NEWELL BRANDS INC.
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2022 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [3] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 510 | | $ | 55 | | $ | (5) | | $ | 50 | | 9.8 | % | $ | 4 | | $ | 54 | | 10.6 | % |
| HOME APPLIANCES | 340 | | (18) | | — | | (18) | | (5.3) | % | 4 | | (14) | | (4.1) | % |
| HOME SOLUTIONS | 500 | | 61 | | (4) | | 57 | | 11.4 | % | 11 | | 68 | | 13.6 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,350 | | 98 | | (9) | | 89 | | 6.6 | % | 19 | | 108 | | 8.0 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 650 | | 130 | | 8 | | 138 | | 21.2 | % | 7 | | 145 | | 22.3 | % |
| OUTDOOR AND RECREATION | 388 | | 45 | | 1 | | 46 | | 11.9 | % | 4 | | 50 | | 12.9 | % |
| CORPORATE | — | | (56) | | — | | (56) | | — | % | 7 | | (49) | | — | % |
| | $ | 2,388 | | $ | 217 | | $ | — | | $ | 217 | | 9.1 | % | $ | 37 | | $ | 254 | | 10.6 | % |
| | | | | | | | | |
| | Three Months Ended June 30, 2022 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [4] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 429 | | $ | 43 | | $ | 4 | | $ | 47 | | 11.0 | % | $ | 1 | | $ | 48 | | 11.2 | % |
| HOME APPLIANCES | 346 | | 15 | | — | | 15 | | 4.3 | % | 2 | | 17 | | 4.9 | % |
| HOME SOLUTIONS | 467 | | 5 | | 7 | | 12 | | 2.6 | % | 10 | | 22 | | 4.7 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,242 | | 63 | | 11 | | 74 | | 6.0 | % | 13 | | 87 | | 7.0 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 865 | | 247 | | (2) | | 245 | | 28.3 | % | 3 | | 248 | | 28.7 | % |
| OUTDOOR AND RECREATION | 427 | | 46 | | 2 | | 48 | | 11.2 | % | 6 | | 54 | | 12.6 | % |
| CORPORATE | — | | (39) | | — | | (39) | | — | % | 5 | | (34) | | — | % |
| | $ | 2,534 | | $ | 317 | | $ | 11 | | $ | 328 | | 12.9 | % | $ | 27 | | $ | 355 | | 14.0 | % |
| | | | | | | | | |
| | Three Months Ended September 30, 2022 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [5] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 397 | | $ | 28 | | $ | 3 | | $ | 31 | | 7.8 | % | $ | 3 | | $ | 34 | | 8.6 | % |
| HOME APPLIANCES | 305 | | (20) | | — | | (20) | | (6.6) | % | 17 | | (3) | | (1.0) | % |
| HOME SOLUTIONS | 510 | | (88) | | 2 | | (86) | | (16.9) | % | 118 | | 32 | | 6.3 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,212 | | (80) | | 5 | | (75) | | (6.2) | % | 138 | | 63 | | 5.2 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 751 | | 120 | | 2 | | 122 | | 16.2 | % | 28 | | 150 | | 20.0 | % |
| OUTDOOR AND RECREATION | 289 | | 8 | | (2) | | 6 | | 2.1 | % | 10 | | 16 | | 5.5 | % |
| CORPORATE | — | | (13) | | — | | (13) | | — | % | 18 | | 5 | | — | % |
| | $ | 2,252 | | $ | 35 | | $ | 5 | | $ | 40 | | 1.8 | % | $ | 194 | | $ | 234 | | 10.4 | % |
NEWELL BRANDS INC.
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2022 |
| | | As Computed
Under LIFO | | As Reported | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [6] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 355 | | $ | 18 | | $ | (3) | | $ | 15 | | 4.2 | % | $ | 1 | | $ | 16 | | 4.5 | % |
| HOME APPLIANCES | 399 | | (24) | | — | | (24) | | (6.0) | % | 25 | | 1 | | 0.3 | % |
| HOME SOLUTIONS | 636 | | (285) | | (6) | | (291) | | (45.8) | % | 332 | | 41 | | 6.4 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,390 | | (291) | | (9) | | (300) | | (21.6) | % | 358 | | 58 | | 4.2 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 684 | | 84 | | 4 | | 88 | | 12.9 | % | 10 | | 98 | | 14.3 | % |
| OUTDOOR AND RECREATION | 211 | | (15) | | 1 | | (14) | | (6.6) | % | 10 | | (4) | | (1.9) | % |
| CORPORATE | — | | (47) | | — | | (47) | | — | % | 8 | | (39) | | — | % |
| | $ | 2,285 | | $ | (269) | | $ | (4) | | $ | (273) | | (11.9) | % | $ | 386 | | $ | 113 | | 4.9 | % |
| | | | | | | | | |
| | Twelve Months Ended December 31, 2022 |
| | | As Computed
Under LIFO | | As Reported | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [7] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 1,691 | | $ | 144 | | $ | (1) | | $ | 143 | | 8.5 | % | $ | 9 | | $ | 152 | | 9.0 | % |
| HOME APPLIANCES | 1,390 | | (47) | | — | | (47) | | (3.4) | % | 48 | | 1 | | 0.1 | % |
| HOME SOLUTIONS | 2,113 | | (307) | | (1) | | (308) | | (14.6) | % | 471 | | 163 | | 7.7 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 5,194 | | (210) | | (2) | | (212) | | (4.1) | % | 528 | | 316 | | 6.1 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 2,950 | | 581 | | 12 | | 593 | | 20.1 | % | 48 | | 641 | | 21.7 | % |
| OUTDOOR AND RECREATION | 1,315 | | 84 | | 2 | | 86 | | 6.5 | % | 30 | | 116 | | 8.8 | % |
| CORPORATE | — | | (155) | | — | | (155) | | — | % | 38 | | (117) | | — | % |
| | $ | 9,459 | | $ | 300 | | $ | 12 | | $ | 312 | | 3.3 | % | $ | 644 | | $ | 956 | | 10.1 | % |
[1]Effective January 1, 2023, the Company will combine its previously reported Commercial Solutions, Home Appliances and Home Solutions segments into one operating segment, Home and Commercial Solutions.
