Cover Page
Cover Page - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Entity File Number | 1-9608 | |
Entity Registrant Name | NEWELL BRANDS INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3514169 | |
Entity Address, Address Line One | 6655 Peachtree Dunwoody Road, | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 770 | |
Local Phone Number | 418-7000 | |
Title of 12(b) Security | Common stock, $1 par value per share | |
Trading Symbol | NWL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 414.2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000814453 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,048 | $ 2,252 | $ 6,057 | $ 7,174 |
Cost of products sold | 1,427 | 1,594 | 4,325 | 4,940 |
Gross profit | 621 | 658 | 1,732 | 2,234 |
Selling, general and administrative expenses | 501 | 467 | 1,457 | 1,489 |
Restructuring costs, net | 16 | 3 | 76 | 12 |
Impairment of goodwill, intangibles and other assets | 263 | 148 | 274 | 148 |
Operating income (loss) | (159) | 40 | (75) | 585 |
Non-operating expenses: | ||||
Interest expense, net | 69 | 57 | 213 | 171 |
Other (income) expense, net | 70 | 24 | 91 | (73) |
Income (loss) before income taxes | (298) | (41) | (379) | 487 |
Income tax provision (benefit) | (80) | (60) | (77) | 41 |
Net income (loss) | $ (218) | $ 19 | $ (302) | $ 446 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 414.2 | 413.6 | 414.1 | 416.4 |
Diluted (in shares) | 414.2 | 414.6 | 414.1 | 418.3 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ (0.53) | $ 0.05 | $ (0.73) | $ 1.07 |
Diluted (in USD per share) | $ (0.53) | $ 0.05 | $ (0.73) | $ 1.07 |
Comprehensive income (loss): | ||||
Net income (loss) | $ (218) | $ 19 | $ (302) | $ 446 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (16) | (94) | (8) | (172) |
Pension and postretirement costs | 53 | 8 | 52 | 20 |
Derivative financial instruments | 9 | 8 | (8) | 19 |
Total other comprehensive income (loss), net of tax | 46 | (78) | 36 | (133) |
Total comprehensive income (loss) | $ (172) | $ (59) | $ (266) | $ 313 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 396 | $ 287 |
Accounts receivable, net | 1,212 | 1,250 |
Inventories | 1,778 | 2,203 |
Prepaid expenses and other current assets | 362 | 312 |
Total current assets | 3,748 | 4,052 |
Property, plant and equipment, net | 1,202 | 1,184 |
Operating lease assets | 521 | 578 |
Goodwill | 3,049 | 3,298 |
Other intangible assets, net | 2,550 | 2,649 |
Deferred income taxes | 783 | 810 |
Other assets | 719 | 691 |
Total assets | 12,572 | 13,262 |
Liabilities: | ||
Accounts payable | 1,084 | 1,062 |
Accrued compensation | 150 | 123 |
Other accrued liabilities | 1,409 | 1,272 |
Short-term debt and current portion of long-term debt | 376 | 621 |
Total current liabilities | 3,019 | 3,078 |
Long-term debt | 4,737 | 4,756 |
Deferred income taxes | 393 | 520 |
Operating lease liabilities | 458 | 512 |
Other noncurrent liabilities | 839 | 877 |
Total liabilities | 9,446 | 9,743 |
Commitments and contingencies (Footnote 17) | ||
Stockholders’ equity: | ||
Preferred stock (10.0 authorized shares, $1.00 par value, no shares issued at September 30, 2023 and December 31, 2022) | 0 | 0 |
Common stock (800.0 authorized shares, $1.00 par value, 439.5 shares and 438.6 shares issued at September 30, 2023 and December 31, 2022, respectively) | 440 | 439 |
Treasury stock, at cost (25.3 shares and 25.0 shares at September 30, 2023 and December 31, 2022, respectively) | (627) | (623) |
Additional paid-in capital | 6,928 | 7,052 |
Retained deficit | (2,640) | (2,338) |
Accumulated other comprehensive loss | (975) | (1,011) |
Total stockholders’ equity | 3,126 | 3,519 |
Total liabilities and stockholders’ equity | $ 12,572 | $ 13,262 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 439,500,000 | 438,600,000 |
Treasury stock, shares (in shares) | 25,300,000 | 25,000,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (302) | $ 446 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 240 | 222 |
Impairment of goodwill, intangibles and other assets | 274 | 148 |
Gain from sale of business | 0 | (136) |
Deferred income taxes | (108) | 215 |
Stock based compensation expense | 32 | 8 |
Pension settlement charge | 66 | 0 |
Other, net | 3 | (2) |
Changes in operating accounts excluding the effects of divestiture: | ||
Accounts receivable | 26 | (165) |
Inventories | 411 | (754) |
Accounts payable | 31 | (143) |
Accrued liabilities and other | 6 | (406) |
Net cash provided by (used in) operating activities | 679 | (567) |
Cash flows from investing activities: | ||
Proceeds from sale of divested business | 0 | 616 |
Capital expenditures | (209) | (221) |
Other investing activities, net | 62 | 25 |
Net cash provided by (used in) investing activities | (147) | 420 |
Cash flows from financing activities: | ||
Net payments of short-term debt | (244) | 0 |
Net proceeds from issuance of long-term debt | 0 | 990 |
Payments on current portion of long-term debt | (2) | (2) |
Repurchase of shares of common stock | 0 | (325) |
Cash dividends | (155) | (290) |
Equity compensation activity and other, net | (4) | (29) |
Net cash provided by (used in) financing activities | (405) | 344 |
Exchange rate effect on cash, cash equivalents and restricted cash | (8) | (13) |
Increase in cash, cash equivalents and restricted cash | 119 | 184 |
Cash, cash equivalents and restricted cash at beginning of period | 303 | 477 |
Cash, cash equivalents and restricted cash at end of period | 422 | 661 |
Supplemental disclosures: | ||
Restricted cash at beginning of period | 16 | 37 |
Restricted cash at end of period | $ 26 | $ 25 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2021 | $ 4,158 | $ 450 | $ (609) | $ 7,734 | $ (2,535) | $ (882) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 313 | 446 | (133) | |||
Dividends declared on common stock | (285) | (285) | ||||
Equity compensation, net of tax | (5) | 2 | (14) | 7 | ||
Common stock purchased and retired | (325) | (13) | (312) | |||
Other | (1) | (1) | ||||
Ending balance at Sep. 30, 2022 | 3,855 | 439 | (623) | 7,143 | (2,089) | (1,015) |
Beginning balance at Jun. 30, 2022 | 4,022 | 439 | (623) | 7,251 | (2,108) | (937) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (59) | 19 | (78) | |||
Dividends declared on common stock | (93) | (93) | ||||
Equity compensation, net of tax | (15) | (15) | ||||
Ending balance at Sep. 30, 2022 | 3,855 | 439 | (623) | 7,143 | (2,089) | (1,015) |
Beginning balance at Dec. 31, 2022 | 3,519 | 439 | (623) | 7,052 | (2,338) | (1,011) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (266) | (302) | 36 | |||
Dividends declared on common stock | (155) | (155) | ||||
Equity compensation, net of tax | 28 | 1 | (4) | 31 | ||
Ending balance at Sep. 30, 2023 | 3,126 | 440 | (627) | 6,928 | (2,640) | (975) |
Beginning balance at Jun. 30, 2023 | 3,315 | 440 | (627) | 6,945 | (2,422) | (1,021) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (172) | (218) | 46 | |||
Dividends declared on common stock | (29) | (29) | ||||
Equity compensation, net of tax | 12 | 12 | ||||
Ending balance at Sep. 30, 2023 | $ 3,126 | $ 440 | $ (627) | $ 6,928 | $ (2,640) | $ (975) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (in USD per share) | $ 0.07 | $ 0.23 | $ 0.37 | $ 0.69 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Newell Brands Inc. (collectively with its subsidiaries, the “Company”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (including normal recurring accruals) considered necessary for a fair statement of the financial position and the results of operations of the Company. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, and the footnotes thereto, included in the Company’s most recent Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet at December 31, 2022 has been derived from the audited financial statements as of that date, but it does not include all the information and footnotes required by U.S. GAAP for a complete financial statement. The condensed consolidated financial statements for all comparable prior periods presented have been retrospectively adjusted to reflect the following: • Effective January 1, 2023, as a result of the implementation of a new operating model intended to drive further simplification and unlock additional efficiencies and synergies within the Company, the chief operating decision maker (“CODM”) now reviews the businesses as three operating segments: Home and Commercial Solutions, Learning and Development and Outdoor and Recreation. The Home and Commercial Solutions operating segment represents the combination of the previously reported Commercial Solutions, Home Appliances and Home Solutions operating segments. See Footnote 16 for further information; • A prior-year change in method of accounting for certain inventory in the U.S. from the last-in, first-out method to the first-in, first-out method resulted in a $5 million and $16 million reduction of cost of products sold and corresponding increase to operating income and income before income taxes, additional income tax provision of $1 million and $4 million and increase of $4 million and $12 million to net income in the Company's previously issued unaudited Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2022, respectively; • A revision associated with an incorrect change in functional currency designation in the prior year resulted in additional expense to record mark to market adjustments of $16 million and $35 million in other (income) expense, net in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2022, respectively, and a reclassification between Accumulated Other Comprehensive Loss and Retained Deficit in the Condensed Consolidated Statement of Stockholder’s Equity of $35 million at September 30, 2022. Refer to Footnote 19 of the Company's most recent Annual Report on Form 10-K, filed on February 15, 2023. On March 31, 2022, the Company sold its Connected Home & Security (“CH&S”) business to Resideo Technologies, Inc. See Footnotes 2 and 16 for further information. Use of Estimates and Risks Management’s application of U.S. GAAP in preparing the Company's condensed consolidated financial statements requires the pervasive use of estimates and assumptions. The Company continues to be impacted by inflationary pressures, softening global demand, focus by major retailers on the rebalancing of inventory levels, rising interest rates and indirect macroeconomic impacts from the Russia-Ukraine conflict. These collective macroeconomic trends, the duration or severity of which are highly uncertain, are rapidly changing the retail and consumer landscape and are expected to continue to negatively impact the Company’s operating results, cash flows and financial condition during the current year. As consumers continue to face widespread increases in prices and interest rates, their discretionary spending and purchase patterns may continue to be unfavorably impacted. The high level of uncertainty of these factors has resulted in estimates and assumptions that have the potential for more variability and are more subjective. In addition, some of the other inherent estimates and assumptions used in the Company’s forecasted results of operations and cash flows that form the basis of the determination of the fair value of the reporting units for goodwill and indefinite-lived intangible asset impairment testing are outside the control of management, including interest rates, cost of capital, tax rates, industry growth, credit ratings, foreign exchange rates and labor inflation. Although management has made its best estimates and assumptions based upon current information, actual results could materially differ given the uncertainty of these factors and may require future changes to such estimates and assumptions, including reserves, which may result in future expense or impairment charges. During the third quarter of 2023, the Company concluded that a triggering event had occurred for the goodwill associated with the Baby reporting unit in the Learning and Development segment, and for an indefinite-lived tradename in the Outdoor and Recreation segment, as a result of a downward revision of forecasted cash flows due to market conditions, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the Baby reporting unit goodwill and the indefinite-lived tradename in the Outdoor and Recreation segment were impaired. During the third quarter of 2023, the Company recorded a non-cash impairment charge of $241 million for the Baby reporting unit goodwill and $22 million for the indefinite-lived tradename in the Outdoor and Recreation segment, as the carrying values exceeded their fair values. See Footnote 7 for further information. During the second quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the Home Fragrance reporting unit in the Home and Commercial Solutions segment and for the goodwill associated with the Baby reporting unit in the Learning and Development segment, as a result of a downward revision of forecasted cash flows due to softening global demand, primarily caused by continued inflationary pressure that is impacting discretionary spending behavior of consumers, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home and Commercial Solutions segment was impaired. During the second quarter of 2023, the Company recorded a non-cash impairment charge of $8 million, as the carrying value of the tradename exceeded its fair value. The Company concluded that the Baby reporting unit goodwill was not impaired during the second quarter of 2023. See Footnote 7 for further information. Seasonal Variations Sales of the Company’s products tend to be seasonal, with sales, operating income and operating cash flow in the first quarter generally lower than any other quarter during the year, driven principally by reduced volume and the mix of products sold in the first quarter. The seasonality of the Company’s sales volume combined with the accounting for fixed costs, such as depreciation, amortization, rent, personnel costs and interest expense, impacts the Company’s results on a quarterly basis. Also, the Company typically tends to generate the majority of its operating cash flow in the third and fourth quarters of the year due to seasonal variations in operating results, the timing of annual performance-based compensation payments, customer program payments, working capital requirements and credit terms provided to customers. In addition, uncertainty still remains over the volatility and direction of future consumer and customer demand patterns, as well as inflationary and supply chain pressures. Accordingly, the Company’s results of operations and cash flows for the three and nine months ended September 30, 2023 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2023. Adoption of New Accounting Guidance Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” In January 2021, the FASB clarified the scope of this guidance with the issuance of ASU 2021-01, Reference Rate Reform: Scope. ASU 2020-04 provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate if certain criteria are met. This ASU was further updated with the issuance of ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848 , which extends the sunset date of the guidance. ASU 2020-04 may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company adopted ASU 2020-04 and it did not have a material impact on its Consolidated Financial Statements. In October 2022, the FASB issued ASU 2022-04, “ Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ” This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. See disclosures hereafter for further information. Sales of Accounts Receivables Factored receivables at September 30, 2023 associated with the Company's existing factoring agreement (the “Customer Receivables Purchase Agreement”) were approximately $345 million, a decrease of approximately $75 million from December 31, 2022. Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the Condensed Consolidated Balance Sheet at the time of the sales transaction. The Company classifies the proceeds received from the sales of accounts receivable as an operating cash flow and collections of accounts receivables not yet submitted to the financial institution as a financing cash flow in the Condensed Consolidated Statement of Cash Flows. The Company records the discount as other (income) expense, net in the Condensed Consolidated Statement of Operations. As further described in Footnote 18, in October 2023, the Company entered into a new accounts receivable facility pursuant to which receivables of certain subsidiaries are sold or pledged. Supplier Finance Program Obligations The Company has worked with its suppliers of goods and services over the past several years to revisit terms and conditions, including the extension of payment terms. Additionally, a global financial institution offers a voluntary supply chain finance program (the “SCF Program”) which enables suppliers, at their sole discretion, to sell their receivables from the Company to the financial institution on a non-recourse basis. The Company and its suppliers agree on contractual terms for the goods and services procured, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF Program. Payments terms average approximately 125 days. The suppliers sell goods or services, as applicable, to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms. Suppliers that participate in the SCF Program, at their sole discretion, determine which invoices, if any, they want to sell to the financial institution. The suppliers’ voluntary inclusion of invoices in the SCF Program does not change the Company’s existing contractual terms with its suppliers. The Company does not provide any guarantees under the SCF Program, nor does it have any economic interest in a supplier’s decision to participate in the SCF Program. Amounts due under the SCF Program are included in accounts payable in the Condensed Consolidated Balance Sheets and as operating cash flows in the Condensed Consolidated Statement of Cash Flows. At September 30, 2023 and December 31, 2022, outstanding payment obligations under the SCF Program were approximately $100 million for both periods. |
