FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 | COMMISSION FILE NUMBER 1-9608 |
DELAWARE | 36-3514169 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
Three Glenlake Parkway | 30328 | |
Atlanta, Georgia | (Zip Code) | |
(Address of principal executive offices) |
TITLE OF EACH CLASS Common Stock, $1 par value per share | NAME OF EACH EXCHANGE ON WHICH REGISTERED New York Stock Exchange Chicago Stock Exchange |
Large Accelerated Filer þ | Accelerated Filer o | |
Non-Accelerated Filer o | Smaller Reporting Company o | |
(Do not check if a smaller reporting company) |
Statement of Computation of Earnings to Fixed Charges | ||
Significant Subsidiaries | ||
Consent of Independent Registered Public Accounting Firm | ||
302 Certification of Chief Executive Officer | ||
302 Certification of Chief Financial Officer | ||
906 Certification of Chief Executive Officer | ||
906 Certification of Chief Financial Officer |
• | Graco® Smart Seat™ All-In-One Car Seat, the first all-in-one car seat to feature a one-time install, stay-in-car Smart Base™ that accommodates newborns all the way up to children weighing 100 pounds; |
• | Aprica® product line expansion in Japan with car seats and strollers with features to enhance comfort, convenience and maneuverability; |
• | Rubbermaid® Glass with Easy Find Lids food storage platform, which combines the nesting, stacking and “no spill lid” system with the reheating and serving advantages of glass; |
• | Calphalon® Kitchen Electrics, which are designed to provide accurate temperature control, even heat delivery and ensure foods cook evenly and thoroughly, for reliable results; |
• | Paper Mate®’s InkJoy® line of writing instruments, which feature innovative ultra-low-viscosity ink for a smooth writing experience, rolling out worldwide; |
• | Parker® Sonnet™ Collection, the Parker® Ingenuity Collection featuring Parker 5th™ Technology and the Waterman® Pure White™ collection; |
• | Rubbermaid® Commercial Products HYGEN Clean Water System, which is a revolutionary mopping system featuring an integrated, innovative water filter for generating cleaner water from dirty mopping water; and |
• | Lenox®’s innovative new hole saw, which features a unique slotted design for easy plug removal. |
Segment | GBU | Key Brands | Description of Primary Products | |||
Home & Family | Rubbermaid Consumer | Rubbermaid® | Indoor/outdoor organization, food storage, and home storage products | |||
Baby & Parenting | Graco®, Aprica® | Infant and juvenile products such as car seats, strollers, highchairs and playards | ||||
Décor | Levolor®, Kirsch®, Amerock® | Drapery hardware, window treatments and cabinet hardware | ||||
Culinary Lifestyles | Calphalon® | Gourmet cookware, bakeware, cutlery and small kitchen electrics | ||||
Beauty & Style | Goody® | Hair care accessories | ||||
Office Products | Markers, Highlighters, Art & Office Organization | Sharpie®, Expo® | Writing instruments, including markers and highlighters, and art products | |||
Technology | Dymo®, Dymo|Mimio®, Dymo|Endicia™ | Office technology solutions such as label makers and printers, interactive teaching solutions and on-line postage | ||||
Everyday Writing | Paper Mate® | Writing instruments, including pens and pencils | ||||
Fine Writing & Luxury Accessories | Parker®, Waterman® | Fine writing instruments and leather goods | ||||
Tools, Hardware & Commercial Products | Industrial Products & Services | Lenox® | Industrial bandsaw blades, power tool accessories and cutting tools for pipes and HVAC systems | |||
Commercial Products | Rubbermaid® Commercial Products | Cleaning and refuse products, hygiene systems, material handling solutions and medical and computer carts, and wall-mounted workstations | ||||
Construction Tools & Accessories | Irwin® | Hand tools and power tool accessories | ||||
Hardware | Shur-line®, Bulldog® | Manual paint applicators, window hardware and convenience hardware |
2011 | % of Total | 2010 | % of Total | 2009 | % of Total | ||||||||||||||||
Home & Family | $ | 2,390.5 | 40.8 | % | $ | 2,378.4 | 42.0 | % | $ | 2,377.2 | 43.4 | % | |||||||||
Office Products | 1,778.8 | 30.3 | 1,708.9 | 30.2 | 1,674.7 | 30.5 | |||||||||||||||
Tools, Hardware & Commercial Products | 1,695.3 | 28.9 | 1,570.9 | 27.8 | 1,431.5 | 26.1 | |||||||||||||||
Total Company | $ | 5,864.6 | 100.0 | % | $ | 5,658.2 | 100.0 | % | $ | 5,483.4 | 100.0 | % |
• | difficulties in the separation of operations, services, products and personnel; |
• | the diversion of management's attention from other business concerns; |
• | the retention of certain current or future liabilities in order to induce a buyer to complete a divestiture; |
• | the disruption of the Company's business; and |
• | the potential loss of key employees. |
BUSINESS SEGMENT | LOCATION | CITY | OWNED OR LEASED | GENERAL CHARACTER | ||||
HOME & FAMILY | OH | Perrysburg | O | Cookware | ||||
OH | Toledo | L | Cookware | |||||
PA | Exton | L | Infant Products | |||||
Japan | Nara | O | Infant Products | |||||
Germany | Hiddenhausen | O | Infant Products | |||||
Poland | Wloclawek | L | Infant Products | |||||
China | Zhongshan | L | Infant Products | |||||
China | Beijing | L | Infant Products | |||||
OH | Mogadore | O | Home Products | |||||
KS | Winfield | L/O | Home Products | |||||
OH | Wooster | L | Home Products | |||||
Canada | Calgary | L | Home Products | |||||
TX | Greenville | L/O | Home Products | |||||
MO | Jackson | O | Home Storage Systems | |||||
Mexico | Agua Prieta | L | Window Treatments | |||||
NC | High Point | L | Window Treatments | |||||
UT | Ogden | L | Window Treatments | |||||
IL | Freeport | L | Window Treatments | |||||
Canada | Etobicoke | L | Window Furnishings | |||||
OFFICE PRODUCTS | IL | Oakbrook | L | Writing Instruments | ||||
TN | Shelbyville | O | Writing Instruments | |||||
TN | Maryville | O | Writing Instruments | |||||
TN | Manchester | O | Writing Instruments | |||||
Thailand | Bangkok | O | Writing Instruments | |||||
India | Chennai | L | Writing Instruments | |||||
China | Shanghai | L | Writing Instruments | |||||
Colombia | Bogota | O | Writing Instruments | |||||
Germany | Hamburg | O | Writing Instruments | |||||
Mexico | Tlalnepantla | L | Writing Instruments | |||||
Mexico | Mexicali | L | Writing Instruments | |||||
Australia | Melbourne | L | Writing Instruments | |||||
France | Nantes | O | Writing Instruments | |||||
Venezuela | Maracay | O | Writing Instruments | |||||
Belgium | Sint Niklaas | O | Technology | |||||
CT | Norwalk | L | Technology | |||||
MA | Cambridge | L | Technology | |||||
WA | Seattle | L | Technology | |||||
CA | Palo Alto | L | Technology | |||||
TOOLS, HARDWARE | MA | East Longmeadow | O | Tools | ||||
& COMMERCIAL PRODUCTS | China | Shanghai | L | Tools | ||||
China | Shenzhen | L | Tools | |||||
ME | Gorham | O | Tools | |||||
IN | Greenfield | L | Tools |
BUSINESS SEGMENT | LOCATION | CITY | OWNED OR LEASED | GENERAL CHARACTER | ||||
Australia | Lyndhurst | L | Tools | |||||
Brazil | Sao Paulo | L | Tools | |||||
Brazil | Carlos Barbosa | O | Tools | |||||
Germany | Hallbergmoos | L | Tools | |||||
WI | Saint Francis | O | Hardware | |||||
IN | Lowell | O | Hardware | |||||
Mexico | Monterrey | L | Hardware | |||||
TN | Cleveland | O | Commercial Products | |||||
VA | Winchester | O | Commercial Products | |||||
WV | Martinsburg | L | Commercial Products | |||||
PA | Pottsville | L | Commercial Products | |||||
Brazil | Rio Grande Do Sul | L | Commercial Products | |||||
Brazil | Cachoeirinha | O | Commercial Products | |||||
Netherlands | Bentfield | O | Commercial Products | |||||
CORPORATE | GA | Atlanta | L | Office | ||||
Canada | Oakville | L | Office | |||||
Switzerland | Geneva | L | Office | |||||
France | Paris | L | Office | |||||
China | Hong Kong | L | Office | |||||
Australia | Dandenong | L | Office | |||||
Italy | Milan | L | Office | |||||
SHARED FACILITIES | CA | Hesperia | L | Shared Services | ||||
CA | Victorville | L | Shared Services | |||||
GA | Union City | L | Shared Services | |||||
IL | Freeport | L/O | Shared Services | |||||
NC | Huntersville | L | Shared Services | |||||
UK | Lichfield | L | Shared Services | |||||
Netherlands | Goirle | O | Shared Services | |||||
AR | Bentonville | L | Shared Services | |||||
France | Malissard | L/O | Shared Services | |||||
Canada | Bolton | L | Shared Services |
SUPPLEMENTARY ITEM - EXECUTIVE OFFICERS OF THE REGISTRANT | ||||
Name | Age | Present Position with the Company | ||
Michael B. Polk | 51 | President and Chief Executive Officer | ||
William A. Burke | 51 | President, Newell Professional | ||
G. Penny McIntyre | 50 | President, Newell Consumer | ||
Juan R. Figuereo | 56 | Executive Vice President, Chief Financial Officer | ||
James M. Sweet | 59 | Executive Vice President, Human Resources & Corporate Communications (Chief Human Resources Officer) | ||
Gordon Steele | 60 | Senior Vice President, Program Management Office and Chief Information Officer | ||
John K. Stipancich | 43 | Senior Vice President, General Counsel and Corporate Secretary | ||
Theodore W. Woehrle | 50 | Senior Vice President, Chief Marketing Officer | ||
Paul G. Boitmann | 50 | Senior Vice President, Chief Customer Officer | ||
J. Eduardo Senf | 53 | President, Newell Rubbermaid International |
2011 | 2010 | |||||||||||||||
Quarters | High | Low | High | Low | ||||||||||||
First | $ | 20.38 | $ | 17.57 | $ | 15.88 | $ | 13.11 | ||||||||
Second | 19.81 | 14.14 | 17.96 | 14.55 | ||||||||||||
Third | 16.27 | 11.31 | 18.17 | 14.14 | ||||||||||||
Fourth | 16.53 | 10.87 | 18.48 | 16.71 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||
10/1/11-10/31/11 | 419,811 | $ | 12.48 | 418,200 | $ | 270,364,498 | |||||||
11/1/11-11/30/11 | 1,014,550 | 15.47 | 1,000,000 | 254,908,985 | |||||||||
12/1/11-12/31/11 | 188,960 | 15.41 | 70,000 | 253,881,966 | |||||||||
Total | 1,623,321 | $ | 14.69 | 1,488,200 | $ | 253,881,966 |
(1) | During the three months ended December 31, 2011, all share purchases other than those pursuant to the $300.0 million share repurchase program (the "SRP") were made to satisfy employees' tax withholding and payment obligations in connection with the vesting of awards of restricted stock units, which are repurchased by the Company based on their fair market value on the vesting date. In October, November and December 2011, in addition to the shares purchased under the SRP, the Company purchased 1,611 shares (average price: $12.62), 14,550 (average price: $16.16), and 118,960 shares (average price: $15.85), respectively, in connection with vesting of employees' stock-based awards. |
(2) | Under the SRP, the Company may repurchase its own shares of common stock through a combination of a 10b5-1 automatic trading plan, discretionary market purchases or in privately negotiated transactions. The SRP is authorized to run through August 2014. The average per share price of shares purchased in October, November and December 2011 was $12.48, $15.46 and $14.67, respectively. |
2011(1) | 2010(1) (2) | 2009(1) (2) | 2008(2) | 2007(2) | ||||||||||||||||
STATEMENTS OF OPERATIONS DATA | ||||||||||||||||||||
Net sales | $ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 | $ | 6,340.9 | $ | 6,256.7 | ||||||||||
Cost of products sold | 3,659.4 | 3,509.5 | 3,453.3 | 4,245.8 | 4,034.1 | |||||||||||||||
Gross margin | 2,205.2 | 2,148.7 | 2,030.1 | 2,095.1 | 2,222.6 | |||||||||||||||
Selling, general and administrative expenses | 1,515.3 | 1,447.8 | 1,354.8 | 1,478.3 | 1,403.4 | |||||||||||||||
Impairment charges | 382.6 | — | — | 296.3 | — | |||||||||||||||
Restructuring costs (3) | 50.1 | 77.4 | 100.0 | 120.3 | 86.0 | |||||||||||||||
Operating income | 257.2 | 623.5 | 575.3 | 200.2 | 733.2 | |||||||||||||||
Nonoperating expenses: | ||||||||||||||||||||
Interest expense, net | 86.2 | 118.4 | 140.0 | 137.9 | 104.1 | |||||||||||||||
Losses related to extinguishments of debt | 4.8 | 218.6 | 4.7 | 52.2 | — | |||||||||||||||
Other expense (income), net | 13.7 | (7.3 | ) | 2.0 | 6.9 | 4.2 | ||||||||||||||
Net nonoperating expenses | 104.7 | 329.7 | 146.7 | 197.0 | 108.3 | |||||||||||||||
Income before income taxes | 152.5 | 293.8 | 428.6 | 3.2 | 624.9 | |||||||||||||||
Income taxes | 17.9 | 5.6 | 142.8 | 50.9 | 146.9 | |||||||||||||||
Income (loss) from continuing operations | 134.6 | 288.2 | 285.8 | (47.7 | ) | 478.0 | ||||||||||||||
(Loss) income from discontinued operations, net of tax (4) | (9.4 | ) | 4.6 | (0.3 | ) | (2.6 | ) | (7.8 | ) | |||||||||||
Net income (loss) | 125.2 | 292.8 | 285.5 | (50.3 | ) | 470.2 | ||||||||||||||
Net income noncontrolling interests | — | — | — | 2.0 | 3.1 | |||||||||||||||
Net income (loss) controlling interests | $ | 125.2 | $ | 292.8 | $ | 285.5 | $ | (52.3 | ) | $ | 467.1 | |||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 293.6 | 282.4 | 280.8 | 279.9 | 278.6 | |||||||||||||||
Diluted | 296.2 | 305.4 | 294.4 | 279.9 | 287.6 | |||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.46 | $ | 1.02 | $ | 1.02 | $ | (0.18 | ) | $ | 1.70 | |||||||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | (0.01 | ) | (0.03 | ) | ||||||||||||
Net income (loss) controlling interests | $ | 0.43 | $ | 1.04 | $ | 1.02 | $ | (0.18 | ) | $ | 1.68 | |||||||||
Diluted: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | 0.94 | $ | 0.97 | $ | (0.18 | ) | $ | 1.70 | |||||||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | (0.01 | ) | (0.03 | ) | ||||||||||||
Net income (loss) controlling interests | $ | 0.42 | $ | 0.96 | $ | 0.97 | $ | (0.18 | ) | $ | 1.67 | |||||||||
Dividends | $ | 0.29 | $ | 0.20 | $ | 0.26 | $ | 0.84 | $ | 0.84 | ||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||
Inventories, net | $ | 699.9 | $ | 701.6 | $ | 688.2 | $ | 912.1 | $ | 940.4 | ||||||||||
Working capital (5) | 487.1 | 466.1 | 422.6 | 159.7 | 87.9 | |||||||||||||||
Total assets | 6,160.9 | 6,405.3 | 6,423.9 | 6,792.5 | 6,682.9 | |||||||||||||||
Short-term debt, including current portion of long-term debt | 367.5 | 305.0 | 493.5 | 761.0 | 987.5 | |||||||||||||||
Long-term debt, net of current portion | 1,809.3 | 2,063.9 | 2,015.3 | 2,118.3 | 1,197.4 | |||||||||||||||
Total stockholders’ equity | $ | 1,852.6 | $ | 1,905.5 | $ | 1,782.2 | $ | 1,588.6 | $ | 2,222.1 |
(1) | Supplemental data regarding 2011, 2010 and 2009 is provided in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
(2) | 2010, 2009, 2008 and 2007 Statement of Operations information has been adjusted to reclassify the results of operations of the hand torch and solder |
(3) | Restructuring costs include asset impairment charges, employee severance and termination benefits, employee relocation costs, and costs associated with exited contractual commitments and other restructuring costs. |
(4) | Loss from discontinued operations, net of tax, attributable to noncontrolling interests was not material. |
(5) | Working capital is defined as Current Assets less Current Liabilities. |
Calendar Year | 1st (1) | 2nd (1) | 3rd | 4th | Year | |||||||||||||||
2011 | ||||||||||||||||||||
Net sales | $ | 1,274.2 | $ | 1,545.3 | $ | 1,549.9 | $ | 1,495.2 | $ | 5,864.6 | ||||||||||
Gross margin | $ | 484.9 | $ | 584.4 | $ | 579.3 | $ | 556.6 | $ | 2,205.2 | ||||||||||
Income (loss) from continuing operations | $ | 73.9 | $ | 145.4 | $ | (166.4 | ) | $ | 81.7 | $ | 134.6 | |||||||||
Income (loss) from discontinued operations | $ | 1.8 | $ | 1.3 | $ | (11.2 | ) | $ | (1.3 | ) | $ | (9.4 | ) | |||||||
Net income (loss) | $ | 75.7 | $ | 146.7 | $ | (177.6 | ) | $ | 80.4 | $ | 125.2 | |||||||||
Earnings per share: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.25 | $ | 0.49 | $ | (0.57 | ) | $ | 0.28 | $ | 0.46 | |||||||||
Income (loss) from discontinued operations | 0.01 | — | (0.04 | ) | — | (0.03 | ) | |||||||||||||
Net income (loss) | $ | 0.26 | $ | 0.50 | $ | (0.61 | ) | $ | 0.28 | $ | 0.43 | |||||||||
Diluted | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.25 | $ | 0.49 | $ | (0.57 | ) | $ | 0.28 | $ | 0.45 | |||||||||
Income (loss) from discontinued operations | 0.01 | — | (0.04 | ) | — | (0.03 | ) | |||||||||||||
Net income (loss) | $ | 0.25 | $ | 0.49 | $ | (0.61 | ) | $ | 0.27 | $ | 0.42 | |||||||||
2010 (1) | ||||||||||||||||||||
Net sales | $ | 1,279.4 | $ | 1,471.8 | $ | 1,465.5 | $ | 1,441.5 | $ | 5,658.2 | ||||||||||
Gross margin | $ | 465.3 | $ | 582.4 | $ | 563.4 | $ | 537.6 | $ | 2,148.7 | ||||||||||
Income from continuing operations | $ | 57.1 | $ | 129.4 | $ | 28.3 | $ | 73.4 | $ | 288.2 | ||||||||||
Income from discontinued operations | $ | 1.3 | $ | 1.0 | $ | — | $ | 2.3 | $ | 4.6 | ||||||||||
Net income | $ | 58.4 | $ | 130.4 | $ | 28.3 | $ | 75.7 | $ | 292.8 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Income from continuing operations | $ | 0.20 | $ | 0.46 | $ | 0.10 | $ | 0.25 | $ | 1.02 | ||||||||||
Income from discontinued operations | — | — | — | 0.01 | 0.02 | |||||||||||||||
Net income | $ | 0.21 | $ | 0.46 | $ | 0.10 | $ | 0.26 | $ | 1.04 | ||||||||||
Diluted | ||||||||||||||||||||
Income from continuing operations | $ | 0.19 | $ | 0.41 | $ | 0.09 | $ | 0.25 | $ | 0.94 | ||||||||||
Income from discontinued operations | — | — | — | 0.01 | 0.02 | |||||||||||||||
Net income | $ | 0.19 | $ | 0.41 | $ | 0.09 | $ | 0.25 | $ | 0.96 |
(1) | The first and second quarters of 2011 and all Statement of Operations data for 2010 have been adjusted to reclassify the results of operations of the hand torch and solder business to discontinued operations. |
• | Building Brands That Matter™ to drive demand involves continued focus on insight-driven innovation, developing best-in-class marketing and branding capabilities across the organization, and investing in strategic brand-building activities, including investments in research and development to better understand target consumers and their needs. |
• | Fueling growth through margin expansion and scale synergies entails continued focus on achieving best cost and improving productivity through the adoption of best-in-class practices, including leveraging scale, optimizing the supply chain to improve capacity utilization and to deliver productivity savings, reducing costs in nonmarket-facing activities, designing products to optimize input costs and utilizing strategic sourcing partners when it is cost effective. Achieving best cost allows the Company to improve its competitive position, generate funds for increased investment in strategic brand-building initiatives and preserve cash and liquidity. |
• | Leveraging the portfolio includes more complete deployment of the Company's brands in existing customers and geographies, accelerating expansion outside North America, targeting investment in higher growth businesses and categories, and acquiring businesses that facilitate geographic and category expansion, thus enhancing the potential for growth and improved profitability. |
Segment | GBU | Key Brands | Description of Primary Products | |||
Home & Family | Rubbermaid Consumer | Rubbermaid® | Indoor/outdoor organization, food storage, and home storage products | |||
Baby & Parenting | Graco®, Aprica® | Infant and juvenile products such as car seats, strollers, highchairs, and playards | ||||
Décor | Levolor®, Kirsch®, Amerock® | Drapery hardware, window treatments and cabinet hardware | ||||
Culinary Lifestyles | Calphalon® | Gourmet cookware, bakeware, cutlery and small kitchen electrics | ||||
Beauty & Style | Goody® | Hair care accessories | ||||
Office Products | Markers, Highlighters, Art & Office Organization | Sharpie®, Expo® | Writing instruments, including markers and highlighters, and art products | |||
Technology | Dymo®, Dymo|Mimio®, Dymo|Endicia™ | Office technology solutions such as label makers and printers, interactive teaching solutions and on-line postage | ||||
Everyday Writing | Paper Mate® | Writing instruments, including pens and pencils | ||||
Fine Writing & Luxury Accessories | Parker®, Waterman® | Fine writing instruments and leather goods | ||||
Tools, Hardware & Commercial Products | Industrial Products & Services | Lenox® | Industrial bandsaw blades, power tool accessories and cutting tools for pipes and HVAC systems | |||
Commercial Products | Rubbermaid® Commercial Products | Cleaning and refuse products, hygiene systems, material handling solutions and medical and computer carts, and wall-mounted workstations | ||||
Construction Tools & Accessories | Irwin® | Hand tools and power tool accessories | ||||
Hardware | Shur-line®, Bulldog® | Manual paint applicators, window hardware and convenience hardware |
• | Core sales increased 1.8% in 2011, compared to 2010, driven by core sales growth in the U.S. and emerging markets, with double-digit increases in Latin America and Asia Pacific, as the Company continues its focus on expanding geographically and into emerging markets. European core sales declined 3.4%, compared to 2010, due to weak consumer spending resulting from the challenging macroeconomic environment. |
• | Core sales increased 6.0% in the Tools, Hardware & Commercial Products segment, led by double-digit core sales growth in the Industrial Products & Services GBU. Core sales decreased 0.8% in the Home & Family segment, primarily due to |
• | Input and sourced product cost inflation, partially offset by productivity and pricing, resulted in a 40 basis point gross margin decrease compared to 2010. |
• | Continued selective spend for strategic SG&A activities to drive sales, enhance the new product pipeline and increase geographic expansion. During 2011, the Company’s spend for strategic brand-building and consumer demand creation activities included spend for the following: |
• | Graco® Smart Seat™ All-In-One Car Seat, the first all-in-one car seat to feature a one-time install, stay-in-car Smart Base™ that accommodates newborns all the way up to children weighing 100 pounds; |
• | Expansion of the Aprica® product line in Japan with car seats and strollers with features to enhance comfort, convenience and maneuverability; |
• | Launch of the Rubbermaid® Glass with Easy Find Lids food storage platform, which combines the nesting, stacking and “no spill lid” system with the reheating and serving advantages of glass; |
• | Ongoing support for the Rubbermaid® Reveal™ Microfiber Spray Mop that helps consumers clean floors better, while reducing waste and saving money; |
• | The continued rollout of the Size-in-Store program, which leverages advanced technology to make it easy for consumers to purchase custom-sized Levolor® blinds and shades right in the store; |
• | The launch of Calphalon® Kitchen Electrics, which are designed to provide accurate temperature control, even heat delivery and ensure foods cook evenly and thoroughly, for reliable results; |
• | Initiatives to support geographic expansion, with a particular focus on activities supporting launches of Paper Mate® and Sharpie® products in Brazil; |
• | Launch of Paper Mate®’s InkJoy® line of writing instruments, which feature innovative ultra-low-viscosity ink for a smooth writing experience, rolled out worldwide, starting in Latin America; |
• | Continued expansion of dedicated Parker® “shop-in-shop” retail outlets in China and other regions to enhance in-store merchandising; |
• | Launches of the Parker® Sonnet™ Collection, the Parker® Ingenuity Collection featuring Parker 5th™ Technology and the Waterman® Pure White™ collection; |
• | Expansion of sales forces in the Technology and Industrial Products & Services GBUs to drive greater sales penetration and enhance the availability of products; |
• | Rubbermaid® Commercial Products HYGEN Clean Water System, which is a revolutionary mopping system featuring an integrated, innovative water filter for generating cleaner water from dirty mopping water; and |
