nwl 2009 annual report

8/8/2019 NWL 2009 Annual Report

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MEASURESGRIPSDRILLSCOVERSCUTSCLEANS

WRITESLABELSDELIGHTSSIZZLESORGANIZES

SEALSPROTECTSGROOMSCOOKSEDUCATESPAINTSBROWNS

RUBBERMAID CLOSETS CALPHALON PAPER MATE

RUBBERMAID FOOD STORAGE LENOX GOODY

SHARPIE PARKER GRACO


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PRESERVES ACCESSORIZES DECORATE

BERNZOMATIC RUBBERMAID COMMERCIAL CALPHA

LEVOLOR IRWIN

DYMO SHUR-LINE TECHNI

MIMIO


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2009LETTER TO SHAREHOLDE

MARK D. KETCHUMPRESIDENT AND CHIEF EXECUTIVE OFFI

The year 2009 was extraordinary in many ways: extdepth and breadth o its economic challenges, a

or the way our employees at Newell Rubbermaid

it. Despite the challenges, we delivered what we

achieved our fnancial goals, we made meaningu

execution o our strategic transormations and w

that our brands can grow market share in a down

requisites or being the best-in-class company to

Our vision to become a global company o Bran


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FINANCIAL HIGHLIGNEWELL RUBBERMAID INC.

SOLID PERFORMANCEWe began 2009 in a rapidly declining sales

environment on the heels o the global economic

meltdown that began in late 2008. Our fnancial

priorities were clear: protect earnings and maxi-

mize cash ow, despite pressures rom inevitablerevenue declines. Even more importantly, we

were determined to preserve investments in new

product innovation and consumer understanding

to keep the momentum we had worked so hard to

establish in our strategic brand-building initiatives.

Our organization achieved this ambitious agenda

and more.

Normalized earnings grew by 8 percentrom $1.21 to $1.31 per share.

Gross margin expanded by 390 basis points

to 36.7 percent o sales, putting us well within

reach o our 40 percent gross margin target

over the next ew years.

Operating cash ow increased by 33 percent

year-over-year to $603 million, restoring ourcash generation to pre-recession levels.

An emphasis on working capital discipline,

rigorous inventory management and disciplined

cost control also contributed signifcantly to this

perormance. We eliminated almost $130 million

in SG&A expense during the year and preserved

a healthy level o brand-building investment as

a percentage o sales. The emphasis on main-taining our new product pipeline will serve us

especially well as we set our sights on renewed

growth in a recovering marketplace.

AN OPTIMIZED PORTFOLIOThe Companys fnancial and operational

achievements in 2009 speak to the tremendous

progress made in recent years to achieve bestcosts through manuacturing and sourcing

rationalization, as well as sharing services and

best practices. Without these enterprise-wide

e ciency and productivity enhancements

to support our brands, I would be less upbeat

about our progress

was demonstrated in 2009 when despite declines

ranging rom 5 to 25 percent in our end-user

markets, about two-thirds o our businesses

achieved market share gains.

With a product portolio centered upon

everyday necessities such as ood preparation andstorage, baby care and hair styling, our Home &

Family segment proved to be the most resilient

among our businesses in 2009. This segment

experienced a low-single-digit decline in core

sales or the ull year, with a return to core sales

growth in the ourth quarter. At the other end o

the spectrum, the Tools, Hardware & Commercial

Products segment was particularly challenged due

to sustained weakness in the housing, industrial

and commercial markets. As a result, this segment

reported a mid-teens-percentage decrease in

core sales. Serving both retail and commercial

consumers, the O ce Products segments core

sales ell mid-single digits, in l ine with the

overall Company perormance. The good news

is that all three operating segments showed

sequential improvement in sales trends in the

ourth quarter, which we believe to be a leading

indicator o a return to growth in 2010.

BRAND BUILDING SUCCESSThough these fnancial results tell the story o the

past year, they do not ully impart the progress

that has been made within our business units in

recent years and the potential that lies ahead.While work remains, we can increasingly see a

distinct cause and eect between brand-building

excellence and share gains in our portolio.

($ in millions, except per share amounts)

2009


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The team at Rubbermaid Food Storage, or

example, has done an outstanding job o put-

ting the brand-building process to work. Using

consumer research, they identifed container

and lid organization as the number one unmet

need with ood storage containers. This insightled to a solution in the orm o an innovative

new product Easy Find Lids. Rubbermaid

Food Storage then commercialized the new

product by investing in advertising and market-

ing that resonated with their target consumers.

A commercial or Rubbermaid Easy Find Lids

was rated the most eective TV spot o 2009.

Our Sharpie brand has a similar story.

Innovative new products, such as the Sharpie

pen, and integrated marketing campaigns have

propelled Sharpie rom the largest marker

brand to the largest writing brand in North

America today. The success o the Sharpie

brand reects the strategy o our O ce Prod-

ucts segment to ocus its portolio around our

leading global brands Paper Mate, Sharpie,

Parker and Dymo in order to leverage supply

chain management, product innovation and

marketing investments on a global basis. As part

o this eort, we are consolidating our regional

everyday writing brands under the Paper Mate

brand. We recently unveiled a new logo and will

introduce new global packaging later this year.

In our Tools, Hardware & Commercial Products

segment, Rubbermaid Commercial Productscontinues to set the standard in the commercial

acilities cleaning and maintenance market. Our

2008 addition o Technical Concepts (TC) to this

business has proven to be an excellent example

o how strategic acquisitions can enhance our

portolio. As a leading provider o touch-ree

hygiene, skincare and aircare solutions, TC grew

25 percent in 2009, largely due to heighteneddemand or its hand sanitizer and hand cleaner

dispensing products.

Though the Tools, Hardware & Commercial

Products segment continues to battle market

cyclicality, our brands are outperorming many

peers and gaining market share in key catego

PRIMED FOR PERFORMANCEThese are but a ew o many examples that

demonstrate the meaningul progress we have

made over the past year despite a challenging

economic environment. Newell Rubbermaid is

a stronger organization and better competitoror having proven it can deliver under adverse

circumstances. Indeed, the Company is in an

excellent position to perorm well going or-

ward, with a more streamlined cost structure,

signifcantly improved margins and a portolio

responsive to innovation and brand building.

As 2010 begins to unold, we have seen a

degree o stability return to the marketplace.

While the rate o recovery will vary across our

businesses, we expect a modest level o sales

growth this year as we continue to grow share

in what is likely to be a at to slightly positive

economy. Consumers are seeking value more

than ever, and our emphasis on best costs

combined with innovative solutions provides

all o our business units with a compelling

go-to-market proposition.

In last years letter to you, I expressed my

confdence in our ability to weather the economic

crisis and achieve our goals because o my trust

and high regard or the men and women o

Newell Rubbermaid. This year, I give them all

the credit or rising to the challenge and doing

an admirable job on behal o our consumers,

customers and shareholders. This team is theessence o Brand NWL, and their potential to

create value is just beginning to emerge.

Sincerely,


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Just as strong brands levera

attributes to create value,

do eective companies. H

how BRAND NWL is creatshareholder value throug

portolio o Brands ThatM

BRAND NBRANDS THAT MATTER


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Demand creation begins by understanding consumer needs. Accordingly, our brand p

around common end-users and primary decision-makers. The emale head o househo

the primary decision-maker or our Home & Family brands. Though the end-user varies

portolio, every Newell Rubbermaid brand utilizes proven research techniques to deve

insights into the needs, motivations and value requirements that guide purchasing de

leads to the necessary level o consumer-centric understanding that creates a brand th

UNDERSTAN

BRAND NWL


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Our strategy to sustain proftable growth strikes a balance between invest

brand level and those across the enterprise. At the brand level, this means u

and development to understand consumers and create a continuous pipeli

innovation. Further, it means training programs designed to build long-te

in marketing at every level across the organization. At the corporate level,

invest in strategic SG&A initiatives, such as our global enterprise resource p

SAP, which is a key enabler o best-in-class business processes across the orSAP implementation will be substantially complete in our North American

year and deployed globally by 2012.

