Newell Brands Announces Fourth Quarter and Full Year 2020 Results

February 12, 2021

Q4 Net Sales Growth 2.5%; Core Sales Growth 4.9%
Q4 Diluted EPS $0.30; Normalized Diluted EPS $0.56
Full Year Operating Cash Flow Exceeds $1.4 Billion
Provides Initial Outlook for 2021

ATLANTA--(BUSINESS WIRE)--Feb. 12, 2021-- Newell Brands (NASDAQ: NWL) today announced its fourth quarter and full year 2020 financial results.

"We gained considerable momentum on our turnaround in 2020 and laid a solid foundation to deliver sustainable, profitable growth in the future,” said Ravi Saligram, Newell Brands President and CEO. “We are proud of our accomplishments in 2020, returning to meaningful core sales growth and operating margin improvement in the back half of the year, delivering stellar cash flow, significantly reducing complexity, improving productivity, accelerating eCommerce growth, and improving customer relationships. The strength and resilience of our portfolio shone through as growth in Food, Commercial and Appliances & Cookware business units offset Writing softness caused by the stay at home pandemic related phenomenon. I am excited about Newell's prospects and feel our best days are ahead as we focus on sustaining top line growth, strengthening our brands through insights and innovation, focus on omni-channel initiatives, expand distribution and begin to unlock international opportunities.”

Chris Peterson, Chief Financial Officer and President, Business Operations, said, “We ended the fourth quarter on a very strong note, delivering mid-single-digit core sales growth, operating margin expansion, excellent cash flow, and double-digit normalized earnings per share growth, all ahead of our expectations. Full year results showed sequential improvement across key metrics, with operating cash flow exceeding $1.4 billion and free cash flow productivity above 150%, enabled by progress on working capital. We strengthened the balance sheet, exiting the year with a leverage ratio of 3.5x. As we look out to 2021, we are projecting low single digit core sales growth, normalized operating margin improvement of 30 to 60 basis points, normalized diluted EPS of $1.55 to $1.65, and operating cash flow of approximately $1.0 billion.”

Fourth Quarter 2020 Executive Summary

  • Net sales were $2.7 billion, an increase of 2.5 percent compared with the prior year period.
  • Core sales grew 4.9 percent compared with the prior year period. Six of eight business units and every major region increased core sales compared with the prior year period.
  • Reported operating margin was 9.2 percent compared with 5.0 percent in the prior year period. Normalized operating margin was 11.4 percent compared with 11.3 percent in the prior year period.
  • Reported diluted earnings per share were $0.30 compared with $1.87 per share in the prior year period.
  • Normalized diluted earnings per share were $0.56 compared with $0.42 per share in the prior year period.
  • Full year 2020 operating cash flow was $1.4 billion compared with $1.0 billion in the prior year period, reflecting strong progress on working capital initiatives.
  • The company's leverage ratio came down to 3.5x at the end of the fourth quarter from 4.0x at the end of the prior year period.
  • The company completed a tender offer for $300 million of its 3.85 percent senior notes due 2023 in the fourth quarter.
  • The company initiated its full year 2021 outlook, with expected normalized earnings per share of $1.55 to $1.65 and operating cash flow of approximately $1.0 billion.

Fourth Quarter 2020 Operating Results

Net sales were $2.7 billion, a 2.5 percent increase compared to the prior year period, as core sales growth of 4.9 percent was partially offset by the impact of unfavorable foreign exchange, as well as business and retail store exits.

Reported gross margin was 32.9 percent compared with 32.5 percent in the prior year period, reflecting the benefit from FUEL productivity savings, as well as the headwind from business unit mix, COVID-related expenses and inflation. Normalized gross margin was 32.9 percent compared with 33.5 percent in the prior year period.

Reported operating income was $248 million compared with $132 million in the prior year period. Reported operating margin was 9.2 percent compared to 5.0 percent in the prior year period. Normalized operating income was $307 million, or 11.4 percent of sales, compared with $296 million, or 11.3 percent of sales, in the prior year period.

Interest expense was $69 million compared with $70 million in the prior year period, as the company reduced its debt balance.

The company reported a tax benefit of $26 million compared with a tax benefit of $721 million in the prior year period, reflecting a reduction in discrete tax benefits. Normalized tax benefit was $6 million compared with a tax expense of $51 million in the prior year period.

The company reported net income of $127 million, or $0.30 diluted earnings per share, compared with $794 million, or $1.87 diluted earnings per share, in the prior year period.

Normalized net income was $238 million, or $0.56 normalized diluted earnings per share, compared with $180 million, or $0.42 normalized diluted earnings per share, in the prior year period.

An explanation of non-GAAP measures disclosed in this release and a reconciliation of these non-GAAP results to comparable GAAP measures are included in the tables attached to this release.

Balance Sheet and Cash Flow

During full year 2020, the company generated operating cash flow of $1.4 billion compared with $1.0 billion in the prior year, reflecting strong progress on working capital initiatives.

During the fourth quarter, the company completed a tender offer for $300 million of its 3.85 percent senior notes due 2023. At the end of the year, Newell Brands had cash and cash equivalents of $981 million and net debt outstanding of $4.6 billion, as compared to $5.4 billion at the end of the prior year. The company finished the year in a very strong liquidity position, with over $2.5 billion in available short-term liquidity, including cash on hand. Newell Brands exited the year with a leverage ratio of 3.5x compared to 4.0x at the end of the prior year.

Leverage ratio is defined as the ratio of net debt to normalized EBITDA from continuing operations. An explanation of how the leverage ratio is calculated and a related reconciliation, as well as a reconciliation of reported results to normalized results, are included in the tables attached to this release.

Fourth Quarter 2020 Operating Segment Results

The Appliances & Cookware segment generated net sales of $577 million compared with $570 million in the prior year period, driven by core sales growth of 4.2 percent, partially offset by the impact of unfavorable foreign exchange. Reported operating income was $49 million, or 8.5 percent of sales, compared with $58 million, or 10.2 percent of sales, in the prior year period. Normalized operating income was $51 million, or 8.8 percent of sales, versus $54 million, or 9.5 percent of sales, in the prior year period.

The Commercial Solutions segment generated net sales of $498 million compared with $436 million in the prior year period, driven by core sales growth of 13.8 percent and the impact of favorable foreign exchange. Core sales increased in both the Commercial and the Connected Home & Security business units. Reported operating income was $63 million, or 12.7 percent of sales, compared with $35 million, or 8.0 percent of sales, in the prior year period. Normalized operating income was $66 million, or 13.3 percent of sales, versus $51 million, or 11.7 percent of sales, in the prior year period.

The Home Solutions segment generated net sales of $695 million compared with $648 million in the prior year period, reflecting core sales growth of 12.4 percent and the impact of favorable foreign exchange, partially offset by the exit from the Home Fragrance fundraising business and closure of 77 underperforming Yankee Candle retail locations during the year. Both business units, Food and Home Fragrance, delivered core sales growth. Reported operating income was $138 million, or 19.9 percent of sales, compared with $96 million, or 14.8 percent of sales, in the prior year period. Normalized operating income was $152 million, or 21.9 percent of sales, versus $112 million, or 17.3 percent of sales, in the prior year period.

The Learning & Development segment generated net sales of $670 million compared with $702 million in the prior year period, reflecting core sales decline of 2.2 percent and the impact of business exits, partially offset by the effect of favorable foreign exchange. Core sales growth in Baby was more than offset by a core sales reduction in the Writing business unit. Reported operating income was $72 million, or 10.7 percent of sales, compared with $100 million, or 14.2 percent of sales, in the prior year period. Normalized operating income was $94 million, or 14.0 percent of sales, compared with $128 million, or 18.2 percent of sales, in the prior year period.

The Outdoor & Recreation segment generated net sales of $249 million compared with $268 million in the prior year period, largely reflecting a core sales decline of 7.4 percent. Reported operating loss was $9 million, or negative 3.6 percent of sales, compared with $75 million, or negative 28.0 percent of sales, in the prior year period. Normalized operating loss was $5 million, or negative 2.0 percent of sales, compared with $2 million, or negative 0.7 percent of sales, in the prior year period.

Full Year 2020 Operating Results

Net sales for the full year ended December 31, 2020 were $9.4 billion, a decline of 3.4 percent compared with $9.7 billion in the prior year, reflecting core sales decline of 1.1 percent, as well as the impact of unfavorable foreign exchange and business and retail store exits.

