PART I—FINANCIAL INFORMATION

Item 1. Financial ~~Statements.~~Statements

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		13 weeks ended						26 weeks ended							13 weeks ended
(In millions, except per share amounts)	(In millions, except per share amounts)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019		(In millions, except per share amounts)	March 27, 2021		March 28, 2020

Net sales	Net sales	$	397.4	$	475.3	$	773.3	$	962.6	Net sales	$	460.3	$	375.9
Cost of products sold	Cost of products sold	133.5		154.6		263.2		315.8		Cost of products sold	137.0		129.7
Gross margin	Gross margin	263.9		320.7		510.1		646.8		Gross margin	323.3		246.2

Delivery, sales and administrative expense		208.1		247.7		451.0		510.4
Selling, general and administrative expense										Selling, general and administrative expense	249.4		242.9
Re-engineering charges	Re-engineering charges	23.2		4.1		27.1		8.4		Re-engineering charges	3.1		3.9
(Gain) loss on disposal of assets										(Gain) loss on disposal of assets	(8.7)		0.1

Gain (loss) on disposal of assets		13.9		(0.1)		13.8		(1.0)
Operating income (loss)	Operating income (loss)	46.5		68.8		45.8		127.0		Operating income (loss)	79.5		(0.7)

Loss on debt extinguishment										Loss on debt extinguishment	2.1		0
Interest expense										Interest expense	11.8		10.2
Interest income	Interest income	0.2		0.4		0.7		1.0		Interest income	(0.3)		(0.5)
Interest expense		12.1		10.8		22.3		21.0
Other expense (income), net		(48.0)		(3.4)		(50.1)		(6.7)
Other (income) expense, net										Other (income) expense, net	(0.2)		(2.1)
Income (loss) before income taxes	Income (loss) before income taxes	82.6		61.8		74.3		113.7		Income (loss) before income taxes	66.1		(8.3)

Provision (benefit) for income taxes	Provision (benefit) for income taxes	18.8		22.4		18.3		37.4		Provision (benefit) for income taxes	20.8		(0.5)
Net income (loss)	Net income (loss)	$	63.8	$	39.4	$	56.0	$	76.3	Net income (loss)	$	45.3	$	(7.8)

Earnings per share:
Basic		$	1.30	$	0.81	$	1.14	$	1.57
Diluted		$	1.30	$	0.81	$	1.14	$	1.56
Basic earnings (loss) per share										Basic earnings (loss) per share	$	0.92	$	(0.16)
Diluted earnings (loss) per share										Diluted earnings (loss) per share	$	0.85	$	(0.16)

Weighted-average shares outstanding:
Basic		49.0		48.8		49.0		48.7
Diluted		49.2		48.8		49.2		48.8
Basic weighted-average shares										Basic weighted-average shares	49.4		48.9
Diluted weighted-average shares										Diluted weighted-average shares	53.4		48.9

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		13 weeks ended						26 weeks ended							13 weeks ended
(In millions)	(In millions)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019		(In millions)	March 27, 2021		March 28, 2020
Net income (loss)	Net income (loss)	$	63.8	$	39.4	$	56.0	$	76.3	Net income (loss)	$	45.3	$	(7.8)

Other comprehensive income (loss):	Other comprehensive income (loss):									Other comprehensive income (loss):
Foreign currency translation adjustments	Foreign currency translation adjustments	22.8		(6.8)		(70.8)		13.9		Foreign currency translation adjustments	3.9		(93.6)
Deferred gain (loss) on cash flow hedges, net of tax benefit (provision) of $0.0, ($0.1), $0.0 and $0.5, respectively		(5.6)		(0.4)		4.5		(2.2)
Pension and other post-retirement benefit (costs), net of tax benefit (provision) of $0.3, $0.2, ($0.5) and $0.1, respectively		(0.9)		(0.5)		1.1		(0.4)
Deferred gain (loss) on cash flow hedges, net of tax										Deferred gain (loss) on cash flow hedges, net of tax	0		10.1
Pension and other post-retirement benefit (costs), net of tax										Pension and other post-retirement benefit (costs), net of tax	1.4		2.0
Other comprehensive income (loss)	Other comprehensive income (loss)	16.3		(7.7)		(65.2)		11.3		Other comprehensive income (loss)	5.3		(81.5)

Total comprehensive income (loss)	Total comprehensive income (loss)	$	80.1	$	31.7	$	(9.2)	$	87.6	Total comprehensive income (loss)	$	50.6	$	(89.3)

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)


							As of
(In millions, except share amounts)	(In millions, except share amounts)	June 27, 2020		December 28, 2019		(In millions, except share amounts)	March 27, 2021		December 26, 2020
Assets	Assets					Assets
Cash and cash equivalents	Cash and cash equivalents	$	120.0	$	123.2	Cash and cash equivalents	$	154.8	$	139.1
Accounts receivable, less allowances of $65.8 and $63.6, respectively		117.2		110.7
Inventories		216.1		245.2

Non-trade amounts receivable, net		39.0		39.1
Accounts receivable, net						Accounts receivable, net	110.1		114.7
Inventory, net						Inventory, net	262.1		236.3
Non-trade accounts receivable, net						Non-trade accounts receivable, net	37.0		25.9
Prepaid expenses and other current assets	Prepaid expenses and other current assets	21.3		20.3		Prepaid expenses and other current assets	28.4		30.1
Total current assets	Total current assets	513.6		538.5		Total current assets	592.4		546.1
Deferred income tax benefits, net		187.8		186.1

Deferred tax assets, net						Deferred tax assets, net	172.4		178.5
Property, plant and equipment, net	Property, plant and equipment, net	242.1		267.5		Property, plant and equipment, net	194.7		202.5
Operating lease assets	Operating lease assets	79.2		84.1		Operating lease assets	93.4		97.9
Long-term receivables, less allowances of $13.8 and $13.9, respectively		13.9		15.0
Trademarks and tradenames, net		22.6		24.6

Long-term receivables, net						Long-term receivables, net	9.3		12.6
Trade names, net						Trade names, net	18.8		23.6
Goodwill	Goodwill	56.0		59.5		Goodwill	54.1		60.4
Other assets, net	Other assets, net	79.1		87.1		Other assets, net	91.8		98.3
Total assets	Total assets	$	1,194.3	$	1,262.4	Total assets	$	1,226.9	$	1,219.9

Liabilities And Shareholders' Equity	Liabilities And Shareholders' Equity					Liabilities And Shareholders' Equity
Accounts payable	Accounts payable	$	92.6	$	125.4	Accounts payable	$	110.0	$	135.1
Short-term borrowings and current portion of long-term debt and finance lease obligations		801.5		273.2
Current debt and finance lease obligations						Current debt and finance lease obligations	452.5		424.7
Accrued liabilities	Accrued liabilities	350.3		290.3		Accrued liabilities	347.5		349.9
Total current liabilities	Total current liabilities	1,244.4		688.9		Total current liabilities	910.0		909.7

Long-term debt and finance lease obligations	Long-term debt and finance lease obligations	2.1		602.2		Long-term debt and finance lease obligations	227.5		258.6
Operating lease liabilities	Operating lease liabilities	52.3		56.0		Operating lease liabilities	67.5		70.1
Other liabilities	Other liabilities	177.8		192.3		Other liabilities	175.2		186.2
Total liabilities	Total liabilities	1,476.6		1,539.4		Total liabilities	1,380.2		1,424.6

Commitments and contingencies (Note 19)						Commitments and contingencies (Note 19)	0		0
Shareholders' equity (deficit):	Shareholders' equity (deficit):					Shareholders' equity (deficit):
Preferred stock, $0.01 par value, 200,000,000 shares authorized; none issued	Preferred stock, $0.01 par value, 200,000,000 shares authorized; none issued	—		—		Preferred stock, $0.01 par value, 200,000,000 shares authorized; none issued	0		0
Common stock, $0.01 par value, 600,000,000 shares authorized; 63,607,090 shares issued	Common stock, $0.01 par value, 600,000,000 shares authorized; 63,607,090 shares issued	0.6		0.6		Common stock, $0.01 par value, 600,000,000 shares authorized; 63,607,090 shares issued	0.6		0.6
Paid-in capital	Paid-in capital	215.2		215.0		Paid-in capital	215.3		215.5
Retained earnings	Retained earnings	1,115.0		1,067.3		Retained earnings	1,188.8		1,161.6
Treasury stock, 14,489,503 and 14,678,742 shares, respectively, at cost		(909.6)		(921.6)
Treasury stock, 14,030,724 and 14,312,853 shares, respectively, at cost						Treasury stock, 14,030,724 and 14,312,853 shares, respectively, at cost	(877.4)		(896.5)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(703.5)		(638.3)		Accumulated other comprehensive loss	(680.6)		(685.9)
Total shareholders' equity (deficit)	Total shareholders' equity (deficit)	(282.3)		(277.0)		Total shareholders' equity (deficit)	(153.3)		(204.7)

Total liabilities and shareholders' equity	Total liabilities and shareholders' equity	$	1,194.3	$	1,262.4	Total liabilities and shareholders' equity	$	1,226.9	$	1,219.9

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)


												Accumulated Other Comprehensive Loss				Total Shareholders' Equity (Deficit)
		Common Stock				Treasury Stock								Paid-In Capital							Retained Earnings							Common Stock								Treasury Stock								Paid-In Capital				Retained Earnings	Accumulated Other Comprehensive Loss	Total Shareholders' Equity (Deficit)
(In millions, except per share amounts)	(In millions, except per share amounts)	Shares	Dollars		Shares	Dollars																	Total Shareholders' Equity (Deficit)						(In millions, except per share amounts)		Shares				Dollars				Shares												Total Shareholders' Equity (Deficit)
December 28, 2019		63.6	$	0.6	14.7	$	(921.6)	$	215.0	$	1,067.3			$	(638.3)			$	(277.0)
December 26, 2020																		December 26, 2020		63.6		$		0.6			14.3	$	(896.5)			$	215.5			$	1,161.6					$	(685.9)			$	(204.7)
Net income (loss)	Net income (loss)	—	—		—	—		—		(7.8)		—				(7.8)		Net income (loss)		—		—				—				—				—				45.3			—				45.3