• | The launch of Lenox®’s innovative new hole saw, which features a unique slotted design for easy plug removal. |
• | Non-cash impairment charges of $382.6 million were recorded as a result of the Company's annual impairment testing of goodwill and indefinite-lived intangible assets, principally relating to impairment of goodwill in the Baby & Parenting and Hardware GBUs. |
• | Divestiture of the hand torch and solder business, which resulted in an after-tax loss on the sale of $15.2 million. This loss, when combined with the $5.8 million of net income from operations of the hand torch and solder business and other items, was reported as a $9.4 million net loss from discontinued operations in 2011. |
• | Commenced the implementation of Project Renewal with restructuring charges of $31.2 million incurred in the fourth quarter of 2011 and continued the execution of the European Transformation Plan, which includes projects designed to prepare the region for the implementation of an enterprise resource planning system, centralize decision making in the |
• | The expiration of various worldwide statutes of limitation for certain tax periods resulted in the recognition of $49.0 million of previously unrecognized tax benefits. |
• | Completion of the Capital Structure Optimization Plan after finalization of the accelerated stock buyback program in March 2011, resulting in an additional 2 million shares of the Company’s common stock being repurchased and retired. In addition, the Company exchanged shares and cash for an additional $20 million principal amount of the extant convertible notes in 2011, essentially eliminating these notes from the Company’s capital structure. |
• | Commenced a $300.0 million three-year share repurchase plan that expires in August 2014, pursuant to which the Company repurchased and retired 3.4 million shares of common stock for $46.1 million during 2011. |
• | The Company’s Board of Directors approved a 60% increase in the Company’s quarterly dividend from $0.05 per share to $0.08 per share, which took effect with the Company’s dividend paid in June 2011. |
2011 | 2010 | 2009 | ||||||||||||||||||
Net sales | $ | 5,864.6 | 100.0 | % | $ | 5,658.2 | 100.0 | % | $ | 5,483.4 | 100.0 | % | ||||||||
Cost of products sold | 3,659.4 | 62.4 | 3,509.5 | 62.0 | 3,453.3 | 63.0 | ||||||||||||||
Gross margin | 2,205.2 | 37.6 | 2,148.7 | 38.0 | 2,030.1 | 37.0 | ||||||||||||||
Selling, general and administrative expenses | 1,515.3 | 25.8 | 1,447.8 | 25.6 | 1,354.8 | 24.7 | ||||||||||||||
Impairment charges | 382.6 | 6.5 | — | — | — | — | ||||||||||||||
Restructuring costs | 50.1 | 0.9 | 77.4 | 1.4 | 100.0 | 1.8 | ||||||||||||||
Operating income | 257.2 | 4.4 | 623.5 | 11.0 | 575.3 | 10.5 | ||||||||||||||
Nonoperating expenses: | ||||||||||||||||||||
Interest expense, net | 86.2 | 1.5 | 118.4 | 2.1 | 140.0 | 2.6 | ||||||||||||||
Losses related to extinguishments of debt | 4.8 | 0.1 | 218.6 | 3.9 | 4.7 | 0.1 | ||||||||||||||
Other expense (income), net | 13.7 | 0.2 | (7.3 | ) | (0.1 | ) | 2.0 | — | ||||||||||||
Net nonoperating expenses | 104.7 | 1.8 | 329.7 | 5.8 | 146.7 | 2.7 | ||||||||||||||
Income before income taxes | 152.5 | 2.6 | 293.8 | 5.2 | 428.6 | 7.8 | ||||||||||||||
Income tax expense | 17.9 | 0.3 | 5.6 | 0.1 | 142.8 | 2.6 | ||||||||||||||
Income from continuing operations | 134.6 | 2.3 | 288.2 | 5.1 | 285.8 | 5.2 | ||||||||||||||
(Loss) income from discontinued operations | (9.4 | ) | (0.2 | ) | 4.6 | 0.1 | (0.3 | ) | — | |||||||||||
Net income | $ | 125.2 | 2.1 | % | $ | 292.8 | 5.2 | % | $ | 285.5 | 5.2 | % |
Core sales | $ | 102.0 | 1.8 | % | ||
Foreign currency | 104.4 | 1.8 | ||||
Total change in net sales | $ | 206.4 | 3.6 | % |
Core sales | $ | 254.3 | 4.6 | % | |
Foreign currency | 2.2 | — | |||
Product line exits and rationalizations | (81.7 | ) | (1.5 | )% | |
Total change in net sales | $ | 174.8 | 3.2 | % |
2011 | 2010 | % Change | ||||||||
Home & Family | $ | 2,390.5 | $ | 2,378.4 | 0.5 | % | ||||
Office Products | 1,778.8 | 1,708.9 | 4.1 | |||||||
Tools, Hardware & Commercial Products | 1,695.3 | 1,570.9 | 7.9 | |||||||
Total net sales | $ | 5,864.6 | $ | 5,658.2 | 3.6 | % |
Home & Family | Office Products | Tools, Hardware & Commercial Products | ||||||
Core sales | (0.8 | )% | 1.5 | % | 6.0 | % | ||
Foreign currency | 1.3 | 2.6 | 1.9 | |||||
Total change in net sales | 0.5 | % | 4.1 | % | 7.9 | % |
2011 | 2010 | % Change | ||||||||
Home & Family | $ | 280.5 | $ | 281.8 | (0.5 | )% | ||||
Office Products | 300.2 | 269.4 | 11.4 | |||||||
Tools, Hardware & Commercial Products | 234.3 | 246.6 | (5.0 | ) | ||||||
Impairment charges | (382.6 | ) | — | NMF | ||||||
Corporate (1) | (125.1 | ) | (96.9 | ) | (29.1 | ) | ||||
Restructuring costs | (50.1 | ) | (77.4 | ) | 35.3 | |||||
Total operating income | $ | 257.2 | $ | 623.5 | (58.7 | )% |
2010 | 2009 | % Change | |||||||||
Home & Family | $ | 2,378.4 | $ | 2,377.2 | 0.1 | % | |||||
Office Products | 1,708.9 | 1,674.7 | 2.0 | ||||||||
Tools, Hardware & Commercial Products | 1,570.9 | 1,431.5 | 9.7 | ||||||||
Total net sales | $ | 5,658.2 | $ | 5,483.4 | 3.2 | % |
Home & Family | Office Products | Tools, Hardware & Commercial Products | |||||||
Core sales | 0.5 | % | 7.4 | % | 8.3 | % | |||
Foreign currency | 0.9 | (2.4 | ) | 1.4 | |||||
Product line exits and rationalizations | (1.3 | ) | (3.0 | ) | — | ||||
Total change in net sales | 0.1 | % | 2.0 | % | 9.7 | % |
2010 | 2009 | % Change | |||||||||
Home & Family | $ | 281.8 | $ | 274.7 | 2.6 | % | |||||
Office Products | 269.4 | 235.2 | 14.5 | ||||||||
Tools, Hardware & Commercial Products | 246.6 | 246.0 | 0.2 | ||||||||
Corporate (2) | (96.9 | ) | (80.6 | ) | (20.2 | ) | |||||
Restructuring costs | (77.4 | ) | (100.0 | ) | 22.6 | ||||||
Total operating income | $ | 623.5 | $ | 575.3 | 8.4 | % |
2011 | 2010 | 2009 | |||||||||
Cash provided by operating activities | $ | 561.3 | $ | 582.6 | $ | 602.8 | |||||
Cash used in investing activities | (206.4 | ) | (153.4 | ) | (149.4 | ) | |||||
Cash used in financing activities | (324.6 | ) | (571.9 | ) | (427.0 | ) | |||||
Currency effect on cash and cash equivalents | 0.3 | 4.0 | (23.5 | ) | |||||||
Increase (decrease) in cash and cash equivalents | $ | 30.6 | $ | (138.7 | ) | $ | 2.9 |
• | higher customer program payments in 2011 compared to 2010, including higher amounts paid in 2011 for amounts earned in 2010 compared to customer program payments in 2010 for amounts earned in 2009, which resulted in an incremental $114.0 million use of cash in 2011, partially offset by |
• | a $30.0 million decline in contributions to the Company’s primary U.S. defined benefit pension plan, from $50.0 million in 2010 to $20.0 million in 2011 and |
• | a $43.4 million decline in cash paid for income taxes. |
• | a $48.2 million increase in operating income; |
• | an $11.2 million decline in cash paid for interest; |
• | a $31.7 million decline in cash paid for income taxes; |
• | a $25.0 million decline in voluntary contributions to the Company’s primary U.S. defined benefit pension plan, from $75.0 million in 2009 to $50.0 million in 2010; and |
• | $126.6 million of cash used in 2009 to settle foreign exchange contracts on intercompany financing arrangements, which is included in accrued liabilities and other in 2009, with similar settlements not occurring in 2010. |
2011 | 2010 | 2009 | ||||||
Accounts receivable | 61 | 62 | 57 | |||||
Inventory | 68 | 69 | 70 | |||||
Accounts payable | (46 | ) | (47 | ) | (44 | ) | ||
Cash conversion cycle | 83 | 84 | 83 |
• | Cash and cash equivalents at December 31, 2011 were $170.2 million, and the Company had $800.0 million and $100.0 million of borrowing capacity under its revolving credit facility and receivables facility, respectively. |
• | Working capital at December 31, 2011 was $487.1 million compared to $466.1 million at December 31, 2010, and the current ratio at December 31, 2011 was 1.29:1 compared to 1.28:1 at December 31, 2010. The increase in working capital and the current ratio is primarily attributable to a higher cash balance and lower accrued compensation, partially offset by higher combined levels of short-term and current portion of long-term debt. |
• | The Company monitors its overall capitalization by evaluating total debt to total capitalization. Total debt to total capitalization is defined as the sum of short- and long-term debt, less cash, divided by the sum of total debt and stockholders’ equity, less cash. Total debt to total capitalization was 0.52:1 and 0.54:1 at December 31, 2011 and December 31, 2010, respectively. |
2011 | 2010 | ||||||||||||||
Short-term Borrowing Arrangement | Maximum | Average | Maximum | Average | |||||||||||
Commercial paper | $ | 214.5 | $ | 80.0 | $ | 206.0 | $ | 24.9 | |||||||
Receivables financing facility | 200.0 | 160.1 | 140.0 | 35.9 |
2011 | 2010 | 2009 | |||||||||
Average outstanding debt | $ | 2,351.3 | $ | 2,461.0 | $ | 2,843.7 | |||||
Average interest rate (1) | 3.6 | % | 4.8 | % | 4.9 | % |
Senior Debt Credit Rating | Short-term Debt Credit Rating | Outlook | |||
Moody’s Investors Service | Baa3 | P-3 | Stable | ||
Standard & Poor’s | BBB- | A-3 | Stable | ||
Fitch Ratings | BBB | F-2 | Stable |
Payments Due by Period | |||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||
Debt (1) | $ | 2,176.8 | $ | 367.5 | $ | 503.0 | $ | — | $ | 1,306.3 | |||||
Interest on debt (2) | 762.5 | 91.1 | 145.2 | 134.4 | 391.8 | ||||||||||
Operating lease obligations (3) | 408.2 | 110.7 | 139.8 | 71.3 | 86.4 | ||||||||||
Purchase obligations (4) | 630.3 | 477.3 | 153.0 | — | — | ||||||||||
Total contractual obligations (5) | $ | 3,977.8 | $ | 1,046.6 | $ | 941.0 | $ | 205.7 | $ | 1,784.5 |
(1) | Amounts represent contractual obligations based on the earliest date that the obligation may become due, excluding interest, based on borrowings outstanding as of December 31, 2011. For further information relating to these obligations, see Footnote 9 of the Notes to Consolidated Financial Statements. |
(2) | Amounts represent estimated interest payable on borrowings outstanding as of December 31, 2011, excluding the impact of interest rate swaps that adjust the fixed rate to a floating rate for $250.0 million of medium-term notes. Interest on floating-rate debt was estimated using the rate in effect as of December 31, 2011. For further information, see Footnote 9 of the Notes to Consolidated Financial Statements. |
(3) | Amounts represent contractual minimum lease obligations on operating leases as of December 31, 2011. For further information relating to these obligations, see Footnote 12 of the Notes to Consolidated Financial Statements. |
(4) | Primarily consists of purchase commitments entered into as of December 31, 2011 for finished goods, raw materials, components and services pursuant to legally enforceable and binding obligations, which include all significant terms. |
(5) | Total does not include contractual obligations reported on the December 31, 2011 balance sheet as current liabilities, except for current portion of long-term debt and short-term debt. |
• | Discount rates: The Company generally estimates the discount rate for its pension and other postretirement benefit obligations using an iterative process based on a hypothetical investment in a portfolio of high-quality bonds that approximate the estimated cash flows of the pension and other postretirement benefit obligations. The Company believes this approach permits a matching of future cash outflows related to benefit payments with future cash inflows associated |
• | Health care cost trend rate: The Company's health care cost trend rate is based on historical retiree cost data, near-term health care outlook, and industry benchmarks and surveys. |
• | Expected return on plan assets: The Company's expected return on plan assets is derived from reviews of asset allocation strategies and historical and anticipated future long-term performance of individual asset classes. The Company's analysis gives consideration to historical returns and long-term, prospective rates of return. |
• | Mortality rates: Mortality rates are based on actual and projected plan experience. |
• | Rate of compensation increase: The rate of compensation increases reflects the Company's long-term actual experience and its outlook, including consideration of expected rates of inflation. |
U.S. | International | |||||
Pension plan assets and obligations, net: | ||||||
Prepaid benefit cost | $ | — | $ | 23.9 | ||
Accrued current benefit cost | (17.7 | ) | (4.6 | ) | ||
Accrued noncurrent benefit cost | (402.3 | ) | (71.1 | ) | ||
Net liability recognized in the Consolidated Balance Sheet | $ | (420.0 | ) | $ | (51.8 | ) |
U.S. | ||||||
Other postretirement benefit obligations: | ||||||
Accrued current benefit cost | $ | (13.6 | ) | |||
Accrued noncurrent benefit cost | (151.6 | ) | ||||
Liability recognized in the Consolidated Balance Sheet | $ | (165.2 | ) |
2011 | 2010 | 2009 | |||||||
Net pension cost | $ | 19.5 | $ | 21.5 | $ | 18.1 | |||
Net postretirement benefit costs | 8.4 | 9.2 | 8.7 | ||||||
Total | $ | 27.9 | $ | 30.7 | $ | 26.8 |
Impact on 2011 Expense | |
25 basis point decrease in discount rate | $1.0 |
25 basis point increase in discount rate | $(1.0) |
25 basis point decrease in expected return on assets | $2.8 |
25 basis point increase in expected return on assets | $(2.8) |
December 31, 2011 Impact on PBO | |
25 basis point decrease in discount rate | $57.8 |
25 basis point increase in discount rate | $(54.8) |
2011 | 2010 | 2009 | 2011 vs. 2010 % Change | 2010 vs. 2009 % Change | |||||||||||
U.S. | $ | 3,915.7 | $ | 3,870.3 | $ | 3,806.8 | 1.2 | % | 1.7 | % | |||||
Non-U.S | 1,948.9 | 1,787.9 | 1,676.6 | 9.0 | 6.6 | ||||||||||
$ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 | 3.6 | % | 3.2 | % |
• | Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. |
• | Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
• | Level 3: Unobservable inputs that reflect the reporting entity's own assumptions. |
Prepaid expenses and other | $ | 2.4 | |
Other assets | $ | 35.8 |
Market Risk (1) | 2011 Average | December 31, 2011 | 2010 Average | December 31, 2010 | Confidence Level | ||||||||||||||
Interest rates | $ | 10.3 | $ | 10.6 | $ | 9.8 | $ | 11.5 | 95 | % | |||||||||
Foreign exchange | $ | 11.8 | $ | 15.5 | $ | 12.2 | $ | 11.2 | 95 | % |
(1) | The Company generally does not enter into material derivative contracts for commodities; therefore, commodity price risk is not shown because the amounts are not material. |
NEWELL RUBBERMAID INC. |
Atlanta, Georgia |
February 29, 2012 |
/s/ Ernst & Young LLP | |
Atlanta, Georgia | |
February 29, 2012 |
/s/ Ernst & Young LLP | |
Atlanta, Georgia | |
February 29, 2012 |
Year Ended December 31, | 2011 | 2010 | 2009 | ||||||||
Net sales | $ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 | |||||
Cost of products sold | 3,659.4 | 3,509.5 | 3,453.3 | ||||||||
Gross margin | 2,205.2 | 2,148.7 | 2,030.1 | ||||||||
Selling, general and administrative expenses | 1,515.3 | 1,447.8 | 1,354.8 | ||||||||
Impairment charges | 382.6 | — | — | ||||||||
Restructuring costs | 50.1 | 77.4 | 100.0 | ||||||||
Operating income | 257.2 | 623.5 | 575.3 | ||||||||
Nonoperating expenses: | |||||||||||
Interest expense, net of interest income of $2.2, $3.5 and $6.3 in 2011, 2010 and 2009, respectively | 86.2 | 118.4 | 140.0 | ||||||||
Losses related to extinguishments of debt | 4.8 | 218.6 | 4.7 | ||||||||
Other expense (income), net | 13.7 | (7.3 | ) | 2.0 | |||||||
Net nonoperating expenses | 104.7 | 329.7 | 146.7 | ||||||||
Income before income taxes | 152.5 | 293.8 | 428.6 | ||||||||
Income tax expense | 17.9 | 5.6 | 142.8 | ||||||||
Income from continuing operations | 134.6 | 288.2 | 285.8 | ||||||||
(Loss) income from discontinued operations, net of tax | (9.4 | ) | 4.6 | (0.3 | ) | ||||||
Net income | $ | 125.2 | $ | 292.8 | $ | 285.5 | |||||
Weighted-average shares outstanding: | |||||||||||
Basic | 293.6 | 282.4 | 280.8 | ||||||||
Diluted | 296.2 | 305.4 | 294.4 | ||||||||
Earnings per share: | |||||||||||
Basic: | |||||||||||
Income from continuing operations | $ | 0.46 | $ | 1.02 | $ | 1.02 | |||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | |||||||
Net income | $ | 0.43 | $ | 1.04 | $ | 1.02 | |||||
Diluted: | |||||||||||
Income from continuing operations | $ | 0.45 | $ | 0.94 | $ | 0.97 | |||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | |||||||
Net income | $ | 0.42 | $ | 0.96 | $ | 0.97 | |||||
Dividends per share | $ | 0.29 | $ | 0.20 | $ | 0.26 |
December 31, | 2011 | 2010 | |||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 170.2 | $ | 139.6 | |||
Accounts receivable, net of allowances of $36.0 for 2011 and $43.0 for 2010 | 1,002.0 | 997.9 | |||||
Inventories, net | 699.9 | 701.6 | |||||
Deferred income taxes | 130.7 | 179.2 | |||||
Prepaid expenses and other | 145.2 | 113.7 | |||||
Total Current Assets | 2,148.0 | 2,132.0 | |||||
Property, plant and equipment, net | 551.4 | 529.3 | |||||
Goodwill | 2,366.0 | 2,749.5 | |||||
Other intangible assets, net | 666.1 | 648.3 | |||||
Deferred income taxes | 120.2 | 38.6 | |||||
Other assets | 309.2 | 307.6 | |||||
Total Assets | $ | 6,160.9 | $ | 6,405.3 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 468.5 | $ | 472.5 | |||
Accrued compensation | 131.4 | 190.2 | |||||
Other accrued liabilities | 693.5 | 698.2 | |||||
Short-term debt | 103.6 | 135.0 | |||||
Current portion of long-term debt | 263.9 | 170.0 | |||||
Total Current Liabilities | 1,660.9 | 1,665.9 | |||||
Long-term debt | 1,809.3 | 2,063.9 | |||||
Other noncurrent liabilities | 838.1 | 770.0 | |||||
Stockholders’ Equity: | |||||||
Preferred stock, authorized shares, 10.0 at $1.00 par value | — | — | |||||
None issued and outstanding | |||||||
Common stock, authorized shares, 800.0 at $1.00 par value | 305.3 | 307.2 | |||||
Outstanding shares, before treasury: | |||||||
2011 – 305.3 | |||||||
2010 – 307.2 | |||||||
Treasury stock, at cost: | (432.8 | ) | (425.7 | ) | |||
Shares held: | |||||||
2011 – 17.0 | |||||||
2010 – 16.7 | |||||||
Additional paid-in capital | 586.3 | 568.2 | |||||
Retained earnings | 2,097.3 | 2,057.3 | |||||
Accumulated other comprehensive loss | (707.0 | ) | (605.0 | ) | |||
Stockholders’ Equity Attributable to Parent | 1,849.1 | 1,902.0 | |||||
Stockholders’ Equity Attributable to Noncontrolling Interests | 3.5 | 3.5 | |||||
Total Stockholders’ Equity | 1,852.6 | 1,905.5 | |||||
Total Liabilities and Stockholders’ Equity | $ | 6,160.9 | $ | 6,405.3 |
Year Ended December 31, | 2011 | 2010 | 2009 | ||||||||
Operating Activities: | |||||||||||
Net income | $ | 125.2 | $ | 292.8 | $ | 285.5 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 161.6 | 172.3 | 175.1 | ||||||||
Impairment charges | 382.6 | — | — | ||||||||
Loss on disposal of discontinued operations | 13.9 | — | — | ||||||||
Losses related to extinguishments of debt | 4.8 | 218.6 | 4.7 | ||||||||
Deferred income taxes | (4.8 | ) | (6.1 | ) | 14.9 | ||||||
Non-cash restructuring costs | 7.0 | 6.3 | 32.4 | ||||||||
Stock-based compensation expense | 43.0 | 36.5 | 35.1 | ||||||||
Other, net | 11.7 | 21.9 | 16.4 | ||||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | |||||||||||
Accounts receivable | (17.6 | ) | (103.6 | ) | 98.0 | ||||||
Inventories | (21.5 | ) | (14.5 | ) | 243.1 | ||||||
Accounts payable | 3.3 | 39.1 | (103.6 | ) | |||||||
Accrued liabilities and other | (147.9 | ) | (80.7 | ) | (198.8 | ) | |||||
Net Cash Provided by Operating Activities | 561.3 | 582.6 | 602.8 | ||||||||
Investing Activities: | |||||||||||
Acquisitions and acquisition-related activity | (20.0 | ) | (1.5 | ) | (13.7 | ) | |||||
Capital expenditures | (222.9 | ) | (164.7 | ) | (153.3 | ) | |||||
Proceeds from sales of businesses and other noncurrent assets | 44.3 | 16.8 | 17.6 | ||||||||
Other | (7.8 | ) | (4.0 | ) | — | ||||||
Net Cash Used in Investing Activities | (206.4 | ) | (153.4 | ) | (149.4 | ) | |||||
Financing Activities: | |||||||||||
Short-term borrowings, net | (34.4 | ) | 133.6 | 192.5 | |||||||
Proceeds from issuance of debt, net of debt issuance costs | 3.3 | 547.3 | 634.8 | ||||||||
Proceeds from issuance of warrants | — | — | 32.7 | ||||||||
Purchase of call options | — | — | (69.0 | ) | |||||||
Payments for settlement of warrants | — | (298.4 | ) | — | |||||||
Proceeds from settlement of call options | — | 369.5 | — | ||||||||
Repurchase of shares of common stock | (46.1 | ) | (500.1 | ) | — | ||||||
Payments on and for the settlement of notes payable and debt | (151.0 | ) | (710.8 | ) | (1,113.0 | ) | |||||
Cash consideration paid for exchange of convertible notes (1) | (3.1 | ) | (53.0 | ) | — | ||||||
Cash dividends | (84.9 | ) | (55.4 | ) | (71.4 | ) | |||||
Purchases of noncontrolling interests in consolidated subsidiaries | — | — | (29.2 | ) | |||||||
Other, net | (8.4 | ) | (4.6 | ) | (4.4 | ) | |||||
Net Cash Used in Financing Activities | (324.6 | ) | (571.9 | ) | (427.0 | ) | |||||
Currency rate effect on cash and cash equivalents | 0.3 | 4.0 | (23.5 | ) | |||||||
Increase (Decrease) in Cash and Cash Equivalents | 30.6 | (138.7 | ) | 2.9 | |||||||
Cash and Cash Equivalents at Beginning of Year | 139.6 | 278.3 | 275.4 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 170.2 | $ | 139.6 | $ | 278.3 | |||||
Supplemental cash flow disclosures — cash paid during the year for: | |||||||||||
Income taxes, net of refunds | $ | 36.6 | $ | 80.0 | $ | 111.7 | |||||
Interest | $ | 89.1 | $ | 109.4 | $ | 120.6 |
Common Stock | Treasury Stock | Additional Paid- In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Stockholders’ Equity Attributable to Parent | Non-controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||
Balance at December 31, 2008 | $ | 293.1 | $ | (418.0 | ) | $ | 606.7 | $ | 1,606.6 | $ | (502.4 | ) | $ | 1,586.0 | $ | 2.6 | $ | 1,588.6 | ||||||||||||||
Net income | — | — | — | 285.5 | — | 285.5 | — | 285.5 | ||||||||||||||||||||||||
Foreign currency translation, including $10.2 of tax benefits | — | — | — | — | 75.9 | 75.9 | — | 75.9 | ||||||||||||||||||||||||
Unrecognized pension and other postretirement costs, net of $17.4 of tax benefits | — | — | — | — | (109.3 | ) | (109.3 | ) | — | (109.3 | ) | |||||||||||||||||||||
Loss on derivative instruments, including $46.3 of tax expense | — | — | — | — | (49.4 | ) | (49.4 | ) | — | (49.4 | ) | |||||||||||||||||||||
Total comprehensive income | $ | 202.7 | — | $ | 202.7 | |||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (71.4 | ) | — | (71.4 | ) | — | (71.4 | ) | |||||||||||||||||||||
Cash dividends for noncontrolling interests | — | — | — | — | — | — | (1.9 | ) | (1.9 | ) | ||||||||||||||||||||||
Stock-based compensation and other | 0.9 | (2.6 | ) | 34.7 | — | — | 33.0 | 3.5 | 36.5 | |||||||||||||||||||||||
Purchase of call options, net of tax | — | — | (43.0 | ) | — | — | (43.0 | ) | — | (43.0 | ) | |||||||||||||||||||||
Issuance and sale of warrants | — | — | 32.7 | — | — | 32.7 | — | 32.7 | ||||||||||||||||||||||||
Discount on convertible notes, net of issuance costs and tax | — | — | 41.0 | — | — | 41.0 | — | 41.0 | ||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | (2.3 | ) | — | — | (2.3 | ) | (0.7 | ) | (3.0 | ) | ||||||||||||||||||||
Balance at December 31, 2009 | $ | 294.0 | $ | (420.6 | ) | $ | 669.8 | $ | 1,820.7 | $ | (585.2 | ) | $ | 1,778.7 | $ | 3.5 | $ | 1,782.2 | ||||||||||||||
Net income | — | — | — | 292.8 | — | 292.8 | — | 292.8 | ||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (13.1 | ) | (13.1 | ) | — | (13.1 | ) | |||||||||||||||||||||
