Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | NEWELL BRANDS INC | |
Entity Central Index Key | 0000814453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | NWL | |
Entity Common Stock, Shares Outstanding | 423.1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Statement [Abstract] | |||
Net sales | [1] | $ 1,712.1 | $ 1,811.5 |
Cost of products sold | 1,168.3 | 1,206.2 | |
Gross profit | 543.8 | 605.3 | |
Selling, general and administrative expenses | 517.9 | 626.3 | |
Restructuring costs, net | 10.9 | 5.4 | |
Operating income (loss) | [2] | 15 | (26.4) |
Non-operating expenses: | |||
Interest expense, net | 80.2 | 116.1 | |
Other expense (income), net | 23.3 | (1.4) | |
Loss before income taxes | (88.5) | (141.1) | |
Income tax benefit | (16.7) | (86.4) | |
Loss from continuing operations | (71.8) | (54.7) | |
Income (loss) from discontinued operations, net of tax | (79.4) | 108 | |
Net income (loss) | $ (151.2) | $ 53.3 | |
Weighted average shares outstanding: | |||
Basic | 423 | 486 | |
Diluted | 423 | 486 | |
Basic: | |||
Loss from continuing operations | $ (0.17) | $ (0.11) | |
Income (loss) from discontinued operations | (0.19) | 0.22 | |
Net income (loss) | (0.36) | 0.11 | |
Diluted: | |||
Loss from continuing operations | (0.17) | (0.11) | |
Income (loss) from discontinued operations | (0.19) | 0.22 | |
Net income (loss) | $ (0.36) | $ 0.11 | |
[1] | All intercompany transactions have been eliminated. | ||
[2] | Operating income (loss) by segment is net sales less cost of products sold, SG&A and impairment of goodwill, intangibles and other assets for continuing operations. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (151.2) | $ 53.3 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (2.1) | 64.1 |
Unrecognized pension and postretirement costs | (13.2) | (16.3) |
Derivative financial instruments | (8.4) | 3.6 |
Total other comprehensive income (loss), net of tax | (23.7) | 51.4 |
Comprehensive income (loss) | $ (174.9) | $ 104.7 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 364.1 | $ 495.7 |
Accounts receivable, net | 1,606.1 | 1,850.7 |
Inventories | 1,799 | 1,583.1 |
Prepaid expenses and other | 290.8 | 275.6 |
Current assets held for sale | 3,456.1 | 3,535.2 |
Total current assets | 7,516.1 | 7,740.3 |
Property, plant and equipment, net | 930.7 | 925.6 |
Operating lease assets, net | 619.3 | |
Goodwill | 2,958.3 | 2,970.2 |
Other intangible assets, net | 5,536.4 | 5,579.6 |
Deferred income taxes | 216 | 179.7 |
Other assets | 329.3 | 327 |
Total assets | 18,106.1 | 17,722.4 |
Liabilities: | ||
Accounts payable | 934.9 | 1,019.5 |
Accrued compensation | 121.6 | 159.1 |
Other accrued liabilities | 1,174.4 | 1,180.6 |
Short-term debt and current portion of long-term debt | 573.6 | 318.7 |
Current liabilities held for sale | 747.1 | 734.1 |
Total current liabilities | 3,551.6 | 3,412 |
Long-term debt | 6,694.6 | 6,696.3 |
Deferred income taxes | 1,000.7 | 992.7 |
Long-term operating lease liabilities | 547.6 | |
Other noncurrent liabilities | 1,328.5 | 1,368.2 |
Total liabilities | 13,123 | 12,469.2 |
Commitments and contingencies (Footnote 18) | ||
Stockholders' equity: | ||
Preferred stock (10.0 authorized shares, $1.00 par value, no shares issued at March 31, 2019 and December 31, 2018) | ||
Common stock (800 authorized shares, $1.00 par value 446.5 shares and 446.1 shares issued at March 31, 2019 and December 31, 2018, respectively) | 446.5 | 446.1 |
Treasury stock, at cost (23.4 and 23.3 shares at March 31, 2019 and December 31, 2018, respectively) | (587.7) | (584.7) |
Additional paid-in capital | 8,688.1 | 8,781.1 |
Retained deficit | (2,662) | (2,511.3) |
Accumulated other comprehensive loss | (936.5) | (912.8) |
Stockholders' equity attributable to parent | 4,948.4 | 5,218.4 |
Stockholders' equity attributable to noncontrolling interests | 34.7 | 34.8 |
Total stockholders' equity | 4,983.1 | 5,253.2 |
Total liabilities and stockholders' equity | $ 18,106.1 | $ 17,722.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par or stated value per share | $ 1 | $ 1 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 446,500,000 | 446,100,000 |
Treasury stock, shares | 23,400,000 | 23,300,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (151.2) | $ 53.3 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 86.9 | 149.8 |
Impairment of goodwill, intangibles and other assets | 174.7 | |
Net gain from sale of businesses | (5.2) | (0.6) |
Deferred income taxes | (46.9) | (94.4) |
Stock-based compensation expense | 4.9 | 10.1 |
Loss on change in fair value of investments | 16.7 | |
Other, net | 1.6 | 0.8 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | ||
Accounts receivable | 245.7 | 255.9 |
Inventories | (258.7) | (308.8) |
Accounts payable | (106.9) | (285.8) |
Accrued liabilities and other | (162) | (182) |
Net cash used in operating activities | (200.4) | (401.7) |
Cash flows from investing activities: | ||
Capital expenditures | (58.2) | (95.1) |
Other investing activities | (17.5) | (10.2) |
Net cash used in investing activities | (75.7) | (105.3) |
Cash flows from financing activities: | ||
Net short-term debt | 521.4 | 602.8 |
Payments on current portion long-term debt | (268.2) | |
Payments on long-term debt | (4.6) | (0.7) |
Cash dividends | (97.7) | (112.6) |
Debt issuance and extinguishment costs | (2.7) | |
Equity compensation activity and other, net | (2.6) | (14.8) |
Net cash provided by financing activities | 145.6 | 474.7 |
Exchange rate effect on cash and cash equivalents | (1.1) | 5.6 |
Decrease in cash and cash equivalents | (131.6) | (26.7) |
Cash and cash equivalents at beginning of period | 495.7 | 485.7 |
Cash and cash equivalents at end of period | 364.1 | 459 |
Supplemental disclosures: | ||
Net cash provided by discontinued operating activities | 11.9 | 35.9 |
Net cash used in discontinued investing activities | (11.9) | (35.7) |
Capital expenditures for discontinued operations | $ (12.5) | $ (35.9) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Stockholders' Equity Attributable to Parent [Member] | Non-controlling Interest [Member] |
Beginning balance at Dec. 31, 2017 | $ 14,181.3 | $ 508.1 | $ (573.5) | $ 10,362 | $ 4,611.2 | $ (763.1) | $ 14,144.7 | $ 36.6 |
Comprehensive income (loss) | 104.7 | 53.3 | 51.4 | 104.7 | ||||
Dividends declared on common stock | (112.5) | (112.5) | (112.5) | |||||
Equity compensation, net of tax | 3.5 | 0.7 | (6.7) | 9.5 | 3.5 | |||
Impact of adoption due to change in accounting standard | Accounting Standards Update 2016-16 [Member] | (9.5) | (9.5) | (9.5) | |||||
Portion of net (income) loss attributable to non-controlling interests | (0.2) | (0.2) | ||||||
Ending balance at Mar. 31, 2018 | 14,167.3 | 508.8 | (580.2) | 10,371.5 | 4,542.5 | (711.7) | 14,130.9 | 36.4 |
Beginning balance at Dec. 31, 2018 | 5,253.2 | 446.1 | (584.7) | 8,781.1 | (2,511.3) | (912.8) | 5,218.4 | 34.8 |
Comprehensive income (loss) | (174.9) | (151.2) | (23.7) | (174.9) | ||||
Dividends declared on common stock | (97.7) | (97.7) | (97.7) | |||||
Equity compensation, net of tax | 2.1 | 0.4 | (3) | 4.7 | 2.1 | |||
Impact of adoption due to change in accounting standard | Accounting Standards Update 2016-16 [Member] | 0.5 | 0.5 | 0.5 | |||||
Portion of net (income) loss attributable to non-controlling interests | (0.1) | (0.1) | ||||||
Ending balance at Mar. 31, 2019 | $ 4,983.1 | $ 446.5 | $ (587.7) | $ 8,688.1 | $ (2,662) | $ (936.5) | $ 4,948.4 | $ 34.7 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Footnote 1 — Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Newell Brands Inc. (formerly, Newell Rubbermaid Inc., and collectively with its subsidiaries, the “Company”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (including normal recurring accruals) considered necessary for a fair presentation of the financial position and the results of operations of the Company. It is recommended that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements, and the footnotes thereto, included in the Company’s most recent Annual Report on Form 10-K. The condensed consolidated balance sheet as of December 31, 2018, has been derived from the audited financial statements as of that date, but it does not include all the information and footnotes required by U.S. GAAP for complete financial statements. Certain reclassifications have been made in the Company’s financial statements of the prior year to conform to the current year presentation. Discontinued Operations During 2018, the Company implemented the Accelerated Transformation Plan, which was designed in part, to rationalize the organization and its portfolio of products. Pursuant to the Accelerated Transformation Plan, a number of the Company’s businesses were designated for disposal. These businesses have been classified as discontinued operations as these businesses together represent a strategic shift that has a major effect on the Company’s operations and financial results (see Footnote 2). Prior periods have been reclassified to conform with the current presentation. Seasonal Variations Sales of the Company’s products tend to be seasonal, with sales, operating income and operating cash flow in the first quarter generally lower than any other quarter during the year, driven principally by reduced volume and the mix of products sold in the first quarter. The seasonality of the Company’s sales volume combined with the accounting for fixed costs, such as depreciation, amortization, rent, personnel costs and interest expense, impacts the Company’s results on a quarterly basis. In addition, the Company tends to generate the majority of its operating cash flow in the third and fourth quarters of the year due to seasonal variations in operating results, the timing of annual performance-based compensation payments, customer program payments, working capital requirements and credit terms provided to customers. Accordingly, the Company’s results of operations for the three months ended March 31, 2019 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2019. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” Adoption of New Accounting Guidance The Company’s accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our 2018 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the adoption of the following new accounting standards. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) $ million, lease liabilities of approximately $ million and a cumulative-effect adjustment on retained deficit of approximately $ million on its condensed consolidated balance sheet. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” Revisions of Previously Issued Financial Statements During the first quarter of 2019, the Company identified that it did not utilize an accurate estimate of fair value and expected form of sale in its fourth quarter 2018 impairment assessment for one of its five disposal groups classified as held for sale. The Company did not appropriately account for the disposal group as a stock sale. Consequently, certain income tax account balances (primarily related to deferred tax liabilities) were not classified as assets and liabilities held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2018. As a result, the Company determined its book-over-tax outside basis differences and measured the tax effects of such difference, which resulted in an income tax expense of approximately $12.6 million. In addition, the Company did not use an accurate estimate of fair value in its 2018 impairment assessment. Collectively, the estimate of fair value and expected form of sale resulted in adjustments to the estimated fair value and carrying value of the held for sale business utilized in the Company’s 2018 impairment assessment. These changes resulted in an additional impairment charge of approximately $12.0 million to write-down the carrying value of the net assets of the held for sale business to its estimated fair value at December 31, 2018. In addition, as part of the presentation of discontinued operations, the Company periodically has to reclassify the prior period presentation to conform to the current year presentation. These adjustments are reflected in the Reclassification column below. The following table presents the effect to the Company’s previously reported Consolidated Balance Sheet at December 31, 2018 and Consolidated Statement of Operations for the year ended December 31, 2018: As of December 31, 2018 As Previously Revision Reclassification As Prepaid expenses and other $ 278.0 $ (2.4 ) $ — $ 275.6 Current assets held for sale 3,541.3 (6.1 ) — 3,535.2 Total current assets 7,748.8 (8.5 ) — 7,740.3 Deferred income taxes (noncurrent assets) 165.2 14.5 — 179.7 Total assets 17,716.4 6.0 — 17,722.4 Other accrued liabilities 1,182.3 (0.8 ) (0.9 ) 1,180.6 Current liabilities held for sale 650.4 100.4 (16.7 ) 734.1 Total current liabilities 3,330.0 99.6 (17.6 ) 3,412.0 Deferred income taxes (liabilities) 1,041.8 (66.7 ) 17.6 992.7 Other noncurrent liabilities 1,370.5 (2.3 ) — 1,368.2 Total liabilities 12,438.6 30.6 — 12,469.2 Retained deficit (2,486.7 ) (24.6 ) — (2,511.3 ) Stockholders’ equity attributable to parent 5,243.0 (24.6 ) — 5,218.4 Total stockholders’ equity 5,277.8 (24.6 ) — 5,253.2 Total liabilities and stockholders’ equity 17,716.4 6.0 — 17,722.4 For the year ended December 31, 2018 Income Statement Classification As Previously Revision As Income (loss) from discontinued operations, net of tax $ (128.3 ) $ (24.6 ) $ (152.9 ) Net income (loss) (6,917.9 ) (24.6 ) (6,942.5 ) Earnings per share: Basic: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) Diluted: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) The Company concluded the above referenced effects were not material to its previously issued Consolidated Statement of Operations for the year ended December 31, 2018 and Consolidated Balance Sheet as of December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 4, 2019. As such, the Company will revise its Consolidated Statement of Operations, Consolidated Statement of Comprehensive Income (Loss), Consolidated Statement of Cash Flows and Consolidated Statement of Stockholders’ Equity for the year ended December 31, 2018 and Consolidated Balance Sheet at December 31, 2018 in the Company’s 2019 Annual Report on Form 10-K. The adjustments will not result in a change to net cash provided by operating activities in the Company’s Consolidated Statement of Cash Flows for the year ending December 31, 2018. In addition, the Company has revised the Condensed Consolidated Balance Sheet at December 31, 2018 for the above adjustments including the effects to the Company’s retained deficit and total stockholders’ equity within this Quarterly Report on Form 10-Q. Other Items At March 31, 2019, the Company held a 23.4% investment in FireAngel Safety Technology Group PLC (formerly known as Sprue Aegis PLC) (“FireAngel”), which the Company accounts for under the equity method of accounting. During the three months ended March 31, 2019, the Company recorded an other-than-temporary-impairment of approximately $11.7 million which reduced the carrying value of its investment in FireAngel to $2.9 million. FireAngel has experienced a decline in its share price. In addition, during March of 2019, FireAngel publicly disclosed its intentions to raise capital through a public offering at a price per share below our investment’s basis. The Company concluded these facts were indicative of an other-than-temporary-impairment and recorded the charge within other expense (income), net in the Condensed Consolidated Statement of Operations for the three-months ending March 31, 2019. During the three months ended March 31, 2018, the Company’s related party sales to FireAngel were $7.5 million. On March 31, 2018, the Company terminated its distribution agreement with FireAngel. |
Divestitures and Held for Sale