Other comprehensive loss		—	—		—	—		—		—		(81.5)				(81.5)
Other comprehensive income (loss)																		Other comprehensive income (loss)		—		—			—			—				—				—				5.3				5.3

Stock and options issued for incentive plans	Stock and options issued for incentive plans	—	—		(0.1)	5.2		1.9		(4.8)		—				2.3		Stock and options issued for incentive plans		—		—			(0.3)			19.1				(0.2)				(18.1)				—				0.8
March 28, 2020		63.6	0.6		14.6	(916.4)		216.9		1,054.7		(719.8)				(364.0)
Net income (loss)		—	—		—	—		—		63.8		—				63.8

Other comprehensive income		—	—		—	—		—		—		16.3				16.3

Stock and options issued for incentive plans		—	—		(0.1)	6.8		(1.7)		(3.5)		—				1.6
June 27, 2020		63.6	$	0.6	14.5	$	(909.6)	$	215.2	$	1,115.0	$	(703.5)			$	(282.3)
March 27, 2021																		March 27, 2021		63.6		0.6			14.0			(877.4)				215.3				1,188.8				(680.6)				(153.3)

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity (Deficit)
Common Stock Treasury Stock Paid-In Capital Retained Earnings
(In millions, except per share amounts) Shares Dollars Shares Dollars
December 29, 2018 63.6 $ 0.6 15.0 $ (939.8) $ 219.3 $ 1,086.8 $ (602.1) $ (235.2)
Net income (loss) — — — — — 36.9 — 36.9
Cumulative effect of change in accounting principles — — — — — 12.1 (5.0) 7.1
Other comprehensive income — — — — — 19.0 19.0
Cash dividends declared ($0.27 per share) — — — — — (12.9) — (12.9)
Stock and options issued for incentive plans — — (0.1) 5.0 (2.8) (1.1) — 1.1
March 30, 2019 63.6 0.6 14.9 (934.8) 216.5 1,121.8 (588.1) (184.0)
Net income (loss) — — — — — 39.4 — 39.4
Other comprehensive loss — — — — — — (7.7) (7.7)
Cash dividends declared ($0.27 per share) — — — — — (13.2) — (13.2)
Stock and options issued for incentive plans — — (0.1) 3.7 (0.2) (1.1) — 2.4
June 29, 2019 63.6 $ 0.6 14.8 $ (931.1) $ 216.3 $ 1,146.9 $ (595.8) $ (163.1)


											Accumulated Other Comprehensive (Loss) Income		Total Shareholders' Equity (Deficit)
	Common Stock			Treasury Stock			Paid-In Capital		Retained Earnings
(In millions, except per share amounts)	Shares	Dollars		Shares	Dollars
December 28, 2019	63.6	$	0.6	14.7	$	(921.6)	$	215.0	$	1,067.3	$	(638.3)	$	(277.0)
Net income (loss)	—	—		—	—		—		(7.8)		—		(7.8)

Other comprehensive income (loss)	—	—		—	—		—				(81.5)		(81.5)


Stock and options issued for incentive plans	—	—		(0.1)	5.2		1.9		(4.8)		—		2.3
March 28, 2020	63.6	0.6		14.6	(916.4)		216.9		1,054.7		(719.8)		(364.0)

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		26 weeks ended							13 weeks ended
(In millions)	(In millions)	June 27, 2020		June 29, 2019		(In millions)	March 27, 2021		March 28, 2020
Operating Activities	Operating Activities					Operating Activities
Net income (loss)	Net income (loss)	$	56.0	$	76.3	Net income (loss)	$	45.3	$	(7.8)
Adjustments to reconcile net income to net cash used in operating activities:	Adjustments to reconcile net income to net cash used in operating activities:					Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	Depreciation and amortization	22.6		27.8		Depreciation and amortization	10.7		11.7
Unrealized foreign exchange loss		0.3		—
Unrealized foreign exchange (gain) loss						Unrealized foreign exchange (gain) loss	0		0.1
Stock-based compensation	Stock-based compensation	3.9		4.5		Stock-based compensation	1.8		2.2
Amortization of deferred debt issuance costs	Amortization of deferred debt issuance costs	1.0		0.3		Amortization of deferred debt issuance costs	1.3		0.4
(Gain) loss on disposal of assets	(Gain) loss on disposal of assets	(13.8)		1.0		(Gain) loss on disposal of assets	(8.7)		0
Provision for bad debts		11.2		10.1
(Gain) on debt extinguishment		(40.0)		—
Provision for credit losses						Provision for credit losses	1.0		7.0
Loss on debt extinguishment						Loss on debt extinguishment	2.6		0
Write-down of inventories	Write-down of inventories	6.7		4.6		Write-down of inventories	2.6		2.9

Net change in deferred income taxes		(16.7)		11.0

Net change in deferred taxes						Net change in deferred taxes	0.9		(14.3)
Net cash impact from hedging activity						Net cash impact from hedging activity	(3.1)		(1.9)
Other						Other	(0.7)		(0.3)
Changes in assets and liabilities:	Changes in assets and liabilities:					Changes in assets and liabilities:
Accounts receivable	Accounts receivable	(25.3)		(25.2)		Accounts receivable	(0.7)		(6.5)
Inventories	Inventories	6.1		(9.9)		Inventories	(38.7)		(10.5)
Non-trade amounts receivable	Non-trade amounts receivable	2.2		(5.9)		Non-trade amounts receivable	(11.1)		(3.2)
Prepaid expenses	Prepaid expenses	(2.7)		(2.4)		Prepaid expenses	0.6		(1.2)
Other assets	Other assets	(1.8)		(1.4)		Other assets	0.2		(1.2)
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	32.5		(38.9)		Accounts payable and accrued liabilities	(15.5)		(19.2)
Income taxes payable	Income taxes payable	2.0		(40.8)		Income taxes payable	0.6		(0.3)
Other liabilities	Other liabilities	(2.9)		(2.4)		Other liabilities	(2.7)		(4.9)

Net cash impact from hedging activity		3.9		(7.5)
Other		0.1		0.1
Net cash provided by (used in) operating activities		45.3		1.3
Net cash used in operating activities						Net cash used in operating activities	(13.6)		(47.0)
Investing Activities	Investing Activities					Investing Activities
Capital expenditures	Capital expenditures	(14.1)		(27.2)		Capital expenditures	(7.4)		(8.2)
Proceeds from disposal of property, plant and equipment		15.9		4.7
Proceeds from disposal of assets						Proceeds from disposal of assets	40.4		0.5
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	1.8		(22.5)		Net cash provided by (used in) investing activities	33.0		(7.7)
Financing Activities	Financing Activities					Financing Activities
Common stock cash dividends paid		—		(47.3)
Term loan repayment						Term loan repayment	(34.0)		0

Net increase (decrease) in short-term debt						Net increase (decrease) in short-term debt	32.4		121.0
Debt issuance costs payment						Debt issuance costs payment	(0.3)		(1.7)
Finance lease repayments						Finance lease repayments	(0.3)		(0.3)
Common stock repurchase						Common stock repurchase	(1.4)		0
Proceeds from exercise of stock options						Proceeds from exercise of stock options	0.5		0

Common stock repurchase		—		(0.8)
Senior notes repayment		(56.4)		—
Finance lease repayments		(0.3)		(1.0)
Net increase (decrease) in short-term debt		17.8		85.2
Debt issuance costs		(2.0)		(2.2)

Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	(40.9)		33.9		Net cash provided by (used in) financing activities	(3.1)		119.0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	(8.6)		2.0		Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4.1)		(12.4)
Net change in cash, cash equivalents and restricted cash	Net change in cash, cash equivalents and restricted cash	(2.4)		14.7		Net change in cash, cash equivalents and restricted cash	12.2		51.9
Cash, cash equivalents and restricted cash at beginning of year	Cash, cash equivalents and restricted cash at beginning of year	126.1		151.9		Cash, cash equivalents and restricted cash at beginning of year	150.5		126.1
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	123.7	$	166.6	Cash, cash equivalents and restricted cash at end of period	$	162.7	$	178.0

See accompanying notes to ~~consolidated financial statements.~~Consolidated Financial Statements.

TUPPERWARE BRANDS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Summary of Significant Accounting Policies

Basis of Presentation

The ~~consolidated financial statements~~Consolidated Financial Statements include the accounts of Tupperware Brands Corporation and its subsidiaries, collectively ~~“Tupperware”~~the “Company” or ~~the “Company”~~“Tupperware”, with all intercompany transactions and balances having been eliminated. ~~These consolidated financial statements are~~The Company prepared the unaudited Consolidated Financial Statements in accordance with United States generally accepted accounting principles (“GAAP”) and ~~have been prepared following~~ the rules and regulations of the United States Securities and Exchange Commission and, in the Company's opinion, reflect all adjustments, including normal recurring items that are ~~necessary for a fair statement of~~necessary. Certain prior period amounts in the ~~results for~~consolidated financial statements and accompanying notes have been reclassified to conform to the ~~interim periods.~~current period’s presentation.

Certain information and note disclosures normally included in the ~~consolidated~~financial statements ~~of income, consolidated statements of comprehensive income, consolidated balance sheets, consolidated statements of shareholders' equity and consolidated statements of cash flows~~ prepared in conformity with ~~accounting principles generally accepted in the United States of America~~GAAP for complete financial statements have been condensed or omitted as permitted by such rules and regulations. As such, these ~~consolidated financial statements~~Consolidated Financial Statements and related notes should be read in conjunction with the audited ~~2019 consolidated financial statements~~2020 Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December ~~28, 2019.~~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.

Use of Estimates

The preparation of ~~financial statements~~Consolidated Financial Statements in conformity with ~~accounting principles generally accepted in the United States of America~~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 ~~financial statements,~~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 ~~second~~first quarter ended ~~June~~March 27, ~~2020,~~2021, the impact ~~of the decline in~~on business activity brought about by the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of the Company's estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change materially in future periods.