With over 500 marketing proessionals across the organization, our comprehensive

Marketing Excellence training programs cover introductory marketing skills up to

senior-level executive education.


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INNOINNOVATESNWLINNOVATESNWLINNOVATESNWL

COMING

MORE

FRO

In the belie that e

Paper Mate has in

pencils with a majo

grade within about


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ATESLINNOVATESNWLINNOVATESNWLINNOVATESNWL

Our strategy to sustain top-line growth

centers around a simple thesis: apply

consumer-driven insights to develop

eatures that lead to innovative products,

which retailers will support and consumers

will buy. We are investing strategically

to und such eorts, and our success is

evident in market share growth across

our brand portolio.

The Dymo LabelWriter 450 Twin Turbo label printer (eaturing

new Dymo Label v.8 Sotware) incorporates in-depth consumer

research into labeling habits to improve ease o use, enhance

productivity and inspire increased label usage.


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BRAND NWL

Top journalists got a sneak peek at Calphalon Unison

Nonstick cookware at Williams-Sonoma in Manhattan.

Celebrity Chef Michael Symon showcased Slide Nonstick

and Sear Nonstick during three hands-on sessions.


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LATIN AMERICAThe need or eective ood storage andan

organized kitchen is universal. With this in

mind, Rubbermaid Food Storage began testmarketing its line o Easy Find Lids to con-

sumers in Mexico during 2009. A television

campaign, in-store demonstrations and ree-

standing displays are among the advertising

and promotion initiatives to support this

h

NORTH AMERICAFor more than 60 years, teutonia has applied

Germanys legendary engineering excellence

to the design and manuacture o custom-

built strollers. In 2007, Newell Rubbermaid

acquired the teutonia brand and has begun

to introduce this premium stroller experience

to parents and their babies through boutique

retail outlets across North America.

BRAND NWLEXPANDS WORLDWIDE


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ASIALenox entere

market in 200

The Lenox Q

band saw bla

Innovation A

recognizes co

ing quality pr

The award un

commercial cu

turn to Lenox

eMeAA panel of more than 20,000 French consumers

selected the Paper Mate Flexgrip Elite

perhaps the worlds smoothest pen as

Product of the Year in 2009. This highly recog-

nized award recognizes product innovation

and high value for end-users. It also provides

the Paper Mate brand with value: surveys

indicate the award increases visibility

among consumers by 84 percentand among retail customers

by 94 percent.

expAndS WORLdWIdeBRAnd nWLexpAnd


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Newell Rubbermaid is a more productive

and ef cient enterprise today thanks to

the streamlining o our supply chain andthe leveraging o our expertise and scale

in recent years. These initiatives are creating

best-in-class cost structures to improve

our operating competitiveness and allow

our brands to deliver the appropriate level

o value or todays consumers. Our Project

Acceleration restructuring program, which

will be completed this year, is on track

to deliver more than $200 million in

annualized savings.

IVER


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Portolio enhancements, cost structure improvements,

working capital management and brand-building

excellence have ueled incremental improvements in

cash ow generation, earnings perormance and most

notably gross margin expansion. Though extraordinary

macroeconomic weakness set us back in 2008, we

regained our ooting in 2009 and delivered a nearly

400-basis-point increase in gross margin, as well as

year-over-year increases in earnings and cash low.

Continued investments in innovation and branding,

improved product mix, ongoing productivity savings

and cost discipline will help drive urther gross margin

expansion and solid earnings growth.

PERFORM

NORMALIZED

EARNINGS PER SHARE*

2009

$1.31

2008

$1.21

2007

$1.81

2006

$1.51

2005

$1.25

OPE

in m

2005

$642


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PR

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BrandingConsultantsandesignersorldwide

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U T L IE ,T H E T H E R B E IG E IT A B L E I A B E IL L U ST R A T R CS 3 .

S U P P LIE R S A R E R E SP S IB L E F R CH E CK IG R K I G R A I G S B E F R E P L A TE S A R E A E F R A CCU R A CY I E A S U R E E T S ,P L AT ET L E R A CE R E U IR E E T S ,R E G IS TR A T I A C S T R U CT I E T A ILIG . A Y CH A G E S A E T S U IT P R U CT I R E U IR E E T SS H U L B E A P P R V E B Y L A R . CL R P R F S S H U L B E S U B IT T E T L A R . A L L CP Y S H U L B E P R F R E A L A R SLEGAL EPARTE T.

A P P R V A L E CH. AR T IS T A P P R V A L P R . E P T . A P P R V A L C R E A TIV E E P T. A P P R V A L A RK E T IG E P T. P P R L C LI E T

ate:10/12/09

Job #: -

Printing process: offsetTBC

Scale:100

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PRI TI G ST TI S SPECIFIC LYERS

PAPER ATEP Logos-Horizon_EXE_2Clr.ai

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HOME &

FAMILY

TOOLS

HARDWARE &

COMMERCIALPRODUCTS

BRANDS THAT MATTER


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2009 Financial StatementS and Related inFoR

table oF contentS

S F d

aqss bssss

Qrr Srs

mgs dsss ass F c Rss oprs

Qv Qv dssrs a mrk Rsk

mgs Rsps r F Ss a Rpr ir cr ovr F Rprg

Rpr ip Rgsr P ag Fr

Rpr ip Rgsr P ag Fr ir cr ovr F Rprg

cs Ss oprs

cs b Shs

cs Ss csh Fws

cs Ss Skhrs eq cprhsv i (lss)

ns cs F Ss

c Sk Pr Prr Grph

mrk r c eq R Skhr mrs

R n-GaaP F msrs

br drrs

nw Rr i.2009 a Rpr


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nw Rr i.2009 a Rpr

Selected Financial datath wg s sr r s r rg h cp s r h r dr 3per share data). th sr hs rv pr r, sh r j wh, h cs F S swhr hs rpr h shs hr.

2009 2008 (1) 2007(1) 2006(1)

STATEMENTS OF OPERATIONS DATA

n ss $ 5,577.6 $ 6,470.6 $ 6,407.3 $ 6,201.0

cs prs s 3,528.1 4,347.4 4,150.1 4,131.0 Grss rg 2,049.5 2,123.2 2,257.2 2,070.0 Sg, gr srv pss 1,374.6 1,502.7 1,430.9 1,347.0 ipr hrgs 299.4 Rsrrg ss (2) 100.0 120.3 86.0 66.4

oprg 574.9 200.8 740.3 656.6 nprg pss:

irs ps, 140.0 137.9 104.1 132.0 ohr ps (), 6.7 59.1 4.2 6.1

n prg pss 146.7 197.0 108.3 138.1

i r s 428.2 3.8 632.0 518.5 i s 142.7 53.6 149.7 44.2

i (ss) r g prs 285.5 (49.8) 482.3 474.3 lss r s prs, (3) (0.5) (12.1) (85.7)

n (ss) 285.5 (50.3) 470.2 388.6 n rg rss 2.0 3.1 3.6

n (ss) rg rss $ 285.5 $ (52.3) $ 467.1 $ 385.0

Wgh-vrg shrs sg:

bs 280.8 279.9 278.6 276.7 d 294.4 279.9 287.6 276.8 ergs (ss) pr shr:

bs:i (ss) r g prs $ 1.02 $ (0.18) $ 1.72 $ 1.70 lss r s prs (0.04) (0.31) n (ss) rg rss $ 1.02 $ (0.18) $ 1.68 $ 1.39

d:i (ss) r g prs $ 0.97 $ (0.18) $ 1.72 $ 1.70 lss r s prs (0.04) (0.31)

n (ss) rg rss $ 0.97 $ (0.18) $ 1.67 $ 1.39 dvs $ 0.26 $ 0.84 $ 0.84 $ 0.84

BALANCE SHEET DATA

ivrs, $ 688.2 $ 912.1 $ 940.4 $ 850.6 Wrkg p (4) 422.6 159.7 87.9 580.3 t sss 6,423.9 6,792.5 6,682.9 6,310.5 Shr-r g rr pr g-r 493 5 761 0 987 5 277 5


