Restated Previously Issued 2022 Financial Statements | Note 21: Restated Previously Issued 2022 Financial Statements As further described below, as well as in Note 1: Summary of Significant Accounting Policies, the Company identified several prior period misstatements that impacted its unaudited quarterly Condensed Consolidated Financial Information for each of the quarterly periods in 2022. The Company is effectuating the restatement of the unaudited interim condensed consolidated financial information for the third quarter of 2022 as part of filing this report consistent with the amounts disclosed in its 2022 10-K. Refer to the 2022 10-K Note 21: Restated Previously Issued 2021 and 2020 Financial Statements and the (a) - (z) listing of misstatements for further details regarding the nature of the misstatements which have been reflected in the adjustment columns noted below. The (a) - (z) tickmarks in the tables reflect the impact of such errors to the 2022 quarters, which originated in 2021 and prior years. In addition, the errors impacting only the quarterly periods are further detailed in the listing of misstatements (aa) to (ah) below. The following tables present the restated unaudited Condensed Consolidated Financial Information as of the quarter ended September 24, 2022 (in millions of U.S. Dollars, except per share amounts). Description of Quarterly Misstatements Misstatements in the Company’s accounting for its Provision for Income Taxes were as follows: a. Tickmark intentionally omitted. b. A $1.5 million and $3.2 million overstatement of the Provision for income taxes for the three months ended September 24, 2022 and June 25, 2022, respectively, due to misstatements of pre-tax intercompany costs and profits between foreign jurisdictions. c. Tickmark intentionally omitted. d. A $1.8 million overstatement of Income taxes payable for the three months ended June 25, 2022 and a $1.6 million understatement of income within Other comprehensive (loss) income for the three months ended June 25, 2022 resulting from incomplete tax payable rollforwards. e. - i. Tickmarks intentionally omitted. Other pre-tax income statement misstatements that originated in 2021 and prior years were as follows: j. An over/(over)statement of Net sales and an understatement of deferred revenue within Accrued liabilities, due to lack of proper account reconciliations, by $1.3 million, $(0.6) million, and $(0.4) million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. k. A misstatement of value added tax which overstated Selling, general and administrative expense by $0.1 million for the three months ended September 24, 2022, under/(over)stated Non-trade accounts receivable, net by $0.9 million, $(1.1) million, and $(0.3) million, and overstated Accrued liabilities by $0.8 million, $(1.1) million, and $(0.3) million, as of September 24, 2022, June 25, 2022, and March 26, 2022, respectively. l-1. Misstatements related to incorrect accounting for intercompany transactions were: • an over/(under)statement of Cost of products sold and an (over)/understatement of Other assets, net by $(0.7) million, $(2.4) million, and $1.0 million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively; and • an over/(under)statement of Selling, general and administrative expense and overstatement of Other assets, net by $1.1 million, $(2.1) million $(1.3) million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively; m. Tickmark intentionally omitted n. An overstatement of foreign currency exchange income within Other comprehensive (loss) income and understatement of Other (income) expense, net by $12.4 million, $12.9 million, and $6.5 million, for the three months ended, September 24, 2022, June 25, 2022, and March 26, 2022, respectively, for the misstatement of the impact of foreign exchange due to the incorrect long-term designation of certain intercompany loans. o. Other misstatements of Net sales, Cost of products sold, Selling, general and administrative expense, Re-engineering and impairment charges (gains), and Other (income) expense, net, which over/(under)stated Operating income (loss) by $0.9 million, $(2.1) million, and $0.6 million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. t. An understatement of impairment of goodwill within Impairment of goodwill and intangible assets by $3.2 million for the three months ended June 25, 2022 and an overstatement of income within Other comprehensive (loss) income by $0.1 million and $0.3 million for the three months ended September 24, 2022 and March 26, 2022, respectively, due to incorrect data inputs in the goodwill valuation models, which resulted in impairments not recognized or recognized in an incorrect period. Goodwill balance as of September 24, 2022, June 25, 2022, and March 26, 2022 was also overstated due to a $9.0 million understatement of