Unrecognized pension and other postretirement costs, net of $30.3 of tax benefits | — | — | — | — | (7.0 | ) | (7.0 | ) | — | (7.0 | ) | |||||||||||||||||||||
Gain on derivative instruments, net of $0 tax | — | — | — | — | 0.3 | 0.3 | — | 0.3 | ||||||||||||||||||||||||
Total comprehensive income | $ | 273.0 | — | $ | 273.0 | |||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (55.4 | ) | — | (55.4 | ) | — | (55.4 | ) | |||||||||||||||||||||
Stock-based compensation and other | 1.3 | (5.1 | ) | 35.7 | (0.8 | ) | — | 31.1 | — | 31.1 | ||||||||||||||||||||||
Settlement of call options | — | — | 369.5 | — | — | 369.5 | — | 369.5 | ||||||||||||||||||||||||
Settlement of warrants | — | — | (298.4 | ) | — | — | (298.4 | ) | — | (298.4 | ) | |||||||||||||||||||||
Common stock issued for convertible notes exchange | 37.7 | — | 600.3 | — | — | 638.0 | — | 638.0 | ||||||||||||||||||||||||
Retirement of common stock purchased under the ASB | (25.8 | ) | — | (474.3 | ) | — | — | (500.1 | ) | — | (500.1 | ) | ||||||||||||||||||||
Extinguishment of equity component of convertible notes | — | — | (334.4 | ) | — | — | (334.4 | ) | — | (334.4 | ) | |||||||||||||||||||||
Balance at December 31, 2010 | $ | 307.2 | $ | (425.7 | ) | $ | 568.2 | $ | 2,057.3 | $ | (605.0 | ) | $ | 1,902.0 | $ | 3.5 | $ | 1,905.5 | ||||||||||||||
Net income | — | — | — | 125.2 | — | 125.2 | — | 125.2 | ||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (27.7 | ) | (27.7 | ) | — | (27.7 | ) | |||||||||||||||||||||
Unrecognized pension and other postretirement costs, net of $36.5 of tax benefits | — | — | — | — | (75.9 | ) | (75.9 | ) | — | (75.9 | ) | |||||||||||||||||||||
Gain on derivative instruments, net of $1.0 of tax expense | — | — | — | — | 1.6 | 1.6 | — | 1.6 | ||||||||||||||||||||||||
Total comprehensive income | $ | 23.2 | — | $ | 23.2 | |||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (84.9 | ) | — | (84.9 | ) | — | (84.9 | ) | |||||||||||||||||||||
Stock-based compensation and other | 1.2 | (7.1 | ) | 42.2 | (0.3 | ) | — | 36.0 | — | 36.0 | ||||||||||||||||||||||
Common stock issued for convertible notes exchange | 2.3 | — | 42.4 | — | — | 44.7 | — | 44.7 | ||||||||||||||||||||||||
Retirement of common stock purchased under the ASB | (2.0 | ) | — | 2.0 | — | — | — | — | — | |||||||||||||||||||||||
Retirement of common stock purchased under the 2011 SRP | (3.4 | ) | — | (42.7 | ) | — | — | (46.1 | ) | — | (46.1 | ) | ||||||||||||||||||||
Extinguishment of equity component of convertible notes | — | — | (25.8 | ) | — | — | (25.8 | ) | — | (25.8 | ) | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 305.3 | $ | (432.8 | ) | $ | 586.3 | $ | 2,097.3 | $ | (707.0 | ) | $ | 1,849.1 | $ | 3.5 | $ | 1,852.6 |
2011 | 2010 | 2009 | |||||||||
Net sales | $ | 58.8 | $ | 101.0 | $ | 94.2 | |||||
Income (loss) from operations, net of income tax expense (benefit) of $2.6, $2.0 and $(0.1) for 2011, 2010 and 2009, respectively | $ | 5.8 | $ | 4.6 | $ | (0.3 | ) | ||||
Loss on disposal, including income tax expense of $1.3 | (15.2 | ) | — | — | |||||||
(Loss) income from discontinued operations, net of tax | $ | (9.4 | ) | $ | 4.6 | $ | (0.3 | ) |
Foreign Currency Translation Loss | Unrecognized Pension & Other Postretirement Costs, net of tax | Derivative Hedging Income (Loss), net of tax | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at December 31, 2010 | $ | (179.4 | ) | $ | (425.4 | ) | $ | (0.2 | ) | $ | (605.0 | ) | |||
Current period change | (27.7 | ) | (75.9 | ) | 1.6 | (102.0 | ) | ||||||||
Balance at December 31, 2011 | $ | (207.1 | ) | $ | (501.3 | ) | $ | 1.4 | $ | (707.0 | ) |
2011 | |||
Facility and other exit costs, including impairments | $ | 8.4 | |
Employee severance, termination benefits and relocation costs | 18.3 | ||
Exited contractual commitments and other | 4.5 | ||
$ | 31.2 |
December 31, 2010 | December 31, 2011 | ||||||||||||||
Balance | Provision | Costs Incurred | Balance | ||||||||||||
Facility and other exit costs, including impairments | $ | — | $ | 8.4 | $ | (8.4 | ) | $ | — | ||||||
Employee severance, termination benefits and relocation costs | — | 18.3 | (7.1 | ) | 11.2 | ||||||||||
Exited contractual commitments and other | — | 4.5 | — | 4.5 | |||||||||||
$ | — | $ | 31.2 | $ | (15.5 | ) | $ | 15.7 |
December 31, 2010 | December 31, 2011 | ||||||||||||||
Segment | Balance | Provision | Costs Incurred | Balance | |||||||||||
Home & Family | $ | — | $ | 10.6 | $ | (1.0 | ) | $ | 9.6 | ||||||
Office Products | — | 4.4 | (1.6 | ) | 2.8 | ||||||||||
Tools, Hardware & Commercial Products | — | 0.8 | (0.3 | ) | 0.5 | ||||||||||
Corporate | — | 15.4 | (12.6 | ) | 2.8 | ||||||||||
$ | — | $ | 31.2 | $ | (15.5 | ) | $ | 15.7 |
December 31, 2010 | December 31, 2011 | ||||||||||||||
Balance | Provision | Costs Incurred | Balance | ||||||||||||
Employee severance, termination benefits and relocation costs | $ | — | $ | 14.9 | $ | (8.9 | ) | $ | 6.0 | ||||||
Exited contractual commitments and other | — | 4.0 | (1.9 | ) | 2.1 | ||||||||||
$ | — | $ | 18.9 | $ | (10.8 | ) | $ | 8.1 |
2010 | 2009 | Since Inception Through December 31, 2010 | |||||||||
Facility and other exit costs, including impairments | $ | 6.0 | $ | 32.4 | $ | 178.4 | |||||
Employee severance, termination benefits and relocation costs | 53.5 | 48.8 | 241.0 | ||||||||
Exited contractual commitments and other | 17.9 | 18.8 | 79.0 | ||||||||
$ | 77.4 | $ | 100.0 | $ | 498.4 |
December 31, 2010 | December 31, 2011 | ||||||||||||||
Balance | Provision | Costs Incurred | Balance | ||||||||||||
Facility and other exit costs, including impairments | $ | — | $ | — | $ | — | $ | — | |||||||
Employee severance, termination benefits and relocation costs | 22.2 | — | (18.9 | ) | 3.3 | ||||||||||
Exited contractual commitments and other | 11.3 | — | (5.4 | ) | 5.9 | ||||||||||
$ | 33.5 | $ | — | $ | (24.3 | ) | $ | 9.2 |
December 31, 2009 | December 31, 2010 | ||||||||||||||
Balance | Provision | Costs Incurred | Balance | ||||||||||||
Facility and other exit costs, including impairments | $ | — | $ | 6.0 | $ | (6.0 | ) | $ | — | ||||||
Employee severance, termination benefits and relocation costs | 23.3 | 53.5 | (54.6 | ) | 22.2 | ||||||||||
Exited contractual commitments and other | 11.8 | 17.9 | (18.4 | ) | 11.3 | ||||||||||
$ | 35.1 | $ | 77.4 | $ | (79.0 | ) | $ | 33.5 |
Segment | 2011 | 2010 | 2009 | Since inception through December 31, 2010 | |||||||||||
Home & Family | $ | — | $ | 13.7 | $ | 24.0 | $ | 144.8 | |||||||
Office Products | — | 24.2 | 34.8 | 186.9 | |||||||||||
Tools, Hardware & Commercial Products | — | 9.4 | 16.6 | 88.4 | |||||||||||
Corporate | — | 30.1 | 24.6 | 78.3 | |||||||||||
$ | — | $ | 77.4 | $ | 100.0 | $ | 498.4 |
December 31, 2010 | December 31, 2011 | ||||||||||||||
Segment | Balance | Provision | Costs Incurred | Balance | |||||||||||
Home & Family | $ | 4.0 | $ | — | $ | (4.0 | ) | $ | — | ||||||
Office Products | 11.1 | — | (8.4 | ) | 2.7 | ||||||||||
Tools, Hardware & Commercial Products | 4.8 | — | (1.1 | ) | 3.7 | ||||||||||
Corporate | 13.6 | — | (10.8 | ) | 2.8 | ||||||||||
$ | 33.5 | $ | — | $ | (24.3 | ) | $ | 9.2 |
December 31, 2009 | December 31, 2010 | ||||||||||||||
Segment | Balance | Provision | Costs Incurred | Balance | |||||||||||
Home & Family | $ | 8.0 | $ | 13.7 | $ | (17.7 | ) | $ | 4.0 | ||||||
Office Products | 15.7 | 24.2 | (28.8 | ) | 11.1 | ||||||||||
Tools, Hardware & Commercial Products | 3.9 | 9.4 | (8.5 | ) | 4.8 | ||||||||||
Corporate | 7.5 | 30.1 | (24.0 | ) | 13.6 | ||||||||||
$ | 35.1 | $ | 77.4 | $ | (79.0 | ) | $ | 33.5 |
Segment | 2011 | 2010 | 2009 | ||||||||
Home & Family | $ | 10.6 | $ | 13.7 | $ | 24.0 | |||||
Office Products | 4.4 | 24.2 | 34.8 | ||||||||
Tools, Hardware & Commercial Products | 0.8 | 9.4 | 16.6 | ||||||||
Corporate | 34.3 | 30.1 | 24.6 | ||||||||
$ | 50.1 | $ | 77.4 | $ | 100.0 |
2011 | 2010 | ||||||
Materials and supplies | $ | 130.8 | $ | 116.8 | |||
Work in process | 105.6 | 101.0 | |||||
Finished products | 463.5 | 483.8 | |||||
$ | 699.9 | $ | 701.6 |
2011 | 2010 | |||||
Land | $ | 28.5 | $ | 32.4 | ||
Buildings and improvements | 381.0 | 370.0 | ||||
Machinery and equipment | 1,743.4 | 1,709.8 | ||||
2,152.9 | 2,112.2 | |||||
Accumulated depreciation | (1,601.5 | ) | (1,582.9 | ) | ||
$ | 551.4 | $ | 529.3 |
Segment | December 31, 2010 Balance | Acquisitions | Impairment Charges | Other Adjustments (1) | Foreign Currency | December 31, 2011 Balance (2) | ||||||||||||
Home & Family | $ | 662.6 | $ | — | $ | (305.5 | ) | $ | — | $ | 3.8 | $ | 360.9 | |||||
Office Products | 1,135.7 | 2.2 | — | 10.0 | (10.4 | ) | 1,137.5 | |||||||||||
Tools, Hardware & Commercial Products | 951.2 | — | (64.7 | ) | (19.3 | ) | 0.4 | 867.6 | ||||||||||
$ | 2,749.5 | $ | 2.2 | $ | (370.2 | ) | $ | (9.3 | ) | $ | (6.2 | ) | $ | 2,366.0 |
Segment | December 31, 2009 Balance | Acquisitions | Impairment Charges | Other Adjustments(1) | Foreign Currency | December 31, 2010 Balance (2) | ||||||||||||
Home & Family | $ | 648.7 | $ | — | $ | — | $ | — | $ | 13.9 | $ | 662.6 | ||||||
Office Products | 1,149.5 | — | — | 1.5 | (15.3 | ) | 1,135.7 | |||||||||||
Tools, Hardware & Commercial Products | 956.1 | — | — | — | (4.9 | ) | 951.2 | |||||||||||
$ | 2,754.3 | $ | — | $ | — | $ | 1.5 | $ | (6.3 | ) | $ | 2,749.5 |
(1) | Office Products includes payments of $10.0 million and $1.5 million in 2011 and 2010, respectively, for contingent payments relating to the Company's acquisition of PSI Systems, Inc. (“Endicia”) in 2007. The contingent payments are based on Endicia’s post-acquisition revenues. |
(2) | Cumulative impairment charges relating to goodwill since January 1, 2002 were $1,642.4 million and $1,272.2 million as of December 31, 2011 and 2010, respectively. Of these amounts, $538.0 million was included in cumulative effect of accounting change, and $298.9 million was included in discontinued operations. |
2011 | 2010 | ||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||
Trade names - indefinite life | $ | 311.3 | $ | — | $ | 311.3 | $ | 317.7 | $ | — | $ | 317.7 | |||||||
Trade names - other | 42.3 | (25.1 | ) | 17.2 | 46.2 | (23.2 | ) | 23.0 | |||||||||||
Capitalized software | 387.1 | (125.8 | ) | 261.3 | 317.2 | (100.8 | ) | 216.4 | |||||||||||
Other (1) | 206.1 | (129.8 | ) | 76.3 | 207.6 | (116.4 | ) | 91.2 | |||||||||||
$ | 946.8 | $ | (280.7 | ) | $ | 666.1 | $ | 888.7 | $ | (240.4 | ) | $ | 648.3 |
Weighted-Average Amortization Period (in years) | Amortization Periods (in years) | |
Trade names - indefinite life | N/A | N/A |
Trade names - other | 10 | 3 – 20 years |
Capitalized software | 10 | 3 – 12 years |
Other (1) | 8 | 3 – 14 years |
9 |
2012 | 2013 | 2014 | 2015 | 2016 |
$54.9 | $50.6 | $48.3 | $42.0 | $38.9 |
2011 | 2010 | ||||||
Customer accruals | $ | 250.7 | $ | 280.9 | |||
Accruals for manufacturing, marketing and freight expenses | 105.1 | 108.9 | |||||
Accrued self-insurance liabilities | 66.8 | 73.1 | |||||
Accrued pension, defined contribution and other postretirement benefits | 54.6 | 45.3 | |||||
Accrued contingencies, primarily legal, environmental and warranty | 37.2 | 39.1 | |||||
Accrued restructuring (See Footnote 4) | 33.0 | 33.5 | |||||
Other | 146.1 | 117.4 | |||||
Other accrued liabilities | $ | 693.5 | $ | 698.2 |
2011 | 2010 | ||||||
Medium-term notes | $ | 1,632.3 | $ | 1,623.0 | |||
Term loan | — | 150.0 | |||||
Convertible notes | 0.1 | 17.5 | |||||
Junior convertible subordinated debentures | 436.7 | 436.7 | |||||
Commercial paper | — | 34.0 | |||||
Receivables facility | 100.0 | 100.0 | |||||
Other debt | 7.7 | 7.7 | |||||
Total debt | 2,176.8 | 2,368.9 | |||||
Short-term debt | (103.6 | ) | (135.0 | ) | |||
Current portion of long-term debt | (263.9 | ) | (170.0 | ) | |||
Long-term debt | $ | 1,809.3 | $ | 2,063.9 |
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | ||||||||||||||
$ | 367.5 | $ | 503.0 | $ | — | $ | — | $ | — | $ | 1,306.3 | $ | 2,176.8 |
2011 | 2010 | |||||
6.75% senior notes due 2012 | $ | 250.0 | $ | 250.0 | ||
5.50% senior notes due 2013 | 500.0 | 500.0 | ||||
6.25% senior notes due 2018 | 250.0 | 250.0 | ||||
10.60% senior notes due 2019 | 20.7 | 20.7 | ||||
4.70% senior notes due 2020 | 550.0 | 550.0 | ||||
6.11% senior notes due 2028 | 10.0 | 10.0 | ||||
Interest rate swaps | 35.8 | 42.3 | ||||
Unamortized gain on termination of interest rate swaps | 15.8 | — | ||||
Total medium-term notes | $ | 1,632.3 | $ | 1,623.0 |
Assets | Liabilities | |||||||||||||||||||
Derivatives designated as hedging instruments | Balance Sheet Location | 2011 | 2010 | Balance Sheet Location | 2011 | 2010 | ||||||||||||||
Interest rate swaps | Other assets | $ | 35.8 | $ | 42.3 | Other noncurrent liabilities | $ | — | $ | — | ||||||||||
Foreign exchange contracts on inventory-related purchases | Prepaid expenses and other | 1.9 | 1.4 | Other accrued liabilities | — | 2.0 | ||||||||||||||
Foreign exchange contracts on intercompany borrowings | Prepaid expenses and other | 0.5 | 1.2 | Other accrued liabilities | — | — | ||||||||||||||
Total assets | $ | 38.2 | $ | 44.9 | Total liabilities | $ | — | $ | 2.0 |
Derivatives in fair value relationships | Location of gain (loss) recognized in income | Amount of gain (loss) recognized in income | |||||||||||
2011 | 2010 | 2009 | |||||||||||
Interest rate swaps | Interest expense, net | $ | 16.2 | $ | 23.9 | $ | (43.9 | ) | |||||
Fixed-rate debt | Interest expense, net | $ | (16.2 | ) | $ | (23.9 | ) | $ | 43.9 |
Derivatives in cash flow hedging relationships | Location of gain (loss) recognized in income | Amount of gain (loss) reclassified from AOCI into income | |||||||||||
2011 | 2010 | 2009 | |||||||||||
Foreign exchange contracts on inventory-related purchases | Cost of products sold | $ | (5.1 | ) | $ | (1.8 | ) | $ | (2.6 | ) | |||
Foreign exchange contracts on intercompany borrowings | Interest expense, net | (0.7 | ) | 0.5 | 2.5 | ||||||||
$ | (5.8 | ) | $ | (1.3 | ) | $ | (0.1 | ) |
Derivatives in cash flow hedging relationships | Amount of gain (loss) recognized in AOCI | |||||||||||
2011 | 2010 | 2009 | ||||||||||
Foreign exchange contracts on inventory-related purchases | $ | (2.8 | ) | $ | (1.4 | ) | $ | (9.5 | ) | |||
Foreign exchange contracts on intercompany borrowings | 1.8 | 4.3 | 7.7 | |||||||||
$ | (1.0 | ) | $ | 2.9 | $ | (1.8 | ) |
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total |
$110.7 | $77.8 | $62.0 | $43.1 | $28.2 | $86.4 | $408.2 |
2012 | 2013 | 2014 | Total |
$477.3 | $76.0 | $77.0 | $630.3 |
U.S. | International | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | $ | 969.6 | $ | 910.8 | $ | 482.6 | $ | 499.8 | ||||
Service cost | 4.3 | 4.0 | 6.0 | 4.8 | ||||||||
Interest cost | 49.4 | 50.6 | 26.6 | 26.6 | ||||||||
Actuarial loss (gain) | 88.6 | 67.2 | 46.1 | (2.2 | ) | |||||||
Currency translation | — | — | (2.0 | ) | (19.9 | ) | ||||||
Benefits paid | (57.3 | ) | (63.0 | ) | (22.1 | ) | (31.7 | ) | ||||
Curtailments, settlement costs and other | 0.3 | — | (0.9 | ) | 5.2 | |||||||
Benefit obligation at end of year | $ | 1,054.9 | $ | 969.6 | $ | 536.3 | $ | 482.6 |
U.S. | International | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | $ | 635.0 | $ | 576.9 | $ | 426.3 | $ | 410.6 | ||||
Actual return on plan assets | 29.0 | 59.0 | 63.2 | 33.9 | ||||||||
Contributions | 28.2 | 62.1 | 20.3 | 21.3 | ||||||||
Currency translation | — | — | (0.2 | ) | (13.7 | ) | ||||||
Benefits paid | (57.3 | ) | (63.0 | ) | (22.1 | ) | (31.7 | ) | ||||
Settlement charges and other | — | — | (3.0 | ) | 5.9 | |||||||
Fair value of plan assets at end of year | $ | 634.9 | $ | 635.0 | $ | 484.5 | $ | 426.3 | ||||
Funded status at end of year | $ | (420.0 | ) | $ | (334.6 | ) | $ | (51.8 | ) | $ | (56.3 | ) |
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||
Prepaid benefit cost, included in other assets | $ | — | $ | — | $ | 23.9 | $ | 19.4 | ||||
Accrued current benefit cost, included in other accrued liabilities | (17.7 | ) | (7.7 | ) | (4.6 | ) | (4.0 | ) | ||||
Accrued noncurrent benefit cost, included in other noncurrent liabilities | (402.3 | ) | (326.9 | ) | (71.1 | ) | (71.7 | ) | ||||
Total | $ | (420.0 | ) | $ | (334.6 | ) | $ | (51.8 | ) | $ | (56.3 | ) |
Amounts recognized in AOCI: | ||||||||||||
Prior service cost | $ | (8.9 | ) | $ | (10.2 | ) | $ | 1.0 | $ | — | ||
Net loss | (679.6 | ) | (576.5 | ) | (71.5 | ) | (61.6 | ) | ||||
AOCI, pretax | $ | (688.5 | ) | $ | (586.7 | ) | $ | (70.5 | ) | $ | (61.6 | ) |
Accumulated benefit obligation | $ | 1,049.7 | $ | 964.1 | $ | 528.1 | $ | 474.3 |
U.S. | International | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Weighted-average assumptions used to determine benefit obligation: | ||||||||
Discount rate | 4.50 | % | 5.25 | % | 4.69 | % | 5.37 | % |
Long-term rate of compensation increase | 2.80 | % | 2.70 | % | 3.72 | % | 4.16 | % |
U.S. | International | |||||||||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |||||||||||||
Service cost-benefits earned during the year | $ | 4.3 | $ | 4.0 | $ | 4.8 | $ | 6.0 | $ | 4.8 | $ | 4.9 | ||||||
Interest cost on projected benefit obligation | 49.4 | 50.6 | 52.1 | 26.6 | 26.6 | 24.5 | ||||||||||||
Expected return on plan assets | (59.6 | ) | (57.5 | ) | (57.2 | ) | (28.3 | ) | (24.8 | ) | (22.2 | ) | ||||||
Amortization of: | ||||||||||||||||||
Prior service cost | 1.3 | 1.3 | 1.3 | 3.4 | — | — | ||||||||||||
Actuarial loss | 16.1 | 11.3 | 8.3 | 0.9 | 2.0 | 0.1 | ||||||||||||
Curtailment, settlement and termination benefit costs | 0.2 | — | — | (0.8 | ) | 3.2 | 1.3 | |||||||||||
Net pension cost | $ | 11.7 | $ | 9.7 | $ | 9.3 | $ | 7.8 | $ | 11.8 | $ | 8.6 |
U.S. | International | |||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||||||
Discount rate | 5.25 | % | 5.75 | % | 6.25 | % | 5.35 | % | 5.70 | % | 6.08 | % |
Long-term rate of return on plan assets | 8.25 | % | 8.25 | % | 8.50 | % | 6.39 | % | 6.32 | % | 5.65 | % |
Long-term rate of compensation increase | 2.70 | % | 3.00 | % | 4.00 | % | 4.02 | % | 4.22 | % | 3.83 | % |
U.S. | International | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | % of Total Assets as of December 31, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | % of Total Assets as of December 31, | ||||||||||||||||||||
2011 | (Level 1) | (Level 2) | (Level 3) | 2011 | 2010 | (Level 1) | (Level 2) | (Level 3) | 2011 | 2010 | |||||||||||||||||||
Equity (1) (7) | |||||||||||||||||||||||||||||
U.S. large cap | $ | 70.8 | $ | 50.4 | $ | — | $ | 121.2 | $ | 8.2 | $ | 1.7 | $ | — | $ | 9.9 | |||||||||||||
U.S. small cap | 23.1 | — | — | 23.1 | — | — | — | — | |||||||||||||||||||||
International | 25.6 | 84.0 | — | 109.6 | 42.0 | 3.1 | — | 45.1 | |||||||||||||||||||||
Total equity | 119.5 | 134.4 | — | 253.9 | 40% | 50% | 50.2 | 4.8 | — | 55.0 | 11% | 30% | |||||||||||||||||
Fixed income (2) (7) | |||||||||||||||||||||||||||||
U.S. Treasury | 56.3 | 15.7 | — | 72.0 | — | — | — | — | |||||||||||||||||||||
Other government | 16.9 | 14.1 | — | 31.0 | 32.3 | — | — | 32.3 | |||||||||||||||||||||
Asset-backed securities | — | 17.4 | — | 17.4 | — | — | — | — | |||||||||||||||||||||
Corporate bonds | 117.0 | 41.7 | — | 158.7 | 52.5 | 6.1 | — | 58.6 | |||||||||||||||||||||
Short-term investments | — | 7.2 | — | 7.2 | — | — | — | — | |||||||||||||||||||||
Total fixed income | 190.2 | 96.1 | — | 286.3 | 45 | 36 | 84.8 | 6.1 | — | 90.9 | 19 | 21 | |||||||||||||||||
Insurance contracts (3) | — | 18.4 | — | 18.4 | 3 | 3 | — | 178.5 | — | 178.5 | 37 | 24 | |||||||||||||||||
Venture capital and partnerships (4) | — | 1.8 | 46.0 | 47.8 | 7 | 7 | 17.6 | 5.5 | 0.3 | 23.4 | 5 | 9 | |||||||||||||||||
Real estate (5) | — | — | 22.7 | 22.7 | 4 | 3 | 3.5 | — | 5.6 | 9.1 | 2 | 2 | |||||||||||||||||
Cash and cash equivalents (6) | — | 5.8 | — | 5.8 | 1 | 1 | 68.4 | 0.1 | — | 68.5 | 14 | 9 | |||||||||||||||||
Other | — | — | — | — | — | — | 18.9 | 40.2 | — | 59.1 | 12 | 5 | |||||||||||||||||
Total | $ | 309.7 | $ | 256.5 | $ | 68.7 | $ | 634.9 | 100% | 100% | $ | 243.4 | $ | 235.2 | $ | 5.9 | $ | 484.5 | 100% | 100% |
U.S. | International | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | % of Total Assets as of December 31, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | % of Total Assets as of December 31, | ||||||||||||||||||||
2010 | (Level 1) | (Level 2) | (Level 3) | 2010 | 2009 | (Level 1) | (Level 2) | (Level 3) | 2010 | 2009 | |||||||||||||||||||
Equity (1) | |||||||||||||||||||||||||||||
U.S. large cap | $ | — | $ | 155.0 | $ | — | $ | 155.0 | $ | — | $ | 19.1 | $ | — | $ | 19.1 | |||||||||||||
U.S. small cap | — | 30.6 | — | 30.6 | 5.8 | — | — | 5.8 | |||||||||||||||||||||
International | — | 130.0 | — | 130.0 | 55.6 | 47.5 | — | 103.1 | |||||||||||||||||||||
Total equity | — | 315.6 | — | 315.6 | 50% | 53% | 61.4 | 66.6 | — | 128.0 | 30% | 18% | |||||||||||||||||
Fixed income (2) | |||||||||||||||||||||||||||||
U.S. Treasury | — | 71.5 | — | 71.5 | — | — | — | — | |||||||||||||||||||||
Other government | — | 31.4 | — | 31.4 | 17.3 | — | — | 17.3 | |||||||||||||||||||||
Asset-backed securities | — | 10.0 | — | 10.0 | — | — | — | — | |||||||||||||||||||||
Corporate bonds | — | 110.8 | — | 110.8 | 6.0 | 65.5 | — | 71.5 | |||||||||||||||||||||
Short-term investments | — | 7.9 | — | 7.9 | — | — | — | — | |||||||||||||||||||||
Total fixed income | — | 231.6 | — | 231.6 | 36 | 33 | 23.3 | 65.5 | — | 88.8 | 21 | 20 | |||||||||||||||||
Insurance contracts (3) | — | 17.5 | — | 17.5 | 3 | 3 | — | 100.8 | — | 100.8 | 24 | 26 | |||||||||||||||||
Venture capital and partnerships (4) | — | 2.4 | 42.7 | 45.1 | 7 | 6 | 17.0 | 18.6 | 4.7 | 40.3 | 9 | 7 | |||||||||||||||||
Real estate (5) | — | — | 19.2 | 19.2 | 3 | 3 | 2.2 | 1.5 | 6.0 | 9.7 | 2 | 2 | |||||||||||||||||
Cash and cash equivalents (6) | — | 5.5 | — | 5.5 | 1 | 1 | 5.3 | 34.2 | — | 39.5 | 9 | 24 | |||||||||||||||||
Other | — | — | 0.5 | 0.5 | — | 1 | — | 19.2 | — | 19.2 | 5 | 3 | |||||||||||||||||
Total | $ | — | $ | 572.6 | $ | 62.4 | $ | 635.0 | 100% | 100% | $ | 109.2 | $ | 306.4 | $ | 10.7 | $ | 426.3 | 100% | 100% |
(1) | Equity securities are primarily comprised of mutual funds and common/collective trust funds. Investments in mutual funds and common/collective trust funds are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date. The common/collective trust funds are generally actively managed investment vehicles. |
(2) | Fixed income investments are primarily comprised of mutual funds and common/collective trust funds that invest in corporate and government bonds. Investments in mutual funds and common/collective trust funds are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date. The investments in fixed income securities include both actively managed funds and index funds. |
(3) | The fair values of insurance contracts are estimated based on the future cash flows to be received under the contracts discounted to the present using a discount rate that approximates the discount rate used to measure the associated pension plan liabilities. |
(4) | Venture capital and partnerships are valued at net asset value, which is generally calculated using the most recent partnership financial reports. |
(5) | Real estate investments are generally investments in limited partnerships, real estate investment trusts and similar vehicles that invest in real estate. The values of the investments are generally based on the most recent financial reports of the investment vehicles. The managers of each of the investment vehicles estimate the values of the real estate assets underlying the real estate investments using third-party |
(6) | Cash and cash equivalents include investments in stable value funds. Stable value funds are generally invested in common trust funds and interest-bearing accounts. |