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nw Rr i.2009 a Rpr

acQuiSitionS oF buSineSSeS2009, 2008 and 2007

ir rgrg sg ssss qr h s hr rs s F 2 h ns cs

2006 and 2005n sg qss rr rg 2006. o nvr 23, 2005, h cp qr d, g r sgrkg - g ss, r ess ab r $699.2 . th rs ws r sg h prh ws z 2006, r sr r wrkg p hr jss. th cp h qs rrwgs r pr-sg r s. th qs d srgh h cps ps h o Pr

hg h cps pr s sr s.

QuaRteRly SummaRieSSrz qrr r h s w rs s s ws (in millions, except per share data)():

cr yr 1s 2 3r

2009n ss $ 1,203.9 $ 1,504.3 $ 1,449.0 $ 1,42

Grss rg 422.8 558.3 542.6 52n 33.7 105.7 85.5 6n rg rss

n rg rss $ 33.7 $ 105.7 $ 85.5 $ 6

ergs pr shr:bs $ 0.12 $ 0.38 $ 0.30 $ 0d $ 0.12 $ 0.37 $ 0.28 $ 0

2008 (1)n ss $ 1,433.7 $ 1,825.1 $ 1,760.3 $ 1,45Grss rg 490.5 623.2 574.7 43i (ss) r g prs 57.8 92.9 55.6 (25lss r s prs (0.5)

n (ss) 57.3 92.9 55.6 (25n rg rss 0.4 0.4 0.6

n (ss) rg rss $ 56.9 $ 92.5 $ 55.0 $ (25

ergs (ss) pr shr:bs:

i (ss) r g prs $ 0.21 $ 0.33 $ 0.20 $ (0lss r s prs n (ss) rg rss $ 0.20 $ 0.33 $ 0.20 $ (0

d:i (ss) r g prs $ 0.21 $ 0.33 $ 0.20 $ (0lss r s prs n (ss) rg rss $ 0.20 $ 0.33 $ 0.20 $ (0


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nw Rr i.2009 a Rpr

manaGementS diScuSSion and analySiS oF Financial conditionand ReSultS oF oPeRationSth wg sss ss prvs r whh g vs s rv ssss rss rss prs . th sss sh r j wh h pg csSs ns hr.

BuSINESS OvERvIEwnw Rr s g rkr sr r prs h h h vs pp whr h wrk, v p

prs r rk r srg pr rs, g Rr, Gr, apr, lvr, cph, G, Shd, Prkr, Wr, irw, l th cps. th cps -pr rg sss w-kw r prs hr sss sgs: H & F; o Prs; ts, Hrwr & cr Prs.

Bsiness Stratey

nw Rrs vs s g p brs th mr gr pp, kw r s--ss rss. g sr-g rs hrgh rsg h s srs sg hs sghs rr pr ss h r prr v. t sppr s -r rsr s--ss g rkg rgz, h cp hs p srg h ss pzg h sss pr, g s g s, hvg s s s prs.

opzg h sss pr s rg h cps psr -srg ssss pr s ssss h ggrph gr ps, hs hg h p r grwh prv prvr pr.

bg sr-g rs vvs rg sr-rv v prss, vpg s--ss rg ps rss h rgz vsg srg r-g vs, g vss rvp r rs rg srs hr s.

ahvg s s vvs h cps p s--ss prs, sh s vrgg s, rsrrg h sprv p z vr prv svgs, rg ss rk-g vs, sgg prp ss, zg srg srg prrs wh s s v. ahvg s s ws h cp pps, gr s r rs vs srg r-g vs, prsrv sh q.

Maret Oerieth cp prs h sr r prs rks, whh r gr p vr s whh h cp prs. th cps rss 2009 hv vrs p wkss sr h rr wrw s. i prr, h cps rss r 2009 hv p h wg

lwr sr rrspg wr , whh hs rs r sr r svr, gv pg ss rg vr r-vr-r r ss ppr 7%. c ss g h ps qss, rr pr s. th prr rvrs h r ss wkss s r, whh rs r-vr-r r ss ppr 11%

r ssss wr h r sr hs, whh r r-vr- ppr 16% h cps ts, Hrwr & cr Prs sg. lss v s rks, whh hv rs wr p ss rv 2008, s h cps p ss

r rw r . c v h r rks, whh hs r h sr hs rs r

p g r ssss rss ss ss wh p g.


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nw Rr i.2009 a Rpr

c prv h s srr h sss rg srg srr sg, gr ss, g sg h sg srr r r hr. th cp s p g r srr vrh ss spg wrk sg s, p s 2009 r ss whr pss.

Sv vs srg SG&a rv ss h s w pr pp. drg 2009, h cpssrg r g sr r vss h wg: h up Whs is pg r h cps Shrp prs; h ps h cph pr h us -sk, shwshr s gr h ps Rr csrs srg pr lk-is srg rs wh k h r Gr prs sh s h bss 4--1 g hr h Pk P Pr wh s nw

ss w pr vp vs s rs prv p hh, g h th cszr h sr spsrs, , sh s s rv whr hg s

th cp s vss rsrh vp 2009 pr 2008 sp rr h ss p h cp. th cp ps k r vss rsrhr srg SG&a vs 2010.

iprv q r ss $371 2009, g rsg ppr $590 (r rs ss ss ss wh h vr hg wrr rss) pr h prvs r rrwgs p $200 . th cp rp $448 s rvs r $395 prp -r s.

R h v p s sk r $0.84 pr r $0.20 pr r. th w v p pr s vs-gr r rg h s q.

Onoin Initiaties

Project Acceleration

Prj ar s sg r rg vrh, r g h cps sr rspr ph vr sss srr g wh h cps r rgzg p, h g sss , hv s Prj ar rsrrg prgr hr vs, h cp hs sg prgrss prvg pvr prv svgs rsg h s srg srg prrs. drg h r dr 31, 2009,

p r rsrrg prgrs s pr Prj ar r rg s rg pr s H & F sg nr h ar, w prgrs s o Prs sgs r prs, prgsgs nrh ar prs, hr prgrs s ts, Hrwr & cr Prs sgs rp Prj ar, h cp hs r s rg pr r h 50%, g h sr 20 rg s h rsr 19 rg s prhsrs wh vsrs s

th cp ps hv p p s Prj ar rsrrg v h 20rr vr h h v r p w $475 $500 , g $250 $270 ss, $155 $175 -sh ss-r ss, $50 $70 hr ss rsrhs rr $421 rsrrg ss r Prj ar hrgh dr 31, 2009 ps r $80 ss p Prj ar. appr 67% h Prj ar rsrr

sh hrgs. cv z svgs p rz r h p Prj ar r p, wh r h $160 z svgs rz .

th cp s v s spp h pprs rz s prhsg, sr h cp g sg s Shs u.S. sr prs sg Shs u.S. sr r, whh sr s hrgh h Shs rg h u.S. th cp s s s rzg s s gss srv prvrs, sg sh prs cp-w s whr pss.

i r g h sss wh h g sss srr hv s s, h cp


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nw Rr i.2009 a Rpr

CONSOLIDATED RESuLTS OF OPERATIONSth cp vs h s h prg rshp w ss jr grs h cs Sr pr vg h cps prs. th wg ss r h s r h cs Ss opr prg ss r h r dr 31, (in millions, except percentages):

2009 2008

n ss $ 5,577.6 100.0% $ 6,470.6 100.0% $ 6,407.cs prs s 3,528.1 63.3 4,347.4 67.2 4,150.