impairment of goodwill within Impairment of goodwill and intangible assets cumulatively for years prior to 2021. u. - y. Tickmarks intentionally omitted. z. The income tax expense related to the pre-tax errors was $0.5 million, $3.8 million, and $0.7 million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. Balance Sheet and Income Statement Misclassifications were as follows: l-2. An under/(over)statement of Inventories and Accrued liabilities by $1.4 million, $(1.8) million, and $(0.2) million, for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively, related to incorrect accounting for intercompany transactions. p. An understatement of Operating lease assets, Accrued liabilities, and Operating lease liabilities by $1.2 million as of September 24, 2022, June 25, 2022, and March 26, 2022, resulting from using incorrect lease periods and useful life for leased automobiles. q. An over/(under)statement of Operating lease assets, Accrued liabilities, and Operating lease liabilities by $0.6 million, $0.9 million, and $(1.0) million as of September 24, 2022, June 25, 2022, and March 26, 2022, respectively, resulting from lease modifications. r. A $0.5 million, $0.7 million, and $0.6 million overstatement of Selling, general and administrative expense and Net sales related to the misclassification of commission expense for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. s. Other balance sheet misclassifications between Accrued liabilities, Accounts payable, Accounts receivable, net, Long-term receivables, net, Long-term pension liabilities, and Prepaid expenses and other current assets, including the misclassification of the funding prepayment for one of the Company’s pension plans within Long-term pension liabilities that impacted all 2022 quarters. Errors impacting the quarterly periods only were as follows: aa. - ab. Tickmarks intentionally omitted. ac. A $27.7 million understatement of Impairment of goodwill and intangible assets in the three months ended September 24, 2022, including a $22.8 million understatement of impairment of goodwill and a $4.9 million understatement of NaturCare trade name impairment. ad. A $0.7 million and $1.3 million understatement of Cash and cash equivalents and Accounts payable during the three months ended June 25, 2022 and March 26, 2022, respectively. ae. Tickmark intentionally omitted. af. Other identified misstatements that were not material, individually or in the aggregate, to the Company’s Condensed Consolidated Financial Statements for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022. ag. A misstatement of the impact of foreign exchange related to certain intercompany short-term loans, which understated foreign currency exchange income within Other comprehensive (loss) income and overstated Other (income) expense, net by $0.4 million, $(1.2) million, and $0.4 million for the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. ah. A misclassification of cash refunds for appreciation of leased cars, which overstated Selling, general and administrative expense and understated Loss (gain) on disposal of assets by $0.3 million in the three months ended September 24, 2022, June 25, 2022, and March 26, 2022, respectively. Statement of Cash Flows Misstatements: ba. Misstatements related to the settlement from net investment hedges resulted in an increase to net cash flow from operating activities and a decrease in net cash flow from investing activities of $4.9 million for the nine months ended September 24, 2022. The Condensed Consolidated Statements of Cash Flows included in this Report includes additional line items in Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: Changes in fair value of economic hedges. Amounts included on this line item were previously reported as part of Changes in assets and liabilities in the Quarterly Reports on Form 10-Q for the quarterly period ended September 24, 2022. This change in the presentation had no net impact on Net cash (used in) provided by operating activities for the quarterly period ended March 26, 2022. bb. Tickmark intentionally omitted. bc. Other misstatements, including errors in the calculation of net cash from discontinued operations, errors in the calculation of the impact of foreign exchange rate on cash, cash equivalents, and restricted cash and errors in the presentation of Net realized and unrealized foreign currency (gains) losses, resulted in the following changes to the Condensed Consolidated Statements of Cash Flows: • $4.2 million increase to net cash flow from operating activities for the nine months ended September 24, 2022. Additionally, amounts previously reported on line items within Change in assets and liabilities and Adjustments to reconcile Net (loss) income to Net cash (used in) provided by operating activities for the quarterly period ended September 24, 