	12 Months Ended
LONG-TERM INCENTIVE COMPENSATION (Details)	Apr. 30, 2017 shares	Dec. 31, 2022 USD ($) vestingPeriod item $ / shares shares	Jan. 01, 2022 USD ($) $ / shares shares	Jan. 02, 2021 USD ($) $ / shares shares
Long-Term Incentive Compensation [Line Items]
Aggregate number of shares available under the plan (in shares) \| shares	5,400,000
Fungible share ratio \| shares	1.5
Stock-based compensation expense		$ 47,400,000	$ 37,200,000	$ 24,000,000.0
Tax benefit		6,700,000	$ 4,600,000	$ 2,900,000
Unrecognized compensation cost related to share based compensation cost		$ 61,000,000
Unrecognized compensation cost weighted average recognition period		2 years
Stock option granted (in shares) \| shares		0	0	0
Total intrinsic value of stock options exercised		$ 0	$ 3,500,000	$ 4,000,000
Proceeds from exercises of stock options			1,000,000	2,000,000
Tax benefit associated with option exercises			$ 900,000	$ 1,000,000
Stock Options
Long-Term Incentive Compensation [Line Items]
Option expiration period		10 years
Vesting period		4 years
Stock Options \| Minimum
Long-Term Incentive Compensation [Line Items]
Purchase price of common stock as a percentage of its fair market value granted to non-employee directors and employees		100.00%
Performance units (PS)
Long-Term Incentive Compensation [Line Items]
Maximum special performance units issued (as a percent)		300.00%
Granted at target (in usd per share) \| $ / shares		$ 163.97	$ 191.86	$ 115.07
Fair value		$ 20,200,000	$ 19,200,000	$ 20,400,000
Performance units (PS) \| Minimum
Long-Term Incentive Compensation [Line Items]
Vesting period		3 years
Shares issued (as a percent)		0.00%
Performance units (PS) \| Maximum
Long-Term Incentive Compensation [Line Items]
Vesting period		4 years
Shares issued (as a percent)		200.00%
Market-leveraged stock units (MSUs)
Long-Term Incentive Compensation [Line Items]
Vesting period		4 years
Granted at target (in usd per share) \| $ / shares		$ 141.80	$ 216.06	$ 94.55
Fair value		$ 19,900,000	$ 17,800,000	$ 17,600,000
Number of vesting periods \| vestingPeriod		4
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) \| Minimum
Long-Term Incentive Compensation [Line Items]
Shares issued (as a percent)		0.00%
Market-leveraged stock units (MSUs) \| Maximum
Long-Term Incentive Compensation [Line Items]
Shares issued (as a percent)		200.00%
Restricted stock units (RSUs)
Long-Term Incentive Compensation [Line Items]
Granted at target (in usd per share) \| $ / shares		$ 168.34	$ 196.26	$ 111.71
Fair value		$ 2,800,000	$ 2,700,000	$ 3,800,000
Restricted stock units (RSUs) \| Directors
Long-Term Incentive Compensation [Line Items]
Vesting period		1 year
Restricted stock units (RSUs) \| Minimum \| Employees
Long-Term Incentive Compensation [Line Items]
Vesting period		3 years
Restricted stock units (RSUs) \| Maximum \| Employees
Long-Term Incentive Compensation [Line Items]
Vesting period		4 years
Long-term incentive units
Long-Term Incentive Compensation [Line Items]
Cash-based payment arrangement, expense		$ 11,500,000	21,300,000	13,800,000
Cash-based payment arrangement, tax benefit		$ 2,700,000	$ 5,100,000	$ 3,300,000
Long-term incentive units \| Maximum
Long-Term Incentive Compensation [Line Items]
Cash-based compensation, award vesting period		4 years
Market-leveraged long-term incentive units \| Maximum
Long-Term Incentive Compensation [Line Items]
Cash-based compensation, award vesting period		4 years
Performance long-term incentive units \| Minimum
Long-Term Incentive Compensation [Line Items]
Cash-based compensation, award vesting period		3 years
Cash-based compensation award (as percent)		0.00%
Performance long-term incentive units \| Maximum
Long-Term Incentive Compensation [Line Items]
Cash-based compensation award (as percent)		200.00%

COST REDUCTION ACTIONS - Narrative (Details) $ in Millions	12 Months Ended
COST REDUCTION ACTIONS - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($) position	Jan. 01, 2022 USD ($) position	Jan. 02, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 7.7	$ 13.6	$ 55.3
2019/2020 Actions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 7.3	$ 13.3
Net number of position reduced as a result of cost reduction actions \| position	830	360

LONG-TERM INCENTIVE COMPENSATION - Number of Awards, Weighted-average Grant-date Fair Value (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Performance units (PS)
Number of awards
Unvested at beginning of period (in shares)	322,100
Granted at target (in shares)	159,700
Adjustments for above-target performance (in shares)	78,100
Vested (in shares)	(182,700)
Forfeited/cancelled (in shares)	(4,500)
Unvested at end of period (in shares)	372,700	322,100
Weighted average grant-date fair value
Beginning balance (in usd per share)	$ 127.33
Granted at target (in usd per share)	163.97	$ 191.86	$ 115.07
Adjustment for above-target performance (in used per share)	110.41
Vested (in usd per share)	110.41
Forfeited/cancelled (in usd per share)	152.27
Ending balance (in usd per share)	$ 147.45	$ 127.33
Market-leveraged stock units (MSUs)
Number of awards
Unvested at beginning of period (in shares)	195,200
Granted at target (in shares)	100,500
Adjustments for above-target performance (in shares)	69,200
Vested (in shares)	(153,000.0)
Forfeited/cancelled (in shares)	(3,400)
Unvested at end of period (in shares)	208,500	195,200
Weighted average grant-date fair value
Beginning balance (in usd per share)	$ 143.16
Granted at target (in usd per share)	141.80	$ 216.06	94.55
Adjustment for above-target performance (in used per share)	127.45
Vested (in usd per share)	130.34
Forfeited/cancelled (in usd per share)	149.91
Ending balance (in usd per share)	$ 145.86	$ 143.16
Restricted stock units (RSUs)
Number of awards
Unvested at beginning of period (in shares)	36,100
Granted at target (in shares)	44,600
Vested (in shares)	(19,200)
Forfeited/cancelled (in shares)	(1,700)
Unvested at end of period (in shares)	59,800	36,100
Weighted average grant-date fair value
Beginning balance (in usd per share)	$ 139.82
Granted at target (in usd per share)	168.34	$ 196.26	$ 111.71
Vested (in usd per share)	146.32
Forfeited/cancelled (in usd per share)	125.93
Ending balance (in usd per share)	$ 159.23	$ 139.82

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Changes in "Accumulated Other Comprehensive Loss"

The changes in “Accumulated other comprehensive loss” (net of tax) for 2022 and 2021 were as follows:


(In millions)	Foreign Currency Translation		Pension and Other Postretirement Benefits		Cash Flow Hedges		Total
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)
Other comprehensive income (loss) before reclassifications, net of tax	(96.6)		6.3		4.9		(85.4)
Reclassifications to net income, net of tax	—		2.8		1.5		4.3
Net current-period other comprehensive income (loss), net of tax	(96.6)		9.1		6.4		(81.1)
Balance as of December 31, 2022	$	(314.0)	$	(51.3)	$	1.3	$	(364.0)

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


(In millions)	2022		2021		2020
Foreign currency translation:
Translation (loss) gain	$	(7.0)	$	(23.2)	$	27.5
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	.5		8.5		3.1
Reclassifications to net income	1.1		1.6		.9
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	1.6		1.7		(2.3)
Reclassifications to net income	.4		(.5)		—
Income tax (benefit) expense allocated to components of other comprehensive income (loss)	$	(3.4)	$	(11.9)	$	29.2

COMMITMENTS AND LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Dec. 31, 2022	Jan. 01, 2022
Weighted average remaining lease term (in years):
Operating	5 years 10 months 24 days	6 years 6 months
Finance	2 years 8 months 12 days	3 years 3 months 18 days
Weighted average discount rate (percentage):
Operating	3.20%	3.00%
Finance	2.80%	2.90%

COMMITMENTS AND LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Millions	Dec. 31, 2022 USD ($)
Operating Leases
2023	$ 45.8
2024	35.4
2025	27.8
2026	18.8
2027	10.8
2028 and thereafter	35.5
Total lease payments	174.1
Less: imputed interest	(18.1)
Present value of lease liabilities	156.0
Finance Leases
2023	5.8
2024	5.4
2025	2.1
2026	0.7
2027	0.2
2028 and thereafter	0.0
Total lease payments	14.2
Less: imputed interest	(0.6)
Present value of lease liabilities	$ 13.6

FINANCIAL INSTRUMENTS (Tables) - Other Derivatives

12 Months Ended

Dec. 31, 2022

Financial Instruments [Line Items]

Fair Value and Balance Sheet Locations of Derivatives

The following table shows the fair value and balance sheet locations of other derivatives as of December 31, 2022 and January 1, 2022:


	Asset					Liability
(In millions)	Balance Sheet Location	2022		2021		Balance Sheet Location	2022		2021
Foreign exchange contracts	Other current assets	$	4.3	$	6.3	Other current liabilities	$	9.6	$	2.9
Commodity contracts	Other current assets	—		—		Other current liabilities	.2		—
		$	4.3	$	6.3		$	9.8	$	2.9

Components of the Net Gains (Losses) Recognized in Income Related to Derivative 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	2022		2021		2020
Foreign exchange contracts	Cost of products sold	$	5.6	$	1.4	$	1.9
Foreign exchange contracts	Marketing, general and administrative expense	(4.3)		21.0		(14.2)
		$	1.3	$	22.4	$	(12.3)

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Apr. 30, 2022
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	5,000,000
Preferred stock, par value (in dollars per share)	$ 1
Preferred stock, outstanding shares (in shares)	0
Common stock, authorized shares (in shares)	400,000,000	400,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Repurchase of common stock, value	$ 379.5	$ 180.9	$ 104.3
Share repurchase authorized amount				$ 750.0
Share repurchase remained authorized amount	$ 730.0
Treasury stock
Class of Stock [Line Items]
Repurchase of shares for treasury (in shares)	2,173,416	925,425	792,997
Repurchase of common stock, value	$ 379.5	$ 180.9	$ 104.3

FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Mar. 31, 2020
Commodity contracts
Financial Instruments [Line Items]
Notional amount	$ 6.1
Foreign exchange contracts
Financial Instruments [Line Items]
Notional amount	1,360.0
Cross-Currency Swap
Financial Instruments [Line Items]
Notional amount			$ 250.0
Cross-Currency Swap \| Other assets
Financial Instruments [Line Items]
Foreign currency contract, asset, fair value disclosure	$ 15.5
Cross-Currency Swap \| Long-term retirement benefits and other liabilities
Financial Instruments [Line Items]
Foreign currency contracts, liability, fair value disclosure		$ (10.3)

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS

Goodwill

Results from our annual goodwill impairment test in the fourth quarter of 2022 indicated that no impairment occurred during 2022. The assumptions used in our assessment of these assets were primarily based on Level 3 inputs.

