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Types Of Contracts

A contract may relate to virtually any

type of transaction. Contracts may
relate to performance of a service, sale,
or transfer of ownership of property, or
a combination of these types of
transactions. Parties to a contract may
be individuals, partnerships,
corporations, or even governments.
There may be more than two persons
to a contract. With some exceptions,
only the parties making a contract have
rights or duties under the contract.

It is possible for other persons to have

rights and duties with respect to a
contract other than the original parties
to the contract. For example, rights
under a contract may be assigned to a
third person. Also, a contract may be
made for the benefit of a third person
as in a life insurance contract. A life
insurance contract involves the
insurance company, the insured, and
the beneficiary.

A valid contract is a legally-binding

contract that is made in accordance
with all legal requirements. A voidable
contract is an agreement that would be
binding and enforceable except the
circumstances surrounding its
execution, or the fact that one of the
parties lacks capacity, makes the
contract voidable at the option of one of
the parties. For example, a person who
has been forced to sign an agreement
may avoid being bound by the
agreement. A void agreement is an
agreement which is without legal
effect. For example, an agreement
which deals with the performance of an
illegal act is void.

An executed contract is a contract that

has been completely performed.
Nothing remains to be done by either
party. For example, if you go into a
furniture store and agree with the sales-
man to pay $400.00 for a chair and
then pay the salesman cash and take
delivery of the furniture, the contract
has been completely executed. In
an executory contract, something
remains to be done by one or both of
the parties. If a contract is executed
between a seller and a buyer regarding
the purchase of land, and both parties
agree that the sale will be
consummated after the buyer obtains
his loan and the seller gives a
certificate of title (showing no defects),
the contract is enforceable, but it is said
to be executory.

An option contract is a contract that

gives the right to one party to enter into
a second contract with the other party
at a later date. One of the most
common forms of option contracts
deals with the sale of real estate. In
this type of contract, the prospective
buyer will be granted an option to
purchase the property within a specified
period of time. The prospective buyer
will pay the seller a sum of money since
the seller is, in effect, taking the
property off the market during the
option period. If the prospective buyer
exercises his option during that time, a
second contract is entered into
regarding the sale of the property. If
the option period expires, then neither
party has any obligation to the other.
The money paid to the buyer for the
option is retained by the buyer.

The Main Types Of Contracts

Contracts are everywhere; we enter into contracts
everyday without even knowing we did, for
example, putting a coin into the vending machine,
going to the restaurant and taking snacks, buying a
newspaper, taking a bus.
A contract is a legally binding agreement
enforceable in a court of law. However, not every
agreement between two parties is a legally binding
contract. Parties in valid contracts gain rights and
responsibilities; and in case of any arguments, the
courts will make sure that the parties follow these
rights and responsibilities.
There are many types of contracts, but the main ones
Bilateral Contracts
In a bilateral contract both of the parties involved
promise to carry out certain things.
Example: If you sign a contract to buy a used car, for
example, a Black Audi, for 1900, then you have
entered into a bi-lateral contract, with the person
who is selling the car. The seller promised that he
will not sell the car to anyone other than you; and
you have promised to buy the Black Audi and will
hand in the 1900 to the seller. Two promises were
made here; the sellers promise to sell and your
promise to buy, hence Bi-lateral.
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Unilateral Contracts
A Unilateral contract is a contract in which one of
the party (offeror) demands performance from the
other party (offeree), instead of a promise. Since the
offeree makes no promise, he can not be sued for
abandoning or failing to carry out his act; only the
offeror is bound by the law and, therefore, this is a
single-sided contract.
Example: Richard (offeror) offers a reward of 200
for the safe return of his lost cat. The offeree has
made no promises, so he is not obliged to return
Richards lost cat, but if he does, then Richard will
have to pay 200 to the offeree.
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Express Contracts
Express contract is a contract in which the terms of
the contract are stated verbally, either orally or in
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Implied Contracts
Can either be implied in fact or implied in law;
Implied in fact: A contract in which an agreement is
seemingly intended among the parties involved, but
not particularly verbally (in writing).
Example: You go to the doctor for the treatment of
an illness; you and the doctor do not negotiate the
terms of the treatment, how much you will pay or
how the doctor will conduct the examination. You
appreciate that he will do whatever appropriate
examinations to establish the cause of your illness;
and that you will pay fees for the doctors effort.
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Implied-In-Law Contract: This is also known as a
Quasi-Contract. It isnt actually a contract; rather, it
is a way for the courts to rectify situations in which
one party would be unfairly enriched, were they not
obliged to compensate the other party.
Example: At the scene of an accident, a doctor treats
an unconscious patient who has not agreed to pay
the doctor for the emergency services. The patient
was not required to pay the doctor for his services;
and therefore, the patient would be unfairly enriched
by the doctors services.
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Void Contracts
A void contract is an agreement to do illegal things
or it lacks legal elements.
Example: A contract for selling weapons to a
country which has a ban on weapons is a void
contract. None of the parties can enforce the
contract, because if the seller is allowed to collect
the money, then it would encourage further
violations of the law which bans sales of weapons.
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Voidable Contracts
A contract is voidable if one of the parties has the
option to abort the contract; usually in the cases of
Marianne M. Jennings, Foundations of the Legal
Environment of Business, Jan 2009, ISBN: 978-
Simple Contracts
A simple contract is any written or oral agreement
which is not required to be witnessed, signed or
Formal Contracts
This is the complete opposite of a simple contract as
this needs to be written, signed, witnessed and
sealed by the participating parties.
Tax Changes in
2017 You Need To
Know About
May 18, 2017 : Mairye Bates
Whether you work at a full-time job, part-time
gig, or are unemployed, Americans have
unique tax considerations. Whats more, IRS
guidelines are modified from year to year,
creating more worry for taxpayers who want
to stay abreast with current information.
Maybe you worry about the correct way to
track and report your income and expenses,
or perhaps you wonder about the rules for
deducting retirement savings accounts. Or
maybe youre wondering about healthcare
insurance topics. Here are some tax
changes in 2017 that will help you stay on
top of things this upcoming tax season.
For 2017, the IRS has instituted some
changes that you should know about. These
changes apply broadly to all American
Standard Tax Rates

2017 2016
$4,050* $4,050*
$6,350 $6,300
Single, or Married
Filing Separate
deduction Head $9,350 $9,300
of Household
deduction $12,700 $12,600
Married Filing
Earned Income
Credit Maximum $6,318 $6,269
*Subject to phase out for Adjusted
Gross Income starting at $261,500
($314,000 for Married Filing Jointly)

Personal Taxes

Health Insurance
For 2017, the amount used to calculate the
penalty for not maintaining minimum
essential health coverage is $695 or 2.5% of
household income, whichever is higher.
There are no changes to Marketplace
Insurance. Remember, if you are a small
business owner, you may be able to deduct
your health insurance and long-term care
premiums as an above the line deduction
on your personal return, if you meet some
conditions. This means that you are not
limited by the 10% of AGI threshold for
medical expenses. If you provide health
insurance to employees, there is also a tax
credit that you may be eligible for.
Retirement Contributions
TYPE 2017
IRA or Roth** $5,500
over 50
catch up
*May be tax deductible
**Not tax deductible, and
subject to income limits
Business-Related Expenses

The following are tax updates (effective Jan.

1, 2017) for business owners:
Standard mileage rate drops to 53.5 cents
per mile, down from 54 cents for 2016. The
rate for medical and moving mileage drops
to 17 cents per mile, down from 19 cents.
The charitable mileage rate remains at 14
cents per mile.
Bonus depreciation has been extended
through 2019. For 2017 (and 2015 and
2016), it remains at 50%. For 2018, it will
drop to 40% and 30% in 2019. Bonus
depreciation allows you to claim that
percentage of the purchase cost in the year
that the asset is put into service. This can
allow you to have a lower taxable income
that you might when using only regular
depreciation. Youll continue to depreciate
the rest of the cost on a normal schedule.
Section 179 depreciation options have been
made permanent, at least for now, and
indexed to inflation. For 2017, the limit is
$500,000. If purchases exceed $2 million,
there is a dollar-for-dollar phase out, and it is
eliminated above $2.5 million.

