Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | TUPPERWARE BRANDS CORP | |
Entity Central Index Key | 1008654 | |
Trading Symbol | TUP | |
Current Fiscal Year End Date | -14 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 28-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 49,843,563 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | ||
Net sales | $581.80 | $663.20 | ||
Cost of products sold | 191.6 | 221.6 | ||
Gross margin | 390.2 | 441.6 | ||
Delivery, sales and administrative expense | 313.4 | 344.5 | ||
Re-engineering and impairment charges | 16.2 | [1] | 2.3 | [1] |
Gains on disposal of assets | 0.6 | 1.8 | ||
Operating income | 61.2 | 96.6 | ||
Interest income | 0.5 | 0.7 | ||
Interest expense | 13.3 | 12.4 | ||
Other expense | 7.2 | 14.1 | ||
Income before income taxes | 41.2 | 70.8 | ||
Provision for income taxes | 11.7 | 18.6 | ||
Net income | $29.50 | $52.20 | ||
Earnings per share: | ||||
Basic | $0.59 | $1.04 | ||
Diluted | $0.59 | $1.02 | ||
Weighted-average shares outstanding: | ||||
Basic | 49.7 | 50.2 | ||
Diluted | 50.3 | 51.1 | ||
Dividends declared per common share | $0.68 | $0.68 | ||
[1] | (a)See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Net income | $29.50 | $52.20 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | -25.2 | -0.9 |
Deferred gain (loss) on cash flow hedges, net of tax provision (benefit) of ($0.4) and $0.2, respectively | -0.4 | 1.5 |
Pension and other post-retirement income, net of tax provision of $1.1 and $0.1, respectively | 2.9 | 0.3 |
Other comprehensive income (loss) | -22.7 | 0.9 |
Total comprehensive income | $6.80 | $53.10 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Deferred gain (loss) on cash flow hedges, tax (benefit) provision | ($0.40) | $0.20 |
Pension and other post retirement costs, tax (provision) benefit | ($1.10) | ($0.10) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $83.90 | $77 |
Accounts receivable, less allowances of $34.6 and $34.5, respectively | 167 | 168.1 |
Inventories | 300.7 | 306 |
Deferred income tax benefits, net | 115.4 | 118.8 |
Non-trade amounts receivable, net | 59.4 | 61.8 |
Prepaid expenses and other current assets | 27.4 | 21 |
Total current assets | 753.8 | 752.7 |
Deferred income tax benefits, net | 411.1 | 416.7 |
Property, plant and equipment, net | 264.7 | 290.3 |
Long-term receivables, less allowances of $11.6 and $13.1, respectively | 15 | 17.3 |
Trademarks and tradenames, net | 99.7 | 104.2 |
Other intangible assets, net | 1.1 | 1.5 |
Goodwill | 161.8 | 164.7 |
Other assets, net | 26 | 30.5 |
Total assets | 1,733.20 | 1,777.90 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 97.1 | 142.8 |
Short-term borrowings and current portion of long-term debt and capital lease obligations | 268.5 | 219.3 |
Accrued liabilities | 374.1 | 383.2 |
Total current liabilities | 739.7 | 745.3 |
Long-term debt and capital lease obligations | 609.9 | 612.1 |
Other liabilities | 218.4 | 234.7 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 200,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized; 63,607,090 shares issued | 0.6 | 0.6 |
Paid-in capital | 189.8 | 190.7 |
Retained earnings | 1,340.90 | 1,348.20 |
Treasury stock, 13,763,527 and 13,924,568 shares, respectively, at cost | -934.7 | -945 |
Accumulated other comprehensive loss | -431.4 | -408.7 |
Total shareholders' equity | 165.2 | 185.8 |
Total liabilities and shareholders' equity | $1,733.20 | $1,777.90 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $34.60 | $34.50 |
Long-term receivables, allowances | $11.60 | $13.10 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 63,607,090 | 63,607,090 |
Treasury stock, shares | 13,763,527 | 13,924,568 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Operating Activities: | ||
Net income | $29.50 | $52.20 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15.4 | 15.7 |
Unrealized foreign exchange loss | 7 | 13.4 |
Equity compensation | 3.8 | 5 |
Amortization of deferred debt costs | 0.2 | 0.2 |
Net gains on disposal of assets | -0.6 | -1.8 |
Provision for bad debts | 3.2 | 2.7 |
Write-down of inventories | 4.2 | 6.3 |
Non-cash impact of re-engineering and impairment costs | 13.5 | 0.4 |
Net change in deferred income taxes | -11.6 | -8.7 |
Excess tax benefits from share-based payment arrangements | -0.8 | -5.8 |
Changes in assets and liabilities: | ||
Accounts and notes receivable | -12.6 | -32.2 |
Inventories | -16.2 | -19.3 |
Non-trade amounts receivable | -1.4 | -6.9 |
Prepaid expenses | -7.8 | -12.1 |
Other assets | -0.2 | -1.7 |
Accounts payable and accrued liabilities | -33.8 | -3.6 |
Income taxes payable | -7 | -16.9 |
Other liabilities | -0.3 | 0 |
Net cash impact from hedging activity | 3.6 | -4.7 |
Other | 0.1 | -0.5 |
Net cash used in operating activities | -11.8 | -18.3 |
Investing Activities: | ||
Capital expenditures | -13.9 | -14.4 |
Proceeds from disposal of property, plant and equipment | 2.1 | 4.2 |
Net cash used in investing activities | -11.8 | -10.2 |
Financing Activities: | ||
Dividend payments to shareholders | -35.7 | -32.6 |
Proceeds from exercise of stock options | 3.1 | 4.8 |
Repurchase of common stock | -0.9 | -16.9 |
Repayment of capital lease obligations | -0.9 | -1 |
Net change in short-term debt | 71.7 | 58.5 |
Excess tax benefits from share-based payment arrangements | 0.8 | 5.8 |
Net cash provided by financing activities | 38.1 | 18.6 |
Effect of exchange rate changes on cash and cash equivalents | -7.6 | -17.8 |
Net change in cash and cash equivalents | 6.9 | -27.7 |
Cash and cash equivalents at beginning of year | 77 | 127.3 |
Cash and cash equivalents at end of period | $83.90 | $99.60 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 28, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation: The condensed consolidated financial statements include the accounts of Tupperware Brands Corporation and its subsidiaries, collectively “Tupperware” or the “Company”, with all intercompany transactions and balances having been eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with the audited 2014 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 27, 2014. | |
Certain prior year amounts have been reclassified to conform with current year presentation. | |
These condensed consolidated financial statements are unaudited and have been prepared following the rules and regulations of the United States Securities and Exchange Commission and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of the results for the interim periods. Certain information and note disclosures normally included in the balance sheet, statements of income, comprehensive income and cash flows prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. | |
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. | |
Venezuela Foreign Currency Translation: The exchange rate used in translating the Company’s operating activity in Venezuela in the first quarter of 2014 was 6.3 bolivars to the U.S. dollar. In February 2015, the Venezuelan government launched an overhaul of its foreign currency exchange structure for obtaining U.S. dollars, introducing the Simadi mechanism. The Company used 172.0 bolivars to the U.S. dollar to translate its February 2015 operating activity and 190.0 to translate March 2015 operating activity and the end of March balance sheet of Venezuela. The Company currently expects to use the Simadi rate to translate future operating activity. The pretax impact in the first quarter of 2015 of re-measuring net monetary assets and recording in cost of sales inventory at the exchange rate when it was purchased or manufactured rather than when it was sold was $9.3 million. In the first quarter of 2014, there was a $13.4 million pretax loss recorded in connection with the remeasurement of net monetary assets in Venezuela. The amounts related to remeasurement are included in other expense. | |
As of March 28, 2015, the Company had approximately $2 million of net monetary assets in Venezuela, which were of a nature that would generate income or expense associated with future exchange rate fluctuations versus the U.S. dollar. |
Shipping_and_Handling_Costs
Shipping and Handling Costs | 3 Months Ended |
Mar. 28, 2015 | |
Shipping and Handling Costs [Abstract] | |
Shipping and Handling Costs | Shipping and Handling Costs |
The cost of products sold line item includes costs related to the purchase and manufacture of goods sold by the Company. Among these costs are inbound freight charges, purchasing and receiving costs, inspection costs, depreciation expense, internal transfer costs and warehousing costs of raw material, work in process and packing materials. The warehousing and distribution costs of finished goods are included in delivery, sales and administrative expense (“DS&A”). Distribution costs are comprised of outbound freight and associated labor costs. Fees billed to customers associated with the distribution of products are classified as revenue. The distribution costs included in DS&A expense for the first quarters of 2015 and 2014 were $34.7 million and $38.7 million, respectively. |
Promotional_Costs
Promotional Costs | 3 Months Ended |
Mar. 28, 2015 | |
Promotional Costs [Abstract] | |
Promotional Costs | Promotional Costs |
The Company frequently makes promotional offers to members of its independent sales force to encourage them to fulfill specific goals or targets for sales levels, party attendance, recruiting of new sales force members or other business-critical functions. The awards offered are in the form of cash, product awards, special prizes or trips. | |
The Company accrues for the costs of these awards during the period over which the sales force qualifies for the award and reports these costs primarily as a component of DS&A expense. These accruals require estimates as to the cost of the awards, based upon estimates of achievement and actual cost to be incurred. During the qualification period, actual results are monitored, and changes to the original estimates are made when known. Promotional and other sales force compensation expenses included in DS&A expense totaled $102.0 million and $113.8 million for the first quarters of 2015 and 2014, respectively. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
Inventories | Inventories | |||||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Finished goods | $ | 235.2 | $ | 242.5 | ||||
Work in process | 26.2 | 26.8 | ||||||
Raw materials and supplies | 39.3 | 36.7 | ||||||
Total inventories | $ | 300.7 | $ | 306 | ||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income Per Common Share | Net Income Per Common Share | |||||||
Basic per share information is calculated by dividing net income by the weighted average number of shares outstanding. Diluted per share information is calculated by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. | ||||||||
The elements of the earnings per share computations were as follows: | ||||||||
13 weeks ended | ||||||||
(In millions, except per share amounts) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Net income | $ | 29.5 | $ | 52.2 | ||||
Weighted-average shares of common stock outstanding | 49.7 | 50.2 | ||||||
Common equivalent shares: | ||||||||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.6 | 0.9 | ||||||
Weighted-average common and common equivalent shares outstanding | 50.3 | 51.1 | ||||||
Basic earnings per share | $ | 0.59 | $ | 1.04 | ||||
Diluted earnings per share | $ | 0.59 | $ | 1.02 | ||||
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 0.6 | 0.4 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||||||
(In millions, net of tax) | Foreign Currency Items | Cash Flow Hedges | Pension and Other Post-retirement Items | Total | ||||||||||||
Balance at December 27, 2014 | $ | (368.3 | ) | $ | 7.8 | $ | (48.2 | ) | $ | (408.7 | ) | |||||
Other comprehensive income (loss) before reclassifications | (25.2 | ) | 3 | 2.4 | (19.8 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3.4 | ) | 0.5 | (2.9 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (25.2 | ) | (0.4 | ) | 2.9 | (22.7 | ) | |||||||||
Balance at March 28, 2015 | $ | (393.5 | ) | $ | 7.4 | $ | (45.3 | ) | $ | (431.4 | ) | |||||
(In millions, net of tax) | Foreign Currency Items | Cash Flow Hedges | Pension and Other Post-retirement Items | Total | ||||||||||||
Balance at December 28, 2013 | $ | (283.1 | ) | $ | 2.2 | $ | (35.9 | ) | $ | (316.8 | ) | |||||
Other comprehensive income (loss) before reclassifications | (0.9 | ) | 2.8 | — | 1.9 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (1.3 | ) | 0.3 | (1.0 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (0.9 | ) | 1.5 | 0.3 | 0.9 | |||||||||||
Balance at March 29, 2014 | $ | (284.0 | ) | $ | 3.7 | $ | (35.6 | ) | $ | (315.9 | ) | |||||
Pretax amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of net gains of $4.3 million and $1.7 million for the first quarters of 2015 and 2014, respectively. Associated with these items were tax provisions of $0.9 million and $0.4 million, respectively. See Note 10 for further discussion of derivatives. | ||||||||||||||||
