UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 31, 2008

NEWELL RUBBERMAID INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware (State or Other Jurisdiction of Incorporation)		1-9608 (Commission File Number)		36-3514169 (IRS Employer Identification No.)

10 B Glenlake Parkway Suite 300 Atlanta, Georgia (Address of Principal Executive Offices)		30328 (Zip Code)

Registrant’s Telephone Number, Including Area Code: (770) 407-3800

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.		Results of Operations and Financial Condition.

The information in this Item 2.02, and the Exhibit attached to this Report, are furnished pursuant to Item 2.02 of Form 8-K. Consequently, such items are not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Such items may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.

On January 31, 2008, Newell Rubbermaid Inc. (the “Company”) reported its results for the fiscal quarter and fiscal year ended December 31, 2007. The Company’s press release, dated January 31, 2008, and Additional Financial Information, is attached as Exhibit 99.1.

The press release and Additional Financial Information contain non-GAAP financial measures. For purposes of Securities and Exchange Commission Regulation G, a “non-GAAP financial measure” is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Operating and statistical measures and certain ratios and other statistical measures are not non-GAAP financial measures. For purposes of the definition, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided, as a part of the press release and Additional Financial Information, a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

The Company has used certain financial measures that are included in the press release and Additional Financial Information both in presenting its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these measures — including those that are “non-GAAP financial measures” — and the information they provide are useful to investors since these measures:

	•		enable investors and analysts to compare the current non-GAAP measures with the corresponding non-GAAP measures used in the past, and
	•		permit investors to view the Company’s performance using the same tools that Company management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance and to gauge the Company’s progress in achieving its stated goals.

The Company’s management believes that operating income, income from continuing operations and diluted earnings per share from continuing operations, excluding restructuring charges, are also useful because they provide investors with a meaningful perspective on the current underlying performance of the Company’s continuing operations. The Company’s management believes that free cash flow, defined by the Company as cash generated from operations less capital expenditures, is useful to investors because it is an indication of amounts of cash flow that may be available for dividends and further investment in future growth initiatives. Another purpose for which the Company uses diluted earnings per share from continuing operations, excluding restructuring charges, is as a performance goal that helps determine the amount, if any, of cash bonuses for corporate management employees under the Company’s management cash bonus plan. The Company’s management believes that adjusted sales, as reflected in the Currency Analysis included in Exhibit 99.1, is useful to investors because it demonstrates the effect of foreign currency translation on reported sales. The Company’s management believes that “Normalized” earnings per share, which excludes restructuring charges and one-time tax benefits is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance.

While the Company believes that these non-GAAP financial measures are useful in evaluating the Company, 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.

Item 7.01		Regulation FD Disclosure.

The information set forth under Item 2.02 above and in Exhibit 99.1 to this Report is also intended to be furnished under this Item 7.01 and is hereby incorporated by reference.

Item 9.01		Financial Statements and Exhibits.

(c)

Exhibits.

Exhibit
Number		Description
99.1		Press Release, dated January 31, 2008, issued by Newell Rubbermaid Inc., and Additional Financial Information

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit No.		Description
99.1		Press Release, dated January 31, 2008, issued by Newell Rubbermaid Inc., and Additional Financial Information

		> News Release

Newell Rubbermaid Reports Fourth Quarter
and Full Year 2007 Results

•

Achieves sales, margin and profit improvement targets for 2nd consecutive year

•

Eclipses gross margin milestone of 35 percent one year earlier than expected

•

Reaffirms 2008 EPS guidance while continuing brand building reinvestment; adjusts 2008 sales outlook in light of tougher economic environment

ATLANTA, January 31, 2008 — Newell Rubbermaid (NYSE: NWL) today announced its fourth quarter and full year 2007 results.

Full Year Financial Highlights

Net sales grew 3.3 percent to $6.41 billion, compared to $6.20 billion in the prior year. Foreign exchange contributed 2.0 percent to sales growth. Growth was led by a high single-digit increase in the Home & Family segment and a mid single-digit increase in the Cleaning, Organization & Décor segment.