Tax Advice

A qualified tax professional can be a great

help for anyone who is self-employed, or
just needs an extra set of eyes on their
taxes. Navigating complicated topics like
depreciation, the home office deduction,
health insurance reporting, or even
retirement contributions can feel daunting,
but with proper planning, things will be much
more manageable.
My daughter is a full-time student, but she
also made money working part-time. Does
she need to file a return?
Learn more about IRS tax rules for full time
students from the tax experts at H&R Block.

Tax Changes You Need to Know for 2017

Updated for Tax Year 2017

Various tax changes inevitably occur from year
to year. These can range from minor
adjustments to the complete elimination of
various tax provisions. The Internal Revenue
Service has released information on a number
of tax changes for the 2017 tax year.
While much is written about the length and
complexity of the U.S. Tax Code, the fact is that
much of it doesn't apply to the average
taxpayer. In reality, taxes can be relatively
straightforward for many individuals.
However, you should be on the lookout for the
various tax changes that inevitably occur from
year to year. These can range from minor
adjustments to the complete elimination of
various tax provisions. The Internal Revenue
Service has released information on a number
of tax changes for the 2017 tax year. (Dont
worry. When you use TurboTax, youll always
be up-to-date with the latest tax laws.)

Inflation adjustments

Inflation increases the cost of goods and

services for consumers. To ensure that
American taxpayers keep pace with the rising
costs of inflation, the IRS periodically adjusts
the value of certain deductions and exemptions.
With rising deductions and exemptions, you get
to protect more of your money from becoming
taxable income.
For tax year 2017, the IRS increased the value
of some different tax benefits, while leaving
some the same as last year:
Personal and dependent exemptions remain
The standard deduction rises to $6,350 for
single, $9,350 for head of household, and
$12,700 for married filing jointly
The maximum earned income tax credit
rises to $6,318
The maximum income limit for the EITC
rises to $53,930
The foreign earned income deduction rises
to $102,100
Annual deductible amounts for Health
Savings Accounts increases for individuals
to $3,400 but with no change for families
The estate and gift tax exclusion rises to
According to Jeff Gonzalez, a CPA and the
CFO of Los Angeles-based Electric
Entertainment, "Inflation adjustments can be a
big thing. They don't come every year, but when
they do, they translate into additional money in
your pocket."

New foreign financial disclosures

One of the latest tax buzzwords is "offshore

accounts," as the IRS has begun taking a closer
look at the foreign holdings of American
citizens. During the transitional tax year of
2011, only certain taxpayers had to make
foreign disclosures to the IRS. As of 2012 and
beyond, all taxpayers who meet the minimum
threshold, which varies by tax-filing and
residence status, must comply.
"If your overseas assets don't exceed $50,000,
you don't have to worry about the new rules,"
says Gonzalez. "Above that amount, check the
IRS reporting limits, which may change from
year to year in the future."
For U.S. residents, you have to file information
about your foreign holdings if they exceed
$50,000 at year-end, if you're a single filer.
Foreign holdings exceeding $75,000 at any
time during the year must also be reported. For
joint filers, the limits rise to $150,000 at any
time, and $75,000 at year-end.
For U.S. citizens living abroad, the reporting
limits rise dramatically. Single filers need only
report accounts exceeding $200,000 at year-
end, or $300,000 at any point during the year.
For joint filers, the limits are $400,000 at year-
end, or $600,000 at any time during the year.
The above requirements for filing Form 8938 do
not take the place of the obligation to file an
FBAR (Foreign Bank Account Report, Treasury
Form TD F 90-22.1) to report a financial interest
in or signature authority over a foreign financial
Tax increases

2017 continues with the following tax increases

started in 2013:
An additional tax bracket has been added
for individuals with taxable income greater
than $400,000 and joint filers with taxable
income over $450,000
Tax on long-term capital gains is increased
from 15 to 20 percent for individuals with
taxable income greater than $400,000 and
joint filers with taxable income over
3.8 percent Medicare surtax on the lesser of
net investment income or modified adjusted
gross income above $200,000 for
individuals and $250,000 for joint filers.
Additional Medicare payroll tax of 0.9
percent on earned income above $200,000
for individuals and $250,000 for joint filers.
Other changes that will increase taxes

The threshold for unreimbursed medical

expenses increased from 7.5 percent to 10
percent of Adjusted Gross Income (AGI) for
most taxpayers in 2014. There was a temporary
exemption from Jan. 1, 2013 to Dec. 31, 2016
for individuals age 65 and older and their
spouses. As of 2017, all taxpayers are subject
to the 10percent threshold.
While not labeled as tax increases by the IRS,
the following will increase the amount of taxes
due on single filers with (AGI) greater
than $250,000 and joint filers with AGI greater
than $300,000:
Personal exemption phaseout - for every
$2,500 of AGI above these income limits,
the $4,050 (2017) per-person personal
exemption will be reduced by 2%. Personal
exemption will be fully phased out for
individuals with AGI greater than $384,000
and joint filers with AGI greater than
Itemized deduction phaseout - reduces
itemized deductions by 3% of the AGI
above the limits (for 2017, that threshold is
$313,800 for married couples filing jointly
and $287,650 for single filers) to a
maximum reduction of 80%.

Tax Law Changes That Can Fatten Your


Updated for Tax Year 2017

Here are some recent changes in the tax law
with an explanation of how much they can save
you money.
In recent years Congress made a number of
adjustments to the tax code, most of them
designed to reduce Americans tax bills. When
reviewing your taxes, be sure to take these
changes into account:
1. The American Opportunity Tax Credit
Impact: Taxpayers with education expenses
This tax break expands the Hope credit, which
goes to people who pay college-related costs
for themselves, a spouse or a child, or another
dependent. You can receive a credit for up to
$2,500 in tuition and related expenses, such as
course materials, depending on your income
and filing status.
Heres how it works: You get a credit for 100%
of the first $2,000 you spend on post-secondary
education. After that, you can claim a credit of
25% of the next $2,000. The American
Opportunity Credit is partially refundable, so if
the credit reduces the taxes you owe below
zero, you can receive up to $1,000 in the form
of a refund.
This once temporary credit has now been made
2. Alternative minimum tax (AMT) changes
Impact: Some middle-to high-income taxpayers
In early 2013, Congress made the AMT patch
permanent to prevent millions of taxpayers from
having to pay AMT in 2013 and beyond. The
exemptions for 2017 are:
$54,300 for single and head of
household filers
$84,500 for married couples filing jointly and
qualifying widow(er)s
$42,250 for married people filing separately
These amounts are indexed for inflation for
future tax years.
3. Energy-efficiency credits
Impact: Taxpayers who installed alternative
energy equipment
If you installed alternative energy equipment
including hot water heaters, solar electric
equipment and wind turbines in your home, you
may be able to claim a credit worth 30% of the
expense. The credit is not refundable but any
excess can be carried forward to future tax

