Graco 2009 Annual Report Download - page 38

Newell Rubbermaid Inc. 2009 Annual Report
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The following is a brief description of those three levels:
• Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets.
• Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar
assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations
whose inputs are observable or whose significant value drivers are observable.
• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
The Company’s assets and liabilities adjusted to fair value at least annually are its money market fund investments, included in cash and cash equivalents;
mutual fund investments, included in other assets; and derivative instruments, primarily included in other assets, other accrued liabilities and other noncurrent
liabilities, and these assets and liabilities are therefore subject to the measurement and disclosure requirements outlined in the authoritative guidance. The
Company determines the fair value of its money market fund investments based on the values of the underlying assets (Level 2) and its mutual fund investments
based on quoted market prices (Level 1). The Company generally uses derivatives for hedging purposes, and the Company’s derivatives are primarily foreign
currency forward contracts and interest rate swaps. The Company determines the fair value of its derivative instruments based on Level 2 inputs in the fair value
hierarchy. Level 2 fair value determinations are derived from directly or indirectly observable (market based) information.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Report are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements may relate to, but are not limited to, information or assumptions about the effects of sales (including pricing), income/(loss),
earnings per share, operating income or gross margin improvements or declines, Project Acceleration, capital and other expenditures, working capital, cash
flow, dividends, capital structure, debt to capitalization ratios, availability of financing, interest rates, restructuring, impairment and other charges, potential
losses on divestitures, impact of changes in accounting standards, pending legal proceedings and claims (including environmental matters), future economic
performance, costs and cost savings (including raw material and sourced product inflation, productivity and streamlining), synergies, management’s plans,
goals and objectives for future operations, performance and growth or the assumptions relating to any of the forward-looking statements. These statements
generally are accompanied by words such as “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “will,” “should,” “would” or
similar statements. The Company cautions that forward-looking statements are not guarantees because there are inherent difficulties in predicting future
results. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual
results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the Company’s dependence on the strength
of retail, commercial and industrial sectors of the economy in light of the global economic slowdown; currency fluctuations; competition with other manufacturers
and distributors of consumer products; major retailers’ strong bargaining power; changes in the prices of raw materials and sourced products and the Company’s
ability to obtain raw materials and sourced products in a timely manner from suppliers; the Company’s ability to develop innovative new products and to develop,
maintain and strengthen its end-user brands; the Company’s ability to expeditiously close facilities and move operations while managing foreign regulations
and other impediments; the Company’s ability to manage successfully risks associated with divesting or discontinuing businesses and product lines; the
Company’s ability to implement successfully information technology solutions throughout its organization; the Company’s ability to improve productivity and
streamline operations; the Company’s ability to refinance short-term debt on terms acceptable to it, particularly given the uncertainties in the global credit
markets; changes to the Company’s credit ratings; significant increases in the funding obligations related to the Company’s pension plans due to declining
asset values or otherwise; the imposition of tax liabilities greater than the Company’s provisions for such matters; significant increases in costs to comply
with changes in legal, employment, tax, environmental and other laws and regulations; the risks inherent in the Company’s foreign operations and those matters
set forth in this Report generally and Item 1A to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. In addition, there can be no
assurance that the Company has correctly identified and assessed all of the factors affecting the Company or that the publicly available and other information
the Company receives with respect to these factors is complete or correct.