During the fourth quarter of 2022, we changed our operating structure to align with our overall business strategy. As a result, our fiscal year 2022 results are reported based on our new reportable segments described in Note 15, "Segment Information. We have recast prior periods to reflect our new operating structure. There was no goodwill impairment recognized as a result of the change in reportable segments.

Changes in the net carrying amount of goodwill for 2022 and 2021 by reportable segment are shown below:


(In millions)	Materials Group		Solutions Group		Total
Goodwill as of January 2, 2021	$	664.6	$	471.8	$	1,136.4
Acquisitions(1)	6.9		774.5		781.4
Acquisition adjustment(2)	1.2		—		1.2
Translation adjustments	(27.2)		(10.3)		(37.5)
Goodwill as of January 1, 2022	645.5		1,236.0		1,881.5
Acquisitions(3)	—		16.3		16.3
Acquisition adjustment(4)	—		(.5)		(.5)
Translation adjustments	(26.8)		(8.1)		(34.9)

Goodwill as of December 31, 2022	$	618.7	$	1,243.7	$	1,862.4

(1)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.

(2)Measurement period adjustment related to the finalization of the purchase price allocation for the December 2020 acquisition of ACPO, Ltd.

(3)Goodwill acquired related to the 2022 Acquisitions. We expect the recognized goodwill related to the 2022 Acquisitions to be non-deductible for income tax purposes.

(4)Measurement period adjustment related to the finalization of the purchase price allocation for the August 2021 acquisition of Vestcom.

The carrying amounts of goodwill at December 31, 2022 and January 1, 2022 were net of accumulated impairment losses of $820 million recognized in fiscal year 2009 by our Solutions Group 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 2022. The carrying value of indefinite-lived intangible assets resulting from business acquisitions, consisting of trade names and trademarks, was $154.7 million and $155.6 million at December 31, 2022 and January 1, 2022, respectively.

Finite-Lived Intangible Assets

In connection with the 2022 Acquisitions, we acquired approximately $21 million of identifiable finite-lived intangible assets, which consisted of patented and other developed technology as well as customer relationships.

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 weighted average useful lives of these intangible assets as of the acquisition date.


	Amount (in millions)		Weighted average 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.

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

The table below sets forth our finite-lived intangible assets resulting from business acquisitions at December 31, 2022 and January 1, 2022, which continue to be amortized.


	2022						2021
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	852.2	$	330.1	$	522.1	$	862.5	$	277.2	$	585.3
Patented and other developed technology	261.9		104.3		157.6		247.7		84.7		163.0
Trade names and trademarks	14.4		10.3		4.1		14.8		9.7		5.1
Other intangibles	3.2		1.4		1.8		3.2		.8		2.4
Total	$	1,131.7	$	446.1	$	685.6	$	1,128.2	$	372.4	$	755.8

Amortization expense for finite-lived intangible assets resulting from business acquisitions was $81.8 million for 2022, $44.6 million for 2021 and $19.9 million for 2020.

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


(In millions)	Estimated Amortization Expense
2023	$	80.9
2024	79.2
2025	78.4
2026	75.5
2027	75.2
2028 and thereafter	296.4

Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common stock, $1 par value	Capital in excess of par value	Retained earnings	Treasury stock	Accumulated other comprehensive loss
Beginning 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 2,173,416, 925,425 and 792,997 shares for treasury for the years ended 2022, 2021 and 2020, respectively	(104.3)				(104.3)
Issuance of 223,676, 257,189 and 389,102 shares under stock-based compensation plans for the years ended 2022, 2021 and 2020, respectively	4.9		(11.9)	(3.4)	20.2
Contribution of 153,803, 123,015 and 188,229 shares to 401(k) plan for the years ended 2022, 2021 and 2020, respectively	22.7			14.5	8.2
Dividends of $2.93, $2.66 and $2.36 per share for the years ended 2022, 2021 and 2020, 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 2,173,416, 925,425 and 792,997 shares for treasury for the years ended 2022, 2021 and 2020, respectively	(180.9)				(180.9)
Issuance of 223,676, 257,189 and 389,102 shares under stock-based compensation plans for the years ended 2022, 2021 and 2020, respectively	9.6		0.2	(7.2)	16.6
Contribution of 153,803, 123,015 and 188,229 shares to 401(k) plan for the years ended 2022, 2021 and 2020, respectively	24.6			19.1	5.5
Dividends of $2.93, $2.66 and $2.36 per share for the years ended 2022, 2021 and 2020, 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)
Increase (Decrease) in Stockholders' Equity
Net income	757.1			757.1
Other comprehensive income (loss), net of tax	(81.1)					(81.1)
Repurchase of 2,173,416, 925,425 and 792,997 shares for treasury for the years ended 2022, 2021 and 2020, respectively	(379.5)				(379.5)
Issuance of 223,676, 257,189 and 389,102 shares under stock-based compensation plans for the years ended 2022, 2021 and 2020, respectively	23.2		17.0	(4.4)	10.6
Contribution of 153,803, 123,015 and 188,229 shares to 401(k) plan for the years ended 2022, 2021 and 2020, respectively	27.0			20.1	6.9
Dividends of $2.93, $2.66 and $2.36 per share for the years ended 2022, 2021 and 2020, respectively	(238.9)			(238.9)
Ending balance at Dec. 31, 2022	$ 2,032.2	$ 124.1	$ 879.3	$ 4,414.6	$ (3,021.8)	$ (364.0)

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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+ Details

- Definition

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

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+ Details

COST REDUCTION ACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges and Payments

During 2022, restructuring charges and payments were as follows:


(In millions)	Accrual at January 1, 2022		Charges, Net of Reversals		Cash Payments		Non-cash Impairment		Foreign Currency Translation		Accrual at December 31, 2022
2019/2020 Actions
Severance and related costs	$	11.5	$	7.2	$	(13.4)	$	—	$	(.2)	$	5.1
Asset impairment charges	—		.1		—		(.1)		—		—

Total	$	11.5	$	7.3	$	(13.4)	$	(.1)	$	(.2)	$	5.1

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

Summary 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)	2022		2021		2020
Restructuring charges by reportable segment and Corporate
Materials Group	$	(1.0)	$	5.0	$	36.3
Solutions Group	7.9		7.6		18.7
Corporate	.8		1.0		.3
Total	$	7.7	$	13.6	$	55.3

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 167.2	$ 162.7
Trade accounts receivable, less allowances of $34.4 and $33 at year-end 2022 and 2021, respectively	1,374.4	1,424.5
Inventories	1,009.9	907.2
Other current assets	230.5	240.2
Total current assets	2,782.0	2,734.6
Property, plant and equipment, net	1,540.2	1,477.7
Goodwill	1,862.4	1,881.5
Other intangibles resulting from business acquisitions, net	840.3	911.4
Deferred tax assets	115.1	130.2
Other assets	810.5	836.2
Total assets	7,950.5	7,971.6
Current liabilities:
Short-term borrowings and current portion of long-term debt and finance leases	598.6	318.8
Accounts payable	1,339.3	1,298.8
Accrued payroll and employee benefits	228.5	299.0
Accrued trade rebates	173.8	176.3
Income taxes payable	76.2	74.9
Other current liabilities	383.4	380.1
Total current liabilities	2,799.8	2,547.9
Long-term debt and finance leases	2,503.5	2,785.9
Long-term retirement benefits and other liabilities	367.1	474.9
Deferred tax liabilities and income taxes payable	247.9	238.5
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 2022 and 2021; issued – 124,126,624 shares at year-end 2022 and 2021; outstanding – 80,810,016 and 82,605,953 shares at year-end 2022 and 2021, respectively	124.1	124.1
Capital in excess of par value	879.3	862.3
Retained earnings	4,414.6	3,880.7
Treasury stock at cost, 43,316,608 and 41,520,671 shares at year-end 2022 and 2021, respectively	(3,021.8)	(2,659.8)
Accumulated other comprehensive loss	(364.0)	(282.9)
Total shareholders’ equity	2,032.2	1,924.4
Total liabilities and shareholders' equity	$ 7,950.5	$ 7,971.6

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Other Expense (Income), Net by Type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring charges:
Restructuring charges	$ 7.7	$ 13.6	$ 55.3
Other items:
Transaction and related costs	0.3	20.9	4.2
Outcomes of legal proceedings, net	6.3	(0.4)	0.0
Gain on venture investments, net	(13.5)	(23.0)	(5.4)
(Gain) loss on sales of assets, net	(1.4)	0.2	(0.5)
Gain on sale of product line	0.0	(5.7)	0.0
Other expense (income), net	(0.6)	5.6	53.6
Reduction in taxes \| Brazil
Other items:
Outcomes of legal proceedings, net		(29.1)
Infringement of patent
Other items:
Outcomes of legal proceedings, net		26.6
Severance and related costs
Restructuring charges:
Restructuring charges	7.6	10.5	49.1
Asset impairment charges and lease cancellation costs
Restructuring charges:
Restructuring charges	$ 0.1	$ 3.1	$ 6.2

COST REDUCTION ACTIONS

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

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 2022, we recorded $7.3 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 830 positions and asset impairment charges at numerous locations across our company, reflecting actions in both our reportable segments. The actions in our Materials Group reportable segment were primarily associated with consolidations of its operations in North America and its graphics business in Europe, in part in response to COVID-19. The actions in our Solutions Group reportable segment were primarily related to global headcount and footprint reduction, with some actions accelerated and expanded in response to COVID-19. During 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, 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 2022.

Accruals for severance and related costs and lease cancellation costs were included in “Other current liabilities” in the Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets, less

selling costs, if applicable. Restructuring charges were included in “Other expense (income), net” in the Consolidated Statements of Income.

