Retirement Benefit Plans

12 Months Ended

Dec. 28, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

The Company has various defined benefit pension plans covering substantially all domestic employees employed as of June 30, 2005 and certain employees in other countries. In addition to providing pension benefits, the Company provides certain post-retirement healthcare and life insurance benefits for selected U.S. and Canadian employees. Employees may become eligible for these benefits if they reach normal retirement age while working for the Company or satisfy certain age and years of service requirements. The medical plans are contributory for most retirees with contributions adjusted annually, and contain other cost-sharing features, such as deductibles and coinsurance. The medical plans include an allowance for Medicare for post-65 age retirees. Most employees and retirees outside the United States are covered by government healthcare programs.

The Company uses its fiscal year end as the measurement date for its plans. The funded status of all of the Company's plans was as follows:



	U.S. plans												Foreign plans
	Pension benefits						Post-retirement benefits						Pension benefits
(In millions)	2019			2018			2019			2018			2019			2018
Change in benefit obligations:
Beginning balance	$	45.5		$	50.7		$	12.6		$	15.2		$	178.3		$	194.9
Service cost	—			—			0.1			0.1			7.3			8.4
Interest cost	1.6			1.6			0.5			0.5			4.4			3.8
Actuarial (gain) loss	4.6			(3.7		)	0.8			(1.7		)	17.5			(6.8		)
Benefits paid	(0.9		)	(0.8		)	(1.4		)	(1.4		)	(4.5		)	(7.5		)
Impact of exchange rates	—			—			—			(0.1		)	(1.2		)	(4.8		)
Plan participant contributions	—			—			—			—			1.0			0.9
Settlements/Curtailments (a)	(11.8		)	(2.3		)	—			—			(10.1		)	(10.6		)
Ending balance	$	39.0		$	45.5		$	12.6		$	12.6		$	192.7		$	178.3
Change in plan assets at fair value:
Beginning balance	$	24.4		$	29.0		$	—		$	—		$	81.9		$	87.7
Actual return on plan assets	6.4			(1.8		)	—			—			5.8			(3.1		)
Company contributions	10.9			0.7			1.4			1.4			8.8			11.2
Plan participant contributions	—			—			—			—			1.0			0.9
Benefits and expenses paid	(1.3		)	(1.2		)	(1.4		)	(1.4		)	(4.5		)	(7.5		)
Impact of exchange rates	—			—			—			—			(0.3		)	(1.7		)
Settlements	(11.8		)	(2.3		)	—			—			(10.1		)	(5.6		)
Ending balance	$	28.6		$	24.4		$	—		$	—		$	82.6		$	81.9
Funded status of plans	$	(10.4	)	$	(21.1	)	$	(12.6	)	$	(12.6	)	$	(110.1	)	$	(96.4	)


(a)	Includes $5.0 million pension obligations replaced by severance obligations to be paid as part of the 2018 closure of the supply chain facility in France. See Note 2 for discussion of re-engineering charges.

Amounts recognized in the balance sheet consisted of:



(In millions)	December 28, 2019			December 29, 2018
Accrued benefit liability	$	(133.1	)	$	(130.1	)
Accumulated other comprehensive loss (pretax)	49.8			35.3

Items not yet recognized as a component of pension expense as of December 28, 2019 and December 29, 2018 consisted of:



	2019					2018
(In millions)	Pension Benefits		Post-retirement Benefits			Pension Benefits		Post-retirement Benefits
Transition obligation	$	2.0	$	—		$	2.4	$	—
Prior service cost (benefit)	2.0		(3.4		)	2.1		(4.7		)
Net actuarial loss (gain)	50.3		(1.1		)	37.4		(1.9		)
Accumulated other comprehensive loss (income) pretax	$	54.3	$	(4.5	)	$	41.9	$	(6.6	)

Components of other comprehensive loss (income) for the years ended December 28, 2019 and December 29, 2018 consisted of the following:



	2019					2018
(In millions)	Pension Benefits			Post-retirement Benefits		Pension Benefits			Post-retirement Benefits
Net prior service cost	$	(0.1	)	$	1.3	$	0.9		$	1.3
Net actuarial loss (gain)	12.9			0.8		(4.9		)	(1.7		)
Impact of exchange rates	(0.4		)	—		(0.4		)	—
Other comprehensive loss (income)	$	12.4		$	2.1	$	(4.4	)	$	(0.4	)

In 2020, the Company expects to recognize a prior service benefit of $1.5 million and a net actuarial loss of $3.0 million as components of pension and post-retirement expense.