Reported gross margin was 32.8 percent compared with 33.1 percent in the prior year, as pressure from unfavorable business unit mix, COVID-related expenses, higher absorption costs, and inflation more than offset the benefit from FUEL productivity savings. Reported gross margin for the prior year period includes cumulative depreciation expense recorded as a result of the decision to retain the Commercial business. Normalized gross margin was 32.9 percent compared with 33.8 percent in the prior year.

The company reported an operating loss of $634 million compared with $482 million in the prior year, as both periods were impacted by non-cash impairment charges. Normalized operating income was $1.0 billion, similar to the prior year. Normalized operating margin increased by 30 basis points to 11.1 percent compared with 10.8 percent in the prior year.

Interest expense was $274 million compared with $303 million in the prior year period, reflecting a reduction in outstanding debt.

Reported net loss was $770 million compared with net income of $107 million in the prior year. Reported diluted loss per share was $1.82 compared with a reported diluted income per share of $0.25 in the prior year. Normalized net income was $760 million compared with $722 million in the prior year. Normalized diluted earnings per share were $1.79 compared with $1.70 in the prior year.

Update to Reporting Segments

The company has realigned the management of its Cookware business, with the Business Unit CEO of Food assuming full responsibility for Cookware. As a result of this change, effective first quarter 2021, the company will report the financial and operating information for Cookware as part of its Food business unit within the Home Solutions segment. Previously, Cookware was included in the Appliances & Cookware segment. With this change in the organizational structure, the Appliances & Cookware segment will be renamed Home Appliances. The company will continue to report its five existing reportable segments.

Outlook for Full Year and First Quarter 2021

The company initiated its full year and first quarter outlook for 2021 as follows:

 

 

Full Year 2021 Outlook

Net Sales

 

$9.5 to $9.7 billion

Core Sales

 

Low single digit growth

Normalized Operating Margin

 

30 to 60 bps improvement to 11.4% to 11.7%

Normalized EPS

 

$1.55 to $1.65

Operating Cash Flow

 

Approximately $1.0 billion

     

 

 

Q1 2021 Outlook

Net Sales

 

$2.04 to $2.08 billion

Core Sales

 

High single digit growth

Normalized Operating Margin

 

90 to 130 bps improvement to 6.9% to 7.3%

Normalized EPS

 

$0.12 to $0.14

The company has presented forward-looking statements regarding core sales, normalized operating margin, and normalized earnings per share. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgement and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of forward-looking core sales, normalized operating margin, or normalized earnings per share to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort of expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the company's full-year and first quarter 2021 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the company's actual results and preliminary financial data set forth above may be material.

Conference Call

Newell Brands’ fourth quarter and full year 2020 earnings conference call will be held today, February 12, at 8:30 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investors section of the company’s website at www.newellbrands.com. A webcast replay will be made available in the Quarterly Earnings section of the company’s website.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (the "SEC") and includes a reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

The company uses certain non-GAAP financial measures that are included in this press release and the additional financial information both to explain its results to stockholders and the investment community and in the internal evaluation and management of its businesses. The company’s management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the company’s performance and liquidity using the same tools that management uses to evaluate the company’s past performance, reportable business segments, prospects for future performance and liquidity, and (b) determine certain elements of management incentive compensation.

The company’s management believes that core sales provides a more complete understanding of underlying sales trends by providing sales on a consistent basis as it excludes the impacts of acquisitions, planned and completed divestitures, retail store openings and closings, certain market exits, impact of customer returns related to a product recall in Outdoor and Recreation segment, and changes in foreign exchange from year-over-year comparisons. The effect of changes in foreign exchange on reported sales is calculated by applying the prior year average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures), with the difference between the 2020 reported sales and constant currency sales presented as the foreign exchange impact increase or decrease in core sales. The company’s management believes that “normalized” gross margin, “normalized” operating income, “normalized” operating margin, "normalized EBITDA", "normalized EBITDA from continuing operations", “normalized” net income, “normalized” diluted earnings per share, “normalized” interest and “normalized” tax benefits, which exclude restructuring and restructuring-related expenses and one-time and other events such as costs related to the extinguishment of debt, certain tax benefits and charges, impairment charges, pension settlement charges, divestiture costs, costs related to the acquisition, integration and financing of acquired businesses, amortization of acquisition-related intangible assets, inflationary adjustments, expenses related to certain product recalls and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company’s core ongoing operations and liquidity. On a pro forma basis, "normalized" items give effect to the company's decision not to sell the Commercial, Mapa and Quickie businesses. “Normalized EBITDA from continuing operations” is an ongoing liquidity measure (that excludes non-cash items) and is calculated as pro forma normalized earnings from continuing operations before interest, tax depreciation, amortization and stock-based compensation expense. "Leverage ratio" is a liquidity measure calculated as the ratio of net debt (defined as total debt less cash and cash equivalents) to normalized EBITDA from continuing operations. "Free cash flow productivity” is calculated as the ratio of free cash flow (calculated as net cash provided by operating activities less capital expenditures) to normalized net income, and the company believes that free cash flow productivity is an important indicator of liquidity realized from the company’s core ongoing operations.

The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the company utilizes a “with” and “without” approach to determine normalized income tax benefit or expense. The company will also exclude one-time tax expenses related to a change in tax status of certain entities and the loss of GILTI tax credits as a result of utilizing the 50% IRC Section 163(j) limit resulting from the CARES Act to determine normalized income tax benefit.

While the company believes these non-GAAP financial measures are useful in evaluating the company’s performance and liquidity, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

About Newell Brands

Newell Brands (NASDAQ: NWL) is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid®, Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Marmot®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Contigo®, First Alert®, Mapa®, Spontex® and Yankee Candle®. Newell Brands is committed to enhancing the lives of consumers around the world with planet friendly, innovative and attractive products that create moments of joy and provide peace of mind.

This press release and additional information about Newell Brands are available on the company’s website, www.newellbrands.com.

Caution Concerning Forward-Looking Statements

Some of the statements in this press release and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, the impact of the COVID-19 pandemic and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrases, including, but not limited to, "guidance", "outlook", “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” "beginning to,” “will,” “should,” “would,” “resume,” “are confident that,” "remain optimistic that," or similar statements. We caution that forward-looking statements are not guarantees because there are inherent difficulties in predicting future results. Actual results may differ materially from those expressed or implied in the forward-looking statements, including the impairment charges and accounting for income taxes. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to:

  • our ability to manage the demand, supply and operational challenges with the actual or perceived effects of the COVID-19 pandemic;
  • our dependence on the strength of retail, commercial and industrial sectors of the economy in various countries around the world;
  • competition with other manufacturers and distributors of consumer products;
  • major retailers’ strong bargaining power and consolidation of our customers;
  • our ability to improve productivity, reduce complexity and streamline operations;
  • our ability to develop innovative new products, to develop, maintain and strengthen end-user brands and to realize the benefits of increased advertising and promotion spend;
  • our ability to remediate the material weakness in internal control over financial reporting and consistently maintain effective internal control over financial reporting;
  • risks related to our substantial indebtedness, a potential increase in interest rates or changes in our credit ratings;
  • future events that could adversely affect the value of our assets and/or stock price and require additional impairment charges;
  • unexpected costs or expenses associated with divestitures;
  • our ability to effectively execute our turnaround plan;
  • changes in the prices and availability of labor, transportation, raw materials and sourced products and our ability to obtain them in a timely manner;
  • the impact of governmental investigations, inspections, lawsuits, legislative requests or other actions by third parties;
  • the risks inherent to our foreign operations, including currency fluctuations, exchange controls and pricing restrictions;
  • a failure of one of our key information technology systems, networks, processes or related controls or those of our service providers;
  • the impact of U.S. and foreign regulations on our operations, including the impact of tariffs and environmental remediation costs;
  • the potential inability to attract, retain and motivate key employees;
  • the resolution of tax contingencies resulting in additional tax liabilities;
  • product liability, product recalls or related regulatory actions;
  • our ability to protect intellectual property rights;
  • significant increases in funding obligations related to our pension plans; and
  • other factors listed from time to time in our filings with the SEC, including, but not limited to, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

The consolidated condensed financial statements are prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). Management’s application of U.S. GAAP requires the pervasive use of estimates and assumptions in preparing the unaudited condensed consolidated financial statements. As discussed above, the world is currently experiencing the global COVID-19 pandemic which has required greater use of estimates and assumptions in the preparation of our condensed consolidated financial statements. Although we have made our best estimates based upon current information, the effects of the COVID-19 pandemic on our business may result in future changes to management’s estimates and assumptions, especially if the severity worsens or duration lengthens. Actual results may differ materially from the estimates and assumptions developed by management. If so, the company may be subject to future incremental impairment charges as well as changes to recorded reserves and valuations.

