Document and Entity Information
Document and Entity Information - $ / shares | 9 Months Ended | ||
Sep. 26, 2020 | Oct. 26, 2020 | Dec. 28, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | TUPPERWARE BRANDS CORPORATION | ||
Entity Central Index Key | 0001008654 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Quarterly Report | true | ||
Document Period End Date | Sep. 26, 2020 | ||
Current Fiscal Year End Date | --12-26 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q3 | ||
Document Transition Report | false | ||
Entity File Number | 1-11657 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4062333 | ||
Entity Address, Address Line One | 14901 South Orange Blossom Trail | ||
Entity Address, City or Town | Orlando | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32837 | ||
City Area Code | 407 | ||
Local Phone Number | 826-5050 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | TUP | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 49,175,029 | ||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net sales | $ 477.2 | $ 418.1 | $ 1,250.5 | $ 1,380.7 |
Cost of Products Sold | 152.1 | 141.5 | 415.3 | 457.3 |
Gross margin | 325.1 | 276.6 | 835.2 | 923.4 |
Delivery, sales and administrative expense | 233.8 | 241.6 | 684.8 | 752 |
Re-engineering charges | 3.2 | 7.5 | 30.3 | 15.9 |
Goodwill and Intangible Asset Impairment | 0 | 19.7 | 0 | 19.7 |
Gain (loss) on disposal of assets | (32.6) | 12.1 | (18.8) | 11.1 |
Operating income (loss) | 55.5 | 19.9 | 101.3 | 146.9 |
Interest income | 0.3 | 0.6 | 1 | 1.6 |
Interest expense | 8.2 | 10.4 | 30.5 | 31.4 |
Other expense (income), net | (10.1) | (3.8) | (60.2) | (10.5) |
Income (loss) before income taxes | 57.7 | 13.9 | 132 | 127.6 |
Provision (benefit) for income taxes | 23.3 | 6.1 | 41.6 | 43.5 |
Net income (loss) | $ 34.4 | $ 7.8 | $ 90.4 | $ 84.1 |
Earnings per share: | ||||
Basic | $ 0.70 | $ 0.16 | $ 1.84 | $ 1.73 |
Diluted | $ 0.65 | $ 0.16 | $ 1.76 | $ 1.72 |
Weighted-average shares outstanding: | ||||
Basic | 49.1 | 48.8 | 49 | 48.7 |
Diluted | 53.1 | 48.9 | 51.5 | 48.9 |
Eliminations | ||||
Net sales | $ (1.4) | $ (1.5) | $ (2.3) | $ (4.7) |
Cost of Products Sold | (24.3) | (24.7) | (70.5) | (90.6) |
Gross margin | (0.1) | 0.1 | 0 | (2.6) |
Delivery, sales and administrative expense | (0.1) | 0.1 | 0 | (2.6) |
Re-engineering charges | 0 | 0 | 0 | 0 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 0 | 0 |
Gain (loss) on disposal of assets | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest income | (10.5) | (13.2) | (32.8) | (43.3) |
Interest expense | (10.5) | (13.2) | (32.8) | (43.3) |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | (103.1) | (5.8) | (186.3) | (195.7) |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (103.1) | (5.8) | (186.3) | (195.7) |
Parent | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of Products Sold | 0 | 0 | 0 | 0 |
Gross margin | 0 | 0 | 0 | 0 |
Delivery, sales and administrative expense | 2.7 | 2.7 | 5.9 | 6.4 |
Re-engineering charges | 0 | 0 | 0 | 0 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 0 | 0 |
Gain (loss) on disposal of assets | 0 | 0 | 0 | 0 |
Operating income (loss) | (2.7) | (2.7) | (5.9) | (6.4) |
Interest income | 4.6 | 4.8 | 13.8 | 15.1 |
Interest expense | 7.4 | 9.9 | 27.8 | 29.7 |
Other expense (income), net | (8.4) | (0.4) | (50) | (1.5) |
Income (loss) before income taxes | 34.4 | (0.4) | 90.5 | 73.4 |
Provision (benefit) for income taxes | 0 | (8.2) | 0.1 | (10.7) |
Net income (loss) | 34.4 | 7.8 | 90.4 | 84.1 |
Guarantor | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of Products Sold | 0 | 2.2 | 6.2 | 15.8 |
Gross margin | 22.7 | 18.7 | 55.5 | 56.9 |
Delivery, sales and administrative expense | 22.3 | 19 | 80.6 | 55.5 |
Re-engineering charges | 1.1 | 0.4 | 6.7 | 1.2 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 0 | 0 |
Gain (loss) on disposal of assets | (30.4) | 0 | (30.4) | 0 |
Operating income (loss) | (31.1) | (0.7) | (62.2) | 0.2 |
Interest income | 0.2 | 0.7 | 0.8 | 1.9 |
Interest expense | 8.9 | 11.8 | 28.2 | 37.6 |
Other expense (income), net | 1.2 | (2.1) | (20.9) | (0.8) |
Income (loss) before income taxes | 30.6 | (10.9) | 57.2 | 68.1 |
Provision (benefit) for income taxes | (0.1) | (12.5) | (0.3) | (16.3) |
Net income (loss) | 30.7 | 1.6 | 57.5 | 84.4 |
Non-Guarantors | ||||
Net sales | 478.6 | 419.6 | 1,252.8 | 1,385.4 |
Cost of Products Sold | 176.4 | 164 | 479.6 | 532.1 |
Gross margin | 302.5 | 257.8 | 779.7 | 869.1 |
Delivery, sales and administrative expense | 208.9 | 219.8 | 598.3 | 692.7 |
Re-engineering charges | 2.1 | 7.1 | 23.6 | 14.7 |
Goodwill and Intangible Asset Impairment | 0 | 19.7 | 0 | 19.7 |
Gain (loss) on disposal of assets | (2.2) | 12.1 | 11.6 | 11.1 |
Operating income (loss) | 89.3 | 23.3 | 169.4 | 153.1 |
Interest income | 6 | 8.3 | 19.2 | 27.9 |
Interest expense | 2.4 | 1.9 | 7.3 | 7.4 |
Other expense (income), net | (2.9) | (1.3) | 10.7 | (8.2) |
Income (loss) before income taxes | 95.8 | 31 | 170.6 | 181.8 |
Provision (benefit) for income taxes | 23.4 | 26.8 | 41.8 | 70.5 |
Net income (loss) | $ 72.4 | $ 4.2 | $ 128.8 | $ 111.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net income (loss) | $ 34.4 | $ 7.8 | $ 90.4 | $ 84.1 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1 | (20.7) | (69.8) | (6.8) |
Deferred gain (loss) on cash flow hedges, net of tax | (1.3) | 0.9 | 3.2 | (1.3) |
Pension and other post-retirement benefit (costs), net of tax | 1.5 | 0.5 | 2.6 | 0.1 |
Other comprehensive income (loss) | 1.2 | (19.3) | (64) | (8) |
Total comprehensive income (loss) | $ 35.6 | $ (11.5) | $ 26.4 | $ 76.1 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Assets | ||
Cash and cash equivalents | $ 148.8 | $ 123.2 |
Accounts receivable, net | 129 | 110.7 |
Inventories | 217.2 | 245.2 |
Non-trade amounts receivable, net | 27.9 | 39.1 |
Prepaid expenses and other current assets | 28.7 | 20.3 |
Total current assets | 551.6 | 538.5 |
Deferred Income Tax Assets, Net | 184.2 | 186.1 |
Property, plant and equipment, net | 208.5 | 267.5 |
Operating lease assets | 75.5 | 84.1 |
Long-term receivables, net | 10.1 | 15 |
Trademarks and tradenames, net | 22.8 | 24.6 |
Goodwill | 57.8 | 59.5 |
Other assets, net | 80.9 | 87.1 |
Total identifiable assets | 1,191.4 | 1,262.4 |
Liabilities And Shareholders' Equity | ||
Accounts payable | 96.3 | 125.4 |
Short-term borrowings and current portion of long-term debt and finance lease obligations | 765.9 | 273.2 |
Accrued liabilities | 344.9 | 290.3 |
Total current liabilities | 1,207.1 | 688.9 |
Long-term debt and finance lease obligations | 2.2 | 602.2 |
Operating Lease, Liability, Noncurrent | 48.5 | 56 |
Other liabilities | 177.6 | 192.3 |
Total liabilities | 1,435.4 | 1,539.4 |
Shareholders' equity (deficit): | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 0.6 | 0.6 |
Paid-in capital | 216.7 | 215 |
Retained earnings | 1,146.6 | 1,067.3 |
Treasury stock, 14,432,061 and 14,678,742 shares, respectively, at cost | (905.6) | (921.6) |
Accumulated other comprehensive loss | (702.3) | (638.3) |
Total shareholders' equity (deficit) | (244) | (277) |
Total liabilities and shareholders' equity | $ 1,191.4 | $ 1,262.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
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 | 14,432,061 | 14,678,742 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member]Cumulative Effect, Period of Adoption, Adjustment |
Beginning Balance at Dec. 29, 2018 | $ (235.2) | $ 0.6 | $ (939.8) | $ 219.3 | $ 1,086.8 | $ (602.1) | |||
Beginning Balance Shares, Issued at Dec. 29, 2018 | 63.6 | 15 | |||||||
Net income (loss) | 36.9 | 36.9 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 19 | 19 | |||||||
Dividends, Common Stock, Cash | (12.9) | (12.9) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (0.1) | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1.1 | $ 5 | (2.8) | (1.1) | |||||
Ending Balance at Mar. 30, 2019 | (184) | $ 7.1 | $ 0.6 | $ (934.8) | 216.5 | 1,121.8 | $ 12.1 | (588.1) | $ (5) |
Ending Balance Shares, Issued at Mar. 30, 2019 | 63.6 | 14.9 | |||||||
Beginning Balance at Dec. 29, 2018 | (235.2) | $ 0.6 | $ (939.8) | 219.3 | 1,086.8 | (602.1) | |||
Beginning Balance Shares, Issued at Dec. 29, 2018 | 63.6 | 15 | |||||||
Net income (loss) | 84.1 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (8) | ||||||||
Ending Balance at Sep. 28, 2019 | (185) | $ 0.6 | $ (930.9) | 219.2 | 1,141.2 | (615.1) | |||
Ending Balance Shares, Issued at Sep. 28, 2019 | 63.6 | 14.8 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3.1) | ||||||||
Beginning Balance at Mar. 30, 2019 | (184) | $ 7.1 | $ 0.6 | $ (934.8) | 216.5 | 1,121.8 | $ 12.1 | (588.1) | $ (5) |
Beginning Balance Shares, Issued at Mar. 30, 2019 | 63.6 | 14.9 | |||||||
Net income (loss) | 39.4 | 39.4 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (7.7) | (7.7) | |||||||
Dividends, Common Stock, Cash | (13.2) | (13.2) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (0.1) | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2.4 | $ 3.7 | (0.2) | (1.1) | |||||
Ending Balance at Jun. 29, 2019 | (163.1) | $ 0.6 | $ (931.1) | 216.3 | 1,146.9 | (595.8) | |||
Ending Balance Shares, Issued at Jun. 29, 2019 | 63.6 | 14.8 | |||||||
Net income (loss) | 7.8 | 7.8 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (19.3) | (19.3) | |||||||
Dividends, Common Stock, Cash | (13.3) | (13.3) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2.9 | $ 0.2 | 2.9 | (0.2) | |||||
Ending Balance at Sep. 28, 2019 | (185) | $ 0.6 | $ (930.9) | 219.2 | 1,141.2 | (615.1) | |||
Ending Balance Shares, Issued at Sep. 28, 2019 | 63.6 | 14.8 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (1) | ||||||||
Beginning Balance at Dec. 28, 2019 | (277) | $ 0.6 | $ (921.6) | 215 | 1,067.3 | (638.3) | |||
Beginning Balance Shares, Issued at Dec. 28, 2019 | 63.6 | 14.7 | |||||||
Net income (loss) | (7.8) | (7.8) | |||||||
Other Comprehensive Income (Loss), Net of Tax | (81.5) | (81.5) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (0.1) | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2.3 | $ 5.2 | 1.9 | (4.8) | |||||
Ending Balance at Mar. 28, 2020 | (364) | $ 0.6 | $ (916.4) | 216.9 | 1,054.7 | (719.8) | |||
Ending Balance Shares, Issued at Mar. 28, 2020 | 63.6 | 14.6 | |||||||
Beginning Balance at Dec. 28, 2019 | (277) | $ 0.6 | $ (921.6) | 215 | 1,067.3 | (638.3) | |||
Beginning Balance Shares, Issued at Dec. 28, 2019 | 63.6 | 14.7 | |||||||
Net income (loss) | 90.4 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (64) | ||||||||
Ending Balance at Sep. 26, 2020 | (244) | $ 0.6 | $ (905.6) | 216.7 | 1,146.6 | (702.3) | |||
Ending Balance Shares, Issued at Sep. 26, 2020 | 63.6 | 14.4 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (2) | ||||||||
Beginning Balance at Mar. 28, 2020 | (364) | $ 0.6 | $ (916.4) | 216.9 | 1,054.7 | (719.8) | |||
Beginning Balance Shares, Issued at Mar. 28, 2020 | 63.6 | 14.6 | |||||||
Net income (loss) | 63.8 | 63.8 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 16.3 | 16.3 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (0.1) | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1.6 | $ 6.8 | (1.7) | (3.5) | |||||
Ending Balance at Jun. 27, 2020 | (282.3) | $ 0.6 | $ (909.6) | 215.2 | 1,115 | (703.5) | |||
Ending Balance Shares, Issued at Jun. 27, 2020 | 63.6 | 14.5 | |||||||
Net income (loss) | 34.4 | 34.4 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 1.2 | 1.2 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (0.1) | ||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2.7 | $ 4 | 1.5 | (2.8) | |||||
Ending Balance at Sep. 26, 2020 | (244) | $ 0.6 | $ (905.6) | $ 216.7 | $ 1,146.6 | $ (702.3) | |||
Ending Balance Shares, Issued at Sep. 26, 2020 | 63.6 | 14.4 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ (0.6) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.27 | $ 0.27 | $ 0.27 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Operating Activities | ||
Net income (loss) | $ 90.4 | $ 84.1 |
Depreciation and amortization | 33.9 | 41.4 |
Unrealized foreign exchange loss (gain) | 0.7 | (0.6) |
Equity compensation | 6.8 | 7.5 |
Amortization of deferred debt costs | 1.4 | 0.5 |
(Gain) loss on disposal of assets | 18.8 | (11.1) |
Provision for bad debts | 11.9 | 24 |
(Gain) on debt extinguishment | (49.9) | 0 |
Write-down of inventories | 9.4 | 8.3 |
Non-cash impact of impairment costs | 0 | 19.7 |
Net change in deferred income taxes | (7.8) | 3.6 |
Changes in assets and liabilities: | ||
Accounts receivable | (32.1) | (15.4) |
Inventories | 5.3 | (16.5) |
Non-trade amounts receivable | 2 | (5.2) |
Prepaid expenses | (6.4) | (6.6) |
Other assets | (2.4) | (9) |
Accounts payable and accrued liabilities | 30.9 | (49.8) |
Income taxes payable | 3.7 | (50.5) |
Other liabilities | (4.4) | (3.4) |
Net cash impact from hedging activity | (0.6) | (1.5) |
Other | 0.2 | 0 |
Net cash provided by (used in) operating activities | 111.8 | 19.5 |
Investing Activities | ||
Capital expenditures | (20.7) | (44) |
Proceeds from disposal of property, plant and equipment | 16.7 | 20.4 |
Net cash provided by (used in) investing activities | (4) | (23.6) |
Financing Activities | ||
Common stock cash dividends paid | 0 | (60.5) |
Common stock repurchase | (0.2) | (0.8) |
Senior notes repayment | (163.9) | 0 |
Finance lease repayments | (0.3) | (1.3) |
Net increase (decrease) in short-term debt | (100.3) | (46.7) |
Payments of Debt Issuance Costs | (2) | (2.2) |
Net cash provided by (used in) financing activities | (66.1) | (18.1) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (6.5) | (3.3) |
Net change in cash, cash equivalents and restricted cash | 35.2 | (25.5) |
Cash, cash equivalents and restricted cash at beginning of year | 126.1 | 151.9 |
Cash, cash equivalents and restricted cash at end of period | $ 161.3 | $ 126.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Basis of Presentation The 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 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 financial statements prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, these Consolidated Financial Statements and related notes should be read in conjunction with the audited 2019 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 28, 2019. 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 sales and expenses during the reporting period. Actual results could differ materially from these estimates. For the third quarter ended September 26, 2020, the impact of the decline in business activity brought about by the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of the Company's estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change materially in future periods. Liquidity and COVID-19 COVID-19 has been declared by the World Health Organization to be a “pandemic,” has spread to many countries and is impacting worldwide economic activity. Many governments have implemented policies intended to stop or slow the further spread of the disease, such as shelter-in-place orders, resulting in the temporary closure of schools and non-essential businesses, and these measures may remain in place for a significant period of time. A top priority for the Company as it navigates through the global COVID-19 pandemic is the safety of its employees and their families, sales force and consumers, and to mitigate the impact of the pandemic on its operations and financial results. The Company will continue to proactively respond to the situation and may take further actions that alter the Company’s business operations as may be required by governmental authorities, or that the Company determines are in the best interests of its employees, sales force and consumers. In order to ensure safety and protect the health of the employees, and to comply with applicable government directives, the Company has modified its business practices to allow its employees to work remotely from home wherever possible, incorporate virtual meetings and restrict all non-essential employee travel. Pursuant to ASC 205, Presentation of Financial Statements, the Company is required to and does evaluate at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the Consolidated Financial Statements are issued. As of September 26, 2020 the Company has $380.2 million of Senior Notes that will mature on June 1, 2021, which is within one year of the date that the Consolidated Financial Statements are issued for the third quarter ended September 26, 2020. Based on the definitions in the relevant accounting standards, management has determined that this condition raises substantial doubt about the Company’s ability to continue as a going concern. This evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. Management may evaluate the mitigating effect of its plans to determine if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. The Company expects to continue to address its outstanding current indebtedness through open-market purchases, tender offers, exchange offers of debt for debt, cash or equity, refinancing transactions or otherwise (“debt refinancing”). The Company has successfully retired $98.7 million and $121.1 million of Senior Notes at a discount to par during the second and third quarters of 2020, respectively. In addition to the expected debt refinancing, the Company believes that its improved profitability and revenue growth through the Turnaround Plan (as defined in Note 6: Re-engineering Charges), together with the anticipated proceeds from the sale of real estate and other non-core assets, and its forecasted availability under its Credit Agreement, will enable the Company to meet its future debt obligations. However, as the debt refinancing and sale of non-core assets is conditional upon the execution of agreements with new or existing investors or the execution of sales agreements with third parties, which are considered outside of the Company’s control, the debt refinancing and sales of assets are not considered probable until such time as they are completed. The Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. During the third quarter ended September 26, 2020, the Company generated $60.7 million of cash flows from operating activities, net of investing activities, through reductions in discretionary spending, revisiting investment strategies, improvements in working capital including inventory reductions, and reducing payroll costs, including through organizational redesign, employee furloughs, and permanent reductions in employee headcount. As of September 26, 2020, the Company is in compliance with its financial covenants under its Credit Agreement, and the Company believes that it will continue to be in compliance with its financial covenants under its Credit Agreement. If the impact of COVID-19 is more severe than currently forecasted this may impact the Company’s compliance with its financial covenants which could have a material adverse effect on the Company. See Note 16: Debt to the Consolidated Financial Statements for further discussion of the impact of an Event of Default. New Accounting Pronouncements Standards Recently Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance at the beginning of the second quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, an amendment to existing guidance on the accounting for implementation, setup, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor that is a service contract. Under the amendment, the requirement for capitalizing implementation costs incurred in a hosting environment that is a service contract is aligned with the requirements for capitalizing implementation costs incurred for an internal-use software license. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”, an amendment to existing guidance on disclosure requirements on fair value measurement as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements. Under this amendment, certain disclosure requirements for fair value measurement were eliminated, modified and added. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have any impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, an amendment to existing guidance for the measurement of credit losses on financial instruments and subsequent updates to that amendment. This guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when recording credit loss estimates. The new standard is effective for fiscal years and interim periods beginning after December 15, 2019. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, an optional guidance for a limited period of time to ease the transition from the London interbank offered rate (“LIBOR”) to an alternative reference rate. The ASU intends to address certain concerns relating to accounting for contract modifications and hedge accounting. These optional expedients and exceptions to applying GAAP, assuming certain criteria are met, are allowed through December 31, 2022. The amendments should be applied on a prospective basis. The Company continues to evaluate the impact of the potential adoption of this amendment on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans”, an amendment to existing guidance on disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. Under the amendment, the entity is required to disclose the weighted-average interest crediting rates used, reasons for significant gains and |