2016 Tax Changes

FS-2017-01, January 2017

Three Extra Days to File and Pay
Taxpayers will have until Tuesday, April
18, 2017 to file their 2016 returns and pay
any taxes due. Thats because of the
combined impact of the weekend and a
holiday in the District of Columbia. The
customary April 15 deadline falls on
Saturday this year, which would normally
give taxpayers until at least the following
Monday. But Emancipation Day, a D.C.
holiday, is observed on Monday, April 17
giving taxpayers nationwide an additional
day. By law, D.C. holidays impact tax
deadlines for everyone in the same way
federal holidays do. Taxpayers requesting
an extension will have until Monday, Oct.
16, 2017 to file.
Refunds Delayed for Some Taxpayers
A law change that went into effect this
year requires the IRS to hold refunds on
tax returns claiming the Earned Income
Tax Credit (EITC) or Additional Child Tax
Credit (ACTC) until at least Feb. 15. Still,
even with this change, the fastest way to
get a refund is to file electronically and
choose direct deposit. Even though the
IRS will begin releasing EITC and ACTC
refunds on Feb. 15, many early filers will
still not have actual access to their
refunds until at least the week of Feb. 27.
The additional delay is due to several
factors including the time needed by
banks to process direct deposits.
Under this change, required by the
Protecting Americans from Tax Hikes
(PATH) Act, the IRS must hold the entire
refund even the portion not associated
with the EITC and ACTC. This change
helps ensure that taxpayers get the
refund they are owed by giving the IRS
more time to help detect and prevent
fraud. Taxpayers should file as usual, and
tax return preparers should submit returns
as they normally do. Beginning a few
days after Feb. 15, affected taxpayers can
check the status of their refund by visiting and clicking on Where's
My Refund? Or using the IRS2Go mobile
Renew ITIN Soon to Avoid Refund
Many Individual Taxpayer Identification
Numbers (ITINs) expired on Jan. 1, and
affected taxpayers should act soon to
avoid refund delays and possible loss of
eligibility for some key tax benefits until
the ITIN is renewed. An ITIN is used by
anyone who has tax-filing or payment
obligations under U.S. law but is not
eligible for a Social Security number.
Under a PATH Act change, any ITIN not
used on a tax return at least once in the
past three years has expired. Also now
expired is any ITIN with middle digits of
either 78 or 79 (9NN-78-NNNN or 9NN-
It can take up to 11 weeks to process a
complete and accurate ITIN renewal
application. For that reason, the IRS
urges anyone with an expired ITIN
needing to file a return this tax season to
submit their ITIN renewal application
soon. ITIN renewal applicants can get
help by visiting, consulting a
Certified Acceptance Agent or
Acceptance Agent or making an
appointment at an IRS Taxpayer
Assistance Center (TAC).
Olympic Medals and Prize Money Now
Tax-Free for Most Olympians
Starting in 2016, most Olympic and
Paralympic winners qualify for a new tax
benefit. To qualify, the taxpayers
adjusted gross income (AGI) must be $1
million or less ($500,000 or less, if
married filing separately. For these
taxpayers, the value of Olympic and
Paralympic medals and the amount of
United States Olympic Committee
(USOC) prize money is not taxable.
These amounts are shown in Box 3 on
Form 1099-MISC. See the Form 1040
instructions for Lines 21 and 36 for details
on how to report.
ABLE Accounts Now Available for
Some People with Disabilities
States are now offering specially
designed, tax-favored ABLE accounts to
people with disabilities who became
disabled before age 26. Originally
authorized in legislation enacted in late
2014, these special accounts first became
widely available during 2016. Recognizing
the special financial burdens faced by
families raising children with disabilities,
ABLE accounts are designed to enable
people with disabilities and their families
to save for and pay for disability-related
Contributions totaling up to the annual gift
tax exclusion amount -- $14,000, in both
2016 and 2017 -- can generally be made
to an ABLE account each year. Though
contributions are not deductible,
distributions are tax-free if used to pay
qualified disability expenses. See the Tax
Benefit for Disability page for more
Standard Mileage Rates Revised
The standard mileage rates for the use of
a car, van, pickup or panel truck are:
54 cents per mile for business miles
driven in 2016, down from 57.5 cents
in 2015. For those planning ahead, the
2017 rate, for use on a 2017 return
filed next year, is 53.5 cents per mile.
19 cents per mile driven for medical or
moving purposes in 2016, down from
23 cents in 2015. The 2017 rate is 17
14 cents per mile driven in service of
charitable organizations. This rate is
set by law and is unchanged.
The tax instructions have details on taking
advantage of each of these provisions.
New Self-Certification Available for
Missed Rollover Deadline

Beginning Aug. 24, 2016, a taxpayer who

inadvertently fails to properly complete a
tax-free rollover of a distribution from an
IRA or workplace retirement plan to
another eligible retirement program can
often qualify to use a new self-certification
procedure. Under the procedure, eligible
taxpayers, encountering a variety of
mitigating circumstances, can qualify for a
waiver of the 60-day time limit and avoid
possible early distribution taxes. Normally,
an eligible distribution from an IRA or
workplace retirement plan can only qualify
for tax-free rollover treatment if it is
contributed to another IRA or workplace
plan by the 60thday after it was received.
Previously, in most cases, taxpayers who
failed to meet the time limit could only
obtain a waiver by requesting a private
letter ruling from the IRS.
Now, a taxpayer who missed the time limit
ordinarily qualifies for a waiver if one or
more of 11 circumstances apply to them.
They include a distribution check that was
misplaced and never cashed, the
taxpayers home was severely damaged,
a family member died, the taxpayer or a
family member was seriously ill, the
taxpayer was incarcerated or restrictions
were imposed by a foreign country.
Ordinarily, the IRS and plan
administrators and trustees will honor a
taxpayers truthful self-certification that
they qualify for a waiver under these
circumstances. Moreover, even if a
taxpayer does not self-certify, the IRS
now has the authority to grant a waiver
during a subsequent examination. Further
details, including a sample self-
certification letter that a taxpayer can use
to notify the administrator or trustee of the
retirement plan or IRA receiving the
rollover that they qualify for the waiver,
can be found in Revenue Procedure
2016-47, posted on

The IRS encourages eligible taxpayers

wishing to transfer retirement plan or IRA
distributions to another retirement plan or
IRA to consider requesting that the
administrator or trustee make a direct
trustee-to-trustee transfer, rather than
doing a rollover. Doing so can avoid some
of the delays and restrictions that often
arise during the rollover process. For
more information about rollovers and
transfers, check out the Can You Move
Retirement Plan Assets? section in
Publication 590-A or the Rollovers of
Retirement Plan and IRA
Distributions page on
New Deadline for Reporting Foreign
The deadline for filing the annual Report
of Foreign Bank and Financial Accounts
(FBAR) is now the same as for a federal
income tax return. This means that the
2016 FBAR, Form 114, must be filed
electronically with the Financial Crimes
Enforcement Network (FinCEN) by April
18, 2017. FinCEN will grant filers missing
the April 18 deadline an automatic
extension until Oct. 16, 2017 to file the
FBAR. Specific extension requests are
not required. In the past, the FBAR
deadline was June 30 and no extensions
were available.
In general, the filing requirement applies
to anyone who had an interest in, or
signature or other authority over foreign
financial accounts whose aggregate value
exceeded $10,000 at any time during
2016. Because of this threshold, the IRS
encourages taxpayers with foreign assets,
even relatively small ones, to check if this
filing requirement applies to them. The
form is only available through the BSA E-
Filing System website.
Tax Law Changes That Take Effect in 2017
Some Significant Tax Law Changes Take Effect in 2017

Inflation-Related Adjustments

Lets start with the easy adjustments that

pretty much occur every year. Many federal
tax provisions are indexed for inflation,
which means they can increase or decrease
automatically as one year rolls over into the
next. Others change when Congress steps in
to adjust them to keep pace with the current
economic climate. In either case, these are
the basic adjustments for 2017.
President Trumps sweeping tax changes
regarding tax brackets and the standard
deduction had not yet happened by mid-
year. Tax brackets remain the same at 10,
15, 25, 28, 33, 35 and 39.6 percent. The
only really significant change here relates
to who falls into that 39.6 percent tax
bracket. As of 2017, the income limits
increase from $415,050 to $418,400 for
single taxpayers, and from $466,950 to
$470,700 for married taxpayers who file
joint returns. Taxpayers with incomes over
these thresholds fall into the current highest
tax bracket. The limits for the other tax
brackets remain in the $50 range thanks to
a modest inflation rate, and $100 for those
who are married and filing jointly.
Standard deduction amounts increase
marginally, too literally just $50 in most
cases. Theyre set at $6,350 for single
taxpayers and married taxpayers filing
separate returns, at $12,700 for those who
are married and filing jointly, and at $9,350
for those who qualify as head of household.
The personal exemption amount stays stuck
at $4,050 in 2017, although the income
thresholds for qualifying for being able to
take it have changed. The phase-out begins
at adjusted gross incomes of $261,500 in
2017 if you have this much income, you
cant claim the entire exemption. Its
eliminated entirely for those with AGIs of
$384,000 or more.

