Certain information and note disclosures normally included in the balance sheet, statements of income, comprehensive income, statements of shareholder’s equity and cash flows prepared in conformity with accounting principles generally accepted in the United States of America for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, these condensed consolidated financial statements and related notes should be read in conjunction with the audited 2018 consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 29, 2018. Operating results of any interim period presented herein are not necessarily indicative of the results that may be expected for a full fiscal year.

UnderAdoption of the new guidance,standard resulted in the contract is defined as the order received from the Company's customer who, in most cases, is onerecording of the Company's independent distributors or a memberadditional net lease assets and lease liabilities of its independent sales force. Revenue is recognized when control of the product passes to the customer, which is upon shipment,$79.3 million and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts.  Generally, payment is either received in advance or in a relatively short period of time following shipment. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations that are not yet met. These obligations generally relate to product awards to be subsequently fulfilled. When that is the case, revenue is deferred until each performance obligation is met. The impact$80.3 million, respectively, as of the end of the third quarter of 2018 from deferred revenue was not material.

The cost of products sold line item includes costs related to the purchase and manufacture of goods sold by the Company. Among these costs are inbound freight charges, duties, purchasing and receiving costs, inspection costs, depreciation expense, internal transfer costs and warehousing costs of raw material, work in process and packing materials. The warehousing and distribution costs of finished goods are included in delivery, sales and administrative expense (“expenses ("DS&A”&A"). Distribution costs are comprised of outbound freight and associated labor costs. Fees billed to customers associated with the distribution of products are classified as revenue. The distribution costs included in DS&A expense were $32.5$30.1 million and $35.0$32.5 million for the third quarters of 20182019 and 2017,2018, respectively, and $103.8$95.7 million and $105.5$103.8 million for the respective year-to-date periods.

The Company frequently makes promotional offers to members of its independent sales force to encourage them to fulfill specific goals or targets for other activities, ancillary to the Company's business, but considered separate and distinct services from sales, which are measured by defined group/team sales levels, party attendance, addition of new sales force members or other business-critical functions. The awards offered are in the form of product awards, special prizes or trips.

The Company accrues for the costs of these awards during the period over which the sales force qualifies for the award and reports these costs primarily as a component of DS&A expense. These accruals require estimates as to the cost of the awards, based upon estimates of achievement and actual cost to be incurred. During the qualification period, actual results are monitored, and changes to the original estimates are made when known. Promotional and other sales force compensation expenses included in DS&A expense totaled $73.0$64.7 million and $86.4$73.0 million for the third quarters of 20182019 and 2017,2018, respectively and $244.1$214.9 million and $274.0$244.1 million for the respective year-to-date periods.

Basic per share information is calculated by dividing net income by the weighted average number of shares outstanding. Diluted per share information is calculated by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding.

Pretax amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of net gainsloss of $2.1 million and a gain of $4.2 million and $1.0 million forin the year-to-date periods ended September 29, 201828, 2019 and September 30, 2017,29, 2018, respectively. Associated with these items were a tax provisionsbenefit of $0.6 million and a provision of $1.1 million and $0.4 million, respectively. See Note 1112 for further discussion of derivatives.

For the year-to-date periods ended September 29, 201828, 2019 and September 30, 2017,29, 2018, pretax amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of prior service benefits of $0.8 million and $0.6 million, and $1.1 million,in 2018, an actuarial lossesloss of $0.3 million and $1.1 million, and pension settlement costscost of $0.6 million and $0.9 million, respectively.million. Associated with these items waswere a tax provision of $0.3 million in 2019 and $0.1 million in 2018 and benefit of $0.2 million in 2017.2018. See Note 1314 to the Consolidated Financial Statements for further discussion of pension and other post-retirement benefit costs.

The Company recorded $3.0$7.5 million and $9.0$3.0 million in re-engineering charges during the third quarters of 20182019 and 2017,2018, respectively, and $12.7$15.9 million and $43.9$12.7 million for the respective year-to-date periods. These re-engineering costs were mainly related to the July 2017 revitalization program ("2017 program") and the transformation program announced in January 2019 ("2019 program").

In relation to the 2017 program, the Company incurred $1.1 million and $3.0 million of charges in the third quarters of 2019 and 2018, respectively, and 2017,$3.3 million and $12.7 million of charges for the re-engineering2019 and impairment charges incurred were2018 year-to-date periods, respectively, primarily related to severance costs and restructuring actions takenincurred for headcount reductions in several of the Company’s operations in connection with changes in its management and organizational structures. The Company incurred $4.6 million and $10.0 million in the Company's plans, through 2019, to rationalize its supply chainthird quarter and to adjust the cost base of several marketing units. The restructuring charges also relate to the Company's decision to wind-down the Beauticontrol reporting unit in 2017. In the year-to-date periods, of 2018 and 2017, the Company recorded $1.0 million and $3.2 million, respectively, in cost of sales for inventory obsolescence in connection with its re-engineering program.