Grss rg 2,049.5 36.7 2,123.2 32.8 2,257.

Sg, gr srv pss 1,374.6 24.6 1,502.7 23.2 1,430.ipr hrgs 299.4 4.6 Rsrrg ss 100.0 1.8 120.3 1.9 86.

oprg 574.9 10.3 200.8 3.1 740.nprg pss:

irs ps, 140.0 2.5 137.9 2.1 104.ohr ps, 6.7 0.1 59.1 0.9 4.

n prg pss 146.7 2.6 197.0 3.0 108.

i r s 428.2 7.7 3.8 0.1 632.

i s 142.7 2.6 53.6 0.8 149.i (ss) r g prs 285.5 5.1 (49.8) (0.8) 482.lss r s prs, (0.5) (12.

n (ss) 285.5 5.1 (50.3) (0.8) 470.n rg rss 2.0 3.

n (ss) rg rss $ 285.5 5.1% $ (52.3) (0.8)% $ 467.

Reslts of Operations 2009 s. 2008n ss r 2009 wr $5,577.6 , rprsg rs $893.0 , r 13.8%, r $6,470.6 r 2008. cr s

pr h prr r rsg r h wr sr r wr pr s w s vr skg h r sr hs. Ggrph, r ss h cps s r ssss 11%, rspv, vrss h prr r. P pr s rg rr r 5.2% 2.1%ss , rspv. th th cps apr qss rs ss 0.8% vr h prr r.

Grss rg, s prg ss, r 2009 ws 36.7%, r $2,049.5 , vrss 32.8% ss, r $2,123.2 prr rvrs h 390 ss p grss rg ps s rz r pr s, rg p s prg s 2008 r 2009. ths prvs r h s h vrs ps r prcps rg s vr pr sr .

SG&a pss r 2009 wr 24.6% ss, r $1,374.6 , vrss 23.2% ss, r $1,502.7 , r 2008. trs ws prr rv h cps g SG&a spg s w s s r prgrs

r 2009 g h gv p h ss. Frg rr rs rprs $37.8 h $1whh ws pr s $21.2 r SG&a ss rsg r h th cps apr qss.

th cp rr rsrrg ss $100.0 $120.3 r 2009 2008, rspv. th cps2009 r prr pzg h s srr h sss sr rg h cps rg rsrrg ss 2008 prr r pr s rg h cps rg pr. th rsr $32.4 hr pr ss, $48.8 p svr, r s ss $18 8 r s hr rsrrg ss th rsrrg ss r 2008 $


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nw Rr i.2009 a Rpr

oprg r 2009 ws 10.3% ss, r $574.9 , vrss 3.1% ss, r $200.8 r 2008. th 72prr rs h gw pr hrgs rr 2008, wh sr pr hrgs 2009. th prv ps pr s rg p ss 2009, pr s rs SG&a ss s prg s

irs ps, , r 2009 ws $140.0 pr $137.9 r 2008. th $2.1 rs rsvrg sg r-vr-r.

ohr ps, , r 2009 ws $6.7 vrss $59.1 r 2008. th rs hr ps, , s prr$52.2 ss gsh rg h cps rp s $250.0 -r Rs

th cp rgz ps $142.7 2009 pr $53.6 2008. th rs rs rs r s 2009 pr 2008 s w s h rg $29.9 2009 2008, rspv, r vr s r h iRSs rvw sp s

r whh h s s pr. th ps hs s wr pr s h ps h prs ss h pr hrgs wr r prpss, rg, 2008 ss wh h pr hrgs. S F 16 h ns cs F Ss r rhr

Reslts of Operations 2008 s. 2007n ss r 2008 wr $6,470.6 , rprsg rs $63.3 , r 1%, r $6,407.3 r 2007. cr s3.0% pr h prr r. th th cps apr qss rs ss $204.7 , r 3.2%, vr rr r 0.8% ss grwh.

Grss rg, s prg ss, r 2008 ws 32.8%, r $2,123.2 , vrss 35.2%, r $2,257.2 , h 240 ss p grss rg r h p rw r sr gs s w s wr

vr pr pr rg h rh qrr 2008, pr s s r prv prvar hr vs.

SG&a pss r 2008 wr 23.2% ss, r $1,502.7 , vrss 22.3% ss, r $1,430.9 , r 2rs ws prr rv SG&a pss ss wh h th cps apr qss h pwhh r h s h ps h cps g srr srg SG&a spg.

th cp rr rsrrg ss $120.3 $86.0 r 2008 2007, rspv. th rs2008 pr h prr r s prr r $36.0 ss pr hrgs rr 2008 ssp vs, wsz r r pr grs whr rs s h prr p s prs s. th 20 $46.1 hr ss, g h $36.0 ss pr hrgs v, $57svr, r s p r ss, $16.7 r s hr whh $3.1 rs h cps 2001 Rsrrg P. th 2007 rsrrg ss $27.7 $36.4 p svr r s $21.9 r s hr rF 4 h ns cs F Ss r rhr r.

th cp rr -sh pr hrg $ 299.4 rg h rh qrr 2008 prp rrprg s h ts, Hrwr & cr Prs o Prs sgs. n sr pr hrgs w

oprg r 2008 ws $200.8 , r 3.1% ss, vrss $740.3 , r 11.6% ss, 2007. th 8prr r h $299.4 pr hrgs v, h p rw r sr gs h $36.0 Prj ar ss pr hrgs 2008 sss v, pr s prvs r

irs ps, , r 2008 ws $137.9 vrss $104.1 r 2007. th $33.8 r-vr-r rs

rrwgs 2008 s h qss apr th cps.ohr ps, , r 2008 ws $59.1 vrss $4.2 r 2007. th rs hr ps, , 2008 s h $52.2 ss gsh rg h cps rp s $250.0 -r Rs

th cp rgz ps $53.6 r 2008, pr $149.7 r 2007. th rs rs rs r s 2008 pr 2007. th p h rs prg r ps ws pr s rs h rs pp h vrs sr pss, g rsrrg 2008 pr 2007, whh h h rsg ps 2008 pr 2007. i ps r 2


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BuSINESS SEgMENT OPERATINg RESuLTS2009 s. 2008 Bsiness Sement Operatin Reslts

n ss sg wr s ws r h r dr 31, (in millions, except percentages):

2009 2008

H & F $ 2,377.2 $ 2,654.8 o Prs 1,674.7 1,990.8 ts, Hrwr & cr Prs 1,525.7 1,825.0

t n Ss $ 5,577.6 $ 6,470.6

oprg (ss) sg ws s ws r h r dr 31, (in millions, except percentages):

2009 2008

H & F $ 274.7 $ 218.3 o Prs 235.2 212.4 ts, Hrwr & cr Prs 245.6 271.7 crpr (80.6) (81.9) ipr hrgs (299.4)

Rsrrg ss (100.0) (120.3) t oprg i $ 574.9 $ 200.8

nmF-n g

Home & Family

n ss r 2009 wr $2,377.2 , rs $277.6 , r 10.5%, r $2,654.8 r 2008. cr ss 2.1r ss grwh h cr lss Gbu ws s hgh-sg-g h dr Gbu, whh s prs sr, s w s -sg-g h b & Prg esss Gbu, whh ws vrs p gr wrw. n ss 8.1% pr s h Rr csr Gbu 1.3% vr

ps. th apr qs rs ss 1.0% pr h prr r.oprg r 2009 ws $274.7 , r 11.6% ss, rs $56.4 , r 25.8%, r $218.3

r 2008. th 340 ss p prv prg rg ws prr rg p ss, pr s pri h ggrg, hs prvs r 450 ss ps h ps prg rg wr pr s rs SG&a pss s prg ss.