Divestiture Activity
Divestiture Activity | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture Activity | Divestiture ActivityOn March 31, 2022, the Company sold its CH&S business to Resideo Technologies, Inc., for approximately $593 million, subject to customary working capital and other post-closing adjustments. As a result, during the nine months ended September 30, 2022, the Company recorded a pretax gain of $136 million, which was included in other (income) expense, net in its Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table displays the changes in Accumulated Other Comprehensive Income (Loss) (“AOCL”) by component, net of tax, for the nine months ended September 30, 2023 (in millions): Cumulative Pension and Postretirement Costs Derivative AOCL Balance at December 31, 2022 $ (688) $ (309) $ (14) $ (1,011) Other comprehensive loss before reclassifications (8) (1) (6) (15) Amounts reclassified to earnings — 53 (2) 51 Net current period other comprehensive income (loss) (8) 52 (8) 36 Balance at September 30, 2023 $ (696) $ (257) $ (22) $ (975) Reclassifications from AOCL to the results of operations for the three and nine months ended September 30, 2023 and 2022 were pretax (income) expense of (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cumulative translation adjustment (1) $ — $ — $ — $ 6 Pension and postretirement benefit plans (2) 64 4 69 11 Derivative financial instruments (3) 5 (7) (3) (10) (1) See Footnote 2 for further information. (2) See Footnote 11 for further information. (3) See Footnote 10 for further information. The income tax provision (benefit) allocated to the components of AOCL for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Foreign currency translation adjustments $ 21 $ 26 $ 3 $ 46 Pension and postretirement benefit costs 15 1 16 2 Derivative financial instruments 3 3 (2) 6 Income tax provision related to AOCL $ 39 $ 30 $ 17 $ 54 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs, net incurred by reportable business segments for all restructuring activities for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Home and Commercial Solutions $ 10 $ 1 $ 37 $ 4 Learning and Development 3 1 14 3 Outdoor and Recreation — 1 8 3 Corporate 3 — 17 2 $ 16 $ 3 $ 76 $ 12 Accrued restructuring costs activity for the nine months ended September 30, 2023 was as follows (in millions): Balance at December 31, 2022 Restructuring Payments Foreign Balance at Severance and termination costs $ 7 $ 71 $ (57) $ — $ 21 Contract termination and other costs — 5 (4) (1) — $ 7 $ 76 $ (61) $ (1) $ 21 Project Phoenix In January 2023, the Company announced a restructuring and savings initiative (“Project Phoenix”) that is intended to strengthen the Company by leveraging its scale to further reduce complexity, streamlining its operating model and driving operational efficiencies. Project Phoenix is expected to be substantially implemented by the end of 2023 and incorporates a variety of initiatives designed to simplify the organizational structure, streamline the Company’s real estate portfolio, centralize the Company’s supply chain functions, which include manufacturing, distribution, transportation and customer service, transition to a unified One Newell go-to-market model in key international geographies, and otherwise reduce overhead costs. The Company commenced reducing headcount in the first quarter of 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements. The Company currently estimates that it will incur approximately $100 million to $130 million in restructuring and restructuring-related charges in connection with Project Phoenix, substantially all of which are expected to be incurred by the end of 2023. These charges consist primarily of $80 million to $105 million in charges related to severance payments and other termination benefits; $15 million to $20 million in charges associated with office space reductions; and approximately $5 million of other charges, including those associated with employee transition and legal costs. The Company expects approximately $95 million to $120 million of the total aggregate charges will be cash expenditures. All cash payments are expected to be paid within one year of charges incurred. During the three and nine months ended September 30, 2023, the Company recorded restructuring charges of $10 million and $63 million, respectively, in connection with Project Phoenix. Network Optimization Project In May 2023, the Company announced a restructuring and savings initiative that is intended to simplify and streamline its North American distribution network (the “Network Optimization Project”) in order to improve the Company’s cost structure and operating margins while maintaining focus on customer and consumer fulfillment. The Company initiated implementation of the Network Optimization Project during the second quarter of 2023 and expects it to be substantially implemented by the end of fiscal year 2024. The Network Optimization Project incorporates a variety of initiatives, including a reduction in the overall number of distribution centers, an optimization of distribution by location, and completion of select automation investments intended to further streamline the Company’s cost structure and to maximize operating performance. The Company currently estimates that it will incur approximately $37 million to $49 million in restructuring and restructuring-related charges associated with execution of the Network Optimization Project and expects that the costs incurred will be substantially complete by the end of 2024. This estimate of charges consists primarily of $8 million to $11 million related to cash severance payments and other termination benefits and approximately $29 million to $38 million associated with industrial site reductions. The Company expects approximately $35 million to $44 million of the total aggregate charges will be cash expenditures. During the three and nine months ended September 30, 2023, the Company recorded restructuring charges of $3 million and $5 million, respectively, in connection with the project. Other Restructuring and Restructuring-Related Charges The Company regularly incurs other restructuring and restructuring-related costs in connection with various discrete initiatives, including certain costs associated with Project Ovid, the multi-year, customer centric supply chain initiative to transform the Company’s go-to-market capabilities in the U.S., improve customer service levels and drive operational efficiencies and costs associated with the optimization of manufacturing sites. Restructuring-related costs are recorded in cost of products sold and selling, general and administrative expenses (“SG&A”) in the Condensed Consolidated Statements of Operations based on the nature of the underlying costs incurred. During the three months ended September 30, 2023 and 2022, the Company recorded other restructuring charges of $3 million for both periods, and $8 million and $12 million for the nine months ended September 30, 2023 and 2022, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are comprised of the following (in millions): September 30, 2023 December 31, 2022 Raw materials and supplies $ 237 $ 285 Work-in-process 181 218 Finished products 1,360 1,700 $ 1,778 $ 2,203 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net, is comprised of the following (in millions): September 30, 2023 December 31, 2022 Land $ 72 $ 76 Buildings and improvements 662 648 Machinery and equipment 2,457 2,349 3,191 3,073 Less: Accumulated depreciation (1,989) (1,889) $ 1,202 $ 1,184 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill activity for the nine months ended September 30, 2023 is as follows (in millions): Segments Net Book Value at December 31, 2022 Impairment Charges Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value at September 30, 2023 Home and Commercial Solutions $ 747 $ — $ — $ 4,052 $ (3,305) $ 747 Learning and Development 2,551 (241) (8) 3,389 (1,087) 2,302 Outdoor and Recreation — — — 788 (788) — $ 3,298 $ (241) $ (8) $ 8,229 $ (5,180) $ 3,049 During the third quarter of 2023, the Company concluded that a triggering event had occurred for the goodwill associated with the Baby reporting unit in the Learning and Development segment as a result of a downward revision of forecasted cash flows due to lower volume and profitability expectations, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the Baby reporting unit goodwill was impaired. During the third quarter of 2023, the Company recorded a non-cash impairment charge of $241 million as the carrying value of the reporting unit exceeded its fair value. During the third quarter of 2022, the Company concluded that a triggering event had occurred for the Home Fragrance reporting unit in the Home and Commercial Solutions segment, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory, and rising interest rates. The decline in global demand is driven primarily by inflationary pressures which are impacting the discretionary spending behavior of consumers. The Company performed a quantitative impairment test and determined that the Home Fragrance reporting unit goodwill was impaired. During the third quarter of 2022, the Company recorded a non-cash impairment charge of $108 million, as the carrying value of the reporting unit exceeded its fair value. Other intangible assets, net, are comprised of the following (in millions): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Tradenames — indefinite life (1) $ 1,581 $ — $ 1,581 $ 1,689 $ — $ 1,689 Tradenames — other (1) 230 (97) 133 160 (79) 81 Capitalized software 619 (504) 115 602 (481) 121 Patents and intellectual property 22 (18) 4 22 (17) 5 Customer relationships and distributor channels 1,073 (356) 717 1,072 (319) 753 $ 3,525 $ (975) $ 2,550 $ 3,545 $ (896) $ 2,649 (1) In connection with the operating model changes associated with Project Phoenix, the Company determined that six tradenames with aggregate carrying values of $70 million no longer met indefinite-lived criteria and were reclassified during the first quarter as finite-lived tradenames, with useful lives ranging from five Amortization expense for intangible assets was $28 million and $25 million for the three months ended September 30, 2023 and 2022, respectively and $82 million and $76 million for the nine months ended September 30, 2023 and 2022, respectively. During the third quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the Outdoor and Recreation segment, as a result of a downward revision of forecasted cash flows due to market conditions, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Outdoor and Recreation segment was impaired. During the third quarter of 2023, the Company recorded a non-cash impairment charge of $22 million for the indefinite-lived tradename in the Outdoor and Recreation segment, as the carrying value of the tradename exceeded its fair value. During the second quarter of 2023, the Company concluded that a triggering event had occurred for indefinite-lived tradename in the Home Fragrance reporting unit in the Home and Commercial Solutions segment as a result of a downward revision of forecasted cash flows due to softening global demand, primarily caused by continued inflationary pressure that is impacting discretionary spending behavior of consumers, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home and Commercial Solutions segment was impaired. During the second quarter of 2023, the Company recorded a non-cash impairment charge of $8 million, as the carrying value of the tradename exceeded its fair value. During the third quarter of 2022, the Company concluded that a triggering event had occurred for indefinite-lived tradenames in the Kitchen and Home Fragrance reporting units in the Home and Commercial Solutions segment, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory and rising interest rates. The decline in global demand was driven primarily by inflationary pressures which impacted the discretionary spending behavior of consumers. The Company also concluded that a triggering event had occurred for two indefinite-lived tradenames in the Baby reporting unit, in the Learning and Development segment, as a result of rising interest rates and inflationary pressures. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Kitchen reporting unit and two indefinite-lived tradenames in the Baby reporting unit were impaired. During the third quarter of 2022, the Company recorded an aggregate non-cash impairment charge of $40 million, as the carrying values of these tradenames exceeded their fair values. |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities are comprised of the following (in millions): September 30, 2023 December 31, 2022 Customer accruals $ 702 $ 636 Operating lease liabilities 119 121 Accrued self-insurance liabilities, contingencies and warranty 105 99 Accrued interest expense 97 63 Accrued income taxes 79 53 Accrued marketing and freight expenses 72 73 Other 235 227 $ 1,409 $ 1,272 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is comprised of the following at the dates indicated (in millions): September 30, 2023 December 31, 2022 4.00% senior notes due 2024 $ 197 $ 196 4.875% senior notes due 2025 497 496 3.90% senior notes due 2025 47 47 4.20% senior notes due 2026 1,979 1,978 6.375% senior notes due 2027 474 483 6.625% senior notes due 2029 467 481 5.375% senior notes due 2036 417 417 5.50% senior notes due 2046 658 658 Revolving credit facility 375 225 Commercial paper — 359 Receivables facility — 35 Other debt 2 2 Total debt 5,113 5,377 Short-term debt and current portion of long-term debt (376) (621) Long-term debt $ 4,737 $ 4,756 Senior Notes On August 21, 2023, Moody's Corporation (“Moody's”) downgraded the Company's debt rating to “Ba2”. As a result of Moody's downgrade, certain of the Company's outstanding senior notes currently aggregating to approximately $3.1 billion are subject to an interest rate adjustment of 25 basis points. The change to the interest rate due to the downgrade will increase the Company's interest expense by approximately $8 million on an annualized basis (approximately $2 million in 2023). On August 3, 2023, S&P Global Inc. (“S&P”) downgraded the Company's debt rating to “BB”. In March 2023, S&P had also downgraded the Company’s debt rating to “BB+”. As a result of the S&P downgrades, certain of the Company’s outstanding senior notes currently aggregating to approximately $3.1 billion are subject to an aggregated interest rate adjustment of 50 basis points. The change to the interest rate due to the downgrade will increase the Company’s interest expense by approximately $15 million on an annualized basis (approximately $8 million in 2023). Furthermore, as a result of the March S&P downgrade, the Company's ability to borrow from the commercial paper market on terms it deems acceptable or favorable was eliminated. On February 14, 2023, Fitch Ratings downgraded the Company's debt rating to “BB”. This downgrade did not impact the interest rates on any of the Company's senior notes. Receivables Facility The Company maintained an Accounts Receivable Securitization Facility (the “Securitization Facility”). The aggregate commitment under the Securitization Facility was $375 million. The Securitization Facility matured on October 2, 2023 and was terminated thereafter. At September 30, 2023, the Company had no outstanding borrowing under the Securitization Facility. See Footnote 18 for details related to the new accounts receivable facility. Revolving Credit Facility The Company has a $1.5 billion senior unsecured revolving credit facility (the “Credit Revolver”) that matures in August 2027. On March 27, 2023, the Company entered into an amendment to its Credit Revolver (the “Amendment”) to (i) include non-cash expenses resulting from grants of stock awards among the items that may be added to Consolidated Net Income when calculating Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), as defined in the Amendment, and (ii) lower the Interest Coverage Ratio, as defined in the Amendment, for the fiscal quarters ending on June 30, 2023, September 30, 2023, December 31, 2023 and March 31, 2024. The Credit Revolver provides for the issuance of up to $150 million of letters of credit, so long as there is sufficient availability for borrowing under the Credit Revolver. At September 30, 2023, the Company had $375 million of outstanding borrowings under the Credit Revolver and approximately $21 million of outstanding standby letters of credit issued against the Credit Revolver, with a net availability of approximately $1.1 billion. Other The indentures governing the Company’s senior notes contain usual and customary nonfinancial covenants. The Company’s borrowing arrangements other than the senior notes contain usual and customary nonfinancial covenants and certain financial covenants, including minimum interest coverage and maximum debt-to-total-capitalization ratios. Weighted average interest rates are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Total debt 5.1 % 4.1 % 5.1 % 4.3 % Short-term debt 7.7 % 3.8 % 6.8 % 3.0 % The fair value of the Company’s senior notes are based upon prices of similar instruments in the marketplace and are as follows (in millions): September 30, 2023 December 31, 2022 Fair Value Book Value Fair Value Book Value Senior notes $ 4,395 $ 4,736 $ 4,511 $ 4,756 The carrying amounts of all other significant debt approximates fair value. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives From time to time, the Company enters into derivative transactions to hedge its exposures to interest rate, foreign currency rate and commodity price fluctuations. The Company does not enter into derivative transactions for trading purposes. Interest Rate Contracts The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company may use fixed and floating rate swaps to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. Floating rate swaps would be used, depending on market conditions, to convert the fixed rates of long-term debt into short-term variable rates. Fixed rate swaps would be used to reduce the Company’s risk of the possibility of increased interest costs. The settlement of interest rate swaps is included in interest expense. Fair Value Hedges At September 30, 2023, the Company had approximately $1.1 billion notional amount of interest rate swaps that exchange a fixed rate of interest for a variable rate of interest plus a weighted average spread. These floating rate swaps are designated as fair value hedges against $500 million of principal on the 6.375% senior notes due 2027, $500 million of principal on the 6.625% senior notes due 2029 and $100 million of principal on the 4.00% senior notes due 2024 for the remaining life of the notes. The benchmark interest rate for the $100 million floating swap and associated fair value hedge was amended for a change in benchmark interest rate from LIBOR to Secured Overnight Financing Rate (“SOFR”), effective June 1, 2023, accounted for in accordance with ASC 848 (see Footnote 1 for further information). The effective portion of the fair value gains or losses on these swaps is offset by fair value adjustments in the underlying debt. Cross-Currency Contracts The Company uses cross-currency swaps to hedge foreign currency risk on certain financing arrangements. The Company previously entered into three cross-currency swaps, maturing in January 2025, February 2025 and September 2027, respectively, with an aggregate notional amount of $1.3 billion. Each of these cross-currency swaps was designated as a net investment hedge of the Company's foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets, and the Company pays a fixed rate of Euro-based interest and receives a fixed rate of U.S. dollar interest. During the third quarter of 2022, the Company entered into additional cross-currency swaps with notional amounts of $500 million each, with one maturing in September 2027 and one in September 2029. These swaps were also designated as net investment hedges of the Company's foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets, and the Company pays a floating rate of Euro-based interest and receives a floating rate of U.S. dollar interest. The Company has elected the spot method for assessing the effectiveness of these contracts. During the three months ended September 30, 2023 and 2022, the Company recognized income of $9 million and $8 million, respectively, and income of $30 million and $19 million for the nine months ended September 30, 2023 and 2022, respectively, in interest expense, net, related to the portion of cross-currency swaps excluded from hedge effectiveness testing. Foreign Currency Contracts The Company uses forward foreign currency contracts to mitigate the foreign currency exchange rate exposure on the cash flows related to forecasted inventory purchases and sales with maturity dates through September 2024. The derivatives used to hedge these forecasted transactions that meet the criteria for hedge accounting are accounted for as cash flow hedges. The effective portion of the gains or losses on these derivatives is deferred as a component of AOCL until it is recognized in earnings at the same time that the hedged item affects earnings and is included in the same caption in the statements of operations as the underlying hedged item. At September 30, 2023, the Company had approximately $293 million notional amount outstanding of forward foreign currency contracts that are designated as cash flow hedges of forecasted inventory purchases and sales. The Company also uses foreign currency contracts, primarily forward foreign currency contracts, to mitigate the foreign currency exposure of certain other foreign currency transactions. At September 30, 2023, the Company had approximately $1.2 billion notional amount outstanding of these foreign currency contracts that are not designated as effective hedges for accounting purposes and have maturity dates through July 2024. Fair market value gains or losses are included in the results of operations and are classified in other (income) expense, net in the Company's Condensed Consolidated Statement of Operations. The following table presents the fair value of derivative financial instruments at the dates indicated (in millions): Fair Value of Derivatives Assets (Liabilities) Balance Sheet Location September 30, 2023 December 31, 2022 Derivatives designated as effective hedges: Cash Flow Hedges Foreign currency contracts Prepaid expenses and other current assets $ 4 $ 5 Foreign currency contracts Other accrued liabilities (6) (9) Fair Value Hedges Interest rate swaps Other accrued liabilities (23) (14) Interest rate swaps Other noncurrent liabilities (31) (16) Net Investment Hedges Cross-currency swaps Prepaid expenses and other current assets 26 28 Cross-currency swaps Other assets 50 45 Cross-currency swaps Other noncurrent liabilities (62) (75) Derivatives not designated as effective hedges: Foreign currency contracts Prepaid expenses and other current assets 19 19 Foreign currency contracts Other accrued liabilities (6) (10) Total $ (29) $ (27) The following table presents gain and (loss) activity (on a pretax basis) related to derivative financial instruments designated or previously designated, as effective hedges (in millions): Three Months Three Months Gain/(Loss) Gain/(Loss) Location of gain /(loss) recognized in income Recognized in OCI (effective portion) Reclassified from AOCL to Income Recognized in OCI (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (2) $ — $ (2) Foreign currency contracts Net sales and cost of products sold 6 (3) 20 9 Cross-currency swaps Other (income) expense, net 86 — 108 — Total $ 92 $ (5) $ 128 $ 7 Nine Months Nine Months Gain/(Loss) Gain/(Loss) Location of gain (loss) recognized in income Recognized in OCI (effective portion) Reclassified from AOCL to Income Recognized in OCI (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (4) $ — $ (5) Foreign currency contracts Net sales and cost of products sold (8) 7 39 15 Cross-currency swaps Other (income) expense, net 16 — 190 — Total $ 8 $ 3 $ 229 $ 10 At September 30, 2023, net deferred losses of approximately $7 million within AOCL are expected to be reclassified to earnings over the next twelve months. During the three months ended September 30, 2023 and 2022, the Company recognized in other (income) expense, net, income of $15 million and expense of $6 million, respectively, and expense of $3 million and $7 million during the nine months ended September 30, 2023 and 2022, respectively, related to derivatives that are not designated as hedging instruments. Gains and losses on these derivatives are mostly offset by foreign currency movement in the underlying exposure. The Company is not a party to any derivatives that require collateral to be posted prior to settlement. |
Employee Benefit and Retirement
Employee Benefit and Retirement Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit and Retirement Plans | Employee Benefit and Retirement Plans The components of pension and postretirement benefit (income) expense for the periods indicated, are as follows (in millions): Pension Benefits U.S. International U.S. International Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ 1 $ — $ — $ 2 $ 3 Interest cost 11 6 5 1 34 19 13 6 Expected return on plan assets (13) (12) (3) (1) (41) (36) (9) (4) Amortization 1 4 4 1 3 12 5 2 Settlements — — 61 — — — 66 — Total (income) expense $ (1) $ (2) $ 67 $ 2 $ (4) $ (5) $ 77 $ 7 Postretirement Benefits Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest cost $ 1 $ — $ 1 $ — Amortization (2) (1) (5) (3) Total income $ (1) $ (1) $ (4) $ (3) U.K. Defined Benefit Plan In February 2022, the Company entered into an agreement with an insurance company for a bulk annuity purchase or “buy-in” for one of its U.K. defined benefit pension plans (“U.K. Plan”), resulting in an exchange of plan assets for an annuity that matches the plan’s future projected benefit obligations (“PBO”) to covered participants. In April 2023, the Company completed a “buy-out” of approximately 7% of the U.K. Plan's PBO. The “buy-out” was completed by the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In September 2023, the Company completed the “buy-out” of the remaining PBO of the aforementioned plan through the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In connection with these transactions, during the three and nine months ended September 30, 2023, the Company recorded a pretax settlement loss of $61 million and $66 million, respectively, in other (income) expense, net, in the Company's Condensed Consolidated Statement of Operations, related to the recognition of previously unrecognized actuarial losses reclassified from AOCL to losses. Retiree Annuity Buyout In October 2023, the Company entered into an agreement with an insurance company to purchase a group annuity contract to settle approximately $160 million to $175 million of projected benefit obligations for approximately 55% of the retirees in one of its U.S. defined benefit pension plans. The transaction for the transfer of the pension liability to the insurance company will be funded with the plan’s existing assets. The Company will record a pretax loss in connection with this transaction to reclassify approximately $60 million to $70 million into earnings from AOCL. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rates for the three months ended September 30, 2023 and 2022 was a benefit of 26.8% and 146.3%, respectively, resulting from increased discrete tax benefits combined with increased pretax losses, and benefit of 20.3% and provision of 8.4% for the nine months ended September 30, 2023 and 2022, respectively, resulting from more discrete tax benefits combined with year to date pretax losses. The differences between the U.S. federal statutory income tax rate of 21.0% and the Company’s effective income tax rate for the three and nine months ended September 30, 2023 and 2022 were impacted by a variety of factors, primarily resulting from the geographic mix of where the income was earned, as well as certain taxable income inclusion items in the U.S. based on foreign earnings. The three and nine months ended September 30, 2023 were impacted by certain discrete items. Income tax expense for the three months ended September 30, 2023 included discrete tax benefits of $71 million due to the release of a deferred tax liability related to a U.S. legal entity reorganization, $10 million due to the filing of tax returns in various jurisdictions, $16 million associated with impairment charges and $18 million due to the settlement of the U.K. pension plan. The nine months ended September 30, 2023 also included certain discrete items totaling $10 million of additional income tax expense. The three and nine months ended September 30, 2022 were also impacted by certain discrete items. Income tax expense for the three months ended September 30, 2022 included a discrete benefit of $58 million associated with a change in the Company's indefinite reinvestment assertion regarding certain earnings within its Irish operations, $6 million associated with tradename impairments, $4 million associated with the reduction of a valuation allowance related to operations in the state of Georgia and $2 million associated with the approval of certain state tax credits. The nine months ended September 30, 2022 also included a discrete benefit of $11 million associated with the reduction in valuation allowance related to the integration of certain Brazilian operations and $4 million associated with the approval of certain state tax credits, offset by $16 million of tax expense related to the divestiture of the CH&S business. The Company’s U.S. federal income tax returns for 2011 to 2015 and 2017 to 2020, as well as certain state and non-U.S. income tax returns for various years, are under examination. |
Weighted Average Shares Outstan
Weighted Average Shares Outstanding | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding | Weighted Average Shares Outstanding The computations of the weighted average shares outstanding for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic weighted average shares outstanding 414.2 413.6 414.1 416.4 Dilutive securities (1) — 1.0 — 1.9 Diluted weighted average shares outstanding 414.2 414.6 414.1 418.3 (1) The three and nine months ended September 30, 2023 excludes 2.1 million and 1.5 million, respectively, of potentially dilutive share-based awards as their effect would be anti-dilutive. |
Stockholders' Equity and Share-