“For the second consecutive year, we made strong progress on our multi-year journey to become a best-in-class global consumer products company,” said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. “Our employees worked extremely hard to drive our key organizational initiatives, including successfully launching SAP in our North American Office Products business, executing numerous restructuring projects, making the necessary investments to become a more consumer-centric and global branded marketing organization, and embracing cultural change, all while delivering on our full year financial commitments.”

Gross margin was 35.2 percent, a 185 basis point improvement over the prior year. The expansion reflects ongoing productivity initiatives, savings from Project Acceleration and favorable mix.

Excluding Project Acceleration restructuring costs of $86.0 million in 2007 and $66.4 million in 2006, operating income improved $103.3 million to $826.3 million, a 14 percent increase over the prior year, and as a percent of sales, improved from 11.7 to 12.9 percent.

Normalized earnings, which exclude Project Acceleration restructuring costs and one-time tax items, were $1.82 per diluted share, a 20 percent increase over the prior year’s result of $1.52 per diluted share.

Income from continuing operations, as reported, was $479.2 million, or $1.72 per diluted share, compared to $470.7 million, or $1.71 per diluted share, in the prior year.

Excluding Project Acceleration restructuring costs, income from continuing operations was $548.8 million, or $1.97 per diluted share, compared to the prior year’s result of $518.9 million, or $1.88

		> News Release

per diluted share. Income from continuing operations in 2007 included one-time tax benefits of $41.3 million, or $0.15 per diluted share, versus $0.36 per diluted share in the prior year. A reconciliation of the results “as reported” to results “excluding charges” is attached to this press release.

Operating cash flow was $655.3 million, compared to $643.4 million for the prior year. Capital expenditures were $157.3 million, compared to $138.3 million for the prior year.

Free cash flow, defined as operating cash flow less capital expenditures, as a percentage of net earnings was 107 percent. The company returned $234.7 million to shareholders through cash dividends.

A reconciliation of the full year 2007 and last year’s results is as follows:

		FY 2007				FY 2006
Diluted earnings per share from continuing operations (as reported):		$	1.72			$	1.71
Project Acceleration restructuring costs		$	0.25			$	0.17
Diluted earnings per share from continuing operations (excluding charges):		$	1.97			$	1.88
Tax benefits		$	(0.15	)		$	(0.36	)
“Normalized” EPS:		$	1.82			$	1.52

Quarterly Financial Highlights

Net sales increased 0.3 percent in the fourth quarter, consistent with the guidance communicated in late November. Mid single-digit sales growth in the Cleaning, Organization & Décor and Home & Family segments was partially offset by a high single-digit decline in the Office Products segment, reflecting the recent slowdown in the North American office products retail environment and commensurate inventory reductions taken at key retailers.

Gross margin improved to 35.1 percent, a 212 basis point improvement over the prior year, marking the 11th consecutive quarter of gross margin expansion for the company. The expansion was driven primarily by favorable mix and productivity improvements, including the impact of Project Acceleration.

Excluding Project Acceleration restructuring costs of $32.3 million in 2007 and $16.1 million in 2006, operating income improved $22.2 million to $205.2 million, a 12 percent increase over the prior year.

Normalized earnings, which exclude Project Acceleration restructuring costs and one-time tax items, were $0.47 per diluted share, an 11 percent increase over the prior year’s result of $0.42 per diluted share.

		> News Release

Income from continuing operations, as reported, was $101.0 million, or $0.36 per diluted share, compared to $92.3 million, or $0.33 per diluted share, in the prior year.

Excluding Project Acceleration restructuring costs, income from continuing operations was $131.2 million, or $0.47 per diluted share, compared to the prior year’s result of $104.2 million, or $0.38 per diluted share. Income from continuing operations in the fourth quarter 2006 included the reversal of one-time tax benefits totaling $13.0 million, or $0.05 per diluted share. A reconciliation of the results “as reported” to results “excluding charges” is attached to this press release.

A reconciliation of the fourth quarter 2007 and last year’s results is as follows:

		Q4 2007				Q4 2006
Diluted earnings per share from continuing operations (as reported):		$	0.36			$	0.33
Project Acceleration restructuring costs		$	0.11			$	0.05
Diluted earnings per share from continuing operations (excluding charges):		$	0.47			$	0.38
Reversal of tax benefits		$	0.00			$	0.05
“Normalized” EPS:		$	0.47			$	0.42

2008 Full Year Guidance

The company now expects sales growth of 2 to 3 percent, compared to management’s previous expectation of 3 to 5 percent, reflecting the worsening economic conditions in North America which the company does not expect to improve in 2008.