The accumulated benefit obligation for all defined benefit pension plans at December 28, 2019 and December 29, 2018 was $206.4 million and $201.9 million, respectively. At December 28, 2019 and December 29, 2018, the accumulated benefit obligations of certain pension plans exceeded those respective plans' assets. For those plans, the accumulated benefit obligations were $177.9 million and $199.9 million, and the fair value of their assets was $82.4 million and $104.2 million as of December 28, 2019 and December 29, 2018, respectively. At December 28, 2019 and December 29, 2018, the benefit obligations of the Company's significant pension plans exceeded those respective plans' assets. The accrued benefit cost for the pension plans is reported in accrued liabilities and other long-term liabilities.

The costs associated with all of the Company's plans were as follows:



	Pension benefits									Post-retirement benefits
(Dollars in millions)	2019			2018			2017			2019			2018			2017
Components of net periodic benefit cost:
Service cost and expenses	$	7.3		$	8.4		$	10.4		$	0.1		$	0.1		$	0.1
Interest cost	6.0			5.4			5.6			0.5			0.5			0.7
Return on plan assets	(4.1		)	(4.4		)	(4.4		)	—			—			—
Settlement/Curtailment	0.7			1.3			1.0			—			—			—
Employee contributions	(0.2		)	(0.2		)	(0.2		)	—			—			—
Net deferral	0.3			0.8			2.0			(1.3		)	(1.3		)	(1.3		)
Net periodic benefit cost (income)	$	10.0		$	11.3		$	14.4		$	(0.7	)	$	(0.7	)	$	(0.5	)
Weighted average assumptions:
U.S. plans
Discount rate, net periodic benefit cost	4.3		%	3.3		%	3.8		%	4.3		%	3.5		%	4.0		%
Discount rate, benefit obligations	3.3			4.0			3.3			3.3			4.2			3.5
Return on plan assets	7.0			7.0			7.3			na			na			na
Salary growth rate, net periodic benefit cost	—			—			—			na			na			na
Salary growth rate, benefit obligations	—			—			—			na			na			na
Foreign plans
Discount rate	1.9		%	2.6		%	2.2		%	na			na			na
Return on plan assets	2.6			3.0			3.1			na			na			na
Salary growth rate	2.8			2.8			2.7			na			na			na

____________________

na Not applicable

The Company has established strategic asset allocation percentage targets for significant asset classes with the aim of achieving an appropriate balance between risk and return. The Company periodically revises asset allocations, where appropriate, in an effort to improve return and/or manage risk. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. The market-related value of plan assets is based on long-term expectations given current investment objectives and historical results. The expected rate of return assumption used by the Company to determine the benefit obligation for its U.S. and foreign plans for 2019 was 7.0 percent and 2.6 percent, respectively, and 7.0 percent and 3.0 percent for 2018, respectively.

The Company determines the discount rate primarily by reference to rates on high-quality, long-term corporate and government bonds that mature in a pattern similar to the expected payments to be made under the various plans. The weighted average discount rates used to determine the benefit obligation for its U.S. and foreign plans for 2019 was 3.3 percent and 1.9 percent, respectively, and 4.0 percent and 2.6 percent for 2018, respectively.

The Company sponsors a number of pension plans in the United States and in certain foreign countries. There are separate investment strategies in the United States and for each unit operating internationally that depend on the specific circumstances and objectives of the plans and/or to meet governmental requirements. The Company's overall strategic investment objectives are to preserve the desired funded status of its plans and to balance risk and return through a wide diversification of asset types, fund strategies and investment managers. The asset allocation depends on the specific strategic objectives for each plan and is rebalanced to obtain the target asset mix if the percentages fall outside of the range considered acceptable. The investment policies are reviewed from time to time to ensure consistency with long-term objectives. Options, derivatives, forward and futures contracts, short positions, or margined positions may be held in reasonable amounts as deemed prudent. For plans that are tax-exempt, any transactions that would jeopardize this status are not allowed. Lending of securities is permitted in some cases in which appropriate compensation can be realized. While the Company's plans do not invest directly in its own stock, it is possible that the various plans' investments in mutual, commingled or indexed funds or insurance contracts (GIC's) may hold ownership of Company securities. The investment objectives of each plan are more specifically outlined below.