Office Products

n ss r 2009 wr $1,674.7 , rs $316.1 , r 15.9%, r $1,990.8 r 2008. cr ss prr r wk sr h s r vr skg h r v. R pr s vr rg rr r 6.0% 3.4%, rspv, h r-vr-r

oprg r 2009 ws $235.2 , r 14.0% ss, rs $22.8 , r 10.7%, r $212.4 ss r 2008. th 330 ss p prv prg rg ws prr r pr s. i s rrs prg ss 2009 wr pr 2008.

Tools, Hardware & Commercial Products

n ss r 2009 wr $1,525.7 , rs $299.3 , r 16.4%, r $1,825.0 r 2008. cr ss 15


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nw Rr i.2009 a Rpr

2008 s. 2007 Bsiness Sement Operatin Resltsn ss sg wr s ws r h r dr 31, (in millions, except percentages):

2008 20

H & F $ 2,654.8 $ 2,61o Prs 1,990.8 2,02ts, Hrwr & cr Prs 1,825.0 1,77

t n Ss $ 6,470.6 $ 6,40

oprg (ss) sg ws s ws r h r dr 31, (in millions, except percentages):

2008 20

H & F $ 218.3 $ 30o Prs 212.4 31ts, Hrwr & cr Prs 271.7 28crpr (81.9) (8ipr hrgs (299.4) Rsrrg ss (120.3) (8

t oprg i $ 200.8 $ 74nmF-n g

Home & Family

n ss r 2008 wr $2,654.8 , rs $44.0 , r 1.7%, r $2,610.8 2007. cr ss r ss grwh h b & Prg esss Gbu ws s sss h dr Gbu. th apr qs rs3.7%, wh vr rg rr r 0.2% h vr ss prv. th vrs p rss 1.4%.

oprg r 2008 ws $218.3 , r 8.2% ss, rs $89.2 r $307.5 , r 11.8th 360 ss p ws prr rv vr sr pr p s , prrr s 590 ss ps h . ths s wr pr s s rz r ghr

Office Products

n ss r 2008 wr $1,990.8 , rs $35.4 , r 1.7%, r $2,026.2 2007. cr ss 3 sr vr g. Fvr rg rr rs ss 1.5%.

oprg r 2008 ws $212.4 , r 10.7% ss, rs $103.4 , r $315.8 , r 15th 490 ss p ws prr r p s , vr r pr vs hs, whh r s 330 ss ps h vr . th rg ws prr rvspg s prg ss, pr s s r prg vs p rg 2008.

Tools, Hardware & Commercial Products

n ss r 2008 wr $1,825.0 , rs $54.7 , r 3.1%, r $1,770.3 2007. cr ss r ss grwh h Rr cr Prs Gbu ws r h s s r ss h cps i csr ts & assrs Gbus s h rs sr rk, sr vr sss sr r hs. th th cps qs rs ss $109.2 , r 6.2%, whrs ss 0 8%


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LIQuIDITY AND CAPITAL RESOuRCESCash Flos

csh sh qvs rs (rs) s ws r h r dr 31, (in millions):

2009 2008

csh prv prg vs $ 602.8 $ 454.9 csh s vsg vs (149.4) (804.1) csh (s ) prv g vs (427.0) 306.0 ehg r sh sh qvs (23.5) (10.6)

irs (rs) sh sh qvs $ 2.9 $ (53.8)

i h sh w s, h hgs prg sss s r prs g h s hgs rrs h s qss, s hs r sh ws. arg, h s h sh w s h prg sss s h r prs h shs.

Sources

Hsr, h cps prr srs q p rsrs hv sh prv prs, ss v rrwg s.

csh prv prg vs r 2009 ws $602.8 pr $454.9 r 2008. ths prv s prwrkg p prvs, rv $243.1 sh prv rg vrs 2009 pr $30.9 ppr $75.0 rs ps 2009 pr 2008 r prr-s ps, whh s gqrr h r s h prvs rs rss. csh prv prg vs r 2009 s $75.0 vrh cp s prr u.S. ps p $126.6 p s rg hg rs rrgs rss-rr rs r swps. csh prv prg vs r 2008 rs $200.4 rsr 2007. th rs s r prr wr r g prs, r s p, h r s, g s, pr s wrkg p rs rv prv s rg vr vs.

th cp rv prs $827.3 , $1,318.0 $420.8 r h ss 2009, 2008

i mrh 2009, h cp p h rg s $300.0 sr sr s $345.0 s. th $624.3 prs r hs sss wr s p h r rs rprhs $325.0 -r s vr hg rss r gr rpr prpss. as r h ss hs, h cp r wrr rss whh h cp s wrrs hr prs r ppr $32.7 h ns cs F Ss r r hs rss. drg 2009, h cp $70.0 r 364- rvs h ws p Spr 2009 rrw rp $125.0 rvvg r (h Rvvr). i Spr 2008, h cp r $400.0 r gr, r whh sr hr-r r h $400.0 (h tr l). n prs r h tr l wr s r ppr r gr rpr prpss. i mrh 2008, h cp p h rg s sr sr $500.0 5.50% sr sr s apr 2013 $250.0 6.25% sr sr s apr 2018

hs rg wr s qss, rp , r gr rpr prpss. Prs r h ss 20ss r ppr qss h rp v-r, $250.0 -r h r

Uses

Hsr, h cps prr ss q p rsrs hv qss, v ps, p pps .

th cp ggrg ps shr g r $1 113 0 $772 5 $478 3 rg


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nw Rr i.2009 a Rpr

6.11% -r s J 2028. th rg ps rg 2008 rprs h p cp rr v-r, $250 , 6% -r , r, ps r ppr.th cp vs sg qss 2009. csh s r qss ws $655.7 $106.0

rspv. th sh s 2008 rs prr h qss th cps apr, wh sh s 20 e. S F 2 h ns cs F Ss r rhr r.

aggrg vs p wr $71.4 , $234.5 $234.7 2009, 2008 2007, rspv.cp prs wr $153.3 , $157.8 $157.3 2009, 2008 2007, rspv. th rg

h 2009, 2008 2007 ws h p SaP.th cp prhs rg rss s ssrs r $29.2 rg 2009.csh s r rsrrg vs sh s s rg hg rs rss-rr rs r sw

r s hr h cs Ss csh F ws. csh s r rsrrg vs ws $84.0$53.1 2009, 2008 2007, rspv, whh prr rs p r s. th cp p s rg hg rs rp rrwgs rss-rr rs r swps rg 2009.

