Cover Page
Cover Page - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $1 par value per share | |
Trading Symbol | NWL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 416 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000814453 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,033 | $ 2,204 | $ 3,686 | $ 4,009 |
Cost of products sold | 1,334 | 1,575 | 2,483 | 2,898 |
Gross profit | 699 | 629 | 1,203 | 1,111 |
Selling, general and administrative expenses | 520 | 476 | 982 | 956 |
Restructuring costs, net | 10 | 22 | 36 | 60 |
Impairment of goodwill, intangibles and other assets | 6 | 11 | 6 | 11 |
Operating income | 163 | 120 | 179 | 84 |
Non-operating expenses: | ||||
Interest expense, net | 78 | 76 | 148 | 144 |
Loss on extinguishment and modification of debt | 0 | 0 | 1 | 0 |
Other expense, net | 1 | 9 | 6 | 21 |
Income (loss) before income taxes | 84 | 35 | 24 | (81) |
Income tax provision (benefit) | 39 | 17 | (12) | 3 |
Net income (loss) | $ 45 | $ 18 | $ 36 | $ (84) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 415.2 | 414.2 | 415 | 414 |
Diluted (in shares) | 418.2 | 415.3 | 417.9 | 414 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ 0.11 | $ 0.04 | $ 0.09 | $ (0.20) |
Diluted (in USD per share) | $ 0.11 | $ 0.04 | $ 0.09 | $ (0.20) |
COMPREHENSIVE INCOME (LOSS): | ||||
Net income (loss) | $ 45 | $ 18 | $ 36 | $ (84) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (35) | (10) | (59) | 8 |
Pension and postretirement costs | 0 | 0 | 8 | (1) |
Derivative financial instruments | 7 | (7) | 14 | (17) |
Total other comprehensive loss, net of tax | (28) | (17) | (37) | (10) |
Total comprehensive income (loss) | $ 17 | $ 1 | $ (1) | $ (94) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 382 | $ 332 |
Accounts receivable, net | 1,072 | 1,195 |
Inventories | 1,639 | 1,531 |
Prepaid expenses and other current assets | 332 | 296 |
Total current assets | 3,425 | 3,354 |
Property, plant and equipment, net | 1,153 | 1,212 |
Operating lease assets | 481 | 515 |
Goodwill | 3,055 | 3,071 |
Other intangible assets, net | 2,412 | 2,488 |
Deferred income taxes | 757 | 806 |
Other assets | 765 | 717 |
Total assets | 12,048 | 12,163 |
Liabilities: | ||
Accounts payable | 1,079 | 1,003 |
Other accrued liabilities | 1,440 | 1,565 |
Short-term debt and current portion of long-term debt | 983 | 329 |
Total current liabilities | 3,502 | 2,897 |
Long-term debt | 4,059 | 4,575 |
Deferred income taxes | 236 | 241 |
Operating lease liabilities | 414 | 446 |
Other noncurrent liabilities | 757 | 892 |
Total liabilities | 8,968 | 9,051 |
Commitments and contingencies (Footnote 16) | ||
Stockholders’ equity: | ||
Preferred stock (10.0 authorized shares, $0.00 par value, no shares issued at June 30, 2024 and December 31, 2023) | 0 | 0 |
Common stock (800.0 authorized shares, $1.00 par value, 441.2 shares and 439.6 shares issued at June 30, 2024 and December 31, 2023, respectively) | 441 | 440 |
Treasury stock, at cost (25.8 shares and 25.3 shares at June 30, 2024 and December 31, 2023, respectively) | (631) | (627) |
Additional paid-in capital | 6,887 | 6,915 |
Retained deficit | (2,690) | (2,726) |
Accumulated other comprehensive loss | (927) | (890) |
Total stockholders’ equity | 3,080 | 3,112 |
Total liabilities and stockholders’ equity | $ 12,048 | $ 12,163 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 441,200,000 | 439,600,000 |
Treasury stock, shares (in shares) | 25,800,000 | 25,300,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 36 | $ (84) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 164 | 159 |
Impairment of goodwill, intangibles and other assets | 6 | 11 |
Deferred income taxes | 14 | 4 |
Stock based compensation expense | 33 | 20 |
Pension settlement charge | 0 | 5 |
Other, net | (8) | (34) |
Changes in operating accounts: | ||
Accounts receivable | 84 | (14) |
Inventories | (139) | 282 |
Accounts payable | 80 | (54) |
Accrued liabilities and other, net | (206) | (18) |
Net cash provided by operating activities | 64 | 277 |
Cash flows from investing activities: | ||
Capital expenditures | (112) | (142) |
Swap proceeds | 17 | 23 |
Other investing activities, net | 11 | 25 |
Net cash used in investing activities | (84) | (94) |
Cash flows from financing activities: | ||
Payments on short-term debt, net | (52) | (23) |
Proceeds from short-term debt with original maturities greater than 90 days | 431 | 0 |
Payments on short-term debt with original maturities greater than 90 days | (225) | 0 |
Payments on current portion of long-term debt | 0 | (1) |
Cash dividends | (60) | (126) |
Equity compensation activity and other, net | (16) | (8) |
Net cash provided by (used in) financing activities | 78 | (158) |
Exchange rate effect on cash, cash equivalents and restricted cash | (14) | 2 |
Increase in cash, cash equivalents and restricted cash | 44 | 27 |
Cash, cash equivalents and restricted cash at beginning of period | 361 | 303 |
Cash, cash equivalents and restricted cash at end of period | 405 | 330 |
Supplemental disclosures: | ||
Restricted cash at beginning of period | 29 | 16 |
Restricted cash at end of period | $ 23 | $ 13 |
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 Loss |
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) | (94) | (84) | (10) | |||
Dividends declared on common stock | (126) | (126) | ||||
Equity compensation, net of tax | 16 | 1 | (4) | 19 | ||
Ending balance at Jun. 30, 2023 | 3,315 | 440 | (627) | 6,945 | (2,422) | (1,021) |
Beginning balance at Mar. 31, 2023 | 3,333 | 439 | (627) | 6,965 | (2,440) | (1,004) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 1 | 18 | (17) | |||
Dividends declared on common stock | (30) | (30) | ||||
Equity compensation, net of tax | 11 | 1 | 10 | |||
Ending balance at Jun. 30, 2023 | 3,315 | 440 | (627) | 6,945 | (2,422) | (1,021) |
Beginning balance at Dec. 31, 2023 | 3,112 | 440 | (627) | 6,915 | (2,726) | (890) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (1) | 36 | (37) | |||
Dividends declared on common stock | (59) | (59) | ||||
Equity compensation, net of tax | 28 | 1 | (4) | 31 | ||
Ending balance at Jun. 30, 2024 | 3,080 | 441 | (631) | 6,887 | (2,690) | (927) |
Beginning balance at Mar. 31, 2024 | 3,076 | 441 | (631) | 6,900 | (2,735) | (899) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 17 | 45 | (28) | |||
Dividends declared on common stock | (29) | (29) | ||||
Equity compensation, net of tax | 16 | 16 | ||||
Ending balance at Jun. 30, 2024 | $ 3,080 | $ 441 | $ (631) | $ 6,887 | $ (2,690) | $ (927) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (in USD per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.30 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 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. Certain prior year amounts have been reclassified to conform to the current year presentation. 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, soft global demand, major retailers’ focus on tight control over inventory levels, elevated interest rates and indirect macroeconomic impacts from geopolitical conflicts. These collective macroeconomic trends, the duration or severity of which are highly uncertain, are still 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 elevated 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 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 pressures. Accordingly, the Company’s results of operations and cash flows for the three and six months ended June 30, 2024 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2024. Recent Accounting Pronouncements 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 (“ASC”). The Company considers the applicability and impact of recently issued and proposed ASUs. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update require that a public entity disclose on an annual and interim basis significant segment expenses that are regularly provided to the entity’s chief operating decision maker (the “CODM”), nature and amount of other financial information by reportable segment and any additional measures of a segment’s profit or loss used by the CODM in assessing segment performance and deciding allocation of resources. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The standard requires all entities subject to income taxes to disclose disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The new requirement will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the consolidated financial statements. Adoption of New Accounting Guidance 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 the 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. 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. The Company adopted ASU 2022-04 which did not have a material impact on its consolidated financial statements. See disclosure hereafter for further information. Sales of Accounts Receivables Factored receivables at June 30, 2024 associated with the Company’s existing factoring agreement for certain customer receivables (the “Customer Receivables Purchase Agreement”) were approximately $360 million, an increase of approximately $120 million from December 31, 2023. 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 expense, net in the Condensed Consolidated Statement of Operations. In addition, the Company, through a wholly-owned special purpose entity (“SPE”) has a three-year agreement with a financial institution to sell up to $225 million, between February and April of each year and up to $275 million at all other times, of certain other customer receivables without recourse on a revolving basis (the “Receivables Facility”). Under the Receivables Facility, certain of the Company’s subsidiaries continuously sell their accounts receivables originating in the U.S. to the SPE and the SPE sells the receivables to the financial institution. The SPE is a variable interest entity for which the Company is considered to be the primary beneficiary. The SPE’s sole business consists of the purchase of receivables from certain subsidiaries of the Company and the subsequent transfer of such receivables to the financial institution. Although the SPE is consolidated in the Company’s condensed consolidated financial statements, it is a separate legal entity with separate creditors. The assets of the SPE are not available to pay creditors of the Company or its subsidiaries. The fair value of these servicing arrangements as well as the fees earned were immaterial. The Company accounts for receivables sold from the SPE to the financial institution as a sale of financial assets and derecognizes the trade receivables from the Company’s Condensed Consolidated Balance Sheet. The balance of outstanding accounts receivables sold to the financial institution as of June 30, 2024 was $145 million, an increase of approximately $100 million from December 31, 2023. Cash received under the Receivables Facility is classified 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 expense, net in the Condensed Consolidated Statement of Operations. Supplier Finance Program Obligations In June 2024, the Company entered into an arrangement with a third-party vendor which provides a service for the Company’s suppliers, at their sole discretion, to sell their receivables due from the Company with various financial institutions, who at their sole discretion, contract with the third-party vendor to participate in the supplier finance program (the “New SCF Program”). 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 New SCF Program. 