Stockholders' Equity and Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity and Share-Based Compensation | Stockholders' Equity and Share-Based CompensationDuring the three and nine months ended September 30, 2023, the Company granted 4.4 million and 6.0 million, respectively, performance-based restricted stock units (“RSUs”), which had an aggregate grant date fair value of $39 million and $61 million, respectively, including awards granted under the Special Incentive Plan (the “SIP”) on July 5, 2023. These performance-based RSUs entitle the recipients to shares of the Company’s common stock primarily over a two During the three and nine months ended September 30, 2023, the Company also granted 1.4 million and 4.3 million, respectively, time-based RSUs with an aggregate grant date fair value of $12 million and $53 million, respectively, including awards granted under the SIP on July 5, 2023 . These time-based RSUs entitle recipients to shares of the Company’s common stock and primarily vest in annual installments over a one subject to continued employment. During the nine months ended September 30, 2023, the Company also granted 0.5 million time-based stock options with an aggregate grant date fair value of $2 million. These stock options entitle the recipients to purchase shares of the Company’s common stock at an exercise price equal to the fair market value of the underlying shares as of the grant dates and vest on the specified anniversaries of the grant dates, subject to continued employment. The weighted average assumptions used to determine the fair value of stock options granted for the nine months ended September 30, 2023, were as follows: Risk-free interest rates 3.6 % Expected volatility 42.1 % Expected dividend yield 4.4 % Expected life (in years) 6.9 Exercise price $12.86 Share Repurchase Program On February 6, 2022, the Company's Board of Directors authorized a $375 million Share Repurchase Program (“SRP”), effective through its expiration date of December 31, 2022. Under the SRP, the Company was permitted to purchase its common shares in the open market, in negotiated transactions or in other manners, as permitted by federal securities laws and other legal requirements. On February 25, 2022, the Company repurchased $275 million of its shares of common stock beneficially owned by Carl C. Icahn and certain of his affiliates, at a purchase price of $25.86 per share, the closing price of the Company's common shares on February 18, 2022. During the three months ended June 30, 2022, the Company repurchased approximately $50 million of its shares of common stock at an average price of $22.01 per share. The Company did not repurchase any of its shares of common stock during the three months ended September 30, 2022. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Recurring Fair Value Measurement s The following table presents the Company’s non-pension financial assets and liabilities, which are measured at fair value on a recurring basis (in millions): September 30, 2023 December 31, 2022 Fair value Asset (Liability) Fair value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 99 $ — $ 99 $ — $ 97 $ — $ 97 Liabilities — (128) — (128) — (124) — (124) Investment securities, including mutual funds 15 — — 15 14 — — 14 For publicly traded investment securities, including mutual funds, fair value is determined on the basis of quoted market prices and, accordingly, such investments are classified as Level 1. The Company determines the fair value of its derivative instruments using standard pricing models and market-based assumptions for all significant inputs, such as yield curves and quoted spot and forward exchange rates. Accordingly, the Company’s derivative instruments are classified as Level 2. Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, derivative instruments, notes payable and short and long-term debt. The carrying values for current financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate fair value due to the short maturity of such instruments. The fair values of the Company’s debt and derivative instruments are disclosed in Footnote 9 and Footnote 10 , respectively. Nonrecurring Fair Value Measurements The Company’s nonfinancial assets, which are measured at fair value on a nonrecurring basis, include property, plant and equipment, goodwill, intangible assets and certain other assets. The Company’s goodwill and indefinite-lived intangibles are fair valued using discounted cash flows. Goodwill impairment testing requires significant use of judgment and assumptions including the identification of reporting units; the assignment of assets and liabilities to reporting units; and the estimation of future cash flows, business growth rates, terminal values and discount rates. The testing of indefinite-lived intangibles under established guidelines for impairment also requires significant use of judgment and assumptions, such as the estimation of cash flow projections, terminal values, royalty rates, contributory cross charges, where applicable, 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 annual impairment testing and as circumstances require. At September 30, 2023, the goodwill of the Baby reporting unit in the Learning and Development segment and an indefinite-lived tradename in the Outdoor and Recreation segment were recorded at fair values based upon the Company’s impairment testing. The most significant unobservable inputs (Level 3) used to estimate the fair values of the Company's reporting unit goodwill and intangible assets are discount rates. The discount rates used in the measurements were 8.5% for the Baby reporting unit and 11.5% for the Outdoor and Recreation indefinite-lived tradename. At September 30, 2023, goodwill for the Baby reporting unit in the Learning and Development segment and an indefinite-lived tradename within the Outdoor and Recreation segment were fair valued at $415 million and $35 million, respectively, on a non-recurring basis in connection with triggering events that occurred during the third quarter of 2023. See Footnotes 1 and 7 for further information. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Effective January 1, 2023, as a result of the implementation of a new operating model intended to drive further simplification and unlock additional efficiencies and synergies within the Company, the CODM now reviews the businesses as three operating segments: Home and Commercial Solutions, Learning and Development and Outdoor and Recreation. The Home and Commercial Solutions operating segment represents the combination of the previously reported Commercial Solutions, Home Appliances and Home Solutions operating segments. Prior period comparable results have been reclassified to conform to the operating segment change. On March 31, 2022, the Company sold its CH&S business to Resideo Technologies, Inc. The results of operations for the CH&S business continued to be reported in the Condensed Consolidated Statements of Operations as part of the Home and Commercial Solutions segment through March 31, 2022. The Company's three primary reportable segments are: Segment Key Brands Description of Primary Products Home and Commercial Solutions Ball (1) , Calphalon, Chesapeake Bay Candle, Crockpot, FoodSaver, Mapa, Mr. Coffee, Oster, Quickie, Rubbermaid, Rubbermaid Commercial Products, Sistema, Spontex, Sunbeam, WoodWick and Yankee Candle Commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions; household products, including kitchen appliances; food and home storage products; fresh preserving products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products Learning and Development Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex, Waterman and X-Acto Baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based products and labeling solutions Outdoor and Recreation Campingaz, Coleman, Contigo, ExOfficio and Marmot Products for outdoor and outdoor-related activities (1) and Ball® TM of Ball Corporation, used under license. This structure reflects the manner in which the CODM regularly assesses information for decision-making purposes, including the allocation of resources. The Company also provides general corporate services to its segments which is reported as a non-operating segment, Corporate. Selected information by segment is presented in the following tables (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net sales (1) Home and Commercial Solutions (3) $ 1,123 $ 1,212 $ 3,152 $ 3,804 Learning and Development 694 751 2,071 2,266 Outdoor and Recreation 231 289 834 1,104 $ 2,048 $ 2,252 $ 6,057 $ 7,174 Operating income (loss) (2) Home and Commercial Solutions (3) $ 64 $ (75) $ 6 $ 88 Learning and Development (127) 122 133 505 Outdoor and Recreation (42) 6 (38) 100 Corporate (54) (13) (176) (108) $ (159) $ 40 $ (75) $ 585 September 30, 2023 December 31, 2022 Segment assets Home and Commercial Solutions $ 4,964 $ 5,243 Learning and Development 4,126 4,494 Outdoor and Recreation 742 920 Corporate 2,740 2,605 $ 12,572 $ 13,262 Three Months Ended Nine Months Ended 2023 2022 2023 2022 Impairment of goodwill and indefinite-lived intangibles assets Home and Commercial Solutions $ — $ 123 $ 8 $ 123 Learning and Development 241 25 241 25 Outdoor and Recreation 22 — 22 — $ 263 $ 148 $ 271 $ 148 (1) All intercompany transactions have been eliminated. (2) Operating income (loss) by segment is net sales less cost of products sold, SG&A, restructuring and impairment of goodwill, intangibles and other assets. Certain Corporate expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of net sales basis and included in segment operating income (loss). (3) Home and Commercial Solutions net sales and operating income for the first quarter of 2022 include the CH&S business prior to its sale. The following table disaggregates revenue by major product grouping source for the periods indicated (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Commercial $ 368 $ 397 $ 1,094 $ 1,227 Kitchen 578 604 1,586 1,896 Home Fragrance 177 211 472 572 Connected Home and Security — — — 109 Home and Commercial Solutions 1,123 1,212 3,152 3,804 Baby 246 297 714 901 Writing 448 454 1,357 1,365 Learning and Development 694 751 2,071 2,266 Outdoor and Recreation 231 289 834 1,104 TOTAL $ 2,048 $ 2,252 $ 6,057 $ 7,174 The following table disaggregates revenue by geography for the periods indicated (in millions): Three Months Ended September 30, 2023 2022 North International TOTAL North International TOTAL Home and Commercial Solutions $ 764 $ 359 $ 1,123 $ 835 $ 377 $ 1,212 Learning and Development 501 193 694 559 192 751 Outdoor and Recreation 131 100 231 159 130 289 $ 1,396 $ 652 $ 2,048 $ 1,553 $ 699 $ 2,252 Nine Months Ended September 30, 2023 2022 North International TOTAL North International TOTAL Home and Commercial Solutions $ 2,105 $ 1,047 $ 3,152 $ 2,673 $ 1,131 $ 3,804 Learning and Development 1,505 566 2,071 1,683 583 2,266 Outdoor and Recreation 465 369 834 606 498 1,104 $ 4,075 $ 1,982 $ 6,057 $ 4,962 $ 2,212 $ 7,174 |
Litigation and Contingencies
Litigation and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and ContingenciesThe Company is subject to various claims and lawsuits in the ordinary course of business, including from time to time, contractual disputes, employment and environmental matters, product and general liability claims, claims that the Company has infringed on the intellectual property rights of others, and consumer and employment class actions. Some of the legal proceedings include claims for punitive as well as compensatory damages. In the ordinary course of business, the Company is also subject to legislative requests, regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings. In connection with such formal and informal inquiries, the Company receives numerous requests, subpoenas, and orders for documents, testimony and information in connection with various aspects of its activities. The Company previously disclosed that it had received a subpoena and related informal document requests from the SEC primarily relating to its sales practices and certain accounting matters. The Company cooperated with the SEC in connection with its investigation and requests for documents, testimony and information. Since January 2023, the Company had been discussing with the SEC the possibility of reaching a settlement to resolve the investigation, which related to the time period between third quarter of fiscal year 2016 and second quarter of fiscal year 2017. On September 29, 2023, the Company entered into a settlement with the SEC, which concluded the investigation of the Company. Under the terms of the settlement, the Company neither admitted nor denied the SEC's findings and agreed to pay a civil penalty of approximately $13 million, which did not have a material effect on the Company’s Condensed Consolidated Financial Statements. On June 30, 2021, the Company received a subpoena from the SEC requesting the production of documents related to its disclosure of the potential impact of the U.S. Treasury regulations most recently described in Footnote 12 - Income Ta xes in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on February 15, 2023. Securities Litigation The Company and certain of its current and former officers and directors were named as defendants in a securities class action lawsuit filed in the Superior Court of New Jersey, Hudson County, on behalf of all persons who acquired Company common stock pursuant to the S-4 registration statement and prospectus issued in connection with the April 2016 acquisition of Jarden Corporation (the “Registration Statement”). The action was filed on September 6, 2018 and was captioned Oklahoma Firefighters Pension and Retirement System v. Newell Brands Inc., et al ., Civil Action No. HUD-L-003492-18 (“Oklahoma Firefighters”). In October 2022, the Company entered into a settlement agreement to resolve the claims asserted in this lawsuit. Under the settlement, the Company agreed to create a settlement fund of approximately $103 million for the benefit of the class, subject to certain exclusions, which was predominantly funded by insurance proceeds. Both the settlement and the insurance receivable were recorded during the third quarter of 2022. The amount not funded by available insurance proceeds, which is not material to the Company, was expensed during the third quarter of 2022. In the fourth quarter of 2022, the Court granted the plaintiff's motion for preliminary approval of the settlement, and the Company and its insurers paid the required amount into the settlement fund. On February 10, 2023, the Court granted the plaintiff's motion for final approval of settlement. The deadline to appeal the order granting final approval of the settlement has expired and the settlement is final. Certain of the Company’s current and former officers and directors have been named in shareholder derivative lawsuits. On October 29, 2018, a shareholder filed a putative derivative complaint, Streicher v. Polk, et al ., in the United States District Court for the District of Delaware (the “Streicher Derivative Action”), purportedly on behalf of the Company against certain of the Company's current and former officers and directors. On October 30, 2018, another shareholder filed a putative derivative complaint, Martindale v. Polk, et al ., in the United States District Court for the District of Delaware (the “Martindale Derivative Action”), asserting substantially similar claims purportedly on behalf of the Company against the same defendants. The complaints allege, among other things, violations of the federal securities laws, breaches of fiduciary duties, unjust enrichment, and waste of corporate assets. The factual allegations underlying these claims are similar to the factual allegations made in the In re Newell Brands, Inc. Securities Litigation that was previously pending in the United States District Court for the District of New Jersey. That matter was dismissed by the District Court on January 10, 2020, and the dismissal was affirmed by the United States District Court of Appeals for the Third Circuit on December 1, 2020. The Streicher Derivative Action and the Martindale Derivative Action have been consolidated and the case is now known as In re Newell Brands Inc. Derivative Litigation (the “Newell Brands Derivative Action”), which is pending in the United States District Court for the District of Delaware. On December 30, 2020, two shareholders filed a putative derivative complaint, Weber, et al. v. Polk, et al ., in the United States District Court for the District of Delaware (the “Weber Derivative Action”), purportedly on behalf of the Company against certain of the Company’s current and former officers and directors. The complaint in the Weber Derivative Action alleges, among other things, breaches of fiduciary duty and waste of corporate assets. The factual allegations underlying these