FOR THE FISCAL YEAR ENDED | COMMISSION FILE NUMBER | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Zip Code) | ||||||||
(Address of principal executive offices) |
TITLE OF EACH CLASS | TRADING SYMBOL | NAME OF EACH EXCHANGE ON WHICH REGISTERED | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Segment | Key Brands | Description of Primary Products | ||||||||||||
Commercial Solutions | Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, and Spontex | Commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions | ||||||||||||
Home Appliances | Calphalon, Crockpot, Mr. Coffee, Oster and Sunbeam | Household products, including kitchen appliances | ||||||||||||
Home Solutions | Ball (1), Calphalon, Chesapeake Bay Candle, FoodSaver, Rubbermaid, Sistema, WoodWick and Yankee Candle | Food and home storage products; fresh preserving products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products | ||||||||||||
Learning and Development | Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex, Waterman and X-Acto | Baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products and labeling solutions | ||||||||||||
Outdoor and Recreation | Campingaz, Coleman, Contigo, ExOfficio, and Marmot | Products for outdoor and outdoor-related activities |
Name | Age | Title | ||||||||||||
Ravichandra K. Saligram | 66 | Chief Executive Officer | ||||||||||||
Christopher H. Peterson | 56 | President | ||||||||||||
Mark J. Erceg | 53 | Chief Financial Officer | ||||||||||||
Bradford R. Turner | 50 | Chief Legal and Administrative Officer and Corporate Secretary | ||||||||||||
Stephen B. Parsons | 58 | Chief Human Resources Officer | ||||||||||||
Michal J. Geller | 50 | President, e-Commerce and Digital | ||||||||||||
Michael M. Hayes | 54 | Chief Customer Officer | ||||||||||||
Melanie Huet | 47 | President, Brand Management and Innovation | ||||||||||||
Kristine K. Malkoski | 62 | Segment CEO, Learning & Development | ||||||||||||
Michael P. McDermott | 52 | Segment CEO, Home & Commercial Solutions | ||||||||||||
James A. Pisani | 56 | Segment CEO, Outdoor & Recreation |
Calendar Month | Total Number of Shares Purchased (2) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
October | — | $ | — | — | $ | 50,000,231 | ||||||||||||||||||||
November | 962 | 13.11 | — | 50,000,231 | ||||||||||||||||||||||
December | 1,877 | 12.97 | — | 50,000,231 | ||||||||||||||||||||||
Total | 2,839 | $ | 13.02 | — |
Segment | Key Brands | Description of Primary Products | ||||||||||||
Commercial Solutions | Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, and Spontex | Commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions | ||||||||||||
Home Appliances | Calphalon, Crockpot, Mr. Coffee, Oster and Sunbeam | Household products, including kitchen appliances | ||||||||||||
Home Solutions | Ball (1), Calphalon, Chesapeake Bay Candle, FoodSaver, Rubbermaid, Sistema, WoodWick and Yankee Candle | Food and home storage products; fresh preserving products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products | ||||||||||||
Learning and Development | Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex, Waterman and X-Acto | Baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products and labeling solutions | ||||||||||||
Outdoor and Recreation | Campingaz, Coleman, Contigo, ExOfficio, and Marmot | Products for outdoor and outdoor-related activities |
Years Ended December 31, | |||||||||||||||||||||||
(in millions, except per share data) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 9,459 | $ | 10,589 | $ | (1,130) | (10.7)% | ||||||||||||||||
Gross profit | 2,834 | 3,363 | (529) | (15.7)% | |||||||||||||||||||
Gross margin | 30.0 | % | 31.8 | % | |||||||||||||||||||
Operating income | 312 | 1,013 | (701) | (69.2)% | |||||||||||||||||||
Operating margin | 3.3 | % | 9.6 | % | |||||||||||||||||||
Interest expense, net | 235 | 256 | (21) | (8.2)% | |||||||||||||||||||
Loss on extinguishment of debt | 1 | 5 | (4) | (80.0)% | |||||||||||||||||||
Other income, net | (81) | (8) | (73) | NM | |||||||||||||||||||
Income before income taxes | 157 | 760 | (603) | (79.3)% | |||||||||||||||||||
Income tax provision (benefit) | (40) | 138 | (178) | NM | |||||||||||||||||||
Income tax rate | (25.5) | % | 18.2 | % | |||||||||||||||||||
Net income | $ | 197 | $ | 622 | (425) | (68.3)% | |||||||||||||||||
Diluted earnings per share - attributable to common shareholders | $ | 0.47 | $ | 1.45 |
Years Ended December 31, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | |||||||||||||||||
Impairment of goodwill and intangible assets (See Footnote 7) | $ | 474 | $ | 60 | $ | 414 | ||||||||||||||
Restructuring (See Footnote 4) and restructuring-related (a) | 39 | 46 | (7) | |||||||||||||||||
Transactions and other costs (b) | 72 | 37 | 35 |
Years Ended December 31, | ||||||||||||||
(in millions) | 2022 | 2021 | ||||||||||||
Foreign exchange losses, net (See Footnotes 10 and 19) | $ | 47 | $ | 8 | ||||||||||
Gain on disposition of businesses, net (See Footnote 2) | (136) | (4) | ||||||||||||
Other (gains) losses, net | 8 | (12) | ||||||||||||
$ | (81) | $ | (8) |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,691 | $ | 1,953 | $ | (262) | (13.4)% | |||||||||||||||||||
Operating income | 143 | 159 | (16) | (10.1)% | ||||||||||||||||||||||
Operating margin | 8.5 | % | 8.1 | % | ||||||||||||||||||||||
Notable items impacting operating income comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | — | 29 | (29) | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,390 | $ | 1,738 | $ | (348) | (20.0) | % | ||||||||||||||||||
Operating income (loss) | (47) | 70 | (117) | NM | ||||||||||||||||||||||
Operating margin | (3.4) | % | 4.0 | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | 15 | — | 15 | |||||||||||||||||||||||
Indirect tax reserve | 23 | — | 23 | |||||||||||||||||||||||
Bad debt reserve | 8 | — | 8 |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 2,113 | $ | 2,386 | $ | (273) | (11.4)% | |||||||||||||||||||
Operating income (loss) | (308) | 337 | (645) | NM | ||||||||||||||||||||||
Operating margin | (14.6) | % | 14.1 | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets (See Footnote 7) | 429 | — | 429 |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 2,950 | $ | 3,028 | $ | (78) | (2.6)% | |||||||||||||||||||
Operating income | 593 | 600 | (7) | (1.2)% | ||||||||||||||||||||||
Operating margin | 20.1 | % | 19.8 | % | ||||||||||||||||||||||
Notable items impacting operating income comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | 30 | 31 | (1) |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,315 | $ | 1,484 | $ | (169) | (11.4)% | |||||||||||||||||||
Operating income | 86 | 90 | (4) | (4.4)% | ||||||||||||||||||||||
Operating margin | 6.5 | % | 6.1 | % | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions, except per share data) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 10,589 | $ | 9,385 | $ | 1,204 | 12.8% | |||||||||||||||||||
Gross profit | 3,363 | 3,084 | 279 | 9.0% | ||||||||||||||||||||||
Gross margin | 31.8 | % | 32.9 | % | ||||||||||||||||||||||
Operating income (loss) | 1,013 | (629) | 1,642 | NM | ||||||||||||||||||||||
Operating margin | 9.6 | % | (6.7) | % | ||||||||||||||||||||||
Interest expense, net | 256 | 274 | (18) | (6.6)% | ||||||||||||||||||||||
Loss on extinguishment of debt | 5 | 20 | (15) | (75.0)% | ||||||||||||||||||||||
Other (income) expense, net | (8) | 78 | (86) | NM | ||||||||||||||||||||||
Income (loss) before income taxes | 760 | (1,001) | 1,761 | NM | ||||||||||||||||||||||
Income tax provision (benefit) | 138 | (235) | 373 | NM | ||||||||||||||||||||||
Income tax rate | 18.2 | % | 23.5 | % | ||||||||||||||||||||||
Net income (loss) | $ | 622 | $ | (766) | $ | 1,388 | NM | |||||||||||||||||||
Diluted earnings (loss) per share - attributable to common shareholders | $ | 1.45 | $ | (1.81) |
Years Ended December 31, | ||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | |||||||||||||||||
Impairment of goodwill and intangible assets (See Footnote 7) | $ | 60 | $ | 1,491 | $ | (1,431) | ||||||||||||||
Restructuring and restructuring-related (See Footnote 4) (a) | 46 | 44 | 2 | |||||||||||||||||
Transactions and other costs (b) | 37 | 26 | 11 |
Years Ended December 31, | ||||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||
Pension-related non-service costs, net (See Footnote 11) | $ | — | $ | 53 | ||||||||||
Foreign exchange losses, net (See Footnote 10) | 8 | 17 | ||||||||||||
(Gain) loss on disposition of businesses (See Footnote 2) | (4) | 9 | ||||||||||||
Other gains, net | (12) | (1) | ||||||||||||
$ | (8) | $ | 78 |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,953 | $ | 1,859 | $ | 94 | 5.1% | |||||||||||||||||||
Operating income (loss) | 159 | (89) | 248 | NM | ||||||||||||||||||||||
Operating margin | 8.1 | % | (4.8) | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | 29 | 320 | (291) | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,738 | $ | 1,539 | $ | 199 | 12.9% | |||||||||||||||||||
Operating income (loss) | 70 | (238) | 308 | NM | ||||||||||||||||||||||
Operating margin | 4.0 | % | (15.5) | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets (See Footnote 7) | — | 287 | (287) |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 2,386 | $ | 2,138 | $ | 248 | 11.6% | |||||||||||||||||||
Operating income (loss) | 337 | (4) | 341 | NM | ||||||||||||||||||||||
Operating margin | 14.1 | % | (0.2) | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets (See Footnote 7) | — | 302 | (302) |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 3,028 | $ | 2,557 | $ | 471 | 18.4 | % | ||||||||||||||||||
Operating income | 600 | 364 | 236 | 64.8 | % | |||||||||||||||||||||
Operating margin | 19.8 | % | 14.2 | % | ||||||||||||||||||||||
Notable items impacting operating income comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | 31 | 100 | (69) |
Years Ended December 31, | ||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Net sales | $ | 1,484 | $ | 1,292 | $ | 192 | 14.9% | |||||||||||||||||||
Operating income (loss) | 90 | (418) | 508 | NM | ||||||||||||||||||||||
Operating margin | 6.1 | % | (32.4) | % | ||||||||||||||||||||||
Notable items impacting operating income (loss) comparability: | ||||||||||||||||||||||||||
Impairment of intangible assets (See Footnote 7) | — | 482 | (482) |
Increase (Decrease) | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | ||||||||||||||||||||||
Cash provided by (used in) operating activities | $ | (272) | $ | 884 | $ | 1,432 | $ | (1,156) | $ | (548) | ||||||||||||||||
Cash provided by (used in) investing activities | 343 | (268) | (228) | 611 | (40) | |||||||||||||||||||||
Cash used in financing activities | (232) | (1,143) | (559) | 911 | (584) | |||||||||||||||||||||
Exchange rate effect on cash, cash equivalents and restricted cash | (13) | (17) | 5 | 4 | (22) | |||||||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | (174) | $ | (544) | $ | 650 | $ | 370 | $ | (1,194) |
Asset (Liability) | |||||
Derivatives designated as effective hedges: | |||||
Cash flow hedges: | |||||
Foreign currency contracts | $ | (4) | |||
Fair value hedges: | |||||
Interest rate swaps | (30) | ||||
Net investment hedges: | |||||
Cross-currency swaps | (2) | ||||
Derivatives not designated as effective hedges: | |||||
Foreign currency contracts | 9 | ||||
Total | $ | (27) |
(in millions) | Total | 1 year | 2-3 years | 4-5 years | After 5 years | |||||||||||||||||||||||||||
Debt (1) | $ | 5,441 | $ | 621 | $ | 748 | $ | 2,485 | $ | 1,587 | ||||||||||||||||||||||
Interest on debt (2) | 2,020 | 257 | 484 | 303 | 976 | |||||||||||||||||||||||||||
Lease obligations (3) | 723 | 145 | 219 | 143 | 216 | |||||||||||||||||||||||||||
Purchase obligations (4) | 1,227 | 436 | 249 | 127 | 415 | |||||||||||||||||||||||||||
Tax obligations (5) | 63 | 28 | 35 | — | — | |||||||||||||||||||||||||||
Total (6) | $ | 9,474 | $ | 1,487 | $ | 1,735 | $ | 3,058 | $ | 3,194 |
Year Ended December 31, | 2022 | 2021 | 2020 | ||||||||||||||
Net sales | $ | $ | $ | ||||||||||||||
Cost of products sold | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Restructuring costs, net | |||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||
Non-operating expenses: | |||||||||||||||||
Interest expense, net | |||||||||||||||||
Loss on extinguishment of debt | |||||||||||||||||
Other (income) expense, net | ( | ( | |||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||
Income tax provision (benefit) | ( | ( | |||||||||||||||
Net income (loss) | $ | $ | $ | ( | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | $ | $ | ( | |||||||||||||
Diluted | $ | $ | $ | ( | |||||||||||||
Year Ended December 31, | 2022 | 2021 | 2020 | ||||||||||||||
Comprehensive income (loss): | |||||||||||||||||
Net income (loss) | $ | $ | $ | ( | |||||||||||||
Comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||
Unrecognized pension and postretirement costs | ( | ||||||||||||||||
Derivative financial instruments | ( | ||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||
Comprehensive income (loss) | ( | ||||||||||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | ( | ||||||||||||||||
Total comprehensive income (loss) attributable to parent | $ | $ | $ | ( |
December 31, | 2022 | 2021 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued compensation | |||||||||||
Other accrued liabilities | |||||||||||
Short-term debt and current portion of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Operating lease liabilities | |||||||||||
Other noncurrent liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Footnote 18) | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock ( | |||||||||||
Common stock ( | |||||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Year Ended December 31, | 2022 | 2021 | 2020 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | $ | $ | ( | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Impairment of goodwill, intangibles and other assets | |||||||||||||||||
(Gain) loss from sale of businesses, net | ( | ( | |||||||||||||||
Deferred income taxes | ( | ( | |||||||||||||||
Stock based compensation expense | |||||||||||||||||
Pension settlement charge | |||||||||||||||||
Loss on extinguishment of debt | |||||||||||||||||
Other, net | ( | ||||||||||||||||
Changes in operating accounts excluding the effects of divestitures: | |||||||||||||||||
Accounts receivable | |||||||||||||||||
Inventories | ( | ( | ( | ||||||||||||||
Accounts payable | ( | ||||||||||||||||
Accrued liabilities and other | ( | ( | |||||||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from sale of divested businesses | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Other investing activities | |||||||||||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from (payments of) short-term debt, net | ( | ||||||||||||||||
Net proceeds from issuance of debt | |||||||||||||||||
Payments on current portion of long-term debt | ( | ( | ( | ||||||||||||||
Payments on long-term debt | ( | ( | |||||||||||||||
Debt extinguishment costs | ( | ( | |||||||||||||||
Repurchase of shares of common stock | ( | ||||||||||||||||
Cash dividends | ( | ( | ( | ||||||||||||||
Acquisition of noncontrolling interests | ( | ||||||||||||||||
Equity compensation activity and other, net | ( | ( | |||||||||||||||
Net cash used in financing activities | ( | ( | ( | ||||||||||||||
Exchange rate effect on cash, cash equivalents and restricted cash | ( | ( | |||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ( | ( | |||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | $ | ||||||||||||||
Supplemental disclosures: | |||||||||||||||||
Restricted cash at beginning of period | $ | $ | $ | ||||||||||||||
Restricted cash at end of period | |||||||||||||||||
Cash paid for income taxes, net of refunds | |||||||||||||||||
Cash paid for interest | |||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Stockholders' Equity Attributable to Parent | Non- controlling Interests | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Impact of change in inventory accounting method | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $ | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Equity compensation, net of tax | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Portion of net loss attributable to noncontrolling interests | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $ | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Equity compensation, net of tax | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Acquisition of noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Portion of net income attributable to noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $ | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Equity compensation, net of tax | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Common stock purchased and retired | ( | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Cumulative Translation Adjustment | Pension and Postretirement Cost | Derivative Financial Instruments | AOCL | ||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified to earnings | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified to earnings | ( | ( | |||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
2022 | 2021 | 2020 | |||||||||||||||
Cumulative translation adjustment (1) | $ | $ | $ | ||||||||||||||
Pension and postretirement benefit plans (2) | |||||||||||||||||
Derivative financial instruments (3) | ( | ( |
2022 | 2021 | 2020 | |||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | ( | |||||||||||||
Unrecognized pension and postretirement costs | ( | ||||||||||||||||
Derivative financial instruments | ( | ||||||||||||||||
Income tax provision (benefit) related to AOCL | $ | ( | $ | $ | ( |
2022 | 2021 | 2020 | |||||||||||||||
Commercial Solutions | $ | $ | $ | ||||||||||||||
Home Appliances | |||||||||||||||||
Home Solutions | |||||||||||||||||
Learning and Development | |||||||||||||||||
Outdoor and Recreation | |||||||||||||||||
Corporate | |||||||||||||||||
$ | $ | $ |
Balance at December 31, 2021 | Restructuring Costs, Net | Payments | Balance at December 31, 2022 | ||||||||||||||||||||
Severance and termination costs | $ | $ | $ | ( | $ | ||||||||||||||||||
Contract termination and other costs | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
Balance at December 31, 2020 | Restructuring Costs, Net | Payments | Foreign Currency and Other | Balance at December 31, 2021 | |||||||||||||||||||||||||
Severance and termination costs | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Contract termination and other costs | ( | ( | |||||||||||||||||||||||||||
$ | $ | $ | ( | $ | ( | $ |
2022 | 2021 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished products | |||||||||||
$ | $ |
For the year ended December 31, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
As Computed | Impact of | As Reported | Impact of | As Reported | Impact of | ||||||||||||||||||||||||||||||||||||||||||||||||
Under LIFO | Change to FIFO | As Reported | Under LIFO | Change to FIFO | As Adjusted | Under LIFO | Change to FIFO | As Adjusted | |||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) including noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less:Total comprehensive income (loss) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) attributable to parent | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | ( | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
As Computed | Impact of | As Reported | Impact of | ||||||||||||||||||||||||||||||||
Under LIFO | Change to FIFO | As Reported | Under LIFO | Change to FIFO | As Adjusted | ||||||||||||||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Inventories | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Deferred income taxes, net | ( | ( | |||||||||||||||||||||||||||||||||
Retained deficit* | ( | ( | ( | ( |
2022 | 2021 | ||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Machinery and equipment | |||||||||||
Less: Accumulated depreciation | ( | ( | |||||||||
$ | $ |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Segments: | Net Book Value at December 31, 2021 | Impairment Charges | Foreign Exchange | Gross Carrying Amount | Accumulated Impairment Charges | Net Book Value | ||||||||||||||||||||||||||||||||
Commercial Solutions | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Home Appliances | ( | |||||||||||||||||||||||||||||||||||||
Home Solutions | ( | ( | ||||||||||||||||||||||||||||||||||||
Learning and Development | ( | ( | ||||||||||||||||||||||||||||||||||||
Outdoor and Recreation | ( | |||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | ( | $ | $ | ( | $ |
December 31, 2021 | ||||||||||||||||||||||||||||||||
Segments: | Net Book Value at December 31, 2020 | Foreign Exchange | Gross Carrying Amount | Accumulated Impairment Charges | Net Book Value | |||||||||||||||||||||||||||
Commercial Solutions | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Home Appliances | ( | |||||||||||||||||||||||||||||||
Home Solutions | ( | |||||||||||||||||||||||||||||||
Learning and Development | ( | ( | ||||||||||||||||||||||||||||||
Outdoor and Recreation | ( | |||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ |
2022 (1) | 2021 (2) | 2020 (3) | |||||||||||||||
Impairment of indefinite-lived tradenames | |||||||||||||||||
Commercial Solutions | $ | $ | $ | ||||||||||||||
Home Appliances | |||||||||||||||||
Home Solutions | |||||||||||||||||
Learning and Development | |||||||||||||||||
Outdoor and Recreation | |||||||||||||||||
$ | $ | $ |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Amortization Periods (In years) | |||||||||||||||||||||||||||||||||||
Tradenames - indefinite life | $ | $ | — | $ | $ | $ | — | $ | N/A | ||||||||||||||||||||||||||||||||
Tradenames - other | ( | ( | |||||||||||||||||||||||||||||||||||||||
Capitalized software | ( | ( | |||||||||||||||||||||||||||||||||||||||
Patents and intellectual property | ( | ( | |||||||||||||||||||||||||||||||||||||||
Customer relationships and distributor channels | ( | ( | |||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
Years ending December 31, | Amount | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter |
2022 | 2021 | ||||||||||
Customer accruals | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Accrued self-insurance liabilities, contingencies and warranty | |||||||||||
Accrued marketing and freight expenses | |||||||||||
Accrued interest expense | |||||||||||
Accrued income taxes | |||||||||||
Other | |||||||||||
$ | $ |
2022 | 2021 | ||||||||||
$ | $ | ||||||||||
Revolving credit facility | |||||||||||
Commercial paper | |||||||||||
Receivables facility | |||||||||||
Other debt | |||||||||||
Total debt | |||||||||||
Short-term debt and current portion of long-term debt | ( | ( | |||||||||
Long-term debt | $ | $ |
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
2022 | 2021 | ||||||||||||||||||||||
Fair Value | Book Value | Fair Value | Book Value | ||||||||||||||||||||
Senior notes | $ | $ | $ | $ |
2022 | 2021 | ||||||||||||||||
Balance Sheet Location | Assets (Liabilities) | ||||||||||||||||
Derivatives designated as effective hedges: | |||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Foreign currency contracts | Other accrued liabilities | ( | ( | ||||||||||||||
Fair Value Hedges: | |||||||||||||||||
Interest rate swaps | Other assets | ||||||||||||||||
Interest rate swaps | Other accrued liabilities | ( | |||||||||||||||
Interest rate swaps | Other noncurrent liabilities | ( | |||||||||||||||
Net Investment Hedges: | |||||||||||||||||
Cross-currency swaps | Prepaid expenses and other current assets | ||||||||||||||||
Cross-currency swaps | Other assets | ||||||||||||||||
Cross-currency swaps | Other noncurrent liabilities | ( | ( | ||||||||||||||
Derivatives not designated as effective hedges: | |||||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | ||||||||||||||||
Foreign currency contracts | Other accrued liabilities | ( | ( | ||||||||||||||
Total | $ | ( | $ | ( |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Gain/(Loss) | Gain/(Loss) | Gain/(Loss) | |||||||||||||||||||||||||||||||||
(in millions) | Recognized in OCL (1) | Reclassified from AOCL to Income | Recognized in OCL (1) | Reclassified from AOCL to Income | Recognized in OCL (1) | Reclassified from AOCL to Income | |||||||||||||||||||||||||||||
Interest rate swaps (2) | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Foreign currency contracts (3) | ( | ||||||||||||||||||||||||||||||||||
Cross-currency swaps (4) | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||
Change in benefit obligation: | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amendments | |||||||||||||||||||||||||||||||||||
Currency translation | ( | ( | |||||||||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Acquisitions and dispositions, net | |||||||||||||||||||||||||||||||||||
Curtailments, settlements and other | ( | ( | |||||||||||||||||||||||||||||||||
Benefit obligation at end of year (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | |||||||||||||||||||||||||||||||||||
Actual return on plan assets | ( | ( | ( | ||||||||||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||||||||||||
Currency translation | ( | ( | |||||||||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Settlements and other | ( | ( | |||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Funded status at end of year | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||
Prepaid benefit cost, included in other assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accrued current benefit cost—other accrued liabilities | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Accrued noncurrent benefit cost— other noncurrent liabilities | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Net amount recognized | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
Assumptions: | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation: | |||||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Long-term rate of compensation increase | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Current health care cost trend rates | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Ultimate health care cost trend rates | % | % | % | % | % | % |
Pension Benefits | |||||||||||
2022 | 2021 | ||||||||||
Projected benefit obligation | $ | $ | |||||||||
Fair value of plan assets |
Pension Benefits | |||||||||||
2022 | 2021 | ||||||||||
Accumulated benefit obligation | $ | $ | |||||||||
Fair value of plan assets |
Pension Benefits | |||||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||
Prior service cost | |||||||||||||||||||||||||||||||||||
Net actuarial loss | |||||||||||||||||||||||||||||||||||
Curtailment, settlement and termination costs | |||||||||||||||||||||||||||||||||||
Total (income) expense | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||||||||||||
Weighted average assumption used to calculate net periodic cost: | |||||||||||||||||||||||||||||||||||
Effective discount rate for benefit obligations | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Effective rate for interest on benefit obligations | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Effective rate for service cost | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Effective rate for interest on service cost | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Long-term rate of return on plan assets | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Long-term rate of compensation increase | % | % | % | % | % | % |
Postretirement Benefits | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Interest cost | $ | $ | $ | ||||||||||||||
Amortization: | |||||||||||||||||
Prior service credit | ( | ||||||||||||||||
Net actuarial gain | ( | ( | ( | ||||||||||||||
Total income | $ | ( | $ | ( | $ | ( | |||||||||||
Assumptions | |||||||||||||||||
Weighted average assumption used to calculate net periodic cost: | |||||||||||||||||
Effective discount rate for benefit obligations | % | % | % | ||||||||||||||
Effective rate for interest on benefit obligations | % | % | % | ||||||||||||||
Effective rate for service cost | % | % | % | ||||||||||||||
Effective rate for interest on service cost | % | % | % |
Plan Assets — Domestic Plans | ||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal | NAV-based assets | Total | ||||||||||||||||||||||||||||||||
Equity securities and funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Fixed income securities and funds | ||||||||||||||||||||||||||||||||||||||
Alternative investments | ||||||||||||||||||||||||||||||||||||||
Cash and other | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Plan Assets — Domestic Plans | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal | NAV-based assets | Total | ||||||||||||||||||||||||||||||||
Equity securities and funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Fixed income securities and funds | ||||||||||||||||||||||||||||||||||||||
Alternative investments | ||||||||||||||||||||||||||||||||||||||