Savings from Project Acceleration, combined with ongoing productivity initiatives and favorable product mix, are expected to drive gross margin expansion in excess of 100 basis points. Despite the weakening economy, the company continues to expect to reinvest approximately half of this expansion in strategic brand building and corporate initiatives.

The company continues to expect sales growth and gross margin expansion to drive normalized earnings to a range of $1.95 to $2.00 per diluted share.

Operating cash flow is expected to be between $600 and $650 million, including approximately $100 million in restructuring cash payments. Capital expenditures are anticipated to range from $160 to $180 million.

		> News Release

2008 First Quarter Guidance

The company expects sales to increase 2 to 4 percent, driven by strong growth in the Home & Family segment and Rubbermaid Commercial business.

The company anticipates normalized earnings will be $0.27 per diluted share, approximately flat to last year.

A reconciliation of the first quarter and full year 2008 earnings outlook is as follows:

		Q1 2008				FY 2008
Diluted earnings per share from continuing operations (as reported):		$	0.15 - $0.17			$	1.50 - $1.55
Project Acceleration restructuring costs		$	0.10 - $0.12			$	0.44 - $0.47
Diluted earnings per share from continuing operations (excluding charges):		$	0.27			$	1.95 - $2.00
Tax benefits		$	0.00			$	0.00
“Normalized” EPS:		$	0.27			$	1.95 - $2.00

Conference Call

The company’s fourth quarter 2007 earnings conference call is scheduled for today, January 31, 2008, at 9:00 a.m. ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The webcast will be available for replay for two weeks. A brief supporting slide presentation will be available prior to the call under Quarterly Earnings in the Investor Relations section on the company’s Web site.

Caution Concerning Forward-Looking Statements

The statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of Project Acceleration, sales, income/(loss), earnings per share, operating income or gross margin improvements, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, debt ratings, and management’s plans, projections and objectives for future operations and performance. These statements are accompanied by words such as “anticipate,” “expect,” “project,” “will,” “believes,” “estimate” and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. 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 dependence on the strength of retail economies; competition with other manufacturers and distributors of consumer products; major retailers’ strong bargaining power; changes in the prices of raw materials; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands;

		> News Release

our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our organization; our ability to improve productivity and streamline operations; the risks inherent in our foreign operations and those factors listed in the company’s most recent quarterly report on Form 10-Q, and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with sales of over $6 billion and a strong portfolio of brands, including Rubbermaid^®, Sharpie^®, Graco^®, Calphalon^®, Irwin^®, Lenox^®, Levolor^®, Paper Mate^®, DYMO^®, Waterman^®, Parker^®, Goody^®, BernzOmatic^® and Amerock^®. The company is headquartered in Atlanta, Ga., and has approximately 22,500 employees worldwide.

This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.

Contacts:
Ron Hardnock		David Doolittle
Vice President, Investor Relations		Vice President, Corporate Communications
+1 (770) 407-3994		+1 (770) 407-3613

NWL-EA

Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)

Reconciliation of Results “As Reported” to Results “Excluding Charges”

