| Segment Information |
Segment Information During the first nine months of 2013, the Company divested its Hardware and Teach platform businesses, which were primarily included in the former Specialty segment. Accordingly, the results of operations of these businesses were classified as discontinued operations. During the nine months ended September 30, 2013, the remaining businesses in the former Specialty segment, specifically Dymo® Office and Endicia®, were combined with the Writing segment given the significant channel and operating synergies. As a result of these changes, the 2012 segment information in this footnote and Footnote 4 pertaining to restructuring have been presented to reflect five business segments, including the impacts of classifying the Hardware and Teach platform businesses as discontinued operations. The Company’s reportable segments are as follows: | | | | | | Segment | | Key Brands | | Description of Primary Products | Writing | | Sharpie®, Paper Mate®, Expo®, Parker®, Waterman®, Dymo® Office, Endicia® | | Writing instruments, including markers and highlighters, pens and pencils; art products; fine writing instruments; office technology solutions, including labeling and on-line postage solutions | Home Solutions | | Rubbermaid®, Calphalon®, Levolor®, Goody® | | Indoor/outdoor organization, food storage and home storage products; gourmet cookware, bakeware, cutlery and small kitchen electrics; window treatments; hair care accessories | Tools | | Irwin®, Lenox®, Dymo® Industrial, hilmor™ | | Hand tools and power tool accessories; industrial bandsaw blades; tools for HVAC systems; label makers and printers for industrial use | Commercial Products | | Rubbermaid Commercial Products®, Rubbermaid® Healthcare | | Cleaning and refuse products, hygiene systems, material handling solutions; medical and computer carts and wall-mounted workstations | Baby & Parenting | | Graco®, Aprica®, Teutonia® | | Infant and juvenile products such as car seats, strollers, highchairs and playards |
The comparative information for segment results and identifiable assets has been restated to conform to the 2013 presentation and is as follows (in millions): | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Net Sales (1) | | | | | | | | Writing | $ | 454.7 |
| | $ | 458.6 |
| | $ | 1,273.1 |
| | $ | 1,293.3 |
| Home Solutions | 431.4 |
| | 403.8 |
| | 1,169.4 |
| | 1,121.8 |
| Tools | 210.6 |
| | 203.6 |
| | 597.2 |
| | 596.6 |
| Commercial Products | 196.3 |
| | 205.6 |
| | 583.0 |
| | 571.1 |
| Baby & Parenting | 194.2 |
| | 185.3 |
| | 580.0 |
| | 549.9 |
| | $ | 1,487.2 |
| | $ | 1,456.9 |
| | $ | 4,202.7 |
| | $ | 4,132.7 |
| Operating Income (Loss) (2) | | | | | | | | Writing | $ | 108.8 |
| | $ | 83.6 |
| | $ | 295.6 |
| | $ | 255.7 |
| Home Solutions | 66.3 |
| | 64.0 |
| | 154.1 |
| | 137.5 |
| Tools | 12.3 |
| | 26.8 |
| | 49.3 |
| | 86.0 |
| Commercial Products | 23.5 |
| | 31.2 |
| | 67.0 |
| | 70.9 |
| Baby & Parenting | 23.9 |
| | 18.3 |
| | 71.6 |
| | 59.9 |
| Restructuring costs | (31.3 | ) | | (12.3 | ) | | (97.7 | ) | | (34.4 | ) | Corporate | (24.9 | ) | | (24.6 | ) | | (78.1 | ) | | (88.0 | ) | | $ | 178.6 |
| | $ | 187.0 |
| | $ | 461.8 |
| | $ | 487.6 |
|
| | | | | | | | | | September 30, 2013 | | December 31, 2012 | Identifiable Assets | | | | Writing | $ | 1,012.7 |
| | $ | 1,145.2 |
| Home Solutions | 592.7 |
| | 573.2 |
| Tools | 615.0 |
| | 562.8 |
| Commercial Products | 342.7 |