Cash and other | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Plan Assets — International Plans | ||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal | NAV-based assets | Total | ||||||||||||||||||||||||||||||||
Equity securities and funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Fixed income securities and funds | ||||||||||||||||||||||||||||||||||||||
Cash and other | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Plan Assets — International Plans | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal | NAV-based assets | Total | ||||||||||||||||||||||||||||||||
Equity securities and funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Fixed income securities and funds | ||||||||||||||||||||||||||||||||||||||
Cash and other | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Total | |||||
Balance December 31, 2020 | $ | ||||
Unrealized losses | ( | ||||
Balance December 31, 2021 | |||||
Unrealized losses | ( | ||||
Purchases, sales, settlements and other, net | |||||
Balance December 31, 2022 | $ | ||||
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | ||||||||||||||||||||||||||||||
Pension benefits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Postretirement benefits |
2022 | 2021 | 2020 | ||||||||||||||||||
Domestic | $ | ( | $ | ( | $ | ( | ||||||||||||||
Foreign | ( | |||||||||||||||||||
Total | $ | $ | $ | ( | ||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | ( | $ | $ | ( | ||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Total current | ( | ||||||||||||||||
Deferred: | |||||||||||||||||
Federal | ( | ( | |||||||||||||||
State | ( | ( | ( | ||||||||||||||
Foreign | ( | ( | |||||||||||||||
Total deferred | ( | ( | |||||||||||||||
Total income tax provision (benefit) | $ | ( | $ | $ | ( |
2022 | 2021 | 2020 | |||||||||||||||
Statutory rate | % | % | % | ||||||||||||||
Add (deduct) effect of: | |||||||||||||||||
State income taxes, net of federal income tax effect | ( | ( | |||||||||||||||
U.S. foreign inclusions and foreign tax credit (1) | ( | ||||||||||||||||
Foreign rate differential | ( | ( | |||||||||||||||
Change in uncertain tax positions | |||||||||||||||||
Change in valuation allowance reserve | ( | ( | |||||||||||||||
Impairments | ( | ||||||||||||||||
Sale of businesses | ( | ||||||||||||||||
Capital loss | ( | ||||||||||||||||
Reversal of outside basis difference | ( | ||||||||||||||||
Non-deductible compensation | ( | ||||||||||||||||
Other taxes | ( | ||||||||||||||||
U.S. income inclusions on asset transfers | ( | ||||||||||||||||
Foreign exchange | |||||||||||||||||
Other | ( | ( | |||||||||||||||
Effective rate | ( | % | % | % | |||||||||||||
2022 | 2021 | ||||||||||
Deferred tax assets: | |||||||||||
Accruals | $ | $ | |||||||||
Inventory | |||||||||||
Pension and postretirement benefits | |||||||||||
Net operating losses | |||||||||||
Foreign tax credits | |||||||||||
Capital loss carryforward | |||||||||||
Operating lease liabilities | |||||||||||
Other | |||||||||||
Total gross deferred tax assets | |||||||||||
Less valuation allowance | ( | ( | |||||||||
Net deferred tax assets after valuation allowance | |||||||||||
Deferred tax liabilities: | |||||||||||
Accelerated depreciation | ( | ( | |||||||||
Amortizable intangibles | ( | ( | |||||||||
Outside basis differences | ( | ( | |||||||||
Operating lease assets | ( | ( | |||||||||
U.S. foreign inclusion recapture | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total gross deferred tax liabilities | ( | ( | |||||||||
Net deferred tax assets | $ | $ |
2022 | 2021 | |||||||||||||
Noncurrent deferred tax assets | $ | $ | ||||||||||||
Noncurrent deferred tax liabilities | ( | ( | ||||||||||||
Total | $ | $ |
2022 | 2021 | 2020 | |||||||||||||||
Unrecognized tax benefits, January 1, | $ | $ | $ | ||||||||||||||
Increases (decreases): | |||||||||||||||||
Increases in tax positions for prior years | |||||||||||||||||
Decreases in tax positions for prior years | ( | ( | |||||||||||||||
Increase in tax positions for the current period | |||||||||||||||||
Settlements with taxing authorities | ( | ( | |||||||||||||||
Lapse of statute of limitations | ( | ( | ( | ||||||||||||||
Cumulative translation adjustments | ( | ||||||||||||||||
Unrecognized tax benefits, December 31, | $ | $ | $ |
Classification | 2022 | 2021 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Operating leases | Operating lease assets | $ | $ | |||||||||||||||||
Finance leases | ||||||||||||||||||||
Total lease assets | $ | $ | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating leases | $ | $ | ||||||||||||||||||
Finance leases | ||||||||||||||||||||
Noncurrent | ||||||||||||||||||||
Operating leases | Operating lease liabilities | |||||||||||||||||||
Finance leases | ||||||||||||||||||||
Total lease liabilities | $ | $ | ||||||||||||||||||
2022 | 2021 | |||||||||||||
Operating lease cost: | ||||||||||||||
Operating lease cost (1) | $ | $ | ||||||||||||
Variable lease costs (2) | ||||||||||||||
Finance lease cost | ||||||||||||||
Amortization of leased assets | ||||||||||||||
2022 | 2021 | ||||||||||
Weighted-average remaining lease term (years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | |||||||||||
Finance leases |
2022 | 2021 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Financing cash flows from finance leases | |||||||||||
Right of use assets obtained in exchange for lease liabilities: | |||||||||||
Operating leases | |||||||||||
Operating Leases | Finance Leases | ||||||||||
2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: imputed interest | ( | ||||||||||
Present value of lease liabilities | $ | $ |
2022 | 2021 | 2020 | |||||||||||||||
Basic weighted-average shares outstanding | |||||||||||||||||
Dilutive securities (1) | |||||||||||||||||
Diluted weighted-average shares outstanding |
Shares | Weighted- Average Exercise Price Per Share | Weighted Average Remaining Life (years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Outstanding at December 31, 2022 | $ | ||||||||||||||||||||||
Options exercisable, end of year | $ |
2022 | 2021 | ||||||||||
Expected life in years | |||||||||||
Risk-free interest rate | % | % | |||||||||
Expected volatility | % | % | |||||||||
Expected dividend yield | % | % | |||||||||
Restricted Stock Units | Weighted- Average Grant Date Fair Value Per Share | ||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Grant adjustment (1) | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding at December 31, 2022 | $ | ||||||||||
Expected to vest at December 31, 2022 | $ |
(in millions) | Unrecognized Compensation Cost | Weighted Average Period of Expense Recognition (in years) | ||||||
Restricted stock units | $ | |||||||
Stock options | ||||||||
Total | $ | |||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Investment securities, including mutual funds |
2022 | 2021 | ||||||||||
Level 3 | |||||||||||
Indefinite-lived intangibles | |||||||||||
$ | $ |
Segment | Key Brands | Description of Primary Products | ||||||||||||
Commercial Solutions | Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, and Spontex | Commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions | ||||||||||||
Home Appliances | Calphalon, Crockpot, Mr. Coffee, Oster and Sunbeam | Household products, including kitchen appliances | ||||||||||||
Home Solutions | Ball (1), Calphalon, Chesapeake Bay Candle, FoodSaver, Rubbermaid, Sistema, WoodWick and Yankee Candle | Food and home storage products; fresh preserving products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products | ||||||||||||
Learning and Development | Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex, Waterman and X-Acto | Baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products and labeling solutions | ||||||||||||
Outdoor and Recreation | Campingaz, Coleman, Contigo, ExOfficio, and Marmot | Products for outdoor and outdoor-related activities |
2022 | 2021 | 2020 | ||||||||||||||||||
Net sales (1) | ||||||||||||||||||||
Commercial Solutions (3) | $ | $ | $ | |||||||||||||||||
Home Appliances | ||||||||||||||||||||
Home Solutions | ||||||||||||||||||||
Learning and Development | ||||||||||||||||||||
Outdoor and Recreation | ||||||||||||||||||||
$ | $ | $ |
2022 | 2021 | 2020 | ||||||||||||||||||
Operating income (loss) (2) | ||||||||||||||||||||
Commercial Solutions (3) | $ | $ | $ | ( | ||||||||||||||||
Home Appliances | ( | ( | ||||||||||||||||||
Home Solutions | ( | ( | ||||||||||||||||||
Learning and Development | ||||||||||||||||||||
Outdoor and Recreation | ( | |||||||||||||||||||
Corporate | ( | ( | ( | |||||||||||||||||
$ | $ | $ | ( |
2022 | 2021 | 2020 | ||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Commercial Solutions (3) | $ | $ | $ | |||||||||||||||||
Home Appliances | ||||||||||||||||||||
Home Solutions | ||||||||||||||||||||
Learning and Development | ||||||||||||||||||||
Outdoor and Recreation | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
$ | $ | $ |
2022 | 2021 | 2020 | ||||||||||||||||||
Impairment of goodwill and intangible assets | ||||||||||||||||||||
Commercial Solutions | $ | $ | $ | |||||||||||||||||
Home Appliances | ||||||||||||||||||||
Home Solutions | ||||||||||||||||||||
Learning and Development | ||||||||||||||||||||
Outdoor and Recreation | ||||||||||||||||||||
$ | $ | $ |
2022 | 2021 | 2020 | ||||||||||||||||||
Capital expenditures | ||||||||||||||||||||
Commercial Solutions (3) | $ | $ | $ | |||||||||||||||||
Home Appliances | ||||||||||||||||||||
Home Solutions | ||||||||||||||||||||
Learning and Development | ||||||||||||||||||||
Outdoor and Recreation | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
$ | $ | $ |
December 31, 2022 | December 31, 2021 | |||||||||||||
Segment assets | ||||||||||||||
Commercial Solutions (3) | $ | $ | ||||||||||||
Home Appliances | ||||||||||||||
Home Solutions | ||||||||||||||
Learning and Development | ||||||||||||||
Outdoor and Recreation | ||||||||||||||
Corporate | ||||||||||||||
$ | $ |
Geographic area information | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net Sales (1) (4) | |||||||||||||||||
United States | $ | $ | $ | ||||||||||||||
Canada | |||||||||||||||||
Total North America | |||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||
Latin America | |||||||||||||||||
Asia Pacific | |||||||||||||||||
Total International | |||||||||||||||||
$ | $ | $ |
2022 | 2021 | 2020 | |||||||||||||||||||||
Commercial | $ | $ | $ | ||||||||||||||||||||
Connected Home and Security | |||||||||||||||||||||||
Commercial Solutions | |||||||||||||||||||||||
Home Appliances | |||||||||||||||||||||||
Food | |||||||||||||||||||||||
Home Fragrance | |||||||||||||||||||||||
Home Solutions | |||||||||||||||||||||||
Baby | |||||||||||||||||||||||
Writing | |||||||||||||||||||||||
Learning and Development | |||||||||||||||||||||||
Outdoor and Recreation | |||||||||||||||||||||||
TOTAL | $ | $ | $ | ||||||||||||||||||||
North America | |||||||||||||||||||||||
Commercial Solutions | $ | $ | $ | ||||||||||||||||||||
Home Appliances | |||||||||||||||||||||||
Home Solutions | |||||||||||||||||||||||
Learning and Development | |||||||||||||||||||||||
Outdoor and Recreation | |||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||
International | |||||||||||||||||||||||
Commercial Solutions | $ | $ | $ | ||||||||||||||||||||
Home Appliances | |||||||||||||||||||||||
Home Solutions | |||||||||||||||||||||||
Learning and Development | |||||||||||||||||||||||
Outdoor and Recreation | |||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||
TOTAL | |||||||||||||||||||||||
Commercial Solutions | $ | $ | $ | ||||||||||||||||||||
Home Appliances | |||||||||||||||||||||||
Home Solutions | |||||||||||||||||||||||
Learning and Development | |||||||||||||||||||||||
Outdoor and Recreation | |||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||
For the three months ended (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Impact | Impact | Impact | Impact | ||||||||||||||||||||||||||||||||||||||||||||
As | of | of Change | As | As | of | of Change | As | ||||||||||||||||||||||||||||||||||||||||
Reported | Revision | to FIFO | Adjusted | Reported | Revision | to FIFO | Adjusted | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Cost of products sold | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income | |||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | $ | $ | $ |
For the three months ended (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Impact | Impact | As Computed | Impact | Impact | |||||||||||||||||||||||||||||||||||||||||||
As | of | of Change | As | Under | of | of Change | As | ||||||||||||||||||||||||||||||||||||||||
Reported | Revision | to FIFO | Adjusted | LIFO | Revision | to FIFO | Reported | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Cost of products sold | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Diluted | $ | $ | $ | ( | $ | ( |
Three Months Ended (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Impact of | As Reported | Impact of | As Reported | Impact of | As Reported | Impact of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under LIFO | Change to FIFO | As Adjusted | Under LIFO | Change to FIFO | As Adjusted | Under LIFO | Change to FIFO | As Adjusted | Under LIFO | Change to FIFO | As Adjusted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of products sold | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | $ | $ | $ | $ | $ | $ | $ |
Exhibit Number | Description of Exhibit | ||||
ITEM 3—ARTICLES OF INCORPORATION AND BY-LAWS | |||||
3.1 | |||||
3.2 | |||||
3.3 | |||||
ITEM 4 — INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES | |||||
4.1† | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
4.5 | |||||
4.6 | |||||
4.7 | |||||
4.8 | |||||
4.9 | |||||
4.10 | |||||
4.11 | |||||
4.12 | |||||
4.13 | |||||
4.14 | |||||
4.15 | |||||
4.16 | |||||
Pursuant to item 601(b)(4)(iii)(A) of Regulation S-K, the Company is not filing certain documents. The Company agrees to furnish a copy of each such document upon the request of the Commission. | |||||
ITEM 10 — MATERIAL CONTRACTS | |||||
10.1* | |||||
10.2* | |||||
10.3* |
10.4* | |||||
10.5* | |||||
10.6* | |||||
10.7* | |||||
10.8* | |||||
10.9* | |||||
10.10* | |||||
10.11* | |||||
10.12* | |||||
10.13* | |||||
10.14* | |||||
10.15* | |||||
10.16* | |||||
10.17* | |||||
10.18* | |||||
10.19* | |||||
10.20* | |||||
10.21* | |||||
10.22* | |||||
10.23* | |||||
10.24* | |||||
10.25* | |||||
10.26* | |||||
10.27* | |||||
10.28* | |||||
10.29* | |||||
10.30*† | |||||
10.31* | |||||
10.32* | |||||
10.33* | |||||
10.34* | |||||
10.35*† | |||||
10.36* | |||||
10.37* | |||||
10.38* | |||||
10.39* | |||||
10.40* | |||||
10.41* | |||||
10.42* | |||||
10.43* | |||||
10.44* | |||||
10.45* | |||||
10.46* | |||||
10.47* | |||||
10.48* | |||||
10.49* | |||||
10.50* | |||||
10.51* | |||||
10.52* | |||||
10.53* | |||||
10.54* | |||||
10.55* | |||||
10.56* | |||||
10.57* | |||||
10.58* | |||||
10.59* | |||||
10.60* | |||||
10.61* | |||||
10.62* | |||||
10.63* | |||||
10.64* | |||||
10.65* | |||||
10.66* | |||||
10.67* | |||||
10.68* | |||||
10.69* | |||||
10.70* | |||||
10.71* | |||||
10.72* | |||||
10.73 | |||||
10.74 | |||||
10.75 | |||||
10.76 | |||||
10.77 | |||||
10.78 | |||||
10.79 | |||||
10.80 | |||||
10.81 | |||||
10.82 | |||||
ITEM 18 — PREFERABILITY LETTER REGARDING CHANGE IN ACCOUNTING PRINCIPLE | |||||
18.1† | |||||
ITEM 21 — SUBSIDIARIES OF THE REGISTRANT | |||||
21.1† | |||||
ITEM 23 — CONSENT OF EXPERTS AND COUNSEL | |||||
23.1† | |||||
ITEM 31 — RULE 13a-14(a)/15d-14(a) CERTIFICATIONS | |||||
31.1† | |||||
31.2† | |||||
ITEM 32 — SECTION 1350 CERTIFICATIONS | |||||
32.1† | |||||
32.2† | |||||
ITEM 101 — INTERACTIVE DATA FILE | |||||
101.INS | Inline XBRL Instance Document | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||
† | Filed herewith | ||||
* | Represents management contracts and compensatory plans and arrangements. |
NEWELL BRANDS INC. Registrant | ||||||||
By | /s/ Mark J. Erceg | |||||||
Mark J. Erceg | ||||||||
Title | Chief Financial Officer | |||||||
Date | February 15, 2023 |
Signature | Title | |||||||
/s/ Ravichandra K. Saligram | Chief Executive Officer and Director | |||||||
Ravichandra K. Saligram | ||||||||
/s/ Mark J. Erceg | Chief Financial Officer | |||||||
Mark J. Erceg | ||||||||
/s/ Jeffrey M. Sesplankis | Chief Accounting Officer | |||||||
Jeffrey M. Sesplankis | ||||||||
/s/ Patrick D. Campbell | Chairman of the Board | |||||||
Patrick D. Campbell | ||||||||
/s/ Bridget Ryan Berman | Director | |||||||
Bridget Ryan Berman | ||||||||
/s/ James R. Craigie | Director | |||||||
James R. Craigie | ||||||||
/s/ Brett Icahn | Director | |||||||
Brett Icahn | ||||||||
/s/ Jay L. Johnson | Director | |||||||
Jay L. Johnson | ||||||||
/s/ Gerardo I. Lopez | Director | |||||||
Gerardo I. Lopez | ||||||||
/s/ Courtney R. Mather | Director | |||||||
Courtney R. Mather | ||||||||
/s/ Judith A. Sprieser | Director | |||||||
Judith A. Sprieser | ||||||||
/s/ Stephanie Stahl | Director | |||||||
Stephanie Stahl | ||||||||
/s/ Robert A. Steele | Director | |||||||
Robert A. Steele | ||||||||
Balance at Beginning of Period | Provision | Other | Write-offs/ Disposition | Balance at End of Period | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Reserve for Expected Credit Losses: | |||||||||||||||||||||||||||||
Year Ended December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Year Ended December 31, 2021 | ( | ( | |||||||||||||||||||||||||||
Year Ended December 31, 2020 | ( |
Balance at Beginning of Period | Provision | Other | Write-offs/ Disposition | Balance at End of Period | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Inventory Reserves: (including excess, obsolescence and shrink reserves) | |||||||||||||||||||||||||||||
Year Ended December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Year Ended December 31, 2021 | ( | ( | |||||||||||||||||||||||||||
Year Ended December 31, 2020 | ( |
Balance at Beginning of Period | Provision | Other | Write-offs/ Recoveries | Balance at End of Period | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Income Tax Valuation Allowance | |||||||||||||||||||||||||||||
Year Ended December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Year Ended December 31, 2021 | ( | ( | |||||||||||||||||||||||||||
Year Ended December 31, 2020 | ( |
Prior Plan | Date Employees Eligible to Participate | Prior Plan Merger Date | ||||||
Pacific Trade International 401(k) Profit Sharing Plan and Trust | 01/01/2019 | 12/31/2022 | ||||||
Chesapeake Bay Candle LLC 401(k) Profit Sharing Plan and Trust | 01/01/2019 | 12/31/2022 |
Pacific Trade International 401(k) Profit Sharing Plan and Trust | |||||
Employee Before-Tax | Pre-Tax Sub-Account | ||||
Roth Elective Deferrals | Roth Sub-Account | ||||
Non-Safe Harbor Company Match | Non-Safe Harbor Matching Sub-Account | ||||
Safe Harbor Match | Safe Harbor Matching Sub-Account | ||||
Employer Profit Sharing | Employer Profit Sharing Sub-Account | ||||
Qualified Non-Elective Contributions | QNEC Sub-Account | ||||
Rollover | Rollover Sub-Account | ||||
Chesapeake Bay Candle LLC 401(k) Profit Sharing Plan and Trust | |||||
Employee Before-Tax | Pre-Tax Sub-Account | ||||
Roth Elective Deferrals | Roth Sub-Account | ||||
Non-Safe Harbor Company Match | Non-Safe Harbor Matching Sub-Account | ||||
Safe Harbor Match | Safe Harbor Matching Sub-Account | ||||
Employer Profit Sharing | Employer Profit Sharing Sub-Account | ||||
Qualified Non-Elective Contributions | QNEC Sub-Account | ||||
Rollover | Rollover Sub-Account |
Plan Name, Number | Newell Brands Employee Severance Plan, a component plan under the Newell Brands Employee Health and Welfare Plan. | ||||
Plan Number | 506 | ||||
Employer Identification Number | EIN: 36-1953130 | ||||
Plan Sponsor | Newell Operating Company 6655 Peachtree Dunwoody Road Atlanta, GA 30328 (770) 418-7000 | ||||
Plan Year | January 1 through December 31. | ||||
Plan Administrator | Newell Operating Company U.S. Benefits Administration Committee. c/o Newell Operating Company 6655 Peachtree Dunwoody Road Atlanta, GA 30328 (770) 418-7000 | ||||
Agent for Service of Legal Process | Newell Operating Company U.S. Benefits Administration Committee c/o Newell Operating Company 6655 Peachtree Dunwoody Road Atlanta, GA 30328 (770) 418-7000 |
EXHIBIT 21.1 | |||||
NEWELL BRANDS INC. AND SUBSIDIARIES | |||||
SUBSIDIARIES OF THE REGISTRANT | |||||
DECEMBER 31, 2022 | |||||
NAME OF ENTITY | JURISDICTION |
Allegheny International Exercise Co. | United States | ||||
Allegre Puériculture S.A.S. | France | ||||
Alltrista Limited | Canada | ||||
American Household, Inc. | United States | ||||
Aparatos Electronicos de Saltillo, S.A. de C.V. | Mexico | ||||
Application des Gaz S.A.S. | France | ||||
Aprica (Shanghai) Trading Co., Ltd. (In Liquidation) | China | ||||
Aprica (Zhongshan) Ltd. | China | ||||
Aprica Childcare Institute-Aprica Ikuji Kenkyush Kabushiki Kaisha | Japan | ||||
Baby Jogger, LLC | United States | ||||
Bernardin Ltd. | Canada | ||||
Berol Corporation | United States | ||||
B-F Processing LLC | United States | ||||
Bond Gifting, Inc. | United States | ||||
Camping Gaz (Deutschland) GmbH | Germany | ||||
Camping Gaz (Deutschland) GmbH - Hungen Branch | Germany | ||||
Camping Gaz (Suisse) SA | Switzerland | ||||
Camping Gaz CS S.R.O. | Czech Republic | ||||
Camping Gaz Italia S.r.l. | Italy | ||||
Canada GP Holdings LLC | United States | ||||
Cardinal Finco Inc. | United States | ||||
Cavoma LP | Cayman Islands | ||||
Cavoma Ltd. | Cayman Islands | ||||
CC Outlet, Inc. | United States | ||||
Chemetron Corporation | United States | ||||
Chemetron Investments, Inc. | United States | ||||
Chiltern Thermoforming Limited (in liquidation) | United Kingdom | ||||
Coleman (Deutschland) GmbH | Germany | ||||
Coleman Benelux B.V. | Netherlands | ||||
Coleman Benelux Holdings B.V. | Netherlands | ||||
Coleman EMEA GmbH | Germany | ||||
Coleman International Holdings, LLC | United States | ||||
Coleman Latin America, LLC | United States | ||||
Coleman UK Limited | United Kingdom | ||||
Coleman Venture Capital, Inc. | United States | ||||
Coleman Worldwide Corporation | United States | ||||
Comercial Berol, S. A. de C.V. | Mexico | ||||
Detector Technology Limited (In Liquidation) | Hong Kong | ||||
Dongguan HuiXun Electrical Products Co., Ltd. | China | ||||
Dymo BV | Belgium | ||||
DYMO Europe Holdings LLC | United States | ||||
Dymo Holdings BV | Belgium | ||||
El Rayo de Sol de Chihuahua, S.A. de C.V. | Mexico | ||||
El Sol Partes, S.A. de C.V. | Mexico | ||||
Eliskim, Inc. | United States | ||||
Elmer’s & Toagosei Co. | United States |
Elmer’s Products Canada, Corporation | Canada | ||||
Embassy Products LLC | United States | ||||
Esteem Industries Limited | Hong Kong | ||||
Europe Brands S.à r.l. | Luxembourg | ||||
Europe Brands Sarl, US Branch | United States | ||||
Facel S.A.S. | France | ||||
Fine Writing Pens of London Limited | United Kingdom | ||||
Fountain Holdings Limited | United Kingdom | ||||
Gingham, LLC | United States | ||||
Graco Children's Products Hong Kong, Limited (In liquidation) | Hong Kong | ||||
Graco Children's Products Inc. | United States | ||||
Hereford NWL Limited | United Kingdom | ||||
Hogar Plus, SA | Spain | ||||
Holmes Products (Europe) Limited | United Kingdom | ||||
Holmes Products (Europe) Limited – French Branch (Jarden Consumer Solutions Europe) | France | ||||
Home Fragrance Italia S.r.l. | Italy | ||||
Hydrosurge Equipment Company, LLC | United States | ||||
Ignite Holdings II, LLC | United States | ||||
Ignite Holdings, LLC | United States | ||||
Ignite Hong Kong, Limited | Hong Kong | ||||
Industrias Corama S.A. de C.V. | Mexico | ||||
Infoswitch, Inc. | United States | ||||
Integrated Specialties, Inc. | United States | ||||
ISP SCI | France | ||||
Jarden Consumer Solutions (Asia) Limited | Hong Kong | ||||
Jarden Consumer Solutions (Europe) Limited | United Kingdom | ||||
Jarden Consumer Solutions of India Private Limited | India | ||||
Jarden del Peru, S.A.C. | Peru | ||||
Jarden LLC | United States | ||||
Jarden Lux Finco S.à r.l. | Luxembourg | ||||
Jarden Lux Finco Sarl (US Branch) | United States | ||||
Jarden Lux Holdings S.à r.l. | Luxembourg | ||||
Jarden Lux II S.à r.l. | Luxembourg | ||||
Jarden Receivables, LLC | United States | ||||
Jarden Switzerland Sarl | Switzerland | ||||
JCS Brasil Eletrodomésticos S.A. | Brazil | ||||
JCS Brasil Eletrodomesticos S.A. - Branch (Factory - CNPJ/MF: 03.106.170/0002-24) | Brazil | ||||
JCS Brasil Eletrodomesticos S.A. - Branch (Factory - CNPJ/MF: 03.106.170/0005-77) | Brazil | ||||
JCS Brasil Eletrodomesticos S.A. - Branch (Office and Showroom - CNPJ/MF:03.106.170/0004-96) | Brazil | ||||
JCS Brasil Eletrodomesticos S.A. - Branch (Warehouse - CNPJ/MF: 03.106.170/0003-05) | Brazil | ||||
Kansas Acquisition Corp. | United States | ||||
L.A. Services, Inc. | United States | ||||
Laser Acquisition Corp. | United States | ||||
Leviathan Aqueduct Holdings B.V. | Netherlands | ||||
Leviathan NES Holdings B.V. | Netherlands | ||||
Leviathan NES LLC | United States | ||||
Leviathan NWL Investments B.V. | Netherlands | ||||
Leviathan NWL LLC | United States | ||||
Lillo do Brasil Indústria e Comércio de Productos Infantis Ltda. | Brazil | ||||
Lillo do Brasil lndustria e Comercio de Produtos lnfantis Ltda.- Branch (Manufacturing - CNPJ/MF 08.895.390/0001-17) | Brazil | ||||
Lillo do Brasil lndustria e Comercio de Produtos lnfantis Ltda.- Branch (Office - CNPJ/MF 08.895.390/0002-06) | Brazil | ||||
Luxembourg Brands S.à r.l. | Luxembourg | ||||
Magnetics and Electronics, Inc. | United States | ||||
Mapa Babycare Company Limited - Yau Tong Branch | Hong Kong | ||||
Mapa Gloves SDN BHD | Malaysia |
Mapa GmbH | Germany | ||||
Mapa S.A.S. | France | ||||
Mapa Spontex CE s.r.o | Czech Republic | ||||
Mapa Spontex Iberica SAU | Spain | ||||
Mapa Spontex Italia S.p.A. | Italy | ||||
Mapa Spontex Trading (Shanghai) Company Limited | China | ||||
Mapa Spontex Trading (Shanghai) Company Limited - Changning Branch (In liquidation) | China | ||||
Mapa Spontex Trading SDN BHD | Malaysia | ||||
Mapa Spontex UK Limited | United Kingdom | ||||
Mapa Virulana SAIC | Argentina | ||||
Marmot Mountain Canada Ltd. | Canada | ||||
Marmot Mountain Europe GmbH | Germany | ||||
Marmot Mountain Europe GmbH (UK Branch) | United Kingdom | ||||
Marmot Mountain, LLC | United States | ||||
Montey Corporation | United States | ||||
Montey Credit Corporation | United States | ||||
Mucambo SA | Brazil | ||||
Mucambo SA - Branch (Factory/Distribution - CNPJ/ MF: 15.107.246/ 0004-87) | Brazil | ||||
Mucambo SA - Branch (Office - CNPJ/ MF: 15.107.246/ 0008-00) | Brazil | ||||
Mucambo SA - Branch (Warehouse/Distribution/Factory - CNPJ/MF: 15.107.246/0017-00) | Brazil | ||||
NBS Holdings | New Zealand | ||||
New Bra-Con Industries, Inc. | United States | ||||
Newell Australia Pty. Limited | Australia | ||||
Newell Brands APAC Sourcing Limited | Hong Kong | ||||
Newell Brands APAC Treasury Limited | Hong Kong | ||||
Newell Brands Brasil Ltda. | Brazil | ||||
Newell Brands Brasil Ltda. - Branch (Distribution Center/Warehouse - CNPJ/MF: 60.594.538/0009-50) | Brazil | ||||
Newell Brands Brasil Ltda. - Branch (Factory -CNPJ/MF: 60.594.538/0002-84) | Brazil | ||||
Newell Brands Brasil Ltda. - Branch (Oster- CNPJ/MF: 60.594.538/0003-65) | Brazil | ||||
Newell Brands Brasil Ltda. - Branch (Warehouse - CNPJ/MF: 60.594.538/0015-07) | Brazil | ||||
Newell Brands Canada Holding ULC | Canada | ||||
Newell Brands Canada ULC | Canada | ||||
Newell Brands Cayman III Ltd. | Cayman Islands | ||||
Newell Brands Cayman Ltd. | Cayman Islands | ||||
Newell Brands Community Fund, Inc. | United States | ||||
Newell Brands de Argentina S.A. | Argentina | ||||
Newell Brands de Chile Limitada | Chile | ||||
Newell Brands de Colombia S.A.S. | Colombia | ||||
Newell Brands de Colombia S.A.S. - Cali Branch | Colombia | ||||
Newell Brands de Mexico, S.A. de C.V. | Mexico | ||||
Newell Brands de Peru, S.A.C. | Peru | ||||
Newell Brands Distribution LLC | United States | ||||
Newell Brands Distribution México, S.A. de C.V. | Mexico | ||||
Newell Brands DTC, Inc. | United States | ||||
Newell Brands HK Holdings Limited | Hong Kong | ||||
Newell Brands HK Sourcing Limited | Hong Kong | ||||
Newell Brands Inc. | United States | ||||
Newell Brands Industries LLC | United States | ||||
Newell Brands International I B.V. (in liquidation) | Netherlands | ||||
Newell Brands International II B.V. | Netherlands | ||||
Newell Brands International III B.V. | Netherlands | ||||
Newell Brands International LLC | United States | ||||
Newell Brands Investment II, Inc. | United States | ||||
Newell Brands Ireland Services Designated Activity Company | Ireland | ||||
Newell Brands Japan G.K. | Japan | ||||
Newell Brands Lux Holding LP | United States |
Newell Brands Lux Holdings S.a.r.l. | Luxembourg | ||||
Newell Brands Lux III S.a.r.l. | Luxembourg | ||||
Newell Brands Lux Real Estate Holdings S.à r.l. | Luxembourg | ||||
Newell Brands Middle East FZCO (in liquidation) | United Arab Emirates | ||||
