Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 27, 2017 | |
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 | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 50,724,815 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | ||
Net sales | $ 554.8 | $ 525.7 | |
Cost of products sold | 177.7 | 166 | |
Gross margin | 377.1 | 359.7 | |
Delivery, sales and administrative expense | 299.1 | 288.7 | |
Re-engineering and impairment charges | 2.3 | 1.1 | [1] |
Gains on disposal of assets | 0.1 | 0.1 | |
Operating income | 75.8 | 70 | |
Interest income | 0.5 | 0.7 | |
Interest expense | 11.6 | 12.1 | |
Other expense | 0.5 | 0.4 | |
Income before income taxes | 64.2 | 58.2 | |
Provision for income taxes | 16.8 | 14.8 | |
Net income | $ 47.4 | $ 43.4 | |
Earnings per share: | |||
Basic | $ 0.94 | $ 0.86 | |
Diluted | $ 0.93 | $ 0.86 | |
Weighted-average shares outstanding: | |||
Basic | 50.7 | 50.4 | |
Diluted | 51 | 50.6 | |
Dividends declared per common share | $ 0.68 | $ 0.68 | |
[1] | (a)See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Net income | $ 47.4 | $ 43.4 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 42.4 | 2.3 |
Deferred loss on cash flow hedges, net of tax benefits of $1.4 and $1.0, respectively | (4.5) | (3.7) |
Pension and other post-retirement costs, net of tax benefits of $0.7 and $0.3, respectively | (1.7) | (0.9) |
Other comprehensive income (loss) | 36.2 | (2.3) |
Total comprehensive income | $ 83.6 | $ 41.1 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Deferred gain (loss) on cash flow hedges, tax (benefit) provision | $ (1.4) | $ (1) |
Pension and other post retirement costs, tax (provision) benefit | $ 0.7 | $ 0.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 98.4 | $ 93.2 |
Accounts receivable, less allowances of $33.3 and $32.6, respectively | 156.9 | 125.3 |
Inventories | 268.1 | 240.4 |
Non-trade amounts receivable, net | 51 | 64.9 |
Prepaid expenses and other current assets | 28.3 | 21.5 |
Total current assets | 602.7 | 545.3 |
Deferred income tax benefits, net | 547.4 | 539.7 |
Property, plant and equipment, net | 269.1 | 259.8 |
Long-term receivables, less allowances of $11.7 and $11.0, respectively | 13.9 | 13.2 |
Trademarks and tradenames, net | 69.6 | 67.3 |
Goodwill | 141.6 | 132.6 |
Other assets, net | 33.3 | 29.9 |
Total assets | 1,677.6 | 1,587.8 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 93 | 117.7 |
Short-term borrowings and current portion of long-term debt and capital lease obligations | 176.8 | 105.9 |
Accrued liabilities | 315.3 | 324 |
Total current liabilities | 585.1 | 547.6 |
Long-term debt and capital lease obligations | 605.9 | 606 |
Other liabilities | 218.9 | 221.4 |
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 | 210.5 | 208.6 |
Retained earnings | 1,467 | 1,455.3 |
Treasury stock, 12,894,236 and 12,969,165 shares, respectively, at cost | (875.1) | (880.2) |
Accumulated other comprehensive loss | (535.3) | (571.5) |
Total shareholders' equity | 267.7 | 212.8 |
Total liabilities and shareholders' equity | $ 1,677.6 | $ 1,587.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Accounts receivable, allowances | $ 33.3 | $ 32.6 |
Long-term receivables, allowances | $ 11.7 | $ 11 |
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 | 12,894,236 | 12,969,165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Operating Activities: | ||
Net income | $ 47.4 | $ 43.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14.6 | 14.9 |
Unrealized foreign exchange loss | 0 | 0.1 |
Equity compensation | 4.8 | 3.9 |
Amortization of deferred debt costs | 0.1 | 0.1 |
Net gains on disposal of assets | 0 | (0.1) |
Provision for bad debts | 2.6 | 2.7 |
Write-down of inventories | 2.8 | 3.4 |
Net change in deferred income taxes | 8 | 2.9 |
Changes in assets and liabilities: | ||
Accounts and notes receivable | (28.9) | (20.2) |
Inventories | (21.4) | (17) |
Non-trade amounts receivable | (4.5) | (4.9) |
Prepaid expenses | (4.9) | (5.8) |
Other assets | (3.6) | 0.4 |
Accounts payable and accrued liabilities | (8.2) | (30.6) |
Income taxes payable | (34) | (10.2) |
Other liabilities | (2.6) | (1.5) |
Net cash impact from hedging activity | 10.2 | 10.7 |
Other | 0 | 0.3 |
Net cash used in operating activities | (17.6) | (7.5) |
Investing Activities: | ||
Capital expenditures | (16) | (9.4) |
Proceeds from disposal of property, plant and equipment | 0.3 | 0.4 |
Net cash used in investing activities | (15.7) | (9) |
Financing Activities: | ||
Dividend payments to shareholders | (34.7) | (35) |
Proceeds from exercise of stock options | 2.1 | 0 |
Repurchase of common stock | (0.5) | (0.8) |
Repayment of capital lease obligations | (0.4) | (0.4) |
Net change in short-term debt | 67.6 | 66.7 |
Net cash provided by financing activities | 34.1 | 30.5 |
Effect of exchange rate changes on cash and cash equivalents | 4.4 | 4.8 |
Net change in cash and cash equivalents | 5.2 | 18.8 |
Cash and cash equivalents at beginning of year | 93.2 | 79.8 |
Cash and cash equivalents at end of period | $ 98.4 | $ 98.6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2017 | |
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 2016 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . 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 included 53 weeks with 14 weeks in the fourth quarter, whereas the 2017 fiscal year will include 52 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 | 3 Months Ended |
Apr. 01, 2017 | |
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 first quarters of 2017 and 2016 were $34.8 million and $31.7 million , respectively. |
Promotional Costs
Promotional Costs | 3 Months Ended |
Apr. 01, 2017 | |
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 $95.9 million and $93.7 million for the first quarters of 2017 and 2016 , respectively. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories (In millions) April 1, December 31, Finished goods $ 205.7 $ 189.4 Work in process 28.6 23.0 Raw materials and supplies 33.8 28.0 Total inventories $ 268.1 $ 240.4 |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic per share information is calculated by dividing net income by the weighted average number of shares outstanding. Diluted per share information is calculated by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. The elements of the earnings per share computations were as follows: 13 weeks ended (In millions, except per share amounts) April 1, March 26, Net income $ 47.4 $ 43.4 Weighted-average shares of common stock outstanding 50.7 50.4 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.3 0.2 Weighted-average common and common equivalent shares outstanding 51.0 50.6 Basic earnings per share $ 0.94 $ 0.86 Diluted earnings per share $ 0.93 $ 0.86 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 1.7 1.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 01, 2017 | |
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 31, 2016 $ (544.3 ) $ 4.9 $ (32.1 ) $ (571.5 ) Other comprehensive income (loss) before reclassifications 42.4 (3.4 ) (2.4 ) 36.6 Amounts reclassified from accumulated other comprehensive loss — (1.1 ) 0.7 (0.4 ) Net current-period other comprehensive income (loss) 42.4 (4.5 ) (1.7 ) 36.2 Balance at April 1, 2017 $ (501.9 ) $ 0.4 $ (33.8 ) $ (535.3 ) (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 2.3 (1.4 ) (1.0 ) (0.1 ) Amounts reclassified from accumulated other comprehensive loss — (2.3 ) 0.1 (2.2 ) Net current-period other comprehensive income (loss) 2.3 (3.7 ) (0.9 ) (2.3 ) Balance at March 26, 2016 $ (488.3 ) $ 0.6 $ (36.6 ) $ (524.3 ) Pretax amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of net gains of $1.6 million and $3.1 million for the first quarters of 2017 and 2016 , respectively. Associated with these items were tax provisions of $0.5 million and $0.8 million , respectively. See Note 10 for further discussion of derivatives. For the first quarters of 2017 and 2016 , pretax amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of prior service benefits of $0.4 million and $0.3 million , respectively, actuarial losses of $0.4 million and $0.4 million , respectively, and pension settlement cost of $0.8 million for 2017 , and none for 2016 . The tax benefit associated with these items was $0.1 million for the first quarter of 2017 , and none for 2016 . See Note 12 for further discussion of pension and other post-retirement benefit costs. |
Re-engineering and Impairment C
Re-engineering and Impairment Costs | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring Charges [Abstract] | |
