|
DELAWARE
|
36-3514169
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
R
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Net sales
|
$
|
1,240.8
|
|
|
$
|
1,250.5
|
|
Cost of products sold
|
767.2
|
|
|
762.5
|
|
||
GROSS MARGIN
|
473.6
|
|
|
488.0
|
|
||
Selling, general and administrative expenses
|
341.4
|
|
|
352.7
|
|
||
Restructuring costs
|
34.4
|
|
|
12.1
|
|
||
OPERATING INCOME
|
97.8
|
|
|
123.2
|
|
||
Nonoperating expenses:
|
|
|
|
||||
Interest expense, net
|
14.6
|
|
|
20.2
|
|
||
Other expense (income), net
|
13.0
|
|
|
(0.3
|
)
|
||
Net nonoperating expenses
|
27.6
|
|
|
19.9
|
|
||
INCOME BEFORE INCOME TAXES
|
70.2
|
|
|
103.3
|
|
||
Income tax expense
|
6.4
|
|
|
25.0
|
|
||
INCOME FROM CONTINUING OPERATIONS
|
63.8
|
|
|
78.3
|
|
||
(Loss) income from discontinued operations, net of tax
|
(9.6
|
)
|
|
1.0
|
|
||
NET INCOME
|
$
|
54.2
|
|
|
$
|
79.3
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic
|
290.0
|
|
|
292.1
|
|
||
Diluted
|
293.1
|
|
|
294.7
|
|
||
Earnings per share:
|
|
|
|
||||
Basic:
|
|
|
|
||||
Income from continuing operations
|
$
|
0.22
|
|
|
$
|
0.27
|
|
(Loss) income from discontinued operations
|
(0.03
|
)
|
|
—
|
|
||
Net income
|
$
|
0.19
|
|
|
$
|
0.27
|
|
Diluted:
|
|
|
|
||||
Income from continuing operations
|
$
|
0.22
|
|
|
$
|
0.27
|
|
(Loss) income from discontinued operations
|
(0.03
|
)
|
|
—
|
|
||
Net income
|
$
|
0.19
|
|
|
$
|
0.27
|
|
Dividends per share
|
$
|
0.15
|
|
|
$
|
0.08
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
NET INCOME
|
$
|
54.2
|
|
|
$
|
79.3
|
|
|
|
|
|
||||
Other comprehensive (loss) income, net of tax:
|
|
|
|
||||
Foreign currency translation adjustments
|
(35.3
|
)
|
|
45.5
|
|
||
Change in unrecognized pension and other postretirement costs
(1)
|
12.6
|
|
|
1.6
|
|
||
Derivative hedging gain (loss)
(2)
|
0.7
|
|
|
(1.4
|
)
|
||
Total other comprehensive (loss) income, net of tax
|
(22.0
|
)
|
|
45.7
|
|
||
|
|
|
|
||||
COMPREHENSIVE INCOME
|
$
|
32.2
|
|
|
$
|
125.0
|
|
|
March 31,
2013 |
|
December 31,
2012 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
174.2
|
|
|
$
|
183.8
|
|
Accounts receivable, net
|
1,021.3
|
|
|
1,112.4
|
|
||
Inventories, net
|
815.0
|
|
|
696.4
|
|
||
Deferred income taxes
|
155.4
|
|
|
135.8
|
|
||
Prepaid expenses and other
|
190.7
|
|
|
142.7
|
|
||
TOTAL CURRENT ASSETS
|
2,356.6
|
|
|
2,271.1
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
549.5
|
|
|
560.2
|
|
||
GOODWILL
|
2,340.4
|
|
|
2,370.2
|
|
||
OTHER INTANGIBLE ASSETS, NET
|
642.6
|
|
|
654.1
|
|
||
OTHER ASSETS
|
308.1
|
|
|
366.4
|
|
||
TOTAL ASSETS
|
$
|
6,197.2
|
|
|
$
|
6,222.0
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Accounts payable
|
$
|
570.1
|
|
|
$
|
527.4
|
|
Accrued compensation
|
103.0
|
|
|
173.5
|
|
||
Other accrued liabilities
|
588.5
|
|
|
658.0
|
|
||
Short-term debt
|
411.8
|
|
|
210.7
|
|
||
Current portion of long-term debt
|
1.2
|
|
|
1.2
|
|
||
TOTAL CURRENT LIABILITIES
|
1,674.6
|
|
|
1,570.8
|
|
||
LONG-TERM DEBT
|
1,699.6
|
|
|
1,706.5
|
|
||
OTHER NONCURRENT LIABILITIES
|
834.4
|
|
|
944.5
|
|
||
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
|
307.0
|
|
|
304.7
|
|
||
Outstanding shares, before treasury:
|
|
|
|
||||
2013 – 307.0
|
|
|
|
||||
2012 – 304.7
|
|
|
|
||||
Treasury stock, at cost:
|
(463.9
|
)
|
|
(448.0
|
)
|
||
Shares held:
|
|
|
|
||||
2013 – 18.5
|
|
|
|
||||
2012 – 17.8
|
|
|
|
||||
Additional paid-in capital
|
677.1
|
|
|
634.1
|
|
||
Retained earnings
|
2,275.9
|
|
|
2,294.9
|
|
||
Accumulated other comprehensive loss
|
(811.0
|
)
|
|
(789.0
|
)
|
||
STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO PARENT
|
1,985.1
|
|
|
1,996.7
|
|
||
STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
3.5
|
|
|
3.5
|
|
||
TOTAL STOCKHOLDERS’ EQUITY
|
1,988.6
|
|
|
2,000.2
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
6,197.2
|
|
|
$
|
6,222.0
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
54.2
|
|
|
$
|
79.3
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
39.8
|
|
|
39.4
|
|
||
Impairments related to discontinued operations
|
12.4
|
|
|
—
|
|
||
Deferred income taxes
|
38.9
|
|
|
19.6
|
|
||
Stock-based compensation expense
|
9.4
|
|
|
9.4
|
|
||
Other, net
|
8.9
|
|
|
0.9
|
|
||
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:
|
|
|
|
||||
Accounts receivable
|
80.3
|
|
|
71.8
|
|
||
Inventories
|
(123.4
|
)
|
|
(148.5
|
)
|
||
Accounts payable
|
45.1
|
|
|
54.0
|
|
||
Accrued liabilities and other
|
(288.7
|
)
|
|
(173.3
|
)
|
||
NET CASH USED IN OPERATING ACTIVITIES
|
(123.1
|
)
|
|
(47.4
|
)
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Acquisitions and acquisition-related activity
|
—
|
|
|
(3.7
|
)
|
||
Capital expenditures
|
(33.6
|
)
|
|
(48.3
|
)
|
||
Proceeds from sales of businesses and other noncurrent assets
|
—
|
|
|
10.0
|
|
||
Other
|
(0.3
|
)
|
|
—
|
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
(33.9
|
)
|
|
(42.0
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Short-term borrowings, net
|
200.7
|
|
|
392.7
|
|
||
Payments on debt
|
—
|
|
|
(250.3
|
)
|
||
Repurchase and retirement of shares of common stock
|
(33.8
|
)
|
|
(16.4
|
)
|
||
Cash dividends
|
(44.5
|
)
|
|
(24.2
|
)
|
||
Excess tax benefits related to stock-based compensation
|
9.1
|
|
|
10.6
|
|
||