Newell Brands Products (Shanghai) Co., Ltd. | China | ||||
Newell Brands Products (Shanghai) Co., Ltd. – Changning Branch | China | ||||
Newell Brands Sourcing Corp. | United States | ||||
Newell Brands Technical Center (Guangzhou) Company Limited | China | ||||
Newell Brands Technical Center (Guangzhou) Company Limited - Dongguan Branch | China | ||||
Newell Brands Technical Center (Guangzhou) Company Limited - Ningbo Branch | China | ||||
Newell Brands Technical Center (Guangzhou) Company Limited - Shanghai Branch | China | ||||
Newell Brands Technical Center (Guangzhou) Company Limited -Shenzhen Branch | China | ||||
Newell Brands UK Limited | United Kingdom | ||||
Newell Europe Sàrl | Switzerland | ||||
Newell Finance Company | United States | ||||
Newell Holdings Limited | United Kingdom | ||||
Newell Insurance Designated Activity Company | Ireland | ||||
Newell International Capital SAS | France | ||||
Newell International Finance Co Limited Partnership | United Kingdom | ||||
Newell Investments France SAS | France | ||||
Newell Investments Inc. | United States | ||||
Newell Investments Inc. (Korea Branch) | Korea | ||||
Newell Luxembourg Finance S.à r.l. | Luxembourg | ||||
Newell Luxembourg Finance Sarl (US Branch) | United States | ||||
Newell New Zealand Limited | New Zealand | ||||
Newell Operating Company | United States | ||||
Newell Poland Services Sp. z o.o. | Poland | ||||
Newell Puerto Rico, Ltd. | United States | ||||
Newell Rubbermaid (M) Sdn. Bhd | Malaysia | ||||
Newell Rubbermaid (Thailand) Co., Ltd. | Thailand | ||||
Newell Rubbermaid Asia Pacific Limited | Hong Kong | ||||
Newell Rubbermaid Asia Pacific Limited, Philippine Branch | Philippines | ||||
Newell Rubbermaid Czech Republic s.r.o. | Czech Republic | ||||
Newell Rubbermaid Development LLC | United States | ||||
Newell Rubbermaid Europe LLC | United States | ||||
Newell Rubbermaid German Holding GmbH | Germany | ||||
Newell Rubbermaid Global Sourcing Asia Ltd – India Branch | India | ||||
Newell Rubbermaid Global Sourcing Asia Ltd. | Cayman Islands | ||||
Newell Rubbermaid Global Sourcing Asia Ltd. - Taipei Branch | Taiwan | ||||
Newell Rubbermaid Holding B.V. | Netherlands | ||||
Newell Rubbermaid Holdings LLC | United States | ||||
Newell Rubbermaid Hungary Trading Ltd. | Hungary | ||||
Newell Rubbermaid Kirtasiye Ticaret ve Sanayi Limited Sirketi | Turkey | ||||
Newell Rubbermaid Mexicali, S. de R.L. de C.V. | Mexico | ||||
Newell Rubbermaid Mexico Holding LLC | United States | ||||
Newell Rubbermaid Panama S. de R.L. | Panama | ||||
Newell Rubbermaid Panama, S. de R.L. (Costa Rica Branch) | Costa Rica | ||||
Newell Rubbermaid Sweden AB | Sweden | ||||
Newell Rubbermaid Trading (Shanghai) Co., Ltd. | China | ||||
Newell Rubbermaid UK Holdings Limited | U.K. | ||||
Newell Rubbermaid UK Production | United Kingdom | ||||
Newell Rubbermaid UK Services Limited | United Kingdom | ||||
Newell Rubbermaid US Finance Co. | United States | ||||
Newell Spain Holding, S.L. | Spain | ||||
Newell Spain Services, S.L. | Spain | ||||
Newell Spain, S.L. | Spain |
Nippon Coleman, Inc. | United States | ||||
Northern Aqueduct Holdings LLC | United States | ||||
Northern Aqueduct I, B.V. | Netherlands | ||||
Northern Aqueduct II, B.V. | Netherlands | ||||
NR Canada Holding ULC | Canada | ||||
NR Capital Co. | Canada | ||||
NR Finance Co. | Canada | ||||
NWL Austria GmbH | Austria | ||||
NWL Belgium BV | Belgium | ||||
NWL Belgium Production BV | Belgium | ||||
NWL Belgium Services BV | Belgium | ||||
NWL Cayman Holdings Ltd. | Cayman Islands | ||||
NWL Denmark Services Aps | Denmark | ||||
NWL Europe Holdings LLC | United States | ||||
NWL European Finance S.à r.l. | Luxembourg | ||||
NWL Finland OY | Finland | ||||
NWL France Production SAS | France | ||||
NWL France SAS | France | ||||
NWL France Services SAS | France | ||||
NWL Germany GmbH | Germany | ||||
NWL Germany Office Products GmbH | Germany | ||||
NWL Germany Production GmbH | Germany | ||||
NWL Germany Services GmbH | Germany | ||||
NWL GP Holdings LLC | United States | ||||
NWL Hamburg Services GmbH | Germany | ||||
NWL Irish Holdings Ltd. | Cayman Islands | ||||
NWL Italy S.r.l. | Italy | ||||
NWL Luxembourg S.à r.l. | Luxembourg | ||||
NWL Netherlands Holding III B.V. | Netherlands | ||||
NWL Netherlands JP Holding B.V. | Netherlands | ||||
NWL Netherlands Production B.V. | Netherlands | ||||
NWL Netherlands Services B.V. | Netherlands | ||||
NWL Norway A/S | Norway | ||||
NWL South Africa (Proprietary) Limited | South Africa | ||||
NWL Switzerland Sarl | Switzerland | ||||
NWL Valence Services SAS | France | ||||
Oster de Venezuela Inc. | Canada | ||||
Oster de Venezuela, S.C.A. | Venezuela | ||||
Oster Electrodomesticos Iberica, S.L. | Spain | ||||
Oster GmbH | Germany | ||||
Oster VZ Holdings Inc. | Canada | ||||
Outdoor Sports Gear, LLC | United States | ||||
Packs & Travel Corporation | United States | ||||
Parker Pen (Shanghai) Limited | China | ||||
Parker Pen (Shanghai) Limited - Beijing Branch | China | ||||
Parker Pen Products (in liquidation) | United Kingdom | ||||
Polyhedron Holdings Limited | United Kingdom | ||||
Prodox, S.A. de C.V. | Mexico | ||||
Pulse Home Products (Holdings) Limited | United Kingdom | ||||
Raider Motor Corporation | Bahamas | ||||
Raider Motor Corporation (Hong Kong Business Registration) | Hong Kong | ||||
Repuestos Electronicos, S.A. | Venezuela | ||||
Reynolds Pen International | France | ||||
Reynolds Pens India Private Limited | India | ||||
Reynolds Pens India Private Limited - Mumbai Branch | India | ||||
Rubbermaid Commercial Products LLC | United States |
Rubbermaid Europe Holding Inc. | United States | ||||
Rubbermaid Incorporated | United States | ||||
Rubbermaid Ireland Limited | Ireland | ||||
Rubbermaid Portugal Lda. | Portugal | ||||
Rubbermaid Services Corp. | United States | ||||
Sanford Brands Venezuela Inc. | Canada | ||||
Sanford Brands Venezuela Inc. (Venezuelan Branch) | Venezuela | ||||
Sanford GmbH Holding Company | United States | ||||
Sanford Hellas EPE (in liquidation) | Greece | ||||
Sanford Holding LLC | United States | ||||
Sanford Rotring (GB) Limited | United Kingdom | ||||
Sanford, L.P. | United States | ||||
Sanford, LLC | Russia | ||||
Sevca, LLC | United States | ||||
Shakespeare Conductive Fibers, LLC | United States | ||||
Shakespeare Europe B.V. (in liquidation) | Netherlands | ||||
SI II, Inc. | United States | ||||
Sistema Plastics Australia Limited | New Zealand | ||||
Sistema Plastics Australia Limited (Australia Branch) | Australia | ||||
Sistema Plastics Limited | New Zealand | ||||
Sistema Plastics UK Limited | New Zealand | ||||
Sistema Plastics UK Limited (UK Branch) | United Kingdom | ||||
Sistema Plastiques France Limited | New Zealand | ||||
Sistema Plastiques France Limited (French branch) | France | ||||
Sitca LLC | United States | ||||
Smith Mountain Industries, Inc. | United States | ||||
Söke Handels GmbH | Austria | ||||
Söke-Hungaria Kft | Hungary | ||||
Spontex S.A.S | France | ||||
Summit Holding GmbH | Germany | ||||
Summit Holdings Europe Ltd. | Cayman Islands | ||||
Summit Worldwide Company | Cayman Islands | ||||
Sunbeam Americas Holdings, LLC | United States | ||||
Sunbeam ANZ Holdings Pty Ltd | Australia | ||||
Sunbeam del Peru, S.A. | Peru | ||||
Sunbeam Diversified Holdings LLC | United States | ||||
Sunbeam Products, Inc. | United States | ||||
Sunbeam Uruguay, S.A. | Uruguay | ||||
Sunbeam-Oster de Acuña, S.A. de C.V. | Mexico | ||||
Sunbeam-Oster de Matamoros, S.A. de C.V. (in liquidation) | Mexico | ||||
Taiwan Aprica Inc. | Taiwan | ||||
Temrac Company, Inc. | United States | ||||
The Coleman Company, Inc. | United States | ||||
The Newell Brands Charitable Foundation | United States | ||||
The Representative Office of Newell Rubbermaid Asia Pacific Limited in Ho Chi Minh City | Vietnam | ||||
The Wallingford Insurance Company Limited | Bermuda | ||||
The Yankee Candle Company, Inc. | United States | ||||
True Temper Venezuela, S.A. | Venezuela | ||||
USPC Mexico, S.A. de C.V. (in liquidation) | Mexico | ||||
Vine Mill Limited | United Kingdom | ||||
Virumetal S.A. | Uruguay | ||||
Visant Company, LLC | United States | ||||
Visant Holding Company, LLC | United States | ||||
viskovita GmbH | Germany | ||||
Waverly Products Company Limited | Jamaica |
Woodshaft, Inc. | United States | ||||
X Properties, LLC | United States | ||||
Yankee Candle Admin LLC | United States | ||||
Yankee Candle Canada Inc. | Canada | ||||
Yankee Candle Company (Europe) Limited | United Kingdom | ||||
Yankee Candle Deutschland GmbH | Germany | ||||
Yankee Candle France | France | ||||
Yankee Candle Investments LLC | United States | ||||
Yankee Candle s.r.o. | Czech Republic | ||||
1. | I have reviewed this annual report on Form 10-K for Newell Brands Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||||||
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |||||||
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Ravichandra K. Saligram | ||
Ravichandra K. Saligram | ||
Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K for Newell Brands Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||||||
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |||||||
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Mark J. Erceg | ||
Mark J. Erceg | ||
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) |
/s/ Ravichandra K. Saligram | ||
Ravichandra K. Saligram | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
February 15, 2023 |
/s/ Mark J. Erceg | ||
Mark J. Erceg | ||
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) | ||
February 15, 2023 |
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Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Comprehensive income (loss): | |||
Net income (loss) | $ 197 | $ 622 | $ (766) |
Comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (113) | (94) | (2) |
Unrecognized pension and postretirement costs | (17) | 64 | 43 |
Derivative financial instruments | 1 | 28 | (1) |
Total other comprehensive income (loss), net of tax | (129) | (2) | 40 |
Comprehensive income (loss) | 68 | 620 | (726) |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 2 | (4) |
Total comprehensive income (loss) attributable to parent | $ 68 | $ 618 | $ (722) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000.0 | 10,000,000.0 |
Preferred stock, par value (in USD per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 800,000,000.0 | 800,000,000.0 |
Common stock, par value (in USD per share) | $ 1.00 | $ 1.00 |
Common stock, shares issued (in shares) | 438,600,000 | 450,000,000.0 |
Treasury stock, shares (in shares) | 25,000,000.0 | 24,500,000 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions |
Total |
As Previously Reported |
Impact of change in inventory accounting method |
Common Stock |
Common Stock
As Previously Reported
|
Treasury Stock |
Treasury Stock
As Previously Reported
|
Additional Paid-In Capital |
Additional Paid-In Capital
As Previously Reported
|
Retained Earnings (Deficit) |
Retained Earnings (Deficit)
As Previously Reported
|
Retained Earnings (Deficit)
Impact of change in inventory accounting method
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
As Previously Reported
|
Stockholders' Equity Attributable to Parent |
Stockholders' Equity Attributable to Parent
As Previously Reported
|
Stockholders' Equity Attributable to Parent
Impact of change in inventory accounting method
|
Non- controlling Interests |
Non- controlling Interests
As Previously Reported
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2019 | $ 5,009 | $ 4,996 | $ 13 | $ 447 | $ 447 | $ (590) | $ (590) | $ 8,430 | $ 8,430 | $ (2,391) | $ (2,404) | $ 13 | $ (920) | $ (920) | $ 4,976 | $ 4,963 | $ 13 | $ 33 | $ 33 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Comprehensive income (loss) | (726) | (730) | 4 | (766) | 45 | (721) | (5) | ||||||||||||
Dividends declared on common stock | (392) | (392) | (392) | ||||||||||||||||
Equity compensation, net of tax | 33 | 1 | (8) | 40 | 33 | ||||||||||||||
Portion of net income attributable to noncontrolling interests | (4) | (5) | (5) | 1 | |||||||||||||||
Distributions to noncontrolling interests | (3) | (3) | |||||||||||||||||
Ending balance at Dec. 31, 2020 | 3,917 | 448 | (598) | 8,078 | (3,157) | (880) | 3,891 | 26 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Comprehensive income (loss) | 620 | 570 | 50 | 622 | (2) | 620 | |||||||||||||
Dividends declared on common stock | (397) | (397) | (397) | ||||||||||||||||
Equity compensation, net of tax | 44 | 2 | (11) | 53 | 44 | ||||||||||||||
Acquisition of noncontrolling interests | (28) | (28) | |||||||||||||||||
Portion of net income attributable to noncontrolling interests | 2 | 2 | |||||||||||||||||
Ending balance at Dec. 31, 2021 | 4,158 | 450 | (609) | 7,734 | (2,535) | (882) | 4,158 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Comprehensive income (loss) | 68 | $ 59 | $ 9 | 197 | (129) | 68 | |||||||||||||
Dividends declared on common stock | (380) | (380) | (380) | ||||||||||||||||
Equity compensation, net of tax | (1) | 2 | (14) | 11 | (1) | ||||||||||||||
Common stock purchased and retired | (325) | (13) | (312) | (325) | |||||||||||||||
Other | (1) | (1) | (1) | ||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 3,519 | $ 439 | $ (623) | $ 7,052 | $ (2,338) | $ (1,011) | $ 3,519 | $ 0 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared on common stock (in USD per share) | $ 0.92 | $ 0.92 | $ 0.92 |
Basis of Presentation and Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Description of Business Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid, FoodSaver, Calphalon, Sistema, Sharpie, Paper Mate, Dymo, EXPO, Elmer’s, Yankee Candle, Graco, NUK, Rubbermaid Commercial Products, Spontex, Coleman, Campingaz, Contigo, Oster, Sunbeam and Mr. Coffee. Newell Brands' beloved brands enhance and brighten consumers lives at home and outside by creating moments of joy, building confidence and providing peace of mind. The Company sells its products in nearly 200 countries around the world and has operations on the ground in over 40 of these countries, excluding third-party distributors. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the consolidated accounts of the Company and its majority-owned subsidiaries after elimination of intercompany transactions and balances. The preparation of these consolidated financial statements requires the use of certain estimates and assumptions by management in determining the Company’s assets, liabilities, sales and expenses, and related disclosures. Significant estimates in these Consolidated Financial Statements include restructuring charges, estimates of future cash flows associated with asset impairments, useful lives for depreciation and amortization, loss contingencies (including legal, environmental and product liability reserves), net realizable value of inventories, estimated contract revenue and related variable consideration, capitalized software costs, income taxes, uncertain tax provisions, tax valuation allowances, and pension and postretirement employee benefit liabilities and expenses. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. During the first quarter of 2022, the Company sold its Connected Home & Security (“CH&S”) business unit to Resideo Technologies, Inc. See Footnotes 2 and 17 for more information. During the fourth quarter of 2022, the Company elected to change its method of accounting for certain inventory in the U.S. from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. All prior periods presented have been retrospectively adjusted to apply the new method of accounting. See Footnotes 5 and 19 for more information. Use of Estimates and Risks Management’s application of U.S. GAAP in preparing the Company's consolidated financial statements requires the pervasive use of estimates and assumptions. The Company, which has been impacted in recent years by inflationary and supply chain pressures, labor shortages, and logistical challenges across its businesses, and more recently by the indirect macroeconomic impact of the Russia-Ukraine conflict, is also experiencing additional headwinds due to softening global demand and an increased focus by retailers to rebalance inventory levels in light of continued inflationary pressures on consumers. While all of the Company's segments have been negatively impacted to varying degrees by the softening global demand, the Home Appliances and Home Solutions segments have been the most impacted. These collective macroeconomic trends, the duration or severity of which are highly uncertain, are rapidly changing the retail landscape and negatively impacted the Company’s operating results, cash flows and financial condition in 2022 and are expected to persist into 2023. The high level of uncertainty of these factors has resulted in estimates and assumptions that have the potential for more variability and are more subjective. In addition, some of the other inherent estimates and assumptions used in the Company’s forecasted results of operations and cash flows that form the basis of the determination of the fair value of the reporting units for goodwill and indefinite-lived intangible asset impairment testing are outside the control of management, including interest rates, cost of capital, tax rates, industry growth, credit ratings, foreign exchange rates and labor inflation. Although management has made its best estimates and assumptions based upon current information, actual results could materially differ given the uncertainty of these factors and may require future changes to such estimates and assumptions, including reserves, which may result in future expense or impairment charges. During the fourth quarter of 2022, in conjunction with the Company's annual impairment testing, the Company recorded a non-cash impairment charge to write-off the remaining $56 million of goodwill for its Home Fragrance reporting unit, in the Home Solutions segment, as the carrying value exceeded its fair value. The Company also recorded an aggregate impairment charge of $270 million related to certain tradenames in the Home Solutions and Learning and Development segments, as the carrying values exceeded their fair values. A quantitative impairment test was also performed for the Company's long-lived assets resulting in no impairment. During the third quarter of 2022, the Company concluded that a triggering event had occurred for its Home Fragrance reporting unit, an indefinite-lived tradename in the Home Solutions segment, an indefinite-lived tradename in the Home Appliances segment, and two indefinite-lived tradenames in the Learning and Development segment. The Company performed a quantitative impairment test and determined that the Home Fragrance reporting unit goodwill, and the indefinite-lived tradenames in the Home Appliances and Learning and Development segments noted above were impaired, which resulted in the Company recording an aggregate non-cash impairment charge of $148 million during the quarter, as the carrying values exceeded their fair values. A quantitative impairment test was also performed for the indefinite-lived tradename and long-lived assets in the Home Fragrance reporting unit resulting in no impairment. See Footnote 7 for further information. Significant Accounting Policies Concentration of Credit Risk The Company’s forward exchange contracts generally do not subject the Company to risk due to foreign exchange rate movement, because gains and losses on these instruments generally offset gains and losses on the assets, liabilities and other transactions being hedged. The Company is exposed to credit-related losses in the event of non-performance by counterparties to certain derivative financial instruments. The Company does not obtain collateral or other security to support derivative financial instruments subject to credit risk, but monitors the credit standing of its counterparties. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied or at a point in time, which generally occurs either on shipment or on delivery based on contractual terms, which is also when control is transferred. The Company’s primary performance obligation is the distribution and sales of its consumer and commercial products to its customers. In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience. Revenue is measured as the amount of consideration for which the Company expects to be entitled in exchange for transferring goods or providing services. Certain customers may receive cash and/or non-cash incentives such as cash discounts, returns, credits or reimbursements related to defective products, customer discounts (such as volume or trade discounts), cooperative advertising and other customer-related programs, which are accounted for as variable consideration. In some cases, the Company applies judgment, including contractual rates and historical payment trends, when estimating variable consideration. In addition, the Company participates in various programs and arrangements with customers designed to increase the sale of products by these customers. Among the programs negotiated are arrangements under which allowances are earned by customers for attaining agreed-upon sales levels or for participating in specific marketing programs. Coupon programs are also developed on a customer- and territory-specific basis. Under customer programs and arrangements that require sales incentives to be paid in advance, the Company amortizes the amount paid over the period of benefit or contractual sales volume. When incentives are paid in arrears, the Company accrues the estimated amount to be paid based on the program’s contractual terms, expected customer performance and/or estimated sales volume. These estimates are determined using historical customer experience and other factors, which sometimes require significant judgment. Due to the length of time necessary to obtain relevant data from customers, among other factors, actual amounts paid can differ from these estimates. Sales taxes and other similar taxes are excluded from revenue. The Company elected to account for shipping and handling activities as a fulfillment cost. The Company also elected not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. Goodwill and Indefinite-Lived Intangibles Goodwill and indefinite-lived intangibles are tested and reviewed for impairment annually during the fourth quarter (on December 1), or more frequently if facts and circumstances warrant. Goodwill Goodwill is tested for impairment at a reporting unit level, and all of the Company’s goodwill is assigned to its reporting units. Reporting units are determined based upon the Company’s organizational structure in place at the date of the goodwill impairment testing and generally one level below the operating segment level. The Company’s operations are comprised of seven reporting units, within its five primary operating segments. The Company may use a qualitative approach, and when appropriate, has bypassed the qualitative and used a quantitative approach, which involves comparing the fair value of each of the reporting units to the carrying value of those reporting units. If the carrying value of a reporting unit exceeds its fair value, an impairment loss would be calculated as the difference between these amounts, limited to the amount of reporting unit goodwill allocated to the reporting unit. The quantitative goodwill impairment testing requires significant use of judgment and assumptions, such as the identification of reporting units; the assignment of assets and liabilities to reporting units; and the estimation of future cash flows, business growth rates, terminal values, discount rates and total enterprise value. The income approach used is the discounted cash flow methodology and is based on five-year cash flow projections. The cash flows projected are analyzed on a debt-free basis (before cash payments to equity and interest-bearing debt investors) in order to develop an enterprise value from operations for the reporting unit. A provision is made, based on these projections, for the value of the reporting unit at the end of the forecast period, or terminal value. The present value of the finite-period cash flows and the terminal value are determined using a selected discount rate. Indefinite-lived intangibles The testing of indefinite-lived intangibles (primarily trademarks and tradenames) under established guidelines for impairment also requires significant use of judgment and assumptions (such as cash flow projections, royalty rates, terminal values and discount rates). An indefinite-lived intangible asset is impaired by the amount its carrying value exceeds its estimated fair value. For impairment testing purposes, the fair value of indefinite-lived intangibles is determined using either the relief from royalty method or the excess earnings method. The relief from royalty method estimates the value of a tradename by discounting the hypothetical avoided royalty payments to their present value over the economic life of the asset. The excess earnings method estimates the value of the intangible asset by quantifying the residual (or excess) cash flows generated by the asset and discounts those cash flows to the present. The excess earnings methodology requires the application of contributory asset charges. Contributory asset charges typically include assumed payments for the use of working capital, tangible assets and other intangible assets. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. Other Long-Lived Assets The Company continuously evaluates whether impairment indicators related to its property, plant and equipment, operating leases and other long-lived assets are present. These impairment indicators may include a significant decrease in the market price of a long-lived asset or asset group, early termination of an operating lease, a significant adverse change to the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If impairment indicators are present, the Company estimates the future cash flows for the asset or group of assets. The sum of the undiscounted future cash flows attributable to the asset or group of assets is compared to their carrying amount. The cash flows are estimated utilizing various assumptions regarding future sales and expenses, working capital and proceeds from asset disposals on a basis consistent with the Company’s forecasts. If the carrying amount exceeds the sum of the undiscounted future cash flows, the Company discounts the future cash flows using a discount rate required for a similar investment of like risk and records an impairment charge as the difference between the fair value and the carrying value of the asset group. The Company performs its testing of the asset group at the reporting unit level, as this is the lowest level for which identifiable cash flows are available, with the exception of the Yankee Candle business, where testing is performed at the retail store level. Income Taxes The Company accounts for deferred income taxes using the asset and liability approach. Under this approach, deferred income taxes are recognized based on the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by current enacted tax rates. Valuation allowances are recorded to reduce the deferred tax assets to an amount that will more likely than not be realized. The Company regularly reviews its deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. For uncertain tax positions, the Company applies the provisions of relevant authoritative guidance, which requires application of a “more likely than not” threshold to the recognition and derecognition of tax positions. The Company’s ongoing assessments of the more likely than not outcomes of tax authority examinations and related tax positions require significant judgment and can increase or decrease the Company’s effective tax rate, as well as impact operating results. See Footnote 12 for further information. Sales of Accounts Receivable Factored receivables at December 31, 2022 associated with the Company's existing factoring agreement (the “Customer Receivables Purchase Agreement”) were approximately $420 million, a decrease of approximately $80 million from December 31, 2021. During the second quarter of 2022, the Company amended the Customer Receivables Purchase Agreement to (i) increase the amount of certain customer receivables that may be sold under the agreement, (ii) add new customers to the agreement and (iii) change the reference rate from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the Consolidated Balance Sheet at the time of the sales transaction. The Company classifies the proceeds received from the sales of accounts receivable as an operating cash flow in the Consolidated Statement of Cash Flows. The Company records the discount as other (income) expense, net in the Consolidated Statement of Operations and collections of accounts receivable not yet submitted to the financial institution as a financing cash flow. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and highly liquid investments that have a maturity of three months or less when purchased. Restricted cash reflects cash received on previously sold customer receivables in connection with the factoring program that are required to be remitted to a financial institution. Restricted cash is reported as prepaid expenses and other current assets on the Consolidated Balance Sheets. Accounts Receivable, Net Accounts receivable, net, include amounts billed and due from customers. Payment terms vary but generally are 90 days or less. An allowance for expected credit losses is based on the amount ultimately expected to be collected from the customer. The Company evaluates the collectability of accounts receivable based on a combination of factors including the length of time the receivables are past due, historical collection experience, current market conditions and forecasted direction of economic and business environment. Accounts deemed uncollectible are written off, net of expected recoveries. Capitalized Software Costs The Company capitalizes costs associated with internal-use software during the application development stage after both the preliminary project stage has been completed and the Company’s management has authorized and committed to funding for further project development. Capitalized internal-use software costs include: (i) external direct costs of materials and services consumed in developing or obtaining the software; (ii) payroll and payroll-related costs for employees who are directly associated with and who devote time directly to the project; and (iii) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. The Company expenses as incurred research and development, general and administrative, and indirect costs associated with internal-use software. In addition, the Company expenses as incurred training, maintenance and other internal-use software costs incurred during the post-implementation stage. Costs associated with upgrades and enhancements of internal-use software are capitalized only if such modifications result in additional functionality of the software. The Company amortizes internal-use software costs using the straight-line method over the estimated useful life of the software. Capitalized software costs are evaluated annually for indicators of impairment, including but not limited to a significant change in available technology or the manner in which the software is being used. Impaired items are written down to their estimated fair values. Capitalized implementation costs for certain qualified Software-as-a-Service (“SaaS”) arrangements are also subject to the same accounting criteria described above, when the Company does not own the intellectual property for the software license used in the arrangement. SaaS arrangements are included in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets. The straight-line amortization of these costs is presented along with the fees related to the hosted cloud computing service in the Consolidated Statements of Operations. Product Liability Reserves The Company has a self-insurance program for product liability that includes reserves for self-retained losses and certain excess and aggregate risk transfer insurance. The Company uses historical loss experience combined with actuarial evaluation methods, review of significant individual files and the application of risk transfer programs in determining required product liability reserves. The Company’s actuarial evaluation methods take into account claims incurred but not reported when determining the Company’s product liability reserve. While the Company believes that it has adequately reserved for these claims, the ultimate outcome of these matters may exceed the amounts recorded by the Company, and such additional losses may be material to the Company’s Consolidated Financial Statements. Product Warranties In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience. Advertising Costs The Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place, and the Company expenses all other advertising and marketing costs when incurred. Advertising and promotion costs are recorded in selling, general and administrative expenses (“SG&A”) and totaled $387 million, $407 million and $362 million in 2022, 2021 and 2020, respectively. Research and Development Costs Research and development costs relating to both future and current products are charged to SG&A as incurred. These costs totaled $140 million, $153 million and $144 million in 2022, 2021 and 2020, respectively. Other Significant Accounting Policies Other significant accounting policies are disclosed as follows: •Restructuring – Footnote 4 •Inventory – Footnote 5 •Property, Plant and Equipment – Footnote 6 •Derivative Instruments – Footnote 10 •Foreign Currency Operations – Footnote 10 •Pensions and Postretirement Benefits – Footnote 11 •Leases – Footnote 13 •Share-Based Compensation – Footnote 15 •Legal and Environmental Reserves – Footnote 18 Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In October 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to better consider the effect of the programs on an entity’s working capital, liquidity and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. The Company does not expect the adoption of ASU 2022-04 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In January 2021, the FASB clarified the scope of this guidance with the issuance of ASU 2021-01, Reference Rate Reform: Scope. ASU 2020-04 provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference LIBOR or another reference rate if certain criteria are met. This ASU was further updated with the issuance of ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848, which extends the sunset date of the guidance. ASU 2020-04 may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. Adoption of New Accounting Guidance In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” (Topic 740), which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 became effective for years, and interim periods within those years, beginning after December 15, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
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Divestiture Activity |
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Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture Activity | Divestiture Activity 2022 On March 31, 2022, the Company sold its CH&S business unit to Resideo Technologies, Inc., for approximately $593 million, subject to customary working capital and other post-closing adjustments. As a result, during the year ended December 31, 2022, the Company recorded a pre-tax gain of $136 million, which was included in other (income) expense, net in Consolidated Statements of Operations. 2020 On August 31, 2020, the Company divested the foam board product line in its Learning and Development segment. As a result, the Company recorded a pre-tax loss of $8 million, which is included in other (income) expense, net in the Consolidated Statements of Operations.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables display the components of accumulated other comprehensive income (loss) (“AOCL”), net of tax, as of and for the years ended December 31, 2022 and 2021 (in millions):
Reclassifications from AOCL to the results of operations for the years ended December 31, were pre-tax (income) expense of (in millions):
(1)See Footnote 2 for further information. (2)See Footnote 11 for further information. (3)See Footnote 10 for further information. The income tax provision (benefit) allocated to the components of AOCL for the years ended December 31, are as follows (in millions):
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Restructuring |
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Restructuring | Restructuring The Company has engaged and expects to continue to engage in restructuring activities, which requires management to utilize significant estimates related to the timing and amount of severance and other employee separation costs for workforce reductions and other separation programs and other exit costs associated with restructuring activities. The Company's accrual for severance and other employee separation costs depends on whether the costs result from an ongoing severance plan or are one-time costs. The Company accounts for relevant expenses as severance costs when we have an established severance policy, statutory requirements dictate the severance amounts, or if our historical experience is to routinely provide certain benefits to impacted employees. The Company recognizes severance costs when it is probable that benefits will be paid and the amount can be reasonably estimated. The Company estimates one-time severance and other employee costs related to exit and disposal activities not resulting from an ongoing severance plan based on the benefits available to the employees being terminated. The Company recognizes these costs when we identify the specific classification or functions of the employees being terminated, notify the employees who might be included in the termination, and expect to terminate employees within the legally required notification period. When employees are receiving incentives to stay beyond the legally required notification period, we record the cost of their severance over the remaining service period. Restructuring costs incurred by reportable business segment for all restructuring activities for the years ended December 31, are as follows (in millions):
Accrued restructuring costs activity for the year ended December 31, 2022 are as follows (in millions):
Accrued restructuring costs activity for the year ended December 31, 2021 are as follows (in millions):
2020 Restructuring Plan The Company’s 2020 restructuring program, which was substantially complete at the end of 2021, was designed to reduce overhead costs, streamline certain underperforming operations and improve future profitability. The restructuring costs, which impacted all segments, include employee-related costs, including severance and other termination benefits. In connection with the 2020 restructuring program, the Company incurred cumulative charges of $29 million since inception, $10 million and $19 million for the years ended December 31, 2021 and 2020, respectively. Other Restructuring and Restructuring-Related Costs The Company regularly incurs other restructuring and restructuring-related costs in connection with various discrete initiatives, including certain costs associated with Project Ovid, the multi-year, customer centric supply chain initiative to transform the Company’s go-to-market capabilities in the U.S., improve customer service levels and drive operational efficiencies. Restructuring-related costs are recorded in cost of products sold and SG&A in the Consolidated Statements of Operations based on the nature of the underlying costs incurred. During the years ended December 31, 2022, 2021 and 2020, the Company recorded other restructuring charges of $15 million, $6 million and $2 million, respectively. Project Phoenix In January 2023, the Company announced a restructuring and savings initiative (“Project Phoenix”) that is intended to strengthen the Company by leveraging its scale to further reduce complexity, streamlining its operating model and driving operational efficiencies. Project Phoenix is expected to be substantially implemented by the end of 2023 and incorporates a variety of initiatives designed to simplify the organizational structure, streamline the Company’s real estate portfolio, centralize the Company’s supply chain functions, which include manufacturing, distribution, transportation and customer service, transition to a unified One Newell go-to-market model in key international geographies, and otherwise reduce overhead costs. The Company commenced reducing headcount in the first quarter 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements. The Company estimates that it will incur approximately $100 million to $130 million in restructuring and restructuring-related charges in connection with Project Phoenix, substantially all of which are expected to be incurred by the end of fiscal 2023. These charges consist primarily of $80 million to $105 million in charges related to severance payments and other termination benefits; $15 million to $20 million in charges associated with office space reductions; and approximately $5 million of other charges, including those associated with employee transition and legal costs. The Company expects approximately $95 million to $120 million of the total aggregate charges will be cash expenditures. No charges associated with Project Phoenix were recorded in 2022.
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The Company reduces its inventory value for estimated obsolete and slow-moving inventory in an amount equal to the difference between the cost of inventory and the net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventory costs include direct materials, direct labor and manufacturing overhead, or when finished goods are sourced, the cost is the amount paid to the third party. The components of inventories were as follows at December 31, (in millions):
* The impact to the opening retained deficit balance at January 1, 2020 was a reduction to retained deficit of $13 million. The following table presents the unaudited Condensed Consolidated Statements of Operations for each quarter of 2022 and 2021 to reflect the impact of the change from LIFO to FIFO (see Footnote 5) and for each quarter of 2022 the recast associated with the functional currency revisions (in millions, except per share data):
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Property, Plant and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by the Company are as follows: buildings and improvements (20 - 40 years) and machinery and equipment (3 - 15 years). Property, plant and equipment, net, consisted of the following at December 31, (in millions):
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Goodwill and Other Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2022 and 2021 (in millions):
During the fourth quarter of 2022, in conjunction with its annual impairment testing, the Company recorded a non-cash impairment charge to write-off the remaining $56 million of goodwill for its Home Fragrance reporting unit, in the Home Solutions segment as the carrying value exceeded its fair value. This impairment reflected a further downward revision to the forecasted cash flows used in connection with the third quarter triggering event assessment, driven by inflationary pressures which continue to impact discretionary spending behavior of consumers at higher rates than previously expected. The Baby reporting unit in the Learning and Development segment had a fair value within 10% of its associated carrying value. A hypothetical 10% reduction in forecasted earnings before interest, taxes and amortization used in the discounted cash flows to estimate the fair value to this reporting unit would have resulted in an impairment charge of approximately $120 million against its goodwill carrying value of $653 million. During the third quarter of 2022, the Company concluded that a triggering event had occurred for its Home Fragrance reporting unit, in the Home Solutions segment, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory, and rising interest rates. The decline in global demand is driven primarily by inflationary pressures which are impacting the discretionary spending behavior of consumers. The Company performed a quantitative impairment test and determined that the Home Fragrance reporting unit goodwill was impaired. During the third quarter of 2022 the Company recorded a non-cash impairment charge of $108 million, as the carrying value of the reporting unit exceeded its fair value.
The impairment charges for indefinite-lived tradenames were recorded in the Company’s reporting segments as follows for the years ended December 31, (in millions):
(1)During the fourth quarter of 2022, in conjunction with its annual impairment testing, the Company recorded aggregate non-cash impairment charges of $270 million associated with two tradenames in the Home Solutions segment and one tradename in the Learning and Development segment, as the carrying values exceeded their fair values. The decline in fair values for one tradename in the Home Solutions segment and the tradename in the Learning and Development segment reflected a further downward revision to the forecasted cash flows used in connection with the third quarter triggering event assessment, driven by inflationary pressures which are impacting discretionary spending behavior of consumers at higher rates than previously expected, including higher than expected overhead costs. The decline in fair value for the remaining tradename in the Home Solutions segment reflected a change in management's assumptions, including the timing of a labor shortage recovery in a certain international market, which negatively impacted the long-term profitability estimates used to develop the forecasted cash flow projections for the annual impairment test. During the third quarter of 2022, the Company concluded that a triggering event had occurred for one indefinite-lived tradename in each of the Home Appliances and Home Solutions segments, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory and rising interest rates. The decline in global demand is driven primarily by inflationary pressures which are impacting the discretionary spending behavior of consumers. The Company also concluded that a triggering event had occurred for two indefinite-lived tradenames in the Learning and Development segment, as a result of rising interest rates and inflationary pressures. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home Appliances segment and two indefinite-lived tradenames in the Learning and Development segment were impaired. During the third quarter of 2022, the Company recorded an aggregate non-cash impairment charge of $40 million, as the carrying values of these tradenames exceeded their fair values. (2)During the fourth quarter of 2021, in conjunction with its annual impairment testing, the Company recorded non-cash impairment charges of $60 million associated with tradenames in the Commercial Solution and Learning and Development segments, as the carrying values exceeded their fair values, reflecting a downward revision of future expected cash flows, which include the impact of the COVID-19 global pandemic. (3)During the fourth quarter of 2020, in conjunction with its annual impairment testing, the Company recorded a non-cash impairment charge of $20 million associated with a tradename in the Learning and Development segment, as its carrying value exceeded its fair value. The impairment reflected a downward revision of forecasted results due to the impact of the delayed and limited re-opening of schools and offices as a result of the COVID-19 global pandemic, as well as the continued deterioration in sales for slime-related adhesive products. During the first quarter of 2020, as a result of the impairment testing performed in connection with COVID-19 pandemic triggering event, the Company determined that certain of its indefinite-lived intangible assets in all of its operating segments were impaired and recorded non-cash impairment charges of $1.3 billion to reflect the impairment of these indefinite-lived tradenames because their carrying values exceeded their fair values. One tradename in the Home Solutions segment had a fair value within 10% of its associated carrying values of $25 million. A hypothetical 10% reduction in forecasted earnings before interest, taxes and amortization used in the discounted cash flows to estimate the fair value of this tradename would have resulted in an additional impairment charge of $2 million. In addition, one tradename in the Home Solutions segment, one tradename in the Learning and Development segment, and one tradename in the Outdoor and Recreation Segment had fair values within 10% of their associated carrying values of $68 million, $36 million, and $58 million, respectively. A hypothetical increase of 100 basis points in the discount rate used in the discounted cash flows to estimate fair values of these tradenames would have resulted in additional impairment charges of $7 million, $5 million, and $3 million, respectively. The table below summarizes the balance of other intangible assets, net and the related amortization periods using the straight-line method and attribution method at December 31, 2022 and 2021 (in millions):
Amortization expense for intangible assets was $100 million, $120 million and $157 million in 2022, 2021 and 2020, respectively. At December 31, 2022, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):
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Other Accrued Liabilities |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities included the following at December 31, (in millions):
Customer accruals are promotional allowances and rebates, including cooperative advertising, given to customers in exchange for their selling efforts and volume purchased, as well as allowances for returns. Payments for annual rebates and other customer programs are generally made in the first quarter of the year. Self-insurance liabilities relate to casualty liabilities such as workers’ compensation, general and product liability and auto liability and are estimated based upon historical loss experience combined with actuarial evaluation methods, review of significant individual files and the application of risk transfer programs.
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following is a summary of outstanding debt at December 31, (in millions):
Senior Notes On October 19, 2022, the Company redeemed its 3.85% senior notes due April 2023 (the “April 2023 Notes”) at a redemption price equal to 100.002% of the outstanding aggregate principal amount of the notes, plus accrued and unpaid interest to the date of the redemption. The total consideration was approximately $1.09 billion, and the Company recorded a debt extinguishment loss of $1 million. On September 14, 2022, the Company completed a registered public offering of $500 million principal amount of 6.375% senior notes that mature in September 2027 (the “September 2027 Notes”) and $500 million principal amount of 6.625% senior notes that mature in September 2029 (the “September 2029 Notes”). The Company received proceeds of approximately $989 million, net of fees and expenses paid. The September 2027 Notes and the September 2029 Notes are subject to similar restrictive and financial covenants as the Company's existing senior notes, however, they are not subject to the interest rate adjustment or coupon step up provisions of certain other notes described below. The September 2027 Notes and the September 2029 Notes are redeemable in whole or in part, at the option of the Company (i) at any time prior to three months before the stated maturity dates at a redemption price equal to or greater of (a) the principal amount of the notes being redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed, discounted to the redemption date on a semi-annual basis, plus the applicable make-whole amount of 50 basis points, plus in each case, accrued and unpaid interest on the notes being redeemed to, but not including, the redemption date; or (ii) at any time on or after three months prior to respective maturity dates, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to the redemption dates. The Company used the net proceeds from the September 2027 and September 2029 Notes, together with available cash, to redeem the April 2023 Notes during the fourth quarter of 2022. As a result of the debt ratings downgrades by S&P Global Inc. (“S&P”) and Moody’s Corporation (“Moody’s”) in 2019 and 2020, respectively, certain of the Company’s outstanding senior notes currently aggregating to approximately $3.1 billion were subject to an interest rate adjustment of 25 basis points for each downgrade, totaling 50 basis points. In addition, the Company’s ability to borrow from the commercial paper market on terms it deemed acceptable or favorable was eliminated and its cost of borrowing increased. The Company’s ability to borrow under the Credit Revolver was not affected by the downgrades. On February 11, 2022, S&P upgraded the Company’s debt rating to “BBB-” from “BB+”. Since the S&P upgrade, the Company has been in a position to access the commercial paper market. The Company can currently issue commercial paper up to a maximum of $1.5 billion, provided there is a sufficient amount available for borrowing under the Credit Revolver (defined hereafter). In addition, the interest rate on the relevant senior notes decreased by 25 basis points, reducing the Company’s interest expense by approximately $8 million on an annualized basis (approximately $7 million impact in 2022). However, certain of the Company’s outstanding senior notes aggregating to approximately $3.1 billion are still subject to an interest rate adjustment of 25 basis points in connection with the Moody’s downgrade of the Company's debt rating in 2020. On February 14, 2023, Fitch Ratings downgraded the Company’s debt rating to “BB”. This downgrade does not impact the interest rates on any of the Company's senior notes. Receivables Facility The Company maintains an Accounts Receivable Securitization Facility (the “Securitization Facility”). During the second quarter of 2022, the Company amended the Securitization Facility. This amendment (i) reduced the aggregate commitment under the Securitization Facility to $375 million from $600 million, (ii) extended its maturity by one year to October 2023 and (iii) changed the reference rate under the Securitization Facility from LIBOR to SOFR. The Securitization Facility bears interest at a margin over a variable interest rate. The maximum availability under the Securitization Facility fluctuates based on eligible accounts receivable balances. At December 31, 2022, the Company had $35 million outstanding under the Securitization Facility. Revolving Credit Facility On August 31, 2022, the Company entered into a $1.5 billion senior unsecured revolving credit facility (the “Credit Revolver”) that matures in August 2027. The Credit Revolver refinanced the Company’s previous $1.25 billion senior unsecured revolving credit facility that was scheduled to mature in December 2023. Under the Credit Revolver, the Company may borrow funds on a variety of interest rate terms. The Credit Revolver provides committed back-up liquidity for the issuance of commercial paper, in each case, to the extent there is sufficient availability for borrowing under the Credit Revolver. At December 31, 2022, the Company has $225 million of outstanding borrowings under the Credit Revolver and $359 million in commercial paper borrowings. The Credit Revolver provides for the issuance of up to $150 million of letters of credit, so long as there is sufficient availability for borrowing under the Credit Revolver. At December 31, 2022, the Company had approximately $22 million of outstanding standby letters of credit issued against the Credit Revolver, with a net availability of approximately $1.25 billion. The Company was in compliance with all of its debt covenants at December 31, 2022. Future Debt Maturities The Company’s debt maturities for the five years following December 31, 2022 and thereafter are as follows (in millions):
Other The indentures governing the Company’s senior notes contain usual and customary nonfinancial covenants. The Company’s borrowing arrangements other than the senior notes contain usual and customary nonfinancial covenants and certain financial covenants, including minimum interest coverage and maximum debt-to-total-capitalization ratios. The weighted average interest rates for total debt in 2022 and 2021 were approximately 4.3% and 4.7%, respectively. The weighted average interest rate for short term debt in 2022 was approximately 4.0%. At December 31, 2022 and 2021, unamortized deferred debt issue costs were $30 million and $24 million, respectively. These costs are included in total debt and are being amortized over the respective terms of the underlying debt. The fair values of the Company’s senior notes are based on quoted market prices and are as follows at December 31, (in millions):
The carrying amounts of all other significant debt approximates fair value. Net Investment Hedge The Company previously designated the €300 million principal balance of the 3.75% senior notes due October 2021 as a net investment hedge of the foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets. In conjunction with the redemption of the October 2021 Notes, the Company settled this net investment hedge. At December 31, 2021, $11 million of deferred losses have been recorded in AOCL. See Footnote 10 for disclosures regarding the Company’s derivative financial instruments.