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 New SCF Program, at their sole discretion, determine which invoices, if any, they want to sell to the third-party vendor. The suppliers’ voluntary inclusion of invoices in the New SCF Program does not change the Company’s existing contractual terms with its suppliers. The Company does not provide any guarantees or collateral under the New SCF Program, nor does it have any economic interest in a supplier’s decision to participate in the New SCF Program. Amounts due under the New SCF Program will be included in accounts payable in the Condensed Consolidated Balance Sheets and as operating cash flows in the Condensed Consolidated Statement of Cash Flows. Prior to the New SCF Program, a global financial institution offered a voluntary supply chain finance program (the “Former SCF Program”) which similarly enabled suppliers, at their sole discretion, to sell their receivables due from the Company to the financial institution on a non-recourse basis. Pursuant to the Second Amendment (defined hereafter), a lender under the Credit Revolver (defined hereafter) that also participated in the Former SCF Program secured its related financing pursuant to the terms of the Credit Revolver. See Footnote 8 for further information. In April 2024, the Company exercised its right to terminate the Former SCF Program with the financial institution. The Company continued to reflect invoices participating in the Former SCF Program as current liabilities in the Condensed Consolidated Balance Sheet and cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows as of and for the six months ended June 30, 2024, respectively. Supplier payment terms for those participating in the program average approximately 129 days. The termination did not materially impact the Company’s operating results, financial condition or liquidity. While the Company has entered into the New SCF Program to offer its vendors another supply chain financing option after the termination of the Former SCF program, there has been no activity under the New SCF Program at and during the period ending June 30, 2024. As such, the following table sets forth the outstanding payment obligations due to the financial institution and activities related to the suppliers who participated in the Former SCF Program: Balance at December 31, 2023 $ 96 Invoices participating in the Former SCF Program 111 Invoices paid to the financial institution (180) Balance at June 30, 2024 $ 27 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 (in millions): Cumulative Pension and Postretirement Costs Derivative AOCL Balance at December 31, 2023 $ (668) $ (196) $ (26) $ (890) Other comprehensive income (loss) before reclassifications (59) 9 7 (43) Amounts reclassified to earnings — (1) 7 6 Net current period other comprehensive income (loss) (59) 8 14 (37) Balance at June 30, 2024 $ (727) $ (188) $ (12) $ (927) Reclassifications from AOCL to the results of operations for the three and six months ended June 30, 2024 and 2023 were pretax (income) expense of (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Pension and postretirement benefit plans (1) $ — $ 5 $ (1) $ 5 Derivative financial instruments (2) 5 1 9 (8) (1) See Footnote 10 for further information. (2) See Footnote 9 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 Six Months Ended 2024 2023 2024 2023 Foreign currency translation adjustments $ 4 $ (12) $ 16 $ (18) Pension and postretirement benefit costs (1) 1 2 1 Derivative financial instruments 3 (2) 5 (5) Income tax provision (benefit) related to AOCL $ 6 $ (13) $ 23 $ (22) |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring To better align its resources with its strategy and operating model and to reduce the cost structure of its global operations, the Company commits to restructuring plans as necessary and as follows: Organizational Realignment Plan In January 2024, the Company announced an organizational realignment, which is expected to strengthen the Company’s front-end commercial capabilities, such as consumer understanding and brand communication, in support of the “where to play” and “how to win” strategy choices the Company unveiled in June of 2023 (the “Realignment Plan”). In addition to improving accountability, the Realignment Plan is designed to unlock operational efficiencies and cost savings, reduce complexity and free up funds for reinvestment. As part of the Realignment Plan, the Company is making several operating model changes, which entail: standing up a cross-functional brand management organization, realigning business unit finance to fully support the new global brand management model, further simplifying and standardizing regional go-to-market organizations, and centralizing domestic retail sales teams, the digital technology team, business-aligned accounting personnel, the Manufacturing Quality team, and the Human Resources functions into the appropriate center-led teams to drive standardization, efficiency and scale with a One Newell approach. The Company will also further optimize the Company’s real estate footprint and pursue other cost reduction initiatives. These actions are expected to be substantially implemented by the end of 2024, subject to local law and consultation requirements. Restructuring and restructuring-related charges associated with these actions are estimated to be in the range of $75 million to $90 million and are expected to be substantially incurred by the end of 2024. This estimate of charges consists primarily of $60 million to $70 million related to cash severance payments and other termination benefits, $11 million to $16 million associated with office space reduction and consolidation and approximately $4 million of other charges. The Company expects the majority of the aggregate charges will be cash expenditures. The Company commenced organizational realignment activities during the first quarter of 2024. During the three and six months ended June 30, 2024, the Company recorded restructuring charges of $9 million and $31 million, respectively. During the three and six months ended June 30, 2024, the Company also recorded restructuring-related charges of $8 million in connection with the Realignment Plan. The Company has incurred aggregate charges of $39 million since inception in connection with the Realignment Plan. In June 2024, as part of optimizing the Company’s real estate footprint, the Company entered into a lease agreement for a new location of its Corporate headquarters in Atlanta, Georgia, which will allow it to consolidate five different facilities and bring together employees in the area into a single location. See Footnote 5 for further information. Also in June 2024, the Company entered into an agreement with an unrelated third party to sell and leaseback its current headquarters facility, which is expected to close during the third quarter of fiscal year 2024. The Company intends to occupy the current facility while waiting to build-out the new facility, which is anticipated to be completed during the first half of fiscal year 2025. Management concluded the sale of the current headquarters facility satisfied the criteria to be classified as held for sale at June 30, 2024. As such, the Company wrote down the carrying value of the assets held for sale to their fair value less cost to sell. During the second quarter of 2024, the Company recorded a net charge of $6 million inclusive of a fair market value adjustment related to the below market rental payments associated with the sale leaseback transaction, which was recorded within impairment of goodwill, intangibles and other assets in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2024. The underlying assets held for sale were classified within prepaid expenses and other current assets in the Condensed Consolidated Balance Sheet as of June 30, 2024. Network Optimization Project In May 2023, the Company announced a restructuring and cost 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 charges 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 aggregate charges will be cash expenditures. In connection with the Network Optimization Project, the Company recorded restructuring and restructuring-related charges for the periods indicated as follows (in millions): Three Months Ended Six Months Ended Incurred since inception 2024 2023 2024 2023 Restructuring charges $ — $ 2 $ 3 $ 2 $ 10 Restructuring-related charges 6 8 8 8 24 Total $ 6 $ 10 $ 11 $ 10 $ 34 Project Phoenix In January 2023, the Company announced a restructuring and savings initiative (“Project Phoenix”) that was intended to strengthen the Company by leveraging its scale to further reduce complexity, streamline its operating model and drive operational efficiencies. Project Phoenix was substantially implemented by the end of 2023 and incorporated 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 included manufacturing, distribution, transportation and customer service, transition to a unified One Newell go-to-market model in key international geographies, and reduce overhead costs. The Company estimates that it will incur approximately $100 million to $130 million in restructuring and restructuring-related charges in connection with Project Phoenix. 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 aggregate charges will be cash expenditures. While the program was mostly complete by the end of 2023, charges will continue to be recognized as the Company completes remaining actions in accordance with local regulations and consultation requirements. All cash payments are expected to be paid within one year of charges incurred. In connection with Project Phoenix, the Company recorded restructuring and restructuring-related charges for the periods indicated as follows (in millions): Three Months Ended Six Months Ended Incurred since inception 2024 2023 2024 2023 Restructuring costs $ — $ 17 $ 1 $ 53 $ 79 Restructuring-related costs 2 4 5 10 24 Total $ 2 $ 21 $ 6 $ 63 $ 103 Restructuring charges, net and restructuring-related charges incurred from inception for the Realignment Plan, Network Optimization Project and Project Phoenix (collectively, the “Plans”) were as follows (in millions): Severance and termination costs Contract termination and other costs Total restructuring Restructuring-related Total costs Realignment Plan $ 30 $ 1 $ 31 $ 8 $ 39 Network Optimization Project 6 4 10 24 34 Project Phoenix 77 2 79 24 103 $ 113 $ 7 $ 120 $ 56 $ 176 Other Restructuring and Restructuring-Related Charges The Company also incurs other restructuring and restructuring-related charges in connection with various discrete initiatives. The Company recorded $1 million of other restructuring costs for both the three and six months ended June 30, 2024 and $3 million and $5 million, during the three and six months ended June 30, 2023, respectively. Restructuring-related charges are recorded in cost of products sold, selling, general and administrative expenses (“SG&A”) and impairment of other assets in the Condensed Consolidated Statements of Operations based on the nature of the underlying charges incurred. During the three months ended June 30, 2024 and 2023, the Company recorded immaterial and $5 million, respectively of other restructuring-related charges. During the six months ended June 30, 2024 and 2023, the Company recorded other restructuring-related charges of $8 million and $12 million, respectively. Restructuring charges, net incurred by reportable business segments for all restructuring activities for the periods indicated and the total charges since inception for the Plans