For the first quarters of 2015 and 2014, pretax amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of prior service benefits of $0.3 million and $0.2 million, respectively, and actuarial losses of $1.0 million and $0.6 million, respectively. The tax benefit associated with these items was $0.2 million and $0.1 million, respectively. See Note 12 for further discussion of pension and other post-retirement benefit costs. |
Reengineering_and_Impairment_C
Re-engineering and Impairment Costs | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Restructuring Charges [Abstract] | ||||||||
Re-engineering and Impairment Costs | Re-engineering and Impairment Costs | |||||||
The Company recorded $2.7 million and $2.3 million in re-engineering charges during the first quarters of 2015 and 2014, respectively. In both years, these charges were primarily related to severance costs incurred for headcount reductions in several of the Company’s operations in connection with changes in its management and organizational structures, and in 2014, the decision to cease operating the Armand Dupree business in the United States. | ||||||||
The balances included in accrued liabilities related to re-engineering and impairment charges as of March 28, 2015 and December 27, 2014 were as follows: | ||||||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Beginning of the year balance | $ | 2.4 | $ | 2.6 | ||||
Provision | 2.7 | 11 | ||||||
Non-cash charges | (0.1 | ) | (1.8 | ) | ||||
Cash expenditures: | ||||||||
Severance | (2.0 | ) | (7.1 | ) | ||||
Other | (0.4 | ) | (2.3 | ) | ||||
End of period balance | $ | 2.6 | $ | 2.4 | ||||
The accrual balance as of March 28, 2015, related primarily to severance payments to be made by the end of the second quarter of 2015. In connection with the decision to cease operating the Armand Dupree business in the United States, the Company recorded $1.6 million in cost of sales for inventory obsolescence during the first quarter of 2014. | ||||||||
In February 2015, the Venezuelan government launched an overhaul of its foreign currency exchange structure and created a new exchange mechanism called Simadi that has provided an exchange rate significantly lower than the rate available to the Company under the previous SICAD 2 mechanism. As a result, and based on the perceived impact of this change to the operations of its Venezuelan unit, the Company deemed this change to be a triggering event to evaluate the $15.7 million of long-term fixed assets in Venezuela. This evaluation involved performing an undiscounted cash flow analysis to determine if the carrying value of the assets were recoverable and greater than fair value. The Company considered many economic and operating factors, including uncertainty surrounding the interpretation and enforcement of certain product pricing restrictions in Venezuela, the inability to obtain the necessary raw materials locally to meet production demands and the significant decline in the global price of oil. Due to the decline of the global price of oil, the Venezuelan government has not made U.S. dollars widely available through any of the exchange mechanisms it has had in place. Given the devaluation of the Venezuelan bolivar compared to the U.S. dollar, and the lack of U.S dollars available to use for the purchase of raw materials from on-going operations, the Company does not believe it will be able to operate the business profitably. As a result, the Company concluded that the carrying value of the long-term fixed assets in Venezuela were not recoverable. The Company then estimated the fair value of the long-term fixed assets using estimated selling prices available in Venezuela. The primary assets that were considered to continue to maintain a marketable value in Venezuela included commercial office space, a show room and parking spaces. As a result of this evaluation in the first quarter of 2015, the Company recorded an impairment charge of $13.5 million to reduce the long-term fixed asset carrying value in Venezuela to the estimated fair value of $2.2 million, which is considered a non-recurring Level 3 measurement within the fair value hierarchy. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information | Segment Information | |||||||
The Company manufactures and distributes a broad portfolio of products, primarily through independent direct sales consultants. Certain operating segments have been aggregated based upon consistency of economic substance, geography, products, production process, class of customers and distribution method. | ||||||||
The Company's reportable segments include the following: | ||||||||
Europe | Primarily design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware® brand. Europe also includes Avroy Shlain®, which sells beauty and personal care products. Asia Pacific also sells beauty and personal care products in some of its units under the NaturCare®, Nutrimetics® and Fuller® brands. | |||||||
Asia Pacific | ||||||||
Tupperware North America | ||||||||
Beauty North America | Premium cosmetics, skin care and personal care products marketed under the BeautiControl® brand in the United States, Canada and Puerto Rico and Fuller Cosmetics® brands in Mexico and Central America. | |||||||
South America | Both housewares and beauty products under the Fuller®, Nutrimetics®, Nuvo® and Tupperware® brands. | |||||||
Worldwide sales of beauty and personal care products totaled $113.1 million and $127.7 million in the first quarters of 2015 and 2014, respectively. | ||||||||
13 weeks ended | ||||||||
(In millions) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Net sales: | ||||||||
Europe | $ | 171.7 | $ | 213.3 | ||||
Asia Pacific | 191.7 | 199 | ||||||
Tupperware North America | 79.5 | 81.5 | ||||||
Beauty North America | 62.9 | 73.5 | ||||||
South America | 76 | 95.9 | ||||||
Total net sales | $ | 581.8 | $ | 663.2 | ||||
Segment profit (loss): | ||||||||
Europe | $ | 29.3 | $ | 40.3 | ||||
Asia Pacific | 39 | 40.9 | ||||||
Tupperware North America | 13 | 13.6 | ||||||
Beauty North America (a) | (0.3 | ) | (0.7 | ) | ||||
South America | 3.2 | 3.4 | ||||||
Total segment profit | $ | 84.2 | $ | 97.5 | ||||
Unallocated expenses | (14.6 | ) | (14.4 | ) | ||||
Re-engineering and impairment charges (a) | (16.2 | ) | (2.3 | ) | ||||
Gains on disposal of assets | 0.6 | 1.8 | ||||||
Interest expense, net | (12.8 | ) | (11.8 | ) | ||||
Income before taxes | $ | 41.2 | $ | 70.8 | ||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Identifiable assets: | ||||||||
Europe | $ | 307.8 | $ | 337.3 | ||||
Asia Pacific | 323.3 | 321.4 | ||||||
Tupperware North America | 140.1 | 137.1 | ||||||
Beauty North America | 308 | 317 | ||||||
South America | 111.8 | 131.1 | ||||||
Corporate | 542.2 | 534 | ||||||
Total identifiable assets | $ | 1,733.20 | $ | 1,777.90 | ||||
_________________________ | ||||||||
(a) | See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt
Debt | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Debt Obligations | ||||||||
(In millions) | March 28, 2015 | December 27, 2014 | ||||||
Fixed rate Senior Notes due 2021 | $ | 599.2 | $ | 599.2 | ||||
Five year Revolving Credit Agreement (a) | 266 | 206.9 | ||||||
Belgium facility capital lease | 12 | 13.9 | ||||||
Other | 1.2 | 11.4 | ||||||
Total debt obligations | $ | 878.4 | $ | 831.4 | ||||
____________________ | ||||||||
(a) | $175.9 million denominated in euros | |||||||
Credit Agreement | ||||||||
At March 28, 2015, the Company had $652.6 million of unused lines of credit, including $380.3 million under the committed, secured Credit Agreement, and $272.3 million available under various uncommitted lines around the world. | ||||||||
As of March 28, 2015, the Company had a weighted average interest rate on LIBOR based borrowings of 1.52 percent under the Credit Agreement. | ||||||||
The Credit Agreement has customary financial covenants related to interest coverage and leverage. These restrictions are not expected to impact the Company's operations. As of March 28, 2015, and currently, the Company had considerable cushion under its financial covenants. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||
The Company is exposed to fluctuations in foreign currency exchange rates on the earnings, cash flows and financial position of its international operations. Although this currency risk is partially mitigated by the natural hedge arising from the Company's local manufacturing in many markets, a strengthening U.S. dollar generally has a negative impact on the Company. In response to this fact, the Company uses financial instruments to hedge certain of its exposures and to manage the foreign exchange impact to its financial statements. At its inception, a derivative financial instrument used for hedging is designated as a fair value, cash flow or net equity hedge. | ||||||||||||||||||||||||||
Fair value hedges are entered into with financial instruments such as forward contracts, with the objective of limiting exposure to certain foreign exchange risks primarily associated with accounts payable and non-permanent intercompany transactions. For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings. In assessing hedge effectiveness, the Company excludes forward points, which are considered to be a component of interest expense. The forward points on fair value hedges resulted in pretax gains of $2.8 million and $2.4 million in the first quarters of 2015 and 2014, respectively. | ||||||||||||||||||||||||||
The Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as cash flow hedges. At initiation, the Company's cash flow hedge contracts are for periods ranging from one to fifteen months. The effective portion of the gain or loss on the hedging instrument is recorded in other comprehensive income and is reclassified into earnings as the transactions being hedged are recorded. As such, the balance at the end of the reporting period in other comprehensive income, related to cash flow hedges, will be reclassified into earnings within the next twelve months. The associated asset or liability on the open hedges is recorded in other current assets or accrued liabilities, as applicable. In assessing hedge effectiveness, the Company excludes forward points, which are included as a component of interest expense. | ||||||||||||||||||||||||||
The Company also uses financial instruments, such as forward contracts and certain euro denominated borrowings under the Company's Credit Agreement, to hedge a portion of its net equity investment in international operations and classifies these as net equity hedges. Changes in the value of these financial instruments, excluding any ineffective portion of the hedges, are included in foreign currency translation adjustments within accumulated other comprehensive loss. The Company recorded a $19.5 million net gain associated with net equity hedges in other comprehensive income, net of tax, in the first quarter of 2015, and a net loss of $3.3 million associated with such hedges in the first quarter of 2014. Due to the permanent nature of the investments, the Company does not anticipate reclassifying any portion of these amounts to the income statement in the next twelve months. In assessing hedge effectiveness, the Company excludes forward points, which are included as a component of interest expense. | ||||||||||||||||||||||||||
While the Company's net equity and fair value hedges of non-permanent intercompany balances mitigate its exposure to foreign exchange gains or losses, they result in an impact to operating cash flows as they are settled, whereas in some cases the hedged items do not generate offsetting cash flows. The net cash flow impact of these currency hedges was an inflow of $3.6 million and an outflow of $4.7 million for the first quarters of 2015 and 2014, respectively. | ||||||||||||||||||||||||||
The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. As of March 28, 2015 and December 27, 2014, the notional amounts of outstanding forward contracts to purchase currencies were $101.8 million and $185.1 million, respectively, and the notional amounts of outstanding forward contracts to sell currencies were $110.0 million and $184.2 million, respectively. As of March 28, 2015, the notional values of the largest positions outstanding were to purchase U.S. dollars $45.8 million and euro $29.3 million. | ||||||||||||||||||||||||||
The following table summarizes the Company's derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company's financial position as of March 28, 2015 and December 27, 2014. Fair values were determined based on third party quotations (Level 2 fair value measurement): | ||||||||||||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||||||||