During 2022, restructuring charges and payments were as follows:


(In millions)	Accrual at January 1, 2022		Charges, Net of Reversals		Cash Payments		Non-cash Impairment		Foreign Currency Translation		Accrual at December 31, 2022
2019/2020 Actions
Severance and related costs	$	11.5	$	7.2	$	(13.4)	$	—	$	(.2)	$	5.1
Asset impairment charges	—		.1		—		(.1)		—		—

Total	$	11.5	$	7.3	$	(13.4)	$	(.1)	$	(.2)	$	5.1

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

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


(In millions)	2022		2021		2020
Restructuring charges by reportable segment and Corporate
Materials Group	$	(1.0)	$	5.0	$	36.3
Solutions Group	7.9		7.6		18.7
Corporate	.8		1.0		.3
Total	$	7.7	$	13.6	$	55.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Summary Of Significant Accounting Policies [Line Items]
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

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Operating Activities
Net income	$ 757.1	$ 740.1	$ 555.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	177.4	167.3	154.2
Amortization	113.3	76.8	51.1
Provision for credit losses and sales returns	50.1	35.7	64.0
Stock-based compensation	47.4	37.2	24.0
Pension plan settlements and related charges	0.0	1.6	0.5
Deferred taxes and other non-cash taxes	18.4	2.6	9.3
Other non-cash expense and loss (income and gain), net	23.5	10.1	44.9
Changes in assets and liabilities and other adjustments:
Trade accounts receivable	(22.1)	(113.2)	14.7
Inventories	(140.7)	(182.7)	(6.0)
Accounts payable	68.2	255.2	(68.2)
Taxes on income	18.9	(7.3)	(35.2)
Other assets	15.3	4.1	18.2
Other liabilities	(165.8)	19.3	(76.1)
Net cash provided by operating activities	961.0	1,046.8	751.3
Investing Activities
Purchases of property, plant and equipment	(278.1)	(255.0)	(201.4)
Purchases of software and other deferred charges	(20.4)	(17.1)	(17.2)
Proceeds from sales of property, plant and equipment	2.3	1.1	9.2
Proceeds from insurance and sales (purchases) of investments, net	1.9	3.1	5.6
Proceeds from sale of product line and venture investment	1.1	7.6	0.0
Payments for acquisitions, net of cash acquired, and venture investments	(39.5)	(1,477.6)	(350.4)
Net cash used in investing activities	(332.7)	(1,737.9)	(554.2)
Financing Activities
Net increase (decrease) in borrowings with maturities of three months or less	34.6	259.2	(110.4)
Additional borrowings under revolving credit facility	0.0	0.0	500.0
Repayments of borrowings under revolving credit facility	0.0	0.0	(500.0)
Additional long-term borrowings	0.0	791.7	493.7
Repayments of long-term debt and finance leases	(6.3)	(13.4)	(270.2)
Dividends paid	(238.9)	(220.6)	(196.8)
Share repurchases	(379.5)	(180.9)	(104.3)
Net (tax withholding) proceeds related to stock-based compensation	(25.1)	(25.4)	(19.7)
Other	0.0	(6.3)	0.0
Net cash (used in) provided by financing activities	(615.2)	604.3	(207.7)
Effect of foreign currency translation on cash balances	(8.6)	(2.8)	9.2
Increase (decrease) in cash and cash equivalents	4.5	(89.6)	(1.4)
Cash and cash equivalents, beginning of year	162.7	252.3	253.7
Cash and cash equivalents, end of year	$ 167.2	$ 162.7	$ 252.3

DEBT - Long-Term Debt, Including its Respective Interest Rates, at Year-End (Details) € in Millions	1 Months Ended			5 Months Ended
	Aug. 31, 2021 USD ($)	Apr. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 27, 2020 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Jan. 01, 2022 USD ($)	Mar. 29, 2020 USD ($)
Long-term Debt, Unclassified
Series 1995 due 2025					$ 30,000,000.0		$ 30,000,000.0
Less amount classified as current					(249,700,000)		0
Total long-term debt					2,495,400,000		2,774,200,000
Unamortized debt issuance cost					10,500,000		12,900,000
Unamortized debt discount					$ 7,100,000		$ 8,200,000
Weighted-average interest rate					7.50%	7.50%	7.50%
Repayment of medium-term notes				$ 15,000,000
Senior Notes
Long-term Debt, Unclassified
Extinguishment of debt		$ 250,000,000
Senior notes due 2023 at 3.4%
Long-term Debt, Unclassified
Interest rate of senior notes					3.40%	3.40%	3.40%
Senior notes					$ 249,700,000		$ 249,500,000
Senior notes due 2024 at 0.85%
Long-term Debt, Unclassified
Senior notes issued	$ 300,000,000
Interest rate of senior notes	0.85%				0.85%	0.85%	0.85%
Proceeds, net of underwriting discounts and estimated offering expenses	$ 298,000,000
Senior notes					$ 299,000,000.0		$ 298,300,000
Senior notes due 2025 at 1.25%
Long-term Debt, Unclassified
Senior notes issued \| €						€ 500
Interest rate of senior notes					1.25%	1.25%	1.25%
Senior notes					$ 531,300,000		$ 563,300,000
Senior notes due 2028 at 4.875%
Long-term Debt, Unclassified
Interest rate of senior notes					4.875%	4.875%	4.875%
Senior notes					$ 496,000,000.0		$ 495,300,000
Senior notes due 2030 at 2.650%
Long-term Debt, Unclassified
Senior notes issued								$ 500,000,000
Interest rate of senior notes					2.65%	2.65%	2.65%	2.65%
Proceeds, net of underwriting discounts and estimated offering expenses			$ 493,700,000
Senior notes					$ 495,500,000		$ 494,800,000
Senior notes due 2032 at 2.25%
Long-term Debt, Unclassified
Senior notes issued	$ 500,000,000
Interest rate of senior notes	2.25%				2.25%	2.25%	2.25%
Proceeds, net of underwriting discounts and estimated offering expenses	$ 493,700,000
Senior notes					$ 494,500,000		$ 493,900,000
Senior notes due 2033 at 6.0%
Long-term Debt, Unclassified
Interest rate of senior notes					6.00%	6.00%	6.00%
Senior notes					$ 149,100,000		$ 149,100,000

Cover Page - USD ($)
$ in Billions

12 Months Ended

Dec. 31, 2022

Jan. 28, 2023

Jul. 02, 2022

Document Information [Line Items]

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2022

Current Fiscal Year End Date

--12-31

Document Transition Report

false

Entity File Number

1-7685

Entity Registrant Name

AVERY DENNISON CORPORATION

Entity Incorporation, State or Country Code

Entity Tax Identification Number

95-1492269

Entity Address, Address Line One

8080 Norton Parkway

Entity Address, City or Town

Mentor

Entity Address, State or Province

Entity Address, Postal Zip Code

44060

City Area Code

440

Local Phone Number

534-6000

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Large Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

ICFR Auditor Attestation Flag

true

Entity Shell Company

false

Entity Public Float

$ 13.3

Entity Common Stock, Shares Outstanding

80,824,942

Documents Incorporated by Reference


Document						Incorporated by reference into:

Portions of Definitive Proxy Statement for Annual Meeting of Stockholders to be held on April 27, 2023						Parts III, IV

Entity Central Index Key

0000008818

Document Fiscal Year Focus

2022

Document Fiscal Period Focus

Amendment Flag

false

Common stock, $1 par value

Document Information [Line Items]

Title of 12(b) Security

Common stock, $1 par value

Trading Symbol

AVY

Security Exchange Name

NYSE

Senior notes due 2025 at 1.25%

Document Information [Line Items]

Title of 12(b) Security

1.25% Senior Notes due 2025

Trading Symbol

AVY25

Security Exchange Name

NASDAQ

FINANCIAL INSTRUMENTS - Net Losses Recognized in Income (Details) - Other Derivatives - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Gains (losses) recognized in current earnings [Line Items]
Net gains (losses) in income	$ 1.3	$ 22.4	$ (12.3)
Foreign exchange contracts \| Cost of products sold
Gains (losses) recognized in current earnings [Line Items]
Net gains (losses) in income	5.6	1.4	1.9
Foreign exchange contracts \| Marketing, general and administrative expense
Gains (losses) recognized in current earnings [Line Items]
Net gains (losses) in income	$ (4.3)	$ 21.0	$ (14.2)

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Property, plant and equipment
Property, plant and equipment, net	$ 1,540.2	$ 1,477.7	$ 1,343.7
U.S.
Property, plant and equipment
Property, plant and equipment, net	589.0	524.0	403.1
International
Property, plant and equipment
Property, plant and equipment, net	951.2	953.7	940.6
China Including HongKong
Property, plant and equipment
Property, plant and equipment, net	$ 259.0	$ 290.0	$ 297.0

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
Net sales	$ 9,039.3	$ 8,408.3	$ 6,971.5
Cost of products sold	6,635.1	6,095.5	5,048.2
Gross profit	2,404.2	2,312.8	1,923.3
Marketing, general and administrative expense	1,330.8	1,248.5	1,060.5
Other expense (income), net	(0.6)	5.6	53.6
Interest expense	84.1	70.2	70.0
Other non-operating expense (income), net	(9.4)	(4.1)	1.9
Income before taxes	999.3	992.6	737.3
Provision for income taxes	242.2	248.6	177.7
Equity method investment (losses) gains	0.0	(3.9)	(3.7)
Net income	$ 757.1	$ 740.1	$ 555.9
Per share amounts:
Net income per common share (in dollars per share)	$ 9.28	$ 8.93	$ 6.67
Net income per common share, assuming dilution (in dollars per share)	$ 9.21	$ 8.83	$ 6.61
Weighted average number of shares outstanding:
Common shares (in shares)	81.6	82.9	83.4
Common shares, assuming dilution (in shares)	82.2	83.8	84.1

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Schedule of Changes in Net Carrying Amount of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	$ 1,881.5	$ 1,136.4
Acquisition	16.3	781.4
Acquisition adjustment	(0.5)	1.2
Translation adjustments	(34.9)	(37.5)
Goodwill, ending balance	1,862.4	1,881.5
Materials Group
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	645.5	664.6
Acquisition	0.0	6.9
Acquisition adjustment	0.0	1.2
Translation adjustments	(26.8)	(27.2)
Goodwill, ending balance	618.7	645.5
Solutions Group
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	1,236.0	471.8
Acquisition	16.3	774.5
Acquisition adjustment	(0.5)	0.0
Translation adjustments	(8.1)	(10.3)
Goodwill, ending balance	1,243.7	1,236.0
Accumulated impairment losses	$ 820.0	$ 820.0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

SEGMENT AND DISAGGREGATED REVENUE INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT AND DISAGGREGATED REVENUE INFORMATION

Segment Reporting

We have the following reportable segments:

•Materials Group – manufactures and sells pressure-sensitive label materials, films for graphic and reflective products, performance tapes and other adhesive products for industrial, medical and other applications, as well as fastener solutions.

•Solutions Group – 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.

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 reflects how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue from our Materials Group reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue from our Solutions Group reportable segment is shown by product group.


