In 2017,2018, key launches to contemporize the Tupperware brand product offering included the Micro Urban Large 3 in 1 Family-sized RiceAloha* range offering a stylish, though completely nestable, serving solution and Pasta Cooker and Steamer foran expansion of the microwave, Chef Series Pressure Cooker, MandoJunior* Vegetable and Fruit Slicer and SpeedyMando* Small Food Slicer.classy Crystalline Collection, an elegant serving solution. Other key launches includedinclude the 3L Universal Jar,Time Keepers Containers under the food conservation category and an expansion of the successful Click-To-Go range to include a new generation of Storage and On the Go Usage containers and a Clear Storage Collection.Beverage Dispenser. The successfulkitchen prep Fusion Master* System was expanded to include a new Sorbet MakerSpiralizer Accessory. The silicone baking range was expanded to include a ringMini Football and a rectangular brownie cutter.Egg shaped baking forms. The Eco Bottle range was expanded to include “Minions” characters under license from Universal Studios Licensing LLCadditional sizes of the Generation II design in Asia Pacific and a trophy shape under license from Fèdèration Internationale de Football Association.Santa Claus shaped bottle for children.

The Company continues to introduce new materials, designs, colors and decoration in its product lines, to vary its offerings including by season and to extend existing products into new markets. The development of new products varies across markets in order to address differences in cultures, lifestyles, tastes and needs, although most products are offered in a large number of markets.

Research and development and the resultant new products will continue to be an important part of the Company's strategy going forward. See “Research and Development” in Part I, Item I of this Report for additional information on the Company’s recent research and development.

Fuller Cosmetics expanded its celebrity fragrances franchise introducing Vivir de NocheAire by LucíYuri, presenting a Mendez and Edwin Luna & La Trakalosa,renowned Mexican singer, Por Siempre Bronco, featuring a popular Mexican music star.group. Other key launches included Armand Dupree Black* FragranceEau Sensuelle* for her and Armand Dupree Homme* for him was launched in 2017. Other keythe fragrance launches included Colorfun Fruty*, Salvaggio Blue*category and Sofisticada*. Fuller Cosmetics redesignedintroduction of new shades in the Sensual Sensations*iconic Armand Dupree Perfect Stay* line withand Charcoal Mask in the focus to strengthen its hair care and skin care categories.category. To reinforce Fuller’s uniqueness proposition, new concepts were introduced in Fuller Cosmetics repositionedBeauty Derm*: Camphorated Gel Forte, a more concentrated version of the CF Colorfun* brand with the introduction of CF Colorfun* BFF water resistant mascarabeloved Camphorated Gel and Camphorated Gel Femme, a collection of matte lipsticks.thermic formula recommended to relieve period cramps.

Tupperware Brands Brazil expanded the Nutrimetics* brand offerings by adding Nutrimetics Nutri-Rich Moisturizing Body SatinOr and Rosé, Nutrimetics Off-Road, Nutrimetics Cancun and Nutrimetics Reserved Room*Snow to its fragrance lineline. Other key additions include the Deodorant body spray and by launching its first celebrity endorsed fragrance, Nutrimetics Ocean.roll-on deodorants categories, roller liquid eyeliner and limited editions Lip Gloss, Matte Liquid Lip Colour, Eyeshadow Trios and Co creation matte lipstick in makeup category.

Tupperware Brands Philippines continued to focus on its top two women’s fragrances: Ivana* and A Little Romance*. The fragrance category was expanded to add Justice League characters Wonder Woman, Batmannew scents and Superman,250 ml body mist versions. The personal care line was expanded with additions under license from Warner Bros. (F.E.) Inc.Family shampoos and toothpaste.

Nutrimetics Australia’s Ultra Care+ Platinum Skin CareAustralia re-launched its Ultra-Care+ Micro-Dermabrasion Kit with an upgraded formula at a lower cost and re-formulated the Comfort Plus range added the Intense Skincare Programme, an innovative kit targeted for treating wrinkles, pigmentation and loss of firmness.sensitive skin with a vegan formula offering anti-aging benefits. The skin carecolor category was expanded by adding Ultra Care+ Clarifying Clay TreatmentNutrimetics Perfecting Oil-Free Foundation and Smart Shield* Protection Crème SPF50a Professional Complexion Correction Kit to align with the contouring and extendingconcealing trends in the Nutrimetics Restore* anti-ageing line. Professional Flawless Air* Serum Foundation was introduced undermarket. Limited edition gold theme products were launched across the Nutrimetics Professional* Color Range.Nutri-Rich* body & skincare range and color category.

Avroy Shlain re-brandedre-launched its Colorfull* line under the CF Colorfun brandanti-aging skincare range with a larger color palettenew packaging and a new concept eye shadow stick.line of moisturizer. Their fragrance category’s key launches included Premium Noir under the Black Diamond* brandRedd* Pulse by Avroy Shlain and Isara*Safire*, Forever Be Mine Whisper and Forever Be Mine Temptationa limited edition for ladies' fragrances and the introduction of gift sets under the Coppelia*Fine Leather*, ID by Avroy Shlain and Endangered* brands.Supreme Musk for Men's fragrances. Other key launches included Perfect Cover Foundation in the Coppelia Colour*introduction of a new Fashion category focusing on bags and fragrance gift sets for Mother’s Day, Father’s Day and Christmas. Coppelia* Colour range Argan oil under the Body Essence* brand in the personal care categorywas expanded to include Shape Shifting Mascara, Contour Kit and Nutritive Facial Oil under the Nucelle* brand in the skin care category.Multi-Palette.

(Words followed by * are registered or unregistered trademarks of the Registrant.)

Tupperware Brands' products are sold around the world under six brands: Tupperware, Avroy Shlain, Fuller, NaturCare, Nutrimetics and Nuvo. The Company defines its established market economy units as those in Western Europe (including Scandinavia), Australia, Canada, Japan, New Zealand and the United States. All other units are classified as operating in emerging market economies. Businesses operating in emerging markets accounted for 6970 percent of 20172018 sales, while businesses operating in established markets accounted for the other 3130 percent. For the past five fiscal years, 91 toor 92 percent of total revenues from the sale of Tupperware Brands' products have been in international markets.

See Note 15 to the Consolidated Financial Statements in Part II, Item 8 of this Report for further details regarding segments and geographic areas.

The Company's products are distributed worldwide primarily through the “direct-to-consumer” method, under which products are sold by an independent sales force to consumers outside traditional retail store locations. The system facilitates the timely distribution of products to consumers, without having to work through retail intermediaries, and establishes uniform practices regarding the use of Tupperware Brands' trademarks and administrative arrangements, such as order entry, delivery and payment, along with the addition and training of new sales force members.

Products are primarily sold directly to distributors, directors, managers and dealers (“sales force”) throughout the world. Where distributorships are granted, they have the right to market the Company's products using parties and other non-retail methods and to utilize Tupperware Brands' trademarks, pursuant to certain limitations. The vast majority of the sales force members are independent contractors and not employees of Tupperware. In certain limited circumstances, the Company has acquired ownership of distributorships for a period of time, until an independent distributor can be installed, in order to maintain market presence.

In addition to the introduction of new products and development of new geographic markets, a key element of the Company's strategy is expanding its business by increasing the size of its sales force. Under the system, distributors, directors, team leaders, managers and dealers add, train, and motivate a large number of dealers. Managers are developed from among the dealer group, and team leaders from among the manager group, and promoted to assist in adding, training and motivating dealers, while continuing to sell products.

As of December 30, 2017,29, 2018, the Company's distribution system had approximately 2,100 distributors, 112,300110,600 managers (including directors and team leaders) and 3.23.0 million dealers worldwide.

Tupperware has traditionally relied upon the group demonstration method of sales, which is designed to enable purchasers to appreciate, through demonstration, the features and benefits of the Company's products. Group demonstrations are held in homes, offices, social clubs and other locations. Products are also promoted through brochures mailed or given to people invited to attend demonstrations. Some business units utilize a campaign merchandising system, whereby sales force members sell through brochures generated every two or three weeks, to their friends, neighbors and relatives. Sales of products are supported through programs of sales promotions, sales and training aids and motivational conferences for the sales force. In addition, to support its sales force, the Company utilizes catalogs, television and magazine advertising, as well as various social media channels, which help to increase its sales levels with hard-to-reach customers and generate leads for sales and new dealers. A significant portion of the Company's business is operated through distributors, many of whom stock inventory and fulfill orders of the sales force that are generally placed after orders have been received from end consumers. In other cases, the Company sells directly to the sales force, also generally after they have received a consumer order. In China, the Company operated at the end of 20172018 through 6,1006,600 independent retail outlets, with heavy emphasis on digital marketing to acquire and sell to members of the outlets that areand other end consumers.

In 2017,2018, the Company continued to sell directly, and/or through its sales force, to end consumers via the Internet. It also entered into a limited number of business-to-business transactions, in which it sells products to a partner company. Sales through the Internet to end consumers and business-to-business transactions do not constitute a significant portion of the Company's sales.

There are many competitors to Tupperware Brands' businesses both domestically and internationally. The principal bases of competition generally are marketing, price, quality and innovation of products, as well as competition with other “direct-to-consumer” companies for sales personnel and demonstration dates. Due to the nature of the direct-to-consumer industry, it is critical that the Company provides a compelling earnings opportunity for the sales force, along with developing new and innovative products. The Company maintains its competitive position, in part, through the use of strong incentives and promotional programs.

