|
|
|
|
|
Delaware
|
1-9608
|
36-3514169
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification Number)
|
TITLE OF EACH CLASS
|
|
TRADING SYMBOL
|
|
NAME OF EXCHANGE ON WHICH REGISTERED
|
Common stock, $1 par value per share
|
|
NWL
|
|
Nasdaq Stock Market LLC
|
|
☐
|
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
No.
|
|
Exhibit Description
|
|
|
|
99.1
|
|
|
101
|
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
|
104
|
|
The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.
|
|
|
|
NEWELL BRANDS INC.
|
|
|
|
Dated: February 14, 2020
|
By:
|
/s/ Christopher H. Peterson
|
|
|
Christopher H. Peterson
|
|
|
Chief Financial Officer & President, Business Operations
|
|
News Release
|
•
|
Net sales were $2.6 billion, a decline of 3.1 percent compared with the prior year period.
|
•
|
Core sales declined 1.5 percent compared with the prior year period. Core sales increased at four of eight business units compared with the prior year period.
|
•
|
Reported operating margin was 5.1 percent compared with 2.7 percent in the prior year period. Normalized operating margin was 11.3 percent, unchanged compared with the prior year period.
|
•
|
Reported diluted earnings per share for the total company were $1.87 compared with $0.41 in the prior year period, largely attributable to a more favorable tax benefit compared to the prior year period.
|
•
|
Normalized diluted earnings per share for the total company were $0.42 compared with $0.66 in the prior year period, with the change attributable to the foregone contribution from divested businesses.
|
•
|
Full year 2019 operating cash flow was $1.0 billion, compared with $680 million in the prior year, reflecting strong working capital progress, which more than offset the foregone contribution from divested businesses.
|
•
|
The company repaid approximately $600 million in debt during the quarter.
|
•
|
The company initiated its 2020 full year outlook for normalized earnings per share of $1.46 to $1.56 per share and operating cash flow of $1.0 billion to $1.15 billion.
|
•
|
The sale of The U.S. Playing Cards Company was completed, bringing the company’s Accelerated Transformation Plan to a close.
|
|
News Release
|
|
News Release
|
|
News Release
|
|
|
Full Year 2020 Outlook
|
Q1 2020 Outlook
|
Net Sales
|
|
$9.4 to $9.55 billion
|
$1.9 to $1.95 billion
|
Core Sales
|
|
Flat to down 2%
|
3% to 5% decline
|
Normalized Operating Margin
|
|
10 to 40 bps improvement to 10.9% to 11.2%
|
50 to 90 bps contraction to 5.2% to 5.6%
|
Normalized diluted EPS
|
|
$1.46 to $1.56
|
$0.05 to $0.08
|
Operating Cash Flow
|
|
$1.0 to $1.15 billion
|
|
|
News Release
|
|
News Release
|
|
News Release
|
Nancy O’Donnell
|
Danielle Clark
|
SVP, Investor Relations & Corporate Communications
|
Senior Manager, External Communications
|
+1 (770) 418-7723
|
+1 (404) 783-0419
|
nancy.odonnell@newellco.com
|
danielle.clark@newellco.com
|
•
|
our dependence on the strength of retail, commercial and industrial sectors of the economy in various countries around the world;
|
•
|
competition with other manufacturers and distributors of consumer products;
|
•
|
major retailers’ strong bargaining power and consolidation of our customers;
|
•
|
our ability to improve productivity, reduce complexity and streamline operations;
|
•
|
future events that could adversely affect the value of our assets and/or stock price and require additional impairment charges;
|
•
|
our ability to remediate the material weakness in internal control over financial reporting and to consistently maintain effective internal control over financial reporting;
|
•
|
our ability to develop innovative new products, to develop, maintain and strengthen end-user brands and to realize the benefits of increased advertising and promotion spend;
|
•
|
risks related to our substantial indebtedness, a potential increase in interest rates or changes in our credit ratings;
|
•
|
the impact of costs associated with divestitures;
|
•
|
our ability to effectively execute our turnaround plan;
|
•
|
changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner;
|
•
|
the impact of governmental investigations, lawsuits or other actions by parties;
|
•
|
the risks inherent to our foreign operations, including foreign exchange fluctuations, exchange controls and pricing restrictions;
|
•
|
a failure of one of our key information technology systems, networks, processes or related controls or those of our service providers;
|
•
|
the impact of U.S. and foreign regulations on our operations, including the escalation of tariffs on imports into the U.S. and exports to Canada, China and the European Union, environmental remediation costs and data privacy regulations;
|
•
|
the potential inability to attract, retain and motivate key employees;
|
•
|
the impact of new Treasury and tax regulations and the resolution of tax contingencies resulting in additional tax liabilities;
|
•
|
product liability, product recalls or related regulatory actions;
|
|
News Release
|
•
|
our ability to protect intellectual property rights;
|
•
|
significant increases in funding obligations related to our pension plans; and
|
•
|
other factors listed from time to time in our filings with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
|
|
Three months ended