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
Materials Group(1):
U.S.	$	1,892.1	$	1,736.4	$	1,504.5
Europe	2,396.2		2,261.1		1,952.8
Asia	1,390.3		1,471.1		1,245.3
Latin America	470.1		408.6		350.9
Other international	346.4		329.3		287.1
Total Materials Group	6,495.1		6,206.5		5,340.6
Solutions Group:
Apparel	1,851.2		1,839.1		1,432.3
Identification Solutions and Vestcom	693.0		362.7		198.6
Total Solutions Group	2,544.2		2,201.8		1,630.9
Net sales to unaffiliated customers	$	9,039.3	$	8,408.3	$	6,971.5


(1)			Previously reported segment results have been recast to reflect our new operating structure.

Revenue from our Materials Group reportable segment by product group is shown below.


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
Materials Group:
Labels, graphics and reflectives	$	5,725.7	$	5,430.4	$	4,715.1
Tapes and adhesives	696.3		703.4		565.9
Other	73.1		72.7		59.6
Total Materials Group	$	6,495.1	$	6,206.5	$	5,340.6

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


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
U.S.	$	2,565.9	$	2,065.2	$	1,683.6
Europe	2,683.6		2,541.4		2,164.7
Asia	2,817.2		2,914.5		2,378.5
Latin America	605.7		537.6		440.3
Other international	366.9		349.6		304.4
Net sales to unaffiliated customers	$	9,039.3	$	8,408.3	$	6,971.5

Net sales to unaffiliated customers in Asia included sales in China (including Hong Kong) of $1.50 billion in 2022, $1.68 billion in 2021 and $1.31 billion in 2020.

No single customer represented 10% or more of our net sales in year-end 2022, 2021 or 2020. During 2022, 2021 and 2020, our ten largest customers by net sales in the aggregate represented approximately 16%, 16% and 17% of our net sales, respectively.

Additional Segment Information

Additional financial information by reportable segment and Corporate is shown below.


(In millions)	2022		2021		2020
Intersegment sales
Materials Group(1)	$	137.1	$	105.8	$	81.9
Solutions Group	37.4		37.3		27.5

Intersegment sales	$	174.5	$	143.1	$	109.4
Income before taxes
Materials Group(1)	$	859.3	$	883.3	$	747.0
Solutions Group	302.3		257.2		144.7

Corporate expense	(87.6)		(81.8)		(82.5)
Interest expense	(84.1)		(70.2)		(70.0)
Other non-operating expense (income), net	9.4		4.1		(1.9)
Income before taxes	$	999.3	$	992.6	$	737.3
Capital expenditures(2)(3)
Materials Group(1)	$	153.5	$	170.3	$	104.6
Solutions Group	144.0		96.3		101.6

Capital expenditures	$	297.5	$	266.6	$	206.2
Depreciation and amortization expense(2)
Materials Group(1)	$	135.8	$	141.9	$	133.7
Solutions Group	154.9		102.2		71.6

Depreciation and amortization expense	$	290.7	$	244.1	$	205.3
Other expense (income), net by reportable segment
Materials Group(1)	$	(13.4)	$	(25.7)	$	30.6
Solutions Group	7.8		36.6		22.7

Corporate	5.0		(5.3)		.3
Other expense (income), net	$	(.6)	$	5.6	$	53.6


(1)			Previously reported segment results have been recast to reflect our new operating structure.
(2)			Corporate capital expenditures and depreciation and amortization expense are allocated to the reportable segments based on their percentage of consolidated net sales.
(3)			Capital expenditures for property, plant and equipment included accruals.

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


(In millions)	2022		2021		2020
Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	7.6	$	10.5	$	49.1
Asset impairment charges and lease cancellation costs	.1		3.1		6.2
Other items:
Transaction and related costs	.3		20.9		4.2
Outcomes of legal proceedings, net(1)	6.3		(.4)		—
Gain on venture investments, net	(13.5)		(23.0)		(5.4)
(Gain) loss on sales of assets, net	(1.4)		.2		(.5)
Gain on sale of product line	—		(5.7)		—
Other expense (income), net	$	(.6)	$	5.6	$	53.6


(1)			Amount for 2021 included an indirect tax credit based on a Brazilian Federal Supreme Court ruling 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 regarding the patent infringement lawsuit.

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


(In millions)	2022		2021		2020
Property, plant and equipment, net
U.S.	$	589.0	$	524.0	$	403.1
International	951.2		953.7		940.6
Property, plant and equipment, net	$	1,540.2	$	1,477.7	$	1,343.7

Property, plant and equipment, net, located in China (including Hong Kong) was approximately $259 million in 2022, $290 million in 2021 and $297 million in 2020.

- 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.

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+ Details

FINANCIAL INSTRUMENTS - Balance Sheet Locations of Other Derivatives, Fair Value (Details) - Other Derivatives - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Other current assets
Other Derivatives, Fair Value [Line Items]
Asset	$ 4.3	$ 6.3
Other current liabilities
Other Derivatives, Fair Value [Line Items]
Liability	9.8	2.9
Foreign exchange contracts \| Other current assets
Other Derivatives, Fair Value [Line Items]
Asset	4.3	6.3
Foreign exchange contracts \| Other current liabilities
Other Derivatives, Fair Value [Line Items]
Liability	9.6	2.9
Commodity contracts \| Other current assets
Other Derivatives, Fair Value [Line Items]
Asset	0.0	0.0
Commodity contracts \| Other current liabilities
Other Derivatives, Fair Value [Line Items]
Liability	$ 0.2	$ 0.0

COMMITMENTS AND LEASES - Supplemental Cost Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Operating lease costs	$ 70.8	$ 68.8	$ 63.1

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Material Group Revenue By Product (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Revenue from External Customer [Line Items]
Net sales to unaffiliated customers	$ 9,039.3	$ 8,408.3	$ 6,971.5
Materials Group
Revenue from External Customer [Line Items]
Net sales to unaffiliated customers	6,495.1	6,206.5	5,340.6
Materials Group \| Labels, graphics and reflectives
Revenue from External Customer [Line Items]
Net sales to unaffiliated customers	5,725.7	5,430.4	4,715.1
Materials Group \| Tapes and adhesives
Revenue from External Customer [Line Items]
Net sales to unaffiliated customers	696.3	703.4	565.9
Materials Group \| Other
Revenue from External Customer [Line Items]
Net sales to unaffiliated customers	$ 73.1	$ 72.7	$ 59.6

- Definition

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

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

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
	Dec. 31, 2022 USD ($)
Reconciliation of Level 3 assets [Roll Forward]
Balance at the beginning of the year	$ 48.9
Net realized and unrealized gain (loss)	(0.9)
Purchases	3.2
Settlements	(3.2)
Impact of changes in foreign currency exchange rates	(2.6)
Balance at the end of the year	45.4
Insurance contracts
Reconciliation of Level 3 assets [Roll Forward]
Balance at the beginning of the year	37.9
Net realized and unrealized gain (loss)	0.7
Purchases	3.2
Settlements	(3.2)
Impact of changes in foreign currency exchange rates	(1.5)
Balance at the end of the year	37.1
Pooled Funds – Real Estate Investment Trusts
Reconciliation of Level 3 assets [Roll Forward]
Balance at the beginning of the year	11.0
Net realized and unrealized gain (loss)	(1.6)
Purchases	0.0
Settlements	0.0
Impact of changes in foreign currency exchange rates	(1.1)
Balance at the end of the year	$ 8.3

TAXES BASED ON INCOME - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Line Items]
Effective tax rate (as a percent)	24.20%	25.00%	24.10%
Effective income tax rate reconciliation, GILTI, FDII, net, amount	$ 18.8	$ 28.5	$ 22.1
Effective income tax rate reconciliation, prior year income taxes, amount	17.3	11.3
Return to provision benefit, GILTI exclusions and FDI deductions amount	11.9	22.8	12.5
Income Tax Reconciliation Tax Contingencies And Audit Settlements	$ 4.3	(3.9)	$ 5.5
Tax Year 2020
Income Tax Disclosure [Line Items]
Return to provision benefit, GILTI exclusions and FDI deductions amount		(8.7)
Tax Year 2018
Income Tax Disclosure [Line Items]
Return to provision benefit, GILTI exclusions and FDI deductions amount		$ 14.1

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Income Tax (Benefit) Expense Allocated to Each Component of Other Comprehensive loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Foreign currency translation:
Translation (loss) gain	$ (7.0)	$ (23.2)	$ 27.5
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	0.5	8.5	3.1
Reclassifications to net income	1.1	1.6	0.9
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	1.6	1.7	(2.3)
Reclassifications to net income	0.4	(0.5)	0.0
Income tax (benefit) expense allocated to components of other comprehensive income (loss)	$ (3.4)	$ (11.9)	$ 29.2

PENSION AND OTHER POSTRETIREMENT BENEFITS - Funded Status of the Plan (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation in excess of plan assets	$ 165.0	$ 261.0
Fair value of plan assets, benefit obligations in excess of plan assets	42.0	73.0
Accumulated benefit obligations	132.0	228.0
Fair value of plan assets	23.0	67.0
U.S.
Funded status of the plans
Other assets	0.0	0.0
Other accrued liabilities	(6.2)	(7.0)
Long-term retirement benefits and other liabilities	(45.6)	(59.8)
Plan assets less than benefit obligations	$ (51.8)	$ (66.8)
Weighted average assumptions used to determine year-end benefit obligations
Discount rate	5.06%	2.49%
Compensation rate increase	0.00%	0.00%
International
Funded status of the plans
Other assets	$ 70.0	$ 113.6
Other accrued liabilities	(0.4)	(1.0)
Long-term retirement benefits and other liabilities	(71.2)	(120.4)
Plan assets less than benefit obligations	$ (1.6)	$ (7.8)
Weighted average assumptions used to determine year-end benefit obligations
Discount rate	4.36%	1.57%
Compensation rate increase	2.75%	2.33%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Defined Benefit Plans (Details) - International - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	$ 585.3	$ 874.6
Cash \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	6.4	10.1
Insurance contracts \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	37.1	37.9
Pooled funds – real estate investment trusts \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	8.3	11.0
Pooled funds - fixed income securities \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	335.7	464.4
Pooled funds - equity securities \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	151.9	302.8
Pooled funds - other investments \| Total
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	45.9	48.4
Quoted Prices in Active Markets (Level 1) \| Cash
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	6.4	10.1
Quoted Prices in Active Markets (Level 1) \| Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Quoted Prices in Active Markets (Level 1) \| Pooled funds – real estate investment trusts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Cash
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Pooled funds – real estate investment trusts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Significant Other Unobservable Inputs (Level 3) \| Cash
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	0.0	0.0
Significant Other Unobservable Inputs (Level 3) \| Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	37.1	37.9
Significant Other Unobservable Inputs (Level 3) \| Pooled funds – real estate investment trusts
Defined Benefit Plan Disclosure [Line Items]
Total international plan assets at fair value	$ 8.3	$ 11.0