The Company's weighted average asset allocations at December 28, 2019 and December 29, 2018, by asset category, were as follows:



	2019				2018
Asset category	U.S. plans		Foreign plans		U.S. plans		Foreign plans
Equity securities	64	%	29	%	61	%	25	%
Fixed income securities	36		18		39		17
Cash and money market investments	—		6		—		7
Guaranteed contracts	—		45		—		50
Other	—		2		—		1
Total	100	%	100	%	100	%	100	%

The fair value of the Company's pension plan assets at December 28, 2019 by asset category was as follows:



Description of assets (in millions)		December 28, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Domestic plans:
	Common/collective trust (a)	$	28.7	$	—	$	28.7	$	—
Foreign plans:
Australia	Investment fund (b)	2.1		—		2.1		—
Switzerland	Guaranteed insurance contract (c)	28.3		—		—		28.3
Germany	Guaranteed insurance contract (c)	5.4		—		—		5.4
Belgium	Mutual fund (d)	26.7		26.7		—		—
Austria	Guaranteed insurance contract (c)	0.3		—		—		0.3
Korea	Guaranteed insurance contract (c)	3.7		—		—		3.7
Japan	Common/collective trust (e)	12.6		—		12.6		—
Philippines	Fixed income securities (f)	1.4		1.4		—		—
	Equity fund (f)	2.1		2.1		—		—
Total		$	111.3	$	30.2	$	43.4	$	37.7

The fair value of the Company's pension plan assets at December 29, 2018 by asset category was as follows:



Description of assets (in millions)		December 29, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Domestic plans:
	Common/collective trust (a)	$	24.4	$	—	$	24.4	$	—
Foreign plans:
Australia	Investment fund (b)	2.1		—		2.1		—
Switzerland	Guaranteed insurance contract (c)	32.0		—		—		32.0
Germany	Guaranteed insurance contract (c)	5.5		—		—		5.5
Belgium	Mutual funds (d)	23.4		23.4		—		—
Austria	Guaranteed insurance contract (c)	0.4		—		—		0.4
Korea	Guaranteed insurance contract (c)	4.1		—		—		4.1
Japan	Common/collective trust (e)	11.2		—		11.2		—
Philippines	Fixed income securities (f)	1.4		1.4		—		—
	Equity fund (f)	1.8		1.8		—		—
Total		$	106.3	$	26.6	$	37.7	$	42.0

____________________

(a)

The investment strategy of the U.S. pension plan for each period presented was to achieve a return greater than or equal to the return that would have been earned by a portfolio invested approximately 60 percent in equity securities and 40 percent in fixed income securities. As of the years ended December 28, 2019 and December 29, 2018, the common trusts held 64 percent and 61 percent of its assets in equity securities and 36 percent and 39 percent in fixed income securities, respectively. The percentage of funds invested in equity securities at the end of 2019 and 2018, included: ten percent in international stocks in each year, 33 percent and 31 percent in large U.S. stocks and 21 percent and 20 percent in small U.S. stocks, respectively. The common trusts are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds (equity securities and fixed income securities) are valued using quoted market prices.

(b)

The strategy of this fund was to achieve a 10-year long-term net return of at least 3.5 percent, above inflation based on the Australian consumer price index. The investment strategy is to invest mainly in equities and property, which are expected to earn relatively higher returns over the long term. The fair value of the fund is determined using the net asset value per share using quoted market prices or other observable inputs in active markets. As of December 28, 2019 and December 29, 2018, the percentage of funds held in investments included: Australian equities of 13 percent and 14 percent, other equities of listed companies outside of Australia of 49 percent and 42 percent, government and corporate bonds of 19 percent and 21 percent and cash of 12 percent and 15 percent and real estate of seven percent and eight percent, respectively.

(c)

The strategy of the Company's plans in Austria, Germany, Korea and Switzerland was to seek to ensure the future benefit payments of their participants and manage market risk. This is achieved by funding the pension obligations through guaranteed insurance contracts. The plan assets operate similar to investment contracts whereby the interest rate, as well as the surrender value, is guaranteed. The fair value is determined as the contract value, using a guaranteed rate of return which will increase if the market performance exceeds that return.

