| DEBT
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Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Other, net: | ||||||||||||||||
Foreign exchange | $ | (1.4 | ) | $ | (2.4 | ) | $ | (4.5 | ) | $ | (6.0 | ) | ||||
Foreign exchange devaluations | — | — | — | (0.7 | ) | |||||||||||
Cash surrender value of life insurance policies | 0.6 | (0.6 | ) | 1.2 | — | |||||||||||
Other | — | (0.5 | ) | (0.3 | ) | (0.8 | ) | |||||||||
Total other, net | $ | (0.8 | ) | $ | (3.5 | ) | $ | (3.6 | ) | $ | (7.5 | ) |
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Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Net sales | $ | 1.3 | $ | 148.4 | $ | 1.8 | $ | 397.8 | ||||||||
Operating income | $ | — | $ | 5.2 | $ | — | $ | 17.1 | ||||||||
(Loss) income from discontinued operations before income taxes | $ | (0.5 | ) | $ | 46.5 | $ | (1.2 | ) | $ | 57.7 | ||||||
Income tax (benefit) expense from discontinued operations | $ | (0.2 | ) | $ | 4.6 | $ | (0.5 | ) | $ | 23.2 | ||||||
Net (loss) income from discontinued operations | $ | (0.3 | ) | $ | 41.9 | $ | (0.7 | ) | $ | 34.5 |
(In millions) | July 1, 2016 | January 1, 2016 | |||||
Assets of discontinued operations: | |||||||
Accounts receivable | $ | 0.9 | $ | 2.6 | |||
Inventories | 0.1 | 1.2 | |||||
Total assets of discontinued operations | $ | 1.0 | $ | 3.8 | |||
Liabilities of discontinued operations: | |||||||
Accounts payable | $ | 1.2 | $ | 1.3 | |||
Accrued expenses | 4.1 | 4.0 | |||||
Other liabilities | 0.6 | 1.7 | |||||
Total liabilities of discontinued operations | $ | 5.9 | $ | 7.0 |
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(In millions) | |||||
Cash | $ | 11.7 | |||
Current assets, net | 565.6 | ||||
Property and equipment, net | 30.8 | ||||
Goodwill | 189.4 | ||||
Intangible assets | 280.8 | ||||
Non-current assets | 5.4 | ||||
Current liabilities | (234.1 | ) | |||
Non-current liabilities | (8.5 | ) | |||
Total purchase price | $ | 841.1 |
(In millions) | Average useful life (in years) | Fair value | |||
Customer relationships | 14-18 | $ | 278.4 | ||
Non-compete agreements | 1 | 2.4 | |||
Total intangible assets | $ | 280.8 |
Three Months Ended | Six Months Ended | |||||||
(In millions, except per share amounts) | July 3, 2015 | July 3, 2015 | ||||||
Net sales | $ | 2,007.2 | $ | 3,874.9 | ||||
Net income from continuing operations | $ | 34.5 | $ | 64.1 | ||||
Income per share from continuing operations: | ||||||||
Basic | $ | 1.04 | $ | 1.93 | ||||
Diluted | $ | 1.03 | $ | 1.92 |
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Restructuring Activity | |||||||||||||||||||||||||||||||
Q2 2016 Plan | Q4 2015 Plan | Q2 2015 Plan | Q4 2012 Plan | Total | |||||||||||||||||||||||||||
Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | ||||||||||||||||||||||||
Balance at January 1, 2016 | $ | — | $ | — | $ | 3.0 | $ | 0.2 | $ | 1.0 | $ | 0.4 | $ | 4.0 | $ | 0.6 | |||||||||||||||
Charges | 4.3 | 1.5 | (0.2 | ) | — | — | — | 4.1 | 1.5 | ||||||||||||||||||||||
Payments and other | (0.2 | ) | — | (1.4 | ) | (0.2 | ) | (0.5 | ) | (0.1 | ) | (2.1 | ) | (0.3 | ) | ||||||||||||||||
Balance at July 1, 2016 | $ | 4.1 | $ | 1.5 | $ | 1.4 | $ | — | $ | 0.5 | $ | 0.3 | $ | 6.0 | $ | 1.8 |
(a) | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated. |
(b) | Facility exit and other costs primarily consist of lease termination costs. |