The re-engineering charges related to the 2019 program by segment during the third quarter and year-to-date periodperiods ended September 29, 201828, 2019 were as follows:

The Company's goodwill and intangible assets relate primarily to the December 2005 acquisition of the direct-to-consumer businesses of Sara Lee Corporation. In the third quarters of 20182019 and 2017,2018, the Company completed the annual assessments for all of its reporting units and indefinite-lived intangible assets, concluding there were no impairments.

The Company manufactures and distributes a broad portfolio of products, primarily through independent direct sales consultants. Certain operating segments have been aggregated based upon geography, consistency of economic substance, products, production process, class of customers and distribution method.

The Company's reportable segments primarily sell design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware® brand. Europe includes Avroy Shlain® in South Africa and Nutrimetics® in France, which sell beauty and personal care products. Some units in Asia Pacific also sell beauty and personal care products under the NaturCare®, Nutrimetics® and Fuller® brands. North America also includes the Fuller Mexico beauty and personal care products business, and sells products under the Fuller Cosmetics® brand in that unit and in Central America. South America also sells beauty products under the Fuller®, Nutrimetics® and Nuvo® brands.

Worldwide sales of beauty and personal care products totaled $66.6$60.5 million and $86.8$66.6 million in the third quarters of 20182019 and 2017,2018, respectively, and $214.9$190.0 million and $253.1$214.9 million in the respective year-to-date periods.

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 its multicurrency Credit Agreement, amended by Amendment No. 1 dated August 28, 2019 (so as amended, the "Credit Agreement"), with JPMorgan Chase Bank, N.A. as administrative agent (the “Administrative Agent”), swingline lender, joint lead arranger and joint bookrunner, and Credit Agricole Corporate and Investment Bank, HSBC Securities (USA) Inc., Mizuho Bank, Ltd. and Wells Fargo Securities, LLC, as syndication agents, joint lead arrangers and joint bookrunners. The Credit Agreement replaces the credit agreement dated September 11, 2013 and as amended (the “Old Credit Agreement”) and, other than an increased aggregate amount that may be borrowed, an improvement in the consolidated leverage ratio covenant and a slightly more favorable commitment fee rate, has terms and conditions similar to that of the Old Credit Agreement. The Credit Agreement makes available to the Company and the Subsidiary Borrowers a committed five-year credit facility in an aggregate amount of $650 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 million of the Facility Amount, and (iii) a swingline facility, available up to $100 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 million. With the agreement of its lenders, the Company is permitted to increase, on up to 3 occasions, the Facility Amount by a total of up to $200 million (for a maximum aggregate Facility Amount of $850 million), subject to certain conditions. As of September 29, 2018,28, 2019, the Company had total borrowings of $323.7 million outstanding under the Credit Agreement, with $173.7 million of that amount denominated in euros.

Loans made under the Credit Agreement will be composed of (i) “Eurocurrency Borrowings”, bearing interest determined in reference to the London interbank offered rate ("LIBOR") 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 rate of interest publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate, (y) the NYFRB rate plus 0.5 percent, and (z) adjusted LIBOR on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1 percent, and (B) a margin. The applicable margin in each case will be determined by reference to a pricing schedule and will be based upon the better for the Company of (a) the Consolidated Leverage Ratio (computed as consolidated funded indebtedness of the Company and its subsidiaries to the consolidated EBITDA (as defined in the Credit Agreement) of the Company and its subsidiaries for the four fiscal quarters then most recently ended) for the fiscal quarter referred to in the quarterly or annual financial statements most recently delivered, or (b) the Company’s then existing long-term debt securities rating by Moody’s Investor Service, Inc. or Standard and Poor’s Financial Services, Inc. Under the Credit Agreement, the applicable margin for ABR Borrowings ranges from 0.375 percent to 0.875 percent, the applicable margin for Eurocurrency Borrowings ranges from 1.375 percent to 1.875 percent, and the applicable margin for the commitment fee ranges from 0.150 percent to 0.275 percent. Loans made under the swingline facility will bear interest, if denominated in U.S. Dollars, at the same rate as an ABR Borrowing and, if denominated in another currency, at the same rate as a Eurocurrency Borrowing. As of September 28, 2019, the Credit Agreement dictated a base rate spread of 150 basis points, which gave the Company a weighted average interest rate of 2.5 percent on outstanding LIBOR-based borrowings of 2.0 percent under its multicurrency Amended and Restatedthe Credit Agreement (“Credit Agreement”) that has a final maturity date of June 9, 2020.March 29, 2024.

