Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 26, 2018 | |
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 | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 50,022,380 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Net sales | $ 535.4 | $ 572.9 | $ 1,078 | $ 1,127.7 | |
Cost of products sold | 173.5 | 182.6 | 352.5 | 360.3 | |
Gross margin | 361.9 | 390.3 | 725.5 | 767.4 | |
Delivery, sales and administrative expense | 272.8 | 299 | 562 | 596.9 | |
Re-engineering and impairment charges | 2.1 | 32.6 | 9.7 | 34.9 | [1] |
Impairment of goodwill | 0 | 62.9 | 0 | 62.9 | |
Gains on disposal of assets | 12.4 | 3.1 | 14.6 | 3.2 | |
Operating income (loss) | 99.4 | (1.1) | 168.4 | 75.9 | |
Interest income | 0.7 | 0.7 | 1.4 | 1.2 | |
Interest expense | 11.9 | 11.6 | 23 | 23.2 | |
Other (income) expense | (0.4) | 0.7 | (0.2) | 2.4 | |
Income (loss) before income taxes | 88.6 | (12.7) | 147 | 51.5 | |
Provision for income taxes | 24.8 | 5 | 47.5 | 21.8 | |
Net income (loss) | $ 63.8 | $ (17.7) | $ 99.5 | $ 29.7 | |
Earnings (loss) per share: | |||||
Basic | $ 1.26 | $ (0.35) | $ 1.96 | $ 0.59 | |
Diluted | $ 1.26 | $ (0.35) | $ 1.95 | $ 0.58 | |
Weighted-average shares outstanding: | |||||
Basic | 50.5 | 50.8 | 50.8 | 50.7 | |
Diluted | 50.7 | 50.8 | 51 | 51.2 | |
Dividends declared per common share | $ 0.68 | $ 0.68 | $ 1.36 | $ 1.36 | |
[1] | (a)See Note 7 to the 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Net income (loss) | $ 63.8 | $ (17.7) | $ 99.5 | $ 29.7 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | (55.1) | 9.8 | (45) | 52.2 |
Deferred gain (loss) on cash flow hedges, net of tax benefit (provision) of ($0.6), $0.4, ($0.3) and $1.8, respectively | 2.5 | (1.4) | 1.8 | (5.9) |
Pension and other post-retirement benefits (costs), net of tax benefit (provision) of ($0.6),$0.7, $0 and $1.4, respectively | 2.5 | (1.6) | 0.8 | (3.3) |
Other comprehensive income (loss) | (50.1) | 6.8 | (42.4) | 43 |
Total comprehensive income (loss) | $ 13.7 | $ (10.9) | $ 57.1 | $ 72.7 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Deferred gain (loss) on cash flow hedges, tax (benefit) provision | $ 0.6 | $ (0.4) | $ 0.3 | $ (1.8) |
Pension and other post retirement costs, tax (provision) benefit | $ (0.6) | $ 0.7 | $ 0 | $ 1.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 98 | $ 144.1 |
Accounts receivable, less allowances of $42.8 and $38.2, respectively | 163.3 | 144.4 |
Inventories | 281.6 | 262.2 |
Non-trade amounts receivable, net | 63.4 | 58.6 |
Prepaid expenses and other current assets | 24.8 | 21.2 |
Total current assets | 631.1 | 630.5 |
Deferred income tax benefits, net | 236.3 | 278 |
Property, plant and equipment, net | 271.5 | 278.2 |
Long-term receivables, less allowances of $15.2 and $16.5, respectively | 18.5 | 19.3 |
Trademarks and tradenames, net | 57.2 | 62.5 |
Goodwill | 76.9 | 78.9 |
Other assets, net | 46.6 | 40.6 |
Total assets | 1,338.1 | 1,388 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 90.1 | 124.4 |
Short-term borrowings and current portion of long-term debt and capital lease obligations | 257.8 | 133 |
Accrued liabilities | 347.4 | 401.4 |
Total current liabilities | 695.3 | 658.8 |
Long-term debt and capital lease obligations | 604 | 605.1 |
Other liabilities | 214.3 | 243.5 |
Shareholders' equity (deficit): | ||
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 | 217.4 | 217.8 |
Retained earnings | 1,073.6 | 1,043.1 |
Treasury stock, 13,584,710 and 12,549,392 shares, respectively, at cost | (895.3) | (851.5) |
Accumulated other comprehensive loss | (571.8) | (529.4) |
Total shareholders' deficit | (175.5) | (119.4) |
Total liabilities and shareholders' deficit | $ 1,338.1 | $ 1,388 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 30, 2017 |
Accounts receivable, allowances | $ 42.8 | $ 38.2 |
Long-term receivables, allowances | $ 15.2 | $ 16.5 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 63,607,090 | 63,607,090 |
Treasury stock, shares | 13,584,710 | 12,549,392 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Operating Activities: | ||
Net cash provided by (used in) operating activities | $ (38.8) | $ 14.2 |
Investing Activities: | ||
Capital expenditures | (37.6) | (32) |
Proceeds from disposal of property, plant and equipment | 33.1 | 5.3 |
Net cash used in investing activities | (4.5) | (26.7) |
Financing Activities: | ||
Dividend payments to shareholders | (70.2) | (69.3) |
Proceeds from exercise of stock options | 0.3 | 9.9 |
Repurchase of common stock | (51.1) | (0.6) |
Repayment of capital lease obligations | (1.3) | (1.2) |
Net change in short-term debt | 127.6 | 60.1 |
Net cash provided by (used in) financing activities | 5.3 | (1.1) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (7.1) | 5.5 |
Net change in cash, cash equivalents and restricted cash | (45.1) | (8.1) |
Cash, cash equivalents and restricted cash at beginning of year | 147.2 | 96 |
Cash, cash equivalents and restricted cash at end of period | $ 102.1 | $ 87.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 30, 2017 . Certain prior year amounts have been reclassified to conform with current year presentation. This includes changes to the presentation of pension costs in other expense in the Company's Consolidated Statement of Income under ASU 2017-07, Improving the Presentation of Net Periodic Pension Costs and Net Periodic Post-Retirement Benefit Costs . For applying the retrospective presentation requirements under this standard, the Company used the practical expedient that allows for the use of amounts disclosed in its retirement benefit plans note for the year ended December 30, 2017 as the estimation basis. These condensed consolidated financial statements are unaudited and have been prepared following the rules and regulations of the United States Securities and Exchange Commission and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of the results for the interim periods. Certain information and note disclosures normally included in the balance sheet, statements of income, comprehensive income and cash flows prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. Revenue Recognition: On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. There was no impact on beginning retained earnings from the adoption as of December 31, 2017. Results for reporting periods beginning December 31, 2017 are presented under the new guidance, while prior period amounts continue to be reported in accordance with previous guidance without revision. Under the new guidance, the contract is defined as the order received from the Company's customer who, in most cases, is one of the Company's independent distributors or a member of its independent sales force. Revenue is recognized when control of the product passes to the customer, which is upon shipment, and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. Generally, payment is either received in advance or in a relatively short period of time following shipment. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations, related to timing of product shipment, that will be satisfied in different accounting periods. When that is the case, revenue is deferred until each performance obligation is met. The impact in the second quarter of 2018 from deferred revenue was not material. Compared with historical accounting under the previous guidance, the Company estimates revenue for the year-to-date period of 2018 would have been $6 million lower, with no material impact in the second quarter. This primarily reflects, under previous guidance in 2017, certain operating units recording revenue upon delivery that are now recording revenue upon shipment under the new guidance. The impact to the Company's consolidated balance sheet as a result of adopting the new guidance was not significant. The Company primarily disaggregates revenue based on geography. Refer to disaggregation information included in Note 8 to the Consolidated Financial Statements. Foreign Currency Translation: Inflation in Argentina has been at relatively high levels over the past several years. The Company uses a blended index of the Consumer Price Index and National Consumer Price Index for determining highly inflationary status in Argentina. This blended index is expected to reach cumulative three-year inflation in excess of 100 percent in 2018. As such, the Company will transition to highly inflationary status as of July 1, 2018. Gains and losses resulting from the translation of monetary assets in the financial statements of subsidiaries operating in highly inflationary economies are recorded in earnings. As of the June 30, 2018, the Company had approximately $0.6 million of net monetary assets in Argentina, which are of a nature that will generate income or expense for the change in value associated with exchange rate fluctuations versus the U.S. dollar. |
Shipping and Handling Costs
Shipping and Handling Costs | 6 Months Ended |
Jun. 30, 2018 | |
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 were $35.8 million and $35.7 million for the second quarters of 2018 and 2017 , respectively, and $71.3 million and $70.5 million for the respective year-to-date periods. |
Promotional Costs
Promotional Costs | 6 Months Ended |
Jun. 30, 2018 | |
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 $82.7 million and $91.7 million for the second quarters of 2018 and 2017 , respectively, and $171.1 million and $187.6 million for the respective year-to-date periods. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories (In millions) June 30, December 30, Finished goods $ 217.0 $ 203.5 Work in process 31.5 26.0 Raw materials and supplies 33.1 32.7 Total inventories $ 281.6 $ 262.2 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
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 26 weeks ended (In millions, except per share amounts) June 30, July 1, June 30, July 1, Net income (loss) $ 63.8 $ (17.7 ) $ 99.5 $ 29.7 Weighted average shares of common stock outstanding 50.5 50.8 50.8 50.7 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.2 — 0.2 0.5 Weighted average common and common equivalent shares outstanding 50.7 50.8 51.0 51.2 Basic earnings (loss) per share $ 1.26 $ (0.35 ) $ 1.96 $ 0.59 Diluted earnings (loss) per share $ 1.26 $ (0.35 ) $ 1.95 $ 0.58 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 3.2 2.9 2.6 1.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
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 30, 2017 $ (501.9 ) $ 1.6 $ (29.1 ) $ (529.4 ) Other comprehensive income (loss) before reclassifications (45.0 ) 3.1 0.7 (41.2 ) Amounts reclassified from accumulated other comprehensive loss — (1.3 ) 0.1 (1.2 ) Net current-period other comprehensive income (loss) (45.0 ) 1.8 0.8 (42.4 ) Balance at June 30, 2018 $ (546.9 ) $ 3.4 $ (28.3 ) $ (571.8 ) (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 52.2 (4.7 ) (4.0 ) 43.5 Amounts reclassified from accumulated other comprehensive loss — (1.2 ) 0.7 (0.5 ) Net current-period other comprehensive income (loss) 52.2 (5.9 ) (3.3 ) 43.0 Balance at July 1, 2017 $ (492.1 ) $ (1.0 ) $ (35.4 ) $ (528.5 ) Pretax amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of net gains of $1.9 million and $1.7 million for the year-to-date periods ended June 30, 2018 and July 1, 2017 , respectively. Associated with these items were tax provisions of $0.6 million and $0.5 million , respectively. See Note 10 for further discussion of derivatives. For the year-to-date periods ended June 30, 2018 and July 1, 2017 , pretax amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of prior service benefits of $0.7 million and $0.6 million , actuarial losses of $0.4 million and $0.7 million , and pension settlement costs of $0.4 million and $0.8 million , respectively. Associated with these items was a tax benefit of $0.2 million in 2017 and none in 2018 . See Note 12 to the Consolidated Financial Statements for further discussion of pension and other post-retirement benefit costs. |