Other stock-based compensation activity, net
|
16.6
|
|
|
(6.5
|
)
|
||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
148.1
|
|
|
105.9
|
|
||
Currency rate effect on cash and cash equivalents
|
(0.7
|
)
|
|
3.4
|
|
||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(9.6
|
)
|
|
19.9
|
|
||
Cash and cash equivalents at beginning of period
|
183.8
|
|
|
170.2
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
174.2
|
|
|
$
|
190.1
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Net sales
|
$
|
69.2
|
|
|
$
|
81.9
|
|
(Loss) income from discontinued operations, before income taxes
(1)
|
$
|
(11.7
|
)
|
|
$
|
1.0
|
|
Income tax benefit
|
(2.1
|
)
|
|
—
|
|
||
(Loss) income from discontinued operations, net of tax
|
$
|
(9.6
|
)
|
|
$
|
1.0
|
|
|
Foreign Currency Translation Loss
(1)
|
|
Unrecognized
Pension & Other
Postretirement
Costs, Net of Tax
|
|
Derivative Hedging Loss, Net of Tax
|
|
Accumulated Other
Comprehensive Loss
|
||||||||
Balance at December 31, 2012
|
$
|
(166.5
|
)
|
|
$
|
(621.1
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(789.0
|
)
|
Other comprehensive (loss) income before reclassifications
|
(35.3
|
)
|
|
7.1
|
|
|
0.9
|
|
|
(27.3
|
)
|
||||
Amounts reclassified to earnings
|
—
|
|
|
5.5
|
|
|
(0.2
|
)
|
|
5.3
|
|
||||
Net current period other comprehensive (loss) income
|
(35.3
|
)
|
|
12.6
|
|
|
0.7
|
|
|
(22.0
|
)
|
||||
Balance at March 31, 2013
|
$
|
(201.8
|
)
|
|
$
|
(608.5
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
(811.0
|
)
|
|
|
Amount Reclassified to Earnings as Expense (Benefit)
|
|
Affected Line Item in the Condensed Consolidated Statements of Operations
|
||
Unrecognized pension and other postretirement costs:
|
|
|
|
|
||
Prior service benefit
|
|
$
|
(0.2
|
)
|
|
(2)
|
Actuarial loss
|
|
8.4
|
|
|
(2)
|
|
Total before tax
|
|
8.2
|
|
|
|
|
Tax effect
|
|
(2.7
|
)
|
|
|
|
Net of tax
|
|
$
|
5.5
|
|
|
|
Derivatives:
|
|
|
|
|
||
Foreign exchange contracts on inventory-related purchases
|
|
$
|
(0.5
|
)
|
|
Cost of products sold
|
Forward interest rate swaps
|
|
0.2
|
|
|
Interest expense, net
|
|
Total before tax
|
|
(0.3
|
)
|
|
|
|
Tax effect
|
|
0.1
|
|
|
|
|
Net of tax
|
|
$
|
(0.2
|
)
|
|
|
|
Three Months Ended
|
|
Since Inception Through
|
||||||||
|
March 31, 2013
(1)
|
|
March 31, 2012
(1)
|
|
March 31, 2013
(1)
|
||||||
Facility and other exit costs, including impairments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7.0
|
|
Employee severance, termination benefits and relocation costs
|
30.6
|
|
|
7.0
|
|
|
73.5
|
|
|||
Exited contractual commitments and other
|
8.2
|
|
|
3.7
|
|
|
21.5
|
|
|||
|
$
|
38.8
|
|
|
$
|
10.7
|
|
|
$
|
102.0
|
|
|
|
December 31, 2012
|
|
|
|
|
|
March 31, 2013
|
||||||||
|
|
Balance
|
|
Provision
|
|
Costs Incurred
|
|
Balance
|
||||||||
Employee severance, termination benefits and relocation costs
|
|
$
|
19.0
|
|
|
$
|
30.6
|
|
|
$
|
(10.4
|
)
|
|
$
|
39.2
|
|
Exited contractual commitments and other
|
|
4.3
|
|
|
8.2
|
|
|
(2.5
|
)
|
|
10.0
|
|
||||
|
|
$
|
23.3
|
|
|
$
|
38.8
|
|
|
$
|
(12.9
|
)
|
|
$
|
49.2
|
|
|
|
December 31, 2012
|
|
|
|
|
|
March 31, 2013
|
||||||||
Segment
|
|
Balance
|
|
Provision
|
|
Costs Incurred
|
|
Balance
|
||||||||
Writing
|
|
$
|
3.4
|
|
|
$
|
2.6
|
|
|
$
|
(2.5
|
)
|
|
$
|
3.5
|
|
Home Solutions
|
|
8.5
|
|
|
2.4
|
|
|
(2.0
|
)
|
|
8.9
|
|
||||
Tools
|
|
0.2
|
|
|
1.4
|
|
|
(0.5
|
)
|
|
1.1
|
|
||||
Commercial Products
|
|
1.4
|
|
|
1.0
|
|
|
(0.6
|
)
|
|
1.8
|
|
||||
Baby & Parenting
|
|
0.9
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.9
|
|
||||
Corporate
|
|
8.9
|
|
|
31.1
|
|
|
(7.0
|
)
|
|
33.0
|
|
||||
|
|
$
|
23.3
|
|
|
$
|
38.8
|
|
|
$
|
(12.9
|
)
|
|
$
|
49.2
|
|
|
December 31, 2012
|
|
Provision
|
|
|
|
March 31, 2013
|
||||||||
|
Balance
|
|
(Adjustment)
|
|
Costs Incurred
|
|
Balance
|
||||||||
Employee severance, termination benefits and relocation costs
|
$
|
10.9
|
|
|
$
|
(3.4
|
)
|
|
$
|
(3.2
|
)
|
|
$
|
4.3
|
|
Exited contractual commitments and other
|
2.0
|
|
|
—
|
|
|
(0.8
|
)
|
|
1.2
|
|
||||
|
$
|
12.9
|
|
|
$
|
(3.4
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
5.5
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
Segment
|
|
2013
|
|
2012
|
||||
Writing
|
|
$
|
2.6
|
|
|
$
|
0.7
|
|
Home Solutions
|
|
2.4
|
|
|
8.1
|
|
||
Tools
|
|
1.4
|
|
|
—
|
|
||
Commercial Products
|
|
1.0
|
|
|
1.5
|
|
||
Baby & Parenting
|
|
0.3
|
|
|
0.2
|
|
||
Corporate
(2)
|
|
26.7
|
|
|
1.6
|
|
||
|
|
$
|
34.4
|
|
|
$
|
12.1
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||
Materials and supplies
|
$
|
142.9
|
|
|
$
|
126.6
|
|
Work in process
|
142.7
|
|
|
109.3
|
|
||
Finished products
|
529.4
|
|
|
460.5
|
|
||
|
$
|
815.0
|
|
|
$
|
696.4
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||
Medium-term notes
|
$
|
1,697.3
|
|
|
$
|
1,703.9
|
|
Commercial paper
|
202.0
|
|
|
—
|
|
||
Receivables facility
|
200.0
|
|
|
200.0
|
|
||
Other debt
|
13.3
|
|
|
14.5
|
|
||
Total debt
|
2,112.6
|
|
|
1,918.4
|
|
||
Short-term debt
|
(411.8
|
)
|
|
(210.7
|
)
|
||
Current portion of long-term debt
|
(1.2
|
)
|
|
(1.2
|
)
|
||
Long-term debt
|
$
|
1,699.6
|
|
|
$
|
1,706.5
|
|
|
|
|
|
Assets
|
|
|
|
Liabilities
|
||||||||||||
Derivatives designated as hedging instruments
|
|
Balance Sheet Location
|
|
March 31, 2013
|
|
December 31, 2012
|
|
Balance Sheet Location