December 31, |
|
|
|
Twelve months ended
December 31, |
|
|
||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||
Net sales
|
$
|
2,623.9
|
|
|
$
|
2,706.8
|
|
|
(3.1)%
|
|
$
|
9,714.9
|
|
|
$
|
10,154.0
|
|
|
(4.3)%
|
Cost of products sold
|
1,771.4
|
|
|
1,769.3
|
|
|
|
|
6,495.5
|
|
|
6,636.3
|
|
|
|
||||
GROSS PROFIT
|
852.5
|
|
|
937.5
|
|
|
(9.1)%
|
|
3,219.4
|
|
|
3,517.7
|
|
|
(8.5)%
|
||||
Selling, general and administrative expenses
|
639.8
|
|
|
673.8
|
|
|
(5.0)%
|
|
2,451.0
|
|
|
2,647.8
|
|
|
(7.4)%
|
||||
Restructuring costs, net
|
5.3
|
|
|
19.3
|
|
|
|
|
27.1
|
|
|
86.8
|
|
|
|
||||
Impairment of goodwill, intangibles and other assets
|
74.7
|
|
|
170.0
|
|
|
|
|
1,223.0
|
|
|
8,337.1
|
|
|
|
||||
OPERATING INCOME (LOSS)
|
132.7
|
|
|
74.4
|
|
|
78.4%
|
|
(481.7
|
)
|
|
(7,554.0
|
)
|
|
93.6%
|
||||
Non-operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
70.7
|
|
|
104.1
|
|
|
|
|
303.3
|
|
|
446.2
|
|
|
|
||||
(Gain) loss on extinguishment of debt
|
(0.7
|
)
|
|
4.1
|
|
|
|
|
28.3
|
|
|
4.1
|
|
|
|
||||
Other (income) expense, net
|
4.8
|
|
|
(1.7
|
)
|
|
|
|
38.3
|
|
|
(12.6
|
)
|
|
|
||||
INCOME (LOSS) BEFORE INCOME TAXES
|
57.9
|
|
|
(32.1
|
)
|
|
NM
|
|
(851.6
|
)
|
|
(7,991.7
|
)
|
|
89.3%
|
||||
Income tax benefit
|
(720.3
|
)
|
|
(98.6
|
)
|
|
|
|
(1,037.7
|
)
|
|
(1,358.9
|
)
|
|
|
||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
778.2
|
|
|
66.5
|
|
|
NM
|
|
186.1
|
|
|
(6,632.8
|
)
|
|
102.8%
|
||||
Income (loss) from discontinued operations, net of tax
|
15.6
|
|
|
117.0
|
|
|
|
|
(79.5
|
)
|
|
(309.7
|
)
|
|
|
||||
NET INCOME (LOSS)
|
$
|
793.8
|
|
|
$
|
183.5
|
|
|
NM
|
|
$
|
106.6
|
|
|
$
|
(6,942.5
|
)
|
|
101.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
423.4
|
|
|
451.5
|
|
|
|
|
423.3
|
|
|
473.7
|
|
|
|
||||
Diluted
|
424.9
|
|
|
451.8
|
|
|
|
|
423.9
|
|
|
473.7
|
|
|
|
||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
1.84
|
|
|
$
|
0.15
|
|
|
|
|
$
|
0.44
|
|
|
$
|
(14.00
|
)
|
|
|
Income (loss) from discontinued operations
|
0.04
|
|
|
0.26
|
|
|
|
|
(0.19
|
)
|
|
(0.65
|
)
|
|
|
||||
NET INCOME (LOSS)
|
$
|
1.88
|
|
|
$
|
0.41
|
|
|
NM
|
|
$
|
0.25
|
|
|
$
|
(14.65
|
)
|
|
NM
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
1.83
|
|
|
$
|
0.15
|
|
|
|
|
$
|
0.44
|
|
|
$
|
(14.00
|
)
|
|
|
Income (loss) from discontinued operations
|
0.04
|
|
|
0.26
|
|
|
|
|
(0.19
|
)
|
|
(0.65
|
)
|
|
|
||||
NET INCOME (LOSS)
|
$
|
1.87
|
|
|
$
|
0.41
|
|
|
NM
|
|
$
|
0.25
|
|
|
$
|
(14.65
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
|
|
December 31,
|
||||||
|
2019
|
|
2018 [1]
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
348.6
|
|
|
$
|
495.7
|
|
Accounts receivable, net
|
1,841.5
|
|
|
2,163.5
|
|
||
Inventories
|
1,606.7
|
|
|
1,760.7
|
|
||
Prepaid expenses and other current assets
|
313.1
|
|
|
294.8
|
|
||
Current assets held for sale
|
—
|
|
|
1,243.8
|
|
||
Total current assets
|
4,109.9
|
|
|
5,958.5
|
|
||
Property, plant and equipment, net
|
1,154.9
|
|
|
1,226.1
|
|
||
Operating lease assets
|
615.2
|
|
|
—
|
|
||
Goodwill
|
3,708.8
|
|
|
3,873.9
|
|
||
Other intangible assets, net
|
4,916.4
|
|
|
6,150.6
|
|
||
Deferred income taxes
|
775.5
|
|
|
183.3
|
|
||
Other assets
|
361.3
|
|
|
330.0
|
|
||
TOTAL ASSETS
|
$
|
15,642.0
|
|
|
$
|
17,722.4
|
|
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
1,101.4
|
|
|
$
|
1,191.6
|
|
Accrued compensation
|
203.9
|
|
|
192.9
|
|
||
Other accrued liabilities
|
1,340.3
|
|
|
1,307.9
|
|
||
Short-term debt and current portion of long-term debt
|
332.4
|
|
|
318.7
|
|
||
Current liabilities held for sale
|
—
|
|
|
292.4
|
|
||
Total current liabilities
|
2,978.0
|
|
|
3,303.5
|
|
||
Long-term debt
|
5,391.3
|
|
|
6,696.3
|
|
||
Deferred income taxes
|
624.9
|
|
|
1,090.0
|
|
||
Operating lease liabilities
|
541.4
|
|
|
—
|
|
||
Other noncurrent liabilities
|
1,110.4
|
|
|
1,379.4
|
|
||
Total liabilities
|
10,646.0
|
|
|
12,469.2
|
|
||
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Total stockholders’ equity attributable to parent
|
4,963.3
|
|
|
5,218.4
|
|
||
Total stockholders’ equity attributable to non-controlling interests
|
32.7
|
|
|
34.8
|
|
||
Total stockholders’ equity
|
4,996.0
|
|
|
5,253.2
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
15,642.0
|
|
|
$
|
17,722.4
|
|
[1]
|
As previously disclosed, the unaudited Consolidated Balance Sheet at December 31, 2018 has been revised for immaterial out-of-period adjustments the Company identified during the first quarter of 2019. The Company disclosed additional information in its Quarterly Report on Form 10-Q for the three months period ending March 31, 2019 and will disclose a revised Consolidated Balance Sheet for the year ended December 31, 2018 in the 2019 Annual Report on Form 10-K. During the quarters ended June 30, 2019 and September 30, 2019, the Company announced that it will not continue to pursue the sale of the majority of the Rubbermaid Outdoor, Closet, Refuse, Garage and Cleaning businesses (the “Commercial Business”), the Mapa/Spontex ("Mapa") and Quickie businesses, respectively. The Consolidated Balance Sheet at December 31, 2018 reflects the reclassification of the Commercial Business, and the Mapa and Quickie businesses to continuing operations to conform to the current presentation.