Derivatives designated as hedging instruments (in millions) | Balance sheet location | Mar 28, | Dec 27, | Balance sheet location | Mar 28, | Dec 27, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Foreign exchange contracts | Non-trade amounts receivable | $ | 32 | $ | 35 | Accrued liabilities | $ | 37.8 | $ | 30.3 | ||||||||||||||||
The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the first quarters of 2015 and 2014: | ||||||||||||||||||||||||||
Derivatives designated as fair value hedges (in millions) | Location of gain or (loss) recognized in income on derivatives | Amount of gain or (loss) recognized in income on derivatives | Location of gain or (loss) recognized in income on related hedged items | Amount of gain or (loss) recognized in income on related hedged items | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Foreign exchange contracts | Other expense | $ | (24.7 | ) | $ | 1 | Other expense | $ | 25.1 | $ | (0.5 | ) | ||||||||||||||
The following table summarizes the impact of Company's hedging activities on comprehensive income for the first quarters of 2015 and 2014: | ||||||||||||||||||||||||||
Cash flow and net equity hedges (in millions) | Amount of gain or (loss) recognized in OCI (effective portion) | Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Location of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||
Cash flow hedging relationships | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Foreign exchange contracts | $ | 3.4 | $ | 3.4 | Cost of products sold | $ | 4.3 | $ | 1.7 | Interest expense | $ | (2.9 | ) | $ | (1.3 | ) | ||||||||||
Net equity hedging relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | 19.5 | (5.1 | ) | Other expense | — | — | Interest expense | (3.5 | ) | (3.6 | ) | |||||||||||||||
Euro denominated debt | 10.9 | — | Other expense | — | — | Other expense | — | — | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 28, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements |
Due to their short maturities or their insignificance, the carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable, accrued liabilities and short-term borrowings approximated their fair values at March 28, 2015 and December 27, 2014. The Company estimates that, based on current market conditions, the value of its 4.750% 2021 Senior Notes was $643.2 million at March 28, 2015, compared with the carrying value of $599.2 million. The higher fair value resulted from changes, since issuance, in the corporate bond market and investor preferences. The fair value of debt is classified as a Level 2 liability, and is estimated using quoted market prices as provided in secondary markets which consider the Company's credit risk and market related conditions. See Note 10 to the Consolidated Financial Statements for discussion of the Company's derivative instruments and related fair value measurements. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||
Retirement Benefit Plans | Retirement Benefit Plans | |||||||||||||
Components of net periodic benefit cost for the first quarters ended March 28, 2015 and March 29, 2014 were as follows: | ||||||||||||||
First Quarter | ||||||||||||||
Pension benefits | Postretirement benefits | |||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Service cost | $ | 2.8 | $ | 2.8 | $ | — | $ | — | ||||||
Interest cost | 1.8 | 2.2 | 0.2 | 0.4 | ||||||||||
Expected return on plan assets | (1.4 | ) | (1.6 | ) | — | — | ||||||||
Net amortization | 1 | 0.6 | (0.3 | ) | (0.2 | ) | ||||||||
Net periodic benefit cost | $ | 4.2 | $ | 4 | $ | (0.1 | ) | $ | 0.2 | |||||
During the first quarters of 2015 and 2014, approximately $0.7 million and $0.4 million, respectively, of pretax expenses were reclassified from other comprehensive income to a component of net periodic benefit cost. As they relate to foreign plans, the Company uses current exchange rates to make these reclassifications. The impact of exchange rate fluctuations is included on the net amortization line of the table above. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The effective tax rate for the first quarter of 2015 was 28.4 percent, compared with 26.2 percent for the comparable 2014 period. The higher 2015 rate was due to higher 2015 first quarter losses incurred related to the devaluation of the Venezuelan bolivar for which no tax benefit can be recognized. The effective tax rates are below the U.S. statutory rate primarily due to lower foreign effective tax rates. | |
As of March 28, 2015 and December 27, 2014, the Company's gross unrecognized tax benefit was $20.2 million and $22.5 million, respectively. The Company estimates that approximately $18.2 million of the unrecognized tax benefits, if recognized, would impact the effective tax rate. 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 $4.9 million and $6.5 million as of March 28, 2015 and December 27, 2014, respectively. During 2015, the accrual for uncertain tax positions decreased by $2.3 million primarily as a result of the Company agreeing to audit settlements with various jurisdictions, $1.3 million of which reduced the accrual for interest and penalties. The accrual for uncertain tax positions also increased for positions being taken in various global tax filings, and decreased due to the impact of foreign currency fluctuations. | |
The Company estimates that it may settle one or more foreign audits in the next twelve months that may result in a decrease in the amount of accrual for uncertain tax positions of up to $1.0 million. For the remaining balance as of March 28, 2015, 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. 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. The likelihood of realizing the benefit of deferred tax assets is assessed on an ongoing basis. This assessment requires estimates as to future operating results, as well as an evaluation of the effectiveness of the Company's tax planning strategies. 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. |
Statement_of_Cash_Flow_Supplem
Statement of Cash Flow Supplemental Disclosure | 3 Months Ended |
Mar. 28, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flow Supplemental Disclosure | Statement of Cash Flow Supplemental Disclosure |
Under the Company's stock incentive programs, employees are allowed to use shares retained by the Company to satisfy U.S. minimum statutorily required withholding taxes. In the first quarters of 2015 and 2014, 11,890 and 86,872 shares, respectively, were retained to fund withholding taxes, with values totaling $0.9 million and $6.9 million, respectively, which were included as a component of stock repurchases in the Consolidated Statements of Cash Flows. | |
During the first quarter of 2014, the Company entered into a joint venture with a real estate development partner. The Company contributed land to the joint venture in exchange for 50 percent ownership of the joint venture. The carrying value of the land was $3.1 million. The Company's ownership interest in the joint venture is accounted for using the equity method and was included in long-term other assets on the March 28, 2015 balance sheet at the carrying value of the contributed land. The Company does not expect to have any significant cash inflows or outflows related to the joint venture until such time as the joint venture completes and sells its development. | |
There were no capital lease arrangements initiated in the first quarters of 2015 and 2014. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Stock Based Compensation | Stock Based Compensation | ||||||||||
Stock option activity for 2015 is summarized in the following table: | |||||||||||
Shares subject to option | Weighted average exercise price per share | Aggregate intrinsic value | |||||||||
(in millions) | |||||||||||
Outstanding at December 27, 2014 | 2,192,136 | $48.95 | |||||||||
Granted | 7,132 | 62.4 | |||||||||
Expired / Forfeited | (2,139 | ) | 59.55 | ||||||||
Exercised | (78,995 | ) | 40.08 | ||||||||
Outstanding at March 28, 2015 | 2,118,134 | $49.31 | $47.60 | ||||||||
Exercisable at March 28, 2015 | 1,506,664 | $41.67 | $44.20 | ||||||||
The intrinsic value of options exercised totaled $2.2 million and $8.4 million in the first quarters of 2015 and 2014, respectively. | |||||||||||
The Company also has time-vested, performance-vested and market-vested awards. The activity for such awards in 2015 is summarized in the following table: | |||||||||||
Shares outstanding | Weighted average grant date fair value | ||||||||||
December 27, 2014 | 651,849 | $59.76 | |||||||||
Time-vested shares granted | 3,997 | 62.12 | |||||||||
Market-vested shares granted | 23,637 | 64.21 | |||||||||
Performance shares granted | 62,722 | 72.61 | |||||||||
Performance share adjustments | 490 | 79.34 | |||||||||
Vested | (236,169 | ) | 33.72 | ||||||||
Forfeited | (2,465 | ) | 72.78 | ||||||||
March 28, 2015 | 504,061 | $73.65 | |||||||||
Compensation expense related to the Company's stock based compensation is as follows: | |||||||||||
(In millions) | March 28, 2015 | March 29, 2014 | |||||||||
Stock options | $ | 0.6 | $ | 0.4 | |||||||
Time, performance and market vested awards | 3.2 | 4.6 | |||||||||
As of March 28, 2015, total unrecognized stock based compensation expense related to all stock based awards was $27.3 million, which is expected to be recognized over a weighted average period of 2.1 years. |
Allowance_for_LongTerm_Receiva
Allowance for Long-Term Receivables | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||
Allowance For Long-Term Receivables | Allowance for Long-Term Receivables | |||
As of March 28, 2015, $12.0 million of long-term receivables from both active and inactive customers were considered past due, the majority of which were reserved through the Company's allowance for uncollectible accounts. | ||||
The balance of the allowance for long-term receivables as of March 28, 2015 was as follows: | ||||
(In millions) | ||||
Balance at December 27, 2014 | $ | 13.1 | ||
Write-offs | (0.4 | ) | ||
Provision and reclassifications | 0.3 | |||
Currency translation adjustment | (1.4 | ) | ||
Balance at March 28, 2015 | $ | 11.6 | ||
Guarantor_Information
Guarantor Information | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Guarantor Information [Abstract] | ||||||||||||||||||||
Guarantor Information | Guarantor Information | |||||||||||||||||||
The Company's payment obligations under the Notes are fully and unconditionally guaranteed, on a senior secured basis, by the Guarantor. The guarantee is secured by certain "Tupperware" trademarks and service marks owned by the Guarantor. | ||||||||||||||||||||
Condensed consolidated financial information as of March 28, 2015 and December 27, 2014 and for the quarter-to-date periods ended March 28, 2015 and March 29, 2014 for Tupperware Brands Corporation (the "Parent"), Dart Industries Inc. (the "Guarantor") and all other subsidiaries (the "Non-Guarantors") is as follows. | ||||||||||||||||||||
Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent and Guarantor of the equity method of accounting to reflect ownership interests in subsidiaries that are eliminated upon consolidation. The Guarantor is 100% owned by the Parent, and there are certain entities within the Non-Guarantors classification which the Parent owns directly. There are no significant restrictions on the ability of either the Parent or the Guarantor from obtaining adequate funds from their respective subsidiaries by dividend or loan that should interfere with their ability to meet their operating needs or debt repayment obligations. | ||||||||||||||||||||
Consolidating Statement of Income | ||||||||||||||||||||
13 Weeks Ended March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | — | $ | 582 | $ | (0.2 | ) | $ | 581.8 | |||||||||
Other revenue | — | 28.3 | 5.2 | (33.5 | ) | — | ||||||||||||||
Cost of products sold | — | 5.2 | 218.1 | (31.7 | ) | 191.6 | ||||||||||||||
Gross margin | — | 23.1 | 369.1 | (2.0 | ) | 390.2 | ||||||||||||||
Delivery, sales and administrative expense | 3.5 | 17.9 | 294 | (2.0 | ) | 313.4 | ||||||||||||||
Re-engineering and impairment charges | — | — | 16.2 | — | 16.2 | |||||||||||||||
Gains on disposal of assets | — | — | 0.6 | — | 0.6 | |||||||||||||||
Operating income (loss) | (3.5 | ) | 5.2 | 59.5 | — | 61.2 | ||||||||||||||
Interest income | 7.2 | 6.5 | 1 | (14.2 | ) | 0.5 | ||||||||||||||
Interest expense | 12.8 | 8.1 | 6.6 | (14.2 | ) | 13.3 | ||||||||||||||
Income from equity investments in subsidiaries | 35.3 | 34.7 | — | (70.0 | ) | — | ||||||||||||||
Other expense | — | — | 7.2 | — | 7.2 | |||||||||||||||
Income before income taxes | 26.2 | 38.3 | 46.7 | (70.0 | ) | 41.2 | ||||||||||||||
Provision (benefit) for income taxes | (3.3 | ) | 1.6 | 13.4 | — | 11.7 | ||||||||||||||
Net income (loss) | $ | 29.5 | $ | 36.7 | $ | 33.3 | $ | (70.0 | ) | $ | 29.5 | |||||||||
Comprehensive income (loss) | $ | 6.8 | $ | 7.6 | $ | 4.8 | $ | (12.4 | ) | $ | 6.8 | |||||||||
Consolidating Statement of Income | ||||||||||||||||||||