Re-engineering and Impairment C
Re-engineering and Impairment Costs | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
Re-engineering and Impairment Costs | Re-engineering and Impairment Costs The Company recorded $2.1 million and $32.6 million in re-engineering charges during the second quarters of 2018 and 2017 , respectively, and $9.7 million and $34.9 million for the respective year-to-date periods. In 2018 and 2017, the re-engineering and impairment charges incurred were primarily related to severance costs and restructuring actions taken in connection with the Company's plans, through 2018 or 2019, to rationalize its supply chain and to adjust the cost base of several marketing units. The restructuring charges also relate to the Company's decision to wind-down the Beauticontrol reporting unit in 2017. Year-to-date in 2018, the Company recorded $0.7 million in cost of sales for inventory obsolescence in connection with the Company's re-engineering program. The total cost of the restructuring actions is estimated to be $90 million to $100 million from the second quarter of 2017 forward. This excludes the benefit of selling fixed assets that will become excess in light of the re-engineering actions. The Company expects about 90 percent of second quarter 2017 and forward re-engineering costs to require cash outflows, and for these to be funded with cash flow from operations as well as asset sales as a result of the restructuring actions, notwithstanding the timing during each fiscal year in which the Company generates the majority of its cash. Of the total costs, the Company estimates that about 65 percent relates to severance and benefits related to headcount reductions, while the balance is predominantly related to costs to exit leases and other contracts, mainly related to wind-down of Beauticontrol and closure of the French manufacturing facility, as well as write-offs of excess assets for which there are not expected to be disposal proceeds. The re-engineering charges by segment during the second quarter and year-to-date period ended June 30, 2018 were as follows: Second Quarte r Year-to-Date (In millions) 2018 2018 Europe $ 0.8 $ 6.5 Asia Pacific — 0.8 North America 1.3 2.0 South America — 0.4 Total re-engineering charges $ 2.1 $ 9.7 The balances included in accrued liabilities related to re-engineering and impairment charges as of June 30, 2018 and December 30, 2017 were as follows: (In millions) June 30, December 30, Beginning of the year balance $ 45.4 $ 1.6 Provision 9.7 63.7 Non-cash charges (0.4 ) (0.4 ) Cash expenditures: Severance (14.7 ) (12.7 ) Other (8.6 ) (6.8 ) Currency translation adjustment (0.6 ) — End of period balance $ 30.8 $ 45.4 The accrual balance as of June 30, 2018 , related primarily to severance payments to be made through the second quarter of 2019. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
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 geography, consistency of economic substance, products, production process, class of customers and distribution method. Effective in the fourth quarter of 2017, in connection with the closure of its Beauticontrol business, the Company changed its segment reporting. The change was to combine its previous Beauty North America and Tupperware North America segments into one North America segment. Comparable information from all historical periods presented has been revised to conform with the new presentation. The Company's reportable segments primarily sell design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware® brand. Europe 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. North America also includes the Fuller Mexico beauty and personal care products business and sells products under the Fuller Cosmetics® brand in that unit and in Central America. South America also sells beauty products under the Fuller®, Nutrimetics® and Nuvo® brands. Worldwide sales of beauty and personal care products totaled $75.5 million and $86.7 million in the second quarters of 2018 and 2017 , respectively, and $148.3 million and $166.3 million in the respective year-to-date periods. 13 weeks ended 26 weeks ended (In millions) June 30, July 1, June 30, July 1, Net sales: Europe $ 132.7 $ 135.4 $ 276.6 $ 284.9 Asia Pacific 180.0 183.5 352.2 360.8 North America 136.8 141.8 271.8 273.1 South America 85.9 112.2 177.4 208.9 Total net sales $ 535.4 $ 572.9 $ 1,078.0 $ 1,127.7 Segment profit: Europe $ 15.1 $ 11.9 $ 27.5 $ 31.8 Asia Pacific 45.4 46.2 83.3 86.2 North America 22.7 20.7 41.7 36.5 South America 17.8 27.9 35.1 46.1 Total segment profit $ 101.0 $ 106.7 $ 187.6 $ 200.6 Unallocated expenses (11.5 ) (16.1 ) (23.9 ) (32.5 ) Re-engineering and impairment charges (a) (2.1 ) (32.6 ) (9.7 ) (34.9 ) Impairment of goodwill — (62.9 ) — (62.9 ) Gains on disposal of assets 12.4 3.1 14.6 3.2 Interest expense, net (11.2 ) (10.9 ) (21.6 ) (22.0 ) Income (loss) before taxes $ 88.6 $ (12.7 ) $ 147.0 $ 51.5 (In millions) June 30, December 30, Identifiable assets: Europe $ 312.8 $ 308.5 Asia Pacific 294.4 297.2 North America 282.8 266.3 South America 139.9 138.6 Corporate 308.2 377.4 Total identifiable assets $ 1,338.1 $ 1,388.0 _________________________ (a) See Note 7 to the Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Obligations (In millions) June 30, December 30, 2017 Fixed rate senior notes due 2021 $ 599.6 $ 599.5 Five year Revolving Credit Agreement (a) 256.2 131.0 Belgium facility capital lease 6.0 7.5 Other — 0.1 Total debt obligations $ 861.8 $ 738.1 ____________________ (a) $94.5 million and $96.1 million denominated in euros as of June 30, 2018 and December 30, 2017 , respectively. Credit Agreement As of June 30, 2018 , the Company had a weighted average interest rate on outstanding LIBOR -based borrowings of 2.8 percent under its multicurrency Amended and Restated Credit Agreement (“Credit Agreement”) that has a final maturity date of June 9, 2020. At June 30, 2018 , the Company had $426.0 million of unused lines of credit, including $342.4 million under the committed, secured Credit Agreement, and $83.6 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 June 30, 2018 , and currently, the Company had considerable cushion under its financial covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
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 $4.7 million and $5.3 million in the second quarters of 2018 and 2017 , respectively, and $10.7 million and $10.2 million for the respective year-to-date periods. The Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as cash flow hedges. At initiation, the Company's cash flow hedge contracts are generally for periods ranging from one to fifteen months . The effective portion of the gain or loss on the hedging instrument is recorded in other comprehensive income and is reclassified into earnings as the transactions being hedged are recorded. As such, the balance at the end of the current reporting period in other comprehensive income, related to cash flow hedges, will generally be reclassified into earnings within the next twelve months . The associated asset or liability on the open hedges is recorded in other current assets or accrued liabilities, as applicable. In assessing hedge effectiveness, the Company excludes forward points, which are included as a component of interest expense. The Company also uses financial instruments, such as forward contracts and certain euro denominated borrowings under its 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 net gains of $30.9 million and $14.0 million associated with these hedges in the second quarter and year-to-date period of 2018 and losses of $10.8 million and $32.1 million for the respective periods of 2017 . Due to the permanent nature of the investments, the Company does not anticipate reclassifying any portion of these amounts to the income statement in the next twelve months. In assessing hedge effectiveness, the Company excludes forward points, which are included as a component of interest expense. While the forward contracts used for net equity and fair value hedges of non-permanent intercompany balances mitigate its exposure to foreign exchange gains or losses, they result in an impact to operating cash flows as they are settled, whereas the hedged items do not generate offsetting cash flows. The net cash flow impact of these currency hedges for the year-to-date periods ended June 30, 2018 and July 1, 2017 were outflows of $7.8 million and $1.6 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 June 30, 2018 and December 30, 2017 , the notional amounts of outstanding forward contracts to purchase currencies were $86.0 million and $111.1 million , respectively, and the notional amounts of outstanding forward contracts to sell currencies were $74.2 million and $112.1 million , respectively. As of June 30, 2018 , the notional values of the largest positions outstanding were to purchase $69.3 million of U.S. dollars and to sell $13.7 million of Mexican pesos. 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 June 30, 2018 and December 30, 2017 . 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 Jun 30, Dec 30, Balance sheet location Jun 30, Dec 30, Foreign exchange contracts Non-trade amounts receivable $ 32.5 $ 32.2 Accrued liabilities $ 18.6 $ 29.6 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the second quarters of 2018 and 2017 : 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 2018 2017 2018 2017 Foreign exchange contracts Other expense $ (29.9 ) $ 10.0 Other expense $ 28.9 $ (10.0 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the second quarters of 2018 and 2017 : 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 2018 2017 2018 2017 2018 2017 Foreign exchange contracts $ 4.9 $ (1.6 ) Cost of products sold $ 1.8 $ 0.1 Interest expense $ (0.7 ) $ (1.1 ) Net equity hedging relationships Foreign exchange contracts 33.8 (13.2 ) Interest expense (5.4 ) (6.3 ) Euro denominated debt 5.7 (3.6 ) The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the year-to-date periods ended June 30, 2018 and July 1, 2017 : 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 2018 2017 2018 2017 Foreign exchange contracts Other expense $ (14.8 ) $ 38.2 Other expense $ 14.2 $ (38.1 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended June 30, 2018 and July 1, 2017 : 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 2018 2017 2018 2017 2018 2017 Foreign exchange contracts $ 4.1 $ (6.0 ) Cost of products sold $ 1.9 $ 1.7 Interest expense $ (1.8 ) $ (2.4 ) Net equity hedging relationships Foreign exchange contracts 16.2 (43.2 ) Interest expense (11.4 ) (12.2 ) Euro denominated debt 1.6 (6.9 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 30, 2017 . The Company estimates that, based on current market conditions, the value of its 4.75% , 2021 senior notes was $617.3 million at June 30, 2018 , compared with the carrying value of $599.6 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 | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Components of net periodic benefit cost for the second quarters and year-to-date periods ended June 30, 2018 and July 1, 2017 were as follows: Second Quarte r Year-to-Date Pension benefits Post-retirement benefits Pension benefits Post-retirement benefits (In millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2.4 $ 2.7 $ 0.1 $ 0.1 $ 5.0 $ 5.3 $ 0.1 $ 0.1 Interest cost 1.4 1.4 0.1 0.1 2.8 2.8 0.2 0.3 Expected return on plan assets (1.3 ) (1.2 ) — — (2.4 ) (2.4 ) — — Settlement/curtailment 0.3 — — — 0.4 0.8 — — Net amortization 0.3 0.4 (0.3 ) (0.3 ) 0.3 0.7 (0.6 ) (0.6 ) Net periodic benefit cost $ 3.1 $ 3.3 $ (0.1 ) $ (0.1 ) $ 6.1 $ 7.2 $ (0.3 ) $ (0.2 ) During the year-to-date periods ended June 30, 2018 and July 1, 2017 , approximately $0.1 million and $0.9 million of pretax expense, respectively, 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. The Company included $0.7 million and $1.6 