are as follows (in millions): Three Months Ended Six Months Ended Total incurred since inception of Plans 2024 2023 2024 2023 Home and Commercial Solutions $ 3 $ 11 $ 10 $ 27 $ 52 Learning and Development 3 6 8 11 23 Outdoor and Recreation 2 2 3 8 14 Corporate 2 3 15 14 31 $ 10 $ 22 $ 36 $ 60 $ 120 Accrued restructuring costs for the six months ended June 30, 2024 were as follows (in millions): Balance at December 31, 2023 Restructuring Payments Balance at Severance and termination costs $ 30 $ 32 $ (44) $ 18 Contract termination and other costs — 4 (4) — $ 30 $ 36 $ (48) $ 18 Accrued restructuring costs for the six months ended June 30, 2023 were as follows (in millions): Balance at December 31, 2022 Restructuring Payments Foreign Balance at Severance and termination costs $ 7 $ 57 $ (48) $ — $ 16 Contract termination and other costs — 3 (1) (1) 1 $ 7 $ 60 $ (49) $ (1) $ 17 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are comprised of the following (in millions): June 30, 2024 December 31, 2023 Raw materials and supplies $ 203 $ 214 Work-in-process 158 173 Finished products 1,278 1,144 $ 1,639 $ 1,531 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 December 31, 2023 Land $ 67 $ 75 Buildings and improvements 643 678 Machinery and equipment 2,479 2,517 3,189 3,270 Less: Accumulated depreciation (2,036) (2,058) $ 1,153 $ 1,212 Depreciation expense was $44 million and $51 million for the three months ended June 30, 2024 and 2023, respectively, and $95 million and $105 million for the six months ended June 30, 2024 and 2023, respectively. In June 2024, the Company entered into an agreement for a right of use operating lease, for its Corporate headquarters in Atlanta, Georgia, with an initial lease term of 14.5 years. The Company has not yet taken possession of the facility; therefore it has not reflected the right of use asset and lease liability in the Condensed Consolidated Balance Sheet at June 30, 2024. The gross minimum contractual aggregate lease payments are approximately $106 million. See Footnote 3 for additional information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill activity for the six months ended June 30, 2024 is as follows (in millions): June 30, 2024 Segments Net Book Value at December 31, 2023 Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value Home and Commercial Solutions $ 747 $ — $ 4,052 $ (3,305) $ 747 Learning and Development 2,324 (16) 3,395 (1,087) 2,308 Outdoor and Recreation — — 788 (788) — $ 3,071 $ (16) $ 8,235 $ (5,180) $ 3,055 Other intangible assets, net, are comprised of the following (in millions): June 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Tradenames — indefinite life (1) $ 1,199 $ — $ 1,199 $ 1,535 $ — $ 1,535 Tradenames — other (1) 549 (126) 423 232 (105) 127 Capitalized software 639 (528) 111 628 (512) 116 Patents and intellectual property 22 (21) 1 22 (20) 2 Customer relationships and distributor channels 1,070 (392) 678 1,078 (370) 708 $ 3,479 $ (1,067) $ 2,412 $ 3,495 $ (1,007) $ 2,488 (1) In alignment with the Company’s strategy, the Company determined that certain tradenames with aggregate carrying values of $322 million no longer met the criteria to be classified as indefinite-lived tradenames effective January 1, 2024. The estimated useful lives range from 10 to 15 years, which will increase the Company’s annual amortization expense by $25 million, approximately $6 million quarterly (approximately $0.01 net loss per share per quarter). Amortization expense for intangible assets was $35 million and $27 million for the three months ended June 30, 2024 and 2023, respectively, and $69 million and $54 million for the six months ended June 30, 2024 and 2023, respectively. 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 three and six months ended June 30, 2023, the Company recorded an aggregate 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. |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities are comprised of the following (in millions): June 30, 2024 December 31, 2023 Customer accruals $ 628 $ 659 Accrued compensation 159 190 Operating lease liabilities 117 122 Accrued self-insurance liabilities, contingencies and warranty 87 92 Accrued interest expense 80 74 Accrued marketing and freight expenses 63 71 Accrued income taxes 61 89 Other 245 268 $ 1,440 $ 1,565 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is comprised of the following at the dates indicated (in millions): June 30, 2024 December 31, 2023 4.00% senior notes due 2024 (1) (2) $ 199 $ 198 4.875% senior notes due 2025 (1) 499 498 3.90% senior notes due 2025 47 47 4.20% senior notes due 2026 1,981 1,980 6.375% senior notes due 2027 480 488 6.625% senior notes due 2029 474 486 5.375% senior notes due 2036 417 417 5.50% senior notes due 2046 658 658 Revolving credit facility (1) 285 131 Other debt 2 1 Total debt 5,042 4,904 Short-term debt and current portion of long-term debt (983) (329) Long-term debt $ 4,059 $ 4,575 (1) Included in short-term debt and current portion of long-term debt at June 30, 2024. (2) Included in short-term debt and current portion of long-term debt at December 31, 2023. Senior Notes On February 9, 2024, Moody’s Corporation (“Moody’s”) downgraded the Company’s senior unsecured debt rating to “Ba3”. As a result of Moody’s downgrade, certain of the Company’s outstanding senior notes currently aggregating to approximately $3.1 billion (the “Coupon-Step Notes”) were subject to an interest rate increase 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 $6 million in 2024). On February 14, 2024, S&P Global Inc. (“S&P”) downgraded the Company’s debt rating to “BB-”. As a result of the S&P downgrade, the Coupon-Step Notes were subject to an additional interest rate increase 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 $6 million in 2024). The S&P and Moody’s downgrades will collectively increase the Company’s interest expense by approximately $16 million in the aggregate on an annualized basis (approximately $12 million in 2024). Revolving Credit Facility The Company had a $1.5 billion senior unsecured revolving credit facility (the “Credit Revolver”) maturing in August 2027. On March 27, 2023, the Company entered into an amendment (the “First 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 First Amendment, and (ii) lower the Interest Coverage Ratio, as defined in the First Amendment, for the fiscal quarters ending on June 30, 2023, September 30, 2023, December 31, 2023 and March 31, 2024. On February 7, 2024, the Company, certain of its subsidiaries, as subsidiary borrowers, and certain of its subsidiaries, as subsidiary guarantors, entered into a second amendment to the Credit Revolver agreement (the “Second Amendment”). The Second Amendment, among other things, (i) reduced the commitments of the lenders from $1.5 billion to $1.0 billion, (ii) replaced the Company’s existing financial covenants with new financial covenants testing the Company’s Collateral Coverage Ratio and Total Net Leverage Ratio (each further defined in the Second Amendment), (iii) required the Company and certain of the Company’s domestic and foreign subsidiaries (collectively the “Guarantors”) to guarantee all obligations under the Credit Revolver including, without limitation, obligations in respect of extensions of credit to any of the borrowers, certain hedging obligations, certain cash management obligations, and certain supply chain financing obligations, and (iv) required the Company and the other Guarantors to grant a lien and security interest in certain of its assets consisting of eligible accounts receivable, eligible inventory, eligible equipment and eligible intellectual property, and all products and proceeds of the foregoing, subject to certain limitations. See Footnote 1 for further information with respect to the Company’s SCF Programs. 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 June 30, 2024, the Company had $285 million of outstanding borrowings under the Credit Revolver and approximately $20 million of outstanding standby letters of credit issued against the Credit Revolver, with a net availability of approximately $695 million. 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 collateral coverage and net leverage ratios. Weighted average interest rates are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Total debt 6.0 % 5.3 % 5.8 % 5.1 % Short-term debt 7.5 % 6.8 % 7.8 % 6.5 % 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): June 30, 2024 December 31, 2023 Fair Value Book Value Fair Value Book Value Senior notes $ 4,610 $ 4,755 $ 4,633 $ 4,772 The carrying amounts of all other debt approximates fair value. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, 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 4.000% 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 has three cross-currency swaps, maturing in January 2025, February 2025 and September 2027, 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. The Company has two additional cross-currency swaps, maturing in September 2027 and September 2029, with an aggregate notional amount of $1.0 billion. 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 June 30, 2024 and 2023, the Company recognized income of $9 million and $10 million, respectively and income of $18 million and $21 million for the six months ended June 30, 2024 and 2023, 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 December 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 Company’s Condensed Consolidated Statement of Operations as the underlying hedged item. At June 30, 2024, the Company had approximately $256 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 June 30, 2024, the Company had approximately $886 million notional amount outstanding of these foreign currency contracts that are not designated as effective hedges for accounting purposes and have maturity dates through June 2025. Fair market value gains or losses are included in the results of operations and are classified in other 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 June 30, 2024 December 31, 2023 Derivatives designated as effective hedges: Cash Flow Hedges Foreign currency contracts Prepaid expenses and other current assets $ 3 $ 1 Foreign currency contracts Other accrued liabilities (2) (13) Fair Value Hedges Interest rate swaps Other accrued liabilities (16) (15) Interest rate swaps Other noncurrent liabilities (23) (4) Net Investment Hedges Cross-currency swaps Prepaid expenses and other current assets 32 22 Cross-currency swaps Other assets 25 15 Cross-currency swaps Other noncurrent liabilities (73) (119) Derivatives not designated as effective hedges: Foreign currency contracts Prepaid expenses and other current assets 11 7 Foreign currency contracts Other accrued liabilities (2) (14) Total $ (45) $ (120) 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) $ — $ (1) Foreign currency contracts Net sales and cost of products sold 5 (3) (9) — Cross-currency swaps Other expense, net 18 — (49) — Total $ 23 $ (5) $ (58) $ (1) Six Months Six 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 $ — $ (3) $ — $ (2) Foreign currency contracts Net sales and cost of products sold 10 (6) (14) 10 Cross-currency swaps Other expense, net 66 — (70) — Total $ 76 $ (9) $ (84) $ 8 At June 30, 2024, net deferred gains of approximately $2 million within AOCL are expected to be reclassified to earnings over the next twelve months. During the three months ended June 30, 2024 and 2023, the Company recognized in other expense, net, income of $10 million and $8 million, respectively and income of $9 million and $18 million during the six months ended June 30, 2024 and 2023, 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 derivative agreements that require collateral to be posted prior to settlement. See Footnote 8 for further information describing the guarantee of certain hedging obligations granted pursuant to the Second Amendment of the Credit Revolver. |