13 Weeks Ended March 29, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | — | $ | 663.6 | $ | (0.4 | ) | $ | 663.2 | |||||||||
Other revenue | — | 24.8 | 5.8 | (30.6 | ) | — | ||||||||||||||
Cost of products sold | — | 5.8 | 244.4 | (28.6 | ) | 221.6 | ||||||||||||||
Gross margin | — | 19 | 425 | (2.4 | ) | 441.6 | ||||||||||||||
Delivery, sales and administrative expense | 4.6 | 15.1 | 327.2 | (2.4 | ) | 344.5 | ||||||||||||||
Re-engineering and impairment charges | — | — | 2.3 | — | 2.3 | |||||||||||||||
Gains on disposal of assets | — | — | 1.8 | — | 1.8 | |||||||||||||||
Operating income (loss) | (4.6 | ) | 3.9 | 97.3 | — | 96.6 | ||||||||||||||
Interest income | 0.1 | 7.2 | 1.1 | (7.7 | ) | 0.7 | ||||||||||||||
Interest expense | 9.6 | 4.5 | 6 | (7.7 | ) | 12.4 | ||||||||||||||
Income from equity investments in subsidiaries | 61.3 | 58.6 | — | (119.9 | ) | — | ||||||||||||||
Other expense | — | 0.1 | 14 | — | 14.1 | |||||||||||||||
Income before income taxes | 47.2 | 65.1 | 78.4 | (119.9 | ) | 70.8 | ||||||||||||||
Provision (benefit) for income taxes | (5.0 | ) | 2.6 | 21 | — | 18.6 | ||||||||||||||
Net income (loss) | $ | 52.2 | $ | 62.5 | $ | 57.4 | $ | (119.9 | ) | $ | 52.2 | |||||||||
Comprehensive income (loss) | $ | 53.1 | $ | 63.8 | $ | 61.1 | $ | (124.9 | ) | $ | 53.1 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 0.3 | $ | 83.6 | $ | — | $ | 83.9 | ||||||||||
Accounts receivable, net | — | — | 167 | — | 167 | |||||||||||||||
Inventories | — | — | 300.7 | — | 300.7 | |||||||||||||||
Deferred income tax benefits, net | 6.2 | 36.9 | 72.3 | — | 115.4 | |||||||||||||||
Non-trade amounts receivable, net | — | 42.3 | 91.4 | (74.3 | ) | 59.4 | ||||||||||||||
Intercompany receivables | 15.9 | 690 | 232.8 | (938.7 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 0.2 | 3.3 | 90 | (66.1 | ) | 27.4 | ||||||||||||||
Total current assets | 22.3 | 772.8 | 1,037.80 | (1,079.1 | ) | 753.8 | ||||||||||||||
Deferred income tax benefits, net | 98.2 | 188.5 | 124.4 | — | 411.1 | |||||||||||||||
Property, plant and equipment, net | — | 44.7 | 220 | — | 264.7 | |||||||||||||||
Long-term receivables, net | — | 0.1 | 14.9 | — | 15 | |||||||||||||||
Trademarks and tradenames, net | — | — | 99.7 | — | 99.7 | |||||||||||||||
Other intangible assets, net | — | — | 1.1 | — | 1.1 | |||||||||||||||
Goodwill | — | 2.9 | 158.9 | — | 161.8 | |||||||||||||||
Investments in subsidiaries | 1,084.70 | 418.4 | — | (1,503.1 | ) | — | ||||||||||||||
Intercompany notes receivable | 452.2 | 546.9 | 198.9 | (1,198.0 | ) | — | ||||||||||||||
Other assets, net | — | 0.8 | 155.3 | (130.1 | ) | 26 | ||||||||||||||
Total assets | $ | 1,657.40 | $ | 1,975.10 | $ | 2,011.00 | $ | (3,910.3 | ) | $ | 1,733.20 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Accounts payable | $ | — | $ | 2.4 | $ | 94.7 | $ | — | $ | 97.1 | ||||||||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 178.6 | — | 89.9 | — | 268.5 | |||||||||||||||
Intercompany payables | 549.1 | 233.7 | 155.9 | (938.7 | ) | — | ||||||||||||||
Accrued liabilities | 147 | 85.6 | 281.9 | (140.4 | ) | 374.1 | ||||||||||||||
Total current liabilities | 874.7 | 321.7 | 622.4 | (1,079.1 | ) | 739.7 | ||||||||||||||
Long-term debt and capital lease obligations | 599.2 | — | 10.7 | — | 609.9 | |||||||||||||||
Intercompany notes payable | 1.2 | 455.4 | 741.4 | (1,198.0 | ) | — | ||||||||||||||
Other liabilities | 17.1 | 155.2 | 176.2 | (130.1 | ) | 218.4 | ||||||||||||||
Shareholders' equity | 165.2 | 1,042.80 | 460.3 | (1,503.1 | ) | 165.2 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,657.40 | $ | 1,975.10 | $ | 2,011.00 | $ | (3,910.3 | ) | $ | 1,733.20 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
December 27, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 77 | $ | — | $ | 77 | ||||||||||
Accounts receivable, net | — | — | 168.1 | — | 168.1 | |||||||||||||||
Inventories | — | — | 306 | — | 306 | |||||||||||||||
Deferred income tax benefits, net | 6.2 | 36.9 | 75.7 | — | 118.8 | |||||||||||||||
Non-trade amounts receivable, net | 0.1 | 9.2 | 90.7 | (38.2 | ) | 61.8 | ||||||||||||||
Intercompany receivables | 11.8 | 755.2 | 227.6 | (994.6 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 0.5 | 1.8 | 101.8 | (83.1 | ) | 21 | ||||||||||||||
Total current assets | 18.6 | 803.1 | 1,046.90 | (1,115.9 | ) | 752.7 | ||||||||||||||
Deferred income tax benefits, net | 97.5 | 189.2 | 130 | — | 416.7 | |||||||||||||||
Property, plant and equipment, net | — | 43.7 | 246.6 | — | 290.3 | |||||||||||||||
Long-term receivables, net | — | 0.1 | 17.2 | — | 17.3 | |||||||||||||||
Trademarks and tradenames, net | — | — | 104.2 | — | 104.2 | |||||||||||||||
Other intangible assets, net | — | — | 1.5 | — | 1.5 | |||||||||||||||
Goodwill | — | 2.9 | 161.8 | — | 164.7 | |||||||||||||||
Investments in subsidiaries | 1,479.00 | 575 | — | (2,054.0 | ) | — | ||||||||||||||
Intercompany notes receivable | 48.4 | 554.1 | 236.5 | (839.0 | ) | — | ||||||||||||||
Other assets, net | — | 0.6 | 160.1 | (130.2 | ) | 30.5 | ||||||||||||||
Total assets | $ | 1,643.50 | $ | 2,168.70 | $ | 2,104.80 | $ | (4,139.1 | ) | $ | 1,777.90 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Accounts payable | $ | — | $ | 2.6 | $ | 140.2 | $ | — | $ | 142.8 | ||||||||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 108.8 | 2.3 | 108.2 | — | 219.3 | |||||||||||||||
Intercompany payables | 632 | 225 | 137.6 | (994.6 | ) | — | ||||||||||||||
Accrued liabilities | 66.4 | 144.1 | 294 | (121.3 | ) | 383.2 | ||||||||||||||
Total current liabilities | 807.2 | 374 | 680 | (1,115.9 | ) | 745.3 | ||||||||||||||
Long-term debt and capital lease obligations | 599.2 | — | 12.9 | — | 612.1 | |||||||||||||||
Intercompany notes payable | 32.5 | 204 | 602.5 | (839.0 | ) | — | ||||||||||||||
Other liabilities | 18.8 | 155.5 | 190.6 | (130.2 | ) | 234.7 | ||||||||||||||
Shareholders' equity | 185.8 | 1,435.20 | 618.8 | (2,054.0 | ) | 185.8 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,643.50 | $ | 2,168.70 | $ | 2,104.80 | $ | (4,139.1 | ) | $ | 1,777.90 | |||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
13 Weeks Ended March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 470.8 | $ | (29.3 | ) | $ | 42.7 | $ | (496.0 | ) | $ | (11.8 | ) | |||||||
Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (3.8 | ) | (10.1 | ) | — | (13.9 | ) | ||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 2.1 | — | 2.1 | |||||||||||||||
Net intercompany loans | (403.2 | ) | 70.4 | 29.1 | 303.7 | — | ||||||||||||||
Return of capital | — | 105.5 | — | (105.5 | ) | — | ||||||||||||||
Net cash provided by (used in) investing activities | (403.2 | ) | 172.1 | 21.1 | 198.2 | (11.8 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividend payments to shareholders | (35.7 | ) | — | — | — | (35.7 | ) | |||||||||||||
Dividend payments to parent | — | (400.0 | ) | (76.4 | ) | 476.4 | — | |||||||||||||
Proceeds from exercise of stock options | 3.1 | — | — | — | 3.1 | |||||||||||||||
Repurchase of common stock | (0.9 | ) | — | — | — | (0.9 | ) | |||||||||||||
Repayment of capital lease obligations | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net change in short-term debt | 80.5 | (2.3 | ) | (6.5 | ) | — | 71.7 | |||||||||||||
Excess tax benefits from share-based payment arrangements | 0.8 | — | — | — | 0.8 | |||||||||||||||
Net intercompany borrowings | (115.4 | ) | 260 | 139.5 | (284.1 | ) | — | |||||||||||||
Return of capital to parent | — | — | (105.5 | ) | 105.5 | — | ||||||||||||||
Net cash provided by (used in) financing activities | (67.6 | ) | (142.3 | ) | (49.8 | ) | 297.8 | 38.1 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.2 | ) | (7.4 | ) | — | (7.6 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 0.3 | 6.6 | — | 6.9 | |||||||||||||||
Cash and cash equivalents at beginning of year | — | — | 77 | — | 77 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.3 | $ | 83.6 | $ | — | $ | 83.9 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
13 Weeks Ended March 29, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1 | $ | (0.6 | ) | $ | (16.0 | ) | $ | (2.7 | ) | $ | (18.3 | ) | ||||||
Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (2.1 | ) | (12.3 | ) | — | (14.4 | ) | ||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 4.2 | — | 4.2 | |||||||||||||||
Net intercompany loans | 0.6 | 130.1 | 7.1 | (137.8 | ) | — | ||||||||||||||
Net cash provided by (used in) investing activities | 0.6 | 128 | (1.0 | ) | (137.8 | ) | (10.2 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividend payments to shareholders | (32.6 | ) | — | — | — | (32.6 | ) | |||||||||||||
Dividend payments to parent | — | — | (2.5 | ) | 2.5 | — | ||||||||||||||
Proceeds from exercise of stock options | 4.8 | — | — | — | 4.8 | |||||||||||||||
Repurchase of common stock | (16.9 | ) | — | — | — | (16.9 | ) | |||||||||||||
Repayment of capital lease obligations | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||
Net change in short-term debt | 59.4 | — | (0.9 | ) | — | 58.5 | ||||||||||||||
Excess tax benefits from share-based payment arrangements | 5.8 | — | — | — | 5.8 | |||||||||||||||
Net intercompany borrowings | (22.1 | ) | (126.1 | ) | 10.2 | 138 | — | |||||||||||||
Net cash provided by (used in) financing activities | (1.6 | ) | (126.1 | ) | 5.8 | 140.5 | 18.6 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.6 | ) | (17.2 | ) | — | (17.8 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 0.7 | (28.4 | ) | — | (27.7 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | 0.1 | 127.2 | — | 127.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.8 | $ | 98.8 | $ | — | $ | 99.6 | ||||||||||
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 28, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In May 2014, the FASB issued an amendment to existing guidance regarding revenue from contracts with customers. The amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the impact of the adoption of this amendment on its Consolidated Financial Statements. | |
In February 2015, the FASB issued an amendment to existing guidance regarding consolidation for reporting organizations such as limited partnerships and other similar entities that are required to evaluate whether they should consolidate certain legal entities. This guidance is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect adoption of this amendment to have an impact on its Consolidated Financial Statements. | |
In April 2015, the FASB issued an amendment to existing guidance which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company adopted this amendment retrospectively effective March 28, 2015. The adoption of this amendment did not have a material impact on the Consolidated Financial Statements. | |
In April 2015, the FASB issued an amendment to existing guidance providing a practical expedient for entities with fiscal year-ends that do not fall on a month-end by permitting those entities to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. The Company adopted this amendment prospectively effective March 28, 2015. The adoption of this amendment will not have a material impact on the Consolidated Financial Statements. | |
In April 2015, the FASB issued an amendment to existing guidance regarding accounting for fees in a cloud computing arrangement. Under the amendment, if a cloud computing arrangement includes a software license, then the entity should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the entity should account for the arrangement as a service contract. The Company adopted this amendment prospectively effective March 28, 2015. The adoption of this amendment will not have a material impact on the Consolidated Financial Statements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The condensed consolidated financial statements include the accounts of Tupperware Brands Corporation and its subsidiaries, collectively “Tupperware” or the “Company”, with all intercompany transactions and balances having been eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with the audited 2014 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 27, 2014. |
Certain prior year amounts have been reclassified to conform with current year presentation. | |
These condensed consolidated financial statements are unaudited and have been prepared following the rules and regulations of the United States Securities and Exchange Commission and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of the results for the interim periods. Certain information and note disclosures normally included in the balance sheet, statements of income, comprehensive income and cash flows prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. |