|
|
|
Twelve Months Ended December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
106.6
|
|
|
$
|
(6,942.5
|
)
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
446.0
|
|
|
433.9
|
|
||
Impairment of goodwill, intangibles and other assets
|
|
1,335.1
|
|
|
9,801.5
|
|
||
Gain from sale of businesses, net
|
|
(7.1
|
)
|
|
(832.9
|
)
|
||
Deferred income taxes
|
|
(1,067.9
|
)
|
|
(1,585.3
|
)
|
||
Stock based compensation expense
|
|
42.5
|
|
|
75.7
|
|
||
Loss on change in fair value of investments
|
|
20.5
|
|
|
—
|
|
||
Other, net
|
|
4.3
|
|
|
(2.1
|
)
|
||
Changes in operating accounts excluding the effects of acquisitions and divestitures:
|
|
|
|
|
||||
Accounts receivable
|
|
310.8
|
|
|
161.7
|
|
||
Inventories
|
|
131.4
|
|
|
125.7
|
|
||
Accounts payable
|
|
(109.2
|
)
|
|
(309.3
|
)
|
||
Accrued liabilities and other
|
|
(169.0
|
)
|
|
(246.4
|
)
|
||
Net cash provided by operating activities
|
|
1,044.0
|
|
|
680.0
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Proceeds from sale of divested businesses
|
|
995.7
|
|
|
5,133.3
|
|
||
Capital expenditures
|
|
(264.9
|
)
|
|
(384.4
|
)
|
||
Other investing activities
|
|
4.6
|
|
|
58.5
|
|
||
Net cash provided by investing activities
|
|
735.4
|
|
|
4,807.4
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net short term borrowings
|
|
(26.1
|
)
|
|
(903.5
|
)
|
||
Payments on current portion of long-term debt
|
|
(268.2
|
)
|
|
—
|
|
||
Payments on long-term debt
|
|
(1,004.0
|
)
|
|
(2,579.9
|
)
|
||
Loss from extinguishment of debt
|
|
(38.8
|
)
|
|
(10.4
|
)
|
||
Repurchase of shares of common stock
|
|
—
|
|
|
(1,507.3
|
)
|
||
Cash dividends
|
|
(390.3
|
)
|
|
(434.6
|
)
|
||
Payments to dissenting shareholders
|
|
(170.9
|
)
|
|
—
|
|
||
Equity compensation activity and other, net
|
|
(5.3
|
)
|
|
(18.8
|
)
|
||
Net cash used in financing activities
|
|
(1,903.6
|
)
|
|
(5,454.5
|
)
|
||
Exchange rate effect on cash, cash equivalents and restricted cash
|
|
(0.6
|
)
|
|
(22.9
|
)
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
|
(124.8
|
)
|
|
10.0
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
495.7
|
|
|
485.7
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
370.9
|
|
|
$
|
495.7
|
|
Restricted cash at beginning of period
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash at end of period
|
|
22.3
|
|
|
—
|
|
|
Three months ended December 31, 2019
|
||||||||||||||||||||||
|
GAAP Measure
|
|
Restructuring
and restructuring
related costs
[1]
|
|
Acquisition
amortization
and impairment [2]
|
|
Transactions
and
related costs
[3]
|
|
Other
items
[4]
|
|
Non-GAAP Measure
|
||||||||||||
|
Reported
|
|
Normalized*
|
||||||||||||||||||||
Net sales
|
$
|
2,623.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,623.9
|
|
Cost of products sold
|
1,771.4
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(26.4
|
)
|
|
1,744.1
|
|
||||||
Gross profit
|
852.5
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
879.8
|
|
||||||
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
33.5
|
%
|
||||||||||
Selling, general and administrative expenses
|
639.8
|
|
|
(12.5
|
)
|
|
(33.6
|
)
|
|
(5.4
|
)
|
|
(4.1
|
)
|
|
584.2
|
|
||||||
|
24.4
|
%
|
|
|
|
|
|
|
|
|
|
22.3
|
%
|
||||||||||
Restructuring costs, net
|
5.3
|
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Impairment charges
|
74.7
|
|
|
—
|
|
|
(74.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Operating income
|
132.7
|
|
|
18.7
|
|
|
108.3
|
|
|
5.4
|
|
|
30.5
|
|
|
295.6
|
|
||||||
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
11.3
|
%
|
||||||||||
Non-operating (income) expenses, net
|
74.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|
72.8
|
|
||||||
Income before income taxes
|
57.9
|
|
|
18.7
|
|
|
108.3
|
|
|
5.4
|
|
|
32.5
|
|
|
222.8
|
|
||||||
Income tax provision (benefit) [5]
|
(720.3
|
)
|
|
4.5
|
|
|
21.6
|
|
|
1.3
|
|
|
744.5
|
|
|
51.6
|
|
||||||
Income (loss) from continuing operations
|
778.2
|
|
|
14.2
|
|
|
86.7
|
|
|
4.1
|
|
|
(712.0
|
)
|
|
171.2
|
|
||||||
Income (loss) from discontinued operations, net of tax
|
15.6
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(7.7
|
)
|
|
8.4
|
|
||||||
Net income (loss)
|
$
|
793.8
|
|
|
$
|
14.2
|
|
|
$
|
86.7
|
|
|
$
|
4.6
|
|
|
$
|
(719.7
|
)
|
|
$
|
179.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted earnings (loss) per share **
|
$
|
1.87
|
|
|
$
|
0.03
|
|
|
$
|
0.20
|
|
|
$
|
0.01
|
|
|
$
|
(1.69
|
)
|
|
$
|
0.42
|
|
|
Three months ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
GAAP Measure
|
|
Restructuring
and restructuring related costs [1] |
|
Acquisition
amortization and impairment [2] |
|
Transactions
and related costs [3] |
|
Other
items
[4]
|
|
Non-GAAP Measures
|
||||||||||||||||||||
|
Reported
|
|
|
|
|
|
Normalized*
|
|
Proforma
Adjustments [5]
|
|
Proforma
|
||||||||||||||||||||
Net sales
|
$
|
2,706.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,706.8
|
|
|
$
|
—
|
|
|
$
|
2,706.8
|
|
Cost of products sold
|
1,769.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1,770.6