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Derivatives and Foreign Currency Operations |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Foreign Currency Operations | Derivatives and Foreign Currency Operations Derivatives Derivative financial instruments are generally used to manage certain commodity, interest rate and foreign currency risks. These instruments primarily include interest rate swaps, forward starting interest rate swaps, forward exchange contracts and options. The Company’s forward exchange contracts and options generally do not subject the Company to exchange rate risk because gains and losses on these instruments generally offset gains and losses on the assets, liabilities and other transactions being hedged. However, these instruments, when settled, impact the Company’s cash flows from operations to the extent the underlying transaction being hedged is not simultaneously settled due to an extension, a renewal or otherwise. On the date when the Company enters into a derivative, the derivative is designated as a hedge of the identified exposure. The Company measures effectiveness of its hedging relationships both at hedge inception and on an ongoing basis. Interest Rate Contracts The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company may use fixed and floating rate swaps to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. Floating rate swaps would be used, depending on market conditions, to convert the fixed rates of long-term debt into short-term variable rates. Fixed rate swaps would be used to reduce the Company’s risk of the possibility of increased interest costs. The settlement of interest rate swaps is included in interest expense. Fair Value Hedges At December 31, 2022, the Company had approximately $1.1 billion notional amount of interest rate swaps that exchange a fixed rate of interest for a variable rate of interest plus a weighted average spread. These floating rate swaps are designated as fair value hedges against $500 million of principal on the 6.375% senior notes due 2027, $500 million of principal on the 6.625% senior notes due 2029 and $100 million of principal on the 4.00% senior notes due 2024 for the remaining life of the notes. The effective portion of the fair value gains or losses on these swaps is offset by fair value adjustments in the underlying debt. Cross-Currency Contracts The Company uses cross-currency swaps to hedge foreign currency risk on certain financing arrangements. The Company previously entered into three cross-currency swaps, maturing in January 2025, February 2025 and September 2027, respectively, with an aggregate notional amount of $1.26 billion. Each of these cross-currency swaps were designated as net investment hedges of the Company's foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro- denominated net assets, and the Company pays a fixed rate of Euro-based interest and receives a fixed rate of U.S. dollar interest. During the third quarter of 2022, the Company entered into two cross-currency swaps with notional amounts of $500 million each, one maturing in September 2027 and the other in September 2029. These swaps were also designated as net investment hedges of the Company's foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets, and the Company pays a floating rate of Euro-based interest and receives a floating rate of U.S. dollar interest. The Company has elected the spot method for assessing the effectiveness of these contracts. During the years ended December 31, 2022, 2021 and 2020, the Company recognized income of $31 million, $16 million and $14 million, respectively, in interest expense, net, related to the portion of cross-currency swaps excluded from hedge effectiveness testing. Foreign Currency Contracts The Company uses forward foreign currency contracts to mitigate the foreign currency exchange rate exposure on the cash flows related to forecasted inventory purchases and sales with maturity dates through December 2023. The derivatives used to hedge these forecasted transactions that meet the criteria for hedge accounting are accounted for as cash flow hedges. The effective portion of the gains or losses on these derivatives is deferred as a component of AOCL until it is recognized in earnings at the same time that the hedged item affects earnings and is included in the same caption in the statements of operations as the underlying hedged item. At December 31, 2022, the Company had approximately $379 million notional amount outstanding of forward foreign currency contracts that are designated as cash flow hedges of forecasted inventory purchases and sales. The Company also uses foreign currency contracts, primarily forward foreign currency contracts, to mitigate the foreign currency exposure of certain other foreign currency transactions. At December 31, 2022, the Company had approximately $926 million notional amount outstanding of these foreign currency contracts that are not designated as effective hedges for accounting purposes and have maturity dates through August 2023. Fair market value gains or losses are included in the results of operations and are classified in other (income) expense, net in the Company's Consolidated Statement of Operations. The following table presents the fair value of derivative financial instruments at December 31, (in millions):
The Company recognized income (expense) of $(13) million, $13 million and $(9) million in other (income) expense, net, during 2022, 2021 and 2020, respectively, related to derivatives that are not designated as hedging instruments. Gains and losses on these derivatives are generally offset by foreign currency movement in the underlying exposure. The Company is not a party to any derivatives that require collateral to be posted prior to settlement. The following table presents pre-tax gain and (loss) activity for 2022, 2021 and 2020 related to derivative financial instruments designated as effective hedges:
(1)Represents effective portion recognized in Other Comprehensive Loss (“OCL”). (2)Portion reclassified from AOCL to income recognized in interest expense, net. (3)Portion reclassified from AOCL to income recognized in net sales and cost of products sold. (4)Portion reclassified from AOCL to income recognized in other (income) expense, net. At December 31, 2022, deferred net gains of approximately $10 million within AOCL are expected to be reclassified to earnings over the next twelve months. Foreign Currency Operations Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at year-end. The related translation adjustments are made directly to AOCL. Income and expenses are translated at the average monthly rates of exchange in effect during the year. Foreign currency transaction gains and losses are included in the results of operations and are generally classified in other (income) expense, net, in the Consolidated Statements of Operations. Foreign currency transaction net losses for 2022, 2021 and 2020 were $41 million, $5 million and $14 million, respectively. The Company designates certain foreign currency denominated, long-term intercompany financing transactions as being of a long-term investment nature and records gains and losses on the transactions arising from changes in exchange rates as translation adjustments.
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Employee Benefit and Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit and Retirement Plans | Employee Benefit and Retirement Plans The Company and its subsidiaries have noncontributory pension, profit sharing and contributory 401(k) plans covering substantially all of their international and domestic employees. Pension plan benefits are generally based on years of service and/or compensation. The Company’s funding policy is to contribute not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, the Internal Revenue Code of 1986, as amended, or foreign statutes to ensure that plan assets will be adequate to provide retirement benefits. The funded status of the Company’s defined benefit pension plans and postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. For defined benefit pension and postretirement benefit plans, the benefit obligation is the projected benefit obligation (“PBO”), which represents the actuarial present value of benefits expected to be paid upon retirement based on employee services already rendered and estimated future compensation levels. The fair value of plan assets represents the current market value of assets held for the sole benefit of participants. Over funded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a retirement and postretirement benefit obligation equal to this excess. The current portion of the retirement and postretirement benefit obligations represents the actuarial present value of benefits payable in the next 12 months exceeding the fair value of plan assets, measured on a plan-by-plan basis. This obligation is recorded in other accrued liabilities in the Consolidated Balance Sheets. Net periodic pension and postretirement benefit cost/(income) is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service costs/(credits) and (gains)/losses previously recognized as a component of AOCL and amortization of the net transition asset remaining in AOCL. The service cost component of net benefit cost is recorded in cost of products sold and SG&A in the Consolidated Statements of Operations (unless eligible for capitalization) based on the employees’ respective functions. The other components of net benefit cost are presented separately from service cost within other (income) expense, net in the Consolidated Income Statement. In 2023, the amount of AOCL expected to be recognized in pension and postretirement benefit (income) expense is an expense of $6 million and an income of $6 million, respectively. (Gains)/losses and prior service costs/(credits) are recognized as a component of OCL in the Consolidated Statements of Comprehensive Income (Loss) as they arise. Those (gains)/losses and prior service costs/(credits) are subsequently recognized as a component of net periodic cost/(income) pursuant to the recognition and amortization provisions of applicable accounting guidance. (Gains)/losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Prior service costs/(credits) represent the cost of benefit changes attributable to prior service granted in plan amendments. The measurement of benefit obligations and net periodic cost/(income) is based on estimates and assumptions approved by the Company’s management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates and mortality rates. The Company has a Supplemental Executive Retirement Plan (“SERP”), which is a nonqualified defined benefit and defined contribution plan pursuant to which the Company will pay supplemental benefits to certain key employees upon retirement based upon the employees’ years of service and compensation. The SERP is primarily funded through a trust agreement with a trustee that owns life insurance policies on both active and former key employees with aggregate net death benefits of $298 million. At December 31, 2022 and 2021, the life insurance contracts were accounted for using the investment method and had a cash surrender value of $141 million and $142 million, respectively, and are included in other assets in the Consolidated Balance Sheets. All premiums paid and proceeds received associated with the life insurance policies are included as investing activities in the Consolidated Statements of Cash Flows. The projected benefit obligation was $81 million and $109 million at December 31, 2022 and 2021, respectively. The SERP liabilities are included in the pension table below; however, the value of the Company’s investments in the life insurance contracts, cash and mutual funds are excluded from the table, as they do not qualify as plan assets. The Company’s matching contributions to the Company's contributory 401(k) plans were $37 million, $36 million and $35 million for 2022, 2021 and 2020, respectively. U.K. Defined Benefit Plan In February 2022, the Company entered into an agreement with an insurance company for a bulk annuity purchase or “buy-in” for one of its U.K. defined benefit pension plans, resulting in an exchange of plan assets for an annuity that matches the plan’s future projected benefit obligations to covered participants. The Company anticipates the “buy-out” for the plan to be completed in 2023. The non-cash settlement charge associated with the transaction is expected to be approximately £50 million to £70 million. U.S. Defined Benefit Plan Partial Buyout During the fourth quarter of 2020, the Company entered into an agreement with an insurance company to purchase a group annuity contract to settle approximately $157 million of projected benefit obligations for approximately 44% of the retirees in one of its U.S. defined benefit pension plans. The irrevocable transaction for the transfer of pension liability to the insurance company was funded with the plan’s existing assets. Payments from the insurance company to the beneficiaries commenced on January 1, 2021. In 2020, in connection with this transaction, the Company recorded a pre-tax settlement loss to reclassify approximately $49 million into earnings from AOCL. Defined Benefit Pension Plans The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s noncontributory defined benefit pension plans, including the SERP, at December 31, (dollars in millions):
(1)The accumulated benefit obligation for all defined benefit pension plans was $1.4 billion and $1.9 billion at December 31, 2022 and 2021, respectively. There are no plan assets associated with the Company’s postretirement benefit plans. The current healthcare cost trend rate gradually declines through 2038 to the ultimate trend rate and remains level thereafter. Summary of under-funded or non-funded pension benefit plans with projected benefit obligations in excess of plan assets at December 31, (in millions):
Summary of pension plans with accumulated obligations in excess of plan assets at December 31, (in millions):
Pension and Postretirement Benefit Expense The components of pension and postretirement benefit expense for the periods indicated are as follows (dollars in millions):
The components of net periodic pension and postretirement costs other than the service cost component are included in other (income) expense, net in the Consolidated Statements of Operations. Plan Assets The Company employs a total return investment approach for its pension plans whereby a mix of equities and fixed income investments are used to optimize the long-term return of pension plan assets. The intent of this strategy is to minimize plan expenses by outperforming plan liabilities over the long run. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and the Company’s financial condition. The domestic investment portfolios contain a diversified blend of equity and fixed-income investments. The domestic equity investments are diversified across geography and market capitalization through investments in U.S. large-capitalization stocks, U.S. small-capitalization stocks and international securities. The domestic fixed income investments are primarily comprised of investment-grade and high-yield securities through investments in corporate and government bonds, government agencies and asset-backed securities. The Level 1 investments are primarily based upon quoted market prices. The domestic Level 3 investments are primarily comprised of insurance contracts valued at contract value. The investments excluded from the fair value hierarchy are net asset value-based (“NAV-based”) hedge fund investments that generally have a redemption frequency of 90 days or less, with various redemption notice periods that are generally less than a month. The notice periods for certain investments may vary based on the size of the redemption. The international Level 2 investments are primarily comprised of insurance contracts whose fair values are estimated based on the future cash flows to be received under the contracts discounted to the present using a discount rate that approximates the discount rate used to measure the associated pension plan liabilities. The international Level 3 investments are primarily comprised of insurance contracts valued at contract value. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. The expected long-term rate of return for plan assets is based upon many factors, including expected asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns on the Company’s defined benefit pension plan’s investments. The target asset allocations for the Company’s domestic pension plans may vary by plan, based in part on plan demographics, funded status and liability duration. In general, the Company’s target asset allocations are as follows: equities approximately 10% to 30%; fixed income approximately 70% to 90%; and cash, alternative investments and other, approximately zero to 10% at December 31, 2022. Actual asset allocations may vary from the targeted allocations for various reasons, including market conditions and the timing of transactions. The Company maintains numerous international defined benefit pension plans. The asset allocations for the international investment may vary by plan and jurisdiction and are primarily based upon the plan structure and plan participant profile. The composition of domestic pension plan assets at December 31, 2022 and 2021 is as follows (in millions):
The composition of international pension plan assets at December 31, 2022 and 2021 is as follows (in millions):
A reconciliation of the change in fair value of the defined benefit plans’ assets using significant unobservable inputs (Level 3) for 2022 and 2021 is as follows (in millions):
Contributions and Estimated Future Benefit Payments During 2023, the Company expects to make cash contributions of approximately $15 million and $7 million to its domestic and international defined benefit plans, respectively. Estimated future benefit payments under the Company’s defined benefit pension plans and postretirement benefit plans are as follows at December 31, 2022 (in millions):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of income (loss) before income taxes for the years ended December 31, (in millions):
The provision for income taxes consists of the following for the years ended December 31, (in millions):
A reconciliation of the U.S. statutory rate to the effective income tax rate on a continuing basis is as follows for the years ended December 31:
(1)The Company accounts for tax on global intangible low-taxed income (“GILTI”) as a period cost and the effects are included herein. At December 31, 2022, the Company has accumulated unremitted earnings generated by our foreign subsidiaries of approximately $6.0 billion. A portion of these earnings were subject to U.S. federal taxation with the one-time toll charge. The Company does not assert indefinite reinvestment on a portion of its unremitted earnings of certain foreign subsidiaries as of December 31, 2022 and is recognizing deferred income taxes of approximately $8 million, primarily related to the future withholding tax effects of those unremitted foreign earnings. With respect to unremitted earnings of $6.0 billion and any other additional outside basis differences where the Company is continuing to assert indefinite reinvestment, any future reversals could be subject to additional foreign withholding taxes, U.S. state taxes and certain tax impacts relating to foreign currency exchange effects on any future repatriations of the unremitted earnings. The determination of any unrecognized deferred tax liabilities on the amount of unremitted earnings and other outside basis differences where the Company is asserting indefinite reinvestment is not practicable. Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
At December 31, 2022, the Company has net operating losses (“NOLs”) of approximately $1.1 billion, comprised of $162 million in the U.S. and $941 million outside of the U.S. Approximately $886 million of these NOLs do not expire and approximately $217 million expire between 2023 and 2042. Additionally, approximately $15 million of U.S. federal NOLs are subject to varying limitations on their use under Section 382 of the Internal Revenue Code of 1986, as amended. Of these U.S. federal NOLs, approximately $12 million are not reflected in the consolidated financial statements and approximately $32 million were utilized in the current year. At December 31, 2022, the Company has approximately $1.4 billion of post-apportioned state NOLs, which expire between 2023 and 2042. Additionally, approximately $2 million of post-apportioned state NOLs are subject to varying limitations on their use under Section 382 of the Internal Revenue Code of 1986, as amended. Of these post-apportioned state NOLs, approximately $2 million are not reflected in the consolidated financial statements. The majority of the U.S. foreign tax credits are recognized as a deferred tax asset at December 31, 2022 and were generated at December 31, 2018 and can be carried back one year and carried forward ten years. The Company has approximately $101 million of U.S. capital loss carryforwards of which approximately $16 million were generated at December 31, 2020, $85 million were generated at December 31, 2021, and can be carried back three years and carried forward five years. The Company has approximately $273 million of post-apportioned state capital loss of which $128 million was generated at December 31, 2018, $139 million was generated at December 31, 2020 and $6 million was generated at December 31, 2021. Of these post-apportioned state capital loss carryforwards, $100 million can be carried back three years and carried forward five years, and $172 million can be carried forward five years. During the year ended December 31, 2022, the Company amended its 2017 U.S. federal income tax return to carryback foreign tax credits generated in 2018 and capital losses generated in 2018 and 2020. The Company also paid $10 million of tax for the one-time toll charge incurred in 2017 related to the Tax Credits and Jobs Act due to the IRS (defined below) not yet processing the amended 2017 tax return. This resulted in an increase in noncurrent income tax receivable of approximately $271 million, a decrease in income taxes payable of approximately $95 million, and an increase in deferred tax liabilities of approximately $356 million. The Company routinely reviews valuation allowances recorded against deferred tax assets on a more likely than not basis as to whether the Company will realize the deferred tax assets. In making such a determination, the Company takes into consideration all available and appropriate positive and negative evidence, including projected future taxable income, future reversals of existing taxable temporary differences, the ability to carryback net operating losses, and available tax planning strategies. Although realization is not assured, based on this existing evidence, the Company believes it is more likely than not that the Company will realize the benefit of existing deferred tax assets, net of the valuation allowances. At December 31, 2022, the Company has a valuation allowance recorded against certain deferred tax assets, primarily state and foreign NOLs and various income tax credits, which the Company believes do not meet the more likely than not threshold to be realized due to uncertainty of future taxable income within the applicable tax jurisdictions. A valuation allowance of $148 million and $186 million was recorded against certain deferred tax asset balances at December 31, 2022 and 2021, respectively. For 2022, the Company recorded a net valuation allowance decrease of $38 million, primarily related to NOLs in Brazil, China and Luxembourg, and other miscellaneous changes in the U.S., state and non-U.S. valuation allowances related to ongoing operations. For 2021, the Company recorded a net valuation allowance decrease of $27 million, primarily related to NOLs in the U.K. and Luxembourg and other miscellaneous changes in the U.S., state and non-U.S. valuation allowance related to ongoing operations. The following table summarizes the changes in gross unrecognized tax benefits periods indicated are as follows (in millions):
If recognized, $412 million of unrecognized tax benefits at December 31, 2022, and $387 million at December 31, 2021, and 2020 would affect the effective tax rate. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. During 2022, 2021, and 2020 the Company recognized income tax expense on interest and penalties of $5 million, $7 million and $5 million, respectively, due to the accrual of current year interest on existing positions offset by the resolution of certain tax contingencies. The Company anticipates approximately $6 million of unrecognized tax benefits will reverse within the next 12 months. It is reasonably possible due to activities of various worldwide taxing authorities, including proposed assessments of additional tax and possible settlement of audit issues, that additional changes to the Company’s unrecognized tax benefits could occur. In the normal course of business, the Company is subject to audits by worldwide taxing authorities regarding various tax liabilities. The Company’s U.S. federal income tax returns for 2011 to 2015 and 2017 to 2019, as well as certain state and non-U.S. income tax returns for various years, are under examination. The Company files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The statute of limitations for the Company’s U.S. federal income tax returns has expired for years prior to 2011 and for 2016. With few exceptions, the Company is no longer subject to other income tax examinations for years before 2016. On June 18, 2019, the U.S. Treasury and the Internal Revenue Service (“IRS”) released temporary regulations under IRC Section 245A (“Section 245A”) as enacted by the 2017 U.S. Tax Reform Legislation (“2017 Tax Reform”) and IRC Section 954(c)(6) (the “Temporary Regulations”) to apply retroactively to the date the 2017 Tax Reform was enacted. On August 21, 2020, the U.S. Treasury and IRS released finalized versions of the Temporary Regulations (collectively with the Temporary Regulations, the “Regulations”). The Regulations seek to limit the 100% dividends received deduction permitted by Section 245A for certain dividends received from controlled foreign corporations and to limit the applicability of the look-through exception to foreign personal holding company income for certain dividends received from controlled foreign corporations. Before the retroactive application of the Regulations, the Company benefited in 2018 from both the 100% dividends received deduction and the look-through exception to foreign personal holding company income. The Company analyzed the Regulations and concluded the relevant Regulations were not validly issued. Therefore, the Company has not accounted for the effects of the Regulations in its Consolidated Financial Statements for the period ending December 31, 2022. The Company believes it has strong arguments in favor of its position and believes it has met the more likely than not recognition threshold that its position will be sustained. However, due to the inherent uncertainty involved in challenging the validity of regulations as well as a potential litigation process, there can be no assurances that the relevant Regulations will be invalidated or that a court of law will rule in favor of the Company. If the Company’s position on the Regulations is not sustained, the Company would be required to recognize an income tax expense of approximately $180 million to $220 million related to an income tax benefit from fiscal year 2018 that was recorded based on regulations in existence at the time. In addition, the Company may be required to pay any applicable interest and penalties. The Company intends to vigorously defend its position. On April 4, 2022, in a case not involving the Company, the United States District Court for the District of Colorado granted the taxpayer's motion for summary judgment that the Temporary Regulations were not validly issued on the basis of improper promulgation. The Company is monitoring the impact of this decision and intends to continue to vigorously defend its position.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company recognizes a right of use (“ROU”) asset and a liability for all leases whose term is more than 12 months at the lease inception date. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term, which includes any extension the Company reasonably expects to exercise. The Company assesses whether certain service arrangements contain embedded leases where the contract conveys the right to use an asset but is not explicitly identified as a lease arrangement; examples include information technology, third-party logistics and original equipment manufacturers. The Company uses incremental borrowing rates, updated quarterly, that reflect its own external unsecured borrowing rates that are risk-adjusted to approximate secured borrowing rates over similar terms. For certain non-real estate leases, the portfolio approach is used. The Company also has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease assets and operating lease liabilities are reported as separate lines in the Consolidated Balance Sheets. The current portion of operating lease liabilities is reported in other accrued liabilities in the Consolidated Balance Sheets. For finance leases, lease payments are allocated between interest expense and reduction of the liability in accordance with an amortization schedule. The ROU asset is amortized on a straight-line basis over the lease term. Assets acquired under finance leases are reported in property, plant and equipment, net. The depreciable life of leasehold improvements and other lease-related assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Supplemental consolidated balance sheet information for leases at December 31, is as follows (in millions):
(1)Net of accumulated depreciation of $18 million and $16 million, respectively. Components of lease expense for the years ended December 31, are as follows (in millions):
(1)Includes short-term leases, which are immaterial. (2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. Remaining lease term and discount rates at December 31, are as follows:
Supplemental cash flow information related to leases for the years ended December 31, are as follows (in millions):
Maturities of lease liabilities at December 31, 2022, are as follows (in millions):
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Leases | Leases The Company recognizes a right of use (“ROU”) asset and a liability for all leases whose term is more than 12 months at the lease inception date. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term, which includes any extension the Company reasonably expects to exercise. The Company assesses whether certain service arrangements contain embedded leases where the contract conveys the right to use an asset but is not explicitly identified as a lease arrangement; examples include information technology, third-party logistics and original equipment manufacturers. The Company uses incremental borrowing rates, updated quarterly, that reflect its own external unsecured borrowing rates that are risk-adjusted to approximate secured borrowing rates over similar terms. For certain non-real estate leases, the portfolio approach is used. The Company also has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease assets and operating lease liabilities are reported as separate lines in the Consolidated Balance Sheets. The current portion of operating lease liabilities is reported in other accrued liabilities in the Consolidated Balance Sheets. For finance leases, lease payments are allocated between interest expense and reduction of the liability in accordance with an amortization schedule. The ROU asset is amortized on a straight-line basis over the lease term. Assets acquired under finance leases are reported in property, plant and equipment, net. The depreciable life of leasehold improvements and other lease-related assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Supplemental consolidated balance sheet information for leases at December 31, is as follows (in millions):
(1)Net of accumulated depreciation of $18 million and $16 million, respectively. Components of lease expense for the years ended December 31, are as follows (in millions):
(1)Includes short-term leases, which are immaterial. (2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. Remaining lease term and discount rates at December 31, are as follows:
Supplemental cash flow information related to leases for the years ended December 31, are as follows (in millions):
Maturities of lease liabilities at December 31, 2022, are as follows (in millions):
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The computations of the weighted average shares outstanding for the years ended December 31, are as follows (in millions):
(1)For 2020, 1.1 million potentially dilutive share-based awards were excluded as their effect would be anti-dilutive. At December 31, 2022, there were 0.1 million potentially dilutive restricted stock awards with performance-based targets that were not met and as such, have been excluded from the computation of diluted earnings per share. At December 31, 2021 and 2020, there were no potentially dilutive restricted stock awards with performance-based targets that were not met. For 2022, 2021 and 2020 dividends and equivalents for share-based awards expected to be forfeited did not have a material impact on net income for basic and diluted earnings per share. Share Repurchase Program On February 6, 2022, the Company's Board of Directors authorized a $375 million Share Repurchase Program (“SRP”), effective immediately through the end of 2022. Under the SRP, the Company may purchase its common shares in the open market, in negotiated transactions or in other manners, as permitted by federal securities laws and other legal requirements. On February 25, 2022, the Company repurchased $275 million of its shares of common stock beneficially owned by Carl C. Icahn and certain of his affiliates (collectively, “Icahn Enterprises”), at a purchase price of $25.86 per share, the closing price of the Company's common shares on February 18, 2022. During the three months ended June 30, 2022, the Company repurchased approximately $50 million of its shares of common stock at an average purchase price of $22.01 per share.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Stock-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award, which is generally three years for stock options and to three years for restricted stock units and performance-based restricted stock units. The Company estimates future forfeiture rates based on its historical experience. The Company maintains a 2013 Incentive Plan and a 2022 Incentive Plan (collectively, the “Incentive Plans”), which allow for grants of stock-based awards. At December 31, 2022, there were approximately 51 million share-based awards collectively available for grant under the Incentive Plans. The 2013 Incentive Plan generally provides for stock-based awards to employees to vest over a minimum of three years, although some awards may vest earlier if granted to a new employee or if tied to the achievement of specified market or performance conditions, in which case such awards vest no earlier than one year from the date of grant. The 2022 Incentive Plan generally provides for stock-based awards to employees to vest no earlier than one year from the date of grant, subject to a de minimis exception. The stock-based awards granted to employees include stock options and time-based and performance-based restricted stock units, as follows: Stock Options In years in which the Company has elected to grant stock options, it has issued them at exercise prices equal to the Company’s common stock price on the date of grant with contractual terms of ten years. Stock options issued by the Company generally vest and are expensed ratably over three years. Stock option grants are generally subject to forfeiture if employment terminates prior to vesting, except upon retirement, death or disability, in which case the options may remain outstanding and exercisable for a specified period not to exceed the remaining contractual term of the option. The following table summarizes the changes in the number of shares of common stock for 2022 (shares and aggregate intrinsic value in millions):
During 2022, the Company awarded 2.2 million time-based stock options with an aggregate grant date fair value of $14 million. These stock options entitle recipients to purchase shares of the Company's common stock at an exercise price equal to the fair market value of the underlying shares as of the grant date and vest in equal installments over a three-year period. The weighted average assumptions used to determine the fair value of stock options granted for the years ended December 31, are as follows:
The total intrinsic value of options exercised was immaterial in 2022, $2 million in 2021 and immaterial in 2020. Time-Based and Performance-Based Restricted Stock Units Time-based restricted stock unit awards (“Time-Based RSUs”) represent the right to receive unrestricted shares of stock based on continued employment and are generally subject to forfeiture if employment terminates prior to vesting, except a termination for death, disability or retirement. Time-based RSU awards to employees generally cliff-vest in three years or vest ratably over three years from the date of grant. In the case of retirement (as defined in the award agreement), awards vest in part depending on the employee’s age and years of service. Time-based RSUs have dividend equivalents credited to the recipient and are paid only to the extent the applicable service criteria is met and the time-based restricted stock units vest and the related stock is issued. Performance-based restricted stock unit awards (“Performance-Based RSUs”) represent the right to receive unrestricted shares of stock based on continuous employment plus the achievement of Company performance objectives and/or individual performance goals established by the Compensation and Human Capital Committee of the Board of Directors. Such awards are generally subject to forfeiture if employment terminates prior to vesting, except a termination for death, disability or retirement. The Performance-Based RSUs generally entitle recipients to shares of common stock if performance objectives are achieved, and typically vest no earlier than one year from the date of grant and primarily, no later than three years from the date of grant. The actual number of shares that will ultimately vest is dependent on the level of achievement of the specified performance conditions. For restricted stock units with performance conditions that are based on stock price (“Stock-Price Based RSUs”), the grant date fair value of certain Stock-Price based RSUs is estimated using a Monte Carlo simulation, with the primary input into such valuation being the expected future volatility of the Company’s common stock, and if applicable, the volatilities of the common stocks of the companies in the Company’s peer group, upon which the relative total shareholder return performance is measured. Performance-based RSUs are generally subject to forfeiture if employment terminates prior to vesting. In the case of retirement (as defined in the award agreement), awards vest in part depending on the employee’s age and years of service, subject to the satisfaction of the applicable performance criteria. The Company accounts for stock-based compensation pursuant to relevant authoritative guidance, which requires measurement of compensation cost for all stock awards at fair value on the date of grant and recognition of compensation, net of estimated forfeitures, over the longer of the derived service period or explicit requisite service period for awards expected to vest. For non- stock-price based Performance-Based RSUs, the Company assesses the probability of achievement of the performance conditions each period and records expense for the awards based on the probable achievement of such metrics. With respect to Performance-Based RSUs, dividend equivalents are credited to the recipient and are paid only to the extent the applicable performance criteria are met and the Performance-Based RSUs vest and the related stock is issued. The following table summarizes the changes in the number of outstanding restricted stock units for 2022 (shares in millions):
(1)The Grant Adjustment primarily relates to an adjustment in the quantity of Stock-Price Based RSUs ultimately vested during 2022 that were dependent on the level of achievement of the specified performance conditions. The weighted-average grant-date fair values of awards granted were $25 and $21 per share in 2021 and 2020, respectively. The fair values of awards that vested were $39 million, $32 million and $23 million in 2022, 2021 and 2020, respectively. During 2022, the Company awarded 0.8 million Time-Based RSUs, which had an aggregate grant date fair value of $21 million, that generally cliff-vest in three years or vest in equal annual installments over a three-year period. During 2022, the Company also awarded 1.1 million Performance-Based RSUs with an aggregate grant date fair value of $30 million, that generally entitle the recipients to shares of the Company’s common stock at the end of a three-year vesting period. The actual number of shares that will ultimately vest is dependent on the level of achievement of the specified performance conditions. The following table summarizes the Company's total unrecognized compensation cost related to stock-based compensation at December 31, 2022:
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Fair Value Disclosures |
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Fair Value Disclosures | Fair Value DisclosuresAccounting principles generally accepted in the U.S. define fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Recurring Fair Value Measurements The Company’s financial assets and liabilities adjusted to fair value at least annually are its money market fund investments included in cash and cash equivalents, its mutual fund investments included in other assets, and its derivative instruments, which are primarily included in prepaid expenses and other, other assets, other accrued liabilities and other noncurrent liabilities. The following tables present the Company’s non-pension financial assets and liabilities, which are measured at fair value on a recurring basis (in millions):
For publicly-traded investment securities, including mutual funds, fair value is determined on the basis of quoted market prices and, accordingly, such investments are classified as Level 1. Other investment securities are primarily comprised of money market accounts that are classified as Level 2. The Company determines the fair value of its derivative instruments using standard pricing models and market-based assumptions for all significant inputs, such as yield curves and quoted spot and forward exchange rates. Accordingly, the Company’s derivative instruments are classified as Level 2. During 2019, the Company acquired an equity investment for $18 million, which is traded on an active exchange and therefore has a readily determinable fair value. At December 31, 2022, the fair value of the equity investment was $12 million. For equity investments with readily determinable fair values, the Company recorded unrealized gain of $1 million for 2022 and $2 million for 2021 and immaterial unrealized loss in 2020, within other (income) expense, net in the Consolidated Statement of Operations. The Company adjusts its pension asset values to fair value on an annual basis (See Footnote 11). Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, derivative instruments, notes payable and short and long-term debt. The carrying values for current financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate fair value due to the short maturity of such instruments. The fair values of the Company’s debt and derivative instruments are disclosed in Footnote 9 and Footnote 10, respectively. Nonrecurring Fair Value Measurements The Company’s non-financial assets which are measured at fair value on a nonrecurring basis include property, plant and equipment, goodwill, intangible assets and certain other assets. The Company’s goodwill and indefinite-lived intangibles are fair valued using discounted cash flows. Goodwill impairment testing requires significant use of judgment and assumptions including the identification of reporting units; the assignment of assets and liabilities to reporting units; and the estimation of future cash flows, business growth rates, terminal values and discount rates. The testing of indefinite-lived intangibles under established guidelines for impairment also requires significant use of judgment and assumptions, such as the estimation of cash flow projections, terminal values, royalty rates, contributory cross charges, where applicable, and discount rates. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. These assets and certain liabilities are measured at fair value on a nonrecurring basis as part of the Company’s annual impairment testing and as circumstances require. The following table summarizes the assets that are measured at fair value on a nonrecurring basis at December 1, (in millions):
At December 31, 2022 and 2021, goodwill and intangible assets of certain reporting units are recorded at fair value based upon the Company’s impairment testing. The most significant unobservable inputs (Level 3) used to estimate the fair values of the Company's reporting unit goodwill and indefinite-lived intangible assets are discount rates, which range from 8.0% to 10.0% for reporting unit goodwill and 8.0% to 11.5% for indefinite-lived intangible assets. During the fourth quarter of 2022, two tradenames in the Home Solutions segment and one tradename in the Learning and Development segment were measured at fair values of $25 million, $68 million and $36 million, respectively. During the fourth quarter of 2021, a tradename within the Learning and Development segment was measured at fair value of $47 million. See Footnotes 1 and 7 for further information. The Company reviews long-lived assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable through future undiscounted cash flows. If the Company concludes that impairment exists, the carrying amount is reduced to fair value.