		Three Months Ended December 31,
		2007												2006												YOY
		As Reported				Charges (1)				Excl. Charges				As Reported				Charges (2)				Excl. Charges				% Change
Net sales		$	1,642.5			$	—			$	1,642.5			$	1,638.2			$	—			$	1,638.2				0.3	%
Cost of products sold			1,066.6				—				1,066.6				1,098.5				—				1,098.5
GROSS MARGIN			575.9				—				575.9				539.7				—				539.7				6.7	%
% of sales			35.1	%							35.1	%			32.9	%							32.9	%
Selling, general & administrative expenses			370.7				—				370.7				356.7				—				356.7				3.9	%
% of sales			22.6	%							22.6	%			21.8	%							21.8	%
Restructuring costs			32.3				(32.3	)			—				16.1				(16.1	)			—
OPERATING INCOME			172.9				32.3				205.2				166.9				16.1				183.0				12.1	%
% of sales			10.5	%							12.5	%			10.2	%							11.2	%
Nonoperating expenses:
Interest expense, net			21.2				—				21.2				29.8				—				29.8
Other expense, net			2.9				—				2.9				2.0				—				2.0
			24.1				—				24.1				31.8				—				31.8				(24.2	)%
INCOME BEFORE INCOME TAXES			148.8				32.3				181.1				135.1				16.1				151.2				19.8	%
% of sales			9.1	%							11.0	%			8.2	%							9.2	%
Income taxes			47.8				2.1				49.9				42.8				4.2				47.0				6.2	%
Effective rate			32.1	%							27.6	%			31.7	%							31.1	%
INCOME FROM CONTINUING OPERATIONS			101.0				30.2				131.2				92.3				11.9				104.2				25.9	%
% of sales			6.1	%							8.0	%			5.6	%							6.4	%
Discontinued operations, net of tax:
Net gain/(loss)			4.4				(4.4	)			—				9.9				(9.9	)			—
NET INCOME		$	105.4			$	25.8			$	131.2			$	102.2			$	2.0			$	104.2				25.9	%
% of sales			6.4	%							8.0	%			6.2	%							6.4	%
EARNINGS PER SHARE FROM CONTINUING OPERATIONS:
Basic		$	0.37			$	0.11			$	0.48			$	0.34			$	0.04			$	0.38
Diluted		$	0.36			$	0.11			$	0.47			$	0.33			$	0.04			$	0.38
GAIN/(LOSS) PER SHARE FROM DISCONTINUED OPERATIONS:
Basic		$	0.02			$	(0.02	)		$	—			$	0.04			$	(0.04	)		$	—
Diluted		$	0.02			$	(0.02	)		$	—			$	0.04			$	(0.04	)		$	—
EARNINGS PER SHARE:
Basic		$	0.38			$	0.09			$	0.48			$	0.37			$	0.01			$	0.38
Diluted		$	0.38			$	0.09			$	0.47			$	0.37			$	0.01			$	0.38
AVERAGE SHARES OUTSTANDING:
Basic			276.1								276.1				274.8								274.8
Diluted			277.8								286.1				275.9								275.9

Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)

Reconciliation of Results “As Reported” to Results “Excluding Charges”

		Twelve Months Ended December 31,
		2007												2006												YOY
		As Reported				Charges (1)				Excl. Charges				As Reported				Charges (2)				Excl. Charges				% Change
Net sales		$	6,407.3			$	—			$	6,407.3			$	6,201.0			$	—			$	6,201.0				3.3	%
Cost of products sold			4,150.1				—				4,150.1				4,131.0				—				4,131.0
GROSS MARGIN			2,257.2				—				2,257.2				2,070.0				—				2,070.0				9.0	%
% of sales			35.2	%							35.2	%			33.4	%							33.4	%
Selling, general & administrative expenses			1,430.9				—				1,430.9				1,347.0				—				1,347.0				6.2	%
% of sales			22.3	%							22.3	%			21.7	%							21.7	%
Restructuring costs			86.0				(86.0	)			—				66.4				(66.4	)			—
OPERATING INCOME			740.3				86.0				826.3				656.6				66.4				723.0				14.3	%
% of sales			11.6	%							12.9	%			10.6	%							11.7	%
Nonoperating expenses:
Interest expense, net			104.1				—				104.1				132.0				—				132.0
Other expense, net			7.3				—				7.3				9.7				—				9.7
			111.4				—				111.4				141.7				—				141.7				(21.4	)%
INCOME BEFORE INCOME TAXES			628.9				86.0				714.9				514.9				66.4				581.3				23.0	%
% of sales			9.8	%							11.2	%			8.3	%							9.4	%
Income taxes			149.7				16.4				166.1				44.2				18.2				62.4				166.2	%
Effective rate			23.8	%							23.2	%			8.6	%							10.7	%
INCOME FROM CONTINUING OPERATIONS			479.2				69.6				548.8				470.7				48.2				518.9				5.8	%
% of sales			7.5	%							8.6	%			7.6	%							8.4	%
Discontinued operations, net of tax:
Net loss			(12.1	)			12.1				—				(85.7	)			85.7				—
NET INCOME		$	467.1			$	81.7			$	548.8			$	385.0			$	133.9			$	518.9				5.8	%
% of sales			7.3	%							8.6	%			6.2	%							8.4	%
EARNINGS PER SHARE FROM CONTINUING OPERATIONS:
Basic		$	1.74			$	0.25			$	1.99			$	1.71			$	0.18			$	1.89
Diluted		$	1.72			$	0.25			$	1.97			$	1.71			$	0.17			$	1.88
LOSS PER SHARE FROM DISCONTINUED OPERATIONS:
Basic		$	(0.04	)		$	0.04			$	—			$	(0.31	)		$	0.31			$	—
Diluted		$	(0.04	)		$	0.04			$	—			$	(0.31	)		$	0.31			$	—
EARNINGS PER SHARE:
Basic		$	1.69			$	0.30			$	1.99			$	1.40			$	0.49			$	1.89
Diluted		$	1.68			$	0.29			$	1.97			$	1.40			$	0.48			$	1.88
AVERAGE SHARES OUTSTANDING:
Basic			276.0								276.0				274.6								274.6
Diluted			286.1								286.1				275.5								283.8

Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)

		December 31,				December 31,
		2007				2006
Assets:
Cash and cash equivalents		$	329.2			$	201.0
Accounts receivable, net			1,166.4				1,113.6
Inventories, net			940.4				850.6
Deferred income taxes			102.0				110.1
Prepaid expenses and other			113.7				133.5
Current assets of discontinued operations			—				68.1
Total Current Assets			2,651.7				2,476.9
Property, plant and equipment, net			688.6				746.9
Deferred income taxes			29.4				1.3
Goodwill			2,608.7				2,435.7
Other intangible assets, net			501.8				458.8
Other assets			202.7				190.9
Total Assets		$	6,682.9			$	6,310.5
Liabilities and Stockholders’ Equity:
Accounts payable		$	616.9			$	549.9
Accrued compensation			170.7				177.9
Other accrued liabilities			744.7				710.9
Income taxes payable			44.0				144.3
Notes payable			15.3				23.9
Current portion of long-term debt			972.2				253.6
Current liabilities of discontinued operations			—				36.1
Total Current Liabilities			2,563.8				1,896.6
Long-term debt			1,197.4				1,972.3
Other non-current liabilities			674.4				551.4
Stockholders’ Equity			2,247.3				1,890.2
Total Liabilities and Stockholders’ Equity		$	6,682.9			$	6,310.5

Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)

		Twelve Months Ended December 31,
		2007				2006
Operating Activities:
Net income		$	467.1			$	385.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			177.0				193.3
Deferred income taxes			(0.9	)			(5.0	)
Impairment charges			—				50.9
Non-cash restructuring costs			27.7				27.2
Gain on sale of assets			—				(4.5	)
Stock-based compensation expense			36.4				44.0
Loss/(gain) on disposal of discontinued operations			11.9				(0.7	)
Non-cash income tax benefits			(41.3	)			(102.8	)
Other			(3.4	)			(12.9	)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable			(7.9	)			25.1
Inventories			(53.6	)			(32.2	)
Accounts payable			54.0				(51.0	)
Accrued liabilities and other			(11.7	)			96.9
Discontinued operations			—				30.1
Net cash provided by operating activities		$	655.3			$	643.4
Investing Activities:
Acquisitions, net of cash acquired		$	(106.0	)		$	(60.6	)
Capital expenditures			(157.3	)			(138.3	)
Disposals of non-current assets and sales of businesses			(2.3	)			187.0
Net cash used in investing activities		$	(265.6	)		$	(11.9	)
Financing Activities:
Proceeds from issuance of debt		$	420.8			$	177.0
Payments on notes payable and debt			(478.3	)			(511.0	)
Cash dividends			(234.7	)			(232.8	)
Proceeds from exercised stock options and other			25.4				16.7
Net cash used in financing activities		$	(266.8	)		$	(550.1	)
Currency rate effect on cash and cash equivalents		$	5.3			$	4.1
Increase in cash and cash equivalents		$	128.2			$	85.5
Cash and cash equivalents at beginning of year			201.0				115.5
Cash and cash equivalents at end of year		$	329.2			$	201.0

Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)