|
|
March 31, 2013
|
|
December 31, 2012
|
||||||||
Interest rate swaps
|
|
Other assets
|
|
$
|
35.9
|
|
|
$
|
38.9
|
|
|
Other noncurrent liabilities
|
|
$
|
10.8
|
|
|
$
|
7.2
|
|
Foreign exchange contracts on inventory-related purchases
|
|
Prepaid expenses and other
|
|
1.0
|
|
|
0.5
|
|
|
Other accrued liabilities
|
|
—
|
|
|
0.2
|
|
||||
Foreign exchange contracts on intercompany borrowings
|
|
Prepaid expenses and other
|
|
0.3
|
|
|
—
|
|
|
Other accrued liabilities
|
|
—
|
|
|
1.1
|
|
||||
Total assets
|
|
|
|
$
|
37.2
|
|
|
$
|
39.4
|
|
|
Total liabilities
|
|
$
|
10.8
|
|
|
$
|
8.5
|
|
Derivatives in fair value hedging relationships
|
|
Location of gain (loss)
recognized in income
|
|
Amount of gain (loss) recognized in income
|
||||||
Three Months Ended
|
||||||||||
March 31,
|
||||||||||
2013
|
|
2012
|
||||||||
Interest rate swaps
|
|
Interest expense, net
|
|
$
|
(6.6
|
)
|
|
$
|
(2.5
|
)
|
Fixed-rate debt
|
|
Interest expense, net
|
|
$
|
6.6
|
|
|
$
|
2.5
|
|
Derivatives in cash flow hedging relationships
|
|
Location of gain (loss)
recognized in income
|
|
Amount of gain (loss) reclassified from AOCI into income
|
||||||
Three Months Ended
|
||||||||||
March 31,
|
||||||||||
2013
|
|
2012
|
||||||||
Foreign exchange contracts on inventory-related purchases
|
|
Cost of products sold
|
|
$
|
0.5
|
|
|
$
|
0.2
|
|
Foreign exchange contracts on intercompany borrowings
|
|
Interest expense, net
|
|
—
|
|
|
(0.1
|
)
|
||
Forward interest rate swaps
|
|
Interest expense, net
|
|
(0.2
|
)
|
|
—
|
|
||
|
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
Derivatives in cash flow hedging relationships
|
|
Amount of gain (loss) recognized in AOCI
|
||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
|
2012
|
||||||
Foreign exchange contracts on inventory-related purchases
|
|
$
|
1.2
|
|
|
$
|
(1.7
|
)
|
Foreign exchange contracts on intercompany borrowings
|
|
2.4
|
|
|
(1.3
|
)
|
||
|
|
$
|
3.6
|
|
|
$
|
(3.0
|
)
|
|
U.S.
|
|
International
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Service cost-benefits earned during the period
|
$
|
0.7
|
|
|
$
|
0.8
|
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
Interest cost on projected benefit obligation
|
10.0
|
|
|
11.5
|
|
|
6.0
|
|
|
6.2
|
|
||||
Expected return on plan assets
|
(14.7
|
)
|
|
(14.9
|
)
|
|
(5.8
|
)
|
|
(6.2
|
)
|
||||
Amortization of prior service cost, actuarial loss and other
|
7.8
|
|
|
5.6
|
|
|
0.8
|
|
|
0.5
|
|
||||
Net periodic pension costs
|
$
|
3.8
|
|
|
$
|
3.0
|
|
|
$
|
2.9
|
|
|
$
|
2.1
|
|
|
2013
|
|
2012
|
||||
Service cost-benefits earned during the period
|
$
|
0.3
|
|
|
$
|
0.3
|
|
Interest cost on projected benefit obligation
|
1.4
|
|
|
1.8
|
|
||
Amortization of prior service benefit and actuarial loss, net
|
(0.4
|
)
|
|
(0.3
|
)
|
||
Net other postretirement benefit costs
|
$
|
1.3
|
|
|
$
|
1.8
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Numerator for basic and diluted earnings per share:
|
|
|
|
||||
Income from continuing operations
|
$
|
63.8
|
|
|
$
|
78.3
|
|
(Loss) income from discontinued operations
|
(9.6
|
)
|
|
1.0
|
|
||
Net income
|
$
|
54.2
|
|
|
$
|
79.3
|
|
Dividends and equivalents for share-based awards expected to be forfeited
|
—
|
|
|
—
|
|
||
Net income for basic earnings per share
|
$
|
54.2
|
|
|
$
|
79.3
|
|
Effect of Preferred Securities
(1)
|
—
|
|
|
—
|
|
||
Net income for diluted earnings per share
|
$
|
54.2
|
|
|
$
|
79.3
|
|
Denominator for basic and diluted earnings per share:
|
|
|
|
||||
Weighted-average shares outstanding
|
287.4
|
|
|
289.3
|
|
||
Share-based payment awards classified as participating securities
|
2.6
|
|
|
2.8
|
|
||
Denominator for basic earnings per share
|
290.0
|
|
|
292.1
|
|
||
Dilutive securities
(2)
|
3.1
|
|
|
2.6
|
|
||
Preferred Securities
(1)
|
—
|
|
|
—
|
|
||
Denominator for diluted earnings per share
|
293.1
|
|
|
294.7
|
|
||
Basic earnings per share:
|
|
|
|
||||
Income from continuing operations
|
$
|
0.22
|
|
|
$
|
0.27
|
|
(Loss) income from discontinued operations
|
(0.03
|
)
|
|
—
|
|
||
Net income
|
$
|
0.19
|
|
|
$
|
0.27
|
|
Diluted earnings per share:
|
|
|
|
||||
Income from continuing operations
|
$
|
0.22
|
|
|
$
|
0.27
|
|
(Loss) income from discontinued operations
|
(0.03
|
)
|
|
—
|
|
||
Net income
|
$
|
0.19
|
|
|
$
|
0.27
|
|
(1)
|
The Preferred Securities were anti-dilutive during 2012 through their redemption on July 16, 2012, 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 the three months ended March 31, 2012 would be increased by
$3.5 million
and weighted-average shares outstanding would be increased by
8.3 million
shares for the three months ended March 31, 2012.
|
(2)
|
Dilutive securities include “in the money” options, non-participating restricted stock units and performance stock units. The weighted-average shares outstanding exclude the effect of
3.5 million
and
10.5 million
stock options for the three months ended March 31, 2013 and 2012, respectively, because such securities were anti-dilutive. The weighted-average shares outstanding for the three months ended March 31, 2013 and 2012 also exclude the weighted average effect of
0.9 million
and
1.0 million
performance stock units outstanding at March 31, 2013 and 2012, respectively, because the securities were anti-dilutive.