Revenue Recognition and Deferre
Revenue Recognition and Deferred Revenue | 9 Months Ended |
Sep. 26, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue | Note 2: Revenue Recognition The Company defines a contract, for revenue recognition purposes, 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 and net of expected returns which is estimated using historical return patterns and current expectation of future returns. The Company elected to account for shipping and handling activities that occur after the customer has obtained control of the product as an activity to fulfill the promise to transfer the product rather than as an additional promised service. Generally, payment is either received in advance or in a relatively short period of time following shipment. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations that are not yet met. These obligations generally relate to product awards to be subsequently fulfilled. When that is the case, revenue is deferred until each performance obligation is met. Deferred revenue is recorded in the accrued liabilities line item in the Consolidated Balance Sheets. Deferred revenue balance which was primarily related to payments received in advance for orders not yet shipped was as follows: (In millions) September 26, December 28, Deferred revenue $ 36.1 $ 3.2 |
Distribution Costs
Distribution Costs | 9 Months Ended |
Sep. 26, 2020 | |
Shipping and Handling Costs [Abstract] | |
Shipping and Handling Costs | Note 3: Distribution 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 expenses. 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. Distribution costs were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Distribution costs $ 41.0 $ 30.1 $ 103.5 $ 95.7 |
Promotional Costs
Promotional Costs | 9 Months Ended |
Sep. 26, 2020 | |
Promotional Costs [Abstract] | |
Promotional Costs | Note 4: 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 other activities, ancillary to the Company’s business, but considered separate and distinct services from sales, which are measured by defined group/team 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 delivery, sales and administrative 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 costs were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Promotional costs $ 68.6 $ 64.7 $ 181.1 $ 214.9 |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments | 9 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | Note 5: Stock-based Compensation Stock option activity for 2020 is summarized in the following table: Shares Weighted Aggregate intrinsic value (in millions) Outstanding at December 28, 2019 3,340,739 $ 56.28 Granted 1,000,000 2.61 Expired / Forfeited (94,186) 45.73 Outstanding at September 26, 2020 4,246,553 $ 43.88 $ 20.0 Exercisable at September 26, 2020 2,877,162 $ 57.82 $ — The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2020 is summarized in the following table: Shares Weighted December 28, 2019 528,289 $ 28.82 Time-vested shares granted 2,740,985 4.46 Market-vested shares granted 1,715,566 1.70 Performance shares granted 743,770 3.01 Performance share adjustments 305,094 2.38 Vested (134,543) 19.75 Forfeited (716,377) 12.65 September 26, 2020 5,182,784 $ 4.17 Stock-based compensation for the third quarter ended September 26, 2020 and September 28, 2019 were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Stock options $ 0.3 $ 0.6 $ 0.8 $ 1.8 Time, performance and market vested share awards 2.7 2.4 6.0 5.7 Unrecognized stock-based compensation expense and the weighted average years to recognize the unrecognized stock-based compensation was as follows: (In millions) September 26, Unrecognized stock-based compensation expense $ 16.0 Weighted average years to recognize the unrecognized stock-based compensation 2.2 years 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. Shares retained to fund withholding taxes and the value of shares retained to fund withholding taxes was as follows: 39 weeks ended (In millions) September 26, September 28, Shares retained to fund withholding taxes 11,187 25,947 Value of shares retained to fund withholding taxes $ 0.2 $ 0.8 |
Re-engineering Costs
Re-engineering Costs | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring Charges [Abstract] | |
Re-engineering Costs | Note 6: Re-engineering Charges Re-engineering charges are mainly related to the transformation program, which was announced in January 2019 and re-assessed in December 2019 (collectively the “Turnaround Plan”) and the July 2017 revitalization program (“2017 program”). The Company continually reviews its business models and operating methods for opportunities to increase efficiencies and/or align costs with business performance. The Turnaround Plan charges primarily related to severance costs and outside consulting services. The 2017 program charges primarily related to severance and other costs. The re-engineering charges were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Turnaround plan $ 2.7 $ 4.6 $ 28.4 $ 10.0 2017 program 0.5 1.1 1.9 3.3 Other — 1.8 — 2.6 Total re-engineering charges $ 3.2 $ 7.5 $ 30.3 $ 15.9 Turnaround Plan Re-engineering charges in the third quarter of 2020 for the Turnaround Plan were $2.7 million, primarily related to the South America segment. In the third quarters of 2019 the charges were $1.4 million and $3.2 million, for the Asia Pacific and Europe segment, respectively. Charges for the year-to-date periods were: 39 weeks ended (In millions) September 26, September 28, Asia Pacific $ 4.0 $ 3.9 Europe 12.1 6.1 North America 1.4 — South America 3.1 — Corporate 7.8 — Total turnaround plan charges $ 28.4 $ 10.0 The balances included in accrued liabilities related to re-engineering charges for the Turnaround Plan were: (In millions) September 26, December 28, Beginning of the year balance $ 12.9 $ — Provision 28.4 26.4 Adjustments and other charges 1.0 (1.7) Cash expenditures: Severance (22.6) (0.9) Other (1.4) (10.9) End of period balance $ 18.3 $ 12.9 2017 Program The re-engineering charges related to the 2017 program were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Asia Pacific $ — $ (0.1) $ — $ 0.6 Europe (0.3) 0.9 1.1 1.8 North America 0.8 0.3 0.8 0.9 Total 2017 program charges $ 0.5 $ 1.1 $ 1.9 $ 3.3 The balances included in accrued liabilities related to re-engineering charges for the 2017 program were: (In millions) September 26, December 28, Beginning of the year balance $ 3.1 $ 23.3 Provision 1.9 4.5 Adjustments and other charges (0.7) (0.3) Cash expenditures: Severance (1.8) (20.3) Other (1.5) (3.6) Currency translation adjustment — (0.5) End of period balance $ 1.0 $ 3.1 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7: Income Taxes The effective tax rate was: 13 weeks ended 39 weeks ended September 26, September 28, September 26, September 28, Effective tax rate 40.4 % 43.9 % 31.5 % 34.1 % The change in effective tax rate in the third quarters of 2020 and 2019, respectively, and in the respective year-to-date periods was impacted by: • a favorable treatment of gain on debt extinguishment sheltered by a mixture of previously valued foreign tax credits and global intangible low-taxed income (“GILTI”) tax credits, partially offset by: • a change in jurisdictional mix of earnings • an unfavorable adjustment related to a continued limitation of interest expense deductions requiring a valuation allowance Accrual for uncertain tax positions and interest and penalties related to uncertain tax positions were: (In millions) September 26, December 28, Accrual for uncertain tax positions $ 13.5 $ 13.5 Interest and penalties related to uncertain tax positions $ 0.7 $ 4.0 The Company estimates that as of September 26, 2020, approximately $13.2 million of the unrecognized tax benefits, if recognized, would impact the effective tax rate. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently under examination or contesting proposed adjustments by various state and international tax authorities for fiscal years ranging from 2004 through 2018. It is reasonably possible that there could be a significant decrease or increase to the unrecognized tax benefit balance during the course of the next twelve months as these examinations continue, other tax examinations commence or various statutes of limitations expire. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment of valuation allowances against certain existing deferred tax assets. An estimate of the range of possible changes cannot be made for remaining unrecognized tax benefits because of the significant number of jurisdictions in which the Company does business and the number of open tax periods. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by the President of the United States on March 27, 2020. This legislation was aimed at providing relief for individuals and businesses impacted by the Coronavirus outbreak. The CARES Act included several significant business tax provisions that, among other things, eliminated the taxable income limit for certain net operating losses (NOL) and allowed businesses to carry back NOLs arising in 2018, 2019, and 2020 to the five prior tax years, suspended the excess business loss rules, accelerated refunds of previously generated corporate Alternative Minimum Tax credits, loosened the business interest limitation under section 163(j) from 30 percent to 50 percent, allowed for deferral of payroll taxes and established an employer retention credit. While the Company was able to claim employee retention credits, payroll tax deferrals and applied for a refund of its previous alternative minimum tax credits, the overall impact from the CARES Act was not material. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Note 8: Earnings Per Share Basic earnings per share is calculated by dividing net income (loss) by the weighted-average shares outstanding. Diluted earnings per share is calculated by also considering the impact of dilutive securities such as options, restricted shares, restricted stock units and performance share units on both net income and the weighted-average shares outstanding. The elements of the earnings per share computations were as follows: 13 weeks ended 39 weeks ended (In millions, except per share amounts) September 26, September 28, September 26, September 28, Net income (loss) $ 34.4 $ 7.8 $ 90.4 $ 84.1 Weighted-average basic shares outstanding 49.1 48.8 49.0 48.7 Effect of dilutive securities 4.0 0.1 2.5 0.2 Weighted-average diluted shares 53.1 48.9 51.5 48.9 Basic earnings per share $ 0.70 $ 0.16 $ 1.84 $ 1.73 Diluted earnings per share $ 0.65 $ 0.16 $ 1.76 $ 1.72 Excluded anti-dilutive shares 3.3 3.9 4.0 3.9 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 26, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 9: Accumulated Other Comprehensive Loss The change in accumulated other comprehensive loss was as follows: (In millions, net of tax) Foreign Currency Items Cash Flow Hedges Pension and Other Post-retirement Items Total Balance at December 28, 2019 $ (600.2) $ (2.4) $ (35.7) $ (638.3) Other comprehensive income (loss) before reclassifications (69.8) 6.0 1.0 (62.8) Amounts reclassified from accumulated other comprehensive income (loss) — (2.8) 1.6 (1.2) Other comprehensive income (loss) (69.8) 3.2 2.6 (64.0) Balance at September 26, 2020 $ (670.0) $ 0.8 $ (33.1) $ (702.3) (In millions, net of tax) Foreign Currency Items Cash Flow Hedges Pension and Other Post-retirement Items Total Balance at December 29, 2018 $ (579.1) $ 1.7 $ (24.7) $ (602.1) Cumulative effect of change in accounting principle (3.8) (1.2) — (5.0) Other comprehensive income (loss) before reclassifications (6.8) (2.8) 0.6 (9.0) Amounts reclassified from accumulated other comprehensive income (loss) — 1.5 (0.5) 1.0 Other comprehensive income (loss) (6.8) (1.3) 0.1 (8.0) Balance at September 28, 2019 $ (589.7) $ (0.8) $ (24.6) $ (615.1) Amounts reclassified from accumulated other comprehensive income (loss) that related to cash flow hedges consisted of: Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Cash Flow Hedges 39 weeks ended (In millions) September 26, September 28, Cash flow hedges (gain) losses $ (3.5) $ 2.1 Tax (benefit) provision 0.7 (0.6) Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges $ (2.8) $ 1.5 Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items consisted of: Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Pension And Other Post-Retirement Items 39 weeks ended (In millions) September 26, September 28, Prior service costs/(benefit) $ (0.2) $ (0.8) Settlements (gains) losses 1.2 — Actuarial (gains) losses 1.4 — Tax (benefit) provision (0.8) 0.3 $ 1.6 $ (0.5) |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 9 Months Ended |
Sep. 26, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure | Note 10: Cash, Cash equivalents and Restricted Cash The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents include time deposits, certificates of deposit or similar instruments. Any funds that the company is legally restricted to withdraw, including compensating balances are classified as restricted cash. Restricted cash is recorded in prepaid expenses and other current assets and in the long-term other assets balance sheet line items. A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents and restricted cash at end of period in the Consolidated Statements of Cash Flows is as follows: (In millions) September 26, December 28, Cash and cash equivalents $ 148.8 $ 123.2 Restricted cash 12.5 2.9 Cash, cash equivalents and restricted cash at end of period $ 161.3 $ 126.1 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Note 11: Accounts Receivable The accounts receivable and allowance for bad debts balance was as follows: (In millions) September 26, December 28, Accounts receivable $ 169.9 $ 174.3 Allowance for bad debts (40.9) (63.6) Accounts receivable, net $ 129.0 $ 110.7 |
Inventories
Inventories | 9 Months Ended |
Sep. 26, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Note 12: Inventories Inventories balance net of any inventory allowance was as follows: (In millions) September 26, December 28, Finished goods $ 160.9 $ 197.1 Work in process 27.3 22.4 Raw materials and supplies 29.0 25.7 Total inventories $ 217.2 $ 245.2 |
Long-Term Receivables
Long-Term Receivables | 9 Months Ended |
Sep. 26, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance For Long-Term Receivables | Note 13: Long-Term Receivables As of September 26, 2020, $20.7 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 was as follows: (In millions) Balance at December 28, 2019 $ 13.9 Write-offs (3.5) Provision and reclassifications 9.1 Currency translation adjustment 0.5 Balance at September 26, 2020 $ 20.0 |
Goodwill, Intangibles, and Trad
