Cover
Cover - shares | 9 Months Ended | |
Sep. 25, 2021 | Nov. 01, 2021 | |
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. 25, 2021 | |
Current Fiscal Year End Date | --12-25 | |
Document Fiscal Year Focus | 2021 | |
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, $0.01 par value | |
Trading Symbol | TUP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,880,241 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 376.9 | $ 423.7 | $ 1,207.4 | $ 1,109.5 |
Cost of products sold | 129 | 132.5 | 380 | 362.1 |
Gross profit | 247.9 | 291.2 | 827.4 | 747.4 |
Selling, general and administrative expense | 190.7 | 205.7 | 620.5 | 608.7 |
Re-engineering charges | 1.8 | 3.9 | 9.7 | 29.6 |
(Gain) loss on disposal of assets | (1.7) | 32.3 | (8.9) | 18.5 |
Operating income (loss) | 57.1 | 49.3 | 206.1 | 90.6 |
(Gain) loss on debt extinguishment | 0 | (9.9) | 8.1 | (49.9) |
Interest expense | 8.2 | 8.2 | 29.7 | 30.5 |
Interest income | (0.3) | (0.3) | (0.9) | (1) |
Other (income) expense, net | 1.2 | 0 | 0.8 | (10.7) |
Income (loss) from continuing operations before income taxes | 48 | 51.3 | 168.4 | 121.7 |
Provision (benefit) for income taxes | (12.4) | 21.9 | 32.2 | 38.7 |
Income from continuing operations | 60.4 | 29.4 | 136.2 | 83 |
Income (loss) from discontinued operations before income taxes | 4.3 | 6.3 | 8.1 | 10.3 |
Gain (loss) on held for sale assets and dispositions | (148.1) | 0 | (147.1) | 0 |
Provision (benefit) for income taxes | 2.7 | 1.3 | 2.4 | 2.9 |
Income (loss) on discontinued operations | (146.5) | 5 | (141.4) | 7.4 |
Net income (loss) | $ (86.1) | $ 34.4 | $ (5.2) | $ 90.4 |
Earnings Per Share [Abstract] | ||||
Basic earnings (loss) from continuing operations - per share | $ 1.22 | $ 0.60 | $ 2.75 | $ 1.69 |
Basic earnings (loss) from discontinued operations per share | (2.97) | 0.10 | (2.85) | 0.15 |
Basic earnings (loss) per share - Total | (1.75) | 0.70 | (0.10) | 1.84 |
Diluted earnings (loss) from continuing operations - per share | 1.14 | 0.56 | 2.56 | 1.62 |
Diluted earnings (loss) from discontinued operations - per share | (2.77) | 0.09 | (2.66) | 0.14 |
Diluted earnings (loss) per share - Total | $ (1.63) | $ 0.65 | $ (0.10) | $ 1.76 |
Basic weighted-average shares | 49.4 | 49.1 | 49.5 | 49 |
Diluted weighted-average shares | 52.8 | 53.1 | 53.1 | 51.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Net income (loss) | $ (86.1) | $ 34.4 | $ (5.2) | $ 90.4 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (2.9) | 1 | 4.4 | (69.8) |
Deferred gain (loss) on cash flow hedges, net of tax | 0.2 | (1.3) | 0.3 | 3.2 |
Pension and other post-retirement benefit (costs), net of tax | 1 | 1.5 | 3.1 | 2.6 |
Other comprehensive income (loss) | (1.7) | 1.2 | 7.8 | (64) |
Total comprehensive income (loss) | $ (87.8) | $ 35.6 | $ 2.6 | $ 26.4 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Assets | ||
Cash and cash equivalents | $ 123.8 | $ 134.1 |
Accounts receivable, net | 93 | 95.9 |
Inventory, net | 265.3 | 211 |
Non-trade accounts receivable, net | 37.8 | 23.4 |
Prepaid expenses and other current assets | 30.3 | 27.9 |
Current assets held for sale | 9.1 | 53.8 |
Total current assets | 559.3 | 546.1 |
Deferred tax assets, net | 212.4 | 172.3 |
Property, plant and equipment, net | 166.8 | 188.7 |
Operating lease right-of-use assets | 81 | 91 |
Long-term receivables, net | 6.7 | 12.4 |
Trade names, net | 11 | 11.7 |
Goodwill | 51.7 | 54 |
Other assets, net | 98.2 | 97.9 |
Assets held for sale | 20.6 | 45.8 |
Total assets | 1,207.7 | 1,219.9 |
Liabilities And Shareholders' Equity | ||
Accounts payable | 102.1 | 116.3 |
Current debt and finance lease obligations | 512.4 | 424.7 |
Accrued liabilities | 277.8 | 321.3 |
Current liabilities held for sale | 128.6 | 47.4 |
Total current liabilities | 1,020.9 | 909.7 |
Long-term debt and finance lease obligations | 166 | 258.6 |
Operating lease liabilities | 61.1 | 66.1 |
Other liabilities | 171.8 | 176.3 |
Liabilities held for sale | 11.2 | 13.9 |
Total liabilities | 1,431 | 1,424.6 |
Commitments and contingencies (Note 19) | ||
Shareholders' equity (deficit): | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 0.6 | 0.6 |
Paid-in capital | 218.5 | 215.5 |
Retained earnings | 1,115.8 | 1,161.6 |
Treasury stock, 14,726,849 and 14,312,853 shares, respectively, at cost | (880.1) | (896.5) |
Accumulated other comprehensive loss | (678.1) | (685.9) |
Total shareholders' equity (deficit) | (223.3) | (204.7) |
Total liabilities and shareholders' equity | $ 1,207.7 | $ 1,219.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 25, 2021 | Dec. 26, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Par or Stated Value Per Share | $ 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 | 14,726,849 | 14,312,853 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent |
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) | (81.5) | (81.5) | ||||
Stock and options issued for incentive plans, shares | (0.1) | |||||
Stock and options issued for incentive plans | 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) | (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 | ||||
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) | 16.3 | 16.3 | ||||
Stock and options issued for incentive plans, shares | (0.1) | |||||
Stock and options issued for incentive plans | 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) | 1.2 | 1.2 | ||||
Stock and options issued for incentive plans, shares | (0.1) | |||||
Stock and options issued for incentive plans | 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 | ||||
Beginning Balance at Dec. 26, 2020 | (204.7) | $ 0.6 | $ (896.5) | 215.5 | 1,161.6 | (685.9) |
Beginning Balance Shares, Issued at Dec. 26, 2020 | 63.6 | 14.3 | ||||
Net income (loss) | 45.3 | 45.3 | ||||
Other comprehensive income (loss) | 5.3 | 5.3 | ||||
Stock and options issued for incentive plans, shares | (0.3) | |||||
Stock and options issued for incentive plans | 0.8 | $ 19.1 | (0.2) | (18.1) | ||
Ending Balance at Mar. 27, 2021 | (153.3) | $ 0.6 | $ (877.4) | 215.3 | 1,188.8 | (680.6) |
Ending Balance Shares, Issued at Mar. 27, 2021 | 63.6 | 14 | ||||
Beginning Balance at Dec. 26, 2020 | (204.7) | $ 0.6 | $ (896.5) | 215.5 | 1,161.6 | (685.9) |
Beginning Balance Shares, Issued at Dec. 26, 2020 | 63.6 | 14.3 | ||||
Net income (loss) | (5.2) | |||||
Other comprehensive income (loss) | 7.8 | |||||
Ending Balance at Sep. 25, 2021 | (223.3) | $ 0.6 | $ (880.1) | 218.5 | 1,115.8 | (678.1) |
Ending Balance Shares, Issued at Sep. 25, 2021 | 63.6 | 14.7 | ||||
Beginning Balance at Mar. 27, 2021 | (153.3) | $ 0.6 | $ (877.4) | 215.3 | 1,188.8 | (680.6) |
Beginning Balance Shares, Issued at Mar. 27, 2021 | 63.6 | 14 | ||||
Net income (loss) | 35.6 | 35.6 | ||||
Other comprehensive income (loss) | 4.2 | 4.2 | ||||
Stock and options issued for incentive plans, shares | (0.3) | |||||
Stock and options issued for incentive plans | 0.7 | $ 22.1 | 0.9 | (22.3) | ||
Ending Balance at Jun. 26, 2021 | (112.8) | $ 0.6 | $ (855.3) | 216.2 | 1,202.1 | (676.4) |
Ending Balance Shares, Issued at Jun. 26, 2021 | 63.6 | 13.7 | ||||
Net income (loss) | (86.1) | (86.1) | ||||
Other comprehensive income (loss) | (1.7) | (1.7) | ||||
Repurchase of common stock (in shares) | 1 | |||||
Repurchase of common stock | (25) | $ (25) | ||||
Stock and options issued for incentive plans, shares | 0 | |||||
Stock and options issued for incentive plans | 2.3 | $ 0.2 | 2.3 | (0.2) | ||
Ending Balance at Sep. 25, 2021 | $ (223.3) | $ 0.6 | $ (880.1) | $ 218.5 | $ 1,115.8 | $ (678.1) |
Ending Balance Shares, Issued at Sep. 25, 2021 | 63.6 | 14.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
Operating Activities | ||
Net income (loss) | $ (5.2) | $ 90.4 |
Less: (Income) loss from discontinued operations | 141.4 | (7.4) |
Income from continuing operations | 136.2 | 83 |
Depreciation and amortization | 29.2 | 31.1 |
Unrealized foreign exchange (gain) loss | 0 | 0.7 |
Stock-based compensation | 6.2 | 6.8 |
Amortization of deferred debt issuance costs | 4.1 | 1.4 |
(Gain) loss on disposal of assets | (9.9) | 19.1 |
Provision for credit losses | 3.8 | 11.9 |
(Gain) loss on debt extinguishment | 8.1 | (49.9) |
Write-down of inventories | 9.2 | 8.2 |
Net change in deferred taxes | (37.5) | (2.2) |
Net cash impact from hedging activity | (4.2) | (0.6) |
Other | (0.2) | 0.3 |
Changes in assets and liabilities: | ||
Accounts receivable | 1.3 | (26.1) |
Inventories | (70.1) | 3.9 |
Non-trade accounts receivable | (13.7) | 2.1 |
Prepaid expenses | (4.2) | (6.5) |
Other assets | (0.9) | (0.7) |
Accounts payable and accrued liabilities | (39) | 30.6 |
Income taxes payable | (1.5) | 3 |
Other liabilities | (13.3) | (3.7) |
Net cash provided by (used in) operating activities | 3.6 | 112.4 |
Investing Activities | ||
Capital expenditures | (25.1) | (20.5) |
Proceeds from disposal of assets | 14.1 | 16.4 |
Net cash provided by (used in) investing activities | (11) | (4.1) |
Financing Activities | ||
Term loan repayment | (101.2) | 0 |
Senior notes repayment | 0 | 163.9 |
Net increase (decrease) in short-term debt | (94.4) | (100.3) |
Debt issuance costs payment | (2.2) | (2) |
Finance lease repayments | (1) | (0.3) |
Common stock repurchase | (25) | 0 |
Cash payments of employee withholding tax for stock awards | (2.9) | (0.2) |
Proceeds from exercise of stock options | 0.5 | 0 |
Net cash provided by (used in) financing activities | (37.4) | (66.1) |
Discontinued Operations | ||
Cash used in operating activities | 2.7 | (0.6) |
Cash provided by investing activities | 30.5 | 0.1 |
Cash provided by (used in) discontinued operations | 33.2 | (0.5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6.4) | (6.5) |
Net change in cash, cash equivalents and restricted cash | (18) | 35.2 |
Cash, cash equivalents and restricted cash at beginning of year | 150.5 | 126.1 |
Cash, cash equivalents and restricted cash at end of period | $ 132.5 | $ 161.3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of Tupperware Brands Corporation and its subsidiaries, collectively the “Company” or “Tupperware”, with all intercompany transactions and balances having been eliminated. The Company prepared the unaudited Condensed Consolidated Financial Statements in accordance with United States generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of results. Certain information and note disclosures normally included in the financial statements prepared in conformity with GAAP for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, the accompanying unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with the audited 2020 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K/A for the year ended December 26, 2020. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. Discontinued Operations Discontinued operations include certain key brands of the Company’s beauty business including Avory Shlain, House of Fuller, Nutrimetics, and Nuvo. The Company completed the sale of Avroy Shlain in the first quarter of 2021,and as of the third quarter of 2021, has executed two letters of intent for House of Fuller and Nutrimetics. The Company is actively exploring strategic alternatives for Nuvo. The Company expects to complete the dispositions of House of Fuller, Nutrimetrics, and Nuvo in the next twelve months. The Company has determined that these dispositions represent a strategic shift that will have a major effect on our results of operations. As such, reflected below are the results of the beauty businesses as discontinued operations including all comparative prior period information in these Condensed Consolidated Financial Statements. Certain costs previously allocated to the beauty business for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. See Note 13, Held for Sale Assets and Discontinued Operations, for additional information. Goodwill and Intangible Assets The Company conducts goodwill impairment testing in the third quarter of each year or whenever indicators of impairment exists. If an indicator of impairment exists, the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. In the current period, the Company performed qualitative assessments for reporting units where no impairment indicators existed and a quantitative assessment for a reporting unit with declining performance. The Company concluded that there was no impairment based upon the assessments performed. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with GAAP 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 Condensed Consolidated Financial Statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ materially from these estimates. For the third quarter ended September 25, 2021, the impact on business activity brought about by the Coronavirus pandemic (“COVID-19”) remains present. As a result, many of the Company's estimates and assumptions require 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. COVID-19 Since early 2020, the Company has followed guidance from the Centers for Disease Control and Prevention ("CDC") and the World Health Organization ("WHO") on actions required by individuals and businesses following the declaration of COVID-19 as a pandemic. Since 2020 the pandemic has impacted worldwide economic activity and many governments have implemented policies intended to stop or slow the further spread of the disease. These policies, such as shelter-in-place orders, remained in place for a significant period of time, resulting in the temporary closure of schools and non-essential businesses. The Company has continued to respond by taking actions to keep employees protected, support the Company’s global independent distributors, directors, managers and dealers (the "Sales Force") and communities, and maintain business continuity. A top priority for the Company as it continues to navigate the impacts of 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 continued 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, incorporate virtual meetings and restrict all non-essential employee travel until further notice. While global vaccination efforts are underway, the continued impact of COVID-19, including any increases in infection rates, new variants of the virus, and renewed governmental action to slow the spread of COVID-19, cannot be estimated. New Accounting Pronouncements Standards Recently Adopted 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 losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment also removed certain required disclosures that no longer are considered cost beneficial. This guidance is effective for fiscal years beginning after December 15, 2020. The Company adopted this guidance at the beginning of the first quarter of 2021 and the adoption did not have any material impact on its Condensed 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 Condensed Consolidated Financial Statements. |