~~Liquidity~~

COVID-19

Since early 2020, the Company has followed guidance from the Centers for Disease Control and ~~COVID-19~~

~~The global spread of the novel coronavirus (COVID-19), which has been declared by~~Prevention (CDC) and the World Health Organization ~~to be~~(WHO) on actions required by individuals and businesses following the declaration of COVID-19 as a ~~“pandemic,”~~pandemic. Since 2020 the pandemic has ~~spread to many countries and is impacting~~impacted worldwide economic ~~activity. Many~~activity and many governments have implemented policies intended to stop or slow the further spread of the ~~disease,~~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,~~businesses. Products are primarily sold directly to independent distributors, directors, managers and ~~these measures may remain~~dealers (the “Sales Force”) throughout the world. The Company responded by taking actions to keep employees protected, support the Company’s global Sales Force and communities, and maintain business continuity. Actions taken to date include:

•Monitoring of local and state governments and public health institution recommendations in ~~place~~the markets where the Company operates.

•Revision in real-time of corporate policies and procedures to keep the Company's employees safe around the world.

•Enacting travel bans consistent with emerging needs and regulation.

•Provisioning all required personal protective equipment in manufacturing locations that continued to operate during the pandemic.

•Conducting regular temperature checks for employees and providing additional medical leave and medical assistance as needed.

•Enacting special cleaning and immediate response procedures for office and plant employees.

•Accelerating access to, and training and implementation of, digital platforms for Sales Force to enable customers to continue to acquire products while enhancing the customer's digital experience.

•Activating a ~~significant period~~global business continuity committee with representatives from key business functions from all over the world, with a task to guide the Company's global organization through the pandemic with a dual focus on business continuity and health and safety.

•Enabling work from home arrangements and support for associates with virtual tools and equipment as required.

Table of ~~time.~~ contents

A top priority for the Company as it ~~navigates through~~continues to navigate the impacts of the global COVID-19 pandemic is the safety of its employees and their families, ~~sales force~~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~~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, ~~from home wherever possible,~~ incorporate virtual meetings and restrict all non-essential employee ~~travel.~~travel until further notice. While global vaccination efforts are underway, the continued impact of COVID-19, including any increases in infection rates and renewed governmental action to slow the spread of COVID-19, like those that have occurred throughout Western Europe and Latin America in the first quarter of 2021, cannot be estimated.

~~Pursuant~~

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 ~~ASC 205, Presentation of Financial Statements,~~ the ~~Company~~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 ~~does evaluate at each annual~~losses affecting the benefit obligation and ~~interim period whether there are conditions or events, considered~~an explanation of any other significant changes in the ~~aggregate,~~benefit obligation or plan assets. The amendment also removed certain required disclosures that ~~raise substantial doubt about its ability to continue as a going concern within one year~~no longer are considered cost beneficial. This guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance at the ~~date that the consolidated financial statements are issued. As of June 27, 2020 the Company has $501.3 million of Senior Notes that will mature on June 1, 2021, which is within one year~~beginning of the ~~date that~~first quarter of 2021 and the ~~consolidated financial statements are issued for the second quarter ended June 27, 2020. Based~~adoption did not have any material impact on the definitions in the relevant accounting standards, management has determined that this condition raises substantial doubt about the Company’s ability to continue as a going concern. This evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. Management may evaluate the mitigating effect of its plans to determine if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.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 ~~expects~~continues to ~~continue to address its outstanding current indebtedness through open-market purchases, future tender offers, exchange offers of debt for debt, cash or equity, or otherwise (~~“~~debt refinancing~~”). The Company has successfully retired $98.7 million of those Senior Notes at a discount to par during the second quarter and an additional $13.4 million subsequent to the end of second quarter and through July 29, 2020. In addition to the debt refinancing, the Company believes that its improved profitability and revenue growth through the Turnaround Plan, together with the anticipated sale of the Company's Orlando real estate

and other non-core assets, and its forecasted availability under its Credit Agreement, will enable the Company to meet all its future debt obligations. However, as the debt refinancing and sale of non-core assets is conditional upon the execution of agreements with new or existing investors or the execution of sales agreements with third parties, which are considered outside of the Company’s control, the debt refinancing and sales of assets are not considered probable of occurring until such time as they are completed. The Condensed Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. During the second quarter ended June 27, 2020 the Company generated $101.8 million of cash flows from operating activities, net of investing activities, through reductions in discretionary spending, revisiting investment strategies, improvements in working capital including inventory reductions, and reducing payroll costs, including through organizational redesign, employee furloughs, and permanent reductions in employee headcount. As of June 27, 2020, the Company is in compliance with its financial covenants under its Credit Agreement. The Company currently forecasts that it will be in compliance with its financial covenants for at least one year from the issuance of these interim financial statements, after taking into consideration the measures noted above. Ifevaluate the impact of ~~COVID-19 is more severe than currently forecasted~~the potential adoption of this ~~may impact the Company’s compliance with~~amendment on its ~~financial covenants which could have a material adverse effect on the Company. See Note 10 to the~~ Consolidated Financial ~~Statements for further discussion of the impact of an Event of Default.~~Statements.

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 ~~delivery, sales~~selling, general and administrative ~~expenses ("DS&A").~~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 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Distribution costs $ 33.4 $ 32.8 $ 62.5 $ 65.6


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Distribution costs	$	43.4	$	29.1

Note 3: Promotional Costs

The Company frequently makes promotional offers to members of its independent ~~sales force~~Sales Force to encourage them to fulfill specific goals or targets for other activities. These activities are ancillary to the ~~Company's~~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~~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~~Sales Force qualifies for the award and reports these costs primarily as a component of ~~DS&A~~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						26 weeks ended							13 weeks ended
(In millions)	(In millions)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019		(In millions)	March 27, 2021		March 28, 2020
Promotional costs	Promotional costs	$	54.1	$	71.6	$	112.6	$	150.2	Promotional costs	$	67.4	$	58.5

Note 4: ~~Inventories~~

~~Inventories were:~~

(In millions) June 27,
2020 December 28,
2019
Finished goods $ 166.2 $ 197.1
Work in process 24.7 22.4
Raw materials and supplies 25.2 25.7
Total inventories $ 216.1 $ 245.2

~~Note 5: Earnings per share~~

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

~~The elements of the earnings per share computations were as follows:~~

13 weeks ended 26 weeks ended
(In millions, except per share amounts) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Net income (loss) $ 63.8 $ 39.4 $ 56.0 $ 76.3
Weighted-average shares of common stock outstanding 49.0 48.8 49.0 48.7
Common equivalent shares:
Assumed exercise of dilutive options, restricted shares, restricted stock units and performance share units 0.2 — 0.2 0.1
Weighted-average common and common equivalent shares outstanding 49.2 48.8 49.2 48.8
Basic earnings per share $ 1.30 $ 0.81 $ 1.14 $ 1.57
Diluted earnings per share $ 1.30 $ 0.81 $ 1.14 $ 1.56
Shares excluded from the determination of potential common stock because inclusion would have been anti-dilutive 4.7 3.9 4.4 3.9

~~Note 6: Accumulated Other Comprehensive Loss~~

(In millions, net of tax) Foreign Currency Items Cash Flow Hedges Pension and Other Post-retirement Items Total
Balance at December 28, 2019 $ (600.2) $ (2.4) $ (35.7) $ (638.3)
Other comprehensive income (loss) before reclassifications (70.8) 6.5 (0.5) (64.8)
Amounts reclassified from accumulated other comprehensive income (loss) — (2.0) 1.6 (0.4)
Other comprehensive income (loss) (70.8) 4.5 1.1 (65.2)
Balance at June 27, 2020 $ (671.0) $ 2.1 $ (34.6) $ (703.5)

(In millions, net of tax) Foreign Currency Items Cash Flow Hedges Pension and Other Post-retirement Items Total
Balance at December 29, 2018 $ (579.1) $ 1.7 $ (24.7) $ (602.1)
Cumulative effect of change in accounting principle (3.8) (1.2) — (5.0)
Other comprehensive income (loss) before reclassifications 13.9 (3.0) (0.3) 10.6
Amounts reclassified from accumulated other comprehensive income (loss) — 0.8 (0.1) 0.7
Other comprehensive income (loss) 13.9 (2.2) (0.4) 11.3
Balance at June 29, 2019 $ (569.0) $ (1.7) $ (25.1) $ (595.8)

~~Amounts reclassified from accumulated other comprehensive income (loss) that related to cash flow hedges consisted of:~~

Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Cash Flow Hedges
(In millions) 2020 2019
Cash flow hedges $ (2.5) $ 1.2
Tax effect 0.5 (0.4)
Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges $ (2.0) $ 0.8
Incentive Compensation Plans

~~Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items consisted of:~~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 Exercise Price Per Share		Aggregate Intrinsic Value (in millions)
Outstanding at December 26, 2020	4,074,398	$	43.74

Expired / Forfeited	(183,746)	52.08
Exercised	(13,702)	37.16
Outstanding at March 27, 2021	3,876,950	$	43.37	$	22.4

Exercisable at March 27, 2021	2,803,062	$	57.67	$	0

Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Related To Pension And Other Post-Retirement Items
(In millions) 2020 2019
Prior service costs/(benefit) $ (0.1) $ (0.6)
Settlements (gains) losses 0.4 (0.1)
Actuarial (gains) losses 0.9 —
Tax effect 0.4 0.6
$ 1.6 $ (0.1)

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 outstanding	Weighted average grant date fair value
Outstanding at December 26, 2020	4,954,342	$	3.60
Time-vested shares granted	334,936	25.05

Performance shares granted	284,180	24.98

Vested	(316,510)	5.90
Forfeited	(99,423)	16.02
Outstanding at March 27, 2021	5,157,525	$	5.79

Stock-based compensation expense in the first quarters of 2021 and 2020, respectively, was:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Stock options	$	0.1	$	0.3
Time, performance and market vested share awards	$	1.7	$	1.9

Unrecognized stock-based compensation expense and the weighted average years to recognize the unrecognized stock-based compensation was as follows:


	As of
(In millions)	March 27, 2021
Unrecognized stock-based compensation expense	$	27.6
Weighted average years to recognize the unrecognized stock-based compensation	2.6 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:


	13 weeks ended
(In millions, except share amounts)	March 27, 2021		March 28, 2020
Shares retained to fund withholding taxes	44,999		1,127
Value of shares retained to fund withholding taxes	$	1.4	$	0

Note 7:5: 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") and the July 2017 revitalization program ("2017 program"~~“Turnaround Plan”). The ~~Company continually reviews its~~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 ~~models and operating methods for opportunities~~ to ~~increase efficiencies and/or align costs with~~create a more sustainable business ~~performance.~~model. The Turnaround Plan charges primarily related to severance costs and outside consulting services. ~~The 2017 program~~Other re-engineering charges are primarily related to ~~severance~~facility costs.

