Graco 2005 Annual Report Download - page 12

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information which management believes is relevant to
an assessment and understanding of the consolidated results of operations and Ñnancial condition of Newell
Rubbermaid Inc. (""Newell Rubbermaid'' or the ""Company''). The discussion should be read in
conjunction with the accompanying Consolidated Financial Statements. It includes the following sections:
‚ Executive Overview
‚ Consolidated Results of Operations
‚ Business Segment Operating Results
‚ Liquidity and Capital Resources
‚ Minimum Pension Liability
‚ Resolution of Income Tax Contingencies
‚ Contractual Obligations, Commitments and OÅ-Balance Sheet Arrangements
‚ Critical Accounting Policies
‚ Pending Adoption of New Accounting Pronouncements
‚ International Operations
Executive Overview
Newell Rubbermaid is a global manufacturer and marketer of branded consumer products and their
commercial extensions, serving a wide array of retail channels including department stores, discount stores,
warehouse clubs, home centers, hardware stores, commercial distributors, oÇce superstores, contract
stationers, automotive stores and baby superstores. The Company's basic business strategy is to create
brands that matter by marketing a multi-product oÅering of consumer and commercial products, backed
by a focus on innovation and customer service excellence, in order to achieve maximum results for its
stockholders. The Company conducts businesses in Ñve operating segments as follows:
Segment Description of Products
Cleaning & Organization Material handling, cleaning, refuse, indoor/outdoor organization, home
storage, food storage
OÇce Products ÏÏÏÏÏÏÏÏÏ Ballpoint/roller ball pens, markers, highlighters, pencils, correction Öuids,
oÇce products, art supplies, on-demand labeling products
Tools & Hardware ÏÏÏÏÏÏ Hand tools, power tool accessories, manual paint applicators, cabinet,
window and convenience hardware, propane torches, solder
Home Fashions ÏÏÏÏÏÏÏÏÏ Drapery hardware, window treatments
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Operating segments that do not meet aggregation criteria, including
aluminum and stainless steel cookware, hair care accessory products, infant
and juvenile products, including toys, high chairs, car seats, strollers and play
yards
The Company remains committed to investing in strategic brands and new product development,
having best-cost platforms, and strengthening its portfolio of businesses. The Company will continue to
make investments in advertising, promotion, and new product development in its ""Invest'' businesses,
which encompass the Company's high-potential, high margin brands, while taking action to improve
proÑtability in its ""Fix'' businesses, which encompass many of the Company's low margin product lines.
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