Shipping and Handling Costs
Shipping and Handling Costs | 9 Months Ended |
Sep. 25, 2021 | |
Shipping and Handling Costs [Abstract] | |
Shipping and Handling Costs | Note 2: Shipping and Handling Costs The cost of products sold line item includes costs related to the purchase and manufacture of goods sold by the Company. Among these costs are inbound freight charges, duties, purchasing and receiving costs, inspection costs, depreciation expense, internal transfer costs and warehousing costs of raw material, work in process and packing materials. The warehousing and distribution costs of finished goods are included in selling, general and administrative expense. 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 25, September 26, September 25, September 26, Distribution costs $ 32.5 $ 36.7 $ 113.2 $ 92.6 |
Promotional Costs
Promotional Costs | 9 Months Ended |
Sep. 25, 2021 | |
Promotional Costs [Abstract] | |
Promotional Costs | Note 3: 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. These activities are 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. Programs are generally designed to recognize Sales Force members for achieving a primary objective. An example is holding a certain number of product demonstrations. In this situation, the Company offers a prize to Sales Force members that achieve the targeted number of product demonstrations over a specified period. The period runs from a couple of weeks to several months. The prizes are generally graded, in that meeting one level may result in receiving a piece of jewelry, with higher achievement resulting in more valuable prizes such as a television or a trip. Similar programs are designed to reward current Sales Force members who reach certain goals by promoting them to a higher level in the organization where their earning opportunity would be expanded, and they would take on additional responsibilities for adding new Sales Force members and providing training and motivation to new and existing Sales Force members. Other business drivers, such as scheduling product demonstrations, increasing the number of Sales Force members, holding product demonstrations, or increasing end consumer attendance at product demonstrations, may also be the focus of a program. The Company also offers commissions for achieving targeted sales levels. These types of awards are generally based upon the sales achievement of at least a mid-level member of the Sales Force, and her or his down-line members. The down-line consists of those Sales Force members that have been directly added to the Sales Force by a given Sales Force member, as well as those added by her or his down-line member. In this manner, Sales Force members can build an extensive organization over time if they are committed to adding and developing their units. In addition to the commission, the positive performance of a unit may also entitle its leader to the use of a Company-provided vehicle and in some cases, the permanent awarding of a vehicle. Similar to the prize programs noted earlier, these programs generally offer varying levels of vehicles that are dependent upon performance. 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 selling, general 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 25, September 26, September 25, September 26, Promotional costs $ 51.9 $ 68.6 $ 184.6 $ 181.1 |
Incentive Compensation Plans
Incentive Compensation Plans | 9 Months Ended |
Sep. 25, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Compensation Plans | Note 4: Incentive Compensation Plans Stock Options Stock option activity for 2021, under all of the Company's incentive plans, is summarized in the following table: Stock Options Weighted Average Aggregate Intrinsic Value Outstanding at December 26, 2020 4,074,398 $ 43.74 Granted — — Expired / Forfeited (632,007) 57.51 Exercised (13,702) 37.16 Outstanding at September 25, 2021 3,428,689 $ 41.23 $ 18.7 Exercisable at September 25, 2021 2,356,437 $ 57.75 $ — The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2021 is summarized in the following table: Shares Weighted Outstanding at December 26, 2020 4,954,342 $ 3.60 Time-vested shares granted 399,460 24.54 Performance and market shares granted 338,822 24.83 Performance and market share adjustments 11,045 5.90 Vested (691,297) 4.63 Forfeited (367,580) 8.64 Outstanding at September 25, 2021 4,644,792 $ 6.40 Stock-based compensation expense was: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Stock options $ 0.1 $ 0.3 $ 0.4 $ 0.8 Time, performance and market vested share awards $ 2.2 $ 2.7 $ 5.8 $ 6.0 Unrecognized stock-based compensation expense and the weighted average years to recognize the unrecognized stock-based compensation was as follows: As of (In millions) September 25, Unrecognized stock-based compensation expense $ 20.5 Weighted average years to recognize the unrecognized stock-based compensation 2.4 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, except share amounts) September 25, September 26, Shares retained to fund withholding taxes 102,019 11,187 Value of shares retained to fund withholding taxes $ 2.9 $ 0.2 |
Re-engineering Charges
Re-engineering Charges | 9 Months Ended |
Sep. 25, 2021 | |
Restructuring Charges [Abstract] | |
Re-engineering Charges | Note 5: 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”). The key elements of the Turnaround Plan include: increasing the Company's right-sizing plans to improve profitability, accelerating the divestiture of non-core assets to strengthen the balance sheet, restructuring the Company’s debt to enhance liquidity, and structurally fixing the Company’s core business to create a more sustainable business model. Re-engineering charges are primarily related to severance costs, outside consulting services, and facility costs. The Company expects re-engineering related expenses to continue through next year as the Turnaround Plan is completed. Re-engineering charges were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Turnaround plan $ 1.6 $ 3.4 $ 8.2 $ 27.7 Other 0.2 0.5 1.5 1.9 Total re-engineering charges $ 1.8 $ 3.9 $ 9.7 $ 29.6 Total re-engineering charges by segments Total re-engineering charges by segment were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Asia Pacific 0.5 — 2.1 3.8 Europe 1.1 (0.3) 4.0 13.2 North America 0.3 2.0 1.7 2.3 South America — 2.2 0.2 2.5 Corporate (0.1) — 1.7 7.8 Total turnaround plan charges $ 1.8 $ 3.9 $ 9.7 $ 29.6 The balance included in accrued liabilities related to the Turnaround Plan was: As of (In millions) September 25, December 26, Beginning balance $ 18.7 0 $ 16.0 Provision 9.7 0 35.4 Adjustments and other charges (0.1) 0 0.8 Currency translation adjustment (0.2) 0 — Cash expenditures: — 0 — Severance (12.7) 0 (29.6) Other (5.2) 0 (3.9) Ending balance $ 10.2 0 $ 18.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 25, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6: Income Taxes The effective tax rate was: 13 weeks ended 39 weeks ended September 25, September 26, September 25, September 26, Effective tax rate (25.8) % 42.7 % 19.1 % 31.8 % The change in the effective tax rate in the third quarters of 2021 and 2020, respectively, was primarily due to: • favorable impact from utilization of previously valued deferred tax assets due to a tax policy change discussed further below, • a favorable jurisdictional mix of earnings, • non-recurring gain from debt extinguishment in 2020 that was offset with previously reserved assets The Company made an election on its 2020 tax return to change its capitalization policy for tax purposes related to certain direct and indirect costs for inventory and self-constructed assets under IRC Section 263A. This method change will allow the Company to utilize a portion of its tax attributes in the U.S., primarily foreign tax credits, that were previously fully reserved.The non-recurring impact of the method change is a 2020 return to provision discrete benefit of $15.7 million, related to prior years, and an additional current year benefit of approximat ely $15 million from the release of valuation allowances that will be included in the annual effective tax rate for the year. This change only impacts a portion of the Company’s foreign tax credits and the Company will maintain a valuation allowance against the remaining balance of foreign tax credits. Uncertain tax positions and related interest and penalties were: As of (In millions) September 25, December 26, Accrual for uncertain tax positions $ 30.9 $ 15.3 Uncertain tax positions impacting effective tax rate if recognized $ 26.2 $ 10.6 Interest and penalties related to uncertain tax positions $ 4.0 $ 3.9 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 2020. 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 25, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Note 7: Earnings (Loss) Per Share Basic earnings (loss) per share - Total is calculated by dividing net income (loss) by the basic weighted-average shares. Diluted earnings (loss) per share - Total is calculated by also considering the impact of dilutive securities such as stock options, restricted shares, restricted stock units and performance share units on both net income (loss) and the basic weighted-average shares. The elements of the earnings (loss) per share computations were as follows: 13 weeks ended 39 weeks ended (In millions, except per share amounts) September 25, September 26, September 25, September 26, Income (loss) from continuing operations $ 60.4 $ 29.4 $ 136.2 $ 83.0 Income (loss) on discontinued operations $ (146.5) $ 5.0 $ (141.4) $ 7.4 Net income (loss) $ (86.1) $ 34.4 $ (5.2) $ 90.4 Basic weighted-average shares 49.4 49.1 49.5 49.0 Effect of dilutive securities 3.4 4.0 3.6 2.5 Diluted weighted-average shares 52.8 53.1 53.1 51.5 Basic earnings (loss) from continuing operations - per share $ 1.22 $ 0.60 $ 2.75 $ 1.69 Basic earnings (loss) from discontinued operations per share $ (2.97) $ 0.10 $ (2.85) $ 0.15 Basic earnings (loss) per share - Total $ (1.75) $ 0.70 $ (0.10) $ 1.84 Diluted earnings (loss) from continuing operations - per share $ 1.14 $ 0.56 $ 2.56 $ 1.62 Diluted earnings (loss) from discontinued operations - per share $ (2.77) $ 0.09 $ (2.66) $ 0.14 Diluted earnings (loss) per share - Total $ (1.63) $ 0.65 $ (0.10) $ 1.76 Excluded anti-dilutive shares 2.4 3.3 2.6 4.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 25, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 8: Accumulated Other Comprehensive Income (Loss) The change in accumulated other comprehensive loss was as follows: (In millions, net of tax) Foreign Currency Items (a) (d) Cash Flow Hedges (b) Pension and Other Post-retirement Items (c) Total Balance at December 26, 2020 $ (648.4) $ 0.2 $ (37.7) $ (685.9) Other comprehensive income (loss) before reclassifications 4.4 0.5 0.4 5.3 Amounts reclassified from accumulated other comprehensive income (loss) — (0.2) 2.7 2.5 Other comprehensive income (loss) 4.4 0.3 3.1 7.8 Balance at September 25, 2021 $ (644.0) $ 0.5 $ (34.6) $ (678.1) ____________________ (a) Foreign currency item amounts reclassified from accumulated other comprehensive income (loss) impact the other (income) expense, net line item in the Condensed Consolidated Statements of Income (Loss). (b) Cash flow hedge amounts reclassified from accumulated other comprehensive income (loss) impact the cost of products sold line item in the Condensed Consolidated Statements of Income (Loss). Also see additional information for cash flow hedges at Note 14: Derivative Financial Instruments and Hedging Activities. (c) See additional information for pension and other post-retirement items at Note 18: Retirement Benefit Plans. (d) Included in the ending balance as of September 25, 2021 i s a $117.5 million of accumulated foreign currency losses that have been included in the calculation of the loss on assets held for sale and will reduce the accumulated foreign currency losses upon completion of the sales. (In millions, net of tax) Foreign Currency Items (a) (d) Cash Flow Hedges (b) Pension and Other Post-retirement Items (c) 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) ____________________ (a) Foreign currency item amounts reclassified from accumulated other comprehensive income (loss) impact the other (income) expense, net line item in the Condensed Consolidated Statements of Income (Loss). (b) Cash flow hedge amounts reclassified from accumulated other comprehensive income (loss) impact the cost of products sold line item in the Condensed Consolidated Statements of Income (Loss). Also see additional information for cash flow hedges at Note 14: Derivative Financial Instruments and Hedging Activities. (c) See additional information for pension and other post-retirement items at Note 18: Retirement Benefit Plans. Amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of: 39 weeks ended (In millions) September 25, September 26, Cash flow hedges (gain) losses $ 0.2 $ (3.5) Tax (benefit) provision — 0.7 Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges $ 0.2 $ (2.8) Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of: 39 weeks ended (In millions) September 25, September 26, Prior service (benefit) costs $ 0.4 $ (0.2) Settlements (gains) losses (1.4) 1.2 Actuarial (gains) losses (2.6) 1.4 Tax (benefit) provision 0.9 (0.8) Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items $ (2.7) $ 1.6 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 9 Months Ended |