At December 30, 2017,29, 2018, the Registrant employed approximately 12,000 people, of whom approximately 1,000700 were based in the United States.

The Registrant incurred $15.0 million, $16.7 million $18.3 million and $18.1$18.3 million for fiscal years 2018, 2017 2016 and 2015,2016, respectively, on research and development activities for new products and production processes.

Materials used in the Company's skin care, cosmetic and bath and body care products consist primarily of readily available ingredients, containers and packaging materials. Such raw materials and components used in goods manufactured and assembled by the Company and through outsource arrangements are available from a number of sources. To date, the Company has been able to secure an adequate supply of raw materials for its products, and it endeavors to maintain relationships with backup suppliers in an effort to ensure that no interruptions occur in its operations.

Tupperware Brands considers its trademarks and patents to be of material importance to its business; however, except for the Tupperware® trademark, Tupperware Brands is not dependent upon any single patent or trademark, or group of patents or trademarks. The Tupperware® trademark, as well as its other trademarks, is registered on a country-by-country basis. The current duration for such registration ranges from five years to ten years; however, each such registration may be renewed an unlimited number of times. The patents used in Tupperware Brands' business are registered and maintained on a worldwidecountry-by-country basis, with a variety of durations. Tupperware Brands has followed the practice of applying for design and utility patents with respect to most of its significant patentable developments.

Compliance with federal, state and local environmental protection laws has not had in the past, and is not expected to have in the future, a material effect upon the Registrant's capital expenditures, liquidity, earnings or competitive position.

Sales do not vary significantly on a quarterly basis; however, sales in the first and third quarter are generally lower than the other quarters in any year due to holiday schedules, vacations by dealers and their customers, as well as reduced promotional activities during these periods. Sales generally increase in the fourth quarter, as it includes traditional gift-giving occasions in many markets and as children return to school and households refocus on activities that include party plan sales events and the use of the Company's housewares products, along with increased promotional activities supporting these opportunities.

Generally, there are no working capital practices or backlog conditions which are material to an understanding of the Registrant's business, although the Company does seek to minimize its net working capital position at the end of each fiscal year and normally generates a significant portion of its annual cash flow from operating activities in its fourth quarter. The Registrant's business is not dependent on a small number of customers, nor is any of its business subject to renegotiation of profits or termination of contracts or subcontracts at the election of the United States government.

The Company’s products are primarily marketed and sold through the "direct-to-consumer" method of distribution, in which products are marketed and sold to consumers, without the use of retail establishments, by a sales force made up of independent contractors. This distribution system depends upon the successful addition, activation and retention of a large force of sales personnel to grow and compensate for a high turnover rate. The addition and retention of sales force members is dependent upon the competitive environment among direct-to-consumer companies and upon the general labor market, unemployment levels, general economic conditions, demographic and cultural changes in the workforce and the level of penetration of the Company's sales force in the geographies in which it operates. The activation of the sales force is dependent, in part, upon the effectiveness of compensation and promotional programs of the Company, the competitiveness of the same compared with other direct-to-consumer companies, the introduction of new products and the ability to advance through the sales force structure.

The Company’s sales are directly tied to the activity levels of its sales force, which is in large part a temporary working activity for many sales force members. Activity levels may be affected by the degree to which a market is penetrated by the presence of the Company’s sales force, the amount of average sales per order, the amount of sales per sales force member, the mix of high-margin and low-margin products sold at group demonstrations and elsewhere, and the activities and actions of the Company’s product line and channel competitors. In addition, the Company’s sales force members may be affected by initiatives undertaken by the Company to grow its revenue base or change its cost base that may lead to the inaccurate perception that the independent sales force system is at risk of being phased out or that the Company intends to exit markets.

A significant portion of the Company’s sales and profit come from its international operations. Although these operations are geographically dispersed, which partially mitigates the risks associated with operating in particular countries, the Company is subject to the usual risks associated with international operations. Amongst others, these risks include local political and economic environments, adverse new tax regulations, potentially burdensome privacy protocols, including the EU General Data Protection Regulation, and relations between the U.S. and foreign governments.

The Company has derived for a number of years, over 90 percent of its net sales from operations outside the United States. As a result,An economic slowdown in any of the countries where the Company operates, particularly, in China, could materially affect the Company's revenues and operating results. Also, movement in exchange rates has had and may continue to have a significant impact on the Company’s earnings, cash flows and financial position. The Company’s most significant exposures are to the Brazilian real, Chinese renminbi, euro, Indonesian rupiah, Malaysian ringgit, Mexican peso and Mexican peso.South African rand. Business units in which the Company generated at least $100 million of sales in 20172018 included Brazil, China, Fuller Mexico, Germany, Indonesia, Tupperware Mexico and Tupperwarethe United States and Canada. Of these units, sales by Brazil, China and Tupperwarethe United States and Canada exceeded $200 million, while sales in Brazil exceeded $300 million. Although the Company's currency risk is partially mitigated by the natural hedge arising from its local product sourcing in many markets, a strengthening U.S. dollar generally has a negative impact on the Company. In response to this fact, the Company continues to implement foreign currency hedging and risk management strategies to reduce the exposure to fluctuations in earnings associated with changes in foreign currency exchange rates. The Company generally does not seek to hedge the impact of currency fluctuations on the translated value of the sales, profit or cash flow generated by its operations. Some of the hedging strategies implemented have a positive or negative impact on cash flows as foreign currencies fluctuate versus the U.S. dollar. There can be no assurance that foreign currency fluctuations and related hedging activities will not have a material adverse impact on the Company’s results of operations, cash flows and/or financial condition.

Another risk associated with the Company’s international operations is restrictions foreign governments may impose on currency remittances. Due to the possibility of government restrictions on transfers of cash out of countries and control of exchange rates and currency convertibility, the Company may not be able to immediately access its cash at the exchange rate used to translate its financial statements. As of the end of 2017,2018, this was a particular issue in China and Korea.China. See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations for further discussion regarding this risk.

The Company's business may also be affected by actions of domestic and foreign governments to restrict the activities of direct-to-consumer companies for various reasons, including a limitation on the ability of direct-to-consumer companies to operate without the involvement of a traditional retail channel. Foreign governments may also introduce other forms of protectionist legislation, such as limitations or requirements on where the products which can or must be produced locally or requirements that non-domestic companies doing or seeking to do business place a certain percentage of ownership of legal entities in the hands of local nationals to protect the commercial interests of its citizens. Customs laws, tariffs, import duties, export and import quotas and restrictions on repatriation of foreign earnings and/or other methods of accessing cash generated internationally, may negatively affect the Company's local or corporate operations. Governments may seek either to impose taxes on independent sales force members, to classify independent sales force members as employees of direct-to-consumer companies with whom they may be associated, triggering employment-related taxes on the part ofCompany's sales force and/or the direct-to-consumer companies, or to impose registration requirements that could impact prospects' willingness to join the sales force. Additionally, some governments prohibit or impose limitations on the requirement to purchase demonstration products upon joining a direct-to-consumer business and/or the types of activities for which a direct-to-consumer sales force can be compensated. Additionally, the U.S. government may impose restrictions on the Company's ability to engage in business in other countries in connection with the foreign policy of the United States.

Certain of the materials used in the Company’s product lines may give rise to concerns of consumers based upon scientific theories which are espoused from time to time, including the risk of certain materials leaching out of plastic containers used for their intended purposes or the ingredients used in cosmetics, personal care or nutritional products causing harm to human health. This includes polycarbonate, which contains the chemical Bisphenol A, and polyethersulfone, which contains the chemical Bisphenol S. It is the Company’s policy to market products in each of its business units containing only those materials or ingredients that are approved by relevant regulatory authorities for contact with food or skin or for ingestion by consumers, as applicable.

The Company’s success depends in part on the efforts and abilities of qualified personnel at all levels, including its senior management team and other key employees.  Their motivation, skills, experience, contacts and industry knowledge significantly benefit the Company’s operations and administration.  The failure to attract, motivate and retain members of the senior management team could have an adverse effect on the Company’s results of operations, cash flows and financial condition. In February 2018, the Company announced that, effective May 9, 2018, Patricia A. Stitzel, its current President and Chief Operating Officer, will become the President and Chief Executive Officer of the Company and E.V. Goings, its current Chairman and Chief Executive Officer, will retire as Chief Executive Officer and serve as Executive Chairman of the Company, consistent with a succession strategy plan previously approved by the Company’s Board of Directors.  Any significant leadership change or senior management transition involves inherent risk and any failure to ensure a smooth transition could hinder the Company’s strategic planning, execution and future performance.  A change in the senior management team may create uncertainty among investors, employees and others concerning the Company’s future direction and performance.  Any disruption in the Company’s operations or uncertainty could have an adverse effect on its business, financial condition or results of operations. In particular, Mr. Poteshman will retire as Executive Vice president and Chief Financial Officer effective March 31, 2019.

