Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 24, 2016 | Oct. 20, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | TUPPERWARE BRANDS CORP | |
Entity Central Index Key | 1,008,654 | |
Trading Symbol | TUP | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 24, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 50,561,384 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | ||
Net sales | $ 521.8 | $ 521 | $ 1,612.2 | $ 1,691.7 | |
Cost of products sold | 168.4 | 172.5 | 518.3 | 553.2 | |
Gross margin | 353.4 | 348.5 | 1,093.9 | 1,138.5 | |
Delivery, sales and administrative expense | 284.2 | 288.5 | 871.1 | 912 | |
Re-engineering and impairment charges | 2.4 | 0.3 | 5.4 | 18 | [1] |
Gains on disposal of assets | 24.2 | 2 | 25.1 | 13.4 | |
Operating income | 91 | 61.7 | 242.5 | 221.9 | |
Interest income | 0.8 | 0.5 | 2.3 | 1.5 | |
Interest expense | 12.8 | 11.3 | 36.1 | 36.6 | |
Other (income) expense | (0.3) | 0.3 | 1 | 8.6 | |
Income before income taxes | 79.3 | 50.6 | 207.7 | 178.2 | |
Provision for income taxes | 30.5 | 14.4 | 63.1 | 50.5 | |
Net income | $ 48.8 | $ 36.2 | $ 144.6 | $ 127.7 | |
Earnings per share: | |||||
Basic | $ 0.97 | $ 0.72 | $ 2.86 | $ 2.56 | |
Diluted | $ 0.96 | $ 0.72 | $ 2.85 | $ 2.54 | |
Weighted-average shares outstanding: | |||||
Basic | 50.5 | 49.9 | 50.5 | 49.8 | |
Diluted | 50.8 | 50.3 | 50.7 | 50.3 | |
Dividends declared per common share | $ 0.68 | $ 0.68 | $ 2.04 | $ 2.04 | |
[1] | (a)See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Net income | $ 48.8 | $ 36.2 | $ 144.6 | $ 127.7 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (8.4) | (65.5) | (20.2) | (110.1) |
Deferred gain (loss) on cash flow hedges, net of tax (provision) benefit of ($0.4), ($0.8), $0.6 and ($0.2), respectively | 0.8 | 1.7 | (2.9) | (0.5) |
Pension and other post-retirement income, net of tax (provision) benefit of ($0.1), ($0.3), $0.2 and ($1.4), respectively | 1.2 | 1.2 | 0.8 | 4.2 |
Other comprehensive loss | (6.4) | (62.6) | (22.3) | (106.4) |
Total comprehensive income (loss) | $ 42.4 | $ (26.4) | $ 122.3 | $ 21.3 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Deferred gain (loss) on cash flow hedges, tax (benefit) provision | $ 0.4 | $ 0.8 | $ (0.6) | $ 0.2 |
Pension and other post retirement costs, tax (provision) benefit | $ (0.1) | $ (0.3) | $ 0.2 | $ (1.4) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 98.5 | $ 79.8 |
Accounts receivable, less allowances of $36.9 and $32.7, respectively | 142.4 | 142.7 |
Inventories | 275 | 254.6 |
Non-trade amounts receivable, net | 61.4 | 45.5 |
Prepaid expenses and other current assets | 28.9 | 27.9 |
Total current assets | 606.2 | 550.5 |
Deferred income tax benefits, net | 535.8 | 524.9 |
Property, plant and equipment, net | 256.3 | 253.6 |
Long-term receivables, less allowances of $11.9 and $11.2, respectively | 13.6 | 13.2 |
Trademarks and tradenames, net | 73.3 | 82.7 |
Goodwill | 139.7 | 146.3 |
Other assets, net | 30.3 | 27 |
Total assets | 1,655.2 | 1,598.2 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 88.5 | 126.7 |
Short-term borrowings and current portion of long-term debt and capital lease obligations | 199.9 | 162.5 |
Accrued liabilities | 344.6 | 324.8 |
Total current liabilities | 633 | 614 |
Long-term debt and capital lease obligations | 606.9 | 608.2 |
Other liabilities | 225.6 | 215 |
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 | 207.5 | 205.5 |
Retained earnings | 1,411.6 | 1,371.2 |
Treasury stock, 13,047,956 and 13,170,517 shares, respectively, at cost | (885.7) | (894.3) |
Accumulated other comprehensive loss | (544.3) | (522) |
Total shareholders' equity | 189.7 | 161 |
Total liabilities and shareholders' equity | $ 1,655.2 | $ 1,598.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 |
Accounts receivable, allowances | $ 36.9 | $ 32.7 |
Long-term receivables, allowances | $ 11.9 | $ 11.2 |
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 | 13,047,956 | 13,170,517 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Operating Activities: | ||
Net income | $ 144.6 | $ 127.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43.8 | 46.6 |
Unrealized foreign exchange loss | 0.3 | 7.2 |
Equity compensation | 13 | 11.8 |
Amortization of deferred debt costs | 0.5 | 0.7 |
Net gains on disposal of assets | (24.7) | (13.1) |
Provision for bad debts | 8.7 | 9.8 |
Write-down of inventories | 8.2 | 12.9 |
Non-cash impact of re-engineering and impairment costs | 0 | 13.5 |
Net change in deferred income taxes | (16.5) | (25.1) |
Excess tax benefits from share-based payment arrangements | (0.3) | (2.5) |
Changes in assets and liabilities: | ||
Accounts and notes receivable | (6.7) | (20.8) |
Inventories | (23.4) | (34.5) |
Non-trade amounts receivable | (7.4) | (0.7) |
Prepaid expenses | (6.2) | (6.8) |
Other assets | (1.3) | (1.4) |
Accounts payable and accrued liabilities | (34.5) | (14.1) |
Income taxes payable | (5.4) | (19.7) |
Other liabilities | 5.3 | 1.8 |
Net cash impact from hedging activity | (5.6) | (21.1) |
Other | (0.1) | 0 |
Net cash provided by operating activities | 92.3 | 72.2 |
Investing Activities: | ||
Capital expenditures | (38.2) | (42.4) |
Proceeds from disposal of property, plant and equipment | 31.8 | 17.5 |
Net cash used in investing activities | (6.4) | (24.9) |
Financing Activities: | ||
Dividend payments to shareholders | (104) | (103.6) |
Proceeds from exercise of stock options | 0.6 | 7.6 |
Repurchase of common stock | (1.1) | (0.9) |
Repayment of capital lease obligations | (1.7) | (2.1) |
Net change in short-term debt | 33 | 82 |
Payments of Debt Issuance Costs | 0 | (0.7) |
Excess tax benefits from share-based payment arrangements | 0.3 | 2.5 |
Net cash used in financing activities | (72.9) | (15.2) |
Effect of exchange rate changes on cash and cash equivalents | 5.7 | (16) |
Net change in cash and cash equivalents | 18.7 | 16.1 |
Cash and cash equivalents at beginning of year | 79.8 | 77 |
Cash and cash equivalents at end of period | $ 98.5 | $ 93.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 24, 2016 | |
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 2015 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 26, 2015 . 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 presentation 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. The Company's fiscal year ends on the last Saturday of December. As a result, the 2016 fiscal year will include 53 weeks, as compared with 52 weeks for fiscal 2015, and the fourth quarter of 2016 will include 14 weeks. 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. |
Shipping and Handling Costs
Shipping and Handling Costs | 9 Months Ended |
Sep. 24, 2016 | |
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, duties, 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 third quarters of 2016 and 2015 were $32.6 million and $32.7 million , respectively, and for the year-to-date periods ended September 24, 2016 and September 26, 2015 were $99.1 million and $103.2 million , respectively. |
Promotional Costs
Promotional Costs | 9 Months Ended |
Sep. 24, 2016 | |
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, addition of new sales force members or other business-critical functions. The awards offered are in the form of 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 $89.5 million and $88.2 million for the third quarters of 2016 and 2015 , respectively, and $281.2 million and $288.0 million for the year-to-date periods ended September 24, 2016 and September 26, 2015 , respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 24, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories (In millions) September 24, December 26, Finished goods $ 214.8 $ 203.2 Work in process 27.4 21.0 Raw materials and supplies 32.8 30.4 Total inventories $ 275.0 $ 254.6 |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 24, 2016 | |
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 39 weeks ended (In millions, except per share amounts) September 24, September 26, September 24, September 26, Net income $ 48.8 $ 36.2 $ 144.6 $ 127.7 Weighted-average shares of common stock outstanding 50.5 49.9 50.5 49.8 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.3 0.4 0.2 0.5 Weighted-average common and common equivalent shares outstanding 50.8 50.3 50.7 50.3 Basic earnings per share $ 0.97 $ 0.72 $ 2.86 $ 2.56 Diluted earnings per share $ 0.96 $ 0.72 $ 2.85 $ 2.54 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 0.9 1.1 1.4 0.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 24, 2016 | |
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 26, 2015 $ (490.6 ) $ 4.3 $ (35.7 ) $ (522.0 ) Other comprehensive income (loss) before reclassifications (20.2 ) 0.2 (0.7 ) (20.7 ) Amounts reclassified from accumulated other comprehensive loss — (3.1 ) 1.5 (1.6 ) Net current-period other comprehensive income (loss) (20.2 ) (2.9 ) 0.8 (22.3 ) Balance at September 24, 2016 $ (510.8 ) $ 1.4 $ (34.9 ) $ (544.3 ) (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 (110.1 ) 10.3 2.2 (97.6 ) Amounts reclassified from accumulated other comprehensive loss — (10.8 ) 2.0 (8.8 ) Net current-period other comprehensive income (loss) (110.1 ) (0.5 ) 4.2 (106.4 ) Balance at September 26, 2015 $ (478.4 ) $ 7.3 $ (44.0 ) $ (515.1 ) Pretax amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of net gain s of $4.3 million and $14.1 million for the year-to-date periods ended September 24, 2016 and September 26, 2015 , respectively. Associated with these items were tax provision s of $1.2 million and $3.3 million , respectively. See Note 11 for further discussion of derivatives. For the year-to-date periods ended September 24, 2016 and September 26, 2015 , pretax amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of prior service benefit s of $1.1 million and $1.0 million , respectively, pension settlement costs of $1.5 million and $0.5 million , respectively, and actuarial losses of $1.3 million and $3.2 million , respectively. The tax benefits associated with these items were $0.2 million and $0.7 million , respectively. See Note 13 for further discussion of pension and other post-retirement benefit costs. |
Re-engineering and Impairment C
Re-engineering and Impairment Costs | 9 Months Ended |
Sep. 24, 2016 | |
Restructuring Charges [Abstract] | |
Re-engineering and Impairment Costs | Re-engineering and Impairment Costs The Company recorded $2.4 million and $0.3 million in re-engineering charges during the third quarters of 2016 and 2015 , respectively, and $5.4 million and $4.5 million for the year-to-date periods ended September 24, 2016 and September 26, 2015 , 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. The balances included in accrued liabilities related to re-engineering and impairment charges as of September 24, 2016 and December 26, 2015 were as follows: (In millions) September 24, December 26, Beginning of the year balance $ 1.7 $ 2.4 Provision 5.4 6.8 Non-cash charges (0.1 ) (0.2 ) Cash expenditures: Severance (4.4 ) (5.8 ) Other (1.0 ) (1.5 ) End of period balance $ 1.6 $ 1.7 The accrual balance as of September 24, 2016 , related primarily to severance payments to be made by the end of the 2016 . Included in the re-engineering and impairment caption on the Company's consolidated statement of income in the year-to-date period of 2015 was $13.5 million in long-term fixed asset impairments in Venezuela. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 9 Months Ended |