Goodwill, Intangibles, and Tradenames | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangibles, and Tradenames | Note 14: Goodwill, Intangibles and Tradenames |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 26, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Note 15: Derivative Financial 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 investment hedge. Fair Value Hedges 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, as of the beginning of 2019, the Company made the accounting policy election in accordance with ASU 2017-12 to exclude forward points and record their impact in the same income statement line item that is used to present the earnings effect of the hedged item for 2019, Other expense (income), net. Pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Forward points gain (loss) on fair value hedges $ 2.8 $ 5.1 $ 15.4 $ 13.2 Cash Flow Hedges The Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as cash flow hedges. The majority of cash flow hedge contracts that the Company enters into relate to inventory purchases. At initiation, the Company’s cash flow hedge contracts are generally for periods ranging from one month to fifteen months. The effective portion of the gain or loss on the open hedging instrument is recorded in other comprehensive income and is reclassified into earnings when settled through the same line item as the transaction being hedged. 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 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 made an accounting policy change as of the beginning of 2019 to include forward points in the assessment of effectiveness for cash flow hedges causing the impact from forward points to be recorded as part of other comprehensive income compared to interest expense as it previously had been recorded. Based on the interest expense incurred for open cash flow hedges as of December 30, 2018, the Company recorded an adjustment of $1.2 million, net of taxes, to accumulated comprehensive income and retained earnings to reflect this accounting policy change. There was an immaterial impact from forward points recorded in other comprehensive income for activity related to the third quarters and year-to-date periods of 2020 and 2019. Manufacturing variances that will be capitalized and amortized over actual months of inventory turns related to the forward point impact from the settlement of cash flow hedges were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Forward points gain (loss) from settlement of cash flow hedges $ (0.6) $ (1.0) $ (2.0) $ (3.1) Net Investment Hedges The Company uses derivative 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 investment 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 . 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 made an accounting policy change as of the beginning of 2019 to include forward points in the assessment of effectiveness for net investment hedges causing the impact from forward points to be recorded as part of other comprehensive income compared to interest expense as it previously had been recorded. The impact of forward points is being recorded in other comprehensive income and will remain there indefinitely since that is where the gains and losses on hedges of net equity are recorded. Based on the interest expense associated with forward points incurred for open net investment hedges as of December 30, 2018, the Company recorded an adjustment of $3.8 million, net of taxes, to accumulated comprehensive income to reflect this accounting policy change. The impact related to forward points on hedges of net equity investment is recorded as a component of other comprehensive income. Changes in fair value, net of tax, excluding any ineffective portion of the hedges recorded in other comprehensive income and the pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Fair value gain (loss) recorded in other comprehensive income $ (5.6) $ 5.3 $ 6.9 $ (9.9) Forward points gain (loss) recorded in other comprehensive income $ (3.4) $ (5.2) $ (16.2) $ (14.1) Notional Value The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. (In millions) September 26, December 28, 2019 Notional value of forward contracts to purchase currencies $ 143.0 $ 137.7 Notional value of forward contracts to sell currencies $ 141.9 $ 143.5 As of September 26, 2020, the notional values of the largest positions outstanding were to purchase $58.4 million of South Korean Won, and to sell $83.4 million of Euros and $32.8 million of United States Dollars. Fair Value Measurement The following table summarizes the Company’s derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company’s financial position as of September 26, 2020 and December 28, 2019. 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 Balance sheet Sep 26, Dec 28, Balance sheet Sep 26, Dec 28, Foreign exchange contracts Non-trade amounts receivable $ 7.4 $ 16.0 Accrued liabilities $ 6.0 $ 19.8 The following table summarizes the impact on the results of operations for the third quarters of 2020 and 2019 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions: Amount of gain (loss) recognized Amount of gain (loss) recognized 13 weeks ended 13 weeks ended Derivatives designated as fair value hedges (in millions) Location of gain (loss) recognized in income on derivatives September 26, September 28, Location of gain (loss) recognized in income on related hedged items September 26, September 28, Foreign exchange contracts Other expense $ 1.4 $ (8.8) Other expense $ (1.4) $ 9.0 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the third quarters of 2020 and 2019: Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in Location of gain (loss) reclassified from accumulated OCI into income Amount of gain (loss) reclassified from accumulated OCI into income Cash flow hedging relationships 2020 2019 2020 2019 Foreign exchange contracts $ (0.4) $ (0.1) Cost of products sold $ 1.0 $ (1.0) Net investment hedging relationships Foreign exchange contracts $ (4.1) $ 3.4 Euro denominated debt $ (3.1) $ 3.3 The following table summarizes the impact on the results of operations for the year-to-date periods ended September 26, 2020 and September 28, 2019 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions: Amount of gain (loss) recognized Amount of gain (loss) recognized 39 weeks ended 39 weeks ended Derivatives designated as fair value hedges (in millions) Location of gain (loss) recognized in income on derivatives September 26, September 28, Location of gain (loss) recognized in income on related hedged items September 26, September 28, Foreign exchange contracts Other expense $ (31.6) $ 0.2 Other expense $ 33.6 $ — The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended September 26, 2020 and September 28, 2019: Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in Location of gain (loss) reclassified from accumulated OCI into income Amount of gain (loss) reclassified from accumulated OCI into income Cash flow hedging relationships 2020 2019 2020 2019 Foreign exchange contracts $ 6.7 $ (3.7) Cost of products sold $ 3.5 $ (2.1) Net investment hedging relationships Foreign exchange contracts $ 14.2 $ (16.1) Euro denominated debt $ (5.3) $ 3.2 |
Debt
Debt | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 16: Debt The debt portfolio consisted of: (In millions) September 26, December 28, 2019 Senior notes (face value) $ 380.2 $ 600.0 Credit agreement (a) 384.1 272.0 Finance leases 3.6 3.6 Other 0.2 (0.2) Total debt $ 768.1 $ 875.4 Short-term borrowings and current portion of long-term debt and finance lease obligations $ 765.9 $ 273.2 Long-term debt and finance lease obligations 2.2 602.2 Total debt $ 768.1 $ 875.4 ____________________ (a) $171.1 million and $174.9 million denominated in Euro as of September 26, 2020 and December 28, 2019, respectively. Credit Agreement On March 29, 2019, the Company and its wholly owned subsidiaries, Tupperware Nederland B.V., Administradora Dart, S. de R.L. de C.V., and Tupperware Brands Asia Pacific Pte. Ltd. (the “Subsidiary Borrowers”), amended and restated their multicurrency Credit Agreement (as further amended via an Amendment No. 1 dated August 28, 2019, the “Credit Agreement”), with JPMorgan Chase Bank, N.A. as administrative agent (the “Administrative Agent”), swingline lender, joint lead arranger and joint bookrunner, and Credit Agricole Corporate and Investment Bank, HSBC Securities (USA) Inc., Mizuho Bank, Ltd. and Wells Fargo Securities, LLC, as syndication agents, joint lead arrangers and joint bookrunners. The Credit Agreement replaces the credit agreement dated September 11, 2013, and as amended (the “Old Credit Agreement”), and, other than an increased aggregate amount that may be borrowed, an improvement in the consolidated leverage ratio covenant and a slightly more favorable commitment fee rate, has terms and conditions similar to that of the Old Credit Agreement. The Credit Agreement makes available to the Company and the Subsidiary Borrowers a committed credit facility in an aggregate amount of $650.0 million (the “Facility Amount”). The Credit Agreement provides (i) a revolving credit facility, available up to the full amount of the Facility Amount, (ii) a letter of credit facility, available up to $50.0 million of the Facility Amount, and (iii) a swingline facility, available up to $100.0 million of the Facility Amount. Each of such facilities is fully available to the Company and the Facility Amount is available to the Subsidiary Borrowers up to an aggregate amount not to exceed $325.0 million. With the agreement of its lenders, the Company is permitted to increase, on up to three occasions, the Facility Amount by a total of up to $200.0 million (for a maximum aggregate Facility Amount of $850.0 million), subject to certain conditions. As of September 26, 2020, the Company had total borrowings of $384.1 million outstanding under its Credit Agreement, with $171.1 million of that amount denominated in Euro. Loans made under the Credit Agreement will be composed of (i) “Eurocurrency Borrowings”, bearing interest determined in reference to the LIBOR or the EURIBOR rate for the applicable currency and interest period, plus a margin, and/or (ii) “ABR Borrowings”, bearing interest at the sum of (A) the greatest of (x) the Prime Rate, (y) the NYFRB rate plus 0.5 percent, and (z) adjusted LIBOR on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1 percent, and (B) a margin. The applicable margin in each case will be determined by reference to a pricing schedule and will be based upon the better for the Company of (a) the Consolidated Leverage Ratio (computed as consolidated funded indebtedness of the Company and its subsidiaries to the consolidated EBITDA (as defined in the Credit Agreement) of the Company and its subsidiaries for the four fiscal quarters then most recently ended) for the fiscal quarter referred to in the quarterly or annual financial statements most recently delivered, or (b) the Company’s then existing long-term debt securities rating by Moody’s Investor Service, Inc. or Standard and Poor’s Financial Services, Inc. Under the Credit Agreement, the applicable margin for ABR Borrowings ranges from 0.375 percent to 0.875 percent, the applicable margin for Eurocurrency Borrowings ranges from 1.375 percent to 1.875 percent, and the applicable margin for the commitment fee ranges from 0.150 percent to 0.275 percent. Loans made under the swingline facility will bear interest, if denominated in U.S. Dollars, at the same rate as an ABR Borrowing and, if denominated in another currency, at the same rate as a Eurocurrency Borrowing. As of September 26, 2020, the Company had a weighted average interest rate of 2.0 percent with a base rate spread of 188 basis points on LIBOR-based borrowings under the Credit Agreement that has a final maturity date of March 29, 2024. Similar to the Old Credit Agreement, the Credit Agreement contains customary covenants that, among other things, limit the ability of the Company’s subsidiaries to incur indebtedness and limit the ability of the Company and its subsidiaries to create liens on and sell assets, engage in certain liquidations or dissolutions, engage in certain mergers or consolidations, or change lines of business. These covenants are subject to significant exceptions and qualifications. On February 28, 2020, the Company amended the Credit Agreement (the “Amendment”) in order to modify certain provisions, including the consolidated leverage ratio covenant. Previously, the Company had to maintain, at specified measurement periods, a Consolidated Leverage Ratio that was not greater than or equal to 3.75 to 1.00. Following the Amendment, the Company is required to maintain at the last day of each quarterly measurement period a Consolidated Leverage Ratio not greater than or equal to the ratio as set forth below opposite the period that includes such day (or, if such day does not end on the last day of the calendar quarter, that includes the last day of the calendar quarter that is nearest to such day): Period Consolidated Leverage Ratio From the amendment effective date to and including June 27, 2020 5.75 to 1.00 September 26, 2020 5.25 to 1.00 December 26, 2020 4.50 to 1.00 March 27, 2021 4.00 to 1.00 June 26, 2021 and thereafter 3.75 to 1.00 Under the Credit Agreement and consistent with the Old Credit Agreement, Dart Industries Inc. (the “Guarantor”) unconditionally guarantees all obligations and liabilities of the Company and the Subsidiary Borrowers relating to the Credit Agreement, supported by a security interest in certain “Tupperware” trademarks and service marks. The Amendment eliminated the requirement that a Non-Investment Grade Ratings Event, as defined in the Credit Agreement, must occur before the Company is required to cause the Additional Guarantee and Collateral Requirement, as defined in the Credit Agreement, to be satisfied. Pursuant to the Amendment, the Company is required to cause certain of its domestic subsidiaries to become guarantors and the Company and certain of its domestic subsidiaries are required to pledge additional collateral (the “Additional Guarantee and Collateral”). For purposes of the Credit Agreement, consolidated EBITDA represents earnings before interest, income taxes, depreciation and amortization, as adjusted to exclude unusual, non-recurring gains as well as non-cash charges and certain other items. The Company is in compliance with the financial covenants in the Credit Agreement. The Credit Agreement was amended to prevent the Company from exceeding the Consolidated Leverage Ratio for the four fiscal quarters ending in March 2020, and continuing through the calculation for the four fiscal quarters ending in March 2021. If the Company had exceeded the Consolidated Leverage Ratio, this could have constituted an Event of Default, potentially resulting in a cross-default under cross-default provisions with respect to other of the Company’s debt obligations, giving the lenders the ability to terminate the revolving commitments, accelerate outstanding amounts under the Credit Agreement, exercise certain remedies relating to the collateral securing the Credit Agreement and require the Company to post cash collateral for all outstanding letters of credit. In addition to the relief provided in the Amendment, the Company has reduced certain operating expenses beginning in 2020 and could use available cash, including repatriating cash held outside of the United States, to make debt repayments to lower its Consolidated Leverage Ratio. The Company routinely increases its revolver borrowings under the Credit Agreement during each quarter to fund operating, investing and financing activities and uses cash available at the end of each quarter to temporarily reduce borrowing levels. As a result, the Company incurs more interest expense and has higher foreign exchange exposure on the value of its cash and debt during each quarter than would relate solely to the quarter end balances. At September 26, 2020, the Company had $299.6 million of unused lines of credit, including $259.3 million under the committed, secured Credit Agreement, and $40.3 million available under various uncommitted lines around the world. Senior Notes The Company currently has outstanding $380.2 million aggregate principal amount of 4.75% senior notes (the “Senior Notes”). The Senior Notes will mature on June 1, 2021. The Notes were issued under an indenture (the “Indenture”), by and among the Company, the Guarantor and Wells Fargo Bank, N.A., as trustee. As security for its obligations under the guarantee of the Senior Notes, the Guarantor has granted a security interest in certain “Tupperware” trademarks and service marks. As security for its obligations under the guarantee of the Credit Agreement, the Guarantor has granted a security interest in those certain “Tupperware” trademarks and service marks as well. The Indenture includes, among others, covenants that limit the ability of the Company and its subsidiaries to (i) incur indebtedness secured by liens on certain real property, (ii) enter into certain sale and leaseback transactions, (iii) with respect to the Company only, consolidate or merge with another entity, or sell or transfer all or substantially all of its properties and assets and (iv) sell the capital stock of the Guarantor or sell or transfer all or substantially all of its assets or properties . See Note 8: Financing Obligations to the Consolidated Financial Statements in Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 28, 2019 for further details regarding the Senior Notes. Whether the Company will be able to repay or refinance the Senior Notes will depend on economic, financial, competitive and other factors that may be beyond its control, including the COVID-19 pandemic, and on the Company’s financial performance at the time. The COVID-19 pandemic and measures implemented to slow the spread of COVID-19 may negatively impact the Company’s ability to repay or refinance the Senior Notes. The extent to which the COVID-19 pandemic ultimately impacts the Company’s ability to repay or refinance the Senior Notes will depend on future developments, which are highly uncertain and cannot be predicted with certainty. Any refinancing of the Senior Notes may be at a higher interest rate and may require the Company to comply with additional covenants and obligations, which could further restrict the Company’s business operations. If the Company is unable to repay or refinance the Senior Notes, the holders of the Senior Notes may pursue certain remedies relating to the collateral securing the guaranty of the Senior Notes or pursue other remedies, in each case in accordance with the Indenture and the documents relating to such collateral, all of which could have a material adverse effect on the Company. Senior Notes Repurchase During the third quarter and year-to-date periods of 2020 the Company retired Senior Notes through tender offers and open-market purchases and recorded the pre-tax gain on debt extinguishment in the Other expense (income), net line item. Any deferred debt issuance costs related to the purchased Senior Notes were expensed and recorded in the interest expense line item. The details of these Senior Notes were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 26, Senior notes retired (face value) $ 121.1 $ 219.8 Less: Cash paid $ 107.5 $ 163.9 Less: Costs incurred $ 3.8 $ 6.0 Gain on debt extinguishment (pre-tax) $ 9.8 $ 49.9 Earnings per share from gain on debt extinguishment $ 0.20 $ 1.02 |
Leases