Re-engineering and Impairment Costs | Re-engineering and Impairment Costs The Company recorded $2.3 million and $1.1 million in re-engineering charges during the first quarters of 2017 and 2016 , 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 April 1, 2017 and December 31, 2016 were as follows: (In millions) April 1, December 31, Beginning of the year balance $ 1.6 $ 1.7 Provision 2.3 7.6 Non-cash charges — (0.3 ) Cash expenditures: Severance (1.0 ) (5.2 ) Other (0.3 ) (2.2 ) End of period balance $ 2.6 $ 1.6 The accrual balance as of April 1, 2017 , related primarily to severance payments to be made by the end of the third quarter of 2017 . |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company manufactures and distributes a broad portfolio of products, primarily through independent direct sales consultants. Certain operating segments have been aggregated based upon consistency of economic substance, geography, products, production process, class of customers and distribution method. The Company's reportable segments include the following: Europe Primarily design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware ® brand. Europe also includes Avroy Shlain ® 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 $79.6 million and $84.2 million in the first quarters of 2017 and 2016 , respectively. 13 weeks ended (In millions) April 1, March 26, Net sales: Europe $ 149.5 $ 153.9 Asia Pacific 177.3 171.6 Tupperware North America 91.8 83.2 Beauty North America 39.5 48.9 South America 96.7 68.1 Total net sales $ 554.8 $ 525.7 Segment profit (loss): Europe $ 19.9 $ 25.2 Asia Pacific 40.0 36.9 Tupperware North America 16.4 14.6 Beauty North America (0.6 ) (1.7 ) South America 18.2 13.0 Total segment profit $ 93.9 $ 88.0 Unallocated expenses (16.4 ) (17.4 ) Re-engineering and impairment charges (a) (2.3 ) (1.1 ) Gains on disposal of assets 0.1 0.1 Interest expense, net (11.1 ) (11.4 ) Income before taxes $ 64.2 $ 58.2 (In millions) April 1, December 31, Identifiable assets: Europe $ 279.0 $ 257.2 Asia Pacific 298.2 278.6 Tupperware North America 136.2 119.0 Beauty North America 237.0 214.7 South America 146.3 124.6 Corporate 580.9 593.7 Total identifiable assets $ 1,677.6 $ 1,587.8 _________________________ (a) See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt
Debt | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Obligations (In millions) April 1, December 31, 2016 Fixed rate senior notes due 2021 $ 599.4 $ 599.4 Five year Revolving Credit Agreement (a) 172.0 104.0 Belgium facility capital lease 8.4 8.4 Other 2.9 0.1 Total debt obligations $ 782.7 $ 711.9 ____________________ (a) $87.9 million and $84.6 million denominated in euros as of April 1, 2017 and December 31, 2016 , respectively. Credit Agreement As of April 1, 2017 , the Company had a weighted average interest rate on outstanding LIBOR based borrowings of 1.93 percent under its multicurrency Amended and Restated Credit Agreement (“Credit Agreement”). At April 1, 2017 , the Company had $511.8 million of unused lines of credit, including $426.6 million under the committed, secured Credit Agreement, and $85.2 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 April 1, 2017 , and currently, the Company had considerable cushion under its financial covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 01, 2017 | |
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, 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 $4.8 million and $3.9 million in the first quarters of 2017 and 2016 , respectively. The Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as cash flow hedges. At initiation, the Company's cash flow hedge contracts are 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 loss of $21.3 million associated with these hedges in the first quarter of 2017 , and a net loss of $3.7 million associated with such hedges in the first quarter of 2016 . 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 first quarters of 2017 and 2016 were inflows of $10.2 million and $10.7 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 April 1, 2017 and December 31, 2016 , the notional amounts of outstanding forward contracts to purchase currencies were $136.7 million and $116.7 million , respectively, and the notional amounts of outstanding forward contracts to sell currencies were $147.2 million and $109.6 million , respectively. As of April 1, 2017 , the notional values of the largest positions outstanding were to purchase U.S. dollars $72.9 million and to sell Mexican pesos $34.9 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 April 1, 2017 and December 31, 2016 . 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 Apr 1, Dec 31, Balance sheet location Apr 1, Dec 31, Foreign exchange contracts Non-trade amounts receivable $ 20.2 $ 41.1 Accrued liabilities $ 28.4 $ 31.7 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the first quarters of 2017 and 2016 : 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 2017 2016 2017 2016 Foreign exchange contracts Other expense $ 28.2 $ 1.5 Other expense $ (28.1 ) $ (1.5 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the first quarters of 2017 and 2016 : 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 2017 2016 2017 2016 2017 2016 Foreign exchange contracts $ (4.4 ) $ (1.6 ) Cost of products sold $ 1.6 $ 3.1 Interest expense $ (1.3 ) $ (1.6 ) Net equity hedging relationships Foreign exchange contracts (30.0 ) (3.0 ) Other expense — — Interest expense (5.8 ) (5.2 ) Euro denominated debt (3.3 ) (2.7 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 . The Company estimates that, based on current market conditions, the value of its 4.75% , 2021 senior notes was $639.0 million at April 1, 2017 , 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 10 to the Consolidated Financial Statements for discussion of the Company's derivative instruments and related fair value measurements. |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Apr. 01, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Components of net periodic benefit cost for the first quarters ended April 1, 2017 and March 26, 2016 were as follows: First Quarter Pension benefits Post-retirement benefits (In millions) 2017 2016 2017 2016 Service cost $ 2.6 $ 2.7 $ — $ — Interest cost 1.4 1.6 0.2 0.2 Expected return on plan assets (1.2 ) (1.4 ) — — Settlement/curtailment 0.8 — — — Net amortization 0.3 0.4 (0.3 ) (0.3 ) Net periodic benefit cost $ 3.9 $ 3.3 $ (0.1 ) $ (0.1 ) During the first quarters of 2017 and 2016 , approximately $0.8 million and $0.1 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 | 3 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the first quarter of 2017 was 26.2 percent , compared with 25.4 percent for the comparable 2016 period. The increase in the 2017 rate resulted from the lack of a tax benefit on more expenses in certain foreign jurisdictions. The effective tax rates are below the U.S. statutory rate primarily due to lower foreign effective tax rates. As of April 1, 2017 and December 31, 2016 , the Company's gross unrecognized tax benefit was $21.5 million and $20.7 million , respectively. The Company estimates that as of April 1, 2017 , approximately $20.0 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 $7.6 million and $7.1 million as of the periods ended April 1, 2017 and December 31, 2016 , respectively. The Company estimates that it may settle one or more audits in the next twelve months that may result in cash payments decreasing the amount of accrual for uncertain tax positions by up to $1.6 million . For the remaining balance as of April 1, 2017 , 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 | 3 Months Ended |
Apr. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flow Supplemental Disclosure | Statement of Cash Flow Supplemental Disclosure Under the Company's stock incentive programs, in certain jurisdictions, employees are allowed to use shares retained by the Company to satisfy minimum statutorily required withholding taxes. In the first quarters of 2017 and 2016 , 8,553 and 15,261 shares, respectively, were retained to fund withholding taxes, with values totaling $0.5 million and $0.8 million , respectively, which were included as stock repurchases in the Consolidated Statements of Cash Flows. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Stock option activity for 2017 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 31, 2016 2,722,965 $ 57.78 Expired / Forfeited (28,389 ) 70.46 Exercised (51,029 ) 41.53 Outstanding at April 1, 2017 2,643,547 $ 57.95 $ 17.4 Exercisable at April 1, 2017 1,527,494 $ 57.67 $ 12.4 The intrinsic value of options exercised totaled $1.0 million in the first quarter of 2017 . There were no options exercised in the first quarter of 2016 . The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2017 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 31, 2016 602,940 $ 61.28 Time-vested shares granted 3,801 52.62 Market-vested shares granted 25,170 61.29 Performance shares granted 76,615 60.39 Performance share adjustments (23,482 ) 64.09 Vested (32,786 ) 82.64 Forfeited (6,631 ) 61.56 April 1, 2017 645,627 $ 59.93 Compensation expense related to the Company's stock based compensation for the first quarters ended April 1, 2017 and March 26, 2016 were as follows: First Quarter (In millions) 2017 2016 Stock options $ 0.7 $ 0.6 Time, performance and market vested share awards 4.1 3.3 As of April 1, 2017 , total unrecognized stock based compensation expense related to all stock based awards was $29.0 million , which is expected to be recognized over a weighted average period of 2.0 years . |