[2]Reflects the impact of the Company's election to change its method of accounting for certain inventory in the U.S. from the last-in, first-out (“LIFO”) method to first-in, first-out (“FIFO”) method.
[3]The three months ended March 31, 2022 normalized items consist of $18 million of acquisition amortization costs; $11 million of restructuring and restructuring-related charges; $4 million related to expenses for certain legal proceedings; $3 million of costs related to completed divestitures and $1 million related to Argentina hyperinflationary adjustment.
[4]The three months ended June 30, 2022 normalized items consist of $17 million of acquisition amortization costs; $6 million of restructuring and restructuring-related charges; $2 million related to expenses for certain legal proceedings; $1 million of costs related to completed divestitures and $1 million related to Argentina hyperinflationary adjustment.
[5]The three months ended September 30, 2022 normalized items consist of $148 million of non-cash impairment charges for indefinite-lived intangible assets; $16 million of acquisition amortization costs; $16 million related to expenses for certain legal proceedings; $12 million of restructuring and restructuring-related charges; $1 million of costs related to completed divestitures and $1 million related to Argentina hyperinflationary adjustment.
[6]The three months ended December 31, 2022 normalized items consist of $326 million of impairment of goodwill in the Home Solutions segment and indefinite-lived intangible assets in the Home Solutions and Learning and Development segments; $16 million of acquisition amortization costs; $15 million of prior year impact related to an indirect tax reserve for an international entity; $10 million of restructuring and restructuring-related charges; $9 million of bad debt reserve related to an international customer; $8 million related to expenses for certain legal proceedings; $1 million of costs related to completed divestitures and $1 million Argentina hyperinflationary adjustment.
[7]The twelve months ended December 31, 2022 normalized items consist of $474 million of impairment of goodwill in the Home Solutions segments and indefinite-lived intangible assets in the Home Appliances, Home Solutions and Learning and Development segments; $67 million of acquisition amortization; $39 million of restructuring and restructuring-related costs; $30 million related to expenses for certain legal proceedings; $15 million of prior year impact related to an indirect tax reserve for an international entity; $9 million of bad debt reserve related to an international customer; $6 million of costs related to completed divestitures and $4 million of Argentina hyperinflationary adjustment.
NEWELL BRANDS INC.
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2021 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [3] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 471 | | $ | 50 | | $ | 1 | | $ | 51 | | 10.8 | % | $ | 3 | | $ | 54 | | 11.5 | % |
| HOME APPLIANCES | 360 | | 3 | | — | | 3 | | 0.8 | % | 5 | | 8 | | 2.2 | % |
| HOME SOLUTIONS | 504 | | 61 | | 5 | | 66 | | 13.1 | % | 15 | | 81 | | 16.1 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,335 | | 114 | | 6 | | 120 | | 9.0 | % | 23 | | 143 | | 10.7 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 617 | | 110 | | (1) | | 109 | | 17.7 | % | 4 | | 113 | | 18.3 | % |
| OUTDOOR AND RECREATION | 336 | | 15 | | 1 | | 16 | | 4.8 | % | 5 | | 21 | | 6.3 | % |
| CORPORATE | — | | (47) | | — | | (47) | | — | % | 6 | | (41) | | — | % |
| | $ | 2,288 | | $ | 192 | | $ | 6 | | $ | 198 | | 8.7 | % | $ | 38 | | $ | 236 | | 10.3 | % |
| | | | | | | | | |
| | Three Months Ended June 30, 2021 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [4] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 493 | | $ | 43 | | $ | 19 | | $ | 62 | | 12.6 | % | $ | 4 | | $ | 66 | | 13.4 | % |