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Segment Information |
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Segment Information | Segment Information On March 31, 2022, the Company sold its CH&S business unit to Resideo Technologies, Inc. The results of operations for CH&S continued to be reported in the Consolidated Statements of Operations as part of the Commercial Solutions segment through March 31, 2022. The Company’s five primary operating segments are as follows:
(1) and Ball®, TM of Ball Corporation, used under license. This structure reflects the manner in which the chief operating decision maker (“CODM”) regularly assesses information for decision-making purposes, including the allocation of resources. The Company also provides general corporate services to its segments which is reported as a non-operating segment, Corporate. The Company’s segment and geographic results are as follows at and for the years ended December 31, (in millions):
(1)All intercompany transactions have been eliminated. (2)Operating income (loss) by segment is net sales less cost of products sold, SG&A, restructuring and impairment of goodwill, intangibles and other assets. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income (loss). (3)Commercial Solutions net sales, operating income, depreciation and amortization, capital expenditures and segment assets exclude the CH&S business as a result of the sale of this business starting from the end of the first quarter of 2022. (4)Geographic sales information is based on the region from which the products are shipped and invoiced. Long-lived assets by geography are not presented because it is impracticable to do so. The Company’s largest customer, Walmart Inc. and subsidiaries (“Walmart”), accounted for approximately 14% of net sales in 2022 and 15% of net sales in each of 2021 and 2020. Amazon, the Company's second largest customer, accounted for approximately 13% of net sales in each of 2022 and 2021 and 12% of net sales in 2020. The following table disaggregates revenue by major product grouping source and geography for the years ended December 31, (in millions):
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Litigation and Contingencies |
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Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies The Company is subject to various claims and lawsuits in the ordinary course of business, including from time to time, contractual disputes, employment and environmental matters, product and general liability claims, claims that the Company has infringed on the intellectual property rights of others, and consumer and employment class actions. Some of the legal proceedings include claims for punitive as well as compensatory damages. In the ordinary course of business, the Company is also subject to legislative requests, regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings. In connection with such formal and informal inquiries, the Company receives numerous requests, subpoenas, and orders for documents, testimony and information in connection with various aspects of its activities. The Company previously disclosed that it had received a subpoena and related informal document requests from the SEC, primarily relating to its sales practices and certain accounting matters for the time period beginning from January 1, 2016. The Company cooperated with the SEC in connection with its investigation and requests for documents, testimony and information. In late January 2023, the Company began discussing with the SEC the possibility of reaching a settlement to resolve the investigation, which now focuses on the time period from the third quarter of 2016 through second quarter of 2017. Although the Company cannot predict the ultimate outcome of the SEC investigation with certainty, it believes that the resolution of the SEC investigation will not have a material effect on the Company’s Consolidated Financial Statements. Further, on June 30, 2021, the Company received a subpoena from the SEC requesting the production of documents related to its disclosure of the potential impact of the U.S. Treasury regulations described in Footnote 12 - Income Taxes. Securities Litigation Certain of the Company’s current and former officers and directors have been named in shareholder derivative lawsuits filed in October 2018. The complaints allege, among other things, violations of the federal securities laws, breaches of fiduciary duties, unjust enrichment, and waste of corporate assets. The factual allegations underlying these claims are similar to the factual allegations made in the In re Newell Brands, Inc. Securities Litigation that was previously pending in the United States District Court for the District of New Jersey. That matter was dismissed by the District Court on January 10, 2020, and the dismissal was affirmed by the United States District Court of Appeals for the Third Circuit on December 1, 2020. The October 2018 complaints seek damages and restitution for the Company from the individual defendants, the payment of costs and attorneys’ fees, and that the Company be directed to reform certain governance and internal procedures. These actions have been consolidated and the case is known as In re Newell Brands Inc. Derivative Litigation (the “Newell Brands Derivative Action”), which is pending in the United States District Court for the District of Delaware. On March 22, 2021, the United States District Court for the District of Delaware stayed the Newell Brands Derivative Action pending the resolution of any motions for summary judgment filed in Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al. (described below). On December 30, 2020, two shareholders filed a putative derivative complaint, Weber, et al. v. Polk, et al., in the United States District Court for the District of Delaware (the “Weber Derivative Action”), purportedly on behalf of the Company against certain of the Company’s current and former officers and directors. The complaint in the Weber Derivative Action alleges, among other things, breaches of fiduciary duty and waste of corporate assets. The factual allegations underlying these claims are similar to the factual allegations made in the Newell Brands Derivative Action. On March 19, 2021, the United States District Court for the District of Delaware stayed the Weber Derivative Action pending final disposition of Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al. (described below). The Company and certain of its current and former officers and directors have been named as defendants in a securities class action lawsuit filed in the Superior Court of New Jersey, Hudson County, on behalf of all persons who acquired Company common stock pursuant to the S-4 registration statement and prospectus issued in connection with the April 2016 acquisition of Jarden Corporation (the “Registration Statement”). The action was filed on September 6, 2018 and is captioned Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al., Civil Action No. HUD-L-003492-18. The operative complaint alleges certain violations of the securities laws, including, among other things, that the defendants made certain materially false and misleading statements and omissions in the Registration Statement regarding the Company’s financial results, trends, and metrics. In October 2022, the Company entered into a settlement agreement to resolve the claims asserted in this lawsuit. Under the settlement, the Company agreed to create a settlement fund of approximately $103 million for the benefit of the class, subject to certain exclusions, which is predominantly funded by insurance proceeds. Both the settlement and the insurance receivable were recorded during the third quarter of 2022. The amount not funded by available insurance proceeds, which is not material to the Company, was expensed during the third quarter of 2022. In the fourth quarter of 2022, the Court granted the plaintiff's motion for preliminary approval of the settlement, and the Company and its insurers paid the required amount into the settlement fund. On February 10, 2023, the Court granted the plaintiff's motion for final approval of the settlement. Environmental Matters The Company is involved in various matters concerning federal and state environmental laws and regulations, including matters in which the Company has been identified by the U.S. Environmental Protection Agency (“U.S. EPA”) and certain state environmental agencies as a potentially responsible party (“PRP”) at contaminated sites under the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”) and equivalent state laws. In assessing its environmental response costs, the Company has considered several factors, including the extent of the Company’s volumetric contribution at each site relative to that of other PRPs; the kind of waste; the terms of existing cost sharing and other applicable agreements; the financial ability of other PRPs to share in the payment of requisite costs; the Company’s prior experience with similar sites; environmental studies and cost estimates available to the Company; the effects of inflation on cost estimates; and the extent to which the Company’s, and other parties’ status as PRPs is disputed. The Company’s estimate of environmental remediation costs associated with these matters at December 31, 2022 was $34 million which is included in other accrued liabilities and other noncurrent liabilities in the Consolidated Balance Sheet. No insurance recovery was taken into account in determining the Company’s cost estimates or reserves, nor do the Company’s cost estimates or reserves reflect any discounting for present value purposes, except with respect to certain long-term operations and maintenance CERCLA matters. Because of the uncertainties associated with environmental investigations and response activities, the possibility that the Company could be identified as a PRP at sites identified in the future that require the incurrence of environmental response costs and the possibility that sites acquired in business combinations may require environmental response costs, actual costs to be incurred by the Company may vary from the Company’s estimates. Lower Passaic River Matter Background The U.S. EPA has issued General Notice Letters to over 100 entities, including the Company and its subsidiary, Berol Corporation (together, the “Company Parties”), alleging that they are PRPs at the Diamond Alkali Superfund Site (the “Site”) pursuant to CERCLA. The Site is the subject of investigation and remedial activities (the “CERCLA Administrative Actions”) and related settlement negotiations with the U.S. EPA. In addition, the Company Parties are defendants in related litigation, and the Site is also subject to a Natural Resource Damage Assessment. CERCLA Administrative Actions The Site is divided into four “operable units,” and the Company Parties have received General Notice Letters in connection with operable unit 2, which comprises the lower 8.3 miles of the Lower Passaic River and its tributaries (“Unit 2”), and operable Unit 4, which comprises a 17-mile stretch of the Lower Passaic River and its tributaries (“Unit 4”). Unit 2 is geographically subsumed within Unit 4. Unit 4 Investigation The Company received its first general notice letter pertaining to Unit 4 in 2003. Beginning in 2004, the Company Parties, together with numerous other PRPs, entered into several administrative agreements with the U.S. EPA to fund and perform various investigation and clean-up activities in Unit 4. Pursuant to a 2007 Administrative Order on Consent, over 70 PRPs, including the Company Parties, have been performing or funding the remedial investigation and feasibility study for Unit 4. Activity under the 2007 Administrative Order on Consent remains underway. The parties performing the remedial investigation and feasibility study submitted the results of their remedial investigation to the U.S. EPA in July 2019 and submitted a final remedial investigation report to the U.S. EPA in January 2023. They also submitted an interim remedy feasibility study focused on the upper 9 miles of Unit 4 in September 2021. In October 2021, the U.S. EPA issued a Record of Decision for an interim remedy for the upper 9 miles of Unit 4, selecting a combination of dredging and capping as the remedial alternative, which the U.S. EPA estimates will cost $441 million in the aggregate. Unit 2 Investigation Concurrent with activities under the remedial investigation and feasibility study for Unit 4, the U.S. EPA performed a Source Control Early Action Focused Feasibility Study for Unit 2, which culminated in a Record of Decision in 2016. The U.S. EPA estimates that the selected remedy for Unit 2 set forth in its Record of Decision will cost $1.4 billion in the aggregate. The U.S. EPA then issued a General Notice Letter for Unit 2 to the Company Parties and over 100 other entities, including those that received a General Notice Letter in connection with Unit 4. The Unit 2 General Notice Letter requested that Occidental Chemical Corporation (“OCC”) perform the remedial design for Unit 2, which OCC subsequently agreed to perform. The General Notice Letter indicated that, following execution of a remedial design consent decree, the U.S. EPA would begin negotiating a remedial action consent decree for Unit 2 with OCC and other major PRPs. 2016 Record of Decision and 2021 Record of Decision Remedy Performance In March 2022, U.S. EPA issued a Notice of Potential Liability and Notice of Consent Decree Negotiations to OCC and several other entities, excluding the Company Parties, encouraging those parties to finance and perform the remedies selected in the 2016 and 2021 Records of Decision. The U.S. EPA specifically identified OCC and four other companies as “work parties” in connection with Units 2 and 4. The Company Parties were not recipients of this notice and were not identified as work parties. The U.S. EPA Settlement In September 2017, the U.S. EPA announced an allocation process involving roughly 80 Unit 2 General Notice Letter recipients, with the intent of offering cash-out settlements to a number of parties (the “U.S. EPA Settlement”). The allocation process has concluded, and the Company Parties were placed in the lowest tier of relative responsibility among allocation parties. On December 16, 2022, the U.S. EPA simultaneously filed a complaint and lodged a Consent Decree to resolve the liability of the Company Parties and other settlement parties for past and future CERCLA response costs at Unit 2 and Unit 4. The proposed Consent Decree is undergoing public notice and comment, and it remains subject to court entry. The OCC Litigation In June 2018, OCC sued over 100 parties, including the Company Parties, in the U.S. District Court in New Jersey pursuant to CERCLA, requesting cost recovery, contribution, and a declaratory judgement. The defendants, in turn, filed claims against 42 third-party defendants, and filed counterclaims against OCC (collectively, the “OCC Litigation”). The primary focus of the OCC Litigation has been certain past and future costs for investigation, design and remediation of Units 2 and 4. However, OCC has stated that it anticipates asserting claims against defendants regarding Newark Bay, which is also part of the Site, after the U.S. EPA has selected the Newark Bay remedy. OCC has also stated that it may broaden its claims in the future after completion of the Natural Resource Damage Assessment described below. In a Motion for Stay of Proceedings filed in December 2022, certain defendants and all third-party defendants in the OCC Litigation moved to stay the case for a six-month period to allow the final stage of the U.S. EPA settlement to conclude. OCC did not oppose the motion to stay. There has been no ruling on the motion yet. The Company Parties continue to vigorously defend the OCC Litigation. At this time, the Company cannot predict the eventual outcome. The Natural Resource Damage Assessment In 2007, the National Oceanic and Atmospheric Administration (“NOAA”), acting as the lead administrative trustee on behalf of itself and the U.S. Department of the Interior, issued a Notice of Intent to Perform a Natural Resource Damage Assessment to the Company Parties, along with numerous other entities, identifying the recipients as PRPs. The federal trustees (who now include the United States Department of Commerce, represented by NOAA, and the Department of the Interior, represented by the United States Fish and Wildlife Service) are presently undertaking the Natural Resource Damage Assessment. As of the date of this filing, based on the agreement in principle noted above, the Company does not expect that its allocation in the U.S. EPA Settlement relating to Unit 2 and Unit 4, if the settlement is finalized, will be material to the Company. With respect to the OCC Litigation and Natural Resource Damage Assessment, the Company is currently unable to reasonably estimate the range of possible losses. Based on currently known facts and circumstances, the Company does not believe that the Lower Passaic River matter is reasonably likely to have a material impact on the Company’s results of operations. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. Because of the uncertainties associated with environmental investigations and response activities, the possibility that the Company could be identified as a PRP at sites identified in the future that require the incurrence of environmental response costs and the possibility that sites acquired in business combinations may require environmental response costs, actual costs to be incurred by the Company may vary from the Company’s estimates. Other Matters In the normal course of business and as part of its acquisition and divestiture strategy, the Company may provide certain representations and indemnifications related to legal, environmental, product liability, tax or other types of issues. Based on the nature of these representations and indemnifications, it is not possible to predict the maximum potential payments under all of these agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements did not have a material effect on the Company’s business, financial condition or results of operations. In connection with the 2018 sale of The Waddington Group, Novolex Holdings, Inc. (the “Buyer”) filed suit against the Company in October 2019 in the Superior Court of Delaware. The Buyer generally alleged that the Company fraudulently breached certain representations in the Equity Purchase Agreement between the Company and Buyer, dated May 2, 2018, resulting in an inflated purchase price for The Waddington Group. In the year ended December 31, 2021, the Company recorded an immaterial reserve in its Consolidated Financial Statements based on its best estimate of probable loss associated with this matter. Further, in connection with the Company’s sale of The United States Playing Card Company (“USPC”), Cartamundi, Inc. and Cartamundi España, S.L., (the “Buyers”) have notified the Company of their contention that certain representations and warranties in the Stock Purchase Agreement, dated June 4, 2019, were inaccurate and/or breached, and have sought indemnification to the extent that the Buyers are required to pay related damages arising out of a third party lawsuit that was recently filed against USPC. During the fourth quarter of 2022, the Company recorded an immaterial reserve based on the outcome of a judicial ruling relating to indirect taxes in an international entity. Although the Company cannot predict the ultimate outcome of this contingency with certainty, it believes that any amounts it may be required to pay in excess of the amounts already reserved will not have a material effect on the Company’s Consolidated Financial Statements. Although the Company cannot predict the ultimate outcome of other proceedings with certainty, it believes that the ultimate resolution of the Company’s proceedings, including any amounts it may be required to pay in excess of amounts reserved, will not have a material effect on the Company’s Consolidated Financial Statements, except as otherwise described in this Footnote 18. At December 31, 2022, the Company had approximately $44 million in standby letters of credit primarily related to the Company’s self-insurance programs, including workers’ compensation, product liability and medical expenses.
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Supplementary Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Supplementary Quarterly Financial Data (Unaudited) Revisions of Previously Issued Financial Statements During the fourth quarter of 2022, the Company identified that it changed the designation to a new functional currency incorrectly for one of its legal entities at the beginning of 2022. Consequently, the Company should have recorded mark to market adjustments for certain account balances in other (income) expense, net in the Condensed Consolidated Statement of Operations. The impact of this change resulted in additional expense of $6 million, $13 million and $16 million for the three months ended March 31, 2022, June 30, 2022 and September 30, 2022, respectively. This change also resulted in reclassifications between Accumulated Other Comprehensive Loss and Retained Deficit in the Condensed Consolidated Balance Sheets of $6 million, $19 million and $35 million at March 31, 2022, June 30, 2022 and September 30, 2022, respectively. The Company concluded the above referenced effects were not material to its previously issued Condensed Consolidated Statements of Operations for the three months ended March 31, 2022, June 30, 2022 and September 30, 2022, respectively, and the Condensed Consolidated Balance Sheets at March 31, 2022, June 30, 2022 and September 30, 2022, respectively, included in the Company’s Quarterly Reports on Form 10-Q filed with the SEC on April 29, 2022, July 29, 2022 and October 28, 2022. The adjustments did not result in a change to net cash provided by operating activities in the Company’s Condensed Consolidated Statement of Cash Flows for the three, six and nine months ended March 31, 2022, June 30, 2022 and September 30, 2022, respectively. The following table presents the unaudited Condensed Consolidated Statements of Operations for each quarter of 2022 and 2021 to reflect the impact of the change from LIFO to FIFO (see Footnote 5) and for each quarter of 2022 the recast associated with the functional currency revisions (in millions, except per share data):
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Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts | Valuation and Qualifying Accounts
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Basis of Presentation and Significant Accounting Policies (Policies) |
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Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the consolidated accounts of the Company and its majority-owned subsidiaries after elimination of intercompany transactions and balances. The preparation of these consolidated financial statements requires the use of certain estimates and assumptions by management in determining the Company’s assets, liabilities, sales and expenses, and related disclosures. Significant estimates in these Consolidated Financial Statements include restructuring charges, estimates of future cash flows associated with asset impairments, useful lives for depreciation and amortization, loss contingencies (including legal, environmental and product liability reserves), net realizable value of inventories, estimated contract revenue and related variable consideration, capitalized software costs, income taxes, uncertain tax provisions, tax valuation allowances, and pension and postretirement employee benefit liabilities and expenses. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.
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Use of Estimates and Risks | Use of Estimates and Risks Management’s application of U.S. GAAP in preparing the Company's consolidated financial statements requires the pervasive use of estimates and assumptions. The Company, which has been impacted in recent years by inflationary and supply chain pressures, labor shortages, and logistical challenges across its businesses, and more recently by the indirect macroeconomic impact of the Russia-Ukraine conflict, is also experiencing additional headwinds due to softening global demand and an increased focus by retailers to rebalance inventory levels in light of continued inflationary pressures on consumers. While all of the Company's segments have been negatively impacted to varying degrees by the softening global demand, the Home Appliances and Home Solutions segments have been the most impacted. These collective macroeconomic trends, the duration or severity of which are highly uncertain, are rapidly changing the retail landscape and negatively impacted the Company’s operating results, cash flows and financial condition in 2022 and are expected to persist into 2023. The high level of uncertainty of these factors has resulted in estimates and assumptions that have the potential for more variability and are more subjective. In addition, some of the other inherent estimates and assumptions used in the Company’s forecasted results of operations and cash flows that form the basis of the determination of the fair value of the reporting units for goodwill and indefinite-lived intangible asset impairment testing are outside the control of management, including interest rates, cost of capital, tax rates, industry growth, credit ratings, foreign exchange rates and labor inflation. Although management has made its best estimates and assumptions based upon current information, actual results could materially differ given the uncertainty of these factors and may require future changes to such estimates and assumptions, including reserves, which may result in future expense or impairment charges.
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Concentration of Credit Risk | Concentration of Credit Risk The Company’s forward exchange contracts generally do not subject the Company to risk due to foreign exchange rate movement, because gains and losses on these instruments generally offset gains and losses on the assets, liabilities and other transactions being hedged. The Company is exposed to credit-related losses in the event of non-performance by counterparties to certain derivative financial instruments. The Company does not obtain collateral or other security to support derivative financial instruments subject to credit risk, but monitors the credit standing of its counterparties.
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Revenue Recognition | Revenue Recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied or at a point in time, which generally occurs either on shipment or on delivery based on contractual terms, which is also when control is transferred. The Company’s primary performance obligation is the distribution and sales of its consumer and commercial products to its customers. In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience. Revenue is measured as the amount of consideration for which the Company expects to be entitled in exchange for transferring goods or providing services. Certain customers may receive cash and/or non-cash incentives such as cash discounts, returns, credits or reimbursements related to defective products, customer discounts (such as volume or trade discounts), cooperative advertising and other customer-related programs, which are accounted for as variable consideration. In some cases, the Company applies judgment, including contractual rates and historical payment trends, when estimating variable consideration. In addition, the Company participates in various programs and arrangements with customers designed to increase the sale of products by these customers. Among the programs negotiated are arrangements under which allowances are earned by customers for attaining agreed-upon sales levels or for participating in specific marketing programs. Coupon programs are also developed on a customer- and territory-specific basis. Under customer programs and arrangements that require sales incentives to be paid in advance, the Company amortizes the amount paid over the period of benefit or contractual sales volume. When incentives are paid in arrears, the Company accrues the estimated amount to be paid based on the program’s contractual terms, expected customer performance and/or estimated sales volume. These estimates are determined using historical customer experience and other factors, which sometimes require significant judgment. Due to the length of time necessary to obtain relevant data from customers, among other factors, actual amounts paid can differ from these estimates. Sales taxes and other similar taxes are excluded from revenue. The Company elected to account for shipping and handling activities as a fulfillment cost. The Company also elected not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.
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Goodwill and Indefinite-Lived Intangibles | Goodwill and Indefinite-Lived Intangibles Goodwill and indefinite-lived intangibles are tested and reviewed for impairment annually during the fourth quarter (on December 1), or more frequently if facts and circumstances warrant. Goodwill Goodwill is tested for impairment at a reporting unit level, and all of the Company’s goodwill is assigned to its reporting units. Reporting units are determined based upon the Company’s organizational structure in place at the date of the goodwill impairment testing and generally one level below the operating segment level. The Company’s operations are comprised of seven reporting units, within its five primary operating segments. The Company may use a qualitative approach, and when appropriate, has bypassed the qualitative and used a quantitative approach, which involves comparing the fair value of each of the reporting units to the carrying value of those reporting units. If the carrying value of a reporting unit exceeds its fair value, an impairment loss would be calculated as the difference between these amounts, limited to the amount of reporting unit goodwill allocated to the reporting unit. The quantitative goodwill impairment testing requires significant use of judgment and assumptions, such as the identification of reporting units; the assignment of assets and liabilities to reporting units; and the estimation of future cash flows, business growth rates, terminal values, discount rates and total enterprise value. The income approach used is the discounted cash flow methodology and is based on five-year cash flow projections. The cash flows projected are analyzed on a debt-free basis (before cash payments to equity and interest-bearing debt investors) in order to develop an enterprise value from operations for the reporting unit. A provision is made, based on these projections, for the value of the reporting unit at the end of the forecast period, or terminal value. The present value of the finite-period cash flows and the terminal value are determined using a selected discount rate. Indefinite-lived intangibles The testing of indefinite-lived intangibles (primarily trademarks and tradenames) under established guidelines for impairment also requires significant use of judgment and assumptions (such as cash flow projections, royalty rates, terminal values and discount rates). An indefinite-lived intangible asset is impaired by the amount its carrying value exceeds its estimated fair value. For impairment testing purposes, the fair value of indefinite-lived intangibles is determined using either the relief from royalty method or the excess earnings method. The relief from royalty method estimates the value of a tradename by discounting the hypothetical avoided royalty payments to their present value over the economic life of the asset. The excess earnings method estimates the value of the intangible asset by quantifying the residual (or excess) cash flows generated by the asset and discounts those cash flows to the present. The excess earnings methodology requires the application of contributory asset charges. Contributory asset charges typically include assumed payments for the use of working capital, tangible assets and other intangible assets. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations.