million related to the components of net periodic benefit cost, excluding service cost, in other expense in the year-to-date periods ended June 30, 2018 and July 1, 2017 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the second quarter and year-to-date periods of 2018 were 28.1 percent and 32.3 percent compared with negative 38.9 percent and positive 42.3 percent for the comparable 2017 periods. In 2017, the Company incurred impairment and other charges resulting in a loss for the second quarter and a related negative tax rate. The tax rate for the first quarter of 2018 was 38.8 percent . The decrease in the rate from the first quarter to the second quarter of 2018, was the result of a change in the mix of income, tax audit settlements, and certain actions taken by the Company to partially reduce the negative impact of the international provisions of the newly enacted U.S. Tax Cuts and Jobs Act of 2017 (Tax Act), particularly the Global Intangible Low-Taxed Income (GILTI) provisions. The Company continues to evaluate the impact of the GILTI provisions under the Tax Act which are complex and subject to continuing regulatory interpretation by the U.S. Internal Revenue Service (“IRS”). The Company is required to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company’s accounting policy election with respect to the new GILTI Tax rules will depend, in part, on further guidance issued by the IRS, and on analyzing its global income to determine whether it can reasonably estimate the tax impact. While the Company has included an estimate of GILTI in its estimated effective tax rate for 2018, it has not completed its analysis and is not yet able to determine which method to elect. Adjustments related to the amount of GILTI Tax recorded in its Consolidated Financial Statements may be required based on the outcome of this election. As of June 30, 2018 and December 30, 2017 , the Company's accrual for uncertain tax positions was $16.7 million and $19.8 million , respectively. The decrease in the accrual for uncertain tax positions was primarily due to audit closures in various jurisdictions. The Company estimates that as of June 30, 2018 , approximately $15.9 million of the unrecognized tax benefits, if recognized, will impact the effective tax rate. Interest and penalties related to uncertain tax positions in the Company's global operations are recorded as a component of the provision for income taxes. Accrued interest and penalties were $6.3 million and $7.3 million as of the periods ended June 30, 2018 and December 30, 2017 , 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 $0.5 million . For the remaining balance as of June 30, 2018 , the Company is not able to reliably estimate the timing or ultimate settlement amount. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment or reversal 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 year-to-date periods ended June 30, 2018 and July 1, 2017 , 22,494 and 9,256 shares, respectively, were retained to fund withholding taxes, with values totaling $1.1 million and $0.6 million , respectively, which were included as stock repurchases in the Condensed Consolidated Statements of Cash Flows. Restricted cash is recorded in either prepaid and other current assets or in long-term other assets. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Stock option activity for 2018 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 30, 2017 3,045,316 $ 58.96 Granted 69,736 47.05 Expired / Forfeited (6,594 ) 58.12 Exercised (19,047 ) 25.46 Outstanding at June 30, 2018 3,089,411 $ 58.90 $ — Exercisable at June 30, 2018 1,784,764 $ 59.92 $ — The intrinsic value of options exercised totaled $3.0 million and $4.0 million in the second quarter and year-to-date periods of 2017 , respectively, and was $0.4 million for both periods in 2018 . The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2018 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 30, 2017 635,507 $ 58.59 Time-vested shares granted 51,862 44.36 Market-vested shares granted 24,571 63.48 Performance shares granted 92,621 50.51 Performance share adjustments (68,060 ) 54.46 Vested (95,406 ) 70.97 Forfeited (31,118 ) 59.67 June 30, 2018 609,977 $ 54.82 Compensation expense related to the Company's stock-based compensation for the second quarter and year-to-date periods ended June 30, 2018 and July 1, 2017 were as follows: Second Quarter Year-to-Date (In millions) 2018 2017 2018 2017 Stock options $ 0.9 $ 0.8 $ 1.7 $ 1.5 Time, performance and market vested share awards 2.8 3.6 5.3 7.7 As of June 30, 2018 , total unrecognized stock-based compensation expense related to all stock based awards was $23.5 million , which is expected to be recognized over a weighted average period of 1.8 years . |
Allowance for Long-Term Receiva
Allowance for Long-Term Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance For Long-Term Receivables | Allowance for Long-Term Receivables As of June 30, 2018 , $16.0 million of long-term receivables from both active and inactive customers were considered past due, the majority of which were reserved through the Company's allowance for uncollectible accounts. The balance of the allowance for long-term receivables as of June 30, 2018 was as follows: (In millions) Balance at December 30, 2017 $ 16.5 Provision and reclassifications (0.8 ) Currency translation adjustment (0.5 ) Balance at June 30, 2018 $ 15.2 |
Guarantor Information
Guarantor Information | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 30, 2017 and for the quarter and year-to-date periods ended June 30, 2018 and July 1, 2017 for the Company (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 June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 536.7 $ (1.3 ) $ 535.4 Other revenue — 19.6 1.9 (21.5 ) — Cost of products sold — 2.1 194.6 (23.2 ) 173.5 Gross margin — 17.5 344.0 0.4 361.9 Delivery, sales and administrative expense 3.3 23.1 246.0 0.4 272.8 Re-engineering and impairment charges — 0.7 1.4 — 2.1 Gains on disposal of assets — — 12.4 — 12.4 Operating income (loss) (3.3 ) (6.3 ) 109.0 — 99.4 Interest income 5.1 0.6 11.1 (16.1 ) 0.7 Interest expense 10.3 15.8 1.9 (16.1 ) 11.9 Income from equity investments in subsidiaries 70.3 71.2 — (141.5 ) — Other expense (income) (0.2 ) (14.5 ) 14.3 — (0.4 ) Income before income taxes 62.0 64.2 103.9 (141.5 ) 88.6 Provision (benefit) for income taxes (1.8 ) (2.5 ) 29.1 — 24.8 Net income $ 63.8 $ 66.7 $ 74.8 $ (141.5 ) $ 63.8 Comprehensive income (loss) $ 13.7 $ 14.0 $ (1.1 ) $ (12.9 ) $ 13.7 Consolidating Statement of Income 13 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 574.0 $ (1.1 ) $ 572.9 Other revenue — 32.7 6.4 (39.1 ) — Cost of products sold — 6.4 214.1 (37.9 ) 182.6 Gross margin — 26.3 366.3 (2.3 ) 390.3 Delivery, sales and administrative expense 4.5 23.2 273.6 (2.3 ) 299.0 Re-engineering and impairment charges — 0.3 32.3 — 32.6 Impairment of goodwill and intangible assets — — 62.9 — 62.9 Gains on disposal of assets — — 3.1 — 3.1 Operating income (loss) (4.5 ) 2.8 0.6 — (1.1 ) Interest income 5.1 0.3 9.5 (14.2 ) 0.7 Interest expense 9.5 14.6 1.7 (14.2 ) 11.6 Income (loss) from equity investments in subsidiaries (12.0 ) 1.9 — 10.1 — Other expense (income) (1.0 ) 9.6 (7.9 ) — 0.7 Income (loss) before income taxes (19.9 ) (19.2 ) 16.3 10.1 (12.7 ) Provision (benefit) for income taxes (2.2 ) (4.6 ) 11.8 — 5.0 Net income (loss) $ (17.7 ) $ (14.6 ) $ 4.5 $ 10.1 $ (17.7 ) Comprehensive income (loss) $ (10.9 ) $ (4.8 ) $ 21.9 $ (17.1 ) $ (10.9 ) Consolidating Statement of Income 26 weeks ended June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,079.5 $ (1.5 ) $ 1,078.0 Other revenue — 41.3 12.0 (53.3 ) — Cost of products sold — 12.1 393.3 (52.9 ) 352.5 Gross margin — 29.2 698.2 (1.9 ) 725.5 Delivery, sales and administrative expense 6.3 45.4 512.2 (1.9 ) 562.0 Re-engineering and impairment charges — 1.0 8.7 — 9.7 Gains on disposal of assets — — 14.6 — 14.6 Operating income (loss) (6.3 ) (17.2 ) 191.9 — 168.4 Interest income 10.2 1.1 21.9 (31.8 ) 1.4 Interest expense 19.5 31.3 4.0 (31.8 ) 23.0 Income from equity investments in subsidiaries 111.1 141.7 — (252.8 ) — Other expense (income) (0.8 ) (2.5 ) 3.1 — (0.2 ) Income before income taxes 96.3 96.8 206.7 (252.8 ) 147.0 Provision (benefit) for income taxes (3.2 ) (8.8 ) 59.5 — 47.5 Net income $ 99.5 $ 105.6 $ 147.2 $ (252.8 ) $ 99.5 Comprehensive income $ 57.1 $ 65.9 $ 97.2 $ (163.1 ) $ 57.1 Consolidating Statement of Income 26 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,130.7 $ (3.0 ) $ 1,127.7 Other revenue — 58.2 15.0 (73.2 ) — Cost of products sold — 15.0 416.7 (71.4 ) 360.3 Gross margin — 43.2 729.0 (4.8 ) 767.4 Delivery, sales and administrative expense 8.4 46.4 546.9 (4.8 ) 596.9 Re-engineering and impairment charges — 0.7 34.2 — 34.9 Impairment of goodwill and intangible assets — — 62.9 — 62.9 Gains on disposal of assets — — 3.2 — 3.2 Operating income (loss) (8.4 ) (3.9 ) 88.2 — 75.9 Interest income 10.2 1.0 17.8 (27.8 ) 1.2 Interest expense 18.1 28.9 4.0 (27.8 ) 23.2 Income from equity investments in subsidiaries 39.9 80.6 — (120.5 ) — Other expense (income) (1.0 ) 25.0 (21.6 ) — 2.4 Income before income taxes 24.6 23.8 123.6 (120.5 ) 51.5 Provision (benefit) for income taxes (5.1 ) (12.3 ) 39.2 — 21.8 Net income $ 29.7 $ 36.1 $ 84.4 $ (120.5 ) $ 29.7 Comprehensive income $ 72.7 $ 84.6 $ 154.7 $ (239.3 ) $ 72.7 Condensed Consolidating Balance Sheet June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.4 $ 97.7 $ (0.1 ) $ 98.0 Accounts receivable, net — — 163.3 — 163.3 Inventories — — 281.5 0.1 281.6 Non-trade amounts receivable, net — 26.8 36.6 — 63.4 Intercompany receivables 87.7 1,161.5 280.7 (1,529.9 ) — Prepaid expenses and other current assets 1.7 6.4 64.6 (47.9 ) 24.8 Total current assets 89.4 1,195.1 924.4 (1,577.8 ) 631.1 Deferred income tax benefits, net 33.4 72.5 136.9 (6.5 ) 236.3 Property, plant and equipment, net — 62.8 208.7 — 271.5 Long-term receivables, net — — 18.4 0.1 18.5 Trademarks and tradenames, net — — 57.2 — 57.2 Goodwill — 2.9 74.0 — 76.9 Investments in subsidiaries 1,245.3 1,333.9 — (2,579.2 ) — Intercompany notes receivable 505.2 96.8 920.4 (1,522.4 ) — Other assets, net 0.5 0.6 73.8 (28.3 ) 46.6 Total assets $ 1,873.8 $ 2,764.6 $ 2,413.8 $ (5,714.1 ) $ 1,338.1 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.1 $ 86.9 $ 0.1 $ 90.1 Short-term borrowings and current portion of long-term debt and capital lease obligations 256.2 — 1.6 — 257.8 Intercompany payables 1,084.8 275.7 169.4 (1,529.9 ) — Accrued liabilities 51.7 57.4 286.2 (47.9 ) 347.4 Total current liabilities 1,392.7 336.2 544.1 (1,577.7 ) 695.3 Long-term debt and capital lease obligations 599.6 — 4.4 — 604.0 Intercompany notes payable 47.7 1,170.4 304.3 (1,522.4 ) — Other liabilities 9.3 73.8 166.0 (34.8 ) 214.3 Shareholders' equity (deficit) (175.5 ) 1,184.2 1,395.0 (2,579.2 ) (175.5 ) Total liabilities and shareholders' equity $ 1,873.8 $ 2,764.6 $ 2,413.8 $ (5,714.1 ) $ 1,338.1 Condensed Consolidating Balance Sheet December 30, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.1 $ 144.0 $ — $ 144.1 Accounts receivable, net — — 144.4 — 144.4 Inventories — — 262.2 — 262.2 Non-trade amounts receivable, net — 179.2 79.4 (200.0 ) 58.6 Intercompany receivables 300.8 1,101.9 255.4 (1,658.1 ) — Prepaid expenses and other current assets 1.1 2.1 82.2 (64.2 ) 21.2 Total current assets 301.9 1,283.3 967.6 (1,922.3 ) 630.5 Deferred income tax benefits, net 33.4 72.6 172.0 — 278.0 Property, plant and equipment, net — 54.9 223.3 — 278.2 Long-term receivables, net — 0.2 19.1 — 19.3 Trademarks and tradenames, net — — 62.5 — 62.5 Goodwill — 2.9 76.0 — 78.9 Investments in subsidiaries 1,174.9 1,371.0 — (2,545.9 ) — Intercompany notes receivable 498.4 100.0 968.9 (1,567.3 ) — Other assets, net 0.6 0.7 69.8 (30.5 ) 40.6 Total assets $ 2,009.2 $ 2,885.6 $ 2,559.2 $ (6,066.0 ) $ 1,388.0 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.1 $ 121.3 $ — $ 124.4 Short-term