Leases | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Leases Disclosure | Note 17: Leases The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one five Certain lease agreements held by the Company include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Components of lease expense were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Operating lease cost (a) (b) $ 10.3 $ 12.7 $ 32.7 $ 38.3 Amortization of right-of-use assets (a) 0.2 0.2 0.6 0.7 Interest on lease liabilities (c) — 0.1 0.1 0.2 Total finance lease cost $ 0.2 $ 0.3 $ 0.7 $ 0.9 ____________________ (a) Included in delivery, sales and administrative expense and cost of products sold. (b) Includes immaterial amounts related to short-term rent expense and variable rent expense. (c) Included in interest expense. Supplemental cash flow information related to leases is as follows: 39 weeks ended (In millions) September 26, September 28, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (29.2) $ (37.2) Operating cash flows from finance leases $ — $ (0.2) Financing cash flows from finance leases $ (0.3) $ (1.3) Leased assets obtained in exchange for new operating lease liabilities $ 9.2 $ 11.0 Supplemental balance sheet information related to leases is as follows: (In millions, except lease term and discount rate) September 26, December 28, Operating Leases Operating lease assets $ 75.5 $ 84.1 Accrued liabilities $ 28.6 $ 29.2 Operating lease liabilities 48.5 56.0 Total Operating lease liabilities $ 77.1 $ 85.2 Finance Leases Property, plant and equipment, at cost $ 18.9 $ 17.9 Accumulated amortization (11.5) (10.3) Property, plant and equipment, net $ 7.4 $ 7.6 Current portion of finance lease obligations $ 1.4 $ 1.3 Long-term finance lease obligations 2.2 2.3 Total Finance lease liabilities $ 3.6 $ 3.6 Weighted Average Remaining Lease Term Operating Leases 4.2 years 4.5 years Finance Leases 2.4 years 2.8 years Weighted Average Discount Rate (a) Operating Leases 4.8 % 5.2 % Finance Leases 5.1 % 5.1 % _________________________ (a) Calculated using Company's incremental borrowing rate. Maturities of lease liabilities as of September 26, 2020 and December 28, 2019 were as follows: September 26, 2020 December 28, 2019 (In millions) Operating Leases Finance Leases Operating Leases Finance Leases 2020 $ 9.2 $ 1.2 $ 32.8 $ 1.4 2021 28.7 1.5 22.6 1.4 2022 16.5 1.1 13.0 1.0 2023 10.2 — 7.5 — 2024 6.7 — 5.6 — Thereafter 13.2 — 13.0 — Total undiscounted lease liability $ 84.5 $ 3.8 $ 94.5 $ 3.8 Less imputed interest (7.4) (0.2) (9.3) (0.2) Total $ 77.1 $ 3.6 $ 85.2 $ 3.6 As of September 26, 2020, the Company had an immaterial amount of operating leases that had not yet commenced. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 26, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Note 18: Retirement Benefit Plans Components of net periodic (benefit) cost for the third quarters ended September 26, 2020 and September 28, 2019 were as follows: 13 weeks ended Pension benefits Post-retirement benefits (In millions) September 26, September 28, September 26, September 28, Service cost $ 2.1 $ 2.1 $ 0.1 $ — Interest cost 0.9 1.9 0.1 0.1 Expected return on plan assets (1.0) (1.0) — — Settlement/curtailment 0.8 0.1 — — Net amortization 0.4 0.1 — (0.3) Net periodic (benefit) cost $ 3.2 $ 3.2 $ 0.2 $ (0.2) 39 weeks ended Pension benefits Post-retirement benefits (In millions) September 26, September 28, September 26, September 28, Service cost $ 6.3 $ 5.9 $ 0.1 $ 0.1 Interest cost 3.1 4.9 0.3 0.4 Expected return on plan assets (3.0) (3.2) — — Settlement/curtailment 1.2 — — — Net amortization 1.8 0.1 (0.6) (0.9) Net periodic (benefit) cost $ 9.4 $ 7.7 $ (0.2) $ (0.4) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring | Note 19: 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, leased assets and liabilities and short-term borrowings approximated their fair values at September 26, 2020 and December 28, 2019. The fair value of Senior Notes reflects changes in corporate debt markets and investor preferences. The fair value of Senior Notes 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. The fair value of the Senior Notes was as follows: September 26, 2020 December 28, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 380.2 $ 360.0 $ 600.0 $ 605.8 See Note 15: Derivative Financial Instruments and Hedging Activities for discussion of the Company’s derivative financial instruments and related fair value measurements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 20: Segment Information The Company manufactures and distributes a broad portfolio of products, primarily through independent direct sales force members. Certain operating segments have been aggregated based upon consistency of economic substance, geography, products, production process, class of customers and distribution method. The Company’s reportable segments primarily sell design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware® brand. Europe (Europe, Africa and Middle East) also includes Avroy Shlain® in South Africa and Nutrimetics® in France, which sell beauty and personal care products. Some units in Asia Pacific also sell beauty and personal care products under the NaturCare®, Nutrimetics® and Fuller® brands. 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 $63.0 million and $60.5 million in the third quarters of 2020 and 2019, respectively, and $167.7 million and $190.0 million in the respective year-to-date periods. 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Net sales Asia Pacific $ 140.1 $ 148.8 $ 394.9 $ 460.4 Europe 121.2 98.9 317.7 359.0 North America 146.3 103.5 371.6 347.8 South America 69.6 66.9 166.3 213.5 Total net sales $ 477.2 $ 418.1 $ 1,250.5 $ 1,380.7 Segment profit Asia Pacific $ 38.8 $ 32.7 $ 90.5 $ 99.9 Europe 29.3 (0.9) 42.7 29.6 North America 21.9 3.3 47.1 41.1 South America 16.0 11.3 30.3 33.3 Total segment profit 106.0 46.4 210.6 203.9 Unallocated expenses (4.6) (7.6) — (22.0) Re-engineering charges (a) (3.2) (7.5) (30.3) (15.9) Impairment of goodwill and intangibles — (19.7) — (19.7) Gain (loss) on disposal of assets (32.6) 12.1 (18.8) 11.1 Interest expense (7.9) (9.8) (29.5) (29.8) Income (loss) before income taxes $ 57.7 $ 13.9 $ 132.0 $ 127.6 (In millions) September 26, December 28, Identifiable assets Asia Pacific $ 271.7 $ 300.3 Europe 277.2 269.7 North America 224.6 235.9 South America 105.6 125.2 Corporate 312.3 331.3 Total identifiable assets $ 1,191.4 $ 1,262.4 _________________________ |
Guarantor Information
Guarantor Information | 9 Months Ended |
Sep. 26, 2020 | |
Guarantor Information [Abstract] | |
Guarantor Information | Note 21: Guarantor Information The Company’s payment obligations under the Senior Notes are fully and unconditionally guaranteed, on a senior secured basis, by the Guarantor. The guarantee is secured by certain “Tupperware” trademarks and service marks owned by the Guarantor, as discussed in Note 16: Debt. In addition, under the Credit Agreement and consistent with the Old Credit Agreement, the Guarantor unconditionally guarantees all obligations and liabilities of the Company and the Subsidiary Borrowers relating to the Credit Agreement, supported by a security interest in those certain “Tupperware” trademarks and service marks as well. Each entity in the consolidating financial information follows the same accounting policies as described in the Consolidated Financial Statements, except for the use by the Parent and Guarantor of the equity method of accounting to reflect ownership interests in subsidiaries that are eliminated upon consolidation. The Guarantor is 100% owned by the Parent, and there are certain entities within the Non-Guarantors’ classification which the Parent owns directly. There are no significant restrictions on the ability of either the Parent or the Guarantor from obtaining adequate funds from their respective subsidiaries by dividend or loan that should interfere with their ability to meet their operating needs or debt repayment obligations. Condensed consolidated financial information as of September 26, 2020 and December 28, 2019, and for the quarters ended September 26, 2020 and September 28, 2019, for Tupperware Brands Corporation (the “Parent”), Guarantor and all other subsidiaries (the “Non-Guarantors) is as follows: TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 13 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 478.6 $ (1.4) $ 477.2 Other revenue — 22.7 0.3 (23.0) — Cost of products sold — — 176.4 (24.3) 152.1 Gross margin — 22.7 302.5 (0.1) 325.1 Delivery, sales and administrative expense 2.7 22.3 208.9 (0.1) 233.8 Re-engineering charges — 1.1 2.1 — 3.2 Impairment of goodwill and intangible assets — — — — — Gain (loss) on disposal of assets — (30.4) (2.2) — (32.6) Operating income (loss) (2.7) (31.1) 89.3 — 55.5 Interest income 4.6 0.2 6.0 (10.5) 0.3 Interest expense 7.4 8.9 2.4 (10.5) 8.2 Income (loss) from equity investments in subsidiaries 31.5 71.6 — (103.1) — Other expense (income), net (8.4) 1.2 (2.9) — (10.1) Income (loss) before income taxes 34.4 30.6 95.8 (103.1) 57.7 Provision (benefit) for income taxes — (0.1) 23.4 — 23.3 Net income (loss) $ 34.4 $ 30.7 $ 72.4 $ (103.1) $ 34.4 Comprehensive income (loss) $ 35.6 $ 33.4 $ 71.7 $ (105.1) $ 35.6 TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 13 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 419.6 $ (1.5) $ 418.1 Other revenue — 20.9 2.2 (23.1) — Cost of products sold — 2.2 164.0 (24.7) 141.5 Gross margin — 18.7 257.8 0.1 276.6 Delivery, sales and administrative expense 2.7 19.0 219.8 0.1 241.6 Re-engineering charges — 0.4 7.1 — 7.5 Impairment of goodwill and intangible assets — — 19.7 — 19.7 Gain (loss) on disposal of assets — — 12.1 — 12.1 Operating income (loss) (2.7) (0.7) 23.3 — 19.9 Interest income 4.8 0.7 8.3 (13.2) 0.6 Interest expense 9.9 11.8 1.9 (13.2) 10.4 Income (loss) from equity investments in subsidiaries 7.0 (1.2) — (5.8) — Other expense (income), net (0.4) (2.1) (1.3) — (3.8) Income (loss) before income taxes (0.4) (10.9) 31.0 (5.8) 13.9 Provision (benefit) for income taxes (8.2) (12.5) 26.8 — 6.1 Net income (loss) $ 7.8 $ 1.6 $ 4.2 $ (5.8) $ 7.8 Comprehensive income (loss) $ (11.5) $ (18.9) $ (17.1) $ 36.0 $ (11.5) TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 39 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,252.8 $ (2.3) $ 1,250.5 Other revenue — 61.7 6.5 (68.2) — Cost of products sold — 6.2 479.6 (70.5) 415.3 Gross margin — 55.5 779.7 — 835.2 Delivery, sales and administrative expense 5.9 80.6 598.3 — 684.8 Re-engineering charges — 6.7 23.6 — 30.3 Impairment of goodwill and intangible assets — — — — — Gain (loss) on disposal of assets — (30.4) 11.6 — (18.8) Operating income (loss) (5.9) (62.2) 169.4 — 101.3 Interest income 13.8 0.8 19.2 (32.8) 1.0 Interest expense 27.8 28.2 7.3 (32.8) 30.5 Income (loss) from equity investments in subsidiaries 60.4 125.9 — (186.3) — Other expense (income), net (50.0) (20.9) 10.7 — (60.2) Income (loss) before income taxes 90.5 57.2 170.6 (186.3) 132.0 Provision (benefit) for income taxes 0.1 (0.3) 41.8 — 41.6 Net income (loss) $ 90.4 $ 57.5 $ 128.8 $ (186.3) $ 90.4 Comprehensive income (loss) $ 26.4 $ (3.0) $ 49.6 $ (46.6) $ 26.4 TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 39 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,385.4 $ (4.7) $ 1,380.7 Other revenue — 72.7 15.8 (88.5) — Cost of products sold — 15.8 532.1 (90.6) 457.3 Gross margin — 56.9 869.1 (2.6) 923.4 Delivery, sales and administrative expense 6.4 55.5 692.7 (2.6) 752.0 Re-engineering charges — 1.2 14.7 — 15.9 Impairment of goodwill and intangible assets — — 19.7 — 19.7 Gain (loss) on disposal of assets — — 11.1 — 11.1 Operating income (loss) (6.4) 0.2 153.1 — 146.9 Interest income 15.1 1.9 27.9 (43.3) 1.6 Interest expense 29.7 37.6 7.4 (43.3) 31.4 Income (loss) from equity investments in subsidiaries 92.9 102.8 — (195.7) — Other expense (income), net (1.5) (0.8) (8.2) — (10.5) Income (loss) before income taxes 73.4 68.1 181.8 (195.7) 127.6 Provision (benefit) for income taxes (10.7) (16.3) 70.5 — 43.5 Net income (loss) $ 84.1 $ 84.4 $ 111.3 $ (195.7) $ 84.1 Comprehensive income (loss) $ 76.1 $ 75.0 $ 117.9 $ (192.9) $ 76.1 TUPPERWARE BRANDS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Assets Cash and cash equivalents $ 0.5 $ 0.9 $ 147.4 $ — $ 148.8 Accounts receivable, net — — 129.0 — 129.0 Inventories — — 217.2 — 217.2 Non-trade amounts receivable, net — 159.5 83.6 (215.2) 27.9 Intercompany receivables 326.4 1,612.3 234.5 (2,173.2) — Prepaid expenses and other current assets 2.0 15.4 49.7 (38.4) 28.7 Total current assets 328.9 1,788.1 861.4 (2,426.8) 551.6 Deferred income tax benefits, net 41.7 42.1 107.0 (6.6) 184.2 Property, plant and equipment, net — 55.2 153.3 — 208.5 Operating lease assets — 4.1 71.4 — 75.5 Long-term receivables, net — 0.1 10.0 — 10.1 Trademarks and tradenames, net — — 22.8 — 22.8 Goodwill — 2.9 54.9 — 57.8 Investments in subsidiaries 1,304.2 1,217.5 — (2,521.7) — Intercompany loan receivables 503.2 102.0 1,088.9 (1,694.1) — Other assets, net 6.5 9.9 142.1 (77.6) 80.9 Total assets $ 2,184.5 $ 3,221.9 $ 2,511.8 $ (6,726.8) $ 1,191.4 Liabilities And Shareholders' Equity Accounts payable $ 0.6 $ 5.1 $ 90.6 $ — $ 96.3 Short-term borrowings and current portion of long-term debt and finance lease obligations 688.4 — 77.5 — 765.9 Intercompany payables 1,496.7 430.9 245.6 (2,173.2) — Accrued liabilities 242.0 41.6 314.9 (253.6) 344.9 Total current liabilities 2,427.7 477.6 728.6 (2,426.8) 1,207.1 Long-term debt and finance lease obligations — — 2.2 — 2.2 Intercompany notes payable — 1,414.3 279.8 (1,694.1) — Operating lease liabilities — 3.5 45.0 — 48.5 Other liabilities 0.8 104.9 156.1 (84.2) 177.6 Total liabilities 2,428.5 2,000.3 1,211.7 (4,205.1) 1,435.4 Total shareholders' equity (deficit) (244.0) 1,221.6 1,300.1 (2,521.7) (244.0) Total liabilities and shareholders' equity $ 2,184.5 $ 3,221.9 $ 2,511.8 $ (6,726.8) $ 1,191.4 TUPPERWARE BRANDS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) December 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Assets Cash and cash equivalents $ — $ 0.3 $ 122.9 $ — $ 123.2 Accounts receivable, net — — 110.7 — 110.7 Inventories — — 245.2 — 245.2 Non-trade amounts receivable, net — 166.2 84.9 (212.0) 39.1 Intercompany receivables 325.9 1,546.3 209.9 (2,082.1) — Prepaid expenses and other current assets 1.2 16.0 41.1 (38.0) 20.3 Total current assets 327.1 1,728.8 814.7 (2,332.1) 538.5 Deferred income tax benefits, net 41.7 42.2 105.6 (3.4) 186.1 Property, plant and equipment, net — 85.7 181.8 — 267.5 Operating lease assets — 4.7 79.4 — 84.1 Long-term receivables, net — 0.1 14.9 — 15.0 Trademarks and tradenames, net — — 24.6 — 24.6 Goodwill — 2.9 56.6 — 59.5 Investments in subsidiaries 1,305.2 1,208.8 — (2,514.0) — Intercompany loan receivables 514.8 95.7 1,046.1 (1,656.6) — Other assets, net 1.9 12.7 150.0 (77.5) 87.1 Total assets $ 2,190.7 $ 3,181.6 $ 2,473.7 $ (6,583.6) $ 1,262.4 Liabilities And Shareholders' Equity Accounts payable $ — $ 8.3 $ 117.1 $ — $ 125.4 Short-term borrowings and current portion of long-term debt and finance lease obligations 186.8 — 86.4 — 273.2 Intercompany payables 1,440.8 406.2 235.1 (2,082.1) — Accrued liabilities 239.1 65.6 235.6 (250.0) 290.3 Total current liabilities 1,866.7 480.1 674.2 (2,332.1) 688.9 Long-term debt and finance lease obligations 599.8 — 2.4 — 602.2 Intercompany notes payable — 1,362.2 294.4 (1,656.6) — Operating lease liabilities — 4.0 52.0 — 56.0 Other liabilities 1.2 110.7 161.3 (80.9) 192.3 Total liabilities 2,467.7 1,957.0 1,184.3 (4,069.6) 1,539.4 Total shareholders' equity (deficit) (277.0) 1,224.6 1,289.4 (2,514.0) (277.0) Total liabilities and shareholders' equity $ 2,190.7 $ 3,181.6 $ 2,473.7 $ (6,583.6) $ 1,262.4 TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ (14.5) $ (20.7) $ 156.6 $ (9.6) $ 111.8 Investing Activities Capital expenditures — (13.4) (7.3) — (20.7) Proceeds from disposal of property, plant and equipment — — 16.7 — 16.7 Net intercompany loans 11.6 (98.6) (106.5) 193.5 — Net cash provided by (used in) investing activities 11.6 (112.0) (97.1) 193.5 (4.0) Financing Activities Common stock cash dividends paid — — — — — Dividend payments to parent — — (39.2) 39.2 — Common stock repurchase (0.2) — — — (0.2) Senior notes repayment (163.9) — — — (163.9) Finance lease repayments — — (0.3) — (0.3) Net increase (decrease) in short-term debt 117.5 — (17.2) — 100.3 Debt issuance costs (2.0) — — — (2.0) Net intercompany borrowings 56.0 132.6 34.6 (223.2) — Net cash provided by (used in) financing activities 7.4 132.6 (22.1) (184.0) (66.1) Effect of exchange rate changes on cash, cash equivalents and restricted cash — 0.7 (7.2) — (6.5) Net change in cash, cash equivalents and restricted cash 4.5 0.6 30.2 (0.1) 35.2 Cash, cash equivalents and restricted cash at beginning of year — 0.3 125.8 — 126.1 Cash, cash equivalents and restricted cash at end of period $ 4.5 $ 0.9 $ 156.0 $ (0.1) $ 161.3 TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ (8.1) $ 86.7 $ 164.8 $ (223.9) $ 19.5 Investing Activities Capital expenditures — (23.4) (20.6) — (44.0) Proceeds from disposal of property, plant and equipment — — 20.4 — 20.4 Net intercompany loans 3.8 (11.4) 67.9 (60.3) — Net cash provided by (used in) investing activities 3.8 (34.8) 67.7 (60.3) (23.6) Financing Activities Common stock cash dividends paid (60.5) — — — (60.5) Dividend payments to parent — — (226.2) 226.2 — Common stock repurchase (0.8) — — — (0.8) Repayment of finance lease obligations — — (1.3) — (1.3) Net change in short-term debt 52.9 — (6.2) — 46.7 Debt issuance costs (2.2) — — — (2.2) Net intercompany borrowings 14.9 (50.1) (22.8) 58.0 — Net cash provided by (used in) financing activities 4.3 (50.1) (256.5) 284.2 (18.1) Effect of exchange rate changes on cash, cash equivalents and restricted cash — (0.3) (3.0) — (3.3) Net change in cash, cash equivalents and restricted cash — 1.5 (27.0) — (25.5) Cash, cash equivalents and restricted cash at beginning of year — 0.3 151.6 — 151.9 Cash, cash equivalents and restricted cash at end of period $ — $ 1.8 $ 124.6 $ — $ 126.4 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The 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 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 financial statements prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, these Consolidated Financial Statements and related notes should be read in conjunction with the audited 2019 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 28, 2019. 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 sales and expenses during the reporting period. Actual results could differ materially from these estimates. For the third quarter ended September 26, 2020, the impact of the decline in business activity brought about by the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of the Company's estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change materially in future periods. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements Standards Recently Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance at the beginning of the second quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, an amendment to existing guidance on the accounting for implementation, setup, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor that is a service contract. Under the amendment, the requirement for capitalizing implementation costs incurred in a hosting environment that is a service contract is aligned with the requirements for capitalizing implementation costs incurred for an internal-use software license. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”, an amendment to existing guidance on disclosure requirements on fair value measurement as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements. Under this amendment, certain disclosure requirements for fair value measurement were eliminated, modified and added. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have any impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, an amendment to existing guidance for the measurement of credit losses on financial instruments and subsequent updates to that amendment. This guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when recording credit loss estimates. The new standard is effective for fiscal years and interim periods beginning after December 15, 2019. The Company adopted this guidance at the beginning of the first quarter of 2020 and the adoption did not have a material impact on its Consolidated Financial Statements. Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, an optional guidance for a limited period of time to ease the transition from the London interbank offered rate (“LIBOR”) to an alternative reference rate. The ASU intends to address certain concerns relating to accounting for contract modifications and hedge accounting. These optional expedients and exceptions to applying GAAP, assuming certain criteria are met, are allowed through December 31, 2022. The amendments should be applied on a prospective basis. The Company continues to evaluate the impact of the potential adoption of this amendment on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans”, an amendment to existing guidance on disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. Under the amendment, the entity is required to disclose the weighted-average interest crediting rates used, reasons for significant gains and |