~~The re-engineering~~

Re-engineering charges were:

13 weeks ended 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Turnaround plan 22.4 4.2 25.7 5.4
2017 program 0.8 (0.5) 1.4 2.3
Other — 0.4 — 0.7
Total re-engineering charges $ 23.2 $ 4.1 $ 27.1 $ 8.4


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Turnaround plan	$	1.6	$	3.3
Other	1.5		0.6

Total re-engineering charges	$	3.1	$	3.9

Turnaround Plan

Turnaround Plan charges were:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Asia Pacific	$	0.1	$	0.4
Europe	0.8		0
North America	0.4		0
South America	0.3		0.2
Corporate	0		2.7
Total turnaround plan charges	$	1.6	$	3.3

The ~~re-engineering charges related to the Turnaround Plan were:~~

13 weeks ended 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Europe $ 11.4 $ 1.7 $ 11.4 $ 2.9
Asia Pacific 2.1 2.5 2.5 2.5
North America 2.4 — 2.4 —
South America 0.8 — 1.0 —
Corporate 5.7 — 8.4 —
Total turnaround plan charges $ 22.4 $ 4.2 $ 25.7 $ 5.4

~~The balances~~balance included in accrued liabilities related to ~~re-engineering charges for~~ the Turnaround Plan ~~were:~~

(In millions) June 27,
2020 December 28,
2019
Beginning of the year balance $ 12.9 $ —
Provision 25.7 26.4
Adjustments and other charges 1.2 (1.7)
Cash expenditures:
Severance (14.5) (0.9)
Other (1.3) (10.9)
Currency translation adjustment (0.2) —
End of period balance $ 23.8 $ 12.9
was:

~~The re-engineering charges related to the 2017 program were:~~

13 weeks ended 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Europe $ 1.1 $ (0.3) $ 1.4 $ 1.0
Asia Pacific — (0.2) — 0.7
North America (0.3) — — 0.6
Total 2017 program charges $ 0.8 $ (0.5) $ 1.4 $ 2.3

~~The balances included in accrued liabilities related to re-engineering charges for the 2017 program were:~~

(In millions) June 27,
2020 December 28,
2019
Beginning of the year balance $ 3.1 $ 23.3
Provision 1.4 4.5
Adjustments and other charges (0.7) (0.3)
Cash expenditures:
Severance (1.7) (20.3)
Other (0.9) (3.6)
Currency translation adjustment — (0.5)
End of period balance $ 1.2 $ 3.1

~~Note 8: Leases~~

~~The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term.~~

Some leases include one or more options to renew, with renewal terms that can extend the lease term from one 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 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Operating lease cost ^{(a) (c)}
$ 10.6 $ 12.6 $ 22.4 $ 25.6
Amortization of right-of-use assets^(a)
0.2 0.3 0.4 0.5
Interest on lease liabilities^(b)
0.1 — 0.1 0.1
Total finance lease cost $ 0.3 $ 0.3 $ 0.5 $ 0.6

~~____________________~~

^(a) ~~Included in DS&A and cost of products sold.~~

^(b) ~~Included in interest expense.~~

^(c) ~~Includes immaterial amounts related to short-term rent expense and variable rent expense.~~


	As of
(In millions)	March 27, 2021		December 26, 2020
Beginning balance	$	18.7	$	12.9
Provision	1.6		33.0
Adjustments and other charges	(0.2)		2.7
Currency translation adjustment	(0.1)		0
Cash expenditures:
Severance	(2.1)		(28.5)
Other	(1.7)		(1.4)

Ending balance	$	16.2	$	18.7

~~Supplemental cash flow information related to leases is as follows:~~

26 weeks ended
(In millions) June 27,
2020 June 29,
2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases $ (21.0) $ (24.9)
Operating cash flows from finance leases $ — $ (0.1)
Financing cash flows from finance leases $ (0.3) $ (1.0)
Leased assets obtained in exchange for new operating lease liabilities $ 2.7 $ 5.6
Other

~~Supplemental~~Other charges were:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020

Europe	$	0.3	$	0.3
North America	1.2		0.3


Total other charges	$	1.5	$	0.6

The balance ~~sheet information~~included in accrued liabilities related to ~~leases is~~other charges was:


	As of
(In millions)	March 27, 2021		December 26, 2020
Beginning balance	$	0	$	3.1
Provision	1.5		3.1
Adjustments and other charges	0		(1.9)

Cash expenditures:
Severance	0		(1.8)
Other	(1.2)		(2.5)
Ending balance	$	0.3	$	0

Note 6: Income Taxes

The effective tax rate was:


	13 weeks ended
	March 27, 2021		March 28, 2020
Effective tax rate	31.5	%	6.0	%

The change in the effective tax rate in the first quarters of 2021 and 2020, respectively, was primarily due to:

•an increase in profitability for the first quarter ended March 27, 2021 as ~~follows:~~compared to the same period last year, due to the Company’s turnaround efforts

(In millions, except lease term and discount rate) June 27,
2020 December 28,
2019
Operating Leases
Operating lease assets $ 79.2 $ 84.1
Accrued liabilities $ 28.4 $ 29.2
Operating lease liabilities 52.3 56.0
Total Operating lease liabilities $ 80.7 $ 85.2
Finance Leases
Property, plant and equipment, at cost $ 18.3 $ 17.9
Accumulated amortization (11.0) (10.3)
Property, plant and equipment, net $ 7.3 $ 7.6
Current portion of finance lease obligations $ 1.3 $ 1.3
Long-term finance lease obligations 2.1 2.3
Total Finance lease liabilities $ 3.4 $ 3.6
Weighted Average Remaining Lease Term
Operating Leases 4.3 years 4.5 years
Finance Leases 2.4 years 2.8 years
Weighted Average Discount Rate^(a)
Operating Leases 4.6 % 5.2 %
Finance Leases 5.1 % 5.1 %
•a favorable jurisdictional mix of earnings

~~_________________________~~•partially offset by losses in the United States that currently have no tax benefit, and an unfavorable adjustment related to a continued limitation of interest expense deductions requiring a valuation allowance

^(a)~~Calculated using Company's incremental borrowing rate.~~

Uncertain tax positions and related interest and penalties were:


	As of
(In millions)	March 27, 2021		December 26, 2020
Accrual for uncertain tax positions	$	15.3	$	15.3
Uncertain tax positions impacting effective tax rate if recognized	$	10.6	$	10.6
Interest and penalties related to uncertain tax positions	$	0.4	$	3.9

~~Maturities~~In the normal course of ~~lease liabilities~~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 ~~June 27, 2020~~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 ~~December 28, 2019~~the number of open tax periods.

Note 7: Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the basic weighted-average shares. Diluted earnings (loss) per share 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:

June 27, 2020 December 28, 2019
(In millions) Operating Leases Finance Leases Operating Leases Finance Leases
2020 $ 17.4 $ 1.1 $ 32.8 $ 1.4
2021 26.7 1.4 22.6 1.4
2022 15.7 1.1 13.0 1.0
2023 9.6 — 7.5 —
2024 6.4 — 5.6 —
Thereafter 13.0 — 13.0 —
Total undiscounted lease liability $ 88.8 $ 3.6 $ 94.5 $ 3.8
Less imputed interest (8.1) (0.2) (9.3) (0.2)
Total $ 80.7 $ 3.4 $ 85.2 $ 3.6


	13 weeks ended
(In millions, except per share amounts)	March 27, 2021		March 28, 2020
Net income (loss)	$	45.3	$	(7.8)

Basic weighted-average shares	49.4		48.9

Effect of dilutive securities	4.0		0
Diluted weighted-average shares	53.4		48.9

Basic earnings (loss) per share	$	0.92	$	(0.16)
Diluted earnings (loss) per share	$	0.85	$	(0.16)

Excluded anti-dilutive shares	2.9		4.2

Note 8: Accumulated Other Comprehensive Income (Loss)

AsThe change in accumulated other comprehensive loss was as follows:


(In millions, net of tax)	Foreign Currency Items		Cash Flow Hedges		Pension and Other Post-retirement Items		Total
Balance at December 26, 2020	$	(648.4)	$	0.2	$	(37.7)	$	(685.9)


Other comprehensive income (loss) before reclassifications	3.9		0		1.0		4.9
Amounts reclassified from accumulated other comprehensive income (loss)	0		0		0.4		0.4
Other comprehensive income (loss)	3.9		0		1.4		5.3

Balance at March 27, 2021	$	(644.5)	$	0.2	$	(36.3)	$	(680.6)


(In millions, net of tax)	Foreign Currency Items		Cash Flow Hedges		Pension and Other Post-retirement Items		Total
Balance at December 28, 2019	$	(600.2)	$	(2.4)	$	(35.7)	$	(638.3)


Other comprehensive income (loss) before reclassifications	(93.6)		10.5		1.7		(81.4)
Amounts reclassified from accumulated other comprehensive income (loss)	0		(0.4)		0.3		(0.1)
Other comprehensive income (loss)	(93.6)		10.1		2.0		(81.5)

Balance at March 28, 2020	$	(693.8)	$	7.7	$	(33.7)	$	(719.8)

Amounts reclassified from accumulated other comprehensive loss that related to cash flow hedges consisted of:



	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Cash flow hedges (gain) losses	$	0	$	(0.5)
Tax (benefit) provision	0		0.1
Amounts reclassified from accumulated other comprehensive income (loss) for cash flow hedges	$	0	$	(0.4)

Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items consisted of:



	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Prior service (benefit) costs	$	(0.1)	$	(0.1)

Actuarial (gains) losses	0.6		0.5
Tax (benefit) provision	(0.1)		(0.1)
Amounts reclassified from accumulated other comprehensive income (loss) related to pension and other post-retirement items	$	0.4	$	0.3