|
|
|
10.6
|
|
|
1,781.2
|
|
||||||||
Gross profit
|
937.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
936.2
|
|
|
(10.6
|
)
|
|
925.6
|
|
||||||||
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
34.6
|
%
|
|
|
|
34.2
|
%
|
|||||||||||||
Selling, general and administrative expenses
|
673.8
|
|
|
(10.9
|
)
|
|
(32.5
|
)
|
|
(12.7
|
)
|
|
—
|
|
|
617.7
|
|
|
1.3
|
|
|
619.0
|
|
||||||||
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
22.8
|
%
|
|
|
|
22.9
|
%
|
|||||||||||||
Restructuring costs, net
|
19.3
|
|
|
(19.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Impairment charges
|
170.0
|
|
|
—
|
|
|
(170.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Operating income (loss)
|
74.4
|
|
|
30.2
|
|
|
202.5
|
|
|
12.7
|
|
|
(1.3
|
)
|
|
318.5
|
|
|
(11.9
|
)
|
|
306.6
|
|
||||||||
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
11.8
|
%
|
|
|
|
11.3
|
%
|
|||||||||||||
Non-operating (income) expenses, net
|
106.5
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
(4.7
|
)
|
|
103.1
|
|
|
—
|
|
|
103.1
|
|
||||||||
Income (loss) before income taxes
|
(32.1
|
)
|
|
30.2
|
|
|
202.5
|
|
|
11.4
|
|
|
3.4
|
|
|
215.4
|
|
|
(11.9
|
)
|
|
203.5
|
|
||||||||
Income tax provision (benefit) [6]
|
(98.6
|
)
|
|
19.1
|
|
|
85.8
|
|
|
9.0
|
|
|
58.2
|
|
|
73.5
|
|
|
(3.2
|
)
|
|
70.3
|
|
||||||||
Income (loss) from continuing operations
|
66.5
|
|
|
11.1
|
|
|
116.7
|
|
|
2.4
|
|
|
(54.8
|
)
|
|
141.9
|
|
|
(8.7
|
)
|
|
133.2
|
|
||||||||
Income (loss) from discontinued operations, net of tax
|
117.0
|
|
|
(27.5
|
)
|
|
325.3
|
|
|
(232.4
|
)
|
|
(18.9
|
)
|
|
163.5
|
|
|
—
|
|
|
163.5
|
|
||||||||
Net income (loss)
|
$
|
183.5
|
|
|
$
|
(16.4
|
)
|
|
$
|
442.0
|
|
|
$
|
(230.0
|
)
|
|
$
|
(73.7
|
)
|
|
$
|
305.4
|
|
|
$
|
(8.7
|
)
|
|
$
|
296.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share **
|
$
|
0.41
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.98
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.16
|
)
|
|
$
|
0.68
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.66
|
|
|
Twelve months ended December 31, 2019
|
||||||||||||||||||||||||||||||
|
GAAP Measure
|
|
Restructuring
and restructuring
related costs [1]
|
|
Acquisition
amortization
and impairment [2]
|
|
Transactions
and
related costs [3]
|
|
Other
items
[4]
|
|
Non-GAAP Measures
|
||||||||||||||||||||
|
Reported
|
|
Normalized*
|
|
Proforma
Adjustment
[5]
|
|
Proforma
|
||||||||||||||||||||||||
Net sales
|
$
|
9,714.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,714.9
|
|
|
$
|
—
|
|
|
$
|
9,714.9
|
|
Cost of products sold
|
6,495.5
|
|
|
(15.9
|
)
|
|
—
|
|
|
—
|
|
|
(72.4
|
)
|
|
6,407.2
|
|
|
20.9
|
|
|
6,428.1
|
|
||||||||
Gross profit
|
3,219.4
|
|
|
15.9
|
|
|
—
|
|
|
—
|
|
|
72.4
|
|
|
3,307.7
|
|
|
(20.9
|
)
|
|
3,286.8
|
|
||||||||
|
33.1
|
%
|
|
|
|
|
|
|
|
|
|
34.0
|
%
|
|
|
|
33.8
|
%
|
|||||||||||||
Selling, general and administrative expenses
|
2,451.0
|
|
|
(38.2
|
)
|
|
(130.9
|
)
|
|
(30.4
|
)
|
|
(15.6
|
)
|
|
2,235.9
|
|
|
2.4
|
|
|
2,238.3
|
|
||||||||
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
23.0
|
%
|
|
|
|
23.0
|
%
|
|||||||||||||
Restructuring costs, net
|
27.1
|
|
|
(27.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Impairment charges
|
1,223.0
|
|
|
—
|
|
|
(1,223.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Operating income (loss)
|
(481.7
|
)
|
|
81.2
|
|
|
1,353.9
|
|
|
30.4
|
|
|
88.0
|
|
|
1,071.8
|
|
|
(23.3
|
)
|
|
1,048.5
|
|
||||||||
|
(5.0
|
)%
|
|
|
|
|
|
|
|
|
|
11.0
|
%
|
|
|
|
10.8
|
%
|
|||||||||||||
Non-operating (income) expense, net
|
369.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56.7
|
)
|
|
313.2
|
|
|
—
|
|
|
313.2
|
|
||||||||
Income (loss) before income taxes
|
(851.6
|
)
|
|
81.2
|
|
|
1,353.9
|
|
|
30.4
|
|
|
144.7
|
|
|
758.6
|
|
|
(23.3
|
)
|
|
735.3
|
|
||||||||
Income tax provision (benefit) [6]
|
(1,037.7
|
)
|
|
19.0
|
|
|
292.9
|
|
|
7.2
|
|
|
783.2
|
|
|
64.6
|
|
|
(6.3
|
)
|
|
58.3
|
|
||||||||
Income (loss) from continuing operations
|
186.1
|
|
|
62.2
|
|
|
1,061.0
|
|
|
23.2
|
|
|
(638.5
|
)
|
|
694.0
|
|
|
(17.0
|
)
|
|
677.0
|
|
||||||||
Income (loss) from discontinued operations, net of tax
|
(79.5
|
)
|
|
(0.2
|
)
|
|
84.4
|
|
|
47.7
|
|
|
(7.3
|
)
|
|
45.1
|
|
|
—
|
|
|
45.1
|
|
||||||||
Net income (loss)
|
$
|
106.6
|
|
|
$
|
62.0
|
|
|
$
|
1,145.4
|
|
|
$
|
70.9
|
|
|
$
|
(645.8
|
)
|
|
$
|
739.1
|
|
|
$
|
(17.0
|
)
|
|
$
|
722.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share **
|
$
|
0.25
|
|
|
$
|
0.15
|
|
|
$
|
2.70
|
|
|
$
|
0.17
|
|
|
$
|
(1.52
|
)
|
|
$
|
1.74
|
|
|
$
|
(0.04
|
)
|
|
$
|
1.70
|
|
|
Twelve months ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
GAAP Measure
|
|
Restructuring
and restructuring
related costs [1]
|
|
Acquisition
amortization
and impairment [2]
|
|
Transactions
and
related costs [3]
|
|
Other
items
[4]
|
|
Non-GAAP Measures
|
||||||||||||||||||||
|
Reported
|
|
Normalized*
|
|
Proforma
Adjustment
[5]
|
|
Proforma
|
||||||||||||||||||||||||
Net sales
|
$
|