Sep. 24, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Intangible Assets The Company's goodwill and intangible assets relate primarily to the December 2005 acquisition of the direct-to-consumer businesses of Sara Lee Corporation. In the third quarters of 2016 and 2015 , the Company completed the annual assessments for all of its reporting units and indefinite-lived intangible assets, concluding there were no impairments. The Company only considers the goodwill balances of $77 million and $28 million associated with the Fuller Mexico and NaturCare Japan reporting units, respectively, to be significant relative to total equity. These assessments included a step 1 impairment evaluation for the goodwill associated with the Fuller Mexico reporting unit as prescribed under ASC 350, Intangibles - Goodwill and Other. The fair value analysis for Fuller Mexico was completed using a combination of the income and market approach with a 75 percent weighting on the income approach. The significant assumptions used in the income approach included estimates regarding future operations and the ability to generate cash flows, including projections of revenue, costs, utilization of assets and capital requirements. The income approach, or discounted cash flow approach, also requires an estimate as to the appropriate discount rate to be used for each entity. The most sensitive estimate in this valuation is the projection of operating cash flows, as these provide the basis for the estimate of fair market value. The Company’s cash flow model used a forecast period of 10 years and a terminal value. The growth rates were determined by reviewing historical results of the operating unit and the historical results of the Company’s other similar business units, along with the expected contribution from growth strategies being implemented. The market approach relies on an analysis of publicly-traded companies similar to Tupperware and deriving a range of revenue and profit multiples. The publicly-traded companies used in the market approach were selected based on their having similar product lines of consumer goods, beauty products and/or companies using a direct-to-consumer distribution method. The resulting multiples were then applied to the reporting unit to determine fair value. The significant assumptions for the Fuller Mexico step 1 analysis included annual revenue growth rates ranging from 1 percent to 5 percent with an average growth rate of 4 percent , including a 3 percent growth rate used in calculating the terminal value. The discount rate used for Fuller Mexico was 14.8 percent . The amount by which the estimated fair value of the Fuller Mexico reporting unit exceeded its carrying value, at 20 percent , was more in the third quarter of 2016 than in the 2015 assessment, primarily due to an increase in the estimated fair market value in connection with improved market pricing metrics and other observable market conditions, as well as a lower carrying value in 2016, reflecting the amortization of the definite-lived Fuller tradename . Though the estimated fair value of the reporting unit exceeded its carrying value in the annual assessment, a smaller sales force size and/or operating performance significantly below current expectations, including changes in projected future revenue, profitability and cash flow, as well as higher working capital, interest rates or cost of capital, could have a negative effect on the fair value of the reporting unit and therefore reduce the fair value below the carrying value. This could result in recording an impairment charge to the goodwill of Fuller Mexico. Also in the third quarter of 2016, the Company performed a qualitative assessment for the goodwill associated with the NaturCare reporting unit and concluded it was more likely than not that the fair value of the reporting unit was greater than its carrying amount. The estimated fair value of the NaturCare reporting unit exceeded the carrying value by 130 percent , as of September 2015, the date of the reporting unit's most recent step 1 analysis. Based on the Company's evaluation of the assumptions and sensitivities associated with the step 1 analysis for NaturCare, the Company concluded that the fair value substantially exceeded its carrying value as of September 2015. Other than for the Fuller Mexico reporting unit, management has concluded there is no significant foreseeable risk of failing a future step 1 impairment test, nor is there significant foreseeable risk of the fair value of the indefinite-lived intangible assets falling below their respective carrying values. Given the sensitivity of fair value valuations to changes in cash flow or market multiples, the Company may be required to recognize an impairment of goodwill or indefinite-lived intangible assets in the future due to changes in market conditions or other factors related to the Company’s performance. Actual results below forecasted results or a decrease in the forecasted future results of the Company’s business plans or changes in discount rates could also result in an impairment charge, as could changes in market characteristics including declines in valuation multiples of comparable publicly-traded companies. Impairment charges would have an adverse impact on the Company’s net income and shareholders' equity. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 24, 2016 | |
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. Effective from the first quarter of 2016, the Nutrimetics business in France, previously reported in the Asia Pacific segment, is being reported in the Europe segment. Comparable information from prior periods has been reclassified to conform with the new presentation. In full year 2015, Nutrimetics France generated less than one half percent of total sales. 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 ® in South Africa and Nutrimetics ® in France, which sell beauty and personal care products. Some units in Asia Pacific also sell beauty and personal care products 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 $87.2 million and $96.7 million in the third quarters of 2016 and 2015 , respectively, and $272.1 million and $325.0 million in the respective year-to-date periods. 13 weeks ended 39 weeks ended (In millions) September 24, September 26, September 24, September 26, Net sales: Europe $ 107.3 $ 118.9 $ 399.6 $ 451.0 Asia Pacific 188.9 191.4 554.8 572.5 Tupperware North America 88.1 84.9 264.4 258.2 Beauty North America 43.2 53.5 145.5 182.3 South America 94.3 72.3 247.9 227.7 Total net sales $ 521.8 $ 521.0 $ 1,612.2 $ 1,691.7 Segment profit (loss): Europe $ (1.8 ) $ 5.4 $ 38.0 $ 60.8 Asia Pacific 46.8 43.8 130.4 124.6 Tupperware North America 17.2 15.3 51.2 48.5 Beauty North America (2.0 ) 0.2 (2.3 ) 3.2 South America 23.9 12.9 52.5 29.8 Total segment profit $ 84.1 $ 77.6 $ 269.8 $ 266.9 Unallocated expenses (14.6 ) (17.9 ) (48.0 ) (49.0 ) Re-engineering and impairment charges (a) (2.4 ) (0.3 ) (5.4 ) (18.0 ) Gains on disposal of assets 24.2 2.0 25.1 13.4 Interest expense, net (12.0 ) (10.8 ) (33.8 ) (35.1 ) Income before taxes $ 79.3 $ 50.6 $ 207.7 $ 178.2 (In millions) September 24, December 26, Identifiable assets: Europe $ 278.1 $ 276.5 Asia Pacific 305.3 290.2 Tupperware North America 141.6 121.2 Beauty North America 222.7 254.0 South America 126.9 96.9 Corporate 580.6 559.4 Total identifiable assets $ 1,655.2 $ 1,598.2 _________________________ (a) See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt
Debt | 9 Months Ended |
Sep. 24, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Obligations (In millions) September 24, 2016 December 26, 2015 Fixed rate senior notes due 2021 $ 599.4 $ 599.3 Five year Revolving Credit Agreement (a) 197.8 155.8 Belgium facility capital lease 9.4 10.6 Other 0.2 5.0 Total debt obligations $ 806.8 $ 770.7 ____________________ (a) $193.3 million and $153.7 million denominated in euros as of September 24, 2016 and December 26, 2015 , respectively. Credit Agreement As of September 24, 2016 , the Company had a weighted average interest rate on outstanding LIBOR based borrowings of 1.50 percent under the Credit Agreement. At September 24, 2016 , the Company had $659.3 million of unused lines of credit, including $400.9 million under the committed, secured Credit Agreement, and $258.4 million available under various uncommitted lines around the world. 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 September 24, 2016 , and currently, the Company had considerable cushion under its financial covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 24, 2016 | |
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 these fluctuations, 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 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 $3.4 million and $2.6 million in the third quarters of 2016 and 2015 , respectively, and $11.2 million and $9.0 million for the respective year-to-date periods. 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 generally 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 current reporting period in other comprehensive income, related to cash flow hedges, will generally 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, net of tax, in other comprehensive income a net gain of $6.5 million and $9.9 million associated with these hedges in the third quarter and year-to-date periods of 2016 , respectively, and a net gain of $27.7 million and $54.1 million associated with such hedges for the respective periods of 2015 . 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 forward contracts used for 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 the hedged items do not generate offsetting cash flows. The net cash flow impact of these currency hedges for the year-to-date periods ended September 24, 2016 and September 26, 2015 were outflow s of $5.6 million and $21.1 million , respectively. The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. As of September 24, 2016 and December 26, 2015 , the notional amounts of outstanding forward contracts to purchase currencies were $118.1 million and $141.9 million , respectively, and the notional amounts of outstanding forward contracts to sell currencies were $118.1 million and $137.4 million , respectively. As of September 24, 2016 , the notional values of the largest positions outstanding were to purchase euro $108.4 million and to sell Indonesian rupiah $21.7 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 September 24, 2016 and December 26, 2015 . 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 Sep 24, Dec 26, Balance sheet location Sep 24, Dec 26, Foreign exchange contracts Non-trade amounts receivable $ 30.9 $ 21.5 Accrued liabilities $ 28.4 $ 14.6 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the third quarters of 2016 and 2015 : 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 2016 2015 2016 2015 Foreign exchange contracts Other expense $ (11.7 ) $ (44.3 ) Other expense $ 11.9 $ 44.4 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the third quarters of 2016 and 2015 : 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 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 1.4 $ 8.2 Cost of products sold $ 0.3 $ 5.6 Interest expense $ (1.4 ) $ (1.0 ) Net equity hedging relationships Foreign exchange contracts 9.3 43.0 Other expense — — Interest expense (5.4 ) (3.5 ) Euro denominated debt 0.8 0.1 Other expense — — Interest expense — — The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the year-to-date periods ended September 24, 2016 and September 26, 2015 : 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 2016 2015 2016 2015 Foreign exchange contracts Other expense $ (23.3 ) $ (84.0 ) Other expense $ 23.6 $ 84.3 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended September 24, 2016 and September 26, 2015 : 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 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 0.9 $ 13.7 Cost of products sold $ 4.3 $ 14.1 Interest expense $ (4.2 ) $ (5.6 ) Net equity hedging relationships Foreign exchange contracts 17.7 75.2 Other expense — — Interest expense (15.1 ) (11.5 ) Euro denominated debt (2.2 ) 9.1 Other expense — — Interest expense — — |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 24, 2016 | |