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|
Exercisable
at Period
End
|
|
Aggregate
Intrinsic
Value
Exercisable
|
||||||
Outstanding at December 31, 2012
|
11.1
|
|
|
$
|
22
|
|
|
9.0
|
|
|
$
|
27.8
|
|
Exercised
|
(1.8
|
)
|
|
19
|
|
|
|
|
|
||||
Forfeited / expired
|
(0.2
|
)
|
|
28
|
|
|
|
|
|
||||
Outstanding at March 31, 2013
|
9.1
|
|
|
$
|
23
|
|
|
8.2
|
|
|
$
|
35.3
|
|
|
Shares
|
|
Weighted-
Average Grant
Date Fair Value
|
|||
Outstanding at December 31, 2012
|
5.5
|
|
|
$
|
17
|
|
Granted
|
1.9
|
|
|
25
|
|
|
Vested
|
(1.5
|
)
|
|
14
|
|
|
Forfeited
|
(0.2
|
)
|
|
21
|
|
|
Outstanding at March 31, 2013
|
5.7
|
|
|
$
|
20
|
|
Fair Value as of March 31, 2013
|
Total
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investment securities, including mutual funds
(1)
|
$
|
8.9
|
|
|
$
|
8.4
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
Interest rate swaps
|
35.9
|
|
|
—
|
|
|
35.9
|
|
|
—
|
|
||||
Foreign currency derivatives
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
Total
|
$
|
46.1
|
|
|
$
|
8.4
|
|
|
$
|
37.7
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
10.8
|
|
|
$
|
—
|
|
|
$
|
10.8
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Fair Value as of December 31, 2012
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investment securities, including mutual funds
(1)
|
$
|
11.5
|
|
|
$
|
8.2
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
Interest rate swaps
|
38.9
|
|
|
—
|
|
|
38.9
|
|
|
—
|
|
||||
Foreign currency derivatives
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Total
|
$
|
50.9
|
|
|
$
|
8.2
|
|
|
$
|
42.7
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
7.2
|
|
|
$
|
—
|
|
|
$
|
7.2
|
|
|
$
|
—
|
|
Foreign currency derivatives
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
Total
|
$
|
8.5
|
|
|
$
|
—
|
|
|
$
|
8.5
|
|
|
$
|
—
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
||||||||
Medium-term notes
|
$
|
1,795.3
|
|
|
$
|
1,697.3
|
|
|
$
|
1,803.6
|
|
|
$
|
1,703.9
|
|
Segment
|
|
Key Brands
|
|
Description of Primary Products
|
Writing
|
|
Sharpie
®
, Paper Mate
®
, Expo
®
, Parker
®
, Waterman
®
, Dymo
®
Office, Endicia
®
|
|
Writing instruments, including markers and highlighters, pens and pencils; art products; fine writing instruments; office technology solutions, including labeling and on-line postage solutions
|
Home Solutions
|
|
Rubbermaid
®
, Calphalon
®
, Levolor
®
, Goody
®
|
|
Indoor/outdoor organization, food storage and home storage products; gourmet cookware, bakeware, cutlery and small kitchen electrics; window treatments; hair care accessories
|
Tools
|
|
Irwin
®
, Lenox
®
, Dymo
®
Industrial, Hilmor
™
|
|
Hand tools and power tool accessories; industrial bandsaw blades; cutting tools for pipes and HVAC systems; label makers and printers for industrial use
|
Commercial Products
|
|
Rubbermaid Commercial Products
®
, Rubbermaid
®
Healthcare
|
|
Cleaning and refuse products, hygiene systems, material handling solutions; medical and computer carts and wall-mounted workstations
|
Baby & Parenting
|
|
Graco
®
, Aprica
®
, Teutonia
®
|
|
Infant and juvenile products such as car seats, strollers, highchairs and playards
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Net Sales
(1)
|
|
|
|
||||
Writing
|
$
|
340.6
|
|
|
$
|
375.6
|
|
Home Solutions
|
338.9
|
|
|
326.7
|
|
||
Tools
|
188.6
|
|
|
190.6
|
|
||
Commercial Products
|
183.1
|
|
|
175.4
|
|
||
Baby & Parenting
|
189.6
|
|
|
182.2
|
|
||
|
$
|
1,240.8
|
|
|
$
|
1,250.5
|
|
Operating Income (Loss)
(2)
|
|
|
|
||||
Writing
|
$
|
63.2
|
|
|
$
|
66.4
|
|
Home Solutions
|
34.1
|
|
|
30.9
|
|
||
Tools
|
18.7
|
|
|
28.7
|
|
||
Commercial Products
|
21.6
|
|
|
18.6
|
|
||
Baby & Parenting
|
23.9
|
|
|
22.4
|
|
||
Restructuring costs
|
(34.4
|
)
|
|
(12.1
|
)
|
||
Corporate
|
(29.3
|
)
|
|
(31.7
|
)
|
||
|
$
|
97.8
|
|
|
$
|
123.2
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||
Identifiable Assets
|
|
|
|
||||
Writing
|
$
|
994.5
|
|
|
$
|
1,145.2
|
|
Home Solutions
|
556.3
|
|
|
573.2
|
|
||
Tools
|
578.0
|
|
|
562.8
|
|
||
Commercial Products
|
351.3
|
|
|
348.8
|
|
||
Baby & Parenting
|
298.5
|
|
|
312.7
|
|
||
Corporate
(3)
|
3,418.6
|
|
|
3,279.3
|
|
||
|
$
|
6,197.2
|
|
|
$
|
6,222.0
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(
in millions
)
|
2013
|
|
2012
|
||||
Net Sales
(1), (4)
|
|
|
|
||||
United States
|
$
|
818.9
|
|
|
$
|
794.9
|
|
Canada
|
61.8
|
|
|
64.9
|
|
||
Total North America
|
880.7
|
|
|
859.8
|
|
||
Europe, Middle East and Africa
|
167.1
|
|
|
202.7
|
|
||
Latin America
|
93.2
|
|
|
76.5
|
|
||
Asia Pacific
|
99.8
|
|
|
111.5
|
|
||
Total International
|
360.1
|
|
|
390.7
|
|
||
|
$
|
1,240.8
|
|
|
$
|
1,250.5
|
|
Operating Income (Loss)
(2), (5)
|
|
|
|
||||
United States
|
$
|
81.0
|
|
|
$
|
71.1
|
|
Canada
|
10.2
|
|
|
12.0
|
|
||
Total North America
|
91.2
|
|
|
83.1
|
|
||
Europe, Middle East and Africa
|
(14.8
|
)
|
|
23.5
|
|
||
Latin America
|
7.3
|
|
|
(6.7
|
)
|
||
Asia Pacific
|
14.1
|
|
|
23.3
|
|
||
Total International
|
6.6
|
|
|
40.1
|
|
||
|
$
|
97.8
|
|
|
$
|
123.2
|
|
(1)
|
All intercompany transactions have been eliminated. Sales to Wal-Mart Stores, Inc. and subsidiaries amounted to approximately
9.6%
and
9.1%
of consolidated net sales in the three months ended March 31, 2013 and 2012, respectively.