Table of ~~June~~contents

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 Consolidated Balance Sheet. A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents, and restricted cash at end of period in the Consolidated Statements of Cash Flows is as follows:


	As of
(In millions)	March 27, 2021		December 26, 2020
Cash and cash equivalents	$	154.8	$	139.1
Restricted cash	7.9		11.4
Cash, cash equivalents and restricted cash at end of period	$	162.7	$	150.5

Note 10: Accounts Receivable

The accounts receivable and allowance for credit losses balance was:


	As of
(In millions)	March 27, 2021		December 26, 2020
Accounts receivable	$	143.8	$	151.9
Allowance for credit losses	(33.7)		(37.2)
Accounts receivable, net	$	110.1	$	114.7

Note 11: Inventories

Inventories balance net of any inventory allowance was:


	As of
(In millions)	March 27, 2021		December 26, 2020
Finished goods	$	197.4	$	176.4
Work in process	29.4		27.6
Raw materials and supplies	35.3		32.3
Inventories	$	262.1	$	236.3

Note 12: Long-Term Receivables

The long-term receivables and allowance for long-term receivables balance was as follows:


	As of
(In millions)	March 27, 2021		December 26, 2020
Long-term receivables, gross	$	38.5	$	39.3

Beginning balance	$	(26.7)	$	(13.9)
Write-offs	0		3.7
Recoveries	0.1		0.6
Provision (a)	(3.4)		(14.8)
Currency translation adjustment	0.8		(2.3)
Allowance for long-term receivables	$	(29.2)	$	(26.7)

Long-term receivables net	$	9.3	$	12.6

____________________

(a)Provision includes $2.5 million and $8.3 million of reclassifications from current receivables as of March 27, 2021 and December 26, 2020, respectively.

Majority of long-term receivables from both active and inactive customers that are past due were reserved through the Company's allowance for credit losses. Long-term receivables that were past due were:


	As of
(In millions)	March 27, 2021		December 26, 2020
Long-term receivables past due	$	30.9	$	30.9

Note 13: Assets Held for Sale

On October 29, 2020, the Company ~~had an immaterial amount~~entered into a definitive agreement for the sale of ~~operating leases that had not yet commenced.~~its Avroy Shlain beauty business in South Africa. The Company sold the Avroy Shlain beauty business for net cash of $30.5 million in February 2021. The Company recognized a gain of $1.0 million which is recorded in the gain (loss) on disposal of assets line item in the Consolidated Statements of Income. Avroy Shlain results are reported under the Europe segment.

Note ~~9: Segment Information~~14: Derivative Financial Instruments and Hedging Activities

The Company ~~manufactures~~is exposed to fluctuations in foreign currency exchange rates on the earnings, cash flows, and ~~distributes~~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 ~~broad portfolio~~strengthening United States Dollar generally has a negative impact on the Company. In response, the Company uses financial instruments to hedge certain of ~~products,~~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 ~~through independent direct sales force members. Certain operating segments have~~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 ~~aggregated based upon consistency~~included as a component of ~~economic substance, geography, products, production process, class of customers and distribution method.~~interest expense. Pretax income on forward points was as follows:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Forward points gain (loss) on fair value hedges	$	1.0	$	5.0

Cash Flow Hedges

The ~~Company's reportable segments primarily sell design-centric preparation, storage~~Company also uses derivative financial instruments to hedge foreign currency exposures resulting from certain forecasted purchases and ~~serving solutions~~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 ~~kitchen~~gain or loss included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss) and ~~home~~is reclassified into earnings through the ~~Tupperware® brand. Europe also includes Avroy Shlain®~~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 ~~South Africa and Nutrimetics®~~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 ~~France, which sell beauty and personal care products. Some units in Asia Pacific also sell beauty and personal care products under~~other current assets or accrued liabilities, as applicable. In assessing hedge effectiveness, the ~~NaturCare®, Nutrimetics® and Fuller® brands. North America also includes~~Company made an accounting policy change as of 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~~beginning of ~~beauty and personal care products totaled $51.0 million and $61.7 million~~2019 to include forward points in the ~~second quarters~~assessment of ~~2020~~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 ~~2019, respectively, and $104.7 million and $120.7 million in~~amortized over actual months of inventory turns related to the ~~respective year-to-date periods.~~forward point impact from the settlement of cash flow hedges were:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Forward points gain (loss) recorded in other comprehensive income	$	0	$	0.3
Forward points gain (loss) from settlement of cash flow hedges	$	0	$	3.3
Fair value gain (loss) recorded in other comprehensive income	$	0.2	$	7.7
Gain (loss) recorded in accumulated other comprehensive income	$	0	$	10.1

1519

13 weeks ended 26 weeks ended
(In millions) June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Net sales
Europe $ 90.8 $ 121.5 $ 196.5 $ 260.1
Asia Pacific 134.4 155.5 254.8 311.6
North America 124.0 124.7 225.3 244.3
South America 48.2 73.6 96.7 146.6
Total net sales $ 397.4 $ 475.3 $ 773.3 $ 962.6
Segment profit
Europe $ 10.9 $ 12.8 $ 13.4 $ 30.5
Asia Pacific 34.4 37.2 51.7 67.2
North America 18.7 20.4 25.2 37.8
South America 11.3 13.1 14.3 22.0
Total segment profit 75.3 83.5 104.6 157.5
Unallocated expenses 28.5 (7.1) 4.6 (14.4)
Re-engineering charges^(a)
(23.2) (4.1) (27.1) (8.4)
Gain (loss) on disposal of assets 13.9 (0.1) 13.8 (1.0)
Interest expense (11.9) (10.4) (21.6) (20.0)
Income (loss) before income taxes $ 82.6 $ 61.8 $ 74.3 $ 113.7
Net Investment Hedges

(In millions) June 27,
2020 December 28,
2019
Identifiable assets
Europe $ 264.4 $ 269.7
Asia Pacific 276.1 300.3
North America 211.1 235.9
South America 107.5 125.2
Corporate 335.2 331.3
Total identifiable assets $ 1,194.3 $ 1,262.4

~~_________________________~~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:

^(a)~~See~~


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Fair value gain (loss) recorded in other comprehensive income	$	4.1	$	56.2
Forward points gain (loss) recorded in other comprehensive income	$	(2.3)	$	(6.3)

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 curries was:


	As of
(In millions)	March 27, 2021		December 26, 2020
Notional value of forward contracts to purchase currencies	$	66.8	$	125.2
Notional value of forward contracts to sell currencies	$	67.0	$	125.3

The notional value of largest outstanding positions to purchase and sell currencies was:


	As of
(In millions)	March 27, 2021
Purchase South Korean Won	$	11.5
Purchase Swiss Franc	$	18.7
Sell United States Dollars	$	43.1
Sell Philippine Peso	$	6.8

	As of
(In millions)	December 26, 2020
Purchase South Korean Won	$	35.4
Purchase Swiss Franc	$	23.3
Sell United States Dollars	$	79.9
Sell Euros	$	16.8

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	March 27, 2021		December 26, 2020
Derivative assets:
Foreign exchange contracts	Non-trade amounts receivable, net	$	3.4	$	4.3

Derivative liabilities:
Foreign exchange contracts	Accrued liabilities	$	(3.6)	$	(4.4)

The following table summarizes the impact on the results of operations for the first quarters of 2021 and 2020 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions:

Derivatives designated as fair value hedges

(in millions)

Location of gain (loss) recognized in income on derivatives

Amount of gain (loss) recognized in income on derivatives

Location of gain (loss) recognized in income on
related hedged items

Amount of gain (loss) recognized in income on related hedged items

13 weeks ended

March 27,
2021

March 28,
2020

March 27,
2021

March 28,
2020

Foreign exchange contracts

Other (income) expense, net

(7.2)

(75.3)

Other (income) expense, net

$8.8

$75.3

The following table summarizes the impact of Company's hedging activities on comprehensive income:


Derivatives designated as cash flow and net equity hedges (in millions)	Amount of gain (loss) recognized in other comprehensive income on derivatives				Location of (loss) or gain reclassified from accumulated other comprehensive income into income	Amount of gain (loss) reclassified from accumulated other comprehensive income into income
	13 weeks ended					13 weeks ended
	March 27, 2021		March 28, 2020			March 27, 2021		March 28, 2020
Cash flow hedges:
Foreign exchange contracts	$	0	$	10.6	Cost of products sold	$	0	$	0.5

Net investment hedges:
Foreign exchange contracts	3.0		70.7
Euro denominated debt	2.3		1.8

The Company's theoretical credit risk for each foreign exchange contract is its replacement cost, but management believes that the risk of incurring credit losses is remote and such losses, if any, would not be material. The Company is also exposed to market risk on its derivative instruments due to potential changes in foreign exchange rates; however, such market risk would be fully offset by changes in the valuation of the underlying items being hedged. For all outstanding derivative instruments, the net accrued gain or loss was recorded either in non-trade accounts receivable, net or accrued liabilities, depending upon the net position of the individual contracts. The gain or loss amounts change based upon the Company's outstanding exposure to fair value fluctuations. The Company has an accounting policy to present derivative assets and derivative liabilities on a gross basis. 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)	March 27, 2021		December 26, 2020
Net derivative asset (liability)	$	(0.2)	$	(0.1)

Note ~~7: Re-engineering Charges~~15: Deferred Revenue

Deferred revenue is recorded in the accrued liabilities line item in the Consolidated Balance Sheets. Deferred revenue balance, which was primarily related to payments received in advance for ~~further discussion.~~orders not yet shipped, was as follows:


	As of
(In millions)	March 27, 2021		December 26, 2020
Deferred revenue	$	20.9	$	14.1

Note ~~10:~~16: Debt

The debt portfolio consisted of:

(In millions) June 27,
2020 December 28, 2019
Senior notes (including capitalized costs) $ 501.4 $ 599.8
Credit agreement^(a)
298.8 272.0
Finance leases 3.4 3.6
Total debt $ 803.6 $ 875.4


	As of
(In millions)	March 27, 2021		December 26, 2020
Term loan	$	241.0	$	275.0
Credit agreement	451.1		423.3
Finance leases (a)	2.9		3.3

Unamortized debt issuance costs	(15.0)		(18.3)
Total debt	$	680.0	$	683.3

Current debt and finance lease obligations	$	452.5	$	424.7
Long-term debt and finance lease obligations	227.5		258.6
Total debt	$	680.0	$	683.3

____________________

^(a) ~~$137.2~~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 ~~$174.9~~the Company as borrower (the “Dart Term Loan” and, together with the Parent Term Loan, the “Term Loan”).

