Graco 2009 Annual Report Download - page 64

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Newell Rubbermaid Inc. 2009 Annual Report
62
Net Investment Hedges
The Company enters into cross-currency interest rate swaps associated with investments and intercompany borrowings designated as investments in non-U.S.
subsidiaries. Effective changes in the fair value of the currency agreements resulting from changes in the spot non-U.S. currency exchange rate are recognized
in AOCI in the Consolidated Balance Sheets to offset the change in the carrying value of the investment being hedged. Any changes in the fair value of these
hedges that are the result of ineffectiveness are recognized immediately in interest expense, net in the Consolidated Statements of Operations.
The following table summarizes the pre-tax effects of instruments outstanding during the year ended December 31, 2009 designated as hedges of
investments (in millions):
Gain (loss)
reclassified from Gain (loss)
Derivatives in cash flow hedging relationships AOCI into income recognized in AOCI
Cross-currency interest rate swaps — $(4.4)
The Company paid approximately $17.6 million to settle cross-currency interest rate swaps during the year ended December 31, 2009, and such amount is
included in changes in accrued liabilities and other in the Consolidated Statement of Cash Flows for the year ended December 31, 2009. As of December 31, 2009,
the Company was not a party to any cross-currency interest rate swaps.
The Company did not record any ineffectiveness related to derivative and non-derivative instruments designated as hedges of investments during the
year ended December 31, 2009.
FOOTNOTE 12
COMMITMENTS
Lease Commitments
The Company leases manufacturing, warehouse and other facilities, real estate, transportation, and data processing and other equipment under leases that
expire at various dates through the year 2020. Rent expense, which is recognized on a straight-line basis over the life of the lease term, was $120.2 million,
$129.2 million and $109.7 million in 2009, 2008 and 2007, respectively.
Future minimum rental payments for operating leases with initial or remaining terms in excess of one year are as follows as of December 31, 2009 (in millions):
2010 2011 2012 2013 2014 Thereafter Total
$96.5 $77.3 $60.4 $43.6 $35.8 $90.7 $404.3
Purchase Obligations
The Company enters into certain obligations to purchase finished goods, raw materials, components and services pursuant to legally enforceable and
binding obligations, which include all significant terms.
As of December 31, 2009, the Company’s future estimated total purchase obligations are as follows (in millions):
2010 2011 2012 Total
$340.9 $45.3 $28.4 $414.6