The information contained in this press release and the tables is as of the date indicated. The company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments.

NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net sales

 

$

2,689

 

 

$

2,624

 

 

2.5%

 

$

9,385

 

 

$

9,715

 

 

(3.4)%

Cost of products sold

 

1,805

 

 

1,772

 

 

 

 

6,306

 

 

6,496

 

 

 

Gross profit

 

884

 

 

852

 

 

3.8%

 

3,079

 

 

3,219

 

 

(4.3)%

Selling, general and administrative expenses

 

608

 

 

640

 

 

(5.0)%

 

2,189

 

 

2,451

 

 

(10.7)%

Restructuring costs, net

 

7

 

 

5

 

 

 

 

21

 

 

27

 

 

 

Impairment of goodwill, intangibles and other assets

 

21

 

 

75

 

 

 

 

1,503

 

 

1,223

 

 

 

Operating income (loss)

 

248

 

 

132

 

 

87.9%

 

(634)

 

 

(482)

 

 

(31.5)%

Non-operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

69

 

 

70

 

 

 

 

274

 

 

303

 

 

 

(Gain) loss on extinguishment of debt

 

20

 

 

(1)

 

 

 

 

20

 

 

28

 

 

 

Other expense, net

 

58

 

 

6

 

 

 

 

78

 

 

39

 

 

 

Income (loss) before income taxes

 

101

 

 

57

 

 

77.2%

 

(1,006)

 

 

(852)

 

 

(18.1)%

Income tax benefit

 

(26)

 

 

(721)

 

 

 

 

(236)

 

 

(1,038)

 

 

 

Income (loss) from continuing operations

 

127

 

 

778

 

 

(83.7)%

 

(770)

 

 

186

 

 

NM

Income (loss) from discontinued operations, net of tax

 

 

 

16

 

 

 

 

 

 

(79)

 

 

 

Net income (loss)

 

$

127

 

 

$

794

 

 

(84.0)%

 

$

(770)

 

 

$

107

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

424.3

 

 

423.4

 

 

 

 

424.1

 

 

423.3

 

 

 

Diluted

 

426.2

 

 

424.9

 

 

 

 

424.1

 

 

423.9

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.30

 

 

$

1.84

 

 

 

 

$

(1.82)

 

 

$

0.44

 

 

 

Income (loss) from discontinued operations

 

 

 

0.04

 

 

 

 

 

 

(0.19)

 

 

 

Net income (loss)

 

$

0.30

 

 

$

1.88

 

 

(84.0)%

 

$

(1.82)

 

 

$

0.25

 

 

NM

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.30

 

 

$

1.83

 

 

 

 

$

(1.82)

 

 

$

0.44

 

 

 

Income (loss) from discontinued operations

 

 

 

0.04

 

 

 

 

 

 

(0.19)

 

 

 

Net income (loss)

 

$

0.30

 

 

$

1.87

 

 

(84.0)%

 

$

(1.82)

 

 

$

0.25

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

 

$

0.23

 

 

$

0.23

 

 

 

 

$

0.92

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* NM - NOT MEANINGFUL

 

 

 

 

 

 

 

 

 

 

 

 

NEWELL BRANDS INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in millions)

 

 

December 31, 2020

 

December 31, 2019

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

981

 

$

349

Accounts receivable, net

 

 

1,678

 

 

1,842

Inventories

 

 

1,638

 

 

1,606

Prepaid expenses and other current assets

 

 

331

 

 

313

Total current assets

 

 

4,628

 

 

4,110

Property, plant and equipment, net

 

 

1,176

 

 

1,155

Operating lease assets

 

 

530

 

 

615

Goodwill

 

 

3,553

 

 

3,709

Other intangible assets, net

 

 

3,564

 

 

4,916

Deferred income taxes

 

 

838

 

 

776

Other assets

 

 

411

 

 

361

TOTAL ASSETS

 

$

14,700

 

$

15,642

Liabilities and stockholders' equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

1,526

 

$

1,102

Accrued compensation

 

 

236

 

 

204

Other accrued liabilities

 

 

1,393

 

 

1,340

Short-term debt and current portion of long-term debt

 

 

466

 

 

332

Total current liabilities

 

 

3,621

 

 

2,978

Long-term debt

 

 

5,141

 

 

5,391

Deferred income taxes

 

 

414

 

 

625

Operating lease liabilities

 

 

472

 

 

541

Other noncurrent liabilities

 

 

1,152

 

 

1,111

Total liabilities

 

 

10,800

 

 

10,646

 

 

 

 

 

Stockholders' equity

 

 

 

 

Total stockholders' equity attributable to parent

 

 

3,874

 

 

4,963

Total stockholders' equity attributable to non-controlling interests

 

 

26

 

 

33

Total stockholders' equity

 

 

3,900

 

 

4,996

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

14,700

 

$

15,642

NEWELL BRANDS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in millions)

 

 

Twelve Months Ended December 31,

 

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

(770

)

 

$

107

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

357

 

 

 

446

 

Impairment of goodwill, intangibles and other assets

 

 

1,503

 

 

 

1,335

 

(Gain) loss from sale of businesses, net

 

 

9

 

 

 

(7

)

Deferred income taxes

 

 

(277

)

 

 

(1,068

)

Stock based compensation expense

 

 

41

 

 

 

42

 

Pension settlement charge

 

 

53

 

 

 

1

 

Loss on extinguishment of debt

 

 

20

 

 

 

28

 

Loss on change in fair value of investments

 

 

 

 

 

21

 

Other, net

 

 

1

 

 

 

4

 

Changes in operating accounts excluding the effects of divestitures:

 

 

 

 

Accounts receivable

 

 

168

 

 

 

311

 

Inventories

 

 

(29

)

 

 

131

 

Accounts payable

 

 

415

 

 

 

(109

)

Accrued liabilities and other

 

 

(59

)

 

 

(198

)

Net cash provided by operating activities

 

 

1,432

 

 

 

1,044

 

Cash flows from investing activities:

 

 

 

 

Proceeds from sale of divested businesses

 

 

16

 

 

 

996

 

Capital expenditures

 

 

(259

)

 

 

(265

)

Other investing activities

 

 

15

 

 

 

5

 

Net cash provided by (used in) investing activities

 

 

(228

)

 

 

736

 

Cash flows from financing activities:

 

 

 

 

Net short term debt

 

 

(26

)

 

 

(26

)

Net proceeds from issuance of debt

 

 

491

 

 

 

 

Payments on current portion of long-term debt

 

 

(305

)

 

 

(268

)

Payments on long-term debt

 

 

(320

)

 

 

(1,004

)

Debt extinguishment and issuance costs

 

 

(18

)

 

 

(39

)

Cash dividends

 

 

(392

)

 

 

(391

)

Payments to dissenting shareholders

 

 

 

 

 

(171

)

Equity compensation activity and other, net

 

 

11

 

 

 

(5

)

Net cash used in financing activities

 

 

(559

)

 

 

(1,904

)

Exchange rate effect on cash, cash equivalents and restricted cash

 

 

5

 

 

 

(1

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

650

 

 

 

(125

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

371

 

 

 

496

 

Cash, cash equivalents and restricted cash at end of period

 

$

1,021

 

 

$

371

 

Supplemental disclosures:

 

 

 

 

Restricted cash at beginning of period

 

$

22

 

 

$

 

Restricted cash at end of period

 

 

40

 

 

 

22

 

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CERTAIN LINE ITEMS
(Amounts in millions, except per share data)

 

 

Three Months Ended December 31, 2020

 

 

GAAP

 

Restructuring

 

Acquisition

 

Transactions

 

 

 

Non-GAAP

 

 

Measure

 

and restructuring

 

amortization and

 

and

 

Other

 

Measure

 

 

Reported

 

related costs [1]

 

impairment [2]

 

related costs [3]

 

items [4]

 

Normalized*

Net sales

 

$

2,689

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

2,689

 

Cost of products sold

 

1,805

 

 

(1)

 

 

 

 

 

 

(1)

 

 

1,803

 

Gross profit

 

884

 

 

1

 

 

 

 

 

 

1

 

 

886

 

 

 

32.9

%

 

 

 

 

 

 

 

 

 

32.9

%

Selling, general and administrative expenses

 

608

 

 

(4)

 

 

(20)

 

 

(1)

 

 

(4)

 

 

579

 

 

 

22.6

%

 

 

 

 

 

 

 

 

 

21.5

%

Restructuring costs, net

 

7

 

 

(7)

 

 

 

 

 

 

 

 

 

Impairment of goodwill, intangibles and other assets

 

21

 

 

 

 

(21)

 

 

 

 

 

 

 

Operating income

 

248

 

 

12

 

 

41

 

 

1

 

 

5

 

 

307

 

 

 

9.2

%

 

 

 

 

 

 

 

 

 

11.4

%

Non-operating (income) expense

 

147

 

 

 

 

 

 

 

 

(72)

 

 

75

 

Income before income taxes

 

101

 

 

12

 

 

41

 

 

1

 

 

77

 

 

232

 

Income tax provision (benefit) [5]

 

(26)

 

 

 

 

7

 

 

 

 

13

 

 

(6)

 

Net income

 

$

127

 

 

$

12

 

 

$

34

 

 

$

1

 

 

$

64

 

 

$

238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share **

 

$

0.30

 

 

$

0.03

 

 

$

0.08

 

 

$

 

 

$

0.15

 

 

$

0.56

 

*

 

Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.