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(In millions) | July 1, 2016 | January 1, 2016 | ||||||
Long-term debt: | ||||||||
5.50% Senior notes due 2023 | $ | 346.0 | $ | 345.8 | ||||
5.125% Senior notes due 2021 | 395.3 | 394.9 | ||||||
5.625% Senior notes due 2019 | 347.2 | 346.8 | ||||||
Canadian term loan | 162.1 | 172.9 | ||||||
Revolving lines of credit | 270.0 | 390.1 | ||||||
Other | 2.2 | 2.6 | ||||||
Unamortized debt issuance costs | (8.4 | ) | (10.2 | ) | ||||
Total long-term debt | $ | 1,514.4 | $ | 1,642.9 |
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Three Months Ended | ||||||||||||||||||||||||
Domestic | Foreign | Total | ||||||||||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||||||||
Service cost | $ | 1.2 | $ | 1.7 | $ | 1.5 | $ | 1.6 | $ | 2.7 | $ | 3.3 | ||||||||||||
Interest cost | 2.8 | 4.1 | 2.3 | 2.3 | 5.1 | 6.4 | ||||||||||||||||||
Expected return on plan assets | (3.5 | ) | (5.3 | ) | (2.6 | ) | (2.7 | ) | (6.1 | ) | (8.0 | ) | ||||||||||||
Net amortization (a) | 0.5 | 0.5 | 0.7 | 0.8 | 1.2 | 1.3 | ||||||||||||||||||
Settlement charge | — | — | 9.6 | — | 9.6 | — | ||||||||||||||||||
Net periodic pension cost | $ | 1.0 | $ | 1.0 | $ | 11.5 | $ | 2.0 | $ | 12.5 | $ | 3.0 |
Six Months Ended | ||||||||||||||||||||||||
Domestic | Foreign | Total | ||||||||||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||||||||
Service cost | $ | 2.4 | $ | 3.0 | $ | 3.0 | $ | 3.3 | $ | 5.4 | $ | 6.3 | ||||||||||||
Interest cost | 5.7 | 6.7 | 4.4 | 4.6 | 10.1 | 11.3 | ||||||||||||||||||
Expected return on plan assets | (7.1 | ) | (8.8 | ) | (5.1 | ) | (5.3 | ) | (12.2 | ) | (14.1 | ) | ||||||||||||
Net amortization (a) | 1.0 | 0.9 | 1.3 | 1.5 | 2.3 | 2.4 | ||||||||||||||||||
Settlement charge | — | — | 9.6 | — | 9.6 | — | ||||||||||||||||||
Net periodic pension cost | $ | 2.0 | $ | 1.8 | $ | 13.2 | $ | 4.1 | $ | 15.2 | $ | 5.9 |
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(In millions) | ||||||||||||||||||||
Second Quarter of 2016 | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,044.7 | $ | 555.1 | $ | 355.9 | $ | — | $ | 1,955.7 | ||||||||||
Operating income | 64.9 | 23.9 | 12.0 | (44.1 | ) | 56.7 |
Second Quarter of 2015 (As revised) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,011.7 | $ | 449.5 | $ | 19.2 | $ | — | $ | 1,480.4 | ||||||||||
Operating income | 66.6 | 33.6 | 2.4 | (38.1 | ) | 64.5 |
Six Months of 2016 | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,993.8 | $ | 1,061.1 | $ | 717.0 | $ | — | $ | 3,771.9 | ||||||||||
Operating income | 123.7 | 46.4 | 26.3 | (79.4 | ) | 117.0 |
Six Months of 2015 (As revised) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,939.7 | $ | 890.3 | $ | 35.5 | $ | — | $ | 2,865.5 | ||||||||||
Operating income | 122.3 | 69.4 | 4.4 | (72.3 | ) | 123.8 |
(In millions) | NSS | EES | UPS | Total | ||||||||||||
Balance as of January 1, 2016 | $ | 393.3 | $ | 211.9 | $ | 151.3 | $ | 756.5 | ||||||||
Acquisition related (a) | (0.5 | ) | (1.4 | ) | 1.0 | (0.9 | ) | |||||||||
Reassignment of goodwill | 11.2 | (31.8 | ) | 20.6 | — | |||||||||||
Foreign currency translation | 3.2 | 0.6 | 7.6 | 11.4 | ||||||||||||
Balance as of July 1, 2016 | $ | 407.2 | $ | 179.3 | $ | 180.5 | $ | 767.0 |