Employee Benefit and Retirement
Employee Benefit and Retirement Plans | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 1 $ 1 $ — $ — $ 2 $ 2 Interest cost 9 12 2 4 17 23 4 8 Expected return on plan assets (12) (14) (2) (3) (23) (28) (3) (6) Amortization — 1 — — — 2 — 1 Settlements — — 1 5 — — 1 5 Total (income) expense $ (3) $ (1) $ 2 $ 7 $ (6) $ (3) $ 4 $ 10 Postretirement Benefits Three Months Ended Six Months Ended 2024 2023 2024 2023 Amortization (1) (1) $ (2) $ (3) Total income $ (1) $ (1) $ (2) $ (3) Other In January 2024, the Company received a court ruling with respect to determining the benefits certain pensioners related to an international subsidiary were entitled to receive upon converting their defined benefit to a defined contribution. As the legal proceeding is concluded, the Company reduced its underlying pension obligation by approximately $11 million, with a corresponding offset to AOCL. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rates for the three months ended June 30, 2024 and 2023 were a provision of 46.4% and 48.6%, respectively, and benefit of 50.0% and provision of 3.7% for the six months ended June 30, 2024 and 2023, respectively. 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 six months ended June 30, 2024 and 2023 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. For the three and six months ended June 30, 2024 these items increased the tax rate more than the prior period due to the lower forecasted pretax book income. In periods where forecasted pretax income is low, the proportional impact of these items on the effective tax rate may be significant. The three and six months ended June 30, 2024 were impacted by certain discrete items. Income tax expense for the three months ended June 30, 2024 included a discrete benefit of $64 million associated with a reduction in liabilities for unrecognized tax benefits, as the tax authorities’ examination of its U.S. tax returns for the years 2011 to 2015, as further described hereafter, and its Brazil tax returns for the years 2015 to 2017 have been completed, offset by $7 million of additional tax related to withholding taxes associated with certain previously taxed earnings that are no longer indefinitely reinvested. The six months ended June 30, 2024 also included certain discrete items totaling $4 million of additional income tax expense. The three and six months ended June 30, 2023 were also impacted by certain discrete items. Income tax expense for the three months ended June 30, 2023 included a discrete expense of $6 million associated with a tax basis adjustment on a prior disposition. The six months ended June 30, 2023 also included certain discrete items totaling $4 million of additional income tax expense. On May 14, 2024, the Company received a Statutory Notice of Deficiency (“Notice”) from the Internal Revenue Service (“IRS”) for the tax years 2011 to 2015. T he Company agreed to certain adjustments raised by the IRS through the Notice. Accordingly, the Company has concluded that various income tax positions taken by the Company have been effectively settled, with the exception of the matter the Company intends to dispute as further described hereafter. The Company will pay the IRS approximately $22 million for additional income taxes and interest. As a result, the Company has reduced its liability for unrecognized tax benefits for this amount, recorded in other noncurrent liabilities in the Condensed Consolidated Balance Sheets, with a corresponding increase to its current income tax liability. On July 19, 2024, the Company filed a petition in the U.S. Tax Court disputing the proposed assessment of $80 million in additional taxes plus $34 million in penalties plus the additional interest calculated upon final settlement related to the transfer pricing of services performed by certain of the Company’s foreign affiliates for the tax years 2011 to 2015. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result. If the IRS prevails in the assessment of additional tax, interest and penalties in excess of the Company’s current reserves, such outcome could have a material adverse effect on the Company’s financial position and results. |
Weighted Average Shares Outstan
Weighted Average Shares Outstanding | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 Basic weighted average shares outstanding 415.2 414.2 415.0 414.0 Dilutive securities (1) 3.0 1.1 2.9 — Diluted weighted average shares outstanding 418.2 415.3 417.9 414.0 (1) The six months ended June 30, 2023 excludes 1.2 million of potentially dilutive share-based awards as their effect would be anti-dilutive. At June 30, 2024, there were 0.7 million potentially dilutive stock awards with performance-based targets that were not met and as such, have been excluded from the computation of diluted earnings per share. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the six months ended June 30, 2024, primarily in connection with its annual grant, the Company granted 1.7 million performance-based restricted stock units (“RSUs”), with an aggregate grant date fair value of $13 million. These performance-based RSUs entitle the recipients to shares of the Company’s common stock and vest primarily at the end of a three -year period, subject to continued employment. The actual number of shares that will ultimately be paid upon vesting is dependent on the level of achievement of the specified performance conditions. During the six months ended June 30, 2024, primarily in connection with its annual grant, the Company also granted 5.6 million time-based RSUs with an aggregate grant date fair value of $43 million. 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. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 December 31, 2023 Fair value Asset (Liability) Fair value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 71 $ — $ 71 $ — $ 45 $ — $ 45 Liabilities — (116) — (116) — (165) — (165) Investment securities, including mutual funds 13 — — 13 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 8 and Footnote 9 , 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. In connection with the Company’s annual impairment testing at December 1, 2023, two tradenames in the Home and Commercial Solutions segment were measured at fair values of $491 million and $53 million. Effective January 1, 2024, the tradename with the fair value of $53 million, no longer met the criteria to be classified as an indefinite-lived tradename and was reclassified to a definite-lived tradename with a useful life of 10 years. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s three reportable segments are: Segment Key Brands Description of Primary Products Home and Commercial Solutions Ball (1) , Calphalon, Crockpot, FoodSaver, Mapa, Mr. Coffee, Oster, 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 Dymo, Elmer’s, EXPO, Graco, NUK, Paper Mate, Parker and Sharpie 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 and Marmot Active lifestyle products for outdoor and outdoor-related activities; technical apparel and on-the-go beverageware (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 Six Months Ended 2024 2023 2024 2023 Net sales (1) Home and Commercial Solutions $ 962 $ 1,058 $ 1,855 $ 2,029 Learning and Development 813 813 1,372 1,377 Outdoor and Recreation 258 333 459 603 $ 2,033 $ 2,204 $ 3,686 $ 4,009 Operating income (loss) (2) Home and Commercial Solutions $ 48 $ (21) $ 64 $ (58) Learning and Development 205 188 299 260 Outdoor and Recreation (11) 5 (29) 4 Corporate (79) (52) (155) (122) $ 163 $ 120 $ 179 $ 84 June 30, 2024 December 31, 2023 Segment assets Home and Commercial Solutions $ 4,622 $ 4,713 Learning and Development 4,086 4,111 Outdoor and Recreation 649 687 Corporate 2,691 2,652 $ 12,048 $ 12,163 (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). The following table disaggregates revenue by major product grouping source for the periods indicated (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Commercial $ 349 $ 378 $ 673 $ 726 Kitchen 496 549 934 1,008 Home Fragrance 117 131 248 295 Home and Commercial Solutions 962 1,058 1,855 2,029 Baby 251 251 471 468 Writing 562 562 901 909 Learning and Development 813 813 1,372 1,377 Outdoor and Recreation 258 333 459 603 $ 2,033 $ 2,204 $ 3,686 $ 4,009 The following table disaggregates revenue by geography for the periods indicated (in millions): Three Months Ended June 30, 2024 2023 North International TOTAL North International TOTAL Home and Commercial Solutions $ 625 $ 337 $ 962 $ 698 $ 360 $ 1,058 Learning and Development 629 184 813 609 204 813 Outdoor and Recreation 135 123 258 188 145 333 $ 1,389 $ 644 $ 2,033 $ 1,495 $ 709 $ 2,204 Six Months Ended June 30, 2024 2023 North International TOTAL North International TOTAL Home and Commercial Solutions $ 1,201 $ 654 $ 1,855 $ 1,341 $ 688 $ 2,029 Learning and Development 1,021 351 1,372 1,004 373 1,377 Outdoor and Recreation 243 216 459 334 269 603 $ 2,465 $ 1,221 $ 3,686 $ 2,679 $ 1,330 $ 4,009 |
Litigation and Contingencies
Litigation and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies The 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, 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. Further, 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 and the IRS’s temporary regulations under IRC Section 245A, as enacted by the 2017 U.S. Tax Reform Legislation and IRC Section 954(c)(6) (the “Temporary Regulations”), as well as the August 21, 2020 finalized versions of the Temporary Regulations . 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 June 30, 2024 was $37 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. On January 17, 2024, following review of public comments, the U.S. EPA filed an amended complaint and lodged a modified Consent Decree. U.S. EPA filed a motion to enter the modified Consent Decree on January 31, 2024. 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. On January 5, 2024, the Court granted a motion to extend the stay pending the Court’s adjudication of the then anticipated, and currently pending, motion to enter the amended Consent Decree embodying the U.S. EPA Settlement. At this time, the Company cannot predict the eventual outcome of the OCC Litigation. 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 in 2021. 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 first quarter of 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 Condensed Consolidated Financial Statements. Although 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 16 . At June 30, 2024, the Company had approximately $42 million in standby letters of credit primarily related to the Company’s self-insurance programs, including workers’ compensation, product liability and medical expenses. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 45 | $ 18 | $ 36 | $ (84) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 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. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates and Risks | Use of Estimates and Risks |
Seasonal Variations | Seasonal Variations |