**

 

Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 426.2 million shares for the three months ended December 31, 2020.

   

Totals may not add due to rounding.

     

[1]

 

Restructuring and restructuring related costs of $12 million.

[2]

 

Acquisition amortization costs of $20 million; $21 million of non-cash impairment charges primarily related to an indefinite-lived intangible asset in the Learning and Development segment.

[3]

 

Divestiture costs of $1 million primarily related to completed divestitures.

[4]

 

Pension settlement charge of $52 million; $20 million of debt extinguishment costs; $4 million primarily related to fees for certain legal proceedings; $2 million related to Argentina hyperinflationary adjustment and a gain of $1 million from change in fair value of investments.

[5]

 

The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CERTAIN LINE ITEMS
(Amounts in millions, except per share data)

 

 

Three Months Ended December 31, 2019

 

 

GAAP

 

Restructuring

 

Acquisition

 

Transactions

 

 

 

Non-GAAP

 

 

Measure

 

and restructuring

 

amortization and

 

and related

 

Other

 

Measure

 

 

Reported

 

related costs [1]

 

impairment [2]

 

costs [3]

 

items [4]

 

Normalized*

Net sales

 

$

2,624

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

2,624

 

Cost of products sold

 

1,772

 

 

(1)

 

 

 

 

 

 

(27)

 

 

1,744

 

Gross profit

 

852

 

 

1

 

 

 

 

 

 

27

 

 

880

 

 

 

32.5

%

 

 

 

 

 

 

 

 

 

33.5

%

Selling, general and administrative expenses

 

640

 

 

(14)

 

 

(34)

 

 

(5)

 

 

(3)

 

 

584

 

 

 

24.4

%

 

 

 

 

 

 

 

 

 

22.3

%

Restructuring costs, net

 

5

 

 

(5)

 

 

 

 

 

 

 

 

 

Impairment of goodwill, intangibles and other assets

 

75

 

 

 

 

(75)

 

 

 

 

 

 

 

Operating income

 

132

 

 

20

 

 

109

 

 

5

 

 

30

 

 

296

 

 

 

5.0

%

 

 

 

 

 

 

 

 

 

11.3

%

Non-operating (income) expense

 

75

 

 

 

 

 

 

 

 

(2)

 

 

73

 

Income before income taxes

 

57

 

 

20

 

 

109

 

 

5

 

 

32

 

 

223

 

Income tax provision (benefit) [5]

 

(721)

 

 

4

 

 

22

 

 

1

 

 

745

 

 

51

 

Income (loss) from continuing operations

 

778

 

 

16

 

 

87

 

 

4

 

 

(713)

 

 

172

 

Income (loss) from discontinued operations, net of tax

 

16

 

 

 

 

 

 

(1)

 

 

(7)

 

 

8

 

Net income (loss)

 

$

794

 

 

$

16

 

 

$

87

 

 

$

3

 

 

$

(720)

 

 

$

180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share **

 

$

1.87

 

 

$

0.04

 

 

$

0.20

 

 

$

0.01

 

 

$

(1.69)

 

 

$

0.42

 

*

 

Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.

**

 

Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 424.9 million shares for the three months ended December 31, 2019.

 

 

Totals may not add due to rounding.

     

[1]

 

Restructuring and restructuring related costs of $20 million.

[2]

 

Acquisition amortization costs of $34 million; impairment charges of approximately $75 million primarily related to tradenames.

[3]

 

Divestiture costs of $6 million ($1 million of which is reported in discontinued operations) primarily related to planned and completed divestitures and net gain on dispositions of $7 million reported in discontinued operations.

[4]

 

Cumulative depreciation and amortization catch-up of $15 million related to the inclusion of the Mapa and Quickie businesses in continuing operations; $12 million related to a product recall; loss of $2 million due to changes in the fair value of certain investments; Argentina hyperinflationary adjustment of $2 million; a gain on extinguishment of debt of $1 million; loss on pension settlement charge of $1 million and $1 million of fees for certain legal proceedings. Includes an income tax benefit of $522 million related to the deferred tax effects associated with the internal realignment of certain intellectual property rights as well as an income tax benefit of $227 million associated with a taxable loss related to the impairment of certain assets.

[5]

 

The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CERTAIN LINE ITEMS
(Amounts in millions, except per share data)

 

 

Twelve Months Ended December 31, 2020

 

 

GAAP

 

Restructuring

 

Acquisition

 

Transactions

 

 

 

Non-GAAP

 

 

Measure

 

and restructuring

 

amortization and

 

and

 

Other

 

Measure

 

 

Reported

 

related costs [1]

 

impairment [2]

 

related costs [3]

 

items [4]

 

Normalized*

Net sales

 

$

9,385

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

9,385

 

Cost of products sold

 

6,306

 

 

(4)

 

 

 

 

 

 

(6)

 

 

6,296

 

Gross profit

 

3,079

 

 

4

 

 

 

 

 

 

6

 

 

3,089

 

 

 

32.8

%

 

 

 

 

 

 

 

 

 

32.9

%

Selling, general and administrative expenses

 

2,189

 

 

(19)

 

 

(99)

 

 

(4)

 

 

(16)

 

 

2,051

 

 

 

23.3

%

 

 

 

 

 

 

 

 

 

21.9

%

Restructuring costs, net

 

21

 

 

(21)

 

 

 

 

 

 

 

 

 

Impairment of goodwill, intangibles and other assets

 

1,503

 

 

 

 

(1,503)

 

 

 

 

 

 

 

Operating income (loss)

 

(634)

 

 

44

 

 

1,602

 

 

4

 

 

22

 

 

1,038

 

 

 

(6.8)

%

 

 

 

 

 

 

 

 

 

11.1

%

Non-operating (income) expense

 

372

 

 

1

 

 

 

 

(9)

 

 

(76)

 

 

288

 

Income (loss) before income taxes

 

(1,006)

 

 

43

 

 

1,602

 

 

13

 

 

98

 

 

750

 

Income tax provision (benefit) [5]

 

(236)

 

 

(1)

 

 

232

 

 

1

 

 

(6)

 

 

(10)

 

Net income (loss)

 

$

(770)

 

 

$

44

 

 

$

1,370

 

 

$

12

 

 

$

104

 

 

$

760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share **

 

$

(1.82)

 

 

$

0.10

 

 

$

3.22

 

 

$

0.03

 

 

$

0.24

 

 

$

1.79

 

*

 

Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.

**

 

Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 425.2 million shares for the twelve months ended December 31, 2020.

   

Totals may not add due to rounding.

     

[1]

 

Restructuring and restructuring related costs of $43 million.

[2]

 

Acquisition amortization costs of $99 million; impairment charges of approximately $1.5 billion related to goodwill, other intangible assets and other assets.

[3]

 

Divestiture costs of $4 million primarily related to completed divestitures and loss on disposition of $9 million related to the sale of a product line in the Learning and Development segment.