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Other Long-Lived Assets | Other Long-Lived AssetsThe Company continuously evaluates whether impairment indicators related to its property, plant and equipment, operating leases and other long-lived assets are present. These impairment indicators may include a significant decrease in the market price of a long-lived asset or asset group, early termination of an operating lease, a significant adverse change to the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If impairment indicators are present, the Company estimates the future cash flows for the asset or group of assets. The sum of the undiscounted future cash flows attributable to the asset or group of assets is compared to their carrying amount. The cash flows are estimated utilizing various assumptions regarding future sales and expenses, working capital and proceeds from asset disposals on a basis consistent with the Company’s forecasts. If the carrying amount exceeds the sum of the undiscounted future cash flows, the Company discounts the future cash flows using a discount rate required for a similar investment of like risk and records an impairment charge as the difference between the fair value and the carrying value of the asset group. The Company performs its testing of the asset group at the reporting unit level, as this is the lowest level for which identifiable cash flows are available, with the exception of the Yankee Candle business, where testing is performed at the retail store level. |
Income Taxes | Income Taxes The Company accounts for deferred income taxes using the asset and liability approach. Under this approach, deferred income taxes are recognized based on the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by current enacted tax rates. Valuation allowances are recorded to reduce the deferred tax assets to an amount that will more likely than not be realized. The Company regularly reviews its deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. For uncertain tax positions, the Company applies the provisions of relevant authoritative guidance, which requires application of a “more likely than not” threshold to the recognition and derecognition of tax positions. The Company’s ongoing assessments of the more likely than not outcomes of tax authority examinations and related tax positions require significant judgment and can increase or decrease the Company’s effective tax rate, as well as impact operating results.
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Sales of Accounts Receivables | Sales of Accounts Receivable Factored receivables at December 31, 2022 associated with the Company's existing factoring agreement (the “Customer Receivables Purchase Agreement”) were approximately $420 million, a decrease of approximately $80 million from December 31, 2021. During the second quarter of 2022, the Company amended the Customer Receivables Purchase Agreement to (i) increase the amount of certain customer receivables that may be sold under the agreement, (ii) add new customers to the agreement and (iii) change the reference rate from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the Consolidated Balance Sheet at the time of the sales transaction. The Company classifies the proceeds received from the sales of accounts receivable as an operating cash flow in the Consolidated Statement of Cash Flows. The Company records the discount as other (income) expense, net in the Consolidated Statement of Operations and collections of accounts receivable not yet submitted to the financial institution as a financing cash flow.
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and highly liquid investments that have a maturity of three months or less when purchased. Restricted cash reflects cash received on previously sold customer receivables in connection with the factoring program that are required to be remitted to a financial institution. Restricted cash is reported as prepaid expenses and other current assets on the Consolidated Balance Sheets.
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Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net, include amounts billed and due from customers. Payment terms vary but generally are 90 days or less. An allowance for expected credit losses is based on the amount ultimately expected to be collected from the customer. The Company evaluates the collectability of accounts receivable based on a combination of factors including the length of time the receivables are past due, historical collection experience, current market conditions and forecasted direction of economic and business environment. Accounts deemed uncollectible are written off, net of expected recoveries.
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Capitalized Software Costs | Capitalized Software Costs The Company capitalizes costs associated with internal-use software during the application development stage after both the preliminary project stage has been completed and the Company’s management has authorized and committed to funding for further project development. Capitalized internal-use software costs include: (i) external direct costs of materials and services consumed in developing or obtaining the software; (ii) payroll and payroll-related costs for employees who are directly associated with and who devote time directly to the project; and (iii) interest costs incurred while developing the software. Capitalization of these costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. The Company expenses as incurred research and development, general and administrative, and indirect costs associated with internal-use software. In addition, the Company expenses as incurred training, maintenance and other internal-use software costs incurred during the post-implementation stage. Costs associated with upgrades and enhancements of internal-use software are capitalized only if such modifications result in additional functionality of the software. The Company amortizes internal-use software costs using the straight-line method over the estimated useful life of the software. Capitalized software costs are evaluated annually for indicators of impairment, including but not limited to a significant change in available technology or the manner in which the software is being used. Impaired items are written down to their estimated fair values. Capitalized implementation costs for certain qualified Software-as-a-Service (“SaaS”) arrangements are also subject to the same accounting criteria described above, when the Company does not own the intellectual property for the software license used in the arrangement. SaaS arrangements are included in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets. The straight-line amortization of these costs is presented along with the fees related to the hosted cloud computing service in the Consolidated Statements of Operations.
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Product Liability Reserves | Product Liability Reserves The Company has a self-insurance program for product liability that includes reserves for self-retained losses and certain excess and aggregate risk transfer insurance. The Company uses historical loss experience combined with actuarial evaluation methods, review of significant individual files and the application of risk transfer programs in determining required product liability reserves. The Company’s actuarial evaluation methods take into account claims incurred but not reported when determining the Company’s product liability reserve. While the Company believes that it has adequately reserved for these claims, the ultimate outcome of these matters may exceed the amounts recorded by the Company, and such additional losses may be material to the Company’s Consolidated Financial Statements.
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Product Warranties | Product Warranties In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience.
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Advertising Costs | Advertising CostsThe Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place, and the Company expenses all other advertising and marketing costs when incurred. |
Research and Development Costs | Research and Development CostsResearch and development costs relating to both future and current products are charged to SG&A as incurred. |
Recent Accounting Pronouncements and Adoption of New Accounting Guidance | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In October 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to better consider the effect of the programs on an entity’s working capital, liquidity and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. The Company does not expect the adoption of ASU 2022-04 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In January 2021, the FASB clarified the scope of this guidance with the issuance of ASU 2021-01, Reference Rate Reform: Scope. ASU 2020-04 provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference LIBOR or another reference rate if certain criteria are met. This ASU was further updated with the issuance of ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848, which extends the sunset date of the guidance. ASU 2020-04 may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. Adoption of New Accounting Guidance In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” (Topic 740), which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 became effective for years, and interim periods within those years, beginning after December 15, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
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Restructuring | The Company has engaged and expects to continue to engage in restructuring activities, which requires management to utilize significant estimates related to the timing and amount of severance and other employee separation costs for workforce reductions and other separation programs and other exit costs associated with restructuring activities. The Company's accrual for severance and other employee separation costs depends on whether the costs result from an ongoing severance plan or are one-time costs. The Company accounts for relevant expenses as severance costs when we have an established severance policy, statutory requirements dictate the severance amounts, or if our historical experience is to routinely provide certain benefits to impacted employees. The Company recognizes severance costs when it is probable that benefits will be paid and the amount can be reasonably estimated. The Company estimates one-time severance and other employee costs related to exit and disposal activities not resulting from an ongoing severance plan based on the benefits available to the employees being terminated. The Company recognizes these costs when we identify the specific classification or functions of the employees being terminated, notify the employees who might be included in the termination, and expect to terminate employees within the legally required notification period. When employees are receiving incentives to stay beyond the legally required notification period, we record the cost of their severance over the remaining service period. |
Inventories | Inventories are stated at the lower of cost or net realizable value. The Company reduces its inventory value for estimated obsolete and slow-moving inventory in an amount equal to the difference between the cost of inventory and the net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventory costs include direct materials, direct labor and manufacturing overhead, or when finished goods are sourced, the cost is the amount paid to the third party. |
Property, Plant and Equipment, Net | Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by the Company are as follows: buildings and improvements (20 - 40 years) and machinery and equipment (3 - 15 years). |
Derivative and Interest Rate Contracts | Derivatives Derivative financial instruments are generally used to manage certain commodity, interest rate and foreign currency risks. These instruments primarily include interest rate swaps, forward starting interest rate swaps, forward exchange contracts and options. The Company’s forward exchange contracts and options generally do not subject the Company to exchange rate risk because gains and losses on these instruments generally offset gains and losses on the assets, liabilities and other transactions being hedged. However, these instruments, when settled, impact the Company’s cash flows from operations to the extent the underlying transaction being hedged is not simultaneously settled due to an extension, a renewal or otherwise. On the date when the Company enters into a derivative, the derivative is designated as a hedge of the identified exposure. The Company measures effectiveness of its hedging relationships both at hedge inception and on an ongoing basis. Interest Rate Contracts The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company may use fixed and floating rate swaps to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. Floating rate swaps would be used, depending on market conditions, to convert the fixed rates of long-term debt into short-term variable rates. Fixed rate swaps would be used to reduce the Company’s risk of the possibility of increased interest costs. The settlement of interest rate swaps is included in interest expense.
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Foreign Currency Operations | Foreign Currency OperationsAssets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at year-end. The related translation adjustments are made directly to AOCL. Income and expenses are translated at the average monthly rates of exchange in effect during the year. Foreign currency transaction gains and losses are included in the results of operations and are generally classified in other (income) expense, net, in the Consolidated Statements of Operations. The Company designates certain foreign currency denominated, long-term intercompany financing transactions as being of a long-term investment nature and records gains and losses on the transactions arising from changes in exchange rates as translation adjustments. |
Pensions and Postretirement Benefits | The Company and its subsidiaries have noncontributory pension, profit sharing and contributory 401(k) plans covering substantially all of their international and domestic employees. Pension plan benefits are generally based on years of service and/or compensation. The Company’s funding policy is to contribute not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, the Internal Revenue Code of 1986, as amended, or foreign statutes to ensure that plan assets will be adequate to provide retirement benefits.The funded status of the Company’s defined benefit pension plans and postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. For defined benefit pension and postretirement benefit plans, the benefit obligation is the projected benefit obligation (“PBO”), which represents the actuarial present value of benefits expected to be paid upon retirement based on employee services already rendered and estimated future compensation levels. The fair value of plan assets represents the current market value of assets held for the sole benefit of participants. Over funded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a retirement and postretirement benefit obligation equal to this excess. The current portion of the retirement and postretirement benefit obligations represents the actuarial present value of benefits payable in the next 12 months exceeding the fair value of plan assets, measured on a plan-by-plan basis. This obligation is recorded in other accrued liabilities in the Consolidated Balance Sheets. Net periodic pension and postretirement benefit cost/(income) is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service costs/(credits) and (gains)/losses previously recognized as a component of AOCL and amortization of the net transition asset remaining in AOCL. The service cost component of net benefit cost is recorded in cost of products sold and SG&A in the Consolidated Statements of Operations (unless eligible for capitalization) based on the employees’ respective functions. The other components of net benefit cost are presented separately from service cost within other (income) expense, net in the Consolidated Income Statement.(Gains)/losses and prior service costs/(credits) are recognized as a component of OCL in the Consolidated Statements of Comprehensive Income (Loss) as they arise. Those (gains)/losses and prior service costs/(credits) are subsequently recognized as a component of net periodic cost/(income) pursuant to the recognition and amortization provisions of applicable accounting guidance. (Gains)/losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Prior service costs/(credits) represent the cost of benefit changes attributable to prior service granted in plan amendments. The measurement of benefit obligations and net periodic cost/(income) is based on estimates and assumptions approved by the Company’s management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates and mortality rates. |
Leases | The Company recognizes a right of use (“ROU”) asset and a liability for all leases whose term is more than 12 months at the lease inception date. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term, which includes any extension the Company reasonably expects to exercise. The Company assesses whether certain service arrangements contain embedded leases where the contract conveys the right to use an asset but is not explicitly identified as a lease arrangement; examples include information technology, third-party logistics and original equipment manufacturers. The Company uses incremental borrowing rates, updated quarterly, that reflect its own external unsecured borrowing rates that are risk-adjusted to approximate secured borrowing rates over similar terms. For certain non-real estate leases, the portfolio approach is used. The Company also has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease assets and operating lease liabilities are reported as separate lines in the Consolidated Balance Sheets. The current portion of operating lease liabilities is reported in other accrued liabilities in the Consolidated Balance Sheets. For finance leases, lease payments are allocated between interest expense and reduction of the liability in accordance with an amortization schedule. The ROU asset is amortized on a straight-line basis over the lease term. Assets acquired under finance leases are reported in property, plant and equipment, net. The depreciable life of leasehold improvements and other lease-related assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
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Share-Based Compensation | Stock-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award, which is generally three years for stock options and | to three years for restricted stock units and performance-based restricted stock units. The Company estimates future forfeiture rates based on its historical experience.
Accumulated Other Comprehensive Income (Loss) (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The following tables display the components of accumulated other comprehensive income (loss) (“AOCL”), net of tax, as of and for the years ended December 31, 2022 and 2021 (in millions):
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Schedule of Reclassifications from AOCL to Results of Operations | Reclassifications from AOCL to the results of operations for the years ended December 31, were pre-tax (income) expense of (in millions):
(1)See Footnote 2 for further information. (2)See Footnote 11 for further information. (3)See Footnote 10 for further information.
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Schedule of Income Tax Provision (Benefit) Allocated to Components of AOCL | The income tax provision (benefit) allocated to the components of AOCL for the years ended December 31, are as follows (in millions):
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Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Costs Incurred by Reportable Business Segment | Restructuring costs incurred by reportable business segment for all restructuring activities for the years ended December 31, are as follows (in millions):
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Schedule of Accrued Restructuring Costs Activity | Accrued restructuring costs activity for the year ended December 31, 2022 are as follows (in millions):
Accrued restructuring costs activity for the year ended December 31, 2021 are as follows (in millions):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Inventories | The components of inventories were as follows at December 31, (in millions):
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Accounting Standards Update and Change in Accounting Principle | The following historical financial statement line items within the accompanying financial statements were adjusted as a result of the retrospective application of the change in inventory costing method (in millions, except per share data):
* The impact to the opening retained deficit balance at January 1, 2020 was a reduction to retained deficit of $13 million. The following table presents the unaudited Condensed Consolidated Statements of Operations for each quarter of 2022 and 2021 to reflect the impact of the change from LIFO to FIFO (see Footnote 5) and for each quarter of 2022 the recast associated with the functional currency revisions (in millions, except per share data):
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Property, Plant and Equipment, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following at December 31, (in millions):
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Goodwill and Other Intangible Assets, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Goodwill by Reportable Business Segment | A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2022 and 2021 (in millions):
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Summary of Other Intangible Asset Impairment Charges Allocated to Reporting Segments | The impairment charges for indefinite-lived tradenames were recorded in the Company’s reporting segments as follows for the years ended December 31, (in millions):
(1)During the fourth quarter of 2022, in conjunction with its annual impairment testing, the Company recorded aggregate non-cash impairment charges of $270 million associated with two tradenames in the Home Solutions segment and one tradename in the Learning and Development segment, as the carrying values exceeded their fair values. The decline in fair values for one tradename in the Home Solutions segment and the tradename in the Learning and Development segment reflected a further downward revision to the forecasted cash flows used in connection with the third quarter triggering event assessment, driven by inflationary pressures which are impacting discretionary spending behavior of consumers at higher rates than previously expected, including higher than expected overhead costs. The decline in fair value for the remaining tradename in the Home Solutions segment reflected a change in management's assumptions, including the timing of a labor shortage recovery in a certain international market, which negatively impacted the long-term profitability estimates used to develop the forecasted cash flow projections for the annual impairment test. During the third quarter of 2022, the Company concluded that a triggering event had occurred for one indefinite-lived tradename in each of the Home Appliances and Home Solutions segments, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory and rising interest rates. The decline in global demand is driven primarily by inflationary pressures which are impacting the discretionary spending behavior of consumers. The Company also concluded that a triggering event had occurred for two indefinite-lived tradenames in the Learning and Development segment, as a result of rising interest rates and inflationary pressures. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home Appliances segment and two indefinite-lived tradenames in the Learning and Development segment were impaired. During the third quarter of 2022, the Company recorded an aggregate non-cash impairment charge of $40 million, as the carrying values of these tradenames exceeded their fair values. (2)During the fourth quarter of 2021, in conjunction with its annual impairment testing, the Company recorded non-cash impairment charges of $60 million associated with tradenames in the Commercial Solution and Learning and Development segments, as the carrying values exceeded their fair values, reflecting a downward revision of future expected cash flows, which include the impact of the COVID-19 global pandemic. (3)During the fourth quarter of 2020, in conjunction with its annual impairment testing, the Company recorded a non-cash impairment charge of $20 million associated with a tradename in the Learning and Development segment, as its carrying value exceeded its fair value. The impairment reflected a downward revision of forecasted results due to the impact of the delayed and limited re-opening of schools and offices as a result of the COVID-19 global pandemic, as well as the continued deterioration in sales for slime-related adhesive products. During the first quarter of 2020, as a result of the impairment testing performed in connection with COVID-19 pandemic triggering event, the Company determined that certain of its indefinite-lived intangible assets in all of its operating segments were impaired and recorded non-cash impairment charges of $1.3 billion to reflect the impairment of these indefinite-lived tradenames because their carrying values exceeded their fair values.
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Schedule of Other Intangible Assets and Related Amortization Periods | The table below summarizes the balance of other intangible assets, net and the related amortization periods using the straight-line method and attribution method at December 31, 2022 and 2021 (in millions):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At December 31, 2022, the aggregate estimated intangible amortization amounts for the succeeding five years are as follows (in millions):
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Other Accrued Liabilities (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Accrued Liabilities | Other accrued liabilities included the following at December 31, (in millions):
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt | The following is a summary of outstanding debt at December 31, (in millions):
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Schedule of Maturities of Long-term Debt | The Company’s debt maturities for the five years following December 31, 2022 and thereafter are as follows (in millions):
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Schedule of Fair Value of Senior Notes | The fair values of the Company’s senior notes are based on quoted market prices and are as follows at December 31, (in millions):
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Derivatives and Foreign Currency Operations (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of derivative financial instruments at December 31, (in millions):
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Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges | The following table presents pre-tax gain and (loss) activity for 2022, 2021 and 2020 related to derivative financial instruments designated as effective hedges:
(1)Represents effective portion recognized in Other Comprehensive Loss (“OCL”). (2)Portion reclassified from AOCL to income recognized in interest expense, net. (3)Portion reclassified from AOCL to income recognized in net sales and cost of products sold. (4)Portion reclassified from AOCL to income recognized in other (income) expense, net.
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Employee Benefit and Retirement Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Benefit Obligations | The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s noncontributory defined benefit pension plans, including the SERP, at December 31, (dollars in millions):
(1)The accumulated benefit obligation for all defined benefit pension plans was $1.4 billion and $1.9 billion at December 31, 2022 and 2021, respectively.
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Schedule Of Company's Pension Cost And Supplemental Retirement Plans | The components of pension and postretirement benefit expense for the periods indicated are as follows (dollars in millions):
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Schedule of Expected Benefit Payments | Estimated future benefit payments under the Company’s defined benefit pension plans and postretirement benefit plans are as follows at December 31, 2022 (in millions):
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Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | Summary of under-funded or non-funded pension benefit plans with projected benefit obligations in excess of plan assets at December 31, (in millions):
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Summary of pension plans with accumulated obligations in excess of plan assets at December 31, (in millions):
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Schedule of Allocation of Plan Assets | The composition of domestic pension plan assets at December 31, 2022 and 2021 is as follows (in millions):
The composition of international pension plan assets at December 31, 2022 and 2021 is as follows (in millions):
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Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | A reconciliation of the change in fair value of the defined benefit plans’ assets using significant unobservable inputs (Level 3) for 2022 and 2021 is as follows (in millions):
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes for the years ended December 31, (in millions):
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Schedule of Provision for Income Taxes | The provision for income taxes consists of the following for the years ended December 31, (in millions):
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Reconciliation of U.S. Statutory Rate to Effective Income Tax Rate on Continuing Basis | A reconciliation of the U.S. statutory rate to the effective income tax rate on a continuing basis is as follows for the years ended December 31:
(1)The Company accounts for tax on global intangible low-taxed income (“GILTI”) as a period cost and the effects are included herein.
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Schedule of Components of Net Deferred Tax Assets | Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
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Summary of Changes in Gross Unrecognized Tax Benefits | The following table summarizes the changes in gross unrecognized tax benefits periods indicated are as follows (in millions):
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Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidated Balance Sheet Information, Leases | Supplemental consolidated balance sheet information for leases at December 31, is as follows (in millions):
(1)Net of accumulated depreciation of $18 million and $16 million, respectively.
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Schedule of Lease Costs, Terms, Discount Rates and Supplemental Cash Flow Information | Components of lease expense for the years ended December 31, are as follows (in millions):
(1)Includes short-term leases, which are immaterial. (2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. Remaining lease term and discount rates at December 31, are as follows:
Supplemental cash flow information related to leases for the years ended December 31, are as follows (in millions):
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Schedule of Maturities for Operating Lease Liabilities | Maturities of lease liabilities at December 31, 2022, are as follows (in millions):
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Schedule of Maturities for Finance Lease Liabilities | Maturities of lease liabilities at December 31, 2022, are as follows (in millions):
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computations of Weighted Average Shares Outstanding | The computations of the weighted average shares outstanding for the years ended December 31, are as follows (in millions):
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes In Stock Options | The following table summarizes the changes in the number of shares of common stock for 2022 (shares and aggregate intrinsic value in millions):
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Schedule of Weighted Average Assumptions Used to Determined the Fair Value of Stock Options Granted | The weighted average assumptions used to determine the fair value of stock options granted for the years ended December 31, are as follows:
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Summary of Changes of Restricted Stock and Restricted Stock Units | The following table summarizes the changes in the number of outstanding restricted stock units for 2022 (shares in millions):
(1)The Grant Adjustment primarily relates to an adjustment in the quantity of Stock-Price Based RSUs ultimately vested during 2022 that were dependent on the level of achievement of the specified performance conditions.
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Summary of Total Unrecognized Compensation Cost Related to Stock-based Compensation | The following table summarizes the Company's total unrecognized compensation cost related to stock-based compensation at December 31, 2022:
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Fair Value Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non-Pension Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s non-pension financial assets and liabilities, which are measured at fair value on a recurring basis (in millions):
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Summary of Assets Measured at Fair Value on a Nonrecurring Basis | The following table summarizes the assets that are measured at fair value on a nonrecurring basis at December 1, (in millions):
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company’s five primary operating segments are as follows:
(1) and Ball®, TM of Ball Corporation, used under license. This structure reflects the manner in which the chief operating decision maker (“CODM”) regularly assesses information for decision-making purposes, including the allocation of resources. The Company also provides general corporate services to its segments which is reported as a non-operating segment, Corporate. The Company’s segment and geographic results are as follows at and for the years ended December 31, (in millions):
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Schedule of Geographic Area Information |
(1)All intercompany transactions have been eliminated. (2)Operating income (loss) by segment is net sales less cost of products sold, SG&A, restructuring and impairment of goodwill, intangibles and other assets. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income (loss). (3)Commercial Solutions net sales, operating income, depreciation and amortization, capital expenditures and segment assets exclude the CH&S business as a result of the sale of this business starting from the end of the first quarter of 2022. (4)Geographic sales information is based on the region from which the products are shipped and invoiced. Long-lived assets by geography are not presented because it is impracticable to do so.