| HOME APPLIANCES | 394 | | 13 | | — | | 13 | | 3.3 | % | 6 | | 19 | | 4.8 | % |
| HOME SOLUTIONS | 525 | | 53 | | 7 | | 60 | | 11.4 | % | 11 | | 71 | | 13.5 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,412 | | 109 | | 26 | | 135 | | 9.6 | % | 21 | | 156 | | 11.0 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 844 | | 217 | | (2) | | 215 | | 25.5 | % | 2 | | 217 | | 25.7 | % |
| OUTDOOR AND RECREATION | 453 | | 48 | | — | | 48 | | 10.6 | % | 4 | | 52 | | 11.5 | % |
| CORPORATE | — | | (69) | | — | | (69) | | — | % | 9 | | (60) | | — | % |
| | $ | 2,709 | | $ | 305 | | $ | 24 | | $ | 329 | | 12.1 | % | $ | 36 | | $ | 365 | | 13.5 | % |
| | | | | | | | | |
| | Three Months Ended September 30, 2021 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [5] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 486 | | $ | 18 | | $ | 18 | | $ | 36 | | 7.4 | % | $ | 3 | | $ | 39 | | 8.0 | % |
| HOME APPLIANCES | 443 | | 19 | | — | | 19 | | 4.3 | % | 5 | | 24 | | 5.4 | % |
| HOME SOLUTIONS | 598 | | 75 | | 12 | | 87 | | 14.5 | % | 11 | | 98 | | 16.4 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,527 | | 112 | | 30 | | 142 | | 9.3 | % | 19 | | 161 | | 10.5 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 869 | | 195 | | 5 | | 200 | | 23.0 | % | 2 | | 202 | | 23.2 | % |
| OUTDOOR AND RECREATION | 391 | | 27 | | — | | 27 | | 6.9 | % | 7 | | 34 | | 8.7 | % |
| CORPORATE | — | | (53) | | — | | (53) | | — | % | 8 | | (45) | | — | % |
| | $ | 2,787 | | $ | 281 | | $ | 35 | | $ | 316 | | 11.3 | % | $ | 36 | | $ | 352 | | 12.6 | % |
NEWELL BRANDS INC.
FINANCIAL WORKSHEET - SEGMENT REPORTING
(Amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2021 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [6] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 503 | | $ | 12 | | $ | (2) | | $ | 10 | | 2.0 | % | $ | 36 | | $ | 46 | | 9.1 | % |
| HOME APPLIANCES | 541 | | 35 | | — | | 35 | | 6.5 | % | 6 | | 41 | | 7.6 | % |
| HOME SOLUTIONS | 759 | | 124 | | — | | 124 | | 16.3 | % | 9 | | 133 | | 17.5 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 1,803 | | 171 | | (2) | | 169 | | 9.4 | % | 51 | | 220 | | 12.2 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 698 | | 72 | | 4 | | 76 | | 10.9 | % | 31 | | 107 | | 15.3 | % |
| OUTDOOR AND RECREATION | 304 | | (1) | | — | | (1) | | (0.3) | % | 9 | | 8 | | 2.6 | % |
| CORPORATE | — | | (74) | | — | | (74) | | — | % | 20 | | (54) | | — | % |
| | $ | 2,805 | | $ | 168 | | $ | 2 | | $ | 170 | | 6.1 | % | $ | 111 | | $ | 281 | | 10.0 | % |
| | | | | | | | | |
| | Twelve Months Ended December 31, 2021 |
| | | As Reported | | As Adjusted | | | Normalized | |
| | | Operating | Impact of | Operating | Adjusted | | Operating | Normalized |
| | | Income | Change to | Income | Operating | Normalized | Income | Operating |
| | Net Sales | (Loss) | FIFO [2] | (Loss) | Margin | Items [7] | (Loss) | Margin |
| COMMERCIAL SOLUTIONS | $ | 1,953 | | $ | 123 | | $ | 36 | | $ | 159 | | 8.1 | % | $ | 46 | | $ | 205 | | 10.5 | % |
| HOME APPLIANCES | 1,738 | | 70 | | — | | 70 | | 4.0 | % | 22 | | 92 | | 5.3 | % |
| HOME SOLUTIONS | 2,386 | | 313 | | 24 | | 337 | | 14.1 | % | 46 | | 383 | | 16.1 | % |
| HOME AND COMMERCIAL SOLUTIONS [1] | 6,077 | | 506 | | 60 | | 566 | | 9.3 | % | 114 | | 680 | | 11.2 | % |
| | | | | | | | | |
| LEARNING AND DEVELOPMENT | 3,028 | | 594 | | 6 | | 600 | | 19.8 | % | 39 | | 639 | | 21.1 | % |
| OUTDOOR AND RECREATION | 1,484 | | 89 | | 1 | | 90 | | 6.1 | % | 25 | | 115 | | 7.7 | % |
| CORPORATE | — | | (243) | | — | | (243) | | — | % | 43 | | (200) | | — | % |
| | $ | 10,589 | | $ | 946 | | $ | 67 | | $ | 1,013 | | 9.6 | % | $ | 221 | | $ | 1,234 | | 11.7 | % |
[1]Effective January 1, 2023, the Company will combine its previously reported Commercial Solutions, Home Appliances and Home Solutions segments into one operating segment, Home and Commercial Solutions.
