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Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

During the first quarter of 2020, the Company appointed separate Chief Executive Officers for its Food and Commercial business units, each reporting directly to the chief operating decision maker (CODM). The Company determined these appointments required a reassessment of its operating and reportable segments. As a result of its assessment, the Company concluded that the Food and Commercial business units were two separate operating segments but met the requirements to be aggregated into a single reportable segment, pursuant to authoritative accounting literature, as they had similar economic and qualitative characteristics.

During the second quarter of 2020, the Company implemented further changes to its management reporting structure, which included:

•The appointment of Chief Executive Officers for the Appliances and Cookware and Outdoor and Recreation business units;

•Expanding the responsibilities of the Food business unit Chief Executive Officer to include oversight of the Home Fragrance business unit; and

•Expanding the responsibilities of the Commercial business unit Chief Executive Officer to include oversight of the Connected Home & Security business unit.

The Company determined these appointments required a reassessment of its operating and reportable segments. As a result of its assessment, the Company concluded that it had the following five primary reportable segments:

Segment

Key Brands

Description of Primary Products

Appliances and Cookware

Calphalon®, Crock-Pot®, Mr. Coffee®, Oster® and Sunbeam®

Household products, including kitchen appliances, gourmet cookware, bakeware and cutlery

Commercial Solutions

BRK®, First Alert®, Mapa®, Quickie®, Rubbermaid Commercial Products®, and Spontex®

Commercial cleaning and maintenance solutions, hygiene systems and material handling solutions, connected home and security and smoke and carbon monoxide alarms

Home Solutions

Ball® (1), Chesapeake Bay Candle®, FoodSaver®, Rubbermaid®, Sistema®, WoodWick® and Yankee Candle®

Food storage and home storage products, fresh preserving products, vacuum sealing products and home fragrance products

Learning and  Development

Aprica®, Baby Jogger®, Dymo®, Elmer’s®, EXPO®, Graco®, Mr. Sketch®, NUK®, Paper Mate®, Parker®, Prismacolor®, Sharpie®, Tigex® Waterman® and X-Acto®

Writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products; labeling solutions; baby gear and infant care products

Outdoor and Recreation

Coleman®, Contigo®, ExOfficio®, Marmot®

Products for outdoor and outdoor-related activities

(1) Ball® TM of Ball Corporation, used under license.

This new structure reflects the manner in which the chief operating decision maker 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. As a result of these changes, net sales, operating income (loss) and impairment of goodwill and indefinite-lived intangible assets for the three and six months ended June 30, 2019 and segment assets as of December 31, 2019 have been recast for the new segment structure. Selected information by segment is presented in the following tables (in millions):

						Three Months Ended June 30,																		Six Months Ended June 30,
						2020						2019						2020						2019
Net sales (1)
Appliances and Cookware						$	359					$	362					$	650					$	692
Commercial Solutions						413						454						826						868
Home Solutions						355						372						702						743
Learning and Development						631						849						1,159						1,430
Outdoor and Recreation						353						443						660						789
						$	2,111					$	2,480					$	3,997					$	4,522
Operating income (loss) (2)
Appliances and Cookware						$	10					$	6					$	(298)					$	2
Commercial Solutions						40						53						(232)						45
Home Solutions						29						4						(262)						(1)
Learning and Development						126						217						131						306
Outdoor and Recreation						25						40						(449)						52
Corporate						(59)						(81)						(125)						(142)
Restructuring						(8)						(8)						(10)						(19)
						$	163					$	231					$	(1,245)					$	243
																		June 30, 2020						December 31, 2019
Segment assets
Appliances and Cookware																		$	1,097					$	1,468
Commercial Solutions																		2,394						2,731
Home Solutions																		3,027						3,327
Learning and Development																		5,170						4,800
Outdoor and Recreation																		1,217						1,570
Corporate																		1,352						1,746
																		$	14,257					$	15,642
						Three Months Ended June 30,																		Six Months Ended June 30,
						2020						2019						2020						2019
Impairment of goodwill and indefinite-lived intangibles assets (3)
Appliances and Cookware						$	—					$	—					$	299					$	—
Commercial Solutions						—						11						320						74
Home Solutions						—						—						290						—
Learning and Development						—						—						78						—
Outdoor and Recreation						—						—						482						—
						$	—					$	11					$	1,469					$	74

(1)All intercompany transactions have been eliminated.