Revenue Recognition and Defer_2
Revenue Recognition and Deferred Revenue (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure | Deferred revenue balance which was primarily related to payments received in advance for orders not yet shipped was as follows: (In millions) September 26, December 28, Deferred revenue $ 36.1 $ 3.2 |
Distribution Costs (Tables)
Distribution Costs (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Shipping and Handling Costs [Abstract] | |
Shipping and Handling [Table] | Distribution costs were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Distribution costs $ 41.0 $ 30.1 $ 103.5 $ 95.7 |
Promotional Costs (Tables)
Promotional Costs (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Promotional Costs [Abstract] | |
promotional cost, table | Promotional costs were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Promotional costs $ 68.6 $ 64.7 $ 181.1 $ 214.9 |
Compensation Related Costs, S_2
Compensation Related Costs, Share Based Payments (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity | Stock option activity for 2020 is summarized in the following table: Shares Weighted Aggregate intrinsic value (in millions) Outstanding at December 28, 2019 3,340,739 $ 56.28 Granted 1,000,000 2.61 Expired / Forfeited (94,186) 45.73 Outstanding at September 26, 2020 4,246,553 $ 43.88 $ 20.0 Exercisable at September 26, 2020 2,877,162 $ 57.82 $ — |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2020 is summarized in the following table: Shares Weighted December 28, 2019 528,289 $ 28.82 Time-vested shares granted 2,740,985 4.46 Market-vested shares granted 1,715,566 1.70 Performance shares granted 743,770 3.01 Performance share adjustments 305,094 2.38 Vested (134,543) 19.75 Forfeited (716,377) 12.65 September 26, 2020 5,182,784 $ 4.17 |
Share-based Payment Arrangement, Cost by Plan | Stock-based compensation for the third quarter ended September 26, 2020 and September 28, 2019 were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Stock options $ 0.3 $ 0.6 $ 0.8 $ 1.8 Time, performance and market vested share awards 2.7 2.4 6.0 5.7 |
Unrecognized Stock Based Compensation Expense | Unrecognized stock-based compensation expense and the weighted average years to recognize the unrecognized stock-based compensation was as follows: (In millions) September 26, Unrecognized stock-based compensation expense $ 16.0 Weighted average years to recognize the unrecognized stock-based compensation 2.2 years |
Shares Retained to Fund Withholding Taxes | 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. Shares retained to fund withholding taxes and the value of shares retained to fund withholding taxes was as follows: 39 weeks ended (In millions) September 26, September 28, Shares retained to fund withholding taxes 11,187 25,947 Value of shares retained to fund withholding taxes $ 0.2 $ 0.8 |
Re-engineering Costs (Tables)
Re-engineering Costs (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | The re-engineering charges were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Turnaround plan $ 2.7 $ 4.6 $ 28.4 $ 10.0 2017 program 0.5 1.1 1.9 3.3 Other — 1.8 — 2.6 Total re-engineering charges $ 3.2 $ 7.5 $ 30.3 $ 15.9 Turnaround Plan Re-engineering charges in the third quarter of 2020 for the Turnaround Plan were $2.7 million, primarily related to the South America segment. In the third quarters of 2019 the charges were $1.4 million and $3.2 million, for the Asia Pacific and Europe segment, respectively. Charges for the year-to-date periods were: 39 weeks ended (In millions) September 26, September 28, Asia Pacific $ 4.0 $ 3.9 Europe 12.1 6.1 North America 1.4 — South America 3.1 — Corporate 7.8 — Total turnaround plan charges $ 28.4 $ 10.0 The re-engineering charges related to the 2017 program were: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Asia Pacific $ — $ (0.1) $ — $ 0.6 Europe (0.3) 0.9 1.1 1.8 North America 0.8 0.3 0.8 0.9 Total 2017 program charges $ 0.5 $ 1.1 $ 1.9 $ 3.3 |
Accrued Liabilities, Re-engineering Charges Rollforward | The balances included in accrued liabilities related to re-engineering charges for the Turnaround Plan were: (In millions) September 26, December 28, Beginning of the year balance $ 12.9 $ — Provision 28.4 26.4 Adjustments and other charges 1.0 (1.7) Cash expenditures: Severance (22.6) (0.9) Other (1.4) (10.9) End of period balance $ 18.3 $ 12.9 The balances included in accrued liabilities related to re-engineering charges for the 2017 program were: (In millions) September 26, December 28, Beginning of the year balance $ 3.1 $ 23.3 Provision 1.9 4.5 Adjustments and other charges (0.7) (0.3) Cash expenditures: Severance (1.8) (20.3) Other (1.5) (3.6) Currency translation adjustment — (0.5) End of period balance $ 1.0 $ 3.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The effective tax rate was: 13 weeks ended 39 weeks ended September 26, September 28, September 26, September 28, Effective tax rate 40.4 % 43.9 % 31.5 % 34.1 % |
Schedule of Unrecognized Tax Benefits Roll Forward | Accrual for uncertain tax positions and interest and penalties related to uncertain tax positions were: (In millions) September 26, December 28, Accrual for uncertain tax positions $ 13.5 $ 13.5 Interest and penalties related to uncertain tax positions $ 0.7 $ 4.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Elements of Earnings per Share Computations | The elements of the earnings per share computations were as follows: 13 weeks ended 39 weeks ended (In millions, except per share amounts) September 26, September 28, September 26, September 28, Net income (loss) $ 34.4 $ 7.8 $ 90.4 $ 84.1 Weighted-average basic shares outstanding 49.1 48.8 49.0 48.7 Effect of dilutive securities 4.0 0.1 2.5 0.2 Weighted-average diluted shares 53.1 48.9 51.5 48.9 Basic earnings per share $ 0.70 $ 0.16 $ 1.84 $ 1.73 Diluted earnings per share $ 0.65 $ 0.16 $ 1.76 $ 1.72 Excluded anti-dilutive shares 3.3 3.9 4.0 3.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Rollforward of 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 28, 2019 $ (600.2) $ (2.4) $ (35.7) $ (638.3) Other comprehensive income (loss) before reclassifications (69.8) 6.0 1.0 (62.8) Amounts reclassified from accumulated other comprehensive income (loss) — (2.8) 1.6 (1.2) Other comprehensive income (loss) (69.8) 3.2 2.6 (64.0) Balance at September 26, 2020 $ (670.0) $ 0.8 $ (33.1) $ (702.3) (In millions, net of tax) Foreign Currency Items Cash Flow Hedges Pension and Other Post-retirement Items Total Balance at December 29, 2018 $ (579.1) $ 1.7 $ (24.7) $ (602.1) Cumulative effect of change in accounting principle (3.8) (1.2) — (5.0) Other comprehensive income (loss) before reclassifications (6.8) (2.8) 0.6 (9.0) Amounts reclassified from accumulated other comprehensive income (loss) — 1.5 (0.5) 1.0 Other comprehensive income (loss) (6.8) (1.3) 0.1 (8.0) Balance at September 28, 2019 $ (589.7) $ (0.8) $ (24.6) $ (615.1) Amounts reclassified from accumulated other comprehensive income (loss) that related to cash flow hedges consisted of: Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Cash Flow Hedges 39 weeks ended (In millions) September 26, September 28, Cash flow hedges (gain) losses $ (3.5) $ 2.1 Tax (benefit) provision 0.7 (0.6) Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges $ (2.8) $ 1.5 Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items consisted of: Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Pension And Other Post-Retirement Items 39 weeks ended (In millions) September 26, September 28, Prior service costs/(benefit) $ (0.2) $ (0.8) Settlements (gains) losses 1.2 — Actuarial (gains) losses 1.4 — Tax (benefit) provision (0.8) 0.3 $ 1.6 $ (0.5) |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents and restricted cash at end of period in the Consolidated Statements of Cash Flows is as follows: (In millions) September 26, December 28, Cash and cash equivalents $ 148.8 $ 123.2 Restricted cash 12.5 2.9 Cash, cash equivalents and restricted cash at end of period $ 161.3 $ 126.1 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Accounts Receivable [Table] | The accounts receivable and allowance for bad debts balance was as follows: (In millions) September 26, December 28, Accounts receivable $ 169.9 $ 174.3 Allowance for bad debts (40.9) (63.6) Accounts receivable, net $ 129.0 $ 110.7 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories balance net of any inventory allowance was as follows: (In millions) September 26, December 28, Finished goods $ 160.9 $ 197.1 Work in process 27.3 22.4 Raw materials and supplies 29.0 25.7 Total inventories $ 217.2 $ 245.2 |
Long-Term Receivables (Tables)
Long-Term Receivables (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 was as follows: (In millions) Balance at December 28, 2019 $ 13.9 Write-offs (3.5) Provision and reclassifications 9.1 Currency translation adjustment 0.5 Balance at September 26, 2020 $ 20.0 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule Of Company's Derivative Position And Its Impact On Company Table | The following table summarizes the Company’s derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company’s financial position as of September 26, 2020 and December 28, 2019. 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 Balance sheet Sep 26, Dec 28, Balance sheet Sep 26, Dec 28, Foreign exchange contracts Non-trade amounts receivable $ 7.4 $ 16.0 Accrued liabilities $ 6.0 $ 19.8 The following table summarizes the impact on the results of operations for the third quarters of 2020 and 2019 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions: Amount of gain (loss) recognized Amount of gain (loss) recognized 13 weeks ended 13 weeks ended Derivatives designated as fair value hedges (in millions) Location of gain (loss) recognized in income on derivatives September 26, September 28, Location of gain (loss) recognized in income on related hedged items September 26, September 28, Foreign exchange contracts Other expense $ 1.4 $ (8.8) Other expense $ (1.4) $ 9.0 The following table summarizes the impact of the Company's hedging activities on comprehensive income for the third quarters of 2020 and 2019: Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in Location of gain (loss) reclassified from accumulated OCI into income Amount of gain (loss) reclassified from accumulated OCI into income Cash flow hedging relationships 2020 2019 2020 2019 Foreign exchange contracts $ (0.4) $ (0.1) Cost of products sold $ 1.0 $ (1.0) Net investment hedging relationships Foreign exchange contracts $ (4.1) $ 3.4 Euro denominated debt $ (3.1) $ 3.3 The following table summarizes the impact on the results of operations for the year-to-date periods ended September 26, 2020 and September 28, 2019 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions: Amount of gain (loss) recognized Amount of gain (loss) recognized 39 weeks ended 39 weeks ended Derivatives designated as fair value hedges (in millions) Location of gain (loss) recognized in income on derivatives September 26, September 28, Location of gain (loss) recognized in income on related hedged items September 26, September 28, Foreign exchange contracts Other expense $ (31.6) $ 0.2 Other expense $ 33.6 $ — The following table summarizes the impact of the Company's hedging activities on comprehensive income for the year-to-date periods ended September 26, 2020 and September 28, 2019: Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in Location of gain (loss) reclassified from accumulated OCI into income Amount of gain (loss) reclassified from accumulated OCI into income Cash flow hedging relationships 2020 2019 2020 2019 Foreign exchange contracts $ 6.7 $ (3.7) Cost of products sold $ 3.5 $ (2.1) Net investment hedging relationships Foreign exchange contracts $ 14.2 $ (16.1) Euro denominated debt $ (5.3) $ 3.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The debt portfolio consisted of: (In millions) September 26, December 28, 2019 Senior notes (face value) $ 380.2 $ 600.0 Credit agreement (a) 384.1 272.0 Finance leases 3.6 3.6 Other 0.2 (0.2) Total debt $ 768.1 $ 875.4 Short-term borrowings and current portion of long-term debt and finance lease obligations $ 765.9 $ 273.2 Long-term debt and finance lease obligations 2.2 602.2 Total debt $ 768.1 $ 875.4 ____________________ (a) $171.1 million and $174.9 million denominated in Euro as of September 26, 2020 and December 28, 2019, respectively. |
Senior Notes Repayments [Table] | Senior Notes Repurchase During the third quarter and year-to-date periods of 2020 the Company retired Senior Notes through tender offers and open-market purchases and recorded the pre-tax gain on debt extinguishment in the Other expense (income), net line item. Any deferred debt issuance costs related to the purchased Senior Notes were expensed and recorded in the interest expense line item. The details of these Senior Notes were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 26, Senior notes retired (face value) $ 121.1 $ 219.8 Less: Cash paid $ 107.5 $ 163.9 Less: Costs incurred $ 3.8 $ 6.0 Gain on debt extinguishment (pre-tax) $ 9.8 $ 49.9 Earnings per share from gain on debt extinguishment $ 0.20 $ 1.02 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Lease, Expense | Components of lease expense were as follows: 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Operating lease cost (a) (b) $ 10.3 $ 12.7 $ 32.7 $ 38.3 Amortization of right-of-use assets (a) 0.2 0.2 0.6 0.7 Interest on lease liabilities (c) — 0.1 0.1 0.2 Total finance lease cost $ 0.2 $ 0.3 $ 0.7 $ 0.9 ____________________ (a) Included in delivery, sales and administrative expense and cost of products sold. (b) Includes immaterial amounts related to short-term rent expense and variable rent expense. (c) Included in interest expense. |
Schedule of Supplemental Cash Flow information related to Leases | Supplemental cash flow information related to leases is as follows: 39 weeks ended (In millions) September 26, September 28, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (29.2) $ (37.2) Operating cash flows from finance leases $ — $ (0.2) Financing cash flows from finance leases $ (0.3) $ (1.3) Leased assets obtained in exchange for new operating lease liabilities $ 9.2 $ 11.0 |
Supplemental Balance Sheet information related to Leases | Supplemental balance sheet information related to leases is as follows: (In millions, except lease term and discount rate) September 26, December 28, Operating Leases Operating lease assets $ 75.5 $ 84.1 Accrued liabilities $ 28.6 $ 29.2 Operating lease liabilities 48.5 56.0 Total Operating lease liabilities $ 77.1 $ 85.2 Finance Leases Property, plant and equipment, at cost $ 18.9 $ 17.9 Accumulated amortization (11.5) (10.3) Property, plant and equipment, net $ 7.4 $ 7.6 Current portion of finance lease obligations $ 1.4 $ 1.3 Long-term finance lease obligations 2.2 2.3 Total Finance lease liabilities $ 3.6 $ 3.6 Weighted Average Remaining Lease Term Operating Leases 4.2 years 4.5 years Finance Leases 2.4 years 2.8 years Weighted Average Discount Rate (a) Operating Leases 4.8 % 5.2 % Finance Leases 5.1 % 5.1 % _________________________ (a) Calculated using Company's incremental borrowing rate. |