[2]Reflects the impact of the Company's election to change its method of accounting for certain inventory in the U.S. from the last-in, first-out (“LIFO”) method to first-in, first-out (“FIFO”) method.
[3]The three months ended March 31, 2021 normalized items consist of $21 million of acquisition amortization costs; $13 million of restructuring and restructuring-related charges; $3 million of expenses for certain legal proceedings and divestiture costs related to completed divestitures and $1 million related to Argentina hyperinflationary adjustment.
[4]The three months ended June 30, 2021 normalized items consist of $19 million of acquisition amortization costs; $8 million of restructuring and restructuring-related charges; $6 million of expenses for certain legal proceedings; $2 million of costs releated to completed divestitures and $1 million related to Argentina hyperinflationary adjustment.
[5]The three months ended September 30, 2021 normalized items consist of $19 million of acquisition amortization costs; $13 million of restructuring and restructuring-related charges; $3 million of expenses for certain legal proceedings and $1 million related to Argentina hyperinflationary adjustment.
[6]The three months ended December 31, 2021 normalized items consist of $60 million of non-cash impairment charges for indefinite-lived intangible assets in the Commercial Solutions and Learning and Development segments; $19 million of acquisition amortization costs; $12 million of restructuring and restructuring-related charges; $18 million of costs related to completed divestitures and $2 million of expenses for certain legal proceedings.
[7]The twelve months ended December 31, 2021 normalized items consist of $78 million of acquisition amortization costs; $60 million of non-cash impairment charges for indefinite-lived intangible assets in the Commercial Solutions and Learning and Development segments; $46 million of restructuring and restructuring-related charges; $21 million of costs related to completed divestitures; $14 million of expenses for certain legal proceedings and $2 million related to Argentina hyperinflationary adjustment.
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended March 31, 2022 |
| As Reported | | | | Impact of | | As | | | | Non-GAAP |
| Under | | Impact of | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | Revision [2] | | FIFO [3] | | GAAP Measure | | Adjustments [5] | | Normalized |
| Net sales | $ | 2,388 | | | $ | — | | | $ | — | | | $ | 2,388 | | | $ | — | | | $ | 2,388 | |
| Cost of products sold | 1,648 | | | — | | | — | | | 1,648 | | | (6) | | | 1,642 | |
| Gross profit | 740 | | | — | | | — | | | 740 | | | 6 | | | 746 | |
| 31.0 | % | | | | | | | | | | 31.2 | % |
| Selling, general and administrative expenses | 518 | | | — | | | — | | | 518 | | | (26) | | | 492 | |
| 21.7 | % | | | | | | | | | | 20.6 | % |
| Restructuring costs, net | 5 | | | — | | | — | | | 5 | | | (5) | | | — | |
| | | | | | | | | | | |
| Operating income | 217 | | | — | | | — | | | 217 | | | 37 | | | 254 | |
| 9.1 | % | | | | | | | | | | 10.6 | % |
| | | | | | | | | | | |
| Non-operating expenses: | | | | | | | | | | | |
| Interest expense, net | 59 | | | — | | | — | | | 59 | | | — | | | 59 | |
| | | | | | | | | | | |
| Other (income) expense, net | (124) | | | 6 | | | — | | | (118) | | | 129 | | | 11 | |
| Income (loss) before income taxes | 282 | | | (6) | | | — | | | 276 | | | (92) | | | 184 | |
Income tax provision (benefit) [4] | 48 | | | — | | | — | | | 48 | | | (13) | | | 35 | |
| Net income (loss) | $ | 234 | | | $ | (6) | | | $ | — | | | $ | 228 | | | $ | (79) | | | $ | 149 | |
| | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | |
| Basic | 421.9 | | | | | | | 421.9 | | | | | 421.9 | |
| Diluted | 424.7 | | | | | | | 424.7 | | | | | 424.7 | |
| | | | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | | | | |
| Basic | $ | 0.55 | | | | | | | $ | 0.54 | | | | | $ | 0.35 | |
| Diluted | $ | 0.55 | | | | | | | $ | 0.54 | | | | | $ | 0.35 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended June 30, 2022 |
| As Reported | | | | Impact of | | As | | | | Non-GAAP |
| Under | | Impact of | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | Revision [2] | | FIFO [3] | | GAAP Measure | | Adjustments [6] | | Normalized |
| Net sales | $ | 2,534 | | | $ | — | | | $ | — | | | $ | 2,534 | | | $ | — | | | $ | 2,534 | |