| | 348.8 |
| Baby & Parenting | 310.6 |
| | 312.7 |
| Corporate (3) | 3,279.2 |
| | 3,279.3 |
| | $ | 6,152.9 |
| | $ | 6,222.0 |
|
Geographic Area Information | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | (in millions) | 2013 | | 2012 | | 2013 | | 2012 | Net Sales (1), (4) | | | | | | | | United States | $ | 1,035.9 |
| | $ | 994.6 |
| | $ | 2,870.9 |
| | $ | 2,775.5 |
| Canada | 84.8 |
| | 84.7 |
| | 230.0 |
| | 236.0 |
| Total North America | 1,120.7 |
| | 1,079.3 |
| | 3,100.9 |
| | 3,011.5 |
| Europe, Middle East and Africa | 162.9 |
| | 172.4 |
| | 511.4 |
| | 529.3 |
| Latin America | 104.3 |
| | 85.5 |
| | 281.7 |
| | 243.0 |
| Asia Pacific | 99.3 |
| | 119.7 |
| | 308.7 |
| | 348.9 |
| Total International | 366.5 |
| | 377.6 |
| | 1,101.8 |
| | 1,121.2 |
| | $ | 1,487.2 |
| | $ | 1,456.9 |
| | $ | 4,202.7 |
| | $ | 4,132.7 |
| Operating Income (Loss) (2), (5) | | | | | | | | United States | $ | 142.0 |
| | $ | 137.9 |
| | $ | 379.5 |
| | $ | 352.1 |
| Canada | 19.3 |
| | 18.2 |
| | 50.8 |
| | 47.8 |
| Total North America | 161.3 |
| | 156.1 |
| | 430.3 |
| | 399.9 |
| Europe, Middle East and Africa | (5.9 | ) | | 2.6 |
| | (29.3 | ) | | 16.5 |
| Latin America | 11.9 |
| | 6.0 |
| | 20.0 |
| | 4.9 |
| Asia Pacific | 11.3 |
| | 22.3 |
| | 40.8 |
| | 66.3 |
| Total International | 17.3 |
| | 30.9 |
| | 31.5 |
| | 87.7 |
| | $ | 178.6 |
| | $ | 187.0 |
| | $ | 461.8 |
| | $ | 487.6 |
|
| | (1) | All intercompany transactions have been eliminated. Sales to Wal-Mart Stores, Inc. and subsidiaries amounted to approximately 13.8% and 11.8% of consolidated net sales in the three months ended September 30, 2013 and 2012, respectively, and approximately 11.2% and 10.4% of consolidated net sales in the nine months ended September 30, 2013 and 2012, respectively. |
| | (2) | Operating income (loss) by segment is net sales less cost of products sold and selling, general & administrative (“SG&A”) expenses for continuing operations. Operating income by geographic area is net sales less cost of products sold, SG&A expenses, restructuring costs and impairment charges, if any, for continuing operations. Certain headquarters expenses of an operational nature are allocated to business segments and geographic areas primarily on a net sales basis. Depreciation and amortization is allocated to the segments on a percentage of sales basis, and the allocated depreciation and amortization is included in segment operating income. |
| | (3) | Corporate assets primarily include goodwill, capitalized software, cash, deferred tax assets and assets held for sale. |
| | (4) | Geographic sales information is based on the region from which the products are shipped and invoiced. |
| | (5) | The following table summarizes the restructuring costs by region included in operating income (loss) above (in millions): |
| | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Restructuring Costs | | | | | | | | United States | $ | 9.1 |
| | $ | 3.9 |
| | $ | 21.9 |
| | $ | 18.3 |
| Canada | 0.1 |
| | 0.3 |
| | 0.1 |
| | 0.8 |
| Total North America | 9.2 |
| | 4.2 |
| | 22.0 |
| | 19.1 |
| Europe, Middle East and Africa | 19.3 |
| | 6.1 |
| | 67.6 |
| | 11.7 |
| Latin America | 0.6 |
| | 1.7 |
| | 4.2 |
| | 2.6 |
| Asia Pacific | 2.2 |
| | 0.3 |
| | 3.9 |
| | 1.0 |
| Total International | 22.1 |
| | 8.1 |
| | 75.7 |
| | 15.3 |
| | $ | 31.3 |
| | $ | 12.3 |
| | $ | 97.7 |
| | $ | 34.4 |
|
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