ACQUISITIONS - Schedule of assets acquired and liabilities assumed in business acquisition (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Acquisitions [Line Items]
Goodwill	$ 1,862.4	$ 1,881.5	$ 1,136.4
Vestcom
Acquisitions [Line Items]
Cash and cash equivalents	24.3
Trade accounts receivable	98.4
Other current assets	28.5
Property, plant and equipment	56.2
Goodwill	756.1
Other intangibles resulting from business acquisition	727.0
Other assets	22.8
Total assets	1,713.3
Current liabilities	47.5
Other liabilities	17.2
Deferred and non-current income tax liabilities	183.5
Total liabilities	248.2
Net assets acquired	$ 1,465.1

NET INCOME PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 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)	2022		2021		2020
(A) Net income	$	757.1	$	740.1	$	555.9
(B) Weighted average number of common shares outstanding	81.6		82.9		83.4
Dilutive shares (additional common shares issuable under stock-based awards)	.6		.9		.7
(C) Weighted average number of common shares outstanding, assuming dilution	82.2		83.8		84.1
Net income per common share (A) ÷ (B)	$	9.28	$	8.93	$	6.67
Net income per common share, assuming dilution (A) ÷ (C)	$	9.21	$	8.83	$	6.61

FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL INSTRUMENTS

As of December 31, 2022, the aggregate U.S. dollar equivalent notional value of our outstanding commodity contracts and foreign exchange contracts was $6.1 million and $1.36 billion, respectively. Our outstanding foreign exchange contracts as of December 31, 2022 were recorded under various currencies, primarily the U.S. dollar, euro, Chinese renminbi, British pound sterling and Hong Kong dollar.

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 2022, 2021 or 2020.

Cross-Currency Swap

In March 2020, we entered into U.S. dollar to euro cross-currency swap contracts with a total notional amount of $250 million to effectively convert the fixed-rate U.S. dollar-denominated debt into 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 $15.5 million as of December 31, 2022, which was included in "Other Assets" and $(10.3) million as of January 1, 2022, which was included in “Long-term retirement benefits and other liabilities” in the Consolidated Balance Sheets. Refer to Note 9, “Fair Value Measurements,” to the Consolidated Financial Statements for more information.

We recorded no ineffectiveness from our cross-currency swap to earnings during 2022, 2021 or 2020.

Other Derivatives

The following table shows the fair value and balance sheet locations of other derivatives as of December 31, 2022 and January 1, 2022:


	Asset					Liability
(In millions)	Balance Sheet Location	2022		2021		Balance Sheet Location	2022		2021
Foreign exchange contracts	Other current assets	$	4.3	$	6.3	Other current liabilities	$	9.6	$	2.9
Commodity contracts	Other current assets	—		—		Other current liabilities	.2		—
		$	4.3	$	6.3		$	9.8	$	2.9

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	2022		2021		2020
Foreign exchange contracts	Cost of products sold	$	5.6	$	1.4	$	1.9
Foreign exchange contracts	Marketing, general and administrative expense	(4.3)		21.0		(14.2)
		$	1.3	$	22.4	$	(12.3)

PENSION AND OTHER POSTRETIREMENT BENEFITS - Change in Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
U.S.
Change in plan assets
Plan assets at beginning of year	$ 0.0	$ 0.0
Actual return on plan assets	0.0	0.0
Employer contributions	7.1	9.8
Participant contributions	0.0	0.0
Benefits paid	(7.1)	(9.8)
Settlements	0.0	0.0
Foreign currency translation	0.0	0.0
Plan assets at end of year	0.0	0.0
International
Change in plan assets
Plan assets at beginning of year	874.6	897.2
Actual return on plan assets	(226.5)	37.3
Employer contributions	15.2	20.7
Participant contributions	4.6	4.7
Benefits paid	(21.3)	(23.3)
Settlements	(1.0)	(3.7)
Foreign currency translation	(60.3)	(58.3)
Plan assets at end of year	$ 585.3	$ 874.6

LONG-TERM INCENTIVE COMPENSATION - Stock Option Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Number of options
Outstanding beginning balance (in shares)	142,000.0
Exercised, number of options (in shares)	(900)
Outstanding ending balance (in shares)	141,100	142,000.0
Options vested and expected to vest (in shares)	141,100
Options exercisable (in shares)	141,100
Weighted average remaining contractual life (in years)
Outstanding beginning balance (in usd per share)	$ 73.76
Exercised, weighted-average exercise price (in usd per share)	40.33
Outstanding ending balance (in usd per share)	73.96	$ 73.76
Options vested and expected to vest (in usd per share)	73.76
Options exercisable (in usd per share)	$ 73.96
Weighted average remaining contractual life (in years)
Outstanding	3 years 5 months 1 day	4 years 4 months 24 days
Options vested or expected to vest	3 years 5 months 1 day
Options exercisable	3 years 5 months 1 day
Aggregate intrinsic value (in millions)
Outstanding	$ 15.1	$ 20.3
Options vested and expected to vest	15.1
Options exercisable	$ 15.1

TAXES BASED ON INCOME - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 74.0	$ 72.0
Additions for tax positions of current year	6.6	9.1
Additions (reductions) for tax positions of prior years, net	(2.2)	1.2
Settlements with tax authorities	(1.1)	(1.1)
Expirations of statutes of limitations	(4.8)	(5.2)
Changes due to translation of foreign currencies	(3.0)	(2.0)
Balance at end of year	69.5	$ 74.0
Reasonably possible decrease in uncertain tax positions, including interest and penalties, during the next 12 months	$ 6.0

COMMITMENTS AND LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 60.5	$ 54.2	$ 54.9
Operating lease assets obtained in exchange for operating lease liabilities	$ 37.2	$ 58.0	$ 48.4

SUPPLEMENTAL FINANCIAL INFORMATION - Allowance of credit losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Change in Allowance for Credit Losses
Balance at beginning of year	$ 33.0	$ 44.6
Provision for (reversal of) credit losses	6.9	(4.7)	$ 20.3
Amounts written off	(4.3)	(7.7)
Other, including foreign currency translation	(1.2)	0.8
Balance at end of year	$ 34.4	$ 33.0	$ 44.6

COST REDUCTION ACTIONS - Restructuring Charges by Reportable Segment and Corporate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 7.7	$ 13.6	$ 55.3
Corporate Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.8	1.0	0.3
Materials Group \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(1.0)	5.0	36.3
Solutions Group \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 7.9	$ 7.6	$ 18.7

DEBT (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt, Including its Respective Interest Rates, at Year-End

Our long-term debt, and related interest rates, at year-end 2022 and 2021 is shown below.


(In millions)	2022		2021
Long-term debt
Medium-term notes:
Series 1995 due 2025	$	30.0	$	30.0
Long-term notes:
Senior notes due 2023 at 3.4%	249.7		249.5
Senior notes due 2024 at 0.85%	299.0		298.3
Senior notes due 2025 at 1.25%(1)	531.3		563.3
Senior notes due 2028 at 4.875%	496.0		495.3
Senior notes due 2030 at 2.650%	495.5		494.8
Senior notes due 2032 at 2.25%	494.5		493.9
Senior notes due 2033 at 6.0%	149.1		149.1
Less amount classified as current	(249.7)		—
Total long-term debt(2)	$	2,495.4	$	2,774.2


(1)			These senior notes are euro-denominated. The face value is €500 million.
(2)			Included unamortized debt issuance costs and debt discounts of $10.5 million and $7.1 million, respectively, as of year-end 2022 and $12.9 million and $8.2 million, respectively, as of year-end 2021.

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)
2023	$	250.0
2024	300.0
2025	562.6
2026	—
2027	—
2028 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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+ Details

SEGMENT AND DISAGGREGATED REVENUE INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Revenue from our Materials Group reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue from our Solutions Group reportable segment is shown by product group.


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
Materials Group(1):
U.S.	$	1,892.1	$	1,736.4	$	1,504.5
Europe	2,396.2		2,261.1		1,952.8
Asia	1,390.3		1,471.1		1,245.3
Latin America	470.1		408.6		350.9
Other international	346.4		329.3		287.1
Total Materials Group	6,495.1		6,206.5		5,340.6
Solutions Group:
Apparel	1,851.2		1,839.1		1,432.3
Identification Solutions and Vestcom	693.0		362.7		198.6
Total Solutions Group	2,544.2		2,201.8		1,630.9
Net sales to unaffiliated customers	$	9,039.3	$	8,408.3	$	6,971.5


(1)			Previously reported segment results have been recast to reflect our new operating structure.

Additional financial information by reportable segment and Corporate is shown below.


(In millions)	2022		2021		2020
Intersegment sales
Materials Group(1)	$	137.1	$	105.8	$	81.9
Solutions Group	37.4		37.3		27.5

Intersegment sales	$	174.5	$	143.1	$	109.4
Income before taxes
Materials Group(1)	$	859.3	$	883.3	$	747.0
Solutions Group	302.3		257.2		144.7

Corporate expense	(87.6)		(81.8)		(82.5)
Interest expense	(84.1)		(70.2)		(70.0)
Other non-operating expense (income), net	9.4		4.1		(1.9)
Income before taxes	$	999.3	$	992.6	$	737.3
Capital expenditures(2)(3)
Materials Group(1)	$	153.5	$	170.3	$	104.6
Solutions Group	144.0		96.3		101.6

Capital expenditures	$	297.5	$	266.6	$	206.2
Depreciation and amortization expense(2)
Materials Group(1)	$	135.8	$	141.9	$	133.7
Solutions Group	154.9		102.2		71.6

Depreciation and amortization expense	$	290.7	$	244.1	$	205.3
Other expense (income), net by reportable segment
Materials Group(1)	$	(13.4)	$	(25.7)	$	30.6
Solutions Group	7.8		36.6		22.7

Corporate	5.0		(5.3)		.3
Other expense (income), net	$	(.6)	$	5.6	$	53.6


(1)			Previously reported segment results have been recast to reflect our new operating structure.
(2)			Corporate capital expenditures and depreciation and amortization expense are allocated to the reportable segments based on their percentage of consolidated net sales.
(3)			Capital expenditures for property, plant and equipment included accruals.