The Obamacare Tax Penalty

Martin Barraud / Getty Images

Theres been some big news with regard to
that Obamacare tax penalty that hits
taxpayers who decline to carry health
insurance. Yes, the Affordable Care Act is
still in effect. The Trump administration
has not yet changed that. But one of
Trumps first official acts as president was
to sign an executive order that began
whittling away at its tax impact on
It used to be that taxpayers had to indicate
on line 61 of their 1040 tax returns whether
they had insurance during the tax year or if
they qualified for an exemption. The IRS
intended to automatically reject returns
received in 2017 if this line was left blank.
In other words, addressing it was
Thats not going to happen now thanks to
President Trumps executive order
directing that government agencies
exercise authority and discretion available
to them to reduce potential burden The
IRS responded by issuing a statement that it
would not automatically reject returns with
blank lines 61, although it cautioned that
those who dont carry insurance still owe
the penalty. The big difference here is that
the IRS is going to have to work a good bit
harder to figure out who had insurance and
who didnt. Completing line 61 is now

The Itemized Medical Expense Deduction Threshold

Adam Berry / Stringer/Getty Images

Now for the bad news. Youve historically
been able to claim a tax deduction for
medical expenses you must pay, including
health insurance premiums, if you elect to
itemize on your tax return. At one point,
you could deduct expenses that exceed 7.5
percent of your AGI, then the Affordable
Care Act changed that to 10 percent for
everyone except taxpayers age 65 or older.
They remained at the 7.5 percent rate
through the end of 2016. Beyond that time,
they would also be subject to the 10 percent
Congress floated House Bill 3590 in late
2016 in an effort to prevent this.
Additionally, H.R 3590 would have
returned everyone else to the 7.5 percent
rate as well. Alas, the bill passed the House
but not the Senate. As of 2017, everyone is
subject to that 10 percent threshold.

The Mortgage Insurance Premium Deduction

Tetra Images/Getty Images

It used to be that you could claim a tax
deduction for mortgage insurance
premiums if you itemized, but no more.
That deduction has been eliminated as of
2017. The Protecting Americans from Tax
Hikes Act extended it for just one more
year in 2015, so its now expired. Congress
can still take action to renew it, however, so
stand by.

The Above-the-Line Tuition and Fees Deduction

The tuition and fees deduction is another
that expired at the end of 2016, and this
was a particularly nice one. You didnt
have to itemize to claim it it came off
your taxable income as an adjustment to
income above the line on the first page of
your 1040 tax return. You could take
it and take the standard deduction or
itemize other deductions. It helped to
determine your AGI, which several tax
break phase-outs are subject to.
Unfortunately, its been eliminated
beginning in 2017. You can no longer take
a deduction for tuition or qualified fees you
pay on behalf of yourself or your
dependents. The American Opportunity
Tax Credit and the Lifetime Learning Tax
Credit are still available but are subject to
phase-out limits and some other restrictions
that prevent all taxpayers from claiming
them. Everyone could claim the tuition and
fees deduction, however, even if they didnt
qualify for the credits but not anymore.

Discharge of Foreclosure Indebtedness

Jeff Randall / Photodisc / Getty Images

Another big change is the elimination of the
tax code provision that allowed taxpayers
to discharge indebtedness related to home
foreclosure. Foreclosure has historically
been treated as a taxable event. Taxpayers
are obligated to report and pay taxes on
forgiven debt, so if foreclosure wipes out
your $100,000 mortgage, you would have
to report that amount as income.
The qualified principal residence
indebtedness exclusion prevented this from
happening. It permitted taxpayers to
exclude up to $2 million in forgiven debt
based on the extent of their insolvency just
before foreclosure the extent by which
their overall indebtedness exceeded the
overall value of their assets.
As of mid-year 2017, this tax break is gone,
too, at least for the most part. If you entered
into a binding written foreclosure
agreement in 2016, you can still claim the
exclusion for this amount in 2017, but not

The Earned Income Tax Credit

Image taken by Mayte

Torres/Moment/Getty Images
Relax the earned income tax credit
has not been eliminated, although there are
a couple of changes here as well. The
PATH Act prevents the IRS from sending
out refunds to anyone claiming this tax
credit or the Additional Child Tax Credit
until February 15 each year beginning in
2017. The idea is that this gives the IRS
some time to investigate fraudulent claims
for these credits. You may have already
come up against this change if you claimed
either of them for the 2016 tax year and you
filed your return as soon as possible only to
wait and wait for your refund. This delay is
not a one-time event. The PATH Act
requires it going forward beginning January
1, 2017.
The good news is that the maximum EITC
goes up to $6,318 in 2017 for married
taxpayers with three or more qualifying
children if they file a joint return, and other
eligible taxpayers will see a slight increase
in 2017 as well.
Take Heart
Its not entirely out of the question that
some of these tax perks will return as 2017
progresses or in future years. President
Trump has vowed to make significant
changes to the existing tax code and many
of these benefits fall into the realm of
putting cash back into middle- and lower-
income taxpayers pockets something
hes said he wants to do. But for now,
some taxpayers will find themselves paying
a little more in 2017 due to these changes.
How Might The
Proposed Tax
Law Changes
Affect Your
Household Tax?
Let's Look At
Some Examples

-The House Ways and Means and

the Senate have put forth their
proposals to dramatically change the
tax code.

-Proposed changes will affect

individuals, small business owners,
large businesses and company

-This article looks only at the

individual household.

New Tax Law Changes

The 2017 legislative session resulted in a number of
changes to Minnesota tax laws. We are updating our
website and other materials to reflect these changes.
Use the links below to get the latest updates about
specific taxes or topics. We are updating this list as
new information is available.
o Accelerated recognition of certain installment sale gains
o Angel Investment Credit Sunset
o Beginning Farmer Incentive Credit
o Beginning Farmer Management Credit
o Child and Dependent Care Credit Changes
o Credit for Attaining Masters Degree in Teachers Licensure
o Credit for Taxes Paid to Wisconsin
o Discharge of Indebtedness for Education Loans Subtraction
o Federal Conformity
o First-time Homebuyer Savings Account
o Greater Minnesota Internship Credit Repealed
o Political Contribution Refund
o Property Tax Refund Modification
o Residency
o Section 529 Plan Credit
o Section 529 Plan Recapture Tax
o Section 529 Plan Subtraction
o Social Security Benefit Subtraction
o Student Loan Credit
o Working Family Credit Changes
Tax Professionals
What is
Tax Reform for Acceleration and Inclusion
The goal of the first package of the Comprehensive Tax Reform
Program (CTRP) or TRAIN is to create a more just, simple, and
more effective system of tax collection, as per the constitution,
where the rich will have a bigger contribution and the poor will
benefit more from the governments programs and services.

Lowering the Personal Income Tax (PIT)

Simplifying the Estate and Donor's Tax
Expanding the Value-Added Tax (VAT) Base
Increasing the Excise Tax of Petroleum Products
Increasing the Excise Tax of Automobiles
Introducing the Increase the Tax of Sugar-Sweetened Beverages
Tupperware Brands
From Wikipedia, the free encyclopedia

Tupperware Brands Corporation


Type Public

Traded as NYSE: TUP

S&P 400 Component

Industry Consumer Products, Direct

selling, Household goods

Founded 1946

Headquarters Orlando, Florida, United


Key people Rick Goings, Chairman and


Products Food Storage, Kitchen

Preparation, Serving,
Microwave, On-the-Go,
Baking, Cookware,
Cutlery, cosmetics, personal
care products

Revenue $2,300.4 million (2010) [1]

Operating US$ 326.5 million (2010)[1]

Net income US$ 225.6 million (2010)[1]

Total assets US$ 2,015.8 million (2010)[1]

Total equity US$ 789.8 million

(shareholders' equity) (2010)[1]

Number of 13,500 (2010) [1]



Tupperware Brands Corporation, formerly Tupperware Corporation, is an

American multinational direct salescompany.
The company was ranked equal # 2 in Fortune's Most Admired Home equipment and furnishings


3See also
5External links
Tupperware Brands Corporation was founded as The Tupperware Company in 1946 in South
Grafton, Massachusettsby Earl Tupper. In 1958, Tupper sold The Tupperware Company for $16
million to Rexall and the company's headquarters were moved to Orlando, Florida. In December
2005, Tupperware Corporation changed its name to Tupperware Brands Corporation to reflect the
company's increasing product diversity.[citation needed]
Since 1997, Tupperware has been directed by Rick Goings.[3]
A decade after starting business in the United States, Tupperware expanded into Europe. By 1965,
the company had a presence in six European countries and then launched in Singapore, Japan and
Australia. Tupperware also had sales offices in Africa and Latin America before 1970. After that,
Tupperware Brands expanded to almost 100 countries around the world under seven brands
connected to it: the brands Tupperware, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics
and Nuvo.[4] In 2008, due to its success in developing the brand's name in China, India and
Indonesia, Tupperware received awards for "Most Favored Brand by Women" and "Company with
the Best Corporate Face."[5]