claims are similar to the factual allegations made in the Newell Brands Derivative Action. These derivative complaints seek damages and restitution for the Company from the individual defendants, the payment of costs and attorneys’ fees, and that the Company be directed to reform certain governance and internal procedures. The United States District Court for the District of Delaware stayed the Newell Brands Derivative Action and the Weber Derivative Action. On January 31, 2023, Plaintiff Streicher voluntarily dismissed herself from the Newell Brands Derivative Action without prejudice. On September 5, 2023, the Newell Brands Derivative Action and the Weber Derivative Action were dismissed with prejudice. On May 26, 2023, Plaintiff Streicher filed a new putative derivative complaint, Streicher v. Polk, et al ., in the Superior Court of New Jersey, Law Division: Hudson County (the “New Jersey Derivative Action” and, collectively with the Newell Brands Derivative Action and the Weber Derivative Action, the “Derivative Actions”), purportedly on behalf of the Company against certain of the Company’s current and former officers and directors. The complaint in the New Jersey Derivative Action alleges breaches of fiduciary duty. The factual allegations underlying these claims were similar to the factual allegations made in the Newell Brands Derivative Action and the Weber Derivative Action. On June 7, 2023, Plaintiff Streicher filed a Stipulation of Settlement (the “Stipulation”) and Motion for Preliminary Approval of Settlement in the New Jersey Derivative Action. The proposed settlement as set forth in the Stipulation provided for, among other things, a full release of the claims that the plaintiffs or any other Company stockholder asserted or could have asserted in the Derivative Actions against any of the defendants named in those actions, in exchange for the Company’s agreement to implement and/or maintain certain corporate governance measures, as more fully described in the Stipulation and Notice of Proposed Derivative Settlement as filed by the Company with the SEC on a Current Report on Form 8-K dated June 29, 2023 (the “Settlement”). On June 27, 2023, the Superior Court of Hudson County, New Jersey issued an order preliminarily approving the proposed Settlement as set forth in the Stipulation. On August 25, 2023, the Superior Court of Hudson County, New Jersey approved the Settlement and dismissed the case with prejudice. Environmental Matters The Company is involved in various matters concerning federal and state environmental laws and regulations, including matters in which the Company has been identified by the U.S. Environmental Protection Agency (“U.S. EPA”) and certain state environmental agencies as a potentially responsible party (“PRP”) at contaminated sites under the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”) and equivalent state laws. In assessing its environmental response costs, the Company has considered several factors, including the extent of the Company’s volumetric contribution at each site relative to that of other PRPs; the kind of waste; the terms of existing cost sharing and other applicable agreements; the financial ability of other PRPs to share in the payment of requisite costs; the Company’s prior experience with similar sites; environmental studies and cost estimates available to the Company; the effects of inflation on cost estimates; and the extent to which the Company’s, and other parties’ status as PRPs is disputed. The Company’s estimate of environmental remediation costs associated with these matters at September 30, 2023 was $36 million which is included in other accrued liabilities and other noncurrent liabilities in the Condensed Consolidated Balance Sheets. No insurance recovery was taken into account in determining the Company’s cost estimates or reserves, nor do the Company’s cost estimates or reserves reflect any discounting for present value purposes, except with respect to certain long-term operations and maintenance CERCLA matters. Because of the uncertainties associated with environmental investigations and response activities, the possibility that the Company could be identified as a PRP at sites identified in the future that require the incurrence of environmental response costs and the possibility that sites acquired in business combinations may require environmental response costs, actual costs to be incurred by the Company may vary from the Company’s estimates. Lower Passaic River Matter The U.S. EPA has issued General Notice Letters to over 100 entities, including the Company and its subsidiary, Berol Corporation (together, the “Company Parties”), alleging that they are PRPs at the Diamond Alkali Superfund Site (the “Site”) pursuant to CERCLA. The Site is the subject of investigation and remedial activities and related settlement negotiations with the U.S. EPA. The Site is divided into four “operable units,” and the Company Parties have received General Notice Letters in connection with operable Unit 2, which comprises the lower 8.3 miles of the Lower Passaic River and its tributaries (“Unit 2”), and operable Unit 4, which comprises a 17-mile stretch of the Lower Passaic River and its tributaries (“Unit 4”). Unit 2 is geographically subsumed within Unit 4. In October 2021, the U.S. EPA issued a Record of Decision for an interim remedy for the upper 9 miles of Unit 4, selecting a combination of dredging and capping as the remedial alternative, which the U.S. EPA estimates will cost $441 million in the aggregate. The U.S. EPA also performed a Source Control Early Action Focused Feasibility Study for Unit 2, which culminated in a Record of Decision in 2016. The U.S. EPA estimates that the selected remedy for Unit 2 set forth in its Record of Decision will cost $1.4 billion in the aggregate. In September 2017, the U.S. EPA announced an allocation process involving roughly 80 Unit 2 General Notice Letter recipients, with the intent of offering cash-out settlements to a number of parties (the “U.S. EPA Settlement”). The allocation process has concluded, and the Company Parties were placed in the lowest tier of relative responsibility among allocation parties. On December 16, 2022, the U.S. EPA simultaneously filed a complaint and lodged a Consent Decree to resolve the liability of the Company Parties and other settlement parties for past and future CERCLA response costs at Unit 2 and Unit 4. The proposed Consent Decree is undergoing public notice and comment, and it remains subject to court entry. As of the date of this filing, the Company does not expect that its allocation in the U.S. EPA Settlement relating to Unit 2 and Unit 4, if the settlement is finalized, will be material to the Company. In June 2018, Occidental Chemical Corporation (“OCC”) sued over 100 parties, including the Company Parties, in the U.S. District Court in New Jersey pursuant to CERCLA, requesting cost recovery, contribution, and a declaratory judgement. The defendants, in turn, filed claims against 42 third-party defendants, and filed counterclaims against OCC (collectively, the “OCC Litigation”). The primary focus of the OCC Litigation has been certain past and future costs for investigation, design and remediation of Units 2 and 4. However, OCC has stated that it anticipates asserting claims against defendants regarding Newark Bay, which is also part of the Site, after the U.S. EPA has selected the Newark Bay remedy. OCC has also stated that it may broaden its claims in the future after completion of the Natural Resource Damage Assessment described below. In March 2023, the Court granted an unopposed motion to stay the OCC Litigation. At this time, the Company cannot predict the eventual outcome. In 2007, the National Oceanic and Atmospheric Administration (“NOAA”), acting as the lead administrative trustee on behalf of itself and the U.S. Department of the Interior, issued a Notice of Intent to Perform a Natural Resource Damage Assessment to the Company Parties, along with numerous other entities, identifying the recipients as PRPs. The federal trustees (who now include the United States Department of Commerce, represented by NOAA, and the Department of the Interior, represented by the United States Fish and Wildlife Service) are presently undertaking the Natural Resource Damage Assessment with respect to the Site. Based on currently known facts and circumstances, the Company does not believe that the Lower Passaic River matter is reasonably likely to have a material impact on the Company’s results of operations. However, in the event of one or more adverse determinations related to this matter, including the OCC Litigation and Natural Resource Damage Assessment noted above (for which the Company cannot currently estimate the range of possible losses), it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. Because of the uncertainties associated with environmental investigations and response activities, the possibility that the Company could be identified as a PRP at sites identified in the future that require the incurrence of environmental response costs and the possibility that sites acquired in business combinations may require environmental response costs, actual costs to be incurred by the Company may vary from the Company’s estimates. Other Matters In the normal course of business and as part of its acquisition and divestiture strategy, the Company may provide certain representations and indemnifications related to legal, environmental, product liability, tax or other types of issues. Based on the nature of these representations and indemnifications, it is not possible to predict the maximum potential payments under all of these agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements did not have a material effect on the Company’s business, financial condition or results of operations. In connection with the 2018 sale of The Waddington Group, Novolex Holdings, Inc. (the “Buyer”) filed suit against the Company in October 2019 in the Superior Court of Delaware. The Buyer generally alleged that the Company fraudulently breached certain representations in the Equity Purchase Agreement between the Company and Buyer, dated May 2, 2018, resulting in an inflated purchase price for The Waddington Group. In the year ended December 31, 2021, the Company recorded an immaterial reserve to continuing operations in its Consolidated Financial Statements based on its best estimate of probable loss associated with this matter. Further, in connection with the Company’s sale of The United States Playing Card Company (“USPC”), Cartamundi, Inc. and Cartamundi España, S.L. (the “Buyers”) have notified the Company of their contention that certain representations and warranties in the Stock Purchase Agreement, dated June 4, 2019, were inaccurate and/or breached, and have sought indemnification to the extent that the Buyers are required to pay related damages arising out of a third party lawsuit that was filed against USPC. During the fourth quarter of 2022, the Company recorded an immaterial reserve based on the outcome of a judicial ruling relating to indirect taxes in an international entity. During the three months ended March 31, 2023, the Company paid the estimated liability to the relevant taxing authorities. Although the Company cannot predict the ultimate outcome of this contingency with certainty, it believes that any additional amounts it may be required to pay will not have a material effect on the Company’s future Condensed Consolidated Financial Statements. Although management of the Company cannot predict the ultimate outcome of other proceedings with certainty, it believes that the ultimate resolution of the Company’s proceedings, including any amounts it may be required to pay in excess of amounts reserved, will not have a material effect on the Company’s Condensed Consolidated Financial Statements, except as otherwise described in this Footnote 17 . At September 30, 2023, the Company had approximately $40 million in standby letters of credit primarily related to the Company’s self-insurance programs, including workers’ compensation, product liability and medical expenses. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventAs disclosed in the Company's Current Report on Form 8-K filed with the SEC on October 5, 2023, the Company entered into a new three-year revolving accounts receivable facility (the “New Receivables Facility”). The New Receivables Facility provides for liquidity in an amount of up to $225 million between February and April of each year and up to $275 million at all other times. As part of the New Receivables Facility, the Company and certain of its subsidiaries entered into a Receivables Sale Agreement and a Receivables Purchase Agreement. Under the Receivables Sale Agreement, certain subsidiaries (the “Originators”) sell and commit to continue to sell all of existing and future accounts receivable (subject to certain excluded accounts receivable) to Jarden Receivables LLC, a special purpose entity (the “SPE”). Pursuant to a Receivables Purchase Agreement, by and among the SPE, Royal Bank of Canada, as administrative agent (the “Administrative Agent”), the Company and certain other persons from time to time party thereto as purchasers (the “Purchasers”) and group agents, the SPE will sell certain accounts receivable (the “Sold Receivables”) to the Administrative Agent (for the ratable benefit of the Purchasers), guarantee the payment of the Sold Receivables and pledge its remaining accounts receivable to the Administrative Agent in order to secure such guarantee. The New Receivables Facility bears a fluctuating rate equal to (i) the weighted average cost of commercial paper issued by any conduit purchaser to fund or maintain its investment, plus related dealer commissions and note issuance costs or (ii) if funded by a committed purchaser, the SOFR calculated based on term SOFR for a one-month interest period, plus 10 basis points. The New Receivables Facility expires in October 2026. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ (218) | $ 19 | $ (302) | $ 446 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Newell Brands Inc. (collectively with its subsidiaries, the “Company”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (including normal recurring accruals) considered necessary for a fair statement of the financial position and the results of operations of the Company. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, and the footnotes thereto, included in the Company’s most recent Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet at December 31, 2022 has been derived from the audited financial statements as of that date, but it does not include all the information and footnotes required by U.S. GAAP for a complete financial statement. |
Use of Estimates and Risks | Use of Estimates and Risks Management’s application of U.S. GAAP in preparing the Company's condensed consolidated financial statements requires the pervasive use of estimates and assumptions. The Company continues to be impacted by inflationary pressures, softening global demand, focus by major retailers on the rebalancing of inventory levels, rising interest rates and indirect macroeconomic impacts from the Russia-Ukraine conflict. These collective macroeconomic trends, the duration or severity of which are highly uncertain, are rapidly changing the retail and consumer landscape and are expected to continue to negatively impact the Company’s operating results, cash flows and financial condition during the current year. As consumers continue to face widespread increases in prices and interest rates, their discretionary spending and purchase patterns may continue to be unfavorably impacted. The high level of uncertainty of these factors has resulted in estimates and assumptions that have the potential for more variability and are more subjective. In addition, some of the other inherent estimates and assumptions used in the Company’s forecasted results of operations and cash flows that form the basis of the determination of the fair value of the reporting units for goodwill and indefinite-lived intangible asset impairment testing are outside the control of management, including interest rates, cost of capital, tax rates, industry growth, credit ratings, foreign exchange rates and labor inflation. Although management has made its best estimates and assumptions based upon current information, actual results could materially differ given the uncertainty of these factors and may require future changes to such estimates and assumptions, including reserves, which may result in future expense or impairment charges. |