Sep. 25, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure | Note 9: 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 other assets, net line items in the Condensed Consolidated Balance Sheet. A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash at end of period in the Condensed Consolidated Statements of Cash Flows is as follows: As of (In millions) September 25, December 26, Cash and cash equivalents $ 123.8 $ 134.1 Restricted cash 8.0 11.4 Cash, cash equivalents and restricted cash at end of period $ 131.8 $ 145.5 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 25, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | Note 10: Accounts Receivable The accounts receivable and allowance for credit losses balance was: |
Inventories
Inventories | 9 Months Ended |
Sep. 25, 2021 | |
Inventory, Net [Abstract] | |
Inventories | Note 11: Inventories Inventories balance net of any inventory allowance was: As of (In millions) September 25, December 26, Finished goods $ 203.3 $ 156.7 Work in process 32.2 27.3 Raw materials and supplies 29.8 27.0 Inventory, net $ 265.3 $ 211.0 |
Long-Term Receivables
Long-Term Receivables | 9 Months Ended |
Sep. 25, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Long-Term Receivables | Note 12: Long-Term Receivables The long-term receivables and allowance for long-term receivables balance was as follows: As of (In millions) September 25, December 26, Long-term receivables, gross $ 36.2 $ 39.1 Beginning balance for allowance for long-term receivables $ (26.7) $ (13.9) Write-offs 0.9 3.7 Recoveries 0.1 0.6 Provision (a) (5.2) (14.8) Currency translation adjustment 1.4 (2.3) Allowance for long-term receivables $ (29.5) $ (26.7) Long-term receivables, net $ 6.7 $ 12.4 |
Divestitures
Divestitures | 9 Months Ended |
Sep. 25, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Held for Sale Assets and Discontinued Operations Discontinued operations include certain key brands of the Company’s beauty business including Avory Shlain, House of Fuller, Nutrimetics, and Nuvo. The Company completed the sale of Avroy Shlain in the first quarter of 2021, and as of the third quarter of 2021, has executed two letters of intent for House of Fuller and Nutrimetics. The Company is actively exploring strategic alternatives for Nuvo. Our remaining beauty brand, NaturCare, does not qualify as held for sale and therefore is not included in discontinued operations as of third quarter 2021. The Company expects to complete the dispositions of House of Fuller, Nutrimetics, and Nuvo in the next twelve months. The Company has determined that these dispositions represent a strategic shift that will have a major effect on its results of operations. As such, reflected below are the results of the beauty businesses as discontinued operations including all comparative prior period information in these Condensed Consolidated Financial Statements. Certain costs previously allocated to the beauty business for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. In the third quarter of 2021, the Company recognized a loss on the classification of held for sale assets of House Fuller, Nutrimetics, and Nuvo of $148.1 million based on total expected proceeds less costs to sell. The loss primarily relates to currency translation losses of $139.8 million which remains in accumulated other comprehensive income. In connection with the loss, the Company recorded a contra-asset and liability on the balance sheet which will be derecognized and the related currency translation removed from accumulated other comprehensive income upon completion of the sales. Total loss from the disposal group is $147.1 million for the year to date period ended September 25, 2021, which includes the gain of $1.0 million previously recognized from the sale of Avroy Shlain in the first quarter of 2021. Assets held for sale not part of discontinued operations includes $10.4 million of land asset comprising all of the remaining land in Orlando, Florida. As previously disclosed, the Company entered into a definitive purchase and sale agreement for this property on May 11, 2020 and, based on recent amendments to this agreement, expects to complete the disposition in the next twelve months. No gain or loss has been recognized associated with the land held for sale. Financial Information of Discontinued Operations The results of operations are presented as discontinued operations as summarized below: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Net Sales $ 45.2 $ 53.5 $ 139.7 $ 141.0 Cost of products sold 16.9 19.6 51.6 53.2 Gross Profit $ 28.3 $ 33.9 $ 88.1 $ 87.8 Selling and administrative expenses 23.5 28.2 77.9 76.1 Re-engineering charges 0.1 (0.7) 0.1 0.7 (Gain) loss on disposal of assets — 0.3 — 0.3 (Gain) loss on held for sale assets and dispositions 148.1 — 147.1 — Operating income (loss) $ (143.4) $ 6.1 $ (137.0) $ 10.7 Other (income) expense, net 0.4 (0.2) 2.0 0.4 Income (loss) from discontinued operations before income taxes $ (143.8) $ 6.3 $ (139.0) $ 10.3 Provision (benefit) for income taxes 2.7 1.3 2.4 2.9 Net income (loss) from discontinued operations $ (146.5) $ 5.0 $ (141.4) $ 7.4 The carrying amount of major classes of assets and liabilities classified as held for sale that were included in discontinued operations at September 25, 2021 and December 26, 2020 are shown in the table below. As of (In millions) September 25, December 26, Assets Cash and cash equivalents $ 0.7 $ 5.0 Accounts receivable, net 15.2 18.8 Inventory, net 25.3 25.3 Non-trade accounts receivable, net 2.8 2.5 Prepaid expenses and other current assets 1.9 2.2 Accumulated translation adjustment losses, current (36.8) — Total assets of discontinued operations - current $ 9.1 $ 53.8 Deferred tax assets, net 5.8 6.2 Property, plant and equipment, net 12.1 13.8 Operating lease assets 3.9 6.9 Long-term receivables, net — 0.2 Trade names, net 6.9 11.9 Goodwill 1.8 6.4 Other assets, net 1.2 0.4 Accumulated translation adjustment losses (21.5) — Assets held for sale $ 10.2 $ 45.8 Total assets of discontinued operations $ 19.3 $ 99.6 Liabilities Accounts payable $ 13.3 $ 18.8 Accrued liabilities 25.4 28.6 Accumulated translation adjustment losses, current 89.9 — Total liabilities of discontinued operations - current $ 128.6 $ 47.4 Long-term debt and finance lease obligations Operating lease liabilities 2.0 4.0 Other liabilities 9.2 9.9 Liabilities held for sale $ 11.2 $ 13.9 Total liabilities of discontinued operations $ 139.8 $ 61.3 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 25, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 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 United States 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. The change in fair value of hedged items results in adjustments to their carrying amounts. 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 (income) expense, net. Prior to 2019, the forward points had been included as a component of interest expense. Pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Forward points gain (loss) on fair value hedges $ 1.8 $ 2.8 $ 4.1 $ 15.4 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 portion of the gain or loss included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss) and is reclassified into earnings through the same line item as the transaction being hedged at the time the hedged transaction impacts earnings. As such, the balance at the end of the current reporting period in other comprehensive income (loss), 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 (loss) compared to interest expense as it previously had been recorded. 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 25, September 26, September 25, September 26, Forward points gain (loss) recorded in other comprehensive income $ (0.1) $ — $ (0.1) $ — Forward points gain (loss) from settlement of cash flow hedges $ (0.1) $ (0.6) $ (0.1) $ (2.0) Fair value gain (loss) recorded in other comprehensive income $ 0.2 $ (1.3) $ 0.5 $ 0.8 Gain (loss) recorded in accumulated other comprehensive income $ 0.2 $ (1.3) $ 0.3 $ 3.2 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 designates these as net investment hedges. Changes in the value of these financial instruments 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 (loss) compared to interest expense as it previously had been recorded. Changes in fair value, net of tax, recorded in other comprehensive income (loss) and the pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Fair value gain (loss) recorded in other comprehensive income $ (1.3) $ (5.6) $ 2.7 $ 6.9 Forward points gain (loss) recorded in other comprehensive income $ (2.7) $ (3.4) $ (7.6) $ (16.2) Notional Value The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. The notional value of forward contracts to purchase and sell currencies was: As of (In millions) September 25, December 26, 2020 Notional value of forward contracts to purchase currencies $ 61.3 $ 125.2 Notional value of forward contracts to sell currencies $ 61.2 $ 125.3 The notional value of largest outstanding positions to purchase and sell currencies was: As of (In millions) September 25, Sell Euros $ 17.1 Purchase Japanese Yen $ 14.1 Sell Swiss Francs $ 10.9 Purchase United States Dollars $ 26.0 As of (In millions) December 26, 2020 Sell Euros $ 16.8 Purchase South Korean Won $ 35.4 Purchase Swiss Franc $ 23.3 Sell United States Dollars $ 79.9 Fair Value Measurement Fair values of the Company's derivative positions were determined based on third party quotations (Level 2 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: As of Derivatives designated as hedging instruments ( in millions ) Balance sheet location September 25, December 26, 2020 Derivative assets: Foreign exchange contracts Non-trade accounts receivable, net $ 5.4 $ 4.3 Derivative liabilities: Foreign exchange contracts Accrued liabilities $ (5.3) $ (4.4) |
Deferred Revenue
Deferred Revenue | 9 Months Ended |
Sep. 25, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue | Note 15: Deferred Revenue Deferred revenue is recorded in the accrued liabilities line item in the Condensed Consolidated Balance Sheets. Deferred revenue balance, which was primarily related to payments received in advance for orders not yet shipped, was as follows: As of (In millions) September 25, December 26, Deferred revenue $ 10.3 $ 14.1 |
Debt
Debt | 9 Months Ended |
Sep. 25, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 16: Debt The debt portfolio consisted of: As of (In millions) September 25, December 26, 2020 Term loan $ 173.8 $ 275.0 Credit agreement 511.0 423.3 Finance leases (a) 2.1 3.3 Unamortized debt issuance costs (8.5) (18.3) Total debt $ 678.4 $ 683.3 Current debt and finance lease obligations $ 512.4 $ 424.7 Long-term debt and finance lease obligations 166.0 258.6 Total debt $ 678.4 $ 683.3 ____________________ (a) See Note 17: Leases for further details. Term Loan On December 3, 2020 (the “Closing Date”), Angelo, Gordon & Co., L.P. and JPMorgan Chase Bank, N.A. (the “Lenders”) and Alter Domus (US) LLC, as administrative agent and collateral agent, entered into the following term loan credit facilities with the Company and its affiliates: • a secured term loan facility in an aggregate principal amount of $200.0 million with the Company as borrower (the “Parent Term Loan”); and • a secured term loan facility in an aggregate principal amount of $75.0 million with Dart Industries, Inc. as borrower and the Company as borrower (the “Dart Term Loan” and, together with the Parent Term Loan, the “Term Loan”). The Company used the aggregate borrowin gs of $275.0 million from the Term Loan and cash on hand to retire outstanding Senior Notes (as defined below). The Term Loan has an original issue discount and commitment fee of 4.5% or $12.4 million which has been recorded as a contra liability to the carrying value of the Term Loan and is included in the unamortized debt issuance costs balance noted above. The original issue discount and related debt issuance costs will be amortized over the term of the Term Loan . The Term Loan matures on December 3, 2023. The Company has prepayment options, as well as mandatory prepayments at the option of the Lenders. The prepayments have premium protections depending on the timing of the prepayment and the source of cash used for prepayment. Interest is payable quarterly in arrears and on maturity. The Company has the option, to pay interest equal to either: • the aggregate borrowing rate (“ABR”), determined by reference to the highest of: a. the “United States Prime Lending Rate” published by The Wall Street Journal, b. the federal funds effective rate from time to time plus 0.50% per annum, and c. the one-month Eurodollar Rate, plus 1.00% per annum, which shall, regardless of rate used, be no less than 2.0% per annum, or • a Eurodollar Rate for a specified period appearing on Reuters Screen LIBOR01 Page, which shall be no less than 1.00% per annum, in each case, plus an applicable margin. The applicable margin is initially 7.75% per annum for ABR borrowings and 8.75% per annum for Eurodollar Rate borrowings, and in each case, from and after the delivery of the applicable financial statements for the first full fiscal quarter following the Closing Date, the applicable margin shall then be: • for ABR borrowings, either: a. 7.75% per annum, if the consolidated leverage ratio is greater than 2.75 to 1.00 or b. 7.25% per annum, if the consolidated leverage ratio is less than or equal to 2.75 to 1.00 and • for Eurodollar Rate borrowings, either: a. 8.75% per annum, if the consolidated leverage ratio is greater than 2.75 to 1.00 or b. 8.25% per annum, if the consolidated leverage ratio is less than or equal to 2.75 to 1.00. The Parent Term Loan is fully and unconditionally guaranteed on a joint and several basis by all of the Company’s existing and future domestic subsidiaries that provide a guaranty under the Company’s Second Amended and Restated Credit Agreement, dated as of March 29, 2019 (as amended on August 28, 2019 and on February 28, 2020, the “ Existing Revolving Credit Agreement”) among, inter alia, the Company, the other borrowers party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Dart Term Loan is fully and unconditionally guaranteed on a joint and several basis by the Company and certain of the Company’s existing and future domestic and foreign subsidiaries. In compliance with all Term Loan covenants, for each period presented the Term Loan includes a financial covenant as well as customary affirmative and negative covenants, including, among other things, as to compliance with laws, delivery of quarterly and annual financial statements, restrictions on the incurrence of liens, indebtedness, asset dispositions, fundamental changes, restricted payments and other customary covenants. We are in compliance with all covenants. The Term Loan includes events of default relating to customary matters (and customary notice and cure periods), including, among other things, nonpayment of principal, interest or other amounts; violation of covenants; incorrectness of representations and warranties in any material respect; cross-payment default and cross acceleration with respect to material indebtedness; bankruptcy; material judgments; and certain ERISA events. Term loan prepayments made were as follows: (In millions) Term Loan Balance at December 26, 2020 $ 275.0 Term loan prepayment on February 28, 2021 (a) 34.0 Term loan prepayment on May 14, 2021 (b) 9.0 Term loan prepayment on June 21, 2021 (c) 58.2 Total term loan prepayment amount $ 101.2 Balance at September 25, 2021 $ 173.8 ____________________ (a) Includes a 1.0% prepayment premium of $0.3 million. (b) Includes a 1.0% prepayment premium of $0.1 million. (c) Includes a 3.0% prepayment premium of $1.7 million. The Company expensed unamortized deferred debt issuance costs related to this prepayment in the (gain) loss on debt extinguishment line item. The loss on debt extinguishment was calculated as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 25, Term loan retirement amount $ — $ 101.2 Less: Term loan prepayment amount — 101.2 Less: Costs incurred — 8.1 Loss on debt extinguishment (pre-tax) $ — $ (8.1) Basic earnings (loss) per share from loss on debt extinguishment (pre-tax) $ — $ (0.16) 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 replaced 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. Total Credit Agreement borrowings included Euro denominated debt of $94.7 million an d $160.3 million as of September 25, 2021 and December 26, 2020, respectively. 