Financial Positionth cp s g srg ps hrgh g s vs v q, rg h cps vr pz.

csh sh qvs dr 31, 2009 wr $278.3 , h cp h $690.0 $188.8 r s Rvvr w rvs , rspv.

Wrkg p dr 31, 2009 ws $422.6 pr $159.7 dr 31, 2008, h

2009 ws 1.24:1 pr 1.07:1 dr 31, 2008. th rs wrkg p h rr r s prr h cps g vs h rp rr rs s w s sh ws gr

th cp rs s vr pz vg pz. t p h s shr g-r , ss sh, v h s skhrs q, ss sh. tws .56:1 dr 31, 2009 .62:1 dr 31, 2008.

th cp r h qrr v p s sk r $0.21 pr shr $0.05 pr shr rg 2 s vs-gr r rg.

ovr h g-r, h cp ps prv s rr r pz prvg prp sg sh gr r prs rp rs. th cp hs r r, r k hr sps r s r s gs r hrws prv s vr ps sh. Grk s, s sh pss hr srs, h cp k sh s.

Borroin Arranementsdrg 2009, h cp h s q ps pg h ss $300.0 srs $345.0 vr sr s. Prs r hs rgs wr s p h vr hp h tr ors r gr rpr prpss. i , Spr 2009 h cp p w 3h prvs r rrwgs p $200.0 . as dr 31, 2009, $188.8 ws v r rrwg r, hr wr s sg. i wh h p h w rvs , h cp

g-r sg r h prvs rvs .th cps Rvvr prs nvr 2012. as dr 31, 2009, hr wr rrwgs sg r h h $690.0 rrwg p ( nvr 2010, h rrwg p s r $665.0 ). i rrh cp s h rrwg p r h Rvvr prv h kp q rqr ss r ppr ss p h v r rrwg r h Rvvr. Hwvr, h cps rr shp wh r h r rks, pr r ssg h r ppr rk. th Rvvr p $100.0 s rs r s g s hr s s v r rrwg r h Rvv


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nw Rr i.2009 a Rpr

th wg srzs h h s hr r r gs r p hv h cp pr. i , h rs h g prp rs ps rrwgs sg s drs rgrg hs gs r prv h ns cs F Ss (in millions):

Ps d Pr

lss th t 1 yr 1-3 yrs 3-5 yrs

d (1) $ 2,508.8 $ 493.5 $ 517.3 $ 506.2 irs (2) 1,165.2 144.5 264.6 244.8 oprg s gs (3) 404.3 96.5 137.7 79.4 Prhs gs (4) 414.6 340.9 73.7

t r gs (5) $ 4,492.9 $ 1,075.4 $ 993.3 $ 830.4

(1) as rprs r gs s h rs h h g , g rs, s rrwgs sg s dr h $345.0 vr sr s s h s wh r s h vr sr s r vr s dr 31, 2009. Prvs h hrs vr hr s rg sp prs r s r , s sh s wr , h vr sr s r v mrh 31, 2010. th vr sr s vr r prs r mrh 2014 rr vr . Fr rhr r rg h9 h ns cs F Ss.

(2) as rprs s rs p rrwgs sg s dr 31, 2009, g h p rs r swps h js h r -r s. irs g-r ws s sg h r s dr 31, 2009. Fr rhr r, s F 9 h ns cs

(3) as rprs r s gs prg ss s dr 31, 2009. Fr rhr r rg hs gs, s F 12 F Ss.

(4) Prr sss prhs s r s dr 31, 2009 r sh gs, rw rs, ps srvs prs g r sg rs.

(5) t s r gs rpr h dr 31, 2009 sh s rr s, p r rr pr g-r shr-r

th cp s hs s r r pss rgz s. as rg pr, h cp s h iRS hr g hrs svr p pss, s pss h h h r r ps s hg h g r. Wh s pss h r r hs s rsv h r rs s h g r h whh h w rs r rs vr ; hrr, h $191.6 s, g rs ps, dr 31, 2009 s r h prg . S F 16 h ns cSs r r.

a, h cp hs gs wh rsp s ps psrr ps whh r

. th g s h g rqrs r r s h r p rs rs rg hr rs. as dr 31, 2009, h cp h s r s r ps psps $594.7 . S F 13 h ns cs F Ss r r hr r.

as dr 31, 2009, h cp h $59.4 s rs r prr r h cps s-sg wrkrs ps, pr . S F 20 h ns cs F Ss

as dr 31, 2009, h cp hv sg - sh rrgs, s i 303()(4Rg S-K.

CRITICAL ACCOuNTINg POLICIES

th cps g ps r r sr F 1 h ns cs F Ss. as ss prpr ss r wh gr p g prps rqrs g k ss r vs h h s rpr h ss pg s. Fr vs hr swh s r. thrr, h r ss rqrs h rs jg. a rss v w r rsh rs r h cs F Ss. th wg ss sr h cps r

Sales Recognition


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nw Rr i.2009 a Rpr

Inventory Reservesth cp rs s vr v r s s sw-vg vr q h rvr h rz v s p ssps r rk s. Prvss r g shrk rsrvs, $57.0 , $79.0 $41.8 2009, 2008 2007, rspv, r s. i rk s r ss vr h hs prj g, vr wr-ws

Goodwill and Other Indefinite-Lived Intangible Assets

th cp prrs s pr sg gw rprg v, h cps gw s ssgs. Rprg s r v w h prg sg v. i wh h cps rg s sbsss u (Gbu) srr, h cp r s rprg s, whr ssr, g wh h Gbu srr

Rprg s h o Prs sg r rprg s h ts, Hrwr & cr Prs sgg wr p h rg. th gw hs ggrph g rprg s ws r rprGbu srr rv r v ss. th cp hs h hr r hgs h rpr g s r pr s Jr 1, 2006 rsrrg vs r hrws. aqr ssss, g gw rsr gr h cps sg rprg s.

ar h rg h rprg s h r gw, h cp h 13 rprg s wh gJr 1, 2009. Fv h cps 13 rprg s r ppr 70% h cps gw. ths ws: b & Prg esss; Rr cr Prs; isr Prs & Srvs; mrkrs, Hghghrs o thg.

th cp s s s pr gw s h rs h hr qrr s gr srg pg prss. th cp s ss r pr vs rss h s r k h rprg s w s rrg . Fr p, r rs, sh s sr sr r sh h h cps rprg s prj ss prg sg rv prvw prr r s ssss whhr gw s pr. th cp r h r ss pr2009, g r s, sg rs rprg s p ss pr, r

i h cps gw pr sg, h rrg rprg s grr h s r v, pr g prrg s pr sg p whhr r pr hrg s ssr h hrg h s rr. th cp ss p v pprhs s pr sg, h whh r s r v. Fr h cps rprg s h r s ssss hv hsr rk rr g

sh ws, h cp rs p rgs pprh ssss hr r v. th r ssp sg hs pprh r h rpr g s s prr r h rr h r h pp r rs, s, pr rz (ebitda). th s prr r h rr h r rsg prss. t r h ebitda p, h cp s r r hr prs ebitda qss hr rss h rkp r pr ssss. th cp vs h ebitda ps rv h cps rk pz ps q r pr. th q r pr s s h s s s rk vs pr h cps rk v, wh h s h v vs p g rgh cp. th cp srs prs p qrrs pr ssss r h rsss

th ebitda p srv h rkp r r rss rg r 9 11 r h pr sJ 1, 2009 pr s, h cp js h ebitda ps r h srv ps, gr ps r

h ggrg v rprg s rv h cps rk v rs rs p q srs svr rs sg h ebitda p pp h rprg , g h rprg s rkgrss prg rgs, prsps r grwh, g hr rs. ar jsg h ebitda ps r h rprgw pr ws r rprg s r whh hs pprh ws s. Frhrr, h cps q ppr $3.0 ws sg ss s k v s khrs q ppr $1.8 . F