[4]

 

Pension settlement charge of $53 million; $20 million of debt extinguishment costs; $16 million of fees for certain legal proceedings; Argentina hyperinflationary adjustment of $7 million and $2 million related to product recall costs. Includes income tax expense of $53 million for a reduction in valuation allowance related to integration of certain U.S. operations, partially offset by $47 million of deferred tax effects associated with certain outside basis difference, $20 million related to change in tax status of certain entities and $5 million for effects of adopting the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

[5]

 

The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CERTAIN LINE ITEMS
(Amounts in millions, except per share data)

 

 

Twelve Months Ended December 31, 2019

 

 

GAAP

 

Restructuring

 

Acquisition

 

Transactions

 

 

 

Non-GAAP Measure

 

 

Measure

 

and restructuring

 

amortization and

 

and related

 

Other

 

 

 

Proforma

 

 

 

Reported

 

related costs [1]

 

impairment [2]

 

costs [3]

 

items [4]

 

Normalized*

 

Adjustments [5]

Proforma

Net sales

 

$

9,715

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

9,715

 

 

$

 

$

9,715

 

Cost of products sold

 

6,496

 

 

(16)

 

 

 

 

 

 

(73)

 

 

6,407

 

 

21

 

6,428

 

Gross profit

 

3,219

 

 

16

 

 

 

 

 

 

73

 

 

3,308

 

 

(21)

 

3,287

 

 

 

33.1

%

 

 

 

 

 

 

 

 

 

34.1

%

 

 

33.8

%

Selling, general and administrative expenses

 

2,451

 

 

(39)

 

 

(131)

 

 

(30)

 

 

(15)

 

 

2,236

 

 

2

 

2,238

 

 

 

25.2

%

 

 

 

 

 

 

 

 

 

23.0

%

 

 

23.0

%

Restructuring costs, net

 

27

 

 

(27)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of goodwill, intangibles and other assets

 

1,223

 

 

 

 

(1,223)

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(482)

 

 

82

 

 

1,354

 

 

30

 

 

88

 

 

1,072

 

 

(23)

 

1,049

 

 

 

(5.0)

%

 

 

 

 

 

 

 

 

 

11.0

%

 

 

10.8

%

Non-operating (income) expense

 

370

 

 

 

 

 

 

 

 

(57)

 

 

313

 

 

 

313

 

Income (loss) before income taxes

 

(852)

 

 

82

 

 

1,354

 

 

30

 

 

145

 

 

759

 

 

(23)

 

736

 

Income tax provision (benefit) [6]

 

(1,038)

 

 

19

 

 

293

 

 

7

 

 

784

 

 

65

 

 

(6)

 

59

 

Income (loss) from continuing operations

 

186

 

 

63

 

 

1,061

 

 

23

 

 

(639)

 

 

694

 

 

(17)

 

677

 

Income (loss) from discontinued operations, net of tax

 

(79)

 

 

 

 

84

 

 

47

 

 

(7)

 

 

45

 

 

 

45

 

Net income (loss)

 

$

107

 

 

$

63

 

 

$

1,145

 

 

$

70

 

 

$

(646)

 

 

$

739

 

 

$

(17)

 

$

722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share **

 

$

0.25

 

 

$

0.15

 

 

$

2.70

 

 

$

0.17

 

 

$

(1.52)

 

 

$

1.74

 

 

$

(0.04)

 

$

1.70

 

*

 

Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.

**

 

Adjustments and normalized earnings per share are calculated based on diluted weighted average shares of 423.9 million shares for the twelve months ended December 31, 2019.

   

Totals may not add due to rounding.

     

[1]

 

Restructuring and restructuring related costs of $82 million.

[2]

 

Acquisition amortization costs of $131 million; impairment charges of approximately $1.3 billion primarily related to tradenames, customer relationships and goodwill, $112 million of which was reported in discontinued operations.

[3]

 

Divestiture costs of $34 million ($5 million of which is reported in discontinued operations) primarily related to planned and completed divestitures; acquisition related costs of $1 million and a nominal net gain on disposition of businesses, reported in discontinued operations.

[4]

 

Cumulative depreciation and amortization catch-up of $55 million related to the inclusion of the Rubbermaid Commercial Products, Rubbermaid Outdoor, Closet, Refuse and Garage businesses, Mapa and Quickie businesses ("Commercial Business") in continuing operations; a loss on extinguishment of debt of $28 million; loss of $21 million due to changes in the fair value of certain investments; $20 million related to a product recall; Argentina hyperinflationary adjustment of $12 million; $8 million fees for certain legal proceedings; $1 million loss on pension settlement charge and net tax adjustment primarily related to foreign and state tax impacts of offshore earnings and a withholding tax refund from Switzerland. Includes an income tax benefit of $522 million related to the deferred tax effects associated with the internal realignment of certain intellectual property rights as well as an income tax benefit of $227 million associated with a taxable loss related to the impairment of certain assets.

[5]

 

Depreciation and amortization expense related to the Commercial Business that would have been recorded had the businesses been continuously classified as held and used.

[6]

 

The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)

 

 

Three Months Ended December 31, 2020

 

Three Months Ended December 31, 2019

 

Year over year changes

 

 

 

Reported

 

Reported

 

 

 

Normalized

 

Normalized

 

 

 

Reported

 

Reported

 

 

 

Normalized

 

Normalized

 

 

 

Normalized

 

 

 

Operating

 

Operating

 

Excluded

 

Operating

 

Operating

 

 

 

Operating

 

Operating

 

Excluded

 

Operating

 

Operating

 

Net Sales

 

Operating Income

 

Net Sales

 

Income
(Loss)

 

Margin

 

Items [1]

 

Income
(Loss)

 

Margin

 

Net Sales

 

Income
(Loss)

 

Margin

 

Items [2]

 

Income
(Loss)

 

Margin

 

$

 

%

 

$

 

%

APPLIANCES AND COOKWARE

 

$

577

 

$

49

 

 

8.5

%

 

$

2

 

$

51

 

 

8.8

%

 

$

570

 

$

58

 

 

10.2

%

 

$

(4

)

 

 

$

54

 

 

9.5

%

 

$

7

 

 

1.2

%

 

$

(3

)

 

(5.6

)%

COMMERCIAL SOLUTIONS

 

 

498

 

 

63

 

 

12.7

%

 

 

3

 

 

66

 

 

13.3

%

 

 

436

 

 

35

 

 

8.0

%

 

 

16

 

 

 

51

 

 

11.7

%

 

 

62

 

 

14.2

%

 

 

15

 

 

29.4

%

HOME SOLUTIONS

 

 

695

 

 

138

 

 

19.9

%

 

 

14

 

 

152

 

 

21.9

%

 

 

648

 

 

96

 

 

14.8

%

 

 

16

 

 

 

112

 

 

17.3

%

 

 

47

 

 

7.3

%

 

 

40

 

 

35.7

%

LEARNING AND DEVELOPMENT

 

 

670

 

 

72

 

 

10.7

%

 

 

22

 

 

94

 

 

14.0

%

 

 

702

 

 

100

 

 

14.2

%

 

 

28

 

 

 

128

 

 

18.2

%

 

 

(32

)

 

(4.6

)%

 

 

(34

)

 

(26.6

)%

OUTDOOR AND RECREATION

 

 

249

 

 

(9

)

 

(3.6

)%

 

 

4

 

 

(5

)

 

(2.0

)%

 

 

268

 

 

(75

)

 

(28.0

)%

 

 

73

 

 

 

(2

)

 

(0.7

)%

 

 

(19

)

 

(7.1

)%

 

 

(3

)

 

NM

 

CORPORATE

 

 

 

 

(58

)

 

%

 

 

7

 

 

(51

)

 

%

 

 

 

 

(77

)

 

%

 

 

30

 

 

 

(47

)

 

%

 

 

 

 

%

 

 

(4

)

 

(8.5

)%

RESTRUCTURING

 

 

 

 

(7

)

 

%

 

 

7

 

 

 

 

%

 

 

 

 

(5

)

 

%

 

 

5

 

 

 

 

 

%

 

 

 

 

%

 

 

 

 

%

 

 

$

2,689

 

$

248

 

 

9.2

%

 

$

59

 

$

307

 

 

11.4

%

 

$

2,624

 

$

132

 

 

5.0

%

 

$

164

 

 

$

296

 

 

11.3

%

 

$

65

 

 

2.5

%

 

$

11

 

 

3.7

%

[1]

 

The three months ended December 31, 2020 excluded items consists of $21 million of non-cash impairment charge primarily related to an indefinite-lived intangible asset in the Learning and Development segment; $20 million of acquisition amortization costs; $12 million of restructuring and restructuring-related charges; $4 million of fees for certain legal proceedings; $1 million of transaction-related costs and $1 million related to Argentina hyperinflationary adjustment.

[2]

 

The three months ended December 31, 2019 excluded items consists of $75 million of impairment charges for goodwill and other intangible assets; $34 million of acquisition amortization costs; cumulative depreciation and amortization catch-up of $15 million related to the inclusion of the Commercial Business in continuing operations; $20 million of restructuring and restructuring-related charges; $12 million related to a product recall; $5 million of transaction-related costs; $2 million of Argentina hyperinflationary adjustment and $1 million of fees for certain legal proceedings.