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 United States Dollars with a maturity of one month plus 1.0 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 United States 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 25, 2021, the Company had a weighted average interest rate of 1.70 percent with a base rate spread of 163 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 second 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, inclu ding 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 25, 2021, the Company had $147.0 million of unused lines of credit, including $120.9 million under the committed, secured Credit Agreement, and $26.1 million available under various uncommitted lines around the world. Senior Notes The Company had $600.0 million aggregate principal amount of 4.75% senior notes (the “Senior Notes”) outstanding as of March 28, 2020. The Senior Notes were to mature on June 1, 2021. The Senior Notes were issued under an indenture, by and among the Company, the Guarantor and Wells Fargo Bank, N.A., as trustee. During the second, third, and fourth quarters of 2020 the Company retired its Senior Notes in the aggregate principal amount of $600.0 million through tender offers, open-market purchases, and redemption by using cash on hand and the proceeds from the Term Loan received in December 2020. The Company recognized a gain on debt extinguishment of $40.0 million, $9.9 million and a loss on debt extinguishment of $9.7 million in the second, third, and fourth quarters of 2020, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 25, 2021 | |
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 for operating leases 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 year to five years, or more. The exercise of lease renewal options is at the Company's discretion and renewal options that are reasonably certain to be exercised have been included in the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. 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 25, September 26, September 25, September 26, Operating lease costs: Operating lease cost (a) (b) $ 8.4 $ 10.3 $ 27.6 $ 32.7 Finance lease costs: Amortization of right-of-use assets (a) $ 0.2 $ 0.2 0.5 0.6 Interest on lease liabilities (c) 0.1 — 0.1 0.1 Total finance lease cost $ 0.3 $ 0.2 $ 0.6 $ 0.7 ____________________ (a) Included in selling, general and administrative expense and cost of products sold. (b) Includes short-term rent expense of $0.7 million and $0.6 million in the third quarters of 2021 and 2020, respectively, and $1.8 million and $2.1 million in the respective year-to-date periods. Also includes variable rent expense of $0.4 million and $0.3 million in the third quarters of 2021 and 2020, respectively, and $1.1 million and $0.6 million in t he respective year-to-date periods. (c) Included in interest expense. Supplemental cash flow information related to leases is as follows: 39 weeks ended (In millions) September 25, September 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (27.1) $ (29.2) Financing cash flows from finance leases $ (1.0) $ (0.3) Leased assets obtained in exchange for new operating lease liabilities $ — $ 9.2 Supplemental information related to leases is as follows: As of (In millions, except lease term and discount rate) September 25, December 26, Operating Leases: Operating lease right-of-use assets $ 81.0 $ 91.0 Accrued liabilities $ 23.4 $ 26.5 Operating lease liabilities 61.1 66.1 Total Operating lease liabilities $ 84.5 $ 92.6 Finance Leases: Property, plant and equipment, at cost $ 18.8 $ 19.7 Accumulated amortization (12.1) (12.2) Property, plant and equipment, net $ 6.7 $ 7.5 Current portion of finance lease obligations $ 1.4 $ 1.4 Long-term finance lease obligations 0.7 1.9 Total Finance lease liabilities $ 2.1 $ 3.3 Weighted average remaining lease term (in years) Operating leases 5.4 years 5.4 years Finance leases 1.7 years 2.4 years Weighted average discount rate Operating leases 5.5 % 5.7 % Finance leases 5.1 % 5.1 % Maturities of lease liabilities as of September 25, 2021 and December 26, 2020 were as follows: As of As of September 25, 2021 December 26, 2020 (In millions) Operating Leases Finance Leases Operating Leases Finance Leases 2021 $ 10.6 $ 0.3 $ 29.3 $ 1.6 2022 24.5 1.8 20.3 1.9 2023 18.4 — 14.0 — 2024 13.4 — 9.4 — 2025 7.9 — 6.1 — Thereafter 31.3 — 30.8 — Total undiscounted lease liability $ 106.1 $ 2.1 $ 109.9 $ 3.5 Less imputed interest (21.6) — (17.3) (0.2) Total $ 84.5 $ 2.1 $ 92.6 $ 3.3 As of September 25, 2021, the Company had $1.0 million of operating leases that had not yet commenced that are expected to commence in 2021 with a term of one year to five years. |
Leases, Disclosure | Note 17: Leases The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense for operating leases 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 year to five years, or more. The exercise of lease renewal options is at the Company's discretion and renewal options that are reasonably certain to be exercised have been included in the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. 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 25, September 26, September 25, September 26, Operating lease costs: Operating lease cost (a) (b) $ 8.4 $ 10.3 $ 27.6 $ 32.7 Finance lease costs: Amortization of right-of-use assets (a) $ 0.2 $ 0.2 0.5 0.6 Interest on lease liabilities (c) 0.1 — 0.1 0.1 Total finance lease cost $ 0.3 $ 0.2 $ 0.6 $ 0.7 ____________________ (a) Included in selling, general and administrative expense and cost of products sold. (b) Includes short-term rent expense of $0.7 million and $0.6 million in the third quarters of 2021 and 2020, respectively, and $1.8 million and $2.1 million in the respective year-to-date periods. Also includes variable rent expense of $0.4 million and $0.3 million in the third quarters of 2021 and 2020, respectively, and $1.1 million and $0.6 million in t he respective year-to-date periods. (c) Included in interest expense. Supplemental cash flow information related to leases is as follows: 39 weeks ended (In millions) September 25, September 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (27.1) $ (29.2) Financing cash flows from finance leases $ (1.0) $ (0.3) Leased assets obtained in exchange for new operating lease liabilities $ — $ 9.2 Supplemental information related to leases is as follows: As of (In millions, except lease term and discount rate) September 25, December 26, Operating Leases: Operating lease right-of-use assets $ 81.0 $ 91.0 Accrued liabilities $ 23.4 $ 26.5 Operating lease liabilities 61.1 66.1 Total Operating lease liabilities $ 84.5 $ 92.6 Finance Leases: Property, plant and equipment, at cost $ 18.8 $ 19.7 Accumulated amortization (12.1) (12.2) Property, plant and equipment, net $ 6.7 $ 7.5 Current portion of finance lease obligations $ 1.4 $ 1.4 Long-term finance lease obligations 0.7 1.9 Total Finance lease liabilities $ 2.1 $ 3.3 Weighted average remaining lease term (in years) Operating leases 5.4 years 5.4 years Finance leases 1.7 years 2.4 years Weighted average discount rate Operating leases 5.5 % 5.7 % Finance leases 5.1 % 5.1 % Maturities of lease liabilities as of September 25, 2021 and December 26, 2020 were as follows: As of As of September 25, 2021 December 26, 2020 (In millions) Operating Leases Finance Leases Operating Leases Finance Leases 2021 $ 10.6 $ 0.3 $ 29.3 $ 1.6 2022 24.5 1.8 20.3 1.9 2023 18.4 — 14.0 — 2024 13.4 — 9.4 — 2025 7.9 — 6.1 — Thereafter 31.3 — 30.8 — Total undiscounted lease liability $ 106.1 $ 2.1 $ 109.9 $ 3.5 Less imputed interest (21.6) — (17.3) (0.2) Total $ 84.5 $ 2.1 $ 92.6 $ 3.3 As of September 25, 2021, the Company had $1.0 million of operating leases that had not yet commenced that are expected to commence in 2021 with a term of one year to five years. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 25, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Note 18: Retirement Benefit Plans Components of net periodic cost (benefit) for the third quarters ended September 25, 2021 and September 26, 2020 were as follows: Pension benefits Post-retirement benefits 13 weeks ended 13 weeks ended (In millions) September 25, September 26, September 25, September 26, Service cost $ 1.7 $ 2.1 $ — $ 0.1 Interest cost 1.3 0.9 — 0.1 Return on plan assets (0.8) (1.0) — — Settlement/curtailment 0.2 0.8 — — Net amortization 0.9 0.4 (0.1) — Net periodic cost (benefit) $ 3.3 $ 3.2 $ (0.1) $ 0.2 Pension benefits Post-retirement benefits 39 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Service cost $ 5.3 $ 6.3 $ 0.1 $ 0.1 Interest cost 3.0 3.1 0.2 0.3 Return on plan assets (2.5) (3.0) — — Settlement/curtailment 1.4 1.2 — — Net amortization 2.6 1.8 (0.4) (0.6) Net periodic cost (benefit) $ 9.8 $ 9.4 $ (0.1) $ (0.2) During the year-to-date periods ended September 25, 2021 and September 26, 2020, approximately $3.6 million and $2.4 million of pretax losses were reclassified from other comprehensive income to a component of net periodic (benefit) cost, respectively. As they relate to non-U.S. plans, the Company uses current exchange rates to make these reclassifications. The impact of exchange rate fluctuations is included on the net amortization line of the table above. The Company included $4.3 million and $2.8 million related to the components of net periodic (benefit) cost, excluding service cost, in other (income) expense, net in the year-to-date periods ended September 25, 2021 and September 26, 2020, respectively. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 25, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company and certain subsidiaries are involved in litigation and various legal matters that are being defended and handled in the ordinary course of business. Included among these matters are environmental issues. The Company does not include estimated future legal costs in accruals recorded related to these matters. The Company believes that it is remote that the Company's contingencies will have a material adverse effect on its financial position, results of operations or cash flow. Kraft Foods, Inc., which was formerly affiliated with Premark International, Inc., the Company's former parent, has assumed any liabilities arising out of certain divested or discontinued businesses. The liabilities assumed include matters alleging product liability, environmental liability, and infringement of patents. In February 2020, putative stockholder class actions were filed against the Company and certain current and former officers and directors in the United States District Court for the Central District of California and in the United States District Court for the Middle District of Florida. The actions were consolidated in the United States District Court for the Middle District of Florida, and a lead plaintiff was appointed. On July 31, 2020, the lead plaintiff filed a consolidated amended complaint, which alleges that statements in public filings between January 31, 2018 and February 24, 2020 (the “potential class period”) regarding the Company’s disclosure of controls and procedures, as well as the need for an amendment of its credit facility, violated Section 10(b) and 20(a) of the Securities Act of 1934. The plaintiffs seek to represent a class of stockholders who purchased the Company’s stock during the potential class period and demand unspecified monetary damages. The Company's motion to dismiss the complaint was granted on January 25, 2021, but the court permitted the lead plaintiff to file an amended complaint, which the plaintiff filed on February 16, 2021. The Company filed a motion to dismiss the second amended complaint on April 2, 2021. The court granted the Company’s motion to dismiss the second amended complaint on August 9, 2021, but again permitted the lead plaintiff to file an amended complaint, which the plaintiff filed on August 30, 2021. The Company filed a motion to dismiss the third amended complaint on October 14, 2021, and the motion to dismiss is expected to be fully briefed by December 22, 2021. The Company is unable at this time to determine whether the outcome of these actions would have a material impact on its results of operations, financial