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 September 24, 2016 and December 26, 2015 . The Company estimates that, based on current market conditions, the value of its 4.75% , 2021 senior notes was $651.3 million at September 24, 2016 , compared with the carrying value of $599.4 million . The higher fair value resulted from changes, since issuance, in the corporate debt markets 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 that consider the Company's credit risk and market related conditions. See Note 11 to the Consolidated Financial Statements for discussion of the Company's derivative instruments and related fair value measurements. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 24, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Components of net periodic benefit cost for the third quarter and year-to-date periods ended September 24, 2016 and September 26, 2015 were as follows: Third Quarter Year-to-Date Pension benefits Post-retirement benefits Pension benefits Post-retirement benefits (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 2.7 $ 2.6 $ 0.1 $ 0.1 $ 8.1 $ 8.1 $ 0.1 $ 0.1 Interest cost 1.6 1.8 0.2 0.1 4.8 5.3 0.6 0.5 Expected return on plan assets (1.3 ) (1.4 ) — — (4.0 ) (4.2 ) — — Settlement/curtailment 0.9 0.1 — — 1.5 0.5 — — Net amortization 0.4 1.0 (0.3 ) (0.3 ) 1.2 3.1 (1.0 ) (0.9 ) Net periodic benefit cost $ 4.3 $ 4.1 $ — $ (0.1 ) $ 11.6 $ 12.8 $ (0.3 ) $ (0.3 ) During the year-to-date periods ending September 24, 2016 and September 26, 2015 , approximately $1.7 million and $2.7 million , respectively, of pretax expenses were reclassified from other comprehensive income to a component of net periodic benefit cost. As they relate to non-U.S. 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 | 9 Months Ended |
Sep. 24, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the third quarter and year-to-date periods of 2016 were 38.4 percent and 30.4 percent compared with 28.5 percent and 28.4 percent , respectively, for the comparable 2015 periods. The 2016 rates were higher primarily due to a gain from the land transactions near the Company's headquarters during the third quarter, which was subject to an effective U.S. federal and state tax rate of 38.5 percent . The 2016 year-to-date effective tax rate is below the U.S. statutory rate primarily due to lower foreign effective tax rates. As of September 24, 2016 and December 26, 2015 , the Company's gross unrecognized tax benefit was $20.7 million and $21.8 million , respectively. The Company estimates that as of September 24, 2016, approximately $19.2 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 $6.8 million and $6.0 million as of the periods ended September 24, 2016 and December 26, 2015 . 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 September 24, 2016 , 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 Suppleme
Statement of Cash Flow Supplemental Disclosure | 9 Months Ended |
Sep. 24, 2016 | |
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 minimum statutorily required withholding taxes in certain jurisdictions. In the year-to-date periods ended September 24, 2016 and September 26, 2015 , 21,189 and 12,847 shares, respectively, were retained to fund withholding taxes, with values totaling $1.1 million and $0.9 million , respectively, which were included as stock repurchases in the Consolidated Statements of Cash Flows. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 24, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Stock option activity for 2016 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 26, 2015 2,100,478 $ 56.92 Expired / Forfeited (8,673 ) 61.48 Exercised (25,292 ) 23.20 Outstanding at September 24, 2016 2,066,513 $ 57.32 $ 18.8 Exercisable at September 24, 2016 1,260,367 $ 55.43 $ 14.1 The intrinsic value of options exercised totaled $0.2 million and $4.7 million in the third quarters of 2016 and 2015 , respectively, and $0.9 million and $7.3 million in the respective year-to-date periods. The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2016 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 26, 2015 550,467 $ 69.71 Time-vested shares granted 45,752 56.56 Market-vested shares granted 30,019 49.55 Performance shares granted 89,321 49.95 Performance share adjustments 12,934 59.23 Vested (134,192 ) 77.80 Forfeited (22,185 ) 72.32 September 24, 2016 572,116 $ 62.05 Compensation expense related to the Company's stock based compensation for the third quarter and year-to-date periods ended September 24, 2016 and September 26, 2015 were as follows: Third Quarter Year-to-Date (In millions) 2016 2015 2016 2015 Stock options $ 0.6 $ 0.4 $ 1.9 $ 1.5 Time, performance and market vested share awards 4.2 3.2 11.1 10.3 As of September 24, 2016 , total unrecognized stock based compensation expense related to all stock based awards was $20.9 million , which is expected to be recognized over a weighted average period of 1.7 years . |
Allowance for Long-Term Receiva
Allowance for Long-Term Receivables | 9 Months Ended |
Sep. 24, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance For Long-Term Receivables | Allowance for Long-Term Receivables As of September 24, 2016 , $10.5 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 September 24, 2016 was as follows: (In millions) Balance at December 26, 2015 $ 11.2 Write-offs (1.6 ) Provision and reclassifications 1.9 Currency translation adjustment 0.4 Balance at September 24, 2016 $ 11.9 |
Guarantor Information
Guarantor Information | 9 Months Ended |
Sep. 24, 2016 | |
Guarantor Information [Abstract] | |
Guarantor Information | Guarantor Information The Company's payment obligations under its senior notes due in 2021 are fully and unconditionally guaranteed, on a senior secured basis, by Dart Industries Inc. (the "Guarantor"). The guarantee is secured by certain "Tupperware" trademarks and service marks owned by the Guarantor. Condensed consolidated financial information as of September 24, 2016 and December 26, 2015 and for the quarter-to-date periods ended September 24, 2016 and September 26, 2015 for Tupperware Brands Corporation (the "Parent"), 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 that the Parent owns directly. There are no significant restrictions on the ability of either the Parent or the Guarantor to obtain 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 September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 523.1 $ (1.3 ) $ 521.8 Other revenue — 25.2 4.1 (29.3 ) — Cost of products sold — 4.1 192.8 (28.5 ) 168.4 Gross margin — 21.1 334.4 (2.1 ) 353.4 Delivery, sales and administrative expense 4.1 22.4 259.9 (2.2 ) 284.2 Re-engineering and impairment charges — 0.8 1.6 — 2.4 Gains on disposal of assets — — 24.2 — 24.2 Operating income (loss) (4.1 ) (2.1 ) 97.1 0.1 91.0 Interest income 5.2 0.3 7.3 (12.0 ) 0.8 Interest expense 9.4 13.2 2.2 (12.0 ) 12.8 Income from equity investments in subsidiaries 54.4 59.3 — (113.7 ) — Other expense (income) — (8.7 ) 8.4 — (0.3 ) Income before income taxes 46.1 53.0 93.8 (113.6 ) 79.3 Provision (benefit) for income taxes (2.7 ) 8.6 24.6 — 30.5 Net income (loss) $ 48.8 $ 44.4 $ 69.2 $ (113.6 ) $ 48.8 Comprehensive income (loss) $ 42.4 $ 38.8 $ 56.0 $ (94.8 ) $ 42.4 Consolidating Statement of Income 13 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 522.4 $ (1.4 ) $ 521.0 Other revenue — 28.7 9.0 (37.7 ) — Cost of products sold — 9.0 200.3 (36.8 ) 172.5 Gross margin — 19.7 331.1 (2.3 ) 348.5 Delivery, sales and administrative expense 3.3 23.1 264.4 (2.3 ) 288.5 Re-engineering and impairment charges — — 0.3 — 0.3 Gains on disposal of assets — — 2.0 — 2.0 Operating income (loss) (3.3 ) (3.4 ) 68.4 — 61.7 Interest income 8.1 5.8 2.1 (15.5 ) 0.5 Interest expense 11.6 9.3 5.9 (15.5 ) 11.3 Income from equity investments in subsidiaries 40.5 46.0 — (86.5 ) — Other expense — 0.3 — — 0.3 Income before income taxes 33.7 38.8 64.6 (86.5 ) 50.6 Provision (benefit) for income taxes (2.5 ) (2.8 ) 19.7 — 14.4 Net income (loss) $ 36.2 $ 41.6 $ 44.9 $ (86.5 ) $ 36.2 Comprehensive income (loss) $ (26.4 ) $ (19.6 ) $ 0.8 $ 18.8 $ (26.4 ) Consolidating Statement of Income 39 Weeks Ended September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,615.7 $ (3.5 ) $ 1,612.2 Other revenue — 80.7 19.5 (100.2 ) — Cost of products sold — 19.5 595.8 (97.0 ) 518.3 Gross margin — 61.2 1,039.4 (6.7 ) 1,093.9 Delivery, sales and administrative expense 10.8 58.6 808.5 (6.8 ) 871.1 Re-engineering and impairment charges — 0.8 4.6 — 5.4 Gains on disposal of assets — — 25.1 — 25.1 Operating income (loss) (10.8 ) 1.8 251.4 0.1 242.5 Interest income 15.4 1.2 19.4 (33.7 ) 2.3 Interest expense 25.9 37.6 6.3 (33.7 ) 36.1 Income from equity investments in subsidiaries 158.5 167.4 — (325.9 ) — Other expense (income) 0.1 (25.0 ) 25.9 — 1.0 Income before income taxes 137.1 157.8 238.6 (325.8 ) 207.7 Provision (benefit) for income taxes (7.5 ) 3.0 67.6 — 63.1 Net income (loss) $ 144.6 $ 154.8 $ 171.0 $ (325.8 ) $ 144.6 Comprehensive income (loss) $ 122.3 $ 135.1 $ 134.3 $ (269.4 ) $ 122.3 Consolidating Statement of Income 39 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,694.0 $ (2.3 ) $ 1,691.7 Other revenue — 85.5 23.9 (109.4 ) — Cost of products sold — 23.9 634.3 (105.0 ) 553.2 Gross margin — 61.6 1,083.6 (6.7 ) 1,138.5 Delivery, sales and administrative expense 10.9 61.8 846.0 (6.7 ) 912.0 Re-engineering and impairment charges — — 18.0 — 18.0 Gains on disposal of assets — — 13.4 — 13.4 Operating income (loss) (10.9 ) (0.2 ) 233.0 — 221.9 Interest income 23.4 18.5 4.5 (44.9 ) 1.5 Interest expense 36.5 26.4 18.6 (44.9 ) 36.6 Income from equity investments in subsidiaries 142.7 145.3 — (288.0 ) — Other expense — 0.3 8.3 — 8.6 Income before income taxes 118.7 136.9 210.6 (288.0 ) 178.2 Provision (benefit) for income taxes (9.0 ) (3.5 ) 63.0 — 50.5 Net income (loss) $ 127.7 $ 140.4 $ 147.6 $ (288.0 ) $ 127.7 Comprehensive income (loss) $ 21.3 $ 30.2 $ 64.3 $ (94.5 ) $ 21.3 Condensed Consolidating Balance Sheet September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 1.2 $ 97.3 $ — $ 98.5 Accounts receivable, net — — 142.4 — 142.4 Inventories — — 275.0 — 275.0 Non-trade amounts receivable, net — 50.2 99.7 (88.5 ) 61.4 Intercompany receivables 20.0 842.1 263.7 (1,125.8 ) — Prepaid expenses and other current assets 1.5 5.9 109.4 (87.9 ) 28.9 Total current assets 21.5 899.4 987.5 (1,302.2 ) 606.2 Deferred income tax benefits, net 142.2 219.0 174.6 — 535.8 Property, plant and equipment, net — 45.4 210.9 — 256.3 Long-term receivables, net — 0.1 13.5 — 13.6 Trademarks and tradenames, net — — 73.3 — 73.3 Goodwill — 2.9 136.8 — 139.7 Investments in subsidiaries 1,303.4 1,301.1 — (2,604.5 ) — Intercompany notes receivable 476.2 96.9 723.1 (1,296.2 ) — Other assets, net 1.3 0.5 71.9 (43.4 ) 30.3 Total assets $ 1,944.6 $ 2,565.3 $ 2,391.6 $ (5,246.3 ) $ 1,655.2 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 1.9 $ 86.6 $ — $ 88.5 Short-term borrowings and current portion of long-term debt and capital lease obligations 95.0 — 104.9 — 199.9 Intercompany payables 766.9 267.3 91.6 (1,125.8 ) — Accrued liabilities 154.7 107.7 258.5 (176.3 ) 344.6 Total current liabilities 1,016.6 376.9 541.6 (1,302.1 ) 633.0 Long-term debt and capital lease obligations 599.4 — 7.5 — 606.9 Intercompany notes payable 126.3 872.8 297.1 (1,296.2 ) — Other liabilities 12.6 69.3 187.2 (43.5 ) 225.6 Shareholders' equity 189.7 1,246.3 1,358.2 (2,604.5 ) 189.7 Total liabilities and shareholders' equity $ 1,944.6 $ 2,565.3 $ 2,391.6 $ (5,246.3 ) $ 1,655.2 Condensed Consolidating Balance Sheet December 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ — $ 79.8 $ — $ 79.8 Accounts receivable, net — — 142.7 — 142.7 Inventories — — 254.6 — 254.6 Non-trade amounts receivable, net 0.1 30.1 109.6 (94.3 ) 45.5 Intercompany receivables 11.8 754.2 228.8 (994.8 ) — Prepaid expenses and other current assets 1.1 3.3 118.1 (94.6 ) 27.9 Total current assets 13.0 787.6 933.6 (1,183.7 ) 550.5 Deferred income tax benefits, net 143.5 219.9 161.5 — 524.9 Property, plant and equipment, net — 46.6 207.0 — 253.6 Long-term receivables, net — 0.1 13.1 — 13.2 Trademarks and tradenames, net — — 82.7 — 82.7 Goodwill — 2.9 143.4 — 146.3 Investments in subsidiaries 1,164.8 1,190.1 — (2,354.9 ) — Intercompany notes receivable 462.0 90.5 579.7 (1,132.2 ) — Other assets, net 1.6 0.6 108.1 (83.3 ) 27.0 Total assets $ 1,784.9 $ 2,338.3 $ 2,229.1 $ (4,754.1 ) $ 1,598.2 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.3 $ 123.5 $ (0.1 ) $ 126.7 Short-term borrowings and current portion of long-term debt and capital lease obligations 90.4 1.2 70.9 — 162.5 Intercompany payables 688.2 224.2 82.4 (994.8 ) — Accrued liabilities 155.1 111.5 247.1 (188.9 ) 324.8 Total current liabilities 933.7 340.2 523.9 (1,183.8 ) 614.0 Long-term debt and capital lease obligations 599.3 — 8.9 — 608.2 Intercompany notes payable 78.5 768.1 285.6 (1,132.2 ) — Other liabilities 12.4 107.8 178.0 (83.2 ) 215.0 Shareholders' equity 161.0 1,122.2 1,232.7 (2,354.9 ) 161.0 Total liabilities and shareholders' equity $ 1,784.9 $ 2,338.3 $ 2,229.1 $ (4,754.1 ) $ 1,598.2 Condensed Consolidating Statement of Cash Flows 39 Weeks Ended September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (10.5 ) $ (27.0 ) $ 135.5 $ (5.7 ) $ 92.3 Investing Activities: Capital expenditures — (8.5 ) (29.7 ) — (38.2 ) Proceeds from disposal of property, plant and equipment — — 31.8 — 31.8 Net intercompany loans 33.7 (99.6 ) (131.2 ) 197.1 — Net cash provided by (used in) investing activities 33.7 (108.1 ) (129.1 ) 197.1 (6.4 ) Financing Activities: Dividend payments to shareholders (104.0 ) — — — (104.0 ) Dividend payments to parent — — (8.9 ) 8.9 — Net proceeds from issuance of senior notes (0.1 ) — 0.1 — — Proceeds from exercise of stock options 0.6 — — — 0.6 Repurchase of common stock (1.1 ) — — — (1.1 ) Repayment of capital lease obligations — — (1.7 ) — (1.7 ) Net change in short-term debt 2.5 (1.2 ) 31.7 — 33.0 Excess tax benefits from share-based payment arrangements 0.3 — — — 0.3 Net intercompany borrowings 78.6 137.5 (15.8 ) (200.3 ) — Net cash provided by (used in) financing activities (23.2 ) 136.3 5.4 (191.4 ) (72.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.7 — 5.7 Net change in cash and cash equivalents — 1.2 17.5 — 18.7 Cash and cash equivalents at beginning of year — — 79.8 — 79.8 Cash and cash equivalents at end of period $ — $ 1.2 $ 97.3 $ — $ 98.5 Condensed Consolidating Statement of Cash Flows 39 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ 456.7 $ (77.3 ) $ 190.4 $ (497.6 ) $ 72.2 Investing Activities: Capital expenditures — (8.7 ) (33.7 ) — (42.4 ) Proceeds from disposal of property, plant and equipment — — 17.5 — 17.5 Net intercompany loans (355.1 ) 89.5 (11.5 ) 277.1 — Return of capital — 105.5 — (105.5 ) — Net cash provided by (used in) investing activities (355.1 ) 186.3 (27.7 ) 171.6 (24.9 ) Financing Activities: Dividend payments to shareholders (103.6 ) — — — (103.6 ) Dividend payments to parent — (400.0 ) (80.8 ) 480.8 — Net proceeds from issuance of senior notes 0.1 — (0.1 ) — — Proceeds from exercise of stock options 7.6 — — — 7.6 Repurchase of common stock (0.9 ) — — — (0.9 ) Repayment of capital lease obligations — — (2.1 ) — (2.1 ) Net change in short-term debt 90.0 (2.3 ) (5.7 ) — 82.0 Debt issuance costs (0.7 ) — — — (0.7 ) Excess tax benefits from share-based payment arrangements 2.5 — — — 2.5 Net intercompany borrowings (96.6 ) 293.8 63.1 (260.3 ) — Return of capital to parent — — (105.5 ) 105.5 — Net cash provided by (used in) financing activities (101.6 ) (108.5 ) (131.1 ) 326.0 (15.2 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (15.8 ) — (16.0 ) Net change in cash and cash equivalents — 0.3 15.8 — 16.1 Cash and cash equivalents at beginning of year — — 77.0 — 77.0 Cash and cash equivalents at end of period $ — $ 0.3 $ 92.8 $ — $ 93.1 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 24, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2016, the FASB issued an amendment to existing guidance on presentation and classification of certain cash receipts and cash payments in the Statement of Cash Flows. This guidance is intended to reduce diversity in the classification of transactions related to debt prepayment or debt extinguishment costs, zero-coupon debt instruments settlement, contingent consideration payments made after a business combination, insurance claims settlement and corporate-owned life insurance settlement, distributions from equity method investments and beneficial interests in securitization transactions. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect adoption of this amendment to have an impact on its Consolidated Financial Statements. 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. In August 2015, the FASB issued an amendment to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The August 2015 amendment also allows early adoption of the revenue standard, but not before the original effective date of December 15, 2016. In March and April 2016, the FASB issued amendments to provide clarification on implementation guidance. In May 2016, the FASB issued amendments to provide clarification on assessment of collectibility criteria, presentation of sales taxes and measurement of noncash consideration. In addition, the amendment provided clarification and included simplification to transition guidance on contract modifications and completed contracts at transition. The Company is currently evaluating the impact of the adoption of this amendment on its Consolidated Financial Statements. In March 2016, the FASB issued an amendment to existing guidance regarding employee share-based payments. Under the amendment, all excess tax benefits and tax deficits will be recognized in the income statement. Regardless of the impact on taxes payable, the tax benefits will be recognized in the current period and excess tax benefits will be classified as an element of cash flow operating activities. In addition, the amendment included simplification to existing guidance on forfeitures, intrinsic value and the withholding of shares for participants' personal income taxes. This guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. There will be an impact of adopting this standard on the consolidated financial statements that likely will lead to increased volatility of the Company's tax rate that will be dependent on the timing and intrinsic value of future share-based compensation award exercises. In February 2016, the FASB issued an amendment to existing guidance on lease accounting that requires the assets and liabilities arising from operating leases be presented in the balance sheet. This guidance is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this amendment on its Consolidated Financial Statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 24, 2016 | |
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 2015 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 26, 2015 . 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 presentation 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. The Company's fiscal year ends on the last Saturday of December. As a result, the 2016 fiscal year will include 53 weeks, as compared with 52 weeks for fiscal 2015, and the fourth quarter of 2016 will include 14 weeks. |
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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories (In millions) September 24, December 26, Finished goods $ 214.8 $ 203.2 Work in process 27.4 21.0 Raw materials and supplies 32.8 30.4 Total inventories $ 275.0 $ 254.6 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Earnings Per Share [Abstract] | |
Elements of Earnings per Share Computations | The elements of the earnings per share computations were as follows: 13 weeks ended 39 weeks ended (In millions, except per share amounts) September 24, September 26, September 24, September 26, Net income $ 48.8 $ 36.2 $ 144.6 $ 127.7 Weighted-average shares of common stock outstanding 50.5 49.9 50.5 49.8 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.3 0.4 0.2 0.5 Weighted-average common and common equivalent shares outstanding 50.8 50.3 50.7 50.3 Basic earnings per share $ 0.97 $ 0.72 $ 2.86 $ 2.56 Diluted earnings per share $ 0.96 $ 0.72 $ 2.85 $ 2.54 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 0.9 1.1 1.4 0.8 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
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 26, 2015 $ (490.6 ) $ 4.3 $ (35.7 ) $ (522.0 ) Other comprehensive income (loss) before reclassifications (20.2 ) 0.2 (0.7 ) (20.7 ) Amounts reclassified from accumulated other comprehensive loss — (3.1 ) 1.5 (1.6 ) Net current-period other comprehensive income (loss) (20.2 ) (2.9 ) 0.8 (22.3 ) Balance at September 24, 2016 $ (510.8 ) $ 1.4 $ (34.9 ) $ (544.3 ) (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 (110.1 ) 10.3 2.2 (97.6 ) Amounts reclassified from accumulated other comprehensive loss — (10.8 ) 2.0 (8.8 ) Net current-period other comprehensive income (loss) (110.1 ) (0.5 ) 4.2 (106.4 ) Balance at September 26, 2015 $ (478.4 ) $ 7.3 $ (44.0 ) $ (515.1 ) |
Re-engineering and Impairment31
Re-engineering and Impairment Costs (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