Allowance for Long-Term Receiva
Allowance for Long-Term Receivables | 3 Months Ended |
Apr. 01, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance For Long-Term Receivables | Allowance for Long-Term Receivables As of April 1, 2017 , $11.2 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 April 1, 2017 was as follows: (In millions) Balance at December 31, 2016 $ 11.0 Write-offs (0.2 ) Provision and reclassifications 0.3 Currency translation adjustment 0.6 Balance at April 1, 2017 $ 11.7 |
Guarantor Information
Guarantor Information | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 and for the quarters ended April 1, 2017 and March 26, 2016 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 April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 556.7 $ (1.9 ) $ 554.8 Other revenue — 25.5 8.6 (34.1 ) — Cost of products sold — 8.6 202.6 (33.5 ) 177.7 Gross margin — 16.9 362.7 (2.5 ) 377.1 Delivery, sales and administrative expense 3.9 23.2 274.5 (2.5 ) 299.1 Re-engineering and impairment charges — 0.4 1.9 — 2.3 Gains on disposal of assets — — 0.1 — 0.1 Operating income (loss) (3.9 ) (6.7 ) 86.4 — 75.8 Interest income 5.1 0.7 8.3 (13.6 ) 0.5 Interest expense 8.6 14.3 2.3 (13.6 ) 11.6 Income from equity investments in subsidiaries 51.9 78.7 — (130.6 ) — Other expense (income) — 15.4 (14.9 ) — 0.5 Income before income taxes 44.5 43.0 107.3 (130.6 ) 64.2 Provision (benefit) for income taxes (2.9 ) (7.7 ) 27.4 — 16.8 Net income (loss) $ 47.4 $ 50.7 $ 79.9 $ (130.6 ) $ 47.4 Comprehensive income (loss) $ 83.6 $ 89.4 $ 132.8 $ (222.2 ) $ 83.6 Consolidating Statement of Income 13 weeks ended March 26, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 527.0 $ (1.3 ) $ 525.7 Other revenue — 25.3 7.7 (33.0 ) — Cost of products sold — 7.7 190.2 (31.9 ) 166.0 Gross margin — 17.6 344.5 (2.4 ) 359.7 Delivery, sales and administrative expense 3.2 22.4 265.5 (2.4 ) 288.7 Re-engineering and impairment charges — — 1.1 — 1.1 Gains on disposal of assets — — 0.1 — 0.1 Operating income (loss) (3.2 ) (4.8 ) 78.0 — 70.0 Interest income 5.1 0.4 6.2 (11.0 ) 0.7 Interest expense 8.7 12.3 2.1 (11.0 ) 12.1 Income from equity investments in subsidiaries 47.8 53.4 — (101.2 ) — Other expense (income) — (4.1 ) 4.5 — 0.4 Income before income taxes 41.0 40.8 77.6 (101.2 ) 58.2 Provision (benefit) for income taxes (2.4 ) (7.2 ) 24.4 — 14.8 Net income (loss) $ 43.4 $ 48.0 $ 53.2 $ (101.2 ) $ 43.4 Comprehensive income (loss) $ 41.1 $ 47.1 $ 49.5 $ (96.6 ) $ 41.1 Condensed Consolidating Balance Sheet April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.3 $ 98.1 $ — $ 98.4 Accounts receivable, net — — 156.9 — 156.9 Inventories — — 268.1 — 268.1 Non-trade amounts receivable, net — 34.2 104.8 (88.0 ) 51.0 Intercompany receivables 11.8 904.8 259.1 (1,175.7 ) — Prepaid expenses and other current assets 0.7 6.3 99.2 (77.9 ) 28.3 Total current assets 12.5 945.6 986.2 (1,341.6 ) 602.7 Deferred income tax benefits, net 142.7 193.4 211.3 — 547.4 Property, plant and equipment, net — 50.8 218.3 — 269.1 Long-term receivables, net — 0.1 13.8 — 13.9 Trademarks and tradenames, net — — 69.6 — 69.6 Goodwill — 2.9 138.7 — 141.6 Investments in subsidiaries 1,447.5 1,451.2 — (2,898.7 ) — Intercompany notes receivable 484.2 101.0 750.7 (1,335.9 ) — Other assets, net 1.0 1.4 51.4 (20.5 ) 33.3 Total assets $ 2,087.9 $ 2,746.4 $ 2,440.0 $ (5,596.7 ) $ 1,677.6 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 2.7 $ 90.3 $ — $ 93.0 Short-term borrowings and current portion of long-term debt and capital lease obligations 172.0 — 4.8 — 176.8 Intercompany payables 831.8 252.1 91.8 (1,175.7 ) — Accrued liabilities 124.2 104.5 252.5 (165.9 ) 315.3 Total current liabilities 1,128.0 359.3 439.4 (1,341.6 ) 585.1 Long-term debt and capital lease obligations 599.4 — 6.5 — 605.9 Intercompany notes payable 82.5 950.7 302.7 (1,335.9 ) — Other liabilities 10.3 46.1 183.0 (20.5 ) 218.9 Shareholders' equity 267.7 1,390.3 1,508.4 (2,898.7 ) 267.7 Total liabilities and shareholders' equity $ 2,087.9 $ 2,746.4 $ 2,440.0 $ (5,596.7 ) $ 1,677.6 Condensed Consolidating Balance Sheet December 31, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.5 $ 92.7 $ — $ 93.2 Accounts receivable, net — — 125.3 — 125.3 Inventories — — 240.4 — 240.4 Non-trade amounts receivable, net — 50.5 85.1 (70.7 ) 64.9 Intercompany receivables 11.9 935.8 270.3 (1,218.0 ) — Prepaid expenses and other current assets 1.1 5.4 100.9 (85.9 ) 21.5 Total current assets 13.0 992.2 914.7 (1,374.6 ) 545.3 Deferred income tax benefits, net 142.7 193.2 203.8 — 539.7 Property, plant and equipment, net — 50.4 209.4 — 259.8 Long-term receivables, net — 0.1 13.1 — 13.2 Trademarks and tradenames, net — — 67.3 — 67.3 Goodwill — 2.9 129.7 — 132.6 Investments in subsidiaries 1,356.7 1,321.3 — (2,678.0 ) — Intercompany notes receivable 479.4 95.6 725.6 (1,300.6 ) — Other assets, net 1.2 1.2 57.8 (30.3 ) 29.9 Total assets $ 1,993.0 $ 2,656.9 $ 2,321.4 $ (5,383.5 ) $ 1,587.8 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 5.0 $ 112.7 $ — $ 117.7 Short-term borrowings and current portion of long-term debt and capital lease obligations 104.0 — 1.9 — 105.9 Intercompany payables 858.9 263.4 95.7 (1,218.0 ) — Accrued liabilities 130.9 102.8 246.9 (156.6 ) 324.0 Total current liabilities 1,093.8 371.2 457.2 (1,374.6 ) 547.6 Long-term debt and capital lease obligations 599.4 — 6.6 — 606.0 Intercompany notes payable 77.0 928.0 295.6 (1,300.6 ) — Other liabilities 10.0 56.8 184.9 (30.3 ) 221.4 Shareholders' equity 212.8 1,300.9 1,377.1 (2,678.0 ) 212.8 Total liabilities and shareholders' equity $ 1,993.0 $ 2,656.9 $ 2,321.4 $ (5,383.5 ) $ 1,587.8 Condensed Consolidating Statement of Cash Flows 13 weeks ended April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (5.3 ) $ (27.1 ) $ 23.2 $ (8.4 ) $ (17.6 ) Investing Activities: Capital expenditures — (4.8 ) (11.2 ) — (16.0 ) Proceeds from disposal of property, plant and equipment — — 0.3 — 0.3 Net intercompany loans 0.7 22.2 (13.0 ) (9.9 ) — Net cash provided by (used in) investing activities 0.7 17.4 (23.9 ) (9.9 ) (15.7 ) Financing Activities: Dividend payments to shareholders (34.7 ) — — — (34.7 ) Dividend payments to parent — — (1.5 ) 1.5 — Proceeds from exercise of stock options 2.1 — — — 2.1 Repurchase of common stock (0.5 ) — — — (0.5 ) Repayment of capital lease obligations — — (0.4 ) — (0.4 ) Net change in short-term debt 64.7 — 2.9 — 67.6 Net intercompany borrowings (27.0 ) 9.5 0.7 16.8 — Net cash provided by (used in) financing activities 4.6 9.5 1.7 18.3 34.1 Effect of exchange rate changes on cash and cash equivalents — — 4.4 — 4.4 Net change in cash and cash equivalents — (0.2 ) 5.4 — 5.2 Cash and cash equivalents at beginning of year — 0.5 92.7 — 93.2 Cash and cash equivalents at end of period $ — $ 0.3 $ 98.1 $ — $ 98.4 Condensed Consolidating Statement of Cash Flows 13 weeks ended March 26, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ 1.9 $ (20.9 ) $ 10.1 $ 1.4 $ (7.5 ) Investing Activities: Capital expenditures — (2.4 ) (7.0 ) — (9.4 ) Proceeds from disposal of property, plant and equipment — — 0.4 — 0.4 Net intercompany loans 0.5 (1.4 ) (18.7 ) 19.6 — Net cash provided by (used in) investing activities 0.5 (3.8 ) (25.3 ) 19.6 (9.0 ) Financing Activities: Dividend payments to shareholders (35.0 ) — — — (35.0 ) Dividend payments to parent — — (1.5 ) 1.5 — Repurchase of common stock (0.8 ) — — — (0.8 ) Repayment of capital lease obligations — — (0.4 ) — (0.4 ) Net change in short-term debt 34.9 — 31.8 — 66.7 Net intercompany borrowings (1.5 ) 25.3 (1.3 ) (22.5 ) — Net cash provided by (used in) financing activities (2.4 ) 25.3 28.6 (21.0 ) 30.5 Effect of exchange rate changes on cash and cash equivalents — — 4.8 — 4.8 Net change in cash and cash equivalents — 0.6 18.2 — 18.8 Cash and cash equivalents at beginning of year — — 79.8 — 79.8 Cash and cash equivalents at end of period $ — $ 0.6 $ 98.0 $ — $ 98.6 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Apr. 01, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the FASB issued an amendment to existing guidance on presentation of net periodic pension and postretirement benefit costs. Under the amendment, the service cost component will be presented in the same income statement line item as other compensation costs arising from services rendered during the period. The other components of the net periodic benefit cost will be presented separately from the service cost and outside operating income subtotal. Only the service cost will be eligible for capitalization in assets. 