The Company relies extensively on information technology systems to conduct its business, some of which are managed by third-party service providers. These systems include, but are not limited to, programs and processes relating to internal communications and communications with other parties, ordering and managing materials from suppliers, converting materials to finished products, receiving orders and shipping product to customers, billing customers and receiving and applying payments, processing transactions, summarizing and reporting results of operations, complying with regulatory, legal or tax requirements, collecting and storing certain customer, employee, investor, and other stakeholder information and personal data, and other processes necessary to manage the Company’s business.  IncreasedCurrent and increased information technology security threats, and current and more sophisticated computer crime, including advanced persistent threats, pose a potential risk to the security of the information technology systems, networks, and services of the Company, its customers and other business partners, as well as the confidentiality, availability, and integrity of the data of the Company, its customers and other business partners. As a result, the Company’s information technology systems, networks or service providers could be damaged or cease to function properly or the Company could suffer a loss or disclosure of business, personal or stakeholder information, due to any number of causes, including catastrophic events, power outages and security breaches. Although the Company has business continuity plans in place, if these plans do not provide effective alternative processes on a timely basis, the Company may suffer interruptions in its ability to manage or conduct its operations, which may adversely affect its business.  The Company may need to expend additional resources in the future to continue to protect against, or to address problems caused by, any business interruptions or data security breaches.  Any business interruptions or data security breaches, including cyber-security breaches resulting in private data disclosure, could result in lawsuits or regulatory proceedings, damage the Company’s reputation or adversely impact the Company’s results of operations, cash flows and cash flows.financial condition. While the Company maintains insurance coverage that could cover some of these types of issues, the coverage has limitations and includes deductibles such that it may not be adequate to offset losses incurred.

The Company’s business can be affected by a wide range of factors that affect other businesses. Weather, natural disasters, strikes, epidemics/pandemics, political instability, terrorist activity, and public scrutiny of the direct-to-consumer channel, and changing attitudes regarding plastic products may have a significant impact on the willingness or ability of consumers to attend parties or otherwise purchase the Company’s products. The supply and cost of raw materials, particularly petroleum and natural gas-based resins, may have an impact on the availability or cost of the Company’s plastic products. The Company is also subject to frequent product counterfeiting and other intellectual property infringement, which may be difficult to police and prevent, depending upon the ability to identify infringers and the availability and/or enforceability of intellectual property rights. Other risks, as discussed under the sub-heading “Forward-Looking Statements” contained in Part II, Item 7A of this Report, maycan be relevant to performance as well.

The following table presents the Company’s selected historical financial information for the last five years. The selected financial information has been derived from the Company's audited consolidated financial statements which, for the data presented for fiscal years 20172018 and 20162017 and for some data presented for 2015,2016, are included in Part II, Item 8 of this Report. This data should be read in conjunction with the Company's other financial information, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A) and the Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in Part II, Items 7 and 8, respectively, in this report. The Company's fiscal year ends on the last Saturday of December and, as a result, the 2016 fiscal year contained 53 weeks as compared with 52 weeks for the other fiscal years presented.

The following is a discussion of the results of operations for 2018 compared with 2017 and 2017 compared with 2016, and 2016 compared with 2015, and changes in financial condition during 20172018 and 2016.2017. The Company’s fiscal year ends on the last Saturday of December. As a result, the 2016 fiscal year included 53 weeks, as compared with 52 weeks for 20172018 and 2015.2017. This information should be read in conjunction with the consolidated financial information provided in Part II, Item 8 of this Annual Report.

The Company's primary means of distributing its products is through independent sales organizations and individuals, which in many cases are also its customers. The vast majority of the Company's products are, in turn, sold to end customersconsumers who are not members of its sales force. The Company is largely dependent upon these independent sales organizations and individuals to reach end consumers, and any significant disruption of this distribution network would have a negative financial impact on the Company and its ability to generate sales, earnings and operating cash flows. The Company's primary business drivers are the size, activity, diversity and productivity of its independent sales organizations.

As the impacts of foreign currency translation are an important factor in understanding period-to-period comparisons, the Company believes the presentation of results on a local currency basis, as a supplement to reported results, helps improve readers' ability to understand the Company's operating results and evaluate performance in comparison with prior periods. The Company presents local currency information that compares results between periods as if current period exchange rates had been used to translate results in the prior period. The Company uses results on a local currency basis as one measure to evaluate performance. The Company generally refers to such amounts as calculated on a "local currency" basis, or "excluding the impact of foreign currency." These results should be considered in addition to, not as a substitute for, results reported in accordance with generally accepted accounting principles in the United States ("GAAP"). Results on a local currency basis may not be comparable to similarly titled measures used by other companies.

The Company defines established market economies as those in Western Europe (including Scandinavia), Australia, Canada, Japan, New Zealand, and the United States. All other countries are classified as having emerging market economies.

Reported sales increased 2 percent in 2017 compared with 2016. Excluding the impact of changes in foreign currency exchange rates, sales increased 1 percent. This included an estimated 1 percentage point negative impact on the comparison from the 53rd week in 2016, as well as 0.7 percentage pointspoint negative impact from Beauticontrol, reflecting lower sales in the first half of 2017, and the winding down of operations in the third quarter. The average impact of higher prices on the sales comparison was 2 percent.

The Company’s businesses operating in emerging market economies accounted for 69 percent and 66 percent of reported sales in 2017 and 2016, respectively. Net sales in the emerging markets were up 5 percent in 2017 compared with 2016 in both dollars and local currency. The average impact of higher prices in these markets was 4 percent. The increase in local currency sales in the Company's emerging market units was primarily in Brazil, the Company's largest business unit, reflecting a larger sales force, and in China, reflecting continued growth in the number of members, who are customers of the outlets and demonstration studios,more outlets, along with higher studio productivity, including from improved leveraging of digital marketing. Also contributing to the local currency sales increase was inflation related pricing in Argentina and Venezuela, and the benefit of larger sales forces in Tupperware Mexico and Tupperware South Africa from strong sales force additions. These results were partially offset by decreases in India, from significantly fewer active sellers in light of requirements under the federal government's direct selling guidelines that were enacted in 2016 and the constrained consumer spending due to implementation of a nationwide goods and services tax in July 2017, and in Indonesia from a smaller, less active and less productive sales force.

Gross margin as a percentage of sales was 66.6 percent in 2018 and 67.0 percent in 2017. The decrease of 0.4 percentage points ("pp") primarily reflected unfavorable resin costs (0.5 pp), higher manufacturing costs despite the closure of French supply chain facility early in the year, mainly in South America and Europe, in part due to lower volume (0.4 pp), and unfavorable mix of products sold and increased sales incentives, mainly in Brazil and Europe (0.2 pp). These were partially offset by a mix impact from relatively higher sales in certain units with higher than average gross margins (0.3 pp), lower obsolescence costs (0.3 pp) and a positive impact from the translation effect of changes in foreign currency exchange rates in Venezuela (0.1 pp).

Gross margin as a percentage of sales was 67.0 percent in 2017 and 67.7 percent in 2016. The decrease of 0.7 percentage points ("pp") primarily reflected an unfavorable mix of products sold and more aggressive promotional pricing, mainly at Beauticontrol and in Europe (1.2 pp), a negative impact from the translation effect of changes in foreign currency exchange rates in Venezuela (0.2 pp), unfavorable resin costs (0.2 pp), and higher obsolescence costs, mainly in light of the winding down of Beauticontrol (0.1 pp). These were partially offset by thea mix impact from relatively higher sales in certain units with higher than average gross margins (0.5 pp) and lower manufacturing costs, mainly in Europe (0.5 pp).

Delivery, sales and administrative expense ("DS&A") as a percentage of sales was 51.551.2 percent in 2018, compared with 51.4 percent in 2017. The comparison reflected more efficient promotional spending primarily in Brazil and Fuller Mexico (0.8 pp), lower administrative expenses, mainly in Brazil and Corporate, primarily due to lower expense for management incentives (0.7 pp), a favorable mix impact from relatively higher sales in certain units with lower than average DS&A (0.5 pp) and a favorable impact of the 2017 closure of Beauticontrol, which had higher than average DS&A as a percentage of sales (0.2 pp). This was partially offset by higher distribution costs, mainly in Brazil, Europe and Tupperware United States and Canada (0.8 pp), increased commissions, primarily in Brazil, Japan and Tupperware United States and Canada (0.4 pp), higher bad debt expense, mainly in France and Fuller Mexico (0.4 pp) and a negative impact from the translation effect of changes in foreign currency exchange rates (0.4 pp).

DS&A as a percentage of sales was 51.4 percent in 2017, compared with 52.952.6 percent in 2016. The lower DS&A expense reflected more efficient promotional spending primarily in Asia Pacific and Europe (0.8 pp), relatively higher sales in certain units with lower than average operating expenses (0.6 pp), lower pension settlement costs (0.2 pp), a positive impact from the translation effect of changes in foreign currency exchange rates (0.2 pp) and a lower marketing costs mainly in Europe (0.1 pp). Partially offsetting these decreases, was the higher distribution costs in Tupperware North America (0.2 pp) and higher bad debt expense in Europe and South America (0.3 pp).

The Company segregates corporate operating expenses into allocated and unallocated components based upon the estimated time spent managing segment operations. The allocated costs are then apportioned on a local currency basis to each segment based primarily upon segment revenues. The unallocated expenses reflect amounts unrelated to segment operations. Operating expenses to be allocated are determined at the beginning of the year based upon estimated expenditures. Total unallocated expenses in 2018 decreased $17.8 million compared with 2017, reflecting reduced management incentive costs and reduced expenses from corporate marketing initiatives.

Total unallocated expenses in 2017 decreased $3.5 million compared with 2016, reflecting reduced expenses from corporate marketing initiatives, and a higher allocation of costs to the segments, partially offset by increased management incentive costs.

As discussed in Note 1 to the Consolidated Financial Statements in Part II, Item 8 of this Report, the Company includes costs related to the distribution of its products in DS&A expense. As a result, the Company’s gross margin may not be comparable with other companies that include these elementsthis expense in cost of products sold.