10,154.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,154.0
|
|
|
$
|
—
|
|
|
$
|
10,154.0
|
|
Cost of products sold
|
6,636.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
6,646.8
|
|
|
27.0
|
|
|
6,673.8
|
|
||||||||
Gross profit
|
3,517.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.5
|
)
|
|
3,507.2
|
|
|
(27.0
|
)
|
|
3,480.2
|
|
||||||||
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
34.5
|
%
|
|
|
|
34.3
|
%
|
|||||||||||||
Selling, general and administrative expenses
|
2,647.8
|
|
|
(11.1
|
)
|
|
(132.8
|
)
|
|
(33.6
|
)
|
|
(42.2
|
)
|
|
2,428.1
|
|
|
4.1
|
|
|
2,432.2
|
|
||||||||
|
26.1
|
%
|
|
|
|
|
|
|
|
|
|
23.9
|
%
|
|
|
|
24.0
|
%
|
|||||||||||||
Restructuring costs, net
|
86.8
|
|
|
(86.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Impairment charges
|
8,337.1
|
|
|
—
|
|
|
(8,337.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Operating income (loss)
|
(7,554.0
|
)
|
|
97.9
|
|
|
8,469.9
|
|
|
33.6
|
|
|
31.7
|
|
|
1,079.1
|
|
|
(31.1
|
)
|
|
1,048.0
|
|
||||||||
|
(74.4
|
)%
|
|
|
|
|
|
|
|
|
|
10.6
|
%
|
|
|
|
10.3
|
%
|
|||||||||||||
Non-operating (income) expense, net
|
437.7
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
5.9
|
|
|
445.5
|
|
|
—
|
|
|
445.5
|
|
||||||||
Income (loss) before income taxes
|
(7,991.7
|
)
|
|
97.9
|
|
|
8,469.9
|
|
|
31.7
|
|
|
25.8
|
|
|
633.6
|
|
|
(31.1
|
)
|
|
602.5
|
|
||||||||
Income tax provision (benefit) [6]
|
(1,358.9
|
)
|
|
(10.8
|
)
|
|
1,210.0
|
|
|
14.6
|
|
|
65.5
|
|
|
(79.6
|
)
|
|
(8.5
|
)
|
|
(88.1
|
)
|
||||||||
Income (loss) from continuing operations
|
(6,632.8
|
)
|
|
108.7
|
|
|
7,259.9
|
|
|
17.1
|
|
|
(39.7
|
)
|
|
713.2
|
|
|
(22.6
|
)
|
|
690.6
|
|
||||||||
Income (loss) from discontinued operations, net of tax
|
(309.7
|
)
|
|
(19.3
|
)
|
|
1,427.6
|
|
|
(635.9
|
)
|
|
13.0
|
|
|
475.7
|
|
|
—
|
|
|
475.7
|
|
||||||||
Net income (loss)
|
$
|
(6,942.5
|
)
|
|
$
|
89.4
|
|
|
$
|
8,687.5
|
|
|
$
|
(618.8
|
)
|
|
$
|
(26.7
|
)
|
|
$
|
1,188.9
|
|
|
$
|
(22.6
|
)
|
|
$
|
1,166.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share **
|
$
|
(14.65
|
)
|
|
$
|
0.19
|
|
|
$
|
18.32
|
|
|
$
|
(1.30
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
2.51
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.46
|
|
|
Three months ended December 31, 2019
|
|
Three months ended December 31, 2018
|
|
Year over year changes
|
||||||||||||||||||||||||||||||||||||||||
Net Sales
|
Reported
Operating Income (Loss) |
Reported
Operating Margin |
Excluded
Items
[1]
|
Normalized
Operating Income (Loss) |
Normalized
Operating Margin |
|
Net Sales
|
Reported
Operating Income (Loss) |
Reported
Operating
Margin
|
Excluded
Items
[2]
|
Proforma
Operating
Income (Loss)
[3]
|
Proforma
Operating
Margin
[3]
|
|
Net Sales
|
|
Proforma
Operating Income (Loss) |
|||||||||||||||||||||||||||||
$
|
%
|
|
$
|
%
|
|||||||||||||||||||||||||||||||||||||||||
APPLIANCES AND COOKWARE
|
$
|
569.5
|
|
$
|
57.6
|
|
10.1
|
%
|
$
|
(3.4
|
)
|
$
|
54.2
|
|
9.5
|
%
|
|
$
|
603.5
|
|
$
|
(46.1
|
)
|
(7.6
|
)%
|
$
|
108.7
|
|
$
|
62.6
|
|
10.4
|
%
|
|
$
|
(34.0
|
)
|
(5.6
|
)%
|
|
$
|
(8.4
|
)
|
(13.4
|
)%
|
FOOD AND
COMMERCIAL
|
584.0
|
|
67.6
|
|
11.6
|
%
|
20.5
|
|
88.1
|
|
15.1
|
%
|
|
586.3
|
|
79.6
|
|
13.6
|
%
|
7.8
|
|
87.4
|
|
14.9
|
%
|
|
(2.3
|
)
|
(0.4
|
)%
|
|
0.7
|
|
0.8
|
%
|
||||||||||
HOME AND OUTDOOR LIVING
|
768.2
|
|
(10.2
|
)
|
(1.3
|
)%
|
82.5
|
|
72.3
|
|
9.4
|
%
|
|
808.8
|
|
45.5
|
|
5.6
|
%
|
62.0
|
|
107.5
|
|
13.3
|
%
|
|
(40.6
|
)
|
(5.0
|
)%
|
|
(35.2
|
)
|
(32.7
|
)%
|
||||||||||
LEARNING AND DEVELOPMENT
|
702.2
|
|
99.6
|
|
14.2
|
%
|
28.8
|
|
128.4
|
|
18.3
|
%
|
|
706.7
|
|
135.2
|
|
19.1
|
%
|
3.6
|
|
138.8
|
|
19.6
|
%
|
|
(4.5
|
)
|
(0.6
|
)%
|
|
(10.4
|
)
|
(7.5
|
)%
|
||||||||||
OTHER
|
—
|
|
—
|
|
—
|
%
|
—
|
|
—
|
|
—
|
%
|
|
1.5
|
|
0.9
|
|
60.0
|
%
|
—
|
|
0.9
|
|
60.0
|
%
|
|
(1.5
|
)
|
(100.0
|
)%
|
|
(0.9
|
)
|
(100.0
|
)%
|
||||||||||
CORPORATE
|
—
|
|
(76.6
|
)
|
—
|
%
|
29.2
|
|
(47.4
|
)
|
—
|
%
|
|
—
|
|
(121.4
|
)
|
—
|
%
|
30.8
|
|
(90.6
|
)
|
—
|
%
|
|
—
|
|
—
|
%
|
|
43.2
|
|
47.7
|
%
|
||||||||||
RESTRUCTURING
|
—
|
|
(5.3
|
)
|
—
|
%
|
5.3
|
|
—
|
|
—
|
%
|
|
—
|
|
(19.3
|
)
|
—
|
%
|
19.3
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
||||||||||
|
$
|
2,623.9
|
|
$
|
132.7
|
|
5.1
|
%
|
$
|
162.9
|
|
$
|
295.6
|
|
11.3
|
%
|
|
$
|
2,706.8
|
|
$
|
74.4
|
|
2.7
|
%
|
$
|
232.2
|
|
$
|
306.6
|
|
11.3
|
%
|
|
$
|
(82.9
|
)
|
(3.1
|
)%
|
|
$
|
(11.0
|
)
|
(3.6
|
)%
|
[1]
|
The three months ended December 31, 2019 excluded items consists of $74.7 million impairment charges, primarily related to tradenames; $33.6 million of acquisition amortization costs; $18.7 million of restructuring and restructuring-related charges; $14.7 million of cumulative depreciation and amortization catch-up related to the inclusion of Mapa and Quickie businesses in continuing operations; $5.4 million of transaction related costs and $15.8 million related to Argentina hyperinflationary adjustment, legal fees related to certain proceedings and a product recall.