Divestitures and Held for Sale | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures and Held for Sale | Footnote 2 — Divestitures and Held for Sale Discontinued Operations As part of the Company’s Accelerated Transformation Plan, during 2018, the Company announced it was exploring strategic options for its industrial and commercial product assets, including The Waddington Group, Process Solutions, Rubbermaid Commercial Products, Rexair and Mapa/Spontex businesses, as well as non-core consumer businesses, including Jostens, Pure Fishing, Rawlings, Rubbermaid Outdoor, Closet, Refuse and Garage, Goody Products and U.S. Playing Cards businesses. These businesses are classified as discontinued operations. Prior periods have been reclassified to conform with the current presentation. During 2018, the Company sold Goody Products, Inc. (“Goody”), Jostens, Inc. (“Jostens”), Pure Fishing, Inc. (“Pure Fishing”), the Rawlings Sporting Goods Company, Inc. (“Rawlings”) and Waddington Group, Inc. (“Waddington”) and other related subsidiaries as part of the Accelerated Transformation Plan. The Company currently expects to complete the remaining divestitures by the end of 2019. The following table provides a summary of amounts included in discontinued operations for the periods indicated (in millions): Three Months Ended March 31, 2019 2018 Net sales $ 540.9 $ 1,205.9 Cost of products sold 378.8 805.8 Selling, general and administrative expenses 76.7 254.1 Restructuring costs, net — 2.5 Impairment of goodwill, intangibles and other assets 174.7 — Operating income (loss) (89.3 ) 143.5 Non-operating expense (income) (3.2 ) 0.4 Income (loss) before income taxes (86.1 ) 143.1 Income tax expense (benefit) (6.7 ) 35.1 Net income (loss) $ (79.4 ) $ 108.0 Held for Sale The following table presents information related to the major classes of assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheets as of the dates indicated (in millions): March 31, 2019 December 31, Accounts receivable, net $ 413.8 $ 411.7 Inventories 378.2 338.7 Prepaid expenses and other 37.4 42.8 Property, plant and equipment, net 510.8 515.9 Operating lease assets 74.3 — Goodwill 877.4 942.4 Other intangible assets, net 1,150.6 1,270.8 Other assets 13.6 12.9 Current assets held for sale $ 3,456.1 $ 3,535.2 Accounts payable $ 240.7 $ 256.7 Accrued compensation 49.3 57.0 Other accrued liabilities 146.5 154.4 Deferred income taxes 219.6 250.0 Operating lease liabilities 78.9 — Other liabilities 12.1 16.0 Current liabilities held for sale $ 747.1 $ 734.1 (1) See Footnote 1. Divestitures 2019 Activity On May 1, 2019, the Company sold its Rexair business to investment funds affiliated with Rhône Capital for $235 million, subject to customary working capital and post-closing adjustments. On May 1, 2019, for approximately $500 million, subject to customary working capital and other post-closing adjustments. During the three months ended March 31, 2019, the Company recorded an impairment charge primarily related to goodwill and intangible assets totaling approximately $ 175 2018 Activity On June 29, 2018, the Company sold Rawlings, its Team Sports business, to a fund managed by Seidler Equity Partners with a co-investment of Major League Baseball for approximately $400 million, subject to customary working capital and other post-closing adjustments. On June 29, 2018, the Company sold Waddington to Novolex Holdings LLC for approximately $2.3 billion, subject to customary working capital and other adjustments On August 31, 2018, the Company sold its Goody business, to a fund managed by ACON Investments, L.L.C. for approximately $109 million, subject to customary working capital and other adjustments. On December 21, 2018, the Company sold Jostens $1.3 billion, subject to customary working capital and adjustments. On December 21, 2018, the Company $1.3 billion, subject to customary working capital and adjustments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Footnote 3 — Accumulated Other Comprehensive Loss The following tables display the changes in Accumulated Other Comprehensive Loss (“AOCL”) by component net of tax for the three months ended March 31, 2019 (in millions): Cumulative Translation Adjustment Pension and Postretirement Costs Derivative Financial Instruments AOCL Balance at December 31, 2018 $ (492.6 ) $ (398.1 ) $ (22.1 ) $ (912.8 ) Other comprehensive loss income before reclassifications (2.1 ) (14.8 ) (5.1 ) (22.0 ) Amounts reclassified to earnings — 1.6 (3.3 ) (1.7 ) Net current period other comprehensive loss (2.1 ) (13.2 ) (8.4 ) (23.7 ) Balance at March 31, 2019 $ (494.7 ) $ (411.3 ) $ (30.5 ) $ (936.5 ) For the three months ended March 31, 2019 and 2018, reclassifications from AOCL to the results of operations for the Company’s pension and postretirement benefit plans were a pre-tax expense of $2.1 million and $3.6 million, respectively, and primarily represent the amortization of net actuarial losses (see Footnote 11). These costs are recorded in other expense (income), net. For the three months ended March 31, 2019 and 2018, reclassifications from AOCL to the results of operations for the Company’s derivative financial instruments for effective cash flow hedges were pre-tax (income) expense of ($ 4.2 The income tax (expense) benefit allocated to the components of AOCL for the periods indicated are as follows (in millions): Three Months Ended March, 31, 2019 2018 Foreign currency translation adjustments $ (0.2 ) $ 7.9 Unrecognized pension and postretirement costs 3.8 4.0 Derivative financial instruments 2.3 (0.2 ) Income tax benefit related to AOCL $ 5.9 $ 11.7 |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Footnote 4 — Restructuring Costs Restructuring provisions were determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring amounts also include amounts recognized as incurred. Accelerated Transformation Plan The Company’s Accelerated Transformation Plan, which was initiated during the first quarter of 2018, was designed in part, to divest the Company’s industrial and commercial product assets and non-core consumer businesses. The Accelerated Transformation Plan also focuses on the realignment of the Company’s management structure and overall cost structure as a result of the completed and planned divestitures. Restructuring costs associated with the transformation plan include employee-related costs, including severance, retirement and other termination benefits, contract termination costs and other costs. Other Restructuring In addition to the Accelerated Transformation Plan, the Company has incurred restructuring costs for various other restructuring activities. Restructuring Costs Restructuring costs incurred by reportable business segments for all restructuring activities in continuing operations for the periods indicated are as follows (in millions): Three Months Ended March 31, 2019 2018 Food and Appliances $ 1.8 $ 0.6 Home and Outdoor Living 2.5 0.8 Learning and Development 3.8 2.1 Corporate 2.8 1.9 $ 10.9 $ 5.4 Restructuring costs incurred during the three months ended March 31, 2019 and 2018 primarily relate to the Accelerated Transformation Plan. Accrued restructuring costs activity for the three months ended March 31, 2019 are as follows (in millions): Balance at Restructuring Payments Reclassification (1) Foreign Balance 2019 Employee severance, termination benefits and relocation costs $ 20.6 $ 7.0 $ (11.3 ) $ — $ (0.5 ) $ 15.8 Exited contractual commitments and other 46.6 3.9 (7.9 ) (12.9 ) (0.8 ) 28.9 $ 67.2 $ 10.9 $ (19.2 ) $ (12.9 ) $ (1.3 ) $ 44.7 (1) Reclassification due to the adoption of ASU 2016-02 (see Footnote 1) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Footnote 5 — Inventories Inventories are stated at the lower of cost or market value and are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Raw materials and supplies $ 224.1 $ 215.5 Work-in-process 152.8 130.7 Finished products 1,422.1 1,236.9 $ 1,799.0 $ 1,583.1 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Footnote 6 — Property, Plant and Equipment, Net Property, plant and equipment, net, is comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Land $ 69.2 $ 69.9 Buildings and improvements 478.5 479.1 Machinery and equipment 1,604.6 1,575.1 2,152.3 2,124.1 Less: Accumulated depreciation (1,221.6 ) (1,198.5 ) $ 930.7 $ 925.6 Depreciation expense for continuing operations was $39.8 million and $42.3 million for the three months ended March 31, 2019 and 2018, respectively. Depreciation expense for discontinued operations was nil |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Footnote 7 — Goodwill and Other Intangible Assets, Net Goodwill activity for the three months ended March 31, 2019 is as follows (in millions): March 31, 2019 Segment Net Book Value at December 31, 2018 Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value Food and Appliances $ 211.2 $ 0.1 $ 2,097.5 $ (1,886.2 ) $ 211.3 Home and Outdoor Living 163.8 — 2,148.8 (1,985.0 ) 163.8 Learning and Development 2,595.2 (12.0 ) 3,429.2 (846.0 ) 2,583.2 $ 2,970.2 $ (11.9 ) $ 7,675.5 $ (4,717.2 ) $ 2,958.3 Other intangible assets, net are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Amortization Periods (in years) Trade names — indefinite life $ 4,089.4 $ — $ 4,089.4 $ 4,093.0 $ — $ 4,093.0 N/A Trade names — other 170.3 (39.9 ) 130.4 170.5 (36.5 ) 134.0 2-15 Capitalized software 529.0 (363.7 ) 165.3 520.0 (348.1 ) 171.9 3 12 Patents and intellectual property 134.1 (83.4 ) 50.7 136.4 (79.2 ) 57.2 3 14 Customer relationships and distributor channels 1,269.8 (196.9 ) 1,072.9 1,269.7 (180.9 ) 1,088.8 3 30 Other 109.0 (81.3 ) 27.7 109.0 (74.3 ) 34.7 3 5 $ 6,301.6 $ (765.2 ) $ 5,536.4 $ 6,298.6 $ (719.0 ) $ 5,579.6 Amortization expense for intangible assets for continuing operations was $47.1 million and $49.8 million for the three months ended March 31, 2019 and 2018, respectively. Amortization expense for intangible assets for discontinued operations was nil |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Footnote 8 — Other Accrued Liabilities Other accrued liabilities are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Customer accruals $ 437.7 $ 535.8 Accruals for manufacturing, marketing and freight expenses 37.0 34.3 Accrued self-insurance liabilities, contingencies and warranty 132.4 123.3 Operating lease liability 137.8 — Derivative liabilities 13.0 4.9 Accrued income taxes 92.9 165.2 Accrued interest expense 128.9 72.9 Other 194.7 244.2 $ 1,174.4 $ 1,180.6 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Footnote 9 — Debt Debt comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 2.60% senior notes due 2019 $ — $ 267.3 4.70% senior notes due 2020 304.7 304.6 3.15% senior notes due 2021 93.5 97.5 3.75% senior notes due 2021 344.6 353.2 4.00% senior notes due 2022 249.1 249.0 3.85% senior notes due 2023 1,741.3 1,740.8 5.00% senior notes due 2023 309.5 310.0 4.00% senior notes due 2024 496.6 496.4 3.90% senior notes due 2025 90.4 90.3 4.20% senior notes due 2026 1,984.9 1,984.5 5.375% senior notes due 2036 415.9 415.8 5.50% senior notes due 2046 657.2 657.2 Commercial paper 258.9 — Receivables facility 269.0 — Other debt 52.6 48.4 Total debt 7,268.2 7,015.0 Short-term debt and current portion of long-term debt (573.6 ) (318.7 ) Long-term debt $ 6,694.6 $ 6,696.3 Senior Notes During the three months ended March 31, 2019, the Company repaid approximately $268 million of debt upon maturity of its 2.60% senior notes due March 2019. The Company has designated the €300 million principal balance of the 3.75% senior notes due October 2021 as a net investment hedge of the foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets. At March 31, 2019, $3.9 million of deferred gains have been recorded in AOCL. See Footnote 10 for disclosures regarding the Company’s derivative financial instruments. Revolving Credit Facility and Commercial Paper The Company maintains a $1.25 billion revolving credit facility that matures in December 2023 (the “Facility”). Under the Facility, the Company may borrow funds on a variety of interest rate terms. Since the Facility provides the committed backup liquidity required to issue commercial paper, the Company may issue commercial paper up to a maximum of $800 million provided there is a sufficient amount available for borrowing under the Facility. The Facility also provides for the issuance of up to $100 million of letters of credit, so long as there is a sufficient amount available for borrowing under the Facility. Receivables Facility The Company maintains a $950 million receivables purchase agreement that matures in October 2019 (the “Securitization Facility”) and bears interest at a margin over a variable interest rate. At March 31, 2019, the borrowing rate margin and the unused line fee on the Securitization Facility were 0.80% and 0.40% per annum, respectively. Other The fair values of the Company’s senior notes are based on quoted market prices and are as follows ( in millions ): March 31, 2019 December 31, 2018 Fair Value Book Value Fair Value Book Value Senior notes $ 6,518.2 $ 6,687.7 $ 6,911.2 $ 6,966.6 The carrying amounts of all other significant debt approximates fair value. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Footnote 10—Derivatives From time to time, the Company enters into derivative transactions to hedge its exposures to interest rate, foreign currency rate and commodity price fluctuations. The Company does not enter into derivative transactions for trading purposes. Interest Rate Contracts The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company may use fixed and floating rate swaps to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. Floating rate swaps would be used, depending on market conditions, to convert the fixed rates of long-term debt into short-term variable rates. Fixed rate swaps would be used to reduce the Company’s risk of the possibility of increased interest costs. Interest rate swap contracts are therefore used by the Company to separate interest rate risk management from the debt funding decision. The cash paid and received from the settlement of interest rate swaps is included in interest expense. Fair Value Hedges At March 31, 2019, the Company had approximately $527 million notional amount of interest rate swaps that exchange a fixed rate of interest for variable rate (LIBOR) of interest plus a weighted average spread. These floating rate swaps are designated as fair value hedges against $277 million of principal on the 4.7% senior notes due 2020 and $250 million of principal on the 4.0% senior notes due 2024 for the remaining life of these notes. The effective portion of the fair value gains or losses on these swaps is offset by fair value adjustments in the underlying debt. Cross-Currency Contracts The Company uses cross-currency swaps to hedge foreign currency risk on certain intercompany financing arrangements with foreign subsidiaries. During 2018, all the Company’s cross-currency interest rate swaps matured. As such, there were no cross-currency swaps outstanding at March 31, 2019 and December 31, 2018. The cross-currency interest rate swaps were intended to eliminate uncertainty in cash flows in U.S. Dollars and British Pounds in connection with the intercompany financing arrangements. Foreign Currency Contracts The Company uses forward foreign currency contracts to mitigate the foreign currency exchange rate exposure on the cash flows related to forecasted inventory purchases and sales and have maturity dates through December 2019. The derivatives used to hedge these forecasted transactions that meet the criteria for hedge accounting are accounted for as cash flow hedges. The effective portion of the gains or losses on these derivatives is deferred as a component of AOCL and is recognized in earnings at the same time that the hedged item affects earnings and is included in the same caption in the statements of operations as the underlying hedged item. At March 31, 2019, the Company had approximately $383 million notional amount outstanding of forward foreign currency contracts that are designated as cash flow hedges of forecasted inventory purchases and sales. The Company also uses foreign currency contracts, primarily forward foreign currency contracts, to mitigate the foreign currency exposure of certain other foreign currency transactions. At March 31, 2019, the Company had approximately $ 925 million notional amount outstanding of these foreign currency contracts that are not designated as effective hedges for accounting purposes and have maturity dates through October 2020. Fair market value gains or losses are included in the results of operations and are classified in other (income) expense, net. Commodity Contracts To a lesser extent, the Company also enters into commodity-based derivatives in order to mitigate the risk that the rising price of these commodities could have on the cost of certain of the Company’s raw materials. These commodity-based derivatives provide the Company with cost certainty. At March 31, 2019, the Company had approximately $ 10 3 The following table presents the fair value of derivative financial instruments as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Fair Value of Derivatives Fair Value of Derivatives Asset (a) Liability (a) Asset (a) Liability (a) Derivatives designated as effective hedges: Cash flow hedges: Foreign currency contracts $ 7.9 $ 3.6 $ 13.3 $ 0.7 Fair value hedges: Interest rate swaps — 6.0 — 11.5 Derivatives not designated as effective hedges: Foreign currency contracts 8.6 8.2 12.9 4.2 Commodity contracts — 1.3 — 0.9 Total $ 16.5 $ 19.1 $ 26.2 $ 17.3 (a) Consolidated balance sheet location: Asset: Prepaid expenses and other, and other non-current assets Liability: Other accrued liabilities, and current and non-current liabilities The following tables presents gain and loss activity (on a pretax basis) for the three months ended March 31, 2019 and 2018 related to derivative financial instruments designated or previously designated, as effective hedges (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Gain/(Loss) Gain/(Loss) Location of gain/ in income Recognized in OCI (a) (effective portion) Reclassified from AOCL to Income Recognized in OCI (a) (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (1.5 ) $ — $ (1.9 ) Foreign currency contracts Net sales and cost of products sold (6.1 ) 5.7 (5.3 ) (6.4 ) Commodity contracts Cost of products sold (0.6 ) — — — Cross-currency swaps Other expense (income), net — — (3.4 ) (4.8 ) Total $ (6.7 ) $ 4.2 $ (8.7 ) $ (13.1 ) (a) Represents effective portion recognized in Other Comprehensive Income (Loss) (“OCI”). At March 31, 2019, deferred net gains of approximately $8.2 million within AOCL are expected to be reclassified to earnings over the next twelve months. During the three months ended March 31, 2019 and 2018, the Company recognized expense of $5.6 million and $9.5 million, respectively, in other ( , net, related to derivatives that are not designated as hedging instruments, which was mostly offset by foreign currency movement in the underlying exposure. |