| Cost of products sold | 1,709 | | | — | | | (11) | | | 1,698 | | | (4) | | | 1,694 | |
| Gross profit | 825 | | | — | | | 11 | | | 836 | | | 4 | | | 840 | |
| 32.6 | % | | | | | | | | | | 33.1 | % |
| Selling, general and administrative expenses | 504 | | | — | | | — | | | 504 | | | (19) | | | 485 | |
| 19.9 | % | | | | | | | | | | 19.1 | % |
| Restructuring costs, net | 4 | | | — | | | — | | | 4 | | | (4) | | | — | |
| | | | | | | | | | | |
| Operating income | 317 | | | — | | | 11 | | | 328 | | | 27 | | | 355 | |
| 12.5 | % | | | | | | | | | | 14.0 | % |
| | | | | | | | | | | |
| Non-operating expenses: | | | | | | | | | | | |
| Interest expense, net | 55 | | | — | | | — | | | 55 | | | — | | | 55 | |
| | | | | | | | | | | |
| Other (income) expense, net | 8 | | | 13 | | | — | | | 21 | | | 3 | | | 24 | |
| Income (loss) before income taxes | 254 | | | (13) | | | 11 | | | 252 | | | 24 | | | 276 | |
Income tax provision (benefit) [4] | 50 | | | — | | | 3 | | | 53 | | | (9) | | | 44 | |
| Net income (loss) | $ | 204 | | | $ | (13) | | | $ | 8 | | | $ | 199 | | | $ | 33 | | | $ | 232 | |
| | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | |
| Basic | 413.8 | | | | | | | 413.8 | | | | | 413.8 | |
| Diluted | 415.7 | | | | | | | 415.7 | | | | | 415.7 | |
| | | | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | | | | |
| Basic | $ | 0.49 | | | | | | | $ | 0.48 | | | | | $ | 0.56 | |
| Diluted | $ | 0.49 | | | | | | | $ | 0.48 | | | | | $ | 0.56 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended September 30, 2022 |
| As Reported | | | | Impact of | | As | | | | Non-GAAP |
| Under | | Impact of | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | Revision [2] | | FIFO [3] | | GAAP Measure | | Adjustments [7] | | Normalized |
| Net sales | $ | 2,252 | | | $ | — | | | $ | — | | | $ | 2,252 | | | $ | — | | | $ | 2,252 | |
| Cost of products sold | 1,599 | | | — | | | (5) | | | 1,594 | | | (8) | | | 1,586 | |
| Gross profit | 653 | | | — | | | 5 | | | 658 | | | 8 | | | 666 | |
| 29.0 | % | | | | | | | | | | 29.6 | % |
| Selling, general and administrative expenses | 467 | | | — | | | — | | | 467 | | | (35) | | | 432 | |
| 20.7 | % | | | | | | | | | | 19.2 | % |
| Restructuring costs, net | 3 | | | — | | | — | | | 3 | | | (3) | | | — | |
| Impairment of goodwill, intangibles and other assets | 148 | | | — | | | — | | | 148 | | | (148) | | | — | |
| Operating income | 35 | | | — | | | 5 | | | 40 | | | 194 | | | 234 | |
| 1.6 | % | | | | | | | | | | 10.4 | % |
| | | | | | | | | | | |
| Non-operating expenses: | | | | | | | | | | | |
| Interest expense, net | 57 | | | — | | | — | | | 57 | | | — | | | 57 | |
| | | | | | | | | | | |
| Other (income) expense, net | 8 | | | 16 | | | — | | | 24 | | | 2 | | | 26 | |
| Income (loss) before income taxes | (30) | | | (16) | | | 5 | | | (41) | | | 192 | | | 151 | |
Income tax provision (benefit) [4] | (61) | | | — | | | 1 | | | (60) | | | 3 | | | (57) | |
| Net income (loss) | $ | 31 | | | $ | (16) | | | $ | 4 | | | $ | 19 | | | $ | 189 | | | $ | 208 | |
| | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | |
| Basic | 413.6 | | | | | | | 413.6 | | | | | 413.6 | |
| Diluted | 414.6 | | | | | | | 414.6 | | | | | 414.6 | |
| | | | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | | | | |
| Basic | $ | 0.07 | | | | | | | $ | 0.05 | | | | | $ | 0.50 | |
| Diluted | $ | 0.07 | | | | | | | $ | 0.05 | | | | | $ | 0.50 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended December 31, 2022 |
| As Computed | | | | Impact of | | As | | | | Non-GAAP |
| Under | | Impact of | | Change to | | Reported | | Normalization | | Measure |
| LIFO [1] | | Revision [2] | | FIFO [3] | | GAAP Measure | | Adjustments [8] | | Normalized |
| Net sales | $ | 2,285 | | | $ | — | | | $ | — | | | $ | 2,285 | | | $ | — | | | $ | 2,285 | |
| Cost of products sold | 1,681 | | | — | | | 4 | | | 1,685 | | | (8) | | | 1,677 | |
| Gross profit | 604 | | | — | | | (4) | | | 600 | | | 8 | | | 608 | |
| 26.4 | % | | | | | | | | | | 26.6 | % |
| Selling, general and administrative expenses | 544 | | | — | | | — | | | 544 | | | (49) | | | 495 | |
| 23.8 | % | | | | | | | | | | 21.7 | % |
| Restructuring costs, net | 3 | | | — | | | — | | | 3 | | | (3) | | | — | |
| Impairment of goodwill, intangibles and other assets | 326 | | | — | | | — | | | 326 | | | (326) | | | — | |
| Operating income (loss) | (269) | | | — | | | (4) | | | (273) | | | 386 | | | 113 | |