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 a significant impact from the adoption of this amendment 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 allowed 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. In December 2016, the FASB issued amendments to provide clarification on codification and guidance application. In February 2017, the FASB issued an amendment to clarify the scope of asset derecognition guidance and provide detailed guidance on partial sales transactions. The Company has surveyed revenue recognition policies across each of its global operating segments, evaluating the impact of the adoption of this amendment on its Consolidated Financial Statements. While there are expected to be changes in policy in certain units, the impact to the consolidated financial statements is not expected to be significant as the majority of the Company's transactions are not accounted for under industry-specific guidance that will be superseded by the new guidance and generally only consists of a single performance obligation to transfer non-customized, promised goods. In January 2017, the FASB issued an amendment to existing guidance on Goodwill Impairment to simplify goodwill measurement. This guidance eliminated step 2 from the goodwill impairment test, and instead goodwill shall be tested by comparing the fair value of a reporting unit with its carrying amount. An impairment charge for the amount by which the carrying amount exceeds the fair value will be recognized; however the loss recognized will not exceed the total amount of goodwill. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, any impairment losses recognized under the new guidance could differ significantly and occur more frequently compared with amounts recognized under current guidance, particularly as it relates to the $80.0 million goodwill recorded in Fuller Mexico. In October 2016, the FASB issued an amendment to existing guidance on income tax consequences of intra-entity transfers of assets other than inventory. Under the amendment, the income tax consequences of an intra-entity transfer of an asset other than inventory will be recognized when the transfer occurs. 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 is currently evaluating the impact of the adoption of this amendment on its Consolidated Financial Statements. 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 Accoun26
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2017 | |
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 2016 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . 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. |
Fiscal Period, Policy | The Company's fiscal year ends on the last Saturday of December. As a result, the 2016 fiscal year included 53 weeks with 14 weeks in the fourth quarter, whereas the 2017 fiscal year will include 52 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) | 3 Months Ended |
Apr. 01, 2017 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories (In millions) April 1, December 31, Finished goods $ 205.7 $ 189.4 Work in process 28.6 23.0 Raw materials and supplies 33.8 28.0 Total inventories $ 268.1 $ 240.4 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Elements of Earnings per Share Computations | The elements of the earnings per share computations were as follows: 13 weeks ended (In millions, except per share amounts) April 1, March 26, Net income $ 47.4 $ 43.4 Weighted-average shares of common stock outstanding 50.7 50.4 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.3 0.2 Weighted-average common and common equivalent shares outstanding 51.0 50.6 Basic earnings per share $ 0.94 $ 0.86 Diluted earnings per share $ 0.93 $ 0.86 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 1.7 1.8 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 31, 2016 $ (544.3 ) $ 4.9 $ (32.1 ) $ (571.5 ) Other comprehensive income (loss) before reclassifications 42.4 (3.4 ) (2.4 ) 36.6 Amounts reclassified from accumulated other comprehensive loss — (1.1 ) 0.7 (0.4 ) Net current-period other comprehensive income (loss) 42.4 (4.5 ) (1.7 ) 36.2 Balance at April 1, 2017 $ (501.9 ) $ 0.4 $ (33.8 ) $ (535.3 ) (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 2.3 (1.4 ) (1.0 ) (0.1 ) Amounts reclassified from accumulated other comprehensive loss — (2.3 ) 0.1 (2.2 ) Net current-period other comprehensive income (loss) 2.3 (3.7 ) (0.9 ) (2.3 ) Balance at March 26, 2016 $ (488.3 ) $ 0.6 $ (36.6 ) $ (524.3 ) |
Re-engineering and Impairment30
Re-engineering and Impairment Costs (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 were as follows: (In millions) April 1, December 31, Beginning of the year balance $ 1.6 $ 1.7 Provision 2.3 7.6 Non-cash charges — (0.3 ) Cash expenditures: Severance (1.0 ) (5.2 ) Other (0.3 ) (2.2 ) End of period balance $ 2.6 $ 1.6 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 13 weeks ended (In millions) April 1, March 26, Net sales: Europe $ 149.5 $ 153.9 Asia Pacific 177.3 171.6 Tupperware North America 91.8 83.2 Beauty North America 39.5 48.9 South America 96.7 68.1 Total net sales $ 554.8 $ 525.7 Segment profit (loss): Europe $ 19.9 $ 25.2 Asia Pacific 40.0 36.9 Tupperware North America 16.4 14.6 Beauty North America (0.6 ) (1.7 ) South America 18.2 13.0 Total segment profit $ 93.9 $ 88.0 Unallocated expenses (16.4 ) (17.4 ) Re-engineering and impairment charges (a) (2.3 ) (1.1 ) Gains on disposal of assets 0.1 0.1 Interest expense, net (11.1 ) (11.4 ) Income before taxes $ 64.2 $ 58.2 (In millions) April 1, December 31, Identifiable assets: Europe $ 279.0 $ 257.2 Asia Pacific 298.2 278.6 Tupperware North America 136.2 119.0 Beauty North America 237.0 214.7 South America 146.3 124.6 Corporate 580.9 593.7 Total identifiable assets $ 1,677.6 $ 1,587.8 _________________________ (a) See Note 7 to the unaudited Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt Obligations | (In millions) April 1, December 31, 2016 Fixed rate senior notes due 2021 $ 599.4 $ 599.4 Five year Revolving Credit Agreement (a) 172.0 104.0 Belgium facility capital lease 8.4 8.4 Other 2.9 0.1 Total debt obligations $ 782.7 $ 711.9 ____________________ (a) $87.9 million and $84.6 million denominated in euros as of April 1, 2017 and December 31, 2016 , respectively. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 . 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 Apr 1, Dec 31, Balance sheet location Apr 1, Dec 31, Foreign exchange contracts Non-trade amounts receivable $ 20.2 $ 41.1 Accrued liabilities $ 28.4 $ 31.7 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the first quarters of 2017 and 2016 : 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 2017 2016 2017 2016 Foreign exchange contracts Other expense $ 28.2 $ 1.5 Other expense $ (28.1 ) $ (1.5 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the first quarters of 2017 and 2016 : 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 2017 2016 2017 2016 2017 2016 Foreign exchange contracts $ (4.4 ) $ (1.6 ) Cost of products sold $ 1.6 $ 3.1 Interest expense $ (1.3 ) $ (1.6 ) Net equity hedging relationships Foreign exchange contracts (30.0 ) (3.0 ) Other expense — — Interest expense (5.8 ) (5.2 ) Euro denominated debt (3.3 ) (2.7 ) |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for the first quarters ended April 1, 2017 and March 26, 2016 were as follows: First Quarter Pension benefits Post-retirement benefits (In millions) 2017 2016 2017 2016 Service cost $ 2.6 $ 2.7 $ — $ — Interest cost 1.4 1.6 0.2 0.2 Expected return on plan assets (1.2 ) (1.4 ) — — Settlement/curtailment 0.8 — — — Net amortization 0.3 0.4 (0.3 ) (0.3 ) Net periodic benefit cost $ 3.9 $ 3.3 $ (0.1 ) $ (0.1 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Stock option activity for 2017 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 31, 2016 2,722,965 $ 57.78 Expired / Forfeited (28,389 ) 70.46 Exercised (51,029 ) 41.53 Outstanding at April 1, 2017 2,643,547 $ 57.95 $ 17.4 Exercisable at April 1, 2017 1,527,494 $ 57.67 $ 12.4 |