Seasonal Variations | Seasonal VariationsSales of the Company’s products tend to be seasonal, with sales, operating income and operating cash flow in the first quarter generally lower than any other quarter during the year, driven principally by reduced volume and the mix of products sold in the first quarter. The seasonality of the Company’s sales volume combined with the accounting for fixed costs, such as depreciation, amortization, rent, personnel costs and interest expense, impacts the Company’s results on a quarterly basis. Also, the Company typically tends to generate the majority of its operating cash flow in the third and fourth quarters of the year due to seasonal variations in operating results, the timing of annual performance-based compensation payments, customer program payments, working capital requirements and credit terms provided to customers. In addition, uncertainty still remains over the volatility and direction of future consumer and customer demand patterns, as well as inflationary and supply chain pressures. Accordingly, the Company’s results of operations and cash flows for the three and nine months ended September 30, 2023 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2023. |
Adoption of New Accounting Guidance | Adoption of New Accounting Guidance Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” In January 2021, the FASB clarified the scope of this guidance with the issuance of ASU 2021-01, Reference Rate Reform: Scope. ASU 2020-04 provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate if certain criteria are met. This ASU was further updated with the issuance of ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848 , which extends the sunset date of the guidance. ASU 2020-04 may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company adopted ASU 2020-04 and it did not have a material impact on its Consolidated Financial Statements. In October 2022, the FASB issued ASU 2022-04, “ Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ” This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. See disclosures hereafter for further information. |
Sales of Accounts Receivables | Sales of Accounts Receivables Factored receivables at September 30, 2023 associated with the Company's existing factoring agreement (the “Customer Receivables Purchase Agreement”) were approximately $345 million, a decrease of approximately $75 million from December 31, 2022. Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the Condensed Consolidated Balance Sheet at the time of the sales transaction. The Company classifies the proceeds received from the sales of accounts receivable as an operating cash flow and collections of accounts receivables not yet submitted to the financial institution as a financing cash flow in the Condensed Consolidated Statement of Cash Flows. The Company records the discount as other (income) expense, net in the Condensed Consolidated Statement of Operations. As further described in Footnote 18, in October 2023, the Company entered into a new accounts receivable facility pursuant to which receivables of certain subsidiaries are sold or pledged. |
Supplier Finance Program Obligations | Supplier Finance Program Obligations The Company has worked with its suppliers of goods and services over the past several years to revisit terms and conditions, including the extension of payment terms. Additionally, a global financial institution offers a voluntary supply chain finance program (the “SCF Program”) which enables suppliers, at their sole discretion, to sell their receivables from the Company to the financial institution on a non-recourse basis. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The following table displays the changes in Accumulated Other Comprehensive Income (Loss) (“AOCL”) by component, net of tax, for the nine months ended September 30, 2023 (in millions): Cumulative Pension and Postretirement Costs Derivative AOCL Balance at December 31, 2022 $ (688) $ (309) $ (14) $ (1,011) Other comprehensive loss before reclassifications (8) (1) (6) (15) Amounts reclassified to earnings — 53 (2) 51 Net current period other comprehensive income (loss) (8) 52 (8) 36 Balance at September 30, 2023 $ (696) $ (257) $ (22) $ (975) |
Schedule of Reclassification from AOCL to Results of Operations | Reclassifications from AOCL to the results of operations for the three and nine months ended September 30, 2023 and 2022 were pretax (income) expense of (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cumulative translation adjustment (1) $ — $ — $ — $ 6 Pension and postretirement benefit plans (2) 64 4 69 11 Derivative financial instruments (3) 5 (7) (3) (10) (1) See Footnote 2 for further information. (2) See Footnote 11 for further information. (3) See Footnote 10 for further information. |
Schedule of Income Tax Provision (Benefit) Allocated to Components of AOCL | The income tax provision (benefit) allocated to the components of AOCL for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Foreign currency translation adjustments $ 21 $ 26 $ 3 $ 46 Pension and postretirement benefit costs 15 1 16 2 Derivative financial instruments 3 3 (2) 6 Income tax provision related to AOCL $ 39 $ 30 $ 17 $ 54 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs Incurred by Reportable Business Segment | Restructuring costs, net incurred by reportable business segments for all restructuring activities for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Home and Commercial Solutions $ 10 $ 1 $ 37 $ 4 Learning and Development 3 1 14 3 Outdoor and Recreation — 1 8 3 Corporate 3 — 17 2 $ 16 $ 3 $ 76 $ 12 |
Schedule of Accrued Restructuring Costs Activity | crued restructuring costs activity for the nine months ended September 30, 2023 was as follows (in millions): Balance at December 31, 2022 Restructuring Payments Foreign Balance at Severance and termination costs $ 7 $ 71 $ (57) $ — $ 21 Contract termination and other costs — 5 (4) (1) — $ 7 $ 76 $ (61) $ (1) $ 21 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Net Inventories | Inventories are comprised of the following (in millions): September 30, 2023 December 31, 2022 Raw materials and supplies $ 237 $ 285 Work-in-process 181 218 Finished products 1,360 1,700 $ 1,778 $ 2,203 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, is comprised of the following (in millions): September 30, 2023 December 31, 2022 Land $ 72 $ 76 Buildings and improvements 662 648 Machinery and equipment 2,457 2,349 3,191 3,073 Less: Accumulated depreciation (1,989) (1,889) $ 1,202 $ 1,184 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill by Reportable Business Segment | Goodwill activity for the nine months ended September 30, 2023 is as follows (in millions): Segments Net Book Value at December 31, 2022 Impairment Charges Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value at September 30, 2023 Home and Commercial Solutions $ 747 $ — $ — $ 4,052 $ (3,305) $ 747 Learning and Development 2,551 (241) (8) 3,389 (1,087) 2,302 Outdoor and Recreation — — — 788 (788) — $ 3,298 $ (241) $ (8) $ 8,229 $ (5,180) $ 3,049 |
Schedule of Other Intangible Assets, Net | Other intangible assets, net, are comprised of the following (in millions): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Tradenames — indefinite life (1) $ 1,581 $ — $ 1,581 $ 1,689 $ — $ 1,689 Tradenames — other (1) 230 (97) 133 160 (79) 81 Capitalized software 619 (504) 115 602 (481) 121 Patents and intellectual property 22 (18) 4 22 (17) 5 Customer relationships and distributor channels 1,073 (356) 717 1,072 (319) 753 $ 3,525 $ (975) $ 2,550 $ 3,545 $ (896) $ 2,649 (1) In connection with the operating model changes associated with Project Phoenix, the Company determined that six tradenames with aggregate carrying values of $70 million no longer met indefinite-lived criteria and were reclassified during the first quarter as finite-lived tradenames, with useful lives ranging from five |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities are comprised of the following (in millions): September 30, 2023 December 31, 2022 Customer accruals $ 702 $ 636 Operating lease liabilities 119 121 Accrued self-insurance liabilities, contingencies and warranty 105 99 Accrued interest expense 97 63 Accrued income taxes 79 53 Accrued marketing and freight expenses 72 73 Other 235 227 $ 1,409 $ 1,272 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt is comprised of the following at the dates indicated (in millions): September 30, 2023 December 31, 2022 4.00% senior notes due 2024 $ 197 $ 196 4.875% senior notes due 2025 497 496 3.90% senior notes due 2025 47 47 4.20% senior notes due 2026 1,979 1,978 6.375% senior notes due 2027 474 483 6.625% senior notes due 2029 467 481 5.375% senior notes due 2036 417 417 5.50% senior notes due 2046 658 658 Revolving credit facility 375 225 Commercial paper — 359 Receivables facility — 35 Other debt 2 2 Total debt 5,113 5,377 Short-term debt and current portion of long-term debt (376) (621) Long-term debt $ 4,737 $ 4,756 Weighted average interest rates are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Total debt 5.1 % 4.1 % 5.1 % 4.3 % Short-term debt 7.7 % 3.8 % 6.8 % 3.0 % |
Schedule of Fair Value of Senior Notes | The fair value of the Company’s senior notes are based upon prices of similar instruments in the marketplace and are as follows (in millions): September 30, 2023 December 31, 2022 Fair Value Book Value Fair Value Book Value Senior notes $ 4,395 $ 4,736 $ 4,511 $ 4,756 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of derivative financial instruments at the dates indicated (in millions): Fair Value of Derivatives Assets (Liabilities) Balance Sheet Location September 30, 2023 December 31, 2022 Derivatives designated as effective hedges: Cash Flow Hedges Foreign currency contracts Prepaid expenses and other current assets $ 4 $ 5 Foreign currency contracts Other accrued liabilities (6) (9) Fair Value Hedges Interest rate swaps Other accrued liabilities (23) (14) Interest rate swaps Other noncurrent liabilities (31) (16) Net Investment Hedges Cross-currency swaps Prepaid expenses and other current assets 26 28 Cross-currency swaps Other assets 50 45 Cross-currency swaps Other noncurrent liabilities (62) (75) Derivatives not designated as effective hedges: Foreign currency contracts Prepaid expenses and other current assets 19 19 Foreign currency contracts Other accrued liabilities (6) (10) Total $ (29) $ (27) |
Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges | The following table presents gain and (loss) activity (on a pretax basis) related to derivative financial instruments designated or previously designated, as effective hedges (in millions): Three Months Three Months Gain/(Loss) Gain/(Loss) Location of gain /(loss) recognized in income Recognized in OCI (effective portion) Reclassified from AOCL to Income Recognized in OCI (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (2) $ — $ (2) Foreign currency contracts Net sales and cost of products sold 6 (3) 20 9 Cross-currency swaps Other (income) expense, net 86 — 108 — Total $ 92 $ (5) $ 128 $ 7 Nine Months Nine Months Gain/(Loss) Gain/(Loss) Location of gain (loss) recognized in income Recognized in OCI (effective portion) Reclassified from AOCL to Income Recognized in OCI (effective portion) Reclassified from AOCL to Income Interest rate swaps Interest expense, net $ — $ (4) $ — $ (5) Foreign currency contracts Net sales and cost of products sold (8) 7 39 15 Cross-currency swaps Other (income) expense, net 16 — 190 — Total $ 8 $ 3 $ 229 $ 10 |
Employee Benefit and Retireme_2
Employee Benefit and Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule Of Company's Pension Cost And Supplemental Retirement Plans | The components of pension and postretirement benefit (income) expense for the periods indicated, are as follows (in millions): Pension Benefits U.S. International U.S. International Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ 1 $ — $ — $ 2 $ 3 Interest cost 11 6 5 1 34 19 13 6 Expected return on plan assets (13) (12) (3) (1) (41) (36) (9) (4) Amortization 1 4 4 1 3 12 5 2 Settlements — — 61 — — — 66 — Total (income) expense $ (1) $ (2) $ 67 $ 2 $ (4) $ (5) $ 77 $ 7 Postretirement Benefits Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest cost $ 1 $ — $ 1 $ — Amortization (2) (1) (5) (3) Total income $ (1) $ (1) $ (4) $ (3) |
Weighted Average Shares Outst_2
Weighted Average Shares Outstanding (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Weighted Average Shares Outstanding | The computations of the weighted average shares outstanding for the periods indicated are as follows (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic weighted average shares outstanding 414.2 413.6 414.1 416.4 Dilutive securities (1) — 1.0 — 1.9 Diluted weighted average shares outstanding 414.2 414.6 414.1 418.3 (1) The three and nine months ended September 30, 2023 excludes 2.1 million and 1.5 million, respectively, of potentially dilutive share-based awards as their effect would be anti-dilutive. |
Stockholders' Equity and Shar_2
Stockholders' Equity and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Fair Valuation Assumptions for Stock Options | The weighted average assumptions used to determine the fair value of stock options granted for the nine months ended September 30, 2023, were as follows: Risk-free interest rates 3.6 % Expected volatility 42.1 % Expected dividend yield 4.4 % Expected life (in years) 6.9 Exercise price $12.86 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Non-Pension Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s non-pension financial assets and liabilities, which are measured at fair value on a recurring basis (in millions): September 30, 2023 December 31, 2022 Fair value Asset (Liability) Fair value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 99 $ — $ 99 $ — $ 97 $ — $ 97 Liabilities — (128) — (128) — (124) — (124) Investment securities, including mutual funds 15 — — 15 14 — — 14 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company's three primary reportable segments are: Segment Key Brands Description of Primary Products Home and Commercial Solutions Ball (1) , Calphalon, Chesapeake Bay Candle, Crockpot, FoodSaver, Mapa, Mr. Coffee, Oster, Quickie, Rubbermaid, Rubbermaid Commercial Products, Sistema, Spontex, Sunbeam, WoodWick and Yankee Candle Commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions; household products, including kitchen appliances; food and home storage products; fresh preserving products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products Learning and Development Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex, Waterman and X-Acto Baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based products and labeling solutions Outdoor and Recreation Campingaz, Coleman, Contigo, ExOfficio and Marmot Products for outdoor and outdoor-related activities (1) and Ball® TM of Ball Corporation, used under license. Selected information by segment is presented in the following tables (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net sales (1) Home and Commercial Solutions (3) $ 1,123 $ 1,212 $ 3,152 $ 3,804 Learning and Development 694 751 2,071 2,266 Outdoor and Recreation 231 289 834 1,104 $ 2,048 $ 2,252 $ 6,057 $ 7,174 Operating income (loss) (2) Home and Commercial Solutions (3) $ 64 $ (75) $ 6 $ 88 Learning and Development (127) 122 133 505 Outdoor and Recreation (42) 6 (38) 100 Corporate (54) (13) (176) (108) $ (159) $ 40 $ (75) $ 585 September 30, 2023 December 31, 2022 Segment assets Home and Commercial Solutions $ 4,964 $ 5,243 Learning and Development 4,126 4,494 Outdoor and Recreation 742 920 Corporate 2,740 2,605 $ 12,572 $ 13,262 Three Months Ended Nine Months Ended 2023 2022 2023 2022 Impairment of goodwill and indefinite-lived intangibles assets Home and Commercial Solutions $ — $ 123 $ 8 $ 123 Learning and Development 241 25 241 25 Outdoor and Recreation 22 — 22 — $ 263 $ 148 $ 271 $ 148 (1) All intercompany transactions have been eliminated. (2) Operating income (loss) by segment is net sales less cost of products sold, SG&A, restructuring and impairment of goodwill, intangibles and other assets. Certain Corporate expenses of an operational nature are allocated to business segments primarily on a net sales basis. Corporate depreciation and amortization is allocated to the segments on a percentage of net sales basis and included in segment operating income (loss). (3) Home and Commercial Solutions net sales and operating income for the first quarter of 2022 include the CH&S business prior to its sale. |