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 September 24, 2016 and December 26, 2015 were as follows: (In millions) September 24, December 26, Beginning of the year balance $ 1.7 $ 2.4 Provision 5.4 6.8 Non-cash charges (0.1 ) (0.2 ) Cash expenditures: Severance (4.4 ) (5.8 ) Other (1.0 ) (1.5 ) End of period balance $ 1.6 $ 1.7 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 13 weeks ended 39 weeks ended (In millions) September 24, September 26, September 24, September 26, Net sales: Europe $ 107.3 $ 118.9 $ 399.6 $ 451.0 Asia Pacific 188.9 191.4 554.8 572.5 Tupperware North America 88.1 84.9 264.4 258.2 Beauty North America 43.2 53.5 145.5 182.3 South America 94.3 72.3 247.9 227.7 Total net sales $ 521.8 $ 521.0 $ 1,612.2 $ 1,691.7 Segment profit (loss): Europe $ (1.8 ) $ 5.4 $ 38.0 $ 60.8 Asia Pacific 46.8 43.8 130.4 124.6 Tupperware North America 17.2 15.3 51.2 48.5 Beauty North America (2.0 ) 0.2 (2.3 ) 3.2 South America 23.9 12.9 52.5 29.8 Total segment profit $ 84.1 $ 77.6 $ 269.8 $ 266.9 Unallocated expenses (14.6 ) (17.9 ) (48.0 ) (49.0 ) Re-engineering and impairment charges (a) (2.4 ) (0.3 ) (5.4 ) (18.0 ) Gains on disposal of assets 24.2 2.0 25.1 13.4 Interest expense, net (12.0 ) (10.8 ) (33.8 ) (35.1 ) Income before taxes $ 79.3 $ 50.6 $ 207.7 $ 178.2 (In millions) September 24, December 26, Identifiable assets: Europe $ 278.1 $ 276.5 Asia Pacific 305.3 290.2 Tupperware North America 141.6 121.2 Beauty North America 222.7 254.0 South America 126.9 96.9 Corporate 580.6 559.4 Total identifiable assets $ 1,655.2 $ 1,598.2 _________________________ (a) See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt Obligations | (In millions) September 24, 2016 December 26, 2015 Fixed rate senior notes due 2021 $ 599.4 $ 599.3 Five year Revolving Credit Agreement (a) 197.8 155.8 Belgium facility capital lease 9.4 10.6 Other 0.2 5.0 Total debt obligations $ 806.8 $ 770.7 ____________________ (a) $193.3 million and $153.7 million denominated in euros as of September 24, 2016 and December 26, 2015 , respectively. |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule Of Company's Derivative Position And Its Impact On Company Table | 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 September 24, 2016 and December 26, 2015 . 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 Sep 24, Dec 26, Balance sheet location Sep 24, Dec 26, Foreign exchange contracts Non-trade amounts receivable $ 30.9 $ 21.5 Accrued liabilities $ 28.4 $ 14.6 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the third quarters of 2016 and 2015 : 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 2016 2015 2016 2015 Foreign exchange contracts Other expense $ (11.7 ) $ (44.3 ) Other expense $ 11.9 $ 44.4 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the third quarters of 2016 and 2015 : 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 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 1.4 $ 8.2 Cost of products sold $ 0.3 $ 5.6 Interest expense $ (1.4 ) $ (1.0 ) Net equity hedging relationships Foreign exchange contracts 9.3 43.0 Other expense — — Interest expense (5.4 ) (3.5 ) Euro denominated debt 0.8 0.1 Other expense — — Interest expense — — The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the year-to-date periods ended September 24, 2016 and September 26, 2015 : 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 2016 2015 2016 2015 Foreign exchange contracts Other expense $ (23.3 ) $ (84.0 ) Other expense $ 23.6 $ 84.3 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended September 24, 2016 and September 26, 2015 : 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 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 0.9 $ 13.7 Cost of products sold $ 4.3 $ 14.1 Interest expense $ (4.2 ) $ (5.6 ) Net equity hedging relationships Foreign exchange contracts 17.7 75.2 Other expense — — Interest expense (15.1 ) (11.5 ) Euro denominated debt (2.2 ) 9.1 Other expense — — Interest expense — — |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for the third quarter and year-to-date periods ended September 24, 2016 and September 26, 2015 were as follows: Third Quarter Year-to-Date Pension benefits Post-retirement benefits Pension benefits Post-retirement benefits (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 2.7 $ 2.6 $ 0.1 $ 0.1 $ 8.1 $ 8.1 $ 0.1 $ 0.1 Interest cost 1.6 1.8 0.2 0.1 4.8 5.3 0.6 0.5 Expected return on plan assets (1.3 ) (1.4 ) — — (4.0 ) (4.2 ) — — Settlement/curtailment 0.9 0.1 — — 1.5 0.5 — — Net amortization 0.4 1.0 (0.3 ) (0.3 ) 1.2 3.1 (1.0 ) (0.9 ) Net periodic benefit cost $ 4.3 $ 4.1 $ — $ (0.1 ) $ 11.6 $ 12.8 $ (0.3 ) $ (0.3 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Stock option activity for 2016 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 26, 2015 2,100,478 $ 56.92 Expired / Forfeited (8,673 ) 61.48 Exercised (25,292 ) 23.20 Outstanding at September 24, 2016 2,066,513 $ 57.32 $ 18.8 Exercisable at September 24, 2016 1,260,367 $ 55.43 $ 14.1 |
Time Vested, Performance Vested and Market Vested Share Awards Activity | The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2016 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 26, 2015 550,467 $ 69.71 Time-vested shares granted 45,752 56.56 Market-vested shares granted 30,019 49.55 Performance shares granted 89,321 49.95 Performance share adjustments 12,934 59.23 Vested (134,192 ) 77.80 Forfeited (22,185 ) 72.32 September 24, 2016 572,116 $ 62.05 |
Schedule of Compensation Expense | Compensation expense related to the Company's stock based compensation for the third quarter and year-to-date periods ended September 24, 2016 and September 26, 2015 were as follows: Third Quarter Year-to-Date (In millions) 2016 2015 2016 2015 Stock options $ 0.6 $ 0.4 $ 1.9 $ 1.5 Time, performance and market vested share awards 4.2 3.2 11.1 10.3 |
Allowance for Long-Term Recei37
Allowance for Long-Term Receivables (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
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 September 24, 2016 was as follows: (In millions) Balance at December 26, 2015 $ 11.2 Write-offs (1.6 ) Provision and reclassifications 1.9 Currency translation adjustment 0.4 Balance at September 24, 2016 $ 11.9 |
Guarantor Information (Tables)
Guarantor Information (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Guarantor Information [Abstract] | |
Consolidating Statement of Income | Consolidating Statement of Income 13 Weeks Ended September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 523.1 $ (1.3 ) $ 521.8 Other revenue — 25.2 4.1 (29.3 ) — Cost of products sold — 4.1 192.8 (28.5 ) 168.4 Gross margin — 21.1 334.4 (2.1 ) 353.4 Delivery, sales and administrative expense 4.1 22.4 259.9 (2.2 ) 284.2 Re-engineering and impairment charges — 0.8 1.6 — 2.4 Gains on disposal of assets — — 24.2 — 24.2 Operating income (loss) (4.1 ) (2.1 ) 97.1 0.1 91.0 Interest income 5.2 0.3 7.3 (12.0 ) 0.8 Interest expense 9.4 13.2 2.2 (12.0 ) 12.8 Income from equity investments in subsidiaries 54.4 59.3 — (113.7 ) — Other expense (income) — (8.7 ) 8.4 — (0.3 ) Income before income taxes 46.1 53.0 93.8 (113.6 ) 79.3 Provision (benefit) for income taxes (2.7 ) 8.6 24.6 — 30.5 Net income (loss) $ 48.8 $ 44.4 $ 69.2 $ (113.6 ) $ 48.8 Comprehensive income (loss) $ 42.4 $ 38.8 $ 56.0 $ (94.8 ) $ 42.4 Consolidating Statement of Income 13 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 522.4 $ (1.4 ) $ 521.0 Other revenue — 28.7 9.0 (37.7 ) — Cost of products sold — 9.0 200.3 (36.8 ) 172.5 Gross margin — 19.7 331.1 (2.3 ) 348.5 Delivery, sales and administrative expense 3.3 23.1 264.4 (2.3 ) 288.5 Re-engineering and impairment charges — — 0.3 — 0.3 Gains on disposal of assets — — 2.0 — 2.0 Operating income (loss) (3.3 ) (3.4 ) 68.4 — 61.7 Interest income 8.1 5.8 2.1 (15.5 ) 0.5 Interest expense 11.6 9.3 5.9 (15.5 ) 11.3 Income from equity investments in subsidiaries 40.5 46.0 — (86.5 ) — Other expense — 0.3 — — 0.3 Income before income taxes 33.7 38.8 64.6 (86.5 ) 50.6 Provision (benefit) for income taxes (2.5 ) (2.8 ) 19.7 — 14.4 Net income (loss) $ 36.2 $ 41.6 $ 44.9 $ (86.5 ) $ 36.2 Comprehensive income (loss) $ (26.4 ) $ (19.6 ) $ 0.8 $ 18.8 $ (26.4 ) Consolidating Statement of Income 39 Weeks Ended September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,615.7 $ (3.5 ) $ 1,612.2 Other revenue — 80.7 19.5 (100.2 ) — Cost of products sold — 19.5 595.8 (97.0 ) 518.3 Gross margin — 61.2 1,039.4 (6.7 ) 1,093.9 Delivery, sales and administrative expense 10.8 58.6 808.5 (6.8 ) 871.1 Re-engineering and impairment charges — 0.8 4.6 — 5.4 Gains on disposal of assets — — 25.1 — 25.1 Operating income (loss) (10.8 ) 1.8 251.4 0.1 242.5 Interest income 15.4 1.2 19.4 (33.7 ) 2.3 Interest expense 25.9 37.6 6.3 (33.7 ) 36.1 Income from equity investments in subsidiaries 158.5 167.4 — (325.9 ) — Other expense (income) 0.1 (25.0 ) 25.9 — 1.0 Income before income taxes 137.1 157.8 238.6 (325.8 ) 207.7 Provision (benefit) for income taxes (7.5 ) 3.0 67.6 — 63.1 Net income (loss) $ 144.6 $ 154.8 $ 171.0 $ (325.8 ) $ 144.6 Comprehensive income (loss) $ 122.3 $ 135.1 $ 134.3 $ (269.4 ) $ 122.3 Consolidating Statement of Income 39 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,694.0 $ (2.3 ) $ 1,691.7 Other revenue — 85.5 23.9 (109.4 ) — Cost of products sold — 23.9 634.3 (105.0 ) 553.2 Gross margin — 61.6 1,083.6 (6.7 ) 1,138.5 Delivery, sales and administrative expense 10.9 61.8 846.0 (6.7 ) 912.0 Re-engineering and impairment charges — — 18.0 — 18.0 Gains on disposal of assets — — 13.4 — 13.4 Operating income (loss) (10.9 ) (0.2 ) 233.0 — 221.9 Interest income 23.4 18.5 4.5 (44.9 ) 1.5 Interest expense 36.5 26.4 18.6 (44.9 ) 36.6 Income from equity investments in subsidiaries 142.7 145.3 — (288.0 ) — Other expense — 0.3 8.3 — 8.6 Income before income taxes 118.7 136.9 210.6 (288.0 ) 178.2 Provision (benefit) for income taxes (9.0 ) (3.5 ) 63.0 — 50.5 Net income (loss) $ 127.7 $ 140.4 $ 147.6 $ (288.0 ) $ 127.7 Comprehensive income (loss) $ 21.3 $ 30.2 $ 64.3 $ (94.5 ) $ 21.3 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 1.2 $ 97.3 $ — $ 98.5 Accounts receivable, net — — 142.4 — 142.4 Inventories — — 275.0 — 275.0 Non-trade amounts receivable, net — 50.2 99.7 (88.5 ) 61.4 Intercompany receivables 20.0 842.1 263.7 (1,125.8 ) — Prepaid expenses and other current assets 1.5 5.9 109.4 (87.9 ) 28.9 Total current assets 21.5 899.4 987.5 (1,302.2 ) 606.2 Deferred income tax benefits, net 142.2 219.0 174.6 — 535.8 Property, plant and equipment, net — 45.4 210.9 — 256.3 Long-term receivables, net — 0.1 13.5 — 13.6 Trademarks and tradenames, net — — 73.3 — 73.3 Goodwill — 2.9 136.8 — 139.7 Investments in subsidiaries 1,303.4 1,301.1 — (2,604.5 ) — Intercompany notes receivable 476.2 96.9 723.1 (1,296.2 ) — Other assets, net 1.3 0.5 71.9 (43.4 ) 30.3 Total assets $ 1,944.6 $ 2,565.3 $ 2,391.6 $ (5,246.3 ) $ 1,655.2 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 1.9 $ 86.6 $ — $ 88.5 Short-term borrowings and current portion of long-term debt and capital lease obligations 95.0 — 104.9 — 199.9 Intercompany payables 766.9 267.3 91.6 (1,125.8 ) — Accrued liabilities 154.7 107.7 258.5 (176.3 ) 344.6 Total current liabilities 1,016.6 376.9 541.6 (1,302.1 ) 633.0 Long-term debt and capital lease obligations 599.4 — 7.5 — 606.9 Intercompany notes payable 126.3 872.8 297.1 (1,296.2 ) — Other liabilities 12.6 69.3 187.2 (43.5 ) 225.6 Shareholders' equity 189.7 1,246.3 1,358.2 (2,604.5 ) 189.7 Total liabilities and shareholders' equity $ 1,944.6 $ 2,565.3 $ 2,391.6 $ (5,246.3 ) $ 1,655.2 Condensed Consolidating Balance Sheet December 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ — $ 79.8 $ — $ 79.8 Accounts receivable, net — — 142.7 — 142.7 Inventories — — 254.6 — 254.6 Non-trade amounts receivable, net 0.1 30.1 109.6 (94.3 ) 45.5 Intercompany receivables 11.8 754.2 228.8 (994.8 ) — Prepaid expenses and other current assets 1.1 3.3 118.1 (94.6 ) 27.9 Total current assets 13.0 787.6 933.6 (1,183.7 ) 550.5 Deferred income tax benefits, net 143.5 219.9 161.5 — 524.9 Property, plant and equipment, net — 46.6 207.0 — 253.6 Long-term receivables, net — 0.1 13.1 — 13.2 Trademarks and tradenames, net — — 82.7 — 82.7 Goodwill — 2.9 143.4 — 146.3 Investments in subsidiaries 1,164.8 1,190.1 — (2,354.9 ) — Intercompany notes receivable 462.0 90.5 579.7 (1,132.2 ) — Other assets, net 1.6 0.6 108.1 (83.3 ) 27.0 Total assets $ 1,784.9 $ 2,338.3 $ 2,229.1 $ (4,754.1 ) $ 1,598.2 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.3 $ 123.5 $ (0.1 ) $ 126.7 Short-term borrowings and current portion of long-term debt and capital lease obligations 90.4 1.2 70.9 — 162.5 Intercompany payables 688.2 224.2 82.4 (994.8 ) — Accrued liabilities 155.1 111.5 247.1 (188.9 ) 324.8 Total current liabilities 933.7 340.2 523.9 (1,183.8 ) 614.0 Long-term debt and capital lease obligations 599.3 — 8.9 — 608.2 Intercompany notes payable 78.5 768.1 285.6 (1,132.2 ) — Other liabilities 12.4 107.8 178.0 (83.2 ) 215.0 Shareholders' equity 161.0 1,122.2 1,232.7 (2,354.9 ) 161.0 Total liabilities and shareholders' equity $ 1,784.9 $ 2,338.3 $ 2,229.1 $ (4,754.1 ) $ 1,598.2 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows 39 Weeks Ended September 24, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (10.5 ) $ (27.0 ) $ 135.5 $ (5.7 ) $ 92.3 Investing Activities: Capital expenditures — (8.5 ) (29.7 ) — (38.2 ) Proceeds from disposal of property, plant and equipment — — 31.8 — 31.8 Net intercompany loans 33.7 (99.6 ) (131.2 ) 197.1 — Net cash provided by (used in) investing activities 33.7 (108.1 ) (129.1 ) 197.1 (6.4 ) Financing Activities: Dividend payments to shareholders (104.0 ) — — — (104.0 ) Dividend payments to parent — — (8.9 ) 8.9 — Net proceeds from issuance of senior notes (0.1 ) — 0.1 — — Proceeds from exercise of stock options 0.6 — — — 0.6 Repurchase of common stock (1.1 ) — — — (1.1 ) Repayment of capital lease obligations — — (1.7 ) — (1.7 ) Net change in short-term debt 2.5 (1.2 ) 31.7 — 33.0 Excess tax benefits from share-based payment arrangements 0.3 — — — 0.3 Net intercompany borrowings 78.6 137.5 (15.8 ) (200.3 ) — Net cash provided by (used in) financing activities (23.2 ) 136.3 5.4 (191.4 ) (72.