|
(2)
|
Operating income (loss) by segment is net sales less cost of products sold and selling, general & administrative (“SG&A”) expenses for continuing operations. Operating income by geographic area is net sales less cost of products sold, SG&A expenses, restructuring costs and impairment charges, if any, for continuing operations. 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 assets primarily include goodwill, capitalized software, cash, deferred tax assets and assets held for sale.
|
(4)
|
Geographic sales information is based on the region from which the products are shipped and invoiced.
|
(5)
|
The following table summarizes the restructuring costs by region included in operating income (loss) above (
in millions
):
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Restructuring Costs
|
|
|
|
||||
United States
|
$
|
5.7
|
|
|
$
|
9.8
|
|
Canada
|
—
|
|
|
0.5
|
|
||
Total North America
|
5.7
|
|
|
10.3
|
|
||
Europe, Middle East and Africa
|
26.2
|
|
|
1.2
|
|
||
Latin America
|
2.5
|
|
|
0.2
|
|
||
Asia Pacific
|
—
|
|
|
0.4
|
|
||
Total International
|
28.7
|
|
|
1.8
|
|
||
|
$
|
34.4
|
|
|
$
|
12.1
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||
Customer accruals
|
$
|
220.3
|
|
|
$
|
269.8
|
|
Accruals for manufacturing, marketing and freight expenses
|
72.9
|
|
|
91.6
|
|
||
Accrued self-insurance liabilities
|
57.9
|
|
|
56.9
|
|
||
Accrued pension, defined contribution and other postretirement benefits
|
32.0
|
|
|
45.8
|
|
||
Accrued contingencies, primarily legal, environmental and warranty
|
35.7
|
|
|
38.3
|
|
||
Accrued restructuring (See Footnote 4)
|
58.2
|
|
|
41.3
|
|
||
Other
|
111.5
|
|
|
114.3
|
|
||
Other accrued liabilities
|
$
|
588.5
|
|
|
$
|
658.0
|
|
◦
|
A brand-led business with a strong home in the United States and global ambition.
|
◦
|
Consumer brands that win at the point of decision through excellence in performance, design and innovation.
|
◦
|
Professional brands that win the loyalty of the chooser by improving the productivity and performance of the user.
|
◦
|
Collaboration with our partners across the total enterprise in a shared commitment to growth and creating value.
|
◦
|
Delivering competitive returns to shareholders through consistent, sustainable and profitable growth.
|
◦
|
Win Bigger — Deploying resources to businesses and regions with higher growth opportunities through investments in innovation and geographic expansion.
|
◦
|
Win Where We Are — Optimizing the performance of businesses and brands in existing markets by investing in innovation to increase market share and reducing structural spend within the existing geographic footprint.
|
◦
|
Incubate For Growth — Investing in businesses that have unique opportunities for growth, with a primary focus on businesses that are in the early stages of the business cycle.
|
◦
|
Make The Brands Really Matter — Sharpening brand strategies on the highest impact growth levers and partnering to win with customers and suppliers.
|
◦
|
Build An Execution Powerhouse — Realigning the customer development organization and developing joint business plans for new channel penetration and broader distribution.
|
◦
|
Unlock Trapped Capacity For Growth — Delivering savings from ongoing restructuring projects, working capital reductions and simplification of business processes.
|
◦
|
Develop The Team For Growth — Driving a performance culture aligned to the business strategy and building a more global perspective and talent base.
|
◦
|
Extend Beyond Our Borders — Accelerating investments and growth in emerging markets.
|
◦
|
Organizational Simplification: The Company has de-layered its top structure by eliminating the two groups (Newell Consumer and Newell Professional) and further consolidated its businesses into five business segments.
|
◦
|
EMEA Simplification: The Company will focus its resources on fewer products and countries, while simplifying go-to-market, delivery and back office support structures.
|
◦
|
Best Cost Finance: The Company will deliver a simplified approach to decision support, transaction processing and information management by leveraging SAP and the streamlined business segments to align resources with the Growth Game Plan.
|
◦
|
Best Cost Back Office: The Company will drive “One Newell Rubbermaid” efficiencies in customer and consumer services and sourcing functions.
|
◦
|
Global Supply Chain Footprint: The Company will further optimize manufacturing and distribution facilities across its global supply chain.
|
Segment
|
|
Key Brands
|
|
Description of Primary Products
|
Writing
|
|
Sharpie
®
, Paper Mate
®
, Expo
®
, Parker
®
, Waterman
®
, Dymo
®
Office, Endicia
®
|
|
Writing instruments, including markers and highlighters, pens and pencils; art products; fine writing instruments; office technology solutions, including labeling and on-line postage solutions
|
Home Solutions
|
|
Rubbermaid
®
, Calphalon
®
, Levolor
®
, Goody
®
|
|
Indoor/outdoor organization, food storage and home storage products; gourmet cookware, bakeware, cutlery and small kitchen electrics; window treatments; hair care accessories
|
Tools
|
|
Irwin
®
, Lenox
®
, Dymo
®
Industrial, Hilmor
™
|
|
Hand tools and power tool accessories; industrial bandsaw blades; cutting tools for pipes and HVAC systems; label makers and printers for industrial use
|
Commercial Products
|
|
Rubbermaid
®
Commercial
Products, Rubbermaid
®
Healthcare
|
|
Cleaning and refuse products, hygiene systems, material handling solutions; medical and computer carts and wall-mounted workstations
|
Baby & Parenting
|
|
Graco
®
, Aprica
®
, Teutonia
®
|
|
Infant and juvenile products such as car seats, strollers, highchairs and playards
|
•
|
Core sales, which exclude foreign currency, increased 0.2% in 2013 compared to the same period last year. Excluding the impact of an estimated $28 million of net sales in the first quarter of 2012 related to customer pre-buys in advance of the SAP launch in Europe, the Company's core sales increased 2.5%. Core sales growth in Latin and North America were partially offset by declines in Europe and Asia Pacific. Core sales is determined by applying a fixed exchange rate, calculated as the 12-month average in 2012, to the current and prior year local currency sales amounts, with the difference equal to changes in core sales, and the difference between the changes in reported sales and the changes in core sales being attributable to currency.
|
•
|
Core sales increased 6.4% in the Baby & Parenting segment, with improved retail-level sales in North America and sustained momentum in the Asia Pacific region primarily due to new product launches. Core sales grew 4.9% in the Commercial Products segment, with substantially all of the growth attributable to the segment’s North American business. Home Solutions segment's core sales increased 3.9%, primarily due to improved performance by Rubbermaid
®
Consumer partially offset by ongoing challenges in the Décor business. Core sales declined 8.5% in the Writing segment primarily due to softness in the office superstore channel as well as the impacts of SAP pre-buys in Europe and the Paper Mate
®
InkJoy
®
and Parker
®
Ingenuity launches in the prior year quarter. An estimated 400 basis points of the core sales decline in the Writing segment is attributable to the impacts of SAP pre-buys in Europe.
|
•
|
Gross margin declined to 38.2%, an 80 basis point decrease primarily due to high gross margins related to the SAP pre-buys in Europe in the first quarter of 2012 and more robust customer programming in select categories in the first quarter of 2013.
|
•
|
During the first quarter of 2013, the Company’s spend for strategic brand-building and consumer demand creation and commercialization activities included spend for the following:
|
•
|
Launched Hilmor
™
, a new brand of professional tools that revolutionizes the heating, ventilation and air conditioning/refrigeration (HVAC/R) tool category with 150 tools featuring intuitive functionality and durable designs that make HVAC/R technicians' jobs easier and more efficient;
|
•
|
Entered the hand tool category in Latin America with the launch of Irwin
®
Dupla, a new double-sided hacksaw; and
|
•
|
Continued support for the expansion of sales forces in the Tools, Writing and Commercial Products segments to drive greater sales penetration, enhance the availability of products and to support geographic expansion for these Win Bigger businesses.
|
•
|
Continued the execution of Project Renewal to simplify the business, reduce structural costs and increase investment in the most significant growth platforms within the business by taking significant steps in implementing the Organizational Simplification, EMEA Simplification and Best Cost Finance workstreams, resulting in $34 million of restructuring costs in the first quarter of 2013.
|
•
|
Realized an $11 million foreign exchange loss in the first quarter of 2013 due to the devaluation of the Venezuelan Bolivar because of highly inflationary accounting for the Company's Venezuelan operations.
|
•
|
Reported a 9% effective tax rate in the first quarter of 2013 compared to 24% in the first quarter of 2012 primarily due to $13.1 million of net tax benefits that are discrete to the first quarter of 2013.
|
•
|
Committed to a plan to divest the Hardware and Teach businesses, primarily included in the former Specialty segment, during the first quarter of 2013 and classified the results of these businesses as discontinued operations. During the first quarter of 2013, the Company recorded non-cash charges of $10 million, net of tax, associated with impairments of goodwill, intangibles and other long-lived assets of the discontinued operations.
|
•
|
Continued the $300.0 million three-year share repurchase plan that expires in August 2014, pursuant to which the Company repurchased and retired an additional
1.4 million
shares of common stock for
$33.8 million
during the first quarter of 2013.
|
|
Three Months Ended March 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
Net sales
|
$
|
1,240.8
|
|
|
100.0
|
%
|
|
$
|
1,250.5
|
|
|
100.0
|
%
|
Cost of products sold
|
767.2
|
|
|
61.8
|
|
|
762.5
|
|
|
61.0
|
|
||
Gross margin
|
473.6
|
|
|
38.2
|
|
|
488.0
|
|
|
39.0
|
|
||
Selling, general and administrative expenses
|
341.4
|
|
|
27.5
|
|
|
352.7
|
|
|
28.2
|
|
||
Restructuring costs
|
34.4
|
|
|
2.8
|
|
|
12.1
|
|
|
1.0
|
|
||
Operating income
|
97.8
|
|
|
7.9
|
|
|
123.2
|
|
|
9.9
|
|
||
Nonoperating expenses:
|
|
|
|
|
|
|
|
||||||
Interest expense, net
|
14.6
|
|
|
1.2
|
|
|
20.2
|
|
|
1.6
|
|
||
Other expense (income), net
|
13.0
|
|
|
1.0
|
|
|
(0.3
|
)
|
|
—
|
|
||
Net nonoperating expenses
|
27.6
|
|
|
2.2
|
|
|
19.9
|
|
|
1.6
|
|
||
Income before income taxes
|
70.2
|
|
|
5.7
|
|
|
103.3
|
|
|
8.3
|
|
||
Income tax expense
|
6.4
|
|
|
0.5
|
|
|
25.0
|
|
|
2.0
|
|
||
Income from continuing operations
|
63.8
|
|
|
5.1
|
|
|
78.3
|
|
|
6.3
|
|
||
(Loss) income from discontinued operations
|
(9.6
|
)
|
|
(0.8
|
)
|
|
1.0
|
|
|
0.1
|
|
||
Net income
|
$
|
54.2
|
|
|
4.4
|
%
|
|
$
|
79.3
|
|
|
6.3
|
%
|
Core sales
|
$
|
2.4
|
|
|
0.2
|
%
|
Foreign currency
|
(12.1
|
)
|
|
(1.0
|
)
|
|
Total change in net sales
|
$
|
(9.7
|
)
|
|
(0.8
|
)%
|
|
2012
|
|
2011
|
|
% Change
|
|||||
Writing
|
$
|
340.6
|
|
|
$
|
375.6
|
|
|
(9.3
|
)%
|
Home Solutions
|
338.9
|
|
|
326.7
|
|
|
3.7
|
|
||
Tools
|
188.6
|
|
|
190.6
|
|
|
(1.0
|
)
|
||
Commercial Products
|
183.1
|
|
|
175.4
|
|
|
4.4
|
|
||
Baby & Parenting
|
189.6
|
|
|
182.2
|
|
|
4.1
|
|
||
Total net sales
|
$
|
1,240.8
|
|
|
$
|
1,250.5
|
|
|
(0.8
|
)%
|
|
Writing
|
|
Home Solutions
|
|
Tools
|
|
Commercial Products
|
|
Baby & Parenting
|
|||||
Core sales, excluding SAP pre-buys
|
(4.5
|
)%
|
|
3.9
|
%
|
|
5.1
|
%
|
|
6.1
|
%
|
|
7.9
|
%
|
Impact of SAP pre-buys
|
(4.0
|
)
|
|
—
|
|
|
(4.4
|
)
|
|
(1.2
|
)
|
|
(1.5
|
)
|
Core sales
|
(8.5
|
)
|
|
3.9
|
|
|
0.7
|
|
|
4.9
|
|
|
6.4
|
|
Foreign currency
|
(0.8
|
)
|
|
(0.2
|
)
|
|
(1.7
|
)
|
|
(0.5
|
)
|
|
(2.3
|
)
|
Total change in net sales
|
(9.3
|
)%
|
|
3.7
|
%
|
|
(1.0
|
)%
|
|
4.4
|
%
|
|
4.1
|
%
|
|
2012
|
|
2011
|
|
% Change
|
|||||
Writing
|
$
|
63.2
|
|
|
$
|
66.4
|
|
|
(4.8
|
)%
|
Home Solutions
|
34.1
|
|
|
30.9
|
|
|
10.4
|
|
||
Tools
|
18.7
|
|
|
28.7
|
|
|
(34.8
|
)
|
||
Commercial Products
|
21.6
|
|
|
18.6
|
|
|
16.1
|
|
||
Baby & Parenting
|
23.9
|
|
|
22.4
|
|
|
6.7
|
|
||
Restructuring costs
|
(34.4
|
)
|
|
(12.1
|
)
|
|
NM
|
|
||
Corporate
(1)
|
(29.3
|
)
|
|
(31.7
|
)
|
|
7.6
|
|
||
Total operating income
|
$
|
97.8
|
|
|
$
|
123.2
|
|
|
(20.6
|
)%
|
(1)
|
Includes organizational change implementation and restructuring-related costs of
$6.6 million
associated with Project Renewal for the three months ended March 31, 2013 and restructuring-related costs of
$10.0 million
associated with the European Transformation Plan for the three months ended March 31, 2012.