Schedule of Disaggregation of Revenue by Major Product Grouping Source and Geography | The following table disaggregates revenue by major product grouping source for the periods indicated (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Commercial $ 368 $ 397 $ 1,094 $ 1,227 Kitchen 578 604 1,586 1,896 Home Fragrance 177 211 472 572 Connected Home and Security — — — 109 Home and Commercial Solutions 1,123 1,212 3,152 3,804 Baby 246 297 714 901 Writing 448 454 1,357 1,365 Learning and Development 694 751 2,071 2,266 Outdoor and Recreation 231 289 834 1,104 TOTAL $ 2,048 $ 2,252 $ 6,057 $ 7,174 The following table disaggregates revenue by geography for the periods indicated (in millions): Three Months Ended September 30, 2023 2022 North International TOTAL North International TOTAL Home and Commercial Solutions $ 764 $ 359 $ 1,123 $ 835 $ 377 $ 1,212 Learning and Development 501 193 694 559 192 751 Outdoor and Recreation 131 100 231 159 130 289 $ 1,396 $ 652 $ 2,048 $ 1,553 $ 699 $ 2,252 Nine Months Ended September 30, 2023 2022 North International TOTAL North International TOTAL Home and Commercial Solutions $ 2,105 $ 1,047 $ 3,152 $ 2,673 $ 1,131 $ 3,804 Learning and Development 1,505 566 2,071 1,683 583 2,266 Outdoor and Recreation 465 369 834 606 498 1,104 $ 4,075 $ 1,982 $ 6,057 $ 4,962 $ 2,212 $ 7,174 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 01, 2023 segment | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of operating segments | segment | 3 | 3 | |||||
Reduction of cost of products sold | $ (1,427) | $ (1,594) | $ (4,325) | $ (4,940) | |||
Increase to income tax provision | (80) | (60) | (77) | 41 | |||
Net income (loss) | (218) | 19 | (302) | 446 | |||
Other (income) expense, net | 70 | 24 | 91 | (73) | |||
Impairment charges | 241 | ||||||
Sale of accounts receivable | 345 | ||||||
Decrease in factored account receivable | $ 75 | ||||||
Supplier finance program obligations | 100 | 100 | $ 100 | ||||
Baby Reporting Unit | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impairment charges | $ 241 | $ 0 | |||||
Outdoor and Recreation | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impairment charges | $ 0 | ||||||
Maximum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Supplier finance program payments terms | 125 days | 125 days | |||||
Tradenames | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impairment of indefinite-lived intangible assets | $ 8 | 40 | |||||
Tradenames | Outdoor and Recreation | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impairment of indefinite-lived intangible assets | $ 22 | ||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reduction of cost of products sold | 5 | 16 | |||||
Increase to income tax provision | 1 | 4 | |||||
Net income (loss) | 4 | 12 | |||||
Restatement Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other (income) expense, net | $ 16 | $ 35 |
Divestiture Activity - Addition
Divestiture Activity - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain from sale of businesses, net | $ 0 | $ 136 | |
CH&S | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of business, consideration received | $ 593 | ||
Gain from sale of businesses, net | $ 136 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,315 | $ 4,022 | $ 3,519 | $ 4,158 |
Total other comprehensive income (loss), net of tax | 46 | (78) | 36 | (133) |
Ending balance | 3,126 | 3,855 | 3,126 | 3,855 |
Cumulative Translation Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (688) | |||
Other comprehensive loss before reclassifications | (8) | |||
Amounts reclassified to earnings | 0 | |||
Total other comprehensive income (loss), net of tax | (8) | |||
Ending balance | (696) | (696) | ||
Pension and Postretirement Costs | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (309) | |||
Other comprehensive loss before reclassifications | (1) | |||
Amounts reclassified to earnings | 53 | |||
Total other comprehensive income (loss), net of tax | 52 | |||
Ending balance | (257) | (257) | ||
Derivative Financial Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (14) | |||
Other comprehensive loss before reclassifications | (6) | |||
Amounts reclassified to earnings | (2) | |||
Total other comprehensive income (loss), net of tax | (8) | |||
Ending balance | (22) | (22) | ||
AOCL | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,021) | (937) | (1,011) | (882) |
Other comprehensive loss before reclassifications | (15) | |||
Amounts reclassified to earnings | 51 | |||
Total other comprehensive income (loss), net of tax | 36 | |||
Ending balance | $ (975) | $ (1,015) | $ (975) | $ (1,015) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) -Reclassifications from AOCL to Results of Operations (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cumulative translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax (income) expense | $ 0 | $ 0 | $ 0 | $ 6 |
Pension and postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax (income) expense | 64 | 4 | 69 | 11 |
Derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax (income) expense | $ 5 | $ (7) | $ (3) | $ (10) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Schedule of Income Tax Provision (Benefit) Allocated to Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision related to AOCL | $ 39 | $ 30 | $ 17 | $ 54 |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision related to AOCL | 21 | 26 | 3 | 46 |
Pension and Postretirement Costs | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision related to AOCL | 15 | 1 | 16 | 2 |
Derivative Financial Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision related to AOCL | $ 3 | $ 3 | $ (2) | $ 6 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Costs Incurred by Reportable Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 16 | $ 3 | $ 76 | $ 12 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 3 | 0 | 17 | 2 |
Home and Commercial Solutions | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 10 | 1 | 37 | 4 |
Learning and Development | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 3 | 1 | 14 | 3 |
Outdoor and Recreation | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 0 | $ 1 | $ 8 | $ 3 |
Restructuring - Schedule of Acc
Restructuring - Schedule of Accrued Restructuring Costs Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 7 | |||
Restructuring Costs, Net | $ 16 | $ 3 | 76 | $ 12 |
Payments | (61) | |||
Foreign Currency and Other | (1) | |||
Ending balance | 21 | 21 | ||
Severance and termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 7 | |||
Restructuring Costs, Net | 71 | |||
Payments | (57) | |||
Foreign Currency and Other | 0 | |||
Ending balance | 21 | 21 | ||
Contract termination and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring Costs, Net | 5 | |||
Payments | (4) | |||
Foreign Currency and Other | (1) | |||
Ending balance | $ 0 | $ 0 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 16 | $ 3 | $ 76 | $ 12 |
Project Phoenix | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 10 | 63 | ||
Project Phoenix | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5 | |||
Project Phoenix | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 100 | 100 | ||
Expected cash payments | 95 | |||
Project Phoenix | Minimum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 80 | 80 | ||
Project Phoenix | Minimum | Office Space Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 15 | 15 | ||
Project Phoenix | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 130 | 130 | ||
Expected cash payments | 120 | |||
Project Phoenix | Maximum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 105 | 105 | ||
Project Phoenix | Maximum | Office Space Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 20 | 20 | ||
Network Optimization Project | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3 | 5 | ||
Network Optimization Project | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 37 | 37 | ||
Expected cash payments | 35 | |||
Network Optimization Project | Minimum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 8 | 8 | ||
Network Optimization Project | Minimum | Industrial Site Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 29 | 29 | ||
Network Optimization Project | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 49 | 49 | ||
Expected cash payments | 44 | |||
Network Optimization Project | Maximum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 11 | 11 | ||
Network Optimization Project | Maximum | Industrial Site Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring charges | 38 | 38 | ||
Other Restructuring And Restructuring-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3 | $ 3 | $ 8 | $ 12 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 237 | $ 285 |
Work-in-process | 181 | 218 |
Finished products | 1,360 | 1,700 |
Total inventories | $ 1,778 | $ 2,203 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,191 | $ 3,073 |
Less: Accumulated depreciation | (1,989) | (1,889) |
Total property, plant and equipment | 1,202 | 1,184 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 72 | 76 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 662 | 648 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,457 | $ 2,349 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 53 | $ 50 | $ 158 | $ 146 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Schedule of Changes in Goodwill by Reportable Business Segment (Details) - USD ($) $ in Millions | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | $ 3,298 |
Impairment Charges | (241) |
Foreign Exchange | (8) |
Gross Carrying Amount | 8,229 |
Accumulated Impairment Charges | (5,180) |
Net book value, ending balance | 3,049 |
Home and Commercial Solutions | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | 747 |
Impairment Charges | 0 |
Foreign Exchange | 0 |
Gross Carrying Amount | 4,052 |
Accumulated Impairment Charges | (3,305) |
Net book value, ending balance | 747 |
Learning and Development | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | 2,551 |
Impairment Charges | (241) |
Foreign Exchange | (8) |
Gross Carrying Amount | 3,389 |
Accumulated Impairment Charges | (1,087) |
Net book value, ending balance | 2,302 |
Outdoor and Recreation | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | 0 |
Impairment Charges | 0 |
Foreign Exchange | 0 |
Gross Carrying Amount | 788 |
Accumulated Impairment Charges | (788) |
Net book value, ending balance | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) tradename | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 241 | ||||
Amortization expense for intangible assets | $ 28 | $ 25 | 82 | $ 76 | |
Baby Reporting Unit | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges | 241 | $ 0 | |||
Home Solutions | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges | 108 | ||||
Outdoor and Recreation | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 0 | ||||
Tradenames | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 8 | $ 40 | |||
Tradenames | Baby Reporting Unit | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Number of indefinite-lived intangible assets | tradename | 2 | ||||
Tradenames | Outdoor and Recreation | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of indefinite-lived intangible assets | $ 22 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets, Net (Details) $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 USD ($) tradename | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,525 | $ 3,545 | |
Accumulated Amortization | (975) | (896) | |
Net Book Value | 2,550 | 2,649 | |
Tradenames | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 230 | 160 | |
Accumulated Amortization | (97) | (79) | |
Net Book Value | 133 | 81 | |
Tradenames | Project Phoenix | |||
Intangible Assets [Line Items] | |||
Number of finite-lived intangible assets | tradename | 6 | ||
Finite-lived trade names, gross | $ 70 | ||
Tradenames | Minimum | Project Phoenix | |||
Intangible Assets [Line Items] | |||
Finite-lived trade names, useful lives | 5 years | ||
Tradenames | Maximum | Project Phoenix | |||
Intangible Assets [Line Items] | |||
Finite-lived trade names, useful lives | 10 years | ||
Capitalized software | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 619 | 602 | |
Accumulated Amortization | (504) | (481) | |
Net Book Value | 115 | 121 | |
Patents and intellectual property | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 22 | 22 | |
Accumulated Amortization | (18) | (17) | |
Net Book Value | 4 | 5 | |
Customer relationships and distributor channels | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,073 | 1,072 | |
Accumulated Amortization | (356) | (319) | |
Net Book Value | 717 | 753 | |
Tradenames | |||
Intangible Assets [Line Items] | |||
Net Book Value | $ 1,581 | $ 1,689 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Customer accruals | $ 702 | $ 636 |
Operating lease liabilities | 119 | 121 |
Accrued self-insurance liabilities, contingencies and warranty | 105 | 99 |
Accrued marketing and freight expenses | 72 | 73 |
Accrued interest expense | 97 | 63 |
Accrued income taxes | 79 | 53 |
Other | 235 | 227 |
Other accrued liabilities | $ 1,409 | $ 1,272 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 0 | $ 359 |
Other debt | 2 | 2 |
Total debt | 5,113 | 5,377 |
Short-term debt and current portion of long-term debt | (376) | (621) |
Long-term debt | $ 4,737 | 4,756 |
4.00% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4% | |
Senior notes | $ 197 | 196 |
4.875% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.875% | |
Senior notes | $ 497 | 496 |
3.90% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | |
Senior notes | $ 47 | 47 |
4.20% senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.20% | |
Senior notes | $ 1,979 | 1,978 |
6.375% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.375% | |
Senior notes | $ 474 | 483 |
6.625% senior notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.625% | |
Senior notes | $ 467 | 481 |
5.375% senior notes due 2036 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.375% | |
Senior notes | $ 417 | 417 |
5.50% senior notes due 2046 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Senior notes | $ 658 | 658 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 375 | $ 225 |
Debt - Additional Information (
Debt - Additional Information (Details) | 9 Months Ended | |||
Aug. 21, 2023 USD ($) | Aug. 03, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |||
Receivables facility | 375,000,000 | |||
Proceeds from lines of credit | 150,000,000 | |||
Line of credit facility, remaining borrowing capacity | 1,100,000,000 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Receivables facility | 21,000,000 | |||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Expected interest rate adjustment | $ 15,000,000 | |||
Interest rate adjustment, annualized amount | 8,000,000 | |||
Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 375,000,000 | |||
Receivables facility | 0 | $ 35,000,000 | ||
Moody's Corporation | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Expected interest rate adjustment | $ 8,000,000 | |||
Interest rate adjustment, annualized amount | $ 2,000,000 | |||
S&P Global Inc. | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Senior notes subject to interest rate adjustment | $ 3,100,000,000 | $ 3,100,000,000 | ||
Interest rate adjustment | 0.0025 | 0.0050 |
Debt - Schedule of Weighted Ave
Debt - Schedule of Weighted Average Interest Rates (Details) - Weighted Average | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate during period | 5.10% | 4.10% | 5.10% | 4.30% |
Short-Term Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate during period | 7.70% | 3.80% | 6.80% | 3% |
Debt - Schedule of Fair Value o
Debt - Schedule of Fair Value of Senior Notes (Details) - Senior notes - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Fair Value | $ 4,395 | $ 4,511 |
Book Value | $ 4,736 | $ 4,756 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) swap | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) swap | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||||