     
   

*NM - NOT MEANINGFUL

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)

 

 

Twelve Months Ended December 31, 2020

 

Twelve Months Ended December 31, 2019

 

Year over year changes

 

 

 

Reported

 

Reported

 

 

 

Normalized

 

Normalized

 

 

 

Reported

 

Reported

 

 

 

Proforma

 

Proforma

 

 

 

 

 

Proforma Operating

 

 

 

Operating

 

Operating

 

Excluded

 

Operating

 

Operating

 

 

 

Operating

 

Operating

 

Excluded

 

Operating

 

Operating

 

Net Sales

 

Income (Loss)

 

Net Sales

 

Income
(Loss)

 

Margin

 

Items [1]

 

Income
(Loss)

 

Margin

 

Net Sales

 

Income
(Loss)

 

Margin

 

Items [2] [3]

 

Income
(Loss) [3]

 

Margin [3]

 

$

 

%

 

$

 

%

APPLIANCES AND COOKWARE

 

$

1,706

 

$

(217

)

 

(12.7

)%

 

$

309

 

$

92

 

 

5.4

%

 

$

1,692

 

$

(535

)

 

(31.6

)%

 

$

614

 

$

79

 

 

4.7

%

 

$

14

 

 

0.8

%

 

$

13

 

 

16.5

%

COMMERCIAL SOLUTIONS

 

 

1,859

 

 

(85

)

 

(4.6

)%

 

 

335

 

 

250

 

 

13.4

%

 

 

1,779

 

 

(136

)

 

(7.6

)%

 

 

365

 

 

229

 

 

12.9

%

 

 

80

 

 

4.5

%

 

 

21

 

 

9.2

%

HOME SOLUTIONS

 

 

1,971

 

 

(12

)

 

(0.6

)%

 

 

348

 

 

336

 

 

17.0

%

 

 

1,875

 

 

(17

)

 

(0.9

)%

 

 

213

 

 

196

 

 

10.5

%

 

 

96

 

 

5.1

%

 

 

140

 

 

71.4

%

LEARNING AND DEVELOPMENT

 

 

2,557

 

 

362

 

 

14.2

%

 

 

111

 

 

473

 

 

18.5

%

 

 

2,956

 

 

588

 

 

19.9

%

 

 

45

 

 

633

 

 

21.4

%

 

 

(399

)

 

(13.5

)%

 

 

(160

)

 

(25.3

)%

OUTDOOR AND RECREATION

 

 

1,292

 

 

(418

)

 

(32.4

)%

 

 

507

 

 

89

 

 

6.9

%

 

 

1,413

 

 

(64

)

 

(4.5

)%

 

 

171

 

 

107

 

 

7.6

%

 

 

(121

)

 

(8.6

)%

 

 

(18

)

 

(16.8

)%

CORPORATE

 

 

 

 

(243

)

 

%

 

 

41

 

 

(202

)

 

%

 

 

 

 

(291

)

 

%

 

 

96

 

 

(195

)

 

%

 

 

 

 

%

 

 

(7

)

 

(3.6

)%

RESTRUCTURING

 

 

 

 

(21

)

 

%

 

 

21

 

 

 

 

%

 

 

 

 

(27

)

 

%

 

 

27

 

 

 

 

%

 

 

 

 

%

 

 

 

 

%

 

 

$

9,385

 

$

(634

)

 

(6.8

)%

 

$

1,672

 

$

1,038

 

 

11.1

%

 

$

9,715

 

$

(482

)

 

(5.0

)%

 

$

1,531

 

$

1,049

 

 

10.8

%

 

$

(330

)

 

(3.4

)%

 

$

(11

)

 

(1.0

)%

[1]

 

The twelve months ended December 31, 2020 excluded items consists of $1.5 billion of impairment charges primarily for goodwill, intangible assets and other assets; $99 million of acquisition amortization costs; $44 million of restructuring and restructuring-related charges; $16 million of fees for certain legal proceedings; $4 million of Argentina hyperinflationary adjustment; $4 million of transaction-related costs and $2 million related to a product recall.

[2]

 

The twelve months ended December 31, 2019 excluded items consists of $1.2 billion of impairment charges primarily for goodwill and other intangible assets; $131 million of acquisition amortization costs; $82 million of restructuring and restructuring-related charges; cumulative depreciation and amortization catch-up of $55 million related to the inclusion of the Commercial Business in continuing operations; $30 million of transaction related costs; $20 million related to a product recall; $8 million fees for certain legal proceedings and $5 million Argentina hyperinflationary adjustment.

[3]

 

Normalized proforma operating income (loss) and margin reflect an adjustment within excluded items for depreciation and amortization expense of $23 million related to Commercial Business in the Commercial Solutions segment that would have been recorded had they been continuously classified as held and used for the twelve months ended December 31, 2019.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CORE SALES ANALYSIS BY SEGMENT
(Amounts in millions)

 

 

Three Months Ended December 31, 2020

 

Three Months Ended December 31, 2019

 

Increase (Decrease)
Core Sales

 

 

2020
Net Sales
(REPORTED)

 

Acquisitions,
Divestitures and
Other, Net [2]

 

Net Sales
Base Business

 

Currency Impact
[3]

 

2020
Core Sales [1]

 

2019
Net Sales
(REPORTED)

 

Divestitures and
Other, Net
[2]

 

2019
Core Sales [1]

 

$

 

%

APPLIANCES AND COOKWARE

 

$

577

 

$

 

 

$

577

 

$

17

 

 

$

594

 

$

570

 

$

 

 

$

570

 

$

24

 

 

4.2

%

COMMERCIAL SOLUTIONS

 

 

498

 

 

 

 

 

498

 

 

(2

)

 

 

496

 

 

436

 

 

 

 

 

436

 

 

60

 

 

13.8

%

HOME SOLUTIONS

 

 

695

 

 

(1

)

 

 

694

 

 

(6

)

 

 

688

 

 

648

 

 

(36

)

 

 

612

 

 

76

 

 

12.4

%

LEARNING AND DEVELOPMENT

 

 

670

 

 

(1

)

 

 

669

 

 

(7

)

 

 

662

 

 

702

 

 

(25

)

 

 

677

 

 

(15

)

 

(2.2

)%

OUTDOOR AND RECREATION

 

 

249

 

 

 

 

 

249

 

 

2

 

 

 

251

 

 

268

 

 

3

 

 

 

271

 

 

(20

)

 

(7.4

)%

 

 

$

2,689

 

$

(2

)

 

$

2,687

 

$

4

 

 

$

2,691

 

$

2,624

 

$

(58

)

 

$

2,566

 

$

125

 

 

4.9

%

CORE SALES ANALYSIS BY GEOGRAPHY

 

 

Three Months Ended December 31, 2020

 

Three Months Ended December 31, 2019

 

Increase (Decrease)
Core Sales

 

 

2020
Net Sales
(REPORTED)

 

Acquisitions,
Divestitures and
Other, Net [2]

 

Net Sales
Base Business

 

Currency Impact
[3]

 

2020
Core Sales [1]

 

2019
Net Sales
(REPORTED)

 

Divestitures and
Other, Net
[2]

 

2019
Core Sales [1]

 

$

 

%

NORTH AMERICA

 

$

1,892

 

$

(2

)

 

$

1,890

 

$

(1

)

 

$

1,889

 

$

1,862

 

$

(58

)

 

$

1,804

 

$

85

 

4.7

%

EUROPE, MIDDLE EAST, AFRICA

 

 

405

 

 

 

 

 

405

 

 

(20

)

 

 

385

 

 

377

 

 

 

 

 

377

 

 

8

 

2.1

%

LATIN AMERICA

 

 

215

 

 

 

 

 

215

 

 

34

 

 

 

249

 

 

221

 

 

 

 

 

221

 

 

28

 

12.7

%

ASIA PACIFIC

 

 

177

 

 

 

 

 

177

 

 

(9

)

 

 

168

 

 

164

 

 

 

 

 

164

 

 

4

 

2.4

%

 

 

$

2,689

 

$

(2

)

 

$

2,687

 

$

4

 

 

$

2,691

 

$

2,624

 

$

(58

)

 

$

2,566

 

$

125

 

4.9

%

[1]

 

"Core Sales” provides a consistent basis for year-over-year comparisons in sales as it excludes the impacts of acquisitions, completed divestitures, retail store openings and closings, changes in foreign currency.

[2]

 

Divestitures include the exit of the North American distributorship of Uniball® Products, current and prior period net sales from retail store closures (consistent with standard retail practice), disposition of the foamboards business and exit from Home Fragrance fundraising business.