| (11.8) | % | | | | | | | | | | 4.9 | % |
| | | | | | | | | | | |
| Non-operating expenses: | | | | | | | | | | | |
| Interest expense, net | 64 | | | — | | | — | | | 64 | | | — | | | 64 | |
| Loss on extinguishment of debt | 1 | | | — | | | — | | | 1 | | | (1) | | | — | |
| Other (income) expense, net | (8) | | | — | | | — | | | (8) | | | (3) | | | (11) | |
| Income (loss) before income taxes | (326) | | | — | | | (4) | | | (330) | | | 390 | | | 60 | |
Income tax provision (benefit) [4] | (80) | | | — | | | (1) | | | (81) | | | 76 | | | (5) | |
| Net income (loss) | $ | (246) | | | $ | — | | | $ | (3) | | | $ | (249) | | | $ | 314 | | | $ | 65 | |
| | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | |
| Basic | 413.6 | | | | | | | 413.6 | | | | | 413.6 | |
| Diluted | 413.6 | | | | | | | 413.6 | | | | | 414.9 | |
| | | | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | | | | |
| Basic | $ | (0.59) | | | | | | | $ | (0.60) | | | | | $ | 0.16 | |
| Diluted | $ | (0.59) | | | | | | | $ | (0.60) | | | | | $ | 0.16 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
[1]Refer to “Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items” for the three months ended March 31, 2022, June 30, 2022 and September 30, 2022, on the Company’s Forms 8-K furnished on April 29, 2022, July 29, 2022 and October 28, 2022, respectively. For the three and twelve months ended December 31, 2022, refer to “Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items” on the Company's Forms 8-K furnished on February 10, 2023.
[2]Reflects the adjustments to revise the Company's Condensed Consolidated Statement of Operations for an incorrect functional currency designation for one of its legal entities.
[3]Reflects the impact of the Company's election to change its method of accounting for certain inventory in the U.S. from the last-in, first-out (“LIFO”) method to first-in, first-out (“FIFO”) method.
[4]The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pretax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense. Also includes income tax expense that results from the amortization of a prior year normalized tax benefit.
[5]The three months ended March 31, 2022 normalized items consist of $18 million of acquisition amortization; $11 million of restructuring and restructuring-related costs; $4 related to expenses for certain legal proceedings; $3 million of costs related to completed divestitures; $2 million of Argentina hyperinflationary adjustment and $130 million gain on disposition of business.
[6]The three months ended June 30, 2022 normalized items consist of $17 million of acquisition amortization costs; $6 million of restructuring and restructuring-related charges; $2 million of expenses for certain legal proceedings; $1 million of costs related to completed divestitures; $2 million of Argentina hyperinflationary adjustment; $3 million gain on disposition of business and $1 million gain due to changes in fair market value of investments.
[7]The three months ended September 30, 2022 normalized items consist of $148 million of impairment of goodwill in the Home Solutions segment and other indefinite-lived intangible assets in the Home Appliances, Home Solutions and Learning and Development segments; $16 million of acquisition amortization costs; $16 million related to expenses for certain legal proceedings; $12 million of restructuring and restructuring-related charges; $1 million of costs related to completed divestitures; $3 million of Argentina hyperinflationary adjustment; $3 million of gain on disposition of business and $1 million of gain due to changes in fair market value of investments.
[8]The three months ended December 31, 2022 normalized items consist of $326 million of impairment of goodwill in the Home Solutions segment and indefinite-lived intangible assets in the Home Solutions and Learning and Development segments; $16 million of acquisition amortization costs; $15 million of prior year impact related to an indirect tax reserve for an international entity; $10 million of restructuring and restructuring-related charges; $9 million of bad debt reserve related to an international customer; $8 million related to expenses for certain legal proceedings; $3 million of Argentina hyperinflationary adjustment; $1 million of costs related to completed divestitures; $1 million of debt extinguishment costs; $1 million loss due to changes in fair market value of investments.