|
[2]
|
The three months ended December 31, 2018 excluded items consists of $170.0 million of impairment charges for goodwill and tradenames; $32.5 million of acquisition amortization costs; $30.2 million of restructuring and restructuring-related charges; $12.7 million of transaction related costs and fire-related losses, net of insurance recovery of $(1.3) million.
|
[3]
|
Proforma normalized operating income (loss) and margin reflect an adjustment within excluded items for depreciation and amortization expense of $11.9 million related to Commercial Business, and the Mapa and Quickie businesses in the Food and Commercial segment that would have been recorded had they been continuously classified as held and used.
|
|
Twelve months ended December 31, 2019
|
|
Twelve months ended December 31, 2018
|
|
Year over year changes
|
||||||||||||||||||||||||||||||||||||||||
Net Sales
|
Reported
Operating Income (Loss) |
Reported
Operating Margin |
Excluded
Items
[1]
|
Proforma
Operating Income (Loss)
[3]
|
Proforma
Operating Margin
[3]
|
|
Net Sales
|
Reported
Operating
Income (Loss)
|
Reported
Operating
Margin
|
Excluded
Items
[2]
|
Proforma
Operating
Income (Loss)
[3]
|
Proforma
Operating
Margin
[3]
|
|
Net Sales
|
|
Proforma
Operating Income (Loss)
|
|||||||||||||||||||||||||||||
$
|
%
|
|
$
|
%
|
|||||||||||||||||||||||||||||||||||||||||
APPLIANCES AND COOKWARE
|
$
|
1,691.0
|
|
$
|
(535.3
|
)
|
(31.7
|
)%
|
$
|
613.7
|
|
$
|
78.4
|
|
4.6
|
%
|
|
$
|
1,818.6
|
|
$
|
(1,596.3
|
)
|
(87.8
|
)%
|
$
|
1,718.1
|
|
$
|
121.8
|
|
6.7
|
%
|
|
$
|
(127.6
|
)
|
(7.0
|
)%
|
|
$
|
(43.4
|
)
|
(35.6
|
)%
|
FOOD AND
COMMERCIAL
|
2,243.9
|
|
(42.3
|
)
|
(1.9
|
)%
|
386.2
|
|
343.9
|
|
15.3
|
%
|
|
2,403.6
|
|
(1,458.9
|
)
|
(60.7
|
)%
|
1,817.4
|
|
358.5
|
|
14.9
|
%
|
|
(159.7
|
)
|
(6.6
|
)%
|
|
(14.6
|
)
|
(4.1
|
)%
|
||||||||||
HOME AND
OUTDOOR LIVING
|
2,823.4
|
|
(173.2
|
)
|
(6.1
|
)%
|
361.3
|
|
188.1
|
|
6.7
|
%
|
|
2,946.7
|
|
(4,237.7
|
)
|
(143.8
|
)%
|
4,497.0
|
|
259.3
|
|
8.8
|
%
|
|
(123.3
|
)
|
(4.2
|
)%
|
|
(71.2
|
)
|
(27.5
|
)%
|
||||||||||
LEARNING AND
DEVELOPMENT
|
2,956.6
|
|
587.2
|
|
19.9
|
%
|
45.8
|
|
633.0
|
|
21.4
|
%
|
|
2,981.6
|
|
237.9
|
|
8.0
|
%
|
393.1
|
|
631.0
|
|
21.2
|
%
|
|
(25.0
|
)
|
(0.8
|
)%
|
|
2.0
|
|
0.3
|
%
|
||||||||||
OTHER
|
—
|
|
—
|
|
—
|
%
|
—
|
|
—
|
|
—
|
%
|
|
3.5
|
|
3.8
|
|
108.6
|
%
|
—
|
|
3.8
|
|
108.6
|
%
|
|
(3.5
|
)
|
(100.0
|
)%
|
|
(3.8
|
)
|
(100.0
|
)%
|
||||||||||
CORPORATE
|
—
|
|
(291.0
|
)
|
—
|
%
|
96.1
|
|
(194.9
|
)
|
—
|
%
|
|
—
|
|
(416.0
|
)
|
—
|
%
|
89.6
|
|
(326.4
|
)
|
—
|
%
|
|
—
|
|
—
|
%
|
|
131.5
|
|
40.3
|
%
|
||||||||||
RESTRUCTURING
|
—
|
|
(27.1
|
)
|
—
|
%
|
27.1
|
|
—
|
|
—
|
%
|
|
—
|
|
(86.8
|
)
|
—
|
%
|
86.8
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
||||||||||
|
$
|
9,714.9
|
|
$
|
(481.7
|
)
|
(5.0
|
)%
|
$
|
1,530.2
|
|
$
|
1,048.5
|
|
10.8
|
%
|
|
$
|
10,154.0
|
|
$
|
(7,554.0
|
)
|
(74.4
|
)%
|
$
|
8,602.0
|
|
$
|
1,048.0
|
|
10.3
|
%
|
|
$
|
(439.1
|
)
|
(4.3
|
)%
|
|
$
|
0.5
|
|
—
|
%
|
[1]
|
The twelve months ended December 31, 2019 excluded items consists of $1.2 billion impairment charges, primarily related to tradenames and goodwill; $130.9 million of acquisition amortization costs; $81.2 million of restructuring and restructuring-related charges; $54.4 million of cumulative depreciation and amortization catch-up related to the inclusion of the Commercial Business, Mapa and Quickie in continuing operations; $30.4 million of transaction related costs and $33.6 million related to Argentina hyperinflationary adjustment, legal fees related to certain proceedings and a product recall.