See also[edit]
Earl Tupper
Brownie Wise
Rick Goings


1. ^ Jump up to:a b c d e f "Form 10-K Annual Report". Tupperware

2. Jump up^ Most Admired Industries, CNN, 2010.
3. Jump up^ Hope, Katie (2017-02-15). "Tupperware: How the
1950s party model conquered the world". BBC News.
Retrieved 2017-08-12.
4. Jump up^ "Tupperware Brands | Worldwide Presence".
Retrieved 5 December 2011.
5. Jump up^ "Tupperware Receives Coveted Awards for Top
Brand Recognition in Three Markets".
External links[edit]
Official Tupperware Brands website
Tupperware Brands Corporation - Company
Profile, Information, Business Description,
History, Background Information on
Tupperware Brands Corporation

14901 South Orange Blossom Trail


Company Perspectives
Tupperware is one of the most trusted names in
housewares. We offer the highest quality products, with
the finest design features to meet your special needs.
Whether it's getting a good, hot meal on the table at the
end of a busy day, toting a nutritious lunch to work, or
taking time to learn a new baking secret with your
children--Tupperware makes it all possible.
History of Tupperware Brands Corporation
Tupperware Brands Corporation, whose well-known
Tupperware parties have spread to more than 100
countries, is one of the largest direct sellers in the
world. Relying on independent consultants rather than
employees for sales in most markets, the company
generates more than $1 billion in revenues a year.
Although plastic food storage containers have been
Tupperware's mainstay for decades, in the 1990s the
company expanded into kitchen tools, small
appliances, and baby and toddler products. In 2000,
beauty products became a new avenue for growth.
Though Tupperware is known as an icon of postwar
American life, U.S. sales declined steadily in the 1980s
and 1990s at the same time international sales
expanded, with the result that more than 85 percent of
company revenues were coming from international
business by the mid-1990s. Headquartered in Florida,
the company has just one domestic manufacturing
facility, in Hemingway, South Carolina. The company
identifies itself with its direct marketing channel. Its
sales force, after the acquisition of Sara Lee's direct-
sales cosmetics business in 2005, numbered about two
million independent representatives worldwide.
Company Origins
Company founder Earl Tupper was an early plastics
pioneer and ambitious entrepreneur. An early tree
surgery venture failed in 1936. The self-educated
young inventor then found work at Doyle Works, a
subcontractor for DuPont Co. By 1938 Tupper was
ready to strike out on his own and devote himself to
research in plastics. That year he started his own
company, Earl S. Tupper Co., leaving DuPont with only
his experience and a discarded piece of polyethylene,
remains from the oil refining process that no one had
yet manipulated into a practical form. Tupper's fledgling
company kept afloat by making plastic parts for gas
masks in World War II, although Tupper continued to
pursue his research with polyethylene. Tupper modified
his own refining process, searching for more useful and
appealing forms of plastic.
By 1942 Tupper had developed a plastic that was both
durable and safe for food storage. The lightweight,
flexible, and unbreakable material was also clear,
odorless, and nontoxic. Tupper dubbed the new
material Poly-T, and he further refined the product over
the next few years. In 1946 he founded a new
company, Tupperware, and began manufacturing food
storage and serving containers with Poly-T. The
containers were enhanced the following year with the
unique Tupperware seal, an innovation that consumers
would find useful well into the future. Tupper had gotten
the idea for the airtight seal from a paint can lid.
Although Tupper quickly found department and
hardware stores to carry his product, customers were
harder to come by. Consumers were unfamiliar with the
benefits of the new material and did not know how to
operate the seal. Sales finally took off in the late 1940s
when a few direct sellers of Stanley Home Products
added Tupperware to their demonstrations. The
products flourished with the direct selling approach
because salespeople could explain the benefits of the
plastic and personally demonstrate the seal to
consumers. In addition, Stanley Home Products
salespeople did not sell door to door, but rather sold
their products at home parties. This method was
particularly suited to Tupperware sales
because homemakers felt they were getting advice
from other homemakers who actually used the
Expansion: 1950-70
The most successful early direct seller of Tupperware
was Brownie Wise, a Detroit secretary and single
mother. Tupper hired her in 1951 to create a direct
selling system for his company. Within a few months
Tupper had established the subsidiary Tupperware
Home Parties, Inc. and had abandoned selling his
products through retail stores. Wise's home party
system used a sales force of independent consultants
who earned a flat percentage of the goods they sold
and won incentives in the form of bonuses and
products. Wise, together with Gary McDonald, another
Stanley veteran, created the Tupperware Jubilee, an
annual sales convention that became famous and
provided a format for the conventions of numerous
direct-selling companies.
Sales skyrocketed, multiplying 25 times within three
years. By the late 1950s Tupperware had become a
household name. With almost no advertising,
Tupperware had created phenomenal brand
awareness. The company's rapid success can be
attributed to its recruitment of almost 9,000
independent consultants by 1954, most of them
women, and their enthusiastic spread of Tupperware
Tupperware home parties provided an easy entree into
the workforce for women. Able to schedule the parties
around their home and family responsibilities, women
could earn extra cash and get together with friends and
neighbors at the same time. In addition, the home party
plan provided a milieu in which women were trusted as
salespeople, unlike door-to-door sales, where women
were not accepted at the time.
In 1958 Wise resigned from her vice-president position
and Tupper sold the company to Rexall Drug. Despite
the change in management the company continued to
thrive. Throughout the 1960s and 1970s sales and
earnings doubled every five years. The company had
grown not only in the United States but also had
entered and thrived in several foreign countries.
Tupperware's first venture outside the United States
was to Canada in 1958. Tupperware parties were soon
being thrown in Latin America, Western Europe, and
Japan. International sales became a significant source
of revenue for Tupperware in the 1970s, and Rexall
Drug, which had become Dart Industries, had changed
the subsidiary's name to Tupperware International.
Slipping Sales in 1983
Sales exceeded the half billion dollar mark in 1976.
Four years later Dart Industries and Kraft Inc. merged,
and the newly formed company looked to subsidiary
Tupperware International to fuel its growth.
Tupperware's growth slowed in the early 1980s,
however, and by 1983 the subsidiary had cut 7 percent
from its sales and lost 15 percent from its earnings.
Several factors contributed to the slip in sales and
earnings. Competition had increased from Rubbermaid
Inc., Eagle Affiliates, and other retail companies. In
addition, an economic recovery had allowed many part-
time sales people to find full-time work elsewhere, and
the movement of women into the workforce had dried
up the company's source for part-time labor and limited
the time many women had to attend parties. The
company exacerbated the labor problem, however, by
not enticing people with higher commissions and by
lowering the quality of their bonus prizes.
Sales continued to fall, slipping 6 percent in 1984, from
$827 million to $777 million. Even worse, earnings
plummeted 27 percent, to $139 million. The following
year was no better; sales dropped to $762 million and
earnings declined to a mere $96 million. Tupperware
finally took action, bringing in a new management team
in 1985. K. Douglas Martin took over as president of
Tupperware USA, and Dart and Kraft moved William L.
Jackson from the company's Duracell battery division
to the chairmanship of Tupperware. Having made
significant improvements in the Duracell division,
Jackson was expected to help turn Tupperware around.
Jackson immediately made several changes. To bolster
slipping party attendance, he loosened the rules
governing parties and allowed adaptations to the
parties that would appeal to working women, such as
shorter parties and parties thrown at the workplace. In
addition, Jackson worked to improve Tupperware's
training of its salespeople and eliminated any bonuses
and sales incentives that appeared ineffective. Over the
next couple of years Jackson instituted further
changes. The company introduced its first catalog,
which was sent out only in response to requests made
to its toll-free number. In addition, national print and
television advertising was stepped up to help
counteract competition from Rubbermaid and other
retail product lines. To improve the company's delivery
speed, Tupperware built several new warehouses and
a large distribution center.
New products in the mid-1980s helped boost both sales
and company morale. In 1985 Tupperware introduced
Ultra 21, a line of cookware to which market research
had shown consumers would respond favorably. The
company's new microwave cookware did very well and
by 1987 had shown significant growth. Other products,
including the company's traditional storage containers,
struggled merely to maintain their sales figures.
Uneven Recovery in 1986
In 1986 Dart and Kraft reversed their ill-fated merger.
Dart renamed itself Premark International Inc., and
former Kraft president Warren Batts took over as chair
and chief executive officer. Tupperware apparently
responded well to the change. Although the subsidiary
posted a $58 million loss in 1986, its profits rose 48
percent in 1987.
Progress at Tupperware was uneven over the next
several years. Sales in the United States continued to
decline, although international business grew steadily.
As a result, the proportion of U.S. to international sales
gradually shifted until international sales accounted for
more than half the company's revenues in 1992. That
year, Tupperware's operations in the United States