Recent Accounting Pronouncements and Adoption of New Accounting Guidance | Recent Accounting Pronouncements 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 (“ASC”). The Company considers the applicability and impact of recently issued and proposed ASUs. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update require that a public entity disclose on an annual and interim basis significant segment expenses that are regularly provided to the entity’s chief operating decision maker (the “CODM”), nature and amount of other financial information by reportable segment and any additional measures of a segment’s profit or loss used by the CODM in assessing segment performance and deciding allocation of resources. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The standard requires all entities subject to income taxes to disclose disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The new requirement will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the consolidated financial statements. Adoption of New Accounting Guidance 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 the 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. 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. The Company adopted ASU 2022-04 which did not have a material impact on its consolidated financial statements. See disclosure hereafter for further information. |
Sales of Accounts Receivables | Sales of Accounts Receivables Factored receivables at June 30, 2024 associated with the Company’s existing factoring agreement for certain customer receivables (the “Customer Receivables Purchase Agreement”) were approximately $360 million, an increase of approximately $120 million from December 31, 2023. 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 expense, net in the Condensed Consolidated Statement of Operations. |
Supplier Finance Program Obligations | Supplier Finance Program Obligations In June 2024, the Company entered into an arrangement with a third-party vendor which provides a service for the Company’s suppliers, at their sole discretion, to sell their receivables due from the Company with various financial institutions, who at their sole discretion, contract with the third-party vendor to participate in the supplier finance program (the “New SCF Program”). 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 New SCF Program. 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 New SCF Program, at their sole discretion, determine which invoices, if any, they want to sell to the third-party vendor. The suppliers’ voluntary inclusion of invoices in the New SCF Program does not change the Company’s existing contractual terms with its suppliers. The Company does not provide any guarantees or collateral under the New SCF Program, nor does it have any economic interest in a supplier’s decision to participate in the New SCF Program. Amounts due under the New SCF Program will be included in accounts payable in the Condensed Consolidated Balance Sheets and as operating cash flows in the Condensed Consolidated Statement of Cash Flows. Prior to the New SCF Program, a global financial institution offered a voluntary supply chain finance program (the “Former SCF Program”) which similarly enabled suppliers, at their sole discretion, to sell their receivables due from the Company to the financial institution on a non-recourse basis. Pursuant to the Second Amendment (defined hereafter), a lender under the Credit Revolver (defined hereafter) that also participated in the Former SCF Program secured its related financing pursuant to the terms of the Credit Revolver. See Footnote 8 for further information. In April 2024, the Company exercised its right to terminate the Former SCF Program with the financial institution. |
Derivatives and Interest Rate Contracts | 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 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Supplier Finance Program | As such, the following table sets forth the outstanding payment obligations due to the financial institution and activities related to the suppliers who participated in the Former SCF Program: Balance at December 31, 2023 $ 96 Invoices participating in the Former SCF Program 111 Invoices paid to the financial institution (180) Balance at June 30, 2024 $ 27 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 (in millions): Cumulative Pension and Postretirement Costs Derivative AOCL Balance at December 31, 2023 $ (668) $ (196) $ (26) $ (890) Other comprehensive income (loss) before reclassifications (59) 9 7 (43) Amounts reclassified to earnings — (1) 7 6 Net current period other comprehensive income (loss) (59) 8 14 (37) Balance at June 30, 2024 $ (727) $ (188) $ (12) $ (927) |
Schedule of Reclassification from AOCL to Results of Operations | Reclassifications from AOCL to the results of operations for the three and six months ended June 30, 2024 and 2023 were pretax (income) expense of (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Pension and postretirement benefit plans (1) $ — $ 5 $ (1) $ 5 Derivative financial instruments (2) 5 1 9 (8) (1) See Footnote 10 for further information. (2) See Footnote 9 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 Six Months Ended 2024 2023 2024 2023 Foreign currency translation adjustments $ 4 $ (12) $ 16 $ (18) Pension and postretirement benefit costs (1) 1 2 1 Derivative financial instruments 3 (2) 5 (5) Income tax provision (benefit) related to AOCL $ 6 $ (13) $ 23 $ (22) |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Restructuring-Related Charges | In connection with the Network Optimization Project, the Company recorded restructuring and restructuring-related charges for the periods indicated as follows (in millions): Three Months Ended Six Months Ended Incurred since inception 2024 2023 2024 2023 Restructuring charges $ — $ 2 $ 3 $ 2 $ 10 Restructuring-related charges 6 8 8 8 24 Total $ 6 $ 10 $ 11 $ 10 $ 34 In connection with Project Phoenix, the Company recorded restructuring and restructuring-related charges for the periods indicated as follows (in millions): Three Months Ended Six Months Ended Incurred since inception 2024 2023 2024 2023 Restructuring costs $ — $ 17 $ 1 $ 53 $ 79 Restructuring-related costs 2 4 5 10 24 Total $ 2 $ 21 $ 6 $ 63 $ 103 Restructuring charges, net and restructuring-related charges incurred from inception for the Realignment Plan, Network Optimization Project and Project Phoenix (collectively, the “Plans”) were as follows (in millions): Severance and termination costs Contract termination and other costs Total restructuring Restructuring-related Total costs Realignment Plan $ 30 $ 1 $ 31 $ 8 $ 39 Network Optimization Project 6 4 10 24 34 Project Phoenix 77 2 79 24 103 $ 113 $ 7 $ 120 $ 56 $ 176 Restructuring charges, net incurred by reportable business segments for all restructuring activities for the periods indicated and the total charges since inception for the Plans are as follows (in millions): Three Months Ended Six Months Ended Total incurred since inception of Plans 2024 2023 2024 2023 Home and Commercial Solutions $ 3 $ 11 $ 10 $ 27 $ 52 Learning and Development 3 6 8 11 23 Outdoor and Recreation 2 2 3 8 14 Corporate 2 3 15 14 31 $ 10 $ 22 $ 36 $ 60 $ 120 |
Schedule of Accrued Restructuring Charges Activity | Accrued restructuring costs for the six months ended June 30, 2024 were as follows (in millions): Balance at December 31, 2023 Restructuring Payments Balance at Severance and termination costs $ 30 $ 32 $ (44) $ 18 Contract termination and other costs — 4 (4) — $ 30 $ 36 $ (48) $ 18 Accrued restructuring costs for the six months ended June 30, 2023 were as follows (in millions): Balance at December 31, 2022 Restructuring Payments Foreign Balance at Severance and termination costs $ 7 $ 57 $ (48) $ — $ 16 Contract termination and other costs — 3 (1) (1) 1 $ 7 $ 60 $ (49) $ (1) $ 17 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following (in millions): June 30, 2024 December 31, 2023 Raw materials and supplies $ 203 $ 214 Work-in-process 158 173 Finished products 1,278 1,144 $ 1,639 $ 1,531 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, is comprised of the following (in millions): June 30, 2024 December 31, 2023 Land $ 67 $ 75 Buildings and improvements 643 678 Machinery and equipment 2,479 2,517 3,189 3,270 Less: Accumulated depreciation (2,036) (2,058) $ 1,153 $ 1,212 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill by Reportable Business Segment | Goodwill activity for the six months ended June 30, 2024 is as follows (in millions): June 30, 2024 Segments Net Book Value at December 31, 2023 Foreign Exchange Gross Carrying Amount Accumulated Impairment Charges Net Book Value Home and Commercial Solutions $ 747 $ — $ 4,052 $ (3,305) $ 747 Learning and Development 2,324 (16) 3,395 (1,087) 2,308 Outdoor and Recreation — — 788 (788) — $ 3,071 $ (16) $ 8,235 $ (5,180) $ 3,055 |
Schedule of Other Intangible Assets, Net | Other intangible assets, net, are comprised of the following (in millions): June 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Tradenames — indefinite life (1) $ 1,199 $ — $ 1,199 $ 1,535 $ — $ 1,535 Tradenames — other (1) 549 (126) 423 232 (105) 127 Capitalized software 639 (528) 111 628 (512) 116 Patents and intellectual property 22 (21) 1 22 (20) 2 Customer relationships and distributor channels 1,070 (392) 678 1,078 (370) 708 $ 3,479 $ (1,067) $ 2,412 $ 3,495 $ (1,007) $ 2,488 (1) In alignment with the Company’s strategy, the Company determined that certain tradenames with aggregate carrying values of $322 million no longer met the criteria to be classified as indefinite-lived tradenames effective January 1, 2024. The estimated useful lives range from 10 to 15 years, which will increase the Company’s annual amortization expense by $25 million, approximately $6 million quarterly (approximately $0.01 net loss per share per quarter). |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities are comprised of the following (in millions): June 30, 2024 December 31, 2023 Customer accruals $ 628 $ 659 Accrued compensation 159 190 Operating lease liabilities 117 122 Accrued self-insurance liabilities, contingencies and warranty 87 92 Accrued interest expense 80 74 Accrued marketing and freight expenses 63 71 Accrued income taxes 61 89 Other 245 268 $ 1,440 $ 1,565 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt is comprised of the following at the dates indicated (in millions): June 30, 2024 December 31, 2023 4.00% senior notes due 2024 (1) (2) $ 199 $ 198 4.875% senior notes due 2025 (1) 499 498 3.90% senior notes due 2025 47 47 4.20% senior notes due 2026 1,981 1,980 6.375% senior notes due 2027 480 488 6.625% senior notes due 2029 474 486 5.375% senior notes due 2036 417 417 5.50% senior notes due 2046 658 658 Revolving credit facility (1) 285 131 Other debt 2 1 Total debt 5,042 4,904 Short-term debt and current portion of long-term debt (983) (329) Long-term debt $ 4,059 $ 4,575 (1) Included in short-term debt and current portion of long-term debt at June 30, 2024. (2) Included in short-term debt and current portion of long-term debt at December 31, 2023. Weighted average interest rates are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Total debt 6.0 % 5.3 % 5.8 % 5.1 % Short-term debt 7.5 % 6.8 % 7.8 % 6.5 % |