condition or cash flows. Additionally, several putative stockholders filed stockholder derivative complaints in the United States District Court for the Middle District of Florida against certain of the Company’s current and former officers and directors. The cases were consolidated, and plaintiffs filed a consolidated amended complaint on August 5, 2020. The consolidated amended complaint asserts claims against certain current and former officers and directors for breach of fiduciary duty, unjust enrichment, and contribution for violations of the securities laws based on allegations that the officers and directors allowed the Company to make false or misleading statements in violation of the securities laws. The Court stayed proceedings in this action pending resolution of the third motion to dismiss in the putative stockholder class action. A similar stockholder derivative complaint was filed in the Ninth Judicial Circuit Court of Florida. The parties reached an agreement to stay this action pending the resolution of the third motion to dismiss in the putative stockholder class action. The Company is unable at this time to determine whether the outcome of these actions would have a material impact on its results of operations, financial condition or cash flows. Leases Lease costs for operating leases and approximate minimum rental commitments under non-cancelable operating leases are disclosed in Note 17: Leases to the Condensed Consolidated Financial Statements. Leases, including the minimum rental commitments for 2021 and 2022, primarily are for automobiles that generally have a lease term of 1 year to 4 years, with the remaining leases related to office, manufacturing and distribution space. It is common for lease agreements to contain various provisions for items such as step rent or other escalation clauses and lease concessions, which may offer a period of no rent payment. These types of items are considered by the Company, and are recorded into expense on a straight-line basis over the minimum lease terms for operating leases. There are no material lease agreements containing renewal options. Certain leases require the Company to pay property taxes, insurance and routine maintenance. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring | Note 20: Fair Value Measurements Due to their short maturities or their insignificance, the carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable, accrued liabilities, leased assets and liabilities, and short-term borrowings approximated their fair values at September 25, 2021 and December 26, 2020. The fair value of the Term Loan is classified as a level 2 liability and is estimated using a market approach by comparing the Company’s debt with the secured debt of other companies that have a similar credit rating and debt amount. The fair value of the Term Loan was as follows: As of As of September 25, 2021 December 26, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 173.8 $ 173.8 $ 275.0 $ 275.0 See Note 14: 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. 25, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 21: Segment Information The Company manufactures and distributes a broad portfolio of products, primarily through the Sales Force. 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 under the Tupperware brand name. Segment details were as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Net sales Asia Pacific $ 112.9 $ 129.6 $ 343.8 $ 368.1 Europe 91.3 112.5 326.8 296.3 North America 103.1 116.2 343.0 289.4 South America 69.6 65.4 193.8 155.7 Total net sales $ 376.9 $ 423.7 $ 1,207.4 $ 1,109.5 Segment profit Asia Pacific $ 25.7 $ 36.3 $ 81.9 $ 84.8 Europe 14.7 27.1 66.5 37.8 North America 10.5 18.9 42.6 42.6 South America 13.5 15.2 46.8 29.4 Total segment profit 64.4 97.5 237.8 194.6 Unallocated expenses 8.4 2.1 39.8 (4.7) Re-engineering charges (a) 1.8 3.9 9.7 29.6 (Gain) loss on disposal of assets (1.7) 32.3 (8.9) 18.5 Interest expense 8.2 8.2 29.7 30.5 Interest income (0.3) (0.3) (0.9) (1.0) Income (loss) from continuing operations before income taxes $ 48.0 $ 51.3 $ 168.4 $ 121.7 ____________________ (a) See Note 5: Re-engineering Charges for further discussion. Total identifiable assets by segment were: As of (In millions) September 25, December 26, Identifiable assets Asia Pacific $ 262.7 $ 272.4 Europe 235.0 251.7 North America 210.4 174.1 South America 109.3 102.7 Corporate 390.3 419.0 Total identifiable assets $ 1,207.7 $ 1,219.9 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 25, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent EventOn October 13, 2021, affiliates of the Company entered into a definitive purchase agreement for the sale of the House of Fuller business. The transaction is subject to customary closing conditions, and is expected to close in the first quarter of 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of Tupperware Brands Corporation and its subsidiaries, collectively the “Company” or “Tupperware”, with all intercompany transactions and balances having been eliminated. The Company prepared the unaudited Condensed Consolidated Financial Statements in accordance with United States generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and, in the Company's opinion, reflect all adjustments, including normal recurring items that are necessary for a fair statement of results. Certain information and note disclosures normally included in the financial statements prepared in conformity with GAAP for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, the accompanying unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with the audited 2020 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K/A for the year ended December 26, 2020. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year. Discontinued Operations Discontinued operations include certain key brands of the Company’s beauty business including Avory Shlain, House of Fuller, Nutrimetics, and Nuvo. The Company completed the sale of Avroy Shlain in the first quarter of 2021,and as of the third quarter of 2021, has executed two letters of intent for House of Fuller and Nutrimetics. The Company is actively exploring strategic alternatives for Nuvo. The Company expects to complete the dispositions of House of Fuller, Nutrimetrics, and Nuvo in the next twelve months. The Company has determined that these dispositions represent a strategic shift that will have a major effect on our results of operations. As such, reflected below are the results of the beauty businesses as discontinued operations including all comparative prior period information in these Condensed Consolidated Financial Statements. Certain costs previously allocated to the beauty business for segment reporting purposes do not qualify for classification within discontinued operations and have been reallocated to continuing operations. See Note 13, Held for Sale Assets and Discontinued Operations, for additional information. |
Use of Estimates | Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with GAAP 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 Condensed Consolidated Financial Statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ materially from these estimates. For the third quarter ended September 25, 2021, the impact on business activity brought about by the Coronavirus pandemic (“COVID-19”) remains present. As a result, many of the Company's estimates and assumptions require 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 | New Accounting Pronouncements Standards Recently Adopted 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 losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment also removed certain required disclosures that no longer are considered cost beneficial. This guidance is effective for fiscal years beginning after December 15, 2020. The Company adopted this guidance at the beginning of the first quarter of 2021 and the adoption did not have any material impact on its Condensed 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 Condensed Consolidated Financial Statements. |
Shipping and Handling Costs (Ta
Shipping and Handling Costs (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Shipping and Handling Costs [Abstract] | |
Shipping and Handling [Table] | Distribution costs were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Distribution costs $ 32.5 $ 36.7 $ 113.2 $ 92.6 |
Promotional Costs (Tables)
Promotional Costs (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Promotional Costs [Abstract] | |
promotional cost, table | Promotional costs were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Promotional costs $ 51.9 $ 68.6 $ 184.6 $ 181.1 |
Incentive Compensation Plans (T
Incentive Compensation Plans (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity | Stock option activity for 2021, under all of the Company's incentive plans, is summarized in the following table: Stock Options Weighted Average Aggregate Intrinsic Value Outstanding at December 26, 2020 4,074,398 $ 43.74 Granted — — Expired / Forfeited (632,007) 57.51 Exercised (13,702) 37.16 Outstanding at September 25, 2021 3,428,689 $ 41.23 $ 18.7 Exercisable at September 25, 2021 2,356,437 $ 57.75 $ — |
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 2021 is summarized in the following table: Shares Weighted Outstanding at December 26, 2020 4,954,342 $ 3.60 Time-vested shares granted 399,460 24.54 Performance and market shares granted 338,822 24.83 Performance and market share adjustments 11,045 5.90 Vested (691,297) 4.63 Forfeited (367,580) 8.64 Outstanding at September 25, 2021 4,644,792 $ 6.40 |
Share-based Payment Arrangement, Cost by Plan | Stock-based compensation expense was: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Stock options $ 0.1 $ 0.3 $ 0.4 $ 0.8 Time, performance and market vested share awards $ 2.2 $ 2.7 $ 5.8 $ 6.0 |
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: As of (In millions) September 25, Unrecognized stock-based compensation expense $ 20.5 Weighted average years to recognize the unrecognized stock-based compensation 2.4 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, except share amounts) September 25, September 26, Shares retained to fund withholding taxes 102,019 11,187 Value of shares retained to fund withholding taxes $ 2.9 $ 0.2 |
Re-engineering Charges (Tables)
Re-engineering Charges (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | Re-engineering charges were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Turnaround plan $ 1.6 $ 3.4 $ 8.2 $ 27.7 Other 0.2 0.5 1.5 1.9 Total re-engineering charges $ 1.8 $ 3.9 $ 9.7 $ 29.6 Total re-engineering charges by segments Total re-engineering charges by segment were: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Asia Pacific 0.5 — 2.1 3.8 Europe 1.1 (0.3) 4.0 13.2 North America 0.3 2.0 1.7 2.3 South America — 2.2 0.2 2.5 Corporate (0.1) — 1.7 7.8 Total turnaround plan charges $ 1.8 $ 3.9 $ 9.7 $ 29.6 |
Accrued Liabilities, Re-engineering Charges Rollforward | The balance included in accrued liabilities related to the Turnaround Plan was: As of (In millions) September 25, December 26, Beginning balance $ 18.7 0 $ 16.0 Provision 9.7 0 35.4 Adjustments and other charges (0.1) 0 0.8 Currency translation adjustment (0.2) 0 — Cash expenditures: — 0 — Severance (12.7) 0 (29.6) Other (5.2) 0 (3.9) Ending balance $ 10.2 0 $ 18.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The effective tax rate was: 13 weeks ended 39 weeks ended September 25, September 26, September 25, September 26, Effective tax rate (25.8) % 42.7 % 19.1 % 31.8 % |
Schedule of Unrecognized Tax Benefits Roll Forward | Uncertain tax positions and related interest and penalties were: As of (In millions) September 25, December 26, Accrual for uncertain tax positions $ 30.9 $ 15.3 Uncertain tax positions impacting effective tax rate if recognized $ 26.2 $ 10.6 Interest and penalties related to uncertain tax positions $ 4.0 $ 3.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Earnings Per Share [Abstract] | |
Elements of Earnings per Share Computations | The elements of the earnings (loss) per share computations were as follows: 13 weeks ended 39 weeks ended (In millions, except per share amounts) September 25, September 26, September 25, September 26, Income (loss) from continuing operations $ 60.4 $ 29.4 $ 136.2 $ 83.0 Income (loss) on discontinued operations $ (146.5) $ 5.0 $ (141.4) $ 7.4 Net income (loss) $ (86.1) $ 34.4 $ (5.2) $ 90.4 Basic weighted-average shares 49.4 49.1 49.5 49.0 Effect of dilutive securities 3.4 4.0 3.6 2.5 Diluted weighted-average shares 52.8 53.1 53.1 51.5 Basic earnings (loss) from continuing operations - per share $ 1.22 $ 0.60 $ 2.75 $ 1.69 Basic earnings (loss) from discontinued operations per share $ (2.97) $ 0.10 $ (2.85) $ 0.15 Basic earnings (loss) per share - Total $ (1.75) $ 0.70 $ (0.10) $ 1.84 Diluted earnings (loss) from continuing operations - per share $ 1.14 $ 0.56 $ 2.56 $ 1.62 Diluted earnings (loss) from discontinued operations - per share $ (2.77) $ 0.09 $ (2.66) $ 0.14 Diluted earnings (loss) per share - Total $ (1.63) $ 0.65 $ (0.10) $ 1.76 Excluded anti-dilutive shares 2.4 3.3 2.6 4.