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 2017 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 31, 2016 602,940 $ 61.28 Time-vested shares granted 3,801 52.62 Market-vested shares granted 25,170 61.29 Performance shares granted 76,615 60.39 Performance share adjustments (23,482 ) 64.09 Vested (32,786 ) 82.64 Forfeited (6,631 ) 61.56 April 1, 2017 645,627 $ 59.93 |
Schedule of Compensation Expense | Compensation expense related to the Company's stock based compensation for the first quarters ended April 1, 2017 and March 26, 2016 were as follows: First Quarter (In millions) 2017 2016 Stock options $ 0.7 $ 0.6 Time, performance and market vested share awards 4.1 3.3 |
Allowance for Long-Term Recei36
Allowance for Long-Term Receivables (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 was as follows: (In millions) Balance at December 31, 2016 $ 11.0 Write-offs (0.2 ) Provision and reclassifications 0.3 Currency translation adjustment 0.6 Balance at April 1, 2017 $ 11.7 |
Guarantor Information (Tables)
Guarantor Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Guarantor Information [Abstract] | |
Consolidating Statement of Income | Consolidating Statement of Income 13 weeks ended April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 556.7 $ (1.9 ) $ 554.8 Other revenue — 25.5 8.6 (34.1 ) — Cost of products sold — 8.6 202.6 (33.5 ) 177.7 Gross margin — 16.9 362.7 (2.5 ) 377.1 Delivery, sales and administrative expense 3.9 23.2 274.5 (2.5 ) 299.1 Re-engineering and impairment charges — 0.4 1.9 — 2.3 Gains on disposal of assets — — 0.1 — 0.1 Operating income (loss) (3.9 ) (6.7 ) 86.4 — 75.8 Interest income 5.1 0.7 8.3 (13.6 ) 0.5 Interest expense 8.6 14.3 2.3 (13.6 ) 11.6 Income from equity investments in subsidiaries 51.9 78.7 — (130.6 ) — Other expense (income) — 15.4 (14.9 ) — 0.5 Income before income taxes 44.5 43.0 107.3 (130.6 ) 64.2 Provision (benefit) for income taxes (2.9 ) (7.7 ) 27.4 — 16.8 Net income (loss) $ 47.4 $ 50.7 $ 79.9 $ (130.6 ) $ 47.4 Comprehensive income (loss) $ 83.6 $ 89.4 $ 132.8 $ (222.2 ) $ 83.6 Consolidating Statement of Income 13 weeks ended March 26, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 527.0 $ (1.3 ) $ 525.7 Other revenue — 25.3 7.7 (33.0 ) — Cost of products sold — 7.7 190.2 (31.9 ) 166.0 Gross margin — 17.6 344.5 (2.4 ) 359.7 Delivery, sales and administrative expense 3.2 22.4 265.5 (2.4 ) 288.7 Re-engineering and impairment charges — — 1.1 — 1.1 Gains on disposal of assets — — 0.1 — 0.1 Operating income (loss) (3.2 ) (4.8 ) 78.0 — 70.0 Interest income 5.1 0.4 6.2 (11.0 ) 0.7 Interest expense 8.7 12.3 2.1 (11.0 ) 12.1 Income from equity investments in subsidiaries 47.8 53.4 — (101.2 ) — Other expense (income) — (4.1 ) 4.5 — 0.4 Income before income taxes 41.0 40.8 77.6 (101.2 ) 58.2 Provision (benefit) for income taxes (2.4 ) (7.2 ) 24.4 — 14.8 Net income (loss) $ 43.4 $ 48.0 $ 53.2 $ (101.2 ) $ 43.4 Comprehensive income (loss) $ 41.1 $ 47.1 $ 49.5 $ (96.6 ) $ 41.1 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.3 $ 98.1 $ — $ 98.4 Accounts receivable, net — — 156.9 — 156.9 Inventories — — 268.1 — 268.1 Non-trade amounts receivable, net — 34.2 104.8 (88.0 ) 51.0 Intercompany receivables 11.8 904.8 259.1 (1,175.7 ) — Prepaid expenses and other current assets 0.7 6.3 99.2 (77.9 ) 28.3 Total current assets 12.5 945.6 986.2 (1,341.6 ) 602.7 Deferred income tax benefits, net 142.7 193.4 211.3 — 547.4 Property, plant and equipment, net — 50.8 218.3 — 269.1 Long-term receivables, net — 0.1 13.8 — 13.9 Trademarks and tradenames, net — — 69.6 — 69.6 Goodwill — 2.9 138.7 — 141.6 Investments in subsidiaries 1,447.5 1,451.2 — (2,898.7 ) — Intercompany notes receivable 484.2 101.0 750.7 (1,335.9 ) — Other assets, net 1.0 1.4 51.4 (20.5 ) 33.3 Total assets $ 2,087.9 $ 2,746.4 $ 2,440.0 $ (5,596.7 ) $ 1,677.6 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 2.7 $ 90.3 $ — $ 93.0 Short-term borrowings and current portion of long-term debt and capital lease obligations 172.0 — 4.8 — 176.8 Intercompany payables 831.8 252.1 91.8 (1,175.7 ) — Accrued liabilities 124.2 104.5 252.5 (165.9 ) 315.3 Total current liabilities 1,128.0 359.3 439.4 (1,341.6 ) 585.1 Long-term debt and capital lease obligations 599.4 — 6.5 — 605.9 Intercompany notes payable 82.5 950.7 302.7 (1,335.9 ) — Other liabilities 10.3 46.1 183.0 (20.5 ) 218.9 Shareholders' equity 267.7 1,390.3 1,508.4 (2,898.7 ) 267.7 Total liabilities and shareholders' equity $ 2,087.9 $ 2,746.4 $ 2,440.0 $ (5,596.7 ) $ 1,677.6 Condensed Consolidating Balance Sheet December 31, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.5 $ 92.7 $ — $ 93.2 Accounts receivable, net — — 125.3 — 125.3 Inventories — — 240.4 — 240.4 Non-trade amounts receivable, net — 50.5 85.1 (70.7 ) 64.9 Intercompany receivables 11.9 935.8 270.3 (1,218.0 ) — Prepaid expenses and other current assets 1.1 5.4 100.9 (85.9 ) 21.5 Total current assets 13.0 992.2 914.7 (1,374.6 ) 545.3 Deferred income tax benefits, net 142.7 193.2 203.8 — 539.7 Property, plant and equipment, net — 50.4 209.4 — 259.8 Long-term receivables, net — 0.1 13.1 — 13.2 Trademarks and tradenames, net — — 67.3 — 67.3 Goodwill — 2.9 129.7 — 132.6 Investments in subsidiaries 1,356.7 1,321.3 — (2,678.0 ) — Intercompany notes receivable 479.4 95.6 725.6 (1,300.6 ) — Other assets, net 1.2 1.2 57.8 (30.3 ) 29.9 Total assets $ 1,993.0 $ 2,656.9 $ 2,321.4 $ (5,383.5 ) $ 1,587.8 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 5.0 $ 112.7 $ — $ 117.7 Short-term borrowings and current portion of long-term debt and capital lease obligations 104.0 — 1.9 — 105.9 Intercompany payables 858.9 263.4 95.7 (1,218.0 ) — Accrued liabilities 130.9 102.8 246.9 (156.6 ) 324.0 Total current liabilities 1,093.8 371.2 457.2 (1,374.6 ) 547.6 Long-term debt and capital lease obligations 599.4 — 6.6 — 606.0 Intercompany notes payable 77.0 928.0 295.6 (1,300.6 ) — Other liabilities 10.0 56.8 184.9 (30.3 ) 221.4 Shareholders' equity 212.8 1,300.9 1,377.1 (2,678.0 ) 212.8 Total liabilities and shareholders' equity $ 1,993.0 $ 2,656.9 $ 2,321.4 $ (5,383.5 ) $ 1,587.8 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows 13 weeks ended April 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (5.3 ) $ (27.1 ) $ 23.2 $ (8.4 ) $ (17.6 ) Investing Activities: Capital expenditures — (4.8 ) (11.2 ) — (16.0 ) Proceeds from disposal of property, plant and equipment — — 0.3 — 0.3 Net intercompany loans 0.7 22.2 (13.0 ) (9.9 ) — Net cash provided by (used in) investing activities 0.7 17.4 (23.9 ) (9.9 ) (15.7 ) Financing Activities: Dividend payments to shareholders (34.7 ) — — — (34.7 ) Dividend payments to parent — — (1.5 ) 1.5 — Proceeds from exercise of stock options 2.1 — — — 2.1 Repurchase of common stock (0.5 ) — — — (0.5 ) Repayment of capital lease obligations — — (0.4 ) — (0.4 ) Net change in short-term debt 64.7 — 2.9 — 67.6 Net intercompany borrowings (27.0 ) 9.5 0.7 16.8 — Net cash provided by (used in) financing activities 4.6 9.5 1.7 18.3 34.1 Effect of exchange rate changes on cash and cash equivalents — — 4.4 — 4.4 Net change in cash and cash equivalents — (0.2 ) 5.4 — 5.2 Cash and cash equivalents at beginning of year — 0.5 92.7 — 93.2 Cash and cash equivalents at end of period $ — $ 0.3 $ 98.1 $ — $ 98.4 Condensed Consolidating Statement of Cash Flows 13 weeks ended March 26, 2016 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ 1.9 $ (20.9 ) $ 10.1 $ 1.4 $ (7.5 ) Investing Activities: Capital expenditures — (2.4 ) (7.0 ) — (9.4 ) Proceeds from disposal of property, plant and equipment — — 0.4 — 0.4 Net intercompany loans 0.5 (1.4 ) (18.7 ) 19.6 — Net cash provided by (used in) investing activities 0.5 (3.8 ) (25.3 ) 19.6 (9.0 ) Financing Activities: Dividend payments to shareholders (35.0 ) — — — (35.0 ) Dividend payments to parent — — (1.5 ) 1.5 — Repurchase of common stock (0.8 ) — — — (0.8 ) Repayment of capital lease obligations — — (0.4 ) — (0.4 ) Net change in short-term debt 34.9 — 31.8 — 66.7 Net intercompany borrowings (1.5 ) 25.3 (1.3 ) (22.5 ) — Net cash provided by (used in) financing activities (2.4 ) 25.3 28.6 (21.0 ) 30.5 Effect of exchange rate changes on cash and cash equivalents — — 4.8 — 4.8 Net change in cash and cash equivalents — 0.6 18.2 — 18.8 Cash and cash equivalents at beginning of year — — 79.8 — 79.8 Cash and cash equivalents at end of period $ — $ 0.6 $ 98.0 $ — $ 98.6 |
Shipping and Handling Costs (De
Shipping and Handling Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Shipping and Handling Costs [Abstract] | ||
Distribution costs | $ 34.8 | $ 31.7 |
Promotional Costs (Details)