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


(In millions)	2022		2021		2020
Other expense (income), net by type
Restructuring charges:
Severance and related costs	$	7.6	$	10.5	$	49.1
Asset impairment charges and lease cancellation costs	.1		3.1		6.2
Other items:
Transaction and related costs	.3		20.9		4.2
Outcomes of legal proceedings, net(1)	6.3		(.4)		—
Gain on venture investments, net	(13.5)		(23.0)		(5.4)
(Gain) loss on sales of assets, net	(1.4)		.2		(.5)
Gain on sale of product line	—		(5.7)		—
Other expense (income), net	$	(.6)	$	5.6	$	53.6


(1)			Amount for 2021 included an indirect tax credit based on a Brazilian Federal Supreme Court ruling 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 regarding the patent infringement lawsuit.

Schedule of Revenue from External Customers by Products

Revenue from our Materials Group reportable segment by product group is shown below.


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
Materials Group:
Labels, graphics and reflectives	$	5,725.7	$	5,430.4	$	4,715.1
Tapes and adhesives	696.3		703.4		565.9
Other	73.1		72.7		59.6
Total Materials Group	$	6,495.1	$	6,206.5	$	5,340.6

Disaggregation of Revenue

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


(In millions)	2022		2021		2020
Net sales to unaffiliated customers
U.S.	$	2,565.9	$	2,065.2	$	1,683.6
Europe	2,683.6		2,541.4		2,164.7
Asia	2,817.2		2,914.5		2,378.5
Latin America	605.7		537.6		440.3
Other international	366.9		349.6		304.4
Net sales to unaffiliated customers	$	9,039.3	$	8,408.3	$	6,971.5

Schedule of Property, Plant and Equipment, Net by Geographical Area

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


(In millions)	2022		2021		2020
Property, plant and equipment, net
U.S.	$	589.0	$	524.0	$	403.1
International	951.2		953.7		940.6
Property, plant and equipment, net	$	1,540.2	$	1,477.7	$	1,343.7

DEBT - Debt issued and Capital Lease Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Debt Disclosure [Abstract]
Interest costs	$ 89.8	$ 75.0	$ 73.9
Interest costs capitalized	5.7	4.8	$ 3.9
Fair value of debt	$ 2,850.0	$ 3,250.0

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Stock issued under stock-based compensation plans (in shares)	223,676	257,189	389,102
Stock issued under 401(k) Plan (in shares)	153,803	123,015	188,229
Dividends per common share (in dollars per share)	$ 2.93	$ 2.66	$ 2.36
Treasury stock
Repurchase of shares for treasury (in shares)	2,173,416	925,425	792,997

TAXES BASED ON INCOME - Increase (Decrease) in Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Tax provision computed at the U.S. federal statutory rate	$ 209.9	$ 208.5	$ 154.8
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	11.8	4.5	6.9
Foreign earnings taxed at different rates	55.3	75.4	51.4
GILTI high-tax exclusion election, net	(11.9)	(22.8)	(12.5)
Valuation allowance	(5.0)	(4.8)	(3.3)
U.S. federal research and development tax credits	(6.5)	(6.2)	(6.2)
Tax contingencies and audit settlements	(4.3)	3.9	(5.5)
Other items, net	(7.1)	(9.9)	(7.9)
Provision for income taxes	$ 242.2	$ 248.6	$ 177.7

SEGMENT AND DISAGGREGATED REVENUE INFORMATION - Net Sales to Unaffiliated Customers (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Net sales to unaffiliated customers
Net sales to unaffiliated customers	$ 9,039.3	$ 8,408.3	$ 6,971.5
Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	6,495.1	6,206.5	5,340.6
Solutions Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,544.2	2,201.8	1,630.9
Solutions Group \| Apparel
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,851.2	1,839.1	1,432.3
Solutions Group \| Identification Solutions and Vestcom
Net sales to unaffiliated customers
Net sales to unaffiliated customers	693.0	362.7	198.6
U.S.
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,565.9	2,065.2	1,683.6
U.S. \| Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,892.1	1,736.4	1,504.5
Europe
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,683.6	2,541.4	2,164.7
Europe \| Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,396.2	2,261.1	1,952.8
Asia
Net sales to unaffiliated customers
Net sales to unaffiliated customers	2,817.2	2,914.5	2,378.5
Asia \| Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	1,390.3	1,471.1	1,245.3
Latin America
Net sales to unaffiliated customers
Net sales to unaffiliated customers	605.7	537.6	440.3
Latin America \| Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	470.1	408.6	350.9
Other international
Net sales to unaffiliated customers
Net sales to unaffiliated customers	366.9	349.6	304.4
Other international \| Materials Group
Net sales to unaffiliated customers
Net sales to unaffiliated customers	346.4	329.3	287.1
China Including HongKong
Net sales to unaffiliated customers
Net sales to unaffiliated customers	$ 1,500.0	$ 1,680.0	$ 1,310.0
Net sales \| Revenue from rights concentration risk \| Ten Customer
Net sales to unaffiliated customers
Concentration risk percentage	16.00%	16.00%	17.00%

COMMITMENTS AND LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Assets
Operating lease, assets	$ 161.7	$ 183.0
Property, plant, and equipment and finance lease right-of-use asset, net	27.5	28.9
Total leased assets	$ 189.2	$ 211.9
Operating lease, assets (balance sheet location)	Other assets	Other assets
Finance lease, assets (balance sheet location)	Property, plant and equipment, net	Property, plant and equipment, net
Liabilities
Operating lease, current liabilities	$ 42.4	$ 47.3
Finance lease, current liabilities	5.4	5.5
Operating lease, non-current liabilities	113.6	135.3
Finance lease, non-current liabilities	8.2	11.7
Total lease liabilities	$ 169.6	$ 199.8
Operating lease, current liabilities (balance sheet location)	Other current liabilities	Other current liabilities
Finance lease, current liabilities (balance sheet location)	Short-term borrowings and current portion of long-term debt and finance leases	Short-term borrowings and current portion of long-term debt and finance leases
Operating lease, non-current liabilities (balance sheet location)	Long-term retirement benefits and other liabilities	Long-term retirement benefits and other liabilities
Finance lease, non-current liabilities (balance sheet location)	Long-Term Debt and Lease Obligation	Long-Term Debt and Lease Obligation
Accumulated amortization, finance lease assets	$ 12.4	$ 10.4

SUPPLEMENTAL FINANCIAL INFORMATION - Software (Details) - Total software - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Capitalized software costs
Cost	$ 390.6	$ 403.9
Accumulated amortization	(282.3)	(280.6)
Software, net	108.3	123.3
Software amortization expense	$ 29.5	$ 30.1	$ 29.0

SUPPLEMENTAL FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Inventories
Raw materials	$ 457.6	$ 393.6
Work-in-progress	255.1	233.1
Finished goods	297.2	280.5
Inventories	$ 1,009.9	$ 907.2

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Net Carrying Amount of Goodwill

Changes in the net carrying amount of goodwill for 2022 and 2021 by reportable segment are shown below:


(In millions)	Materials Group		Solutions Group		Total
Goodwill as of January 2, 2021	$	664.6	$	471.8	$	1,136.4
Acquisitions(1)	6.9		774.5		781.4
Acquisition adjustment(2)	1.2		—		1.2
Translation adjustments	(27.2)		(10.3)		(37.5)
Goodwill as of January 1, 2022	645.5		1,236.0		1,881.5
Acquisitions(3)	—		16.3		16.3
Acquisition adjustment(4)	—		(.5)		(.5)
Translation adjustments	(26.8)		(8.1)		(34.9)

Goodwill as of December 31, 2022	$	618.7	$	1,243.7	$	1,862.4

(2)Measurement period adjustment related to the finalization of the purchase price allocation for the December 2020 acquisition of ACPO, Ltd.

(3)Goodwill acquired related to the 2022 Acquisitions. We expect the recognized goodwill related to the 2022 Acquisitions to be non-deductible for income tax purposes.

(4)Measurement period adjustment related to the finalization of the purchase price allocation for the August 2021 acquisition of Vestcom.

Summary of the Amounts and Useful Lives of Finite-Lived Intangible Assets

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

Schedule of Finite-Lived Intangible Assets

The table below sets forth our finite-lived intangible assets resulting from business acquisitions at December 31, 2022 and January 1, 2022, which continue to be amortized.


	2022						2021
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	852.2	$	330.1	$	522.1	$	862.5	$	277.2	$	585.3
Patented and other developed technology	261.9		104.3		157.6		247.7		84.7		163.0
Trade names and trademarks	14.4		10.3		4.1		14.8		9.7		5.1
Other intangibles	3.2		1.4		1.8		3.2		.8		2.4
Total	$	1,131.7	$	446.1	$	685.6	$	1,128.2	$	372.4	$	755.8

Estimated Amortization Expense for Finite Lived Intangible Assets

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


(In millions)	Estimated Amortization Expense
2023	$	80.9
2024	79.2
2025	78.4
2026	75.5
2027	75.2
2028 and thereafter	296.4

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Earnings Per Share [Abstract]
Net income	$ 757.1	$ 740.1	$ 555.9
Weighted average number of common shares outstanding (in shares)	81.6	82.9	83.4
Dilutive shares (additional common shares issuable under stock-based awards)	0.6	0.9	0.7
Weighted average number of common shares outstanding, assuming dilution (in shares)	82.2	83.8	84.1
Net income per common share (in dollars per share)	$ 9.28	$ 8.93	$ 6.67
Net income per common share, assuming dilution (in dollars per share)	$ 9.21	$ 8.83	$ 6.61

- Definition

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

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: 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 https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

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

+ References

+ Details

DEBT - Short-Term Borrowings (Details) - USD ($)	12 Months Ended
DEBT - Short-Term Borrowings (Details) - USD ($)	Dec. 31, 2022	Jan. 31, 2023	Jan. 01, 2022
Revolving credit facility
Short-term debt [Line Items]
Maximum borrowing capacity	$ 800,000,000
Revolving credit facility \| Subsequent Event
Short-term debt [Line Items]
Maximum borrowing capacity		$ 1,200,000,000
Short-term borrowings from Commercial paper
Short-term debt [Line Items]
U.S. Commercial paper	$ 128,000,000		$ 189,000,000
Weighted average interest rate	4.84%		0.32%
Short-term borrowings from Euro-Commercial paper
Short-term debt [Line Items]
Weighted average interest rate	2.06%		(0.47%)
Maximum borrowing capacity	$ 500,000,000
Maturities of the notes	364 days
Euro-Commercial paper	$ 213,000,000		$ 113,100,000

COMMITMENTS AND LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Supplemental Cost Information Related to Leases

Supplemental cost information related to leases is shown below.


(In millions)	2022		2021		2020
Operating lease costs	$	70.8	$	68.8	$	63.1

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is shown below.