(a) | In the first and second quarters of 2016, we recorded an immaterial decrease in goodwill primarily related to a preliminary valuation of Power Solutions value of fixed assets. |
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(In millions) | July 1, 2016 | January 1, 2016 | ||||||
Assets: | ||||||||
Current assets | $ | 2,719.9 | $ | 2,727.2 | ||||
Property, equipment and capital leases, net | 149.3 | 141.1 | ||||||
Goodwill | 767.0 | 756.5 | ||||||
Intangible assets, net | 437.0 | 453.8 | ||||||
Other assets | 72.9 | 72.1 | ||||||
$ | 4,146.1 | $ | 4,150.7 | |||||
Liabilities and Stockholder’s Equity: | ||||||||
Current liabilities | $ | 1,219.9 | $ | 1,156.8 | ||||
Long-term debt | 1,526.4 | 1,655.6 | ||||||
Other liabilities | 153.5 | 161.1 | ||||||
Stockholder’s equity | 1,246.3 | 1,177.2 | ||||||
$ | 4,146.1 | $ | 4,150.7 |
Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Net sales | $ | 1,955.7 | $ | 1,480.4 | $ | 3,771.9 | $ | 2,865.5 | ||||||||
Operating income | $ | 58.2 | $ | 65.9 | $ | 120.1 | $ | 126.7 | ||||||||
Income from continuing operations before income taxes | $ | 37.4 | $ | 49.3 | $ | 76.1 | $ | 91.7 | ||||||||
Net (loss) income from discontinued operations | $ | (0.3 | ) | $ | 41.9 | $ | (0.7 | ) | $ | 34.5 | ||||||
Net income | $ | 21.2 | $ | 72.2 | $ | 44.8 | $ | 92.2 | ||||||||
Comprehensive income | $ | 23.0 | $ | 78.8 | $ | 65.9 | $ | 58.6 |
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Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Other, net: | ||||||||||||||||
Foreign exchange | $ | (1.4 | ) | $ | (2.4 | ) | $ | (4.5 | ) | $ | (6.0 | ) | ||||
Foreign exchange devaluations | — | — | — | (0.7 | ) | |||||||||||
Cash surrender value of life insurance policies | 0.6 | (0.6 | ) | 1.2 | — | |||||||||||
Other | — | (0.5 | ) | (0.3 | ) | (0.8 | ) | |||||||||
Total other, net | $ | (0.8 | ) | $ | (3.5 | ) | $ | (3.6 | ) | $ | (7.5 | ) |
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Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Other, net: | ||||||||||||||||
Foreign exchange | $ | (1.4 | ) | $ | (2.4 | ) | $ | (4.5 | ) | $ | (6.0 | ) | ||||
Foreign exchange devaluations | — | — | — | (0.7 | ) | |||||||||||
Cash surrender value of life insurance policies | 0.6 | (0.6 | ) | 1.2 | — | |||||||||||
Other | — | (0.5 | ) | (0.3 | ) | (0.8 | ) | |||||||||
Total other, net | $ | (0.8 | ) | $ | (3.5 | ) | $ | (3.6 | ) | $ | (7.5 | ) |
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Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Net sales | $ | 1.3 | $ | 148.4 | $ | 1.8 | $ | 397.8 | ||||||||
Operating income | $ | — | $ | 5.2 | $ | — | $ | 17.1 | ||||||||
(Loss) income from discontinued operations before income taxes | $ | (0.5 | ) | $ | 46.5 | $ | (1.2 | ) | $ | 57.7 | ||||||
Income tax (benefit) expense from discontinued operations | $ | (0.2 | ) | $ | 4.6 | $ | (0.5 | ) | $ | 23.2 | ||||||
Net (loss) income from discontinued operations | $ | (0.3 | ) | $ | 41.9 | $ | (0.7 | ) | $ | 34.5 |
(In millions) | July 1, 2016 | January 1, 2016 | |||||
Assets of discontinued operations: | |||||||
Accounts receivable | $ | 0.9 | $ | 2.6 | |||
Inventories | 0.1 | 1.2 | |||||
Total assets of discontinued operations | $ | 1.0 | $ | 3.8 | |||
Liabilities of discontinued operations: | |||||||
Accounts payable | $ | 1.2 | $ | 1.3 | |||
Accrued expenses | 4.1 | 4.0 | |||||
Other liabilities | 0.6 | 1.7 | |||||