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.7 — 5.7 Net change in cash and cash equivalents — 1.2 17.5 — 18.7 Cash and cash equivalents at beginning of year — — 79.8 — 79.8 Cash and cash equivalents at end of period $ — $ 1.2 $ 97.3 $ — $ 98.5 Condensed Consolidating Statement of Cash Flows 39 Weeks Ended September 26, 2015 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ 456.7 $ (77.3 ) $ 190.4 $ (497.6 ) $ 72.2 Investing Activities: Capital expenditures — (8.7 ) (33.7 ) — (42.4 ) Proceeds from disposal of property, plant and equipment — — 17.5 — 17.5 Net intercompany loans (355.1 ) 89.5 (11.5 ) 277.1 — Return of capital — 105.5 — (105.5 ) — Net cash provided by (used in) investing activities (355.1 ) 186.3 (27.7 ) 171.6 (24.9 ) Financing Activities: Dividend payments to shareholders (103.6 ) — — — (103.6 ) Dividend payments to parent — (400.0 ) (80.8 ) 480.8 — Net proceeds from issuance of senior notes 0.1 — (0.1 ) — — Proceeds from exercise of stock options 7.6 — — — 7.6 Repurchase of common stock (0.9 ) — — — (0.9 ) Repayment of capital lease obligations — — (2.1 ) — (2.1 ) Net change in short-term debt 90.0 (2.3 ) (5.7 ) — 82.0 Debt issuance costs (0.7 ) — — — (0.7 ) Excess tax benefits from share-based payment arrangements 2.5 — — — 2.5 Net intercompany borrowings (96.6 ) 293.8 63.1 (260.3 ) — Return of capital to parent — — (105.5 ) 105.5 — Net cash provided by (used in) financing activities (101.6 ) (108.5 ) (131.1 ) 326.0 (15.2 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (15.8 ) — (16.0 ) Net change in cash and cash equivalents — 0.3 15.8 — 16.1 Cash and cash equivalents at beginning of year — — 77.0 — 77.0 Cash and cash equivalents at end of period $ — $ 0.3 $ 92.8 $ — $ 93.1 |
Shipping and Handling Costs (De
Shipping and Handling Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Shipping and Handling Costs [Abstract] | ||||
Distribution costs | $ 32.6 | $ 32.7 | $ 99.1 | $ 103.2 |
Promotional Costs (Details)
Promotional Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Promotional Costs [Abstract] | ||||
Promotional and other sales force compensation expenses | $ 89.5 | $ 88.2 | $ 281.2 | $ 288 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 |
Inventory, Net [Abstract] | ||
Finished goods | $ 214.8 | $ 203.2 |
Work in process | 27.4 | 21 |
Raw materials and supplies | 32.8 | 30.4 |
Total inventories | $ 275 | $ 254.6 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Net Income Per Common Share [Line Items] | ||||
Net income | $ 48.8 | $ 36.2 | $ 144.6 | $ 127.7 |
Weighted-average shares of common stock outstanding | 50.5 | 49.9 | 50.5 | 49.8 |
Common equivalent shares: | ||||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.3 | 0.4 | 0.2 | 0.5 |
Weighted-average common and common equivalent shares outstanding | 50.8 | 50.3 | 50.7 | 50.3 |
Basic earnings per share | $ 0.97 | $ 0.72 | $ 2.86 | $ 2.56 |
Diluted earnings per share | $ 0.96 | $ 0.72 | $ 2.85 | $ 2.54 |
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 0.9 | 1.1 | 1.4 | 0.8 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (544.3) | $ (515.1) | $ (544.3) | $ (515.1) | $ (522) | $ (408.7) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (20.7) | (97.6) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1.6) | (8.8) | ||||
Other Comprehensive Income (Loss), Net of Tax | (6.4) | (62.6) | (22.3) | (106.4) | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, before tax | 4.3 | 14.1 | ||||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, tax | (1.2) | (3.3) | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, prior service benefit, before tax | 1.1 | 1 | ||||
Amounts reclassified from accumulated other comprehensive loss, Pension and Other Postretirement items, Settlement ,before Tax | (1.5) | (0.5) | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, actuarial losses, before tax | (1.3) | (3.2) | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | 0.2 | 0.7 | ||||
Foreign Currency Items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | (510.8) | (478.4) | (510.8) | (478.4) | (490.6) | (368.3) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (20.2) | (110.1) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | (20.2) | (110.1) | ||||
Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | 1.4 | 7.3 | 1.4 | 7.3 | 4.3 | 7.8 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0.2 | 10.3 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3.1) | (10.8) | ||||
Other Comprehensive Income (Loss), Net of Tax | (2.9) | (0.5) | ||||
Pension and Other Post-retirement Items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (34.9) | $ (44) | (34.9) | (44) | $ (35.7) | $ (48.2) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (0.7) | 2.2 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.5 | 2 | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 0.8 | $ 4.2 |
Re-engineering and Impairment44
Re-engineering and Impairment Costs (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning of the year balance | $ 1.7 | $ 2.4 | $ 2.4 | |||
Provision | $ 2.4 | $ 0.3 | 5.4 | $ 4.5 | 6.8 | |
Non-cash charges | (0.1) | (0.2) | ||||
End of period balance | $ 1.6 | 1.6 | 1.7 | |||
Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Cash expenditures | (4.4) | (5.8) | ||||
Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Cash expenditures | $ (1) | $ (1.5) | ||||
VENEZUELA | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Impairment of Long-Lived Assets Held-for-use | $ 13.5 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | |
Goodwill [Line Items] | |||
Goodwill | $ 139,700,000 | $ 146,300,000 | |
Goodwill [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Cash flow model, forecast period | 10 years | ||
Fuller Mexico [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 77,000,000 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | ||
NaturCare [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 28,000,000 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 130.00% | ||
Income Approach Valuation Technique [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Fair Value, Intangible Assets, Percent Calculated Using Income Approach | 75.00% | ||
Income Approach Valuation Technique [Member] | Fuller Mexico [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Fair Value Inputs, Terminal Growth Rate | 3.00% | ||
Fair Value Inputs, Discount Rate | 14.80% | ||
Minimum [Member] | Income Approach Valuation Technique [Member] | Fuller Mexico [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 1.00% | ||
Maximum [Member] | Income Approach Valuation Technique [Member] | Fuller Mexico [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 5.00% | ||
Weighted Average [Member] | Income Approach Valuation Technique [Member] | Fuller Mexico [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 4.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 521.8 | $ 521 | $ 1,612.2 | $ 1,691.7 | ||
Segment profit (loss) | 84.1 | 77.6 | 269.8 | 266.9 | ||
Unallocated expenses | (14.6) | (17.9) | (48) | (49) | ||
Re-engineering and impairment charges (a) | (2.4) | (0.3) | (5.4) | (18) | [1] | |
Gains on disposal of assets | 24.2 | 2 | 25.1 | 13.4 | ||
Interest expense, net | (12) | (10.8) | (33.8) | (35.1) | ||
Income before income taxes | 79.3 | 50.6 | 207.7 | 178.2 | ||
Total identifiable assets | 1,655.2 | 1,655.2 | $ 1,598.2 | |||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 107.3 | 118.9 | 399.6 | 451 | ||
Segment profit (loss) | (1.8) | 5.4 | 38 | 60.8 | ||
Total identifiable assets | 278.1 | 278.1 | 276.5 | |||
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 188.9 | 191.4 | 554.8 | 572.5 | ||
Segment profit (loss) | 46.8 | 43.8 | 130.4 | 124.6 | ||
Total identifiable assets | 305.3 | 305.3 | 290.2 | |||
Tupperware North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 88.1 | 84.9 | 264.4 | 258.2 | ||
Segment profit (loss) | 17.2 | 15.3 | 51.2 | 48.5 | ||
Total identifiable assets | 141.6 | 141.6 | 121.2 | |||
Beauty North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 43.2 | 53.5 | 145.5 | 182.3 | ||
Segment profit (loss) | (2) | 0.2 | (2.3) | 3.2 | ||
Total identifiable assets | 222.7 | 222.7 | 254 | |||
South America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 94.3 | 72.3 | 247.9 | 227.7 | ||
Segment profit (loss) | 23.9 | 12.9 | 52.5 | 29.8 | ||
Total identifiable assets | 126.9 | 126.9 | 96.9 | |||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total identifiable assets | 580.6 | 580.6 | $ 559.4 | |||
Beauty and Personal Care Products [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 87.2 | $ 96.7 | $ 272.1 | $ 325 | ||
Sales Revenue, Segment [Member] | Nutrimetics France [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of Company sales | 0.50% | |||||
[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 ($) $ in Millions | 9 Months Ended | ||
Sep. 24, 2016 | Dec. 26, 2015 | ||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 806.8 | $ 770.7 | |
Unused lines of credit | 659.3 | ||
Senior Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 599.4 | 599.3 | |
Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | [1] | $ 197.8 | 155.8 |
Variable rate basis | LIBOR | ||
Unused lines of credit | $ 400.9 | ||
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 | 1.50% | ||
Belgium Facility Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations | $ 9.4 | 10.6 | |
Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 0.2 | 5 | |
Uncommitted Lines of credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 258.4 | ||
Euro | Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 193.3 | $ 153.7 | |
[1] | (a)$193.3 million and $153.7 million denominated in euros |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net cash impact from hedging activity | $ (5.6) | $ (21.1) | ||
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) | $ 3.4 | $ 2.6 | $ 11.2 | 9 |
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) | (1.4) | (1) | $ (4.2) | (5.6) |
Net Equity Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 6.5 | 27.7 | 9.9 | 54.1 |
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) | $ (5.4) | $ (3.5) | $ (15.1) | $ (11.5) |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) - Forward Contracts [Member] - USD ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 118.1 | $ 141.9 |
Derivative Liability, Notional Amount | 118.1 | $ 137.4 |
Euro | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 108.4 | |
Indonesia, Rupiahs | Short [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 21.7 |
Derivative Instruments and He50
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 ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 |
Non-trade amounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 30.9 | $ 21.5 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 28.4 | $ 14.6 |
Derivative Instruments and He51
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