Employee Benefit and Retirement
Employee Benefit and Retirement Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit and Retirement Plans | Footnote 11 — Employee Benefit and Retirement Plans The components of pension and postretirement benefit expense for continuing operations for the periods indicated, are as follows (in millions): Pension Benefits Three Months Ended March 31, U.S. International 2019 2018 2019 2018 Service cost $ 0.1 $ 0.2 $ 1.5 $ 1.4 Interest cost 12.3 11.6 3.2 3.3 Expected return on plan assets (14.8 ) (16.9 ) (3.3 ) (4.0 ) Amortization, net 3.8 5.4 0.6 0.6 Net periodic pension cost $ 1.4 $ 0.3 $ 2.0 $ 1.3 Postretirement Benefits Three Months Ended March 31, 2019 2018 Service cost $ — $ 0.1 Interest cost 0.5 0.5 Amortization, net (2.4 ) (2.6 ) Net periodic postretirement cost $ (1.9 ) $ (2.0 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Footnote 12 — Income Taxes The Company’s income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate applicable for the period adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. The Company’s reported tax rate for the three months ended March 31, 2019 and 2018 was a benefit of 18.9% and 61.2% |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Footnote 13 — Leases The Company’s lease portfolio mainly consists of retail stores, warehouses, distribution centers, office space, and, to a lesser extent, equipment. The Company’s accounting for finance leases (previously called capital leases) remains substantially unchanged. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property, plant and equipment, net. All other leases are categorized as operating leases. Operating lease assets represent the Company’s right to use an underlying asset for the lease term whereas lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. These rates are assessed on a quarterly basis. The operating lease assets also include any lease payments made less lease incentives. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. For finance leases, the Company recognizes a front-loaded pattern of total lease expense recognition due to the accretion of the lease liability and the straight-line amortization of the leased asset. Many leases include one or more options to renew, with renewal terms that can extend the lease term for three years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased assets. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company also has lease agreements with lease and non-lease components, which are accounted as a single lease component. Additionally, for certain non-real estate leases, the portfolio approach is used to effectively account for the operating lease assets and liabilities. Supplemental condensed consolidated balance sheet information related to leases for the period indicated, is as follows (in millions): Classification March 31, 2019 Assets Operating leases Operating lease assets, net $ 619.3 Finance leases Property, plant and equipment, net (1) 18.6 Total lease assets $ 637.9 Liabilities Current Operating leases Other accrued liabilities $ 137.8 Finance leases Short-term debt and current portion of long-term debt 3.4 Noncurrent Operating leases Long-term operating lease liabilities 547.6 Finance leases Long-term debt 11.9 Total lease liabilities $ 700.7 (1) Net of accumulated depreciation of $ 4.6 Components of lease expense as of the date indicated, are as follows (in millions): Three Months March 31, 2019 Operating lease cost: Operating lease cost (1) $ 48.2 Variable lease costs (2) 6.0 Finance lease cost: Amortization of leased assets 1.1 Interest on lease liabilities 0.2 (1) Includes short-term leases, which are immaterial. (2) Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. Remaining lease term and discount rates as of as of the date indicated, are as follows: March 31, 2019 Weighted-average remaining lease term (years): Operating leases 7 Finance leases 4 Weighted-average discount rate: Operating leases 4.3 % Finance leases 3.9 % Supplemental cash flow information related to leases for the period indicated is as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 39.5 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 0.7 Right of use assets obtained in exchange for lease liabilities: Operating leases 26.5 Finance leases 6.7 Maturities of lease liabilities for continuing operations under the new lease standard (see Footnote 1) as of March 31, 2019, are as follows: Operating Finance Leases 2019 (Excludes three months ended March 31, 2019) $ 124.7 $ 3.3 2020 136.2 4.3 2021 113.5 4.2 2022 97.8 3.3 2023 73.8 1.5 Thereafter 264.6 0.4 Total lease payments 810.6 17.0 Less: imputed interest (125.2 ) (1.7 ) Present value of lease liabilities $ 685.4 $ 15.3 See Footnote 2 for information on lease liabilities included in discontinued operations and held for sale. Future minimum rental payments for operating leases, prior to the adoption of the new lease standard, with initial or remaining terms in excess of one year at December 31, 2018 for the consolidated Company are as follows: Operating 2019 $ 180.0 2020 144.0 2021 117.8 2022 97.7 2023 74.0 Thereafter 263.9 Total lease payments $ 877.4 Rent expense under operating leases for continuing operations was $52.7 million during the three months ended March 31, 2018. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Footnote 14 — Earnings Per Share The computations of the weighted average shares outstanding for the periods indicated are as follows (in millions): Three Months Ended March 31, 2019 2018 Weighted-average shares outstanding 422.8 485.4 Share-based payment awards classified as participating securities (1) 0.2 0.6 Basic weighted-average shares outstanding 423.0 486.0 Dilutive securities (2) — — Diluted weighted-average shares outstanding 423.0 486.0 (1) For the three months ended March 31, 2019 and 2018, dividends and equivalents for share-based awards that are expected to be forfeited do not have a material effect on net income for basic and diluted earnings per share. (2) The three months ended March 31, 2019 and 2018 excludes 0.4 At March 31, 2019, there were 2.3 million potentially dilutive restricted stock awards with performance-based vesting targets that were not met and as such, have been excluded from the computation of diluted earnings per share. At March 31, 2019, there were approximately 2.5 million shares of the Company’s common stock that had not been issued to the former holders of Jarden shares who are exercising their right to judicial appraisal under Delaware law (see Footnote 18). |
Stockholders' Equity and Share-
Stockholders' Equity and Share-Based Awards | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity and Share-Based Awards | Footnote 15 — Stockholders’ Equity and Share-Based Awards During the three months ended March 31, 2019, the Company awarded 1.3 million performance-based restricted stock units (RSUs), which had an aggregate grant date fair value of $23.0 million and entitle the recipients to shares of the Company’s common stock primarily at the end of a three-year vesting period. The actual number of shares that will ultimately vest is dependent on the level of achievement of the specified performance conditions. During the three months ended March 31, 2019, the Company also awarded 1.2 million time-based RSUs with an aggregate grant date fair value of $21.7 million. These time-based RSU’s entitle recipients to shares of the Company’s common stock and primarily vest in equal installments over a three-year period. On June 11, 2018, the Company announced that its Board of Directors authorized a $2.5 billion increase in the then available amount under its existing Stock Repurchase Program (“SRP”). Under the Company’s Stock Repurchase Program (“SRP”), the Company is authorized to repurchase up to approximately $3.6 billion of its outstanding shares through the end of 2019. The repurchase of additional shares in the future will depend upon many factors, including the Company’s financial condition, liquidity and legal requirements. During 2019, the Company has not repurchased any shares of its common stock under the SRP. At March 31, 2019, approximately $2.1 billion remains available to repurchase shares of its common stock under the SRP. For the three months ended March 31, 2019 and 2018 dividends per share were $0.23. Other On March 14, 2019, the Company announced that Michael B. Polk, the Company’s President and Chief Executive Officer and member of the Company’s Board of Directors (the “Board”), will retire from the Company at the end of the second quarter of 2019. In connection with Mr. Polk’s retirement from the Company, on June 28, 2019 (the “Retirement Date”), the Company and Mr. Polk entered into a Retirement Agreement and General Release (the “Retirement Agreement”), pursuant to which, Mr. Polk agreed to a customary release and restrictive covenants. Pursuant to certain terms and conditions Mr. Polk’s unexercised 2011 stock options will remain exercisable until expiration in July 2021 consistent with the terms of the underlying option agreement. Additionally, Mr. Polk’s unvested performance-based RSUs awarded in February 2018 will continue to vest in February 2021 (subject to the satisfaction of applicable performance conditions) and a pro-rata portion of the RSUs awarded to Mr. Polk in February 2019, reflecting four months of service and totaling 45,724 RSUs, will continue to vest in February 2022 (subject to the satisfaction of applicable performance conditions). Furthermore, Mr. Polk forfeited his unvested performance-based RSUs awarded in February 2017. The Company accounted for the treatment of his 2018 and 2019 awards as modification of his initial awards based on the terms and conditions of such awards. As such, the cumulative compensation expense of his 2017, 2018 and 2019 awards were reversed during the first quarter of 2019 while the fair value of the modified awards will be recognized as compensation expense over the contractual service period. During the first quarter of 2019, the Company recorded a net benefit of approximately $9.3 million based on the aforementioned terms and conditions of the Retirement Agreement. As of March 31, 2019, the unrecognized compensation of the modified awards was approximately $4.3 million, which will be recognized during the second quarter of 2019 upon the completion of Mr. Polk’s remaining service period. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Footnote 16 — Fair Value Disclosures Recurring Fair Value Measurements The following table presents the Company’s non-pension financial assets and liabilities which are measured at fair value on a recurring basis (in millions): March 31, 2019 December 31, 2018 Fair Value Asset (Liability) Fair Value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 16.5 $ — $ 16.5 $ — $ 26.2 $ — $ 26.2 Liabilities — (19.1 ) — (19.1 ) — (17.3 ) — (17.3 ) Investment securities, including mutual funds 12.9 6.3 — 19.2 — 1.9 — 1.9 For publicly-traded investment securities, including mutual funds, fair value is determined on the basis of quoted market prices and, accordingly, such investments are classified as Level 1. Other investment securities are primarily comprised of money market accounts that are classified as Level 2. The Company determines the fair value of its derivative instruments using standard pricing models and market-based assumptions for all significant inputs, such as yield curves and quoted spot and forward exchange rates. Accordingly, the Company’s derivative instruments are classified as Level 2. During the first quarter of 2019 , the Company acquired an equity investment for $18.3 million, which is traded on an active exchange and therefore has a readily determinable fair value. At March 31 , 2019 , the fair value of the equity investment was $12.9 million. For equity investments with readily determinable fair values held at March 31 , 2019 , we recorded $5.4 million of unrealized losses within other expense (income), net in the Condensed Consolidated Statement of Operations for the three-month period ended March 31 , 2019 . Nonrecurring Fair Value Measurements The Company’s nonfinancial assets that are measured at fair value on a nonrecurring basis include property, plant and equipment, operating lease assets, goodwill, intangible assets and certain other assets. In the absence of a definitive sales price for these and similar types of assets, the Company generally uses projected cash flows, discounted as necessary, or market multiples to estimate the fair values of the impaired assets using key inputs such as management’s projections of cash flows on a held-and-used basis (if applicable), management’s projections of cash flows upon disposition and discount rates. Key inputs into the market multiple approach include identifying companies comparable to the Company’s business and estimated control premiums. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. These assets and certain liabilities are measured at fair value on a nonrecurring basis as part of the Company’s impairment assessments and as circumstances require. Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, derivative instruments, notes payable and short and long-term debt. The carrying values for current financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate fair value due to the short maturity of such instruments. The fair values of the Company’s debt and derivative instruments are disclosed in Footnote 9 and Footnote 10, respectively. The Company reviews property, plant and equipment for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable through future undiscounted cash flows. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. The carrying value and estimated fair value measurement of assets held for sale are classified as Level 3, as the fair values utilize significant unobservable inputs (see Footnote 2). |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Footnote 17 — Segment Information The Company is reporting its financial results in four segments as Food and Appliances, Home and Outdoor Living, Learning and Development and Other. The Company’s three primary operating segments are as follows: Segment Key Brands Description of Primary Products Food and Appliances Ball®, Calphalon®, Crock-Pot®, FoodSaver®, Mr. Coffee®, Oster®, Rubbermaid®, Sistema® and Sunbeam® Household products, including kitchen appliances, gourmet cookware, bakeware and cutlery, food storage and home storage products and fresh preserving products Home and Outdoor Living Chesapeake Bay Candle®, Coleman®, Contigo®, ExOfficio®, First Alert®, Marmot®, WoodWick® and Yankee Candle® Products for outdoor and outdoor-related activities, home fragrance products and connected home and security products Learning and Development Aprica®, Baby Jogger®, Dymo®, Elmer’s®, Expo®, Graco®, Mr. Sketch®, NUK®, Paper Mate®, Parker®, Prismacolor®, Sharpie®, Tigex® Waterman® and X-Acto® Writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products; labeling solutions; baby gear and infant care products Segment information as of and for the periods indicated is as follows (in millions): Three Months Ended March 31, 2019 Food and Appliances Home and Outdoor Living Learning and Development Other Corporate Restructuring Costs Consolidated Net sales (1) $ 504.1 $ 626.6 $ 581.4 $ — $ — $ — $ 1,712.1 Operating income (loss) (2) 9.3 (1.5 ) 88.5 — (70.4 ) (10.9 ) 15.0 Other segment data: Total segment assets 4,127.9 4,374.2 4,907.0 — 1,240.9 — 14,650.0 Three Months Ended March 31, 2018 Food and Appliances Home and Outdoor Living Learning and Development Other Corporate Restructuring Costs Consolidated Net sales (1) $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ — $ — $ 1,811.5 Operating income (loss) (2) 13.4 7.8 66.2 0.9 (109.3 ) (5.4 ) (26.4 ) (1) All intercompany transactions have been eliminated. (2) Operating income (loss) by segment is net sales less cost of products sold, SG&A and impairment of goodwill, intangibles and other assets for continuing operations. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income. The following table disaggregates revenue by major product grouping and geography for the periods indicated (in millions): Three Months Ended March 31, 2019 Food and Appliances Home and Outdoor Living Learning and Development Other Total Appliances and Cookware $ 329.5 $ — $ — $ — $ 329.5 Food 174.6 — — — 174.6 Connected Home and Security — 84.1 — — 84.1 Home Fragrance — 196.7 — — 196.7 Outdoor and Recreation — 345.8 — — 345.8 Baby and Parenting — — 236.2 — 236.2 Writing — — 345.2 — 345.2 Other — — — — — Total $ 504.1 $ 626.6 $ 581.4 $ — $ 1,712.1 North America $ 353.5 $ 439.7 $ 390.6 $ — $ 1,183.8 International 150.6 186.9 190.8 — 528.3 Total $ 504.1 $ 626.6 $ 581.4 $ — $ 1,712.1 Three Months Ended March 31, 2018 Food and Appliances Home and Outdoor Living Learning and Development Other Total Appliances and Cookware $ 368.3 $ — $ — $ — $ 368.3 Food 165.9 — — — 165.9 Connected Home and Security — 90.0 — — 90.0 Home Fragrance — 212.4 — — 212.4 Outdoor and Recreation — 367.3 — — 367.3 Baby and Parenting — — 272.5 — 272.5 Writing — — 334.5 — 334.5 Other — — — 0.6 0.6 Total $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ 1,811.5 North America $ 356.6 $ 469.8 $ 394.4 $ 0.6 $ 1,221.4 International 177.6 199.9 212.6 — 590.1 Total $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ 1,811.5 |