|
[2]
|
The twelve months ended December 31, 2018 excluded items consists of $8.3 billion of impairment charges for goodwill and tradenames; $132.8 million of acquisition amortization costs; $97.9 million of restructuring and restructuring-related charges; and $33.6 million of transaction related costs, $42.2 million of other costs and fire-related losses, net of insurance recovery of $(10.5) million.
|
[3]
|
Proforma normalized operating income (loss) and margin reflect an adjustment within excluded items for depreciation and amortization expense of $23.3 million and $31.1 million related to the Commercial Business, and the Mapa and Quickie businesses in the Food and Commercial segment that would have been recorded had they been continuously classified as held and used.
|
|
Three months ended December 31, 2019
|
|
Three months ended December 31, 2018
|
|
|
|
|
|||||||||||||||||||||||||
|
2019
Net Sales
(REPORTED)
|
Acquisitions, Divestitures and Other, Net
[2]
|
Net Sales
Base Business
|
Currency
Impact
[3]
|
2019 Core Sales [1]
|
|
2018 Net Sales
(REPORTED)
|
Divestitures and Other, Net
[2]
|
2018
Core Sales
[1]
|
|
Increase (Decrease)
Core Sales
$ %
|
|||||||||||||||||||||
APPLIANCES AND COOKWARE
|
$
|
569.5
|
|
$
|
—
|
|
$
|
569.5
|
|
$
|
6.4
|
|
$
|
575.9
|
|
|
$
|
603.5
|
|
$
|
—
|
|
$
|
603.5
|
|
|
$
|
(27.6
|
)
|
|
(4.6
|
)%
|
FOOD AND COMMERCIAL
|
584.0
|
|
—
|
|
584.0
|
|
7.5
|
|
591.5
|
|
|
586.3
|
|
0.1
|
|
586.4
|
|
|
5.1
|
|
|
0.9
|
%
|
|||||||||
HOME AND OUTDOOR LIVING
|
768.2
|
|
2.5
|
|
770.7
|
|
3.5
|
|
774.2
|
|
|
808.8
|
|
(12.2
|
)
|
796.6
|
|
|
(22.4
|
)
|
|
(2.8
|
)%
|
|||||||||
LEARNING AND DEVELOPMENT
|
702.2
|
|
(14.8
|
)
|
687.4
|
|
6.0
|
|
693.4
|
|
|
706.7
|
|
(19.4
|
)
|
687.3
|
|
|
6.1
|
|
|
0.9
|
%
|
|||||||||
OTHER
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
1.5
|
|
(1.5
|
)
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||||||
|
$
|
2,623.9
|
|
$
|
(12.3
|
)
|
$
|
2,611.6
|
|
$
|
23.4
|
|
$
|
2,635.0
|
|
|
$
|
2,706.8
|
|
$
|
(33.0
|
)
|
$
|
2,673.8
|
|
|
$
|
(38.8
|
)
|
|
(1.5
|
)%
|
|
Three months ended December 31, 2019
|
|
Three months ended December 31, 2018
|
|
|
|
|
|||||||||||||||||||||||||
|
2019
Net Sales
(REPORTED)
|
Acquisitions, Divestitures and Other, Net
[2]
|
Net Sales
Base Business
|
Currency
Impact
[3]
|
2019 Core Sales [1]
|
|
2018 Net Sales
(REPORTED)
|
Divestitures and Other, Net
[2]
|
2018
Core Sales
[1]
|
|
Increase (Decrease)
Core Sales
$ %
|
|||||||||||||||||||||
NORTH AMERICA
|
$
|
1,861.9
|
|
$
|
(11.9
|
)
|
$
|
1,850.0
|
|
$
|
(0.1
|
)
|
$
|
1,849.9
|
|
|
$
|
1,954.7
|
|
$
|
(30.5
|
)
|
$
|
1,924.2
|
|
|
$
|
(74.3
|
)
|
|
(3.9
|
)%
|
EUROPE, MIDDLE EAST, AFRICA
|
377.3
|
|
—
|
|
377.3
|
|
7.0
|
|
384.3
|
|
|
370.7
|
|
(1.2
|
)
|
369.5
|
|
|
14.8
|
|
|
4.0
|
%
|
|||||||||
LATIN AMERICA
|
221.3
|
|
(0.4
|
)
|
220.9
|
|
14.4
|
|
235.3
|
|
|
212.3
|
|
(0.8
|
)
|
211.5
|
|
|
23.8
|
|
|
11.3
|
%
|
|||||||||
ASIA PACIFIC
|
163.4
|
|
—
|
|
163.4
|
|
2.1
|
|
165.5
|
|
|
169.1
|
|
(0.5
|
)
|
168.6
|
|
|
(3.1
|
)
|
|
(1.8
|
)%
|
|||||||||
|
$
|
2,623.9
|
|
$
|
(12.3
|
)
|
$
|
2,611.6
|
|
$
|
23.4
|
|
$
|
2,635.0
|
|
|
$
|
2,706.8
|
|
$
|
(33.0
|
)
|
$
|
2,673.8
|
|
|
$
|
(38.8
|
)
|
|
(1.5
|
)%
|
|
Twelve months ended December 31, 2019
|
|
Twelve months ended December 31, 2018
|
|
|
|
|
|||||||||||||||||||||||||
|
2019
Net Sales (REPORTED) |
Acquisitions, Divestitures and Other, Net [2]
|
Net Sales
Base Business |
Currency
Impact
[3]
|
2019 Core Sales
[1]
|
|
2018 Net Sales
(REPORTED) |
Divestitures and Other, Net
[2]
|
2018
Core Sales
[1]
|
|
Increase (Decrease)
Core Sales $ % |
|||||||||||||||||||||
APPLIANCES AND COOKWARE
|
$
|
1,691.0
|
|
$
|
—
|
|
$
|
1,691.0
|
|
$
|
35.4
|
|
$
|
1,726.4
|
|
|
$
|
1,818.6
|
|
$
|
—
|
|
$
|
1,818.6
|
|
|
$
|
(92.2
|
)
|
|
(5.1
|
)%
|
FOOD AND COMMERCIAL
|
2,243.9
|
|
(811.9
|
)
|
1,432.0
|
|
17.5