borrowings and current portion of long-term debt and capital lease obligations 131.1 — 1.9 — 133.0 Intercompany payables 1,013.4 436.1 208.6 (1,658.1 ) — Accrued liabilities 287.0 80.4 298.2 (264.2 ) 401.4 Total current liabilities 1,431.5 519.6 630.0 (1,922.3 ) 658.8 Long-term debt and capital lease obligations 599.5 — 5.6 — 605.1 Intercompany notes payable 88.5 1,172.0 306.8 (1,567.3 ) — Other liabilities 9.1 75.6 189.3 (30.5 ) 243.5 Shareholders' equity (deficit) (119.4 ) 1,118.4 1,427.5 (2,545.9 ) (119.4 ) Total liabilities and shareholders' equity $ 2,009.2 $ 2,885.6 $ 2,559.2 $ (6,066.0 ) $ 1,388.0 Condensed Consolidating Statement of Cash Flows 26 weeks ended June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (29.5 ) $ 69.2 $ 161.1 $ (239.6 ) $ (38.8 ) Investing Activities: Capital expenditures — (14.6 ) (23.0 ) — (37.6 ) Proceeds from disposal of property, plant and equipment — — 33.1 — 33.1 Net intercompany loans (47.6 ) (64.1 ) (8.7 ) 120.4 — Net cash provided by (used in) investing activities (47.6 ) (78.7 ) 1.4 120.4 (4.5 ) Financing Activities: Dividend payments to shareholders (70.2 ) — — — (70.2 ) Dividend payments to parent — — (236.0 ) 236.0 — Proceeds from exercise of stock options 0.3 — — — 0.3 Repurchase of common stock (51.1 ) — — — (51.1 ) Repayment of capital lease obligations — — (1.3 ) — (1.3 ) Net change in short-term debt 126.7 — 0.9 — 127.6 Net intercompany borrowings 71.4 9.8 35.6 (116.8 ) — Net cash provided by (used in) financing activities 77.1 9.8 (200.8 ) 119.2 5.3 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (7.1 ) — (7.1 ) Net change in cash, cash equivalents and restricted cash — 0.3 (45.4 ) — (45.1 ) Cash, cash equivalents and restricted cash at beginning of year — 0.1 147.1 — 147.2 Cash, cash equivalents and restricted cash at end of period $ — $ 0.4 $ 101.7 $ — $ 102.1 Condensed Consolidating Statement of Cash Flows 26 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (18.8 ) $ (29.5 ) $ 80.3 $ (17.8 ) $ 14.2 Investing Activities: Capital expenditures — (8.0 ) (24.0 ) — (32.0 ) Proceeds from disposal of property, plant and equipment — — 5.3 — 5.3 Net intercompany loans 28.5 1.2 (38.8 ) 9.1 — Net cash provided by (used in) investing activities 28.5 (6.8 ) (57.5 ) 9.1 (26.7 ) Financing Activities: Dividend payments to shareholders (69.3 ) — — — (69.3 ) Dividend payments to parent — — (7.7 ) 7.7 — Proceeds from exercise of stock options 9.9 — — — 9.9 Repurchase of common stock (0.6 ) — — — (0.6 ) Repayment of capital lease obligations — — (1.2 ) — (1.2 ) Net change in short-term debt 60.1 — — — 60.1 Net intercompany borrowings (9.8 ) 35.9 (27.1 ) 1.0 — Net cash provided by (used in) financing activities (9.7 ) 35.9 (36.0 ) 8.7 (1.1 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 5.5 — 5.5 Net change in cash, cash equivalents and restricted cash — (0.4 ) (7.7 ) — (8.1 ) Cash, cash equivalents and restricted cash at beginning of year — 0.5 95.6 (0.1 ) 96.0 Cash, cash equivalents and restricted cash at end of period $ — $ 0.1 $ 87.9 $ (0.1 ) $ 87.9 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2018, the FASB issued an amendment to existing guidance on reclassification of certain tax effects from Accumulated Other Comprehensive Income. Under the amendment, the stranded tax effects resulting from the Tax Act are to be reclassified from accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, 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 August 2017, the FASB issued an amendment to existing guidance on hedge accounting. Under the amendment, the impact of both the effective and ineffective components of a hedging relationship is required to be recorded in the same income statement line. After initial qualification, a qualitative assessment of effectiveness is permitted instead of a quantitative test for certain hedges. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company estimates that based on how it has operated historically between $10 million and $15 million in annual interest expense would have been reclassified into other line items of the Consolidated Statement of Income if the provisions of this amendment had been followed in prior years. 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 in the process of gathering information to enable adoption, and identifying changes to its business processes and controls to support required reporting. As part of this, the Company is evaluating the specific impact of the adoption of this amendment on its Consolidated Financial Statements, though it does expect a significant increase in both assets and liabilities upon adoption due to recognition of right of use assets and related liabilities. Note 16 to Consolidated Financial Statements included in the Company's 2017 Annual Report on Form 10-K provides further details regarding the Company's undiscounted minimum rental commitments under non-cancelable operating leases. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 financial statements included in the Company's Annual Report on Form 10-K for the year ended December 30, 2017 . Certain prior year amounts have been reclassified to conform with current year presentation. This includes changes to the presentation of pension costs in other expense in the Company's Consolidated Statement of Income under ASU 2017-07, Improving the Presentation of Net Periodic Pension Costs and Net Periodic Post-Retirement Benefit Costs . For applying the retrospective presentation requirements under this standard, the Company used the practical expedient that allows for the use of amounts disclosed in its retirement benefit plans note for the year ended December 30, 2017 as the estimation basis. These condensed consolidated financial statements are unaudited and have been prepared following the rules and regulations of the United States Securities and Exchange Commission and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of the results for the interim periods. Certain information and note disclosures normally included in the balance sheet, statements of income, comprehensive income and cash flows prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. |
Revenue Recognition | Revenue Recognition: On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. There was no impact on beginning retained earnings from the adoption as of December 31, 2017. Results for reporting periods beginning December 31, 2017 are presented under the new guidance, while prior period amounts continue to be reported in accordance with previous guidance without revision. Under the new guidance, the contract is defined as the order received from the Company's customer who, in most cases, is one of the Company's independent distributors or a member of its independent sales force. Revenue is recognized when control of the product passes to the customer, which is upon shipment, and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. Generally, payment is either received in advance or in a relatively short period of time following shipment. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations, related to timing of product shipment, that will be satisfied in different accounting periods. When that is the case, revenue is deferred until each performance obligation is met. The impact in the second quarter of 2018 from deferred revenue was not material. Compared with historical accounting under the previous guidance, the Company estimates revenue for the year-to-date period of 2018 would have been $6 million lower, with no material impact in the second quarter. This primarily reflects, under previous guidance in 2017, certain operating units recording revenue upon delivery that are now recording revenue upon shipment under the new guidance. The impact to the Company's consolidated balance sheet as a result of adopting the new guidance was not significant. The Company primarily disaggregates revenue based on geography. Refer to disaggregation information included in Note 8 to the Consolidated Financial Statements. |
Foreign Currency Translation | Foreign Currency Translation: Inflation in Argentina has been at relatively high levels over the past several years. The Company uses a blended index of the Consumer Price Index and National Consumer Price Index for determining highly inflationary status in Argentina. This blended index is expected to reach cumulative three-year inflation in excess of 100 percent in 2018. As such, the Company will transition to highly inflationary status as of July 1, 2018. Gains and losses resulting from the translation of monetary assets in the financial statements of subsidiaries operating in highly inflationary economies are recorded in earnings. As of the June 30, 2018, the Company had approximately $0.6 million of net monetary assets in Argentina, which are of a nature that will generate income or expense for the change in value associated with exchange rate fluctuations versus the U.S. dollar. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories (In millions) June 30, December 30, Finished goods $ 217.0 $ 203.5 Work in process 31.5 26.0 Raw materials and supplies 33.1 32.7 Total inventories $ 281.6 $ 262.2 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Elements of Earnings per Share Computations | The elements of the earnings per share computations were as follows: 13 weeks ended 26 weeks ended (In millions, except per share amounts) June 30, July 1, June 30, July 1, Net income (loss) $ 63.8 $ (17.7 ) $ 99.5 $ 29.7 Weighted average shares of common stock outstanding 50.5 50.8 50.8 50.7 Common equivalent shares: Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.2 — 0.2 0.5 Weighted average common and common equivalent shares outstanding 50.7 50.8 51.0 51.2 Basic earnings (loss) per share $ 1.26 $ (0.35 ) $ 1.96 $ 0.59 Diluted earnings (loss) per share $ 1.26 $ (0.35 ) $ 1.95 $ 0.58 Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 3.2 2.9 2.6 1.0 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 30, 2017 $ (501.9 ) $ 1.6 $ (29.1 ) $ (529.4 ) Other comprehensive income (loss) before reclassifications (45.0 ) 3.1 0.7 (41.2 ) Amounts reclassified from accumulated other comprehensive loss — (1.3 ) 0.1 (1.2 ) Net current-period other comprehensive income (loss) (45.0 ) 1.8 0.8 (42.4 ) Balance at June 30, 2018 $ (546.9 ) $ 3.4 $ (28.3 ) $ (571.8 ) (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 52.2 (4.7 ) (4.0 ) 43.5 Amounts reclassified from accumulated other comprehensive loss — (1.2 ) 0.7 (0.5 ) Net current-period other comprehensive income (loss) 52.2 (5.9 ) (3.3 ) 43.0 Balance at July 1, 2017 $ (492.1 ) $ (1.0 ) $ (35.4 ) $ (528.5 ) |
Re-engineering and Impairment30
Re-engineering and Impairment Costs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | The re-engineering charges by segment during the second quarter and year-to-date period ended June 30, 2018 were as follows: Second Quarte r Year-to-Date (In millions) 2018 2018 Europe $ 0.8 $ 6.5 Asia Pacific — 0.8 North America 1.3 2.0 South America — 0.4 Total re-engineering charges $ 2.1 $ 9.7 |