(In millions)	Balance Sheet Location	2022		2021
Assets
Operating	Other assets	$	161.7	$	183.0
Finance(1)	Property, plant and equipment, net	27.5		28.9
Total leased assets		$	189.2	$	211.9
Liabilities
Current:
Operating	Other current liabilities	$	42.4	$	47.3
Finance	Short-term borrowings and current portion of long-term debt and finance leases	5.4		5.5
Non-current:
Operating	Long-term retirement benefits and other liabilities	113.6		135.3
Finance	Long-term debt and finance leases	8.2		11.7
Total lease liabilities		$	169.6	$	199.8


(1)			Finance lease assets are net of accumulated amortization of $12.4 million and $10.4 million as of December 31, 2022 and January 1, 2022, respectively.

Supplemental cash flow information related to leases

Supplemental cash flow information related to leases is shown below.


(In millions)	2022		2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	60.5	$	54.2	$	54.9
Operating lease assets obtained in exchange for operating lease liabilities	37.2		58.0		48.4

Schedule of weighted average remaining lease term and discount rate information

Weighted average remaining lease term and discount rate information related to leases as of December 31, 2022 and January 1, 2022 is shown below.


	2022		2021
Weighted average remaining lease term (in years):
Operating	5.9		6.5
Finance	2.7		3.3
Weighted average discount rate (percentage):
Operating	3.2	%	3.0	%
Finance	2.8		2.9

Operating Lease Liabilities by Maturity Date

Operating and finance lease liabilities by maturity date from December 31, 2022 are shown below.


(In millions)	Operating Leases		Finance Leases
2023	$	45.8	$	5.8
2024	35.4		5.4
2025	27.8		2.1
2026	18.8		.7
2027	10.8		.2
2028 and thereafter	35.5		—
Total lease payments	174.1		14.2
Less: imputed interest	(18.1)		(.6)
Present value of lease liabilities	$	156.0	$	13.6

Finance Lease Liabilities by Maturity Date

Operating and finance lease liabilities by maturity date from December 31, 2022 are shown below.


(In millions)	Operating Leases		Finance Leases
2023	$	45.8	$	5.8
2024	35.4		5.4
2025	27.8		2.1
2026	18.8		.7
2027	10.8		.2
2028 and thereafter	35.5		—
Total lease payments	174.1		14.2
Less: imputed interest	(18.1)		(.6)
Present value of lease liabilities	$	156.0	$	13.6

PENSION AND OTHER POSTRETIREMENT BENEFITS - Future Benefit Payments (Details) $ in Millions	Dec. 31, 2022 USD ($)
U.S.
Future Benefit Payments [Line Items]
2023	$ 6.3
2024	6.1
2025	5.9
2026	5.9
2027	5.3
2028-2032	20.2
International
Future Benefit Payments [Line Items]
2023	22.2
2024	22.6
2025	23.9
2026	26.4
2027	27.0
2028-2032	$ 142.7

NET INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

Net income per common share was computed as follows:


(In millions, except per share amounts)	2022		2021		2020
(A) Net income	$	757.1	$	740.1	$	555.9
(B) Weighted average number of common shares outstanding	81.6		82.9		83.4
Dilutive shares (additional common shares issuable under stock-based awards)	.6		.9		.7
(C) Weighted average number of common shares outstanding, assuming dilution	82.2		83.8		84.1
Net income per common share (A) ÷ (B)	$	9.28	$	8.93	$	6.67
Net income per common share, assuming dilution (A) ÷ (C)	$	9.21	$	8.83	$	6.61

Certain stock-based compensation awards were excluded from the computation of net income per common share, assuming dilution, because they would not have had a dilutive effect. Stock-based compensation awards excluded from the computation were not significant in 2022, 2021 or 2020.

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Los Angeles, California

PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Components of net periodic benefit cost (credit)
Recognized loss on settlements	$ 0.0	$ 1.6	$ 0.5
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other non-operating expense (income), net
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other non-operating expense (income), net
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other non-operating expense (income), net
U.S.
Components of net periodic benefit cost (credit)
Service cost	$ 0.0	0.0
Interest cost	1.2	1.0
Actuarial (gain) loss	(9.1)	(1.7)
U.S. \| Continuing operations
Components of net periodic benefit cost (credit)
Service cost	0.0	0.0	0.0
Interest cost	1.2	1.0	1.8
Actuarial (gain) loss	(3.5)	(1.1)	3.7
Expected return on plan assets	0.0	0.0	0.0
Amortization of actuarial loss	0.8	0.8	0.6
Amortization of prior service (credit) cost	0.0	0.0	0.0
Recognized loss on settlements	0.1	1.1	0.2
Net periodic benefit cost (credit)	(1.4)	1.8	6.3
International
Components of net periodic benefit cost (credit)
Service cost	16.5	19.0
Interest cost	10.8	8.9
Actuarial (gain) loss	(244.9)	(15.6)
International \| Continuing operations
Components of net periodic benefit cost (credit)
Service cost	16.5	19.0	17.8
Interest cost	10.8	8.9	11.0
Actuarial (gain) loss	0.0	0.0	0.0
Expected return on plan assets	(21.9)	(19.8)	(18.5)
Amortization of actuarial loss	2.5	6.1	5.2
Amortization of prior service (credit) cost	(0.4)	(0.4)	(0.4)
Recognized loss on settlements	(0.1)	0.5	0.3
Net periodic benefit cost (credit)	$ 7.4	$ 14.3	$ 15.4

CONTINGENCIES - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($) site	Jan. 01, 2022 USD ($)	Jul. 03, 2021 USD ($)
Loss Contingencies [Line Items]
Environmental site contingency number of sites \| site	11
Short term environmental liabilities	$ 9.0	$ 2.0
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Jury Verdict
Loss Contingencies [Line Items]
Contingent liability	$ 26.6
Infringement of patent
Loss Contingencies [Line Items]
Contingent liability			$ 26.6
Infringement of patent \| Minimum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	5.0
Infringement of patent \| Maximum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 71.0

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Schedule Plan Assets at Fair Value

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)
2022
Cash	$	6.4	$	6.4	$	—	$	—
Insurance contracts	37.1		—		—		37.1
Pooled funds – real estate investment trusts	8.3		—		—		8.3
Pooled funds – fixed income securities(1)	335.7
Pooled funds – equity securities(1)	151.9
Pooled funds – other investments(1)	45.9
Total international plan assets at fair value	$	585.3
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

Schedule of Reconciliation of Level 3 Assets

The following table presents a reconciliation of Level 3 international plan asset activity during the year ended December 31, 2022:


	Level 3 Assets
(In millions)	Insurance Contracts		Pooled Funds – Real Estate Investment Trusts		Total
Balance at January 1, 2022	$	37.9	$	11.0	$	48.9
Net realized and unrealized gain (loss)	.7		(1.6)		(.9)
Purchases	3.2		—		3.2
Settlements	(3.2)		—		(3.2)

Impact of changes in foreign currency exchange rates	(1.5)		(1.1)		(2.6)
Balance at December 31, 2022	$	37.1	$	8.3	$	45.4

Schedule of Reconciliation of Projected Benefit Obligations

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
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Change in projected benefit obligations
Projected benefit obligations at beginning of year	$	66.8	$	882.4	$	77.3	$	953.9
Service cost	—		16.5		—		19.0
Interest cost	1.2		10.8		1.0		8.9
Participant contribution	—		4.6		—		4.7
Amendments	—		—		—		(.9)
Actuarial (gain) loss	(9.1)		(244.9)		(1.7)		(15.6)
Benefits paid	(7.1)		(21.3)		(9.8)		(23.3)
Settlements	—		(1.0)		—		(3.7)
Foreign currency translation	—		(60.2)		—		(60.6)
Projected benefit obligations at end of year	$	51.8	$	586.9	$	66.8	$	882.4
Accumulated benefit obligations at end of year	$	51.8	$	540.2	$	66.8	$	806.4

Schedule of Reconciliation of Plan Assets


	Pension Benefits
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Change in plan assets
Plan assets at beginning of year	$	—	$	874.6	$	—	$	897.2
Actual return on plan assets	—		(226.5)		—		37.3
Employer contributions	7.1		15.2		9.8		20.7
Participant contributions	—		4.6		—		4.7
Benefits paid	(7.1)		(21.3)		(9.8)		(23.3)
Settlements	—		(1.0)		—		(3.7)
Foreign currency translation	—		(60.3)		—		(58.3)
Plan assets at end of year	$	—	$	585.3	$	—	$	874.6

Schedule of Funded Status of Plans


	Pension Benefits
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Funded status of the plans
Other assets	$	—	$	70.0	$	—	$	113.6
Other accrued liabilities	(6.2)		(.4)		(7.0)		(1.0)
Long-term retirement benefits and other liabilities(1)	(45.6)		(71.2)		(59.8)		(120.4)
Plan assets less than benefit obligations	$	(51.8)	$	(1.6)	$	(66.8)	$	(7.8)

(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
	2022				2021
	U.S.		Int’l		U.S.		Int’l
Weighted average assumptions used to determine year-end benefit obligations
Discount rate	5.06	%	4.36	%	2.49	%	1.57	%
Compensation rate increase	—		2.75		—		2.33

Schedule of Pre-Tax Amounts, Recognized In "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
	2022				2021
(In millions)	U.S.		Int’l		U.S.		Int’l
Net actuarial loss	$	9.1	$	38.2	$	15.6	$	41.5
Prior service (credit) cost	—		(3.5)		—		(4.0)
Net amount recognized in accumulated other comprehensive loss	$	9.1	$	34.7	$	15.6	$	37.5

Schedule of Pre-Tax Amounts, Recognized In "Other comprehensive loss (income)"

The following table shows the pre-tax amounts recognized in “Other comprehensive loss (income)”:


	Pension Benefits
	2022				2021				2020
(In millions)	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Net actuarial (gain) loss	$	(5.6)	$	(.8)	$	(.7)	$	(34.8)	$	3.5	$	(13.5)
Prior service credit	—		—		—		(.9)		—		.4
Amortization of unrecognized:
Net actuarial gain	(.8)		(2.5)		(.8)		(6.1)		(.6)		(5.2)
Prior service credit (cost)	—		.4		—		.4		—		.4
Settlements	(.1)		.1		(1.1)		(.5)		(.2)		(.3)
Net amount recognized in other comprehensive loss (income)	$	(6.5)	$	(2.8)	$	(2.6)	$	(41.9)	$	2.7	$	(18.2)

Schedule of Components of Net Periodic Benefit Cost (credit)