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): June 30, 2024 December 31, 2023 Fair Value Book Value Fair Value Book Value Senior notes $ 4,610 $ 4,755 $ 4,633 $ 4,772 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 Derivatives designated as effective hedges: Cash Flow Hedges Foreign currency contracts Prepaid expenses and other current assets $ 3 $ 1 Foreign currency contracts Other accrued liabilities (2) (13) Fair Value Hedges Interest rate swaps Other accrued liabilities (16) (15) Interest rate swaps Other noncurrent liabilities (23) (4) Net Investment Hedges Cross-currency swaps Prepaid expenses and other current assets 32 22 Cross-currency swaps Other assets 25 15 Cross-currency swaps Other noncurrent liabilities (73) (119) Derivatives not designated as effective hedges: Foreign currency contracts Prepaid expenses and other current assets 11 7 Foreign currency contracts Other accrued liabilities (2) (14) Total $ (45) $ (120) |
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) $ — $ (1) Foreign currency contracts Net sales and cost of products sold 5 (3) (9) — Cross-currency swaps Other expense, net 18 — (49) — Total $ 23 $ (5) $ (58) $ (1) Six Months Six 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 $ — $ (3) $ — $ (2) Foreign currency contracts Net sales and cost of products sold 10 (6) (14) 10 Cross-currency swaps Other expense, net 66 — (70) — Total $ 76 $ (9) $ (84) $ 8 |
Employee Benefit and Retireme_2
Employee Benefit and Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule Of Company's Pension and Postretirement Cost | 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ — $ — $ 1 $ 1 $ — $ — $ 2 $ 2 Interest cost 9 12 2 4 17 23 4 8 Expected return on plan assets (12) (14) (2) (3) (23) (28) (3) (6) Amortization — 1 — — — 2 — 1 Settlements — — 1 5 — — 1 5 Total (income) expense $ (3) $ (1) $ 2 $ 7 $ (6) $ (3) $ 4 $ 10 Postretirement Benefits Three Months Ended Six Months Ended 2024 2023 2024 2023 Amortization (1) (1) $ (2) $ (3) Total income $ (1) $ (1) $ (2) $ (3) |
Weighted Average Shares Outst_2
Weighted Average Shares Outstanding (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 Basic weighted average shares outstanding 415.2 414.2 415.0 414.0 Dilutive securities (1) 3.0 1.1 2.9 — Diluted weighted average shares outstanding 418.2 415.3 417.9 414.0 (1) The six months ended June 30, 2023 excludes 1.2 million of potentially dilutive share-based awards as their effect would be anti-dilutive. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 December 31, 2023 Fair value Asset (Liability) Fair value Asset (Liability) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives: Assets $ — $ 71 $ — $ 71 $ — $ 45 $ — $ 45 Liabilities — (116) — (116) — (165) — (165) Investment securities, including mutual funds 13 — — 13 14 — — 14 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company’s three reportable segments are: Segment Key Brands Description of Primary Products Home and Commercial Solutions Ball (1) , Calphalon, Crockpot, FoodSaver, Mapa, Mr. Coffee, Oster, 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 Dymo, Elmer’s, EXPO, Graco, NUK, Paper Mate, Parker and Sharpie 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 and Marmot Active lifestyle products for outdoor and outdoor-related activities; technical apparel and on-the-go beverageware (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 Six Months Ended 2024 2023 2024 2023 Net sales (1) Home and Commercial Solutions $ 962 $ 1,058 $ 1,855 $ 2,029 Learning and Development 813 813 1,372 1,377 Outdoor and Recreation 258 333 459 603 $ 2,033 $ 2,204 $ 3,686 $ 4,009 Operating income (loss) (2) Home and Commercial Solutions $ 48 $ (21) $ 64 $ (58) Learning and Development 205 188 299 260 Outdoor and Recreation (11) 5 (29) 4 Corporate (79) (52) (155) (122) $ 163 $ 120 $ 179 $ 84 June 30, 2024 December 31, 2023 Segment assets Home and Commercial Solutions $ 4,622 $ 4,713 Learning and Development 4,086 4,111 Outdoor and Recreation 649 687 Corporate 2,691 2,652 $ 12,048 $ 12,163 (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). |
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 Six Months Ended 2024 2023 2024 2023 Commercial $ 349 $ 378 $ 673 $ 726 Kitchen 496 549 934 1,008 Home Fragrance 117 131 248 295 Home and Commercial Solutions 962 1,058 1,855 2,029 Baby 251 251 471 468 Writing 562 562 901 909 Learning and Development 813 813 1,372 1,377 Outdoor and Recreation 258 333 459 603 $ 2,033 $ 2,204 $ 3,686 $ 4,009 The following table disaggregates revenue by geography for the periods indicated (in millions): Three Months Ended June 30, 2024 2023 North International TOTAL North International TOTAL Home and Commercial Solutions $ 625 $ 337 $ 962 $ 698 $ 360 $ 1,058 Learning and Development 629 184 813 609 204 813 Outdoor and Recreation 135 123 258 188 145 333 $ 1,389 $ 644 $ 2,033 $ 1,495 $ 709 $ 2,204 Six Months Ended June 30, 2024 2023 North International TOTAL North International TOTAL Home and Commercial Solutions $ 1,201 $ 654 $ 1,855 $ 1,341 $ 688 $ 2,029 Learning and Development 1,021 351 1,372 1,004 373 1,377 Outdoor and Recreation 243 216 459 334 269 603 $ 2,465 $ 1,221 $ 3,686 $ 2,679 $ 1,330 $ 4,009 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Feb. 07, 2024 | Feb. 06, 2024 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Factored receivables | $ 360 | ||
Increase in factored accounts receivable | $ 120 | ||
Former SCF Program | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Supplier finance program payments terms | 129 days | ||
Revolving Credit Facility | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Revolving accounts receivable facility, maximum borrowing capacity | $ 1,000 | $ 1,500 | |
Revolving Credit Facility | New Receivables Facility | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Factored receivables | $ 145 | ||
Increase in factored accounts receivable | $ 100 | ||
Agreement term | 3 years | ||
Revolving accounts receivable facility, maximum borrowing capacity | $ 225 | ||
Revolving accounts receivable facility, increase limit | $ 275 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Supplier Finance Program (Details) - Former SCF Program $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Supplier Finance Program, Obligation [Roll Forward] | |
Beginning balance | $ 96 |
Invoices participating in the Former SCF Program | 111 |
Invoices paid to the financial institution | (180) |
Ending balance | $ 27 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,076 | $ 3,333 | $ 3,112 | $ 3,519 |
Total other comprehensive loss, net of tax | (28) | (17) | (37) | (10) |
Ending balance | 3,080 | 3,315 | 3,080 | 3,315 |
AOCL | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (899) | (1,004) | (890) | (1,011) |
Other comprehensive income (loss) before reclassifications | (43) | |||
Amounts reclassified to earnings | 6 | |||
Total other comprehensive loss, net of tax | (37) | |||
Ending balance | (927) | $ (1,021) | (927) | $ (1,021) |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (668) | |||
Other comprehensive income (loss) before reclassifications | (59) | |||
Amounts reclassified to earnings | 0 | |||
Total other comprehensive loss, net of tax | (59) | |||
Ending balance | (727) | (727) | ||
Pension and Postretirement Costs | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (196) | |||
Other comprehensive income (loss) before reclassifications | 9 | |||
Amounts reclassified to earnings | (1) | |||
Total other comprehensive loss, net of tax | 8 | |||
Ending balance | (188) | (188) | ||
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (26) | |||
Other comprehensive income (loss) before reclassifications | 7 | |||
Amounts reclassified to earnings | 7 | |||
Total other comprehensive loss, net of tax | 14 | |||
Ending balance | $ (12) | $ (12) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension and postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax (income) expense | $ 0 | $ 5 | $ (1) | $ 5 |
Derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax (income) expense | $ 5 | $ 1 | $ 9 | $ (8) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Schedule of Income Tax Provision (Benefit) Allocated to Components of OCL (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) related to AOCL | $ 6 | $ (13) | $ 23 | $ (22) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) related to AOCL | 4 | (12) | 16 | (18) |
Pension and postretirement benefit costs | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) related to AOCL | (1) | 1 | 2 | 1 |
Derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax provision (benefit) related to AOCL | $ 3 | $ (2) | $ 5 | $ (5) |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 10 | $ 22 | $ 36 | $ 60 |
Aggregate charges incurred since inception | 176 | 176 | ||
Organizational Realignment Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9 | 31 | ||
Restructuring-related charges | 8 | 8 | ||
Aggregate charges incurred since inception | $ 39 | $ 39 | ||
Number of facilities consolidated | facility | 5 | 5 | ||
Net charge on sale leaseback | $ 6 | |||
Organizational Realignment Plan | Other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 4 | $ 4 | ||
Organizational Realignment Plan | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 75 | 75 | ||
Organizational Realignment Plan | Minimum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 60 | 60 | ||
Organizational Realignment Plan | Minimum | Office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 11 | 11 | ||
Organizational Realignment Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 90 | 90 | ||
Organizational Realignment Plan | Maximum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 70 | 70 | ||
Organizational Realignment Plan | Maximum | Office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 16 | 16 | ||
Network Optimization Project | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 2 | 3 | 2 |
Restructuring-related charges | 6 | 8 | 8 | 8 |
Aggregate charges incurred since inception | 34 | 34 | ||
Network Optimization Project | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 37 | 37 | ||
Expected cash expenditures | 35 | |||
Network Optimization Project | Minimum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 8 | 8 | ||
Network Optimization Project | Minimum | Industrial site reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 29 | 29 | ||
Network Optimization Project | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 49 | 49 | ||
Expected cash expenditures | 44 | |||
Network Optimization Project | Maximum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 11 | 11 | ||
Network Optimization Project | Maximum | Industrial site reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 38 | 38 | ||
Project Phoenix | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 17 | 1 | 53 |
Restructuring-related charges | 2 | 4 | 5 | 10 |
Aggregate charges incurred since inception | 103 | 103 | ||
Project Phoenix | Other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 5 | 5 | ||
Project Phoenix | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 100 | 100 | ||
Expected cash expenditures | 95 | |||
Project Phoenix | Minimum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 80 | 80 | ||
Project Phoenix | Minimum | Office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 15 | 15 | ||
Project Phoenix | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 130 | 130 | ||
Expected cash expenditures | 120 | |||
Project Phoenix | Maximum | Severance and termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 105 | 105 | ||
Project Phoenix | Maximum | Office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated aggregate restructuring and restructuring-related charges | 20 | 20 | ||
Other Restructuring and Restructuring-Related Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 3 | 1 | 5 |
