Graco 2009 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2009 Graco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Newell Rubbermaid Inc. 2009 Annual Report
50
Noncontrolling Interests
In conjunction with its adoption of the Financial Accounting Standards Board’s (“FASB”) accounting and disclosure guidance for noncontrolling interests,
the Company also adopted certain authoritative guidance applicable for all noncontrolling interests where the Company is required to purchase noncontrolling
interests in a consolidated subsidiary from the noncontrolling interest holder at a specified future date, and the purchase is outside of the Company’s control.
The Company was required to purchase the noncontrolling interest in an international subsidiary at fair value, $28.2 million, in 2009. In connection with the
adoption of this guidance, the Consolidated Balance Sheet as of December 31, 2008 has been adjusted to reflect the estimated fair value of the noncontrolling
interest the Company was required to purchase, $28.2 million, as an increase in other accrued liabilities and as a decrease in retained earnings. The following
table summarizes the impact of the retrospective adoption of the accounting guidance on the Company’s balance sheet as of December 31, 2008 (in millions):
Stockholders’
Equity
Other Other Attributable to
Accrued Noncurrent Retained Noncontrolling
Liabilities Liabilities Earnings Interests
December 31, 2008, as previously reported $ 829.9 $ 854.1 $ 1,634.8 $ —
Minority interest (noncontrolling interests) in consolidated subsidiaries — (2.6) — 2.6
Fair value of noncontrolling interest the Company is required to purchase 28.2 — (28.2) —
December 31, 2008, as adjusted $ 858.1 $ 851.5 $ 1,606.6 $ 2.6
In addition, retained earnings as of December 31, 2006 and 2007 has been adjusted to reflect the estimated fair value of the noncontrolling interest
the Company was required to purchase, $28.2 million, as a decrease in retained earnings. The following table summarizes the impact of the retrospective
adoption of the accounting guidance on the Company’s retained earnings as of December 31, 2007 and 2006 (in millions):
2007 2006
Stockholders’ Stockholders’
Equity Equity
Attributable to Attributable to
Retained Noncontrolling Retained Noncontrolling
Earnings Interests Earnings Interests
As previously reported $1,922.7 $ — $1,690.4 $ —
Minority interest (noncontrolling interests) in consolidated subsidiaries — 3.0 — 5.6
Fair value of noncontrolling interest the Company is required to purchase (28.2) — (28.2) —
As adjusted $1,894.5 $3.0 $1,662.2 $5.6
Subsequent Events
No significant events occurred subsequent to the balance sheet date but prior to the issuance of the financial statements that would have a material
impact on the Consolidated Financial Statements.
Recent Accounting Pronouncements
In June 2009, the FASB issued authoritative guidance changing the way entities account for securitizations and other transfers of financial instruments. In
addition to increased disclosure, this guidance eliminates the concept of qualifying special purpose entities and changes the test for consolidation of
variable interest entities. This guidance is effective for the Company on January 1, 2010. The adoption of the authoritative guidance is not expected to have
a material impact on the Company’s financial statements.
FOOTNOTE 2
ACQUISITIONS
Technical Concepts
On April 1, 2008, the Company acquired 100% of the outstanding limited liability company interests of Technical Concepts Holdings, LLC (“Technical Concepts”)
for $452.7 million, which includes transaction costs and the repayment of Technical Concepts’ outstanding debt obligations at closing. Technical Concepts provides
touch-free and automated restroom hygiene systems in the away-from-home washroom category. The Technical Concepts acquisition gives the Company’s
Rubbermaid Commercial Products business an entry into the away-from-home washroom market and fits within the Company’s strategy of leveraging its existing
sales and marketing capabilities across additional product categories. In addition, with approximately 40% of its sales outside the U.S., Technical Concepts
increased the global footprint of the Company’s Rubbermaid Commercial Products business.