Fair value of derivatives, liability | $ 29,000,000 | $ 29,000,000 | $ 27,000,000 | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | (7,000,000) | ||||
Derivative instruments not designated as hedging instruments, income (expense), net | $ 15,000,000 | $ (6,000,000) | $ (3,000,000) | $ (7,000,000) | |
6.375% senior notes due 2027 | |||||
Derivative [Line Items] | |||||
Interest rate | 6.375% | 6.375% | |||
6.375% senior notes due 2027 | Senior notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | 500,000,000 | ||||
Interest rate | 6.375% | 6.375% | |||
6.625% senior notes due 2029 | |||||
Derivative [Line Items] | |||||
Interest rate | 6.625% | 6.625% | |||
6.625% senior notes due 2029 | Senior notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||
Interest rate | 6.625% | 6.625% | |||
4.00% senior notes due 2024 | |||||
Derivative [Line Items] | |||||
Interest rate | 4% | 4% | |||
4.00% senior notes due 2024 | Senior notes | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 100,000,000 | $ 100,000,000 | |||
Interest rate | 4% | 4% | |||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 1,100,000,000 | $ 1,100,000,000 | |||
Cross-currency swaps | |||||
Derivative [Line Items] | |||||
Number of cross currency swaps (in swaps) | swap | 3 | 3 | |||
Fair value of derivatives, liability | $ 1,300,000,000 | $ 1,300,000,000 | |||
Gain on derivative | 9,000,000 | $ 8,000,000 | 30,000,000 | $ 19,000,000 | |
Foreign currency contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 293,000,000 | 293,000,000 | |||
Foreign currency contracts | Derivatives not designated as effective hedges: | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 1,200,000,000 | 1,200,000,000 | |||
Fair value of derivatives, liability | $ 6,000,000 | $ 6,000,000 | $ 10,000,000 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | $ (29) | $ (27) |
Derivatives designated as effective hedges: | Cash Flow Hedges | Foreign currency contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 4 | 5 |
Derivatives designated as effective hedges: | Cash Flow Hedges | Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (6) | (9) |
Derivatives designated as effective hedges: | Fair Value Hedges | Interest rate swaps | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (23) | (14) |
Derivatives designated as effective hedges: | Fair Value Hedges | Interest rate swaps | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (31) | (16) |
Derivatives designated as effective hedges: | Net Investment Hedges | Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (62) | (75) |
Derivatives designated as effective hedges: | Net Investment Hedges | Cross-currency swaps | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 26 | 28 |
Derivatives designated as effective hedges: | Net Investment Hedges | Cross-currency swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 50 | 45 |
Derivatives not designated as effective hedges: | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 19 | 19 |
Fair value of derivatives, liability | $ (6) | $ (10) |
Derivatives - Schedule of Preta
Derivatives - Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | $ 92 | $ 128 | $ 8 | $ 229 |
Reclassified from AOCL to Income | (5) | 7 | 3 | 10 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 0 | 0 | 0 | 0 |
Reclassified from AOCL to Income | (2) | (2) | (4) | (5) |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 6 | 20 | (8) | 39 |
Reclassified from AOCL to Income | (3) | 9 | 7 | 15 |
Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 86 | 108 | 16 | 190 |
Reclassified from AOCL to Income | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Benefit and Retireme_3
Employee Benefit and Retirement Plans - Schedule Of Company's Pension Cost And Supplemental Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Benefits | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 11 | 6 | 34 | 19 |
Expected return on plan assets | (13) | (12) | (41) | (36) |
Amortization | 1 | 4 | 3 | 12 |
Settlements | 0 | 0 | 0 | 0 |
Total (income) expense | (1) | (2) | (4) | (5) |
Pension Benefits | International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 2 | 3 |
Interest cost | 5 | 1 | 13 | 6 |
Expected return on plan assets | (3) | (1) | (9) | (4) |
Amortization | 4 | 1 | 5 | 2 |
Settlements | 61 | 0 | 66 | 0 |
Total (income) expense | 67 | 2 | 77 | 7 |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 0 | 1 | 0 |
Amortization | (2) | (1) | (5) | (3) |
Total (income) expense | $ (1) | $ (1) | $ (4) | $ (3) |
Employee Benefit and Retireme_4
Employee Benefit and Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 27, 2023 | Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan asset, buy-out percentage | 7% | |||
Pretax loss | $ 61 | $ 66 | ||
Group Annuity Contract | Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Obligation settled allocated to retirees | 55% | |||
Group Annuity Contract | Minimum | Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation settlement | $ 160 | |||
Reclassification adjustment from accumulated other comprehensive loss | 60 | |||
Group Annuity Contract | Maximum | Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation settlement | 175 | |||
Reclassification adjustment from accumulated other comprehensive loss | $ 70 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | 26.80% | 146.30% | 20.30% | 8.40% |
Federal statutory income tax rate | 21% | 21% | 21% | 21% |
Tax (benefit) expense for state and local income tax adjustments | $ (71) | $ (2) | $ 10 | $ (4) |
Tax return | 10 | |||
Discrete benefit associated with impairment | 16 | 6 | ||
Foreign amount | $ 18 | |||
Tax exempt (income) expense | 58 | 11 | ||
Sale of business unit | $ 16 | |||
GEORGIA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax exempt (income) expense | $ 4 |
Weighted Average Shares Outst_3
Weighted Average Shares Outstanding - Schedule of Computations of Weighted Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 414.2 | 413.6 | 414.1 | 416.4 |
Dilutive securities (in shares) | 0 | 1 | 0 | 1.9 |
Diluted weighted average shares outstanding (in shares) | 414.2 | 414.6 | 414.1 | 418.3 |
Potentially dilutive share-based awards excluded from computation of diluted EPS (in shares) | 2.1 | 1.5 |
Weighted Average Shares Outst_4
Weighted Average Shares Outstanding - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive share-based awards excluded from computation of diluted EPS (in shares) | 2.1 | 1.5 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive share-based awards excluded from computation of diluted EPS (in shares) | 0.8 | 0.1 |
Stockholders' Equity and Shar_3
Stockholders' Equity and Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Feb. 25, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | Feb. 06, 2022 | |
Share Repurchase Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 375,000,000 | |||||
Common stock repurchased (in shares) | 275,000,000 | 0 | 50,000,000 | |||
Purchase price per share (in USD per share) | $ 25.86 | $ 22.01 | ||||
Performance Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award grants in period (in shares) | 4,400,000 | 6,000,000 | ||||
Aggregate grant date fair value of stock-based compensation arrangement | $ 39,000,000 | $ 61,000,000 | ||||
Performance Based Restricted Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based awards vesting period | 2 years | |||||
Performance Based Restricted Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based awards vesting period | 3 years | |||||
Time-based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award grants in period (in shares) | 1,400,000 | 4,300,000 | ||||
Aggregate grant date fair value of stock-based compensation arrangement | $ 12,000,000 | $ 53,000,000 | ||||
Time-based Restricted Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based awards vesting period | 1 year | |||||
Time-based Restricted Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based awards vesting period | 3 years | |||||
Time-based Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award grants in period (in shares) | 500,000 | |||||
Aggregate grant date fair value of stock-based compensation arrangement | $ 2,000,000 |
Stockholders' Equity and Shar_4
Stockholders' Equity and Share-Based Compensation - Schedule of Fair Valuation Assumptions for Stock Options (Details) - Employee Stock Option | 9 Months Ended |
Sep. 30, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rates | 3.60% |
Expected volatility | 42.10% |
Expected dividend yield | 4.40% |
Expected life (in years) | 6 years 10 months 24 days |
Exercise price (in usd per share) | $ 12.86 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Non-Pension Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ (29) | $ (27) |
Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 99 | 97 |
Liabilities | (128) | (124) |
Investment securities, including mutual funds | 15 | 14 |
Level 1 | Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Investment securities, including mutual funds | 15 | 14 |
Level 2 | Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 99 | 97 |
Liabilities | (128) | (124) |
Investment securities, including mutual funds | 0 | 0 |
Level 3 | Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Investment securities, including mutual funds | $ 0 | $ 0 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | $ 3,049 | $ 3,298 |
Outdoor and Recreation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 0 | 0 |
Learning and Development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 2,302 | 2,551 |
Tradenames | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Indefinite-lived intangible assets | 1,581 | $ 1,689 |
Level 3 | Tradenames | Outdoor and Recreation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Indefinite-lived intangible assets | $ 35 | |
Level 3 | Tradenames | Measurement Input, Discount Rate | Outdoor and Recreation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Indefinite-lived intangible assets, measurement input | 0.115 | |
Level 3 | Baby Unit | Learning and Development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | $ 415 | |
Level 3 | Baby Unit | Measurement Input, Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, measurement input | 0.085 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 9 Months Ended | |
Jan. 01, 2023 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 3 | 3 |
Number of primary reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,048 | $ 2,252 | $ 6,057 | $ 7,174 | |
Operating income (loss) | (159) | 40 | (75) | 585 | |
Segment assets | 12,572 | 12,572 | $ 13,262 | ||
Impairment of goodwill and indefinite-lived intangibles assets | 263 | 148 | 271 | 148 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,048 | 2,252 | 6,057 | 7,174 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (54) | (13) | (176) | (108) | |
Segment assets | 2,740 | 2,740 | 2,605 | ||
Home and Commercial Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,123 | 1,212 | 3,152 | 3,804 | |
Impairment of goodwill and indefinite-lived intangibles assets | 0 | 123 | 8 | 123 | |
Home and Commercial Solutions | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,123 | 1,212 | 3,152 | 3,804 | |
Operating income (loss) | 64 | (75) | 6 | 88 | |
Segment assets | 4,964 | 4,964 | 5,243 | ||
Learning and Development | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 694 | 751 | 2,071 | 2,266 | |
Impairment of goodwill and indefinite-lived intangibles assets | 241 | 25 | 241 | 25 | |
Learning and Development | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 694 | 751 | 2,071 | 2,266 | |
Operating income (loss) | (127) | 122 | 133 | 505 | |
Segment assets | 4,126 | 4,126 | 4,494 | ||
Outdoor and Recreation | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 231 | 289 | 834 | 1,104 | |
Impairment of goodwill and indefinite-lived intangibles assets | 22 | 0 | 22 | 0 | |
Outdoor and Recreation | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 231 | 289 | 834 | 1,104 | |
Operating income (loss) | (42) | $ 6 | (38) | $ 100 | |
Segment assets | $ 742 | $ 742 | $ 920 |
Segment Information - Schedul_2
Segment Information - Schedule of Disaggregation of Revenue by Major Product Grouping Source and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,048 | $ 2,252 | $ 6,057 | $ 7,174 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,396 | 1,553 | 4,075 | 4,962 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 652 | 699 | 1,982 | 2,212 |
Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,123 | 1,212 | 3,152 | 3,804 |
Home and Commercial Solutions | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 764 | 835 | 2,105 | 2,673 |
Home and Commercial Solutions | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 359 | 377 | 1,047 | 1,131 |
Learning and Development | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 694 | 751 | 2,071 | 2,266 |
Learning and Development | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 501 | 559 | 1,505 | 1,683 |
Learning and Development | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 193 | 192 | 566 | 583 |
Outdoor and Recreation | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 231 | 289 | 834 | 1,104 |
Outdoor and Recreation | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 131 | 159 | 465 | 606 |
Outdoor and Recreation | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 100 | 130 | 369 | 498 |
Commercial | Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 368 | 397 | 1,094 | 1,227 |
Kitchen | Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 578 | 604 | 1,586 | 1,896 |
Home Fragrance | Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 177 | 211 | 472 | 572 |
Connected Home and Security | Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 109 |
Baby | Learning and Development | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 246 | 297 | 714 | 901 |
Writing | Learning and Development | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 448 | $ 454 | $ 1,357 | $ 1,365 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Sep. 29, 2023 USD ($) | Dec. 30, 2020 shareholder | Oct. 31, 2021 USD ($) mi | Jun. 30, 2018 party defendant | Sep. 30, 2017 recipient | Sep. 30, 2023 USD ($) unit entity mi | Sep. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Settlement agreement, accrued | $ 103 | ||||||
Environmental remediation expense | $ 36 | ||||||
Number of general notice letter recipients | entity | 100 | ||||||
Number of operable units | unit | 4 | ||||||
Miles of river included in the remedial investigation and feasibility study | mi | 9 | ||||||
Loss contingency, estimate of possible loss | $ 441 | ||||||
Number of parties sued (in parties) | party | 100 | ||||||
Number of defendants | defendant | 42 | ||||||
Standby letters of credit outstanding | $ 40 | ||||||
Lower Half of River | |||||||
Loss Contingencies [Line Items] | |||||||
Miles of river included in the remedial investigation and feasibility study | mi | 17 | ||||||
Lower Passaic River Matter | |||||||
Loss Contingencies [Line Items] | |||||||
Miles of river included in the remedial investigation and feasibility study | mi | 8.3 | ||||||
Number of general notice letter recipients involved in remedial investigation and feasibility study | recipient | 80 | ||||||
Lower Passaic River Matter - Selected Remedy for the Preferred Alternative | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement amount | $ 1,400 | ||||||
Weber Et Al V Polk Et Al | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of plaintiffs | shareholder | 2 | ||||||
Unfavorable Regulatory Action | |||||||
Loss Contingencies [Line Items] | |||||||
Civil penalty | $ 13 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Revolving credit facility - USD ($) $ in Millions | Oct. 05, 2023 | Sep. 30, 2023 |
Subsequent Event [Line Items] | ||
Revolving accounts receivable facility, maximum borrowing capacity | $ 1,500 | |
Subsequent Event | New Receivables Facility | ||
Subsequent Event [Line Items] | ||
Revolving accounts receivable facility, term | 3 years | |
Revolving accounts receivable facility, maximum borrowing capacity | $ 225 | |
Revolving accounts receivable facility, increase limit | $ 275 | |
Subsequent Event | New Receivables Facility | Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Revolving accounts receivable facility rate | 0.10% |