Promotional Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Promotional Costs [Abstract] | ||
Promotional and other sales force compensation expenses | $ 95.9 | $ 93.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Finished goods | $ 205.7 | $ 189.4 |
Work in process | 28.6 | 23 |
Raw materials and supplies | 33.8 | 28 |
Total inventories | $ 268.1 | $ 240.4 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Net Income Per Common Share [Line Items] | ||
Net income | $ 47.4 | $ 43.4 |
Weighted-average shares of common stock outstanding | 50.7 | 50.4 |
Common equivalent shares: | ||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.3 | 0.2 |
Weighted-average common and common equivalent shares outstanding | 51 | 50.6 |
Basic earnings per share | $ 0.94 | $ 0.86 |
Diluted earnings per share | $ 0.93 | $ 0.86 |
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 1.7 | 1.8 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | Dec. 26, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (535.3) | $ (524.3) | $ (571.5) | $ (522) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 36.6 | (0.1) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.4) | (2.2) | ||
Other Comprehensive Income (Loss), Net of Tax | 36.2 | (2.3) | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, before tax | 1.6 | 3.1 | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, tax | (0.5) | (0.8) | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, prior service benefit, before tax | 0.4 | 0.3 | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, actuarial losses, before tax | (0.4) | (0.4) | ||
Amounts reclassified from accumulated other comprehenesive loss, pension and other post-retirement items, settlement or curtailment, before tax | 0.8 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | 0.1 | 0 | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (501.9) | (488.3) | (544.3) | (490.6) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 42.4 | 2.3 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 42.4 | 2.3 | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 0.4 | 0.6 | 4.9 | 4.3 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (3.4) | (1.4) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1.1) | (2.3) | ||
Other Comprehensive Income (Loss), Net of Tax | (4.5) | (3.7) | ||
Pension and Other Post-retirement Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (33.8) | (36.6) | $ (32.1) | $ (35.7) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2.4) | (1) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.7 | 0.1 | ||
Other Comprehensive Income (Loss), Net of Tax | $ (1.7) | $ (0.9) |
Re-engineering and Impairment43
Re-engineering and Impairment Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning of the year balance | $ 1.6 | $ 1.7 | $ 1.7 |
Provision | 2.3 | $ 1.1 | 7.6 |
Non-cash charges | 0 | (0.3) | |
End of period balance | 2.6 | 1.6 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Cash expenditures | (1) | (5.2) | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Cash expenditures | $ (0.3) | $ (2.2) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 554.8 | $ 525.7 | ||
Segment profit (loss) | 93.9 | 88 | ||
Unallocated expenses | (16.4) | (17.4) | ||
Re-engineering and impairment charges (a) | (2.3) | (1.1) | [1] | |
Gains on disposal of assets | 0.1 | 0.1 | ||
Interest expense, net | (11.1) | (11.4) | ||
Income before income taxes | 64.2 | 58.2 | ||
Total identifiable assets | 1,677.6 | $ 1,587.8 | ||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 149.5 | 153.9 | ||
Segment profit (loss) | 19.9 | 25.2 | ||
Total identifiable assets | 279 | 257.2 | ||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 177.3 | 171.6 | ||
Segment profit (loss) | 40 | 36.9 | ||
Total identifiable assets | 298.2 | 278.6 | ||
Tupperware North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 91.8 | 83.2 | ||
Segment profit (loss) | 16.4 | 14.6 | ||
Total identifiable assets | 136.2 | 119 | ||
Beauty North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 39.5 | 48.9 | ||
Segment profit (loss) | (0.6) | (1.7) | ||
Total identifiable assets | 237 | 214.7 | ||
South America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 96.7 | 68.1 | ||
Segment profit (loss) | 18.2 | 13 | ||
Total identifiable assets | 146.3 | 124.6 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total identifiable assets | 580.9 | $ 593.7 | ||
Beauty and Personal Care Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 79.6 | $ 84.2 | ||
[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 | 3 Months Ended | ||
Apr. 01, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 782.7 | $ 711.9 | |
Unused lines of credit | 511.8 | ||
Senior Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 599.4 | 599.4 | |
Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | [1] | $ 172 | 104 |
Variable rate basis | LIBOR | ||
Unused lines of credit | $ 426.6 | ||
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 | 1.93% | ||
Belgium Facility Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations | $ 8.4 | 8.4 | |
Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 2.9 | 0.1 | |
Uncommitted Lines of credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 85.2 | ||
Euro | Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 87.9 | $ 84.6 | |
[1] | (a)$87.9 million and $84.6 million denominated in euros |
Derivative Instruments and He46
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net cash impact from hedging activity | $ 10.2 | $ 10.7 |
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) | $ 4.8 | 3.9 |
Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
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) | $ (1.3) | (1.6) |
Net Equity Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | (21.3) | (3.7) |
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) | $ (5.8) | $ (5.2) |
Minimum [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Lower Remaining Maturity Range | 1 month | |
Maximum [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Lower Remaining Maturity Range | 15 months |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) - Forward Contracts [Member] - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 136.7 | $ 116.7 |
Derivative Liability, Notional Amount | 147.2 | $ 109.6 |
U.S. dollars | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 72.9 | |
Mexican pesos | Short [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 34.9 |
Derivative Instruments and He48
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 | Apr. 01, 2017 | Dec. 31, 2016 |
Non-trade amounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 20.2 | $ 41.1 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 28.4 | $ 31.7 |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
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) | $ 4.8 | $ 3.9 |
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 | 28.2 | 1.5 |
Amount of gain or (loss) recognized in income on related hedged items | (28.1) | (1.5) |
Cash Flow Hedging [Member] | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | (4.4) | (1.6) |
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) | 1.6 | 3.1 |
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) | (1.3) | (1.6) |
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) | (30) | (3) |
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) | (3.3) | (2.7) |
Net Equity Hedging [Member] | Other expense | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 |
Net Equity Hedging [Member] | 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) | $ (5.8) | $ (5.2) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Senior Notes Due 2021 [Member] - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 | 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 | $ 599.4 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | $ 639 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization | $ 0.8 | $ 0.1 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2.6 | 2.7 |
Interest cost | 1.4 | 1.6 |
Expected return on plan assets | (1.2) | (1.4) |
Settlements and Curtailments | 0.8 | 0 |
Net amortization | 0.3 | 0.4 |
Net periodic benefit cost | 3.9 | 3.3 |
Post-retirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 |
Settlements and Curtailments | 0 | 0 |
Net amortization | (0.3) | (0.3) |
Net periodic benefit cost | $ (0.1) | $ (0.1) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Effective tax rate | 26.20% | 25.40% | |
Gross unrecognized tax benefit | $ 21.5 | $ 20.7 | |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 20 | ||
Accrued interest and penalties related to uncertain tax positions | 7.6 | $ 7.1 | |