Litigation and Contingencies
Litigation and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Footnote 18 — Litigation and Contingencies The Company is subject to various claims and lawsuits in the ordinary course of business, including from time to time, contractual disputes, employment and environmental matters, product and general liability claims, claims that the Company has infringed on the intellectual property rights of others, and consumer and employment class actions. Some of the legal proceedings include claims for punitive as well as compensatory damages. In the ordinary course of business, the Company is also subject to regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings. In connection with such formal and informal inquiries, the Company receives numerous requests, subpoenas, and orders for documents, testimony, and information in connection with various aspects of its activities. Securities Litigation Certain of the Company’s current and former officers and directors have been named in shareholder derivative lawsuits. On October 29, 2018, a shareholder filed a putative derivative complaint, Streicher v. Polk, et al ., in the United States District Court for the District of Delaware (the “ Streicher Derivative Action”), purportedly on behalf of the Company against certain of our current and former officers and directors. On October 30, 2018, another shareholder filed a putative derivative complaint, Martindale v. Polk, et al ., in the United States District Court for the District of Delaware (the “ Martindale Derivative Action”), asserting substantially similar claims purportedly on behalf of the Company against the same defendants. The complaints allege, among other things, violations of the federal securities laws, breaches of fiduciary duties, unjust enrichment, and waste of corporate assets. The factual allegations underlying these claims are similar to the factual allegations made in the In re Newell Brands, Inc. Securities Litigation pending in the United States District Court for the District of New Jersey, further described below. The complaints seek unspecified damages and restitution for the Company from the individual defendants, the payment of costs and attorneys’ fees, and that the Company be directed to reform certain governance and internal procedures. The Streicher Derivative Action and the Martindale Derivative Action have been consolidated and the case is now known as In re Newell Brands Inc. Derivative Litigation (the Newell Brands Derivative Action”) , which is pending in the United States District Court for the District of Delaware. On January 31, 2019, the United States District Court for the District of Delaware stayed the Newell Brands Derivative Action pending the resolution of the motions to dismiss filed in In re Newell Brands Inc. Securities Litigation and Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al. (described below). The Company and certain of its current and former officers and directors have been named as defendants in a putative securities class action lawsuit filed in the Superior Court of New Jersey, Hudson County, on behalf of all persons who acquired Company common stock pursuant or traceable to the S-4 registration statement and prospectus issued in connection with the April 2016 acquisition of Jarden (the “Registration Statement”). The action was filed on September 6, 2018, and is captioned Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al. , Civil Action No. HUD-L-003492-18. The operative complaint alleges certain violations of the securities laws, including, among other things, that the defendants made certain materially false and misleading statements and omissions in the Registration Statement regarding the Company’s financial results, trends, and metrics. The plaintiff seeks compensatory damages and attorneys’ fees and costs, among other relief, but has not specified the amount of damages being sought. The Company intends to defend the litigation vigorously. The Company and certain of its officers have been named as defendants in two putative securities class action lawsuits, each filed in the United States District Court for the District of New Jersey, on behalf of all persons who purchased or otherwise acquired our common stock between February 6, 2017 and January 24, 2018. The first lawsuit was filed on June 21, 2018 and is captioned Bucks County Employees Retirement Fund, Individually and on behalf of All Others Similarly Situated v. Newell Brands Inc., Michael B. Polk, Ralph J. Nicoletti, and James L. Cunningham, III , Civil Action No. 2:18-cv-10878 (United States District Court for the District of New Jersey). The second lawsuit was filed on June 27, 2018 and is captioned Matthew Barnett, Individually and on Behalf of All Others Similarly Situated v. Newell Brands Inc., Michael B. Polk, Ralph J. Nicoletti, and James L. Cunningham, III , Civil Action No. 2:18-cv-11132 (United States District Court for the District of New Jersey). On September 27, 2018, the court consolidated these two cases under Civil Action No. 18-cv-10878 (JMV)(JBC) bearing the caption In re Newell Brands, Inc. Securities Litigation Jarden Acquisition Under the Delaware General Corporation Law (“DGCL”), any Jarden stockholder who did not vote in favor of adoption of the Merger Agreement, and otherwise complies with the provisions of Section 262 of the DGCL, is entitled to seek an appraisal of his or her shares of Jarden common stock by the Court of Chancery of the State of Delaware as provided under Section 262 of the DGCL. As of December 31, 2018, dissenting stockholders collectively holding approximately 2.9 Dunham Monthly Distribution Fund v. Jarden Corporation Merion Capital LP v. Jarden Corporation Fir Tree Value Master Fund, LP v. Jarden Corporation Veritian Partners Master Fund LTP v. Jarden Corporation 10.6 million former Jarden shares were represented in these actions initially. On July 5, 2017 and July 6, 2017, Jarden and eleven of the dissenting stockholders, specifically including Merion Capital ERISA LP, Merion Capital LP, Merion Capital II LP, Dunham Monthly Distribution Fund, WCM Alternatives: Event-Driven Fund, Westchester Merger Arbitrage Strategy sleeve of the JNL Multi-Manager Alternative Fund, JNL/Westchester Capital Event Driven Fund, WCM Master Trust, The Merger Fund, The Merger Fund VL and SCA JP Morgan Westchester (collectively, the “Settling Petitioners”), entered into settlement agreements with respect to approximately 7.7 million former Jarden shares (collectively, the “Settlement Agreements”). Pursuant to the Settlement Agreements in exchange for withdrawing their respective demands for appraisal of their shares of Jarden common stock and a full and final release of all claims, among other things, the Settling Petitioners received the original merger consideration provided for under the Merger Agreement, specifically (1) 0.862 of a share of Newell common stock, and (2) $21.00 in cash, per share of Jarden common stock (collectively, the “Merger Consideration”), excluding any and all other benefits, including, without limitation, the right to accrued interest, dividends, and/or distributions. Accordingly, pursuant to the terms of the Settlement Agreements, Newell issued 6.6 million shares of Newell common stock to the Settling Petitioners (representing the stock component of the Merger Consideration), and authorized payment to the Settling Petitioners of approximately $162 million (representing the cash component of the Merger Consideration). The Court of Chancery of the State of Delaware has dismissed with prejudice the appraisal claims for the Settling Petitioners. Following the settlements, claims from the holders of approximately 2.9 million former Jarden shares remain outstanding in the proceedings. The value of the merger consideration attributable to such shares based on the Company’s stock price on the closing date of the Jarden acquisition would have been approximately $171 million in the aggregate. The fair value of the shares of Jarden common stock held by these dissenting stockholders, as determined by the court, would be payable in cash and could be lower or higher than the Merger Consideration to which such Jarden stockholders would have been entitled under the Merger Agreement. The evidentiary trial was held from June 26 through June 29, 2018. Post-trial briefing was completed in the fourth quarter of 2018 and oral argument was held on November 29, 2018. Environmental Matters The Company is involved in various matters concerning federal and state environmental laws and regulations, including matters in which the Company has been identified by the U.S. Environmental Protection Agency (“U.S. EPA”) and certain state environmental agencies as a potentially responsible party (“PRP”) at contaminated sites under CERCLA and equivalent state laws. In assessing its environmental response costs, the Company has considered several factors, including the extent of the Company’s volumetric contribution at each site relative to that of other PRPs; the kind of waste; the terms of existing cost sharing and other applicable agreements; the financial ability of other PRPs to share in the payment of requisite costs; the Company’s prior experience with similar sites; environmental studies and cost estimates available to the Company; the effects of inflation on cost estimates; and the extent to which the Company’s, and other parties’, status as PRPs is disputed. The Company’s estimate of environmental remediation costs associated with these matters as of March 31, 2019, was $47.3 Lower Passaic River Matter U.S. EPA has issued General Notice Letters (“GNLs”) to over 100 entities, including the Company and Berol Corporation, a subsidiary of the Company (“Berol”), alleging that they are PRPs at the Diamond Alkali Superfund Site, which includes a 17-mile stretch of the Lower Passaic River and its tributaries. Seventy-two of the GNL recipients, including the Company on behalf of itself and its subsidiary Berol Corporation (the “Company Parties”), have taken over the performance of the remedial investigation (“RI”) and feasibility study (“FS”) for the Lower Passaic River. On April 11, 2014, while work on the RI/FS remained underway, U.S. EPA issued a Source Control Early Action Focused Feasibility Study (“FFS”), which proposed four alternatives for remediation of the lower 8.3 miles of the Lower Passaic River. U.S. EPA’s cost estimates for its cleanup alternatives ranged from approximately $315 million to approximately $3.2 billion in capital costs plus from $0.5 million to $1.8 million in annual maintenance costs for 30 years U.S. EPA issued its final Record of Decision for the lower 8.3 miles of the Lower Passaic River (the “ROD”) in March 2016, which, in the language of the document, finalizes as the selected remedy the preferred alternative set forth in the FFS, which U.S. EPA estimates will cost $1.4 billion. Subsequent to the release of the ROD in March 2016, U.S. EPA issued GNLs for the lower 8.3 miles of the Lower Passaic River (the “2016 GNL”) to numerous entities, apparently including all previous recipients of the initial GNL as well as several additional entities. As with the initial GNL, the Company Parties were among the recipients of the 2016 GNL. The 2016 GNL states that U.S. EPA would like to determine whether one entity, Occidental Chemical Corporation (“OCC”), will voluntarily perform the remedial design for the selected remedy for the lower 8.3 miles, and that following execution of an agreement for the remedial design, U.S. EPA plans to begin negotiation of a remedial action consent decree “under which OCC and the other major PRPs will implement and/or pay for U.S. EPA’s selected remedy for the lower 8.3 miles of the Lower Passaic River and reimburse U.S. EPA’s costs incurred for the Lower Passaic River.” The letter “encourage[s] the major PRPs to meet and discuss a workable approach to sharing responsibility for implementation and funding of the remedy” without indicating who may be the “major PRPs.” Finally, U.S. EPA states that it “believes that some of the parties that have been identified as PRPs under CERCLA, and some parties not yet named as PRPs, may be eligible for a cash out settlement with U.S. EPA for the lower 8.3 miles of the Lower Passaic River.” In September 2016, OCC and EPA entered into an Administrative Order on Consent for performance of the remedial design. On March 30, 2017, U.S. EPA sent a letter offering a cash settlement in the amount of $0.3 million to twenty PRPs, not including the Company Parties, for CERCLA Liability (with reservations, such as for Natural Resource Damages) in the lower 8.3 miles of the Lower Passaic River. U.S. EPA further indicated in related correspondence that a cash out settlement might be appropriate for additional parties that are “not associated with the release of dioxins, furans, or PCBs to the Lower Passaic River.” Then, by letter dated September 18, 2017, U.S. EPA announced an allocation process involving all GNL recipients except those participating in the first-round cash-out settlement, and five public entities. The letter affirms that U.S. EPA anticipates eventually offering cash-out settlements to a number of parties, and that it expects “that the private PRPs responsible for release of dioxin, furans, and/or PCBs will perform the OU2 lower 8.3 mile remedial action.” At this time, it is unclear how the cost of any cleanup would be allocated among any of the parties, including the Company Parties or any other entities. The site is also subject to a Natural Resource Damage Assessment. OCC has asserted that it is entitled to indemnification by Maxus Energy Corporation (“Maxus”) for its liability in connection with the Diamond Alkali Superfund Site. OCC has also asserted that Maxus’s parent company, YPF, S.A., and certain other affiliates (the “YPF Entities”) similarly must indemnify OCC, including on an “alter ego” theory. On June 17, 2016, Maxus and certain of its affiliates commenced a chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the District of Delaware. In connection with that proceeding, the YPF Entities are attempting to resolve any liability they may have to Maxus and the other Maxus entities undergoing the chapter 11 bankruptcy. An amended Chapter 11 plan of liquidation became effective in July 2017. In conjunction with that plan, Maxus and certain other parties, including the Company, entered into a mutual contribution release agreement (“Passaic Release”) pertaining to certain costs, but not costs associated with ultimate remedy. On June 30, 2018, OCC sued 120 parties, including the Company and Berol, in the U.S. District Court in New Jersey (“OCC Lawsuit”). OCC subsequently filed a separate, related complaint against 5 additional defendants. The OCC Lawsuit includes claims for cost recovery, contribution, and declaratory judgement under CERCLA. The current, primary focus of the claims is on certain past and future costs for investigation, design and remediation of the lower 8.3 miles of the Passaic River, other than those subject to the Passaic Release. The complaint notes, however, that OCC may broaden its claims in the future if and when EPA selects remedial actions for other portions of the Site or completes a Natural Resource Damage Assessment. Given the uncertainties pertaining to this matter, including that U.S. EPA is still reviewing the draft RI and FS, that no framework for or agreement on allocation for the investigation and ultimate remediation has been developed, and that there exists the potential for further litigation regarding costs and cost sharing, the extent to which the Company Parties may be held liable or responsible is not yet known. Based on currently known facts and circumstances, the Company does not believe that this matter is reasonably likely to have a material impact on the Company’s results of operations, including, among other factors, because there are numerous other parties who will likely share in any costs of remediation and/or damages. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. Because of the uncertainties associated with environmental investigations and response activities, the possibility that the Company could be identified as a PRP at sites identified in the future that require the incurrence of environmental response costs and the possibility that sites acquired in business combinations may require environmental response costs, actual costs to be incurred by the Company may vary from the Company’s estimates. Frederick County, Virginia In February 2019, Rubbermaid Commercial Products LLC, a subsidiary of the Company (“Rubbermaid Commercial Products”), was sued in Frederick County, Virginia by the Virginia Director of the Department of Environmental Quality and the State Air Pollution Control Board. The complaint alleged that Rubbermaid Commercial Products unlawfully constructed and operated certain equipment at one of its facilities prior to obtaining an air permit and failed to comply with certain reporting obligations under the permit once issued and sought unspecified civil penalties and injunctive relief. Other Matters Although management of the Company cannot predict the ultimate outcome of these proceedings with certainty, it believes that the ultimate resolution of the Company’s proceedings, including any amounts it may be required to pay in excess of amounts reserved, will not have a material effect on the Company’s Consolidated Financial Statements, except as otherwise described above. In the normal course of business and as part of its acquisition and divestiture strategy, the Company may provide certain representations and indemnifications related to legal, environmental, product liability, tax or other types of issues. Based on the nature of these representations and indemnifications, it is not possible to predict the maximum potential payments under all of these agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements did not have a material effect on the Company’s business, financial condition or results of operations. As of March 31, 2019, the Company had approximately $66 million in standby letters of credit primarily related to the Company’s self-insurance programs, including workers’ compensation, product liability and medical expenses. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Footnote 19 — Subsequent Events On May 1, 2019, the Company completed the sales of its Process Solutions and Rexair businesses for approximately $735 million in the aggregate, subject to customary working capital and other post-closing adjustments. The Company used some of the cash proceeds received on disposal to pay down short-term debt including approximately $269 million outstanding at March 31, 2019 under the Company’s Securitization Facility. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Discontinued Operations During 2018, the Company implemented the Accelerated Transformation Plan, which was designed in part, to rationalize the organization and its portfolio of products. Pursuant to the Accelerated Transformation Plan, a number of the Company’s businesses were designated for disposal. These businesses have been classified as discontinued operations as these businesses together represent a strategic shift that has a major effect on the Company’s operations and financial results (see Footnote 2). Prior periods have been reclassified to conform with the current presentation. |
Seasonal Variations | Seasonal Variations Sales of the Company’s products tend to be seasonal, with sales, operating income and operating cash flow in the first quarter generally lower than any other quarter during the year, driven principally by reduced volume and the mix of products sold in the first quarter. The seasonality of the Company’s sales volume combined with the accounting for fixed costs, such as depreciation, amortization, rent, personnel costs and interest expense, impacts the Company’s results on a quarterly basis. In addition, the Company tends to generate the majority of its operating cash flow in the third and fourth quarters of the year due to seasonal variations in operating results, the timing of annual performance-based compensation payments, customer program payments, working capital requirements and credit terms provided to customers. Accordingly, the Company’s results of operations for the three months ended March 31, 2019 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” |
Adoption of New Accounting Guidance | Adoption of New Accounting Guidance The Company’s accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in our 2018 Annual Report on Form 10-K. Such significant accounting policies are applicable for periods prior to the adoption of the following new accounting standards. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) $ million, lease liabilities of approximately $ million and a cumulative-effect adjustment on retained deficit of approximately $ million on its condensed consolidated balance sheet. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” Revisions of Previously Issued Financial Statements During the first quarter of 2019, the Company identified that it did not utilize an accurate estimate of fair value and expected form of sale in its fourth quarter 2018 impairment assessment for one of its five disposal groups classified as held for sale. The Company did not appropriately account for the disposal group as a stock sale. Consequently, certain income tax account balances (primarily related to deferred tax liabilities) were not classified as assets and liabilities held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2018. As a result, the Company determined its book-over-tax outside basis differences and measured the tax effects of such difference, which resulted in an income tax expense of approximately $12.6 million. In addition, the Company did not use an accurate estimate of fair value in its 2018 impairment assessment. Collectively, the estimate of fair value and expected form of sale resulted in adjustments to the estimated fair value and carrying value of the held for sale business utilized in the Company’s 2018 impairment assessment. These changes resulted in an additional impairment charge of approximately $12.0 million to write-down the carrying value of the net assets of the held for sale business to its estimated fair value at December 31, 2018. In addition, as part of the presentation of discontinued operations, the Company periodically has to reclassify the prior period presentation to conform to the current year presentation. These adjustments are reflected in the Reclassification column below. The following table presents the effect to the Company’s previously reported Consolidated Balance Sheet at December 31, 2018 and Consolidated Statement of Operations for the year ended December 31, 2018: As of December 31, 2018 As Previously Revision Reclassification As Prepaid expenses and other $ 278.0 $ (2.4 ) $ — $ 275.6 Current assets held for sale 3,541.3 (6.1 ) — 3,535.2 Total current assets 7,748.8 (8.5 ) — 7,740.3 Deferred income taxes (noncurrent assets) 165.2 14.5 — 179.7 Total assets 17,716.4 6.0 — 17,722.4 Other accrued liabilities 1,182.3 (0.8 ) (0.9 ) 1,180.6 Current liabilities held for sale 650.4 100.4 (16.7 ) 734.1 Total current liabilities 3,330.0 99.6 (17.6 ) 3,412.0 Deferred income taxes (liabilities) 1,041.8 (66.7 ) 17.6 992.7 Other noncurrent liabilities 1,370.5 (2.3 ) — 1,368.2 Total liabilities 12,438.6 30.6 — 12,469.2 Retained deficit (2,486.7 ) (24.6 ) — (2,511.3 ) Stockholders’ equity attributable to parent 5,243.0 (24.6 ) — 5,218.4 Total stockholders’ equity 5,277.8 (24.6 ) — 5,253.2 Total liabilities and stockholders’ equity 17,716.4 6.0 — 17,722.4 For the year ended December 31, 2018 Income Statement Classification As Previously Revision As Income (loss) from discontinued operations, net of tax $ (128.3 ) $ (24.6 ) $ (152.9 ) Net income (loss) (6,917.9 ) (24.6 ) (6,942.5 ) Earnings per share: Basic: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) Diluted: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) The Company concluded the above referenced effects were not material to its previously issued Consolidated Statement of Operations for the year ended December 31, 2018 and Consolidated Balance Sheet as of December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 4, 2019. As such, the Company will revise its Consolidated Statement of Operations, Consolidated Statement of Comprehensive Income (Loss), Consolidated Statement of Cash Flows and Consolidated Statement of Stockholders’ Equity for the year ended December 31, 2018 and Consolidated Balance Sheet at December 31, 2018 in the Company’s 2019 Annual Report on Form 10-K. The adjustments will not result in a change to net cash provided by operating activities in the Company’s Consolidated Statement of Cash Flows for the year ending December 31, 2018. In addition, the Company has revised the Condensed Consolidated Balance Sheet at December 31, 2018 for the above adjustments including the effects to the Company’s retained deficit and total stockholders’ equity within this Quarterly Report on Form 10-Q. |
Other Items | Other Items At March 31, 2019, the Company held a 23.4% investment in FireAngel Safety Technology Group PLC (formerly known as Sprue Aegis PLC) (“FireAngel”), which the Company accounts for under the equity method of accounting. During the three months ended March 31, 2019, the Company recorded an other-than-temporary-impairment of approximately $11.7 million which reduced the carrying value of its investment in FireAngel to $2.9 million. FireAngel has experienced a decline in its share price. In addition, during March of 2019, FireAngel publicly disclosed its intentions to raise capital through a public offering at a price per share below our investment’s basis. The Company concluded these facts were indicative of an other-than-temporary-impairment and recorded the charge within other expense (income), net in the Condensed Consolidated Statement of Operations for the three-months ending March 31, 2019. During the three months ended March 31, 2018, the Company’s related party sales to FireAngel were $7.5 million. On March 31, 2018, the Company terminated its distribution agreement with FireAngel. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Impact of Adoption of Topic 842 on Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet | The following table presents the effect to the Company’s previously reported Consolidated Balance Sheet at December 31, 2018 and Consolidated Statement of Operations for the year ended December 31, 2018: As of December 31, 2018 As Previously Revision Reclassification As Prepaid expenses and other $ 278.0 $ (2.4 ) $ — $ 275.6 Current assets held for sale 3,541.3 (6.1 ) — 3,535.2 Total current assets 7,748.8 (8.5 ) — 7,740.3 Deferred income taxes (noncurrent assets) 165.2 14.5 — 179.7 Total assets 17,716.4 6.0 — 17,722.4 Other accrued liabilities 1,182.3 (0.8 ) (0.9 ) 1,180.6 Current liabilities held for sale 650.4 100.4 (16.7 ) 734.1 Total current liabilities 3,330.0 99.6 (17.6 ) 3,412.0 Deferred income taxes (liabilities) 1,041.8 (66.7 ) 17.6 992.7 Other noncurrent liabilities 1,370.5 (2.3 ) — 1,368.2 Total liabilities 12,438.6 30.6 — 12,469.2 Retained deficit (2,486.7 ) (24.6 ) — (2,511.3 ) Stockholders’ equity attributable to parent 5,243.0 (24.6 ) — 5,218.4 Total stockholders’ equity 5,277.8 (24.6 ) — 5,253.2 Total liabilities and stockholders’ equity 17,716.4 6.0 — 17,722.4 For the year ended December 31, 2018 Income Statement Classification As Previously Revision As Income (loss) from discontinued operations, net of tax $ (128.3 ) $ (24.6 ) $ (152.9 ) Net income (loss) (6,917.9 ) (24.6 ) (6,942.5 ) Earnings per share: Basic: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) Diluted: Income (loss) from continuing operations $ (14.33 ) $ — $ (14.33 ) Income (loss) from discontinued operations (0.27 ) (0.05 ) (0.32 ) Net income (loss) $ (14.60 ) $ (0.05 ) $ (14.65 ) |
Divestitures and Held for Sale
Divestitures and Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Amounts Included in Discontinued Operations | The following table provides a summary of amounts included in discontinued operations for the periods indicated (in millions): Three Months Ended March 31, 2019 2018 Net sales $ 540.9 $ 1,205.9 Cost of products sold 378.8 805.8 Selling, general and administrative expenses 76.7 254.1 Restructuring costs, net — 2.5 Impairment of goodwill, intangibles and other assets 174.7 — Operating income (loss) (89.3 ) 143.5 Non-operating expense (income) (3.2 ) 0.4 Income (loss) before income taxes (86.1 ) 143.1 Income tax expense (benefit) (6.7 ) 35.1 Net income (loss) $ (79.4 ) $ 108.0 |
Schedule of Major Classes of Assets and Liabilities Held for Sale | The following table presents information related to the major classes of assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheets as of the dates indicated (in millions): March 31, 2019 December 31, Accounts receivable, net $ 413.8 $ 411.7 Inventories 378.2 338.7 Prepaid expenses and other 37.4 42.8 Property, plant and equipment, net 510.8 515.9 Operating lease assets 74.3 — Goodwill 877.4 942.4 Other intangible assets, net 1,150.6 1,270.8 Other assets 13.6 12.9 Current assets held for sale $ 3,456.1 $ 3,535.2 Accounts payable $ 240.7 $ 256.7 Accrued compensation 49.3 57.0 Other accrued liabilities 146.5 154.4 Deferred income taxes 219.6 250.0 Operating lease liabilities 78.9 — Other liabilities 12.1 16.0 Current liabilities held for sale $ 747.1 $ 734.1 (1) See Footnote 1. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following tables display the changes in Accumulated Other Comprehensive Loss (“AOCL”) by component net of tax for the three months ended March 31, 2019 (in millions): Cumulative Translation Adjustment Pension and Postretirement Costs Derivative Financial Instruments AOCL Balance at December 31, 2018 $ (492.6 ) $ (398.1 ) $ (22.1 ) $ (912.8 ) Other comprehensive loss income before reclassifications (2.1 ) (14.8 ) (5.1 ) (22.0 ) Amounts reclassified to earnings — 1.6 (3.3 ) (1.7 ) Net current period other comprehensive loss (2.1 ) (13.2 ) (8.4 ) (23.7 ) Balance at March 31, 2019 $ (494.7 ) $ (411.3 ) $ (30.5 ) $ (936.5 ) |
Schedule of Income Tax (Provision) Benefit Allocated to Components of OCI | The income tax (expense) benefit allocated to the components of AOCL for the periods indicated are as follows (in millions): Three Months Ended March, 31, 2019 2018 Foreign currency translation adjustments $ (0.2 ) $ 7.9 Unrecognized pension and postretirement costs 3.8 4.0 Derivative financial instruments 2.3 (0.2 ) Income tax benefit related to AOCL $ 5.9 $ 11.7 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs Incurred by Reportable Business Segment | Restructuring costs incurred by reportable business segments for all restructuring activities in continuing operations for the periods indicated are as follows (in millions): Three Months Ended March 31, 2019 2018 Food and Appliances $ 1.8 $ 0.6 Home and Outdoor Living 2.5 0.8 Learning and Development 3.8 2.1 Corporate 2.8 1.9 $ 10.9 $ 5.4 |
Schedule of Accrued Restructuring Costs Activity | Accrued restructuring costs activity for the three months ended March 31, 2019 are as follows (in millions): Balance at Restructuring Payments Reclassification (1) Foreign Balance 2019 Employee severance, termination benefits and relocation costs $ 20.6 $ 7.0 $ (11.3 ) $ — $ (0.5 ) $ 15.8 Exited contractual commitments and other 46.6 3.9 (7.9 ) (12.9 ) (0.8 ) 28.9 $ 67.2 $ 10.9 $ (19.2 ) $ (12.9 ) $ (1.3 ) $ 44.7 (1) Reclassification due to the adoption of ASU 2016-02 (see Footnote 1) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Net Inventories | Inventories are stated at the lower of cost or market value and are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Raw materials and supplies $ 224.1 $ 215.5 Work-in-process 152.8 130.7 Finished products 1,422.1 1,236.9 $ 1,799.0 $ 1,583.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, is comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Land $ 69.2 $ 69.9 Buildings and improvements 478.5 479.1 Machinery and equipment 1,604.6 1,575.1 2,152.3 2,124.1 Less: Accumulated depreciation (1,221.6 ) (1,198.5 ) $ 930.7 $ 925.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill by Reportable Business Segment | Goodwill activity for the three months ended March 31, 2019 is as follows (in millions): March 31, 2019 Segment Net Book Value at December 31, 2018 Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value Food and Appliances $ 211.2 $ 0.1 $ 2,097.5 $ (1,886.2 ) $ 211.3 Home and Outdoor Living 163.8 — 2,148.8 (1,985.0 ) 163.8 Learning and Development 2,595.2 (12.0 ) 3,429.2 (846.0 ) 2,583.2 $ 2,970.2 $ (11.9 ) $ 7,675.5 $ (4,717.2 ) $ 2,958.3 |