Foreign Currency Transactions and Translations Policy | Venezuela Foreign Currency Translation: The exchange rate used in translating the Company’s operating activity in Venezuela in the first quarter of 2014 was 6.3 bolivars to the U.S. dollar. In February 2015, the Venezuelan government launched an overhaul of its foreign currency exchange structure for obtaining U.S. dollars, introducing the Simadi mechanism. The Company used 172.0 bolivars to the U.S. dollar to translate its February 2015 operating activity and 190.0 to translate March 2015 operating activity and the end of March balance sheet of Venezuela. The Company currently expects to use the Simadi rate to translate future operating activity. The pretax impact in the first quarter of 2015 of re-measuring net monetary assets and recording in cost of sales inventory at the exchange rate when it was purchased or manufactured rather than when it was sold was $9.3 million. In the first quarter of 2014, there was a $13.4 million pretax loss recorded in connection with the remeasurement of net monetary assets in Venezuela. The amounts related to remeasurement are included in other expense. |
As of March 28, 2015, the Company had approximately $2 million of net monetary assets in Venezuela, which were of a nature that would generate income or expense associated with future exchange rate fluctuations versus the U.S. dollar. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
Components of Inventories | Inventories | |||||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Finished goods | $ | 235.2 | $ | 242.5 | ||||
Work in process | 26.2 | 26.8 | ||||||
Raw materials and supplies | 39.3 | 36.7 | ||||||
Total inventories | $ | 300.7 | $ | 306 | ||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Elements of Earnings per Share Computations | The elements of the earnings per share computations were as follows: | |||||||
13 weeks ended | ||||||||
(In millions, except per share amounts) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Net income | $ | 29.5 | $ | 52.2 | ||||
Weighted-average shares of common stock outstanding | 49.7 | 50.2 | ||||||
Common equivalent shares: | ||||||||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.6 | 0.9 | ||||||
Weighted-average common and common equivalent shares outstanding | 50.3 | 51.1 | ||||||
Basic earnings per share | $ | 0.59 | $ | 1.04 | ||||
Diluted earnings per share | $ | 0.59 | $ | 1.02 | ||||
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 0.6 | 0.4 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||
Rollforward of accumulated other comprehensive loss | Accumulated Other Comprehensive Loss | |||||||||||||||
(In millions, net of tax) | Foreign Currency Items | Cash Flow Hedges | Pension and Other Post-retirement Items | Total | ||||||||||||
Balance at December 27, 2014 | $ | (368.3 | ) | $ | 7.8 | $ | (48.2 | ) | $ | (408.7 | ) | |||||
Other comprehensive income (loss) before reclassifications | (25.2 | ) | 3 | 2.4 | (19.8 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3.4 | ) | 0.5 | (2.9 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (25.2 | ) | (0.4 | ) | 2.9 | (22.7 | ) | |||||||||
Balance at March 28, 2015 | $ | (393.5 | ) | $ | 7.4 | $ | (45.3 | ) | $ | (431.4 | ) | |||||
(In millions, net of tax) | Foreign Currency Items | Cash Flow Hedges | Pension and Other Post-retirement Items | Total | ||||||||||||
Balance at December 28, 2013 | $ | (283.1 | ) | $ | 2.2 | $ | (35.9 | ) | $ | (316.8 | ) | |||||
Other comprehensive income (loss) before reclassifications | (0.9 | ) | 2.8 | — | 1.9 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (1.3 | ) | 0.3 | (1.0 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (0.9 | ) | 1.5 | 0.3 | 0.9 | |||||||||||
Balance at March 29, 2014 | $ | (284.0 | ) | $ | 3.7 | $ | (35.6 | ) | $ | (315.9 | ) | |||||
Reengineering_and_Impairment_C1
Re-engineering and Impairment Costs (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Restructuring Charges [Abstract] | ||||||||
Accrued Liabilities, Re-engineering and Impairment Charges Rollforward | The balances included in accrued liabilities related to re-engineering and impairment charges as of March 28, 2015 and December 27, 2014 were as follows: | |||||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Beginning of the year balance | $ | 2.4 | $ | 2.6 | ||||
Provision | 2.7 | 11 | ||||||
Non-cash charges | (0.1 | ) | (1.8 | ) | ||||
Cash expenditures: | ||||||||
Severance | (2.0 | ) | (7.1 | ) | ||||
Other | (0.4 | ) | (2.3 | ) | ||||
End of period balance | $ | 2.6 | $ | 2.4 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment | ||||||||
13 weeks ended | ||||||||
(In millions) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Net sales: | ||||||||
Europe | $ | 171.7 | $ | 213.3 | ||||
Asia Pacific | 191.7 | 199 | ||||||
Tupperware North America | 79.5 | 81.5 | ||||||
Beauty North America | 62.9 | 73.5 | ||||||
South America | 76 | 95.9 | ||||||
Total net sales | $ | 581.8 | $ | 663.2 | ||||
Segment profit (loss): | ||||||||
Europe | $ | 29.3 | $ | 40.3 | ||||
Asia Pacific | 39 | 40.9 | ||||||
Tupperware North America | 13 | 13.6 | ||||||
Beauty North America (a) | (0.3 | ) | (0.7 | ) | ||||
South America | 3.2 | 3.4 | ||||||
Total segment profit | $ | 84.2 | $ | 97.5 | ||||
Unallocated expenses | (14.6 | ) | (14.4 | ) | ||||
Re-engineering and impairment charges (a) | (16.2 | ) | (2.3 | ) | ||||
Gains on disposal of assets | 0.6 | 1.8 | ||||||
Interest expense, net | (12.8 | ) | (11.8 | ) | ||||
Income before taxes | $ | 41.2 | $ | 70.8 | ||||
(In millions) | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Identifiable assets: | ||||||||
Europe | $ | 307.8 | $ | 337.3 | ||||
Asia Pacific | 323.3 | 321.4 | ||||||
Tupperware North America | 140.1 | 137.1 | ||||||
Beauty North America | 308 | 317 | ||||||
South America | 111.8 | 131.1 | ||||||
Corporate | 542.2 | 534 | ||||||
Total identifiable assets | $ | 1,733.20 | $ | 1,777.90 | ||||
_________________________ | ||||||||
(a) | See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt_Debt_Tables
Debt Debt (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Total Debt Obligations | ||||||||
(In millions) | March 28, 2015 | December 27, 2014 | ||||||
Fixed rate Senior Notes due 2021 | $ | 599.2 | $ | 599.2 | ||||
Five year Revolving Credit Agreement (a) | 266 | 206.9 | ||||||
Belgium facility capital lease | 12 | 13.9 | ||||||
Other | 1.2 | 11.4 | ||||||
Total debt obligations | $ | 878.4 | $ | 831.4 | ||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the Company's derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company's financial position as of March 28, 2015 and December 27, 2014. Fair values were determined based on third party quotations (Level 2 fair value measurement): | |||||||||||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||||||||
Derivatives designated as hedging instruments (in millions) | Balance sheet location | Mar 28, | Dec 27, | Balance sheet location | Mar 28, | Dec 27, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Foreign exchange contracts | Non-trade amounts receivable | $ | 32 | $ | 35 | Accrued liabilities | $ | 37.8 | $ | 30.3 | ||||||||||||||||
Schedule Of Company's Derivative Position And Its Impact On Company Table | The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the first quarters of 2015 and 2014: | |||||||||||||||||||||||||
Derivatives designated as fair value hedges (in millions) | Location of gain or (loss) recognized in income on derivatives | Amount of gain or (loss) recognized in income on derivatives | Location of gain or (loss) recognized in income on related hedged items | Amount of gain or (loss) recognized in income on related hedged items | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Foreign exchange contracts | Other expense | $ | (24.7 | ) | $ | 1 | Other expense | $ | 25.1 | $ | (0.5 | ) | ||||||||||||||
The following table summarizes the impact of Company's hedging activities on comprehensive income for the first quarters of 2015 and 2014: | ||||||||||||||||||||||||||
Cash flow and net equity hedges (in millions) | Amount of gain or (loss) recognized in OCI (effective portion) | Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Location of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||
Cash flow hedging relationships | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Foreign exchange contracts | $ | 3.4 | $ | 3.4 | Cost of products sold | $ | 4.3 | $ | 1.7 | Interest expense | $ | (2.9 | ) | $ | (1.3 | ) | ||||||||||
Net equity hedging relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | 19.5 | (5.1 | ) | Other expense | — | — | Interest expense | (3.5 | ) | (3.6 | ) | |||||||||||||||
Euro denominated debt | 10.9 | — | Other expense | — | — | Other expense | — | — | ||||||||||||||||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for the first quarters ended March 28, 2015 and March 29, 2014 were as follows: | |||||||||||||
First Quarter | ||||||||||||||
Pension benefits | Postretirement benefits | |||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Service cost | $ | 2.8 | $ | 2.8 | $ | — | $ | — | ||||||
Interest cost | 1.8 | 2.2 | 0.2 | 0.4 | ||||||||||
Expected return on plan assets | (1.4 | ) | (1.6 | ) | — | — | ||||||||
Net amortization | 1 | 0.6 | (0.3 | ) | (0.2 | ) | ||||||||
Net periodic benefit cost | $ | 4.2 | $ | 4 | $ | (0.1 | ) | $ | 0.2 | |||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Stock Option Activity | Stock option activity for 2015 is summarized in the following table: | ||||||||||
Shares subject to option | Weighted average exercise price per share | Aggregate intrinsic value | |||||||||
(in millions) | |||||||||||
Outstanding at December 27, 2014 | 2,192,136 | $48.95 | |||||||||
Granted | 7,132 | 62.4 | |||||||||
Expired / Forfeited | (2,139 | ) | 59.55 | ||||||||
Exercised | (78,995 | ) | 40.08 | ||||||||
Outstanding at March 28, 2015 | 2,118,134 | $49.31 | $47.60 | ||||||||
Exercisable at March 28, 2015 | 1,506,664 | $41.67 | $44.20 | ||||||||
Time Vested, Performance Vested and Market Vested Awards Activity | The Company also has time-vested, performance-vested and market-vested awards. The activity for such awards in 2015 is summarized in the following table: | ||||||||||
Shares outstanding | Weighted average grant date fair value | ||||||||||
December 27, 2014 | 651,849 | $59.76 | |||||||||
Time-vested shares granted | 3,997 | 62.12 | |||||||||
Market-vested shares granted | 23,637 | 64.21 | |||||||||
Performance shares granted | 62,722 | 72.61 | |||||||||
Performance share adjustments | 490 | 79.34 | |||||||||
Vested | (236,169 | ) | 33.72 | ||||||||
Forfeited | (2,465 | ) | 72.78 | ||||||||
March 28, 2015 | 504,061 | $73.65 | |||||||||
Schedule of Compensation Expense | Compensation expense related to the Company's stock based compensation is as follows: | ||||||||||
(In millions) | March 28, 2015 | March 29, 2014 | |||||||||
Stock options | $ | 0.6 | $ | 0.4 | |||||||
Time, performance and market vested awards | 3.2 | 4.6 | |||||||||
Allowance_for_LongTerm_Receiva1
Allowance for Long-Term Receivables (Tables) | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||
Allowance for Long-Term Receivables Rollforward | The balance of the allowance for long-term receivables as of March 28, 2015 was as follows: | |||
(In millions) | ||||
Balance at December 27, 2014 | $ | 13.1 | ||
Write-offs | (0.4 | ) | ||
Provision and reclassifications | 0.3 | |||
Currency translation adjustment | (1.4 | ) | ||
Balance at March 28, 2015 | $ | 11.6 | ||
Guarantor_Information_Tables
Guarantor Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Guarantor Information [Abstract] | ||||||||||||||||||||
Consolidating Statement of Income | Consolidating Statement of Income | |||||||||||||||||||
13 Weeks Ended March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | — | $ | 582 | $ | (0.2 | ) | $ | 581.8 | |||||||||
Other revenue | — | 28.3 | 5.2 | (33.5 | ) | — | ||||||||||||||
Cost of products sold | — | 5.2 | 218.1 | (31.7 | ) | 191.6 | ||||||||||||||
Gross margin | — | 23.1 | 369.1 | (2.0 | ) | 390.2 | ||||||||||||||
Delivery, sales and administrative expense | 3.5 | 17.9 | 294 | (2.0 | ) | 313.4 | ||||||||||||||
Re-engineering and impairment charges | — | — | 16.2 | — | 16.2 | |||||||||||||||
Gains on disposal of assets | — | — | 0.6 | — | 0.6 | |||||||||||||||
Operating income (loss) | (3.5 | ) | 5.2 | 59.5 | — | 61.2 | ||||||||||||||
Interest income | 7.2 | 6.5 | 1 | (14.2 | ) | 0.5 | ||||||||||||||
Interest expense | 12.8 | 8.1 | 6.6 | (14.2 | ) | 13.3 | ||||||||||||||
Income from equity investments in subsidiaries | 35.3 | 34.7 | — | (70.0 | ) | — | ||||||||||||||
Other expense | — | — | 7.2 | — | 7.2 | |||||||||||||||
Income before income taxes | 26.2 | 38.3 | 46.7 | (70.0 | ) | 41.2 | ||||||||||||||
Provision (benefit) for income taxes | (3.3 | ) | 1.6 | 13.4 | — | 11.7 | ||||||||||||||
Net income (loss) | $ | 29.5 | $ | 36.7 | $ | 33.3 | $ | (70.0 | ) | $ | 29.5 | |||||||||
Comprehensive income (loss) | $ | 6.8 | $ | 7.6 | $ | 4.8 | $ | (12.4 | ) | $ | 6.8 | |||||||||
Consolidating Statement of Income | ||||||||||||||||||||