Restructuring-related charges | $ 0 | $ 5 | $ 8 | $ 12 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring and Restructuring-Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 10 | $ 22 | $ 36 | $ 60 |
Restructuring charges, incurred since inception | 120 | 120 | ||
Restructuring-related charges, incurred since inception | 56 | 56 | ||
Total charges, incurred since inception | 176 | 176 | ||
Network Optimization Project | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 2 | 3 | 2 |
Restructuring-related charges | 6 | 8 | 8 | 8 |
Total | 6 | 10 | 11 | 10 |
Restructuring charges, incurred since inception | 10 | 10 | ||
Restructuring-related charges, incurred since inception | 24 | 24 | ||
Total charges, incurred since inception | 34 | 34 | ||
Project Phoenix | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 17 | 1 | 53 |
Restructuring-related charges | 2 | 4 | 5 | 10 |
Total | 2 | $ 21 | 6 | $ 63 |
Restructuring charges, incurred since inception | 79 | 79 | ||
Restructuring-related charges, incurred since inception | 24 | 24 | ||
Total charges, incurred since inception | $ 103 | $ 103 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring and Restructuring-related Charges Incurred From Inception (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | $ 120 |
Restructuring-related charges, incurred since inception | 56 |
Total charges, incurred since inception | 176 |
Realignment Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 31 |
Restructuring-related charges, incurred since inception | 8 |
Total charges, incurred since inception | 39 |
Network Optimization Project | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 10 |
Restructuring-related charges, incurred since inception | 24 |
Total charges, incurred since inception | 34 |
Project Phoenix | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 79 |
Restructuring-related charges, incurred since inception | 24 |
Total charges, incurred since inception | 103 |
Severance and termination costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 113 |
Severance and termination costs | Realignment Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 30 |
Severance and termination costs | Network Optimization Project | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 6 |
Severance and termination costs | Project Phoenix | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 77 |
Contract termination and other costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 7 |
Contract termination and other costs | Realignment Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 1 |
Contract termination and other costs | Network Optimization Project | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | 4 |
Contract termination and other costs | Project Phoenix | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges, incurred since inception | $ 2 |
Restructuring - Schedule of R_3
Restructuring - Schedule of Restructuring and Restructuring-Related Charges Incurred by Reportable Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 10 | $ 22 | $ 36 | $ 60 |
Total incurred since inception of Plans | 120 | 120 | ||
Operating Segments | Home and Commercial Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3 | 11 | 10 | 27 |
Total incurred since inception of Plans | 52 | 52 | ||
Operating Segments | Learning and Development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3 | 6 | 8 | 11 |
Total incurred since inception of Plans | 23 | 23 | ||
Operating Segments | Outdoor and Recreation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2 | 2 | 3 | 8 |
Total incurred since inception of Plans | 14 | 14 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2 | $ 3 | 15 | $ 14 |
Total incurred since inception of Plans | $ 31 | $ 31 |
Restructuring - Schedule of Acc
Restructuring - Schedule of Accrued Restructuring Costs Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 30 | $ 7 | ||
Restructuring charges | $ 10 | $ 22 | 36 | 60 |
Payments | (48) | (49) | ||
Foreign Currency and Other | (1) | |||
Ending balance | 18 | 17 | 18 | 17 |
Severance and termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 30 | 7 | ||
Restructuring charges | 32 | 57 | ||
Payments | (44) | (48) | ||
Foreign Currency and Other | 0 | |||
Ending balance | 18 | 16 | 18 | 16 |
Contract termination and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Restructuring charges | 4 | 3 | ||
Payments | (4) | (1) | ||
Foreign Currency and Other | (1) | |||
Ending balance | $ 0 | $ 1 | $ 0 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 203 | $ 214 |
Work-in-process | 158 | 173 |
Finished products | 1,278 | 1,144 |
Total inventories | $ 1,639 | $ 1,531 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,189 | $ 3,270 |
Less: Accumulated depreciation | (2,036) | (2,058) |
Total property, plant and equipment | 1,153 | 1,212 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 67 | 75 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 643 | 678 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,479 | $ 2,517 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 44 | $ 51 | $ 95 | $ 105 |
Initial lease term for lease not commenced | 14 years 6 months | 14 years 6 months | ||
Minimum contractual aggregate lease payments for lease note commenced | $ 106 | $ 106 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Schedule of Changes in Goodwill by Reportable Business Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | $ 3,071 |
Foreign Exchange | (16) |
Gross Carrying Amount | 8,235 |
Accumulated Impairment Charges | (5,180) |
Net book value, ending balance | 3,055 |
Home and Commercial Solutions | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | 747 |
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 | 2,324 |
Foreign Exchange | (16) |
Gross Carrying Amount | 3,395 |
Accumulated Impairment Charges | (1,087) |
Net book value, ending balance | 2,308 |
Outdoor and Recreation | |
Goodwill [Roll Forward] | |
Net book value, beginning balance | 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 - Schedule of Other Intangible Assets, Net (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2024 | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,479 | $ 3,495 | |
Accumulated Amortization | (1,067) | (1,007) | |
Net Book Value | 2,412 | 2,488 | |
Tradenames | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 549 | 232 | |
Accumulated Amortization | (126) | (105) | |
Net Book Value | 423 | 127 | |
Indefinite-lived trade names | $ 322 | ||
Amortization expense annual increase for the reclass of indefinite to finite | 25 | ||
Amortization expense quarterly increase for the reclass of indefinite to finite | $ 6 | ||
Amortization expense per share for the reclass of indefinite to finite (in USD per share) | $ 0.01 | ||
Tradenames | Minimum | |||
Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful lives | 10 years | ||
Tradenames | Maximum | |||
Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful lives | 15 years | ||
Capitalized software | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 639 | 628 | |
Accumulated Amortization | (528) | (512) | |
Net Book Value | 111 | 116 | |
Patents and intellectual property | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 22 | 22 | |
Accumulated Amortization | (21) | (20) | |
Net Book Value | 1 | 2 | |
Customer relationships and distributor channels | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,070 | 1,078 | |
Accumulated Amortization | (392) | (370) | |
Net Book Value | 678 | 708 | |
Tradenames | |||
Intangible Assets [Line Items] | |||
Net Book Value | $ 1,199 | $ 1,535 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization expense for intangible assets | $ 35 | $ 27 | $ 69 | $ 54 |
Tradenames | Home and Commercial Solutions | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of indefinite-lived intangible assets | $ 8 | $ 8 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Customer accruals | $ 628 | $ 659 |
Accrued compensation | 159 | 190 |
Operating lease liabilities | 117 | 122 |
Accrued self-insurance liabilities, contingencies and warranty | 87 | 92 |
Accrued interest expense | 80 | 74 |
Accrued marketing and freight expenses | 63 | 71 |
Accrued income taxes | 61 | 89 |
Other | 245 | 268 |
Other accrued liabilities | $ 1,440 | $ 1,565 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Other debt | $ 2 | $ 1 |
Total debt | 5,042 | 4,904 |
Short-term debt and current portion of long-term debt | (983) | (329) |
Long-term debt | $ 4,059 | 4,575 |
4.00% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4% | |
Long-term debt | $ 199 | 198 |
4.875% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.875% | |
Long-term debt | $ 499 | 498 |
3.90% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | |
Long-term debt | $ 47 | 47 |
4.20% senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.20% | |
Long-term debt | $ 1,981 | 1,980 |
6.375% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.375% | |
Long-term debt | $ 480 | 488 |
6.625% senior notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.625% | |
Long-term debt | $ 474 | 486 |
5.375% senior notes due 2036 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.375% | |
Long-term debt | $ 417 | 417 |
5.50% senior notes due 2046 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Long-term debt | $ 658 | 658 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 285 | $ 131 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Feb. 14, 2024 USD ($) | Feb. 09, 2024 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2024 USD ($) | Feb. 07, 2024 USD ($) | Feb. 06, 2024 USD ($) | |
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,000 | $ 1,500 | ||||
Receivables facility | $ 285 | |||||
Line of credit facility, remaining borrowing capacity | 695 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 150 | |||||
Receivables facility | 20 | |||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Expected interest expense increase, annualized amount | $ 16 | |||||
Senior notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense increase | $ 12 | |||||
Senior notes | S&P Global Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate adjustment | 0.0025 | |||||
Expected interest expense increase, annualized amount | $ 8 | |||||
Senior notes | S&P Global Inc. | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense increase | 6 | |||||
Senior notes | Moody's Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes subject to interest rate adjustment | $ 3,100 | |||||
Interest rate adjustment | 0.0025 | |||||
Expected interest expense increase, annualized amount | $ 8 | |||||
Senior notes | Moody's Corporation | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense increase | $ 6 |
Debt - Schedule of Weighted Ave
Debt - Schedule of Weighted Average Interest Rates (Details) - Weighted Average | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate during period | 6% | 5.30% | 5.80% | 5.10% |
Short-Term Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate during period | 7.50% | 6.80% | 7.80% | 6.50% |
Debt - Schedule of Fair Value o
Debt - Schedule of Fair Value of Senior Notes (Details) - Senior notes - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Fair Value | $ 4,610 | $ 4,633 |
Book Value | $ 4,755 | $ 4,772 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) swap | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) swap | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | |||||
Fair value of derivatives, liability | $ 45,000,000 | $ 45,000,000 | $ 120,000,000 | ||