(7) | In the U.S. pension plan assets, certain changes were made to the equity and fixed income investments which resulted in transfers of pension plan assets from certain common/collective trust funds into separately managed investment accounts. The underlying investments in these separately managed accounts are primarily publicly-traded securities, and such investments have been valued using the quoted price as of December 31, 2011. Accordingly, these investments have been classified as Level 1 as of December 31, 2011. |
Venture Capital and Partnerships | Real Estate | Other | Total | |||||||||
Fair value as of January 1, 2010 | $ | 34.9 | $ | 25.2 | $ | 6.1 | $ | 66.2 | ||||
Realized gains (losses) | — | — | (1.1 | ) | (1.1 | ) | ||||||
Unrealized gains (losses) | 6.1 | 0.2 | (2.8 | ) | 3.5 | |||||||
Purchases, sales and settlements, net | 6.4 | (0.2 | ) | (1.7 | ) | 4.5 | ||||||
Fair value as of December 31, 2010 | $ | 47.4 | $ | 25.2 | $ | 0.5 | $ | 73.1 | ||||
Realized gains (losses) | — | — | (3.7 | ) | (3.7 | ) | ||||||
Unrealized gains (losses) | 3.2 | (0.5 | ) | 3.7 | 6.4 | |||||||
Purchases | 3.5 | 3.6 | — | 7.1 | ||||||||
Sales | (7.8 | ) | — | (0.5 | ) | (8.3 | ) | |||||
Fair value as of December 31, 2011 | $ | 46.3 | $ | 28.3 | $ | — | $ | 74.6 |
Asset Category | Target | |
U.S. | International | |
Equity | 45% | 23% |
Fixed income | 40 | 14 |
Insurance contracts | 5 | 24 |
Cash and equivalents | — | 21 |
Other investments (1) | 10 | 18 |
Total | 100% | 100% |
2011 | 2010 | |||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | $ | 166.5 | $ | 168.1 | ||
Service cost | 1.3 | 1.5 | ||||
Interest cost | 8.3 | 9.2 | ||||
Actuarial loss | 0.3 | 2.3 | ||||
Benefits paid, net | (11.2 | ) | (14.6 | ) | ||
Benefit obligation at end of year | $ | 165.2 | $ | 166.5 | ||
Funded status and net liability recognized at December 31 | $ | (165.2 | ) | $ | (166.5 | ) |
Amounts recognized in the Consolidated Balance Sheets: | ||||||
Accrued current benefit cost, included in other accrued liabilities | $ | (13.6 | ) | $ | (15.1 | ) |
Accrued noncurrent benefit cost, included in other noncurrent liabilities | (151.6 | ) | (151.4 | ) | ||
Total | $ | (165.2 | ) | $ | (166.5 | ) |
Amounts recognized in AOCI: | ||||||
Prior service credit | $ | 10.8 | $ | 13.3 | ||
Net loss | (26.6 | ) | (27.5 | ) | ||
AOCI, pretax | $ | (15.8 | ) | $ | (14.2 | ) |
2011 | 2010 | |
Weighted-average assumptions used to determine benefit obligation: | ||
Discount rate | 4.50% | 5.25% |
Long-term health care cost trend rate | 4.50% | 4.50% |
2011 | 2010 | 2009 | |||||||
Service cost-benefits earned during the year | $ | 1.3 | $ | 1.5 | $ | 1.5 | |||
Interest cost on projected benefit obligation | 8.3 | 9.2 | 9.6 | ||||||
Amortization of: | |||||||||
Prior service benefit | (2.4 | ) | (2.4 | ) | (2.4 | ) | |||
Actuarial loss | 1.2 | 0.9 | — | ||||||
Net postretirement benefit costs | $ | 8.4 | $ | 9.2 | $ | 8.7 |
2011 | 2010 | 2009 | |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 5.25% | 5.75% | 6.25% |
Long-term health care cost trend rate | 4.50% | 4.50% | 5.00% |
1% Increase | 1% Decrease | |||||
Effect on total of service and interest cost components | $ | 1.0 | $ | (0.9 | ) | |
Effect on postretirement benefit obligations | $ | 15.9 | $ | (14.0 | ) |
2012 | 2013 | 2014 | 2015 | 2016 | 2017-2021 | |||||||||||||
Pension benefits (1) | $ | 95.1 | $ | 77.5 | $ | 79.0 | $ | 80.2 | $ | 81.4 | $ | 438.3 | ||||||
Other postretirement benefits | $ | 13.6 | $ | 13.3 | $ | 12.9 | $ | 12.7 | $ | 12.4 | $ | 64.2 |
2011 | 2010 | 2009 | |||||||||
Numerator for basic and diluted earnings per share: | |||||||||||
Income from continuing operations | $ | 134.6 | $ | 288.2 | $ | 285.8 | |||||
(Loss) income from discontinued operations | (9.4 | ) | 4.6 | (0.3 | ) | ||||||
Net income | $ | 125.2 | $ | 292.8 | $ | 285.5 | |||||
Dividends and equivalents for share-based awards expected to be forfeited | 0.1 | 0.1 | 0.2 | ||||||||
Net income for basic earnings per share | $ | 125.3 | $ | 292.9 | $ | 285.7 | |||||
Effect of Preferred Securities (1) | — | — | — | ||||||||
Net income for diluted earnings per share | $ | 125.3 | $ | 292.9 | $ | 285.7 | |||||
Denominator for basic and diluted earnings per share: | |||||||||||
Weighted-average shares outstanding | 290.5 | 279.3 | 277.7 | ||||||||
Share-based payment awards classified as participating securities | 3.1 | 3.1 | 3.1 | ||||||||
Denominator for basic earnings per share | 293.6 | 282.4 | 280.8 | ||||||||
Dilutive securities (2) | 2.4 | 2.5 | 1.1 | ||||||||
Convertible Notes (3) | 0.2 | 13.1 | 9.0 | ||||||||
Warrants (4) | — | 7.4 | 3.5 | ||||||||
Preferred Securities (1) | — | — | — | ||||||||
Denominator for diluted earnings per share | 296.2 | 305.4 | 294.4 | ||||||||
Basic earnings per share: | |||||||||||
Income from continuing operations | $ | 0.46 | $ | 1.02 | $ | 1.02 | |||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | |||||||
Net income | $ | 0.43 | $ | 1.04 | $ | 1.02 | |||||
Diluted earnings per share: | |||||||||||
Income from continuing operations | $ | 0.45 | $ | 0.94 | $ | 0.97 | |||||
(Loss) income from discontinued operations | (0.03 | ) | 0.02 | — | |||||||
Net income | $ | 0.42 | $ | 0.96 | $ | 0.97 |
(1) | The Preferred Securities are anti-dilutive for all years presented, and therefore have been excluded from diluted earnings per share. Had the Preferred Securities been included in the diluted earnings per share calculation, net income for each of 2011, 2010 and 2009 would be increased by $14.0 million. Weighted-average shares outstanding would be increased by 8.3 million shares for all years presented. |
(2) | Dilutive securities include “in the money” options, non-participating restricted stock units and performance stock units. The weighted-average shares outstanding for 2011, 2010 and 2009 exclude the effect of approximately 12.0 million, 12.4 million and 13.2 million stock options, respectively, because such options were anti-dilutive. |
(3) | The Convertible Notes issued in March 2009 were dilutive to the extent the average price during the period was greater than $8.61, the conversion price of the Convertible Notes, and the Convertible Notes were only dilutive for the “in the money” portion of the Convertible Notes that could be settled with the Company’s stock. The Convertible Notes were dilutive for all years presented, as the average price of the Company’s common stock during these periods was greater than $8.61. As disclosed in Footnote 9, substantially all of the remaining outstanding principal amount of the Convertible Notes was extinguished in March 2011, and as such, dilution for 2011 takes into consideration the period of time the Convertible Notes were outstanding. The Convertible Notes will not meaningfully impact diluted average shares outstanding in subsequent periods because the maximum amount of shares required to settle the “in the money” portion of the $0.1 million principal amount of the Convertible Notes outstanding as of December 31, 2011 is not material. As disclosed in Footnote 9, $324.7 million of the $345.0 million principal amount of the Convertible Notes was extinguished in September 2010, and as such, dilution for 2010 takes into consideration the period of time the Convertible Notes were outstanding. |
(4) | The warrants were dilutive for the period the warrants were outstanding during 2010 and 2009 because the average price of the Company's common stock during quarterly periods the warrants were outstanding was greater than $11.59, the exercise price of the warrants. As disclosed in Footnote 10, the warrants were settled during September 2010, and as such, dilution for 2010 takes into consideration the period of time the warrants were outstanding. |
2010 Plan | ||
Authorized for issuance | 21.0 | |
Issued and reserved for issuance of outstanding: | ||
Options | 1.0 | |
Restricted stock units (2 1/2 times the number of awards) | 5.5 | |
Performance-based restricted stock units (2 1/2 times the number of awards) | 1.1 | |
Shares available for issuance | 13.4 |
2011 | 2010 | 2009 | |||||||
Stock options | $ | 12.5 | $ | 13.9 | $ | 14.4 | |||
Restricted stock | 30.5 | 22.6 | 20.7 | ||||||
Stock-based compensation | $ | 43.0 | $ | 36.5 | $ | 35.1 | |||
Stock-based compensation, net of income tax benefit of $11.2 million, $8.0 million and $5.3 million in 2011, 2010 and 2009, respectively | $ | 31.8 | $ | 28.5 | $ | 29.8 |
2011 | 2010 | 2009 | |
Risk-free interest rate | 2.6% | 2.9% | 2.2% |
Dividend yield | 1.3% | 1.4% | 5.2% |
Expected volatility | 39% | 38% | 35% |
Expected life (in years) | 6.4 | 6.7 | 6.8 |
Shares | Weighted-Average Exercise Price | Exercisable at End of Year | Weighted-Average Exercise Price | Weighted-Average Fair Value of Options Granted During the Year | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2008 | 16.4 | $ | 26 | 6.6 | $ | 27 | $ | — | ||||||||
Granted | 3.2 | 8 | $ | 2 | ||||||||||||
Forfeited / expired | (3.3 | ) | 26 | |||||||||||||
Outstanding at December 31, 2009 | 16.3 | $ | 22 | 7.6 | $ | 26 | $ | 21.1 | ||||||||
Granted | 1.5 | 14 | $ | 5 | ||||||||||||
Exercised | (0.1 | ) | 9 | $ | 0.5 | |||||||||||
Forfeited / expired | (1.4 | ) | 23 | |||||||||||||
Outstanding at December 31, 2010 | 16.3 | $ | 22 | 8.9 | $ | 26 | $ | 35.4 | ||||||||
Granted | 1.0 | 19 | $ | 7 | ||||||||||||
Forfeited / expired | (1.9 | ) | 23 | |||||||||||||
Outstanding at December 31, 2011 | 15.4 | $ | 21 | 9.8 | $ | 24 | $ | 25.3 | ||||||||
Vested and expected to vest at December 31, 2011 | 15.1 | $ | 21 |
Shares | Weighted-Average Grant Date Fair Value | |||||
Outstanding at December 31, 2008 | 3.2 | $ | 24 | |||
Granted | 2.8 | 8 | ||||
Vested | (0.9 | ) | 24 | |||
Forfeited | (0.5 | ) | 22 | |||
Outstanding at December 31, 2009 | 4.6 | $ | 15 | |||
Granted | 2.2 | 14 | ||||
Vested | (1.1 | ) | 24 | |||
Forfeited | (0.5 | ) | 13 | |||
Outstanding at December 31, 2010 | 5.2 | $ | 13 | |||
Granted | 2.5 | 17 | ||||
Vested | (1.2 | ) | 19 | |||
Forfeited | (0.4 | ) | 14 | |||
Outstanding at December 31, 2011 | 6.1 | $ | 13 | |||
Expected to vest at December 31, 2011 | 5.8 | $ | 13 |
Unrecognized Compensation Cost | Weighted-Average Period of Expense Recognition (in years) | |
Stock options | $9.7 | 2 |
Restricted stock units | 33.3 | 2 |
Total | $43.0 |
2011 | 2010 | |||||
Unrecognized tax benefits balance at January 1, | $ | 96.8 | $ | 147.9 | ||
Increase in tax positions for prior years | 7.9 | 8.0 | ||||
Decreases in tax positions for prior years | — | (41.9 | ) | |||
Increases in tax positions for current year | 15.1 | 16.7 | ||||
Settlements with taxing authorities | — | (31.1 | ) | |||
Lapse of statute of limitations | (30.3 | ) | (2.8 | ) | ||
Unrecognized tax benefits balance at December 31, | $ | 89.5 | $ | 96.8 |
2011 | 2010 | 2009 | |||||||
Current: | |||||||||
Federal | $ | (36.7 | ) | $ | (63.6 | ) | $ | 56.4 | |
State | 5.1 | (0.5 | ) | 8.1 | |||||
Foreign | 57.5 | 76.6 | 62.6 | ||||||
Total current | 25.9 | 12.5 | 127.1 | ||||||
Deferred | (8.0 | ) | (6.9 | ) | 15.7 | ||||
Total provision | $ | 17.9 | $ | 5.6 | $ | 142.8 |
2011 | 2010 | 2009 | ||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % |
Add (deduct) effect of: | ||||||
State income taxes, net of federal income tax effect | 2.2 | 1.8 | 1.2 | |||
Foreign tax credit | (12.2 | ) | (10.1 | ) | (7.4 | ) |
Foreign rate differential | (20.3 | ) | (0.2 | ) | 1.1 | |
Resolution of tax contingencies, net of increases | (20.3 | ) | (20.3 | ) | 3.1 | |
Tax basis differential on goodwill impairment | 38.0 | — | — | |||
Valuation allowance reserve increase (decrease) | 0.7 | (2.5 | ) | 0.9 | ||
Stock compensation | 1.5 | 1.9 | 1.7 | |||
Other | (12.9 | ) | (3.7 | ) | (2.3 | ) |
Effective rate | 11.7 | % | 1.9 | % | 33.3 | % |
2011 | 2010 | |||||
Deferred tax assets: | ||||||
Accruals not currently deductible for tax purposes | $ | 153.1 | $ | 187.2 | ||
Postretirement liabilities | 65.6 | 69.2 | ||||
Inventory reserves | 5.8 | — | ||||
Pension liabilities | 174.7 | 97.2 | ||||
Self-insurance liability | 3.9 | 27.1 | ||||
Foreign tax credit carryforward | 120.0 | 139.6 | ||||
Foreign net operating losses | 339.4 | 321.5 | ||||
Other | 147.6 | 136.8 | ||||
Total gross deferred tax assets | 1,010.1 | 978.6 | ||||
Less valuation allowance | (441.6 | ) | (419.8 | ) | ||
Net deferred tax assets after valuation allowance | $ | 568.5 | $ | 558.8 | ||
Deferred tax liabilities: | ||||||
Accelerated depreciation | $ | (67.4 | ) | $ | (53.8 | ) |
Amortizable intangibles | (253.3 | ) | (283.3 | ) | ||
Other | (9.6 | ) | (3.9 | ) | ||
Total gross deferred tax liabilities | $ | (330.3 | ) | $ | (341.0 | ) |
Net deferred tax assets | $ | 238.2 | $ | 217.8 | ||
Current deferred income tax assets | $ | 130.7 | $ | 179.2 | ||
Current deferred income tax liabilities | (10.4 | ) | — | |||
Noncurrent deferred income tax assets | 120.2 | 38.6 | ||||
Noncurrent deferred income tax liabilities | (2.3 | ) | — | |||
$ | 238.2 | $ | 217.8 |
2011 | 2010 | 2009 | |||||||
Investment activities, including equity in earnings | $ | 1.5 | $ | (0.4 | ) | $ | (0.6 | ) | |
Currency transaction loss (gain) | 14.7 | (6.9 | ) | 2.1 | |||||
Other | (2.5 | ) | — | 0.5 | |||||
$ | 13.7 | $ | (7.3 | ) | $ | 2.0 |
Description | Fair Value as of December 31, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market fund investments (1) | $ | — | $ | — | $ | — | $ | — | |||||||
Investment securities, including mutual funds (2) | 17.7 | 7.3 | 10.4 | — | |||||||||||
Interest rate swaps | 35.8 | — | 35.8 | — | |||||||||||
Foreign currency derivatives | 2.4 | — | 2.4 | — | |||||||||||
Total | $ | 55.9 | $ | 7.3 | $ | 48.6 | $ | — | |||||||
Description | Fair Value as of December 31, 2010 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market fund investments (1) | $ | 10.5 | $ | — | $ | 10.5 | $ | — | |||||||
Investment securities, including mutual funds (2) | 22.7 | 7.4 | 15.3 | — | |||||||||||
Interest rate swaps | 42.3 | — | 42.3 | — | |||||||||||
Foreign currency derivatives | 2.6 | — | 2.6 | — | |||||||||||
Total | $ | 78.1 | $ | 7.4 | $ | 70.7 | $ | — | |||||||
Liabilities | |||||||||||||||
Foreign currency derivatives | $ | 2.0 | $ | — | $ | 2.0 | $ | — | |||||||
Total | $ | 2.0 | $ | — | $ | 2.0 | $ | — |
(1) | Investments in money market funds are classified as cash equivalents due to their short-term nature and the ability for them to be readily converted into cash. Investments in money market funds are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date and, accordingly, have been classified as Level 2 investments. |
(2) | The values of investment securities, including mutual funds, are classified as cash and cash equivalents ($5.1 million and $7.4 million as of December 31, 2011 and 2010, respectively) and other assets ($12.6 million and $15.3 million as of December 31, 2011 and 2010, respectively). For mutual funds that are publicly traded, fair value is determined on the basis of quoted market prices and, accordingly, these investments have been classified as Level 1. Other investment securities are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date and have been classified as Level 2. |
2011 | 2010 | ||||||||||||||
Fair Value | Book Value | Fair Value | Book Value | ||||||||||||
Medium-term notes | $ | 1,679.7 | $ | 1,632.3 | $ | 1,650.7 | $ | 1,623.0 | |||||||
Preferred securities underlying the junior convertible subordinated debentures | 356.0 | 421.2 | 353.8 | 421.2 | |||||||||||
Convertible notes | 0.1 | 0.1 | 45.5 | 17.5 |
Segment | Key Brands | Description of Primary Products | ||
Home & Family | Rubbermaid®, Graco®, Aprica®, Levolor®, Calphalon®, Goody® | Indoor/outdoor organization, food storage and home storage products; infant and juvenile products such as car seats, strollers, highchairs and playards; drapery hardware, window treatments and cabinet hardware; gourmet cookware, bakeware, cutlery and small kitchen electrics; hair care accessories | ||
Office Products | Sharpie®, Expo®, Dymo®, Mimio®, Paper Mate®, Parker®, Waterman® | Writing instruments, including pens, pencils, markers and highlighters, and art products; fine writing instruments and leather goods; office technology solutions such as label makers and printers, interactive teaching solutions and on-line postage | ||
Tools, Hardware & Commercial Products | Lenox®, Rubbermaid® Commercial Products, Irwin®, Shur-line®, Bulldog® | Industrial bandsaw blades and cutting tools for pipes and HVAC systems; hand tools and power tool accessories; manual paint applicators, window hardware and convenience hardware; cleaning and refuse products, hygiene systems, material handling solutions and medical and computer carts, and wall-mounted workstations |
2011 | 2010 | 2009 | |||||||||
Net Sales (1) | |||||||||||
Home & Family | $ | 2,390.5 | $ | 2,378.4 | $ | 2,377.2 | |||||
Office Products | 1,778.8 | 1,708.9 | 1,674.7 | ||||||||
Tools, Hardware & Commercial Products | 1,695.3 | 1,570.9 | 1,431.5 | ||||||||
$ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 | ||||||
Operating Income (2) | |||||||||||
Home & Family | $ | 280.5 | $ | 281.8 | $ | 274.7 | |||||
Office Products | 300.2 | 269.4 | 235.2 | ||||||||
Tools, Hardware & Commercial Products | 234.3 | 246.6 | 246.0 | ||||||||
Impairment charges | (382.6 | ) | — | — | |||||||
Restructuring costs | (50.1 | ) | (77.4 | ) | (100.0 | ) | |||||
Corporate | (125.1 | ) | (96.9 | ) | (80.6 | ) | |||||
$ | 257.2 | $ | 623.5 | $ | 575.3 |
2011 | 2010 | 2009 | |||||||||
Depreciation & Amortization (2) | |||||||||||
Home & Family | $ | 44.5 | $ | 51.4 | $ | 51.3 | |||||
Office Products | 32.2 | 32.1 | 39.6 | ||||||||
Tools, Hardware & Commercial Products | 45.5 | 49.7 | 48.9 | ||||||||
Corporate | 39.4 | 39.1 | 35.3 | ||||||||
$ | 161.6 | $ | 172.3 | $ | 175.1 |
Capital Expenditures (3) | |||||||||||
Home & Family | $ | 42.4 | $ | 38.2 | $ | 30.8 | |||||
Office Products | 39.5 | 35.5 | 35.2 | ||||||||
Tools, Hardware & Commercial Products | 59.6 | 28.5 | 26.2 | ||||||||
Corporate | 81.4 | 62.5 | 61.1 | ||||||||
$ | 222.9 | $ | 164.7 | $ | 153.3 |
2011 | 2010 | ||||||
Identifiable Assets | |||||||
Home & Family | $ | 882.4 | $ | 896.4 | |||
Office Products | 1,019.6 | 972.0 | |||||
Tools, Hardware & Commercial Products | 893.3 | 931.5 | |||||
Corporate (4) | 3,365.6 | 3,605.4 | |||||
$ | 6,160.9 | $ | 6,405.3 |
2011 | 2010 | 2009 | |||||||||
Net Sales (1) (5) | |||||||||||
United States | $ | 3,915.7 | $ | 3,870.3 | $ | 3,806.8 | |||||
Canada | 376.3 | 351.0 | 317.6 | ||||||||
Total North America | 4,292.0 | 4,221.3 | 4,124.4 | ||||||||
Europe, Middle East and Africa | 815.3 | 800.5 | 791.0 | ||||||||
Latin America | 318.6 | 267.0 | 259.5 | ||||||||
Asia Pacific | 438.7 | 369.4 | 308.5 | ||||||||
Total International | 1,572.6 | 1,436.9 | 1,359.0 | ||||||||
$ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 | ||||||
Operating Income (Loss) (2) (7) | |||||||||||
United States | $ | 166.9 | $ | 471.9 | $ | 492.6 | |||||
Canada | 81.2 | 79.1 | 63.3 | ||||||||
Total North America | 248.1 | 551.0 | 555.9 | ||||||||
Europe, Middle East and Africa (6) | 16.6 | 10.0 | (19.7 | ) | |||||||
Latin America | 12.8 | (1.3 | ) | 22.3 | |||||||
Asia Pacific | (20.3 | ) | 63.8 | 16.8 | |||||||
Total International | 9.1 | 72.5 | 19.4 | ||||||||
$ | 257.2 | $ | 623.5 | $ | 575.3 |
(1) | All intercompany transactions have been eliminated. Sales to Wal-Mart Stores, Inc. and subsidiaries amounted to 11.0%, 11.9% and 12.3% of consolidated net sales in 2011, 2010 and 2009, respectively, substantially across all segments. |
(2) | Operating income (loss) by segment is net sales less cost of products sold and selling, general & administrative (“SG&A”) expenses. Operating income by geographic area is net sales less cost of products sold, SG&A expenses, impairment charges, and restructuring costs. Certain headquarters expenses of an operational nature are allocated to business segments and geographic areas primarily on a net sales basis. Depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization is included in segment operating income. |
(3) | Corporate capital expenditures primarily relate to the SAP implementation. |
(4) | Corporate assets primarily include goodwill, capitalized software, cash and deferred tax assets. |
(5) | Geographic sales information is based on the region from which the products are shipped and invoiced. |
(6) | The Europe, Middle East and Africa operating income (loss) is after considering $37.4 million and $15.2 million of incremental SG&A costs associated with the European Transformation Plan for 2011 and 2010, respectively. |
(7) | The following table summarizes the restructuring costs and impairment charges by region included in operating income (loss) above (in millions): |
2011 | 2010 | 2009 | |||||||||
Restructuring Costs: | |||||||||||
United States | $ | (29.3 | ) | $ | (18.1 | ) | $ | (32.6 | ) | ||
Canada | (0.1 | ) | (7.9 | ) | (5.7 | ) | |||||
Total North America | (29.4 | ) | (26.0 | ) | (38.3 | ) | |||||
Europe, Middle East and Africa | (19.5 | ) | (30.4 | ) | (36.4 | ) | |||||
Latin America | (0.7 | ) | (12.9 | ) | (6.3 | ) | |||||
Asia Pacific | (0.5 | ) | (8.1 | ) | (19.0 | ) | |||||
Total International | (20.7 | ) | (51.4 | ) | (61.7 | ) | |||||
$ | (50.1 | ) | $ | (77.4 | ) | $ | (100.0 | ) |
Impairment Charges: | |||||||||||
United States | $ | (266.8 | ) | $ | — | $ | — | ||||
Canada | — | — | — | ||||||||
Total North America | (266.8 | ) | — | — | |||||||
Europe, Middle East and Africa | (9.2 | ) | — | — | |||||||
Latin America | — | — | — | ||||||||
Asia Pacific | (106.6 | ) | — | — | |||||||
Total International | (115.8 | ) | — | — | |||||||
$ | (382.6 | ) | $ | — | $ | — |
2011 | 2010 | 2009 | |||||||||
Home & Family (1) | |||||||||||
Rubbermaid Consumer | $ | 827.2 | $ | 819.7 | $ | 847.7 | |||||
Baby & Parenting | 680.4 | 700.2 | 703.6 | ||||||||
Décor | 464.8 | 458.8 | 450.9 | ||||||||
Other | 418.1 | 399.7 | 375.0 | ||||||||
2,390.5 | 2,378.4 | 2,377.2 | |||||||||
Office Products (1) | 1,778.8 | 1,708.9 | 1,674.7 | ||||||||
Tools, Hardware & Commercial Products (1) | 1,695.3 | 1,570.9 | 1,431.5 | ||||||||
$ | 5,864.6 | $ | 5,658.2 | $ | 5,483.4 |
(a) | Evaluation of Disclosure Controls and Procedures. As of December 31, 2011, an evaluation was performed by the Company’s management, under the supervision and with the participation of the Company’s chief executive officer and chief financial officer, of the effectiveness of the Company’s disclosure controls and procedures. Based on that evaluation, the chief executive officer and the chief financial officer concluded that the Company’s disclosure controls and procedures were effective. |
(b) | Management’s Report on Internal Control Over Financial Reporting. The Company’s management’s annual report on internal control over financial reporting is set forth under Item 8 of this annual report and is incorporated herein by reference. |
(c) | Attestation Report of the Independent Registered Public Accounting Firm. The attestation report of Ernst & Young LLP, the Company’s independent registered public accounting firm, on the Company’s internal control over financial reporting is set forth under Item 8 of this annual report and is incorporated herein by reference. |
(d) | Changes in Internal Control Over Financial Reporting. There were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended December 31, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company is in the process of replacing various business information systems worldwide with an enterprise resource planning system from SAP. Implementation will continue to occur over several years in phases, primarily focused on geographic region and segment. This activity involves the migration of multiple legacy systems and users to a common SAP information platform. In addition, this conversion will impact certain interfaces with the Company’s customers and suppliers, resulting in changes to the tools the Company uses to take orders, procure materials, schedule production, remit billings, make payments and perform other business functions. |
3.1 | Restated Certificate of Incorporation of Newell Rubbermaid Inc., as amended as of May 6, 2008 (incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008). |
3.2 | By-Laws of Newell Rubbermaid Inc., as amended (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K dated November 12, 2008). |
4.1 | Restated Certificate of Incorporation of Newell Rubbermaid Inc., as amended as of May 6, 2008, is included in Item 3.1. |
4.3 | Indenture dated as of November 1, 1995, between the Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as Trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated May 3, 1996, File No. 001-09608). |
4.4 | Junior Convertible Subordinated Indenture for the 5.25% Convertible Subordinated Debentures, dated as of December 12, 1997, between the Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association), as Indenture Trustee (incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-3, File No. 333-47261, filed March 3, 1998 |
4.5 | Supplemental Indenture dated as of March 30, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank N.A. (formerly known as The Chase Manhattan Bank (National Association))) as trustee (including the form of Notes for the Company's 5.50% convertible senior notes due 2014) (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated March 24, 2009). |
4.6 | Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.7 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006, File No. 001-09068). |
4.7 | Form of 5.50% Notes due 2013 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 25, 2008). |
4.8 | Form of 6.25% Notes due 2018 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated March 25, 2008). |
4.9 | Form of 10.60% Notes due 2019 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 26, 2009). |
4.10 | Form of 4.70% Notes due 2020 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 2, 2010). |
4.11 | Master Confirmation dated as of August 2, 2010 between Newell Rubbermaid Inc. and Goldman, Sachs & Co. Re: Accelerated Stock Buyback (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated and filed August 2, 2010). |
4.12 | Credit Agreement dated as of December 2, 2011 among Newell Rubbermaid Inc., the subsidiary borrowers party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 2, 2011). |
10.1* | Newell Rubbermaid Inc. Management Cash Bonus Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated February 13, 2008). |
10.2* | Amendment to the Newell Rubbermaid Inc. Management Cash Bonus Plan dated as of February 11, 2009 (incorporated by reference to Exhibit 10.10 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009). |
10.3* | Second Amendment to the Newell Rubbermaid Inc. Management Cash Bonus Plan dated as of February 10, 2010 (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010). |
10.4* | Newell Co. Deferred Compensation Plan, as amended and restated effective January 1, 1997 (incorporated by reference to Exhibit 10.3 to the Company's Annual Report on Form 10-K for the year ended December 31, 1998, File No. 001-09068). |
10.5* | Newell Rubbermaid Inc. 2008 Deferred Compensation Plan (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-09068). |
10.6* | Newell Rubbermaid Inc. 2002 Deferred Compensation Plan, as amended and restated as of January 1, 2004 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004, File No. 001-09608). |
10.7* | Newell Rubbermaid Supplemental Executive Retirement Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.7 to the Company's Report on Form 10-K for the year ended December 31, 2007, File No. 001-09068). |
10.8* | Newell Rubbermaid Inc. 1993 Stock Option Plan, effective February 9, 1993, as amended May 26, 1999 and August 15, 2001 (incorporated by reference to Exhibit 10.12 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999, File No. 001-09608, and Exhibit 10 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001, File No. 001-09608). |
10.9* | Newell Rubbermaid Inc. 2003 Stock Plan, as amended and restated effective February 8, 2006, and as amended effective August 9, 2006 (incorporated by reference to Appendix B to the Company's Proxy Statement, dated April 3, 2006, and Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006, File No. 001-09068). |
10.10* | Newell Rubbermaid Inc. 2010 Stock Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated May 11, 2010). |
10.11* | First Amendment to the Newell Rubbermaid Inc. 2010 Stock Plan dated July 1, 2011(incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011). |
10.12* | Forms of Stock Option Agreement under the Newell Rubbermaid Inc. 2003 Stock Plan (incorporated by reference to Exhibit 10.9 to the Company's Annual Report on Form 10-K for the year ended December 31, 2008). |
10.13* | Form of Stock Option Agreement for Chief Executive Officer under Newell Rubbermaid Inc. 2003 Stock Plan, prior to its amendment and restatement effective February 8, 2006 (incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006, File No. 001-09068). |
10.14* | Stock Option Agreement granted to Mark D. Ketchum November 9, 2005 under the Newell Rubbermaid Inc. 2003 Stock Plan, prior to its amendment and restatement effective February 8, 2006 (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K dated November 9, 2005, File No. 001-09608). |
10.15* | Form of Michael B. Polk Option Agreement for July 18, 2011 Award (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K dated July 18, 2011). |
10.16* | Form of Michael B. Polk Restricted Stock Unit Agreement for July 18, 2011 Award (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K dated July 18, 2011). |
10.17* | Newell Rubbermaid Inc. Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010). |
10.18* | Form of Restricted Stock Unit Agreement under the 2003 Stock Plan (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K dated February 11, 2009). |
10.19* | Form of Restricted Stock Unit Agreement under the 2010 Stock Plan (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010). |
10.20* | Form of Restricted Stock Unit Agreement under the 2010 Stock Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010). |
10.21* | Form of Stock Option Agreement under the 2010 Stock Plan (incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010). |
10.22* | Form of Stock Option Agreement for Chief Executive Officer under the 2010 Stock Plan (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010). |
10.23* | Employment Security Agreement with Mark D. Ketchum dated September 30, 2008 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated September 30, 2008). |
10.24* | Employment Security Agreement with Michael B. Polk dated July 18, 2011 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011). |
10.25* | Form of Employment Security Agreement with certain of the Company's Executive Officers and a limited number of other senior management employees (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K dated September 30, 2008). |
10.26* | Form of Employment Security Agreement with Juan R. Figuereo (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 3, 2009). |
10.27* | Compensation Arrangement for Mark D. Ketchum dated February 13, 2006 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006, File No. 001-09068). |
10.28* | Retirement Agreement dated June 28, 2011 between Newell Rubbermaid Inc. and Mark D. Ketchum (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated June 28, 2011). |
10.29* | Written Compensation Arrangement with Michael B. Polk, dated June 23, 2011 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated June 23, 2011). |
10.30* | Separation Agreement dated December 29, 2011 between the Company and Jay D. Gould (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 29, 2011). |
10.31 | Amended and Restated Trust Agreement, dated as of December 12, 1997, among the Company, as Depositor, The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as Property Trustee, Chase Manhattan Delaware, as Delaware Trustee, and the Administrative Trustees (incorporated by reference to Exhibit 4.2 to the 1998 Form S-3). |
10.32 | Indenture dated as of November 1, 1995, between the Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as Trustee, is included in Item 4.3. |
10.33 | Junior Convertible Subordinated Indenture for the 5.25% Convertible Subordinated Debentures, dated as of December 12, 1997, between the Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as Indenture Trustee, is included in Item 4.4. |
10.34 | Supplemental Indenture dated as of March 30, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank N.A., formerly known as The Chase Manhattan Bank (National Association)) as trustee (including the form of Notes for the Company's 5.50% convertible senior notes due 2014), is included in Item 4.5. |
10.35 | Form of 5.50% Notes due 2013 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee is included in Item 4.7. |
10.36 | Form of 6.25% Notes due 2018 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee is included in Item 4.8. |
10.37 | Form of 10.60% Note due 2019 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank N.A., formerly known as The Chase Manhattan Bank (National Association)), as trustee, is included in Item 4.9. |
10.38 | Form of 4.70% Notes due 2020 issued pursuant to an Indenture dated as of November 1, 1995, between Newell Rubbermaid Inc. and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (National Association)), as trustee, is included in Item 4.10. |
10.39 | Master Confirmation dated as of August 2, 2010 between Newell Rubbermaid Inc. and Goldman, Sachs & Co. Re: Accelerated Stock Buyback, is included in Item 4.11. |
10.40 | Credit Agreement dated as of December 2, 2011 among Newell Rubbermaid Inc., the subsidiary borrowers party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, is included in Item 4.12. |
12 | Statement of Computation of Earnings to Fixed Charges. |
21 | Significant Subsidiaries of the Company. |
23 | Consent of Ernst & Young LLP. |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 12a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
NEWELL RUBBERMAID INC. | ||
Registrant | ||
By | /s/ Juan R. Figuereo | |
Juan R. Figuereo | ||
Title | Executive Vice President — Chief Financial Officer | |
Date | February 29, 2012 |
Signature | Title | |
/s/ Michael B. Polk | President, Chief Executive Officer and Director | |
Michael B. Polk | ||
/s/ Juan R. Figuereo | Executive Vice President — Chief Financial Officer | |
Juan R. Figuereo | ||
/s/ John B. Ellis | Vice President — Corporate Controller and Chief Accounting Officer | |
John B. Ellis | ||
/s/ Michael T. Cowhig | Chairman of the Board and Director | |
Michael T. Cowhig | ||
/s/ Thomas E. Clarke | Director | |
Thomas E. Clarke | ||
/s/ Kevin C. Conroy | Director | |
Kevin C. Conroy | ||
/s/ Scott S. Cowen | Director | |
Scott S. Cowen | ||
/s/ Elizabeth Cuthbert-Millett | Director | |
Elizabeth Cuthbert-Millett | ||
/s/ Domenico De Sole | Director | |
Domenico De Sole | ||
/s/ Mark D. Ketchum | Director | |
Mark D. Ketchum | ||
/s/ Cynthia A. Montgomery | Director | |
Cynthia A. Montgomery | ||
/s/ Steven J. Strobel | Director | |
Steven J. Strobel | ||
/s/ Michael A. Todman | Director | |
Michael A. Todman | ||
/s/ Raymond G. Viault | Director | |
Raymond G. Viault |
(in millions) | Balance at Beginning of Period | Provision | Charges to Other Accounts | Write-offs (1) | Balance at End of Period | ||||||||||
Reserve for Doubtful Accounts and Cash Discounts: | |||||||||||||||
Year ended December 31, 2011 | $ | 43.0 | $ | 63.7 | $ | (0.3 | ) | $ | (70.4 | ) | $ | 36.0 | |||
Year ended December 31, 2010 | 42.2 | 70.4 | (1.0 | ) | (68.6 | ) | 43.0 | ||||||||
Year ended December 31, 2009 | 40.6 | 70.1 | 0.9 | (69.4 | ) | 42.2 |
(in millions) | Balance at Beginning of Period | Net Provision | Other | Write-offs/ Dispositions | Balance at End of Period | ||||||||||
Inventory Reserves (including excess, obsolescence and shrink reserves): | |||||||||||||||
Year ended December 31, 2011 | $ | 70.7 | $ | 26.9 | $ | (0.4 | ) | $ | (37.9 | ) | $ | 59.3 | |||
Year ended December 31, 2010 | 102.1 | 18.4 | (0.9 | ) | (48.9 | ) | 70.7 | ||||||||
Year ended December 31, 2009 | 101.9 | 57.0 | 1.6 | (58.4 | ) | 102.1 |
Years Ended December 31, | |||||||||||||||
(dollars in millions) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||
Earnings Available for Fixed Charges: | |||||||||||||||
Income before income taxes | $ | 152.5 | $ | 293.8 | $ | 428.6 | $ | 3.2 | $ | 624.9 | |||||
Equity in earnings of affiliates | 1.5 | (0.4 | ) | (0.6 | ) | (1.3 | ) | (0.1 | ) | ||||||
Income attributable to noncontrolling interests | — | — | — | (2.0 | ) | (3.1 | ) | ||||||||
Total earnings | 154.0 | 293.4 | 428.0 | (0.1 | ) | 621.7 | |||||||||
Fixed charges: | |||||||||||||||
Interest expense (1) | 88.4 | 121.9 | 146.3 | 146.8 | 118.0 | ||||||||||
Portion of rent determined to be interest (2) | 42.7 | 40.5 | 39.7 | 42.6 | 36.2 | ||||||||||
$ | 285.1 | $ | 455.8 | $ | 614.0 | $ | 189.3 | $ | 775.9 | ||||||
Fixed Charges: | |||||||||||||||
Interest expensed and capitalized | $ | 90.1 | $ | 122.7 | $ | 147.5 | $ | 147.5 | $ | 120.9 | |||||
Portion of rent determined to be interest (2) | 42.7 | 40.5 | 39.7 | 42.6 | 36.2 | ||||||||||
$ | 132.8 | $ | 163.2 | $ | 187.2 | $ | 190.1 | $ | 157.1 | ||||||
Ratio of Earnings to Fixed Charges | 2.15 | 2.79 | 3.28 | 1.00 | 4.94 |
(2) | A standard ratio of 33% was applied to gross rent expense to approximate the interest portion of short-term and long-term leases. |
NEWELL RUBBERMAID INC. AND SUBSIDIARIES SIGNIFICANT SUBSIDIARIES | |
NAME | STATE OR JURISDICTION of ORGANIZATION |
PSI Systems, Inc. | California |
Berol Corporation | Delaware |
Expo Inc. | Delaware |
Goody Products, Inc. | Delaware |
Graco Children's Products Inc. | Delaware |
Headsprout, Inc. | Delaware |
Irwin Industrial Tool Company | Delaware |
Newell Finance Company | Delaware |
Newell Investments Inc. | Delaware |
Newell Operating Company | Delaware |
Newell Rubbermaid Europe LLC | Delaware |
Newell Window Furnishings, Inc. | Delaware |
Rubbermaid Commercial Products LLC | Delaware |
Rubbermaid Europe Holding Inc. | Delaware |
Rubbermaid Services Corporation | Delaware |
Rubfinco Inc. | Delaware |
Sanford, L.P. | Illinois |
Calphalon Corporation | Ohio |
Rubbermaid Incorporated | Ohio |
NRI Insurance Company | Vermont |
Irwin Industrial Tool Company Pty. Ltd. | Australia |
Newell Australia Pty. Limited | Australia |
Rubbermaid C.V. | Barbados |
DYMO BVBA | Belgium |
DYMO Finance BVBA | Belgium |
DYMO Holdings BVBA | Belgium |
Irwin Industrial Tool Ferramentas do Brasil Ltda. | Brazil |
Newell Rubbermaid Brasil Ferramentas e Equipamentos Ltda. | Brazil |
Newell Industries Canada Inc. | Canada |
NR Canada Inc. | Canada |
NR Capital Co. | Canada |
NR Finance Co. | Canada |
Newell (Cayman) Ltd. | Cayman Islands |
Newell Rubbermaid Caymans Holding Co. | Cayman Islands |
Newell Rubbermaid Asia Services | China |
Sanford Colombia S.A. | Colombia |
Newell Rubbermaid Denmark A/S | Denmark |
Newell Investments France SAS | France |
Reynolds SAS | France |
Rubbermaid France SAS | France |
Sanford Ecriture SAS | France |
Waterman SAS | France |
Irwin Industrial Tools GmbH | Germany |
Newell Rubbermaid German Holding GmbH | Germany |
Sanford GmbH | Germany |
NEWELL RUBBERMAID INC. AND SUBSIDIARIES SIGNIFICANT SUBSIDIARIES | |
NAME | STATE OR JURISDICTION of ORGANIZATION |
Newell Rubbermaid Asia Pacific Limited | Hong Kong |
NRH Limited | Hong Kong |
Aprica Europe Srl | Italy |
Newell Rubbermaid Italy S.r.l. | Italy |
Sanford Italy S.r.l. | Italy |
Aprica Children's Products KK | Japan |
Newell Rubbermaid Japan Ltd. | Japan |
Europe Brands S.à r.l. | Luxembourg |
Luxembourg Brands S.à r.l. | Luxembourg |
Newell Luxembourg Finance S.à r.l. | Luxembourg |
Newell Rubbermaid Luxembourg S.à r.l. | Luxembourg |
NWL European Finance S.à r.l. | Luxembourg |
NWL Luxembourg Holding S.à r.l. | Luxembourg |
Technical Concepts Luxembourg S.à r.l. | Luxembourg |
Newell Mauritius Holding Company | Mauritius |
Amerock Hardware Systems de Mexico, S. de R.L. de C.V. | Mexico |
Comercial Berol, S. de R.L. de C.V. | Mexico |
Newell Rubbermaid de Mexico, S. de R.L. de C.V. | Mexico |
Newell Rubbermaid Servicios de Mexico, S. de R.L. de C.V. | Mexico |
Newell Window Furnishings, de Mexico S. de R.L. de C.V. | Mexico |
Newell Rubbermaid Nederland B.V. | Netherlands |
Newell Tools Netherlands B.V. | Netherlands |
Technical Concepts Bentfield B.V. | Netherlands |
Newell Rubbermaid Poland S.A. | Poland |
Newell Rubbermaid Poland II Sp. z o.o. | Poland |
Newell International Finance Co. | Scotland |
Newell Iberia S.L. | Spain |
Newell Rubbermaid Europe S.à r.l. | Switzerland |
Newell Rubbermaid (Thailand) Co., Ltd. | Thailand |
Newell Rubbermaid Middle East FZE | UAE |
Berol Limited | United Kingdom |
Fountain Holdings Limited | United Kingdom |
Irwin Industrial Tool Company Limited | United Kingdom |
Newell (1995) | United Kingdom |
Newell Holdings Limited | United Kingdom |
Newell Limited | United Kingdom |
Newell Rubbermaid UK Holdings Limited | United Kingdom |
Parker Pen Company | United Kingdom |
Parker Pen Holdings | United Kingdom |
Parker Pen Products | United Kingdom |
Polyhedron Holdings Limited | United Kingdom |
Sanford Rotring (GB) Limited | United Kingdom |
Technical Concepts International Limited | United Kingdom |
Sanford Brands Venezuela LLC (Venezuelan Branch) | Venezuela |
Form Number | Registration | Description |
S-8 | 33-25196 | Newell Long-Term Savings and Investment Plan |
S-8 | 33-40641 | Newell Long-Term Savings and Investment Plan |
S-8 | 33-67632 | Newell Co. 1993 Stock Option Plan |
S-8 | 33-62047 | Newell Long-Term Savings and Investment Plan |
S-8 | 333-38621 | Newell Long-Term Savings and Investment Plan |
S-8 | 333-71747 | Amended and Restated 1989 Stock Incentive and Option Plan |
S-8 | 333-105113 | Newell Rubbermaid Inc. 2003 Stock Plan |
S-8 | 333-105177 | Newell Rubbermaid Inc. 2002 Deferred Compensation Plan |
S-8 | 333-105178 | Newell Rubbermaid Inc. 401(k) Savings Plan |
S-8 | 333-12514 | Newell Rubbermaid Inc. 401(k) Savings Plan |
S-8 | 333-135153 | Newell Rubbermaid Inc. 2003 Stock Plan (as amended and restated effective February 8, 2006) |
S-8 | 333-149133 | Newell Rubbermaid Inc. 2008 Deferred Compensation Plan |
S-8 | 333-166946 | Newell Rubbermaid Inc. 2010 Stock Plan |
S-3 | 333-149887 | Debt securities, preferred stock, common stock, warrants, stock purchase contracts and stock purchase units and in the related Prospectus |
S-3 | 333-103773 | Debt securities, preferred stock, common stock, warrants, stock purchase contracts and stock purchase units totaling $1 billion and in the related Prospectus |
S-3 | 333-174279 | Debt securities, preferred stock, common stock, warrants, stock purchase contracts and stock purchase units and in the related Prospectus |
1. | I have reviewed this annual report on Form 10-K for the year ended December 31, 2011 of Newell Rubbermaid Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Michael B. Polk |
Michael B. Polk |
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K for the year ended December 31, 2011 of Newell Rubbermaid Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Juan R. Figuereo |
Juan R. Figuereo |
Chief Financial Officer |
/s/ Michael B. Polk |
Michael B. Polk |
Chief Executive Officer |
February 29, 2012 |
/s/ Juan R. Figuereo |
Juan R. Figuereo |
Chief Financial Officer |
February 29, 2012 |
Goodwill and Other Intangible Assets, Net (Tables)
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Dec. 31, 2011
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Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of December 31, 2011, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):
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Schedule of Goodwill [Table Text Block] | A summary of changes in the Company's goodwill by reportable business segment is as follows for 2011 and 2010 (in millions):
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Schedule of Indefinite and Finite-lived Intangible Assets [Table Text Block] | Other intangible assets, net consisted of the following as of December 31, (in millions):
The table below summarizes the Company's amortization periods using the straight-line method for other intangible assets, including capitalized software, as of December 31, 2011:
(1) Other consists primarily of patents and customer lists with net book values of $29.2 million and $47.0 million, respectively, as of December 31, 2011. |
Restructuring Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 72 Months Ended | |||||||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Dec. 31, 2010
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Number of Operating Groups in 2011 | three | ||||||||
Number of Operating Groups in 2012 | two | ||||||||
Number of Global Business Units in 2011 | 13 | ||||||||
Number of Global Business Units in 2012 | nine | ||||||||
Asset Impairment Charges | $ 6.0 | $ 32.4 | |||||||
Restructuring Charges | 50.1 | [1] | 77.4 | [1] | 100.0 | [1] | |||
Restructuring Reserve, Period Expense | 77.4 | ||||||||
Cash paid for restructuring activities | 39.5 | 72.8 | 84.0 | ||||||
Forecast [Member]
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Increase in operating margin | 10.00% | ||||||||
European Transformation Plan Minimum Charges [Member] | Employee Related Cash Costs [Member]
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Expected cumulative restructuring charges | 40 | ||||||||
European Transformation Plan Maximum Charges [Member] | Employee Related Cash Costs [Member]
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Expected cumulative restructuring charges | 45 | ||||||||
Project Renewal Estimated Restructuring Charges - Low [Member] [Domain]
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Expected cumulative restructuring charges | 90 | ||||||||
Project Renewal Estimated Restructuring Charges High [Member] [Domain]
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Expected cumulative restructuring charges | 100 | ||||||||
Project Renewal Expected Cash Costs Low [Member] [Domain]
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Cash expected to be paid for restructuring | 75 | ||||||||
Project Renewal Expected Cash Costs - High [Member] [Domain]
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Cash expected to be paid for restructuring | 90 | ||||||||
Project Renewal [Member]
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Expected completion year | Dec. 31, 2012 | ||||||||
European Transformation Plan [Member]
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Restructuring Reserve, Period Expense | 18.9 | ||||||||
Expected completion year | Dec. 31, 2012 | ||||||||
Project Acceleration [Member]
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Restructuring Charges | 0 | 77.4 | 100.0 | 498.4 | |||||
Restructuring Reserve, Period Expense | $ 0 | $ 77.4 | |||||||
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Fair Value Disclosures (Tables)
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Dec. 31, 2011
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Pension Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the Company’s non-pension financial assets and liabilities which are measured at fair value on a recurring basis (in millions):
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Fair Value Of Certain Short And Long-Term Debt, Based On Market Prices | The fair values of certain of the Company’s short- and long-term debt are based on quoted market prices and are as follows (in millions):
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Debt (Revolving Credit Facility And Commercial Paper) (Details) (USD $)
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12 Months Ended | 3 Months Ended | ||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2011
$800 Million Credit Facility [Member]
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Dec. 31, 2010
Syndicated Revolving Credit Facility [Member]
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Amount available for borrowing | $ 800,000,000 | $ 665,000,000 | ||
Amount available for borrowing | 1,250,000,000 | |||
Maximum amount of letters of credit issuable under the facility | 100,000,000 | |||
Revolving credit facility expiration date | December 2, 2016 | 11/1/2012 | ||
Outstanding commercial paper obligations | 0 | 34,000,000 | ||
Line of Credit Facility, Competitive Bid Loans, Max | 500,000,000 | |||
Standby letters of credit outstanding | $ 46,500,000 |
Restructuring Costs (Schedule Of Restructuring Costs Recognized) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 72 Months Ended | |||||||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Dec. 31, 2010
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Restructuring Reserve, Period Expense | $ 77.4 | ||||||||
Restructuring Costs | 50.1 | [1] | 77.4 | [1] | 100.0 | [1] | |||
Project Renewal [Member]
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Restructuring Reserve, Period Expense | 31.2 | ||||||||
Restructuring Costs | 31.2 | ||||||||
Project Renewal [Member] | Facility Exit Costs and Other [Member]
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Restructuring Reserve, Period Expense | 8.4 | ||||||||
Project Renewal [Member] | Employee Severance, Termination Benefits And Relocation Costs [Member]
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Restructuring Reserve, Period Expense | 18.3 | ||||||||
Project Renewal [Member] | Contract Termination [Member]
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Restructuring Reserve, Period Expense | 4.5 | ||||||||
Project Acceleration [Member]
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Restructuring Reserve, Period Expense | 0 | 77.4 | |||||||
Restructuring Costs | 0 | 77.4 | 100.0 | 498.4 | |||||
Project Acceleration [Member] | Facility Exit Costs and Other [Member]
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Restructuring Reserve, Period Expense | 0 | 6.0 | 32.4 | 178.4 | |||||
Project Acceleration [Member] | Employee Severance [Member]
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Restructuring Reserve, Period Expense | 0 | 53.5 | 48.8 | 241.0 | |||||
Project Acceleration [Member] | Contract Termination [Member]
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Restructuring Reserve, Period Expense | 0 | 17.9 | 18.8 | 79.0 | |||||
European Transformation Plan [Member]
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Restructuring Reserve, Period Expense | 18.9 | ||||||||
European Transformation Plan [Member] | Employee Severance, Termination Benefits And Relocation Costs [Member]
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Restructuring Reserve, Period Expense | 14.9 | ||||||||
European Transformation Plan [Member] | Contract Termination [Member]
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Restructuring Reserve, Period Expense | $ 4.0 | ||||||||
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Stock-Based Compensation (Tables)
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Dec. 31, 2011
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 Stock Plan [Table Text Block] | The following table depicts the number of shares authorized for issuance and availability under the 2010 Plan (shares in millions):
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Share-based Compensation Expense Recognized [Table Text Block] | The table below summarizes the expense related to share-based payments for the years ended December 31, (in millions):
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for the years ended December 31,:
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Summary Of Changes In Stock Options | The following table summarizes the changes in the number of shares of common stock under option for the following periods (shares and aggregate intrinsic value in millions):
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Summary Of Changes Of Restricted Stock And Restricted Stock Units | The following table summarizes the changes in the number of shares of restricted stock, restricted stock units and performance-based restricted stock units for the following periods (shares in millions):
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Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes the Company's total unrecognized compensation cost related to stock-based compensation as of December 31, 2011 (in millions):
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Stock-Based Compensation Stock-Based Compensation (Policies)
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12 Months Ended |
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Dec. 31, 2011
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Stock-Based Compensation [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Stock-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award, which is generally three to five years for stock options and one to three years for restricted stock units and performance-based restricted stock units. The Company estimates future forfeiture rates based on its historical experience. See Footnote 15 for additional information. Stock Options The Company has issued both nonqualified and incentive stock options at exercise prices equal to the Company's common stock price on the date of grant with contractual terms of ten years. Stock options issued by the Company generally vest and are expensed ratably over three to five years. For options granted prior to 2008, options became fully vested and were exercisable for one year following termination due to death, disability or retirement at age 65 or older. For options granted since the beginning of 2008, options fully vest and are exercisable for a period of time depending on the employee's age and years of service in the case of retirement (as defined in the stock option agreement). Stock option grants are generally subject to forfeiture if employment terminates prior to vesting, except upon retirement, in which case the options may remain outstanding and exercisable for the remaining contractual term of the option. Time-Based Restricted Stock Units Awards of time-based restricted stock units are independent of stock option grants and are generally subject to forfeiture if employment terminates prior to vesting. The awards generally cliff-vest one to three years from the date of grant. In the case of retirement (as defined in the award agreement), awards vest depending on the employee's age and years of service. The time-based restricted stock units have rights to dividend equivalents payable in cash. The Company expenses the cost of restricted stock units ratably over the vesting period. Performance-Based Restricted Stock Units Performance-based restricted stock unit awards represent the right to receive unrestricted shares of stock based on the achievement of Company performance objectives and/or individual performance goals established by the Organizational Development & Compensation Committee and the Board of Directors. The performance-based restricted stock units generally entitle recipients to shares of common stock equal to 0% up to 200% of the number of units granted at the vesting date, depending on the level of achievement of the specified conditions. Other performance-based restricted stock units entitle the recipient to shares of common stock if specified market and service conditions are achieved and vest no earlier than two years from the date of grant and no later than seven years from the date of grant. Performance-based restricted stock units are not subject to the payment of dividend equivalents in the same manner as time-based restricted stock units. Rather, with respect to performance-based restricted stock units, dividend equivalents are credited to the recipient and are paid only to the extent the applicable performance criteria are met and the performance-based restricted stock units vest and the related stock is issued. In the case of retirement (as defined in the award agreement), awards vest depending on the employee's age and years of service. |
Employee Benefit And Retirement Plans (Schedule Of Company's Pension Cost And Supplemental Retirement Plans) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | $ 774.8 | ||
Defined Benefit Plan, Plans with Plan Assets in Excess of Benefit Obligation, Projected Benefit Obligation | 420.3 | ||
Defined Benefit Plan, Plans with Plan Assets in Excess of Benefit Obligation, Fair Value of Plan Assets | 444.0 | ||
U.S. [Member]
|
|||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Benefit Obligation, Beginning | 969.6 | 910.8 | |
Service cost-benefits earned during the period | 4.3 | 4.0 | 4.8 |
Interest cost on projected benefit obligation | 49.4 | 50.6 | 52.1 |
Amortization of prior service cost and actuarial loss | 88.6 | 67.2 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation | 0 | 0 | |
Defined Benefit Plan, Benefits Paid | (57.3) | (63.0) | |
Defined Benefit Plan, Settlements, Benefit Obligation | 0.3 | 0 | |
Defined Benefit Plan, Benefit Obligation, Ending | 1,054.9 | 969.6 | 910.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | 635.0 | 576.9 | |
Defined Benefit Plan, Actual Return on Plan Assets | 29.0 | 59.0 | |
Defined Benefit Plan, Contributions by Employer | 28.2 | 62.1 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | 0 | 0 | |
Defined Benefit Plan, Benefits Paid | (57.3) | (63.0) | |
Defined Benefit Plan, Settlements, Plan Assets | 0 | 0 | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 634.9 | 635.0 | 576.9 |
Defined Benefit Plan, Funded Status of Plan | (420.0) | (334.6) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | (17.7) | (7.7) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (402.3) | (326.9) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (420.0) | (334.6) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | (8.9) | (10.2) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (679.6) | (576.5) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | (688.5) | (586.7) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,049.7 | 964.1 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | 5.25% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.80% | 2.70% | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost-benefits earned during the period | 4.3 | 4.0 | 4.8 |
Interest cost on projected benefit obligation | 49.4 | 50.6 | 52.1 |
Expected return on plan assets | (59.6) | (57.5) | (57.2) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1.3 | 1.3 | 1.3 |
Defined Benefit Plan, Amortization of Gains (Losses) | 16.1 | 11.3 | 8.3 |
Curtailment and settlement costs | 0.2 | 0 | 0 |
Net periodic pension cost | 11.7 | 9.7 | 9.3 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 5.25% | 5.75% | 6.25% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.25% | 8.25% | 8.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.70% | 3.00% | 4.00% |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 29 | ||
International [Member]
|
|||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Benefit Obligation, Beginning | 482.6 | 499.8 | |
Service cost-benefits earned during the period | 6.0 | 4.8 | 4.9 |
Interest cost on projected benefit obligation | 26.6 | 26.6 | 24.5 |
Amortization of prior service cost and actuarial loss | 46.1 | (2.2) | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation | (2.0) | (19.9) | |
Defined Benefit Plan, Benefits Paid | (22.1) | (31.7) | |
Defined Benefit Plan, Settlements, Benefit Obligation | (0.9) | 5.2 | |
Defined Benefit Plan, Benefit Obligation, Ending | 536.3 | 482.6 | 499.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | 426.3 | 410.6 | |
Defined Benefit Plan, Actual Return on Plan Assets | 63.2 | 33.9 | |
Defined Benefit Plan, Contributions by Employer | 20.3 | 21.3 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (0.2) | (13.7) | |
Defined Benefit Plan, Benefits Paid | (22.1) | (31.7) | |
Defined Benefit Plan, Settlements, Plan Assets | (3.0) | 5.9 | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 484.5 | 426.3 | 410.6 |
Defined Benefit Plan, Funded Status of Plan | (51.8) | (56.3) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 23.9 | 19.4 | |
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | (4.6) | (4.0) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (71.1) | (71.7) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (51.8) | (56.3) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 1.0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (71.5) | (61.6) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | (70.5) | (61.6) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 528.1 | 474.3 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.69% | 5.37% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.72% | 4.16% | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost-benefits earned during the period | 6.0 | 4.8 | 4.9 |
Interest cost on projected benefit obligation | 26.6 | 26.6 | 24.5 |
Expected return on plan assets | (28.3) | (24.8) | (22.2) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 3.4 | 0 | 0 |
Defined Benefit Plan, Amortization of Gains (Losses) | 0.9 | 2.0 | 0.1 |
Curtailment and settlement costs | (0.8) | 3.2 | 1.3 |
Net periodic pension cost | 7.8 | 11.8 | 8.6 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 5.35% | 5.70% | 6.08% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.39% | 6.32% | 5.65% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 4.02% | 4.22% | 3.83% |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 21 | ||
Required Contribution [Member] | U.S. [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 41 |
Derivatives (Schedule Of Outstanding Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Fair Value Of Non Hedge Derivatives Immaterial Assertion | not material | |
Fair Value, Assets | $ 38.2 | $ 44.9 |
Fair Value, Liabilities | 0 | 2.0 |
Interest Rate Swaps [Member] | Other Noncurrent Assets [Member]
|
||
Fair Value, Assets | 35.8 | 42.3 |
Interest Rate Swaps [Member] | Other Noncurrent Liabilities [Member]
|
||
Fair Value, Liabilities | 0 | 0 |
Foreign Exchange Contract on Inventory-Related Purchases [Member] | Prepaid Expenses And Other [Member]
|
||
Fair Value, Assets | 1.9 | 1.4 |
Foreign Exchange Contract on Inventory-Related Purchases [Member] | Other Accrued Liabilities [Member]
|
||
Fair Value, Liabilities | 0 | 2.0 |
Foreign Exchange Contracts on Intercompany Borrowings [Member] | Prepaid Expenses And Other [Member]
|
||
Fair Value, Assets | 0.5 | 1.2 |
Foreign Exchange Contracts on Intercompany Borrowings [Member] | Other Accrued Liabilities [Member]
|
||
Fair Value, Liabilities | $ 0 | $ 0 |
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | $ 89.5 | $ 96.8 | $ 147.9 |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 7.9 | 8.0 | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 0 | (41.9) | |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 15.1 | 16.7 | |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | 0 | (31.1) | |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (30.3) | (2.8) | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 79.8 | 90.4 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 11.0 | 16.3 | |
Unrecognized Tax Positions, Reduction of Accrued Interest and Penalties During Period | $ 5.1 | $ 27.4 |
Restructuring Costs (Restructuring Reserves by Segment) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 35.1 | |
Restructuring Reserve, Period Expense | 77.4 | |
Restructuring Reserve Settled | (79.0) | |
Ending Balance | 33.5 | |
Home & Family [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 8.0 | |
Restructuring Reserve, Period Expense | 13.7 | |
Restructuring Reserve Settled | (17.7) | |
Ending Balance | 4.0 | |
Office Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 15.7 | |
Restructuring Reserve, Period Expense | 24.2 | |
Restructuring Reserve Settled | (28.8) | |
Ending Balance | 11.1 | |
Tools, Hardware & Commercial Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 3.9 | |
Restructuring Reserve, Period Expense | 9.4 | |
Restructuring Reserve Settled | (8.5) | |
Ending Balance | 4.8 | |
Corporate [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 7.5 | |
Restructuring Reserve, Period Expense | 30.1 | |
Restructuring Reserve Settled | (24.0) | |
Ending Balance | 13.6 | |
Project Renewal [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Restructuring Reserve, Period Expense | 31.2 | |
Restructuring Reserve Settled | (15.5) | |
Ending Balance | 15.7 | |
Project Renewal [Member] | Home & Family [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Restructuring Reserve, Period Expense | 10.6 | |
Restructuring Reserve Settled | (1.0) | |
Ending Balance | 9.6 | |
Project Renewal [Member] | Office Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Restructuring Reserve, Period Expense | 4.4 | |
Restructuring Reserve Settled | (1.6) | |
Ending Balance | 2.8 | |
Project Renewal [Member] | Tools, Hardware & Commercial Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Restructuring Reserve, Period Expense | 0.8 | |
Restructuring Reserve Settled | (0.3) | |
Ending Balance | 0.5 | |
Project Renewal [Member] | Corporate [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Restructuring Reserve, Period Expense | 15.4 | |
Restructuring Reserve Settled | (12.6) | |
Ending Balance | 2.8 | |
Project Acceleration [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 33.5 | 35.1 |
Restructuring Reserve, Period Expense | 0 | 77.4 |
Restructuring Reserve Settled | (24.3) | (79.0) |
Ending Balance | 9.2 | 33.5 |
Project Acceleration [Member] | Home & Family [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 4.0 | |
Restructuring Reserve, Period Expense | 0 | |
Restructuring Reserve Settled | (4.0) | |
Ending Balance | 0 | |
Project Acceleration [Member] | Office Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 11.1 | |
Restructuring Reserve, Period Expense | 0 | |
Restructuring Reserve Settled | (8.4) | |
Ending Balance | 2.7 | |
Project Acceleration [Member] | Tools, Hardware & Commercial Products [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 4.8 | |
Restructuring Reserve, Period Expense | 0 | |
Restructuring Reserve Settled | (1.1) | |
Ending Balance | 3.7 | |
Project Acceleration [Member] | Corporate [Member]
|
||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 13.6 | |
Restructuring Reserve, Period Expense | 0 | |
Restructuring Reserve Settled | (10.8) | |
Ending Balance | $ 2.8 |
Derivatives Derivatives (Schedule Of Cash Flow Hedges, AOCI) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (1.0) | $ 2.9 | $ (1.8) |
Foreign Exchange Contract [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (2.8) | (1.4) | (9.5) |
Foreign Exchange Contracts on Intercompany Borrowings [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 1.8 | $ 4.3 | $ 7.7 |
Stock-Based Compensation (Narrative) (Details) (USD $)
Share data in Millions, unless otherwise specified |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 43,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 15.4 | 16.3 | 16.3 | 16.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 6.1 | 5.2 | 4.6 | 3.2 |
Stock or Unit Option Plan Expense | 12,500,000 | 13,900,000 | 14,400,000 | |
Restricted Stock or Unit Expense | 30,500,000 | 22,600,000 | 20,700,000 | |
Share-based Compensation | 43,000,000 | 36,500,000 | 35,100,000 | |
Share-based Compensation, Net of Tax | 31,800,000 | 28,500,000 | 29,800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.60% | 2.90% | 2.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.30% | 1.40% | 5.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 39.00% | 38.00% | 35.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6.4 | 6.7 | 6.8 | |
Accelerated Vesting Conditions, Stock Options, Effective Period | 1 | |||
Accelerated Vesting Conditions, Stock Options, Employee Age | 65 | |||
2010 Stock Plan [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 21.0 | |||
Multiplier For Calculating Share Availability Under A Stock Plan | 2.5 | |||
Shares Reserved For Issuance Of Stock Options | 1.0 | |||
Shares Reserved For Issuance Of Restricted Stock Units | 5.5 | |||
Shares Reserved For Issuance Of Performance Based Restricted Stock Units | 1.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 13.4 | |||
Stock Options [Member]
|
||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 9,700,000 | |||
Share-based Compensation Not Yet Recognized, Weighted Average Period | 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum | five | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | three | |||
2003 Stock Plan [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 13.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3.6 | |||
1993 Stock Plan [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0.7 | |||
Restricted Stock Units (RSU) [Member]
|
||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 33,300,000 | |||
Share-based Compensation Not Yet Recognized, Weighted Average Period | 2 | |||
Vesting period, years | 3 | |||
Percentage of units granted assumed | 100.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum | three | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | one | |||
Performance Based Restricted Stock Units [Member]
|
||||
Performance-based stock units awarded | 0.5 | 0.9 | 1.2 | |
Percentage of units that are earned, minimum | 0.00% | |||
Percentage of units that are earned, maximum | 200.00% | |||
Performance-based stock, outstanding | 2.1 | |||
Shares entitled to recipients | 1.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | one | |||
PSU Other Than TSR [Member]
|
||||
Performance-based stock units awarded | 0.7 | |||
Non-TSR PSU Vesting Period Minimum | 2 | |||
Non-TSR PSU Vesting Period Maximum | 7 | |||
Performance-based stock, outstanding | 0.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum | seven | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | two | |||
2010 Stock Plan [Member] | Restricted Stock Units (RSU) [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | three |
Employee Benefit And Retirement Plans Unobservable Inputs Roll Forward (Details) (Fair Value, Inputs, Level 3 [Member], USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | $ 73.1 | $ 66.2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements | 4.5 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 7.1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (8.3) | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 74.6 | 73.1 |
Partnership Interest [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | 47.4 | 34.9 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements | 6.4 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 3.5 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (7.8) | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 46.3 | 47.4 |
Real Estate Funds [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | 25.2 | 25.2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements | (0.2) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 3.6 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 28.3 | 25.2 |
Pension Assets, Other [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning | 0.5 | 6.1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements | (1.7) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (0.5) | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending | 0 | 0.5 |
Realized Gain (Loss) on Sale of Investments [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (3.7) | (1.1) |
Realized Gain (Loss) on Sale of Investments [Member] | Partnership Interest [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 |
Realized Gain (Loss) on Sale of Investments [Member] | Real Estate Funds [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 |
Realized Gain (Loss) on Sale of Investments [Member] | Pension Assets, Other [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (3.7) | (1.1) |
Unrealized Gain (Loss or Write-down) [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 6.4 | 3.5 |
Unrealized Gain (Loss or Write-down) [Member] | Partnership Interest [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 3.2 | 6.1 |
Unrealized Gain (Loss or Write-down) [Member] | Real Estate Funds [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (0.5) | 0.2 |
Unrealized Gain (Loss or Write-down) [Member] | Pension Assets, Other [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ 3.7 | $ (2.8) |
Stock-Based Compensation (Summary Of Changes Of Stock Options) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Shares, Beginning of Period | 16.3 | 16.3 | 16.4 | |
Granted, Shares | 1.0 | 1.5 | 3.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (0.1) | |||
Forfeited / expired, Shares | (1.9) | (1.4) | (3.3) | |
Outstanding Shares, End of Period | 15.4 | 16.3 | 16.3 | |
Weighted Average Exercise Price, Outstanding, Beginning of Period | $ 22 | $ 22 | $ 26 | |
Granted, Weighted Average Exercise Price | $ 19 | $ 14 | $ 8 | |
Forfeited / expired, Weighted Average Exercise Price | $ 23 | $ 23 | $ 26 | |
Weighted Average Exercise Price, Outstanding, End of Period | $ 21 | $ 22 | $ 22 | |
Outstanding at period end, Aggregate Intrinsic Value Exercisable | $ 25.3 | $ 35.4 | $ 21.1 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 15.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 21 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 5.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 24 | $ 26 | $ 26 | $ 27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7 | $ 5 | $ 2 | |
Share Based Compensation Arrangement By Share Based Payment Award, Options Exercises In Period, Weighted Average Ex Price | $ 9 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 0.5 | |||
Outstanding, Exercisable, Beginning | 8.9 | 7.6 | 6.6 | |
Outstanding, Exercisable, Ending | 9.8 | 8.9 | 7.6 |
Commitments (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Commitments [Abstract] | |||
Operating Leases, Rent Expense | $ 129.0 | $ 122.7 | $ 120.2 |
Operating Leases, Future Minimum Payments Due, Current | 110.7 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 77.8 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 62.0 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 43.1 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 28.2 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 86.4 | ||
Operating Leases, Future Minimum Payments Due | 408.2 | ||
Unrecorded Unconditional Purchase Obligation, Due within One Year | 477.3 | ||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 76.0 | ||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 77.0 | ||
Unrecorded Unconditional Purchase Obligation | $ 630.3 |
Convertible Note Hedge and Warrant Transactions (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2010
Convertible Note Call Options [Member]
|
Sep. 30, 2010
Convertible Note Call Options [Member]
|
Dec. 31, 2010
Convertible Note Warrants [Member]
|
Sep. 30, 2010
Convertible Note Warrants [Member]
|
|
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||
Option Indexed to Issuer's Equity, Indexed Shares | 40.1 | ||||||
Option Indexed to Issuer's Equity, Strike Price | $ 8.61 | $ 11.59 | |||||
Forward Contract Indexed to Issuer's Equity, Indexed Shares | 40.1 | ||||||
Purchase of call options | $ 0 | $ 0 | $ 69.0 | ||||
Proceeds from Issuance of Warrants | 0 | 0 | 32.7 | ||||
Proceeds from settlement of call options | 0 | 369.5 | 0 | ||||
Payments for Repurchase of Warrants | 0 | 298.4 | 0 | ||||
Adjustments To Additional Paid In Capital Settlement Of Options and Warrants, Net | $ 71.1 |
Other (Income) Expense, Net
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
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Other (Income) Expense, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Other Expense Disclosure [Text Block] | Other (Income) Expense, Net Other (income) expense, net consists of the following for the years ended December 31, (in millions):
|
Basis Of Presentation And Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Research and Development Expense | $ 130.1 | $ 128.8 | $ 118.4 |
Cooperative Advertising | 120.9 | 107.6 | 112.6 |
Advertising Expense | 158.3 | 152.9 | 139.8 |
Inventory Valuation Reserves | 59.3 | 70.7 | |
Derivative Asset, Fair Value, Gross Asset | 38.2 | 44.9 | |
Percentage of net sales generated by Venezuela, less than | 1.00% | 1.00% | 1.20% |
Foreign Currency Derivative Assets at Fair Value | 2.4 | ||
Minimum Exchange of Bolivar Fuerte [Member]
|
|||
Foreign currency exchange rate | 4.5 | ||
Maximum Exchange of Bolivar Fuerte [Member]
|
|||
Foreign currency exchange rate | 5.3 | ||
Venezuelan Subsidiary Bolivar Denominated [Member]
|
|||
Net monetary assets | 43.2 | ||
Land, Buildings and Improvements [Member]
|
|||
Property, Plant and Equipment, Useful Life, Minimum | 20 | ||
Property, Plant and Equipment, Useful Life, Maximum | 40 | ||
Machinery and Equipment [Member]
|
|||
Property, Plant and Equipment, Useful Life, Minimum | 3 | ||
Property, Plant and Equipment, Useful Life, Maximum | 12 | ||
Interest Rate Swaps [Member] | Other Noncurrent Assets [Member]
|
|||
Derivative Asset, Fair Value, Gross Asset | $ 35.8 | $ 42.3 | |
Restricted Stock Units (RSU) [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | one | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum | three | ||
Stock Options [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Minimum | three | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum | five |
Derivatives (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Derivative Instruments | The following table summarizes the Company’s outstanding derivative instruments and their effects on the Consolidated Balance Sheets as of December 31, 2011 and 2010 (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Pretax Effects Of Derivative Instruments Designated As Fair Value Hedges | The pretax effects of derivative instruments designated as fair value hedges on the Company’s Consolidated Statements of Operations for 2011, 2010 and 2009 were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Cash Flow Hedges Recognized In Accumulated Other Comprehensive Income | The pretax effects of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations and AOCI for 2011, 2010 and 2009 were as follows (in millions):
|
Derivatives (Schedule Of Cash Flow Hedges) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Amount of Gain (Loss) Reclassified from AOCI to Income | $ (5.8) | $ (1.3) | $ (0.1) |
Cost of Products Sold [Member] | Foreign Exchange Contract on Inventory-Related Purchases [Member]
|
|||
Amount of Gain (Loss) Reclassified from AOCI to Income | (5.1) | (1.8) | (2.6) |
Interest Expense, Net [Member] | Foreign Exchange Contracts on Intercompany Borrowings [Member]
|
|||
Amount of Gain (Loss) Reclassified from AOCI to Income | $ (0.7) | $ 0.5 | $ 2.5 |
Segment Information (Company's Segments Results) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
||||||||||||||||
Net Sales | $ 5,864.6 | $ 5,658.2 | $ 5,483.4 | |||||||||||||||
Operating Profit (Loss) | 257.2 | 623.5 | 575.3 | |||||||||||||||
Depreciation, Depletion and Amortization | 161.6 | 172.3 | 175.1 | |||||||||||||||
Payments to Acquire Productive Assets | 222.9 | 164.7 | 153.3 | |||||||||||||||
Identifiable Assets | 6,160.9 | 6,405.3 | ||||||||||||||||
Restructuring Costs | (50.1) | [1] | (77.4) | [1] | (100.0) | [1] | ||||||||||||
Goodwill, Impairment Loss | (382.6) | [1] | 0 | [1] | 0 | [1] | ||||||||||||
Home & Family [Member]
|
||||||||||||||||||
Net Sales | 2,390.5 | [2] | 2,378.4 | [2] | 2,377.2 | [2] | ||||||||||||
Operating Profit (Loss) | 280.5 | [1] | 281.8 | [1] | 274.7 | [1] | ||||||||||||
Depreciation, Depletion and Amortization | 44.5 | [1] | 51.4 | [1] | 51.3 | [1] | ||||||||||||
Payments to Acquire Productive Assets | 42.4 | 38.2 | 30.8 | |||||||||||||||
Identifiable Assets | 882.4 | 896.4 | ||||||||||||||||
Restructuring Costs | (10.6) | (13.7) | (24.0) | |||||||||||||||
Rubbermaid Consumer [Member]
|
||||||||||||||||||
Net Sales | 827.2 | 819.7 | 847.7 | |||||||||||||||
Baby & Parenting [Member]
|
||||||||||||||||||
Net Sales | 680.4 | 700.2 | 703.6 | |||||||||||||||
Decor [Member]
|
||||||||||||||||||
Net Sales | 464.8 | 458.8 | 450.9 | |||||||||||||||
Home & Family - Other GBUs [Member]
|
||||||||||||||||||
Net Sales | 418.1 | 399.7 | 375.0 | |||||||||||||||
Office Products [Member]
|
||||||||||||||||||
Net Sales | 1,778.8 | [2] | 1,708.9 | [2] | 1,674.7 | [2] | ||||||||||||
Operating Profit (Loss) | 300.2 | [1] | 269.4 | [1] | 235.2 | [1] | ||||||||||||
Depreciation, Depletion and Amortization | 32.2 | [1] | 32.1 | [1] | 39.6 | [1] | ||||||||||||
Payments to Acquire Productive Assets | 39.5 | 35.5 | 35.2 | |||||||||||||||
Identifiable Assets | 1,019.6 | 972.0 | ||||||||||||||||
Restructuring Costs | (4.4) | (24.2) | (34.8) | |||||||||||||||
Tools, Hardware & Commercial Products [Member]
|
||||||||||||||||||
Net Sales | 1,695.3 | [2] | 1,570.9 | [2] | 1,431.5 | [2] | ||||||||||||
Operating Profit (Loss) | 234.3 | [1] | 246.6 | [1] | 246.0 | [1] | ||||||||||||
Depreciation, Depletion and Amortization | 45.5 | [1] | 49.7 | [1] | 48.9 | [1] | ||||||||||||
Payments to Acquire Productive Assets | 59.6 | 28.5 | 26.2 | |||||||||||||||
Identifiable Assets | 893.3 | 931.5 | ||||||||||||||||
Restructuring Costs | (0.8) | (9.4) | (16.6) | |||||||||||||||
Corporate [Member]
|
||||||||||||||||||
Operating Profit (Loss) | (125.1) | [1] | (96.9) | [1] | (80.6) | [1] | ||||||||||||
Depreciation, Depletion and Amortization | 39.4 | [1] | 39.1 | [1] | 35.3 | [1] | ||||||||||||
Payments to Acquire Productive Assets | 81.4 | [3] | 62.5 | [3] | 61.1 | [3] | ||||||||||||
Identifiable Assets | 3,365.6 | 3,605.4 | [4] | |||||||||||||||
Restructuring Costs | (34.3) | (30.1) | (24.6) | |||||||||||||||
Total North America [Member]
|
||||||||||||||||||
Net Sales | 4,292.0 | [2],[5] | 4,221.3 | [2],[5] | 4,124.4 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 248.1 | [1] | 551.0 | [1] | 555.9 | [1] | ||||||||||||
Restructuring Costs | (29.4) | (26.0) | (38.3) | |||||||||||||||
Goodwill, Impairment Loss | (266.8) | 0 | 0 | |||||||||||||||
United States [Member]
|
||||||||||||||||||
Net Sales | 3,915.7 | [2],[5] | 3,870.3 | [2],[5] | 3,806.8 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 166.9 | [1] | 471.9 | [1] | 492.6 | [1] | ||||||||||||
Restructuring Costs | (29.3) | (18.1) | (32.6) | |||||||||||||||
Goodwill, Impairment Loss | (266.8) | 0 | 0 | |||||||||||||||
Canada [Member]
|
||||||||||||||||||
Net Sales | 376.3 | [2],[5] | 351.0 | [2],[5] | 317.6 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 81.2 | [1] | 79.1 | [1] | 63.3 | [1] | ||||||||||||
Restructuring Costs | (0.1) | (7.9) | (5.7) | |||||||||||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||||||||||||||
Total International [Member]
|
||||||||||||||||||
Net Sales | 1,572.6 | [2],[5] | 1,436.9 | [2],[5] | 1,359.0 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 9.1 | [1] | 72.5 | [1] | 19.4 | [1] | ||||||||||||
Restructuring Costs | (20.7) | (51.4) | (61.7) | |||||||||||||||
Goodwill, Impairment Loss | (115.8) | 0 | 0 | |||||||||||||||
Europe, Middle East and Africa [Member]
|
||||||||||||||||||
Net Sales | 815.3 | [2],[5] | 800.5 | [2],[5] | 791.0 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 16.6 | [1],[6] | 10.0 | [1],[6] | (19.7) | [1],[6] | ||||||||||||
Restructuring Costs | (19.5) | (30.4) | (36.4) | |||||||||||||||
Goodwill, Impairment Loss | (9.2) | 0 | 0 | |||||||||||||||
Restructuring Related Costs | 37.4 | 15.2 | ||||||||||||||||
Latin America [Member]
|
||||||||||||||||||
Net Sales | 318.6 | [2],[5] | 267.0 | [2],[5] | 259.5 | [2],[5] | ||||||||||||
Operating Profit (Loss) | 12.8 | [1] | (1.3) | [1] | 22.3 | [1] | ||||||||||||
Restructuring Costs | (0.7) | (12.9) | (6.3) | |||||||||||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||||||||||||||
Asia Pacific [Member]
|
||||||||||||||||||
Net Sales | 438.7 | [2],[5] | 369.4 | [2],[5] | 308.5 | [2],[5] | ||||||||||||
Operating Profit (Loss) | (20.3) | [1] | 63.8 | [1] | 16.8 | [1] | ||||||||||||
Restructuring Costs | (0.5) | (8.1) | (19.0) | |||||||||||||||
Goodwill, Impairment Loss | $ (106.6) | $ 0 | $ 0 | |||||||||||||||
Wal-Mart Stores Inc. and Subsidiaries [Member]
|
||||||||||||||||||
Percentage of net sales | 11.00% | 11.90% | 12.30% | |||||||||||||||
|
Restructuring Costs (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
|
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Project Renewal [Member]
|
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Schedule Of Restructuring Costs Recognized | The following table depicts the activity in accrued restructuring reserves for Project Renewal for 2011 aggregated by reportable business segment (in millions):
|
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Summary Of Accrued Restructuring Reserves | The following table depicts the restructuring charges incurred in connection with Project Renewal for the year ended December 31, (in millions):
|
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Changes In Accrued Restructuring Reserves | Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management, are periodically updated for changes and also include amounts recognized as incurred. The following table depicts the activity in accrued restructuring reserves for Project Renewal for 2011 (in millions):
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European Transformation Plan [Member]
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Changes In Accrued Restructuring Reserves | The following table depicts the activity in accrued restructuring reserves for the European Transformation Plan for 2011 (in millions):
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Project Acceleration [Member]
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Schedule Of Restructuring Costs Recognized | The following table depicts the activity in accrued restructuring reserves for 2011 and 2010 aggregated by reportable business segment (in millions):
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Summary Of Accrued Restructuring Reserves | The table below summarizes the restructuring costs recognized for Project Acceleration restructuring activities for the periods indicated (in millions):
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Changes In Accrued Restructuring Reserves | A summary of activity in accrued restructuring reserves for continuing operations for 2011 and 2010 is as follows (in millions):
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Schedule of Restructuring Charges by Segment [Table Text Block] | The table below shows restructuring costs recognized for Project Acceleration aggregated by reportable business segment for the years ended December 31, (in millions):
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Reportable Business Segment [Member]
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Schedule of Restructuring Charges by Segment [Table Text Block] | The table below shows restructuring costs recognized for all restructuring activities for the periods indicated, aggregated by reportable business segment (in millions):
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Stockholders' Equity (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified |
12 Months Ended | 3 Months Ended | 8 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Mar. 31, 2011
Accelerated Stock Buyback Program [Member]
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Mar. 24, 2011
Accelerated Stock Buyback Program [Member]
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Dec. 31, 2010
Accelerated Stock Buyback Program [Member]
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Dec. 31, 2011
Share Repurchase Plan [Member]
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Aug. 31, 2014
Share Repurchase Plan [Member]
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Dec. 31, 2010
$550million Medium Term Notes [Member]
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Dec. 31, 2011
$550million Medium Term Notes [Member]
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Dec. 31, 2010
$300million Medium Term Notes [Member]
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Dec. 31, 2010
$345million Converitble Notes [Member]
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Dec. 31, 2011
$345million Convertible Notes March 2011 Exchange [Member]
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Stock Repurchase Program, Authorized Amount | $ 300,000,000 | ||||||||||||
Stock Repurchase Program, Period in Force | 3 | ||||||||||||
Stock Repurchased and Retired During Period, Shares | 2.0 | 25.8 | 3.4 | ||||||||||
Stock Repurchased and Retired During Period, Value | 500,100,000 | 46,100,000 | |||||||||||
Principal amount of note | 550,000,000 | 300,000,000 | 345,000,000 | ||||||||||
Debt Instrument, Convertible, Conversion Ratio | 116.198 | ||||||||||||
Convertible Debt Exchange Cash Paid Per Unit | $ 160 | ||||||||||||
Convertible Notes Face Value Subject To Exchange Min | 1,000 | ||||||||||||
Carrying Value of Convertible Notes Exchanged | 324,700,000 | 20,300,000 | |||||||||||
Shares issued for exchange of convertible notes, Shares | 37.7 | ||||||||||||
Shares issued for exchange of convertible notes | 44,700,000 | 638,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 10.60% | |||||||||||
Debt Instrument, Maturity Date | Aug. 15, 2020 | Apr. 15, 2019 | Mar. 15, 2014 | ||||||||||
Repurchase of shares of common stock, value | 46,100,000 | 500,100,000 | 0 | 500,000,000 | |||||||||
Daily volume-weighted average share price | $ 17.95 | ||||||||||||
Shares value issued for exchange of convertible notes | 44,700,000 | ||||||||||||
Convertible Debt Exchange Cash Paid | 52,000,000 | 3,100,000 | |||||||||||
Extinguishment of equity component of convertible notes | 25,800,000 | 334,400,000 | 25,800,000 | ||||||||||
Proceeds from settlement of call options | 0 | 369,500,000 | 0 | ||||||||||
Payments for Repurchase of Warrants | $ 0 | $ 298,400,000 | $ 0 | ||||||||||
Shares Issued For Exchange Of Convertible Notes, Number of Shares | 2.3 |
Debt (Convertible Notes) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified |
12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Sep. 30, 2010
Convertible Notes Exchange Offer [Member]
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Dec. 31, 2011
Convertible Notes Exchange Offer [Member]
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Dec. 31, 2010
Convertible Notes Exchange Offer [Member]
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Jun. 30, 2011
Convertible Notes Exchange Offer [Member]
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Mar. 31, 2011
Convertible Notes Exchange Offer [Member]
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Dec. 31, 2011
Convertible Notes [Member]
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Dec. 31, 2010
Convertible Notes [Member]
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Dec. 31, 2009
Convertible Notes [Member]
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Principal amount of note | $ 324,700,000 | $ 200,000 | $ 20,000,000 | $ 345,000,000 | |||||||
Debt Instrument, Convertible, Effective Interest Rate | 10.80% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||||
Debt Instrument, Convertible, Conversion Ratio | 116.198 | 116.198 | |||||||||
Medium Term Notes, Redemption, Min Principal Amount Subject To Redemption | 0 | ||||||||||
Debt Instrument, Convertible, Conversion Price | $ 8.61 | $ 8.61 | |||||||||
Discount on convertible notes, net of issuance costs and tax | 41,000,000 | 69,000,000 | |||||||||
Convertible Debt Exchange Cash Paid | 52,000,000 | 3,100,000 | 52,000,000 | ||||||||
Shares Issued For Exchange Of Convertible Notes, Number of Shares | 2.3 | 37.7 | |||||||||
Fair market value of common stock at settlement | 47,400,000 | ||||||||||
Excess of the fair value of the liability component over carrying value | 356,000,000 | 21,800,000 | |||||||||
Carrying Value of Convertible Notes Exchanged | 324,700,000 | 275,500,000 | 17,300,000 | ||||||||
Loss related to extinguishment of debt | 4,800,000 | 218,600,000 | 4,700,000 | (4,800,000) | (87,200,000) | ||||||
Value of shares issued, increase in stockholders' equity | 44,300,000 | ||||||||||
Equity component of convertible notes, reduction in stockholders' equity | (25,800,000) | (334,400,000) | 25,600,000 | ||||||||
Convertible notes outstanding | $ 100,000 | $ 17,500,000 |
Goodwill and Other Intangible Assets, Net (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||||||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Dec. 31, 2002
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Goodwill [Roll Forward] | |||||||||||||
Goodwill, Beginning Balance | $ 2,749.5 | $ 2,754.3 | |||||||||||
Goodwill, Acquired During Period | 2.2 | 0 | |||||||||||
Goodwill, Impairment Loss | (370.2) | 0 | |||||||||||
Goodwill, Other Adjustments | (9.3) | 1.5 | |||||||||||
Goodwill, Translation Adjustments | (6.2) | (6.3) | |||||||||||
Goodwill, Ending Balance | 2,366.0 | 2,749.5 | 2,754.3 | ||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | 1,642.4 | 1,272.2 | |||||||||||
Goodwill Impairment Charges Recorded Upon SFAS 142 Adoption | 538.0 | ||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss Discontinued Operations | 298.9 | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 9 | ||||||||||||
Finite-Lived Patents, Net | 29.2 | ||||||||||||
Finite-Lived Customer Lists, Net | 47.0 | ||||||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (280.7) | (240.4) | |||||||||||
Intangible Assets, Gross (Excluding Goodwill) | 946.8 | 888.7 | |||||||||||
Intangible Assets, Net (Excluding Goodwill) | 666.1 | 648.3 | |||||||||||
Finite-Lived Intangible Assets, Amortization Expense | 51.0 | 54.3 | 53.0 | ||||||||||
Future Amortization Expense, Year One | 54.9 | ||||||||||||
Future Amortization Expense, Year Two | 50.6 | ||||||||||||
Future Amortization Expense, Year Three | 48.3 | ||||||||||||
Future Amortization Expense, Year Four | 42.0 | ||||||||||||
Future Amortization Expense, Year Five | 38.9 | ||||||||||||
Goodwill, Impairment Loss | (382.6) | [1] | 0 | [1] | 0 | [1] | |||||||
Impairment of Intangible Assets (Excluding Goodwill) | 12.4 | ||||||||||||
Home And Family [Member]
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Goodwill [Roll Forward] | |||||||||||||
Goodwill, Beginning Balance | 662.6 | 648.7 | |||||||||||
Goodwill, Acquired During Period | 0 | 0 | |||||||||||
Goodwill, Impairment Loss | (305.5) | 0 | |||||||||||
Goodwill, Other Adjustments | 0 | 0 | |||||||||||
Goodwill, Translation Adjustments | 3.8 | 13.9 | |||||||||||
Goodwill, Ending Balance | 360.9 | 662.6 | |||||||||||
Office Products [Member]
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Goodwill [Roll Forward] | |||||||||||||
Goodwill, Beginning Balance | 1,135.7 | 1,149.5 | |||||||||||
Goodwill, Acquired During Period | 2.2 | 0 | |||||||||||
Goodwill, Impairment Loss | 0 | 0 | |||||||||||
Goodwill, Purchase Accounting Adjustments | 10.0 | [2] | 1.5 | [2] | |||||||||
Goodwill, Translation Adjustments | (10.4) | (15.3) | |||||||||||
Goodwill, Ending Balance | 1,137.5 | 1,135.7 | |||||||||||
Tools, Hardware And Commercial Products [Member]
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Goodwill [Roll Forward] | |||||||||||||
Goodwill, Beginning Balance | 951.2 | 956.1 | |||||||||||
Goodwill, Acquired During Period | 0 | 0 | |||||||||||
Goodwill, Impairment Loss | (64.7) | 0 | |||||||||||
Goodwill, Other Adjustments | (19.3) | [2] | 0 | [2] | |||||||||
Goodwill, Translation Adjustments | 0.4 | (4.9) | |||||||||||
Goodwill, Ending Balance | 867.6 | 951.2 | |||||||||||
Trade Names [Member]
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 311.3 | 317.7 | |||||||||||
Trade Names [Member]
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 10 | ||||||||||||
Amortization Period, Range (In Years) | 3 – 20 years | ||||||||||||
Finite-Lived Intangible Assets, Gross | 42.3 | 46.2 | |||||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (25.1) | (23.2) | |||||||||||
Finite-Lived Intangible Assets, Net | 17.2 | 23.0 | |||||||||||
Computer Software, Intangible Asset [Member]
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 10 | ||||||||||||
Amortization Period, Range (In Years) | 3 – 12 years | ||||||||||||
Finite-Lived Intangible Assets, Gross | 387.1 | 317.2 | |||||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (125.8) | (100.8) | |||||||||||
Finite-Lived Intangible Assets, Net | 261.3 | 216.4 | |||||||||||
Other Intangible Assets [Member]
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 8 | [3] | |||||||||||
Amortization Period, Range (In Years) | 3 – 14 years | [3] | |||||||||||
Finite-Lived Intangible Assets, Gross | 206.1 | [3] | 207.6 | [3] | |||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (129.8) | [3] | (116.4) | [3] | |||||||||
Finite-Lived Intangible Assets, Net | $ 76.3 | [3] | $ 91.2 | [3] | |||||||||
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Income Taxes (Tables)
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Dec. 31, 2011
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Income Tax Contingencies [Table Text Block] | The following table summarizes the changes in gross unrecognized tax benefits for the years ended December 31, (in millions):
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consists of the following for the years ended December 31, (in millions):
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the U.S. statutory rate to the effective income tax rate is as follows for the years ended December 31,:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of net deferred tax assets are as follows as of December 31, (in millions):
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Basis Of Presentation And Significant Accounting Policies
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12 Months Ended |
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Dec. 31, 2011
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Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Newell Rubbermaid (the “Company”) is a global marketer of consumer and commercial products that touch the lives of people where they work, live and play. The Company’s products are marketed under a strong portfolio of brands, including Rubbermaid®, Graco®, Aprica®, Levolor®, Calphalon®, Goody®, Sharpie®, Paper Mate®, Dymo®, Parker®, Waterman®, Irwin® and Lenox®. The Company’s multi-product offering consists of well-known, name-brand consumer and commercial products in three business segments: Home & Family; Office Products; and Tools, Hardware & Commercial Products. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, its majority owned subsidiaries and variable interest entities where the Company is the primary beneficiary, after elimination of intercompany transactions. Use of Estimates The preparation of these consolidated financial statements requires the use of certain estimates by management in determining the Company’s assets, liabilities, revenues and expenses, and related disclosures. Actual results could differ from those estimates. Reclassifications Certain 2010 and 2009 amounts have been reclassified to conform to the 2011 presentation. Concentration of Credit Risk The Company sells products to customers in diversified industries and geographic regions and, therefore, has no significant concentrations of credit risk. The Company continuously evaluates the creditworthiness of its customers and generally does not require collateral. The Company evaluates the collectibility of accounts receivable based on a combination of factors. When aware of a specific customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due and historical collection experience. Accounts are also reviewed for potential write-off on a case-by-case basis. Accounts deemed uncollectible are written off, net of expected recoveries. If circumstances related to specific customers change, the Company’s estimates of the recoverability of receivables could be further adjusted. The Company’s forward exchange and option contracts do not subject the Company to risk due to foreign exchange rate movement, because gains and losses on these instruments generally offset gains and losses on the assets, liabilities, and other transactions being hedged. The Company is exposed to credit-related losses in the event of non-performance by counterparties to certain derivative financial instruments. The Company does not obtain collateral or other security to support derivative financial instruments subject to credit risk, but monitors the credit standing of the counterparties. The credit exposure that results from commodity, interest rate, foreign exchange and other derivatives is the fair value of contracts with a positive fair value as of the reporting date. The credit exposure on the Company’s interest rate and foreign currency derivatives at December 31, 2011 was $35.8 million and $2.4 million, respectively. Sales Recognition Sales of merchandise and freight billed to customers are recognized when title passes and all substantial risks of ownership change, which generally occurs either upon shipment or upon delivery based upon contractual terms. Sales are net of provisions for cash discounts, returns, customer discounts (such as volume or trade discounts), cooperative advertising and other sales-related discounts. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments that have a maturity of three months or less when purchased. Inventories Inventories are stated at the lower of cost or market value using the last-in, first-out (LIFO) or first-in, first-out (FIFO) methods (see Footnote 5 for additional information). The Company reduces its inventory value for estimated obsolete and slow-moving inventory in an amount equal to the difference between the cost of inventory and the net realizable value based upon estimates about future demand and market conditions. As of December 31, 2011 and 2010, the Company’s reserves for excess and obsolete inventory and shrink reserves totaled $59.3 million and $70.7 million, respectively. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by the Company are as follows: buildings and improvements (20-40 years) and machinery and equipment (3-12 years). Goodwill and Other Indefinite-Lived Intangible Assets The Company conducts its annual test for impairment of goodwill and indefinite-lived intangible assets in the third quarter because it coincides with its annual strategic planning process. The Company evaluates goodwill for impairment annually at the reporting unit level, which is one level below the operating segment level. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. If the carrying amount of the reporting unit is greater than the fair value, impairment may be present. The Company assesses the fair value of each reporting unit for its goodwill impairment test based on a discounted cash flow model, an earnings multiple or an actual sales offer received from a prospective buyer, if available. Estimates critical to the Company’s fair value estimates using earnings multiples include the projected financial performance of the reporting unit and the applicable earnings multiple. Estimates critical to the Company’s fair value estimates under the discounted cash flow model include the discount rate, projected average revenue growth, projected long-term growth rates in the determination of terminal values and product costs. The Company measures the amount of any goodwill impairment based upon the estimated fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets, and estimates the implied fair value of goodwill. An impairment charge is recognized to the extent the recorded goodwill exceeds the implied fair value of goodwill. The Company also evaluates indefinite-lived intangible assets (primarily trademarks and trade names) for impairment annually. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of an indefinite-lived intangible asset is below its carrying amount. Estimates critical to the Company’s evaluation of indefinite-lived intangible assets for impairment include the discount rate, royalty rates used in its evaluation of trade names, projected average revenue growth and projected long-term growth rates in the determination of terminal values. An impairment charge is recorded if the carrying amount of an indefinite-lived intangible asset exceeds the estimated fair value on the measurement date. See Footnote 7 for additional detail on goodwill and other intangible assets. Other Long-Lived Assets The Company tests its other long-lived assets for impairment in accordance with relevant authoritative guidance. The Company evaluates if impairment indicators related to its property, plant and equipment and other long-lived assets are present. These impairment indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If impairment indicators are present, the Company estimates the future cash flows for the asset or group of assets. The sum of the undiscounted future cash flows attributable to the asset or group of assets is compared to their carrying amount. The cash flows are estimated utilizing various projections of revenues and expenses, working capital and proceeds from asset disposals on a basis consistent with the strategic plan. If the carrying amount exceeds the sum of the undiscounted future cash flows, the Company determines the assets’ fair value by discounting the future cash flows using a discount rate required for a similar investment of like risk and records an impairment charge as the difference between the fair value and the carrying value of the asset group. Generally, the Company performs its testing of the asset group at the product-line level, as this is the lowest level for which identifiable cash flows are available. Shipping and Handling Costs The Company records shipping and handling costs as a component of cost of products sold. Product Liability Reserves The Company has a self-insurance program for product liability that includes reserves for self-retained losses and certain excess and aggregate risk transfer insurance. The Company uses historical loss experience combined with actuarial evaluation methods, review of significant individual files and the application of risk transfer programs in determining required product liability reserves. The Company’s actuarial evaluation methods take into account claims incurred but not reported when determining the Company’s product liability reserve. While the Company believes that it has adequately reserved for these claims, the ultimate outcome of these matters may exceed the amounts recorded by the Company, and such additional losses may be material to the Company’s Consolidated Financial Statements. Product Warranties In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience. Advertising Costs The Company expenses advertising costs as incurred. Cooperative advertising with customers is recorded in the Consolidated Financial Statements as a reduction of net sales and totaled $120.9 million, $107.6 million and $112.6 million for 2011, 2010 and 2009, respectively. All other advertising costs are recorded in selling, general and administrative expenses and totaled $158.3 million, $152.9 million and $139.8 million in 2011, 2010 and 2009, respectively. Research and Development Costs Research and development costs relating to both future and current products are charged to selling, general and administrative expenses as incurred. These costs totaled $130.1 million, $128.8 million and $118.4 million in 2011, 2010 and 2009, respectively. Derivative Financial Instruments Derivative financial instruments are generally used to manage certain commodity, interest rate and foreign currency risks. These instruments primarily include interest rate swaps, forward exchange contracts and options. The Company’s forward exchange contracts and options do not subject the Company to exchange rate risk because gains and losses on these instruments generally offset gains and losses on the assets, liabilities, and other transactions being hedged. However, these instruments, when settled, impact the Company’s cash flows from operations to the extent the underlying transaction being hedged is not simultaneously settled due to an extension, a renewal or otherwise. On the date when the Company enters into a derivative, the derivative is designated as a hedge of the identified exposure. The Company measures effectiveness of its hedging relationships both at hedge inception and on an ongoing basis. Interest Rate Risk Management Gains and losses on interest rate swaps designated as cash flow hedges, to the extent that the hedge relationship has been effective, are deferred in other comprehensive income (loss) and recognized in interest expense over the period in which the Company recognizes interest expense on the related debt instrument. Any ineffectiveness on these instruments is immediately recognized in interest expense in the period that the ineffectiveness occurs. Interest rate swaps designated as fair value hedges include interest rate swaps on long-term debt and forward exchange contracts. The Company records the fair value of interest rate swaps on long-term debt as an asset or liability with a corresponding adjustment to the carrying value of the debt. Any ineffectiveness on these instruments is immediately recognized in interest expense in the period that the ineffectiveness occurs. See Foreign Currency Management below for discussion of forward exchange contracts. Gains or losses resulting from the early termination of interest rate swaps are deferred as an increase or decrease to the carrying value of the related debt and amortized as an adjustment to the yield of the related debt instrument over the remaining period originally covered by the swap. The cash received or paid relating to the termination of interest rate swaps is included in other as an operating activity in the Consolidated Statements of Cash Flows. Foreign Currency Management The Company utilizes forward exchange contracts and options to manage foreign exchange risk related to both known and anticipated intercompany transactions and third-party commercial transaction exposures of approximately one year in duration or less. For instruments designated as cash flow hedges, the effective portion of the changes in fair value of these instruments is reported in other comprehensive income (loss) and reclassified into earnings in the same period or periods in which the hedged transactions affect earnings. Any ineffective portion is immediately recognized in earnings. For instruments designated as fair value hedges, the changes in fair value are reported in earnings, generally offsetting the change in value of the underlying instrument being hedged. Gains and losses related to qualifying forward exchange contracts, which hedge certain anticipated transactions, are recognized in other comprehensive income (loss) until the underlying transaction occurs. The fair values of foreign currency hedging instruments are recorded within Prepaid expenses and other and Other accrued liabilities in the Consolidated Balance Sheets based on the maturity of the Company’s forward contracts at December 31, 2011 and 2010. The earnings impact of cash flow hedges relating to forecasted purchases of inventory is generally reported in cost of products sold to match the underlying transaction being hedged. For hedged forecasted transactions, hedge accounting is discontinued if the forecasted transaction is no longer probable of occurring, in which case previously deferred hedging gains or losses would be recorded to earnings immediately. Foreign Currency Translation Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at year-end. The related translation adjustments are made directly to accumulated other comprehensive income (loss). Income and expenses are translated at the average monthly rates of exchange in effect during the year. Gains and losses from foreign currency transactions of these subsidiaries are included in net income (loss). International subsidiaries operating in highly inflationary economies remeasure nonmonetary assets at historical rates, while net monetary assets are remeasured at current rates, with the resulting remeasurement adjustment included in net income (loss) as other expense, net. The Company designates certain foreign currency denominated, long-term intercompany financing transactions as being of a long-term investment nature and records gains and losses on the transactions arising from changes in exchange rates as translation adjustments. The Company considers Venezuela a highly inflationary economy. Accounting standards require the functional currency of foreign operations operating in highly inflationary economies to be the same as the reporting currency of the Company. Accordingly, the functional currency of the Company’s Venezuelan operations is the U.S. Dollar. The Company’s Venezuelan operations had $43.2 million of net monetary assets denominated in Bolivar Fuertes as of December 31, 2011, which are subject to changes in value based on changes in the Transaction System for Foreign Currency Denominated Securities (“SITME”) rate. Foreign currency exchange through the SITME is allowed within a specified band of 4.5 to 5.3 Bolivar Fuerte to U.S. Dollar, but most of the exchanges have been executed at the rate of 5.3 Bolivar Fuerte to U.S. Dollar. During 2011 and 2010, the Company’s Venezuelan operations generated less than 1% of consolidated net sales, and during 2009, the Company's Venezuelan operations generated 1.2% of consolidated net sales. Income Taxes The Company accounts for deferred income taxes using the asset and liability approach. Under this approach, deferred income taxes are recognized based on the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by current enacted tax rates. Valuation allowances are recorded to reduce the deferred tax assets to an amount that will more likely than not be realized. No provision is made for the U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries that are considered to be permanently invested. The Company’s income tax provisions are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. Although the Company believes that the positions taken on previously filed tax returns are reasonable, it has established tax and interest reserves in recognition that various taxing authorities may challenge the positions taken, which could result in additional liabilities for taxes and interest. The Company regularly reviews its deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The authoritative guidance requires application of a “more likely than not” threshold to the recognition and derecognition of tax positions. The Company’s ongoing assessments of the more likely than not outcomes of tax authority examinations and related tax positions require significant judgment and can increase or decrease the Company’s effective tax rate, as well as impact operating results. Stock-Based Compensation Stock-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award, which is generally three to five years for stock options and one to three years for restricted stock units and performance-based restricted stock units. The Company estimates future forfeiture rates based on its historical experience. See Footnote 15 for additional information. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB's Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards.” ASU 2011-04 amends Accounting Standards Codification Topic 820, “Fair Value Measurement and Disclosure.” ASU 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 is effective for annual and interim reporting periods beginning on or after December 15, 2011. The new guidance is to be adopted prospectively, and early adoption is not permitted. The Company does not expect the adoption of ASU 2011-04 to have a material effect on its operating results or financial position. In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income,” which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Additionally, ASU 2011-05 eliminates the option to present comprehensive income and its components as part of the statement of stockholders' equity. ASU 2011-05 will be effective for the Company's interim and annual periods beginning after December 15, 2011. The Company does not expect the adoption of ASU 2011-05 to have a material effect on its operating results or financial position. In September 2011, the FASB issued ASU 2011-08, "Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment," which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this is the case, a more detailed two-step goodwill impairment test will need to be performed which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any. ASU 2011-08 will be effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company does not expect the adoption of ASU 2011-08 to have a material impact on the Company's financial statements. Other recently issued ASUs were assessed and determined to be either not applicable or are expected to have a minimal impact on the Company's consolidated financial position and results of operations |
Other Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Other accrued liabilities | $ 693.5 | $ 698.2 |
Customer Accuruals [Member]
|
||
Other accrued liabilities | 250.7 | 280.9 |
Accruals For Manufacturing, Marketing And Freight Expenses [Member]
|
||
Other accrued liabilities | 105.1 | 108.9 |
Accrued Self-Insurance Liabilities [Member]
|
||
Other accrued liabilities | 66.8 | 73.1 |
Accrued Pension, Defined Contribution And Other Postretirement Benefits [Member]
|
||
Other accrued liabilities | 54.6 | 45.3 |
Accrued Contingencies, Primarily Legal, Environmental And Warranty [Member]
|
||
Other accrued liabilities | 37.2 | 39.1 |
Accrued Restructuring [Member]
|
||
Other accrued liabilities | 33.0 | 33.5 |
Other Accrued Liabilities [Member]
|
||
Other accrued liabilities | $ 146.1 | $ 117.4 |