		Three Months Ended December 31,
		2007				2006
Free Cash Flow (in millions):
Net cash provided by operating activities		$	199.1			$	239.1
Capital expenditures			(47.3	)			(44.2	)
Free Cash Flow		$	151.8			$	194.9

		Twelve Months Ended December 31,
		2007				2006
Free Cash Flow (in millions):
Net cash provided by operating activities		$	655.3			$	643.4
Capital expenditures			(157.3	)			(138.3	)
Free Cash Flow		$	498.0			$	505.1

Newell Rubbermaid Inc.
Financial Worksheet
(In Millions)

		2007																				2006
						Excluding Charges Reconciliation (1)																				Excluding Charges Reconciliation (1)																Year-over-year changes
						Reported				Excluded				Ex Charges				Operating								Reported				Excluded				Ex Charges				Operating				Net Sales								Operating Income (2)
		Net Sales				OI				Charges				OI				Margin				Net Sales				OI				Charges				OI				Margin				$				%				$				%
Q1:
Cleaning, Organization & Décor		$	457.4			$	57.2			$	—			$	57.2				12.5	%		$	449.7			$	38.4			$	—			$	38.4				8.5	%		$	7.7				1.7	%		$	18.8				49.0	%
Office Products			406.3				35.2				—				35.2				8.7	%			390.8				32.3				—				32.3				8.3	%			15.5				4.0	%			2.9				9.0	%
Tools & Hardware			293.9				34.2				—				34.2				11.6	%			276.8				33.1				—				33.1				12.0	%			17.1				6.2	%			1.1				3.3	%
Home & Family			226.8				30.4				—				30.4				13.4	%			225.3				32.7				—				32.7				14.5	%			1.5				0.7	%			(2.3	)			(7.0	)%
Restructuring Costs							(15.5	)			15.5				—												(9.1	)			9.1				—																—
Corporate							(20.7	)			—				(20.7	)											(17.6	)			—				(17.6	)															(3.1	)
Total		$	1,384.4			$	120.8			$	15.5			$	136.3				9.8	%		$	1,342.6			$	109.8			$	9.1			$	118.9				8.9	%		$	41.8				3.1	%		$	17.4				14.6	%
		2007																				2006
						Excluding Charges Reconciliation (1)																				Excluding Charges Reconciliation (1)																Year-over-year changes
						Reported				Excluded				Ex Charges				Operating								Reported				Excluded				Ex Charges				Operating				Net Sales								Operating Income (2)
		Net Sales				OI				Charges				OI				Margin				Net Sales				OI				Charges				OI				Margin				$				%				$				%
Q2:
Cleaning, Organization & Décor		$	544.4			$	81.2			$	—			$	81.2				14.9	%		$	509.9			$	57.3			$	—			$	57.3				11.2	%		$	34.5				6.8	%		$	23.9				41.7	%
Office Products			587.5				109.0				—				109.0				18.6	%			579.1				99.9				—				99.9				17.3	%			8.4				1.5	%			9.1				9.1	%
Tools & Hardware			324.6				47.7				—				47.7				14.7	%			328.8				53.8				—				53.8				16.4	%			(4.2	)			(1.3	)%			(6.1	)			(11.3	)%
Home & Family			236.6				31.3				—				31.3				13.2	%			216.3				29.8				—				29.8				13.8	%			20.3				9.4	%			1.5				5.0	%
Restructuring Costs							(15.5	)			15.5				—												(19.1	)			19.1				—																—
Corporate							(20.9	)			—				(20.9	)											(20.0	)			—				(20.0	)															(0.9	)
Total		$	1,693.1			$	232.8			$	15.5			$	248.3				14.7	%		$	1,634.1			$	201.7			$	19.1			$	220.8				13.5	%		$	59.0				3.6	%		$	27.5				12.5	%
		2007																				2006
						Excluding Charges Reconciliation (1)																				Excluding Charges Reconciliation (1)																Year-over-year changes
						Reported				Excluded				Ex Charges				Operating								Reported				Excluded				Ex Charges				Operating				Net Sales								Operating Income (2)
		Net Sales				OI				Charges				OI				Margin				Net Sales				OI				Charges				OI				Margin				$				%				$				%