As the Company continuously evaluates its operating structure in light of current business conditions and strives to maintain the most efficient possible structure, it periodically implements actions designed to reduce costs, improve operating efficiency and otherwise transform its business. These actions often result in re-engineering costs related to headcount reductions and to facility downsizing and closure, as well as related asset write downs and other costs that may be necessary in light of the revised operating landscape.landscape including structural changes impacting how its sales force operates. In addition, the Company may recognize gains or losses upon disposal of excess facilities or other activities directly related to its re-engineering efforts.

Over the past three years, the Company has incurred such costs as detailed below that were included in the following income statement captions:

In 2018 and 2017, the re-engineering and impairment charges incurred were primarily related to severance costs and restructuring actions taken in connection with the Company's plans, through 2018 or 2019, to rationalize its supply chain and to adjust the cost base of several marketing units. The restructuring charges also relate to the Company's decision to wind-down the Beauticontrol reporting unit due to a history of declining revenues, operating lossesin 2017. In 2018 and 2017, the competitive environment in the direct selling channel and retail sector for beauty and personal care products in the United States, Canada and Puerto Rico. The Company recorded $0.9 million and $3.6 million, respectively, in cost of sales for inventory obsolescence mainly in connection with the decision to wind-down Beauticontrol in 2017.its re-engineering program.

Under the Company's re-engineering program announced in July 2017, it expects to incur a total of $100 to $110$84 million in pretax costs, fromof which $81 million has been recorded starting in the second quarter of 2017 through 2019.the end of 2018. In addition to the amounts recorded in 2017,connection with this program the Company expects to recordincur an additional $30$3 million of pretax re-engineering costs in 2018. The Company's estimates reflect2019, with about 80%65 percent of the total program cost relatingrelated to severance and benefits, whileand the balance is predominantly related to costs to exit leases and other contracts, mainly related to wind-down of Beauticontrol and closure of the French manufacturing facility, as well as write-offsthe write-off of excess assets for which there are not expected to bewere no disposal proceeds. Cash outflows associated with the overall program are expected to total $90 to $100about $80 million, including $13$52 million paid in 2017 and $70 million expected inthrough 2018. Both the cost and cash flow are before related asset sales that could bring proceeds of up to $50$35 to $60$45 million over time.time, including $28 million received in connection with the sale of assets in the first half of 2018. The annualized benefit of these actions, once fully implemented, is estimated to be $35 million with a small amount realized in 2017 and about two-thirds ofrealized in 2018, mainly in the annualized benefitsecond half, and an incremental $10 million to be realized in 2019. While the expected savings to date have been realized, other factors more than offset these amounts. The benefits realized in 2018 and the remainder in 2019. After reinvestment of a portion of the benefits, improved profitability will bewere reflected most significantly through lower cost of products sold but alsothan would otherwise be achieved, as well as through lower DS&A.

In January 2019, the Company announced a transformation program running through 2022 that is expected to cost approximately $100 million, with 90 percent in cash. Once fully implemented, the transformation projects are expected to enable annual local currency sales growth and to generate about $50 million in annualized savings.

In 2016, the re-engineering and 2015, theseimpairment charges were primarily associated with headcount reductions in several of the Company's operations in connection with changes in its management and organizational structures.

See also Note 2 to the Consolidated Financial Statements in Part II, Item 8 of this Report, regarding the Company's re-engineering actions.

Refer to Note 6 of the Consolidated Financial Statements in Part II, Item 8 for further information.

The Company continues with its program to sell land for development near its Orlando, Florida headquarters, which began in 2002, recognizing pretax gains of $7.1 million, $8.8 million $26.5 million and $12.9$26.5 million under this program in 2018, 2017 and 2016, and 2015, respectively. Included in 2016 pretax gains under this program was $24.2 million in connection with the sale of two joint ventures the Company had with a real estate development partner to develop land near the Company's Orlando headquarters. Total cash proceeds from the sale were $30.2 million, including $0.9 million related to the operation of the joint ventures during development. The income from the joint venture operations was recorded in other income on the Company's Consolidated Statements of Income in 2016. Gains on land transactions are recorded based upon when the transactions close and proceeds are collected. Transactions in one period may not be representative of what may occur in future periods. Since the Company began this program in 2002, cumulative proceeds from these sales have totaled $136$147 million with additional net proceeds of up to $100$90 million expected as the program is completed, including future capital spending associated with the development currently estimated in the $10 to $12 million range.completed. The carrying value of the remaining land included in the Company's land sales program was $24$30 million as of 2017,the end of 2018, which was included in property, plant and equipment held for use within the Consolidated Balance Sheets as it is not considered probable that any significant land sales will be completed within one year.Sheets. The Company has concluded that the fair value of the land under this program significantly exceeded the carrying value as of the end of 2017,2018, and will continue to do so into the foreseeable future.

In 2015 and 2014,addition in 2018, the Company entered into two joint ventures withexecuted a real estate development partner to develop land nearsale and leaseback of its distribution facility in Japan. The lease has an initial term of 6 years and 5 months. The transaction resulted in cash proceeds of $22.4 million and a deferred gain of $7.9 million, which was recorded as a liability and will be amortized over the Company's Orlando headquarters.lease term. The Company receivedrecorded a fifty percent ownership in each joint venture in exchange for contributionsgain of land. During the third quarter of 2016, the Company recorded gains of $24.2$9.5 million in connection with its subsequent salethis transaction along with a pretax gain of the joint ventures. Total cash proceeds$2.1 million from the sale were $30.2 million, including $0.9 million related to the operation of the joint ventures during development. The income from the joint venture operations was recordedBeauticontrol property in other income on the Company's Consolidated Statements of IncomeTexas in 2016.2018.

Net interest expense was $43.2 million in 2017, compared with $45.4 million in 2016. Interest expense decreased in the year-over-year comparison reflecting less expense related to forward points from the Company's hedging activity, partially offset by the impact of higher interest rates on short-term borrowings.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation, the U.S. Tax Act.Cuts and Jobs Act of 2017 (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affectedcode. The effective tax rates for 2018, 2017 including but not limited to a one-time transitionand 2016 were 43.6, 243.4 and 25.8 percent, respectively. The effective tax on certain unrepatriated earningsrate for 2018 and 2017 reflects the impact of foreign subsidiaries that is payable over eight years.the Tax Act.

ASC 740 requires a company to record the effect of a tax law change in the period of enactment. However, shortly after the enactment of the Tax Act, the SEC staff issued SEC Staff Accounting Bulletin 118 (“SAB 118”), which allowsallowed a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. In instances whereyear from the Company was able to make a reasonable estimate of the effects of elements for which the analysis was not complete, the Company recorded amounts in tax expense. Related to provisions of the Tax Act for which the Company was not able to make reasonable estimates of the impact, it did not record any amount and continued accounting for them on the basis of tax laws in effect before the Tax Act as required under SAB 118.enactment date.

In addition to, and in some cases interacting with the Tax Act, tax expense is affected by factors, including the global mix of earnings, changes in foreign tax legislation, acquisitions or dispositions as well as the tax characteristics of income. The Company is required to make judgments on the need to record deferred tax assets and liabilities, uncertain tax positions and assessments regarding the realizability of deferred tax assets in determining the income tax provision. The Company has recognized deferred tax assets based upon its analysis of the likelihood of realizing the benefits inherent in them in accordance with the requirements of SAB 118. The changes in law from the Tax Act are broad, complexDuring fiscal 2018 and are subject to new technical interpretations and additional legislative actions to address ambiguities as a result of the Tax Act. Where possible,2017, the Company has made reasonable estimates ofrecorded tax charges for the impact of the Tax Act effects using the current available information and technical guidance on the interpretations of the Tax Act. In 2017 and in accordance with SAB 118.118, provisional estimates were recorded. The Company’s existingCompany has finalized the SAB 118 accounting analysis based on the guidance, interpretations, and data available as of December 22, 2018. Adjustments made in the fourth quarter of fiscal 2018 upon finalization of the accounting analysis were not material to the Consolidated Financial Statements except for the recording of $50.6 million expense for future withholding taxes relating to the future distribution of accumulated foreign earnings subject to the toll charge if that had been recorded as of December 30, 2017.  The Company recorded a $4.0 million benefit related to foreign exchange rate on the withholding tax liability for the period ended December 29, 2018.

In the fourth quarter of 2018, the Company early adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The standard allows companies to reclassify from Accumulated Other Comprehensive Income/Loss to Retained Earnings the difference between the historical corporate structureincome tax rate of 35 percent and intercompany arrangements have been implementedthe 21 percent rate enacted in a manner believed to be in compliance with current prevailing tax laws.

The Tax Act established new IRC Section 163(j), which imposes a new limitation on the revaluationdeductibility of interest expense. Any current non-deductible amount is carried forward indefinitely. The U.S. Treasury has not issued final regulations regarding a number of the Company’s net domesticnew Tax Act provisions. As such, the Company recorded a deferred tax assets, and a one-time provisional transition tax chargeasset of approximately $96$15.6 million forrelating to the repatriation tax provision of the Tax Act. Reversal of various net tax benefits recorded under previous tax law changed by the Tax Act totaled $15 million. In reaching these estimates, the Company took into account all available guidance and notices issued by the U.S. Department of the Treasury. The amounts are to be considered provisional and are subject to change that could be significant given the complexity of the underlying calculations and uncertainty as to how some provisions of the Tax Act are to be applied.