2022 have been corrected. These corrections to the line items within Changes in assets and liabilities and Adjustments to reconcile Net (loss) income to Net cash (used in) provided by operating activities had no net impact on Net cash (used in) provided by operating activities for the quarterly period ended September 24, 2022; • $(2.2) million decrease to net cash flow from investing activities in the nine months ended September 24, 2022; • $(2.4) million decrease in Net cash provided by discontinued operations for the nine months ended September 24, 2022; • $0.2 million increase in the Effect of exchange rate changes on cash, cash equivalents and restricted cash for the nine months ended September 24, 2022; • $0.2 million net increase to Cash, cash equivalents and restricted cash at beginning of year for the nine months ended September 24, 2022 related to cash from discontinued operations. bd. Misstatements related to debt resulted in a $23.0 million decrease to Borrowings on Revolver Facility and $23.0 million increase to Repayment of Revolver Facility in the nine months ended September 24, 2022. These misstatements net to $0.0 million within net cash (used in) provided by financing activities. be. A $1.7 million overstatement of Depreciation and amortization in continuing operations and an understatement of net cash (used in) provided by discontinued operations in the Condensed Consolidated Statements of Cash Flows during the nine months ended September 24, 2022. bf. Misstatements related to foreign currency gains on the Company's Euro-denominated term loan resulted in a $22.2 million increase to the Net realized and unrealized foreign currency (gains) losses and an offsetting impact to Changes in assets and liabilities during the nine months ended September 24, 2022. These misstatements net to $0.0 million within net cash (used in) provided by operating activities. Condensed Consolidated Statement of (Loss) Income 13 weeks ended September 24, 2022 (In millions of U.S. Dollars, except per share amounts) As Previously Reported Adjustments As Restated Net sales (j)(r) $ 302.8 $ 0.8 $ 303.6 Cost of products sold (l-1)(af) 106.2 1.2 107.4 Gross profit 196.6 (0.4) 196.2 Selling, general and administrative expense (k)(l-1)(r)(af)(ah) 175.6 (1.9) 173.7 Re-engineering and impairment charges (o) 4.5 0.8 5.3 (Gain) loss on disposal of assets (ah) 0.7 0.4 1.1 Impairment of goodwill and intangible assets (t)(ac) — 27.7 27.7 Operating income (loss) 15.8 (27.4) (11.6) Interest expense 8.3 — 8.3 Interest income (1.3) — (1.3) Other expense (income), net (n)(ag) 1.6 (11.9) (10.3) Income (loss) from continuing operations before income taxes 7.2 (15.5) (8.3) Provision for income taxes (a)(b)(z) 11.0 1.3 12.3 Loss from continuing operations (3.8) (16.8) (20.6) Loss from discontinued operations before income taxes (0.7) — (0.7) Gain on held for sale assets and dispositions 22.6 — 22.6 Provision for income taxes 1.3 — 1.3 Income on discontinued operations 20.6 — 20.6 Net income (loss) $ 16.8 $ (16.8) $ — Basic loss from continuing operations - per share $ (0.09) $ (0.37) $ (0.46) Basic earnings from discontinued operations - per share $ 0.47 $ — $ 0.46 Basic earnings (loss) per share - Total $ 0.38 $ (0.37) $ — Diluted loss from continuing operations - per share $ (0.09) $ (0.37) $ (0.46) Diluted earnings from discontinued operations - per share $ 0.47 $ — $ 0.46 Diluted earnings (loss) per share - Total $ 0.38 $ (0.37) $ — Condensed Consolidated Statement of (Loss) Income 39 weeks ended September 24, 2022 (In millions of U.S. Dollars, except per share amounts) As Previously Reported Adjustments As Restated Net sales (j)(o)(r) $ 991.3 $ (0.9) $ 990.4 Cost of products sold (l-1)(o)(af) 352.0 2.1 354.1 Gross profit 639.3 (3.0) 636.3 Selling, general and administrative expense (k)(l-1)(o)(r)(af)(ah) 565.9 (0.2) 565.7 Re-engineering and impairment charges (o) 13.0 0.8 13.8 Loss on disposal of assets (ah) 2.3 1.0 3.3 Impairment of goodwill and intangible assets (t)(ac) — 30.9 30.9 Operating income (loss) 58.1 (35.5) 22.6 Interest expense 18.9 — 18.9 Interest income (3.2) — (3.2) Other expense (income), net (n)(ag) 6.6 (32.1) (25.5) Income (loss) from continuing operations before income taxes 35.8 (3.4) 32.4 Provision for income taxes (a)(b)(d)(z) 32.6 2.3 34.9 Income (loss) from continuing operations 3.2 (5.7) (2.5) Loss from discontinued operations before income taxes (6.2) — (6.2) Gain on held for sale assets and dispositions 21.4 — 21.4 Provision for income taxes 0.5 — 0.5 Income on discontinued operations 14.7 — 14.7 Net income (loss) $ 17.9 $ (5.7) $ 12.2 Basic earnings (loss) from continuing operations - per share $ 0.07 $ (0.12) $ (0.05) Basic earnings from discontinued operations - per share $ 0.32 $ — $ 0.32 Basic earnings (loss) per share - Total $ 0.39 $ (0.12) $ 0.27 Diluted earnings (loss) from