Total liabilities of discontinued operations | $ | 5.9 | $ | 7.0 |
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(In millions) | |||||
Cash | $ | 11.7 | |||
Current assets, net | 565.6 | ||||
Property and equipment, net | 30.8 | ||||
Goodwill | 189.4 | ||||
Intangible assets | 280.8 | ||||
Non-current assets | 5.4 | ||||
Current liabilities | (234.1 | ) | |||
Non-current liabilities | (8.5 | ) | |||
Total purchase price | $ | 841.1 |
(In millions) | Average useful life (in years) | Fair value | |||
Customer relationships | 14-18 | $ | 278.4 | ||
Non-compete agreements | 1 | 2.4 | |||
Total intangible assets | $ | 280.8 |
Three Months Ended | Six Months Ended | |||||||
(In millions, except per share amounts) | July 3, 2015 | July 3, 2015 | ||||||
Net sales | $ | 2,007.2 | $ | 3,874.9 | ||||
Net income from continuing operations | $ | 34.5 | $ | 64.1 | ||||
Income per share from continuing operations: | ||||||||
Basic | $ | 1.04 | $ | 1.93 | ||||
Diluted | $ | 1.03 | $ | 1.92 |
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Restructuring Activity | |||||||||||||||||||||||||||||||
Q2 2016 Plan | Q4 2015 Plan | Q2 2015 Plan | Q4 2012 Plan | Total | |||||||||||||||||||||||||||
Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | ||||||||||||||||||||||||
Balance at January 1, 2016 | $ | — | $ | — | $ | 3.0 | $ | 0.2 | $ | 1.0 | $ | 0.4 | $ | 4.0 | $ | 0.6 | |||||||||||||||
Charges | 4.3 | 1.5 | (0.2 | ) | — | — | — | 4.1 | 1.5 | ||||||||||||||||||||||
Payments and other | (0.2 | ) | — | (1.4 | ) | (0.2 | ) | (0.5 | ) | (0.1 | ) | (2.1 | ) | (0.3 | ) | ||||||||||||||||
Balance at July 1, 2016 | $ | 4.1 | $ | 1.5 | $ | 1.4 | $ | — | $ | 0.5 | $ | 0.3 | $ | 6.0 | $ | 1.8 |
(a) | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated. |
(b) | Facility exit and other costs primarily consist of lease termination costs. |
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(In millions) | July 1, 2016 | January 1, 2016 | ||||||
Long-term debt: | ||||||||
5.50% Senior notes due 2023 | $ | 346.0 | $ | 345.8 | ||||
5.125% Senior notes due 2021 | 395.3 | 394.9 | ||||||
5.625% Senior notes due 2019 | 347.2 | 346.8 | ||||||
Canadian term loan | 162.1 | 172.9 | ||||||
Revolving lines of credit | 270.0 | 390.1 | ||||||
Other | 2.2 | 2.6 | ||||||
Unamortized debt issuance costs | (8.4 | ) | (10.2 | ) | ||||
Total long-term debt | $ | 1,514.4 | $ | 1,642.9 |
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Three Months Ended | ||||||||||||||||||||||||
Domestic | Foreign | Total | ||||||||||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||||||||
Service cost | $ | 1.2 | $ | 1.7 | $ | 1.5 | $ | 1.6 | $ | 2.7 | $ | 3.3 | ||||||||||||
Interest cost | 2.8 | 4.1 | 2.3 | 2.3 | 5.1 | 6.4 | ||||||||||||||||||
Expected return on plan assets | (3.5 | ) | (5.3 | ) | (2.6 | ) | (2.7 | ) | (6.1 | ) | (8.0 | ) | ||||||||||||
Net amortization (a) | 0.5 | 0.5 | 0.7 | 0.8 | 1.2 | 1.3 | ||||||||||||||||||
Settlement charge | — | — | 9.6 | — | 9.6 | — | ||||||||||||||||||
Net periodic pension cost | $ | 1.0 | $ | 1.0 | $ | 11.5 | $ | 2.0 | $ | 12.5 | $ | 3.0 |
Six Months Ended | ||||||||||||||||||||||||
Domestic | Foreign | Total | ||||||||||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||||||||
Service cost | $ | 2.4 | $ | 3.0 | $ | 3.0 | $ | 3.3 | $ | 5.4 | $ | 6.3 | ||||||||||||