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Rollforward of accumulated other comprehensive loss | The change in accumulated other comprehensive loss was as follows: (In millions, net of tax) Foreign Currency Items (a) (d) Cash Flow Hedges (b) Pension and Other Post-retirement Items (c) Total Balance at December 26, 2020 $ (648.4) $ 0.2 $ (37.7) $ (685.9) Other comprehensive income (loss) before reclassifications 4.4 0.5 0.4 5.3 Amounts reclassified from accumulated other comprehensive income (loss) — (0.2) 2.7 2.5 Other comprehensive income (loss) 4.4 0.3 3.1 7.8 Balance at September 25, 2021 $ (644.0) $ 0.5 $ (34.6) $ (678.1) ____________________ (a) Foreign currency item amounts reclassified from accumulated other comprehensive income (loss) impact the other (income) expense, net line item in the Condensed Consolidated Statements of Income (Loss). (b) Cash flow hedge amounts reclassified from accumulated other comprehensive income (loss) impact the cost of products sold line item in the Condensed Consolidated Statements of Income (Loss). Also see additional information for cash flow hedges at Note 14: Derivative Financial Instruments and Hedging Activities. (c) See additional information for pension and other post-retirement items at Note 18: Retirement Benefit Plans. (d) Included in the ending balance as of September 25, 2021 i s a $117.5 million of accumulated foreign currency losses that have been included in the calculation of the loss on assets held for sale and will reduce the accumulated foreign currency losses upon completion of the sales. (In millions, net of tax) Foreign Currency Items (a) (d) Cash Flow Hedges (b) Pension and Other Post-retirement Items (c) 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) ____________________ (a) Foreign currency item amounts reclassified from accumulated other comprehensive income (loss) impact the other (income) expense, net line item in the Condensed Consolidated Statements of Income (Loss). (b) Cash flow hedge amounts reclassified from accumulated other comprehensive income (loss) impact the cost of products sold line item in the Condensed Consolidated Statements of Income (Loss). Also see additional information for cash flow hedges at Note 14: Derivative Financial Instruments and Hedging Activities. (c) See additional information for pension and other post-retirement items at Note 18: Retirement Benefit Plans. Amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of: 39 weeks ended (In millions) September 25, September 26, Cash flow hedges (gain) losses $ 0.2 $ (3.5) Tax (benefit) provision — 0.7 Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges $ 0.2 $ (2.8) Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of: 39 weeks ended (In millions) September 25, September 26, Prior service (benefit) costs $ 0.4 $ (0.2) Settlements (gains) losses (1.4) 1.2 Actuarial (gains) losses (2.6) 1.4 Tax (benefit) provision 0.9 (0.8) Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items $ (2.7) $ 1.6 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash at end of period in the Condensed Consolidated Statements of Cash Flows is as follows: As of (In millions) September 25, December 26, Cash and cash equivalents $ 123.8 $ 134.1 Restricted cash 8.0 11.4 Cash, cash equivalents and restricted cash at end of period $ 131.8 $ 145.5 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Receivables [Abstract] | |
Accounts Receivable [Table] | The accounts receivable and allowance for credit losses balance was: |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories balance net of any inventory allowance was: As of (In millions) September 25, December 26, Finished goods $ 203.3 $ 156.7 Work in process 32.2 27.3 Raw materials and supplies 29.8 27.0 Inventory, net $ 265.3 $ 211.0 |
Long-Term Receivables (Tables)
Long-Term Receivables (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Long-Term Receivables Rollforward | The long-term receivables and allowance for long-term receivables balance was as follows: As of (In millions) September 25, December 26, Long-term receivables, gross $ 36.2 $ 39.1 Beginning balance for allowance for long-term receivables $ (26.7) $ (13.9) Write-offs 0.9 3.7 Recoveries 0.1 0.6 Provision (a) (5.2) (14.8) Currency translation adjustment 1.4 (2.3) Allowance for long-term receivables $ (29.5) $ (26.7) Long-term receivables, net $ 6.7 $ 12.4 |
Divestiture (Tables)
Divestiture (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Gain (Loss) Recorded on Divestitures | The results of operations are presented as discontinued operations as summarized below: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Net Sales $ 45.2 $ 53.5 $ 139.7 $ 141.0 Cost of products sold 16.9 19.6 51.6 53.2 Gross Profit $ 28.3 $ 33.9 $ 88.1 $ 87.8 Selling and administrative expenses 23.5 28.2 77.9 76.1 Re-engineering charges 0.1 (0.7) 0.1 0.7 (Gain) loss on disposal of assets — 0.3 — 0.3 (Gain) loss on held for sale assets and dispositions 148.1 — 147.1 — Operating income (loss) $ (143.4) $ 6.1 $ (137.0) $ 10.7 Other (income) expense, net 0.4 (0.2) 2.0 0.4 Income (loss) from discontinued operations before income taxes $ (143.8) $ 6.3 $ (139.0) $ 10.3 Provision (benefit) for income taxes 2.7 1.3 2.4 2.9 Net income (loss) from discontinued operations $ (146.5) $ 5.0 $ (141.4) $ 7.4 The carrying amount of major classes of assets and liabilities classified as held for sale that were included in discontinued operations at September 25, 2021 and December 26, 2020 are shown in the table below. As of (In millions) September 25, December 26, Assets Cash and cash equivalents $ 0.7 $ 5.0 Accounts receivable, net 15.2 18.8 Inventory, net 25.3 25.3 Non-trade accounts receivable, net 2.8 2.5 Prepaid expenses and other current assets 1.9 2.2 Accumulated translation adjustment losses, current (36.8) — Total assets of discontinued operations - current $ 9.1 $ 53.8 Deferred tax assets, net 5.8 6.2 Property, plant and equipment, net 12.1 13.8 Operating lease assets 3.9 6.9 Long-term receivables, net — 0.2 Trade names, net 6.9 11.9 Goodwill 1.8 6.4 Other assets, net 1.2 0.4 Accumulated translation adjustment losses (21.5) — Assets held for sale $ 10.2 $ 45.8 Total assets of discontinued operations $ 19.3 $ 99.6 Liabilities Accounts payable $ 13.3 $ 18.8 Accrued liabilities 25.4 28.6 Accumulated translation adjustment losses, current 89.9 — Total liabilities of discontinued operations - current $ 128.6 $ 47.4 Long-term debt and finance lease obligations Operating lease liabilities 2.0 4.0 Other liabilities 9.2 9.9 Liabilities held for sale $ 11.2 $ 13.9 Total liabilities of discontinued operations $ 139.8 $ 61.3 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Forward points gain (loss) on fair value hedges $ 1.8 $ 2.8 $ 4.1 $ 15.4 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Forward points gain (loss) recorded in other comprehensive income $ (0.1) $ — $ (0.1) $ — Forward points gain (loss) from settlement of cash flow hedges $ (0.1) $ (0.6) $ (0.1) $ (2.0) Fair value gain (loss) recorded in other comprehensive income $ 0.2 $ (1.3) $ 0.5 $ 0.8 Gain (loss) recorded in accumulated other comprehensive income $ 0.2 $ (1.3) $ 0.3 $ 3.2 As of Derivatives designated as hedging instruments ( in millions ) Balance sheet location September 25, December 26, 2020 Derivative assets: Foreign exchange contracts Non-trade accounts receivable, net $ 5.4 $ 4.3 Derivative liabilities: Foreign exchange contracts Accrued liabilities $ (5.3) $ (4.4) |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional value of largest outstanding positions to purchase and sell currencies was: As of (In millions) September 25, Sell Euros $ 17.1 Purchase Japanese Yen $ 14.1 Sell Swiss Francs $ 10.9 Purchase United States Dollars $ 26.0 As of (In millions) December 26, 2020 Sell Euros $ 16.8 Purchase South Korean Won $ 35.4 Purchase Swiss Franc $ 23.3 Sell United States Dollars $ 79.9 |
Derivative Instruments, Gain (Loss) | Changes in fair value, net of tax, recorded in other comprehensive income (loss) and the pretax income on forward points was as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Fair value gain (loss) recorded in other comprehensive income $ (1.3) $ (5.6) $ 2.7 $ 6.9 Forward points gain (loss) recorded in other comprehensive income $ (2.7) $ (3.4) $ (7.6) $ (16.2) |
Schedule of Notional Value of Forward Contracts | The notional value of forward contracts to purchase and sell currencies was: As of (In millions) September 25, December 26, 2020 Notional value of forward contracts to purchase currencies $ 61.3 $ 125.2 Notional value of forward contracts to sell currencies $ 61.2 $ 125.3 |
Schedule of Net Derivative Position | Including the effect of master netting arrangements that provide a right of offset upon default of the counterparty, the Company’s net derivative position amounts were: As of (In millions) September 25, December 26, 2020 Net derivative asset (liability) $ 0.1 $ (0.1) |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
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: As of (In millions) September 25, December 26, Deferred revenue $ 10.3 $ 14.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The debt portfolio consisted of: As of (In millions) September 25, December 26, 2020 Term loan $ 173.8 $ 275.0 Credit agreement 511.0 423.3 Finance leases (a) 2.1 3.3 Unamortized debt issuance costs (8.5) (18.3) Total debt $ 678.4 $ 683.3 Current debt and finance lease obligations $ 512.4 $ 424.7 Long-term debt and finance lease obligations 166.0 258.6 Total debt $ 678.4 $ 683.3 |
Schedule of Extinguishment of Debt | Term loan prepayments made were as follows: (In millions) Term Loan Balance at December 26, 2020 $ 275.0 Term loan prepayment on February 28, 2021 (a) 34.0 Term loan prepayment on May 14, 2021 (b) 9.0 Term loan prepayment on June 21, 2021 (c) 58.2 Total term loan prepayment amount $ 101.2 Balance at September 25, 2021 $ 173.8 ____________________ (a) Includes a 1.0% prepayment premium of $0.3 million. (b) Includes a 1.0% prepayment premium of $0.1 million. (c) Includes a 3.0% prepayment premium of $1.7 million. 13 weeks ended 39 weeks ended (In millions) September 25, September 25, Term loan retirement amount $ — $ 101.2 Less: Term loan prepayment amount — 101.2 Less: Costs incurred — 8.1 Loss on debt extinguishment (pre-tax) $ — $ (8.1) Basic earnings (loss) per share from loss on debt extinguishment (pre-tax) $ — $ (0.16) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Leases [Abstract] | |
Lease, Expense | Components of lease expense were as follows: 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Operating lease costs: Operating lease cost (a) (b) $ 8.4 $ 10.3 $ 27.6 $ 32.7 Finance lease costs: Amortization of right-of-use assets (a) $ 0.2 $ 0.2 0.5 0.6 Interest on lease liabilities (c) 0.1 — 0.1 0.1 Total finance lease cost $ 0.3 $ 0.2 $ 0.6 $ 0.7 ____________________ (a) Included in selling, general and administrative expense and cost of products sold. (b) Includes short-term rent expense of $0.7 million and $0.6 million in the third quarters of 2021 and 2020, respectively, and $1.8 million and $2.1 million in the respective year-to-date periods. Also includes variable rent expense of $0.4 million and $0.3 million in the third quarters of 2021 and 2020, respectively, and $1.1 million and $0.6 million in t he respective year-to-date periods. (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 25, September 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (27.1) $ (29.2) Financing cash flows from finance leases $ (1.0) $ (0.3) Leased assets obtained in exchange for new operating lease liabilities $ — $ 9.2 |
Supplemental Balance Sheet information related to Leases | Supplemental information related to leases is as follows: As of (In millions, except lease term and discount rate) September 25, December 26, Operating Leases: Operating lease right-of-use assets $ 81.0 $ 91.0 Accrued liabilities $ 23.4 $ 26.5 Operating lease liabilities 61.1 66.1 Total Operating lease liabilities $ 84.5 $ 92.6 Finance Leases: Property, plant and equipment, at cost $ 18.8 $ 19.7 Accumulated amortization (12.1) (12.2) Property, plant and equipment, net $ 6.7 $ 7.5 Current portion of finance lease obligations $ 1.4 $ 1.4 Long-term finance lease obligations 0.7 1.9 Total Finance lease liabilities $ 2.1 $ 3.3 Weighted average remaining lease term (in years) Operating leases 5.4 years 5.4 years Finance leases 1.7 years 2.4 years Weighted average discount rate Operating leases 5.5 % 5.7 % Finance leases 5.1 % 5.1 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 25, 2021 and December 26, 2020 were as follows: As of As of September 25, 2021 December 26, 2020 (In millions) Operating Leases Finance Leases Operating Leases Finance Leases 2021 $ 10.6 $ 0.3 $ 29.3 $ 1.6 2022 24.5 1.8 20.3 1.9 2023 18.4 — 14.0 — 2024 13.4 — 9.4 — 2025 7.9 — 6.1 — Thereafter 31.3 — 30.8 — Total undiscounted lease liability $ 106.1 $ 2.1 $ 109.9 $ 3.5 Less imputed interest (21.6) — (17.3) (0.2) Total $ 84.5 $ 2.1 $ 92.6 $ 3.3 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic cost (benefit) for the third quarters ended September 25, 2021 and September 26, 2020 were as follows: Pension benefits Post-retirement benefits 13 weeks ended 13 weeks ended (In millions) September 25, September 26, September 25, September 26, Service cost $ 1.7 $ 2.1 $ — $ 0.1 Interest cost 1.3 0.9 — 0.1 Return on plan assets (0.8) (1.0) — — Settlement/curtailment 0.2 0.8 — — Net amortization 0.9 0.4 (0.1) — Net periodic cost (benefit) $ 3.3 $ 3.2 $ (0.1) $ 0.2 Pension benefits Post-retirement benefits 39 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Service cost $ 5.3 $ 6.3 $ 0.1 $ 0.1 Interest cost 3.0 3.1 0.2 0.3 Return on plan assets (2.5) (3.0) — — Settlement/curtailment 1.4 1.2 — — Net amortization 2.6 1.8 (0.4) (0.6) Net periodic cost (benefit) $ 9.8 $ 9.4 $ (0.1) $ (0.2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Senior Notes [Table] | he fair value of the Term Loan was as follows: As of As of September 25, 2021 December 26, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 173.8 $ 173.8 $ 275.0 $ 275.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 13 weeks ended 39 weeks ended (In millions) September 25, September 26, September 25, September 26, Net sales Asia Pacific $ 112.9 $ 129.6 $ 343.8 $ 368.1 Europe 91.3 112.5 326.8 296.3 North America 103.1 116.2 343.0 289.4 South America 69.6 65.4 193.8 155.7 Total net sales $ 376.9 $ 423.7 $ 1,207.4 $ 1,109.5 Segment profit Asia Pacific $ 25.7 $ 36.3 $ 81.9 $ 84.8 Europe 14.7 27.1 66.5 37.8 North America 10.5 18.9 42.6 42.6 South America 13.5 15.2 46.8 29.4 Total segment profit 64.4 97.5 237.8 194.6 Unallocated expenses 8.4 2.1 39.8 (4.7) Re-engineering charges (a) 1.8 3.9 9.7 29.6 (Gain) loss on disposal of assets (1.7) 32.3 (8.9) 18.5 Interest expense 8.2 8.2 29.7 30.5 Interest income (0.3) (0.3) (0.9) (1.0) Income (loss) from continuing operations before income taxes $ 48.0 $ 51.3 $ 168.4 $ 121.7 ____________________ (a) See Note 5: Re-engineering Charges for further discussion. Total identifiable assets by segment were: As of (In millions) September 25, December 26, Identifiable assets Asia Pacific $ 262.7 $ 272.4 Europe 235.0 251.7 North America 210.4 174.1 South America 109.3 102.7 Corporate 390.3 419.0 Total identifiable assets $ 1,207.7 $ 1,219.9 |