13 Weeks Ended March 29, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | — | $ | 663.6 | $ | (0.4 | ) | $ | 663.2 | |||||||||
Other revenue | — | 24.8 | 5.8 | (30.6 | ) | — | ||||||||||||||
Cost of products sold | — | 5.8 | 244.4 | (28.6 | ) | 221.6 | ||||||||||||||
Gross margin | — | 19 | 425 | (2.4 | ) | 441.6 | ||||||||||||||
Delivery, sales and administrative expense | 4.6 | 15.1 | 327.2 | (2.4 | ) | 344.5 | ||||||||||||||
Re-engineering and impairment charges | — | — | 2.3 | — | 2.3 | |||||||||||||||
Gains on disposal of assets | — | — | 1.8 | — | 1.8 | |||||||||||||||
Operating income (loss) | (4.6 | ) | 3.9 | 97.3 | — | 96.6 | ||||||||||||||
Interest income | 0.1 | 7.2 | 1.1 | (7.7 | ) | 0.7 | ||||||||||||||
Interest expense | 9.6 | 4.5 | 6 | (7.7 | ) | 12.4 | ||||||||||||||
Income from equity investments in subsidiaries | 61.3 | 58.6 | — | (119.9 | ) | — | ||||||||||||||
Other expense | — | 0.1 | 14 | — | 14.1 | |||||||||||||||
Income before income taxes | 47.2 | 65.1 | 78.4 | (119.9 | ) | 70.8 | ||||||||||||||
Provision (benefit) for income taxes | (5.0 | ) | 2.6 | 21 | — | 18.6 | ||||||||||||||
Net income (loss) | $ | 52.2 | $ | 62.5 | $ | 57.4 | $ | (119.9 | ) | $ | 52.2 | |||||||||
Comprehensive income (loss) | $ | 53.1 | $ | 63.8 | $ | 61.1 | $ | (124.9 | ) | $ | 53.1 | |||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet | |||||||||||||||||||
March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 0.3 | $ | 83.6 | $ | — | $ | 83.9 | ||||||||||
Accounts receivable, net | — | — | 167 | — | 167 | |||||||||||||||
Inventories | — | — | 300.7 | — | 300.7 | |||||||||||||||
Deferred income tax benefits, net | 6.2 | 36.9 | 72.3 | — | 115.4 | |||||||||||||||
Non-trade amounts receivable, net | — | 42.3 | 91.4 | (74.3 | ) | 59.4 | ||||||||||||||
Intercompany receivables | 15.9 | 690 | 232.8 | (938.7 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 0.2 | 3.3 | 90 | (66.1 | ) | 27.4 | ||||||||||||||
Total current assets | 22.3 | 772.8 | 1,037.80 | (1,079.1 | ) | 753.8 | ||||||||||||||
Deferred income tax benefits, net | 98.2 | 188.5 | 124.4 | — | 411.1 | |||||||||||||||
Property, plant and equipment, net | — | 44.7 | 220 | — | 264.7 | |||||||||||||||
Long-term receivables, net | — | 0.1 | 14.9 | — | 15 | |||||||||||||||
Trademarks and tradenames, net | — | — | 99.7 | — | 99.7 | |||||||||||||||
Other intangible assets, net | — | — | 1.1 | — | 1.1 | |||||||||||||||
Goodwill | — | 2.9 | 158.9 | — | 161.8 | |||||||||||||||
Investments in subsidiaries | 1,084.70 | 418.4 | — | (1,503.1 | ) | — | ||||||||||||||
Intercompany notes receivable | 452.2 | 546.9 | 198.9 | (1,198.0 | ) | — | ||||||||||||||
Other assets, net | — | 0.8 | 155.3 | (130.1 | ) | 26 | ||||||||||||||
Total assets | $ | 1,657.40 | $ | 1,975.10 | $ | 2,011.00 | $ | (3,910.3 | ) | $ | 1,733.20 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Accounts payable | $ | — | $ | 2.4 | $ | 94.7 | $ | — | $ | 97.1 | ||||||||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 178.6 | — | 89.9 | — | 268.5 | |||||||||||||||
Intercompany payables | 549.1 | 233.7 | 155.9 | (938.7 | ) | — | ||||||||||||||
Accrued liabilities | 147 | 85.6 | 281.9 | (140.4 | ) | 374.1 | ||||||||||||||
Total current liabilities | 874.7 | 321.7 | 622.4 | (1,079.1 | ) | 739.7 | ||||||||||||||
Long-term debt and capital lease obligations | 599.2 | — | 10.7 | — | 609.9 | |||||||||||||||
Intercompany notes payable | 1.2 | 455.4 | 741.4 | (1,198.0 | ) | — | ||||||||||||||
Other liabilities | 17.1 | 155.2 | 176.2 | (130.1 | ) | 218.4 | ||||||||||||||
Shareholders' equity | 165.2 | 1,042.80 | 460.3 | (1,503.1 | ) | 165.2 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,657.40 | $ | 1,975.10 | $ | 2,011.00 | $ | (3,910.3 | ) | $ | 1,733.20 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
December 27, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 77 | $ | — | $ | 77 | ||||||||||
Accounts receivable, net | — | — | 168.1 | — | 168.1 | |||||||||||||||
Inventories | — | — | 306 | — | 306 | |||||||||||||||
Deferred income tax benefits, net | 6.2 | 36.9 | 75.7 | — | 118.8 | |||||||||||||||
Non-trade amounts receivable, net | 0.1 | 9.2 | 90.7 | (38.2 | ) | 61.8 | ||||||||||||||
Intercompany receivables | 11.8 | 755.2 | 227.6 | (994.6 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 0.5 | 1.8 | 101.8 | (83.1 | ) | 21 | ||||||||||||||
Total current assets | 18.6 | 803.1 | 1,046.90 | (1,115.9 | ) | 752.7 | ||||||||||||||
Deferred income tax benefits, net | 97.5 | 189.2 | 130 | — | 416.7 | |||||||||||||||
Property, plant and equipment, net | — | 43.7 | 246.6 | — | 290.3 | |||||||||||||||
Long-term receivables, net | — | 0.1 | 17.2 | — | 17.3 | |||||||||||||||
Trademarks and tradenames, net | — | — | 104.2 | — | 104.2 | |||||||||||||||
Other intangible assets, net | — | — | 1.5 | — | 1.5 | |||||||||||||||
Goodwill | — | 2.9 | 161.8 | — | 164.7 | |||||||||||||||
Investments in subsidiaries | 1,479.00 | 575 | — | (2,054.0 | ) | — | ||||||||||||||
Intercompany notes receivable | 48.4 | 554.1 | 236.5 | (839.0 | ) | — | ||||||||||||||
Other assets, net | — | 0.6 | 160.1 | (130.2 | ) | 30.5 | ||||||||||||||
Total assets | $ | 1,643.50 | $ | 2,168.70 | $ | 2,104.80 | $ | (4,139.1 | ) | $ | 1,777.90 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Accounts payable | $ | — | $ | 2.6 | $ | 140.2 | $ | — | $ | 142.8 | ||||||||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 108.8 | 2.3 | 108.2 | — | 219.3 | |||||||||||||||
Intercompany payables | 632 | 225 | 137.6 | (994.6 | ) | — | ||||||||||||||
Accrued liabilities | 66.4 | 144.1 | 294 | (121.3 | ) | 383.2 | ||||||||||||||
Total current liabilities | 807.2 | 374 | 680 | (1,115.9 | ) | 745.3 | ||||||||||||||
Long-term debt and capital lease obligations | 599.2 | — | 12.9 | — | 612.1 | |||||||||||||||
Intercompany notes payable | 32.5 | 204 | 602.5 | (839.0 | ) | — | ||||||||||||||
Other liabilities | 18.8 | 155.5 | 190.6 | (130.2 | ) | 234.7 | ||||||||||||||
Shareholders' equity | 185.8 | 1,435.20 | 618.8 | (2,054.0 | ) | 185.8 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,643.50 | $ | 2,168.70 | $ | 2,104.80 | $ | (4,139.1 | ) | $ | 1,777.90 | |||||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
13 Weeks Ended March 28, 2015 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 470.8 | $ | (29.3 | ) | $ | 42.7 | $ | (496.0 | ) | $ | (11.8 | ) | |||||||
Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (3.8 | ) | (10.1 | ) | — | (13.9 | ) | ||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 2.1 | — | 2.1 | |||||||||||||||
Net intercompany loans | (403.2 | ) | 70.4 | 29.1 | 303.7 | — | ||||||||||||||
Return of capital | — | 105.5 | — | (105.5 | ) | — | ||||||||||||||
Net cash provided by (used in) investing activities | (403.2 | ) | 172.1 | 21.1 | 198.2 | (11.8 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividend payments to shareholders | (35.7 | ) | — | — | — | (35.7 | ) | |||||||||||||
Dividend payments to parent | — | (400.0 | ) | (76.4 | ) | 476.4 | — | |||||||||||||
Proceeds from exercise of stock options | 3.1 | — | — | — | 3.1 | |||||||||||||||
Repurchase of common stock | (0.9 | ) | — | — | — | (0.9 | ) | |||||||||||||
Repayment of capital lease obligations | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net change in short-term debt | 80.5 | (2.3 | ) | (6.5 | ) | — | 71.7 | |||||||||||||
Excess tax benefits from share-based payment arrangements | 0.8 | — | — | — | 0.8 | |||||||||||||||
Net intercompany borrowings | (115.4 | ) | 260 | 139.5 | (284.1 | ) | — | |||||||||||||
Return of capital to parent | — | — | (105.5 | ) | 105.5 | — | ||||||||||||||
Net cash provided by (used in) financing activities | (67.6 | ) | (142.3 | ) | (49.8 | ) | 297.8 | 38.1 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.2 | ) | (7.4 | ) | — | (7.6 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 0.3 | 6.6 | — | 6.9 | |||||||||||||||
Cash and cash equivalents at beginning of year | — | — | 77 | — | 77 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.3 | $ | 83.6 | $ | — | $ | 83.9 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
13 Weeks Ended March 29, 2014 | ||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1 | $ | (0.6 | ) | $ | (16.0 | ) | $ | (2.7 | ) | $ | (18.3 | ) | ||||||
Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (2.1 | ) | (12.3 | ) | — | (14.4 | ) | ||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 4.2 | — | 4.2 | |||||||||||||||
Net intercompany loans | 0.6 | 130.1 | 7.1 | (137.8 | ) | — | ||||||||||||||
Net cash provided by (used in) investing activities | 0.6 | 128 | (1.0 | ) | (137.8 | ) | (10.2 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividend payments to shareholders | (32.6 | ) | — | — | — | (32.6 | ) | |||||||||||||
Dividend payments to parent | — | — | (2.5 | ) | 2.5 | — | ||||||||||||||
Proceeds from exercise of stock options | 4.8 | — | — | — | 4.8 | |||||||||||||||
Repurchase of common stock | (16.9 | ) | — | — | — | (16.9 | ) | |||||||||||||
Repayment of capital lease obligations | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||
Net change in short-term debt | 59.4 | — | (0.9 | ) | — | 58.5 | ||||||||||||||
Excess tax benefits from share-based payment arrangements | 5.8 | — | — | — | 5.8 | |||||||||||||||
Net intercompany borrowings | (22.1 | ) | (126.1 | ) | 10.2 | 138 | — | |||||||||||||
Net cash provided by (used in) financing activities | (1.6 | ) | (126.1 | ) | 5.8 | 140.5 | 18.6 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.6 | ) | (17.2 | ) | — | (17.8 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 0.7 | (28.4 | ) | — | (27.7 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | 0.1 | 127.2 | — | 127.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.8 | $ | 98.8 | $ | — | $ | 99.6 | ||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) (Venezuela, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Feb. 28, 2015 |
Intercompany Foreign Currency Balance [Line Items] | |||
Net monetary assets | $2 | ||
Official Rate [Member] | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Foreign Currency Exchange Rate, Remeasurement | 6.3 | ||
Simadi Rate [Member] | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Foreign Currency Exchange Rate, Remeasurement | 190 | 172 | |
SICAD 1 Rate [Member] | Other expense | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Foreign Currency Transaction Gain (Loss), before Tax | ($9.30) | ($13.40) |
Shipping_and_Handling_Costs_De
Shipping and Handling Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Shipping and Handling Costs [Abstract] | ||
Distribution costs | $34.70 | $38.70 |
Promotional_Costs_Details
Promotional Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Promotional Costs [Abstract] | ||
Promotional and other sales force compensation expenses | $102 | $113.80 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Finished goods | $235.20 | $242.50 |
Work in process | 26.2 | 26.8 |
Raw materials and supplies | 39.3 | 36.7 |
Total inventories | $300.70 | $306 |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Net Income Per Common Share [Line Items] | ||
Net income | $29.50 | $52.20 |
Weighted-average shares of common stock outstanding | 49.7 | 50.2 |
Common equivalent shares: | ||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.6 | 0.9 |
Weighted-average common and common equivalent shares outstanding | 50.3 | 51.1 |
Basic earnings per share | $0.59 | $1.04 |
Diluted earnings per share | $0.59 | $1.02 |
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 0.6 | 0.4 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | Dec. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | ($431.40) | ($315.90) | ($408.70) | ($316.80) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -19.8 | 1.9 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2.9 | 1 | ||
Other Comprehensive Income (Loss), Net of Tax | -22.7 | 0.9 | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, before tax | 4.3 | 1.7 | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, tax | -0.9 | -0.4 | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, prior service benefit, before tax | -0.3 | -0.2 | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, actuarial losses, before tax | 1 | 0.6 | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | 0.2 | 0.1 | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | -393.5 | -284 | -368.3 | -283.1 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -25.2 | -0.9 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | -25.2 | -0.9 | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 7.4 | 3.7 | 7.8 | 2.2 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3 | 2.8 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3.4 | 1.3 | ||
Other Comprehensive Income (Loss), Net of Tax | -0.4 | 1.5 | ||
Pension and Other Post-retirement Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | -45.3 | -35.6 | -48.2 | -35.9 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2.4 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -0.5 | -0.3 | ||