At September 29, 2018,28, 2019, the Company had $350.6$406.1 million of unused lines of credit, including $268.0$324.9 million under the committed, secured Credit Agreement, and $82.6$81.2 million available under various uncommitted lines around the world.

The Company is exposed to fluctuations in foreign currency exchange rates on the earnings, cash flows and financial position of its international operations. Although this currency risk is partially mitigated by the natural hedge arising from the Company's local manufacturing in many markets, a strengthening U.S. dollar generally has a negative impact on the Company. In response, the Company uses financial instruments to hedge certain of its exposures and to manage the foreign exchange impact to its financial statements. At its inception, a derivative financial instrument is designated as a fair value, cash flow or net equity hedge.

Fair value hedges are entered into with financial instruments such as forward contracts, with the objective of limiting exposure to certain foreign exchange risks primarily associated with accounts payable and non-permanent intercompany transactions. For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings. In assessing hedge effectiveness, as of the beginning of 2019, the Company excludesmade the accounting policy election in accordance with ASU 2017-12 to exclude forward points which are consideredand record their impact in the same income statement line item that is used to bepresent the earnings effect of the hedged item for 2019, Other income, net. Prior to 2019, the forward points had been included as a component of interest expense. The forward points on fair value hedges resulted in pretax gainsincome of $4.3$5.1 million and $5.9$4.3 million in the third quarters of 20182019 and 2017,2018, respectively, and $15.1$13.2 million and $16.1$15.1 million for the respective year-to-date periods.

The Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as cash flow hedges. The majority of cash flow hedge contracts that the Company enters into relate to inventory purchases. At initiation, the Company's cash flow hedge contracts are generally for periods ranging from one month to fifteen months. The effective portion of the gain or loss on the open hedging instrument is recorded in other comprehensive income and is reclassified into earnings when settled through the same line item as the transactionstransaction being hedged are recorded.hedged. As such, the balance at the end of the current reporting period in other comprehensive income, related to cash flow hedges, will generally be reclassified into earnings within the next twelve months. The associated asset or liability on the open hedges is recorded in other current assets or accrued liabilities, as applicable. In assessing hedge effectiveness, the Company excludesmade an accounting policy change as of December 30, 2018 to include forward points which are includedin the assessment of effectiveness for cash flow hedges causing the impact from forward points to be recorded as a componentpart of other comprehensive income compared to interest expense.expense as it previously had been recorded. Based on the interest expense incurred for open cash flow hedges as of December 30, 2018, the Company recorded an adjustment of $1.2 million, net of taxes, to accumulated comprehensive income and retained earnings to reflect this accounting policy change. There was an immaterial impact from forward points recorded in other comprehensive income for activity related to the third quarter and year-to-date periods of 2019. The Company recognized $1.0 million and $3.1 million of 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 in the third quarter and year-to-date periods of 2019.

While the forward contracts used for net equity and fair value hedges of non-permanent intercompany balances mitigate its exposure to foreign exchange gains or losses, they result in an impact to operating cash flows as they are settled, whereas the hedged items do not generate offsetting cash flows. The net cash flow impact of these currency hedgesfrom hedging activity for the year-to-date periods ended September 28, 2019 and September 29, 2018 was an outflow of $1.5 million and September 30, 2017 were inflowsan inflow of $3.5 million and $5.8 million, respectively.

The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. As of September 29, 201828, 2019 and December 30, 2017,29, 2018, the notional amounts of outstanding forward contracts to purchase currencies were $121.3$132.6 million and $111.1$186.8 million, respectively, and the notional amounts of outstanding forward contracts to sell currencies were $101.1$134.4 million and $112.1$184.6 million, respectively. As of September 29, 2018,28, 2019, the notional values of the largest positions outstanding were to purchase $57.1$112.3 million of U.S. dollars and $29.1$15.0 million of euros, and to sell $29.5$53.4 million of Swiss francs and $33.2 million of Mexican pesos.

The following table summarizes the Company's derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company's financial position as of September 29, 201828, 2019 and December 30, 2017.29, 2018. Fair values were determined based on third party quotations (Level 2 fair value measurement):

The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the third quarters of 2019 and 2018 and 2017:for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions:

The following table summarizes the impact of the Company's hedging activities on comprehensive income for the third quarters of 20182019 and 2017:2018:

The following table summarizes the impact of the Company's fair value hedging positions on the results of operations for the year-to-date periods ended September 28, 2019 and September 29, 2018 and September 30, 2017:for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions: