Delaware | 1-9608 | 36-3514169 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Three Glenlake Parkway | ||
Atlanta, Georgia | 30328 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |
99.1 | Press Release, dated July 31, 2015, issued by Newell Rubbermaid Inc., and Additional Financial Information |
NEWELL RUBBERMAID INC. | |||||
Date: July 31, 2015 | By: | /s/ John K. Stipancich | |||
John K. Stipancich | |||||
Executive Vice President, Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release, dated July 31, 2015, issued by Newell Rubbermaid Inc., and Additional Financial Information |
Newell Rubbermaid Raises Full Year Guidance on Strong Second Quarter Results | |||||
» 5.1% Core Sales Growth and Normalized EPS of $0.64 | |||||
» 3.9% Net Sales Growth and Reported EPS of $0.55 | |||||
» Raises Full Year 2015 Core Sales and Normalized EPS Guidance | |||||
First Quarter Executive Summary | |||||
» 5.1 percent core sales growth, excluding a 480 basis point net contribution from acquisitions and planned divestitures and a 600 basis point negative impact from foreign currency; 3.9 percent net sales growth | |||||
» 40.0 percent normalized gross margin, a 10 basis point improvement compared to the prior year; 39.8 percent reported gross margin, a 20 basis point improvement compared to the prior year | |||||
» 150 basis point increase in advertising and promotion while holding normalized operating margin flat at 16.0 percent; 13.8 percent reported operating margin, a 40 basis point decline compared to prior year primarily attributable to increased restructuring and other Project Renewal transformation costs | |||||
» $0.64 normalized EPS compared to $0.59 in the prior year, an 8.5 percent increase despite an $0.11 negative impact from foreign exchange; $0.55 reported EPS compared to $0.54 in the prior year | |||||
» Repurchased 1.3 million shares at a cost of $50.4 million | |||||
» Full year 2015 core sales guidance revised upward to 4 to 5 percent from 3.5 to 4.5 percent; normalized EPS guidance revised upward to $2.14 to $2.20 from $2.10 to $2.18 | |||||
ATLANTA, July 31, 2015 - Newell Rubbermaid (NYSE: NWL) announced its second quarter 2015 financial results today. “We have posted a strong set of second quarter results with core sales growth of 5.1 percent and normalized earnings per share growth of 8.5 percent, despite unprecedented foreign exchange pressure on earnings,” said Michael Polk, President and Chief Executive Officer. “Core sales grew in all five of our segments and in all four geographic regions. Our Win Bigger businesses grew 6.5 percent, led by our global Writing business which grew core sales over ten percent. Momentum continued to build in our Baby & Parenting business, which also had a strong quarter with core growth of 6.0 percent. We are driving accelerated growth and earnings performance as a result of strengthened innovation, increased investment in brands, aggressive cost programs and excellent commercial execution. | |||||
Current Guidance | Previous Guidance | ||
Core sales growth | 4.0% to 5.0% | 3.5% to 4.5% | |
Currency impact | (5.0%) to (6.0%) | (4.5% to 5.5%) | |
Impact of acquisitions, net of planned divestitures | 4.0% to 5.0% | 4.0% to 5.0% | |
Net sales growth | 3.0% to 4.0% | 3.0% to 4.0% | |
Normalized EPS | $2.14 to $2.20 | $2.10 to $2.18 |
Nancy O’Donnell | Nicole Quinlan |
Vice President, Investor Relations | Senior Manager, Global Communications |
(770) 418-7723 | (770) 418-7251 |
Three Months Ended June 30, | |||||||||||
YOY | |||||||||||
2015 | 2014 | % Change | |||||||||
Net sales | $ | 1,560.9 | $ | 1,502.2 | 3.9 | % | |||||
Cost of products sold | 939.9 | 906.6 | |||||||||
GROSS MARGIN | 621.0 | 595.6 | 4.3 | % | |||||||
% of sales | 39.8 | % | 39.6 | % | |||||||
Selling, general & administrative expenses | 393.0 | 370.8 | 6.0 | % | |||||||
% of sales | 25.2 | % | 24.7 | % | |||||||
Restructuring costs | 13.3 | 11.5 | |||||||||
OPERATING INCOME | 214.7 | 213.3 | 0.7 | % | |||||||
% of sales | 13.8 | % | 14.2 | % | |||||||
Nonoperating expenses: | |||||||||||
Interest expense, net | 18.1 | 15.0 | |||||||||
Other expense (income), net | 5.0 | (2.6 | ) | ||||||||
23.1 | 12.4 | 86.3 | % | ||||||||
INCOME BEFORE INCOME TAXES | 191.6 | 200.9 | (4.6 | )% | |||||||
% of sales | 12.3 | % | 13.4 | % | |||||||
Income taxes | 43.5 | 51.9 | (16.2 | )% | |||||||
Effective rate | 22.7 | % | 25.8 | % | |||||||
NET INCOME FROM CONTINUING OPERATIONS | 148.1 | 149.0 | (0.6 | )% | |||||||
% of sales | 9.5 | % | 9.9 | % | |||||||
Income from discontinued operations, net of tax | 0.4 | 1.6 | |||||||||
NET INCOME | $ | 148.5 | $ | 150.6 | (1.4 | )% | |||||
9.5 | % | 10.0 | % | ||||||||
EARNINGS PER SHARE: | |||||||||||
Basic | |||||||||||
Income from continuing operations | $ | 0.55 | $ | 0.54 | |||||||
Income from discontinued operations | $ | — | $ | 0.01 | |||||||
Net income | $ | 0.55 | $ | 0.54 | |||||||
Diluted | |||||||||||
Income from continuing operations | $ | 0.55 | $ | 0.53 | |||||||
Income from discontinued operations | $ | — | $ | 0.01 | |||||||
Net income | $ | 0.55 | $ | 0.54 | |||||||
AVERAGE SHARES OUTSTANDING: | |||||||||||
Basic | 269.7 | 277.4 | |||||||||
Diluted | 271.7 | 279.7 | |||||||||
Six Months Ended June 30, | |||||||||||
YOY | |||||||||||
2015 | 2014 | % Change | |||||||||
Net sales | $ | 2,824.9 | $ | 2,716.5 | 4.0 | % | |||||
Cost of products sold | 1,716.4 | 1,663.9 | |||||||||
GROSS MARGIN | 1,108.5 | 1,052.6 | 5.3 | % | |||||||
% of sales | 39.2 | % | 38.7 | % | |||||||
Selling, general & administrative expenses | 755.0 | 711.1 | 6.2 | % | |||||||
% of sales | 26.7 | % | 26.2 | % | |||||||
Restructuring costs | 40.6 | 23.5 | |||||||||
OPERATING INCOME | 312.9 | 318.0 | (1.6 | )% | |||||||
% of sales | 11.1 | % | 11.7 | % | |||||||
Nonoperating expenses: | |||||||||||
Interest expense, net | 37.3 | 29.4 | |||||||||
Other expense, net | 5.1 | 37.4 | |||||||||
42.4 | 66.8 | (36.5 | )% | ||||||||
INCOME BEFORE INCOME TAXES | 270.5 | 251.2 | 7.7 | % | |||||||
% of sales | 9.6 | % | 9.2 | % | |||||||
Income taxes | 65.5 | 50.4 | 30.0 | % | |||||||
Effective rate | 24.2 | % | 20.1 | % | |||||||
NET INCOME FROM CONTINUING OPERATIONS | 205.0 | 200.8 | 2.1 | % | |||||||
% of sales | 7.3 | % | 7.4 | % | |||||||
(Loss) income from discontinued operations, net of tax | (2.4 | ) | 2.7 | ||||||||
NET INCOME | $ | 202.6 | $ | 203.5 | (0.4 | )% | |||||
7.2 | % | 7.5 | % | ||||||||
EARNINGS PER SHARE: | |||||||||||
Basic | |||||||||||
Income from continuing operations | $ | 0.76 | $ | 0.72 | |||||||
(Loss) income from discontinued operations | $ | (0.01 | ) | $ | 0.01 | ||||||
Net income | $ | 0.75 | $ | 0.73 | |||||||
Diluted | |||||||||||
Income from continuing operations | $ | 0.75 | $ | 0.71 | |||||||
(Loss) income from discontinued operations | $ | (0.01 | ) | $ | 0.01 | ||||||
Net income | $ | 0.74 | $ | 0.72 | |||||||
AVERAGE SHARES OUTSTANDING: | |||||||||||
Basic | 270.1 | 279.1 | |||||||||
Diluted | 272.2 | 281.7 | |||||||||
June 30, | June 30, | |||||||
Assets: | 2015 | 2014 | ||||||
Cash and cash equivalents | $ | 238.7 | $ | 142.7 | ||||
Accounts receivable, net | 1,304.4 | 1,230.4 | ||||||
Inventories, net | 935.6 | 811.8 | ||||||
Deferred income taxes | 129.4 | 135.5 | ||||||
Prepaid expenses and other | 144.9 | 138.2 | ||||||
Total Current Assets | 2,753.0 | 2,458.6 | ||||||
Property, plant and equipment, net | 572.0 | 543.0 | ||||||
Goodwill | 2,491.9 | 2,358.3 | ||||||
Other intangible assets, net | 870.6 | 596.7 | ||||||
Other assets | 271.3 | 261.5 | ||||||
Total Assets | $ | 6,958.8 | $ | 6,218.1 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Accounts payable | $ | 756.7 | $ | 592.9 | ||||
Accrued compensation | 132.3 | 121.8 | ||||||
Other accrued liabilities | 634.9 | 631.0 | ||||||
Short-term debt | 776.6 | 389.4 | ||||||
Current portion of long-term debt | 6.0 | 251.3 | ||||||
Total Current Liabilities | 2,306.5 | 1,986.4 | ||||||
Long-term debt | 2,080.9 | 1,424.2 | ||||||
Deferred income taxes | 235.3 | 159.4 | ||||||
Other noncurrent liabilities | 553.0 | 544.5 | ||||||
Stockholders' Equity - Parent | 1,779.6 | 2,100.1 | ||||||
Stockholders' Equity - Noncontrolling Interests | 3.5 | 3.5 | ||||||
Total Stockholders' Equity | 1,783.1 | 2,103.6 | ||||||
Total Liabilities and Stockholders' Equity | $ | 6,958.8 | $ | 6,218.1 |
Six Months Ended June 30, | ||||||||
2015 | 2014 | |||||||
Operating Activities: | ||||||||
Net income | $ | 202.6 | $ | 203.5 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 85.5 | 75.7 | ||||||
Net gain from sale of discontinued operations, including impairments | — | (4.8 | ) | |||||
Non-cash restructuring costs | (0.5 | ) | 3.7 | |||||
Deferred income taxes | 11.5 | 6.0 | ||||||
Stock-based compensation expense | 14.1 | 14.5 | ||||||
Other, net | 15.4 | 50.8 | ||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | ||||||||
Accounts receivable | (77.4 | ) | (122.4 | ) | ||||
Inventories | (245.9 | ) | (123.2 | ) | ||||
Accounts payable | 91.6 | 33.2 | ||||||
Accrued liabilities and other | (148.7 | ) | (132.9 | ) | ||||
Net cash (used in) provided by operating activities | $ | (51.8 | ) | $ | 4.1 | |||
Investing Activities: | ||||||||
Proceeds from sale of discontinued operations and noncurrent assets | $ | 5.1 | $ | 3.4 | ||||
Capital expenditures | (85.8 | ) | (67.0 | ) | ||||
Acquisitions and acquisition-related activity | (2.0 | ) | — | |||||
Other | 5.7 | (0.3 | ) | |||||
Net cash used in investing activities | $ | (77.0 | ) | $ | (63.9 | ) | ||
Financing Activities: | ||||||||
Net short-term borrowings | $ | 386.0 | $ | 215.4 | ||||
Repurchase and retirement of shares of common stock | (124.0 | ) | (158.7 | ) | ||||
Cash dividends | (104.4 | ) | (89.8 | ) | ||||
Excess tax benefits related to stock-based compensation | 17.5 | 6.8 | ||||||
Other stock-based compensation activity, net | (12.5 | ) | 29.6 | |||||
Net cash provided by financing activities | $ | 162.6 | $ | 3.3 | ||||
Currency rate effect on cash and cash equivalents | $ | 5.5 | $ | (27.1 | ) | |||
Increase (decrease) in cash and cash equivalents | $ | 39.3 | $ | (83.6 | ) | |||
Cash and cash equivalents at beginning of period | 199.4 | 226.3 | ||||||
Cash and cash equivalents at end of period | $ | 238.7 | $ | 142.7 |
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1,2,3,4) | Reconciliation (1,2) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Normalized OI | |||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Q1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Writing | $ | 341.8 | $ | 82.4 | $ | 0.6 | $ | 83.0 | 24.3 | % | $ | 348.2 | $ | 76.1 | $ | — | $ | 76.1 | 21.9 | % | $ | (6.4 | ) | (1.8 | )% | $ | 6.9 | 9.1 | % | |||||||||||||||||||||||
Home Solutions | 364.5 | 38.5 | 0.1 | 38.6 | 10.6 | % | 316.4 | 26.8 | — | 26.8 | 8.5 | % | 48.1 | 15.2 | % | 11.8 | 44.0 | % | ||||||||||||||||||||||||||||||||||
Tools | 180.4 | 22.2 | — | 22.2 | 12.3 | % | 187.8 | 21.4 | — | 21.4 | 11.4 | % | (7.4 | ) | (3.9 | )% | 0.8 | 3.7 | % | |||||||||||||||||||||||||||||||||
Commercial Products | 185.2 | 17.0 | 0.6 | 17.6 | 9.5 | % | 182.6 | 13.8 | — | 13.8 | 7.6 | % | 2.6 | 1.4 | % | 3.8 | 27.5 | % | ||||||||||||||||||||||||||||||||||
Baby & Parenting | 192.1 | 0.5 | 11.8 | 12.3 | 6.4 | % | 179.3 | 5.4 | 11.0 | 16.4 | 9.1 | % | 12.8 | 7.1 | % | (4.1 | ) | (25.0 | )% | |||||||||||||||||||||||||||||||||
Restructuring Costs | — | (27.3 | ) | 27.3 | — | — | (12.0 | ) | 12.0 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (35.1 | ) | 14.0 | (21.1 | ) | — | (26.8 | ) | 7.7 | (19.1 | ) | — | (2.0 | ) | (10.5 | )% | |||||||||||||||||||||||||||||||||||
Total | $ | 1,264.0 | $ | 98.2 | $ | 54.4 | $ | 152.6 | 12.1 | % | $ | 1,214.3 | $ | 104.7 | $ | 30.7 | $ | 135.4 | 11.2 | % | $ | 49.7 | 4.1 | % | $ | 17.2 | 12.7 | % | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1,2,3,4) | Reconciliation (1,2,3) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Normalized OI | |||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Q2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Writing | $ | 495.9 | $ | 132.5 | $ | 0.5 | $ | 133.0 | 26.8 | % | $ | 489.3 | $ | 129.1 | $ | 4.0 | $ | 133.1 | 27.2 | % | $ | 6.6 | 1.3 | % | $ | (0.1 | ) | (0.1 | )% | |||||||||||||||||||||||
Home Solutions | 438.5 | 68.7 | 1.2 | 69.9 | 15.9 | % | 383.4 | 48.7 | — | 48.7 | 12.7 | % | 55.1 | 14.4 | % | 21.2 | 43.5 | % | ||||||||||||||||||||||||||||||||||
Tools | 205.2 | 23.4 | — | 23.4 | 11.4 | % | 222.3 | 29.9 | — | 29.9 | 13.5 | % | (17.1 | ) | (7.7 | )% | (6.5 | ) | (21.7 | )% | ||||||||||||||||||||||||||||||||
Commercial Products | 210.6 | 28.9 | 0.1 | 29.0 | 13.8 | % | 223.5 | 36.2 | — | 36.2 | 16.2 | % | (12.9 | ) | (5.8 | )% | (7.2 | ) | (19.9 | )% | ||||||||||||||||||||||||||||||||
Baby & Parenting | 210.7 | 16.7 | 0.1 | 16.8 | 8.0 | % | 183.7 | 12.2 | 0.4 | 12.6 | 6.9 | % | 27.0 | 14.7 | % | 4.2 | 33.3 | % | ||||||||||||||||||||||||||||||||||
Restructuring Costs | — | (13.3 | ) | 13.3 | — | — | (11.5 | ) | 11.5 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (42.2 | ) | 19.5 | (22.7 | ) | — | (31.3 | ) | 10.5 | (20.8 | ) | — | (1.9 | ) | (9.1 | )% | |||||||||||||||||||||||||||||||||||
Total | $ | 1,560.9 | $ | 214.7 | $ | 34.7 | $ | 249.4 | 16.0 | % | $ | 1,502.2 | $ | 213.3 | $ | 26.4 | $ | 239.7 | 16.0 | % | $ | 58.7 | 3.9 | % | $ | 9.7 | 4.0 | % | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation (1,2,3,4) | Reconciliation (1,2,3) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Reported OI | Excluded Items | Normalized OI | Operating Margin | Net Sales | Normalized OI | |||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||
YTD: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Writing | $ | 837.7 | $ | 214.9 | $ | 1.1 | $ | 216.0 | 25.8 | % | $ | 837.5 | $ | 205.2 | $ | 4.0 | $ | 209.2 | 25.0 | % | $ | 0.2 | — | % | $ | 6.8 | 3.3 | % | ||||||||||||||||||||||||
Home Solutions | 803.0 | 107.2 | 1.3 | 108.5 | 13.5 | % | 699.8 | 75.5 | — | 75.5 | 10.8 | % | 103.2 | 14.7 | % | 33.0 | 43.7 | % | ||||||||||||||||||||||||||||||||||
Tools | 385.6 | 45.6 | — | 45.6 | 11.8 | % | 410.1 | 51.3 | — | 51.3 | 12.5 | % | (24.5 | ) | (6.0 | )% | (5.7 | ) | (11.1 | )% | ||||||||||||||||||||||||||||||||
Commercial Products | 395.8 | 45.9 | 0.7 | 46.6 | 11.8 | % | 406.1 | 50.0 | — | 50.0 | 12.3 | % | (10.3 | ) | (2.5 | )% | (3.4 | ) | (6.8 | )% | ||||||||||||||||||||||||||||||||
Baby & Parenting | 402.8 | 17.2 | 11.9 | 29.1 | 7.2 | % | 363.0 | 17.6 | 11.4 | 29.0 | 8.0 | % | 39.8 | 11.0 | % | 0.1 | 0.3 | % | ||||||||||||||||||||||||||||||||||
Restructuring Costs | — | (40.6 | ) | 40.6 | — | — | (23.5 | ) | 23.5 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Corporate | — | (77.3 | ) | 33.5 | (43.8 | ) | — | (58.1 | ) | 18.2 | (39.9 | ) | — | (3.9 | ) | (9.8 | )% | |||||||||||||||||||||||||||||||||||
Total | $ | 2,824.9 | $ | 312.9 | $ | 89.1 | $ | 402.0 | 14.2 | % | $ | 2,716.5 | $ | 318.0 | $ | 57.1 | $ | 375.1 | 13.8 | % | $ | 108.4 | 4.0 | % | $ | 26.9 | 7.2 | % |
Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Project Renewal Costs (1) | Inventory charge from the | Acquisition | Charge resulting from | Non-GAAP Measure | ||||||||||||||||||||||||||||||||||||||
Advisory | Personnel | Other | Restructuring | devaluation of the Venezuelan | and integration | the devaluation of the Venezuelan | Discontinued operations | Normal- | Percentage | ||||||||||||||||||||||||||||||||||
Reported | Cost | Costs | Costs | Costs | Bolivar (2) | costs (3) | Bolivar (4) | (5) | ized* | of Sales | |||||||||||||||||||||||||||||||||
Cost of products sold | $ | 939.9 | $ | — | $ | (1.6 | ) | $ | (1.3 | ) | $ | — | $ | (0.3 | ) | $ | (0.1 | ) | $ | — | $ | — | $ | 936.6 | 60.0 | % | |||||||||||||||||
Gross margin | $ | 621.0 | $ | — | $ | 1.6 | $ | 1.3 | $ | — | $ | 0.3 | $ | 0.1 | $ | — | $ | — | $ | 624.3 | 40.0 | % | |||||||||||||||||||||
Selling, general & administrative expenses | $ | 393.0 | $ | (11.4 | ) | $ | (4.4 | ) | $ | (1.3 | ) | $ | — | $ | — | $ | (1.0 | ) | $ | — | $ | — | $ | 374.9 | 24.0 | % | |||||||||||||||||
Operating income | $ | 214.7 | $ | 11.4 | $ | 6.0 | $ | 2.6 | $ | 11.5 | $ | 0.3 | $ | 2.9 | $ | — | $ | — | $ | 249.4 | 16.0 | % | |||||||||||||||||||||
Nonoperating expenses | $ | 23.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4.7 | ) | $ | — | $ | 18.4 | ||||||||||||||||||||||
Income before income taxes | $ | 191.6 | $ | 11.4 | $ | 6.0 | $ | 2.6 | $ | 11.5 | $ | 0.3 | $ | 2.9 | $ | 4.7 | $ | — | $ | 231.0 | |||||||||||||||||||||||
Income taxes (6) | $ | 43.5 | $ | 4.3 | $ | 2.3 | $ | 0.9 | $ | 2.8 | $ | 0.1 | $ | 1.1 | $ | 1.5 | $ | — | $ | 56.5 | |||||||||||||||||||||||
Net income from continuing operations | $ | 148.1 | $ | 7.1 | $ | 3.7 | $ | 1.7 | $ | 8.7 | $ | 0.2 | $ | 1.8 | $ | 3.2 | $ | — | $ | 174.5 | |||||||||||||||||||||||
Net income | $ | 148.5 | $ | 7.1 | $ | 3.7 | $ | 1.7 | $ | 8.7 | $ | 0.2 | $ | 1.8 | $ | 3.2 | $ | (0.4 | ) | $ | 174.5 | ||||||||||||||||||||||
Diluted earnings per share** | $ | 0.55 | $ | 0.03 | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | — | $ | 0.01 | $ | 0.01 | $ | — | $ | 0.64 | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Restructuring and | Inventory charge from the | Non-GAAP Measure | ||||||||||||||||||||||||||||||||||||||||
Product recall | restructuring-related | devaluation of the Venezuelan | Discontinued operations | Non-recurring | Percentage | ||||||||||||||||||||||||||||||||||||||
Reported | costs (7) | costs (1) | Bolivar (2) | (5) | tax items (8) | Normalized* | of Sales | ||||||||||||||||||||||||||||||||||||
Cost of products sold | $ | 906.6 | $ | — | $ | (0.2 | ) | $ | (4.0 | ) | $ | — | $ | — | $ | 902.4 | 60.1 | % | |||||||||||||||||||||||||
Gross margin | $ | 595.6 | $ | — | $ | 0.2 | $ | 4.0 | $ | — | $ | — | $ | 599.8 | 39.9 | % | |||||||||||||||||||||||||||
Selling, general & administrative expenses | $ | 370.8 | $ | (0.4 | ) | $ | (10.3 | ) | $ | — | $ | — | $ | — | $ | 360.1 | 24.0 | % | |||||||||||||||||||||||||
Operating income | $ | 213.3 | $ | 0.4 | $ | 22.0 | $ | 4.0 | $ | — | $ | — | $ | 239.7 | 16.0 | % | |||||||||||||||||||||||||||
Income before income taxes | $ | 200.9 | $ | 0.4 | $ | 22.0 | $ | 4.0 | $ | — | $ | — | $ | 227.3 | |||||||||||||||||||||||||||||
Income taxes (6) | $ | 51.9 | $ | 0.2 | $ | 5.0 | $ | 1.4 | $ | — | $ | 3.3 | $ | 61.8 | |||||||||||||||||||||||||||||
Net income from continuing operations | $ | 149.0 | $ | 0.2 | $ | 17.0 | $ | 2.6 | $ | — | $ | (3.3 | ) | $ | 165.5 | ||||||||||||||||||||||||||||
Net income | $ | 150.6 | $ | 0.2 | $ | 17.0 | $ | 2.6 | $ | (1.6 | ) | $ | (3.3 | ) | $ | 165.5 | |||||||||||||||||||||||||||
Diluted earnings per share** | $ | 0.54 | $ | — | $ | 0.06 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.59 |
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Project Renewal Costs (2) | Inventory charge from | Acquisition | Charge resulting | Non-GAAP Measure | ||||||||||||||||||||||||||||||||||||||||||
Product recall | Advisory | Personnel | Other | Restructuring | the devaluation of the | and integration | the devaluation of the | Discontinued | Percentage | ||||||||||||||||||||||||||||||||||||||
Reported | costs (1) | Costs | Costs | Costs | Costs | Venezuelan Bolivar (3) | cost (4) | Venezuelan Bolivar (5) | Operations (6) | Normalized* | of Sales | ||||||||||||||||||||||||||||||||||||
Cost of products sold | $ | 1,716.4 | $ | — | $ | — | $ | (1.8 | ) | $ | (2.3 | ) | $ | — | $ | (0.6 | ) | $ | (1.6 | ) | $ | — | $ | — | $ | 1,710.1 | 60.5 | % | |||||||||||||||||||
Gross margin | $ | 1,108.5 | $ | — | $ | — | $ | 1.8 | $ | 2.3 | $ | — | $ | 0.6 | $ | 1.6 | $ | — | $ | — | $ | 1,114.8 | 39.5 | % | |||||||||||||||||||||||
Selling, general & administrative expenses | $ | 755.0 | $ | (10.2 | ) | $ | (22.0 | ) | $ | (6.7 | ) | $ | (2.1 | ) | $ | — | $ | — | $ | (1.2 | ) | $ | — | $ | — | $ | 712.8 | 25.2 | % | ||||||||||||||||||
Operating income | $ | 312.9 | $ | 10.2 | $ | 22.0 | $ | 8.5 | $ | 4.4 | $ | 38.8 | $ | 0.6 | $ | 4.6 | $ | — | $ | — | $ | 402.0 | 14.2 | % | |||||||||||||||||||||||
Nonoperating expenses | $ | 42.4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4.7 | ) | $ | — | $ | 37.7 | ||||||||||||||||||||||||
Income before income taxes | $ | 270.5 | $ | 10.2 | $ | 22.0 | $ | 8.5 | $ | 4.4 | $ | 38.8 | $ | 0.6 | $ | 4.6 | $ | 4.7 | $ | — | $ | 364.3 | |||||||||||||||||||||||||
Income taxes (7) | $ | 65.5 | $ | 3.3 | $ | 7.7 | $ | 3.1 | $ | 1.5 | $ | 8.3 | $ | 0.2 | $ | 1.7 | $ | 1.5 | $ | — | $ | 92.8 | |||||||||||||||||||||||||
Net income from continuing operations | $ | 205.0 | $ | 6.9 | $ | 14.3 | $ | 5.4 | $ | 2.9 | $ | 30.5 | $ | 0.4 | $ | 2.9 | $ | 3.2 | $ | — | $ | 271.5 | |||||||||||||||||||||||||
Net income | $ | 202.6 | $ | 6.9 | $ | 14.3 | $ | 5.4 | $ | 2.9 | $ | 30.5 | $ | 0.4 | $ | 2.9 | $ | 3.2 | $ | 2.4 | $ | 271.5 | |||||||||||||||||||||||||
Diluted earnings per share** | $ | 0.74 | $ | 0.03 | $ | 0.05 | $ | 0.02 | $ | 0.01 | $ | 0.11 | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 1.00 | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Restructuring | Inventory charge from the | Charge resulting from the | Non-GAAP Measure | |||||||||||||||||||||||||||||||||||||||||||
Product recall | restructuring-related | devaluation of the | devaluation of the | Discontinued | Non-recurring | Percentage | |||||||||||||||||||||||||||||||||||||||||
Reported | costs (1) | costs (2) | Venezuelan Bolivar (3) | Venezuelan Bolivar (5) | Operations (6) | tax items (8) | Normalized | of sales | |||||||||||||||||||||||||||||||||||||||
Cost of products sold | $ | 1,663.9 | $ | (8.6 | ) | $ | (0.2 | ) | $ | (4.0 | ) | $ | — | $ | — | $ | — | $ | 1,651.1 | 60.8 | % | ||||||||||||||||||||||||||
Gross margin | $ | 1,052.6 | $ | 8.6 | $ | 0.2 | $ | 4.0 | $ | — | $ | — | $ | — | $ | 1,065.4 | 39.2 | % | |||||||||||||||||||||||||||||
Selling, general & administrative expenses | $ | 711.1 | $ | (2.8 | ) | $ | (18.0 | ) | $ | — | $ | — | $ | — | $ | — | $ | 690.3 | 25.4 | % | |||||||||||||||||||||||||||
Operating income | $ | 318.0 | $ | 11.4 | $ | 41.7 | $ | 4.0 | $ | — | $ | — | $ | — | $ | 375.1 | 13.8 | % | |||||||||||||||||||||||||||||
Nonoperating expenses | $ | 66.8 | $ | — | $ | — | $ | — | $ | (38.7 | ) | $ | — | $ | — | $ | 28.1 | ||||||||||||||||||||||||||||||
Income before income taxes | $ | 251.2 | $ | 11.4 | $ | 41.7 | $ | 4.0 | $ | 38.7 | $ | — | $ | — | $ | 347.0 | |||||||||||||||||||||||||||||||
Income taxes (7) | $ | 50.4 | $ | 4.2 | $ | 10.5 | $ | 1.4 | $ | 13.9 | $ | — | $ | 3.3 | $ | 83.7 | |||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 200.8 | $ | 7.2 | $ | 31.2 | $ | 2.6 | $ | 24.8 | $ | — | $ | (3.3 | ) | $ | 263.3 | ||||||||||||||||||||||||||||||
Net income | $ | 203.5 | $ | 7.2 | $ | 31.2 | $ | 2.6 | $ | 24.8 | $ | (2.7 | ) | $ | (3.3 | ) | $ | 263.3 | |||||||||||||||||||||||||||||
Diluted earnings per share** | $ | 0.72 | $ | 0.03 | $ | 0.11 | $ | 0.01 | $ | 0.09 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.93 |
By Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales, As Reported | Core Sales (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less | Less | Inc. (Dec.) | Year-Over-Year Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Planned Divest- | Less Acquis- | 2015 Core | Planned Divest- | 2014 | Constant Currency | Excl. Planned Divest. & | Currency | Exclud-ing | Includ-ing | Currency | Acquisit- | Planned Divest- | Core Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | (Decrease) | 2015 | itures (2) | itions | Sales | 2014 | itures (2) | Core Sales | Inc. (Dec.) | Acquisitions | Impact | Currency | Currency | Impact | ions | itures (2) | Growth (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Writing | $ | 495.9 | $ | 489.3 | $ | 6.6 | $ | 540.4 | $ | — | $ | — | $ | 540.4 | $ | 487.6 | $ | — | $ | 487.6 | $ | 52.8 | $ | 52.8 | $ | (46.2 | ) | 10.8 | % | 1.3 | % | (9.5 | )% | — | % | — | % | 10.8 | % | ||||||||||||||||||||||||||||||
Home Solutions | 438.5 | 383.4 | 55.1 | 443.3 | — | 55.4 | 387.9 | 383.2 | — | 383.2 | 60.1 | 4.7 | (5.0 | ) | 15.7 | % | 14.4 | % | (1.3 | )% | 14.5 | % | — | % | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Tools | 205.2 | 222.3 | (17.1 | ) | 222.4 | — | — | 222.4 | 219.5 | — | 219.5 | 2.9 | 2.9 | (20.0 | ) | 1.3 | % | (7.7 | )% | (9.0 | )% | — | % | — | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial Products | 210.6 | 223.5 | (12.9 | ) | 216.5 | 12.9 | — | 203.6 | 222.6 | 22.3 | 200.3 | (6.1 | ) | 3.3 | (6.8 | ) | (2.7 | )% | (5.8 | )% | (3.1 | )% | — | % | (4.3 | )% | 1.6 | % | |||||||||||||||||||||||||||||||||||||||||
Baby & Parenting | 210.7 | 183.7 | 27.0 | 220.0 | — | 26.7 | 193.3 | 182.4 | — | 182.4 | 37.6 | 10.9 | (10.6 | ) | 20.6 | % | 14.7 | % | (5.9 | )% | 14.6 | % | — | % | 6.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Total Company | $ | 1,560.9 | $ | 1,502.2 | $ | 58.7 | $ | 1,642.6 | $ | 12.9 | $ | 82.1 | $ | 1,547.6 | $ | 1,495.3 | $ | 22.3 | $ | 1,473.0 | $ | 147.3 | $ | 74.6 | $ | (88.6 | ) | 9.9 | % | 3.9 | % | (6.0 | )% | 5.6 | % | (0.8 | )% | 5.1 | % | ||||||||||||||||||||||||||||||
Win Bigger Businesses Core Sales Growth (3) | $ | 911.7 | $ | 935.1 | $ | (23.4 | ) | $ | 979.3 | $ | 12.9 | $ | — | $ | 966.4 | $ | 929.7 | $ | 22.3 | $ | 907.4 | $ | 49.6 | $ | 59.0 | $ | (73.0 | ) | 5.3 | % | (2.5 | )% | (7.8 | )% | — | % | (1.2 | )% | 6.5 | % | |||||||||||||||||||||||||||||
By Geography | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,117.5 | $ | 1,036.1 | $ | 81.4 | $ | 1,117.5 | $ | 12.1 | $ | 74.2 | $ | 1,031.2 | $ | 1,036.1 | $ | 21.8 | $ | 1,014.3 | $ | 81.4 | $ | 16.9 | $ | — | 7.9 | % | 7.9 | % | — | % | 7.3 | % | (1.1 | )% | 1.7 | % | |||||||||||||||||||||||||||||||
Canada | 68.4 | 76.9 | (8.5 | ) | 76.8 | 0.8 | 1.1 | 74.9 | 76.6 | 0.5 | 76.1 | 0.2 | (1.2 | ) | (8.7 | ) | 0.3 | % | (11.1 | )% | (11.4 | )% | 1.5 | % | 0.4 | % | (1.6 | )% | |||||||||||||||||||||||||||||||||||||||||
Total North America | 1,185.9 | 1,113.0 | 72.9 | 1,194.3 | 12.9 | 75.3 | 1,106.1 | 1,112.7 | 22.3 | 1,090.4 | 81.6 | 15.7 | (8.7 | ) | 7.3 | % | 6.5 | % | (0.8 | )% | 6.9 | % | (1.0 | )% | 1.4 | % | |||||||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa | 167.0 | 188.4 | (21.4 | ) | 202.0 | — | 6.8 | 195.2 | 183.3 | — | 183.3 | 18.7 | 11.9 | (40.1 | ) | 10.2 | % | (11.4 | )% | (21.6 | )% | 3.7 | % | — | % | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Latin America | 114.6 | 102.8 | 11.8 | 144.0 | — | — | 144.0 | 102.7 | — | 102.7 | 41.3 | 41.3 | (29.5 | ) | 40.2 | % | 11.5 | % | (28.7 | )% | — | % | — | % | 40.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 93.4 | 98.0 | (4.6 | ) | 102.3 | — | — | 102.3 | 96.6 | — | 96.6 | 5.7 | 5.7 | (10.3 | ) | 5.9 | % | (4.7 | )% | (10.6 | )% | — | % | — | % | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Total International | 375.0 | 389.2 | (14.2 | ) | 448.3 | — | 6.8 | 441.5 | 382.6 | — | 382.6 | 65.7 | 58.9 | (79.9 | ) | 17.2 | % | (3.6 | )% | (20.8 | )% | 1.8 | % | — | % | 15.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Total Company | $ | 1,560.9 | $ | 1,502.2 | $ | 58.7 | $ | 1,642.6 | $ | 12.9 | $ | 82.1 | $ | 1,547.6 | $ | 1,495.3 | $ | 22.3 | $ | 1,473.0 | $ | 147.3 | $ | 74.6 | $ | (88.6 | ) | 9.9 | % | 3.9 | % | (6.0 | )% | 5.6 | % | (0.8 | )% | 5.1 | % | ||||||||||||||||||||||||||||||
By Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales, As Reported | Core Sales (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less | Less | Inc. (Dec.) | Year-Over-Year Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Planned Divest- | Less Acquis- | 2015 Core | Planned Divest- | 2014 | Constant Currency | Excl. Planned Divest. & | Currency | Exclud-ing | Including | Currency | Acquisit- | Planned Divest- | Core Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | (Decrease) | 2015 | itures (2) | itions | Sales | 2014 | itures (2) | Core Sales | Inc. (Dec.) | Acquisitions | Impact | Currency | Currency | Impact | ions | itures (2) | Growth (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Writing | $ | 837.7 | $ | 837.5 | $ | 0.2 | $ | 909.8 | $ | — | $ | — | $ | 909.8 | $ | 826.6 | $ | — | $ | 826.6 | $ | 83.2 | $ | 83.2 | $ | (83.0 | ) | 10.1 | % | — | % | (10.1 | )% | — | % | — | % | 10.1 | % | ||||||||||||||||||||||||||||||
Home Solutions | 803.0 | 699.8 | 103.2 | 810.9 | — | 103.8 | 707.1 | 699.5 | — | 699.5 | 111.4 | 7.6 | (8.2 | ) | 15.9 | % | 14.7 | % | (1.2 | )% | 14.8 | % | — | % | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||||
Tools | 385.6 | 410.1 | (24.5 | ) | 415.2 | — | — | 415.2 | 406.3 | — | 406.3 | 8.9 | 8.9 | (33.4 | ) | 2.2 | % | (6.0 | )% | (8.2 | )% | — | % | — | % | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial Products | 395.8 | 406.1 | (10.3 | ) | 406.0 | 22.7 | — | 383.3 | 404.1 | 38.9 | 365.2 | 1.9 | 18.1 | (12.2 | ) | 0.5 | % | (2.5 | )% | (3.0 | )% | — | % | (4.5 | )% | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Baby & Parenting | 402.8 | 363.0 | 39.8 | 417.5 | — | 44.9 | 372.6 | 360.3 | — | 360.3 | 57.2 | 12.3 | (17.4 | ) | 15.9 | % | 11.0 | % | (4.9 | )% | 12.5 | % | — | % | 3.4 | % | |||||||||||||||||||||||||||||||||||||||||||
Total Company | $ | 2,824.9 | $ | 2,716.5 | $ | 108.4 | $ | 2,959.4 | $ | 22.7 | $ | 148.7 | $ | 2,788.0 | $ | 2,696.8 | $ | 38.9 | $ | 2,657.9 | $ | 262.6 | $ | 130.1 | $ | (154.2 | ) | 9.7 | % | 4.0 | % | (5.7 | )% | 5.6 | % | (0.8 | )% | 4.9 | % | ||||||||||||||||||||||||||||||
Win Bigger Businesses Core Sales Growth (3) | $ | 1,619.1 | $ | 1,653.7 | $ | (34.6 | ) | $ | 1,731.0 | $ | 22.7 | $ | — | $ | 1,708.3 | $ | 1,637.0 | $ | 38.9 | $ | 1,598.1 | $ | 94.0 | $ | 110.2 | $ | (128.6 | ) | 5.7 | % | (2.1 | )% | (7.8 | )% | — | % | (1.2 | )% | 6.9 | % | |||||||||||||||||||||||||||||
By Geography | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 2,034.7 | $ | 1,849.8 | $ | 184.9 | $ | 2,034.7 | $ | 21.5 | $ | 140.8 | $ | 1,872.4 | $ | 1,849.8 | $ | 37.5 | $ | 1,812.3 | $ | 184.9 | $ | 60.1 | $ | — | 10.0 | % | 10.0 | % | — | % | 7.8 | % | (1.1 | )% | 3.3 | % | |||||||||||||||||||||||||||||||
Canada | 114.6 | 129.9 | (15.3 | ) | 128.4 | 1.2 | 1.1 | 126.1 | 129.4 | 1.4 | 128.0 | (1.0 | ) | (1.9 | ) | (14.3 | ) | (0.8 | )% | (11.8 | )% | (11.0 | )% | 0.9 | % | (0.2 | )% | (1.5 | )% | ||||||||||||||||||||||||||||||||||||||||
Total North America | 2,149.3 | 1,979.7 | 169.6 | 2,163.1 | 22.7 | 141.9 | 1,998.5 | 1,979.2 | 38.9 | 1,940.3 | 183.9 | 58.2 | (14.3 | ) | 9.3 | % | 8.6 | % | (0.7 | )% | 7.3 | % | (1.0 | )% | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa | 294.6 | 352.2 | (57.6 | ) | 352.5 | — | 6.8 | 345.7 | 342.1 | — | 342.1 | 10.4 | 3.6 | (68.0 | ) | 3.0 | % | (16.4 | )% | (19.4 | )% | 1.9 | % | — | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Latin America | 204.0 | 194.8 | 9.2 | 250.8 | — | — | 250.8 | 187.8 | — | 187.8 | 63.0 | 63.0 | (53.8 | ) | 33.5 | % | 4.7 | % | (28.8 | )% | — | % | — | % | 33.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 177.0 | 189.8 | (12.8 | ) | 193.0 | — | — | 193.0 | 187.7 | — | 187.7 | 5.3 | 5.3 | (18.1 | ) | 2.8 | % | (6.7 | )% | (9.5 | )% | — | % | — | % | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||
Total International | 675.6 | 736.8 | (61.2 | ) | 796.3 | — | 6.8 | 789.5 | 717.6 | — | 717.6 | 78.7 | 71.9 | (139.9 | ) | 11.0 | % | (8.3 | )% | (19.3 | )% | 1.0 | % | — | % | 10.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Total Company | $ | 2,824.9 | $ | 2,716.5 | $ | 108.4 | $ | 2,959.4 | $ | 22.7 | $ | 148.7 | $ | 2,788.0 | $ | 2,696.8 | $ | 38.9 | $ | 2,657.9 | $ | 262.6 | $ | 130.1 | $ | (154.2 | ) | 9.7 | % | 4.0 | % | (5.7 | )% | 5.6 | % | (0.8 | )% | 4.9 | % | ||||||||||||||||||||||||||||||
Year Ending | ||
December 31, 2015 | ||
Diluted earnings per share | $1.69 to $1.75 | |
Graco product recall | $0.03 | |
Restructuring and other Project Renewal costs | $0.35 to $0.45 | |
Acquisition and integration costs | $0.01 | |
Devaluation of the Venezuelan Bolivar | $0.01 | |
Discontinued operations | $(0.01) to $0.01 | |
Normalized earnings per share | $2.14 to $2.20 |
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