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Newell Rubbermaid Inc. 2009 Annual Report
54
FOOTNOTE 5
INVENTORIES, NET
The components of net inventories were as follows as of December 31, (in millions):
2009 2008
Materials and supplies $118.5 $143.3
Work in process 141.6 174.8
Finished products 428.1 594.0
$688.2 $912.1
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 51.7% and 58.4% of gross inventory costs at December 31, 2009 and 2008, respectively)
was determined by the LIFO method; for the balance, cost was determined using the FIFO method. As of December 31, 2009 and 2008, LIFO reserves were
$24.2 million and $46.5 million, respectively. The income recognized by the Company related to the liquidation of LIFO-based inventories in 2009 was $16.9 million,
and the income or cost recognized by the Company related to the build-up or liquidation of LIFO-based inventories in 2008 and 2007 was not material.
FOOTNOTE 6
PROPERTY, PLANT & EQUIPMENT, NET
Property, plant and equipment, net consisted of the following as of December 31, (in millions):
2009 2008
Land $ 39.4 $ 44.4
Buildings and improvements 414.7 412.8
Machinery and equipment 1,723.5 1,795.0
2,177.6 2,252.2
Accumulated depreciation (1,599.5) (1,621.5)
$ 578.1 $ 630.7
Depreciation expense was $122.1 million, $131.1 million and $143.2 million in 2009, 2008 and 2007, respectively.