continuing operations - per share $ 0.07 $ (0.12) $ (0.05) Diluted income from discontinued operations - per share $ 0.30 $ — $ 0.30 Diluted earnings (loss) per share - Total $ 0.37 $ (0.12) $ 0.25 Condensed Consolidated Statement of Comprehensive Loss 13 weeks ended September 24, 2022 (In millions of U.S. Dollars) As Previously Reported Adjustments As Restated Net income (loss) $ 16.8 $ (16.8) $ — Total other comprehensive loss (n)(t)(ac)(ag) (31.9) (12.0) (43.9) Total comprehensive loss $ (15.1) $ (28.8) $ (43.9) Condensed Consolidated Statement of Comprehensive Income (Loss) 39 weeks ended September 24, 2022 (In millions of U.S. Dollars) As Previously Reported Adjustments As Restated Net income (loss) $ 17.9 $ (5.7) $ 12.2 Total other comprehensive income (loss) (d)(n)(t)(ac)(ag) 85.8 (31.0) 54.8 Total comprehensive income (loss) $ 103.7 $ (36.7) $ 67.0 Condensed Consolidated Statements of Stockholders’ Deficit Common Stock Treasury Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Deficit (In millions of U.S. Dollars, except share amounts, which are in millions of shares) Shares Dollars Shares Dollars Balance at December 25, 2021 as restated 63.6 $ 0.6 14.7 $ (876.1) $ 216.9 $ 1,145.5 $ (705.6) $ (218.7) Activity, as reported — — 4.4 (37.8) (9.5) (6.8) 85.8 31.7 Adjustments (a)(b)(d)(j)(l-1)(n)(o)(t)(z)(ac)(af)(ag) — — — — — (5.7) (31.0) (36.7) Balance at September 24, 2022 as restated 63.6 $ 0.6 19.1 $ (913.9) $ 207.4 $ 1,133.0 $ (650.8) $ (223.7) Condensed Consolidated Statement of Cash Flows 39 weeks ended September 24, 2022 (In millions of U.S. Dollars) As Previously Reported Reclassifications and Adjustments (1) As Restated Operating Activities: Net (loss) income $ 17.9 $ (5.7) $ 12.2 Less: loss from discontinued operations 14.7 — 14.7 Income (loss) from continuing operations 3.2 (5.7) (2.5) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization (af)(bc)(be) 28.9 (1.1) 27.8 Net realized and unrealized foreign currency (gains) losses (n)(ag)(bc)(bf) 0.8 (49.6) (48.8) Stock-based compensation 4.9 — 4.9 Amortization of deferred debt issuance costs 1.2 — 1.2 Gain (loss) on disposal of assets (ah)(bc) 1.6 1.7 3.3 Provision for credit losses (bc) 6.5 (4.4) 2.1 Write-down of inventories (bc) 5.1 (0.4) 4.7 Impairment of goodwill and intangible assets (t)(ac) — 30.9 30.9 Net change in deferred taxes (a)(b)(z)(bc) 0.1 0.6 0.7 Net cash impact from hedging activity (ba) 0.8 (0.8) — Net cash settlement of economic and cash flow hedges (ba) — 2.9 2.9 Change in fair value of economic hedges (ba) — 1.7 1.7 Hedging Gain (loss) reclassed from accumulated other comprehensive income (ba) — (0.7) (0.7) Other (ah)(bc) (0.3) 0.7 0.4 Changes in assets and liabilities: Accounts receivable (bc) 5.7 2.5 8.2 Inventories (l-2)(o)(bc) (31.5) (0.5) (32.0) Non-trade accounts receivable (k)(o)(bc) (0.6) 0.1 (0.5) Prepaid expenses (o)(s)(bc) (11.4) 3.2 (8.2) Other assets (l-1)(o)(ba)(bc) (8.1) 4.4 (3.7) Operating lease assets and liabilities, net (o)(p)(q)(bc) — (2.0) (2.0) Accounts payable and accrued liabilities (j)(k)(l-2)(o)(s)(ad)(af)(bc)(bf) (53.1) 15.1 (38.0) Income taxes payable (d)(z)(bc) (8.7) 1.2 (7.5) Other liabilities (s)(bc) (10.9) 7.6 (3.3) Net cash (used in) provided by operating activities (65.8) 7.4 (58.4) Investing Activities: Capital expenditures (25.9) — (25.9) Proceeds from disposal of property, plant and equipment 4.1 (2.2) 1.9 Net cash settlement from net investment hedges (ba) — (4.9) (4.9) Net cash used in investing activities (21.8) (7.1) (28.9) Financing Activities: Common stock repurchase (75.0) — (75.0) Cash payments of employee withholding tax for stock awards (1.9) — (1.9) Repayment of term loan (7.1) — (7.1) Net increase in short-term debt 2.0 — 2.0 Condensed Consolidated Statement of Cash Flows 39 weeks ended September 24, 2022 (In millions of U.S. Dollars) As Previously Reported Reclassifications and Adjustments (1) As Restated Borrowings on Revolver Facility (bd) 209.0 (23.0) 186.0 Repayment of Revolver Facility (bd) (188.2) 23.0 (165.2) Debt issuance costs payment (1.4) — (1.4) Finance lease repayments (1.7) — (1.7) Net cash provided by financing activities (64.3) — (64.3) Discontinued Operations Net cash provided by operating activities (be) (4.8) 0.4 (4.4) Net cash used in investing activities 6.9 (1.1) 5.8 Net Cash provided by discontinued operations 2.1 (0.7) 1.4 Effect of exchange rate changes on cash, cash equivalents and restricted cash (12.4) 0.2 (12.2) Net change in cash, cash equivalents and restricted cash (162.2) (0.2) (162.4) Cash, cash equivalents and restricted cash at beginning of year 273.8 0.2 274.0 Cash, cash equivalents and restricted cash at end of period (ad) $ 111.6 $ — $ 111.6 See descriptions of the net (loss) income impacts in the Condensed Consolidated Statement of (Loss) Income. 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