Other Comprehensive Income (Loss), Net of Tax | $2.90 | $0.30 |
Reengineering_and_Impairment_C2
Re-engineering and Impairment Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Write-down of inventories | $4.20 | $6.30 | |
Restructuring Reserve [Roll Forward] | |||
Beginning of the year balance | 2.4 | 2.6 | 2.6 |
Provision | 2.7 | 2.3 | 11 |
Non-cash charges | -0.1 | -1.8 | |
End of period balance | 2.6 | 2.4 | |
Facility Closing [Member] | Armand Dupree United States [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Write-down of inventories | 1.6 | ||
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Cash expenditures | -2 | -7.1 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Cash expenditures | -0.4 | -2.3 | |
Venezuela | |||
Restructuring Cost and Reserve [Line Items] | |||
Long-Lived Assets | 15.7 | ||
Impairment of Long-Lived Assets Held-for-use | 13.5 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Venezuela | |||
Restructuring Cost and Reserve [Line Items] | |||
Property, Plant, and Equipment, Fair Value Disclosure | $2.20 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $581.80 | $663.20 | |||
Segment profit (loss): | 84.2 | 97.5 | |||
Unallocated expenses | -14.6 | -14.4 | |||
Re-engineering and impairment charges (a) | -16.2 | [1] | -2.3 | [1] | |
Gains on disposal of assets | 0.6 | 1.8 | |||
Interest expense, net | -12.8 | -11.8 | |||
Income before income taxes | 41.2 | 70.8 | |||
Total identifiable assets | 1,733.20 | 1,777.90 | |||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 171.7 | 213.3 | |||
Segment profit (loss): | 29.3 | 40.3 | |||
Total identifiable assets | 307.8 | 337.3 | |||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 191.7 | 199 | |||
Segment profit (loss): | 39 | 40.9 | |||
Total identifiable assets | 323.3 | 321.4 | |||
Tupperware North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 79.5 | 81.5 | |||
Segment profit (loss): | 13 | 13.6 | |||
Total identifiable assets | 140.1 | 137.1 | |||
Beauty North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 62.9 | 73.5 | |||
Segment profit (loss): | -0.3 | -0.7 | [1] | ||
Total identifiable assets | 308 | 317 | |||
South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 76 | 95.9 | |||
Segment profit (loss): | 3.2 | 3.4 | |||
Total identifiable assets | 111.8 | 131.1 | |||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total identifiable assets | 542.2 | 534 | |||
Beauty and Personal Care Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $113.10 | $127.70 | |||
[1] | (a)See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Jun. 02, 2011 | |
Debt Instrument [Line Items] | ||||
Unused lines of credit | $652.60 | |||
Debt and Capital Lease Obligations | 878.4 | 831.4 | ||
Senior Notes Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 599.2 | 599.2 | ||
Stated interest rate | 4.75% | |||
Five-Year Senior Secured Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | 266 | [1] | 206.9 | |
Variable rate basis | LIBOR | |||
Unused lines of credit | 380.3 | |||
Five-Year Senior Secured Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate on LIBOR-based borrowings | 1.52% | |||
Belgium Facility Capital Lease [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital Lease Obligations | 12 | 13.9 | ||
Other Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 1.2 | 11.4 | ||
Uncommitted Lines of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused lines of credit | 272.3 | |||
Euro | Five-Year Senior Secured Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | $175.90 | |||
[1] | (a)$175.9 million denominated in euros |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net cash impact from hedging activity | $3.60 | ($4.70) |
Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | 2.8 | 2.4 |
Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Lower Remaining Maturity Range | 1 month | |
Derivative, Higher Remaining Maturity Range | 15 months | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |
Cash Flow Hedging [Member] | Foreign exchange contracts | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | -2.9 | -1.3 |
Net Equity Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 19.5 | -3.3 |
Net Equity Hedging [Member] | Foreign exchange contracts | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ($3.50) | ($3.60) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) (Forward Contracts [Member], USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $101.80 | $185.10 |
Derivative Liability, Notional Amount | 110 | 184.2 |
Euro | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 29.3 | |
United States of America, Dollars | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $45.80 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Financial Position) (Details) (Significant Other Observable Inputs (Level 2), Designated as Hedging Instrument [Member], Foreign exchange contracts, USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Millions, unless otherwise specified | ||
Non-trade amounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $32 | $35 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $37.80 | $30.30 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $2.80 | $2.40 |
Fair Value Hedging [Member] | Other expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives | -24.7 | 1 |
Amount of gain or (loss) recognized in income on related hedged items | 25.1 | -0.5 |
Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | 3.4 | 3.4 |
Cash Flow Hedging [Member] | Cost of products sold | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | 4.3 | 1.7 |
Cash Flow Hedging [Member] | Interest expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | -2.9 | -1.3 |
Net Equity Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | 19.5 | -5.1 |
Net Equity Hedging [Member] | Other Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | 10.9 | 0 |
Net Equity Hedging [Member] | Other expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 |
Net Equity Hedging [Member] | Other expense | Other Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 |
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
Net Equity Hedging [Member] | Interest expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ($3.50) | ($3.60) |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (Senior Notes Due 2021 [Member], USD $) | Mar. 28, 2015 | Dec. 27, 2014 | Jun. 02, 2011 |
In Millions, unless otherwise specified | |||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.75% | ||
Long-term Debt | $599.20 | $599.20 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | $643.20 |
Retirement_Benefit_Plans_Detai
Retirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net amortization | $0.70 | $0.40 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2.8 | 2.8 |
Interest cost | 1.8 | 2.2 |
Expected return on plan assets | -1.4 | -1.6 |
Defined Benefit Plan, Amortization of Gains (Losses) | 1 | 0.6 |
Net periodic benefit cost | 4.2 | 4 |
Postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.4 |
Expected return on plan assets | 0 | 0 |
Defined Benefit Plan, Amortization of Gains (Losses) | -0.3 | -0.2 |
Net periodic benefit cost | ($0.10) | $0.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 28.40% | 26.20% | |
Gross unrecognized tax benefit | $20.20 | $22.50 | |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 18.2 | ||
Accrued interest and penalties related to uncertain tax positions | 4.9 | 6.5 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | -2.3 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Period Increase (Decrease) | -1.3 | ||
Significant Change in Unrecognized Tax Benefits Reasonably Possible, Amount of Unrecorded Benefit | ($1) |
Statement_of_Cash_Flow_Supplem1
Statement of Cash Flow Supplemental Disclosure (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Other Significant Noncash Transactions [Line Items] | ||
Shares Paid for Tax Withholding for Share Based Compensation | 11,890 | 86,872 |
Shares Paid For Tax Withholding For Share Based Compensation, Value | $900,000 | $6,900,000 |
Capital Lease Obligations Incurred | 0 | 0 |
Corporate Joint Venture [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Contribution of Property | $3,100,000 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $27.30 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at December 27, 2014 | 2,192,136 | |
Weighted Average Exercise Price Per Share Outstanding, Beginning of Period | $48.95 | |
Granted | 7,132 | |
Weighted Average Exercise Price Per Share Outstanding, Granted | $62.40 | |
Expired / Forfeited | -2,139 | |
Weighted Average Exercise Price Per Share Outstanding, Expired/Forfeited | $59.55 | |
Exercised | -78,995 | |
Weighted Average Exercise Price Per Share Outstanding, Exercised | $40.08 | |
Outstanding at March 28, 2015 | 2,118,134 | |
Weighted Average Exercise Price Per Share Outstanding, End of Period | $49.31 | |
Outstanding Shares Subject to Option, Aggregate Intrinsic Value | 47.6 | |
Exercisable at March 28, 2015 | 1,506,664 | |
Weighted Average Exercise Price Per Share Exercisable, End of Period | $41.67 | |
Options Exercisable at End of Period, Aggregate Intrinsic Value | 44.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 2.2 | 8.4 |
Stock Option Expense | 0.6 | 0.4 |
Time Vested, Performance Vested and Market Vested Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 651,849 | |
Weighted Average Grant Date Fair Value, Beginning of Period | $59.76 | |
Shares Outstanding, Vested | -236,169 | |
Weighted Average Grant Date Fair Value, Vested | $33.72 | |
Shares Outstanding, Forfeited | -2,465 | |
Weighted Average Grant Date Fair Value, Forfeited | $72.78 | |
Shares Outstanding, End of Period | 504,061 | |
Weighted Average Grant Date Fair Value, End of Period | $73.65 | |
Time, Performance and Market Vested Awards Expense | $3.20 | $4.60 |
Time Vested [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares Outstanding, Granted | 3,997 | |
Weighted Average Grant Date Fair Value, Granted | $62.12 | |
Market Vested [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares Outstanding, Granted | 23,637 | |
Weighted Average Grant Date Fair Value, Granted | $64.21 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares Outstanding, Granted | 62,722 | |
Weighted Average Grant Date Fair Value, Granted | $72.61 | |
Shares Outstanding, Performance Share Adjustments | 490 | |
Weighted Average Grant Date Fair Value, Performance Share Adjustments | $79.34 |
Allowance_for_LongTerm_Receiva2
Allowance for Long-Term Receivables (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Long-Term Receivables Past Due | $12 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at December 27, 2014 | 11.6 | 13.1 |
Write-offs | -0.4 | |
Provision and reclassifications | 0.3 | |
Currency translation adjustment | -1.4 | |
Balance at March 28, 2015 | $11.60 | $13.10 |
Guarantor_Information_Details
Guarantor Information (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | ||
Net sales | $581.80 | $663.20 | ||||
Other revenue | 0 | 0 | ||||
Cost of products sold | 191.6 | 221.6 | ||||
Gross margin | 390.2 | 441.6 | ||||
Delivery, sales and administrative expense | 313.4 | 344.5 | ||||
Re-engineering and impairment charges | 16.2 | [1] | 2.3 | [1] | ||
Gains on disposal of assets | 0.6 | 1.8 | ||||
Operating income | 61.2 | 96.6 | ||||
Interest income | 0.5 | 0.7 | ||||
Interest expense | 13.3 | 12.4 | ||||
Income from equity investments in subsidiaries | 0 | 0 | ||||
Other expense | 7.2 | 14.1 | ||||
Income before income taxes | 41.2 | 70.8 | ||||
Provision (benefit) for income taxes | 11.7 | 18.6 | ||||
Net income | 29.5 | 52.2 | ||||
Comprehensive income (loss) | 6.8 | 53.1 | ||||
ASSETS | ||||||
Cash and cash equivalents | 83.9 | 99.6 | 77 | 127.3 | ||
Accounts receivable, net | 167 | 168.1 | ||||
Inventories | 300.7 | 306 | ||||
Deferred income tax benefits, net | 115.4 | 118.8 | ||||
Non-trade amounts receivable, net | 59.4 | 61.8 | ||||
Intercompany receivables | 0 | 0 | ||||
Prepaid expenses and other current assets | 27.4 | 21 | ||||
Total current assets | 753.8 | 752.7 | ||||
Deferred income tax benefits, net | 411.1 | 416.7 | ||||
Property, plant and equipment, net | 264.7 | 290.3 | ||||
Long-term receivables, net | 15 | 17.3 | ||||
Trademarks and tradenames, net | 99.7 | 104.2 | ||||
Other intangible assets, net | 1.1 | 1.5 | ||||
Goodwill | 161.8 | 164.7 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Other assets, net | 26 | 30.5 | ||||
Total assets | 1,733.20 | 1,777.90 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 97.1 | 142.8 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 268.5 | 219.3 | ||||
Intercompany payables | 0 | 0 | ||||
Accrued liabilities | 374.1 | 383.2 | ||||
Total current liabilities | 739.7 | 745.3 | ||||
Long-term debt and capital lease obligations | 609.9 | 612.1 | ||||
Intercompany notes payable | 0 | 0 | ||||
Other liabilities | 218.4 | 234.7 | ||||