Accrued Liabilities, Re-engineering and Impairment Charges Rollforward | The balances included in accrued liabilities related to re-engineering and impairment charges as of June 30, 2018 and December 30, 2017 were as follows: (In millions) June 30, December 30, Beginning of the year balance $ 45.4 $ 1.6 Provision 9.7 63.7 Non-cash charges (0.4 ) (0.4 ) Cash expenditures: Severance (14.7 ) (12.7 ) Other (8.6 ) (6.8 ) Currency translation adjustment (0.6 ) — End of period balance $ 30.8 $ 45.4 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 13 weeks ended 26 weeks ended (In millions) June 30, July 1, June 30, July 1, Net sales: Europe $ 132.7 $ 135.4 $ 276.6 $ 284.9 Asia Pacific 180.0 183.5 352.2 360.8 North America 136.8 141.8 271.8 273.1 South America 85.9 112.2 177.4 208.9 Total net sales $ 535.4 $ 572.9 $ 1,078.0 $ 1,127.7 Segment profit: Europe $ 15.1 $ 11.9 $ 27.5 $ 31.8 Asia Pacific 45.4 46.2 83.3 86.2 North America 22.7 20.7 41.7 36.5 South America 17.8 27.9 35.1 46.1 Total segment profit $ 101.0 $ 106.7 $ 187.6 $ 200.6 Unallocated expenses (11.5 ) (16.1 ) (23.9 ) (32.5 ) Re-engineering and impairment charges (a) (2.1 ) (32.6 ) (9.7 ) (34.9 ) Impairment of goodwill — (62.9 ) — (62.9 ) Gains on disposal of assets 12.4 3.1 14.6 3.2 Interest expense, net (11.2 ) (10.9 ) (21.6 ) (22.0 ) Income (loss) before taxes $ 88.6 $ (12.7 ) $ 147.0 $ 51.5 (In millions) June 30, December 30, Identifiable assets: Europe $ 312.8 $ 308.5 Asia Pacific 294.4 297.2 North America 282.8 266.3 South America 139.9 138.6 Corporate 308.2 377.4 Total identifiable assets $ 1,338.1 $ 1,388.0 _________________________ (a) See Note 7 to the Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt Obligations | (In millions) June 30, December 30, 2017 Fixed rate senior notes due 2021 $ 599.6 $ 599.5 Five year Revolving Credit Agreement (a) 256.2 131.0 Belgium facility capital lease 6.0 7.5 Other — 0.1 Total debt obligations $ 861.8 $ 738.1 ____________________ (a) $94.5 million and $96.1 million denominated in euros as of June 30, 2018 and December 30, 2017 , respectively. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 30, 2017 . 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 Jun 30, Dec 30, Balance sheet location Jun 30, Dec 30, Foreign exchange contracts Non-trade amounts receivable $ 32.5 $ 32.2 Accrued liabilities $ 18.6 $ 29.6 The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the second quarters of 2018 and 2017 : 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 2018 2017 2018 2017 Foreign exchange contracts Other expense $ (29.9 ) $ 10.0 Other expense $ 28.9 $ (10.0 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the second quarters of 2018 and 2017 : 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 2018 2017 2018 2017 2018 2017 Foreign exchange contracts $ 4.9 $ (1.6 ) Cost of products sold $ 1.8 $ 0.1 Interest expense $ (0.7 ) $ (1.1 ) Net equity hedging relationships Foreign exchange contracts 33.8 (13.2 ) Interest expense (5.4 ) (6.3 ) Euro denominated debt 5.7 (3.6 ) The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the year-to-date periods ended June 30, 2018 and July 1, 2017 : 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 2018 2017 2018 2017 Foreign exchange contracts Other expense $ (14.8 ) $ 38.2 Other expense $ 14.2 $ (38.1 ) The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended June 30, 2018 and July 1, 2017 : 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 2018 2017 2018 2017 2018 2017 Foreign exchange contracts $ 4.1 $ (6.0 ) Cost of products sold $ 1.9 $ 1.7 Interest expense $ (1.8 ) $ (2.4 ) Net equity hedging relationships Foreign exchange contracts 16.2 (43.2 ) Interest expense (11.4 ) (12.2 ) Euro denominated debt 1.6 (6.9 ) |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost for the second quarters and year-to-date periods ended June 30, 2018 and July 1, 2017 were as follows: Second Quarte r Year-to-Date Pension benefits Post-retirement benefits Pension benefits Post-retirement benefits (In millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2.4 $ 2.7 $ 0.1 $ 0.1 $ 5.0 $ 5.3 $ 0.1 $ 0.1 Interest cost 1.4 1.4 0.1 0.1 2.8 2.8 0.2 0.3 Expected return on plan assets (1.3 ) (1.2 ) — — (2.4 ) (2.4 ) — — Settlement/curtailment 0.3 — — — 0.4 0.8 — — Net amortization 0.3 0.4 (0.3 ) (0.3 ) 0.3 0.7 (0.6 ) (0.6 ) Net periodic benefit cost $ 3.1 $ 3.3 $ (0.1 ) $ (0.1 ) $ 6.1 $ 7.2 $ (0.3 ) $ (0.2 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Stock option activity for 2018 is summarized in the following table: Shares subject to option Weighted average exercise price per share Aggregate intrinsic value (in millions) Outstanding at December 30, 2017 3,045,316 $ 58.96 Granted 69,736 47.05 Expired / Forfeited (6,594 ) 58.12 Exercised (19,047 ) 25.46 Outstanding at June 30, 2018 3,089,411 $ 58.90 $ — Exercisable at June 30, 2018 1,784,764 $ 59.92 $ — |
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 2018 is summarized in the following table: Shares outstanding Weighted average grant date fair value December 30, 2017 635,507 $ 58.59 Time-vested shares granted 51,862 44.36 Market-vested shares granted 24,571 63.48 Performance shares granted 92,621 50.51 Performance share adjustments (68,060 ) 54.46 Vested (95,406 ) 70.97 Forfeited (31,118 ) 59.67 June 30, 2018 609,977 $ 54.82 |
Schedule of Compensation Expense | Compensation expense related to the Company's stock-based compensation for the second quarter and year-to-date periods ended June 30, 2018 and July 1, 2017 were as follows: Second Quarter Year-to-Date (In millions) 2018 2017 2018 2017 Stock options $ 0.9 $ 0.8 $ 1.7 $ 1.5 Time, performance and market vested share awards 2.8 3.6 5.3 7.7 |
Allowance for Long-Term Recei36
Allowance for Long-Term Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 was as follows: (In millions) Balance at December 30, 2017 $ 16.5 Provision and reclassifications (0.8 ) Currency translation adjustment (0.5 ) Balance at June 30, 2018 $ 15.2 |
Guarantor Information (Tables)
Guarantor Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantor Information [Abstract] | |
Consolidating Statement of Income | Consolidating Statement of Income 13 weeks ended June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 536.7 $ (1.3 ) $ 535.4 Other revenue — 19.6 1.9 (21.5 ) — Cost of products sold — 2.1 194.6 (23.2 ) 173.5 Gross margin — 17.5 344.0 0.4 361.9 Delivery, sales and administrative expense 3.3 23.1 246.0 0.4 272.8 Re-engineering and impairment charges — 0.7 1.4 — 2.1 Gains on disposal of assets — — 12.4 — 12.4 Operating income (loss) (3.3 ) (6.3 ) 109.0 — 99.4 Interest income 5.1 0.6 11.1 (16.1 ) 0.7 Interest expense 10.3 15.8 1.9 (16.1 ) 11.9 Income from equity investments in subsidiaries 70.3 71.2 — (141.5 ) — Other expense (income) (0.2 ) (14.5 ) 14.3 — (0.4 ) Income before income taxes 62.0 64.2 103.9 (141.5 ) 88.6 Provision (benefit) for income taxes (1.8 ) (2.5 ) 29.1 — 24.8 Net income $ 63.8 $ 66.7 $ 74.8 $ (141.5 ) $ 63.8 Comprehensive income (loss) $ 13.7 $ 14.0 $ (1.1 ) $ (12.9 ) $ 13.7 Consolidating Statement of Income 13 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 574.0 $ (1.1 ) $ 572.9 Other revenue — 32.7 6.4 (39.1 ) — Cost of products sold — 6.4 214.1 (37.9 ) 182.6 Gross margin — 26.3 366.3 (2.3 ) 390.3 Delivery, sales and administrative expense 4.5 23.2 273.6 (2.3 ) 299.0 Re-engineering and impairment charges — 0.3 32.3 — 32.6 Impairment of goodwill and intangible assets — — 62.9 — 62.9 Gains on disposal of assets — — 3.1 — 3.1 Operating income (loss) (4.5 ) 2.8 0.6 — (1.1 ) Interest income 5.1 0.3 9.5 (14.2 ) 0.7 Interest expense 9.5 14.6 1.7 (14.2 ) 11.6 Income (loss) from equity investments in subsidiaries (12.0 ) 1.9 — 10.1 — Other expense (income) (1.0 ) 9.6 (7.9 ) — 0.7 Income (loss) before income taxes (19.9 ) (19.2 ) 16.3 10.1 (12.7 ) Provision (benefit) for income taxes (2.2 ) (4.6 ) 11.8 — 5.0 Net income (loss) $ (17.7 ) $ (14.6 ) $ 4.5 $ 10.1 $ (17.7 ) Comprehensive income (loss) $ (10.9 ) $ (4.8 ) $ 21.9 $ (17.1 ) $ (10.9 ) Consolidating Statement of Income 26 weeks ended June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,079.5 $ (1.5 ) $ 1,078.0 Other revenue — 41.3 12.0 (53.3 ) — Cost of products sold — 12.1 393.3 (52.9 ) 352.5 Gross margin — 29.2 698.2 (1.9 ) 725.5 Delivery, sales and administrative expense 6.3 45.4 512.2 (1.9 ) 562.0 Re-engineering and impairment charges — 1.0 8.7 — 9.7 Gains on disposal of assets — — 14.6 — 14.6 Operating income (loss) (6.3 ) (17.2 ) 191.9 — 168.4 Interest income 10.2 1.1 21.9 (31.8 ) 1.4 Interest expense 19.5 31.3 4.0 (31.8 ) 23.0 Income from equity investments in subsidiaries 111.1 141.7 — (252.8 ) — Other expense (income) (0.8 ) (2.5 ) 3.1 — (0.2 ) Income before income taxes 96.3 96.8 206.7 (252.8 ) 147.0 Provision (benefit) for income taxes (3.2 ) (8.8 ) 59.5 — 47.5 Net income $ 99.5 $ 105.6 $ 147.2 $ (252.8 ) $ 99.5 Comprehensive income $ 57.1 $ 65.9 $ 97.2 $ (163.1 ) $ 57.1 Consolidating Statement of Income 26 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,130.7 $ (3.0 ) $ 1,127.7 Other revenue — 58.2 15.0 (73.2 ) — Cost of products sold — 15.0 416.7 (71.4 ) 360.3 Gross margin — 43.2 729.0 (4.8 ) 767.4 Delivery, sales and administrative expense 8.4 46.4 546.9 (4.8 ) 596.9 Re-engineering and impairment charges — 0.7 34.2 — 34.9 Impairment of goodwill and intangible assets — — 62.9 — 62.9 Gains on disposal of assets — — 3.2 — 3.2 Operating income (loss) (8.4 ) (3.9 ) 88.2 — 75.9 Interest income 10.2 1.0 17.8 (27.8 ) 1.2 Interest expense 18.1 28.9 4.0 (27.8 ) 23.2 Income from equity investments in subsidiaries 39.9 80.6 — (120.5 ) — Other expense (income) (1.0 ) 25.0 (21.6 ) — 2.4 Income before income taxes 24.6 23.8 123.6 (120.5 ) 51.5 Provision (benefit) for income taxes (5.1 ) (12.3 ) 39.2 — 21.8 Net income $ 29.7 $ 36.1 $ 84.4 $ (120.5 ) $ 29.7 Comprehensive income $ 72.7 $ 84.6 $ 154.7 $ (239.3 ) $ 72.7 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.4 $ 97.7 $ (0.1 ) $ 98.0 Accounts receivable, net — — 163.3 — 163.3 Inventories — — 281.5 0.1 281.6 Non-trade amounts receivable, net — 26.8 36.6 — 63.4 Intercompany receivables 87.7 1,161.5 280.7 (1,529.9 ) — Prepaid expenses and other current assets 1.7 6.4 64.6 (47.9 ) 24.8 Total current assets 89.4 1,195.1 924.4 (1,577.8 ) 631.1 Deferred income tax benefits, net 33.4 72.5 136.9 (6.5 ) 236.3 Property, plant and equipment, net — 62.8 208.7 — 271.5 Long-term receivables, net — — 18.4 0.1 18.5 Trademarks and tradenames, net — — 57.2 — 57.2 Goodwill — 2.9 74.0 — 76.9 Investments in subsidiaries 1,245.3 1,333.9 — (2,579.2 ) — Intercompany notes receivable 505.2 96.8 920.4 (1,522.4 ) — Other assets, net 0.5 0.6 73.8 (28.3 ) 46.6 Total assets $ 1,873.8 $ 2,764.6 $ 2,413.8 $ (5,714.1 ) $ 1,338.1 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.1 $ 86.9 $ 0.1 $ 90.1 Short-term borrowings and current portion of long-term debt and capital lease obligations 256.2 — 1.6 — 257.8 Intercompany payables 1,084.8 275.7 169.4 (1,529.9 ) — Accrued liabilities 51.7 57.4 286.2 (47.9 ) 347.4 Total current liabilities 1,392.7 336.2 544.1 (1,577.7 ) 695.3 Long-term debt and capital lease obligations 599.6 — 4.4 — 604.0 Intercompany notes payable 47.7 1,170.4 304.3 (1,522.4 ) — Other liabilities 9.3 73.8 166.0 (34.8 ) 214.3 Shareholders' equity (deficit) (175.5 ) 1,184.2 1,395.0 (2,579.2 ) (175.5 ) Total liabilities and shareholders' equity $ 1,873.8 $ 2,764.6 $ 2,413.8 $ (5,714.1 ) $ 1,338.1 Condensed Consolidating Balance Sheet December 30, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total ASSETS Cash and cash equivalents $ — $ 0.1 $ 144.0 $ — $ 144.1 Accounts receivable, net — — 144.4 — 144.4 Inventories — — 262.2 — 262.2 Non-trade amounts receivable, net — 179.2 79.4 (200.0 ) 58.6 Intercompany receivables 300.8 1,101.9 255.4 (1,658.1 ) — Prepaid expenses and other current assets 1.1 2.1 82.2 (64.2 ) 21.2 Total current assets 301.9 1,283.3 967.6 (1,922.3 ) 630.5 Deferred income tax benefits, net 33.4 72.6 172.0 — 278.0 Property, plant and equipment, net — 54.9 223.3 — 278.2 Long-term receivables, net — 0.2 19.1 — 19.3 Trademarks and tradenames, net — — 62.5 — 62.5 Goodwill — 2.9 76.0 — 78.9 Investments in subsidiaries 1,174.9 1,371.0 — (2,545.9 ) — Intercompany notes receivable 498.4 100.0 968.9 (1,567.3 ) — Other assets, net 0.6 0.7 69.8 (30.5 ) 40.6 Total assets $ 2,009.2 $ 2,885.6 $ 2,559.2 $ (6,066.0 ) $ 1,388.0 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ — $ 3.1 $ 121.3 $ — $ 124.4 Short-term borrowings and current portion of long-term debt and capital lease obligations 131.1 — 1.9 — 133.0 Intercompany payables 1,013.4 436.1 208.6 (1,658.1 ) — Accrued liabilities 287.0 80.4 298.2 (264.2 ) 401.4 Total current liabilities 1,431.5 519.6 630.0 (1,922.3 ) 658.8 Long-term debt and capital lease obligations 599.5 — 5.6 — 605.1 Intercompany notes payable 88.5 1,172.0 306.8 (1,567.3 ) — Other