Schedule of Maturities of Lease Liabilities [Table Text Block] | Maturities of lease liabilities as of September 26, 2020 and December 28, 2019 were as follows: September 26, 2020 December 28, 2019 (In millions) Operating Leases Finance Leases Operating Leases Finance Leases 2020 $ 9.2 $ 1.2 $ 32.8 $ 1.4 2021 28.7 1.5 22.6 1.4 2022 16.5 1.1 13.0 1.0 2023 10.2 — 7.5 — 2024 6.7 — 5.6 — Thereafter 13.2 — 13.0 — Total undiscounted lease liability $ 84.5 $ 3.8 $ 94.5 $ 3.8 Less imputed interest (7.4) (0.2) (9.3) (0.2) Total $ 77.1 $ 3.6 $ 85.2 $ 3.6 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic (benefit) cost for the third quarters ended September 26, 2020 and September 28, 2019 were as follows: 13 weeks ended Pension benefits Post-retirement benefits (In millions) September 26, September 28, September 26, September 28, Service cost $ 2.1 $ 2.1 $ 0.1 $ — Interest cost 0.9 1.9 0.1 0.1 Expected return on plan assets (1.0) (1.0) — — Settlement/curtailment 0.8 0.1 — — Net amortization 0.4 0.1 — (0.3) Net periodic (benefit) cost $ 3.2 $ 3.2 $ 0.2 $ (0.2) 39 weeks ended Pension benefits Post-retirement benefits (In millions) September 26, September 28, September 26, September 28, Service cost $ 6.3 $ 5.9 $ 0.1 $ 0.1 Interest cost 3.1 4.9 0.3 0.4 Expected return on plan assets (3.0) (3.2) — — Settlement/curtailment 1.2 — — — Net amortization 1.8 0.1 (0.6) (0.9) Net periodic (benefit) cost $ 9.4 $ 7.7 $ (0.2) $ (0.4) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Senior Notes [Table] | The fair value of Senior Notes reflects changes in corporate debt markets and investor preferences. The fair value of Senior Notes 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. The fair value of the Senior Notes was as follows: September 26, 2020 December 28, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 380.2 $ 360.0 $ 600.0 $ 605.8 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 13 weeks ended 39 weeks ended (In millions) September 26, September 28, September 26, September 28, Net sales Asia Pacific $ 140.1 $ 148.8 $ 394.9 $ 460.4 Europe 121.2 98.9 317.7 359.0 North America 146.3 103.5 371.6 347.8 South America 69.6 66.9 166.3 213.5 Total net sales $ 477.2 $ 418.1 $ 1,250.5 $ 1,380.7 Segment profit Asia Pacific $ 38.8 $ 32.7 $ 90.5 $ 99.9 Europe 29.3 (0.9) 42.7 29.6 North America 21.9 3.3 47.1 41.1 South America 16.0 11.3 30.3 33.3 Total segment profit 106.0 46.4 210.6 203.9 Unallocated expenses (4.6) (7.6) — (22.0) Re-engineering charges (a) (3.2) (7.5) (30.3) (15.9) Impairment of goodwill and intangibles — (19.7) — (19.7) Gain (loss) on disposal of assets (32.6) 12.1 (18.8) 11.1 Interest expense (7.9) (9.8) (29.5) (29.8) Income (loss) before income taxes $ 57.7 $ 13.9 $ 132.0 $ 127.6 (In millions) September 26, December 28, Identifiable assets Asia Pacific $ 271.7 $ 300.3 Europe 277.2 269.7 North America 224.6 235.9 South America 105.6 125.2 Corporate 312.3 331.3 Total identifiable assets $ 1,191.4 $ 1,262.4 _________________________ |
Guarantors (Tables)
Guarantors (Tables) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Guarantees and Product Warranties [Abstract] | |||||
Condensed Income Statement | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 13 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 478.6 $ (1.4) $ 477.2 Other revenue — 22.7 0.3 (23.0) — Cost of products sold — — 176.4 (24.3) 152.1 Gross margin — 22.7 302.5 (0.1) 325.1 Delivery, sales and administrative expense 2.7 22.3 208.9 (0.1) 233.8 Re-engineering charges — 1.1 2.1 — 3.2 Impairment of goodwill and intangible assets — — — — — Gain (loss) on disposal of assets — (30.4) (2.2) — (32.6) Operating income (loss) (2.7) (31.1) 89.3 — 55.5 Interest income 4.6 0.2 6.0 (10.5) 0.3 Interest expense 7.4 8.9 2.4 (10.5) 8.2 Income (loss) from equity investments in subsidiaries 31.5 71.6 — (103.1) — Other expense (income), net (8.4) 1.2 (2.9) — (10.1) Income (loss) before income taxes 34.4 30.6 95.8 (103.1) 57.7 Provision (benefit) for income taxes — (0.1) 23.4 — 23.3 Net income (loss) $ 34.4 $ 30.7 $ 72.4 $ (103.1) $ 34.4 Comprehensive income (loss) $ 35.6 $ 33.4 $ 71.7 $ (105.1) $ 35.6 | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 13 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 419.6 $ (1.5) $ 418.1 Other revenue — 20.9 2.2 (23.1) — Cost of products sold — 2.2 164.0 (24.7) 141.5 Gross margin — 18.7 257.8 0.1 276.6 Delivery, sales and administrative expense 2.7 19.0 219.8 0.1 241.6 Re-engineering charges — 0.4 7.1 — 7.5 Impairment of goodwill and intangible assets — — 19.7 — 19.7 Gain (loss) on disposal of assets — — 12.1 — 12.1 Operating income (loss) (2.7) (0.7) 23.3 — 19.9 Interest income 4.8 0.7 8.3 (13.2) 0.6 Interest expense 9.9 11.8 1.9 (13.2) 10.4 Income (loss) from equity investments in subsidiaries 7.0 (1.2) — (5.8) — Other expense (income), net (0.4) (2.1) (1.3) — (3.8) Income (loss) before income taxes (0.4) (10.9) 31.0 (5.8) 13.9 Provision (benefit) for income taxes (8.2) (12.5) 26.8 — 6.1 Net income (loss) $ 7.8 $ 1.6 $ 4.2 $ (5.8) $ 7.8 Comprehensive income (loss) $ (11.5) $ (18.9) $ (17.1) $ 36.0 $ (11.5) | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 39 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,252.8 $ (2.3) $ 1,250.5 Other revenue — 61.7 6.5 (68.2) — Cost of products sold — 6.2 479.6 (70.5) 415.3 Gross margin — 55.5 779.7 — 835.2 Delivery, sales and administrative expense 5.9 80.6 598.3 — 684.8 Re-engineering charges — 6.7 23.6 — 30.3 Impairment of goodwill and intangible assets — — — — — Gain (loss) on disposal of assets — (30.4) 11.6 — (18.8) Operating income (loss) (5.9) (62.2) 169.4 — 101.3 Interest income 13.8 0.8 19.2 (32.8) 1.0 Interest expense 27.8 28.2 7.3 (32.8) 30.5 Income (loss) from equity investments in subsidiaries 60.4 125.9 — (186.3) — Other expense (income), net (50.0) (20.9) 10.7 — (60.2) Income (loss) before income taxes 90.5 57.2 170.6 (186.3) 132.0 Provision (benefit) for income taxes 0.1 (0.3) 41.8 — 41.6 Net income (loss) $ 90.4 $ 57.5 $ 128.8 $ (186.3) $ 90.4 Comprehensive income (loss) $ 26.4 $ (3.0) $ 49.6 $ (46.6) $ 26.4 | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 39 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Net sales $ — $ — $ 1,385.4 $ (4.7) $ 1,380.7 Other revenue — 72.7 15.8 (88.5) — Cost of products sold — 15.8 532.1 (90.6) 457.3 Gross margin — 56.9 869.1 (2.6) 923.4 Delivery, sales and administrative expense 6.4 55.5 692.7 (2.6) 752.0 Re-engineering charges — 1.2 14.7 — 15.9 Impairment of goodwill and intangible assets — — 19.7 — 19.7 Gain (loss) on disposal of assets — — 11.1 — 11.1 Operating income (loss) (6.4) 0.2 153.1 — 146.9 Interest income 15.1 1.9 27.9 (43.3) 1.6 Interest expense 29.7 37.6 7.4 (43.3) 31.4 Income (loss) from equity investments in subsidiaries 92.9 102.8 — (195.7) — Other expense (income), net (1.5) (0.8) (8.2) — (10.5) Income (loss) before income taxes 73.4 68.1 181.8 (195.7) 127.6 Provision (benefit) for income taxes (10.7) (16.3) 70.5 — 43.5 Net income (loss) $ 84.1 $ 84.4 $ 111.3 $ (195.7) $ 84.1 Comprehensive income (loss) $ 76.1 $ 75.0 $ 117.9 $ (192.9) $ 76.1 | |
Condensed Balance Sheet | TUPPERWARE BRANDS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Assets Cash and cash equivalents $ 0.5 $ 0.9 $ 147.4 $ — $ 148.8 Accounts receivable, net — — 129.0 — 129.0 Inventories — — 217.2 — 217.2 Non-trade amounts receivable, net — 159.5 83.6 (215.2) 27.9 Intercompany receivables 326.4 1,612.3 234.5 (2,173.2) — Prepaid expenses and other current assets 2.0 15.4 49.7 (38.4) 28.7 Total current assets 328.9 1,788.1 861.4 (2,426.8) 551.6 Deferred income tax benefits, net 41.7 42.1 107.0 (6.6) 184.2 Property, plant and equipment, net — 55.2 153.3 — 208.5 Operating lease assets — 4.1 71.4 — 75.5 Long-term receivables, net — 0.1 10.0 — 10.1 Trademarks and tradenames, net — — 22.8 — 22.8 Goodwill — 2.9 54.9 — 57.8 Investments in subsidiaries 1,304.2 1,217.5 — (2,521.7) — Intercompany loan receivables 503.2 102.0 1,088.9 (1,694.1) — Other assets, net 6.5 9.9 142.1 (77.6) 80.9 Total assets $ 2,184.5 $ 3,221.9 $ 2,511.8 $ (6,726.8) $ 1,191.4 Liabilities And Shareholders' Equity Accounts payable $ 0.6 $ 5.1 $ 90.6 $ — $ 96.3 Short-term borrowings and current portion of long-term debt and finance lease obligations 688.4 — 77.5 — 765.9 Intercompany payables 1,496.7 430.9 245.6 (2,173.2) — Accrued liabilities 242.0 41.6 314.9 (253.6) 344.9 Total current liabilities 2,427.7 477.6 728.6 (2,426.8) 1,207.1 Long-term debt and finance lease obligations — — 2.2 — 2.2 Intercompany notes payable — 1,414.3 279.8 (1,694.1) — Operating lease liabilities — 3.5 45.0 — 48.5 Other liabilities 0.8 104.9 156.1 (84.2) 177.6 Total liabilities 2,428.5 2,000.3 1,211.7 (4,205.1) 1,435.4 Total shareholders' equity (deficit) (244.0) 1,221.6 1,300.1 (2,521.7) (244.0) Total liabilities and shareholders' equity $ 2,184.5 $ 3,221.9 $ 2,511.8 $ (6,726.8) $ 1,191.4 | TUPPERWARE BRANDS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) December 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Assets Cash and cash equivalents $ — $ 0.3 $ 122.9 $ — $ 123.2 Accounts receivable, net — — 110.7 — 110.7 Inventories — — 245.2 — 245.2 Non-trade amounts receivable, net — 166.2 84.9 (212.0) 39.1 Intercompany receivables 325.9 1,546.3 209.9 (2,082.1) — Prepaid expenses and other current assets 1.2 16.0 41.1 (38.0) 20.3 Total current assets 327.1 1,728.8 814.7 (2,332.1) 538.5 Deferred income tax benefits, net 41.7 42.2 105.6 (3.4) 186.1 Property, plant and equipment, net — 85.7 181.8 — 267.5 Operating lease assets — 4.7 79.4 — 84.1 Long-term receivables, net — 0.1 14.9 — 15.0 Trademarks and tradenames, net — — 24.6 — 24.6 Goodwill — 2.9 56.6 — 59.5 Investments in subsidiaries 1,305.2 1,208.8 — (2,514.0) — Intercompany loan receivables 514.8 95.7 1,046.1 (1,656.6) — Other assets, net 1.9 12.7 150.0 (77.5) 87.1 Total assets $ 2,190.7 $ 3,181.6 $ 2,473.7 $ (6,583.6) $ 1,262.4 Liabilities And Shareholders' Equity Accounts payable $ — $ 8.3 $ 117.1 $ — $ 125.4 Short-term borrowings and current portion of long-term debt and finance lease obligations 186.8 — 86.4 — 273.2 Intercompany payables 1,440.8 406.2 235.1 (2,082.1) — Accrued liabilities 239.1 65.6 235.6 (250.0) 290.3 Total current liabilities 1,866.7 480.1 674.2 (2,332.1) 688.9 Long-term debt and finance lease obligations 599.8 — 2.4 — 602.2 Intercompany notes payable — 1,362.2 294.4 (1,656.6) — Operating lease liabilities — 4.0 52.0 — 56.0 Other liabilities 1.2 110.7 161.3 (80.9) 192.3 Total liabilities 2,467.7 1,957.0 1,184.3 (4,069.6) 1,539.4 Total shareholders' equity (deficit) (277.0) 1,224.6 1,289.4 (2,514.0) (277.0) Total liabilities and shareholders' equity $ 2,190.7 $ 3,181.6 $ 2,473.7 $ (6,583.6) $ 1,262.4 | |||
Condensed Cash Flow Statement | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 weeks ended September 26, 2020 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ (14.5) $ (20.7) $ 156.6 $ (9.6) $ 111.8 Investing Activities Capital expenditures — (13.4) (7.3) — (20.7) Proceeds from disposal of property, plant and equipment — — 16.7 — 16.7 Net intercompany loans 11.6 (98.6) (106.5) 193.5 — Net cash provided by (used in) investing activities 11.6 (112.0) (97.1) 193.5 (4.0) Financing Activities Common stock cash dividends paid — — — — — Dividend payments to parent — — (39.2) 39.2 — Common stock repurchase (0.2) — — — (0.2) Senior notes repayment (163.9) — — — (163.9) Finance lease repayments — — (0.3) — (0.3) Net increase (decrease) in short-term debt 117.5 — (17.2) — 100.3 Debt issuance costs (2.0) — — — (2.0) Net intercompany borrowings 56.0 132.6 34.6 (223.2) — Net cash provided by (used in) financing activities 7.4 132.6 (22.1) (184.0) (66.1) Effect of exchange rate changes on cash, cash equivalents and restricted cash — 0.7 (7.2) — (6.5) Net change in cash, cash equivalents and restricted cash 4.5 0.6 30.2 (0.1) 35.2 Cash, cash equivalents and restricted cash at beginning of year — 0.3 125.8 — 126.1 Cash, cash equivalents and restricted cash at end of period $ 4.5 $ 0.9 $ 156.0 $ (0.1) $ 161.3 | TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 39 weeks ended September 28, 2019 (In millions) Parent Guarantor Non-Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ (8.1) $ 86.7 $ 164.8 $ (223.9) $ 19.5 Investing Activities Capital expenditures — (23.4) (20.6) — (44.0) Proceeds from disposal of property, plant and equipment — — 20.4 — 20.4 Net intercompany loans 3.8 (11.4) 67.9 (60.3) — Net cash provided by (used in) investing activities 3.8 (34.8) 67.7 (60.3) (23.6) Financing Activities Common stock cash dividends paid (60.5) — — — (60.5) Dividend payments to parent — — (226.2) 226.2 — Common stock repurchase (0.8) — — — (0.8) Repayment of finance lease obligations — — (1.3) — (1.3) Net change in short-term debt 52.9 — (6.2) — 46.7 Debt issuance costs (2.2) — — — (2.2) Net intercompany borrowings 14.9 (50.1) (22.8) 58.0 — Net cash provided by (used in) financing activities 4.3 (50.1) (256.5) 284.2 (18.1) Effect of exchange rate changes on cash, cash equivalents and restricted cash — (0.3) (3.0) — (3.3) Net change in cash, cash equivalents and restricted cash — 1.5 (27.0) — (25.5) Cash, cash equivalents and restricted cash at beginning of year — 0.3 151.6 — 151.9 Cash, cash equivalents and restricted cash at end of period $ — $ 1.8 $ 124.6 $ — $ 126.4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Jun. 27, 2020 | Sep. 26, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | $ 765.9 | $ 765.9 | $ 273.2 | |
Extinguishment of Debt, Amount | 121.1 | $ 98.7 | 219.8 | |
Cash provided by (used in ) operations net of investing activitives | 60.7 | |||
Senior Notes Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 380.2 | 380.2 | 600 | |
Senior Notes Due 2021 [Member] | Significant Other Observable Inputs (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 360 | $ 360 | $ 605.8 |
Revenue Recognition and Defer_3
Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred Revenue | $ 36.1 | $ 3.2 |
Distribution Costs (Details)
Distribution Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Shipping and Handling [Line Items] | ||||
Delivery, sales and administrative expense | $ 233.8 | $ 241.6 | $ 684.8 | $ 752 |
Shipping and Handling | ||||
Shipping and Handling [Line Items] | ||||
Delivery, sales and administrative expense | $ 41 | $ 30.1 | $ 103.5 | $ 95.7 |
Promotional Costs (Details)
Promotional Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Promotional Costs [Abstract] | ||||
Promotional and other sales force compensation expenses | $ 68.6 | $ 64.7 | $ 181.1 | $ 214.9 |
Compensation Related Costs, S_3
Compensation Related Costs, Share Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 26, 2020 | Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 11,187 | 25,947 | ||||
Shares Paid For Tax Withholding For Share Based Compensation, Value | $ 200 | $ 800 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 16,000 | $ 16,000 | $ 16,000 | |||
Time Vested, Performance Vested and Market Vested Share Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 4.17 | $ 4.17 | $ 4.17 | $ 28.82 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 19.75 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 12.65 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 5,182,784 | 5,182,784 | 5,182,784 | 528,289 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (134,543) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (716,377) | |||||
Restricted Stock or Unit Expense | $ 2,700 | $ 2,400 | $ 6,000 | 5,700 | ||
Time Vested [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.46 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,740,985 | |||||
Market Vested [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.70 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,715,566 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.01 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Performance Share Performance Adjustment Weighted Average Grant Date Fair Value | $ 2.38 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 743,770 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Performance Share Performance Adjustment | 305,094 | |||||
Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock or Unit Option Plan Expense | $ 300 | $ 600 | $ 800 | $ 1,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,877,162 | 2,877,162 | 2,877,162 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,246,553 | 4,246,553 | 4,246,553 | 3,340,739 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 43.88 | $ 43.88 | $ 43.88 | $ 56.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,000,000 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.61 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (94,186) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 45.73 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 20,000 | $ 20,000 | $ 20,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 57.82 | $ 57.82 | $ 57.82 |
Re-engineering Costs (Details)
Re-engineering Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | $ 3.2 | $ 7.5 | $ 30.3 | $ 15.9 | |
Turnaround Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning of the year balance | 12.9 | 0 | $ 0 | ||
Re-engineering charges | 2.7 | 4.6 | 28.4 | 10 | 26.4 |
Restructuring Reserve, Accrual Adjustment | 1 | (1.7) | |||
End of period balance | 18.3 | 18.3 | 12.9 | ||
Turnaround Plan | Europe | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 3.2 | 12.1 | 6.1 | ||
Turnaround Plan | Asia Pacific | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 1.4 | 4 | 3.9 | ||
Turnaround Plan | North America | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 1.4 | 0 | |||
Turnaround Plan | South America | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 3.1 | 0 | |||
Turnaround Plan | Corporate, Non-Segment [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 7.8 | 0 | |||
Revitalization Plan July 2017 [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning of the year balance | 3.1 | 23.3 | 23.3 | ||
Re-engineering charges | 0.5 | 1.1 | 1.9 | 3.3 | 4.5 |
Restructuring Reserve, Accrual Adjustment | (0.7) | (0.3) | |||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | (0.5) | |||
End of period balance | 1 | 1 | 3.1 | ||
Revitalization Plan July 2017 [Member] | Europe | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | (0.3) | 0.9 | 1.1 | 1.8 | |
Revitalization Plan July 2017 [Member] | Asia Pacific | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 0 | (0.1) | 0 | 0.6 | |
Revitalization Plan July 2017 [Member] | North America | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 0.8 | 0.3 | 0.8 | 0.9 | |
Other Programs [Domain] | |||||
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | $ 0 | $ 1.8 | 0 | $ 2.6 | |
Severance | Turnaround Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures | (22.6) | (0.9) | |||
Severance | Revitalization Plan July 2017 [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures | (1.8) | (20.3) | |||
Other | Turnaround Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures | (1.4) | (10.9) | |||
Other | Revitalization Plan July 2017 [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures | $ (1.5) | $ (3.6) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 40.40% | 43.90% | 31.50% | 34.10% | |
Gross unrecognized tax benefit | $ 13.5 | $ 13.5 | $ 13.5 | ||
Accrued interest and penalties related to uncertain tax positions | 0.7 | 0.7 | $ 4 | ||
Unrecognized tax benefits that would impact effective tax rate, if recognized | $ 13.2 | $ 13.2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net Income Per Common Share [Line Items] | ||||||||
Net income (loss) | $ 34.4 | $ 63.8 | $ (7.8) | $ 7.8 | $ 39.4 | $ 36.9 | $ 90.4 | $ 84.1 |
Weighted-average basic shares outstanding | 49.1 | 48.8 | 49 | 48.7 | ||||
Common equivalent shares: | ||||||||
Effect of dilutive securities | 4 | 0.1 | 2.5 | 0.2 | ||||
Weighted-average diluted shares | 53.1 | 48.9 | 51.5 | 48.9 | ||||
Basic earnings per share | $ 0.70 | $ 0.16 | $ 1.84 | $ 1.73 | ||||
Diluted earnings per share | $ 0.65 | $ 0.16 | $ 1.76 | $ 1.72 | ||||