Schedule of Other Intangible Assets and Related Amortization Periods | Other intangible assets, net are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Amortization Periods (in years) Trade names — indefinite life $ 4,089.4 $ — $ 4,089.4 $ 4,093.0 $ — $ 4,093.0 N/A Trade names — other 170.3 (39.9 ) 130.4 170.5 (36.5 ) 134.0 2-15 Capitalized software 529.0 (363.7 ) 165.3 520.0 (348.1 ) 171.9 3 12 Patents and intellectual property 134.1 (83.4 ) 50.7 136.4 (79.2 ) 57.2 3 14 Customer relationships and distributor channels 1,269.8 (196.9 ) 1,072.9 1,269.7 (180.9 ) 1,088.8 3 30 Other 109.0 (81.3 ) 27.7 109.0 (74.3 ) 34.7 3 5 $ 6,301.6 $ (765.2 ) $ 5,536.4 $ 6,298.6 $ (719.0 ) $ 5,579.6 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities are comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Customer accruals $ 437.7 $ 535.8 Accruals for manufacturing, marketing and freight expenses 37.0 34.3 Accrued self-insurance liabilities, contingencies and warranty 132.4 123.3 Operating lease liability 137.8 — Derivative liabilities 13.0 4.9 Accrued income taxes 92.9 165.2 Accrued interest expense 128.9 72.9 Other 194.7 244.2 $ 1,174.4 $ 1,180.6 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt comprised of the following as of the dates indicated (in millions): March 31, 2019 December 31, 2018 2.60% senior notes due 2019 $ — $ 267.3 4.70% senior notes due 2020 304.7 304.6 3.15% senior notes due 2021 93.5 97.5 3.75% senior notes due 2021 344.6 353.2 4.00% senior notes due 2022 249.1 249.0 3.85% senior notes due 2023 1,741.3 1,740.8 5.00% senior notes due 2023 309.5 310.0 4.00% senior notes due 2024 496.6 496.4 3.90% senior notes due 2025 90.4 90.3 4.20% senior notes due 2026 1,984.9 1,984.5 5.375% senior notes due 2036 415.9 415.8 5.50% senior notes due 2046 657.2 657.2 Commercial paper 258.9 — Receivables facility 269.0 — Other debt 52.6 48.4 Total debt 7,268.2 7,015.0 Short-term debt and current portion of long-term debt (573.6 ) (318.7 ) Long-term debt $ 6,694.6 $ 6,696.3 |
Schedule of Fair Value of Senior Notes | The fair values of the Company’s senior notes are based on quoted market prices and are as follows ( in millions ): March 31, 2019 December 31, 2018 Fair Value Book Value Fair Value Book Value Senior notes $ 6,518.2 $ 6,687.7 $ 6,911.2 $ 6,966.6 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of derivative financial instruments as of the dates indicated (in millions): March 31, 2019 December 31, 2018 Fair Value of Derivatives Fair Value of Derivatives Asset (a) Liability (a) Asset (a) Liability (a) Derivatives designated as effective hedges: Cash flow hedges: Foreign currency contracts $ 7.9 $ 3.6 $ 13.3 $ 0.7 Fair value hedges: Interest rate swaps — 6.0 — 11.5 Derivatives not designated as effective hedges: Foreign currency contracts 8.6 8.2 12.9 4.2 Commodity contracts — 1.3 — 0.9 Total $ 16.5 $ 19.1 $ 26.2 $ 17.3 (a) Consolidated balance sheet location: Asset: Prepaid expenses and other, and other non-current assets Liability: Other accrued liabilities, and current and non-current liabilities |
Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges | The following tables presents gain and loss activity (on a pretax basis) for the three months ended March 31, 2019 and 2018 related to derivative financial instruments designated or previously designated, as effective hedges (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Gain/(Loss) Gain/(Loss) Location of gain/ in income Recognized in OCI (a) (effective portion) Reclassified from AOCL to Income Recognized in OCI (a) (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (1.5 ) $ — $ (1.9 ) Foreign currency contracts Net sales and cost of products sold (6.1 ) 5.7 (5.3 ) (6.4 ) Commodity contracts Cost of products sold (0.6 ) — — — Cross-currency swaps Other expense (income), net — — (3.4 ) (4.8 ) Total $ (6.7 ) $ 4.2 $ (8.7 ) $ (13.1 ) (a) Represents effective portion recognized in Other Comprehensive Income (Loss) (“OCI”). |
Employee Benefit and Retireme_2
Employee Benefit and Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule Of Company's Pension Cost And Supplemental Retirement Plans | Postretirement Benefits Three Months Ended March 31, 2019 2018 Service cost $ — $ 0.1 Interest cost 0.5 0.5 Amortization, net (2.4 ) (2.6 ) Net periodic postretirement cost $ (1.9 ) $ (2.0 ) |
Pension Benefits [Member] | |
Schedule Of Company's Pension Cost And Supplemental Retirement Plans | The components of pension and postretirement benefit expense for continuing operations for the periods indicated, are as follows (in millions): Pension Benefits Three Months Ended March 31, U.S. International 2019 2018 2019 2018 Service cost $ 0.1 $ 0.2 $ 1.5 $ 1.4 Interest cost 12.3 11.6 3.2 3.3 Expected return on plan assets (14.8 ) (16.9 ) (3.3 ) (4.0 ) Amortization, net 3.8 5.4 0.6 0.6 Net periodic pension cost $ 1.4 $ 0.3 $ 2.0 $ 1.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Consolidated Balance Sheet Related To Leases | Supplemental condensed consolidated balance sheet information related to leases for the period indicated, is as follows (in millions): Classification March 31, 2019 Assets Operating leases Operating lease assets, net $ 619.3 Finance leases Property, plant and equipment, net (1) 18.6 Total lease assets $ 637.9 Liabilities Current Operating leases Other accrued liabilities $ 137.8 Finance leases Short-term debt and current portion of long-term debt 3.4 Noncurrent Operating leases Long-term operating lease liabilities 547.6 Finance leases Long-term debt 11.9 Total lease liabilities $ 700.7 (1) Net of accumulated depreciation of $ 4.6 |
Schedule of Consolidated Statement Of Operation Related To Leases | Components of lease expense as of the date indicated, are as follows (in millions): Three Months March 31, 2019 Operating lease cost: Operating lease cost (1) $ 48.2 Variable lease costs (2) 6.0 Finance lease cost: Amortization of leased assets 1.1 Interest on lease liabilities 0.2 (1) Includes short-term leases, which are immaterial. (2) Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. |
Schedule Of Remaining Lease Term and Discount Rates | Remaining lease term and discount rates as of as of the date indicated, are as follows: March 31, 2019 Weighted-average remaining lease term (years): Operating leases 7 Finance leases 4 Weighted-average discount rate: Operating leases 4.3 % Finance leases 3.9 % |
Schedule Of Supplemental Cash Flow Related To Leases | Supplemental cash flow information related to leases for the period indicated is as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 39.5 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 0.7 Right of use assets obtained in exchange for lease liabilities: Operating leases 26.5 Finance leases 6.7 |
Schedule of Maturities of Operating and Finance Leases Liabilities | Maturities of lease liabilities for continuing operations under the new lease standard (see Footnote 1) as of March 31, 2019, are as follows: Operating Finance Leases 2019 (Excludes three months ended March 31, 2019) $ 124.7 $ 3.3 2020 136.2 4.3 2021 113.5 4.2 2022 97.8 3.3 2023 73.8 1.5 Thereafter 264.6 0.4 Total lease payments 810.6 17.0 Less: imputed interest (125.2 ) (1.7 ) Present value of lease liabilities $ 685.4 $ 15.3 See Footnote 2 for information on lease liabilities included in discontinued operations and held for sale. |
Schedule Of Future Minimum Rental Payments For Operating Leases | Future minimum rental payments for operating leases, prior to the adoption of the new lease standard, with initial or remaining terms in excess of one year at December 31, 2018 for the consolidated Company are as follows: Operating 2019 $ 180.0 2020 144.0 2021 117.8 2022 97.7 2023 74.0 Thereafter 263.9 Total lease payments $ 877.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Weighted Average Shares Outstanding | The computations of the weighted average shares outstanding for the periods indicated are as follows (in millions): Three Months Ended March 31, 2019 2018 Weighted-average shares outstanding 422.8 485.4 Share-based payment awards classified as participating securities (1) 0.2 0.6 Basic weighted-average shares outstanding 423.0 486.0 Dilutive securities (2) — — Diluted weighted-average shares outstanding 423.0 486.0 (1) For the three months ended March 31, 2019 and 2018, dividends and equivalents for share-based awards that are expected to be forfeited do not have a material effect on net income for basic and diluted earnings per share. (2) The three months ended March 31, 2019 and 2018 excludes 0.4 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Non-Pension Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s non-pension financial assets and liabilities which are measured at fair value on a recurring basis (in millions): March 31, 2019 December 31, 2018 Fair Value Asset (Liability) Fair Value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 16.5 $ — $ 16.5 $ — $ 26.2 $ — $ 26.2 Liabilities — (19.1 ) — (19.1 ) — (17.3 ) — (17.3 ) Investment securities, including mutual funds 12.9 6.3 — 19.2 — 1.9 — 1.9 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information as of and for the periods indicated is as follows (in millions): Three Months Ended March 31, 2019 Food and Appliances Home and Outdoor Living Learning and Development Other Corporate Restructuring Costs Consolidated Net sales (1) $ 504.1 $ 626.6 $ 581.4 $ — $ — $ — $ 1,712.1 Operating income (loss) (2) 9.3 (1.5 ) 88.5 — (70.4 ) (10.9 ) 15.0 Other segment data: Total segment assets 4,127.9 4,374.2 4,907.0 — 1,240.9 — 14,650.0 Three Months Ended March 31, 2018 Food and Appliances Home and Outdoor Living Learning and Development Other Corporate Restructuring Costs Consolidated Net sales (1) $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ — $ — $ 1,811.5 Operating income (loss) (2) 13.4 7.8 66.2 0.9 (109.3 ) (5.4 ) (26.4 ) (1) All intercompany transactions have been eliminated. (2) Operating income (loss) by segment is net sales less cost of products sold, SG&A and impairment of goodwill, intangibles and other assets for continuing operations. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income. |
Summary of Disaggregation of Revenue by Major Product Grouping Source and Geography | The following table disaggregates revenue by major product grouping and geography for the periods indicated (in millions): Three Months Ended March 31, 2019 Food and Appliances Home and Outdoor Living Learning and Development Other Total Appliances and Cookware $ 329.5 $ — $ — $ — $ 329.5 Food 174.6 — — — 174.6 Connected Home and Security — 84.1 — — 84.1 Home Fragrance — 196.7 — — 196.7 Outdoor and Recreation — 345.8 — — 345.8 Baby and Parenting — — 236.2 — 236.2 Writing — — 345.2 — 345.2 Other — — — — — Total $ 504.1 $ 626.6 $ 581.4 $ — $ 1,712.1 North America $ 353.5 $ 439.7 $ 390.6 $ — $ 1,183.8 International 150.6 186.9 190.8 — 528.3 Total $ 504.1 $ 626.6 $ 581.4 $ — $ 1,712.1 Three Months Ended March 31, 2018 Food and Appliances Home and Outdoor Living Learning and Development Other Total Appliances and Cookware $ 368.3 $ — $ — $ — $ 368.3 Food 165.9 — — — 165.9 Connected Home and Security — 90.0 — — 90.0 Home Fragrance — 212.4 — — 212.4 Outdoor and Recreation — 367.3 — — 367.3 Baby and Parenting — — 272.5 — 272.5 Writing — — 334.5 — 334.5 Other — — — 0.6 0.6 Total $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ 1,811.5 North America $ 356.6 $ 469.8 $ 394.4 $ 0.6 $ 1,221.4 International 177.6 199.9 212.6 — 590.1 Total $ 534.2 $ 669.7 $ 607.0 $ 0.6 $ 1,811.5 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||
Right of use assets | $ 619.3 | ||
Lease liabilities | 685.4 | ||
Restatement Adjustment [Member] | |||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||
Restatement of Prior Year Income, Tax Effects | $ 12 | ||
Impairment Charge on Reclassified Assets | 12.6 | ||
Accounting Standards Update 2016-02 [Member] | |||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||
Retained earnings and prepaid expenses | $ 0.5 | ||
Fire Angel Safety Technology Group PLC [Member] | |||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||
Revenue from related parties | $ 7.5 | ||
Investment owned, percentage | 23.40% | ||
Equity Method Investment, Other than Temporary Impairment | $ 11.7 | ||
Equity Method Investments | 2.9 | ||
Operating Lease Assets [Member] | |||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||
Right of use assets | 629 | ||
Lease liabilities | $ 687 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Summary of Impact of Adoption of Topic 842 on Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet Classification [Abstract] | ||||
Prepaid expenses and other | $ 290.8 | $ 275.6 | ||
Current assets held for sale | 3,456.1 | 3,535.2 | ||
Total current assets | 7,516.1 | 7,740.3 | ||
Total assets | 18,106.1 | 17,722.4 | ||
Other accrued liabilities | 1,174.4 | 1,180.6 | ||
Current liabilities held for sale | 747.1 | 734.1 | ||
Total current liabilities | 3,551.6 | 3,412 | ||
Deferred income taxes (liabilities) | 216 | 179.7 | ||
Other noncurrent liabilities | 1,328.5 | 1,368.2 | ||
Total liabilities | 13,123 | 12,469.2 | ||
Retained earnings | (2,662) | (2,511.3) | ||
Stockholders' equity attributable to parent | 4,948.4 | 5,218.4 | ||
Total stockholders' equity | 4,983.1 | $ 14,167.3 | 5,253.2 | $ 14,181.3 |
Total liabilities and stockholders' equity | 18,106.1 | 17,722.4 | ||
Income Statement Classification [Abstract] | ||||
Income (loss) from discontinued operations, net of tax | (79.4) | 108 | ||
Net income (loss) | $ (151.2) | $ 53.3 | ||
Basic: | ||||
Income (loss) from continuing operations | $ (0.17) | $ (0.11) | ||
Income (loss) from discontinued operations | (0.19) | 0.22 | ||
Net income (loss) | (0.36) | 0.11 | ||
Diluted: | ||||
Income (loss) from continuing operations | (0.17) | (0.11) | ||
Income (loss) from discontinued operations | (0.19) | 0.22 | ||
Net income (loss) | $ (0.36) | $ 0.11 | ||
Previously Reported [Member] | ||||
Balance Sheet Classification [Abstract] | ||||
Prepaid expenses and other | 278 | |||
Current assets held for sale | 3,541.3 | |||
Total current assets | 7,748.8 | |||
Deferred income taxes (noncurrent assets) | 165.2 | |||
Total assets | 17,716.4 | |||
Other accrued liabilities | 1,182.3 | |||
Current liabilities held for sale | 650.4 | |||
Total current liabilities | 3,330 | |||
Deferred income taxes (liabilities) | 1,041.8 | |||
Other noncurrent liabilities | 1,370.5 | |||
Total liabilities | 12,438.6 | |||
Retained earnings | (2,486.7) | |||
Stockholders' equity attributable to parent | 5,243 | |||
Total stockholders' equity | 5,277.8 | |||
Total liabilities and stockholders' equity | 17,716.4 | |||
Income Statement Classification [Abstract] | ||||
Income (loss) from discontinued operations, net of tax | (128.3) | |||
Net income (loss) | $ (6,917.9) | |||
Basic: | ||||
Income (loss) from continuing operations | $ (14.33) | |||
Income (loss) from discontinued operations | (0.27) | |||
Net income (loss) | (14.60) | |||
Diluted: | ||||
Income (loss) from continuing operations | (14.33) | |||
Income (loss) from discontinued operations | (0.27) | |||
Net income (loss) | $ (14.60) | |||
Restatement Adjustment [Member] | ||||
Balance Sheet Classification [Abstract] | ||||
Prepaid expenses and other | $ (2.4) | |||
Current assets held for sale | (6.1) | |||
Total current assets | (8.5) | |||
Deferred income taxes (noncurrent assets) | 14.5 | |||
Total assets | 6 | |||
Other accrued liabilities | (0.8) | |||
Current liabilities held for sale | 100.4 | |||
Total current liabilities | 99.6 | |||
Deferred income taxes (liabilities) | (66.7) | |||
Other noncurrent liabilities | (2.3) | |||
Total liabilities | 30.6 | |||
Retained earnings | (24.6) | |||
Stockholders' equity attributable to parent | (24.6) | |||
Total stockholders' equity | (24.6) | |||
Total liabilities and stockholders' equity | 6 | |||
Income Statement Classification [Abstract] | ||||
Income (loss) from discontinued operations, net of tax | (24.6) | |||
Net income (loss) | $ (24.6) | |||
Basic: | ||||
Income (loss) from discontinued operations | $ (0.05) | |||
Net income (loss) | (0.05) | |||
Diluted: | ||||
Income (loss) from discontinued operations | (0.05) | |||
Net income (loss) | $ (0.05) | |||
Reclassification [Member] | ||||
Balance Sheet Classification [Abstract] | ||||
Other accrued liabilities | $ (0.9) | |||
Current liabilities held for sale | (16.7) | |||
Total current liabilities | (17.6) | |||
Deferred income taxes (liabilities) | 17.6 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Balance Sheet Classification [Abstract] | ||||
Prepaid expenses and other | 275.6 | |||
Current assets held for sale | 3,535.2 | |||
Total current assets | 7,740.3 | |||
Deferred income taxes (noncurrent assets) | 179.7 | |||
Total assets | 17,722.4 | |||
Other accrued liabilities | 1,180.6 | |||
Current liabilities held for sale | 734.1 | |||
Total current liabilities | 3,412 | |||
Deferred income taxes (liabilities) | 992.7 | |||
Other noncurrent liabilities | 1,368.2 | |||
Total liabilities | 12,469.2 | |||
Retained earnings | (2,511.3) | |||
Stockholders' equity attributable to parent | 5,218.4 | |||
Total stockholders' equity | 5,253.2 | |||
Total liabilities and stockholders' equity | 17,722.4 | |||