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) | $ 3.4 | $ 2.6 | $ 11.2 | $ 9 |
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 | (11.7) | (44.3) | (23.3) | (84) |
Amount of gain or (loss) recognized in income on related hedged items | 11.9 | 44.4 | 23.6 | 84.3 |
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) | 1.4 | 8.2 | 0.9 | 13.7 |
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) | 0.3 | 5.6 | 4.3 | 14.1 |
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) | (1.4) | (1) | (4.2) | (5.6) |
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) | 9.3 | 43 | 17.7 | 75.2 |
Net Equity Hedging [Member] | Euro Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | 0.8 | 0.1 | (2.2) | 9.1 |
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 | 0 | 0 |
Net Equity Hedging [Member] | Other expense | Euro Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | 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) | (5.4) | (3.5) | (15.1) | (11.5) |
Net Equity Hedging [Member] | Interest expense | Euro Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Senior Notes Due 2021 [Member] - USD ($) $ in Millions | Sep. 24, 2016 | Dec. 26, 2015 | Jun. 02, 2011 |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.75% | ||
Long-term Debt | $ 599.4 | $ 599.3 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | $ 651.3 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization | $ 1.7 | $ 2.7 | ||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2.7 | $ 2.6 | 8.1 | 8.1 |
Interest cost | 1.6 | 1.8 | 4.8 | 5.3 |
Expected return on plan assets | (1.3) | (1.4) | (4) | (4.2) |
Settlements and Curtailments | 0.9 | 0.1 | 1.5 | 0.5 |
Net amortization | 0.4 | 1 | 1.2 | 3.1 |
Net periodic benefit cost | 4.3 | 4.1 | 11.6 | 12.8 |
Post-retirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.1 | 0.6 | 0.5 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlements and Curtailments | 0 | 0 | 0 | 0 |
Net amortization | (0.3) | (0.3) | (1) | (0.9) |
Net periodic benefit cost | $ 0 | $ (0.1) | $ (0.3) | $ (0.3) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | |
Income Taxes [Line Items] | |||||
Effective tax rate | 38.40% | 28.50% | 30.40% | 28.40% | |
Gross unrecognized tax benefit | $ 20.7 | $ 20.7 | $ 21.8 | ||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 19.2 | 19.2 | |||
Accrued interest and penalties related to uncertain tax positions | 6.8 | 6.8 | $ 6 | ||
Decrease in Unrecognized Tax Benefits Reasonably Possible, Amount of Unrecorded Benefit | $ 1 | $ 1 | |||
Gain (Loss) on Sale of Properties | |||||
Income Taxes [Line Items] | |||||
Effective tax rate | 38.50% |
Statement of Cash Flow Supple55
Statement of Cash Flow Supplemental Disclosure (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Other Significant Noncash Transactions [Line Items] | ||
Shares Paid for Tax Withholding for Share Based Compensation | 21,189 | 12,847 |
Shares Paid For Tax Withholding For Share Based Compensation, Value | $ 1.1 | $ 0.9 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
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 | $ 20.9 | $ 20.9 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at December 26, 2015 | 2,100,478 | |||
Weighted Average Exercise Price Per Share Outstanding, Beginning of Period | $ 56.92 | |||
Expired / Forfeited | (8,673) | |||
Weighted Average Exercise Price Per Share Outstanding, Expired/Forfeited | $ 61.48 | |||
Exercised | (25,292) | |||
Weighted Average Exercise Price Per Shares Outstanding, Exercised | $ 23.20 | |||
Outstanding at September 24, 2016 | 2,066,513 | 2,066,513 | ||
Weighted Average Exercise Price Per Share Outstanding, End of Period | $ 57.32 | $ 57.32 | ||
Outstanding Shares Subject to Option, Aggregate Intrinsic Value | $ 18.8 | $ 18.8 | ||
Exercisable at September 24, 2016 | 1,260,367 | 1,260,367 | ||
Weighted Average Exercise Price Per Share Exercisable, End of Period | $ 55.43 | $ 55.43 | ||
Options Exercisable at End of Period, Aggregate Intrinsic Value | $ 14.1 | $ 14.1 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 0.2 | $ 4.7 | 0.9 | $ 7.3 |
Stock Option Expense | $ 0.6 | 0.4 | $ 1.9 | 1.5 |
Time Vested, Performance Vested and Market Vested Share 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 | 550,467 | |||
Weighted Average Grant Date Fair Value, Beginning of Period | $ 69.71 | |||
Shares Outstanding, Vested | (134,192) | |||
Weighted Average Grant Date Fair Value, Vested | $ 77.80 | |||
Shares Outstanding, Forfeited | (22,185) | |||
Weighted Average Grant Date Fair Value, Forfeited | $ 72.32 | |||
Shares Outstanding, End of Period | 572,116 | 572,116 | ||
Weighted Average Grant Date Fair Value, End of Period | $ 62.05 | $ 62.05 | ||
Time, Performance and Market Vested Share Awards Expense | $ 4.2 | $ 3.2 | $ 11.1 | $ 10.3 |
Time Vested 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 | 45,752 | |||
Weighted Average Grant Date Fair Value, Granted | $ 56.56 | |||
Market Vested 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 | 30,019 | |||
Weighted Average Grant Date Fair Value, Granted | $ 49.55 | |||
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 | 89,321 | |||
Weighted Average Grant Date Fair Value, Granted | $ 49.95 | |||
Shares Outstanding, Performance Share Adjustments | 12,934 | |||
Weighted Average Grant Date Fair Value, Performance Share Adjustments | $ 59.23 |
Allowance for Long-Term Recei57
Allowance for Long-Term Receivables (Details) $ in Millions | 9 Months Ended |
Sep. 24, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Long-Term Receivables Past Due | $ 10.5 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Balance at December 26, 2015 | 11.2 |
Write-offs | (1.6) |
Provision and reclassifications | 1.9 |
Currency translation adjustment | 0.4 |
Balance at September 24, 2016 | $ 11.9 |
Guarantor Information (Details)
Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | ||
Net sales | $ 521.8 | $ 521 | $ 1,612.2 | $ 1,691.7 | |||
Other revenue | 0 | 0 | 0 | 0 | |||
Cost of products sold | 168.4 | 172.5 | 518.3 | 553.2 | |||
Gross margin | 353.4 | 348.5 | 1,093.9 | 1,138.5 | |||
Delivery, sales and administrative expense | 284.2 | 288.5 | 871.1 | 912 | |||
Re-engineering and impairment charges | 2.4 | 0.3 | 5.4 | 18 | [1] | ||
Gains on disposal of assets | 24.2 | 2 | 25.1 | 13.4 | |||
Operating income | 91 | 61.7 | 242.5 | 221.9 | |||
Interest income | 0.8 | 0.5 | 2.3 | 1.5 | |||
Interest expense | 12.8 | 11.3 | 36.1 | 36.6 | |||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | |||
Other (income) expense | (0.3) | 0.3 | 1 | 8.6 | |||
Income before income taxes | 79.3 | 50.6 | 207.7 | 178.2 | |||
Provision (benefit) for income taxes | 30.5 | 14.4 | 63.1 | 50.5 | |||
Net income | 48.8 | 36.2 | 144.6 | 127.7 | |||
Comprehensive income (loss) | 42.4 | (26.4) | 122.3 | 21.3 | |||
ASSETS | |||||||
Cash and cash equivalents | 98.5 | 93.1 | 98.5 | 93.1 | $ 79.8 | $ 77 | |
Accounts receivable, net | 142.4 | 142.4 | 142.7 | ||||
Inventories | 275 | 275 | 254.6 | ||||
Non-trade amounts receivable, net | 61.4 | 61.4 | 45.5 | ||||
Intercompany receivables | 0 | 0 | 0 | ||||
Prepaid expenses and other current assets | 28.9 | 28.9 | 27.9 | ||||
Total current assets | 606.2 | 606.2 | 550.5 | ||||
Deferred income tax benefits, net | 535.8 | 535.8 | 524.9 | ||||
Property, plant and equipment, net | 256.3 | 256.3 | 253.6 | ||||
Long-term receivables, net | 13.6 | 13.6 | 13.2 | ||||
Trademarks and tradenames, net | 73.3 | 73.3 | 82.7 | ||||
Goodwill | 139.7 | 139.7 | 146.3 | ||||
Investments in subsidiaries | 0 | 0 | 0 | ||||
Intercompany notes receivable | 0 | 0 | 0 | ||||
Other assets, net | 30.3 | 30.3 | 27 | ||||
Total assets | 1,655.2 | 1,655.2 | 1,598.2 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | 88.5 | 88.5 | 126.7 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 199.9 | 199.9 | 162.5 | ||||
Intercompany payables | 0 | 0 | 0 | ||||
Accrued liabilities | 344.6 | 344.6 | 324.8 | ||||
Total current liabilities | 633 | 633 | 614 | ||||
Long-term debt and capital lease obligations | 606.9 | 606.9 | 608.2 | ||||
Intercompany notes payable | 0 | 0 | 0 | ||||
Other liabilities | 225.6 | 225.6 | 215 | ||||
Total shareholders' equity | 189.7 | 189.7 | 161 | ||||
Total liabilities and shareholders' equity | 1,655.2 | 1,655.2 | 1,598.2 | ||||
Operating Activities: | |||||||
Net cash provided by operating activities | 92.3 | 72.2 | |||||
Investing Activities: | |||||||
Capital expenditures | (38.2) | (42.4) | |||||
Proceeds from disposal of property, plant and equipment | 31.8 | 17.5 | |||||
Net intercompany loans | 0 | 0 | |||||
Return of capital | 0 | ||||||
Net cash used in investing activities | (6.4) | (24.9) | |||||
Financing Activities: | |||||||
Dividend payments to shareholders | (104) | (103.6) | |||||
Cash Dividends Paid to Parent Company | 0 | 0 | |||||
Proceeds from (Repayments of) Notes Payable | 0 | 0 | |||||
Proceeds from exercise of stock options | 0.6 | 7.6 | |||||
Repurchase of common stock | (1.1) | (0.9) | |||||
Repayment of capital lease obligations | (1.7) | (2.1) | |||||
Net change in short-term debt | 33 | 82 | |||||
Payments of Debt Issuance Costs | 0 | (0.7) | |||||
Excess tax benefits from share-based payment arrangements | 0.3 | 2.5 | |||||
Net intercompany borrowings | 0 | 0 | |||||
Return of capital to parent | 0 | ||||||
Net cash used in financing activities | (72.9) | (15.2) | |||||
Effect of exchange rate changes on cash and cash equivalents | 5.7 | (16) | |||||
Net change in cash and cash equivalents | 18.7 | 16.1 | |||||
Parent | |||||||
Net sales | 0 | 0 | 0 | 0 | |||
Other revenue | 0 | 0 | 0 | 0 | |||
Cost of products sold | 0 | 0 | 0 | 0 | |||
Gross margin | 0 | 0 | 0 | 0 | |||
Delivery, sales and administrative expense | 4.1 | 3.3 | 10.8 | 10.9 | |||
Re-engineering and impairment charges | 0 | 0 | 0 | 0 | |||
Gains on disposal of assets | 0 | 0 | 0 | 0 | |||
Operating income | (4.1) | (3.3) | (10.8) | (10.9) | |||
Interest income | 5.2 | 8.1 | 15.4 | 23.4 | |||
Interest expense | 9.4 | 11.6 | 25.9 | 36.5 | |||
Income from equity investments in subsidiaries | 54.4 | 40.5 | 158.5 | 142.7 | |||
Other (income) expense | 0 | 0 | 0.1 | 0 | |||
Income before income taxes | 46.1 | 33.7 | 137.1 | 118.7 | |||
Provision (benefit) for income taxes | (2.7) | (2.5) | (7.5) | (9) | |||
Net income | 48.8 | 36.2 | 144.6 | 127.7 | |||
Comprehensive income (loss) | 42.4 | (26.4) | 122.3 | 21.3 | |||
ASSETS | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | 0 | ||||
Inventories | 0 | 0 | 0 | ||||
Non-trade amounts receivable, net | 0 | 0 | 0.1 | ||||
Intercompany receivables | 20 | 20 | 11.8 | ||||
Prepaid expenses and other current assets | 1.5 | 1.5 | 1.1 | ||||
Total current assets | 21.5 | 21.5 | 13 | ||||
Deferred income tax benefits, net | 142.2 | 142.2 | 143.5 | ||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||
Long-term receivables, net | 0 | 0 | 0 | ||||
Trademarks and tradenames, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Investments in subsidiaries | 1,303.4 | 1,303.4 | 1,164.8 | ||||
Intercompany notes receivable | 476.2 | 476.2 | 462 | ||||
Other assets, net | 1.3 | 1.3 | 1.6 | ||||
Total assets | 1,944.6 | 1,944.6 | 1,784.9 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | 0 | 0 | 0 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 95 | 95 | 90.4 | ||||
Intercompany payables | 766.9 | 766.9 | 688.2 | ||||
Accrued liabilities | 154.7 | 154.7 | 155.1 | ||||
Total current liabilities | 1,016.6 | 1,016.6 | 933.7 | ||||
Long-term debt and capital lease obligations | 599.4 | 599.4 | 599.3 | ||||
Intercompany notes payable | 126.3 | 126.3 | 78.5 | ||||
Other liabilities | 12.6 | 12.6 | 12.4 | ||||
Total shareholders' equity | 189.7 | 189.7 | 161 | ||||