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended March 31, 2021 |
| As Reported | | Impact of | | As | | | | Non-GAAP |
| Under | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | FIFO [2] | | GAAP Measure | | Adjustments [4] | | Normalized |
| Net sales | $ | 2,288 | | | $ | — | | | $ | 2,288 | | | $ | — | | | $ | 2,288 | |
| Cost of products sold | 1,557 | | | (6) | | | 1,551 | | | (6) | | | 1,545 | |
| Gross profit | 731 | | | 6 | | | 737 | | | 6 | | | 743 | |
| 31.9 | % | | | | | | | | 32.5 | % |
| Selling, general and administrative expenses | 534 | | | — | | | 534 | | | (27) | | | 507 | |
| 23.3 | % | | | | | | | | 22.2 | % |
| Restructuring costs, net | 5 | | | — | | | 5 | | | (5) | | | — | |
| Impairment of goodwill, intangibles and other assets | — | | | — | | | — | | | — | | | — | |
| Operating income | 192 | | | 6 | | | 198 | | | 38 | | | 236 | |
| 8.4 | % | | | | | | | | 10.3 | % |
| | | | | | | | | |
| Non-operating expenses: | | | | | | | | | |
| Interest expense, net | 67 | | | — | | | 67 | | | — | | | 67 | |
| Loss on extinguishment of debt | — | | | — | | | — | | | — | | | — | |
| Other (income) expense, net | (1) | | | — | | | (1) | | | (1) | | | (2) | |
| Income before income taxes | 126 | | | 6 | | | 132 | | | 39 | | | 171 | |
Income tax provision [3] | 37 | | | 2 | | | 39 | | | — | | | 39 | |
| Net income | $ | 89 | | | $ | 4 | | | $ | 93 | | | $ | 39 | | | $ | 132 | |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | |
| Basic | 424.9 | | | | | 424.9 | | | | | 424.9 | |
| Diluted | 427.6 | | | | | 427.6 | | | | | 427.6 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | | |
| Basic | $ | 0.21 | | | | | $ | 0.22 | | | | | $ | 0.31 | |
| Diluted | $ | 0.21 | | | | | $ | 0.22 | | | | | $ | 0.31 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended June 30, 2021 |
| As Reported | | Impact of | | As | | | | Non-GAAP |
| Under | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | FIFO [2] | | GAAP Measure | | Adjustments [5] | | Normalized |
| Net sales | $ | 2,709 | | | $ | — | | | $ | 2,709 | | | $ | — | | | $ | 2,709 | |
| Cost of products sold | 1,827 | | | (24) | | | 1,803 | | | (3) | | | 1,800 | |
| Gross profit | 882 | | | 24 | | | 906 | | | 3 | | | 909 | |
| 32.6 | % | | | | | | | | 33.6 | % |
| Selling, general and administrative expenses | 572 | | | — | | | 572 | | | (28) | | | 544 | |
| 21.1 | % | | | | | | | | 20.1 | % |
| Restructuring costs, net | 5 | | | — | | | 5 | | | (5) | | | — | |
| Impairment of goodwill, intangibles and other assets | — | | | — | | | — | | | — | | | — | |
| Operating income | 305 | | | 24 | | | 329 | | | 36 | | | 365 | |
| 11.3 | % | | | | | | | | 13.5 | % |
| | | | | | | | | |
| Non-operating expenses: | | | | | | | | | |
| Interest expense, net | 65 | | | — | | | 65 | | | — | | | 65 | |
| Loss on extinguishment of debt | — | | | — | | | — | | | — | | | — | |
| Other (income) expense, net | (3) | | | — | | | (3) | | | (3) | | | (6) | |
| Income before income taxes | 243 | | | 24 | | | 267 | | | 39 | | | 306 | |
Income tax provision (benefit) [3] | 46 | | | 5 | | | 51 | | | (1) | | | 50 | |
| Net income | $ | 197 | | | $ | 19 | | | $ | 216 | | | $ | 40 | | | $ | 256 | |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | |
| Basic | 425.4 | | | | | 425.4 | | | | | 425.4 | |
| Diluted | 427.8 | | | | | 427.8 | | | | | 427.8 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | | |
| Basic | $ | 0.46 | | | | | $ | 0.51 | | | | | $ | 0.60 | |
| Diluted | $ | 0.46 | | | | | $ | 0.50 | | | | | $ | 0.60 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended September 30, 2021 |
| As Reported | | Impact of | | As | | | | Non-GAAP |
| Under | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | FIFO [2] | | GAAP Measure | | Adjustments [6] | | Normalized |
| Net sales | $ | 2,787 | | | $ | — | | | $ | 2,787 | | | $ | — | | | $ | 2,787 | |
| Cost of products sold | 1,939 | | | (35) | | | 1,904 | | | (6) | | | 1,898 | |
| Gross profit | 848 | | | 35 | | | 883 | | | 6 | | | 889 | |
| 30.4 | % | | | | | | | | 31.9 | % |
| Selling, general and administrative expenses | 561 | | | — | | | 561 | | | (24) | | | 537 | |
| 20.1 | % | | | | | | | | 19.3 | % |
| Restructuring costs, net | 6 | | | — | | | 6 | | | (6) | | | — | |
| Impairment of goodwill, intangibles and other assets | — | | | — | | | — | | | — | | | — | |
| Operating income | 281 | | | 35 | | | 316 | | | 36 | | | 352 | |
| 10.1 | % | | | | | | | | 12.6 | % |
| | | | | | | | | |
| Non-operating expenses: | | | | | | | | | |
| Interest expense, net | 65 | | | — | | | 65 | | | — | | | 65 | |
| Loss on extinguishment of debt | — | | | — | | | — | | | — | | | — | |
| Other (income) expense, net | 1 | | | — | | | 1 | | | — | | | 1 | |
| Income before income taxes | 215 | | | 35 | | | 250 | | | 36 | | | 286 | |
Income tax provision (benefit) [3] | 25 | | | 10 | | | 35 | | | (7) | | | 28 | |
