Graco 2011 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2011 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 87

  • 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
  • 87

56 NEWELL RUBBERMAID 2011 Annual Report
2011 Financial Statements and Related Information
FOOTNOTE 5
INVENTORIES, NET
The components of net inventories were as follows as of December 31, (in millions):
2011 2010
Materials and supplies $130.8 $116.8
Work in process 105.6 101.0
Finished products 463.5 483.8
$699.9 $701.6
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 53.3% and 52.0% of gross inventory costs at
December 31, 2011 and 2010, respectively) was determined by the LIFO method; for the balance, cost was determined using the FIFO
method. As of December 31, 2011 and 2010, LIFO reserves were $41.9 million and $30.1 million, respectively. The net (loss) income
recognized by the Company related to the liquidation of LIFO-based inventories in 2011, 2010 and 2009 was $(0.5) million, $8.7 million
and $16.9 million, respectively.
FOOTNOTE 6
PROPERTY, PLANT & EQUIPMENT, NET
Property, plant and equipment, net consisted of the following as of December 31, (in millions):
2011 2010
Land $ 28.5 $ 32.4
Buildings and improvements 381.0 370.0
Machinery and equipment 1,743.4 1,709.8
2,152.9 2,112.2
Accumulated depreciation (1,601.5) (1,582.9)
$ 551.4 $ 529.3
Depreciation expense was $110.6 million, $118.0 million and $122.1 million in 2011, 2010 and 2009, respectively.
FOOTNOTE 7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
A summary of changes in the Company’s goodwill by reportable business segment is as follows for 2011 and 2010 (in millions):
December 31, December 31,
2010 Impairment Other Foreign 2011
Segment Balance Acquisitions Charges Adjustments (1) Currency Balance (2)
Home & Family $ 662.6 $ — $(305.5) $ — $ 3.8 $ 360.9
Office Products 1,135.7 2.2 — 10.0 (10.4) 1,137.5
Tools, Hardware & Commercial Products 951.2 — (64.7) (19.3) 0.4 867.6
$2,749.5 $2.2 $(370.2) $ (9.3) $ (6.2) $2,366.0
December 31, December 31,
2009 Impairment Other Foreign 2010
Segment Balance Acquisitions Charges Adjustments (1) Currency Balance (2)
Home & Family $ 648.7 $ — $ — $ — $ 13.9 $ 662.6
Office Products 1,149.5 — — 1.5 (15.3) 1,135.7
Tools, Hardware & Commercial Products 956.1 — — — (4.9) 951.2
$2,754.3 $ — $ — $1.5 $ (6.3) $2,749.5
(1) Office Products includes payments of $10.0 million and $1.5 million in 2011 and 2010, respectively, for contingent payments relating to the Company’s acquisition
of PSI Systems, Inc. (“Endicia”) in 2007. The contingent payments are based on Endicia’s post-acquisition revenues.
(2) Cumulative impairment charges relating to goodwill since January 1, 2002 were $1,642.4 million and $1,272.2 million as of December 31, 2011 and 2010, respectively.
Of these amounts, $538.0 million was included in cumulative effect of accounting change, and $298.9 million was included in discontinued operations.