Cash flow hedge gains to be reclassified within twelve months | 2,000,000 | ||||
Income recognized for derivative instruments not designated as hedging instruments | $ 10,000,000 | $ 8,000,000 | $ 9,000,000 | $ 18,000,000 | |
6.375% senior notes due 2027 | |||||
Derivative [Line Items] | |||||
Interest rate | 6.375% | 6.375% | |||
6.625% senior notes due 2029 | |||||
Derivative [Line Items] | |||||
Interest rate | 6.625% | 6.625% | |||
4.000% senior notes due 2024 | |||||
Derivative [Line Items] | |||||
Interest rate | 4% | 4% | |||
Senior notes | 6.375% senior notes due 2027 | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||
Interest rate | 6.375% | 6.375% | |||
Senior notes | 6.625% senior notes due 2029 | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||
Interest rate | 6.625% | 6.625% | |||
Senior notes | 4.000% senior notes due 2024 | |||||
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 interest rate swap, maturing January 2025, February 2025 and September 2027 | |||||
Derivative [Line Items] | |||||
Number of instruments held | swap | 3 | 3 | |||
Fair value of derivatives, liability | $ 1,300,000,000 | $ 1,300,000,000 | |||
Cross currency interest rate swap, maturing September 2027 and September 2029 | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 1,000,000,000 | $ 1,000,000,000 | |||
Number of instruments held | swap | 2 | 2 | |||
Cross-currency swaps | |||||
Derivative [Line Items] | |||||
Income recognized on derivative | $ 9,000,000 | $ 10,000,000 | $ 18,000,000 | $ 21,000,000 | |
Foreign currency contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 256,000,000 | 256,000,000 | |||
Foreign currency contracts | Derivatives not designated as effective hedges: | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 886,000,000 | $ 886,000,000 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | $ (45) | $ (120) |
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 | 3 | 1 |
Derivatives designated as effective hedges: | Cash Flow Hedges | Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (2) | (13) |
Derivatives designated as effective hedges: | Fair Value Hedges | Interest rate swaps | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (16) | (15) |
Derivatives designated as effective hedges: | Fair Value Hedges | Interest rate swaps | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (23) | (4) |
Derivatives designated as effective hedges: | Net Investment Hedges | Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | (73) | (119) |
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 | 32 | 22 |
Derivatives designated as effective hedges: | Net Investment Hedges | Cross-currency swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 25 | 15 |
Derivatives not designated as effective hedges: | Foreign currency contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, asset | 11 | 7 |
Derivatives not designated as effective hedges: | Foreign currency contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivatives, liability | $ (2) | $ (14) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | $ 23 | $ (58) | $ 76 | $ (84) |
Reclassified from AOCL to Income | (5) | (1) | (9) | 8 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 0 | 0 | 0 | 0 |
Reclassified from AOCL to Income | (2) | (1) | (3) | (2) |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 5 | (9) | 10 | (14) |
Reclassified from AOCL to Income | (3) | 0 | (6) | 10 |
Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in OCI (effective portion) | 18 | (49) | 66 | (70) |
Reclassified from AOCL to Income | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Benefit and Retireme_3
Employee Benefit and Retirement Plans - Schedule Of Company's Pension and Postretirement Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension Benefits | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 9 | 12 | 17 | 23 |
Expected return on plan assets | (12) | (14) | (23) | (28) |
Amortization | 0 | 1 | 0 | 2 |
Settlements | 0 | 0 | 0 | 0 |
Total (income) expense | (3) | (1) | (6) | (3) |
Pension Benefits | International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 2 | 4 | 4 | 8 |
Expected return on plan assets | (2) | (3) | (3) | (6) |
Amortization | 0 | 0 | 0 | 1 |
Settlements | 1 | 5 | 1 | 5 |
Total (income) expense | 2 | 7 | 4 | 10 |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization | (1) | (1) | (2) | (3) |
Total (income) expense | $ (1) | $ (1) | $ (2) | $ (3) |
Employee Benefit and Retireme_4
Employee Benefit and Retirement Plans - Additional Information (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2024 USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in underlying pension obligation | $ 11 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 19, 2024 | May 14, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Examination [Line Items] | ||||||
Effective income tax rate provision (benefit) | 46.40% | 48.60% | (50.00%) | 3.70% | ||
Federal statutory income tax rate | 21% | 21% | 21% | 21% | ||
Tax return discrete benefit for tax examinations | $ 64 | |||||
Additional tax expense for previously taxed earnings | $ 7 | |||||
Tax expensefor certain discrete items | $ 4 | $ 4 | ||||
Tax expense associated with a prior disposition | $ 6 | |||||
Unrecognized tax benefits, decrease resulting from prior period tax positions | $ 22 | |||||
Decrease in income taxes payable | $ 22 | |||||
Subsequent Event | Transfer Pricing, Additional Taxes | ||||||
Income Tax Examination [Line Items] | ||||||
Income tax examination, estimate of possible loss | $ 80 | |||||
Foreign Tax Jurisdiction | Subsequent Event | Transfer Pricing, Penalties | ||||||
Income Tax Examination [Line Items] | ||||||
Income tax examination, estimate of possible loss | $ 34 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 415.2 | 414.2 | 415 | 414 |
Dilutive securities (in shares) | 3 | 1.1 | 2.9 | 0 |
Diluted weighted average shares outstanding (in shares) | 418.2 | 415.3 | 417.9 | 414 |
Potentially dilutive share-based awards excluded from computation of diluted EPS (in shares) | 1.2 |
Weighted Average Shares Outst_4
Weighted Average Shares Outstanding - Additional Information (Details) - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive share-based awards excluded from computation of diluted EPS (in shares) | 1.2 | |
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) | 0.7 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) shares | |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award grants in period (in shares) | shares | 1.7 |
Aggregate grant date fair value of stock-based compensation award | $ | $ 13 |
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) | shares | 5.6 |
Aggregate grant date fair value of stock-based compensation award | $ | $ 43 |
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 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ (45) | $ (120) |
Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 71 | 45 |
Liabilities | (116) | (165) |
Investment securities, including mutual funds | 13 | 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 | 13 | 14 |
Level 2 | Fair Value Measurements on Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 71 | 45 |
Liabilities | (116) | (165) |
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) - Home and Commercial Solutions $ in Millions | Dec. 01, 2023 USD ($) tradename | Jan. 01, 2024 |
Tradename two | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Finite-lived intangible assets, useful lives | 10 years | |
Tradenames | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of indefinite-lived intangible assets | tradename | 2 | |
Tradename one | Level 3 | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of indefinite-lived intangible assets, excluding goodwill | $ 491 | |
Tradename two | Level 3 | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of indefinite-lived intangible assets, excluding goodwill | $ 53 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,033 | $ 2,204 | $ 3,686 | $ 4,009 | |
Operating income (loss) | 163 | 120 | 179 | 84 | |
Segment assets | 12,048 | 12,048 | $ 12,163 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,033 | 2,204 | 3,686 | 4,009 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (79) | (52) | (155) | (122) | |
Segment assets | 2,691 | 2,691 | 2,652 | ||
Home and Commercial Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 962 | 1,058 | 1,855 | 2,029 | |
Home and Commercial Solutions | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 962 | 1,058 | 1,855 | 2,029 | |
Operating income (loss) | 48 | (21) | 64 | (58) | |
Segment assets | 4,622 | 4,622 | 4,713 | ||
Learning and Development | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 813 | 813 | 1,372 | 1,377 | |
Learning and Development | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 813 | 813 | 1,372 | 1,377 | |
Operating income (loss) | 205 | 188 | 299 | 260 | |
Segment assets | 4,086 | 4,086 | 4,111 | ||
Outdoor and Recreation | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 258 | 333 | 459 | 603 | |
Outdoor and Recreation | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 258 | 333 | 459 | 603 | |
Operating income (loss) | (11) | $ 5 | (29) | $ 4 | |
Segment assets | $ 649 | $ 649 | $ 687 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,033 | $ 2,204 | $ 3,686 | $ 4,009 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,389 | 1,495 | 2,465 | 2,679 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 644 | 709 | 1,221 | 1,330 |
Home and Commercial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 962 | 1,058 | 1,855 | 2,029 |
Home and Commercial Solutions | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 625 | 698 | 1,201 | 1,341 |
Home and Commercial Solutions | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 337 | 360 | 654 | 688 |
Home and Commercial Solutions | Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 349 | 378 | 673 | 726 |
Home and Commercial Solutions | Kitchen | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 496 | 549 | 934 | 1,008 |
Home and Commercial Solutions | Home Fragrance | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 117 | 131 | 248 | 295 |
Learning and Development | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 813 | 813 | 1,372 | 1,377 |
Learning and Development | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 629 | 609 | 1,021 | 1,004 |
Learning and Development | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 184 | 204 | 351 | 373 |
Learning and Development | Baby | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 251 | 251 | 471 | 468 |
Learning and Development | Writing | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 562 | 562 | 901 | 909 |
Outdoor and Recreation | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 258 | 333 | 459 | 603 |
Outdoor and Recreation | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 135 | 188 | 243 | 334 |
Outdoor and Recreation | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 123 | $ 145 | $ 216 | $ 269 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 29, 2023 USD ($) | Oct. 31, 2021 USD ($) mi | Jun. 30, 2018 party defendant | Sep. 30, 2017 recipient | Jun. 30, 2024 USD ($) unit entity mi | Dec. 31, 2016 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Environmental remediation costs, estimate | $ 37 | |||||
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 | $ 42 | |||||
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 | |||||
Unfavorable Regulatory Action | ||||||
Loss Contingencies [Line Items] | ||||||
Civil penalty | $ 13 |