The Company used the aggregate borrowings of $275.0 million ~~denominated~~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 ~~Euro~~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 ~~June 27, 2020~~the Lenders. The prepayments have premium protections depending on the timing of the prepayment and ~~December 28, 2019, respectively.~~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.

1622

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. 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. 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.

On February 28, 2021 the Company made a payment of $34.0 million which reduced the Term Loan balance to $241.0 million as of March 27, 2021 from $275.0 million as of December 26, 2020. The Company expensed unamortized deferred debt issuance costs related to this prepayment in the loss on debt extinguishment line item. The loss on debt extinguishment was calculated as follows:


	As of
(In millions)	March 27, 2021
Term loan retirement amount	$	34.0
Less: Cash paid	34.0
Less: Costs incurred	2.1
Loss on debt extinguishment (pre-tax)	$	(2.1)

Earnings (loss) per share from loss on debt extinguishment	$	(0.04)

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 ~~its~~their multicurrency Credit Agreement (as further amended byvia an Amendment No. 1 dated August 28, 2019, ~~(so as amended,~~ the ~~"Credit Agreement"~~“Credit Agreement”), with JPMorgan Chase Bank, N.A. as administrative agent (the “Administrative Agent”), swingline lender, joint lead arranger and joint bookrunner, and Credit Agricole Corporate and Investment Bank, HSBC Securities (USA) Inc., Mizuho Bank, Ltd. and Wells Fargo Securities, LLC, as syndication agents, joint lead arrangers and joint bookrunners. The Credit Agreement replaces the credit agreement dated September 11, 2013, and as amended (the “Old Credit Agreement”), and, other than an increased aggregate amount that may be borrowed, an improvement in the consolidated leverage ratio covenant and a slightly more favorable commitment fee rate, has terms and conditions similar to that of the Old Credit Agreement. The Credit Agreement makes available to the Company and the Subsidiary Borrowers a committed credit facility in an aggregate amount of $650.0 million (the “Facility Amount”). The Credit Agreement provides (i) a revolving credit facility, available up to the full amount of the Facility Amount, (ii) a letter of credit facility, available up to $50.0 million of the Facility Amount, and (iii) a swingline facility, available up to $100.0 million of the Facility Amount. Each of such facilities is fully available to the Company and the Facility Amount is available to the Subsidiary Borrowers up to an aggregate amount not to exceed $325.0 million. With the agreement of its lenders, the Company is permitted to increase, on up to 3 occasions, the Facility Amount by a total of up to $200.0 million (for a maximum aggregate Facility Amount of $850.0 million), subject to certain conditions. ~~As of June 27, 2020, the Company had total borrowings of $298.8 million outstanding under its~~Total Credit Agreement ~~with $137.2~~borrowings included Euro dominated debt of $129.1 million and $160.3 million as of ~~that amount denominated in Euro.~~March 27, 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 ~~London interbank offered rate ("LIBOR")~~LIBOR or the EURIBOR rate for the applicable currency and interest period, plus a margin, and/or (ii) “ABR Borrowings”, bearing interest at the sum of (A) the greatest of (x) the Prime Rate, (y) the NYFRB rate plus 0.5 percent, and (z) adjusted LIBOR on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in ~~U.S. dollars~~United States Dollars with a maturity of one month plus 11.0 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 ~~U.S.~~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 ~~June~~March 27, ~~2020,~~2021, the Company had a weighted average interest rate of 2.0 percent with a base rate spread of ~~188~~188% basis points on LIBOR-based borrowings under the Credit Agreement that has a final maturity date of March 29, 2024.

Similar to the Old Credit Agreement, the Credit Agreement contains customary covenants that, among other things, limit the ability of the ~~Company's~~Company’s subsidiaries to incur indebtedness and limit the ability of the Company and its subsidiaries to create liens on and sell assets, engage in certain liquidations or dissolutions, engage in certain mergers or consolidations, or change lines of business. These covenants are subject to significant exceptions and qualifications.

On February 28, 2020, the Company amended the Credit Agreement (the “Amendment”) in order to modify certain provisions, including the consolidated leverage ratio covenant. Previously, the Company had to maintain, at specified measurement periods, a Consolidated Leverage Ratio that was not greater than or equal to 3.75 to 1.00. Following the Amendment, the Company is required to maintain at the last day of each quarterly measurement period a Consolidated Leverage Ratio not greater than or equal to the ratio as set forth below opposite the period that includes such day (or, if such day does not end on the last day of the calendar quarter, that includes the last day of the calendar quarter that is nearest to such day):


Period			Consolidated Leverage Ratio
From the ~~Amendment~~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"~~“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~~cross-default under cross-default provisions with respect to other of the ~~Company's~~Company’s debt obligations, giving the lenders the ability to terminate the revolving commitments, accelerate outstanding amounts under the Credit Agreement, exercise certain remedies relating to the collateral securing the Credit Agreement and require the Company to post cash collateral for all outstanding letters of credit. In addition to the relief provided in the Amendment, the Company has reduced certain operating expenses beginning in 2020 and could use available cash, including repatriating cash held outside of the United States, to make debt repayments to lower its Consolidated Leverage Ratio.

The Company routinely increases its revolver borrowings under the Credit Agreement during each quarter to fund operating, investing and financing activities and uses cash available at the end of each quarter to temporarily reduce borrowing levels. As a result, the Company incurs more interest expense and has higher foreign exchange exposure on the value of its cash and debt during each quarter than would relate solely to the quarter end balances.

At ~~June~~March 27, ~~2020,~~2021, the Company had ~~$403.4~~$222.2 million of unused lines of credit, including ~~$345.6~~$180.7 million under the committed, secured Credit Agreement, and ~~$57.8~~$41.5 million available under various uncommitted lines around the world.

Senior Notes

The Company ~~currently has~~had outstanding ~~$501.3~~$600.0 million aggregate principal amount of 4.75% senior notes (the “Senior Notes”). outstanding as of March 28, 2020. The Senior Notes ~~will~~were to mature on June 1, 2021. The Senior Notes were issued under an indenture (the “Indenture”), by and among the Company, the ~~“Guarantor~~Guarantor and Wells Fargo Bank, N.A., as trustee. As security for its obligations under the guarantee of the Senior Notes, the Guarantor ~~has~~had granted a security interest in certain “Tupperware” trademarks and service marks. As security for its obligations under the guarantee of the Credit Agreement, the Guarantor ~~has~~had granted a security interest in those certain “Tupperware” trademarks and service marks as well. The security interest may be released under certain customary circumstances specified in the Indenture. These customary circumstances include payment in full of principal of and premium, if any, and interest on the Senior Notes. The Indenture ~~includes,~~included, among others, covenants that limit the ability of the Company and its subsidiaries to (i) incur indebtedness secured by liens on certain real property, (ii) enter into certain sale and leaseback transactions, (iii) with respect to the Company only, consolidate or merge with another entity, or sell or transfer all or substantially all of its properties and assets and (iv) sell the capital stock of the Guarantor or sell or transfer all or substantially all of its assets or properties. ~~See Note 8 to~~

During the ~~Consolidated Financial Statements in Part II, Item 8~~second, third, and fourth quarters of 2020 the Company retired its Senior Notes in the ~~Company's Annual Report~~aggregate principal amount of $600.0 million through tender offers, open-market purchases, and redemption by using cash on ~~Form 10-K for~~hand and the ~~year ended~~proceeds from the Term Loan received in December ~~28, 2019 for further details regarding~~2020. The Company recognized a gain on debt extinguishment of $40.0 million, $9.9 million and loss on debt extinguishment of $9.7 million in the ~~Senior Notes.~~second, third, and fourth quarters of 2020, respectively.

1825

Note 17: Leases

The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one 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
(In millions)	March 27, 2021		March 28, 2020
Operating lease costs:
Operating lease cost (a) (b)	$	10.0	$	11.8

Finance lease costs:
Amortization of right-of-use assets (a)	$	0.2	$	0.2

____________________

(a) Included in selling, general and administrative expense and cost of products sold.

(b) Includes $0.6 million and $0.4 million related to short-term rent expense and variable rent expense, respectively.

Supplemental cash flow information related to leases is as follows:


	13 weeks ended
(In millions)	March 27, 2021		March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(9.9)	$	(11.7)

Financing cash flows from finance leases	$	(0.3)	$	(0.3)

Leased assets obtained in exchange for new operating lease liabilities	$	0.2	$	7.5

~~Whether~~Supplemental information related to leases is as follows:


	As of
(In millions, except lease term and discount rate)	March 27, 2021			December 26, 2020
Operating Leases:
Operating lease right-of-use assets	$	93.4		$	97.9

Accrued liabilities	$	26.2		$	26.5
Operating lease liabilities	67.5			70.1
Total Operating lease liabilities	$	93.7		$	96.6

Finance Leases:
Property, plant and equipment, at cost	$	19.3		$	19.7
Accumulated amortization	(12.1)			(12.2)
Property, plant and equipment, net	$	7.2		$	7.5

Current portion of finance lease obligations	$	1.4		$	1.4
Long-term finance lease obligations	1.5			1.9
Total Finance lease liabilities	$	2.9		$	3.3

Weighted average remaining lease term
Operating leases	5.3 years			5.4 years
Finance leases	2.2 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 March 27, 2021 and December 26, 2020 were as follows:


	As of				As of
	March 27, 2021				December 26, 2020
(In millions)	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2021	$	28.3	$	1.2	$	30.1	$	1.6
2022	23.7		1.9		21.1		1.9
2023	16.9		0		14.8		0
2024	11.6		0		10.2		0
2025	7.4		0		6.9		0
Thereafter	30.9		0		30.8		0
Total undiscounted lease liability	$	118.8	$	3.1	$	113.9	$	3.5
Less imputed interest	(25.1)		(0.2)		(17.3)		(0.2)
Total	$	93.7	$	2.9	$	96.6	$	3.3

Note 18: Retirement Benefit Plans

Components of net periodic (benefit) cost for the first quarters ended March 27, 2021 and March 28, 2020 were as follows:


	Pension benefits				Post-retirement benefits
	13 weeks ended				13 weeks ended
(In millions)	March 27, 2021		March 28, 2020		March 27, 2021		March 28, 2020
Service cost	$	1.8	$	2.1	$	0	$	0
Interest cost	0.9		1.1		0.1		0.1
Return on plan assets	(0.9)		(1.0)		0		0

Net amortization	0.6		0.7		(0.1)		(0.3)
Net periodic cost (benefit)	$	2.4	$	2.9	$	0	$	(0.2)

During the first quarters of 2021 and 2020, approximately $0.5 million and $0.4 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 ~~will be able~~uses current exchange rates to ~~repay or refinance the Senior Notes will depend on economic, financial, competitive and other factors that may be beyond its control, including the COVID-19 pandemic, and~~make these reclassifications. The impact of exchange rate fluctuations is included on the ~~Company’s financial performance at~~net amortization line of the ~~time.~~table above. The ~~COVID-19 pandemic~~Company included $0.6 million and ~~measures implemented~~$0.6 million related to ~~slow~~ the ~~spread~~components of ~~COVID-19 may negatively impact~~net periodic (benefit) cost, excluding service cost, in other expense in the first quarters of 2021 and 2020, respectively.