Excluded anti-dilutive shares | 3.3 | 3.9 | 4 | 3.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | $ (702.3) | $ (615.1) | $ (702.3) | $ (615.1) | $ (638.3) | $ (602.1) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (62.8) | (9) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1.2) | 1 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 1.2 | $ 16.3 | $ (81.5) | (19.3) | $ (7.7) | $ 19 | (64) | (8) | ||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives Before Tax | (3.5) | 2.1 | ||||||||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives, Tax | 0.7 | (0.6) | ||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (0.2) | (0.8) | ||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 1.2 | 0 | ||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 1.4 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | (0.8) | 0.3 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | (5) | |||||||||
Foreign Currency Items | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | (670) | (589.7) | (670) | (589.7) | (600.2) | (579.1) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (69.8) | (6.8) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (69.8) | (6.8) | ||||||||
Foreign Currency Items | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | (3.8) | |||||||||
Cash Flow Hedges | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | 0.8 | (0.8) | 0.8 | (0.8) | (2.4) | 1.7 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 6 | (2.8) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (2.8) | 1.5 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 3.2 | (1.3) | ||||||||
Cash Flow Hedges | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | (1.2) | |||||||||
Pension and Other Post-retirement Items | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | (33.1) | (24.6) | (33.1) | (24.6) | $ (35.7) | (24.7) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | 0.6 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.6 | (0.5) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 2.6 | $ 0.1 | ||||||||
Pension and Other Post-retirement Items | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | $ 0 | |||||||||
AOCI Attributable to Parent [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 1.2 | $ 16.3 | $ (81.5) | $ (19.3) | $ (7.7) | $ 19 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Restricted Cash | $ 12.5 | $ 2.9 | ||
Cash | 148.8 | 123.2 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 161.3 | $ 126.1 | $ 126.4 | $ 151.9 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Receivables [Abstract] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 129 | $ 110.7 |
Accounts Receivable, Allowance for Credit Loss | (40.9) | (63.6) |
Accounts Receivable, before Allowance for Credit Loss, Current | $ 169.9 | $ 174.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Inventory, Net [Abstract] | ||
Finished goods | $ 160.9 | $ 197.1 |
Work in process | 27.3 | 22.4 |
Raw materials and supplies | 29 | 25.7 |
Total inventories | $ 217.2 | $ 245.2 |
Long-Term Receivables (Details)
Long-Term Receivables (Details) $ in Millions | 9 Months Ended |
Sep. 26, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Financing Receivable, Past Due | $ 20.7 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at December 28, 2019 | 13.9 |
Write-offs | (3.5) |
Provision and reclassifications | 9.1 |
Currency translation adjustment | 0.5 |
Balance at September 26, 2020 | $ 20 |
Goodwill, Intangibles, and Tr_2
Goodwill, Intangibles, and Tradenames (Details) $ in Millions | Sep. 26, 2020USD ($) |
Japan Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 11.00% |
Reporting Unit, Zero or Negative Carrying Amount, Amount of Allocated Goodwill | $ 11 |
NaturCare Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 11.00% |
Reporting Unit, Zero or Negative Carrying Amount, Amount of Allocated Goodwill | $ 11.5 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Minimum [Member] | Japan Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | (0.155) |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Minimum [Member] | NaturCare Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | (0.040) |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Maximum [Member] | Japan Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.090 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Maximum [Member] | NaturCare Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.020 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Weighted Average [Member] | Japan Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.013 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Weighted Average [Member] | NaturCare Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.013 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Japan Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.090 |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | NaturCare Tradename [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Intangible Asset, Measurement Input | 0.100 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | Dec. 30, 2018 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ (0.6) | $ (1) | $ (2) | $ (3.1) | |||||||
Other Comprehensive Income (Loss) impact from Net Investment Hedging, Forward Points | (3.4) | (5.2) | (16.2) | (14.1) | |||||||
Net cash impact from hedging activity | (0.6) | (1.5) | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (1.2) | $ (16.3) | $ 81.5 | 19.3 | $ 7.7 | $ (19) | 64 | 8 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 702.3 | 615.1 | 702.3 | 615.1 | $ 638.3 | $ 602.1 | |||||
Fair Value Hedging [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Change in Unrealized Gain (Loss) on Foreign Currency Fair Value Hedging Instruments | 2.8 | 5.1 | $ 15.4 | 13.2 | |||||||
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 | ||||||||||
Net Equity Hedging [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ (5.6) | $ 5.3 | $ 6.9 | $ (9.9) | |||||||
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 | ||||||||||
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 1.2 | ||||||||||
Other Comprehensive Income (Loss) [Member] | Net Equity Hedging [Member] | Foreign exchange contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 3.8 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) - Forward Contracts [Member] - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 143 | $ 137.7 |
Derivative Liability, Notional Amount | 141.9 | $ 143.5 |
U.S. dollars | Short [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 32.8 | |
Euro | Short [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 83.4 | |
Korea (South), Won | Long [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 58.4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Financial Position) (Details) - Significant Other Observable Inputs (Level 2) - Designated as Hedging Instrument [Member] - Foreign exchange contracts - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Non-Trade Amounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 7.4 | $ 16 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 6 | $ 19.8 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives Before Tax | $ 3.5 | $ (2.1) | ||
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 | $ 1.4 | $ (8.8) | (31.6) | 0.2 |
Amount of gain or (loss) recognized in income on related hedged items | (1.4) | 9 | 33.6 | 0 |
Cash Flow Hedging [Member] | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (0.4) | (0.1) | 6.7 | (3.7) |
Cash Flow Hedging [Member] | Cost of products sold | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives Before Tax | 1 | (1) | 3.5 | (2.1) |
Net Equity Hedging [Member] | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (4.1) | 3.4 | 14.2 | (16.1) |
Net Equity Hedging [Member] | Euro Denominated Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (3.1) | $ 3.3 | $ (5.3) | $ 3.2 |
Debt (Details)
Debt (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 28, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | $ 765.9 | $ 765.9 | $ 273.2 | ||||
Long-term debt and finance lease obligations | 2.2 | 2.2 | 602.2 | ||||
Finance Lease, Liability | 3.6 | 3.6 | 3.6 | ||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0.2 | 0.2 | (0.2) | ||||
Debt and Lease Obligation | 768.1 | $ 768.1 | 875.4 | ||||
Line of Credit Facility, Interest Rate Description | Loans made under the Credit Agreement will be composed of (i) “Eurocurrency Borrowings”, bearing interest determined in reference to the LIBOR or the EURIBOR rate for the applicable currency and interest period, plus a margin, and/or (ii) “ABR Borrowings”, bearing interest at the sum of (A) the greatest of (x) the Prime Rate, (y) the NYFRB rate plus 0.5 percent, and (z) adjusted LIBOR on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1 percent, and (B) a margin. | ||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 3.75% | ||||||
Debt Instrument, Covenant Compliance | The Company is in compliance with the financial covenants in the Credit Agreement. | ||||||
Unused lines of credit | 299.6 | $ 299.6 | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 107.5 | 163.9 | $ 0 | ||||
Payment for debt extinguishment cost | 3.8 | 6 | |||||
Extinguishment of Debt, Amount | 121.1 | $ 98.7 | 219.8 | ||||
Gain (Loss) on Extinguishment of Debt | 9.8 | 49.9 | $ 0 | ||||
Senior Notes Due 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | $ 380.2 | $ 380.2 | 600 | ||||
Stated interest rate | 4.75% | 4.75% | |||||
Extinguishment of Debt, Gain (Loss), Per Share, Net of Tax | $ 0.20 | $ 1.02 | |||||
Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | [1] | $ 384.1 | $ 384.1 | 272 | |||
Line of Credit Facility, Current Borrowing Capacity | 650 | 650 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 850 | $ 850 | |||||
Line of Credit Facility, Number of Occasions Permitted to Increase Borrowing Capacity | 3 | ||||||
Line of Credit Facility, Additional Borrowing Capacity | 200 | $ 200 | |||||
Variable rate basis | LIBOR | ||||||
Unused lines of credit | $ 259.3 | $ 259.3 | |||||
Revolving Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.88% | ||||||
Weighted average interest rate on LIBOR-based borrowings | 2.00% | 2.00% | |||||
Uncommitted Lines of credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unused lines of credit | $ 40.3 | $ 40.3 | |||||
Letter of Credit [Member] | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50 | 50 | |||||
Swingline [Member] | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | 100 | |||||
Subsidiaries [Member] | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 325 | $ 325 | |||||
Minimum [Member] | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | ||||||
Minimum [Member] | Revolving Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||||
Maximum [Member] | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.275% | ||||||
Maximum [Member] | Revolving Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | ||||||
Euro | Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | $ 171.1 | $ 171.1 | $ 174.9 | ||||
Period 1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 5.75% | ||||||
Period 2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 5.25% | ||||||
Period 3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 4.50% | ||||||
Period 4 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 4.00% | ||||||
Period 5 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 3.75% | ||||||
[1] | (a) $171.1 million and $174.9 million denominated in Euro as of September 26, 2020 and December 28, 2019, respectively. |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Lease Expense Disclosure [Abstract] | |||||
Operating Lease, Expense | $ 10.3 | $ 12.7 | $ 32.7 | $ 38.3 | |
Finance Lease, Right-of-Use Asset, Amortization | 0.2 | 0.2 | 0.6 | 0.7 | |
Finance Lease, Interest Expense | 0 | 0.1 | 0.1 | 0.2 | |
Finance Lease, cost | 0.2 | $ 0.3 | 0.7 | 0.9 | |
Leases Supplemental Cash Flow Disclosure [Abstract] | |||||
Operating Lease, Payments | (29.2) | (37.2) | |||
Finance Lease, Interest Payment on Liability | 0 | (0.2) | |||
Finance Lease, Principal Payments | (0.3) | (1.3) | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 9.2 | $ 11 | |||
Lease Balance Sheet Disclosure [Abstract] | |||||
Operating lease assets | 75.5 | 75.5 | $ 84.1 | ||
Operating Lease, Liability, Current | 28.6 | 28.6 | 29.2 | ||
Operating Lease, Liability, Noncurrent | 48.5 | 48.5 | 56 | ||
Finance Lease, Gross PPE | 18.9 | 18.9 | 17.9 | ||
Finance Lease, Accumulated Amortization ROU | (11.5) | (11.5) | (10.3) | ||
Finance Lease, Right-of-Use Asset | 7.4 | 7.4 | 7.6 | ||
Finance Lease, Liability, Current | 1.4 | 1.4 | 1.3 | ||
Finance Lease, Liability, Noncurrent | $ 2.2 | $ 2.2 | $ 2.3 | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 6 months | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 months 24 days | 2 years 4 months 24 days | 2 years 9 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.80% | 4.80% | 5.20% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.10% | 5.10% | 5.10% | ||
Lease Liability Maturity Schedule | |||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 9.2 | $ 9.2 | $ 32.8 | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | 28.7 | 28.7 | 22.6 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 16.5 | 16.5 | 13 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 10.2 | 10.2 | 7.5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 6.7 | 6.7 | 5.6 | ||
Lessee, Operating Lease, Liability, to be Paid, after Year Four | 13.2 | 13.2 | 13 | ||
Lessee, Operating Lease, Liability, Payments, Due | 84.5 | 84.5 | 94.5 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (7.4) | (7.4) | (9.3) | ||
Operating Lease, Liability | 77.1 | 77.1 | 85.2 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 1.2 | 1.2 | 1.4 | ||
Finance Lease, Liability, to be Paid, Year One | 1.5 | 1.5 | 1.4 | ||
Finance Lease, Liability, to be Paid, Year Two | 1.1 | 1.1 | 1 | ||
Finance Lease, Liability, Payments, Due Year Three | 0 | 0 | 0 | ||
Finance Lease, Liability, Payments, Due Year Four | 0 | 0 | 0 | ||
Finance Lease, Liability, to be Paid, after Year Four | 0 | 0 | 0 | ||
Finance Lease, Liability, Payment, Due | 3.8 | 3.8 | 3.8 | ||
Finance Lease, Liability, Undiscounted Excess Amount | (0.2) | (0.2) | (0.2) | ||
Finance Lease, Liability | $ 3.6 | $ 3.6 | $ 3.6 | ||
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Renewal Term | 1 year | 1 year | |||
Lessee, Finance Lease, Renewal Term | 1 year | 1 year | |||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | |||
Lessee, Finance Lease, Renewal Term | 5 years | 5 years |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization | $ 2.4 | $ 0.8 | ||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2.1 | $ 2.1 | 6.3 | 5.9 |
Interest cost | 0.9 | 1.9 | 3.1 | 4.9 |
Expected return on plan assets | (1) | (1) | (3) | (3.2) |
Settlements and Curtailments | 0.8 | 0.1 | 1.2 | 0 |
Net amortization | 0.4 | 0.1 | 1.8 | 0.1 |
Net periodic (benefit) cost | 3.2 | 3.2 | 9.4 | 7.7 |
Post-retirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0 | 0.1 | 0.1 |
Interest cost | 0.1 | 0.1 | 0.3 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlements and Curtailments | 0 | 0 | 0 | 0 |
Net amortization | 0 | (0.3) | (0.6) | (0.9) |
Net periodic (benefit) cost | $ 0.2 | $ (0.2) | (0.2) | (0.4) |
Other Nonoperating Income (Expense) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic (benefit) cost | $ 2.8 | $ 1.3 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Debt, Carrying Value | $ 765.9 | $ 273.2 |
Senior Notes Due 2021 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Debt, Carrying Value | 380.2 | 600 |
Significant Other Observable Inputs (Level 2) | Senior Notes Due 2021 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 360 | $ 605.8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 477.2 | $ 418.1 | $ 1,250.5 | $ 1,380.7 | |
Segment profit | 106 | 46.4 | 210.6 | 203.9 | |
Unallocated expenses | (4.6) | (7.6) | 0 | (22) | |
Re-engineering charges (a) | (3.2) | (7.5) | (30.3) | (15.9) | |
Impairment of goodwill and intangibles | 0 | (19.7) | 0 | (19.7) | |
Gain (loss) on disposal of assets | (32.6) | 12.1 | (18.8) | 11.1 | |
Interest expense | (7.9) | (9.8) | (29.5) | (29.8) | |
Income (loss) before income taxes | 57.7 | 13.9 | 132 | 127.6 | |
Total identifiable assets | 1,191.4 | 1,191.4 | $ 1,262.4 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 121.2 | 98.9 | 317.7 | 359 | |
Segment profit | 29.3 | (0.9) | 42.7 | 29.6 | |
Total identifiable assets | 277.2 | 277.2 | 269.7 | ||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 140.1 | 148.8 | 394.9 | 460.4 | |
Segment profit | 38.8 | 32.7 | 90.5 | 99.9 | |
Total identifiable assets | 271.7 | 271.7 | 300.3 | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 146.3 | 103.5 | 371.6 | 347.8 | |
Segment profit | 21.9 | 3.3 | 47.1 | 41.1 | |
Total identifiable assets | 224.6 | 224.6 | 235.9 | ||
South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 69.6 | 66.9 | 166.3 | 213.5 | |
Segment profit | 16 | 11.3 | 30.3 | 33.3 | |
Total identifiable assets | 105.6 | 105.6 | 125.2 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total identifiable assets | 312.3 | 312.3 | $ 331.3 | ||
Beauty and Personal Care Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 63 | $ 60.5 | $ 167.7 | $ 190 |
Guarantor Information (Details)
Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net sales | $ 477.2 | $ 418.1 | $ 1,250.5 | $ 1,380.7 | ||||||
Other revenue | 0 | 0 | 0 | 0 | ||||||
Cost of Products Sold | 152.1 | 141.5 | 415.3 | 457.3 | ||||||
Gross margin | 325.1 | 276.6 | 835.2 | 923.4 | ||||||
Delivery, sales and administrative expense | 233.8 | 241.6 | 684.8 | 752 | ||||||
Re-engineering charges | 3.2 | 7.5 | 30.3 | 15.9 | ||||||
Gain (loss) on disposal of assets | (32.6) | 12.1 | (18.8) | 11.1 | ||||||
Operating income (loss) | 55.5 | 19.9 | 101.3 | 146.9 | ||||||
Interest income | 0.3 | 0.6 | 1 | 1.6 | ||||||
Interest expense | 8.2 | 10.4 | 30.5 | 31.4 | ||||||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||||||
Other expense (income), net | (10.1) | (3.8) | (60.2) | (10.5) | ||||||
Income (loss) before income taxes | 57.7 | 13.9 | 132 | 127.6 | ||||||
Provision (benefit) for income taxes | 23.3 | 6.1 | 41.6 | 43.5 | ||||||
Net income (loss) | 34.4 | $ 63.8 | $ (7.8) | 7.8 | $ 39.4 | $ 36.9 | 90.4 | 84.1 | ||
Comprehensive income | 35.6 | (11.5) | 26.4 | 76.1 | ||||||
Assets | ||||||||||
Cash and cash equivalents | 148.8 | 148.8 | $ 123.2 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 129 | 129 | 110.7 | |||||||
Inventories | 217.2 | 217.2 | 245.2 | |||||||
Non-trade amounts receivable, net | 27.9 | 27.9 | 39.1 | |||||||
Due from Related Parties, Current | 0 | 0 | 0 | |||||||
Prepaid expenses and other current assets | 28.7 | 28.7 | 20.3 | |||||||
Total current assets | 551.6 | 551.6 | 538.5 | |||||||