|
|
1,449.5
|
|
|
2,403.6
|
|
(887.5
|
)
|
1,516.1
|
|
|
(66.6
|
)
|
|
(4.4
|
)%
|
|||||||||
HOME AND OUTDOOR LIVING
|
2,823.4
|
|
12.6
|
|
2,836.0
|
|
34.1
|
|
2,870.1
|
|
|
2,946.7
|
|
(34.8
|
)
|
2,911.9
|
|
|
(41.8
|
)
|
|
(1.4
|
)%
|
|||||||||
LEARNING AND DEVELOPMENT
|
2,956.6
|
|
(67.8
|
)
|
2,888.8
|
|
43.3
|
|
2,932.1
|
|
|
2,981.6
|
|
(79.3
|
)
|
2,902.3
|
|
|
29.8
|
|
|
1.0
|
%
|
|||||||||
OTHER
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3.5
|
|
(3.5
|
)
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||||||
|
$
|
9,714.9
|
|
$
|
(867.1
|
)
|
$
|
8,847.8
|
|
$
|
130.3
|
|
$
|
8,978.1
|
|
|
$
|
10,154.0
|
|
$
|
(1,005.1
|
)
|
$
|
9,148.9
|
|
|
$
|
(170.8
|
)
|
|
(1.9
|
)%
|
|
Twelve months ended December 31, 2019
|
|
Twelve months ended December 31, 2018
|
|
|
|
|
|||||||||||||||||||||||||
|
2019
Net Sales (REPORTED) |
Acquisitions, Divestitures and Other, Net [2]
|
Net Sales
Base Business |
Currency
Impact
[3]
|
2019 Core Sales
[1]
|
|
2018 Net Sales
(REPORTED) |
Divestitures and Other, Net
[2]
|
2018
Core Sales
[1]
|
|
Increase (Decrease)
Core Sales $ % |
|||||||||||||||||||||
NORTH AMERICA
|
$
|
6,920.1
|
|
$
|
(561.2
|
)
|
$
|
6,358.9
|
|
$
|
8.1
|
|
$
|
6,367.0
|
|
|
$
|
7,263.6
|
|
$
|
(652.4
|
)
|
$
|
6,611.2
|
|
|
$
|
(244.2
|
)
|
|
(3.7
|
)%
|
EUROPE, MIDDLE EAST, AFRICA
|
1,397.8
|
|
(241.4
|
)
|
1,156.4
|
|
56.1
|
|
1,212.5
|
|
|
1,462.9
|
|
(277.1
|
)
|
1,185.8
|
|
|
26.7
|
|
|
2.3
|
%
|
|||||||||
LATIN AMERICA
|
702.3
|
|
(44.9
|
)
|
657.4
|
|
49.1
|
|
706.5
|
|
|
709.2
|
|
(48.9
|
)
|
660.3
|
|
|
46.2
|
|
|
7.0
|
%
|
|||||||||
ASIA PACIFIC
|
694.7
|
|
(19.6
|
)
|
675.1
|
|
17.0
|
|
692.1
|
|
|
718.3
|
|
(26.7
|
)
|
691.6
|
|
|
0.5
|
|
|
0.1
|
%
|
|||||||||
|
$
|
9,714.9
|
|
$
|
(867.1
|
)
|
$
|
8,847.8
|
|
$
|
130.3
|
|
$
|
8,978.1
|
|
|
$
|
10,154.0
|
|
$
|
(1,005.1
|
)
|
$
|
9,148.9
|
|
|
$
|
(170.8
|
)
|
|
(1.9
|
)%
|
|
|
December 31,
|
|
|
||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
||||||
NET DEBT RECONCILIATION:
|
|
|
|
|
|
|
||||||
Short-term debt and current portion of long term debt
|
|
$
|
332.4
|
|
|
$
|
318.7
|
|
|
|
||
Long- term debt
|
|
5,391.3
|
|
|
6,696.3
|
|
|
|
||||
Gross debt
|
|
5,723.7
|
|
|
7,015.0
|
|
|
$
|
(1,291.3
|
)
|
||
|
|
|
|
|
|
|
||||||
Less: Cash and cash equivalents
|
|
348.6
|
|
|
495.7
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
NET DEBT [1]
|
|
$
|
5,375.1
|
|
|
$
|
6,519.3
|
|
|
$
|
(1,144.2
|
)
|
[1]
|
Net debt is defined as gross debt less the total of cash and cash equivalents, and current and long-term marketable securities. The Company believes net debt is meaningful to investors as it considers net debt and its components to be an important indicator of liquidity and a guiding measure of capital structure strategy.
|
|
|
December 31,
|
|
|
||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
||||||
FREE CASH FLOW RECONCILIATION:
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
|
$
|
1,044.0
|
|
|
$
|
680.0
|
|
|
|
||
Less: Capital expenditures
|
|
(264.9
|
)
|
|
(384.4
|
)
|
|
|
||||
|
|
|
|
|
|
|
||||||
FREE CASH FLOW [2]
|
|
$
|
779.1
|
|
|
$
|
295.6
|
|
|
$
|
483.5
|
|
[2]
|
Free cash flow is defined as net cash provided by operating activities, less capital expenditures.
|
|
Three months ending March 31, 2020
|
|
Year ending December 31, 2020
|
||||
Estimated net sales change (GAAP)
|
-6.5%
|
to
|
-4.5%
|
|
-3.0%
|
to
|
-2.0%
|
Add: Estimated unfavorable foreign exchange and divestitures [1]
|
~ 150 bps
|
|
~ 100 bps
|
||||
Estimated core sales change (NON-GAAP)
|
-5.0%
|
to
|
-3.0%
|
|
-2.0%
|
to
|
0.0%
|
[1]
|
“Currency Impact” represents the estimated effect of foreign currency on 2020 projected sales and is calculated as the difference between the 2020 reported sales vs 2020 sales when applying the prior year average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures).
|