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Summary of Disaggregation of Revenue by Major Product Grouping Source and Geography | The following table disaggregates revenue by major product grouping source and geography for the years ended December 31, (in millions):
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Supplementary Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle | The following historical financial statement line items within the accompanying financial statements were adjusted as a result of the retrospective application of the change in inventory costing method (in millions, except per share data):
* The impact to the opening retained deficit balance at January 1, 2020 was a reduction to retained deficit of $13 million. The following table presents the unaudited Condensed Consolidated Statements of Operations for each quarter of 2022 and 2021 to reflect the impact of the change from LIFO to FIFO (see Footnote 5) and for each quarter of 2022 the recast associated with the functional currency revisions (in millions, except per share data):
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Divestiture Activity (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
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Aug. 31, 2020 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2022 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss from sale of businesses, net | $ 136 | $ 4 | $ (9) | ||
Discontinued Operations, Disposed of by Means Other than Sale | Learning and Development | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss from sale of businesses, net | $ (8) | ||||
CH&S | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale of business, consideration received | $ 593 | ||||
(Gain) loss from sale of businesses, net | $ (136) |
Accumulated Other Comprehensive Income (Loss) - Schedule of Income Tax Provision (Benefit) Allocated to Components of OCI (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Equity [Abstract] | |||
Foreign currency translation adjustments | $ 2 | $ 20 | $ (28) |
Unrecognized pension and postretirement costs | (10) | 20 | 23 |
Derivative financial instruments | 1 | 9 | (1) |
Income tax provision (benefit) related to AOCL | $ (7) | $ 49 | $ (6) |
Restructuring - Schedule of Restructuring Costs Incurred by Reportable Business Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | $ 15 | $ 16 | $ 21 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 1 | 1 | 1 |
Commercial Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 1 | 4 | 4 |
Home Appliances | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 1 | 4 | 1 |
Home Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 3 | 3 | 10 |
Learning and Development | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 4 | 1 | 3 |
Outdoor and Recreation | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | $ 5 | $ 3 | $ 2 |
Restructuring - Schedule of Accrued Restructuring Costs Activity (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 10 | $ 11 | |
Restructuring Costs, Net | 15 | 16 | $ 21 |
Payments | (18) | (16) | |
Foreign Currency and Other | (1) | ||
Ending balance | 7 | 10 | 11 |
Severance and termination costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 8 | 7 | |
Restructuring Costs, Net | 13 | 13 | |
Payments | (14) | (12) | |
Foreign Currency and Other | 0 | ||
Ending balance | 7 | 8 | 7 |
Contract termination and other costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 2 | 4 | |
Restructuring Costs, Net | 2 | 3 | |
Payments | (4) | (4) | |
Foreign Currency and Other | (1) | ||
Ending balance | $ 0 | $ 2 | $ 4 |
Inventories - Components of Net Inventories (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 285 | $ 310 |
Work-in-process | 218 | 167 |
Finished products | 1,700 | 1,610 |
Total inventories | $ 2,203 | $ 2,087 |
Inventories - Schedule of Change in Accounting Estimate (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
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Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Jan. 01, 2020 |
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Consolidated Statement of Operations | ||||||||||||
Net sales | $ 2,285 | $ 2,252 | $ 2,534 | $ 2,388 | $ 2,805 | $ 2,787 | $ 2,709 | $ 2,288 | $ 9,459 | $ 10,589 | $ 9,385 | |
Cost of products sold | 1,685 | 1,594 | 1,698 | 1,648 | 1,968 | 1,904 | 1,803 | 1,551 | 6,625 | 7,226 | 6,301 | |
Operating income (loss) | (273) | 40 | 328 | 217 | 170 | 316 | 329 | 198 | 312 | 1,013 | (629) | |
Income (loss) before income taxes | (330) | (41) | 252 | 276 | 111 | 250 | 267 | 132 | 157 | 760 | (1,001) | |
Income tax expense (benefit) | (81) | (60) | 53 | 48 | 13 | 35 | 51 | 39 | (40) | 138 | (235) | |
Net income (loss) | $ (249) | $ 19 | $ 199 | $ 228 | $ 98 | $ 215 | $ 216 | $ 93 | $ 197 | $ 622 | $ (766) | |
Weighted average common shares outstanding: | ||||||||||||
Basic (in shares) | 413,600 | 413,600 | 413,800 | 421,900 | 425,500 | 425,400 | 425,400 | 424,900 | 415,700 | 425,300 | 424,100 | |
Diluted (in shares) | 413,600 | 414,600 | 415,700 | 424,700 | 428,300 | 428,500 | 427,800 | 427,600 | 417,400 | 428,000 | 424,100 | |
Earnings (loss) per share: | ||||||||||||
Basic (in USD per share) | $ (0.60) | $ 0.05 | $ 0.48 | $ 0.54 | $ 0.23 | $ 0.51 | $ 0.51 | $ 0.22 | $ 0.47 | $ 1.46 | $ (1.81) | |
Diluted (in USD per share) | $ (0.60) | $ 0.05 | $ 0.48 | $ 0.54 | $ 0.23 | $ 0.50 | $ 0.50 | $ 0.22 | $ 0.47 | $ 1.45 | $ (1.81) | |
Consolidated Statement of Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | $ (249) | $ 19 | $ 199 | $ 228 | $ 98 | $ 215 | $ 216 | $ 93 | $ 197 | $ 622 | $ (766) | |
Total other comprehensive income (loss), net of tax | (129) | (2) | 40 | |||||||||
Comprehensive income (loss) | 68 | 620 | (726) | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 2 | (4) | |||||||||
Total comprehensive income (loss) attributable to parent | 68 | 618 | (722) | |||||||||
Consolidated Statement of Cash Flows | ||||||||||||
Net income (loss) | (249) | 19 | 199 | 228 | 98 | 215 | 216 | 93 | 197 | 622 | (766) | |
Deferred income taxes | 97 | (24) | (260) | |||||||||
Inventories | (276) | (463) | (34) | |||||||||
Consolidated Balance Sheets | ||||||||||||
Inventories | 2,203 | 2,087 | 2,203 | 2,087 | ||||||||
Deferred income taxes, net | 290 | 386 | 290 | 386 | ||||||||
Retained deficit* | (2,338) | (2,535) | (2,338) | (2,535) | ||||||||
As Previously Reported | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
Net sales | 2,285 | 2,252 | 2,534 | 2,388 | 2,805 | 2,787 | 2,709 | 2,288 | 9,459 | 10,589 | 9,385 | |
Cost of products sold | 1,681 | 1,599 | 1,709 | 1,648 | 1,970 | 1,939 | 1,827 | 1,557 | 6,637 | 7,293 | 6,306 | |
Operating income (loss) | (269) | 35 | 317 | 217 | 168 | 281 | 305 | 192 | 300 | 946 | (634) | |
Income (loss) before income taxes | (326) | (30) | 254 | 282 | 109 | 215 | 243 | 126 | 145 | 693 | (1,006) | |
Income tax expense (benefit) | (80) | (61) | 50 | 48 | 13 | 25 | 46 | 37 | (43) | 121 | (236) | |
Net income (loss) | $ (246) | $ 31 | $ 204 | $ 234 | $ 96 | $ 190 | $ 197 | $ 89 | $ 188 | $ 572 | $ (770) | |
Weighted average common shares outstanding: | ||||||||||||
Basic (in shares) | 413,600 | 413,600 | 413,800 | 421,900 | 425,500 | 425,400 | 425,400 | 424,900 | 415,700 | 425,300 | 424,100 | |
Diluted (in shares) | 413,600 | 414,600 | 415,700 | 424,700 | 428,300 | 428,500 | 427,800 | 427,600 | 417,400 | 428,000 | 424,100 | |
Earnings (loss) per share: | ||||||||||||
Basic (in USD per share) | $ (0.59) | $ 0.07 | $ 0.49 | $ 0.55 | $ 0.23 | $ 0.45 | $ 0.46 | $ 0.21 | $ 0.45 | $ 1.34 | $ (1.82) | |
Diluted (in USD per share) | $ (0.59) | $ 0.07 | $ 0.49 | $ 0.55 | $ 0.22 | $ 0.44 | $ 0.46 | $ 0.21 | $ 0.45 | $ 1.34 | $ (1.82) | |
Consolidated Statement of Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | $ (246) | $ 31 | $ 204 | $ 234 | $ 96 | $ 190 | $ 197 | $ 89 | $ 188 | $ 572 | $ (770) | |
Total other comprehensive income (loss), net of tax | (129) | (2) | 40 | |||||||||
Comprehensive income (loss) | 59 | 570 | (730) | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 2 | (4) | |||||||||
Total comprehensive income (loss) attributable to parent | 59 | 568 | (726) | |||||||||
Consolidated Statement of Cash Flows | ||||||||||||
Net income (loss) | (246) | 31 | 204 | 234 | 96 | 190 | 197 | 89 | 188 | 572 | (770) | |
Deferred income taxes | 94 | (41) | (261) | |||||||||
Inventories | (264) | (396) | (29) | |||||||||
Consolidated Balance Sheets | ||||||||||||
Inventories | 2,101 | 1,997 | 2,101 | 1,997 | ||||||||
Deferred income taxes, net | 316 | 409 | 316 | 409 | ||||||||
Retained deficit* | (2,414) | (2,602) | (2,414) | (2,602) | ||||||||
Impact of Change to FIFO | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
Net sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Cost of products sold | 4 | (5) | (11) | 0 | (2) | (35) | (24) | (6) | (12) | (67) | (5) | |
Operating income (loss) | (4) | 5 | 11 | 0 | 2 | 35 | 24 | 6 | 12 | 67 | 5 | |
Income (loss) before income taxes | (4) | 5 | 11 | 0 | 2 | 35 | 24 | 6 | 12 | 67 | 5 | |
Income tax expense (benefit) | (1) | 1 | 3 | 0 | 0 | 10 | 5 | 2 | 3 | 17 | 1 | |
Net income (loss) | (3) | 4 | 8 | 0 | $ 2 | $ 25 | $ 19 | $ 4 | $ 9 | $ 50 | $ 4 | |
Weighted average common shares outstanding: | ||||||||||||
Basic (in shares) | ||||||||||||
Diluted (in shares) | ||||||||||||
Earnings (loss) per share: | ||||||||||||
Basic (in USD per share) | $ 0.02 | $ 0.12 | $ 0.01 | |||||||||
Diluted (in USD per share) | $ 0.02 | $ 0.11 | $ 0.01 | |||||||||
Consolidated Statement of Comprehensive Income (Loss) | ||||||||||||
Net income (loss) | (3) | 4 | 8 | 0 | $ 2 | $ 25 | $ 19 | $ 4 | $ 9 | $ 50 | $ 4 | |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | |||||||||
Comprehensive income (loss) | 9 | 50 | 4 | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Total comprehensive income (loss) attributable to parent | 9 | 50 | 4 | |||||||||
Consolidated Statement of Cash Flows | ||||||||||||
Net income (loss) | (3) | $ 4 | $ 8 | $ 0 | 2 | $ 25 | $ 19 | $ 4 | 9 | 50 | 4 | |
Deferred income taxes | 3 | 17 | 1 | |||||||||
Inventories | (12) | (67) | $ (5) | |||||||||
Consolidated Balance Sheets | ||||||||||||
Inventories | 102 | 90 | 102 | 90 | ||||||||
Deferred income taxes, net | (26) | (23) | (26) | (23) | ||||||||
Retained deficit* | $ 76 | $ 67 | $ 76 | $ 67 | $ 13 |
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Continuing Operations | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 196 | $ 205 | $ 200 |
Minimum | Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 15 years |
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,073 | $ 3,147 |
Less: Accumulated depreciation | (1,889) | (1,943) |
Total property, plant and equipment | 1,184 | 1,204 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 76 | 82 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 648 | 678 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,349 | $ 2,387 |
Goodwill and Other Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Detail) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 97 |
2024 | 89 |
2025 | 79 |
2026 | 68 |
2027 | 59 |
Thereafter | $ 568 |
Other Accrued Liabilities (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Customer accruals | $ 636 | $ 715 |
Accrued self-insurance liabilities, contingencies and warranty | 99 | 125 |
Operating lease liabilities | 121 | 122 |
Accrued marketing and freight expenses | 73 | 59 |
Accrued interest expense | 63 | 56 |
Accrued income taxes | 53 | 43 |
Other | 227 | 244 |
Other accrued liabilities | $ 1,272 | $ 1,364 |
Debt - Schedule of Maturities of Long-term Debt (Detail) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 | $ 621 |
2024 | 201 |
2025 | 547 |
2026 | 1,985 |
2027 | 500 |
Thereafter | 1,587 |
Total | $ 5,441 |
Debt - Schedule of Fair Value of Senior Notes (Detail) - Senior notes - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Fair Value | $ 4,511 | $ 5,477 |
Book Value | $ 4,756 | $ 4,880 |
Derivatives and Foreign Currency Operations - Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in OCI | $ 45 | $ 83 | $ (88) |
Reclassified from AOCL to Income | 21 | (23) | 6 |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in OCI | 0 | 0 | 0 |
Reclassified from AOCL to Income | (6) | (6) | (7) |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in OCI | 24 | 14 | 4 |
Reclassified from AOCL to Income | 27 | (17) | 13 |
Cross-currency Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in OCI | 21 | 69 | (92) |
Reclassified from AOCL to Income | $ 0 | $ 0 | $ 0 |
Employee Benefit and Retirement Plans - Summary of Under-Funded or Non-Funded Pension Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 311 | $ 469 |
Fair value of plan assets | $ 125 | $ 205 |
Employee Benefit and Retirement Plans - Summary of Pension Plans with Accumulated Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 303 | $ 454 |
Fair value of plan assets | $ 123 | $ 205 |
Employee Benefit and Retirement Plans - Summary of Reconciliation of Change in Fair Value Measurement of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs (Level 3) (Detail) - Level 3 - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 9 | $ 10 |
Unrealized losses | (101) | (1) |
Purchases, sales, settlements and other, net | 286 | |
Fair value of plan assets at end of year | $ 194 | $ 9 |
Employee Benefit and Retirement Plans - Schedule of Estimated Future Benefit Payments Under Defined Benefit Pension Plans and Postretirement Benefit Plans (Detail) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 110 |
2024 | 108 |
2025 | 107 |
2026 | 107 |
2027 | 106 |
Thereafter | 507 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 4 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
2027 | 3 |
Thereafter | $ 11 |
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax [Line Items] | |||||||||||
Income (loss) before income taxes | $ (330) | $ (41) | $ 252 | $ 276 | $ 111 | $ 250 | $ 267 | $ 132 | $ 157 | $ 760 | $ (1,001) |
United States | |||||||||||
Income Tax [Line Items] | |||||||||||
Domestic | (698) | (353) | (923) | ||||||||
Foreign | |||||||||||
Income Tax [Line Items] | |||||||||||
Foreign | $ 855 | $ 1,113 | $ (78) |
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Current: | |||||||||||
Federal | $ (245) | $ 48 | $ (50) | ||||||||
State | 6 | 17 | 1 | ||||||||
Foreign | 102 | 97 | 74 | ||||||||
Total current | (137) | 162 | 25 | ||||||||
Deferred: | |||||||||||
Federal | 163 | (26) | (136) | ||||||||
State | (34) | (20) | (32) | ||||||||
Foreign | (32) | 22 | (92) | ||||||||
Total deferred | 97 | (24) | (260) | ||||||||
Total income tax provision (benefit) | $ (81) | $ (60) | $ 53 | $ 48 | $ 13 | $ 35 | $ 51 | $ 39 | $ (40) | $ 138 | $ (235) |
Income Taxes - Reconciliation of U.S. Statutory Rate to Effective Income Tax Rate on Continuing Basis (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
Add (deduct) effect of: | |||
State income taxes, net of federal income tax effect | (14.80%) | (0.50%) | 2.50% |
U.S foreign inclusions and foreign tax credit | (43.50%) | 3.60% | 3.70% |
Foreign rate differential | (47.20%) | (11.60%) | 2.70% |
Change in uncertain tax positions | 16.70% | 0.10% | 4.50% |
Change in valuation allowance reserve | (13.80%) | (3.80%) | 2.90% |
Impairments | 20.70% | 0.00% | (4.40%) |
Sale of businesses | (21.20%) | 0.00% | 0.00% |
Capital loss | 0.00% | (2.10%) | 3.00% |
Reversal of outside basis difference | 1.60% | 0.40% | (5.20%) |
Non-deductible compensation | 1.90% | 0.40% | (1.20%) |
Other taxes | 4.50% | 1.30% | (0.90%) |
U.S. income inclusions on asset transfers | 50.30% | 11.10% | (6.90%) |
Foreign exchange | 2.00% | 0.00% | 0.00% |
Other | (3.70%) | (1.70%) | 1.80% |
Effective rate | (25.50%) | 18.20% | 23.50% |
Income Taxes - Schedule of Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred tax assets: | ||
Accruals | $ 153 | $ 156 |
Inventory | 84 | 56 |
Pension and postretirement benefits | 49 | 32 |
Net operating losses | 295 | 330 |
Foreign tax credits | 27 | 150 |
Capital loss carryforward | 41 | 257 |
Operating lease liabilities | 169 | 169 |
Other | 180 | 158 |
Total gross deferred tax assets | 998 | 1,308 |
Less valuation allowance | (148) | (186) |
Net deferred tax assets after valuation allowance | 850 | 1,122 |
Deferred tax liabilities: | ||
Accelerated depreciation | (119) | (107) |
Amortizable intangibles | (114) | (260) |
Outside basis differences | (96) | (96) |
Operating lease assets | (154) | (152) |
U.S. foreign inclusion recapture | (6) | (62) |
Other | (71) | (59) |
Total gross deferred tax liabilities | (560) | (736) |
Net deferred tax assets | $ 290 | $ 386 |
Income Taxes - Deferred Tax Amounts Classified in the Balance Sheet (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred tax assets | $ 810 | $ 814 |
Noncurrent deferred tax liabilities | (520) | (428) |
Net deferred tax assets | $ 290 | $ 386 |
Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits beginning balance | $ 457 | $ 452 | $ 474 |
Increases (decreases): | |||
Increases in tax positions for prior years | 1 | 1 | 4 |
Decreases in tax positions for prior years | (3) | (4) | 0 |
Increase in tax positions for the current period | 44 | 23 | 40 |
Settlements with taxing authorities | (13) | (2) | 0 |
Lapse of statute of limitations | (10) | (12) | (66) |
Cumulative translation adjustments | 0 | (1) | 0 |
Unrecognized tax benefits ending balance | $ 476 | $ 457 | $ 452 |
Leases - Schedule of Consolidated Statement Of Operation Related To Leases (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Operating lease cost: | ||
Operating lease cost | $ 172 | $ 166 |
Variable lease costs | 21 | 23 |
Finance lease cost | ||
Amortization of leased assets | $ 4 | $ 4 |
Leases - Schedule Of Remaining Lease Term and Discount Rates (Detail) |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Weighted-average remaining lease term (years): | ||
Operating leases | 8 years | 8 years |
Finance leases | 1 year | 2 years |
Weighted-average discount rate: | ||
Operating leases | 4.60% | 3.40% |
Finance leases | 0.80% | 3.60% |
Leases - Schedule Of Supplemental Cash Flow Related To Leases (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 160 | $ 163 |
Financing cash flows from finance leases | 3 | 4 |
Right of use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 135 | $ 144 |
Leases - Schedule Of Maturities Of Lease Liabilities (Detail) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Operating Leases | |
2023 | $ 145 |
2024 | 121 |
2025 | 98 |
2026 | 80 |
2027 | 63 |
Thereafter | 216 |
Total lease payments | 723 |
Less: imputed interest | (90) |
Present value of lease liabilities | 633 |
Finance Leases | |
2023 | 1 |
2024 | 1 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 2 |
Less: imputed interest | 0 |
Present value of lease liabilities | $ 2 |
Earnings Per Share - Schedule of Computations of Weighted Average Shares Outstanding (Detail) - shares shares in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Basic (in shares) | 413,600 | 413,600 | 413,800 | 421,900 | 425,500 | 425,400 | 425,400 | 424,900 | 415,700 | 425,300 | 424,100 |
Dilutive securities (in shares) | 1,700 | 2,700 | 0 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 413,600 | 414,600 | 415,700 | 424,700 | 428,300 | 428,500 | 427,800 | 427,600 | 417,400 | 428,000 | 424,100 |
Restricted Stock | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Potentially dilutive restricted share awards excluded from computation of diluted EPS (in shares) | 1,100 |
Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 25, 2022 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Feb. 06, 2022 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Common stock repurchased (in shares) | 275.0 | 50.0 | ||||
Purchase price per share (in USD per share) | $ 25.86 | $ 22.01 | ||||
Share Repurchase Program | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 375,000,000 | |||||
Performance Shares | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Potentially dilutive restricted share awards excluded from computation of diluted EPS (in shares) | 0.1 | 0.0 | 0.0 |
Share-Based Compensation - Summary of Weighted Average Assumptions Used to Determine Fair Value of Stock Options Granted (Details) - Stock options |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 6 years | 6 years |
Risk-free interest rate | 1.90% | 0.80% |
Expected volatility | 42.00% | 44.20% |
Expected dividend yield | 5.10% | 5.10% |
Share-Based Compensation - Summary of Total Unrecognized Compensation Cost Related to Stock-based Compensation (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 26 |
Weighted Average Period of Expense Recognition (in years) | 1 year |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 18 |
Weighted Average Period of Expense Recognition (in years) | 1 year |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 8 |
Weighted Average Period of Expense Recognition (in years) | 1 year |
Fair Value Disclosures - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Finite-Lived Intangible Assets, Fair Value Disclosure | $ 129 | $ 47 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Indefinite-lived intangibles | $ 129 | $ 47 |
Segment Information - Additional Information (Detail) - segment |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Sales Information [Line Items] | ||||
Number of reportable segments | 5 | |||
Home And Commercial Solutions | Subsequent event | ||||
Sales Information [Line Items] | ||||
Number of operating segments | 1 | |||
Learning And Development And Outdoor And Recreation | ||||
Sales Information [Line Items] | ||||
Number of operating segments | 2 | |||
Walmart Inc. and Subsidiaries | Revenue from Contract with Customer | Customer Concentration Risk | ||||
Sales Information [Line Items] | ||||
Percentage of sales by major customer | 14.00% | 15.00% | 15.00% | |
Amazon | Revenue from Contract with Customer | Customer Concentration Risk | ||||
Sales Information [Line Items] | ||||
Percentage of sales by major customer | 13.00% | 13.00% | 12.00% |
Supplementary Quarterly Financial Data (Unaudited) - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Change in Accounting Estimate [Line Items] | |||||||
Additional expense | $ 8 | $ (24) | $ (21) | $ 118 | $ 81 | $ 8 | $ (78) |
Reclassification from AOCL | 1,011 | 1,011 | 882 | ||||
Retained deficit* | (2,338) | $ (2,338) | $ (2,535) | ||||
Impact of Revision | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Additional expense | $ 0 | (16) | (13) | (6) | |||
Reclassification from AOCL | 35 | 19 | 6 | ||||
Retained deficit* | $ 35 | $ 19 | $ 6 |
Supplementary Quarterly Financial Data (Unaudited) - Schedule of Change in Accounting Estimate (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Consolidated Statement of Operations | |||||||||||
Net sales | $ 2,285 | $ 2,252 | $ 2,534 | $ 2,388 | $ 2,805 | $ 2,787 | $ 2,709 | $ 2,288 | $ 9,459 | $ 10,589 | $ 9,385 |
Cost of products sold | 1,685 | 1,594 | 1,698 | 1,648 | 1,968 | 1,904 | 1,803 | 1,551 | 6,625 | 7,226 | 6,301 |
Operating income (loss) | (273) | 40 | 328 | 217 | 170 | 316 | 329 | 198 | 312 | 1,013 | (629) |
Other (income) expense, net | (8) | 24 | 21 | (118) | (81) | (8) | 78 | ||||
Income (loss) before income taxes | (330) | (41) | 252 | 276 | 111 | 250 | 267 | 132 | 157 | 760 | (1,001) |
Income tax expense (benefit) | (81) | (60) | 53 | 48 | 13 | 35 | 51 | 39 | (40) | 138 | (235) |
Net income (loss) | $ (249) | $ 19 | $ 199 | $ 228 | $ 98 | $ 215 | $ 216 | $ 93 | $ 197 | $ 622 | $ (766) |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 413,600 | 413,600 | 413,800 | 421,900 | 425,500 | 425,400 | 425,400 | 424,900 | 415,700 | 425,300 | 424,100 |
Diluted (in shares) | 413,600 | 414,600 | 415,700 | 424,700 | 428,300 | 428,500 | 427,800 | 427,600 | 417,400 | 428,000 | 424,100 |
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ (0.60) | $ 0.05 | $ 0.48 | $ 0.54 | $ 0.23 | $ 0.51 | $ 0.51 | $ 0.22 | $ 0.47 | $ 1.46 | $ (1.81) |
Diluted (in USD per share) | $ (0.60) | $ 0.05 | $ 0.48 | $ 0.54 | $ 0.23 | $ 0.50 | $ 0.50 | $ 0.22 | $ 0.47 | $ 1.45 | $ (1.81) |
As Reported | |||||||||||
Consolidated Statement of Operations | |||||||||||
Net sales | $ 2,285 | $ 2,252 | $ 2,534 | $ 2,388 | $ 2,805 | $ 2,787 | $ 2,709 | $ 2,288 | $ 9,459 | $ 10,589 | $ 9,385 |
Cost of products sold | 1,681 | 1,599 | 1,709 | 1,648 | 1,970 | 1,939 | 1,827 | 1,557 | 6,637 | 7,293 | 6,306 |
Operating income (loss) | (269) | 35 | 317 | 217 | 168 | 281 | 305 | 192 | 300 | 946 | (634) |
Other (income) expense, net | (8) | 8 | 8 | (124) | |||||||
Income (loss) before income taxes | (326) | (30) | 254 | 282 | 109 | 215 | 243 | 126 | 145 | 693 | (1,006) |
Income tax expense (benefit) | (80) | (61) | 50 | 48 | 13 | 25 | 46 | 37 | (43) | 121 | (236) |
Net income (loss) | $ (246) | $ 31 | $ 204 | $ 234 | $ 96 | $ 190 | $ 197 | $ 89 | $ 188 | $ 572 | $ (770) |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 413,600 | 413,600 | 413,800 | 421,900 | 425,500 | 425,400 | 425,400 | 424,900 | 415,700 | 425,300 | 424,100 |
Diluted (in shares) | 413,600 | 414,600 | 415,700 | 424,700 | 428,300 | 428,500 | 427,800 | 427,600 | 417,400 | 428,000 | 424,100 |
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ (0.59) | $ 0.07 | $ 0.49 | $ 0.55 | $ 0.23 | $ 0.45 | $ 0.46 | $ 0.21 | $ 0.45 | $ 1.34 | $ (1.82) |
Diluted (in USD per share) | $ (0.59) | $ 0.07 | $ 0.49 | $ 0.55 | $ 0.22 | $ 0.44 | $ 0.46 | $ 0.21 | $ 0.45 | $ 1.34 | $ (1.82) |
Impact of Revision | |||||||||||
Consolidated Statement of Operations | |||||||||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Cost of products sold | 0 | 0 | 0 | 0 | |||||||
Operating income (loss) | 0 | 0 | 0 | 0 | |||||||
Other (income) expense, net | 0 | 16 | 13 | 6 | |||||||
Income (loss) before income taxes | 0 | (16) | (13) | (6) | |||||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |||||||
Net income (loss) | 0 | (16) | (13) | (6) | |||||||
Impact of Change to FIFO | |||||||||||
Consolidated Statement of Operations | |||||||||||
Net sales | 0 | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of products sold | 4 | (5) | (11) | 0 | (2) | (35) | (24) | (6) | (12) | (67) | (5) |
Operating income (loss) | (4) | 5 | 11 | 0 | 2 | 35 | 24 | 6 | 12 | 67 | 5 |
Other (income) expense, net | 0 | 0 | 0 | 0 | |||||||
Income (loss) before income taxes | (4) | 5 | 11 | 0 | 2 | 35 | 24 | 6 | 12 | 67 | 5 |
Income tax expense (benefit) | (1) | 1 | 3 | 0 | 0 | 10 | 5 | 2 | 3 | 17 | 1 |
Net income (loss) | $ (3) | $ 4 | $ 8 | $ 0 | $ 2 | $ 25 | $ 19 | $ 4 | $ 9 | $ 50 | $ 4 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | |||||||||||
Diluted (in shares) | |||||||||||
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ 0.02 | $ 0.12 | $ 0.01 | ||||||||
Diluted (in USD per share) | $ 0.02 | $ 0.11 | $ 0.01 |
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reserve for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 27 | $ 36 | $ 29 |
Provision | 11 | 1 | 17 |
Other | 0 | (2) | 0 |
Write-offs/ Disposition | (7) | (8) | (10) |
Balance at End of Period | 31 | 27 | 36 |
Inventory Reserves (including excess, obsolescence and shrink reserves) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 92 | 82 | 78 |
Provision | 61 | 78 | 68 |
Other | 2 | (2) | 2 |
Write-offs/ Disposition | (77) | (66) | (66) |
Balance at End of Period | 78 | 92 | 82 |
Income Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 186 | 213 | 271 |
Provision | 15 | 31 | 30 |
Other | (5) | (7) | 5 |
Write-offs/ Disposition | (48) | (51) | (93) |
Balance at End of Period | $ 148 | $ 186 | $ 213 |
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