J 1, 2009, h rpr g s ebitda p wr r 0.5 r h 6 12 p s r h rpr g ,h ebitda p pprh ws s v h rprg w hv pss sp h gw pr s


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nw Rr i.2009 a Rpr

s rs rgg r 11% 12%. th cp hs hr rprg s pss sp h gw h vs r sg h s sh w pprh.i h s r v rprg s ss h s rrg v, h cp srs h gw pr

h s r v h rg sss s h rpr g , g rgz g sss, sr v gw. th cp s rgz g sss, sh s r s sr rshps, ss s h vs h rprg s rgz rgz g sss. th s vs h rprsss g sss r r h rprg s r v r h p r v gw. a rgz h h rr gw s h p r v gw.

i h s rs s s h r v h isr Prs & Srvs, evr Wrg F Wrg rpr100 ss ps, h s r vs h rprg s w hv $63 , $63 , $30 , rs

s rs wr rs 100 ss ps, hr rprg s w s hv pss sp h gw prth cp hs rprg , b & Prg esss, whs s r v J 1, 2009 ss

h rprg s sss sg h js ebitda p r s sh w v, s pp. th b & Prg hs gw $416 s J 1, 2009. i h ebitda p s s h r v b & Prg essr 1.0, h s r v h rprg w hv ppr 1% ss h h sss h rpr v prrs w hv rqr r whhr b & Prg esss gw ws pr, h pr, h g h pr hrg.

th cp s p sp rsrrg prjs sss pr srgs rhr srgh & Prg esss. th cp s r whhr hs vs r g s p prv s h h cp s sss pg hs prjs srgs, s pss h cp w rr gw

ss wh b & Prg esss r prs. b & Prg esss hs vrs p r gs nrh ar s gr w qr r ssss. b & Prg esss hs rkrsrrg prjs r spp h ss srv vrh wrw hs k sps z h p prg rss, r vrs. ths rs r g k r h wrkg p vs rqr h shr-pr vr h - g-r.

th cps -v g sss $320 s J 1, 2009. th cp sssss h r v g sss sg s sh w s rs s rv h r s h ss wr hh s h rrk r r . a pr hrg r -v g sss s rr h rrg g ss s h s r v h sr . th cp p s pr s g sss s J 1, 2009 h sss wr pr.

th cp srs qv qv rs rg whhr pr sg h rrk rssr s hr h h pr sg , sh s whhr h cp hs ps r sgrrk r r s. bs sr hs rs, h cp r h pr rs hv hrr, pr sg s hr h J 1, 2009 s rqr.

S F 7 h ns cs F Ss r rhr r.th cp pr h rr vs h gh vrs h rpr v gw hr g

, r , srg ss rsps pv s, h p h h cps sr s ss, r gv hg s rshps wh sg srs r ss rk pz rv s rpr skhrs q. th cp pr vs h p hrcp s rprg s ssss whhr pr rs r prs.

Capitalized Software Costs

th cp pzs ss ss wh r-s swr rg h pp vp sg r h h prrp h cps g hs hrz g r rhr prj vp. cpz r: () r r ss rs srvs s vpg r g h swr; () pr pr-rwh r r ss wh wh v r h prj; () rs ss rr wh vpg h sw

n R i 2009 a R


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nw Rr i.2009 a Rpr

Other Long-Lived Assetsth cp s vs pr rs r s prpr, p qp hr g-v spr rs sg rs h rk pr g-v ss r ss grp, sg r r whh g-v ss r ss grp s g s r s phs , r rr-pr prg r wh hsr prg r sh w sss r rs h srs g sss ss wh h s gi pr rs r prs, h cp ss h r sh ws r h ss r grp sss. th s hws r h ss r grp sss s pr hr rrg . th sh ws r s zg vrr rv pss, wrkg p, prs r ss spss ss ss wh h cps sr s h s h s r sh ws, h cp ss h r sh ws sg s rvs k rsk rrs pr hrg s h r w h r v h rrg v h s

cp prrs s sg h ss grp h pr- v, s hs s h ws v r whh sh

Product Liability Reserves

th cp hs s-sr prgr r pr h s rsrvs r s-r sss r srsr sr. th cp ss hsr ss pr wh r v hs, rvw sgh pp rsk rsr prgrs rg rqr pr rsrvs. th cps r v s rr rpr wh rg h cps pr rsrv . th cp hs pr s dr 31, 2009. Wh h cp vs h hs q rsrv r hs s, h h s rr h cp, sh sss r h cps cs F S

Legal and Environmental Reserves

th cp s sj sss rsg r sv vvg r, s, , rg ws rgs, hr sps. th cp vs h p g vr sss rg h sp s r hsr pr ss sh ws r r vr rs. th s sss k wh vsgv r rs whr ssss hs h pr hs rr hs. n sr rvr s k rg h cps s ss r rsrv, r h crsrv r sg r prs v prpss, p wh rsp g-r prs cpRsps, cps l (ceRcla) rs whh r s prs v. th cps s ss ss wh hs rs s dr 31, 2009 rg w $10.7 $26.9 . as d

h rsr v $15.5 r sh vr rsps ss h ggrg, whh s hr r s h cs b Sh.

Income Taxes

i r wh rv hrv g, h cp s r rr s sg h ss pprh, rr s r rgz s h s prr rs w h s s, s sr rr rs. V ws r rr r h rr sss k h rz. n prvs s r h u.S. s h sr rgs -u.S. ssrsrgs r pr rvs.

th cps prvss r s s ssps h r sj h iRS ahgh h cp vs h h pss k prvs rrs r rs, hs ssh h vrs g hrs hg h pss k, whh rs s r s rsrvws s rr sss r rvr srg hsr pr, prj r , h p sg prr rs pg srgs.

Fr r pss, h cp pps h prvss rv hrv g, whh rqrs pphrsh h rg rg pss. th cps gg sssss h r k h


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nw Rr i 2009 a Rpr


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nw Rr i.2009 a Rpr

th prj gs h cps ps psrr ps s dr 31, 2009 wr $1.4rspv. th cp s wgh-vrg s rs 5.7% 5.8% r h prj gpsrr ps, rspv, s dr 31, 2009. th wg srs h ssv hg rprj g r h ps psrr ps, hg hr ssps s (in millions):

25 ss p rs s r25 ss p rs s r

th cp hs $418.4 (r-) rgz ps hr psrr sss ($625.1 pr- skhrs q dr 31, 2009. th rgz gs sss prr rs r hgs ps hgs s rs s w s rrs p sss g r r ss h p. th rgz g (ss) ps vr h vrg h p. th rz ps $7.3 (pr-) 2009, rsss s p rs rss ps hr psrr p pss r h rs r. chg rrs p sss hgs h r r vrg h ps p h rgzps .

NEw ACCOuNTINg PRONOuNCEMENTSi J 2009, h F ag Srs br ( FaSb) ss hrv g hgg h w s hr rsrs srs. i rs ssr, hs g s h p qg shgs h s r s vr rs s. ths g s v r h cp Jr 1, 2010. th g s p hv r p h cps ss.