(2)Operating income (loss) by segment is net sales less cost of products sold, SG&A and impairment of goodwill, intangibles and other assets for continuing operations. 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 sales basis, and included in segment operating income.

(3)During the six months ended June 30, 2020, the Company recorded impairment charges to reflect impairment of intangible assets related to certain of the Company’s indefinite-lived trade names and goodwill. During the six months

ended June 30, 2019, the Company recorded an impairment charge to reflect a decrease in the carrying values of Mapa/Spontex and Quickie while these businesses were classified as held for sale. See Footnote 7 for further information.

The following tables disaggregates revenue by major product grouping source and geography for the periods indicated (in millions):

			Three Months Ended June 30, 2020
			Appliances and Cookware						Commercial Solutions						Home Solutions						Learning and Development						Outdoor and Recreation						Total
Appliances and Cookware			$	359					$	—					$	—					$	—					$	—					$	359
Commercial			—						357						—						—						—						357
Connected Home Security			—						56						—						—						—						56
Food			—						—						253						—						—						253
Home Fragrance			—						—						102						—						—						102
Baby and Parenting			—						—						—						239						—						239
Writing			—						—						—						392						—						392
Outdoor and Recreation			—						—						—						—						353						353
Total			$	359					$	413					$	355					$	631					$	353					$	2,111
North America			$	223					$	304					$	300					$	490					$	218					$	1,535
International			136						109						55						141						135						576
Total			$	359					$	413					$	355					$	631					$	353					$	2,111
			Three Months Ended June 30, 2019
			Appliances and Cookware						Commercial Solutions						Home Solutions						Learning and Development						Outdoor and Recreation						Total
Appliances and Cookware			$	362					$	—					$	—					$	—					$	—					$	362
Commercial			—						364						—						—						—						364
Connected Home Security			—						90						—						—						—						90
Food			—						—						200						—						—						200
Home Fragrance			—						—						172						—						—						172
Baby and Parenting			—						—						—						290						—						290
Writing			—						—						—						559						—						559
Outdoor and Recreation			—						—						—						—						443						443
Total			$	362					$	454					$	372					$	849					$	443					$	2,480
North America			$	220					$	345					$	296					$	630					$	277					$	1,768
International			142						109						76						219						166						712
Total			$	362					$	454					$	372					$	849					$	443					$	2,480

			Six Months Ended June 30, 2020
			Appliances and Cookware						Commercial Solutions						Home Solutions						Learning and Development						Outdoor and Recreation						Total
Appliances and Cookware			$	650					$	—					$	—					$	—					$	—					$	650
Commercial			—						693						—						—						—						693
Connected Home Security			—						133						—						—						—						133
Food			—						—						437						—						—						437
Home Fragrance			—						—						265						—						—						265
Baby and Parenting			—						—						—						483						—						483
Writing			—						—						—						676						—						676
Outdoor and Recreation			—						—						—						—						660						660
Total			$	650					$	826					$	702					$	1,159					$	660					$	3,997
North America			$	407					$	606					$	567					$	864					$	410					$	2,854
International			243						220						135						295						250						1,143
Total			$	650					$	826					$	702					$	1,159					$	660					$	3,997
			Six Months Ended June 30, 2019
			Appliances and Cookware						Commercial Solutions						Home Solutions						Learning and Development						Outdoor and Recreation						Total
Appliances and Cookware			$	692					$	—					$	—					$	—					$	—					$	692
Commercial			—						694						—						—						—						694
Connected Home Security			—						174						—						—						—						174
Food			—						—						375						—						—						375
Home Fragrance			—						—						368						—						—						368
Baby and Parenting			—						—						—						526						—						526
Writing			—						—						—						904						—						904
Outdoor and Recreation			—						—						—						—						789						789
Total			$	692					$	868					$	743					$	1,430					$	789					$	4,522
North America			$	434					$	652					$	579					$	1,021					$	490					$	3,176
International			258						216						164						409						299						1,346
Total			$	692					$	868					$	743					$	1,430					$	789					$	4,522

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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