| Net income | $ | 190 | | | $ | 25 | | | $ | 215 | | | $ | 43 | | | $ | 258 | |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | |
| Basic | 425.4 | | | | | 425.4 | | | | | 425.4 | |
| Diluted | 428.5 | | | | | 428.5 | | | | | 428.5 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | | |
| Basic | $ | 0.45 | | | | | $ | 0.51 | | | | | $ | 0.61 | |
| Diluted | $ | 0.44 | | | | | $ | 0.50 | | | | | $ | 0.60 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended December 31, 2021 |
| As Reported | | Impact of | | As | | | | Non-GAAP |
| Under | | Change to | | Adjusted | | Normalization | | Measure |
| LIFO [1] | | FIFO [2] | | GAAP Measure | | Adjustments [7] | | Normalized |
| Net sales | $ | 2,805 | | | $ | — | | | $ | 2,805 | | | $ | — | | | $ | 2,805 | |
| Cost of products sold | 1,970 | | | (2) | | | 1,968 | | | (9) | | | 1,959 | |
| Gross profit | 835 | | | 2 | | | 837 | | | 9 | | | 846 | |
| 29.8 | % | | | | | | | | 30.2 | % |
| Selling, general and administrative expenses | 607 | | | — | | | 607 | | | (42) | | | 565 | |
| 21.6 | % | | | | | | | | 20.1 | % |
| Restructuring costs, net | — | | | — | | | — | | | — | | | — | |
| Impairment of goodwill, intangibles and other assets | 60 | | | — | | | 60 | | | (60) | | | — | |
| Operating income | 168 | | | 2 | | | 170 | | | 111 | | | 281 | |
| 6.0 | % | | | | | | | | 10.0 | % |
| | | | | | | | | |
| Non-operating expenses: | | | | | | | | | |
| Interest expense, net | 59 | | | — | | | 59 | | | — | | | 59 | |
| Loss on extinguishment of debt | 5 | | | — | | | 5 | | | (5) | | | — | |
| Other (income) expense, net | (5) | | | — | | | (5) | | | 7 | | | 2 | |
| Income before income taxes | 109 | | | 2 | | | 111 | | | 109 | | | 220 | |
Income tax provision [3] | 13 | | | — | | | 13 | | | 25 | | | 38 | |
| Net income | $ | 96 | | | $ | 2 | | | $ | 98 | | | $ | 84 | | | $ | 182 | |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | |
| Basic | 425.5 | | | | | 425.5 | | | | | 425.5 | |
| Diluted | 428.3 | | | | | 428.3 | | | | | 428.3 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | | |
| Basic | $ | 0.23 | | | | | $ | 0.23 | | | | | $ | 0.43 | |
| Diluted | $ | 0.22 | | | | | $ | 0.23 | | | | | $ | 0.42 | |
NEWELL BRANDS INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
[1]Refer to “Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items” for the three months ended March 31, 2021, June 30, 2021 and September 30, 2021, on the Company’s Forms 8-K furnished on April 29, 2022, July 29, 2022 and October 28, 2022, respectively. For the three and twelve months ended December 31, 2021, refer to “Reconciliation of GAAP and Non-GAAP Information (Unaudited) - Certain Line Items” on the Company's Forms 8-K furnished on February 10, 2023.
[2]Reflects the impact of the Company's election to change its method of accounting for certain inventory in the U.S. from the last-in, first-out (“LIFO”) method to first-in, first-out (“FIFO”) method.
[3]The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pretax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the Company uses a "with" and "without" approach to determine normalized income tax expense. Also includes income tax expense that results from the amortization of a prior year normalized tax benefit.
[4]The three months ended March 31, 2021 normalized items consist of $21 million of acquisition amortization; $13 million of restructuring and restructuring-related costs; $3 million of expenses for certain legal proceedings and divestiture costs related to completed divestitures and $2 million of Argentina hyperinflationary adjustment.
[5]The three months ended June 30, 2021 normalized items consist of $19 million of acquisition amortization costs; $8 million of restructuring and restructuring-related charges; $6 million of expenses for certain legal proceedings; $2 million of costs related to related to completed divestitures; $2 million loss on disposition of business and $2 million of Argentina hyperinflationary adjustment.
[6]The three months ended September 30, 2021 normalized items consist of $19 million of acquisition amortization costs; $13 million of restructuring and restructuring-related charges; $3 million of expenses for certain legal proceedings; $1 million of costs related to related to completed divestitures; $1 million of Argentina hyperinflationary adjustment and $1 million of gain due to change in fair market value of investments.
[7]The three months ended December 31, 2021 normalized items consist of $60 million of non-cash impairment charges for indefinite-lived intangible assets in the Commercial Solutions and Learning and Development segments; $19 million of acquisition amortization costs; $18 million of costs related to completed divestitures; $12 million of restructuring and restructuring-related charges; $5 million loss on debt extinguishment; $2 million related to expenses for certain legal proceedings; $6 million gain on disposition of business and $1 million gain due to change in fair market value of investments.