At December 30, 201729, 2018 and December 31, 2016,30, 2017, the Company had valuation allowances against certain deferred tax assets totaling $235.5$253.3 million and $24.8$235.5 million, respectively. The increase in valuation allowance was primarily from the estimated impact of the limitation of usage of FTCs under the Tax Act.associated with higher deferred tax assets for net operating losses. These valuation allowances relate to tax assets in jurisdictions where it is management's best estimate that there is not a greater than 50 percent probability that the benefit of the assets will be realized in the associated tax returns. This assessment is based in part upon expected future domestic results under the Tax Act, and available foreign source income, including rents and royalties available for credit usage under the Tax Act, as well as anticipated gains related to future sales of land held for development near the Company's Orlando, Florida headquarters. Certain tax planning transactions may be entered into to facilitate realization of these benefits.benefits once the final tax regulations are issued. In evaluating uncertain tax positions, the Company makes determinations regarding the application of complex tax rules, regulations and practices. Uncertain tax positions are evaluated based on many factors including but not limited to changes in tax laws, new developments and the impact of tax audit settlements on future periods. Refer to the critical accounting policies section and Note 12 to the Consolidated Financial Statements in Part II, Item 8 of this Report for additional discussions of the Company's methodology for evaluating deferred tax assets.

The Company estimates that it may settle one or more foreign and domestic audits in the next twelve months that may result in a decrease in the amount of accrual for uncertain tax positions of up to $0.8$2.5 million. For the remaining balance as of December 30, 2017,29, 2018, the Company is not able to reliably estimate the timing or ultimate settlement amount. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment of valuation allowances against certain existing deferred tax assets. At this time, the Company is not able to make a reasonable estimate of the range of impact on the balance of unrecognized tax benefits or the impact on the effective tax rate related to these items.

Operating income increased 38 percent in 2018 compared with 2017, which included a 16 point negative translation impact on the comparison from changes in foreign currency exchange rates. Net income increased $421.3 million on a reported basis, including a $15.5 million negative translation impact from changes in foreign exchange rates. The increase in local currency net income was primarily due to the absence of $375.0 million of non-cash income tax charges related to the Tax Act that was recorded in the fourth quarter of 2017, the absence of the non-cash $62.9 million goodwill impairment related to Fuller Mexico that was recorded in 2017, lower pre-tax re-engineering costs in connection with the Company's restructuring plan announced in July 2017, lower corporate costs and higher pre-tax gains from real estate transactions. These local currency increases were partially offset by lower segment profit in Asia Pacific, primarily due to lower sales, South America, reflecting elevated costs in Brazil, Europe, primarily due to lower sales and higher selling expenses and $46.6 million of income tax expense related to implementation of provisions of the Tax Act that was recorded in 2018.

Operating income decreased 34 percent in 2017 compared with 2016, which included a 1 point positive translation impact on the comparison from changes in foreign currency exchange rates. Net loss of $265.4 million represented a decrease of $489.0 million from 2016. The decrease in local currency net income was primarily due to the $375.0 million of non-cash income tax charges related to the Tax Act, the $62.9 million goodwill impairment related to Fuller Mexico, higher pre-tax re-engineering costs in connection with the Company's restructuring plan announced in July 2017, and lower pre-tax gains from real estate transactions and lower segment profit in Europe primarily due to lower sales, along with higher bad debt.debt expenses. These local currency decreases were partially offset by higher segment profit in South America, reflecting increased sales in Brazil and lower operating expenses in Asia Pacific, as well as sales growth and a mix shift toward China that has very good profitability, and higher sales in Tupperware Mexico, and the United States and Canada in North America.

Operating income increased 10International operations accounted for 92 percent of sales in 2018 and 91 percent in 20162017 and 2016. They accounted for 97 percent of segment profit in 2018, 98 percent in 2017 and 99 percent in 2016.

Reported sales decreased 5 percent in 2018 compared with 2015, which2017. Excluding the translation impact of foreign currency exchange rates, sales decreased by 6 percent, primarily reflecting reduced volume of products sold. This included a 105 percentage point positive impact from the benefit of business-to-business sales, mainly in France and Germany. On average, prices were even in 2018.

The negative translation impact of foreign currency rates on the year-over-year comparison of sales versus the U.S. dollar was primarily attributable to a weaker Indonesian rupiah, Indian rupee and the Philippine peso, partially offset by a stronger Chinese renminbi and Malaysian ringgit. The Chinese renminbi and Indonesian rupiah generally carry the highest exposure to changes in foreign currency rates due to the share of the segment's sales and profit generated in those currencies.

Segment profit decreased $30.4 million, or 31 percent, in 2018 compared with 2017, including a negative $18.8 million impact from changes in foreign currency exchange rates. Net income increased 20Segment profit as a percentage of sales, at 19.7 percent, on a reported basis. Excluding the translation impact of foreign exchange rates, net income was 34 percent higher3.3 percentage points lower than 2015.in 2017. The increasemost significant decrease in local currency net income came primarily in South America, reflecting an improved gross margin and lower operating expenses on increased salessegment profit was in Brazil, as well as $10.6 millionreflecting lower sales, the impact on product cost in Brazil of lower expenses related to inventoryproduction volume and net monetary assetsincremental resin costs and costs in addressing product availability in connection with a customs strike. This was partially offset by $5.3 million lower expenses in 2018 in connection with inflation related balance sheet adjustments in Argentina and Venezuela, including fixed asset impairments that were impacted by the devaluationweakening of the currency exchange rates inrate. Argentina and Venezuela in 2016 compared with 2015. Also contributingare accounted for as hyperinflationary. As a consequence, amounts related to the local currency nettranslation of monetary assets when the exchange rate to the U.S. dollar fluctuates are recorded in income, increase was higher segment profit from higher gross margin despite lower sales in Asia Pacificwhereas for non-hyperinflationary units they are recorded as a cumulative translation adjustment on the Consolidated Balance Sheet.

The Argentine peso, the Brazilian real and higher sales and improved contribution margin in Tupperware businesses in North America. In addition,Venezuelan bolivar were the Company had $13.6 million higher gains in connectionmain currencies with land transactions nearsignificant negative translation impacts on the Company's Orlando headquarters, lower unallocated corporate costs primarily reflecting incentive accruals under the Company's incentive plans, and a lower tax rate. These local currency increases were partially offset by lower segment profit in Europe primarily from lower sales volume and higher promotional spending primarily in France, and lower sales in Beauty businesses in North America along with a lower gross margin in Fuller Mexico.year-over-year comparisons.

Reported sales decreased 2 percent in 2017 compared with 2016. Excluding the translation impact of foreign currency exchange rates, sales decreased by 4 percent, primarily reflecting reduced volume of products sold, as well as more aggressive promotional pricing. On average, prices decreased by 1 percent in 2017.

Emerging marketsmarket units accounted for $201.9 million and $189.6 million of reported net sales in this segment in 2017 and 2016, respectively, which representedrepresenting 37 percent and 34 percent of net sales, respectively. On a local currency basis, the emerging market units' sales increased by 4 percent, primarily reflecting a larger sales force from significantly higher additions in Tupperware South Africa during the first half of 2017.

Local currency sales in the Company’s established marketsmarket units decreased by 9 percent, reflecting smaller sales forces from lower additions in France and Germany, as well as the negative impacts on several business units in continental Europe due tofrom service disruptions in connection with the Company's project that began in the fourth quarter of 2017 to close the French manufacturing and supply chain facility. This is also expected to have an impact on the first quarter of 2018.

Segment profit decreased $10.8 million, or 16 percent in 2017 compared with 2016. Segment profit as a percentage of sales was 9.9 percent in 2017 compared with 11.7 percent in 2016. Excluding the translation impact of foreign currency exchange rates, segment profit decreased 21 percent compared with 2016. The decreased segment profit was primarily due to lower sales, along with higher bad debt expense, most significantly in France and Germany, partially offset by lower promotional spending.

The positive translation impact of foreign currency rates versus the U.S. dollar on the year-over-year comparison of sales versus the U.S. dollar was primarily attributable to a stronger euro and South African rand, partially offset by a weaker Turkish lira, while only the South African rand had a meaningful impact on the profit comparison.

Reported sales in Asia Pacific in 2017 decreased 2 percent compared with 2016. Excluding the translation impact of foreign currency exchange rates, the segment's sales decreased 1 percent, including a 1 percentage point negative impact from the 53rd week in 2016, as well as lower volume in India, Indonesia and Nutrimetics Australia and New Zealand, partially offset by higher volume in China. TheThere was a 1 percent average price increase for the segment was 1 percent.segment.

Emerging marketsmarket units accounted for $622.2 million and $629.5 million of sales in 2017 and 2016, respectively, or 85 percent and 84 percent of the sales in this segment in 2017 and 2016, respectively. Excluding the $5.2 million negative impact of foreign currencies on the comparison, these markets'units' sales in 2017 were even with 2016. The most significant decrease among the units was a decrease in Indonesia from a smaller, less active and less productive sales force in connection with the response to the Company's product and promotional programs, as well as lower sales force member additions. In addition, India had lower sales due to significantly fewer active sellers in light of requirements under the federal government's direct selling guidelines that were enacted in 2016 and thea constrained consumer spending environment due to the implementation of a nationwide goods and services tax in July 2017. These decreases were offset by China, primarily related to accelerating the net addition of experience studiosoutlets with significantly higher productivity, including from digital marketing initiatives to its members, as well as some timing benefit from a shift in ordering patterns. China ended 2017 with 6,100 experience studios,outlets, which was 11 percent more than at the end of 2016.