reported a loss of $22 million. In another management
shift, Rick Goings, executive at direct sales leader
Avon, took over as president of Tupperware in 1992.
In an effort to halt the decline in U.S. earnings,
Tupperware cut costs and stepped up its sales force
recruiting efforts. In addition, the company moved into
direct mail, for the first time sending out unsolicited
catalogs in 1992. Sales representatives provided
names and addresses and paid Tupperware 65 cents
for each catalog sent to one of their customers. Catalog
customers then bought directly from their sales
representatives. The company saw the catalog as yet
another way to entice busy working women back into
the Tupperware fold.
In 1993 the company was again enjoying profits in the
United States, with earnings that year at $12.5 million.
Sales also continued to grow internationally, helping
improve the company's image on Wall Street. Shares
of Premark International rose from $48 at the beginning
of 1993 to $88 at the end of the year, due in large part
to Tupperware's recovery.
Overall sales continued to improve in the mid-1990s, in
part fueled by massive product introductions.
Tupperware brought out approximately 100 new
products between 1994 and 1996, including entire new
product lines and specialty items catering to particular
needs internationally, such as Kimono Keepers in
Japan. As had been the case for the 1980s,
international sales growth outstripped that in the United
States. Sales in the Far East and Latin America
boomed, while sales in the United States improved
slowly. As a result, by 1996, Tupperware relied on
international business for 85 percent of its revenues
and 95 percent of its profits.
Independence in 1996
Tupperware's finances continued to improve. By 1996
sales had reached 1.4 billion with earnings of $235
million. Premark International's food equipment and
decorative product businesses were not faring quite as
well: $2.2 billion in sales resulted in $168 million in
earnings. Premark shares were trading well below
competitors as a result, and management felt
Tupperware was being held back by the company's
other businesses. Consequently, in May 1996, Premark
International spun off Tupperware, making it an
independent public company. Premark shareholders
received one share of Tupperware stock for each
Premark share they held.
Wall Street responded positively to the spinoff;
Tupperware shares began trading at $42 and soon
rose to $55. Certain analysts sang the company's
praises, including David Boczar, who told Financial
World, "There is a perception of higher quality with
Tupperware as well as the multifunctionality of the
products, and also the nature of the distribution." He
felt that the long-term prospects for the newly
independent company were good.
The steady improvement in sales and earnings in the
mid-1990s faltered in 1997. Revenues declined from a
high of $1.37 billion in 1996 to $1.23 billion in 1997.
Earnings plummeted 53 percent, from $175 million in
1996 to $82 million in 1997. Several factors had
contributed to the decline. Domestically, a change in
the company's sales plan led to a loss in its vital sales
force. Quite a few sales representatives left
Tupperware when the company raised the level of
sales needed to qualify for a company minivan.
Tupperware later renewed its recruiting efforts by
offering subcompact company cars to sales
Internationally, the Asian economic crisis significantly
affected Tupperware's performance, which relied on
Japan alone for 12 percent of its sales in 1996. In
addition, a third party vendor delayed Tupperware's
delivery of products to its Japanese sales
representatives, causing a major customer service
problem. Although sales in the Far East continued to
decline as the economic crisis there deepened,
Tupperware hoped its expansion into India, Russia,
and China in 1997 would offset the loss in sales.
In 1997 Tupperware experienced further discord with
some of its U.S. consultants when it began enforcing a
company policy prohibiting the sale of Tupperware
online. The company's crackdown included cutting off
from their distributors consultants who refused to shut
down their web sites. Consultants with web sites
resented the intrusion into how they ran their
businesses, for as independent franchise owners,
Tupperware consultants are not employees. By early
1998, however, only six web sites remained in
operation from a high of almost 100 in 1996. Lawrie
Hall, director of external affairs at Tupperware,
explained the policy to Fortune: "We believe that the
product-demonstration and customer services that our
consultants offer face to face can't be adequately
provided in an Internet environment." The following
year, in a complete about-face from that position,
Tupperware announced plans to sell merchandise over
its own corporate web site.
Sales and earnings fell further in 1998. Revenues
declined to $1.1 billion, a 21 percent decline since the
company was divested from Premark two years earlier.
Net income fell to $69 million, the company's lowest
profits since its loss in 1992. Further erosion of the
company's independent sales force in the United
States was responsible in part for the decline in
domestic sales. Internationally, slipping sales in Latin
America and Japan posed the greatest threat to overall
In the late 1990s Tupperware pursued several
strategies to combat persistent declines in sales in the
United States. Diversifying its distribution channels was
one strategy. Tupperware had plans for selling over the
Internet, through television infomercials, and at
shopping mall kiosks. Diversifying its product line was
another. Throughout the middle to late 1990s,
Tupperware had been expanding into new product
areas, including kitchen tools, small kitchen appliances,
and children's products. Tupperware introduced a new
sales technique in April 1998 with the "Demo in a Box."
Consultants could purchase these boxes that come
completely outfitted with recipes, apron, invitation
inserts, video and audio training tapes, etc.
Internationally, Tupperware continued to move into new
geographic areas and to expand its independent sales
Although some analysts saw hope in the company's
move into more traditional retail venues, overall
confidence on Wall Street was low, as evidenced by
the 63 percent decline in the company's stock price
between 1997 and 1999. However, new products were
being introduced each month along with hostess
incentives to keep interest high for customers to host
and attend frequent parties, and customer loyalty
remained strong.
New Products for the New Millennium
Tupperware entered a new market in late 2000 with the
purchase of BeautiControl Inc., a Dallas-based direct-
sales marketer of cosmetics and nutritional products.
The price was about $60 million. With fewer women
staying home to raise families, domestic arts were less
in vogue; however there was strong interest in beauty
products through the direct sales channel.
In 2002, Tupperware tried mass retail distribution for
well-known brand via Target department stores (and, to
a lesser extent, Kroger grocery stores). However, this
was cancelled after eight months because the success
of the venture cut into home-based sales.
Tupperware was facing competition from the top and
bottom ends of its traditional market. Cheap,
disposable plastic containers from GladWare
and Ziploc were available at supermarkets, where they
were likely more of a challenge for down-market rival
Rubbermaid Newell Inc. Company insiders derided
Rubbermaid products as being for garbage more than
for food, and perceived their true competition to be
more from the likes of upscale retailer Williams-
Sonoma. However, another direct sales force was
storming through affluent U.S. suburbs: that of The
Pampered Chef, Ltd., which focused on kitchen
utensils and cookware.
By this time, only a fifth of Tupperware's sales were
coming from North America. Half of overall revenues
($1.3 billion in 2004) were coming from Europe. The
company was looking for growth in Latin America,
particularly in cosmetics.
There were layoffs in 2003 and 2005. Tupperware's
only U.S. facility was a plant in Hemingway, South
Carolina, which also served as a distribution center.
While the company had established a factory in Japan
to suit the local market, it shut down a product
development center there in 2003, leaving design
operations in Florida and Belgium. Tupperware
operated several other plants around the world,
including one in China, where products were distributed
entirely through small retail outlets until a ban on direct
sales was lifted. Tupperware was aiming to outsource
about half of its products.
In the United States, the Tupperware party was being
embraced by a new generation of time-strapped,
sophisticated females looking for fun social outings.
The New York Times described the ritual as a "book
club meeting without the book." In Manhattan, at least,
the guests were being plied with cocktails rather than
tea as the timing of the event was shifted from late
afternoon to evening.
Unfortunately, the original concept was running into
difficulties on the other side of the Atlantic. In 2003 the
company shut down its direct sales operations in Great
Britain, where it had had 1,700 consultants, while
keeping other distribution options open.
The product range had continued to evolve. Top new
products included breathable containers for storing
vegetables and accordion-like, collapsible containers.
Tupperware was also expanding its range of kitchen
items with products such as cookware and dishes.
Brand New Name in 2005
Reflecting its identity as a "multibrand, multicategory
direct-sales company," in December 2005 the company
was renamed Tupperware Brands Corporation. At the
same time, the beauty side of the business was
enhanced with the purchase of Sara Lee's direct-sale,
beauty supply line for around $560 million. After this
acquisition, beauty products, where were expected to
be a key source of future growth, accounted for more
than one-third of Tupperware's total sales. All of Sara
Lee's 900,000 cosmetics sales representatives at the
time were operating outside the United States.
Principal Divisions
Europe; Asia Pacific; Latin America; North America;
BeautiControl North America.
Principal Competitors
Avon Products Inc.; Mary Kay Inc.; Newell Rubbermaid
Inc.; The Pampered Chef, Ltd.; Williams-Sonoma, Inc.