Decrease in Unrecognized Tax Benefits Reasonably Possible, Amount of Unrecorded Benefit | $ 1.6 |
Statement of Cash Flow Supple53
Statement of Cash Flow Supplemental Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Other Significant Noncash Transactions [Line Items] | ||
Shares Paid for Tax Withholding for Share Based Compensation | 8,553 | 15,261 |
Shares Paid For Tax Withholding For Share Based Compensation, Value | $ 0.5 | $ 0.8 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
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 | $ 29 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 15 days | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at December 31, 2016 | 2,722,965 | |
Weighted Average Exercise Price Per Share Outstanding, Beginning of Period | $ 57.78 | |
Expired / Forfeited | (28,389) | |
Weighted Average Exercise Price Per Share Outstanding, Expired/Forfeited | $ 70.46 | |
Exercised | (51,029) | |
Weighted Average Exercise Price Per Shares Outstanding, Exercised | $ 41.53 | |
Outstanding at April 1, 2017 | 2,643,547 | |
Weighted Average Exercise Price Per Share Outstanding, End of Period | $ 57.95 | |
Outstanding Shares Subject to Option, Aggregate Intrinsic Value | $ 17.4 | |
Exercisable at April 1, 2017 | 1,527,494 | |
Weighted Average Exercise Price Per Share Exercisable, End of Period | $ 57.67 | |
Options Exercisable at End of Period, Aggregate Intrinsic Value | $ 12.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 1 | $ 0 |
Stock Option Expense | $ 0.7 | 0.6 |
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 | 602,940 | |
Weighted Average Grant Date Fair Value, Beginning of Period | $ 61.28 | |
Shares Outstanding, Vested | (32,786) | |
Weighted Average Grant Date Fair Value, Vested | $ 82.64 | |
Shares Outstanding, Forfeited | (6,631) | |
Weighted Average Grant Date Fair Value, Forfeited | $ 61.56 | |
Shares Outstanding, End of Period | 645,627 | |
Weighted Average Grant Date Fair Value, End of Period | $ 59.93 | |
Time, Performance and Market Vested Share Awards Expense | $ 4.1 | $ 3.3 |
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 | 3,801 | |
Weighted Average Grant Date Fair Value, Granted | $ 52.62 | |
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 | 25,170 | |
Weighted Average Grant Date Fair Value, Granted | $ 61.29 | |
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 | 76,615 | |
Weighted Average Grant Date Fair Value, Granted | $ 60.39 | |
Shares Outstanding, Performance Share Adjustments | (23,482) | |
Weighted Average Grant Date Fair Value, Performance Share Adjustments | $ 64.09 |
Allowance for Long-Term Recei55
Allowance for Long-Term Receivables (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Long-Term Receivables Past Due | $ 11.2 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Balance at December 31, 2016 | 11 |
Write-offs | (0.2) |
Provision and reclassifications | 0.3 |
Currency translation adjustment | 0.6 |
Balance at April 1, 2017 | $ 11.7 |
Guarantor Information (Details)
Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Net sales | $ 554.8 | $ 525.7 | |||
Other revenue | 0 | 0 | |||
Cost of products sold | 177.7 | 166 | |||
Gross margin | 377.1 | 359.7 | |||
Delivery, sales and administrative expense | 299.1 | 288.7 | |||
Re-engineering and impairment charges | 2.3 | 1.1 | [1] | ||
Gains on disposal of assets | 0.1 | 0.1 | |||
Operating income | 75.8 | 70 | |||
Interest income | 0.5 | 0.7 | |||
Interest expense | 11.6 | 12.1 | |||
Income from equity investments in subsidiaries | 0 | 0 | |||
Other expense | 0.5 | 0.4 | |||
Income before income taxes | 64.2 | 58.2 | |||
Provision (benefit) for income taxes | 16.8 | 14.8 | |||
Net income | 47.4 | 43.4 | |||
Comprehensive income (loss) | 83.6 | 41.1 | |||
ASSETS | |||||
Cash and cash equivalents | 98.4 | 98.6 | $ 93.2 | $ 79.8 | |
Accounts receivable, net | 156.9 | 125.3 | |||
Inventories | 268.1 | 240.4 | |||
Non-trade amounts receivable, net | 51 | 64.9 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses and other current assets | 28.3 | 21.5 | |||
Total current assets | 602.7 | 545.3 | |||
Deferred income tax benefits, net | 547.4 | 539.7 | |||
Property, plant and equipment, net | 269.1 | 259.8 | |||
Long-term receivables, net | 13.9 | 13.2 | |||
Trademarks and tradenames, net | 69.6 | 67.3 | |||
Goodwill | 141.6 | 132.6 | |||
Investments in subsidiaries | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | |||
Other assets, net | 33.3 | 29.9 | |||
Total assets | 1,677.6 | 1,587.8 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 93 | 117.7 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 176.8 | 105.9 | |||
Intercompany payables | 0 | 0 | |||
Accrued liabilities | 315.3 | 324 | |||
Total current liabilities | 585.1 | 547.6 | |||
Long-term debt and capital lease obligations | 605.9 | 606 | |||
Intercompany notes payable | 0 | 0 | |||
Other liabilities | 218.9 | 221.4 | |||
Total shareholders' equity | 267.7 | 212.8 | |||
Total liabilities and shareholders' equity | 1,677.6 | 1,587.8 | |||
Operating Activities: | |||||
Net cash used in operating activities | (17.6) | (7.5) | |||
Investing Activities: | |||||
Capital expenditures | (16) | (9.4) | |||
Proceeds from disposal of property, plant and equipment | 0.3 | 0.4 | |||
Net intercompany loans | 0 | 0 | |||
Net cash used in investing activities | (15.7) | (9) | |||
Financing Activities: | |||||
Dividend payments to shareholders | (34.7) | (35) | |||
Cash Dividends Paid to Parent Company | 0 | 0 | |||
Proceeds from exercise of stock options | 2.1 | 0 | |||
Repurchase of common stock | (0.5) | (0.8) | |||
Repayment of capital lease obligations | (0.4) | (0.4) | |||
Net change in short-term debt | 67.6 | 66.7 | |||
Net intercompany borrowings | 0 | 0 | |||
Net cash provided by financing activities | 34.1 | 30.5 | |||
Effect of exchange rate changes on cash and cash equivalents | 4.4 | 4.8 | |||
Net change in cash and cash equivalents | 5.2 | 18.8 | |||
Parent | |||||
Net sales | 0 | 0 | |||
Other revenue | 0 | 0 | |||
Cost of products sold | 0 | 0 | |||
Gross margin | 0 | 0 | |||
Delivery, sales and administrative expense | 3.9 | 3.2 | |||
Re-engineering and impairment charges | 0 | 0 | |||
Gains on disposal of assets | 0 | 0 | |||
Operating income | (3.9) | (3.2) | |||
Interest income | 5.1 | 5.1 | |||
Interest expense | 8.6 | 8.7 | |||
Income from equity investments in subsidiaries | 51.9 | 47.8 | |||
Other expense | 0 | 0 | |||
Income before income taxes | 44.5 | 41 | |||
Provision (benefit) for income taxes | (2.9) | (2.4) | |||
Net income | 47.4 | 43.4 | |||
Comprehensive income (loss) | 83.6 | 41.1 | |||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Non-trade amounts receivable, net | 0 | 0 | |||
Intercompany receivables | 11.8 | 11.9 | |||
Prepaid expenses and other current assets | 0.7 | 1.1 | |||
Total current assets | 12.5 | 13 | |||
Deferred income tax benefits, net | 142.7 | 142.7 | |||
Property, plant and equipment, net | 0 | 0 | |||
Long-term receivables, net | 0 | 0 | |||
Trademarks and tradenames, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Investments in subsidiaries | 1,447.5 | 1,356.7 | |||
Intercompany notes receivable | 484.2 | 479.4 | |||
Other assets, net | 1 | 1.2 | |||
Total assets | 2,087.9 | 1,993 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 0 | 0 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 172 | 104 | |||
Intercompany payables | 831.8 | 858.9 | |||
Accrued liabilities | 124.2 | 130.9 | |||
Total current liabilities | 1,128 | 1,093.8 | |||
Long-term debt and capital lease obligations | 599.4 | 599.4 | |||
Intercompany notes payable | 82.5 | 77 | |||
Other liabilities | 10.3 | 10 | |||
Total shareholders' equity | 267.7 | 212.8 | |||
Total liabilities and shareholders' equity | 2,087.9 | 1,993 | |||
Operating Activities: | |||||
Net cash used in operating activities | (5.3) | 1.9 | |||
Investing Activities: | |||||
Capital expenditures | 0 | 0 | |||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||
Net intercompany loans | 0.7 | 0.5 | |||
Net cash used in investing activities | 0.7 | 0.5 | |||
Financing Activities: | |||||
Dividend payments to shareholders | (34.7) | (35) | |||
Cash Dividends Paid to Parent Company | 0 | 0 | |||
Proceeds from exercise of stock options | 2.1 | ||||
Repurchase of common stock | (0.5) | (0.8) | |||
Repayment of capital lease obligations | 0 | 0 | |||
Net change in short-term debt | 64.7 | 34.9 | |||
Net intercompany borrowings | (27) | (1.5) | |||
Net cash provided by financing activities | 4.6 | (2.4) | |||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |||
Net change in cash and cash equivalents | $ 0 | 0 | |||
Guarantor | |||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||