Total shareholders' equity | 165.2 | 185.8 | ||||
Total liabilities and shareholders' equity | 1,733.20 | 1,777.90 | ||||
Operating Activities: | ||||||
Net cash used in operating activities | -11.8 | -18.3 | ||||
Investing Activities: | ||||||
Capital expenditures | -13.9 | -14.4 | ||||
Proceeds from disposal of property, plant and equipment | 2.1 | 4.2 | ||||
Net intercompany loans | 0 | 0 | ||||
Return of capital | 0 | |||||
Net cash used in investing activities | -11.8 | -10.2 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | -35.7 | -32.6 | ||||
Dividend payments to parent | 0 | 0 | ||||
Proceeds from exercise of stock options | 3.1 | 4.8 | ||||
Repurchase of common stock | -0.9 | -16.9 | ||||
Repayment of capital lease obligations | -0.9 | -1 | ||||
Net change in short-term debt | 71.7 | 58.5 | ||||
Excess tax benefits from share-based payment arrangements | 0.8 | 5.8 | ||||
Net intercompany borrowings | 0 | 0 | ||||
Return of capital to parent | 0 | |||||
Net cash provided by financing activities | 38.1 | 18.6 | ||||
Effect of exchange rate changes on cash and cash equivalents | -7.6 | -17.8 | ||||
Net change in cash and cash equivalents | 6.9 | -27.7 | ||||
Parent | ||||||
Net sales | 0 | 0 | ||||
Other revenue | 0 | 0 | ||||
Cost of products sold | 0 | 0 | ||||
Gross margin | 0 | 0 | ||||
Delivery, sales and administrative expense | 3.5 | 4.6 | ||||
Re-engineering and impairment charges | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | ||||
Operating income | -3.5 | -4.6 | ||||
Interest income | 7.2 | 0.1 | ||||
Interest expense | 12.8 | 9.6 | ||||
Income from equity investments in subsidiaries | 35.3 | 61.3 | ||||
Other expense | 0 | 0 | ||||
Income before income taxes | 26.2 | 47.2 | ||||
Provision (benefit) for income taxes | -3.3 | -5 | ||||
Net income | 29.5 | 52.2 | ||||
Comprehensive income (loss) | 6.8 | 53.1 | ||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred income tax benefits, net | 6.2 | 6.2 | ||||
Non-trade amounts receivable, net | 0 | 0.1 | ||||
Intercompany receivables | 15.9 | 11.8 | ||||
Prepaid expenses and other current assets | 0.2 | 0.5 | ||||
Total current assets | 22.3 | 18.6 | ||||
Deferred income tax benefits, net | 98.2 | 97.5 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Long-term receivables, net | 0 | 0 | ||||
Trademarks and tradenames, net | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Investments in subsidiaries | 1,084.70 | 1,479 | ||||
Intercompany notes receivable | 452.2 | 48.4 | ||||
Other assets, net | 0 | 0 | ||||
Total assets | 1,657.40 | 1,643.50 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 0 | 0 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 178.6 | 108.8 | ||||
Intercompany payables | 549.1 | 632 | ||||
Accrued liabilities | 147 | 66.4 | ||||
Total current liabilities | 874.7 | 807.2 | ||||
Long-term debt and capital lease obligations | 599.2 | 599.2 | ||||
Intercompany notes payable | 1.2 | 32.5 | ||||
Other liabilities | 17.1 | 18.8 | ||||
Total shareholders' equity | 165.2 | 185.8 | ||||
Total liabilities and shareholders' equity | 1,657.40 | 1,643.50 | ||||
Operating Activities: | ||||||
Net cash used in operating activities | 470.8 | 1 | ||||
Investing Activities: | ||||||
Capital expenditures | 0 | 0 | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | -403.2 | 0.6 | ||||
Return of capital | 0 | |||||
Net cash used in investing activities | -403.2 | 0.6 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | -35.7 | -32.6 | ||||
Dividend payments to parent | 0 | 0 | ||||
Proceeds from exercise of stock options | 3.1 | 4.8 | ||||
Repurchase of common stock | -0.9 | -16.9 | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | 80.5 | 59.4 | ||||
Excess tax benefits from share-based payment arrangements | 0.8 | 5.8 | ||||
Net intercompany borrowings | -115.4 | -22.1 | ||||
Return of capital to parent | 0 | |||||
Net cash provided by financing activities | -67.6 | -1.6 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
Net change in cash and cash equivalents | 0 | 0 | ||||
Guarantor | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||
Net sales | 0 | 0 | ||||
Other revenue | 28.3 | 24.8 | ||||
Cost of products sold | 5.2 | 5.8 | ||||
Gross margin | 23.1 | 19 | ||||
Delivery, sales and administrative expense | 17.9 | 15.1 | ||||
Re-engineering and impairment charges | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | ||||
Operating income | 5.2 | 3.9 | ||||
Interest income | 6.5 | 7.2 | ||||
Interest expense | 8.1 | 4.5 | ||||
Income from equity investments in subsidiaries | 34.7 | 58.6 | ||||
Other expense | 0 | 0.1 | ||||
Income before income taxes | 38.3 | 65.1 | ||||
Provision (benefit) for income taxes | 1.6 | 2.6 | ||||
Net income | 36.7 | 62.5 | ||||
Comprehensive income (loss) | 7.6 | 63.8 | ||||
ASSETS | ||||||
Cash and cash equivalents | 0.3 | 0.8 | 0 | 0.1 | ||
Accounts receivable, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred income tax benefits, net | 36.9 | 36.9 | ||||
Non-trade amounts receivable, net | 42.3 | 9.2 | ||||
Intercompany receivables | 690 | 755.2 | ||||
Prepaid expenses and other current assets | 3.3 | 1.8 | ||||
Total current assets | 772.8 | 803.1 | ||||
Deferred income tax benefits, net | 188.5 | 189.2 | ||||
Property, plant and equipment, net | 44.7 | 43.7 | ||||
Long-term receivables, net | 0.1 | 0.1 | ||||
Trademarks and tradenames, net | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Goodwill | 2.9 | 2.9 | ||||
Investments in subsidiaries | 418.4 | 575 | ||||
Intercompany notes receivable | 546.9 | 554.1 | ||||
Other assets, net | 0.8 | 0.6 | ||||
Total assets | 1,975.10 | 2,168.70 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 2.4 | 2.6 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 2.3 | ||||
Intercompany payables | 233.7 | 225 | ||||
Accrued liabilities | 85.6 | 144.1 | ||||
Total current liabilities | 321.7 | 374 | ||||
Long-term debt and capital lease obligations | 0 | 0 | ||||
Intercompany notes payable | 455.4 | 204 | ||||
Other liabilities | 155.2 | 155.5 | ||||
Total shareholders' equity | 1,042.80 | 1,435.20 | ||||
Total liabilities and shareholders' equity | 1,975.10 | 2,168.70 | ||||
Operating Activities: | ||||||
Net cash used in operating activities | -29.3 | -0.6 | ||||
Investing Activities: | ||||||
Capital expenditures | -3.8 | -2.1 | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | 70.4 | 130.1 | ||||
Return of capital | 105.5 | |||||
Net cash used in investing activities | 172.1 | 128 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Dividend payments to parent | -400 | 0 | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | -2.3 | 0 | ||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | ||||
Net intercompany borrowings | 260 | -126.1 | ||||
Return of capital to parent | 0 | |||||
Net cash provided by financing activities | -142.3 | -126.1 | ||||
Effect of exchange rate changes on cash and cash equivalents | -0.2 | -0.6 | ||||
Net change in cash and cash equivalents | 0.3 | 0.7 | ||||
Non-Guarantors | ||||||
Net sales | 582 | 663.6 | ||||
Other revenue | 5.2 | 5.8 | ||||
Cost of products sold | 218.1 | 244.4 | ||||
Gross margin | 369.1 | 425 | ||||
Delivery, sales and administrative expense | 294 | 327.2 | ||||
Re-engineering and impairment charges | 16.2 | 2.3 | ||||
Gains on disposal of assets | 0.6 | 1.8 | ||||
Operating income | 59.5 | 97.3 | ||||
Interest income | 1 | 1.1 | ||||
Interest expense | 6.6 | 6 | ||||
Income from equity investments in subsidiaries | 0 | 0 | ||||
Other expense | 7.2 | 14 | ||||
Income before income taxes | 46.7 | 78.4 | ||||
Provision (benefit) for income taxes | 13.4 | 21 | ||||
Net income | 33.3 | 57.4 | ||||
Comprehensive income (loss) | 4.8 | 61.1 | ||||
ASSETS | ||||||
Cash and cash equivalents | 83.6 | 98.8 | 77 | 127.2 | ||
Accounts receivable, net | 167 | 168.1 | ||||
Inventories | 300.7 | 306 | ||||
Deferred income tax benefits, net | 72.3 | 75.7 | ||||
Non-trade amounts receivable, net | 91.4 | 90.7 | ||||
Intercompany receivables | 232.8 | 227.6 | ||||
Prepaid expenses and other current assets | 90 | 101.8 | ||||
Total current assets | 1,037.80 | 1,046.90 | ||||
Deferred income tax benefits, net | 124.4 | 130 | ||||
Property, plant and equipment, net | 220 | 246.6 | ||||
Long-term receivables, net | 14.9 | 17.2 | ||||
Trademarks and tradenames, net | 99.7 | 104.2 | ||||
Other intangible assets, net | 1.1 | 1.5 | ||||
Goodwill | 158.9 | 161.8 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Intercompany notes receivable | 198.9 | 236.5 | ||||
Other assets, net | 155.3 | 160.1 | ||||
Total assets | 2,011 | 2,104.80 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 94.7 | 140.2 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 89.9 | 108.2 | ||||
Intercompany payables | 155.9 | 137.6 | ||||
Accrued liabilities | 281.9 | 294 | ||||
Total current liabilities | 622.4 | 680 | ||||
Long-term debt and capital lease obligations | 10.7 | 12.9 | ||||
Intercompany notes payable | 741.4 | 602.5 | ||||
Other liabilities | 176.2 | 190.6 | ||||
Total shareholders' equity | 460.3 | 618.8 | ||||
Total liabilities and shareholders' equity | 2,011 | 2,104.80 | ||||
Operating Activities: | ||||||
Net cash used in operating activities | 42.7 | -16 | ||||
Investing Activities: | ||||||
Capital expenditures | -10.1 | -12.3 | ||||
Proceeds from disposal of property, plant and equipment | 2.1 | 4.2 | ||||
Net intercompany loans | 29.1 | 7.1 | ||||
Return of capital | 0 | |||||
Net cash used in investing activities | 21.1 | -1 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Dividend payments to parent | -76.4 | -2.5 | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | -0.9 | -1 | ||||
Net change in short-term debt | -6.5 | -0.9 | ||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | ||||
Net intercompany borrowings | 139.5 | 10.2 | ||||
Return of capital to parent | -105.5 | |||||
Net cash provided by financing activities | -49.8 | 5.8 | ||||
Effect of exchange rate changes on cash and cash equivalents | -7.4 | -17.2 | ||||
Net change in cash and cash equivalents | 6.6 | -28.4 | ||||
Eliminations | ||||||
Net sales | -0.2 | -0.4 | ||||
Other revenue | -33.5 | -30.6 | ||||
Cost of products sold | -31.7 | -28.6 | ||||
Gross margin | -2 | -2.4 | ||||
Delivery, sales and administrative expense | -2 | -2.4 | ||||
Re-engineering and impairment charges | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | ||||
Operating income | 0 | 0 | ||||
Interest income | -14.2 | -7.7 | ||||
Interest expense | -14.2 | -7.7 | ||||
Income from equity investments in subsidiaries | -70 | -119.9 | ||||
Other expense | 0 | 0 | ||||
Income before income taxes | -70 | -119.9 | ||||
Provision (benefit) for income taxes | 0 | 0 | ||||
Net income | -70 | -119.9 | ||||
Comprehensive income (loss) | -12.4 | -124.9 | ||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred income tax benefits, net | 0 | 0 | ||||
Non-trade amounts receivable, net | -74.3 | -38.2 | ||||
Intercompany receivables | -938.7 | -994.6 | ||||
Prepaid expenses and other current assets | -66.1 | -83.1 | ||||
Total current assets | -1,079.10 | -1,115.90 | ||||
Deferred income tax benefits, net | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Long-term receivables, net | 0 | 0 | ||||
Trademarks and tradenames, net | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Investments in subsidiaries | -1,503.10 | -2,054 | ||||
Intercompany notes receivable | -1,198 | -839 | ||||
Other assets, net | -130.1 | -130.2 | ||||
Total assets | -3,910.30 | -4,139.10 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 0 | 0 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | ||||
Intercompany payables | -938.7 | -994.6 | ||||
Accrued liabilities | -140.4 | -121.3 | ||||
Total current liabilities | -1,079.10 | -1,115.90 | ||||
Long-term debt and capital lease obligations | 0 | 0 | ||||
Intercompany notes payable | -1,198 | -839 | ||||
Other liabilities | -130.1 | -130.2 | ||||
Total shareholders' equity | -1,503.10 | -2,054 | ||||
Total liabilities and shareholders' equity | -3,910.30 | -4,139.10 | ||||
Operating Activities: | ||||||
Net cash used in operating activities | -496 | -2.7 | ||||
Investing Activities: | ||||||
Capital expenditures | 0 | 0 | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | 303.7 | -137.8 | ||||
Return of capital | -105.5 | |||||
Net cash used in investing activities | 198.2 | -137.8 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Dividend payments to parent | 476.4 | 2.5 | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | 0 | 0 | ||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | ||||
Net intercompany borrowings | -284.1 | 138 | ||||
Return of capital to parent | 105.5 | |||||
Net cash provided by financing activities | 297.8 | 140.5 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
Net change in cash and cash equivalents | $0 | $0 | ||||
[1] | (a)See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |