Newell Brands 10-K (2022-02-14)

FOR THE FISCAL YEAR ENDED

December 31, 2021

 

 

 

BUSINESS

 

“Newell Brands” or the “Company” refers to Newell Brands Inc. alone or with its wholly owned subsidiaries, as the context requires. When this report uses the words “we,” “us” or “our,” it refers to the Company and its subsidiaries unless the context otherwise requires. The Company was founded in Ogdensburg, New York in 1903 and is incorporated in Delaware.

 

 

 

The Company makes available free of charge on or through its website its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) as soon as practicable after the Company files them with, or furnishes them to, the U.S. Securities and Exchange Commission (“SEC”).

 

 

 

The Company’s website can be found at www.newellbrands.com. The information on the Company’s website is not incorporated by reference into this Annual report on Form 10-K.

 

 

 

GENERAL

 

Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid, FoodSaver, Calphalon, Sistema, Sharpie, Paper Mate, Dymo, EXPO, Elmer’s, Yankee Candle, Graco, NUK, Rubbermaid Commercial Products, First Alert, Spontex, Coleman, Campingaz, Oster, Sunbeam and Mr. Coffee.

 

 

 

Newell Brands' beloved brands enhance and brighten consumers lives at home and outside by creating moments of joy, building confidence and providing peace of mind.

 

 

 

The Company sells its products in nearly 200 countries around the world and has operations on the ground in over 40 of these countries, excluding third-party distributors.

 

 

 

BUSINESS STRATEGY

 

The Company is continuing to execute on its turnaround strategy of building a global, next generation consumer products company that can unleash the full potential of its brands in a fast-moving omni-channel environment. The strategy, developed in 2019, is designed to:

 

unleash : unleash something (on/upon somebody/something) to suddenly let a strong force, emotion, etc. be felt or have an effect

 

 

 

Drive sustainable top line growth by focusing on innovation, sharpening brand positioning, strengthening the international businesses, enhancing digital marketing and omni-channel capabilities, and building customer relationships;

 

 

 

Improve operating margins by driving productivity and overhead savings, while reinvesting in the business;

 

 

 

Accelerate cash conversion cycle by focusing on cash efficiency and improving key working capital metrics;

 

conversion : conversion (from something) (into/to something) the act or process of changing something from one form, use or system to another / conversion (from something) (to something) the process or experience of changing somebody's or your own religion or beliefs

 

 

 

Strengthen the portfolio by investing in attractive categories that are aligned with its capabilities and strategy and optimizing product mix; and

 

align : align (something) (with something) to arrange something in the correct position, or to be in the correct position, in relation to something else, especially in a straight line / align something (with/to something) to change something slightly so that it is in the correct relationship to something else

 

 

 

Strengthen organizational capabilities and employee engagement by building a winning team and focusing the best people on the right things.

 

 

 

The Company is implementing this strategy while addressing key challenges such as shifting consumer preferences and behaviors; a highly competitive operating environment; a rapidly changing retail landscape; continued macroeconomic and political volatility; significant inflationary and supply chain pressures, and an evolving regulatory landscape. The coronavirus (COVID-19) pandemic and its impact to the Company’s business resulted in the acceleration of the turnaround initiatives in many respects.

 

implement : implement something to make something that has been officially decided start to happen or be used

 

macroeconomic : connected with large economic systems, such as those of whole countries or areas of the world

 

volatility : the quality in a person of changing easily from one mood to another / the quality in a situation of being likely to change suddenly / the quality in a substance of changing easily into a gas

 

 

 

Continued execution of these strategic imperatives, in combination with new initiatives aimed to build operational excellence, will better position the Company for long-term sustainable growth.

 

execution : the act of killing somebody, especially as a legal punishment /  the act of doing a piece of work, performing a duty, or putting a plan into action / skill in performing or making something, such as a piece of music or work of art

 

imperatives : a thing that is very important and needs immediate attention or action; a factor that makes something necessary / the form of a verb that expresses an order; a verb in this form

 

 

 

One such initiative that was announced in the third quarter of 2021 is Project Ovid, a multi-year, customer centric supply chain initiative to transform the Company's go-to-market capabilities in the U.S., improve customer service levels and drive operational efficiencies.

 

centric : having a particular centre / based on a particular way of thinking

 

 

 

This initiative is expected to leverage technology to further simplify the organization by harmonizing and automating processes. Project Ovid is designed to optimize the Company’s distribution network by creating a single integrated supply chain from 23 business-unit-centric supply chains.

 

 

 

The initiative is intended to reduce administrative complexity, improve inventory and invoicing workflow for our customers and enhance product availability for consumers through omni-channel enablement.

 

 

 

This new operating model is also expected to drive efficiencies by better utilizing the Company's transportation and distribution network.

 

 

 

(omitted)

 

 

 

Organizational Structure

 

The Company’s five primary operating segments are as follows:

 

 

 

 

Commercial Solutions

 

 

The Commercial Solutions segment designs, manufactures, sources, and distributes commercial cleaning and maintenance solutions products, closet and garage organization products; hygiene systems and material handling solutions primarily under the Rubbermaid, Rubbermaid Commercial Products, Mapa, Quickie, and Spontex brands.

 

 

 

The segment also manufactures and distributes connected home and security products as well as smoke and carbon monoxide alarms mostly under the BRK and First Alert brands. See Footnotes 1 and 17 of the Notes to Consolidated Financial Statements for further information on the expected sale of the CH&S business unit.

 

 

 

The Commercial Solutions segment primarily markets its products directly to warehouse clubs, home centers, commercial products distributors, mass merchants, specialty retailers, distributors, e-commerce retailers, select contract customers and other professional customers.

 

 

 

Home Appliances

 

 

The Home Appliances segment designs, manufactures, sources, markets and distributes a diverse line of household products. Kitchen appliances are primarily sold under the Crockpot, Mr. Coffee, Oster and Sunbeam brands. The Home Appliances segment also has rights to sell various small appliance products in substantially all of Europe under the Breville brand name.

 

 

 

The Home Appliances segment primarily markets its products directly to warehouse clubs, department stores, drug/grocery stores, home centers, mass merchants, specialty retailers, distributors and e-commerce retailers.

 

 

 

Home Solutions

 

 

The Home Solutions segment designs, manufactures, sources, markets and distributes a diverse line of household products. Food storage products are sold primarily under the FoodSaver, Rubbermaid and Sistema brands.

 

 

 

Aluminum and stainless-steel cookware and bakeware are sold under the Calphalon brand. The Company also sells certain home canning and food storage products under the Ball brands, pursuant to a license from Ball Corporation. Home fragrance products are sold primarily under the Chesapeake Bay Candle, WoodWick and Yankee Candle brands.

 

pursuant : pursuant to something according to or following something, especially a rule or law

 

fragrance : a pleasant smell / a liquid that you put on your skin in order to make yourself smell nice

 

 

 

The Home Solutions segment primarily markets its products directly to warehouse clubs, department stores, grocery stores, home centers, mass merchants, specialty retailers, distributors and e-commerce retailers, as well as direct to consumers online and in Yankee Candle retail stores.

 

mass merchant : a store that sells large quantities of different products to a large number of people

 

 

 

(the rest omitted)