(d)

The strategy of the Belgian plan in each period presented was to seek to achieve a return greater than or equal to the return that would have been earned by a portfolio invested approximately 62 percent in equity securities, 37 percent in fixed income securities and one percent cash. The fair value of the fund is calculated using the net asset value per share as determined by the quoted market prices of the underlying investments. As of December 28, 2019 and December 29, 2018, the percentage of funds held in various asset classes included: large-cap equities of European companies of 25 percent and 22 percent, small-cap equities of European companies of 18 percent and 16 percent, and money market fund of 14 percent and 21 percent, bonds, primarily from European and U.S. governments, of 31 percent and 29 percent, respectively, and equities outside of Europe, mainly in the U.S. and emerging markets, 12 percent each year.

(e)

The Company's strategy was to invest approximately 50 percent of assets to benefit from the higher expected returns from long-term investments in equities and to invest 50 percent of assets in short-term low investment risk instruments to fund near term benefits payments. The target allocation for plan assets to implement this strategy is 51 percent equities in Japanese listed securities, seven percent in equities outside of Japan, four percent in cash and other short-term investments and 38 percent in domestic Japanese bonds. This strategy has been achieved through a collective trust that held 100 percent of total funded assets as of December 28, 2019 and December 29, 2018. As of the end of December 28, 2019 and December 29, 2018, the allocation of funds within the common collective trust included: 50 percent and 47 percent in Japanese equities, 38 percent and 42 percent in Japanese bonds, eight percent and seven percent in equities of companies based outside of Japan, respectively, and four percent in cash and other short-term investments in each year. The fair value of the collective trust is determined by the market value of the underlying shares, which are traded in active markets.

(f)

In both years, the investment strategy in the Philippines was to achieve an appropriate balance between risk and return, from a diversified portfolio of Philippine peso denominated bonds and equities. The target asset class allocations is 57 percent in equity securities, 38 percent fixed income securities and five percent in cash and deposits. The fixed income securities at year end included assets valued using a weighted average of completed deals on similarly termed government securities, as well as balances invested in short-term deposit accounts. The equity index fund was valued at the closing price of the active market in which it was traded.

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3):



	Year Ending
(In millions)	December 28, 2019			December 29, 2018
Beginning balance	$	42.0		$	42.9
Realized gains	0.7			0.1
Purchases, sales and settlements, net	(5.1		)	(0.5		)
Impact of exchange rates	0.1			(0.5		)
Ending balance	$	37.7		$	42.0

The Company expects to contribute $11.3 million to its U.S. and foreign pension plans and $1.3 million to its other U.S. post-retirement benefit plan in 2020.

The Company also has several savings, thrift and profit-sharing plans. Its contributions to these plans are in part based upon various levels of employee participation. The total cost of these plans was $6.7 million in 2019 and $6.5 million each year of 2018 and 2017.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid from the Company's U.S. and foreign plans (in millions):



Years	Pension benefits		Post-retirement benefits		Total
2020		$16.0		$1.3		$17.3
2021	11.4		1.2		12.6
2022	12.6		1.1		13.7
2023	12.6		1.1		13.7
2024	12.7		1.0		13.7
2025-2029	64.6		3.9		68.5

In addition to the Company's health and insurance benefits, the Company also offers select employees a deferred compensation plan. The Tupperware Deferred Compensation Plan is an unfunded, non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. The Tupperware Deferred Compensation Plan offers a variety of investment options and is accounted for as a plan that permits diversification but does not include Company stock as an investment option. All distributions from the Tupperware Deferred Compensation Plan must be made in cash and changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is adjusted, with a charge or a credit to compensation cost, to reflect changes in the fair value of the obligation. The assets and liabilities are included in Other assets, net and Other liabilities of the Consolidated Balance Sheets. As of December 28, 2019 and December 29, 2018, the fair value of the investments held in trust and the related liability was $12.1 million and $16.7 million, respectively. All assets held in the trust are Level 1 Fidelity mutual funds and the fair value of the funds are calculated using the net asset value per share as determined by the quoted market prices of the underlying investments. Changes in the fair value of the assets held in the rabbi trust are recorded through compensation expense included in DS&A and investment gains/losses in Other (income) expense within the Consolidated Statements of Income. During 2019, 2018 and 2017, the change in fair value of the underlying assets was an increase of $3.3 million, decrease of $1.1 million and increase of $2.3 million, respectively.