Income Statement Classification [Abstract] | ||||
Income (loss) from discontinued operations, net of tax | (152.9) | |||
Net income (loss) | $ (6,942.5) | |||
Basic: | ||||
Income (loss) from continuing operations | $ (14.33) | |||
Income (loss) from discontinued operations | (0.32) | |||
Net income (loss) | (14.65) | |||
Diluted: | ||||
Income (loss) from continuing operations | (14.33) | |||
Income (loss) from discontinued operations | (0.32) | |||
Net income (loss) | $ (14.65) |
Divestitures and Held for Sal_2
Divestitures and Held for Sale - Summary of Amounts Included in Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net sales | $ 540.9 | $ 1,205.9 |
Cost of products sold | 378.8 | 805.8 |
Selling, general and administrative expenses | 76.7 | 254.1 |
Restructuring costs, net | 2.5 | |
Impairment of goodwill, intangibles and other assets | 174.7 | |
Operating income (loss) | (89.3) | 143.5 |
Non-operating expense (income) | (3.2) | 0.4 |
Income (loss) before income taxes | (86.1) | 143.1 |
Income tax expense (benefit) | (6.7) | 35.1 |
Net income (loss) | $ (79.4) | $ 108 |
Divestitures and Held for Sal_3
Divestitures and Held for Sale - Schedule of Major Classes of Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Accounts receivable, net | $ 413.8 | $ 411.7 |
Inventories, net | 378.2 | 338.7 |
Prepaid expenses and other | 37.4 | 42.8 |
Property, plant and equipment, net | 510.8 | 515.9 |
Operating lease assets | 74.3 | |
Goodwill | 877.4 | 942.4 |
Other intangible assets, net | 1,150.6 | 1,270.8 |
Other assets | 13.6 | 12.9 |
Current assets held for sale | 3,456.1 | 3,535.2 |
Accounts payable | 240.7 | 256.7 |
Accrued compensation | 49.3 | 57 |
Other accrued liabilities | 146.5 | 154.4 |
Deferred income taxes | 219.6 | 250 |
Operating lease liability | 78.9 | |
Other liabilities | 12.1 | 16 |
Current liabilities held for sale | $ 747.1 | $ 734.1 |
Divestitures and Held for Sal_4
Divestitures and Held for Sale - Additional Information (Detail) - USD ($) $ in Millions | Dec. 21, 2018 | Jun. 29, 2018 | Mar. 18, 2019 | Aug. 31, 2018 | Mar. 31, 2019 | Feb. 25, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill and Intangible Asset Impairment | $ 175 | |||||
Rexair Disposal Group [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount of consideration to be received or receivable in asset disposal | $ 235 | |||||
Team Sports Business [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Discontinued operation, gain (loss) on disposal | $ 400 | |||||
Process Solution Business Disposal [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration on sale of business | $ 500 | |||||
Pure Fishing [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration on sale of business | $ 1,300 | |||||
Waddington [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration on sale of business | $ 2,300 | |||||
Goody [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration on sale of business | $ 109 | |||||
Jostens [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration on sale of business | $ 1,300 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 5,253.2 | $ 14,181.3 |
Net current period other comprehensive loss | (23.7) | 51.4 |
Ending balance | 4,983.1 | 14,167.3 |
Cumulative Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (492.6) | |
Other comprehensive loss income before reclassifications | (2.1) | |
Net current period other comprehensive loss | (2.1) | |
Ending balance | (494.7) | |
Pension and Postretirement Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (398.1) | |
Other comprehensive loss income before reclassifications | (14.8) | |
Amounts reclassified to earnings | 1.6 | |
Net current period other comprehensive loss | (13.2) | |
Ending balance | (411.3) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (22.1) | |
Other comprehensive loss income before reclassifications | (5.1) | |
Amounts reclassified to earnings | (3.3) | |
Net current period other comprehensive loss | (8.4) | |
Ending balance | (30.5) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (912.8) | (763.1) |
Other comprehensive loss income before reclassifications | (22) | |
Amounts reclassified to earnings | (1.7) | |
Net current period other comprehensive loss | (23.7) | |
Ending balance | $ (936.5) | $ (711.7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Income Tax (Provision) Benefit Allocated to Components of OCI (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (0.2) | $ 7.9 |
Unrecognized pension and postretirement costs | 3.8 | 4 |
Derivative financial instruments | 2.3 | (0.2) |
Income tax benefit related to AOCL | $ 5.9 | $ 11.7 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Reclassification adjustment from AOCL, Pension and other postretirement benefit plans, pre-tax | $ 2.1 | $ 3.6 |
Reclassification adjustment from AOCL, Derivative financial instruments, pre-tax (income) expense | $ 4.2 | $ 13.1 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Costs Incurred by Reportable Business Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 10.9 | $ 5.4 |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2.8 | 1.9 |
Food and Appliances Segment [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.8 | 0.6 |
Home and Outdoor Living Segment [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2.5 | 0.8 |
Learning and Development Segment [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 3.8 | $ 2.1 |
Restructuring Costs - Schedul_2
Restructuring Costs - Schedule of Accrued Restructuring Costs Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 67.2 | ||
Restructuring costs, net | 10.9 | $ 5.4 | |
Payments | (19.2) | ||
Reclassification | [1] | (12.9) | |
Foreign Currency and Other | (1.3) | ||
Ending balance | 44.7 | ||
Employee Severance, Termination Benefits and Relocation Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 20.6 | ||
Restructuring costs, net | 7 | ||
Payments | (11.3) | ||
Foreign Currency and Other | (0.5) | ||
Ending balance | 15.8 | ||
Exited Contractual Commitments and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 46.6 | ||
Restructuring costs, net | 3.9 | ||
Payments | (7.9) | ||
Reclassification | [1] | (12.9) | |
Foreign Currency and Other | (0.8) | ||
Ending balance | $ 28.9 | ||
[1] | Reclassification due to the adoption of ASU 2016-02 (see Footnote 1) |
Inventories - Components of Net
Inventories - Components of Net Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 224.1 | $ 215.5 |
Work-in-process | 152.8 | 130.7 |
Finished products | 1,422.1 | 1,236.9 |
Total inventories | $ 1,799 | $ 1,583.1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 69.2 | $ 69.9 |
Buildings and improvements | 478.5 | 479.1 |
Machinery and equipment | 1,604.6 | 1,575.1 |
Property, plant and equipment, gross | 2,152.3 | 2,124.1 |
Less: Accumulated depreciation | (1,221.6) | (1,198.5) |
Property, plant and equipment, net | $ 930.7 | $ 925.6 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 39.8 | $ 42.3 |
Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 25.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Summary of Changes in Goodwill by Reportable Business Segment (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Net Book Value, Beginning balance | $ 2,970.2 |
Foreign Exchange | (11.9) |
Gross Carrying Amount | 7,675.5 |
Accumulated Impairment Charges | (4,717.2) |
Net Book Value, Ending balance | 2,958.3 |
Food and Appliances Segment [Member] | |
Goodwill [Line Items] | |
Net Book Value, Beginning balance | 211.2 |
Foreign Exchange | 0.1 |
Gross Carrying Amount | 2,097.5 |
Accumulated Impairment Charges | (1,886.2) |
Net Book Value, Ending balance | 211.3 |
Home and Outdoor Living Segment [Member] | |
Goodwill [Line Items] | |
Net Book Value, Beginning balance | 163.8 |
Gross Carrying Amount | 2,148.8 |
Accumulated Impairment Charges | (1,985) |
Net Book Value, Ending balance | 163.8 |
Learning and Development Segment [Member] | |
Goodwill [Line Items] | |
Net Book Value, Beginning balance | 2,595.2 |
Foreign Exchange | (12) |
Gross Carrying Amount | 3,429.2 |
Accumulated Impairment Charges | (846) |
Net Book Value, Ending balance | $ 2,583.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets and Related Amortization Periods (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
Intangible Assets [Line Items] | ||
Indefinite life, Net Book Value | $ 4,093.1 | |
Gross Carrying Amount | 6,298.6 | 6,301.6 |
Accumulated Amortization | (719) | (765.2) |
Net Book Value | 5,579.6 | 5,536.4 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite life, Net Book Value | 4,093 | 4,089.4 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite life, Net Book Value | 4,093 | 4,089.4 |
Gross Carrying Amount | 170.5 | 170.3 |
Accumulated Amortization | (36.5) | (39.9) |
Net Book Value | $ 134 | 130.4 |
Trade Names [Member] | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 2 years | |
Trade Names [Member] | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 15 years | |
Capitalized Software [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 520 | 529 |
Accumulated Amortization | (348.1) | (363.7) |
Net Book Value | $ 171.9 | 165.3 |
Capitalized Software [Member] | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 3 years | |
Capitalized Software [Member] | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 12 years | |
Patents and Intellectual Property [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 136.4 | 134.1 |
Accumulated Amortization | (79.2) | (83.4) |
Net Book Value | $ 57.2 | 50.7 |
Patents and Intellectual Property [Member] | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 3 years | |
Patents and Intellectual Property [Member] | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 14 years | |
Customer Relationships & Distributor Channels [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,269.7 | 1,269.8 |
Accumulated Amortization | (180.9) | (196.9) |
Net Book Value | $ 1,088.8 | 1,072.9 |
Customer Relationships & Distributor Channels [Member] | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 3 years | |
Customer Relationships & Distributor Channels [Member] | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 30 years | |
Other [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 109 | 109 |
Accumulated Amortization | (74.3) | (81.3) |
Net Book Value | $ 34.7 | $ 27.7 |
Other [Member] | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 3 years | |
Other [Member] | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Amortization periods | 5 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Continuing Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense for intangible assets | $ 47.1 | $ 49.8 |
Discontinued Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense for intangible assets | $ 32 |
Other Accrued Liabilities - Oth
Other Accrued Liabilities - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Customer accruals | $ 437.7 | $ 535.8 |
Accruals for manufacturing, marketing and freight expenses | 37 | 34.3 |
Accrued self-insurance liabilities, contingencies and warranty | 132.4 | 123.3 |
Operating lease liability | 137.8 | |
Derivative liabilities | 13 | 4.9 |
Accrued income taxes | 92.9 | 165.2 |
Accrued interest expense | 128.9 | 72.9 |
Other | 194.7 | 244.2 |
Other accrued liabilities | $ 1,174.4 | $ 1,180.6 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 258.9 | |
Receivables facility | 269 | |
Other debt | 52.6 | $ 48.4 |
Debt | ||
Total debt | 7,268.2 | 7,015 |
Short-term debt and current portion of long-term debt | (573.6) | (318.7) |
Long-term debt | 6,694.6 | 6,696.3 |
2.60% Senior Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 267.3 | |
4.70% Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 304.7 | 304.6 |
3.15% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 93.5 | 97.5 |
3.75% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 344.6 | 353.2 |
4.00% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 249.1 | 249 |
3.85% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 1,741.3 | 1,740.8 |
5.00% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 309.5 | 310 |
4.00% Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 496.6 | 496.4 |
3.90% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 90.4 | 90.3 |
4.20% Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 1,984.9 | 1,984.5 |
5.375% Senior Notes Due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 415.9 | 415.8 |
5.50% Senior Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 657.2 | $ 657.2 |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
2.60% Senior Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.60% | 2.60% |
Maturity year | 2019 | 2019 |
4.70% Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.70% | 4.70% |
Maturity year | 2020 | 2020 |
3.15% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.15% | 3.15% |
Maturity year | 2021 | 2021 |
3.75% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.75% | 3.75% |
Maturity year | 2021 | 2021 |
4.00% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Maturity year | 2022 | 2022 |
3.85% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.85% | 3.85% |
Maturity year | 2023 | 2023 |
5.00% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | 5.00% |
Maturity year | 2023 | 2023 |
4.00% Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Maturity year | 2024 | 2024 |
3.90% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | 3.90% |
Maturity year | 2025 | 2025 |
4.20% Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.20% | 4.20% |
Maturity year | 2026 | 2026 |
5.375% Senior Notes Due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.375% | 5.375% |
Maturity year | 2036 | 2036 |
5.50% Senior Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | 5.50% |
Maturity year | 2046 | 2046 |
Debt - Schedule of Fair Value o
Debt - Schedule of Fair Value of Senior Notes (Detail) - Senior Notes [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Senior Notes, Fair Value | $ 6,518.2 | $ 6,911.2 |
Senior Notes, Book Value | $ 6,687.7 | $ 6,966.6 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Payment of Current Portion of Long Term Debt | $ 268.2 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, current borrowing capacity | 1,250 |
Revolving Credit Facility [Member] | Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | 100 |
Revolving Credit Facility [Member] | Commercial Paper [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | 800 |
New Receivables Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 950 |
Debt Instrument, maturity date | Oct. 1, 2019 |
Debt Instrument, Basis Spread on Variable Rate | 0.80% |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% |
A260 Senior Notes Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.60% |
Payment of Current Portion of Long Term Debt | $ 268 |
Senior Exchange Notes due 2021 [Member] | |
Debt Instrument [Line Items] | |
Senior notes rate | 3.75% |
Debt Instrument, face amount | $ 300 |
Deferred gain (loss) on net investment hedge recorded in AOCL, net of tax | $ 3.9 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivatives, Asset | $ 16.5 | $ 26.2 |
Fair Value of Derivatives, Liability | 19.1 | 17.3 |
Derivatives Designated as Effective Hedges [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivatives, Asset | 7.9 | 13.3 |
Fair Value of Derivatives, Liability | 3.6 | 0.7 |
Derivatives Designated as Effective Hedges [Member] | Fair Value Hedges [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivatives, Liability | 6 | 11.5 |
Derivatives Not Designated as Effective Hedges [Member] | Foreign Currency Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivatives, Asset | 8.6 | 12.9 |
Fair Value of Derivatives, Liability | 8.2 | 4.2 |
Derivatives Not Designated as Effective Hedges [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivatives, Liability | $ 1.3 | $ 0.9 |
Derivatives - Schedule of Preta
Derivatives - Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Recognized in OCI (effective portion) | [1] | $ (6.7) | $ (8.7) |
Gain/(Loss) Reclassified from AOCL to Income | 4.2 | (13.1) | |
Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Reclassified from AOCL to Income | (1.5) | (1.9) | |
Foreign Currency Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Recognized in OCI (effective portion) | [1] | (6.1) | (5.3) |
Gain/(Loss) Reclassified from AOCL to Income | 5.7 | (6.4) | |
Commodity contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Recognized in OCI (effective portion) | [1] | $ (0.6) | |
Cross-currency Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Recognized in OCI (effective portion) | [1] | (3.4) | |
Gain/(Loss) Reclassified from AOCL to Income | $ (4.8) | ||
[1] | Represents effective portion recognized in Other Comprehensive Income (Loss) (“OCI”). |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 8,200 | ||
Fair Value of Derivatives, Liability | 19,100 | $ 17,300 | |
Other Expense, Net [Member] | |||
Derivative [Line Items] | |||
Derivative instruments not designated as hedging instruments, expense (income), net | 5,600 | $ 9,500 | |