Note 19: 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 ~~ability to repay or refinance the Senior Notes. The extent to which the COVID-19 pandemic ultimately impacts the Company’s ability to repay or refinance the Senior Notes~~contingencies will depend on future developments, which are highly uncertain and cannot be predicted with certainty. Any refinancing of the Senior Notes may be at a higher interest rate and may require the Company to comply with additional covenants and obligations, which could further restrict the Company's business operations. If the Company is unable to repay or refinance the Senior Notes, the holders of the Seniors Notes may pursue certain remedies relating to the collateral securing the guaranty of the Senior Notes or pursue other remedies, in each case in accordance with the Indenture and the documents relating to such collateral, all of which could have a material adverse effect on its financial position, results of operations or cash flow.

Kraft Foods, Inc., which was formerly affiliated with Premark International, Inc., the ~~Company.~~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.

~~Senior Notes Repurchase~~

~~During~~In February 2020, putative stockholder class actions were filed against the ~~second quarter ended June 27,~~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. While the Company's motion to dismiss the complaint was granted on January 25, 2021, the court permitted the lead plaintiff to file an amended complaint, which the plaintiff filed on February 16, 2021. The Company ~~paid approximately $56.4 million through Tender Offers~~filed a motion to dismiss the amended complaint on April 2, 2021, and ~~open-market purchases for~~ the ~~purchase~~Company expects the amended complaint to be fully briefed before the end of Senior Notes with a face value of approximately $98.7 million. These transactions resulted in a pre-tax gain on debt extinguishment (including costs associated with the Senior Notes repurchase) of $40.0 million which was recorded in the Other expense (income), net line item. The gain on debt extinguishment resulted in basic earnings per share of $0.82 for the second quarter of ~~2020 and the respective year-to-date period. Any deferred debt issuance costs related to the purchased Senior Notes were expensed and recorded in the interest expense line item.~~

~~Since June 27, 2020 and through July 29, 2020, the Company paid $10.7 million through open-market purchases for the purchase of Senior Notes with a face value of $13.4 million.~~

~~Note 11: Derivative Instruments and Hedging Activities~~

2021. The Company is ~~exposed~~unable at this time to ~~fluctuations in foreign currency exchange rates on~~determine whether the ~~earnings, cash flows and financial position~~outcome 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,~~these actions would have a ~~strengthening U.S. dollar generally has a negative~~material impact on its results of operations, financial condition or cash flows.

Additionally, several putative stockholders filed stockholder derivative complaints in the ~~Company. In response,~~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 ~~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~~make false or ~~net investment 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 recognizedmisleading statements in ~~current earnings. In assessing hedge effectiveness, as~~violation of the ~~beginning~~securities laws. The Court stayed proceedings in this action pending resolution of ~~2019,~~ the ~~Company made the accounting policy election in accordance with ASU 2017-12~~motion to ~~exclude forward points and record their impact~~dismiss in the ~~same income statement line item that is used~~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 ~~present~~stay this action pending the ~~earnings effect~~resolution of the ~~hedged item for 2019, Other expense (income), net. The forward points on fair value hedges resulted in pretax income of $7.6 million and $4.4 million~~motion to dismiss in the ~~second quarters of 2020 and 2019, respectively and $12.6 million and $8.1 million for the respective year-to-date periods.~~

putative stockholder class action. The Company ~~also uses derivative~~is unable at this time to determine whether the outcome of these actions would have a material impact on its results of operations, financial ~~instruments to hedge foreign currency exposures resulting from certain forecasted purchases and classifies these as~~condition or cash flow hedges. The majority of cash flow hedge contracts that the Company enters into relate to inventory purchases. At initiation, the Company's cash flow hedge contracts are generally for periods ranging from one month to fifteen months. The effective portion of the gain or loss on the open hedging instrument is recorded in other comprehensive income and is reclassified into earnings when settled through the same line item as the transaction being hedged. As such, the balance at the end of the current reporting period in other comprehensive income, related to cash flow hedges, will generally be reclassified within the next twelve months. The associated asset or liability on the open hedges is recorded in other current assets or accrued liabilities, as applicable. In assessing hedge effectiveness, the Company made an accounting policy change as of the beginning of 2019 to include forward points in the assessment of effectiveness for cash flow hedges causing the impact from forward points to be recorded as part of other comprehensive income compared to interest expense as it previously had been recorded. Based on the interest expense incurred for open cash flow hedges as of December 30, 2018, the Company recorded an adjustment of $1.2 million, net of taxes, to accumulated comprehensive income and retained earnings to reflect this accounting policy change. There was an immaterial impact from forward points recorded in other comprehensive income for activity related to the second quarters and year-to-date periods of 2020 and 2019. The Company recognized $0.6 million and $1.1 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 second quarters of 2020 and 2019, respectively and $1.4 million and $2.1 million for the respective year-to-date periods.flows.

1928

Leases

~~The Company uses derivative financial instruments,~~

Lease costs for operating leases and approximate minimum rental commitments under non-cancelable operating leases are disclosed in Note 17: Leases to the 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 ~~forward contracts~~step rent or other escalation clauses and ~~certain Euro denominated borrowings under its Credit Agreement, to hedge~~lease concessions, which may offer a ~~portion~~period of ~~its net equity investment in international operations and classifies these as net investment hedges. Changes in the value~~no rent payment. These types of ~~these financial instruments, excluding any ineffective portion of the hedges,~~items are ~~included in foreign currency translation adjustments within accumulated other comprehensive loss~~. The Company recorded, net of tax, in other comprehensive income a net loss of $43.7 million and a net loss of $2.1 million associated with these hedges in the second quarters of 2020 and 2019, respectively and net gain of $12.5 million and loss of $15.2 million for the respective year-to-date periods. Due to the permanent nature of the investments,considered by the Company, ~~does not anticipate reclassifying any portion of these amounts to~~and are recorded into expense on a straight-line basis over the ~~income statement in the next twelve months. In assessing hedge effectiveness,~~minimum lease terms. There are no material lease agreements containing renewal options. Certain leases require the Company ~~made an accounting policy change as of the beginning of 2019~~ to include forward points in the assessment of effectiveness for net investment hedges causing the impact from forward points to be recorded as part of other comprehensive income compared to interest expense as it previously had been recorded. The impact of forward points is being recorded in other comprehensive incomepay property taxes, insurance and will remain there indefinitely since that is where the gains and losses on hedges of net equity are recorded. Based on the interest expense associated with forward points incurred for open net investment hedges as of December 30, 2018, the Company recorded an adjustment of $3.8 million, net of taxes, to accumulated comprehensive income to reflect this accounting policy change. The impact related to forward points on hedges of net equity investment recorded as a component of other comprehensive income in the second quarters of 2020 and 2019 was a loss of $6.4 million and a gain of $4.6 million, respectively and a loss of $12.8 million and a gain of $8.9 million for the respective year-to-date periods.routine maintenance.

~~The net cash flow impact from hedging activity for the year-to-date periods ended June 27, 2020 and June 29, 2019 was inflows of $3.9 million and an outflow of $7.5 million, respectively.~~

The Company considers the total notional value of its forward contracts as the best measure of the volume of derivative transactions. As of June 27, 2020 and December 28, 2019, the notional amounts of outstanding forward contracts to purchase currencies were $174.2 million and $137.7 million, respectively, and the notional amounts of outstanding forward contracts to sell currencies were $176.9 million and $143.5 million, respectively. As of June 27, 2020, the notional values of the largest positions outstanding were to purchase $74.2 million of U.S. dollars and $28.3 million of South Korean Won, and to sell $125.8 million of Euros and $24.7 million of Mexican pesos.