|
|
2013
|
|
2012
|
||||
Cash used in operating activities
|
$
|
(123.1
|
)
|
|
$
|
(47.4
|
)
|
Cash used in investing activities
|
(33.9
|
)
|
|
(42.0
|
)
|
||
Cash provided by financing activities
|
148.1
|
|
|
105.9
|
|
||
Currency effect on cash and cash equivalents
|
(0.7
|
)
|
|
3.4
|
|
||
(Decrease) increase in cash and cash equivalents
|
$
|
(9.6
|
)
|
|
$
|
19.9
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
|||
Accounts receivable
|
71
|
|
|
67
|
|
|
65
|
|
Inventory
|
91
|
|
|
66
|
|
|
95
|
|
Accounts payable
|
(64
|
)
|
|
(50
|
)
|
|
(59
|
)
|
Cash conversion cycle
|
98
|
|
|
83
|
|
|
101
|
|
•
|
Cash and cash equivalents at
March 31, 2013
were
$174.2 million
, and the Company had
$598.0 million
of available borrowing capacity under the $800.0 million unsecured syndicated revolving credit facility.
|
•
|
Working capital at
March 31, 2013
was
$682.0 million
compared to
$700.3 million
at December 31, 2012, and the current ratio at
March 31, 2013
was
1.41
:1 compared to
1.45
:1 at December 31, 2012. The decrease in working capital and the current ratio is primarily attributable to the increase in short-term debt compared to December 31, 2012 to fund seasonal inventory builds and the paydown of customer accruals and annual incentive compensation.
|
•
|
The Company monitors its overall capitalization by evaluating net debt to total capitalization. Net 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. Net debt to total capitalization was
0.49
:1 at
March 31, 2013
and
0.46
:1 at December 31, 2012.
|
|
2013
|
|
2012
|
||||||||||||
Short-term Borrowing Arrangement
|
Maximum
|
|
Average
|
|
Maximum
|
|
Average
|
||||||||
Commercial paper
|
$
|
237.5
|
|
|
$
|
118.1
|
|
|
$
|
335.2
|
|
|
$
|
161.9
|
|
Receivables financing facility
|
200.0
|
|
|
200.0
|
|
|
175.0
|
|
|
41.4
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Average outstanding debt
|
$
|
1,998.7
|
|
|
$
|
2,163.8
|
|
Average interest rate
(1)
|
3.0
|
%
|
|
3.8
|
%
|
(1)
|
The average interest rate includes the impacts of outstanding and previously-settled fixed-for-floating interest rate swaps.
|
|
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
|
|
North America
|
|
Europe, Middle East and Africa
|
|
Latin America
|
|
Asia Pacific
|
|
Total International
|
|
Total Company
|
||||||
Core sales, excluding SAP pre-buys
|
2.5
|
%
|
|
(3.5
|
)%
|
|
28.6
|
%
|
|
(5.3
|
)%
|
|
(4.9
|
)%
|
|
2.5
|
%
|
Impact of SAP pre-buys
|
—
|
|
|
(13.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
Core sales
|
2.5
|
|
|
(17.2
|
)
|
|
28.6
|
|
|
(5.3
|
)
|
|
(4.9
|
)
|
|
0.2
|
|
Foreign currency
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(6.8
|
)
|
|
(5.2
|
)
|
|
(2.9
|
)
|
|
(1.0
|
)
|
Total change in net sales
|
2.4
|
%
|
|
(17.6
|
)%
|
|
21.8
|
%
|
|
(10.5
|
)%
|
|
(7.8
|
)%
|
|
(0.8
|
)%
|
Calendar Month
|
Total Number of
Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of
Publicly Announced
Plans or Programs (1)
|
|
Maximum
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Plans or
Programs (1)
|
||||||
January
|
551,008
|
|
(2)
|
$
|
22.42
|
|
|
549,400
|
|
|
$
|
150,084,602
|
|
February
|
1,087,591
|
|
(2)
|
23.94
|
|
|
430,000
|
|
|
139,796,636
|
|
||
March
|
462,725
|
|
(2)
|
24.36
|
|
|
460,600
|
|
|
128,575,946
|
|
||
Total
|
2,101,324
|
|
|
$
|
23.63
|
|
|
1,440,000
|
|
|
|
(1)
|
On August 12, 2011, the Company announced a $300.0 million share repurchase program (the "SRP"). 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 purchase price for
January
,
February
and
March
2013 were
$22.42
,
$23.93
and
$24.36
, respectively.
|
(2)
|
All shares purchased by the Company during the quarter ended
March 31, 2013
other than those purchased under the SRP were acquired 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
January
,
February
and
March
2013, in addition to the shares purchased under the SRP, the Company purchased
1,608
shares (average price:
$22.72
),
657,591
shares (average price:
$23.94
) and
2,125
shares (average price:
$24.55
), respectively, in connection with vesting of employees' stock-based awards.
|
10.1
|
|
Fourth Amendment to the Newell Rubbermaid Inc. Management Cash Bonus Plan dated as of February 6, 2013.
|
10.2
|
|
Newell Rubbermaid Inc. Long-Term Incentive Plan for 2013.
|
10.3
|
|
Form of Restricted Stock Unit Agreement under the 2010 Stock Plan for 2013 Awards.
|
10.4
|
|
Form of Agreement for Performance-Based Restricted Stock Unit Award Granted to Mark S. Tarchetti on January 2, 2013.
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10.5
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Employment Security Agreement with Mark S. Tarchetti dated March 1, 2013.
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31.1
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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.
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31.2
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Certification of Chief Financial 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.
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32.1
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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.
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32.2
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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.
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99.1
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Safe Harbor Statement.
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase
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101.LAB
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XBRL Taxonomy Extension Label Linkbase
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase
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NEWELL RUBBERMAID INC.