Q3:
Cleaning, Organization & Décor		$	547.2			$	83.7			$	—			$	83.7				15.3	%		$	519.3			$	67.8			$	—			$	67.8				13.1	%		$	28.0				5.4	%		$	15.9				23.5	%
Office Products			544.9				84.2				—				84.2				15.5	%			517.5				75.7				—				75.7				14.6	%			27.4				5.3	%			8.5				11.2	%
Tools & Hardware			335.9				51.3				—				51.3				15.3	%			324.4				46.2				—				46.2				14.2	%			11.5				3.5	%			5.1				11.0	%
Home & Family			259.3				37.2				—				37.2				14.3	%			224.9				28.9				—				28.9				12.9	%			34.4				15.3	%			8.3				28.7	%
Restructuring Costs							(22.7	)			22.7				—												(22.1	)			22.1				—																—
Corporate							(19.9	)			—				(19.9	)											(18.3	)			—				(18.3	)															(1.6	)
Total		$	1,687.3			$	213.8			$	22.7			$	236.5				14.0	%		$	1,586.1			$	178.2			$	22.1			$	200.3				12.6	%		$	101.3				6.4	%		$	36.2				18.1	%
		2007																				2006
						Excluding Charges Reconciliation (1)																				Excluding Charges Reconciliation (1)																Year-over-year changes
						Reported				Excluded				Ex Charges				Operating								Reported				Excluded				Ex Charges				Operating				Net Sales								Operating Income (2)
		Net Sales				OI				Charges				OI				Margin				Net Sales				OI				Charges				OI				Margin				$				%				$				%
Q4:
Cleaning, Organization & Décor		$	547.4			$	51.2							$	51.2				9.4	%		$	516.8			$	45.6							$	45.6				8.8	%		$	30.6				5.9	%		$	5.6				12.3	%
Office Products			503.6				89.5								89.5				17.8	%			544.2				79.1								79.1				14.5	%			(40.6	)			(7.5	)%			10.4				13.1	%
Tools & Hardware			334.3				48.3								48.3				14.4	%			332.2				51.9								51.9				15.6	%			2.1				0.6	%			(3.6	)			(6.9	)%
Home & Family			257.2				36.7								36.7				14.3	%			245.0				26.5								26.5				10.8	%			12.2				5.0	%			10.2				38.5	%
Restructuring Costs							(32.3	)			32.3				—												(16.1	)			16.1				—																—
Corporate							(20.5	)							(20.5	)											(20.1	)							(20.1	)															(0.4	)
Total		$	1,642.5			$	172.9			$	32.3			$	205.2				12.5	%		$	1,638.2			$	166.9			$	16.1			$	183.0				11.2	%		$	4.3				0.3	%		$	22.2				12.1	%
		2007																				2006
						Excluding Charges Reconciliation (1)																				Excluding Charges Reconciliation (1)																Year-over-year changes
						Reported				Excluded				Ex Charges				Operating								Reported				Excluded				Ex Charges				Operating				Net Sales								Operating Income (2)
		Net Sales				OI				Charges				OI				Margin				Net Sales				OI				Charges				OI				Margin				$				%				$				%
YTD:
Cleaning, Organization & Décor		$	2,096.4			$	273.3			$	—			$	273.3				13.0	%		$	1,995.7			$	209.1			$	—			$	209.1				10.5	%		$	100.7				5.0	%		$	64.2				30.7	%
Office Products			2,042.3				317.9				—				317.9				15.6	%			2,031.6				287.0				—				287.0				14.1	%			10.7				0.5	%			30.9				10.8	%
Tools & Hardware			1,288.7				181.5				—				181.5				14.1	%			1,262.2				185.0				—				185.0				14.7	%			26.5				2.1	%			(3.5	)			(1.9	)%
Home & Family			979.9				135.6				—				135.6				13.8	%			911.5				117.9				—				117.9				12.9	%			68.4				7.5	%			17.7				15.0	%
Restructuring Costs							(86.0	)			86.0				—												(66.4	)			66.4				—																—
Corporate							(82.0	)			—				(82.0	)											(76.0	)			—				(76.0	)															(6.0	)
Total		$	6,407.3			$	740.3			$	86.0			$	826.3				12.9	%		$	6,201.0			$	656.6			$	66.4			$	723.0				11.7	%		$	206.3				3.3	%		$	103.3				14.3	%