Graco 2010 Annual Report Download - page 83

Newell Rubbermaid Inc. 2010 Annual Report
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NEWELL RUBBERMAID 2010 Annual Report 79
Nonrecurring Fair Value Measurements
The Company’s nonfinancial assets, which are measured at fair value on a nonrecurring basis include property, plant and
equipment, goodwill and other intangible assets. During the years ended December 31, 2010 and 2009, the Company recorded
impairments of $6.0 million and $32.4 million, respectively, associated with plans to dispose of certain property, plant and
equipment. The Company generally uses projected cash flows, discounted as necessary, 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. 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. During 2010 and 2009, no fair value measurements were recorded as a
result of the Company’s annual testing of impairment for goodwill and other indefinite-lived intangible assets.
Financial Instruments
The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, derivative
instruments, convertible note hedge 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 and accounts payable, approximate fair
value due to the short maturity of such instruments. The fair values of the Company’s derivative instruments are recorded in
the Consolidated Balance Sheets and are disclosed in Footnote 11. The fair values of the Company’s convertible note hedge
instruments are disclosed in Footnote 10. The fair values of certain of the Company’s short- and long-term debt are based on
quoted market prices and are as follows (in millions):
2010 2009
Fair Value Book Value Fair Value Book Value
Medium-term notes $ 1,650.7 $ 1,623.0 $ 1,520.7 $ 1,426.6
Preferred securities underlying the junior
convertible subordinated debentures 353.8 421.2 307.5 421.2
Convertible notes 45.5 17.5 660.3 284.3
The carrying amounts of all other significant debt, including the term loan, approximate fair value. The term loan is not
publicly traded and accordingly, the fair value of this instrument was determined using a discounted cash flow model and
market rates of interest as of December 31, 2010.
FOOTNOTE 19
INDUSTRY SEGMENT INFORMATION
The Company’s reportable segments are as follows:
Segment Key Brands Description of Primary Products
Home & Family Rubbermaid®, Graco®, Indoor/outdoor organization, food storage and home storage products; infant and
Aprica®, Levolor®, juvenile products such as car seats, strollers, highchairs and playards; drapery
Calphalon®, Goody® hardware, window treatments and cabinet hardware; gourmet cookware, bakeware,
cutlery and small kitchen electrics; hair care accessories
Office Products Sharpie®, Expo®, Dymo®, Writing instruments, including pens, pencils, markers and highlighters, and art
Mimio®, Paper Mate®, products; fine writing instruments and leather goods; office technology solutions
Parker®, Waterman® such as label makers and printers, interactive teaching solutions and on-line postage
Tools, Hardware & Lenox®, Rubbermaid® Industrial bandsaw blades and cutting tools for pipes and HVAC systems; hand
Commercial Products Commercial Products, tools and power tool accessories; manual paint applicators, window hardware,
Technical Concepts™, convenience hardware and propane torches; cleaning and refuse products,
Irwin®, Shur-line®, hygiene systems, material handling solutions and medical and computer carts
Bulldog®, BernzOmatic® and wall-mounted work stations