Interest cost | 5.7 | 6.7 | 4.4 | 4.6 | 10.1 | 11.3 | ||||||||||||||||||
Expected return on plan assets | (7.1 | ) | (8.8 | ) | (5.1 | ) | (5.3 | ) | (12.2 | ) | (14.1 | ) | ||||||||||||
Net amortization (a) | 1.0 | 0.9 | 1.3 | 1.5 | 2.3 | 2.4 | ||||||||||||||||||
Settlement charge | — | — | 9.6 | — | 9.6 | — | ||||||||||||||||||
Net periodic pension cost | $ | 2.0 | $ | 1.8 | $ | 13.2 | $ | 4.1 | $ | 15.2 | $ | 5.9 |
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(In millions) | ||||||||||||||||||||
Second Quarter of 2016 | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,044.7 | $ | 555.1 | $ | 355.9 | $ | — | $ | 1,955.7 | ||||||||||
Operating income | 64.9 | 23.9 | 12.0 | (44.1 | ) | 56.7 |
Second Quarter of 2015 (As revised) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,011.7 | $ | 449.5 | $ | 19.2 | $ | — | $ | 1,480.4 | ||||||||||
Operating income | 66.6 | 33.6 | 2.4 | (38.1 | ) | 64.5 |
Six Months of 2016 | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,993.8 | $ | 1,061.1 | $ | 717.0 | $ | — | $ | 3,771.9 | ||||||||||
Operating income | 123.7 | 46.4 | 26.3 | (79.4 | ) | 117.0 |
Six Months of 2015 (As revised) | NSS | EES | UPS | Corporate | Total | |||||||||||||||
Net Sales | $ | 1,939.7 | $ | 890.3 | $ | 35.5 | $ | — | $ | 2,865.5 | ||||||||||
Operating income | 122.3 | 69.4 | 4.4 | (72.3 | ) | 123.8 |
(In millions) | NSS | EES | UPS | Total | ||||||||||||
Balance as of January 1, 2016 | $ | 393.3 | $ | 211.9 | $ | 151.3 | $ | 756.5 | ||||||||
Acquisition related (a) | (0.5 | ) | (1.4 | ) | 1.0 | (0.9 | ) | |||||||||
Reassignment of goodwill | 11.2 | (31.8 | ) | 20.6 | — | |||||||||||
Foreign currency translation | 3.2 | 0.6 | 7.6 | 11.4 | ||||||||||||
Balance as of July 1, 2016 | $ | 407.2 | $ | 179.3 | $ | 180.5 | $ | 767.0 |
(a) | In the first and second quarters of 2016, we recorded an immaterial decrease in goodwill primarily related to a preliminary valuation of Power Solutions value of fixed assets. |
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(In millions) | July 1, 2016 | January 1, 2016 | ||||||
Assets: | ||||||||
Current assets | $ | 2,719.9 | $ | 2,727.2 | ||||
Property, equipment and capital leases, net | 149.3 | 141.1 | ||||||
Goodwill | 767.0 | 756.5 | ||||||
Intangible assets, net | 437.0 | 453.8 | ||||||
Other assets | 72.9 | 72.1 | ||||||
$ | 4,146.1 | $ | 4,150.7 | |||||
Liabilities and Stockholder’s Equity: | ||||||||
Current liabilities | $ | 1,219.9 | $ | 1,156.8 | ||||
Long-term debt | 1,526.4 | 1,655.6 | ||||||
Other liabilities | 153.5 | 161.1 | ||||||
Stockholder’s equity | 1,246.3 | 1,177.2 | ||||||
$ | 4,146.1 | $ | 4,150.7 |
Three Months Ended | Six Months Ended | |||||||||||||||
(In millions) | July 1, 2016 | July 3, 2015 | July 1, 2016 | July 3, 2015 | ||||||||||||
Net sales | $ | 1,955.7 | $ | 1,480.4 | $ | 3,771.9 | $ | 2,865.5 | ||||||||
Operating income | $ | 58.2 | $ | 65.9 | $ | 120.1 | $ | 126.7 | ||||||||
Income from continuing operations before income taxes | $ | 37.4 | $ | 49.3 | $ | 76.1 | $ | 91.7 | ||||||||
Net (loss) income from discontinued operations | $ | (0.3 | ) | $ | 41.9 | $ | (0.7 | ) | $ | 34.5 | ||||||
Net income | $ | 21.2 | $ | 72.2 | $ | 44.8 | $ | 92.2 | ||||||||
Comprehensive income | $ | 23.0 | $ | 78.8 | $ | 65.9 | $ | 58.6 |
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