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


	Pension Benefits
	2022				2021				2020
(In millions)	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Service cost	$	—	$	16.5	$	—	$	19.0	$	—	$	17.8
Interest cost	1.2		10.8		1.0		8.9		1.8		11.0
Actuarial (gain) loss	(3.5)		—		(1.1)		—		3.7		—
Expected return on plan assets	—		(21.9)		—		(19.8)		—		(18.5)
Amortization of actuarial loss	.8		2.5		.8		6.1		.6		5.2
Amortization of prior service (credit) cost	—		(.4)		—		(.4)		—		(.4)
Recognized loss (gain) on settlements(1)	.1		(.1)		1.1		.5		.2		.3
Net periodic benefit cost (credit)	$	(1.4)	$	7.4	$	1.8	$	14.3	$	6.3	$	15.4

Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Cost

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


	Pension Benefits
	2022				2021				2020
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Discount rate	2.19	%	1.57	%	2.20	%	1.26	%	2.89	%	1.66	%
Expected return on assets	—		3.00		—		2.61		—		2.79
Compensation rate increase	—		2.33		—		2.15		—		2.21

Schedule of Defined Benefit Plan Contributions

The following table sets forth our expected contributions in 2023:


(In millions)
U.S. pension plans	$	6.3
International pension plans	12.8

Schedule of Anticipated 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
2023	$	6.3	$	22.2
2024	6.1		22.6
2025	5.9		23.9
2026	5.9		26.4
2027	5.3		27.0
2028-2032	20.2		142.7

PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amount Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
U.S.
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$ 9.1	$ 15.6
Prior service (credit) cost	0.0	0.0
Net amount recognized in accumulated other comprehensive loss	9.1	15.6
International
Pretax amounts recognized in accumulated other comprehensive loss
Net actuarial loss	38.2	41.5
Prior service (credit) cost	(3.5)	(4.0)
Net amount recognized in accumulated other comprehensive loss	$ 34.7	$ 37.5

GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS - Estimated Amortization Expense for Finite-Lived Intangible Assets (Details) $ in Millions	Dec. 31, 2022 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023	$ 80.9
2024	79.2
2025	78.4
2026	75.5
2027	75.2
2028 and thereafter	$ 296.4

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

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 2022, we repurchased approximately 2.2 million shares of our common stock at an aggregate cost of $379.5 million. In 2021, we repurchased approximately 0.9 million shares of our common stock at an aggregate cost of $180.9 million.

In April 2022 our Board authorized the repurchase of shares of our common stock with a fair market value of up to $750 million, excluding any fees, commissions or other expenses related to such purchases and in addition to the amount 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 $730 million as of December 31, 2022 remained authorized for repurchase under this Board authorization.

Treasury Shares Reissuance

We fund a portion of our employee-related costs using shares of our common stock held in treasury. We reduce capital in excess of par value based on the grant date fair value of vesting awards and record net gains or losses associated with using treasury shares to retained earnings.

Accumulated Other Comprehensive Loss

The changes in “Accumulated other comprehensive loss” (net of tax) for 2022 and 2021 were as follows:


(In millions)	Foreign Currency Translation		Pension and Other Postretirement Benefits		Cash Flow Hedges		Total
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)
Other comprehensive income (loss) before reclassifications, net of tax	(96.6)		6.3		4.9		(85.4)
Reclassifications to net income, net of tax	—		2.8		1.5		4.3
Net current-period other comprehensive income (loss), net of tax	(96.6)		9.1		6.4		(81.1)
Balance as of December 31, 2022	$	(314.0)	$	(51.3)	$	1.3	$	(364.0)

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


(In millions)	2022		2021		2020
Foreign currency translation:
Translation (loss) gain	$	(7.0)	$	(23.2)	$	27.5
Pension and other postretirement benefits:
Net gain recognized from actuarial gain/loss and prior service cost/credit	.5		8.5		3.1
Reclassifications to net income	1.1		1.6		.9
Cash flow hedges:
Gains (losses) recognized on cash flow hedges	1.6		1.7		(2.3)
Reclassifications to net income	.4		(.5)		—
Income tax (benefit) expense allocated to components of other comprehensive income (loss)	$	(3.4)	$	(11.9)	$	29.2

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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+ Details

ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions	Aug. 31, 2021	Mar. 31, 2021	Dec. 31, 2022	Jan. 31, 2022
2022 Acquisitions
Acquisitions [Line Items]
Purchase consideration			$ 35
Business combination contingent consideration maximum amount				$ 30
Vestcom
Acquisitions [Line Items]
Purchase consideration	$ 1,470
ZippyYum And Jdc
Acquisitions [Line Items]
Purchase consideration		$ 43
Business combination contingent consideration maximum amount		13
Contingent consideration liabilities		$ 12

SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION - Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,924.4	$ 1,484.9	$ 1,204.0
Other comprehensive income (loss) before reclassifications, net of tax	(85.4)	64.0
Reclassifications to net income, net of tax	4.3	2.7
Net current-period other comprehensive income (loss), net of tax	(81.1)	66.7	(1.5)
Ending balance	2,032.2	1,924.4	1,484.9
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(282.9)	(349.6)	(348.1)
Net current-period other comprehensive income (loss), net of tax	(81.1)	66.7	(1.5)
Ending balance	(364.0)	(282.9)	(349.6)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(217.4)	(248.1)
Other comprehensive income (loss) before reclassifications, net of tax	(96.6)	30.7
Reclassifications to net income, net of tax	0.0	0.0
Net current-period other comprehensive income (loss), net of tax	(96.6)	30.7
Ending balance	(314.0)	(217.4)	(248.1)
Pension and Other Postretirement Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(60.4)	(92.7)
Other comprehensive income (loss) before reclassifications, net of tax	6.3	27.9
Reclassifications to net income, net of tax	2.8	4.4
Net current-period other comprehensive income (loss), net of tax	9.1	32.3
Ending balance	(51.3)	(60.4)	(92.7)
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5.1)	(8.8)
Other comprehensive income (loss) before reclassifications, net of tax	4.9	5.4
Reclassifications to net income, net of tax	1.5	(1.7)
Net current-period other comprehensive income (loss), net of tax	6.4	3.7
Ending balance	$ 1.3	$ (5.1)	$ (8.8)

- Definition

+ References

+ Details

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

Schedule of assets acquired and liabilities assumed in business acquisition

The table below summarizes the fair value of assets acquired and liabilities assumed in the Vestcom acquisition based on our final allocation of the purchase consideration.


(In millions)
Cash and cash equivalents	$	24.3
Trade accounts receivable	98.4
Other current assets	28.5
Property, plant and equipment	56.2
Goodwill	756.1
Other intangibles resulting from business acquisition	727.0
Other assets	22.8
Total assets	1,713.3
Current liabilities	47.5
Other liabilities	17.2
Deferred and non-current income tax liabilities	183.5
Total liabilities	248.2
Net assets acquired	$	1,465.1

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Statement of Financial Position [Abstract]
Trade accounts receivable, allowances	$ 34.4	$ 33.0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized shares (in shares)	400,000,000	400,000,000
Common stock, issued shares (in shares)	124,126,624	124,126,624
Common stock, outstanding shares (in shares)	80,810,016	82,605,953
Treasury stock, shares (in shares)	43,316,608	41,520,671

PENSION AND OTHER POSTRETIREMENT BENEFITS - Weighted-Average Assumptions for Determining Net Periodic Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
U.S.
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.19%	2.20%	2.89%
Expected return on assets	0.00%	0.00%	0.00%
Compensation rate increase	0.00%	0.00%	0.00%
Company's contributions to the defined benefit plan in the next fiscal year	$ 6.3
International
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.57%	1.26%	1.66%
Expected return on assets	3.00%	2.61%	2.79%
Compensation rate increase	2.33%	2.15%	2.21%
Company's contributions to the defined benefit plan in the next fiscal year	$ 12.8

DEBT - Short-Term Credit Facilities (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2023	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 800.0
Amount outstanding		0.0	$ 0.0
Commitment fees		0.9	0.9	$ 0.8
Revolving credit facility \| Subsequent Event
Line of Credit Facility [Line Items]
Commitment for increased borrowing	$ 400.0
Maximum borrowing capacity	$ 1,200.0
Uncommitted lines of credit
Line of Credit Facility [Line Items]
Uncommitted lines of credit		341.0
Short term borrowings outstanding		$ 2.4	$ 11.2
Weighted average interest rate		0.64%	4.97%

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories at year-end were as follows:


(In millions)	2022		2021
Raw materials	$	457.6	$	393.6
Work-in-progress	255.1		233.1
Finished goods	297.2		280.5
Inventories	$	1,009.9	$	907.2

Schedule of Property, Plant and Equipment

Major classes of property, plant and equipment, stated at cost, at year-end were as follows:


(In millions)	2022		2021
Land	$	29.3	$	28.6
Buildings and improvements	781.0		777.6
Machinery and equipment	2,667.8		2,582.2
Construction-in-progress	269.6		237.8
Property, plant and equipment	3,747.7		3,626.2
Accumulated depreciation	(2,207.5)		(2,148.5)
Property, plant and equipment, net	$	1,540.2	$	1,477.7

Schedule of Capitalized Software Costs

Capitalized software costs at year-end were as follows:


(In millions)	2022		2021
Cost	$	390.6	$	403.9
Accumulated amortization	(282.3)		(280.6)
Software, net	$	108.3	$	123.3

Software amortization expense was $29.5 million in 2022, $30.1 million in 2021 and $29.0 million in 2020.

Schedule of Allowance for Credit Losses

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


(In millions)	2022		2021
Balance at beginning of year	$	33.0	$	44.6
Provision for (reversal of) credit losses	6.9		(4.7)
Amounts written off	(4.3)		(7.7)
Other, including foreign currency translation	(1.2)		.8
Balance at end of year	$	34.4	$	33.0

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)	2022		2021		2020
Research and development expense	$	136.1	$	136.6	$	112.8

Schedule of Cash Paid for Interest and Income taxes

Cash paid for interest and income taxes was as follows:


(In millions)	2022		2021		2020
Interest	$	80.9	$	62.8	$	69.6
Income taxes, net of refunds	204.8		253.4		203.4

Schedule of Balance Sheet Locations of Deferred Revenue

The following table shows the amounts and balance sheet locations of deferred revenue as of December 31, 2022 and January 1, 2022:


(In millions)	December 31, 2022		January 1, 2022
Other current liabilities	$	22.2	$	24.7
Long-term retirement benefits and other liabilities	2.1		1.9
Total deferred revenue	$	24.3	$	26.6

DEBT - Maturities of Long-Term Debt (Details) $ in Millions	Dec. 31, 2022 USD ($)
Maturities of Long-Term Debt and Capital Lease Obligations [Abstract]
2023	$ 250.0
2024	300.0
2025	562.6
2026	0.0
2027	0.0
2028 and thereafter	$ 1,650.0