liabilities 9.1 75.6 189.3 (30.5 ) 243.5 Shareholders' equity (deficit) (119.4 ) 1,118.4 1,427.5 (2,545.9 ) (119.4 ) Total liabilities and shareholders' equity $ 2,009.2 $ 2,885.6 $ 2,559.2 $ (6,066.0 ) $ 1,388.0 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows 26 weeks ended June 30, 2018 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (29.5 ) $ 69.2 $ 161.1 $ (239.6 ) $ (38.8 ) Investing Activities: Capital expenditures — (14.6 ) (23.0 ) — (37.6 ) Proceeds from disposal of property, plant and equipment — — 33.1 — 33.1 Net intercompany loans (47.6 ) (64.1 ) (8.7 ) 120.4 — Net cash provided by (used in) investing activities (47.6 ) (78.7 ) 1.4 120.4 (4.5 ) Financing Activities: Dividend payments to shareholders (70.2 ) — — — (70.2 ) Dividend payments to parent — — (236.0 ) 236.0 — Proceeds from exercise of stock options 0.3 — — — 0.3 Repurchase of common stock (51.1 ) — — — (51.1 ) Repayment of capital lease obligations — — (1.3 ) — (1.3 ) Net change in short-term debt 126.7 — 0.9 — 127.6 Net intercompany borrowings 71.4 9.8 35.6 (116.8 ) — Net cash provided by (used in) financing activities 77.1 9.8 (200.8 ) 119.2 5.3 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (7.1 ) — (7.1 ) Net change in cash, cash equivalents and restricted cash — 0.3 (45.4 ) — (45.1 ) Cash, cash equivalents and restricted cash at beginning of year — 0.1 147.1 — 147.2 Cash, cash equivalents and restricted cash at end of period $ — $ 0.4 $ 101.7 $ — $ 102.1 Condensed Consolidating Statement of Cash Flows 26 weeks ended July 1, 2017 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities: Net cash provided by (used in) operating activities $ (18.8 ) $ (29.5 ) $ 80.3 $ (17.8 ) $ 14.2 Investing Activities: Capital expenditures — (8.0 ) (24.0 ) — (32.0 ) Proceeds from disposal of property, plant and equipment — — 5.3 — 5.3 Net intercompany loans 28.5 1.2 (38.8 ) 9.1 — Net cash provided by (used in) investing activities 28.5 (6.8 ) (57.5 ) 9.1 (26.7 ) Financing Activities: Dividend payments to shareholders (69.3 ) — — — (69.3 ) Dividend payments to parent — — (7.7 ) 7.7 — Proceeds from exercise of stock options 9.9 — — — 9.9 Repurchase of common stock (0.6 ) — — — (0.6 ) Repayment of capital lease obligations — — (1.2 ) — (1.2 ) Net change in short-term debt 60.1 — — — 60.1 Net intercompany borrowings (9.8 ) 35.9 (27.1 ) 1.0 — Net cash provided by (used in) financing activities (9.7 ) 35.9 (36.0 ) 8.7 (1.1 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 5.5 — 5.5 Net change in cash, cash equivalents and restricted cash — (0.4 ) (7.7 ) — (8.1 ) Cash, cash equivalents and restricted cash at beginning of year — 0.5 95.6 (0.1 ) 96.0 Cash, cash equivalents and restricted cash at end of period $ — $ 0.1 $ 87.9 $ (0.1 ) $ 87.9 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Summary of Significant Accounting Policies) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Net Monetary Assets in Argentine Peso | $ 0.6 |
Sales Revenue, Net [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 6 |
Shipping and Handling Costs (De
Shipping and Handling Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Shipping and Handling Costs [Abstract] | ||||
Distribution costs | $ 35.8 | $ 35.7 | $ 71.3 | $ 70.5 |
Promotional Costs (Details)
Promotional Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Promotional Costs [Abstract] | ||||
Promotional and other sales force compensation expenses | $ 82.7 | $ 91.7 | $ 171.1 | $ 187.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 30, 2017 |
Inventory, Net [Abstract] | ||
Finished goods | $ 217 | $ 203.5 |
Work in process | 31.5 | 26 |
Raw materials and supplies | 33.1 | 32.7 |
Total inventories | $ 281.6 | $ 262.2 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Net Income Per Common Share [Line Items] | ||||
Net income (loss) | $ 63.8 | $ (17.7) | $ 99.5 | $ 29.7 |
Weighted average shares of common stock outstanding | 50.5 | 50.8 | 50.8 | 50.7 |
Common equivalent shares: | ||||
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units | 0.2 | 0 | 0.2 | 0.5 |
Weighted average common and common equivalent shares outstanding | 50.7 | 50.8 | 51 | 51.2 |
Basic earnings (loss) per share | $ 1.26 | $ (0.35) | $ 1.96 | $ 0.59 |
Diluted earnings (loss) per share | $ 1.26 | $ (0.35) | $ 1.95 | $ 0.58 |
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive | 3.2 | 2.9 | 2.6 | 1 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (571.8) | $ (528.5) | $ (571.8) | $ (528.5) | $ (529.4) | $ (571.5) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (41.2) | 43.5 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1.2) | (0.5) | ||||
Other Comprehensive Income (Loss), Net of Tax | (50.1) | 6.8 | (42.4) | 43 | ||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, before tax | 1.9 | 1.7 | ||||
Amounts reclassified from accumulated other comprehensive loss, cash flow hedges, tax | (0.6) | (0.5) | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, prior service benefit, before tax | 0.7 | 0.6 | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, actuarial losses, before tax | (0.4) | (0.7) | ||||
Amounts reclassified from accumulated other comprehenesive loss, pension and other post-retirement items, settlement or curtailment, before tax | (0.4) | (0.8) | ||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | 0 | 0.2 | ||||
Foreign Currency Items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | (546.9) | (492.1) | (546.9) | (492.1) | (501.9) | (544.3) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (45) | 52.2 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | (45) | 52.2 | ||||
Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | 3.4 | (1) | 3.4 | (1) | 1.6 | 4.9 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3.1 | (4.7) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1.3) | (1.2) | ||||
Other Comprehensive Income (Loss), Net of Tax | 1.8 | (5.9) | ||||
Pension and Other Post-retirement Items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (28.3) | $ (35.4) | (28.3) | (35.4) | $ (29.1) | $ (32.1) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0.7 | (4) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.1 | 0.7 | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 0.8 | $ (3.3) |
Re-engineering and Impairment44
Re-engineering and Impairment Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | ||
Restructuring Reserve [Roll Forward] | ||||||
Beginning of the year balance | $ 45.4 | $ 1.6 | $ 1.6 | |||
Re-engineering and impairment charges | $ 2.1 | $ 32.6 | 9.7 | $ 34.9 | [1] | 63.7 |
Non-cash charges | (0.4) | (0.4) | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0.6 | 0 | ||||
End of period balance | 30.8 | 30.8 | 45.4 | |||
South America | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Re-engineering and impairment charges | 0 | 0.4 | ||||
North America | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Re-engineering and impairment charges | 1.3 | 2 | ||||
Asia Pacific | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Re-engineering and impairment charges | 0 | 0.8 | ||||
Europe | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Re-engineering and impairment charges | $ 0.8 | 6.5 | ||||
Revitalization Plan July 2017 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Write-down of inventories | $ 0.7 | |||||
Cash Payments as a Percentage of Re-engineering Costs, Expected | 90.00% | 90.00% | ||||
Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Cash expenditures | $ (14.7) | (12.7) | ||||
Severance | Revitalization Plan July 2017 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance as a Percentage of Re-engineering Costs, Expected | 65.00% | 65.00% | ||||
Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Cash expenditures | $ (8.6) | $ (6.8) | ||||
Minimum [Member] | Revitalization Plan July 2017 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 90 | 90 | ||||
Maximum [Member] | Revitalization Plan July 2017 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 100 | $ 100 | ||||
[1] | (a)See Note 7 to the Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 535.4 | $ 572.9 | $ 1,078 | $ 1,127.7 | ||
Segment profit | 101 | 106.7 | 187.6 | 200.6 | ||
Unallocated expenses | (11.5) | (16.1) | (23.9) | (32.5) | ||
Re-engineering and impairment charges (a) | (2.1) | (32.6) | (9.7) | (34.9) | [1] | $ (63.7) |
Impairment of goodwill | 0 | 62.9 | 0 | 62.9 | ||
Gains on disposal of assets | 12.4 | 3.1 | 14.6 | 3.2 | ||
Interest expense, net | (11.2) | (10.9) | (21.6) | (22) | ||
Income (loss) before income taxes | 88.6 | (12.7) | 147 | 51.5 | ||
Total identifiable assets | 1,338.1 | 1,338.1 | 1,388 | |||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 132.7 | 135.4 | 276.6 | 284.9 | ||
Segment profit | 15.1 | 11.9 | 27.5 | 31.8 | ||
Re-engineering and impairment charges (a) | (0.8) | (6.5) | ||||
Total identifiable assets | 312.8 | 312.8 | 308.5 | |||
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 180 | 183.5 | 352.2 | 360.8 | ||
Segment profit | 45.4 | 46.2 | 83.3 | 86.2 | ||
Re-engineering and impairment charges (a) | 0 | (0.8) | ||||
Total identifiable assets | 294.4 | 294.4 | 297.2 | |||
North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 136.8 | 141.8 | 271.8 | 273.1 | ||
Segment profit | 22.7 | 20.7 | 41.7 | 36.5 | ||
Re-engineering and impairment charges (a) | (1.3) | (2) | ||||
Total identifiable assets | 282.8 | 282.8 | 266.3 | |||
South America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 85.9 | 112.2 | 177.4 | 208.9 | ||
Segment profit | 17.8 | 27.9 | 35.1 | 46.1 | ||
Re-engineering and impairment charges (a) | 0 | (0.4) | ||||
Total identifiable assets | 139.9 | 139.9 | 138.6 | |||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total identifiable assets | 308.2 | 308.2 | $ 377.4 | |||
Beauty and Personal Care Products [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 75.5 | $ 86.7 | $ 148.3 | $ 166.3 | ||
[1] | (a)See Note 7 to the Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 30, 2017 | ||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 861.8 | $ 738.1 | |
Unused lines of credit | 426 | ||
Senior Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 599.6 | 599.5 | |
Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | [1] | $ 256.2 | 131 |
Variable rate basis | LIBOR | ||
Unused lines of credit | $ 342.4 | ||
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 | 2.80% | ||
Belgium Facility Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations | $ 6 | 7.5 | |
Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 0 | 0.1 | |
Uncommitted Lines of credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 83.6 | ||
Euro | Five-Year Senior Secured Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 94.5 | $ 96.1 | |
[1] | (a)$94.5 million and $96.1 million denominated in euros as of June 30, 2018 and December 30, 2017, respectively. |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net cash impact from hedging activity | $ (7.8) | $ (1.6) | ||
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) | $ 4.7 | $ 5.3 | $ 10.7 | 10.2 |
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 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | (0.7) | (1.1) | $ (1.8) | (2.4) |
Net Equity Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 30.9 | (10.8) | 14 | (32.1) |
Net Equity Hedging [Member] | Foreign exchange contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $ (5.4) | $ (6.3) | $ (11.4) | $ (12.2) |
Minimum [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Remaining Maturity Range | 1 month | |||
Maximum [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Remaining Maturity Range | 15 months |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) - Forward Contracts [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 30, 2017 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 86 | $ 111.1 |
Derivative Liability, Notional Amount | 74.2 | $ 112.1 |
U.S. dollars | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 69.3 | |
