Graco 2012 Annual Report Download - page 102

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96
2012 2011 2010
Impairment Charges
United States $ — $ (266.8) $ —
Canada ———
Total North America —(266.8) —
Europe, Middle East and Africa —(9.2) —
Latin America ———
Asia Pacific —(106.6) —
Total International —(115.8) —
$ — $ (382.6) $ —
The following table summarizes the net sales by product grouping for the years ended December 31, (in millions):
2012 2011 2010
Home Solutions:
Rubbermaid Consumer $ 822.8 $ 827.2 $ 819.7
Décor 408.7 464.8 458.8
Other 412.5 418.2 399.5
1,644.0 1,710.2 1,678.0
Writing 1,416.2 1,399.3 1,355.8
Tools 806.1 779.6 687.6
Commercial Products 759.7 741.5 683.1
Baby & Parenting 736.1 680.4 700.2
Specialty:
Hardware 187.3 195.4 220.7
Technology 353.3 358.2 332.8
540.6 553.6 553.5
$ 5,902.7 $ 5,864.6 $ 5,658.2
FOOTNOTE 20
Litigation and Contingencies
The Company is involved in legal proceedings in the ordinary course of its business. These proceedings include claims for damages
arising out of use of the Company’s products, allegations of infringement of intellectual property, commercial disputes and
employment matters, as well as environmental matters. Some of the legal proceedings include claims for punitive as well as
compensatory damages, and certain proceedings may purport to be class actions.
The Company, using current product sales data and historical trends, actuarially calculates the estimate of its exposure for product
liability. The Company has product liability reserves of $33.0 million and $39.7 million as of December 31, 2012 and 2011,
respectively. The Company is insured for product liability claims for amounts in excess of established deductibles and accrues for
the estimated liability as described up to the limits of the deductibles. All other claims and lawsuits are handled on a case-by-case
basis.
Legal Matters
The Company is currently a party to three purported state class actions and one purported national Canadian class action. The
cases include allegations that a certain model car seat sold by an affiliate of the Company did not satisfy all requisite government
safety standards. The Company is vigorously defending all three actions.
In July 2007, the Company acquired all of the outstanding equity interests of PSI Systems, Inc. (“Endicia”), provider of DYMO|
Endicia Internet Postage. Endicia was party to a lawsuit against it alleging patent infringement which was filed on November 22,
2006 in the U.S. District Court for the Central District of California. In this case, Stamps.com sought unspecified damages,
attorneys’ fees and injunctive relief in order to prevent Endicia from continuing to engage in activities that are alleged to infringe
on Stamps.com’s patents. In 2010, the Court entered judgment in favor of the Company terminating the action on summary