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Registrant
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Date:
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May 10, 2013
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/s/ Douglas L. Martin
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Douglas L. Martin
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Executive Vice President and Chief Financial Officer
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Date:
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May 10, 2013
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/s/ John B. Ellis
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John B. Ellis
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Vice President – Corporate Controller and
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Chief Accounting Officer
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Age or Points
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Vesting
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Age 65 or 75 or more points
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100% of the Award vests for an Award made twelve (12) or more months prior to retirement
100% of the Pro-Rated Award vests for an Award made less than twelve (12) months prior to retirement
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70-74 points
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75% of the Pro-Rated Award vests
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65-69 points
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50% of the Pro-Rated Award vests
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60-64 points
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25% of the Pro-Rated Award vests
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(i)
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any individual, partnership, firm, corporation, association, trust, unincorporated organization, or other entity (other than Employer or a trustee or other fiduciary holding securities under an employee
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(ii)
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Employer is party to a merger, consolidation, reorganization, or other similar transaction with another corporation or other legal person unless, following such transaction, more than fifty percent (50%) of the combined voting power of the outstanding securities of the surviving, resulting, or acquiring corporation or person or its parent entity entitled to vote generally in the election of directors (or persons performing similar functions) is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners of Employer’s outstanding securities entitled to vote generally in the election of directors immediately prior to such transaction, in substantially the same proportions as their ownership, immediately prior to such transaction, of Employer’s outstanding securities entitled to vote generally in the election of directors;
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(iii)
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Employer sells all or substantially all of its business and/or assets to another corporation or other legal person unless, following such sale, more than fifty percent (50%) of the combined voting power of the outstanding securities of the acquiring corporation or person or its parent entity entitled to vote generally in the election of directors (or persons performing similar functions) is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners of Employer’s outstanding securities entitled to vote generally in the election of directors immediately prior to such sale, in substantially the same proportions as their ownership, immediately prior to such sale, of Employer’s outstanding securities entitled to vote generally in the election of directors; or
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(iv)
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during any period of two (2) consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors of Employer (collectively, the “
Board
” and individually, a “
Director
”) (and any new Directors, whose appointment or election by the Board or nomination for election by Employer’s stockholders was approved by a vote of at least two-thirds (2/3) of
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(i)
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Executive willfully engages in misconduct in the performance of his duties that causes material harm to Employer; or
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(ii)
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Executive is convicted of a criminal violation involving fraud or dishonesty.
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(i)
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there is a material change in the nature or the scope of Executive’s authority or duties;
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(ii)
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Executive is required to report (A) to an officer with a materially lesser position or title than the officer to whom Executive reported on the date of the Change in Control, if Executive is not the Chief Executive Officer of Employer, or (B) to other than the entire Board, if Executive is the Chief Executive Officer of Employer;
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(iii)
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there is a material reduction in Executive’s rate of base salary;
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(iv)
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Employer changes by fifty (50) miles or more the principal location in which Executive is required to perform services;
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(v)
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Employer terminates or materially amends, or terminates or materially restricts Executive’s participation in, any Incentive Plan or Retirement Plan so that, when considered in the aggregate with any substitute Plan or Plans, the Incentive Plans and Retirement Plans in which he is participating materially fail to provide him with a level of benefits provided in the aggregate by such Incentive Plans or Retirement Plans prior to such termination or amendment,
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(vi)
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Employer materially breaches the provisions of this Agreement;
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(i)
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two (2) times the sum of Executive’s Base Salary and Executive’s Bonus; plus
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(ii)
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Executive's Bonus for the year of termination multiplied by a fraction, the numerator of which is the number of days in the fiscal year in which the date of termination occurs that have elapsed through the date of termination and the denominator of which is three hundred sixty-five (365).
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(i)
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Coverage during the Severance Period under any Welfare Plan that is a group health plan as defined in Title I, Part 6, of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code (“
COBRA
”), shall be provided under COBRA, except that the maximum coverage period shall be extended from eighteen (18) to twenty-four (24) months. If Executive, his spouse, and/or his dependents elect COBRA coverage under any such Welfare Plan for the first eighteen (18) months, Employer shall pay a portion of the COBRA premiums. The portion to be paid by Employer shall equal the amount necessary so that the total of the COBRA premiums paid by Executive, his spouse, and/or his dependents is equal to the premium that would have been paid by Executive for such coverage as an active employee immediately prior to the Change in Control. For the final six (6) months of COBRA coverage, if continued by Executive, his spouse, and/or his dependents, as applicable, Employer shall reimburse a portion of the COBRA premiums on an after-tax basis. The portion reimbursed by Employer shall equal the amount necessary so that the total of the COBRA premiums paid by Executive, his spouse, and/or his dependents after reimbursements is equal to the premium that would have been paid by Executive for such coverage as an active employee immediately prior to the Change in Control.
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(ii)
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Executive and his spouse and eligible dependents shall continue to be covered by all other Welfare Plans in which he, his spouse, or eligible dependents were participating immediately prior to the date of his termination of employment, upon the terms and subject to the conditions of those Welfare Plans as in effect immediately prior to the Change in Control or, if more favorable to Executive, as in effect generally at any time thereafter with respect to other senior executives of Employer, as if he continued to be an active employee of Employer; and Employer shall reimburse the costs of such coverage under such Welfare Plans so that the cost to Executive is the same as is applicable to active employees covered thereunder as in effect immediately prior to the Change in Control; provided that, if participation in any one or more of such Welfare Plans is not possible under the terms thereof, Employer shall provide substantially similar benefits and reimburse the same proportion of costs.
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(i)
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“
Net After-Tax Receipt
” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Executive with respect thereto under Sections 1, 3101, and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to Executive’s taxable income for the immediately preceding taxable year, or such other rate(s) as Executive certifies, in good faith, as likely to apply to Executive in the relevant tax year(s).
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(ii)
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“
Reduced Amount
” shall mean the greatest amount of Agreement Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Agreement Payments pursuant to Section 7(a).
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(i)
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Notwithstanding anything contained in this Agreement to the contrary, if on the date of his termination of employment Executive is a “specified employee,” within the meaning of Section 409A of the Code and Employer's policy for determining specified employees, then to the extent required in order to comply with Section 409A of the Code, all payments, benefits, or reimbursements paid or provided under this Agreement that
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(ii)
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The benefits described in paragraphs (e), (f), and (g) of Section 4 that are taxable benefits (and that are not disability pay or death benefit plans within the meaning of Section 409A of the Code) are intended to comply, to the maximum extent possible, with the exception to Section 409A of the Code set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations. To the extent that any of those benefits either do not qualify for that exception or are provided beyond the applicable COBRA time periods set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations, then they shall be subject to the following additional rules: (1) any reimbursement of eligible expenses shall be paid within sixty (60) calendar days following Executive's written request for reimbursement or such later date set forth in Section 14(a)(i); provided that Executive provides written notice no later than seventy-five (75) calendar days prior to the last day of the calendar year following the calendar year in which the expense was incurred so that Employer can make the reimbursement within the time periods required by Section 409A of the Code; (2) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other calendar year; (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (4) each payment shall be treated as a separate payment.
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Title:
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Executive Vice President, Human Resources and Corporate Communications
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1.
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I have reviewed this report on Form 10-Q for the quarterly period ended
March 31, 2013
of Newell Rubbermaid Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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Date:
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May 10, 2013
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/s/ Michael B. Polk
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Michael B. Polk
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Chief Executive Officer
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1.
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I have reviewed this report on Form 10-Q for the quarterly period ended
March 31, 2013
of Newell Rubbermaid Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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Date:
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May 10, 2013
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/s/ Douglas L. Martin
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Douglas L. Martin
|
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Executive Vice President and Chief Financial Officer
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/s/ Michael B. Polk
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Michael B. Polk
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Chief Executive Officer
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May 10, 2013
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/s/ Douglas L. Martin
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Douglas L. Martin
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Executive Vice President and Chief Financial Officer
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May 10, 2013
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•
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difficulties in the separation of operations, services, products and personnel;
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•
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the diversion of management's attention from other business concerns;
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•
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the retention of certain current or future liabilities in order to induce a buyer to complete a divestiture;
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•
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the disruption of the Company's business; and
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•
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the potential loss of key employees.
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