4.70% Senior Notes Due 2020 [Member] | |||
Derivative [Line Items] | |||
Debt Instrument, face amount | $ 277,000 | ||
Debt Instrument, interest rate, stated percentage | 4.70% | 4.70% | |
4.00% Senior Notes Due 2024 [Member] | |||
Derivative [Line Items] | |||
Debt Instrument, face amount | $ 250,000 | ||
Debt Instrument, interest rate, stated percentage | 4.00% | 4.00% | |
Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 527,000 | ||
Foreign Currency Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 383,000 | ||
Foreign Currency Contracts [Member] | Derivatives Not Designated as Effective Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 925,000 | ||
Fair Value of Derivatives, Liability | 8,200 | $ 4,200 | |
Commodity contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 10,000 | ||
Commodity contracts [Member] | Derivatives Not Designated as Effective Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 3,000 | ||
Fair Value of Derivatives, Liability | 1,300 | $ 900 | |
Cross Currency Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Fair Value of Derivatives, Liability | $ 0 | $ 0 |
Employee Benefit and Retireme_3
Employee Benefit and Retirement Plans - Schedule of Company's Pension Cost And Supplemental Retirement Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.1 | $ 0.2 |
Interest cost | 12.3 | 11.6 |
Expected return on plan assets | (14.8) | (16.9) |
Amortization, net | 3.8 | 5.4 |
Net periodic expense | 1.4 | 0.3 |
Pension Benefits [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1.5 | 1.4 |
Interest cost | 3.2 | 3.3 |
Expected return on plan assets | (3.3) | (4) |
Amortization, net | 0.6 | 0.6 |
Net periodic expense | 2 | 1.3 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | |
Interest cost | 0.5 | 0.5 |
Amortization, net | (2.4) | (2.6) |
Net periodic expense | $ (1.9) | $ (2) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax [Line Items] | ||
Federal corporate tax | 21.00% | |
Effective Income Tax Rate Reconciliation, Percent | 18.90% | 61.20% |
Leases - Schedule of Consolidat
Leases - Schedule of Consolidated Balance Sheet Related To Leases (Detail) $ in Millions | Mar. 31, 2019USD ($) | |
Assets | ||
Operating leases | $ 619.3 | |
Finance leases | 18.6 | [1] |
Total lease assets | 637.9 | |
Current | ||
Operating leases | 137.8 | |
Finance leases | 3.4 | |
Noncurrent | ||
Operating leases | 547.6 | |
Finance leases | 11.9 | |
Total lease liabilities | $ 700.7 | |
[1] | Net of accumulated depreciation of $4.6 million. |
Leases - Schedule of Consolid_2
Leases - Schedule of Consolidated Balance Sheet Related To Leases (Parenthetical) (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Net of accumulated amortization | $ 4.6 |
Leases - Schedule of Consolid_3
Leases - Schedule of Consolidated Statement Of Operation Related To Leases (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Operating lease cost: | ||
Operating lease cost | $ 48.2 | [1] |
Variable lease costs | 6 | [2] |
Finance lease cost: | ||
Amortization of leased assets | 1.1 | |
Interest on lease liabilities | $ 0.2 | |
[1] | Includes short-term leases, which are immaterial. | |
[2] | Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales. |
Leases - Schedule Of Remaining
Leases - Schedule Of Remaining Lease Term and Discount Rates (Detail) | Mar. 31, 2019 |
Weighted-average remaining lease term (years): | |
Operating leases | 7 years |
Finance leases | 4 years |
Weighted-average discount rate: | |
Operating leases | 4.30% |
Finance leases | 3.90% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow Related To Leases (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 39.5 |
Operating cash flows from finance leases | 0.2 |
Financing cash flows from finance leases | 0.7 |
Right Of Use Assets Obtained In Exchange For Lease Liabilities [Abstract] | |
Operating leases | 26.5 |
Finance leases | $ 6.7 |
Leases - Schedule Of Maturitie
Leases - Schedule Of Maturities Of Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) |
2019 (Excludes three months ended March 31, 2019) | $ 124.7 |
2020 | 136.2 |
2021 | 113.5 |
2022 | 97.8 |
2023 | 73.8 |
Thereafter | 264.6 |
Total lease payments | 810.6 |
Less imputed interest | (125.2) |
Present value of lease liabilities | 685.4 |
2019 (Excludes three months ended March 31, 2019) | 3.3 |
2020 | 4.3 |
2021 | 4.2 |
2022 | 3.3 |
2023 | 1.5 |
Thereafter | 0.4 |
Total lease payments | 17 |
Less imputed interest | (1.7) |
Present value of lease liabilities | $ 15.3 |
Leases - Schedule Of Future Min
Leases - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
2019 | $ 180 |
2020 | 144 |
2021 | 117.8 |
2022 | 97.7 |
2023 | 74 |
Thereafter | 263.9 |
Total | $ 877.4 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Operating Lease Expense | $ 52.7 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computations of Weighted Average Shares Outstanding (Detail) - shares shares in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted-average shares outstanding | 422.8 | 485.4 | |
Share-based payment awards classified as participating securities | [1] | 0.2 | 0.6 |
Basic weighted-average shares outstanding | 423 | 486 | |
Dilutive securities | [2] | 0 | 0 |
Diluted weighted-average shares outstanding | 423 | 486 | |
[1] | For the three months ended March 31, 2019 and 2018, dividends and equivalents for share-based awards that are expected to be forfeited do not have a material effect on net income for basic and diluted earnings per share. | ||
[2] | The three months ended March 31, 2019 and 2018 excludes 0.4 million and 1.0 million, respectively, potentially dilutive share-based awards as their effect would be anti-dilutive. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Computations of Weighted Average Shares Outstanding (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Awards [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive restricted share awards excluded from computation of diluted EPS | 0.4 | 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Dividends per share | $ 0.23 | $ 0.23 |
Restricted Stock [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive restricted share awards excluded from computation of diluted EPS | 2.3 | |
Jarden Acquisition [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Shares issuable to Dissenting Shareholders | 2.5 |
Stockholders' Equity and Shar_2
Stockholders' Equity and Share-Based Awards - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 01, 2019 | Jun. 11, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends per share | $ 0.23 | $ 0.23 | ||
Deferred Compensation Arrangement with Individual, Description | Mr. Polk agreed to a customary release and restrictive covenants Pursuant to certain terms and conditions Mr. Polk’s unexercised 2011 stock options will remain exercisable until expiration in July 2021 consistent with the terms of the underlying option agreement. Additionally, Mr. Polk’s unvested performance-based RSU awarded in February 2018 will continue to vest in February 2021 (subject to the satisfaction of applicable performance conditions) and a pro-rata portion of the RSUs awarded to Mr. Polk in February 2019, reflecting four months of service and totaling 45,724 RSUs, will continue to vest in February 2022 | |||
Employee share based compensation recorded benefit | $ 9.3 | |||
Employee share based compensation not yet recognized | 4.3 | |||
Share Repurchase Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase remaining amount | 2,100 | |||
Increase in authorized amount | $ 2,500 | |||
Stock repurchase program, authorized amount | 3,600 | |||
Stock Options [Member] | Discontinued Operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate grant date fair value | $ 0 | |||
Number of stock units awarded | 21,700,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock units awarded | 45,724 | |||
Time-Based RSU's [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards vesting period | 3 years | |||
Aggregate grant date fair value | $ 21.7 | |||
Number of stock units awarded | 1,200,000 | |||
Share-based awards vesting terms | vest in equal installments over a three-year period. | |||
Performance Based Restricted Stock Units Rsu [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards vesting period | 3 years | |||
Share based compensation arrangement by share based payment award performance share unit award number | 1,300,000 | |||
Aggregate grant date fair value | $ 23 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Non-Pension Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, Assets | $ 16.5 | $ 26.2 |
Derivatives, Liabilities | (19.1) | (17.3) |
Investment securities, including mutual funds | 19.2 | 1.9 |
Level 1 [Member] | Fair Value Measurements on Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, including mutual funds | 12.9 | |
Level 2 [Member] | Fair Value Measurements on Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, Assets | 16.5 | 26.2 |
Derivatives, Liabilities | (19.1) | (17.3) |
Investment securities, including mutual funds | $ 6.3 | $ 1.9 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Equity method investment | $ 18.3 |
Equity method investment at fair value | 12.9 |
Other Operating Income (Expense) [Member] | |
Equity Securities, FV-NI, Gain (Loss) | $ 5.4 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | $ 1,712.1 | $ 1,811.5 |
Operating income (loss) | [2] | 15 | (26.4) |
Total segment assets | 14,650 | ||
Restructuring Costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | [2] | (10.9) | (5.4) |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | [2] | (70.4) | (109.3) |
Total segment assets | 1,240.9 | ||
Food and Appliances Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 504.1 | 534.2 | |
Food and Appliances Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | 504.1 | 534.2 |
Operating income (loss) | [2] | 9.3 | 13.4 |
Total segment assets | 4,127.9 | ||
Home and Outdoor Living Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 626.6 | 669.7 | |
Home and Outdoor Living Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | 626.6 | 669.7 |
Operating income (loss) | [2] | (1.5) | 7.8 |
Total segment assets | 4,374.2 | ||
Learning and Development Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 581.4 | 607 | |
Learning and Development Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | 581.4 | 607 |
Operating income (loss) | [2] | 88.5 | 66.2 |
Total segment assets | $ 4,907 | ||
Other Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.6 | ||
Other Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | 0.6 | |
Operating income (loss) | [2] | $ 0.9 | |
[1] | All intercompany transactions have been eliminated. | ||
[2] | Operating income (loss) by segment is net sales less cost of products sold, SG&A and impairment of goodwill, intangibles and other assets for continuing operations. Certain headquarters expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization are included in segment operating income. |
Segment Information - Summary o
Segment Information - Summary of Disaggregation of Revenue by Major Product Grouping Source and Geography (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||
Total revenue | [1] | $ 1,712.1 | $ 1,811.5 |
Appliances and Cookware [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 329.5 | 368.3 | |
Food [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 174.6 | 165.9 | |
Connected Home and Security [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 84.1 | 90 | |
Home Fragrance [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 196.7 | 212.4 | |
Outdoor and Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 345.8 | 367.3 | |
Baby and Parenting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 236.2 | 272.5 | |
Writing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 345.2 | 334.5 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0.6 | ||
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,183.8 | 1,221.4 | |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 528.3 | 590.1 | |
Food and Appliances Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 504.1 | 534.2 | |
Food and Appliances Segment [Member] | Appliances and Cookware [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 329.5 | 368.3 | |
Food and Appliances Segment [Member] | Food [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 174.6 | 165.9 | |
Food and Appliances Segment [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 353.5 | 356.6 | |
Food and Appliances Segment [Member] | International [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 150.6 | 177.6 | |
Home and Outdoor Living Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 626.6 | 669.7 | |
Home and Outdoor Living Segment [Member] | Connected Home and Security [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 84.1 | 90 | |
Home and Outdoor Living Segment [Member] | Home Fragrance [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 196.7 | 212.4 | |
Home and Outdoor Living Segment [Member] | Outdoor and Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 345.8 | 367.3 | |
Home and Outdoor Living Segment [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 439.7 | 469.8 | |
Home and Outdoor Living Segment [Member] | International [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 186.9 | 199.9 | |
Learning and Development Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 581.4 | 607 | |
Learning and Development Segment [Member] | Baby and Parenting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 236.2 | 272.5 | |
Learning and Development Segment [Member] | Writing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 345.2 | 334.5 | |
Learning and Development Segment [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 390.6 | 394.4 | |
Learning and Development Segment [Member] | International [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 190.8 | 212.6 | |
Other Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0.6 | ||
Other Segment [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0.6 | ||
Other Segment [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 0.6 | ||
[1] | All intercompany transactions have been eliminated. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Sales Information [Line Items] | |
Number of reportable segments | 4 |
Litigation and Contingencies -
Litigation and Contingencies - Additional Information (Detail) $ / shares in Units, shares in Millions, Merchandise in Millions, $ in Millions | Jul. 06, 2017USD ($)$ / sharesshares | Oct. 03, 2016shares | Feb. 28, 2014Merchandise | Mar. 31, 2019USD ($)Lawsuitsshares | Jun. 30, 2018Parties |
Loss Contingencies [Line Items] | |||||
Number of putative class action lawsuits | Lawsuits | 2 | ||||
Share conversion ratio upon merger | 86.20% | ||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 6.6 | ||||
Issue of common stock to settling petitioners , Value | $ 162 | ||||
Environmental remediation reserve | $ 47.3 | ||||
Standby letters of credit outstanding | $ 66 | ||||
Jarden Acquisition [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of shares holding by dissenting shareholders | shares | 2.9 | 10.6 | 2.9 | ||
Business combination, cash consideration transferred per share | $ / shares | $ 21 | ||||
Number of common stock transferred on settlement | shares | 7.7 | ||||
Assumed acquisition price | $ 171 | ||||
Lower Passaic River Matter [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of general notice letter recipients involved in remedial investigation and feasibility study | 72 | ||||
Loss contingency estimated period | 30 years | ||||
Number of parties sued | Parties | 120 | ||||
Lower Passaic River Matter [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 315 | ||||
Lower Passaic River Matter [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 3,200 | ||||
Lower Passaic River Maintenance Costs [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 0.5 | ||||
Lower Passaic River Maintenance Costs [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 1.8 | ||||
Lower Passaic River Matter - Preferred Alternative [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 1,700 | ||||
Lower Passaic River Matter - Preferred Alternative Maintenance Costs [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 1.6 | ||||
Lower Passaic River Matter - Alternative Range from Participating Parties [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 28 | ||||
Lower Passaic River Matter - Alternative Range from Participating Parties [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 2,700 | ||||
Lower Passaic River Matter - Selected Remedy for the Preferred Alternative [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 1,400 | ||||
Settlement amount | $ 0.3 | ||||
Graco Recall [Member] | |||||
Loss Contingencies [Line Items] | |||||
Approximate number of defective merchandise recalled | Merchandise | 4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Subsequent Event [Line Items] | ||
Repayment of sort term debt | $ 269 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Consideration for sale of business | $ 735 |