Reported sales in the established marketsmarket units decreased 5 percent. Excluding the impact of foreign currencies, these markets' sales decreased 7 percent, primarily in Nutrimetics Australia and New Zealand due to a smaller, less active sales force from lower additions.

Total segment profit increased $8.3 million, or 5 percent, in 2017. The impact of foreign currency translation was not significant. Segment profit as a percentage of sales was 25.8 percent in 2017 compared with 24.2 percent in 2016. The improved profitability was primarily related to higher sales in China which has awith its high contribution margin on incremental sales, and lower promotional spending, partially offset by lower sales in India and Indonesia.

The Philippine peso and Malaysian ringgit were the most significant currencies that ledhad the most contribution to the translation impact from foreign currencies on the year-over-year sales comparison. The Chinese renminbi and Indonesian rupiah generally carry the highest exposure to changes in foreign currency rates due to the volume of revenue and profits.

Reported sales decreased 1 percent in 2017 compared with 2016. The translation impact of foreign currency exchange rates was not significant. There was a 3-point negative impact on the comparison from the winding down of Beauticontrol, reflecting lower sales in the first half of 2017 and the winding down of its operations in the third quarter. There was also an estimated 1-point negative impact from the 53rd week in 2016. The average price increase in this segment was 2%.2 percent.

Emerging markets accounted for $292.4 million and $295.3 million of reported net sales in this segment in 2017 and 2016, respectively, which represented 54 percent of sales in both years. On a local currency basis, the emerging market units' sales were even, primarily reflecting a sales increase in Tupperware Mexico, due to a larger sales force, offset by Fuller Mexico from fewer active and less productive sellers.

Reported sales in the established markets decreased 2 percent, primarily due to Beauticontrol, partially offset by a sales increase in the United States and Canada, due toreflecting more active sellers and good response to programs to drive higher volumes of products sold.

Segment profit increased $3.6 million, or 6 percent, in 2017 compared with 2016. Segment profit as a percentage of sales at 12.9 percent was 0.8 percentage points higher than 2016, reflecting higher sales with lower operating expenses in Tupperware Mexico and the United States and Canada, partially offset by lower profit on lower sales in Fuller Mexico, as well as inventory write-offs and operating losses from winding down Beauticontrol in the second half of 2017.

The Mexican peso was the main foreign currency that impacted the year-over-year comparisons.

Reported sales for this segment increased 20 percent in 2017 compared with 2016. Excluding the translation impact of changes in foreign currency exchange rates, sales increased 19 percent with approximately two-thirds of the increase reflecting the impact of higher prices throughout the segment, mainly due to high inflation in Argentina and Venezuela. The remaining increase was the result of higher volume of products sold with an estimated 2 point negative impact on the comparison from the 53rd week in 2016. All of the businesses in this segment operate in emerging market economies.

The most significant increase in local currency sales was in Brazil, the Company's largest business unit, mainly from higher volume of products sold, reflecting a larger sales force size, partially offset by lower productivity in the second half of 2017 in light of a tough consumer spending environment. Argentina and Venezuela's local currency sales also increased significantly, mainly due to the higher prices in light of significant inflation.

Net working capital was negative $138.5 million as of December 29, 2018, compared with negative $28.3 million as of December 30, 2017 compared withand negative $2.3 million as of December 31, 2016 and negative $63.5 million as of December 26, 2015.2016. The current ratio was 0.8 to 1.0 at the end of 2018, and 1.0 to 1.0 at the end of 2017 and 2016,2016.

The Company’s reported net working capital decreased $110.2 million in 2018 compared with 2017. Excluding the negative $14.5 million impact due to changes in foreign currency exchange rates, working capital decreased $95.7 million, primarily reflecting a $138.0 million increase in short-term borrowings, net of cash and 0.9cash equivalents. This local currency decrease was partially offset by a $17 million decrease in accounts payable and accrued liabilities due to 1.0 atpayments during the year under the Company's re-engineering program announced in 2017 and payment of management incentives earned in 2017 with much less accrued for incentives earned in 2018, a $16.6 million increase in inventory, related to a lower than expected sell through and an $11.0 million increase in accounts receivable due to the level and timing of sales around the end of 2015.each period as well as higher overdue amounts.

The Company’s reported net working capital decreased $26.0 million in 2017 compared with 2016. Excluding the negative $2.6 million impact due to changes in foreign currency exchange rates, working capital decreased $23.4 million, primarily reflecting a $68.9 million net increase in accounts payable and accrued liabilities, excluding the liabilities related to hedging activities, which included $45.4 million under the re-engineering program announced in July 2017, a $15.6 million increase in short-term borrowings and a $6.9 million decrease related to amounts on the balance sheet for hedging activities. These local currency decreases were partially offset by a $42.8 million increase in cash and cash equivalents, a $13.5 million increase in inventory, related to a lower than expected sell through, a $11.5 million increase in accounts receivable due to the level and timing of sales around the end of each period as well as higher overdue amounts.

On June 9, 2015, the Company and its wholly owned subsidiary Tupperware Nederland B.V. ( the “Subsidiary Borrower” ), formerly known as Tupperware International Holdings B.V. (the “Subsidiary Borrower”), entered into Amendment No. 2 (the "Amendment”) to their multicurrency Amended and Restated Credit Agreement dated September 11, 2013, as amended by Amendment No. 1 dated June 2, 2014 (as so amended, the “Credit Agreement”). The Credit Agreement makes available to the Company and the Subsidiary Borrower a committed five-year credit facility in an aggregate amount of $600 million (the “Facility Amount”). The Credit Agreement provides (i) a revolving credit facility, available up to the full amount of the Facility Amount, (ii) a letter of credit facility, available up to $50 million of the Facility Amount, and (iii) a swingline facility, available up to $100 million of the Facility Amount. Each of such facilities is fully available to the Company and is available to the Subsidiary Borrower up to an aggregate amount not to exceed $325 million. The Company is permitted to increase, on up to three occasions, the Facility Amount by a total of up to $200 million (for a maximum aggregate Facility Amount of $800 million), subject to certain conditions including the agreement of the lenders. As of December 30, 2017,29, 2018, the Company had total borrowings of $131.0$283.9 million outstanding under its Credit Agreement, with $96.1$186.8 million of that amount denominated in euros.

The Company routinely increases its revolver borrowings under the Credit Agreement during each quarter to fund operating, investing and financing activities and uses cash available at the end of each quarter to temporarily reduce borrowing levels. As a result, the Company incurs more interest expense and has higher foreign exchange exposure on the value of its cash and debt during each quarter than would relate solely to the quarter end balances.

Loans taken under the Credit Agreement bear interest under a formula that includes, at the Company's option, one of three different base rates, plus an applicable spread. The Company generally selects the London Interbank Offered Rate ("LIBOR"). As of December 30, 2017,29, 2018, the Credit Agreement dictated a base rate spread of 150 basis points, which gave the Company a weighted average interest rate on LIBOR based borrowings of 1.922.32 percent on borrowings under the Credit Agreement. The LIBOR rate used in determining the interest rate cannot be below zero, which it was throughout 20172018 for euro based borrowings.

The Credit Agreement contains customary covenants, including financial covenants requiring minimum interest coverage and allowing a maximum amount of leverage. As of December 30, 2017,29, 2018, and currently, the Company had considerable cushion under its financial covenants. However, economic conditions, adverse changes in foreign exchange rates, lower than foreseen sales, profit and/or cash flow generation, including from restructuring actions, the payment of dividends, the ability to access cash generated internationally in Brazil, China, Indonesia, Korea,Malaysia, Mexico, South Africa or elsewhere, share repurchases or the occurrence of other events discussed under “Forward Looking Statements” in this Part II, Item 7 and in the Company’s other reports filed with the SEC could impact the Company’s ability to comply with these covenants.

See Note 7 to the Consolidated Financial Statements in Part II, Item 8 of this Report for further details regarding the Company's debt.

The Company monitors the financial stability of third-party depository institutions that hold its cash and cash equivalents and diversifies its cash and cash equivalents among counterparties, which minimizes exposure to any one of these entities. Furthermore, the Company is exposed to financial market risk resulting from changes in interest rates, foreign currency rates and the possible liquidity and credit risks of its counterparties. The Company believes that it has sufficient liquidity to fund its working capital, and capital spending needs, current and anticipated restructuring actions and its current dividend. This liquidity includes its year-end 20172018 cash and cash equivalents balance of $144.1$149.0 million, cash flows from operating activities, and access to its $600 million Credit Agreement and other uncommitted lines of credit. As of December 30, 2017,29, 2018, the Company had $553.6$396.8 million of unused lines of credit, including $467.5$314.6 million available under its Credit Agreement and $86.1$82.2 million available under other uncommitted lines of credit. The Company has not experienced any limitations on its ability to access its committed facility.

The Company’s most significant foreign currency exposures are to the Brazilian real, Chinese renminbi, euro, Indonesian rupiah, Malaysian ringgit, Mexican peso and Mexican peso.South African rand. Business units in which the Company generated at least $100 million of sales in 20172018 included Brazil, China, Fuller Mexico, Germany, Indonesia, Tupperware Mexico and Tupperwarethe United States and Canada. Of these units, sales by Brazil, China and Tupperwarethe United States and Canada exceeded $200 million, while sales in Brazil exceeded $300 million. A significant downturn in the Company’s business in these units would adversely impact its ability to generate operating cash flows. Operating cash flows would also be adversely impacted by significant difficulties in the additions, retention and activity of the Company’s independent sales force or the success of new products, promotional programs and/or possibly changes in sales force compensation programs.