The following table summarizes the Company's derivative positions, which are the only assets and liabilities recorded at fair value on a recurring basis, and the impact they had on the Company's financial position as of June 27, 2020 and December 28, 2019. Fair values were determined based on third party quotations (Level 2 fair value measurement):

Asset derivatives Liability derivatives
Fair value Fair value
Derivatives designated as hedging
instruments (in millions) Balance sheet
location Jun 27,
2020 Dec 28,
2019 Balance sheet
location Jun 27,
2020 Dec 28,
2019
Foreign exchange contracts Non-trade amounts receivable $ 32.9 $ 16.0 Accrued liabilities $ 35.6 $ 19.8

The following table summarizes the impact on the results of operations for the second quarters of 2020 and 2019 for the components included in the hedge effectiveness assessment of the Company's fair value hedging positions:

Derivatives designated as fair value hedges (in millions) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized
in income on
derivatives Location of (loss) gain recognized in income on related hedged items Amount of (loss) gain recognized
in income on
related hedged items
2020 2019 2020 2019
Foreign exchange contracts Other expense $ 42.4 $ (4.6) Other expense $ (40.4) $ 4.6

~~The following table summarizes the impact of the Company's hedging activities on comprehensive income for the second quarters of 2020 and 2019:~~

Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in
OCI on derivatives
(effective portion) Location of gain (loss) reclassified from accumulated OCI into income
(effective portion) Amount of gain (loss) reclassified from accumulated OCI into income
(effective portion)
Cash flow hedging relationships 2020 2019 2020 2019
Foreign exchange contracts $ (3.5) $ (0.8) Cost of products sold $ 2.0 $ (0.7)
Net investment hedging relationships
Foreign exchange contracts $ (52.3) $ (1.8)
Euro denominated debt $ (4.0) $ (0.9)

The following table summarizes the impact on the results of operations for the year-to-date periods ended June 27, 2020 and June 29, 2019 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 year-to-date periods ended June 27, 2020 and June 29, 2019:~~

Derivatives designated as cash flow and net equity hedges (in millions) Amount of gain (loss) recognized in
OCI on derivatives
(effective portion) Location of gain (loss) reclassified from accumulated OCI into income
(effective portion) Amount of gain (loss) reclassified from accumulated OCI into income
(effective portion)
Cash flow hedging relationships 2020 2019 2020 2019
Foreign exchange contracts $ 7.1 $ (3.6) Cost of products sold $ 2.5 $ (1.2)
Net investment hedging relationships
Foreign exchange contracts $ 18.4 $ (19.5)
Euro denominated debt $ (2.2) $ (0.1)

Note ~~12:~~20: Fair Value Measurements

Due to their short maturities or their insignificance, the carrying amounts of cash and cash equivalents, accounts ~~and notes~~ receivable, net, accounts payable, accrued liabilities, leased assets and liabilities, and short-term borrowings approximated their fair values at ~~June~~March 27, ~~2020~~2021 and December 28, 2019. The Company estimates that, based on current market conditions, the value of its Senior Notes (including capitalized costs) was approximately $300.9 million at June 27, 2020, compared with the carrying value of $501.4 million. The lower fair value resulted from changes, since issuance, in the corporate debt markets and investor preferences. 26, 2020.

The fair value of ~~debt~~the Term Loan is classified as a ~~Level~~level 2 liability and is estimated using ~~quoted~~a market ~~prices~~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 ~~provided in secondary markets that consider the Company's credit risk and market related conditions.~~ follows:


	As of				As of
	March 27, 2021				December 26, 2020
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Term loan	$	241.0	$	241.0	$	275.0	$	275.0

See Note ~~11:~~14: Derivative Financial Instruments and Hedging Activities for discussion of the ~~Company's~~Company’s derivative financial instruments and related fair value measurements.

~~Note 13: Retirement Benefit Plans~~

~~Components of net periodic benefit cost for the second quarters ended June 27, 2020 and June 29, 2019 were as follows:~~

Second Quarter Year-to-Date
Pension benefits Post-retirement benefits Pension benefits Post-retirement benefits
(In millions) 2020 2019 2020 2019 2020 2019 2020 2019
Service cost $ 2.1 $ 1.9 $ — $ 0.1 $ 4.2 $ 3.8 $ — $ 0.1
Interest cost 1.1 1.5 0.1 0.2 2.2 3.0 0.2 0.3
Expected return on plan assets (1.0) (1.1) — — (2.0) (2.2) — —
Settlement/curtailment 0.4 (0.1) — — 0.4 (0.1) — —
Net amortization 0.7 — (0.3) (0.3) 1.4 — (0.6) (0.6)
Net periodic benefit cost $ 3.3 $ 2.2 $ (0.2) $ — $ 6.2 $ 4.5 $ (0.4) $ (0.2)

During the year-to-date periods ended June 27, 2020 and June 29, 2019, approximately $1.2 million of pretax loss and $0.7 million of pretax gain 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 $1.6 million and $0.4 million related to the components of net periodic benefit cost, excluding service cost, in other expense in the year-to-date periods ended June 27, 2020 and June 29, 2019, respectively.

~~Note 14: Income Taxes~~

~~The effective tax rate was:~~

13 weeks ended 26 weeks ended
June 27,
2020 June 29,
2019 June 27,
2020 June 29,
2019
Effective tax rate 22.8 % 36.2 % 24.6 % 32.9 %

The change in effective tax rate in the second quarters of 2020 and 2019, respectively, and in the respective year-to-date periods was due to a change in the jurisdictional mix of earnings between the periods compared and the Company’s ability to offset the taxable gain from gain on debt extinguishment with a mixture of assets previously reserved and global intangible low-taxed income (“GILTI”) credits that would have otherwise been lost.

~~Accrual for uncertain tax positions and interest and penalties related to uncertain tax positions were:~~

(In millions) June 27,
2020 December 28,
2019
Accrual for uncertain tax positions $ 13.5 $ 13.5
Interest and penalties related to uncertain tax positions $ 0.7 $ 4.0

~~The Company estimates that as of June 27, 2020, approximately $13.2 million of the unrecognized tax benefits, if recognized, will impact the effective tax rate.~~

In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently under examination or contesting proposed adjustments by various state and international tax authorities for fiscal years ranging from 2004 through 2018. It is reasonably possible that there could be a significant decrease or increase to the unrecognized tax benefit balance during the course of the next twelve months as these examinations continue, other tax examinations commence or various statutes of limitations expire. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment of valuation allowances against certain existing deferred tax assets. An estimate of the range of possible changes cannot be made for remaining unrecognized tax benefits because of the significant number of jurisdictions in which the Company does business and the number of open tax periods.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by the President of the U.S. on March 27, 2020. This legislation is aimed at providing relief for individuals and businesses impacted by the Coronavirus outbreak. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (NOL) and allow businesses to carry back NOLs arising in 2018, 2019, and 2020 to the five prior tax years, suspend the excess business loss rules, accelerate refunds of previously generated corporate Alternative Minimum Tax credits, loosen the business interest limitation under section 163(j) from 30 percent to 50 percent, allow for deferral of payroll taxes and establish an employer retention credit. While the enactment period impacts to the Company are expected to be minimal to none to income taxes, the Company continues to assess other aspects of the CARES Act, such as employee retention credits, payroll tax deferrals and the alternative minimum tax acceleration, for applicability.

~~Note 15: Statement of Cash Flow Supplemental Disclosure~~

Under the Company's stock incentive programs, in certain jurisdictions, employees are allowed to use shares retained by the Company to satisfy minimum statutorily required withholding taxes. In the year-to-date periods ended June 27, 2020 and June 29, 2019, 1,699 and 25,673 shares, respectively, were retained to fund withholding taxes, with values totaling $0.01 million and $0.80 million, respectively, which were included as stock repurchases in the Consolidated Statements of Cash Flows.

~~Restricted cash is recorded in prepaid and other current assets or in the long-term other assets balance sheet line items.~~

~~Note 16: Stock-based Compensation~~

~~Stock option activity for 2020 is summarized in the following table:~~

Shares
subject to
option Weighted
average
exercise price
per share Aggregate intrinsic value (in millions)
Outstanding at December 28, 2019 3,340,739 $ 56.28
Granted 1,000,000 2.61
Expired / Forfeited (91,484) 45.98
Outstanding at June 27, 2020 4,249,255 $ 43.87 $ —
Exercisable at June 27, 2020 2,875,945 $ 57.82 $ —

~~The Company also has time-vested, performance-vested and market-vested share awards. The activity for such awards in 2020 is summarized in the following table:~~

Shares
outstanding Weighted
average grant date
fair value
December 28, 2019 528,289 $ 28.82
Time-vested shares granted 2,709,286 4.34
Market-vested shares granted 1,715,566 1.70
Performance shares granted 743,770 3.01
Performance share adjustments (610,188) 2.38
Vested (68,937) 23.10
Forfeited (634,490) 12.92
June 27, 2020 4,383,296 $ 4.77

~~Stock-based compensation for the second quarter ended June 27, 2020 and June 29, 2019 were as follows:~~

Second Quarter Year-to-Date
(In millions) 2020 2019 2020 2019
Stock options $ 0.2 $ 0.6 $ 0.5 $ 1.2
Time, performance and market vested share awards 1.4 2.0 3.3 3.3

As of June 27, 2020, total unrecognized stock-based compensation expense related to all stock-based awards was $15.9 million, which is expected to be recognized over a weighted average period of 2.2 years.

~~Note 17: Allowance for Long-Term Receivables~~

As of June 27, 2020, $13.5 million of long-term receivables from both active and inactive customers were considered past due, the majority of which were reserved through the Company's allowance for uncollectible accounts.

~~The balance of the allowance for long-term receivables as of June 27, 2020 was as follows:~~


~~(In millions)~~
~~Balance at December 28, 2019~~	$	~~13.9~~
~~Write-offs~~	~~(3.4)~~
~~Provision and reclassifications~~	~~3.4~~
~~Currency translation adjustment~~	~~(0.1)~~
~~Balance at June 27, 2020~~	$	~~13.8~~

~~Note 18: Guarantor Information~~

The Company's payment obligations under the Senior Notes are fully and unconditionally guaranteed, on a senior secured basis, by the Guarantor. The guarantee is secured by certain "Tupperware" trademarks and service marks owned by the Guarantor, as discussed in Note 10: Debt. In addition, under the Credit Agreement and consistent with the Old Credit Agreement, the Guarantor unconditionally guarantees all obligations and liabilities of the Company and the Subsidiary Borrowers relating to the Credit Agreement, supported by a security interest in those certain "Tupperware" trademarks and service marks as well.

Condensed consolidated financial information as of June 27, 2020 and December 28, 2019, and for the quarter ended June 27, 2020 and June 29, 2019, for Tupperware Brands Corporation (the "Parent"), Guarantor and all other subsidiaries (the "Non-Guarantors") is as follows.

Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent and Guarantor of the equity method of accounting to reflect ownership interests in subsidiaries that are eliminated upon consolidation. The Guarantor is 100% owned by the Parent, and there are certain entities within the Non-Guarantors’ classification which the Parent owns directly. There are no significant restrictions on the ability of either the Parent or the Guarantor from obtaining adequate funds from their respective subsidiaries by dividend or loan that should interfere with their ability to meet their operating needs or debt repayment obligations.