Total liabilities and shareholders' equity | $ 1,944.6 | 1,944.6 | 1,784.9 | ||||
Operating Activities: | |||||||
Net cash provided by operating activities | (10.5) | 456.7 | |||||
Investing Activities: | |||||||
Capital expenditures | 0 | 0 | |||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||
Net intercompany loans | 33.7 | (355.1) | |||||
Return of capital | 0 | ||||||
Net cash used in investing activities | 33.7 | (355.1) | |||||
Financing Activities: | |||||||
Dividend payments to shareholders | (104) | (103.6) | |||||
Cash Dividends Paid to Parent Company | 0 | 0 | |||||
Proceeds from (Repayments of) Notes Payable | (0.1) | 0.1 | |||||
Proceeds from exercise of stock options | 0.6 | 7.6 | |||||
Repurchase of common stock | (1.1) | (0.9) | |||||
Repayment of capital lease obligations | 0 | 0 | |||||
Net change in short-term debt | 2.5 | 90 | |||||
Payments of Debt Issuance Costs | (0.7) | ||||||
Excess tax benefits from share-based payment arrangements | 0.3 | 2.5 | |||||
Net intercompany borrowings | 78.6 | (96.6) | |||||
Return of capital to parent | 0 | ||||||
Net cash used in financing activities | (23.2) | (101.6) | |||||
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% | 100.00% | |||||
Net sales | $ 0 | 0 | $ 0 | 0 | |||
Other revenue | 25.2 | 28.7 | 80.7 | 85.5 | |||
Cost of products sold | 4.1 | 9 | 19.5 | 23.9 | |||
Gross margin | 21.1 | 19.7 | 61.2 | 61.6 | |||
Delivery, sales and administrative expense | 22.4 | 23.1 | 58.6 | 61.8 | |||
Re-engineering and impairment charges | 0.8 | 0 | 0.8 | 0 | |||
Gains on disposal of assets | 0 | 0 | 0 | 0 | |||
Operating income | (2.1) | (3.4) | 1.8 | (0.2) | |||
Interest income | 0.3 | 5.8 | 1.2 | 18.5 | |||
Interest expense | 13.2 | 9.3 | 37.6 | 26.4 | |||
Income from equity investments in subsidiaries | 59.3 | 46 | 167.4 | 145.3 | |||
Other (income) expense | (8.7) | 0.3 | (25) | 0.3 | |||
Income before income taxes | 53 | 38.8 | 157.8 | 136.9 | |||
Provision (benefit) for income taxes | 8.6 | (2.8) | 3 | (3.5) | |||
Net income | 44.4 | 41.6 | 154.8 | 140.4 | |||
Comprehensive income (loss) | 38.8 | (19.6) | 135.1 | 30.2 | |||
ASSETS | |||||||
Cash and cash equivalents | 1.2 | 0.3 | 1.2 | 0.3 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | 0 | ||||
Inventories | 0 | 0 | 0 | ||||
Non-trade amounts receivable, net | 50.2 | 50.2 | 30.1 | ||||
Intercompany receivables | 842.1 | 842.1 | 754.2 | ||||
Prepaid expenses and other current assets | 5.9 | 5.9 | 3.3 | ||||
Total current assets | 899.4 | 899.4 | 787.6 | ||||
Deferred income tax benefits, net | 219 | 219 | 219.9 | ||||
Property, plant and equipment, net | 45.4 | 45.4 | 46.6 | ||||
Long-term receivables, net | 0.1 | 0.1 | 0.1 | ||||
Trademarks and tradenames, net | 0 | 0 | 0 | ||||
Goodwill | 2.9 | 2.9 | 2.9 | ||||
Investments in subsidiaries | 1,301.1 | 1,301.1 | 1,190.1 | ||||
Intercompany notes receivable | 96.9 | 96.9 | 90.5 | ||||
Other assets, net | 0.5 | 0.5 | 0.6 | ||||
Total assets | 2,565.3 | 2,565.3 | 2,338.3 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | 1.9 | 1.9 | 3.3 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | 1.2 | ||||
Intercompany payables | 267.3 | 267.3 | 224.2 | ||||
Accrued liabilities | 107.7 | 107.7 | 111.5 | ||||
Total current liabilities | 376.9 | 376.9 | 340.2 | ||||
Long-term debt and capital lease obligations | 0 | 0 | 0 | ||||
Intercompany notes payable | 872.8 | 872.8 | 768.1 | ||||
Other liabilities | 69.3 | 69.3 | 107.8 | ||||
Total shareholders' equity | 1,246.3 | 1,246.3 | 1,122.2 | ||||
Total liabilities and shareholders' equity | 2,565.3 | 2,565.3 | 2,338.3 | ||||
Operating Activities: | |||||||
Net cash provided by operating activities | (27) | (77.3) | |||||
Investing Activities: | |||||||
Capital expenditures | (8.5) | (8.7) | |||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||
Net intercompany loans | (99.6) | 89.5 | |||||
Return of capital | 105.5 | ||||||
Net cash used in investing activities | (108.1) | 186.3 | |||||
Financing Activities: | |||||||
Dividend payments to shareholders | 0 | 0 | |||||
Cash Dividends Paid to Parent Company | 0 | (400) | |||||
Proceeds from (Repayments of) Notes Payable | 0 | 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 | (1.2) | (2.3) | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | |||||
Net intercompany borrowings | 137.5 | 293.8 | |||||
Return of capital to parent | 0 | ||||||
Net cash used in financing activities | 136.3 | (108.5) | |||||
Effect of exchange rate changes on cash and cash equivalents | 0 | (0.2) | |||||
Net change in cash and cash equivalents | 1.2 | 0.3 | |||||
Non-Guarantors | |||||||
Net sales | 523.1 | 522.4 | 1,615.7 | 1,694 | |||
Other revenue | 4.1 | 9 | 19.5 | 23.9 | |||
Cost of products sold | 192.8 | 200.3 | 595.8 | 634.3 | |||
Gross margin | 334.4 | 331.1 | 1,039.4 | 1,083.6 | |||
Delivery, sales and administrative expense | 259.9 | 264.4 | 808.5 | 846 | |||
Re-engineering and impairment charges | 1.6 | 0.3 | 4.6 | 18 | |||
Gains on disposal of assets | 24.2 | 2 | 25.1 | 13.4 | |||
Operating income | 97.1 | 68.4 | 251.4 | 233 | |||
Interest income | 7.3 | 2.1 | 19.4 | 4.5 | |||
Interest expense | 2.2 | 5.9 | 6.3 | 18.6 | |||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | |||
Other (income) expense | 8.4 | 0 | 25.9 | 8.3 | |||
Income before income taxes | 93.8 | 64.6 | 238.6 | 210.6 | |||
Provision (benefit) for income taxes | 24.6 | 19.7 | 67.6 | 63 | |||
Net income | 69.2 | 44.9 | 171 | 147.6 | |||
Comprehensive income (loss) | 56 | 0.8 | 134.3 | 64.3 | |||
ASSETS | |||||||
Cash and cash equivalents | 97.3 | 92.8 | 97.3 | 92.8 | 79.8 | 77 | |
Accounts receivable, net | 142.4 | 142.4 | 142.7 | ||||
Inventories | 275 | 275 | 254.6 | ||||
Non-trade amounts receivable, net | 99.7 | 99.7 | 109.6 | ||||
Intercompany receivables | 263.7 | 263.7 | 228.8 | ||||
Prepaid expenses and other current assets | 109.4 | 109.4 | 118.1 | ||||
Total current assets | 987.5 | 987.5 | 933.6 | ||||
Deferred income tax benefits, net | 174.6 | 174.6 | 161.5 | ||||
Property, plant and equipment, net | 210.9 | 210.9 | 207 | ||||
Long-term receivables, net | 13.5 | 13.5 | 13.1 | ||||
Trademarks and tradenames, net | 73.3 | 73.3 | 82.7 | ||||
Goodwill | 136.8 | 136.8 | 143.4 | ||||
Investments in subsidiaries | 0 | 0 | 0 | ||||
Intercompany notes receivable | 723.1 | 723.1 | 579.7 | ||||
Other assets, net | 71.9 | 71.9 | 108.1 | ||||
Total assets | 2,391.6 | 2,391.6 | 2,229.1 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | 86.6 | 86.6 | 123.5 | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 104.9 | 104.9 | 70.9 | ||||
Intercompany payables | 91.6 | 91.6 | 82.4 | ||||
Accrued liabilities | 258.5 | 258.5 | 247.1 | ||||
Total current liabilities | 541.6 | 541.6 | 523.9 | ||||
Long-term debt and capital lease obligations | 7.5 | 7.5 | 8.9 | ||||
Intercompany notes payable | 297.1 | 297.1 | 285.6 | ||||
Other liabilities | 187.2 | 187.2 | 178 | ||||
Total shareholders' equity | 1,358.2 | 1,358.2 | 1,232.7 | ||||
Total liabilities and shareholders' equity | 2,391.6 | 2,391.6 | 2,229.1 | ||||
Operating Activities: | |||||||
Net cash provided by operating activities | 135.5 | 190.4 | |||||
Investing Activities: | |||||||
Capital expenditures | (29.7) | (33.7) | |||||
Proceeds from disposal of property, plant and equipment | 31.8 | 17.5 | |||||
Net intercompany loans | (131.2) | (11.5) | |||||
Return of capital | 0 | ||||||
Net cash used in investing activities | (129.1) | (27.7) | |||||
Financing Activities: | |||||||
Dividend payments to shareholders | 0 | 0 | |||||
Cash Dividends Paid to Parent Company | (8.9) | (80.8) | |||||
Proceeds from (Repayments of) Notes Payable | 0.1 | (0.1) | |||||
Proceeds from exercise of stock options | 0 | 0 | |||||
Repurchase of common stock | 0 | 0 | |||||
Repayment of capital lease obligations | (1.7) | (2.1) | |||||
Net change in short-term debt | 31.7 | (5.7) | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | |||||
Net intercompany borrowings | (15.8) | 63.1 | |||||
Return of capital to parent | (105.5) | ||||||
Net cash used in financing activities | 5.4 | (131.1) | |||||
Effect of exchange rate changes on cash and cash equivalents | 5.7 | (15.8) | |||||
Net change in cash and cash equivalents | 17.5 | 15.8 | |||||
Eliminations | |||||||
Net sales | (1.3) | (1.4) | (3.5) | (2.3) | |||
Other revenue | (29.3) | (37.7) | (100.2) | (109.4) | |||
Cost of products sold | (28.5) | (36.8) | (97) | (105) | |||
Gross margin | (2.1) | (2.3) | (6.7) | (6.7) | |||
Delivery, sales and administrative expense | (2.2) | (2.3) | (6.8) | (6.7) | |||
Re-engineering and impairment charges | 0 | 0 | 0 | 0 | |||
Gains on disposal of assets | 0 | 0 | 0 | 0 | |||
Operating income | 0.1 | 0 | 0.1 | 0 | |||
Interest income | (12) | (15.5) | (33.7) | (44.9) | |||
Interest expense | (12) | (15.5) | (33.7) | (44.9) | |||
Income from equity investments in subsidiaries | (113.7) | (86.5) | (325.9) | (288) | |||
Other (income) expense | 0 | 0 | 0 | 0 | |||
Income before income taxes | (113.6) | (86.5) | (325.8) | (288) | |||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |||
Net income | (113.6) | (86.5) | (325.8) | (288) | |||
Comprehensive income (loss) | (94.8) | 18.8 | (269.4) | (94.5) | |||
ASSETS | |||||||
Cash and cash equivalents | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |
Accounts receivable, net | 0 | 0 | 0 | ||||
Inventories | 0 | 0 | 0 | ||||
Non-trade amounts receivable, net | (88.5) | (88.5) | (94.3) | ||||
Intercompany receivables | (1,125.8) | (1,125.8) | (994.8) | ||||
Prepaid expenses and other current assets | (87.9) | (87.9) | (94.6) | ||||
Total current assets | (1,302.2) | (1,302.2) | (1,183.7) | ||||
Deferred income tax benefits, net | 0 | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||
Long-term receivables, net | 0 | 0 | 0 | ||||
Trademarks and tradenames, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Investments in subsidiaries | (2,604.5) | (2,604.5) | (2,354.9) | ||||
Intercompany notes receivable | (1,296.2) | (1,296.2) | (1,132.2) | ||||
Other assets, net | (43.4) | (43.4) | (83.3) | ||||
Total assets | (5,246.3) | (5,246.3) | (4,754.1) | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | 0 | 0 | (0.1) | ||||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | 0 | ||||
Intercompany payables | (1,125.8) | (1,125.8) | (994.8) | ||||
Accrued liabilities | (176.3) | (176.3) | (188.9) | ||||
Total current liabilities | (1,302.1) | (1,302.1) | (1,183.8) | ||||
Long-term debt and capital lease obligations | 0 | 0 | 0 | ||||
Intercompany notes payable | (1,296.2) | (1,296.2) | (1,132.2) | ||||
Other liabilities | (43.5) | (43.5) | (83.2) | ||||
Total shareholders' equity | (2,604.5) | (2,604.5) | (2,354.9) | ||||
Total liabilities and shareholders' equity | $ (5,246.3) | (5,246.3) | $ (4,754.1) | ||||
Operating Activities: | |||||||
Net cash provided by operating activities | (5.7) | (497.6) | |||||
Investing Activities: | |||||||
Capital expenditures | 0 | 0 | |||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||
Net intercompany loans | 197.1 | 277.1 | |||||
Return of capital | (105.5) | ||||||
Net cash used in investing activities | 197.1 | 171.6 | |||||
Financing Activities: | |||||||
Dividend payments to shareholders | 0 | 0 | |||||
Cash Dividends Paid to Parent Company | 8.9 | 480.8 | |||||
Proceeds from (Repayments of) Notes Payable | 0 | 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 | 0 | 0 | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | |||||
Net intercompany borrowings | (200.3) | (260.3) | |||||
Return of capital to parent | 105.5 | ||||||
Net cash used in financing activities | (191.4) | 326 | |||||
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. |