Net cash provided by operating activities in 2017 was $217.0$217.4 million, compared with $238.6$237.0 million in 2016. The unfavorable comparison was primarily due to a decrease in reported net income, notwithstanding the non-cash tax provision elements in connection with the enactment of the Tax Act and non-cash re-engineering and impairment charges. Additionally, there were cash outflows from an increase in accounts receivable, due to the level and timing of sales around the end of each period, as well as higher overdue amounts, and inventory, related to a lower than expected sell through. These outflows were partially offset by increases in accounts payable and accrued liabilities, primarily related to the Company's re-engineering program.

In 2018, 2017 2016 and 2015,2016, the Company spent $75.4 million, $72.3 million $61.6 million and $61.1$61.6 million, respectively, on capital expenditures. The most significant type of spending in all years wasIn 2018, 2017 and 2016, capital expenditures included $19.9 million, $18.5 million, and $18.3 million, respectively, for molds for new products. The Company also spent $23products and $13.7 million, $17$23.1million, and $17.1 million, and $18 million, in each respective yearrespectively, for the expansion of manufacturing capacity and supply chain capabilities, most significantly in Brazil. The Company also spent significant capitalBrazil and Mexico and $20.2 million, $10.7 million, and $8.2 million, respectively, on various global information technology projects and marketing offices to support operations as well as for vehicles in South Africa.projects. In addition, the Company also spent $9.2 million, $7.5 million $3.8 million and $2.4$3.8 million, in each respective year forrelated to land development near its Orlando headquarters.

Partially offsetting the capital spending were proceeds from the sale of long-term assets of $40.7 million, $14.7 million and $35.9 million in 2018, 2017 and $18.0 million2016, respectively. In 2018, there was a transaction associated with a distribution facility in 2017, 2016 and 2015, respectively, primarily reflectingJapan, the Beauticontrol headquarters in Texas was sold, along with transactions associated with land near the Company's Orlando, Florida headquarters.headquarters, which also occurred in 2017 and 2016. In all years, there were also proceeds related to the sale of vehicles that had been purchased for the sales force, primarily in South Africa.

In 2018, 2017 2016 and 2015,2016, the Company made net payments on long-term debt of $1.9 million, $2.0 million $2.2 million and $2.6$2.2 million, respectively, mainly related to its scheduled lease payments. In addition, the Company had a net inflowinflows of $162.1 million and $15.6 million and outflowsan outflow of $52.0 million and $36.4 million for changes in borrowings under its revolving credit agreements in each of these respective periods.

During 2018, 2017 2016 and 2015,2016, the Company declared dividends of $2.72 per share of common stock totaling $137.8 million, $139.5 million $138.8 million and $138.0$138.8 million, respectively.

Going forward, the Company expects its Board of Directors to evaluate its dividend rate annually with its declaration in the first quarter of each year. In the first quarter of 2018,2019, the Board of Directors voted to keep the regulardeclared a quarterly dividend rate even withof $0.27 per share, versus $0.68 per share that had been declared each quarter in 2018, 2017 and 2016, at $0.68.2016. The payment of a dividend on common shares is a discretionary decision and subject to a significant event that would require cash, the ability to continue to comply with debt covenants, cash needed to finance operations, making necessary investments in the future growth of the business, required or discretionary debt repayment obligations, the impacts of changes in foreign currency exchange rates, the ability to access internationally generated cash or other cash needs, as well as compliance with Delaware law regarding capital surplus. As well, if there is an event requiring the use of cash, such as a strategic acquisition, the Company would need to reevaluate whether to maintain its dividend payout.

During 2018, 2017 2016 and 2015,2016, the Company received proceeds of $0.3 million, $11.8 million $0.8 million and $16.1$0.8 million, respectively, related to the exercise of stock options. The corresponding shares were issued out of the Company’s balance held in treasury.

In January 2017, the Company's Board of Directors extended its existing share repurchase authorization for open market share repurchases, which allows up to $2.0 billion to be spent, through February 1, 2020. Under this program, the Company repurchased 2.6 million shares for a total of $100 million in 2018. There were no share repurchases under this program duringin 2017 2016 and 2015.2016. Since inception of the program in May 2007, and through December 30, 2017,29, 2018, the Company has repurchased 21.323.8 million shares at an aggregate cost of $1.29$1.39 billion. Going forward, inIn setting share repurchase amounts, the Company expects to target over time a debt-to-EBITDA ratio of 1.75below 2.0 times consolidated funded debt (as defined in the Company's Credit Agreement). Based on; however, it has indicated it may opportunistically repurchase in 2019 up to $100 million worth of shares, notwithstanding it expects its debt-to-EBITDA ratio to be above 2.0 times throughout the Company’s year-end 2017 debt level, its expected disbursements for dividends and its projected 2018 cash flow and its timing during the year, the Company does not currently plan to make open market share repurchases in 2018.year.

Employees are also allowed to use shares to pay withholding taxes, up to the minimum statutory amount, related to activity under all of the Company's stock incentive plans. For 2018, 2017 2016 and 2015,2016, the value of shares used for withholding taxes was $1.5 million, $2.5 million $1.7 million and $1.5$1.7 million, respectively, which is included as stock repurchases in the Consolidated Statements of Cash Flows.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon the Company’s Consolidated Financial Statements that have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the implementation of the following critical accounting policies are the most significantly affected by its judgments and estimates.

The Company maintains current receivable amounts with most of its independent distributors and sales force in certain markets. It also maintains long-term receivable amounts with certain of these customers. The Company regularly monitors and assesses its risk of not collecting amounts owed to it by customers. This evaluation is based upon an analysis of amounts current and past due, along with relevant history and facts particular to the customer. It is also based upon estimates of distributor business prospects, particularly related to the evaluation of the recoverability of long-term amounts due. This evaluation is performed by business unit and account by account, based upon historical experience, market penetration levels and similar factors. It also considers collateral of the customer that could be recovered to satisfy debts. The Company records its allowance for doubtful accounts based on the results of this analysis. The analysis requires the Company to make significant estimates and as such, changes in facts and circumstances could result in material changes in the allowance for doubtful accounts. The Company considers as past due any receivable balance not collected within its contractual terms.

The Company writes down its inventory for obsolescence or unmarketability in an amount equal to the difference between the cost of the inventory and estimated market value based upon expected future demand and pricing. The demand and pricing is estimated based upon the historical success of product lines as well as the projected success of promotional programs, new product introductions and the availability of new markets or distribution channels. The Company prepares projections of demand and pricing on an item by item basis for all of its products. If inventory on hand exceeds projected demand or the expected market value is less than the carrying value, the excess is written down to its net realizable value. However, if actual demand or the estimate of market value decreases, additional write-downs would be required.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets also are recognized for credit carryforwards. Deferred tax assets and liabilities are measured using the enacted rates applicable to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Tax Act reduced the U.S. corporate tax rate to 21 percent from 35 percent effective January 1, 2018. The value of the Company’s net deferred tax assets were reduced by an estimated $75 million with a corresponding net adjustment to its current year tax expense for the remeasurement of the Company’s U.S. net deferred to assets. The Tax Act also reduced the Company’s estimate of the amount of its foreign tax credits it would be able to utilize resulting in the recording of an additional valuation allowance of $189 million. After considering the valuation allowance as of

At December 29, 2018 and December 30, 2017, the Company’s Consolidated Balance Sheet included $10 million of deferred tax assets for future use of foreign tax credits.

Interest and penalties related to uncertain tax positions in the Company's global operations are recorded as a component of the provision for income taxes. Accrued interest and penalties were $7.3$5.5 million and $7.1$7.3 million as of December 30, 201729, 2018 and December 31, 2016,30, 2017, respectively. Interest and penalties included in the provision for income taxes totaled $1.8 million and $0.2 million for 2018 and $1.1 million for 2017, and 2016, respectively and no significant interest and penalties were included in the provision for income taxes for 2015.respectively.

The Company estimates that it may settle one or more foreign and domestic audits in the next twelve months that may result in a decrease in the amount of accrual for uncertain tax positions of up to $0.8$2.5 million. For the remaining balance as of December 30, 2017,29, 2018, the Company is not able to reliably estimate the timing or ultimate settlement amount. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment of valuation allowances against certain existing deferred tax assets. At this time, the Company is not able to make a reasonable estimate of the range of impact on the balance of unrecognized tax benefits or the impact on the effective tax rate related to these items.

The Company frequently makes promotional offers to its independent sales force to encourage them to meet specific goals or targets for sales levels, party attendance, addition of new sales force members or other business critical activities. The awards offered are in the form of product awards, special prizes or trips. The cost of these awards is recorded during the period over which the sales force qualifies for the award. These accruals require estimates as to the cost of the awards based upon estimates of achievement and actual cost to be incurred. The Company makes these estimates on a market by market and program by program basis. It considers the historical success of similar programs, current market trends and perceived enthusiasm of the sales force when the program is launched. During the promotion qualification period, actual results are monitored and appropriate changes to the original estimates are made when known.

The Company’s goodwill and intangible assets relate primarily to the December 2005 acquisition of the direct-to-consumer businesses of Sara Lee Corporation. The Company does not amortize its goodwill or indefinite-lived tradename intangible assets. Instead, the Company performs an annual impairment assessment of these assets, or more frequently if events or changes in circumstances indicate they may be impaired.