Mexico, Pesos | Short [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 13.7 |
Derivative Instruments and He49
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 | Jun. 30, 2018 | Dec. 30, 2017 |
Non-trade amounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 32.5 | $ 32.2 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 18.6 | $ 29.6 |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
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) | $ 4.7 | $ 5.3 | $ 10.7 | $ 10.2 |
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 | (29.9) | 10 | (14.8) | 38.2 |
Amount of gain or (loss) recognized in income on related hedged items | 28.9 | (10) | 14.2 | (38.1) |
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) | 4.9 | (1.6) | 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) | 1.8 | 0.1 | 1.9 | 1.7 |
Cash Flow Hedging [Member] | Interest expense | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | (0.7) | (1.1) | (1.8) | (2.4) |
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) | 33.8 | (13.2) | 16.2 | (43.2) |
Net Equity Hedging [Member] | Euro Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) | 5.7 | (3.6) | 1.6 | (6.9) |
Net Equity Hedging [Member] | Interest expense | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $ (5.4) | $ (6.3) | $ (11.4) | $ (12.2) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Senior Notes Due 2021 [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 30, 2017 | Jun. 02, 2011 |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.75% | ||
Long-term Debt | $ 599.6 | $ 599.5 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | $ 617.3 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization | $ 0.1 | $ 0.9 | ||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2.4 | $ 2.7 | 5 | 5.3 |
Interest cost | 1.4 | 1.4 | 2.8 | 2.8 |
Expected return on plan assets | (1.3) | (1.2) | (2.4) | (2.4) |
Settlements and Curtailments | 0.3 | 0 | 0.4 | 0.8 |
Net amortization | 0.3 | 0.4 | 0.3 | 0.7 |
Net periodic benefit cost | 3.1 | 3.3 | 6.1 | 7.2 |
Post-retirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlements and Curtailments | 0 | 0 | 0 | 0 |
Net amortization | (0.3) | (0.3) | (0.6) | (0.6) |
Net periodic benefit cost | $ (0.1) | $ (0.1) | (0.3) | (0.2) |
Other Nonoperating Income (Expense) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 0.7 | $ 1.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Income Taxes [Line Items] | ||||||
Effective tax rate | 28.10% | 38.80% | (38.90%) | 32.30% | 42.30% | |
Gross unrecognized tax benefit | $ 16.7 | $ 16.7 | $ 19.8 | |||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 15.9 | 15.9 | ||||
Accrued interest and penalties related to uncertain tax positions | 6.3 | 6.3 | $ 7.3 | |||
Decrease in Unrecognized Tax Benefits Reasonably Possible, Amount of Unrecorded Benefit | $ 0.5 | $ 0.5 |
Statement of Cash Flow Supple54
Statement of Cash Flow Supplemental Disclosure (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Other Significant Noncash Transactions [Line Items] | ||
Shares Paid for Tax Withholding for Share Based Compensation | 22,494 | 9,256 |
Shares Paid For Tax Withholding For Share Based Compensation, Value | $ 1.1 | $ 0.6 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
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 | $ 23.5 | $ 23.5 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 6 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at December 30, 2017 | 3,045,316 | |||
Weighted Average Exercise Price Per Share Outstanding, Beginning of Period | $ 58.96 | |||
Granted | 69,736 | |||
Weighted Average Exercise Price Per Share, Granted | $ 47.05 | |||
Expired / Forfeited | (6,594) | |||
Weighted Average Exercise Price Per Share Outstanding, Expired/Forfeited | $ 58.12 | |||
Exercised | (19,047) | |||
Weighted Average Exercise Price Per Shares Outstanding, Exercised | $ 25.46 | |||
Outstanding at June 30, 2018 | 3,089,411 | 3,089,411 | ||
Weighted Average Exercise Price Per Share Outstanding, End of Period | $ 58.90 | $ 58.90 | ||
Outstanding Shares Subject to Option, Aggregate Intrinsic Value | $ 0 | $ 0 | ||
Exercisable at June 30, 2018 | 1,784,764 | 1,784,764 | ||
Weighted Average Exercise Price Per Share Exercisable, End of Period | $ 59.92 | $ 59.92 | ||
Options Exercisable at End of Period, Aggregate Intrinsic Value | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 0.4 | $ 3 | 0.4 | $ 4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Stock Option Expense | $ 0.9 | 0.8 | $ 1.7 | 1.5 |
Time Vested, Performance Vested and Market Vested Share Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares Outstanding, Beginning of Period | 635,507 | |||
Weighted Average Grant Date Fair Value, Beginning of Period | $ 58.59 | |||
Shares Outstanding, Vested | (95,406) | |||
Weighted Average Grant Date Fair Value, Vested | $ 70.97 | |||
Shares Outstanding, Forfeited | (31,118) | |||
Weighted Average Grant Date Fair Value, Forfeited | $ 59.67 | |||
Shares Outstanding, End of Period | 609,977 | 609,977 | ||
Weighted Average Grant Date Fair Value, End of Period | $ 54.82 | $ 54.82 | ||
Time, Performance and Market Vested Share Awards Expense | $ 2.8 | $ 3.6 | $ 5.3 | $ 7.7 |
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 | 51,862 | |||
Weighted Average Grant Date Fair Value, Granted | $ 44.36 | |||
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 | 24,571 | |||
Weighted Average Grant Date Fair Value, Granted | $ 63.48 | |||
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 | 92,621 | |||
Weighted Average Grant Date Fair Value, Granted | $ 50.51 | |||
Shares Outstanding, Performance Share Adjustments | (68,060) | |||
Weighted Average Grant Date Fair Value, Performance Share Adjustments | $ 54.46 |
Allowance for Long-Term Recei56
Allowance for Long-Term Receivables (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Long-Term Receivables Past Due | $ 16 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Balance at December 30, 2017 | 16.5 |
Provision and reclassifications | (0.8) |
Currency translation adjustment | (0.5) |
Balance at June 30, 2018 | $ 15.2 |
Guarantor Information (Details)
Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | ||
Net sales | $ 535.4 | $ 572.9 | $ 1,078 | $ 1,127.7 | ||
Other revenue | 0 | 0 | 0 | 0 | ||
Cost of products sold | 173.5 | 182.6 | 352.5 | 360.3 | ||
Gross margin | 361.9 | 390.3 | 725.5 | 767.4 | ||
Delivery, sales and administrative expense | 272.8 | 299 | 562 | 596.9 | ||
Re-engineering and impairment charges | 2.1 | 32.6 | 9.7 | 34.9 | [1] | $ 63.7 |
Impairment of goodwill | 0 | 62.9 | 0 | 62.9 | ||
Gains on disposal of assets | 12.4 | 3.1 | 14.6 | 3.2 | ||
Operating income (loss) | 99.4 | (1.1) | 168.4 | 75.9 | ||
Interest income | 0.7 | 0.7 | 1.4 | 1.2 | ||
Interest expense | 11.9 | 11.6 | 23 | 23.2 | ||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||
Other (income) expense | (0.4) | 0.7 | (0.2) | 2.4 | ||
Income (loss) before income taxes | 88.6 | (12.7) | 147 | 51.5 | ||
Provision (benefit) for income taxes | 24.8 | 5 | 47.5 | 21.8 | ||
Net income (loss) | 63.8 | (17.7) | 99.5 | 29.7 | ||
Comprehensive income | 13.7 | (10.9) | 57.1 | 72.7 | ||
ASSETS | ||||||
Cash and cash equivalents | 98 | 98 | 144.1 | |||
Accounts receivable, net | 163.3 | 163.3 | 144.4 | |||
Inventories | 281.6 | 281.6 | 262.2 | |||
Non-trade amounts receivable, net | 63.4 | 63.4 | 58.6 | |||
Intercompany receivables | 0 | 0 | 0 | |||
Prepaid expenses and other current assets | 24.8 | 24.8 | 21.2 | |||
Total current assets | 631.1 | 631.1 | 630.5 | |||
Deferred income tax benefits, net | 236.3 | 236.3 | 278 | |||
Property, plant and equipment, net | 271.5 | 271.5 | 278.2 | |||
Long-term receivables, net | 18.5 | 18.5 | 19.3 | |||
Trademarks and tradenames, net | 57.2 | 57.2 | 62.5 | |||
Goodwill | 76.9 | 76.9 | 78.9 | |||
Investments in subsidiaries | 0 | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | 0 | |||
Other assets, net | 46.6 | 46.6 | 40.6 | |||
Total assets | 1,338.1 | 1,338.1 | 1,388 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 90.1 | 90.1 | 124.4 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 257.8 | 257.8 | 133 | |||
Intercompany payables | 0 | 0 | 0 | |||
Accrued liabilities | 347.4 | 347.4 | 401.4 | |||
Total current liabilities | 695.3 | 695.3 | 658.8 | |||
Long-term debt and capital lease obligations | 604 | 604 | 605.1 | |||
Intercompany notes payable | 0 | 0 | 0 | |||
Other liabilities | 214.3 | 214.3 | 243.5 | |||
Total shareholders' deficit | (175.5) | (175.5) | (119.4) | |||
Total liabilities and shareholders' deficit | 1,338.1 | 1,338.1 | 1,388 | |||
Operating Activities: | ||||||
Net cash provided by (used in) operating activities | (38.8) | 14.2 | ||||
Investing Activities: | ||||||
Capital expenditures | (37.6) | (32) | ||||
Proceeds from disposal of property, plant and equipment | 33.1 | 5.3 | ||||
Net intercompany loans | 0 | 0 | ||||
Net cash used in investing activities | (4.5) | (26.7) | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | (70.2) | (69.3) | ||||
Cash Dividends Paid to Parent Company | 0 | 0 | ||||
Proceeds from exercise of stock options | 0.3 | 9.9 | ||||
Repurchase of common stock | (51.1) | (0.6) | ||||
Repayment of capital lease obligations | (1.3) | (1.2) | ||||
Net change in short-term debt | 127.6 | 60.1 | ||||
Net intercompany borrowings | 0 | 0 | ||||
Net cash provided by (used in) financing activities | 5.3 | (1.1) | ||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (7.1) | 5.5 | ||||
Net change in cash, cash equivalents and restricted cash | (45.1) | (8.1) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 147.2 | 96 | 96 | |||
Cash, cash equivalents and restricted cash at end of period | 102.1 | 87.9 | 102.1 | 87.9 | 147.2 | |
Parent | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Other revenue | 0 | 0 | 0 | 0 | ||
Cost of products sold | 0 | 0 | 0 | 0 | ||
Gross margin | 0 | 0 | 0 | 0 | ||
Delivery, sales and administrative expense | 3.3 | 4.5 | 6.3 | 8.4 | ||
Re-engineering and impairment charges | 0 | 0 | 0 | 0 | ||
Impairment of goodwill | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | 0 | 0 | ||
Operating income (loss) | (3.3) | (4.5) | (6.3) | (8.4) | ||
Interest income | 5.1 | 5.1 | 10.2 | 10.2 | ||
Interest expense | 10.3 | 9.5 | 19.5 | 18.1 | ||
Income from equity investments in subsidiaries | 70.3 | (12) | 111.1 | 39.9 | ||
Other (income) expense | (0.2) | (1) | (0.8) | (1) | ||
Income (loss) before income taxes | 62 | (19.9) | 96.3 | 24.6 | ||
Provision (benefit) for income taxes | (1.8) | (2.2) | (3.2) | (5.1) | ||
Net income (loss) | 63.8 | (17.7) | 99.5 | 29.7 | ||
Comprehensive income | 13.7 | (10.9) | 57.1 | 72.7 | ||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | 0 | |||
Inventories | 0 | 0 | 0 | |||
Non-trade amounts receivable, net | 0 | 0 | 0 | |||
Intercompany receivables | 87.7 | 87.7 | 300.8 | |||
Prepaid expenses and other current assets | 1.7 | 1.7 | 1.1 | |||
Total current assets | 89.4 | 89.4 | 301.9 | |||
Deferred income tax benefits, net | 33.4 | 33.4 | 33.4 | |||
Property, plant and equipment, net | 0 | 0 | 0 | |||
Long-term receivables, net | 0 | 0 | 0 | |||
Trademarks and tradenames, net | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Investments in subsidiaries | 1,245.3 | 1,245.3 | 1,174.9 | |||
Intercompany notes receivable | 505.2 | 505.2 | 498.4 | |||
Other assets, net | 0.5 | 0.5 | 0.6 | |||
Total assets | 1,873.8 | 1,873.8 | 2,009.2 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 0 | 0 | 0 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 256.2 | 256.2 | 131.1 | |||
Intercompany payables | 1,084.8 | 1,084.8 | 1,013.4 | |||
Accrued liabilities | 51.7 | 51.7 | 287 | |||
Total current liabilities | 1,392.7 | 1,392.7 | 1,431.5 | |||
Long-term debt and capital lease obligations | 599.6 | 599.6 | 599.5 | |||
Intercompany notes payable | 47.7 | 47.7 | 88.5 | |||
Other liabilities | 9.3 | 9.3 | 9.1 | |||