[3]

 

“Currency Impact” represents the effect of foreign currency on 2020 reported sales and is calculated by applying the 2019 average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures) and comparing to 2020 reported sales.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
CORE SALES ANALYSIS BY SEGMENT
(Amounts in millions)

 

 

Twelve Months Ended December 31, 2020

 

Twelve Months Ended December 31, 2019

 

Increase (Decrease)
Core Sales

 

 

2020
Net Sales
(REPORTED)

 

Acquisitions,
Divestitures and
Other, Net [2]

 

Net Sales
Base Business

 

Currency Impact
[3]

 

2020
Core Sales [1]

 

2019
Net Sales
(REPORTED)

 

Divestitures and
Other, Net
[2]

 

2019
Core Sales [1]

 

$

 

%

APPLIANCES AND COOKWARE

 

$

1,706

 

$

 

 

$

1,706

 

$

77

 

 

$

1,783

 

$

1,692

 

$

 

 

$

1,692

 

$

91

 

 

5.4

%

COMMERCIAL SOLUTIONS

 

 

1,859

 

 

 

 

 

1,859

 

 

18

 

 

 

1,877

 

 

1,779

 

 

(1

)

 

 

1,778

 

 

99

 

 

5.6

%

HOME SOLUTIONS

 

 

1,971

 

 

(3

)

 

 

1,968

 

 

(4

)

 

 

1,964

 

 

1,875

 

 

(57

)

 

 

1,818

 

 

146

 

 

8.0

%

LEARNING AND DEVELOPMENT

 

 

2,557

 

 

(10

)

 

 

2,547

 

 

5

 

 

 

2,552

 

 

2,956

 

 

(86

)

 

 

2,870

 

 

(318

)

 

(11.1

)%

OUTDOOR AND RECREATION

 

 

1,292

 

 

1

 

 

 

1,293

 

 

12

 

 

 

1,305

 

 

1,413

 

 

16

 

 

 

1,429

 

 

(124

)

 

(8.7

)%

 

 

$

9,385

 

$

(12

)

 

$

9,373

 

$

108

 

 

$

9,481

 

$

9,715

 

$

(128

)

 

$

9,587

 

$

(106

)

 

(1.1

)%

CORE SALES ANALYSIS BY GEOGRAPHY

 

 

Twelve Months Ended December 31, 2020

 

Twelve Months Ended December 31, 2019

 

Increase (Decrease)
Core Sales

 

 

2020
Net Sales
(REPORTED)

 

Acquisitions,
Divestitures and
Other, Net [2]

 

Net Sales
Base Business

 

Currency Impact
[3]

 

2020
Core Sales [1]

 

2019
Net Sales
(REPORTED)

 

Divestitures and
Other, Net
[2]

 

2019
Core Sales [1]

 

$

 

%

NORTH AMERICA

 

$

6,673

 

$

(12

)

 

$

6,661

 

$

4

 

 

$

6,665

 

$

6,920

 

$

(124

)

 

$

6,796

 

$

(131

)

 

(1.9

)%

EUROPE, MIDDLE EAST, AFRICA

 

 

1,394

 

 

 

 

 

1,394

 

 

(22

)

 

 

1,372

 

 

1,398

 

 

(1

)

 

 

1,397

 

 

(25

)

 

(1.8

)%

LATIN AMERICA

 

 

657

 

 

 

 

 

657

 

 

134

 

 

 

791

 

 

702

 

 

(3

)

 

 

699

 

 

92

 

 

13.2

%

ASIA PACIFIC

 

 

661

 

 

 

 

 

661

 

 

(8

)

 

 

653

 

 

695

 

 

 

 

 

695

 

 

(42

)

 

(6.0

)%

 

 

$

9,385

 

$

(12

)

 

$

9,373

 

$

108

 

 

$

9,481

 

$

9,715

 

$

(128

)

 

$

9,587

 

$

(106

)

 

(1.1

)%

[1]

 

"Core Sales” provides a consistent basis for year-over-year comparisons in sales as it excludes the impacts of acquisitions, completed divestitures, retail store openings and closings, changes in foreign currency.

[2]

 

Divestitures include the exit of the North American distributorship of Uniball® Products, current and prior period net sales from retail store closures (consistent with standard retail practice), disposition of the foamboards business, exit from Home Fragrance fundraising business and impact of customer returns related to a product recall in the Outdoor and Recreation segment.

[3]

 

“Currency Impact” represents the effect of foreign currency on 2020 reported sales and is calculated by applying the 2019 average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions and divestitures) and comparing to 2020 reported sales.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
NET DEBT AND FREE CASH FLOW RECONCILIATION
(Amounts in millions)

 

 

December 31,

 

 

 

 

2020

 

2019

 

$ Change

FREE CASH FLOW RECONCILIATION:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

1,432

 

 

$

1,044

 

 

 

Capital expenditures

 

(259)

 

 

(265)

 

 

 

 

 

 

 

 

 

 

FREE CASH FLOW [1]

 

$

1,173

 

 

$

779

 

 

$

394

 

 

 

 

 

 

 

 

FREE CASH FLOW PRODUCTIVITY [2]

 

154

%

 

108

%

 

 

[1]

 

Free cash flow is defined as net cash provided by operating activities, less capital expenditures.

[2]

 

Free cash flow productivity is defined as the ratio of free cash flow to normalized net income.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
NET DEBT TO NORMALIZED EBITDA FROM CONTINUING OPERATIONS RECONCILIATION
(Amounts in millions)

 

 

December 31, 2020

 

December 31, 2019

NET DEBT RECONCILIATION:

 

 

 

 

Short-term debt and current portion of long-term debt

 

$

466

 

 

$

332

 

Long-term debt

 

5,141

 

 

5,391

 

Gross debt

 

5,607

 

 

5,723

 

Less: Cash and cash equivalents

 

981

 

 

349

 

NET DEBT [1]

 

$

4,626

 

 

$

5,374

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(770)

 

 

$

186

 

Normalized items [2]

 

1,530

 

 

491

 

PROFORMA NORMALIZED INCOME FROM CONTINUING OPERATIONS

 

760

 

 

677

 

 

 

 

 

 

Proforma normalized income tax [3]

 

(10)

 

 

59

 

Interest expense, net

 

274

 

 

303

 

Proforma normalized depreciation and amortization [4]

 

245

 

 

251

 

Stock-based compensation [5]

 

41

 

 

42

 

NORMALIZED EBITDA FROM CONTINUING OPERATIONS

 

$

1,310

 

 

$

1,332

 

 

 

 

 

 

NET DEBT TO NORMALIZED EBITDA FROM CONTINUING OPERATIONS LEVERAGE RATIO [6]

 

3.5

x

 

4.0

x

[1]

 

The Company defines net debt as gross debt less the total of cash and cash equivalents. The Company believes net debt is meaningful to investors as it considers net debt and its components to be an important indicator of liquidity and a guiding measure of capital structure strategy.

[2]

 

Refer to "Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items" for the twelve months ended December 31, 2020 and 2019 for further information and disclosures on normalized items excluded from income (loss) from continuing operations.

[3]

 

Refer to "Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items" for the twelve months ended December 31, 2020 and 2019 for further information and disclosures on normalized items excluded from income tax provision (benefits).

[4]

 

Proforma Normalized Depreciation and Amortization excludes from GAAP depreciation and amortization for the twelve months ended December 31, 2020, the following items: (a) acquisition amortization expense of $99 million associated with intangible assets recognized in purchase accounting (b) accelerated depreciation and amortization costs of $13 million associated with restructuring activities. Refer to "Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items" for the twelve months ended December 31, 2020 for further information. Proforma Normalized Depreciation and Amortization excludes from GAAP depreciation and amortization for the twelve months ended December 31, 2019, the following items: (c) acquisition amortization expense of $131 million associated with intangible assets recognized in purchase accounting; (d) cumulative depreciation and amortization cost of $32 million related to the inclusion of the Commercial Business in continuing operations; (e) accelerated depreciation and amortization costs of $32 million associated with restructuring activities. Refer to "Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items" for the twelve months ended December 31, 2019 for further information.

[5]

 

Represents non-cash expense associated with stock-based compensation from continuing operations.