Deferred Income Tax Assets, Net | 184.2 | 184.2 | 186.1 | |||||||
Property, plant and equipment, net | 208.5 | 208.5 | 267.5 | |||||||
Operating lease assets | 75.5 | 75.5 | 84.1 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 10.1 | 10.1 | 15 | |||||||
Trademarks and tradenames, net | 22.8 | 22.8 | 24.6 | |||||||
Goodwill | 57.8 | 57.8 | 59.5 | |||||||
Equity Method Investments | 0 | 0 | 0 | |||||||
Notes Receivable, Related Parties, Noncurrent | 0 | 0 | 0 | |||||||
Other assets, net | 80.9 | 80.9 | 87.1 | |||||||
Total assets | 1,191.4 | 1,191.4 | 1,262.4 | |||||||
Liabilities And Shareholders' Equity | ||||||||||
Accounts payable | 96.3 | 96.3 | 125.4 | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 765.9 | 765.9 | 273.2 | |||||||
Due to Related Parties, Current | 0 | 0 | 0 | |||||||
Accrued liabilities | 344.9 | 344.9 | 290.3 | |||||||
Total current liabilities | 1,207.1 | 1,207.1 | 688.9 | |||||||
Long-term debt and finance lease obligations | 2.2 | 2.2 | 602.2 | |||||||
Notes Payable, Related Parties, Noncurrent | 0 | 0 | 0 | |||||||
Operating Lease, Liability, Noncurrent | 48.5 | 48.5 | 56 | |||||||
Other liabilities | 177.6 | 177.6 | 192.3 | |||||||
Total liabilities | 1,435.4 | 1,435.4 | 1,539.4 | |||||||
Total shareholders' equity (deficit) | (244) | $ (282.3) | (364) | (185) | $ (163.1) | (184) | (244) | (185) | (277) | $ (235.2) |
Total liabilities and shareholders' equity | 1,191.4 | 1,191.4 | 1,262.4 | |||||||
Operating Activities | ||||||||||
Net cash used in operating activities | 111.8 | 19.5 | ||||||||
Investing Activities | ||||||||||
Capital expenditures | (20.7) | (44) | ||||||||
Proceeds from disposal of property, plant and equipment | 16.7 | 20.4 | ||||||||
Net intercompany loans | 0 | 0 | ||||||||
Net cash provided by (used in) investing activities | (4) | (23.6) | ||||||||
Financing Activities | ||||||||||
Common stock cash dividends paid | 0 | (60.5) | ||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 0 | 0 | ||||||||
Common stock repurchase | (0.2) | (0.8) | ||||||||
Senior notes repayment | (107.5) | (163.9) | 0 | |||||||
Finance lease repayments | (0.3) | (1.3) | ||||||||
Net increase (decrease) in short-term debt | 100.3 | 46.7 | ||||||||
Payments of Debt Issuance Costs | (2) | (2.2) | ||||||||
Net intercompany borrowings | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | (66.1) | (18.1) | ||||||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (6.5) | (3.3) | ||||||||
Net change in cash, cash equivalents and restricted cash | 35.2 | (25.5) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 126.1 | 151.9 | 126.1 | 151.9 | 151.9 | |||||
Cash, cash equivalents and restricted cash at end of period | 161.3 | 126.4 | 161.3 | 126.4 | 126.1 | |||||
Parent | ||||||||||
Net sales | 0 | 0 | 0 | 0 | ||||||
Other revenue | 0 | 0 | 0 | 0 | ||||||
Cost of Products Sold | 0 | 0 | 0 | 0 | ||||||
Gross margin | 0 | 0 | 0 | 0 | ||||||
Delivery, sales and administrative expense | 2.7 | 2.7 | 5.9 | 6.4 | ||||||
Re-engineering charges | 0 | 0 | 0 | 0 | ||||||
Gain (loss) on disposal of assets | 0 | 0 | 0 | 0 | ||||||
Operating income (loss) | (2.7) | (2.7) | (5.9) | (6.4) | ||||||
Interest income | 4.6 | 4.8 | 13.8 | 15.1 | ||||||
Interest expense | 7.4 | 9.9 | 27.8 | 29.7 | ||||||
Income from equity investments in subsidiaries | 31.5 | 7 | 60.4 | 92.9 | ||||||
Other expense (income), net | (8.4) | (0.4) | (50) | (1.5) | ||||||
Income (loss) before income taxes | 34.4 | (0.4) | 90.5 | 73.4 | ||||||
Provision (benefit) for income taxes | 0 | (8.2) | 0.1 | (10.7) | ||||||
Net income (loss) | 34.4 | 7.8 | 90.4 | 84.1 | ||||||
Comprehensive income | 35.6 | (11.5) | 26.4 | 76.1 | ||||||
Assets | ||||||||||
Cash and cash equivalents | 0.5 | 0.5 | 0 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 0 | 0 | 0 | |||||||
Inventories | 0 | 0 | 0 | |||||||
Non-trade amounts receivable, net | 0 | 0 | 0 | |||||||
Due from Related Parties, Current | 326.4 | 326.4 | 325.9 | |||||||
Prepaid expenses and other current assets | 2 | 2 | 1.2 | |||||||
Total current assets | 328.9 | 328.9 | 327.1 | |||||||
Deferred Income Tax Assets, Net | 41.7 | 41.7 | 41.7 | |||||||
Property, plant and equipment, net | 0 | 0 | 0 | |||||||
Operating lease assets | 0 | 0 | 0 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 0 | 0 | 0 | |||||||
Trademarks and tradenames, net | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Equity Method Investments | 1,304.2 | 1,304.2 | 1,305.2 | |||||||
Notes Receivable, Related Parties, Noncurrent | 503.2 | 503.2 | 514.8 | |||||||
Other assets, net | 6.5 | 6.5 | 1.9 | |||||||
Total assets | 2,184.5 | 2,184.5 | 2,190.7 | |||||||
Liabilities And Shareholders' Equity | ||||||||||
Accounts payable | 0.6 | 0.6 | 0 | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 688.4 | 688.4 | 186.8 | |||||||
Due to Related Parties, Current | 1,496.7 | 1,496.7 | 1,440.8 | |||||||
Accrued liabilities | 242 | 242 | 239.1 | |||||||
Total current liabilities | 2,427.7 | 2,427.7 | 1,866.7 | |||||||
Long-term debt and finance lease obligations | 0 | 0 | 599.8 | |||||||
Notes Payable, Related Parties, Noncurrent | 0 | 0 | 0 | |||||||
Operating Lease, Liability, Noncurrent | 0 | 0 | 0 | |||||||
Other liabilities | 0.8 | 0.8 | 1.2 | |||||||
Total liabilities | 2,428.5 | 2,428.5 | 2,467.7 | |||||||
Total shareholders' equity (deficit) | (244) | (244) | (277) | |||||||
Total liabilities and shareholders' equity | 2,184.5 | 2,184.5 | 2,190.7 | |||||||
Operating Activities | ||||||||||
Net cash used in operating activities | (14.5) | (8.1) | ||||||||
Investing Activities | ||||||||||
Capital expenditures | 0 | 0 | ||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||||||
Net intercompany loans | 11.6 | 3.8 | ||||||||
Net cash provided by (used in) investing activities | 11.6 | 3.8 | ||||||||
Financing Activities | ||||||||||
Common stock cash dividends paid | 0 | (60.5) | ||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 0 | 0 | ||||||||
Common stock repurchase | (0.2) | (0.8) | ||||||||
Senior notes repayment | (163.9) | |||||||||
Finance lease repayments | 0 | 0 | ||||||||
Net increase (decrease) in short-term debt | 117.5 | 52.9 | ||||||||
Payments of Debt Issuance Costs | (2) | (2.2) | ||||||||
Net intercompany borrowings | 56 | 14.9 | ||||||||
Net cash provided by (used in) financing activities | 7.4 | 4.3 | ||||||||
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 | 4.5 | 0 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 0 | 0 | 0 | 0 | 0 | |||||
Cash, cash equivalents and restricted cash at end of period | 4.5 | 0 | 4.5 | 0 | 0 | |||||
Guarantor | ||||||||||
Net sales | 0 | 0 | 0 | 0 | ||||||
Other revenue | 22.7 | 20.9 | 61.7 | 72.7 | ||||||
Cost of Products Sold | 0 | 2.2 | 6.2 | 15.8 | ||||||
Gross margin | 22.7 | 18.7 | 55.5 | 56.9 | ||||||
Delivery, sales and administrative expense | 22.3 | 19 | 80.6 | 55.5 | ||||||
Re-engineering charges | 1.1 | 0.4 | 6.7 | 1.2 | ||||||
Gain (loss) on disposal of assets | (30.4) | 0 | (30.4) | 0 | ||||||
Operating income (loss) | (31.1) | (0.7) | (62.2) | 0.2 | ||||||
Interest income | 0.2 | 0.7 | 0.8 | 1.9 | ||||||
Interest expense | 8.9 | 11.8 | 28.2 | 37.6 | ||||||
Income from equity investments in subsidiaries | 71.6 | (1.2) | 125.9 | 102.8 | ||||||
Other expense (income), net | 1.2 | (2.1) | (20.9) | (0.8) | ||||||
Income (loss) before income taxes | 30.6 | (10.9) | 57.2 | 68.1 | ||||||
Provision (benefit) for income taxes | (0.1) | (12.5) | (0.3) | (16.3) | ||||||
Net income (loss) | 30.7 | 1.6 | 57.5 | 84.4 | ||||||
Comprehensive income | 33.4 | (18.9) | (3) | 75 | ||||||
Assets | ||||||||||
Cash and cash equivalents | 0.9 | 0.9 | 0.3 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 0 | 0 | 0 | |||||||
Inventories | 0 | 0 | 0 | |||||||
Non-trade amounts receivable, net | 159.5 | 159.5 | 166.2 | |||||||
Due from Related Parties, Current | 1,612.3 | 1,612.3 | 1,546.3 | |||||||
Prepaid expenses and other current assets | 15.4 | 15.4 | 16 | |||||||
Total current assets | 1,788.1 | 1,788.1 | 1,728.8 | |||||||
Deferred Income Tax Assets, Net | 42.1 | 42.1 | 42.2 | |||||||
Property, plant and equipment, net | 55.2 | 55.2 | 85.7 | |||||||
Operating lease assets | 4.1 | 4.1 | 4.7 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 0.1 | 0.1 | 0.1 | |||||||
Trademarks and tradenames, net | 0 | 0 | 0 | |||||||
Goodwill | 2.9 | 2.9 | 2.9 | |||||||
Equity Method Investments | 1,217.5 | 1,217.5 | 1,208.8 | |||||||
Notes Receivable, Related Parties, Noncurrent | 102 | 102 | 95.7 | |||||||
Other assets, net | 9.9 | 9.9 | 12.7 | |||||||
Total assets | 3,221.9 | 3,221.9 | 3,181.6 | |||||||
Liabilities And Shareholders' Equity | ||||||||||
Accounts payable | 5.1 | 5.1 | 8.3 | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 0 | 0 | 0 | |||||||
Due to Related Parties, Current | 430.9 | 430.9 | 406.2 | |||||||
Accrued liabilities | 41.6 | 41.6 | 65.6 | |||||||
Total current liabilities | 477.6 | 477.6 | 480.1 | |||||||
Long-term debt and finance lease obligations | 0 | 0 | 0 | |||||||
Notes Payable, Related Parties, Noncurrent | 1,414.3 | 1,414.3 | 1,362.2 | |||||||
Operating Lease, Liability, Noncurrent | 3.5 | 3.5 | 4 | |||||||
Other liabilities | 104.9 | 104.9 | 110.7 | |||||||
Total liabilities | 2,000.3 | 2,000.3 | 1,957 | |||||||
Total shareholders' equity (deficit) | 1,221.6 | 1,221.6 | 1,224.6 | |||||||
Total liabilities and shareholders' equity | 3,221.9 | 3,221.9 | 3,181.6 | |||||||
Operating Activities | ||||||||||
Net cash used in operating activities | (20.7) | 86.7 | ||||||||
Investing Activities | ||||||||||
Capital expenditures | (13.4) | (23.4) | ||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||||||
Net intercompany loans | (98.6) | (11.4) | ||||||||
Net cash provided by (used in) investing activities | (112) | (34.8) | ||||||||
Financing Activities | ||||||||||
Common stock cash dividends paid | 0 | 0 | ||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 0 | 0 | ||||||||
Common stock repurchase | 0 | 0 | ||||||||
Senior notes repayment | 0 | |||||||||
Finance lease repayments | 0 | 0 | ||||||||
Net increase (decrease) in short-term debt | 0 | 0 | ||||||||
Payments of Debt Issuance Costs | 0 | 0 | ||||||||
Net intercompany borrowings | 132.6 | (50.1) | ||||||||
Net cash provided by (used in) financing activities | 132.6 | (50.1) | ||||||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0.7 | (0.3) | ||||||||
Net change in cash, cash equivalents and restricted cash | 0.6 | 1.5 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | |||||
Cash, cash equivalents and restricted cash at end of period | 0.9 | 1.8 | 0.9 | 1.8 | 0.3 | |||||
Non-Guarantors | ||||||||||
Net sales | 478.6 | 419.6 | 1,252.8 | 1,385.4 | ||||||
Other revenue | 0.3 | 2.2 | 6.5 | 15.8 | ||||||
Cost of Products Sold | 176.4 | 164 | 479.6 | 532.1 | ||||||
Gross margin | 302.5 | 257.8 | 779.7 | 869.1 | ||||||
Delivery, sales and administrative expense | 208.9 | 219.8 | 598.3 | 692.7 | ||||||
Re-engineering charges | 2.1 | 7.1 | 23.6 | 14.7 | ||||||
Gain (loss) on disposal of assets | (2.2) | 12.1 | 11.6 | 11.1 | ||||||
Operating income (loss) | 89.3 | 23.3 | 169.4 | 153.1 | ||||||
Interest income | 6 | 8.3 | 19.2 | 27.9 | ||||||
Interest expense | 2.4 | 1.9 | 7.3 | 7.4 | ||||||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||||||
Other expense (income), net | (2.9) | (1.3) | 10.7 | (8.2) | ||||||
Income (loss) before income taxes | 95.8 | 31 | 170.6 | 181.8 | ||||||
Provision (benefit) for income taxes | 23.4 | 26.8 | 41.8 | 70.5 | ||||||
Net income (loss) | 72.4 | 4.2 | 128.8 | 111.3 | ||||||
Comprehensive income | 71.7 | (17.1) | 49.6 | 117.9 | ||||||
Assets | ||||||||||
Cash and cash equivalents | 147.4 | 147.4 | 122.9 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 129 | 129 | 110.7 | |||||||
Inventories | 217.2 | 217.2 | 245.2 | |||||||
Non-trade amounts receivable, net | 83.6 | 83.6 | 84.9 | |||||||
Due from Related Parties, Current | 234.5 | 234.5 | 209.9 | |||||||
Prepaid expenses and other current assets | 49.7 | 49.7 | 41.1 | |||||||
Total current assets | 861.4 | 861.4 | 814.7 | |||||||
Deferred Income Tax Assets, Net | 107 | 107 | 105.6 | |||||||
Property, plant and equipment, net | 153.3 | 153.3 | 181.8 | |||||||
Operating lease assets | 71.4 | 71.4 | 79.4 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 10 | 10 | 14.9 | |||||||
Trademarks and tradenames, net | 22.8 | 22.8 | 24.6 | |||||||
Goodwill | 54.9 | 54.9 | 56.6 | |||||||
Equity Method Investments | 0 | 0 | 0 | |||||||
Notes Receivable, Related Parties, Noncurrent | 1,088.9 | 1,088.9 | 1,046.1 | |||||||
Other assets, net | 142.1 | 142.1 | 150 | |||||||
Total assets | 2,511.8 | 2,511.8 | 2,473.7 | |||||||
Liabilities And Shareholders' Equity | ||||||||||
Accounts payable | 90.6 | 90.6 | 117.1 | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 77.5 | 77.5 | 86.4 | |||||||
Due to Related Parties, Current | 245.6 | 245.6 | 235.1 | |||||||
Accrued liabilities | 314.9 | 314.9 | 235.6 | |||||||
Total current liabilities | 728.6 | 728.6 | 674.2 | |||||||
Long-term debt and finance lease obligations | 2.2 | 2.2 | 2.4 | |||||||
Notes Payable, Related Parties, Noncurrent | 279.8 | 279.8 | 294.4 | |||||||
Operating Lease, Liability, Noncurrent | 45 | 45 | 52 | |||||||
Other liabilities | 156.1 | 156.1 | 161.3 | |||||||
Total liabilities | 1,211.7 | 1,211.7 | 1,184.3 | |||||||
Total shareholders' equity (deficit) | 1,300.1 | 1,300.1 | 1,289.4 | |||||||
Total liabilities and shareholders' equity | 2,511.8 | 2,511.8 | 2,473.7 | |||||||
Operating Activities | ||||||||||
Net cash used in operating activities | 156.6 | 164.8 | ||||||||
Investing Activities | ||||||||||
Capital expenditures | (7.3) | (20.6) | ||||||||
Proceeds from disposal of property, plant and equipment | 16.7 | 20.4 | ||||||||
Net intercompany loans | (106.5) | 67.9 | ||||||||
Net cash provided by (used in) investing activities | (97.1) | 67.7 | ||||||||
Financing Activities | ||||||||||
Common stock cash dividends paid | 0 | 0 | ||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | (39.2) | (226.2) | ||||||||
Common stock repurchase | 0 | 0 | ||||||||
Senior notes repayment | 0 | |||||||||
Finance lease repayments | (0.3) | (1.3) | ||||||||
Net increase (decrease) in short-term debt | (17.2) | (6.2) | ||||||||
Payments of Debt Issuance Costs | 0 | 0 | ||||||||
Net intercompany borrowings | 34.6 | (22.8) | ||||||||
Net cash provided by (used in) financing activities | (22.1) | (256.5) | ||||||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (7.2) | (3) | ||||||||
Net change in cash, cash equivalents and restricted cash | 30.2 | (27) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 125.8 | 151.6 | 125.8 | 151.6 | 151.6 | |||||
Cash, cash equivalents and restricted cash at end of period | 156 | 124.6 | 156 | 124.6 | 125.8 | |||||
Eliminations | ||||||||||
Net sales | (1.4) | (1.5) | (2.3) | (4.7) | ||||||
Other revenue | (23) | (23.1) | (68.2) | (88.5) | ||||||
Cost of Products Sold | (24.3) | (24.7) | (70.5) | (90.6) | ||||||
Gross margin | (0.1) | 0.1 | 0 | (2.6) | ||||||
Delivery, sales and administrative expense | (0.1) | 0.1 | 0 | (2.6) | ||||||
Re-engineering charges | 0 | 0 | 0 | 0 | ||||||
Gain (loss) on disposal of assets | 0 | 0 | 0 | 0 | ||||||
Operating income (loss) | 0 | 0 | 0 | 0 | ||||||
Interest income | (10.5) | (13.2) | (32.8) | (43.3) | ||||||
Interest expense | (10.5) | (13.2) | (32.8) | (43.3) | ||||||
Income from equity investments in subsidiaries | (103.1) | (5.8) | (186.3) | (195.7) | ||||||
Other expense (income), net | 0 | 0 | 0 | 0 | ||||||
Income (loss) before income taxes | (103.1) | (5.8) | (186.3) | (195.7) | ||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | (103.1) | (5.8) | (186.3) | (195.7) | ||||||
Comprehensive income | (105.1) | 36 | (46.6) | (192.9) | ||||||
Assets | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 0 | 0 | 0 | |||||||
Inventories | 0 | 0 | 0 | |||||||
Non-trade amounts receivable, net | (215.2) | (215.2) | (212) | |||||||
Due from Related Parties, Current | (2,173.2) | (2,173.2) | (2,082.1) | |||||||
Prepaid expenses and other current assets | (38.4) | (38.4) | (38) | |||||||
Total current assets | (2,426.8) | (2,426.8) | (2,332.1) | |||||||
Deferred Income Tax Assets, Net | (6.6) | (6.6) | (3.4) | |||||||
Property, plant and equipment, net | 0 | 0 | 0 | |||||||
Operating lease assets | 0 | 0 | 0 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 0 | 0 | 0 | |||||||
Trademarks and tradenames, net | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Equity Method Investments | (2,521.7) | (2,521.7) | (2,514) | |||||||
Notes Receivable, Related Parties, Noncurrent | (1,694.1) | (1,694.1) | (1,656.6) | |||||||
Other assets, net | (77.6) | (77.6) | (77.5) | |||||||
Total assets | (6,726.8) | (6,726.8) | (6,583.6) | |||||||
Liabilities And Shareholders' Equity | ||||||||||
Accounts payable | 0 | 0 | 0 | |||||||
Short-term borrowings and current portion of long-term debt and finance lease obligations | 0 | 0 | 0 | |||||||
Due to Related Parties, Current | (2,173.2) | (2,173.2) | (2,082.1) | |||||||
Accrued liabilities | (253.6) | (253.6) | (250) | |||||||
Total current liabilities | (2,426.8) | (2,426.8) | (2,332.1) | |||||||
Long-term debt and finance lease obligations | 0 | 0 | 0 | |||||||
Notes Payable, Related Parties, Noncurrent | (1,694.1) | (1,694.1) | (1,656.6) | |||||||
Operating Lease, Liability, Noncurrent | 0 | 0 | 0 | |||||||
Other liabilities | (84.2) | (84.2) | (80.9) | |||||||
Total liabilities | (4,205.1) | (4,205.1) | (4,069.6) | |||||||
Total shareholders' equity (deficit) | (2,521.7) | (2,521.7) | (2,514) | |||||||
Total liabilities and shareholders' equity | (6,726.8) | (6,726.8) | (6,583.6) | |||||||
Operating Activities | ||||||||||
Net cash used in operating activities | (9.6) | (223.9) | ||||||||
Investing Activities | ||||||||||
Capital expenditures | 0 | 0 | ||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | ||||||||
Net intercompany loans | 193.5 | (60.3) | ||||||||
Net cash provided by (used in) investing activities | 193.5 | (60.3) | ||||||||
Financing Activities | ||||||||||
Common stock cash dividends paid | 0 | 0 | ||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 39.2 | 226.2 | ||||||||
Common stock repurchase | 0 | 0 | ||||||||
Senior notes repayment | 0 | |||||||||
Finance lease repayments | 0 | 0 | ||||||||
Net increase (decrease) in short-term debt | 0 | 0 | ||||||||
Payments of Debt Issuance Costs | 0 | 0 | ||||||||
Net intercompany borrowings | (223.2) | 58 | ||||||||
Net cash provided by (used in) financing activities | (184) | 284.2 | ||||||||
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 | (0.1) | 0 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | |||||
Cash, cash equivalents and restricted cash at end of period | $ (0.1) | $ 0 | $ (0.1) | $ 0 | $ 0 |