Key Dates
1942 Earl Tupper develops plastic material suitable
for food storage.
1946 Earl S. Tupper Company established.
1947 The lid of a paint can inspires design for the
airtight Tupperware seal; revenues reach $5
1951 Tupperware drops retail sales altogether in
favor of home party approach.
1954 Brownie Wise, head of nearly 9,000
independent sales consultants, becomes first
female to make cover of Business Week.
1958 Rexall Drug buys company from Tupper.
1976 Sales exceed $500 million.
1996 Tupperware spun off from Premark
International (formerly Rexall and Dart
2000 BeautiControl direct-selling cosmetics
business acquired.
2005 Company renamed Tupperware Brands
Corporation; acquires Sara Lee's beauty supply

Additional Details

Public Company
Incorporated: 1946 as Earl S. Tupper Company
Employees: 5,900
Sales: $1.28 billion (2004)
Stock Exchanges: New York
Ticker Symbol: TUP
NAIC: 422130 Sanitary Food Containers
Wholesaling; 326199 Kitchen Utensils, Plastics,

Further Reference

Badenhausen, Kurt, "Tupperware: No Party

Pooper," Financial World, July/August 1997, pp.
------, "Tupperware: Party On," Financial
World, September 16, 1996, p. 24.
Boyd, Christopher, "Tupperware Exits Target
Partnership in Change of Strategy to Support
Agents," Knight Ridder/Tribune Business News,
June 18, 2003.
"CEO Interview: Rick Goings, Tupperware
Corporation," Wall Street Transcript Digest,
October 7, 2002.
Chediak, Mark, "Tupperware Brand Reflects
'Multibrand, Multicategory Direct-Sales
Company," Orlando Sentinel, December 6, 2005.
Clarke, Alison J., Tupperware: The Promise of
Plastic in 1950s America, Smithsonian Books,
Daily, Jo Ellen, and Mark N. Vamos, "How
Tupperware Hopes to Liven Up the
Party," Business Week, February 25, 1985, pp.
DeRosa, Angie, "Tupperware to Outsource Half Its
Line," Plastics News, April 26, 2004, p. 1.
Foderaro, Lisa W., "Tupperware Parties for the
Cosmo Set," New York Times, February 1, 2003,
p. B1.
Fusaro, Roberta, "Tupperware to Sell on the
Web," Computerworld, February 8, 1999, p. 8.
Galvin, Andrew, "Contain Yourself," Orange
County Register (California), November 21, 2002.
Hannon, Kerry, "Party Animal," Forbes, November
16, 1987, pp. 262-70.
Kapner, Suzanne, "It's Official: British Society
Outlasts Tupperware Parties," New York Times,
January 24, 2003, p. W1.
Kinkead, Gwen, "Tupperware's Party Times Are
Over," Fortune, February 20, 1984, pp. 113-20.
Marcial, Gene G., "Get Ready for a Tupperware
Party," Business Week, May 9, 1994, p. 80.
Mink, Michael, "Entrepreneur Earl Tupper--Self-
Educated Inventor Cleaned Up in the
Kitchen," Investor's Business Daily, July 14, 2000,
p. A3.
Rees, Jenny, "The Party's Over for Tupperware's
Out-of-Date Girly Nights In," Western Mail (Cardiff,
Wales), January 24, 2003, p. 3.
Spiegel, Peter, "Party On," Forbes, May 3, 1999, p.
"Tupperware Rolls Out Catalog
Nationwide," Catalog Age, November 1992, p. 27.
Sun, Nina Ying, "Tupperware Taking
Unconventional Road; Firm Diversifying Its Product
Range," Plastics News, November 14, 2005, p. 8.
"Tupperware Leaps Into Cosmetic Sales," Mergers
& Acquisitions Journal, November 2000, p. 16.
Warner, Melanie, "Can Tupperware Keep a Lid on
the Web?," Fortune, January 12, 1998, p. 144.
Weiner, Steve, "Waif Makes Good," Forbes,
November 14, 1988, pp. 76, 80.
Wessel, Harry, "Tupperware Turning to
Tupperwear?," Orlando Sentinel, August 11, 2005.

Company Background
This excerpt taken from the TUP DEF 14A filed Mar 30, 2007.

Company Background

The Company is more complicated than the average corporation. The sales force is largely
comprised of agents who are not employees and, therefore, must be motivated through compensation
models, recognition and other indirect mechanisms. Due in part to this difficulty of motivating the diverse
independent sales force members in many markets, as well as managing the various business models
throughout the world, the Company takes such matters into account when developing its executive
compensation practices.

The Company seeks to structure its operations in the most efficient manner, including minimizing the
impact of income taxes. As a result, it incurs more pretax costs than if its objective was solely to maximize
pretax income. Therefore, the Committee must include both consideration of pre-tax and after-tax income
in determining management performance. Certain of the named executive officers' (the "NEOs") incentive
compensation is based primarily upon the net (after-tax) income measure, while other of the NEOs'
compensation is based upon a combination of segment (pre-tax) profit and net income.

Although the Company seeks patent protection on many of its new Tupperware products, historically
other manufacturers have developed similar products and sold them through retail channels at
substantially lower prices. For that reason, the Company must continue to develop new products and
improvements of the existing line in order to keep the sales force energized. Although the Company sells


products in both developed and developing countries, the gross margin in developed countries is in some
cases higher, although this is normally partially offset by higher promotional costs.

The Company has experienced a difficult selling environment in its Tupperware Germany, Japan
and United States businesses and management has been attempting to re-energize its business model
for such businesses, as well as to reduce their overhead. The benefit from these efforts may not be
apparent in the consolidated results of the Company in the near term but are important for future growth.

In many areas of the world, women spend a higher proportion of their available resources on beauty
and personal care products than traditional Tupperware brand products. Also, beauty products are
consumable; and therefore there is a bigger opportunity for recurring business. The Company made a
strategic decision in 1999 to expand its direct selling operations through acquisitions to include beauty
products, which eventually led to two major transactions.

The first acquisition was the purchase of BeautiControl, Inc. in October, 2000. The second
acquisition was the purchase of the direct selling beauty operations of Sara Lee Corporation in
December 2005. The intangible assets acquired in this acquisition consisted primarily of the existing
independent sales force, which were valued at $62 million, and this value is being amortized over its
estimated life, resulting in $24.4 million of expense in 2006. The sales force in the acquired businesses
actually grew in 2006. This non-cash cost was not considered in setting the performance goals for the
Company and consequently was also not included in measuring achievement.

Performance metrics used in the Company's compensation program normally include profit growth,
sales growth, control of working capital and maximization of overall cash flow. These metrics often include
increasing payout percentages with increased sales, since there is normally a high level of profit
associated with incremental sales. After-tax income is normally more important than pre-tax income, but
the Committee also includes a judgment on investment to increase future growth.

Normally performance goals and their measurement are related to an executive's area of
responsibility. Goals for the NEOs are based in whole, or in part, upon consolidated results. Since the
Company has diverse operations, historically some areas of the world have out-performed in any given
year while other areas have under-performed, in which case there is no incentive compensation for
management responsible for those operations.