Net sales | $ 0 | 0 | |||
Other revenue | 25.5 | 25.3 | |||
Cost of products sold | 8.6 | 7.7 | |||
Gross margin | 16.9 | 17.6 | |||
Delivery, sales and administrative expense | 23.2 | 22.4 | |||
Re-engineering and impairment charges | 0.4 | 0 | |||
Gains on disposal of assets | 0 | 0 | |||
Operating income | (6.7) | (4.8) | |||
Interest income | 0.7 | 0.4 | |||
Interest expense | 14.3 | 12.3 | |||
Income from equity investments in subsidiaries | 78.7 | 53.4 | |||
Other expense | 15.4 | (4.1) | |||
Income before income taxes | 43 | 40.8 | |||
Provision (benefit) for income taxes | (7.7) | (7.2) | |||
Net income | 50.7 | 48 | |||
Comprehensive income (loss) | 89.4 | 47.1 | |||
ASSETS | |||||
Cash and cash equivalents | 0.3 | 0.6 | 0.5 | 0 | |
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Non-trade amounts receivable, net | 34.2 | 50.5 | |||
Intercompany receivables | 904.8 | 935.8 | |||
Prepaid expenses and other current assets | 6.3 | 5.4 | |||
Total current assets | 945.6 | 992.2 | |||
Deferred income tax benefits, net | 193.4 | 193.2 | |||
Property, plant and equipment, net | 50.8 | 50.4 | |||
Long-term receivables, net | 0.1 | 0.1 | |||
Trademarks and tradenames, net | 0 | 0 | |||
Goodwill | 2.9 | 2.9 | |||
Investments in subsidiaries | 1,451.2 | 1,321.3 | |||
Intercompany notes receivable | 101 | 95.6 | |||
Other assets, net | 1.4 | 1.2 | |||
Total assets | 2,746.4 | 2,656.9 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 2.7 | 5 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany payables | 252.1 | 263.4 | |||
Accrued liabilities | 104.5 | 102.8 | |||
Total current liabilities | 359.3 | 371.2 | |||
Long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany notes payable | 950.7 | 928 | |||
Other liabilities | 46.1 | 56.8 | |||
Total shareholders' equity | 1,390.3 | 1,300.9 | |||
Total liabilities and shareholders' equity | 2,746.4 | 2,656.9 | |||
Operating Activities: | |||||
Net cash used in operating activities | (27.1) | (20.9) | |||
Investing Activities: | |||||
Capital expenditures | (4.8) | (2.4) | |||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||
Net intercompany loans | 22.2 | (1.4) | |||
Net cash used in investing activities | 17.4 | (3.8) | |||
Financing Activities: | |||||
Dividend payments to shareholders | 0 | 0 | |||
Cash Dividends Paid to Parent Company | 0 | 0 | |||
Proceeds from exercise of stock options | 0 | ||||
Repurchase of common stock | 0 | 0 | |||
Repayment of capital lease obligations | 0 | 0 | |||
Net change in short-term debt | 0 | 0 | |||
Net intercompany borrowings | 9.5 | 25.3 | |||
Net cash provided by financing activities | 9.5 | 25.3 | |||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |||
Net change in cash and cash equivalents | (0.2) | 0.6 | |||
Non-Guarantors | |||||
Net sales | 556.7 | 527 | |||
Other revenue | 8.6 | 7.7 | |||
Cost of products sold | 202.6 | 190.2 | |||
Gross margin | 362.7 | 344.5 | |||
Delivery, sales and administrative expense | 274.5 | 265.5 | |||
Re-engineering and impairment charges | 1.9 | 1.1 | |||
Gains on disposal of assets | 0.1 | 0.1 | |||
Operating income | 86.4 | 78 | |||
Interest income | 8.3 | 6.2 | |||
Interest expense | 2.3 | 2.1 | |||
Income from equity investments in subsidiaries | 0 | 0 | |||
Other expense | (14.9) | 4.5 | |||
Income before income taxes | 107.3 | 77.6 | |||
Provision (benefit) for income taxes | 27.4 | 24.4 | |||
Net income | 79.9 | 53.2 | |||
Comprehensive income (loss) | 132.8 | 49.5 | |||
ASSETS | |||||
Cash and cash equivalents | 98.1 | 98 | 92.7 | 79.8 | |
Accounts receivable, net | 156.9 | 125.3 | |||
Inventories | 268.1 | 240.4 | |||
Non-trade amounts receivable, net | 104.8 | 85.1 | |||
Intercompany receivables | 259.1 | 270.3 | |||
Prepaid expenses and other current assets | 99.2 | 100.9 | |||
Total current assets | 986.2 | 914.7 | |||
Deferred income tax benefits, net | 211.3 | 203.8 | |||
Property, plant and equipment, net | 218.3 | 209.4 | |||
Long-term receivables, net | 13.8 | 13.1 | |||
Trademarks and tradenames, net | 69.6 | 67.3 | |||
Goodwill | 138.7 | 129.7 | |||
Investments in subsidiaries | 0 | 0 | |||
Intercompany notes receivable | 750.7 | 725.6 | |||
Other assets, net | 51.4 | 57.8 | |||
Total assets | 2,440 | 2,321.4 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 90.3 | 112.7 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 4.8 | 1.9 | |||
Intercompany payables | 91.8 | 95.7 | |||
Accrued liabilities | 252.5 | 246.9 | |||
Total current liabilities | 439.4 | 457.2 | |||
Long-term debt and capital lease obligations | 6.5 | 6.6 | |||
Intercompany notes payable | 302.7 | 295.6 | |||
Other liabilities | 183 | 184.9 | |||
Total shareholders' equity | 1,508.4 | 1,377.1 | |||
Total liabilities and shareholders' equity | 2,440 | 2,321.4 | |||
Operating Activities: | |||||
Net cash used in operating activities | 23.2 | 10.1 | |||
Investing Activities: | |||||
Capital expenditures | (11.2) | (7) | |||
Proceeds from disposal of property, plant and equipment | 0.3 | 0.4 | |||
Net intercompany loans | (13) | (18.7) | |||
Net cash used in investing activities | (23.9) | (25.3) | |||
Financing Activities: | |||||
Dividend payments to shareholders | 0 | 0 | |||
Cash Dividends Paid to Parent Company | (1.5) | (1.5) | |||
Proceeds from exercise of stock options | 0 | ||||
Repurchase of common stock | 0 | 0 | |||
Repayment of capital lease obligations | (0.4) | (0.4) | |||
Net change in short-term debt | 2.9 | 31.8 | |||
Net intercompany borrowings | 0.7 | (1.3) | |||
Net cash provided by financing activities | 1.7 | 28.6 | |||
Effect of exchange rate changes on cash and cash equivalents | 4.4 | 4.8 | |||
Net change in cash and cash equivalents | 5.4 | 18.2 | |||
Eliminations | |||||
Net sales | (1.9) | (1.3) | |||
Other revenue | (34.1) | (33) | |||
Cost of products sold | (33.5) | (31.9) | |||
Gross margin | (2.5) | (2.4) | |||
Delivery, sales and administrative expense | (2.5) | (2.4) | |||
Re-engineering and impairment charges | 0 | 0 | |||
Gains on disposal of assets | 0 | 0 | |||
Operating income | 0 | 0 | |||
Interest income | (13.6) | (11) | |||
Interest expense | (13.6) | (11) | |||
Income from equity investments in subsidiaries | (130.6) | (101.2) | |||
Other expense | 0 | 0 | |||
Income before income taxes | (130.6) | (101.2) | |||
Provision (benefit) for income taxes | 0 | 0 | |||
Net income | (130.6) | (101.2) | |||
Comprehensive income (loss) | (222.2) | (96.6) | |||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 | |
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Non-trade amounts receivable, net | (88) | (70.7) | |||
Intercompany receivables | (1,175.7) | (1,218) | |||
Prepaid expenses and other current assets | (77.9) | (85.9) | |||
Total current assets | (1,341.6) | (1,374.6) | |||
Deferred income tax benefits, net | 0 | 0 | |||
Property, plant and equipment, net | 0 | 0 | |||
Long-term receivables, net | 0 | 0 | |||
Trademarks and tradenames, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Investments in subsidiaries | (2,898.7) | (2,678) | |||
Intercompany notes receivable | (1,335.9) | (1,300.6) | |||
Other assets, net | (20.5) | (30.3) | |||
Total assets | (5,596.7) | (5,383.5) | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 0 | 0 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany payables | (1,175.7) | (1,218) | |||
Accrued liabilities | (165.9) | (156.6) | |||
Total current liabilities | (1,341.6) | (1,374.6) | |||
Long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany notes payable | (1,335.9) | (1,300.6) | |||
Other liabilities | (20.5) | (30.3) | |||
Total shareholders' equity | (2,898.7) | (2,678) | |||
Total liabilities and shareholders' equity | (5,596.7) | $ (5,383.5) | |||
Operating Activities: | |||||
Net cash used in operating activities | (8.4) | 1.4 | |||
Investing Activities: | |||||
Capital expenditures | 0 | 0 | |||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||
Net intercompany loans | (9.9) | 19.6 | |||
Net cash used in investing activities | (9.9) | 19.6 | |||
Financing Activities: | |||||
Dividend payments to shareholders | 0 | 0 | |||
Cash Dividends Paid to Parent Company | 1.5 | 1.5 | |||
Proceeds from exercise of stock options | 0 | ||||
Repurchase of common stock | 0 | 0 | |||
Repayment of capital lease obligations | 0 | 0 | |||
Net change in short-term debt | 0 | 0 | |||
Net intercompany borrowings | 16.8 | (22.5) | |||
Net cash provided by financing activities | 18.3 | (21) | |||
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. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Goodwill | $ 141.6 | $ 132.6 |
Goodwill [Member] | Fuller Mexico [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Goodwill | $ 80 |