Shipping and Handling Costs (De
Shipping and Handling Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Shipping and Handling [Line Items] | ||||
Selling, general and administrative expense | $ 190.7 | $ 205.7 | $ 620.5 | $ 608.7 |
Shipping and Handling | ||||
Shipping and Handling [Line Items] | ||||
Selling, general and administrative expense | $ 32.5 | $ 36.7 | $ 113.2 | $ 92.6 |
Promotional Costs (Details)
Promotional Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Promotional Costs [Abstract] | ||||
Promotional and other sales force compensation expenses | $ 51.9 | $ 68.6 | $ 184.6 | $ 181.1 |
Incentive Compensation Plans (D
Incentive Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense | $ 20,500 | $ 20,500 | |||
Weighted average years to recognize the unrecognized stock-based compensation | 2 years 4 months 24 days | ||||
Shares retained to fund withholding taxes | 102,019 | 11,187 | |||
Value of shares retained to fund withholding taxes | $ 2,900 | $ 200 | |||
Time Vested, Performance Vested and Market Vested Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares Outstanding, Beginning of Period | 4,954,342 | ||||
Vested | (691,297) | ||||
Forfeited | (367,580) | ||||
Shares Outstanding, End of Period | 4,644,792 | 4,644,792 | |||
Weighted Average Grant Date Fair Value, Beginning of Period | $ 3.60 | ||||
Vested | 4.63 | ||||
Forfeited | 8.64 | ||||
Weighted Average Grant Date Fair Value, End of Period | $ 6.40 | $ 6.40 | |||
Restricted Stock or Unit Expense | $ 2,200 | $ 2,700 | $ 5,800 | 6,000 | |
Time-vested shares granted | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 399,460 | ||||
Granted | $ 24.54 | ||||
Performance and market shares granted | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 338,822 | ||||
Performance and market share adjustments | 11,045 | ||||
Granted | $ 24.83 | ||||
Performance and market share adjustments | $ 5.90 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding at December 26, 2020 | 4,074,398 | ||||
Granted | 0 | ||||
Expired / Forfeited | (632,007) | ||||
Exercised | (13,702) | ||||
Outstanding at September 25, 2021 | 3,428,689 | 3,428,689 | |||
Weighted Average Exercise Price Per Share Outstanding, Beginning of Period | $ 43.74 | ||||
Granted | 0 | ||||
Expired / Forfeited | 57.51 | ||||
Exercised | 37.16 | ||||
Weighted Average Exercise Price Per Share Outstanding, End of Period | $ 41.23 | $ 41.23 | |||
Aggregate Intrinsic Value | $ 18,700 | $ 18,700 | |||
Exercisable at September 25, 2021 | 2,356,437 | 2,356,437 | |||
Weighted Average Exercise Price Per Share | $ 57.75 | $ 57.75 | |||
Exercisable, Aggregate Intrinsic Value | $ 0 | $ 0 | |||
Stock or Unit Option Plan Expense | $ 100 | $ 300 | $ 400 | $ 800 |
Re-engineering Charges (Details
Re-engineering Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | $ 1.8 | $ 3.9 | $ 9.7 | $ 29.6 | $ 35.4 |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 1.8 | 3.9 | 9.7 | 29.6 | 35.4 |
Turnaround plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 1.6 | 3.4 | 8.2 | 27.7 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 18.7 | 16 | 16 | ||
Re-engineering charges | 1.6 | 3.4 | 8.2 | 27.7 | |
Adjustments and other charges | (0.1) | 0.8 | |||
Currency translation adjustment | (0.2) | 0 | |||
Ending balance | 10.2 | 10.2 | 18.7 | ||
Turnaround plan | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures: | (12.7) | (29.6) | |||
Turnaround plan | Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash expenditures: | (5.2) | $ (3.9) | |||
Turnaround plan | Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | (0.1) | 0 | 1.7 | 7.8 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | (0.1) | 0 | 1.7 | 7.8 | |
Turnaround plan | Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 0.5 | 0 | 2.1 | 3.8 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 0.5 | 0 | 2.1 | 3.8 | |
Turnaround plan | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 1.1 | (0.3) | 4 | 13.2 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 1.1 | (0.3) | 4 | 13.2 | |
Turnaround plan | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 0.3 | 2 | 1.7 | 2.3 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 0.3 | 2 | 1.7 | 2.3 | |
Turnaround plan | South America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 0 | 2.2 | 0.2 | 2.5 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | 0 | 2.2 | 0.2 | 2.5 | |
Other | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Re-engineering charges | 0.2 | 0.5 | 1.5 | 1.9 | |
Restructuring Reserve [Roll Forward] | |||||
Re-engineering charges | $ 0.2 | $ 0.5 | $ 1.5 | $ 1.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Valuation Allowance [Line Items] | |||||
Effective tax rate | (25.80%) | 42.70% | 19.10% | 31.80% | |
Gross unrecognized tax benefit | $ 15.3 | ||||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 10.6 | ||||
Accrued interest and penalties related to uncertain tax positions | $ 4 | $ 4 | $ 3.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Net Income Per Common Share [Line Items] | ||||
Basic weighted-average shares | 49.4 | 49.1 | 49.5 | 49 |
Common equivalent shares: | ||||
Effect of dilutive securities | 3.4 | 4 | 3.6 | 2.5 |
Diluted weighted-average shares | 52.8 | 53.1 | 53.1 | 51.5 |
Basic earnings (loss) from continuing operations - per share | $ 1.22 | $ 0.60 | $ 2.75 | $ 1.69 |
Basic earnings (loss) from discontinued operations per share | (2.97) | 0.10 | (2.85) | 0.15 |
Basic earnings (loss) per share - Total | (1.75) | 0.70 | (0.10) | 1.84 |
Diluted earnings (loss) from continuing operations - per share | 1.14 | 0.56 | 2.56 | 1.62 |
Diluted earnings (loss) from discontinued operations - per share | (2.77) | 0.09 | (2.66) | 0.14 |
Diluted earnings (loss) per share - Total | $ (1.63) | $ 0.65 | $ (0.10) | $ 1.76 |
Excluded anti-dilutive shares | 2.4 | 3.3 | 2.6 | 4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | Dec. 28, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | $ (678.1) | $ (678.1) | $ (685.9) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 5.3 | $ (62.8) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2.5 | (1.2) | ||||||||
Other comprehensive income (loss) | (1.7) | $ 4.2 | $ 5.3 | $ 1.2 | $ 16.3 | $ (81.5) | 7.8 | (64) | ||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives Before Tax | 0.2 | (3.5) | ||||||||
Gain (Loss) Reclassification Adjustment From AOCI On Derivatives, Tax | 0 | 0.7 | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (0.2) | 2.8 | ||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0.4 | (0.2) | ||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | (1.4) | 1.2 | ||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (2.6) | 1.4 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, pension and other post-retirement items, tax | 0.9 | (0.8) | ||||||||
Total shareholders' equity (deficit) | (223.3) | (112.8) | (153.3) | (244) | (282.3) | (364) | (223.3) | (244) | (204.7) | $ (277) |
AOCI Attributable to Parent | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Other comprehensive income (loss) | (1.7) | 4.2 | 5.3 | 1.2 | 16.3 | (81.5) | ||||
Total shareholders' equity (deficit) | (678.1) | $ (676.4) | $ (680.6) | (702.3) | $ (703.5) | $ (719.8) | (678.1) | (702.3) | (685.9) | (638.3) |
Foreign Currency Items | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 4.4 | (69.8) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||||
Other comprehensive income (loss) | 4.4 | (69.8) | ||||||||
Total shareholders' equity (deficit) | (644) | (670) | (644) | (670) | (648.4) | (600.2) | ||||
Foreign Currency Items | Discontinued Operations | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss | 117.5 | 117.5 | ||||||||
Cash Flow Hedges | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0.5 | 6 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.2) | (2.8) | ||||||||
Other comprehensive income (loss) | 0.3 | 3.2 | ||||||||
Total shareholders' equity (deficit) | 0.5 | 0.8 | 0.5 | 0.8 | 0.2 | (2.4) | ||||
Pension and Other Post-retirement Items | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0.4 | 1 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2.7 | 1.6 | ||||||||
Other comprehensive income (loss) | 3.1 | 2.6 | ||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (2.7) | 1.6 | ||||||||
Total shareholders' equity (deficit) | $ (34.6) | $ (33.1) | $ (34.6) | $ (33.1) | $ (37.7) | $ (35.7) |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 123.8 | $ 134.1 |
Restricted Cash | 8 | 11.4 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 131.8 | $ 145.5 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Receivables [Abstract] | ||
Account receivable | $ 122 | $ 133.2 |
Accounts Receivable, Allowance for Credit Loss | (29) | (37.3) |
Accounts receivable, net | $ 93 | $ 95.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Inventory, Net [Abstract] | ||
Finished goods | $ 203.3 | $ 156.7 |
Work in process | 32.2 | 27.3 |
Raw materials and supplies | 29.8 | 27 |
Inventory, net | $ 265.3 | $ 211 |
Long-Term Receivables (Details)
Long-Term Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 26, 2021 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | $ 36.2 | $ 39.1 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance for allowance for long-term receivables | $ (26.7) | (26.7) | $ (13.9) | |
Write-offs | 0.9 | 3.7 | ||
Recoveries | 0.1 | 0.6 | ||
Provision | (5.2) | (14.8) | ||
Currency translation adjustment | 1.4 | $ (2.3) | ||
Ending balance | (29.5) | |||
Long-term receivables, net | 6.7 | 12.4 | ||
Reclassifications from current receivables | $ 8.3 | 3.4 | ||
Long-term receivables past due | $ 30.8 | $ 30.9 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2021USD ($)letterOfIntent | Mar. 27, 2021USD ($) | Sep. 26, 2020USD ($) | Sep. 25, 2021USD ($)letterOfIntent | Sep. 26, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of Letters of Intent Executed | letterOfIntent | 2 | 2 | |||
(Gain) loss on held for sale assets and dispositions | $ (148.1) | $ 0 | $ (147.1) | $ 0 | |
Land held for sale | 10.4 | 10.4 | |||
Avroy Shlain | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on held for sale assets and dispositions | $ 1 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on held for sale assets and dispositions | $ (148.1) | $ 0 | $ (147.1) | $ 0 |
Divestitures - Discontinued Ope
Divestitures - Discontinued Operations, Income Statement Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Gain) loss on held for sale assets and dispositions | $ 148.1 | $ 0 | $ 147.1 | $ 0 |
Income (loss) from discontinued operations before income taxes | 4.3 | 6.3 | 8.1 | 10.3 |
Provision (benefit) for income taxes | 2.7 | 1.3 | 2.4 | 2.9 |
Income (loss) on discontinued operations | (146.5) | 5 | (141.4) | 7.4 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 45.2 | 53.5 | 139.7 | 141 |
Cost of products sold | 16.9 | 19.6 | 51.6 | 53.2 |
Gross Profit | 28.3 | 33.9 | 88.1 | 87.8 |
Selling and administrative expenses | 23.5 | 28.2 | 77.9 | 76.1 |
Re-engineering charges | 0.1 | (0.7) | 0.1 | 0.7 |
(Gain) loss on disposal of assets | 0 | 0.3 | 0 | 0.3 |
(Gain) loss on held for sale assets and dispositions | 148.1 | 0 | 147.1 | 0 |
Operating income (loss) | (143.4) | 6.1 | (137) | 10.7 |
Other (income) expense, net | 0.4 | (0.2) | 2 | 0.4 |
Income (loss) from discontinued operations before income taxes | (143.8) | 6.3 | (139) | 10.3 |
Provision (benefit) for income taxes | 2.7 | 1.3 | 2.4 | 2.9 |
Income (loss) on discontinued operations | $ (146.5) | $ 5 | $ (141.4) | $ 7.4 |
Divestitures - Discontinued O_2
Divestitures - Discontinued Operations, Balance Sheet Disclosures (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets of discontinued operations - current | $ 9.1 | $ 53.8 |
Assets held for sale | 20.6 | 45.8 |
Current liabilities held for sale | 128.6 | 47.4 |
Liabilities held for sale | 11.2 | 13.9 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 0.7 | 5 |
Accounts receivable, net | 15.2 | 18.8 |
Inventory, net | 25.3 | 25.3 |
Non-trade accounts receivable, net | 2.8 | 2.5 |
Prepaid expenses and other current assets | 1.9 | 2.2 |
Accumulated translation adjustment losses, current | (36.8) | 0 |
Total assets of discontinued operations - current | 9.1 | 53.8 |
Deferred tax assets, net | 5.8 | 6.2 |
Property, plant and equipment, net | 12.1 | 13.8 |
Operating lease assets | 3.9 | 6.9 |
Long-term receivables, net | 0 | 0.2 |
Trade names, net | 6.9 | 11.9 |
Goodwill | 1.8 | 6.4 |
Other assets, net | 1.2 | 0.4 |
Accumulated translation adjustment losses | (21.5) | 0 |
Assets held for sale | 10.2 | 45.8 |
Total assets of discontinued operations | 19.3 | 99.6 |
Accounts payable | 13.3 | 18.8 |
Accrued liabilities | 25.4 | 28.6 |
Accumulated translation adjustment losses, current | 89.9 | 0 |
Current liabilities held for sale | 128.6 | 47.4 |
Operating lease liabilities | 2 | 4 |
Other liabilities | 9.2 | 9.9 |
Liabilities held for sale | 11.2 | 13.9 |
Total liabilities of discontinued operations | $ 139.8 | $ 61.3 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Change in Unrealized Gain (Loss) on Foreign Currency Fair Value Hedging Instruments | $ 1.8 | $ 2.8 | $ 4.1 | $ 15.4 | |||||
Other Comprehensive Income (Loss), Net of Tax | 1.7 | $ (4.2) | $ (5.3) | (1.2) | $ (16.3) | $ 81.5 | (7.8) | 64 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (0.1) | (0.6) | (0.1) | (2) | |||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 0.2 | (1.3) | 0.5 | 0.8 | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (0.2) | 2.8 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 678.1 | 678.1 | $ 685.9 | ||||||
Other Comprehensive Income (Loss) impact from Net Investment Hedging, Forward Points | (0.1) | 0 | (0.1) | 0 | |||||
Net derivative asset (liability) | 0.1 | $ 0.1 | $ (0.1) | ||||||
Cash Flow Hedging | 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 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1.3) | (5.6) | $ 2.7 | 6.9 | |||||
Other Comprehensive Income (Loss) impact from Net Investment Hedging, Forward Points | $ (2.7) | $ (3.4) | $ (7.6) | $ (16.2) | |||||
Minimum | Cash Flow Hedging | Foreign exchange contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, Remaining Maturity Range | 1 month | ||||||||
