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Newell Rubbermaid Inc. 2007 Annual Report
56
FOOTNOTE 5
Inventories, Net
The components of net inventories were as follows as of December 31, (in millions):
2007 2006
Materials and supplies $178.8 $172.8
Work in process 179.8 158.6
Finished products 581.8 519.2
$940.4 $850.6
Inventory costs include direct materials, direct labor and manufacturing overhead, or when finished goods are sourced, the cost is the amount paid to
the third-party. Cost of certain domestic inventories (approximately 59.2% and 59.6% of gross inventory costs at December 31, 2007 and 2006, respectively)
was determined by the LIFO method; for the balance, cost was determined using the FIFO method. As of December 31, 2007 and 2006, LIFO reserves were
$40.0 million and $38.1 million, respectively. The Company recognized a gain (loss) of $3.6 million, ($2.7) million, and $0.1 million in 2007, 2006 and 2005,
respectively, related to the liquidation of LIFO based inventories.
FOOTNOTE 6
Property, Plant & Equipment, Net
Property, plant and equipment, net consisted of the following as of December 31, (in millions):
2007 2006
Land $ 36.5 $ 34.1
Buildings and improvements 446.0 452.9
Machinery and equipment 1,844.9 1,876.7
2,327.4 2,363.7
Accumulated depreciation (1,638.8) (1,616.8)
$ 688.6 $ 746.9
Depreciation expense was $143.2 million, $159.5 million and $180.4 million in 2007, 2006 and 2005, respectively.