Total shareholders' deficit | (175.5) | (175.5) | (119.4) | |||
Total liabilities and shareholders' deficit | 1,873.8 | 1,873.8 | 2,009.2 | |||
Operating Activities: | ||||||
Net cash provided by (used in) operating activities | (29.5) | (18.8) | ||||
Investing Activities: | ||||||
Capital expenditures | 0 | 0 | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | (47.6) | 28.5 | ||||
Net cash used in investing activities | (47.6) | 28.5 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | (70.2) | (69.3) | ||||
Cash Dividends Paid to Parent Company | 0 | 0 | ||||
Proceeds from exercise of stock options | 0.3 | 9.9 | ||||
Repurchase of common stock | (51.1) | (0.6) | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | 126.7 | 60.1 | ||||
Net intercompany borrowings | 71.4 | (9.8) | ||||
Net cash provided by (used in) financing activities | 77.1 | (9.7) | ||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | ||||
Net change in cash, cash equivalents and restricted cash | 0 | 0 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 0 | 0 | 0 | |||
Cash, cash equivalents and restricted cash at end of period | $ 0 | 0 | $ 0 | 0 | 0 | |
Guarantor | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | ||||
Net sales | $ 0 | 0 | $ 0 | 0 | ||
Other revenue | 19.6 | 32.7 | 41.3 | 58.2 | ||
Cost of products sold | 2.1 | 6.4 | 12.1 | 15 | ||
Gross margin | 17.5 | 26.3 | 29.2 | 43.2 | ||
Delivery, sales and administrative expense | 23.1 | 23.2 | 45.4 | 46.4 | ||
Re-engineering and impairment charges | 0.7 | 0.3 | 1 | 0.7 | ||
Impairment of goodwill | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | 0 | 0 | ||
Operating income (loss) | (6.3) | 2.8 | (17.2) | (3.9) | ||
Interest income | 0.6 | 0.3 | 1.1 | 1 | ||
Interest expense | 15.8 | 14.6 | 31.3 | 28.9 | ||
Income from equity investments in subsidiaries | 71.2 | 1.9 | 141.7 | 80.6 | ||
Other (income) expense | (14.5) | 9.6 | (2.5) | 25 | ||
Income (loss) before income taxes | 64.2 | (19.2) | 96.8 | 23.8 | ||
Provision (benefit) for income taxes | (2.5) | (4.6) | (8.8) | (12.3) | ||
Net income (loss) | 66.7 | (14.6) | 105.6 | 36.1 | ||
Comprehensive income | 14 | (4.8) | 65.9 | 84.6 | ||
ASSETS | ||||||
Cash and cash equivalents | 0.4 | 0.4 | 0.1 | |||
Accounts receivable, net | 0 | 0 | 0 | |||
Inventories | 0 | 0 | 0 | |||
Non-trade amounts receivable, net | 26.8 | 26.8 | 179.2 | |||
Intercompany receivables | 1,161.5 | 1,161.5 | 1,101.9 | |||
Prepaid expenses and other current assets | 6.4 | 6.4 | 2.1 | |||
Total current assets | 1,195.1 | 1,195.1 | 1,283.3 | |||
Deferred income tax benefits, net | 72.5 | 72.5 | 72.6 | |||
Property, plant and equipment, net | 62.8 | 62.8 | 54.9 | |||
Long-term receivables, net | 0 | 0 | 0.2 | |||
Trademarks and tradenames, net | 0 | 0 | 0 | |||
Goodwill | 2.9 | 2.9 | 2.9 | |||
Investments in subsidiaries | 1,333.9 | 1,333.9 | 1,371 | |||
Intercompany notes receivable | 96.8 | 96.8 | 100 | |||
Other assets, net | 0.6 | 0.6 | 0.7 | |||
Total assets | 2,764.6 | 2,764.6 | 2,885.6 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 3.1 | 3.1 | 3.1 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | 0 | |||
Intercompany payables | 275.7 | 275.7 | 436.1 | |||
Accrued liabilities | 57.4 | 57.4 | 80.4 | |||
Total current liabilities | 336.2 | 336.2 | 519.6 | |||
Long-term debt and capital lease obligations | 0 | 0 | 0 | |||
Intercompany notes payable | 1,170.4 | 1,170.4 | 1,172 | |||
Other liabilities | 73.8 | 73.8 | 75.6 | |||
Total shareholders' deficit | 1,184.2 | 1,184.2 | 1,118.4 | |||
Total liabilities and shareholders' deficit | 2,764.6 | 2,764.6 | 2,885.6 | |||
Operating Activities: | ||||||
Net cash provided by (used in) operating activities | 69.2 | (29.5) | ||||
Investing Activities: | ||||||
Capital expenditures | (14.6) | (8) | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | (64.1) | 1.2 | ||||
Net cash used in investing activities | (78.7) | (6.8) | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Cash Dividends Paid to Parent Company | 0 | 0 | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | 0 | 0 | ||||
Net intercompany borrowings | 9.8 | 35.9 | ||||
Net cash provided by (used in) financing activities | 9.8 | 35.9 | ||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | ||||
Net change in cash, cash equivalents and restricted cash | 0.3 | (0.4) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 0.1 | 0.5 | 0.5 | |||
Cash, cash equivalents and restricted cash at end of period | 0.4 | 0.1 | 0.4 | 0.1 | 0.1 | |
Non-Guarantors | ||||||
Net sales | 536.7 | 574 | 1,079.5 | 1,130.7 | ||
Other revenue | 1.9 | 6.4 | 12 | 15 | ||
Cost of products sold | 194.6 | 214.1 | 393.3 | 416.7 | ||
Gross margin | 344 | 366.3 | 698.2 | 729 | ||
Delivery, sales and administrative expense | 246 | 273.6 | 512.2 | 546.9 | ||
Re-engineering and impairment charges | 1.4 | 32.3 | 8.7 | 34.2 | ||
Impairment of goodwill | 62.9 | 62.9 | ||||
Gains on disposal of assets | 12.4 | 3.1 | 14.6 | 3.2 | ||
Operating income (loss) | 109 | 0.6 | 191.9 | 88.2 | ||
Interest income | 11.1 | 9.5 | 21.9 | 17.8 | ||
Interest expense | 1.9 | 1.7 | 4 | 4 | ||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||
Other (income) expense | 14.3 | (7.9) | 3.1 | (21.6) | ||
Income (loss) before income taxes | 103.9 | 16.3 | 206.7 | 123.6 | ||
Provision (benefit) for income taxes | 29.1 | 11.8 | 59.5 | 39.2 | ||
Net income (loss) | 74.8 | 4.5 | 147.2 | 84.4 | ||
Comprehensive income | (1.1) | 21.9 | 97.2 | 154.7 | ||
ASSETS | ||||||
Cash and cash equivalents | 97.7 | 97.7 | 144 | |||
Accounts receivable, net | 163.3 | 163.3 | 144.4 | |||
Inventories | 281.5 | 281.5 | 262.2 | |||
Non-trade amounts receivable, net | 36.6 | 36.6 | 79.4 | |||
Intercompany receivables | 280.7 | 280.7 | 255.4 | |||
Prepaid expenses and other current assets | 64.6 | 64.6 | 82.2 | |||
Total current assets | 924.4 | 924.4 | 967.6 | |||
Deferred income tax benefits, net | 136.9 | 136.9 | 172 | |||
Property, plant and equipment, net | 208.7 | 208.7 | 223.3 | |||
Long-term receivables, net | 18.4 | 18.4 | 19.1 | |||
Trademarks and tradenames, net | 57.2 | 57.2 | 62.5 | |||
Goodwill | 74 | 74 | 76 | |||
Investments in subsidiaries | 0 | 0 | 0 | |||
Intercompany notes receivable | 920.4 | 920.4 | 968.9 | |||
Other assets, net | 73.8 | 73.8 | 69.8 | |||
Total assets | 2,413.8 | 2,413.8 | 2,559.2 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 86.9 | 86.9 | 121.3 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 1.6 | 1.6 | 1.9 | |||
Intercompany payables | 169.4 | 169.4 | 208.6 | |||
Accrued liabilities | 286.2 | 286.2 | 298.2 | |||
Total current liabilities | 544.1 | 544.1 | 630 | |||
Long-term debt and capital lease obligations | 4.4 | 4.4 | 5.6 | |||
Intercompany notes payable | 304.3 | 304.3 | 306.8 | |||
Other liabilities | 166 | 166 | 189.3 | |||
Total shareholders' deficit | 1,395 | 1,395 | 1,427.5 | |||
Total liabilities and shareholders' deficit | 2,413.8 | 2,413.8 | 2,559.2 | |||
Operating Activities: | ||||||
Net cash provided by (used in) operating activities | 161.1 | 80.3 | ||||
Investing Activities: | ||||||
Capital expenditures | (23) | (24) | ||||
Proceeds from disposal of property, plant and equipment | 33.1 | 5.3 | ||||
Net intercompany loans | (8.7) | (38.8) | ||||
Net cash used in investing activities | 1.4 | (57.5) | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Cash Dividends Paid to Parent Company | (236) | (7.7) | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | (1.3) | (1.2) | ||||
Net change in short-term debt | 0.9 | 0 | ||||
Net intercompany borrowings | 35.6 | (27.1) | ||||
Net cash provided by (used in) financing activities | (200.8) | (36) | ||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (7.1) | 5.5 | ||||
Net change in cash, cash equivalents and restricted cash | (45.4) | (7.7) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 147.1 | 95.6 | 95.6 | |||
Cash, cash equivalents and restricted cash at end of period | 101.7 | 87.9 | 101.7 | 87.9 | 147.1 | |
Eliminations | ||||||
Net sales | (1.3) | (1.1) | (1.5) | (3) | ||
Other revenue | (21.5) | (39.1) | (53.3) | (73.2) | ||
Cost of products sold | (23.2) | (37.9) | (52.9) | (71.4) | ||
Gross margin | 0.4 | (2.3) | (1.9) | (4.8) | ||
Delivery, sales and administrative expense | 0.4 | (2.3) | (1.9) | (4.8) | ||
Re-engineering and impairment charges | 0 | 0 | 0 | 0 | ||
Impairment of goodwill | 0 | 0 | ||||
Gains on disposal of assets | 0 | 0 | 0 | 0 | ||
Operating income (loss) | 0 | 0 | 0 | 0 | ||
Interest income | (16.1) | (14.2) | (31.8) | (27.8) | ||
Interest expense | (16.1) | (14.2) | (31.8) | (27.8) | ||
Income from equity investments in subsidiaries | (141.5) | 10.1 | (252.8) | (120.5) | ||
Other (income) expense | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | (141.5) | 10.1 | (252.8) | (120.5) | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||
Net income (loss) | (141.5) | 10.1 | (252.8) | (120.5) | ||
Comprehensive income | (12.9) | (17.1) | (163.1) | (239.3) | ||
ASSETS | ||||||
Cash and cash equivalents | (0.1) | (0.1) | 0 | |||
Accounts receivable, net | 0 | 0 | 0 | |||
Inventories | 0.1 | 0.1 | 0 | |||
Non-trade amounts receivable, net | 0 | 0 | (200) | |||
Intercompany receivables | (1,529.9) | (1,529.9) | (1,658.1) | |||
Prepaid expenses and other current assets | (47.9) | (47.9) | (64.2) | |||
Total current assets | (1,577.8) | (1,577.8) | (1,922.3) | |||
Deferred income tax benefits, net | (6.5) | (6.5) | 0 | |||
Property, plant and equipment, net | 0 | 0 | 0 | |||
Long-term receivables, net | 0.1 | 0.1 | 0 | |||
Trademarks and tradenames, net | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Investments in subsidiaries | (2,579.2) | (2,579.2) | (2,545.9) | |||
Intercompany notes receivable | (1,522.4) | (1,522.4) | (1,567.3) | |||
Other assets, net | (28.3) | (28.3) | (30.5) | |||
Total assets | (5,714.1) | (5,714.1) | (6,066) | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | 0.1 | 0.1 | 0 | |||
Short-term borrowings and current portion of long-term debt and capital lease obligations | 0 | 0 | 0 | |||
Intercompany payables | (1,529.9) | (1,529.9) | (1,658.1) | |||
Accrued liabilities | (47.9) | (47.9) | (264.2) | |||
Total current liabilities | (1,577.7) | (1,577.7) | (1,922.3) | |||
Long-term debt and capital lease obligations | 0 | 0 | 0 | |||
Intercompany notes payable | (1,522.4) | (1,522.4) | (1,567.3) | |||
Other liabilities | (34.8) | (34.8) | (30.5) | |||
Total shareholders' deficit | (2,579.2) | (2,579.2) | (2,545.9) | |||
Total liabilities and shareholders' deficit | (5,714.1) | (5,714.1) | (6,066) | |||
Operating Activities: | ||||||
Net cash provided by (used in) operating activities | (239.6) | (17.8) | ||||
Investing Activities: | ||||||
Capital expenditures | 0 | 0 | ||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||
Net intercompany loans | 120.4 | 9.1 | ||||
Net cash used in investing activities | 120.4 | 9.1 | ||||
Financing Activities: | ||||||
Dividend payments to shareholders | 0 | 0 | ||||
Cash Dividends Paid to Parent Company | 236 | 7.7 | ||||
Proceeds from exercise of stock options | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Repayment of capital lease obligations | 0 | 0 | ||||
Net change in short-term debt | 0 | 0 | ||||
Net intercompany borrowings | (116.8) | 1 | ||||
Net cash provided by (used in) financing activities | 119.2 | 8.7 | ||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | ||||
Net change in cash, cash equivalents and restricted cash | 0 | 0 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 0 | (0.1) | (0.1) | |||
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ (0.1) | $ 0 | $ (0.1) | $ 0 | |
[1] | (a)See Note 7 to the Consolidated Financial Statements for a discussion of re-engineering and impairment charges. |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - Interest expense $ in Millions | Jun. 30, 2018USD ($) |
Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 10 |
Maximum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 15 |