Maximum | Cash Flow Hedging | Foreign exchange contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, Remaining Maturity Range | 15 months |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Outstanding Derivative Financial Instruments at Notional Value) (Details) - Forward Contracts - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 61.3 | $ 125.2 |
Derivative Liability, Notional Amount | 61.2 | 125.3 |
Korea (South), Won | Long | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 14.1 | 35.4 |
Switzerland, Francs | Long | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 26 | 23.3 |
U.S. dollars | Short | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 10.9 | 79.9 |
Philippines, Pesos | Short | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 17.1 | |
Euro | Short | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 16.8 |
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 - Foreign exchange contracts - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Non-Trade Amounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 5.4 | $ 4.3 |
Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ (5.3) | $ (4.4) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Company's Derivative Positions and Their Impact on Company's Operations) (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 25, 2021USD ($) | Sep. 25, 2021EUR (€) | Sep. 26, 2020USD ($) | Sep. 26, 2020EUR (€) | Sep. 25, 2021USD ($) | Sep. 25, 2021EUR (€) | Sep. 26, 2020USD ($) | Sep. 26, 2020EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 0.2 | $ (1.3) | $ 0.3 | $ 3.2 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (0.1) | (0.6) | (0.1) | (2) | ||||
Other expense (income) | Forward Contracts | Philippines, Pesos | Short | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of gain (loss) recognized in income on related hedged items | (1.1) | (1.4) | 7.7 | 33.6 | ||||
Fair Value Hedging | Other expense (income) | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of gain or (loss) recognized in income on derivatives | 2.1 | 1.4 | (7.7) | (31.6) | ||||
Cash Flow Hedges | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 0.4 | (0.4) | 0.5 | 6.7 | ||||
Cash Flow Hedges | Cost of products sold | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0.2 | 1 | 0.2 | 3.5 | ||||
Net Investment Hedges | Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (3.6) | € 1.9 | $ (4.1) | € (3.1) | $ (1) | € 4.4 | $ 14.2 | € (5.3) |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred Revenue | $ 10.3 | $ 14.1 |
Debt - Components of debt (Deta
Debt - Components of debt (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Debt Instrument [Line Items] | ||
Finance leases | $ 2.1 | $ 3.3 |
Unamortized debt issuance costs | (8.5) | (18.3) |
Current debt and finance lease obligations | 512.4 | 424.7 |
Long-term debt and finance lease obligations | 166 | 258.6 |
Total debt | 678.4 | 683.3 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Term loan | 173.8 | |
Credit agreement | ||
Debt Instrument [Line Items] | ||
Credit agreement | $ 511 | $ 423.3 |
Debt -Term Loan (Details)
Debt -Term Loan (Details) - USD ($) $ in Millions | Dec. 03, 2020 | Sep. 25, 2021 | Sep. 25, 2021 | Sep. 26, 2020 |
Debt Instrument [Line Items] | ||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 3.75% | |||
Term Loan | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Long-term Lines of Credit | $ 275 | |||
Debt Instrument, Unamortized Discount, Percent | 4.50% | |||
Debt Instrument, Unamortized Discount | $ 12.4 | |||
Debt Instrument, Variable Rate Floor | 2.00% | |||
Term Loan | Fed Funds | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Term Loan | Eurodollar | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 8.75% | ||
Term Loan | Eurodollar | Debt Instrument, Redemption, Period One | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 8.75% | |||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 275.00% | |||
Term Loan | Eurodollar | Debt Instrument, Redemption, Period Two | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 8.25% | |||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 275.00% | |||
Term Loan | Base Rate | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | |||
Term Loan | Base Rate | Debt Instrument, Redemption, Period One | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | |||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 275.00% | |||
Term Loan | Base Rate | Debt Instrument, Redemption, Period Two | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 7.25% | |||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 275.00% | |||
Line of Credit | Parent Term Loan | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200 | |||
Line of Credit | Dart Term Loan | Term Loan Facility | Dart Industries, Inc. | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | |||
Line of Credit | Term Loan | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Variable Rate Floor | 1.00% |
Debt - Term Loan Prepayment (De
Debt - Term Loan Prepayment (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 25, 2021USD ($) | Sep. 25, 2021USD ($) | |
Extinguishment of Debt [Line Items] | ||
Term loan prepayments | $ 0 | $ 101.2 |
Term Loan | ||
Extinguishment of Debt [Line Items] | ||
Balance at September 25, 2021 | 173.8 | 173.8 |
Term Loan | Term Loan Facility | ||
Extinguishment of Debt [Line Items] | ||
Balance at December 26, 2020 | 275 | |
Balance at September 25, 2021 | 173.8 | 173.8 |
Term Loan | Term loan prepayment on February 28, 2021 | Term Loan Facility | ||
Extinguishment of Debt [Line Items] | ||
Term loan prepayments | $ 34 | 101.2 |
Prepayment premium percentage | 1.00% | |
prepayment premium | $ 0.3 | 0.3 |
Term Loan | Term loan prepayment on May 14, 2021 | Term Loan Facility | ||
Extinguishment of Debt [Line Items] | ||
Term loan prepayments | $ 9 | |
Prepayment premium percentage | 1.00% | |
prepayment premium | $ 0.1 | $ 0.1 |
Term Loan | Term loan prepayment on June 21, 2021 | Term Loan Facility | ||
Extinguishment of Debt [Line Items] | ||
Term loan prepayments | 58.2 | |
Prepayment premium percentage | 3.00% | |
prepayment premium | $ 1.7 | $ 1.7 |
Debt - Schedule of Debt Extingu
Debt - Schedule of Debt Extinguishment (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Extinguishment of Debt [Line Items] | ||||
Term loan retirement amount | $ 0 | $ 101.2 | ||
Term loan prepayments | 0 | 101.2 | ||
Payment for debt extinguishment cost | 0 | 8.1 | ||
(Gain) Loss on debt extinguishment | 0 | $ 9.9 | (8.1) | $ 49.9 |
Term Loan | Term Loan Facility | Term Loan | ||||
Extinguishment of Debt [Line Items] | ||||
(Gain) Loss on debt extinguishment | $ 0 | $ (8.1) | ||
Basic earnings (loss) per share from loss on debt extinguishment (pre-tax) | $ 0 | $ (0.16) |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) $ in Millions | Feb. 28, 2020 | Sep. 25, 2021USD ($) | Sep. 25, 2021USD ($) | Sep. 26, 2020 | Dec. 26, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 3.75% | ||||
Unused lines of credit | $ 147 | $ 147 | |||
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% | ||||
Credit agreement | |||||
Debt Instrument [Line Items] | |||||
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 | |||
Unused lines of credit | 120.9 | 120.9 | |||
Credit agreement | $ 511 | $ 511 | $ 423.3 | ||
Credit agreement | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 163.00% | ||||
Weighted average interest rate on LIBOR-based borrowings | 1.70% | 1.70% | |||
Derivative, Basis Spread on Variable Rate | 1.00% | 1.00% | |||
Credit agreement | Fed Funds | |||||
Debt Instrument [Line Items] | |||||
Derivative, Basis Spread on Variable Rate | 0.50% | 0.50% | |||
Credit agreement | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | $ 50 | |||
Credit agreement | Swingline [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | 100 | |||
Credit agreement | Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 325 | $ 325 | |||
Credit agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | ||||
Credit agreement | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||
Credit agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.275% | ||||
Credit agreement | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | ||||
Credit agreement | Euro | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | 94.7 | $ 94.7 | $ 160.3 | ||
Uncommitted Lines of credit | |||||
Debt Instrument [Line Items] | |||||
Unused lines of credit | $ 26.1 | $ 26.1 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Debt Instrument [Line Items] | |||||||
(Gain) Loss on debt extinguishment | $ 0 | $ 9.9 | $ (8.1) | $ 49.9 | |||
Senior Notes Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal | $ 600 | ||||||
(Gain) Loss on debt extinguishment | $ (9.7) | $ 9.9 | $ 40 | ||||
Stated interest rate | 4.75% | 4.75% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Lessee, Lease, Description [Line Items] | |||||
Operating Lease Not yet Commenced | $ 1 | $ 1 | |||
Lease Expense Disclosure [Abstract] | |||||
Operating lease cost | 8.4 | $ 10.3 | 27.6 | $ 32.7 | |
Amortization of right-of-use assets | 0.2 | 0.2 | 0.5 | 0.6 | |
Interest on lease liabilities | 0.1 | 0 | 0.1 | 0.1 | |
Finance Lease, cost | 0.3 | 0.2 | 0.6 | 0.7 | |
Short-term rent expense | 0.7 | 0.6 | 1.8 | 2.1 | |
Variable rent expense | 0.4 | $ 0.3 | 1.1 | 0.6 | |
Leases Supplemental Cash Flow Disclosure [Abstract] | |||||
Operating cash flows from operating leases | (27.1) | (29.2) | |||
Financing cash flows from finance leases | (1) | (0.3) | |||
Leased assets obtained in exchange for new operating lease liabilities | 0 | $ 9.2 | |||
Lease Balance Sheet Disclosure [Abstract] | |||||
Operating lease right-of-use assets | 81 | 81 | $ 91 | ||
Accrued liabilities | 23.4 | 23.4 | 26.5 | ||
Operating lease liabilities | 61.1 | 61.1 | 66.1 | ||
Total Operating lease liabilities | 84.5 | 84.5 | 92.6 | ||
Property, plant and equipment, at cost | 18.8 | 18.8 | 19.7 | ||
Accumulated amortization | (12.1) | (12.1) | (12.2) | ||
Finance Lease, Right-of-Use Asset | 6.7 | 6.7 | 7.5 | ||
Current portion of finance lease obligations | 1.4 | 1.4 | 1.4 | ||
Long-term finance lease obligations | 0.7 | 0.7 | 1.9 | ||
Total Finance lease liabilities | $ 2.1 | $ 2.1 | $ 3.3 | ||
Weighted Average Remaining Lease Terms [Abstract] | |||||
Operating leases | 5 years 4 months 24 days | 5 years 4 months 24 days | 5 years 4 months 24 days | ||
Finance leases | 1 year 8 months 12 days | 1 year 8 months 12 days | 2 years 4 months 24 days | ||
Weighted Average Discount Rate [Abstract] | |||||
Operating leases | 5.50% | 5.50% | 5.70% | ||
Finance leases | 5.10% | 5.10% | 5.10% | ||
Operating Leases | |||||
2021 | $ 10.6 | $ 10.6 | $ 29.3 | ||
2022 | 24.5 | 24.5 | 20.3 | ||
2023 | 18.4 | 18.4 | 14 | ||
2024 | 13.4 | 13.4 | 9.4 | ||
2025 | 7.9 | 7.9 | 6.1 | ||
Thereafter | 31.3 | 31.3 | 30.8 | ||
Total undiscounted lease liability | 106.1 | 106.1 | 109.9 | ||
Less imputed interest | (21.6) | (21.6) | (17.3) | ||
Total | 84.5 | 84.5 | 92.6 | ||
Finance Leases | |||||
2021 | 0.3 | 0.3 | 1.6 | ||
2022 | 1.8 | 1.8 | 1.9 | ||
2023 | 0 | 0 | 0 | ||
2024 | 0 | 0 | 0 | ||
2025 | 0 | 0 | 0 | ||
Thereafter | 0 | 0 | 0 | ||
Total undiscounted lease liability | 2.1 | 2.1 | 3.5 | ||
Less imputed interest | 0 | 0 | (0.2) | ||
Total | $ 2.1 | $ 2.1 | $ 3.3 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Renewal Term | 1 year | 1 year | |||
Lessee, Finance Lease, Renewal Term | 1 year | 1 year | |||
Maximum | |||||
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. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization | $ 3.6 | $ 2.4 | ||
Other expense (income) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic cost (benefit) | 4.3 | 2.8 | ||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.7 | $ 2.1 | 5.3 | 6.3 |
Interest cost | 1.3 | 0.9 | 3 | 3.1 |
Return on plan assets | (0.8) | (1) | (2.5) | (3) |
Net amortization | 0.9 | 0.4 | 2.6 | 1.8 |
Settlement/curtailment | (0.2) | (0.8) | (1.4) | (1.2) |
Net periodic cost (benefit) | 3.3 | 3.2 | 9.8 | 9.4 |
Post-retirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0.1 | 0.1 | 0.1 |
Interest cost | 0 | 0.1 | 0.2 | 0.3 |
Return on plan assets | 0 | 0 | 0 | 0 |
Net amortization | (0.1) | 0 | (0.4) | (0.6) |
Settlement/curtailment | 0 | 0 | 0 | 0 |
Net periodic cost (benefit) | $ (0.1) | $ 0.2 | $ (0.1) | $ (0.2) |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | Sep. 25, 2021 |
Minimum | |
Other Commitments [Line Items] | |
Lease, term | 1 year |
Maximum | |
Other Commitments [Line Items] | |
Lease, term | 4 years |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Dec. 26, 2020 |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Debt, Carrying Value | $ 512.4 | $ 424.7 |
Significant Other Observable Inputs (Level 2) | Term Loan | ||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Debt, Carrying Value | 173.8 | 275 |
Debt Instrument, Fair Value Disclosure | $ 173.8 | $ 275 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 376.9 | $ 423.7 | $ 1,207.4 | $ 1,109.5 | |
Segment profit | 64.4 | 97.5 | 237.8 | 194.6 | |
Unallocated expenses | 8.4 | 2.1 | 39.8 | (4.7) | |
Re-engineering charges | 1.8 | 3.9 | 9.7 | 29.6 | $ 35.4 |
(Gain) loss on disposal of assets | (1.7) | 32.3 | (8.9) | 18.5 | |
Interest expense | 8.2 | 8.2 | 29.7 | 30.5 | |
Interest income | (0.3) | (0.3) | (0.9) | (1) | |
Income (loss) from continuing operations before income taxes | 48 | 51.3 | 168.4 | 121.7 | |
Total identifiable assets | 1,219.9 | ||||
Total assets | 1,207.7 | 1,207.7 | 1,219.9 | ||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 112.9 | 129.6 | 343.8 | 368.1 | |
Segment profit | 25.7 | 36.3 | 81.9 | 84.8 | |
Total identifiable assets | 272.4 | ||||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 91.3 | 112.5 | 326.8 | 296.3 | |
Segment profit | 14.7 | 27.1 | 66.5 | 37.8 | |
Total identifiable assets | 251.7 | ||||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 103.1 | 116.2 | 343 | 289.4 | |
Segment profit | 10.5 | 18.9 | 42.6 | 42.6 | |
Total identifiable assets | 174.1 | ||||
South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 69.6 | 65.4 | 193.8 | 155.7 | |
Segment profit | $ 13.5 | $ 15.2 | $ 46.8 | $ 29.4 | |
Total identifiable assets | 102.7 | ||||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total identifiable assets | $ 419 |