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Newell Rubbermaid Inc. 2009 Annual Report
76
The following tables present the Company’s non-pension related financial assets and liabilities which are measured at fair value on a recurring basis
and that are subject to the disclosure requirements of the authoritative guidance as of December 31, 2009 and 2008 (in millions):
Quoted Prices in
Fair Value as Active Markets Significant Other Significant
of December 31, for Identical Observable Unobservable
Description 2009 Assets (Level 1) Inputs (Level 2) Inputs (Level 3)
Assets
Money market fund investments $ 14.6 $ — $ 14.6 $ —
Investment securities, including mutual funds 31.6 6.6 25.0 —
Interest rate swaps 20.9 — 20.9 —
Foreign currency derivatives 1.3 — 1.3 —
Total $ 68.4 $ 6.6 $ 61.8 $ —
Liabilities
Interest rate swaps $ 2.5 $ — $ 2.5 $ —
Foreign currency derivatives 1.5 — 1.5 —
Total $ 4.0 $ — $ 4.0 $ —
Quoted Prices in
Fair Value as Active Markets Significant Other Significant
of December 31, for Identical Observable Unobservable
Description 2008 Assets (Level 1) Inputs (Level 2) Inputs (Level 3)
Assets
Money market fund investments $ 42.1 $ — $ 42.1 $ —
Investment securities, including mutual funds 11.7 5.3 6.4 —
Interest rate swaps 62.3 — 62.3 —
Foreign currency derivatives 6.9 — 6.9 —
Total $ 123.0 $ 5.3 $ 117.7 $ —
Liabilities
Foreign currency derivatives $ 130.1 $ — $ 130.1 $ —
Total $ 130.1 $ — $ 130.1 $ —
On January 1, 2009, the Company adopted the provisions of the fair value measurement accounting and disclosure guidance related to nonfinancial
assets and liabilities recognized or disclosed at fair value on a nonrecurring basis. The Company’s nonfinancial assets which are measured at fair value on
a nonrecurring basis include property, plant and equipment, goodwill and other intangible assets. During the year ended December 31, 2009, the Company
recorded $32.4 million of impairments associated with plans to dispose of certain property, plant and equipment. The Company generally uses projected
cash flows, discounted as necessary, to estimate the fair values of the impaired assets using key inputs such as management’s projections of cash flows on
a held-and-used basis (if applicable), management’s projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements
fall in level 3 of the fair value hierarchy. These assets and certain liabilities are measured at fair value on a nonrecurring basis as part of the Company’s
impairment assessments and as circumstances require.
FOOTNOTE 19
INDUSTRY SEGMENT INFORMATION
In the first quarter of 2009, the business units within the previously reported Cleaning, Organization & Décor segment were reorganized into the Tools & Hardware
and Home & Family segments. The Rubbermaid Commercial Products business unit was transferred to the newly named Tools, Hardware & Commercial Products
segment, and the Rubbermaid Consumer Products and Décor business units were transferred to the Home & Family segment. The reorganization allows the Company
to realize structural selling, general and administrative efficiencies. The Company’s reportable segments reflect the Company’s focus on building large consumer
brands, promoting organizational integration, achieving operating efficiencies in sourcing and distribution and leveraging its understanding of similar consumer
segments and distribution channels.