The Company records pension costs and the funded status of its defined benefit pension plans using the applicable accounting guidance for defined benefit pension and other post-retirement plans. This guidance requires that amounts recognized in the financial statements be determined on an actuarial basis. The measurement of the retirement obligations and costs of providing benefits under the Company’s pension plans involves various factors, including several assumptions. The Company believes the most critical of these assumptions are the discount rate and the expected long-term rate of return on plan assets.

The Company accounts for its post-retirement benefit plan in accordance with applicable accounting guidance, which requires that amounts recognized in financial statements be determined on an actuarial basis. This determination requires the selection of various assumptions, including a discount rate, to value benefit obligations. The Company determines the discount rate primarily by reference to rates of return on high-quality, long term corporate bonds that mature in a pattern similar to the expected payments to be made under the plan. The discount rate assumptions used by the Company to determine other post-retirement benefit expense were 3.5 percent for 2018, and 4.0 percent for 2017 and 2016, and 3.8 percent for 2015.2016. A change in discount rate of 50 basis points would not materially change the annual expense associated with the plan.

Under the new guidance, the contract is recognized whendefined as the price is fixed,order received from the title and risks and rewards of ownership have passed to theCompany's customer who, in most cases, is one of the Company’sCompany's independent distributors or a member of its independent sales force, and when collection is reasonably assured. Depending on the contractual arrangements for each business, revenueforce. Revenue is recognized upon either delivery or shipment,when control of the product passes to the customer, which is when titleupon shipment, and riskis recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. The Company elected to account for shipping and rewardshandling activities that occur after the customer has obtained control of ownership have passedthe product as an activity to fulfill the customer.promise to transfer the product rather than as an additional promised service. Generally, payment is either received in advance or in a relatively short period of time following shipment. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Discounts earned based on promotional programs in place, volume of purchases or other factorsContracts with customers are also estimated atevaluated to determine if there are separate performance obligations that are not yet met. These obligations generally relate to product awards to be subsequently fulfilled. When that is the time ofcase, revenue recognition and recorded as a reduction of that revenue.is deferred until each performance obligation is met.

The Company measures compensation cost for stock-based awards at fair value and recognizes compensation over the service period for awards expected to vest. The Company uses the Black-Scholes option-pricing model to value stock options, which requires the input of assumptions, including dividend yield, risk-free interest rate, the estimated length of time employees will retain their vested stock options before exercising them (expected term) and the estimated volatility of the Company's common stock price over the expected term.

Inflation, as measured by consumer price indices, has continued at a low level in most of the countries in which the Company operates, except in South America, particularly in Argentina and Venezuela. Refer to Note 1 to the Consolidated Financial Statements in Part II, Item 8 of this Report for a discussion of inflation.

Refer to Note 1 to the Consolidated Financial Statements in Part II, Item 8 of this Report for a discussion of new accounting pronouncements.

One of the Company's market risks is its exposure to the impact of interest rate changes on its borrowings. The Company has elected to manage this risk through the maturity structure of its borrowings and the currencies in which it borrows.

Loans taken under the Credit Agreement are of a short duration and bear interest under a formula that includes, at the Company's option, one of three different base rates, plus an applicable spread. The Company generally selects LIBOR as its base rate. Although the Company’s euro LIBOR base rate was below zero throughout 2017,2018, the base rate cannot be below zero under the Credit Agreement. As of December 30, 2017,29, 2018, the Credit Agreement dictated a spread of 150 basis points, which gave the Company a weighted average interest rate on its U.S. dollar and euro denominated LIBOR based borrowings under the Credit Agreement of 1.922.32 percent.

As of December 30, 2017,29, 2018, the Company had total borrowings of $131.0$283.9 million outstanding under its Credit Agreement, with $96.1$186.8 million denominated in euro. If short-term interest rates varied by 10 percent, which in the Company's case would mean short duration U.S. dollar and euro LIBOR, with all other variables remaining constant, the Company's annual interest expense would not be significantly impacted.

The Company routinely increases its revolver borrowings under the Credit Agreement during each quarter to fund operating, investing and financing activities and uses cash available at the end of each quarter to temporarily reduce borrowing levels. As a result, the Company incurs more interest expense and has higher foreign exchange exposure on the value of its cash and debt during each quarter than would relate solely to the quarter end balances.

A significant portion of the Company's sales and profit come from its international operations. Although these operations are geographically dispersed, which partially mitigates the risks associated with operating in particular countries, the Company is subject to the usual risks associated with international operations. These risks include local political and economic environments and relations between foreign and U.S. governments.

Another economic risk of the Company is exposure to changes in foreign currency exchange rates on the earnings, cash flows and financial position of its international operations. The Company is not able to project, in any meaningful way, the effect of these possible fluctuations on translated amounts or future earnings. This is due to the Company's constantly changing exposure to various currencies, the fact that all foreign currencies do not react in the same manner in relation to the U.S. dollar and the large number of currencies involved, although the Company's most significant income and cash flow exposures are to the Brazilian real, Chinese renminbi, euro, Indonesian rupiah, Malaysian ringgit, Mexican peso and Mexican peso.South African rand.

Although this currency risk is partially mitigated by the natural hedge arising from the Company's local product sourcing in many countries, a strengthening U.S. dollar generally has a negative impact on the Company. In response to this fact, the Company uses financial instruments, such as forward contracts, to hedge its exposure to certain foreign exchange risks associated with a portion of its investment in international operations. In addition to hedging against the balance sheet impact of changes in exchange rates, the hedge of investments in international operations also has the effect of hedging cash flow generated by those operations. The Company also hedges, with these instruments, certain other exposures to various currencies arising from amounts payable and receivable, non-permanent intercompany transactions and a portion of purchases forecasted for generally up to the following 15 months. The Company does not seek to hedge the impact of currency fluctuations on the translated value of the sales, profit or cash flow generated by its operations.

While the Company's derivatives that hedge a portion of its equity in its foreign subsidiaries and its fair value hedges of balance sheet risks all work together to mitigate its exposure to foreign exchange gains or losses, they result in an impact to operating cash flows as they are settled. The net cash flow impact of these currency hedges was an inflowinflows of $2.9 million and $0.1 million and outflowsan outflow of $2.7 million in 2018, 2017 and $17.0 million in 2017, 2016, and 2015, respectively.

The U.S. dollar equivalent of the Company's most significant net open forward contracts as of December 30, 201729, 2018 were to buy U.S. dollars worth $68.9 million and euro worth $23.7$176.5 million, and to sell euros worth $76.2 million and Mexican pesos worth $36.6$30.4 million. In agreements to sell foreign currencies in exchange for U.S. dollars, for example, an appreciating dollar versus the opposing currency would generate a cash inflow for the Company at settlement, with the opposite result in agreements to buy foreign currencies for U.S. dollars. The notional amounts change based upon changes in the Company's outstanding currency exposures. Based on rates existing as of December 30, 2017,29, 2018, the Company was in a net receivable position of $2.6$4.1 million related to its currency hedges under forward contracts. Currency fluctuations could have a significant impact on the Company's cash flow upon the settlement of its forward contracts. TheThrough the end of 2018, the Company recordsrecorded the impact of forward points in net interest expense.

A precise calculation of the impact of currency fluctuations is not practical since some of the contracts are between non-U.S. dollar currencies. The Company continuously monitors its foreign currency exposure and expects to enter into additional contracts to hedge exposure in the future. See further discussion regarding the Company's hedging activities for foreign currency in Note 8 to the Consolidated Financial Statements.

The Company is subject to credit risks relating to the ability of counterparties of hedging transactions to meet their contractual payment obligations. The risks related to creditworthiness and non-performance have been considered in the determination of fair value for the Company's foreign currency forward exchange contracts. The Company continues to closely monitor its counterparties and will take action, as appropriate and possible, to further manage its counterparty credit risk.

The Company has a program to sell land held for development around its Orlando, Florida headquarters. This program is exposed to the risks inherent in the real estate development process. Included among these risks is the ability to obtain all necessary government approvals, the success of attracting tenants for commercial or residential developments in the Orlando real estate market, obtaining financing and general economic conditions, such as interest rate increases. Based on the variety of factors that impact the Company's ability to close sales transactions, it cannot predict when the program will be completed.

Certain written and oral statements made or incorporated by reference from time to time by the Company or its representatives in this report other reports, filings with the SEC, press releases, conferences or otherwise are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this report or elsewhere that are not based on historical facts or information are forward-looking statements. Statements that include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future tense or conditionsconditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations at the time this report is filed with the SEC or, with respect to any documents or statements incorporated by reference, availableon the then current plans and expectations at the time such document was prepared or filed with the SEC.SEC, or statement was made. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those projected in forward-looking statements. Except as required by law, and as outlined below the Company undertakes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or changes to future results over time or otherwise. Such risks and uncertainties include, among others, the following:

Other than updating for changes in foreign currency exchange rates through its monthly website updates, the Company does not intend to update forward-looking information, except through its quarterly earnings releases, unless it expects diluted earnings per share for the current quarter, excluding items impacting comparability and changes versus its guidance of the impact of changes in foreign exchange rates, to be significantly below its previous guidance.

Investors should also be aware that while the Company does, from time to time, communicate with securities analysts, it is against the Company's policy to disclose to them any material non-public information or other confidential commercial information. Accordingly, it should not be assumed that the Company agrees with any statement or report issued by any analyst irrespective of the content of the confirming financial forecasts or projections issued by others.