Growth of the Orlando, Florida metropolitan region has created increased value for some excess
land adjacent to the Company's headquarters. Valuation in the early 1990s indicated that the Company
could expect to achieve as little as $30 million in a tract sale of this acreage. The Company elected to
develop this property including streets and normal subdivision activities. Zoning was achieved for specific
parcels and sales to date have exceeded $58 million, with additional tracts to be developed and sold with
up to $70 million in incremental proceeds currently foreseen. This has been a key strategy, although the
income generated from this activity is not included in setting general incentive plan goals or in measuring
achievement against those goals, but only as a special incentive program for two of the NEOs, including
the Chairman & CEO. This special incentive program was terminated effective December 30, 2006.

From Wikipedia, the free encyclopedia

Tupperware Brands Corporation

Type Subsidiary

Founded 1948 in Orlando, Florida

Founder Earl Tupper

Key people Rick Goings, Chairman and

CEO, Brownie Wise

Products Preparation, storage,

containment, serving
products for the kitchen and
home, and beauty products

Revenue US$2.3 billion (2010) [1]

Operating US$326.5 million (2010)[1]


Net income US$225.6 million (2010)[1]

Total US$2.0 billion (2010)[1]


Total US$789.8 million (2010)[1]


Number of 13,500 (2010) [1]


Parent Tupperware Brands


Tupperware is the name of a home products line that includes preparation, storage, containment,
and serving products for the kitchen and home. It also includes plastic containers used to store
goods and/or food. In 1942, Earl Tupperdeveloped his first bell shaped container; the brand products
were introduced to the public in 1948.
Tupperware develops, manufactures, and internationally distributes its products as a wholly
owned subsidiary of its parent company Tupperware Brands. It is marketed by means of
approximately 1.9 million direct salespeople on contract.[2]
In 2013, the top marketplace of Tupperware was Indonesia, which topped Germany as the second.
Indonesia's sales in 2013 were more than $200 million with 250,000 sales persons.[3]


1Company history
2Tupperware parties
3Gender aspects and cultural impact
4Product lines
5See also
7Further reading
8External links
Company history[edit]

Tupperware containers from 2011

Tupperware was developed in 1946 by Earl Silas Tupper (190783) in Leominster,
Massachusetts.[4] He developed plastic containers used in households to contain food and keep it
airtight. The once-patented "burping seal" is a famous aspect of Tupperware, which distinguished it
from competitors. Earl Tupper invented the plastic for Tupperware already in 1938, but the product
only worked with the emergence of the sale through presentation in a party setting. In 1949,
Tupperware introduced the 'Wonderlier Bowl' that gave a start to a revolutionary range of kitchen
Tupperware pioneered the direct marketing strategy made famous by the Tupperware party. The
Tupperware Party allowed for women of the 1950s to work and enjoy the benefits of earning an
income without completely taking away the independence granted to women during the Second
World War when women first began entering the labor market, all the while keeping their focus in the
domestic domain.[5] The "Party" model builds on characteristics generally developed by being a
housewife (e.g., party planning, hosting a party, sociable relations with friends and neighbors) and
created an alternative choice for women who either needed or wanted to work. Brownie Wise (1913
92) realized Tupperware's potential as a fun commodity. She realized, however, that she had to be
creative and therefore started to throw these Tupperware parties. Wise, a former sales
representative of Stanley Home Products, developed the strategy.[6] Tupper was so impressed that
Brownie Wise was made vice president of marketing in 1951. Wise soon created Tupperware
Parties Inc.[7]
During the early 1950s, Tupperware's sales and popularity exploded, thanks in large part to Wise's
influence among women who sold Tupperware, and some of the famous "jubilees" celebrating the
success of Tupperware ladies at lavish and outlandishly themed parties. Tupperware was knownat
a time when women came back from working during World War II only to be told to "go back to the
kitchen"[8]as a method of empowering women, and giving them a toehold in the postwar business
The tradition of Tupperware's "Jubilee" style events continues to this day, with rallies being held in
major cities to recognize and reward top-selling and top-recruiting individuals, teams, and
In 1958, Earl Tupper fired Wise over general difference of opinion in the Tupperware business
operation. Officially, Tupper objected to the expenses incurred by the jubilee and other similar
celebrations of Tupperware.[12] However, the real reason was that Tupper had been approached by
several companies interested in buying him out; he felt that he would not be able to sell with a
woman in an executive position.[13] Rexall bought Tupperware in 1958.
Tupperware spread to Europe in 1960 when Mila Pond hosted a Tupperware party
in Weybridge, England, and subsequently around the world. At the time, a strict dress code was
required for Tupperware ladies, with skirts and stockings (tights) worn at all times, and white gloves
often accompanying the outfit.[14] A technique called "carrot calling" helped promote the parties:
representatives would travel door to door in a neighborhood and ask housewives to "run an
experiment" in which carrots would be placed in a Tupperware container and compared with
"anything that you would ordinarily leave it in"; it would often result in the scheduling of a Tupperware
Rexall sold its namesake drugstores in 1977, and renamed itself Dart Industries. Dart merged
with Kraftco to form Dart & Kraft. The company demerged, with the former Dart assets named
Premark International. Tupperware Brands was spun off from Premark in 1996; Premark was
acquired by Illinois Tool Works three years later.[citation needed]
In 2003, Tupperware closed down operations in the UK and Ireland, citing customer dissatisfaction
with their direct sales model.[15] There has been limited importer-distribution since then.[16] The
company announced a formal relaunch in the UK in mid-2011,[17] and recruited UK staff, but in
December the relaunch was cancelled.[18]
Tupperware is now sold in almost 100 countries, after peaking at more than a hundred after 1996.[19]

Brand: Tupperware
Product Code: Perfume Women
Availability: In Stock
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Our Brands
After our acquisitions in December 2005, Tupperware
Corporation changed its name to Tupperware Brands
Corporation to mark the dramatic expansion in our brand
portfolio. We now sell products under six brands consisting
of Tupperware, which represents food preparation, storage
and serving solutions for the home, and five brands of
beauty and personal care products including Avroy
Shlain, Fuller, NaturCare, Nutrimetics, and Nuvo.
Click on any of our brands to learn more.

The Sales Force Opportunity

Have you ever looked out the window of your home
or office and wished that your life was more
rewarding and meaningful? Picture yourself with
more time for your family and you, extra income, lots
of travel, fun, and excitement - that's the life you can
lead when you join one of the Tupperware Brands
Live the rewarding life you deserve everyday
Tupperware Brands celebrates your right to choose the
life you want to lead. This means balancing your work
around family and lifestyle needs. It's about loving what
you do, earning what you want, feeling appreciated and
valued, learning from positive, uplifting people, and
being rewarded and recognized. We create an
environment that nurtures success. Everyone wants to
see you succeed. The only ceiling is the one that you
Enjoy freedom and flexibility
By joining one of our companies, you'll have the
freedom and flexibility to work your own hours. No
experience necessary! Take vacations when you want
and earn as much money as you want. You also have
the freedom to shape your business as you see fit.
Be rewarded
There are incredible rewards and recognition out there
for the taking once you join a Tupperware Brands
company. You can earn cars, dream vacations, jewelry,
exciting onstage recognition and more. No other
company rewards you like we do. The sky's the limi

Relationship-Based Selling
Relationship-based Selling Opportunity

Relationship-based selling is an important part of our

heritage and originated as a way to exchange goods and
services. This method offers consumers a personal and
convenient way to purchase products that they may not
have access to otherwise. All cultures ancient and modern
have been involved in selling on a one-to-one basis.
Relationship-based selling is defined as the sale of a
consumer product or service through a home party, through
product catalogs on a one-to-one basis and has grown to
include television and online shopping. The sales force
usually consists of independent contractors who market
products directly to consumers.
Being an independent consultant allows an individual the
flexibility to set their work schedules, own their own
businesses, earn extra income and have a wide circle of
Relationship-based Selling Rewards

There are no specific requirements to become a consultant

only the desire to succeed in a career that offers endless
opportunities to:
Enhance one's income
Be your own boss
Sell a product or services you believe in
Set personal goals
Work full or part time, leaving time for activities with your
family and friends
Many companies offer training and support to ensure an
individual's success.
People of all backgrounds and ages have enjoyed success
in this industry. Tupperware Brands celebrates your right to
choose the life you want to lead. This means balancing your
work around family and lifestyle needs. It's about loving
what you do, earning what you want, feeling appreciated
and valued, learning from positive, uplifting people, and
being rewarded and recognized.