[6]

 

The Net Debt to Normalized EBITDA from continuing operations leverage ratio is defined as Net Debt divided by Normalized EBITDA from continuing operations. The Company's debt has certain financial covenants such as debt to equity ratio and interest coverage ratio; however the Net Debt to Normalized EBITDA from continuing operations leverage ratio is used by management as a liquidity measure and is not prescribed in the Company's debt covenants.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING

(Amounts in millions)
     

 

 

Three Months Ended March 31, 2020

 

 

Net
Sales

 

Reported
Operating
Income (Loss)

 

Reported
Operating
Margin

 

Excluded
Items [1]

 

Normalized
Operating
Income (Loss)

 

Normalized
Operating
Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME APPLIANCES

 

$

261

 

$

(299

)

 

(114.6

)%

 

$

290

 

$

(9

)

 

(3.4

)%

COMMERCIAL SOLUTIONS

 

 

413

 

 

(272

)

 

(65.9

)%

 

 

323

 

 

51

 

 

12.3

%

HOME SOLUTIONS

 

 

377

 

 

(301

)

 

(79.8

)%

 

 

317

 

 

16

 

 

4.2

%

LEARNING AND DEVELOPMENT

 

 

528

 

 

4

 

 

0.8

%

 

 

82

 

 

86

 

 

16.3

%

OUTDOOR AND RECREATION

 

 

307

 

 

(474

)

 

(154.4

)%

 

 

489

 

 

15

 

 

4.9

%

CORPORATE

 

 

 

 

(66

)

 

%

 

 

20

 

 

(46

)

 

%

 

 

$

1,886

 

$

(1,408

)

 

(74.7

)%

 

$

1,521

 

$

113

 

 

6.0

%

[1]

 

Excluded items consist of $1.5 billion of impairment charges for goodwill, intangible assets and other assets; $31 million of acquisition amortization costs; $6 million of restructuring and restructuring-related charges; $6 million of fees for certain legal proceedings; $1 million for product recall costs; $1 million of transaction-related costs and $1 million related to Argentina hyperinflationary adjustment.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING

(Amounts in millions)
     

 

 

Three Months Ended June 30, 2020

 

 

Net
Sales

 

Reported
Operating
Income (Loss)

 

Reported
Operating
Margin

 

Excluded
Items [2]

 

Normalized
Operating
Income (Loss)

 

Normalized
Operating
Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME APPLIANCES

 

$

330

 

$

6

 

 

1.8

%

 

$

3

 

$

9

 

 

2.7

%

COMMERCIAL SOLUTIONS

 

 

413

 

 

38

 

 

9.2

%

 

 

7

 

 

45

 

 

10.9

%

HOME SOLUTIONS

 

 

384

 

 

29

 

 

7.6

%

 

 

21

 

 

50

 

 

13.0

%

LEARNING AND DEVELOPMENT

 

 

631

 

 

126

 

 

20.0

%

 

 

3

 

 

129

 

 

20.4

%

OUTDOOR AND RECREATION

 

 

353

 

 

24

 

 

6.8

%

 

 

9

 

 

33

 

 

9.3

%

CORPORATE

 

 

 

 

(60

)

 

%

 

 

9

 

 

(51

)

 

%

 

 

$

2,111

 

$

163

 

 

7.7

%

 

$

52

 

$

215

 

 

10.2

%

[2]

 

Excluded items consists of $24 million of acquisition amortization costs; $17 million of restructuring and restructuring-related charges; $5 million of non-cash impairment charges related to the operating leases of Yankee Candle retail store business; $3 million of fees for certain legal proceedings; $1 million related to product recall costs; $1 million of transaction-related costs and $1 million Argentina hyperinflationary adjustment.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING

(Amounts in millions)

 

   

 

 

Three Months Ended September 30, 2020

 

 

Net
Sales

 

Reported
Operating
Income (Loss)

 

Reported
Operating
Margin

 

Excluded
Items [3]

 

Normalized
Operating
Income (Loss)

 

Normalized
Operating
Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME APPLIANCES

 

$

430

 

$

19

 

 

4.4

%

 

$

3

 

$

22

 

 

5.1

%

COMMERCIAL SOLUTIONS

 

 

535

 

 

84

 

 

15.7

%

 

 

4

 

 

88

 

 

16.4

%

HOME SOLUTIONS

 

 

623

 

 

123

 

 

19.7

%

 

 

14

 

 

137

 

 

22.0

%

LEARNING AND DEVELOPMENT

 

 

728

 

 

158

 

 

21.7

%

 

 

6

 

 

164

 

 

22.5

%

OUTDOOR AND RECREATION

 

 

383

 

 

39

 

 

10.2

%

 

 

7

 

 

46

 

 

12.0

%

CORPORATE

 

 

 

 

(60

)

 

%

 

 

6

 

 

(54

)

 

%

 

 

$

2,699

 

$

363

 

 

13.4

%

 

$

40

 

$

403

 

 

14.9

%

[3]

 

Excluded items consists of $24 million of acquisition amortization costs; $9 million of restructuring and restructuring-related charges; $3 million of fees for certain legal proceedings; $2 million of non-cash impairment charge related to an indefinite-lived intangible asset in the Learning and Development segment; $1 million of transaction-related costs and $1 million of Argentina hyperinflationary adjustment.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING

(Amounts in millions)
     

 

 

Three Months Ended December 31, 2020

 

 

Net
Sales

 

Reported
Operating
Income (Loss)

 

Reported
Operating
Margin

 

Excluded
Items [4]

 

Normalized
Operating
Income (Loss)

 

Normalized
Operating
Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME APPLIANCES

 

$

518

 

$

36

 

 

6.9

%

 

$

2

 

$

38

 

 

7.3

%

COMMERCIAL SOLUTIONS

 

 

498

 

 

61

 

 

12.2

%

 

 

5

 

 

66

 

 

13.3

%

HOME SOLUTIONS

 

 

754

 

 

147

 

 

19.5

%

 

 

18

 

 

165

 

 

21.9

%

LEARNING AND DEVELOPMENT

 

 

670

 

 

71

 

 

10.6

%

 

 

23

 

 

94

 

 

14.0

%

OUTDOOR AND RECREATION

 

 

249

 

 

(9

)

 

(3.6

)%

 

 

4

 

 

(5

)

 

(2.0

)%

CORPORATE

 

 

 

 

(58

)

 

%

 

 

7

 

 

(51

)

 

%

 

 

$

2,689

 

$

248

 

 

9.2

%

 

$

59

 

$

307

 

 

11.4

%

[4]

 

Excluded items consists of $21 million of non-cash impairment charge primarily related to an indefinite-lived intangible asset in the Learning and Development segment; $20 million of acquisition amortization costs; $12 million of restructuring and restructuring-related charges; $4 million of fees for certain legal proceedings; $1 million of transaction-related costs and $1 million related to Argentina hyperinflationary adjustment.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)
FINANCIAL WORKSHEET - SEGMENT REPORTING

(Amounts in millions)
     

 

 

Twelve Months Ended December 31, 2020

 

 

Net
Sales

 

Reported
Operating
Income (Loss)

 

Reported
Operating
Margin

 

Excluded
Items [5]

 

Normalized
Operating
Income (Loss)

 

Normalized
Operating
Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME APPLIANCES

 

$

1,539

 

$

(238

)

 

(15.5

)%

 

$

298

 

$

60

 

 

3.9

%

COMMERCIAL SOLUTIONS

 

 

1,859

 

 

(89

)

 

(4.8

)%

 

 

339

 

 

250

 

 

13.4

%

HOME SOLUTIONS

 

 

2,138

 

 

(2

)

 

(0.1

)%

 

 

370

 

 

368

 

 

17.2

%

LEARNING AND DEVELOPMENT

 

 

2,557

 

 

359

 

 

14.0

%

 

 

114

 

 

473

 

 

18.5

%

OUTDOOR AND RECREATION

 

 

1,292

 

 

(420

)

 

(32.5

)%

 

 

509

 

 

89

 

 

6.9

%

CORPORATE

 

 

 

 

(244

)

 

%

 

 

42

 

 

(202

)

 

%

 

 

$

9,385

 

$

(634

)

 

(6.8

)%

 

$

1,672

 

$

1,038

 

 

11.1

%

[5]

 

Excluded items consists of $1.5 billion of impairment charges primarily for goodwill, intangible assets and other assets; $99 million of acquisition amortization costs; $44 million of restructuring and restructuring-related charges; $16 million of fees for certain legal proceedings; $4 million of Argentina hyperinflationary adjustment; $4 million of transaction-related costs and $2 million related to a product recall.

 

Investor Contact:
Sofya Tsinis
VP, Investor Relations
+1 (201) 610-6901
sofya.tsinis@newellco.com

Media Contact:
Beth Stellato
VP, Corporate Communications, Events & Philanthropy
+1 (470) 580-1086
beth.stellato@newellco.com

Source: Newell Brands


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