INTERNATIONAL OPERATIONSFr h rs dr 31, 2009, 2008 2007, h cps -u.S. ssss r ppr 30%rspv (s F 19 h ns cs F Ss). chgs h u.S. -u.S. ss dr 31, (in millions, except percentages):

2009 s. 202009 2008 2007 % Chan

u.S. $ 3,881.4 $ 4,447.2 $ 4,624.3 (1n-u.S 1,696.2 2,023.4 1,783.0 (1

$ 5,577.6 $ 6,470.6 $ 6,407.3 (1

th cps o Prs sg hs prs Vz, h prr rr s h Vz pr

h Vz bvr. thrgh dr 1, 2009, h cp s h hg r Vz rs s Vzss u.S. drs, sg h hg r, h Vz prs gr ss ppr $

ppr $25 2009. bs h hgs h cp hs rprg Vz rgs rss, h cp p h pr r rs s Vz ss u.S. drs i dr 2009, h pr hg r Vz bvrs u.S. drs ws ppr hr s h r hg rs s rs Vz bvr ss dr 2009 () sss, g sh, rg h qrr dr 31, 2009 () h cps 2010 ss prg r p rspv, pr h r dr 31, 2009 h rs h Vz bvr h pr r.

e J r 1 2010 V s hs hrr s hgh r s hr r

nw Rr i 2009 a Rpr


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nw Rr i.2009 a Rpr

th wg s r srp hs hr vs : lv 1: osrv ps sh s q prs r sss r s v rks. lv 2: osrv ps hr h q prs h r r r r srv r h ss r , g q

sss r s v rks; q prs r sr r sss r s rks h r v; whs ps r srv r whs sg v rvrs r srv.

lv 3: usrv ps h r h rprg s w ssps.

th cps sss s js r v s r s rk vss, sh vss, hr sss; rvv srs, prr hr sss, hr r s, hs sss s r hrr sj h sr ssr rqrs h hr

cp rs h r v s rk vss s h vs h rg sss (lv 2) s s q rk prs (lv 1). th cp gr ss rvvs r hgg prpss, h cps rvvs rr rwr rs rs r swps. th cp rs h r v s rvv srs s lv 2 hrrh. lv 2 r v rs r rv r r r r srv (rk s) r.

FORwARD-LOOkINg STATEMENTSFrwr-kg ss hs Rpr r r p h s hrr prvss h Prv Srs lg Rrrwr-kg ss r , r , r r ssps h s ss (g prrgs pr shr, prg r grss rg prvs r s, Prj ar, p hr prs, ww, vs, p srr, pz rs, v g, rs rs, rsrrg, pr h

sss vsrs, p hgs g srs, pg g prgs s (g vr prr, ss s svgs (g rw r sr pr , prv srg), srgs, gs jvs r r prs, prr grwh r h ssps rg h rwr-kg sgr r p wrs sh s , p, v, s, prj, rg, p, p, w, sr ss. th cp s h rwr-kg ss r grs s hr r hr s rss. a rss r r r hs prss r p h rwr-kg ss. ipr rs h rss r r r hs sggs h rwr-kg ss , r , h cps p r, r sr srs h gh h g sww; rr s; p w srrs sr prs; jr rrs srg rgg pwr; hgs h prs rw rs sr pr rw rs sr prs r r spprs; h cps vp vv w pr srgh s -sr rs; h cps ps s s v prs wh gg hr ps; h cps g sss rsks ss wh vsg r sg ssss pcps p sss r hg ss hrgh s rgz; h cps prsr prs; h cps r shr-r rs p , prr gv h rs rks; hgs h cps r rgs; sg rss h g gs r h cps ps pss vs r hrws; h ps s grr h h cps prvss r sh rs; sg rss wh hgs g, p, , vr hr ws rgs; h rsks hr h cps rg prs rh hs Rpr gr i 1a h cps a Rpr Fr 10-K r h r dr 31, 2009. i ssr h h cp hs rr ssss h rs g h cp r h h p v

h cp rvs wh rsp hs rs s p r rr.

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nw Rr i.2009 a Rpr

QuantitatiVe and QualitatiVe diScloSuReS about maRKet RiSKMARkET RISkth cps rk rsk s p hgs rs rs, rg rr hg rs r pr sps, r hgg hqs rvv srs z r h p vrs hgs rs h r ss rvv srs r rg prpss.

Interest Ratesirs r rsk s prs wh h - g-r . th cp gs s rs r psr hrgh s s srvv r rg. irs r swp grs sg s r v hgs r s g h c

h r v -r rsg r s hrk rs rs. arg, hrk rs r v h cps -r , whh r s rrspg hgs h r v h swp grs. irs js rs r psrs wh pprpr s rk s, r qg hgs, h rs r rs ps. eg r whh r hs swpp r g r, -r rprs pprcps $2.51 s dr 31, 2009.

Forein Crrency Exchane Rates

th cp s ps rg rr rsk h rr rs sss s pr h cps ss, psss g ss vrs rg rrs. t h h sss rss r h rg h rs, h cp s ps rs rg rr hg r rsk. th cps rg p phszs hgg p rp hr-pr r rs psrs -r r r sshg rwr rs s hgs r r rss s h r p gs sss rp rr sh ws rv r p p s h p rp hr pGs sss r h s qg hgs r rp rss r rr rg rss. th cp s ss r hgg hqs sh s sg r g k rg rr ws h pprpr rr.

th cp s rs gs sss rr wh shrhrs q h rs h srr s ssrs u.S. drs. th cp zs p srrs rg ssrs wh rwrpsr rg rr rsk. th cp hg prs s vss rg ssrs, g r

rs rss-rr hgs. Gs sss r qg rwr hg rs rss-rr hgs hg rp s vss rg ssrs, r rgz hr prhsv (

Commodity Prices

th cp prhss r rw rs, g rs, rrg, s, sss s, hr s, whv s pr rs. th cps rs prhss r prp prs ph pprpqs. Wh r vs rw r ss r r, vr prgrs, g pr rw r prs r r vr sr pr jss hp h cp rss hs rsk. Whr pr, h cp s rsk g prss.

Financial Instrmentsi gg h p rs r hgs rg rr s, h cp ss rs r swps, rg rss-rr swps. drvvs wr rr r v h cps cs b Sh dr 31, 2

Prp pss hr $ 1.3ohr sss 20.9ohr r s (1 5)

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nw Rr i.2009 a Rpr

vale at Ris

th s shw w rprs h s p ss h h cp r r vrs hgs rg hg rs sg h v--rsk s . th v--rsk ss hsr rg hg rs h v rr hs rs r prs. i ss ss r rk v sg ss g h vr/vr pprh s ss rk rsk psrs (sp g q-h vssss shw h w rprs h cps s h ss h rs . th s prsshw s sr h p p vrs hgs rs rg rr hg rs. th wg v--rsk s r h r dr 31, (in millions, except percentages):

2009 December 31, 2008 dr 3

mrk Rsk

(1)

Aerae 2009 avrg 2008 irs rs $ 12.2 $ 9.6 $ 12.2 $ 9.6 Frg hg $ 12.8 $ 12.3 $ 8.9 $ 15.3

(1) th cp gr s r r rvv rs r s; hrr, pr rsk s shw s h s r r.

th r-vr-r rs h r v--rsk rg hg s prr r v rg 2009 s w s s vr rr psrs. th 95% rv sgs h cps gr h h s sss shw v. th s shw hr srgr h pss h rs rs rg rr v h cps vr. th v--rsk sss h vs hs rs w vrs. a prgs sss s h hr vr , s hgh k h h cp pr sss sh s hs v . a, s h cp prs g, hrr, g r sk rrs, s rg rr pths s sh sr prjs r sss, s rss r sg pg p rks.

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p

manaGementS ReSPonSibility FoR Financial StatementS and annuaon inteRnal contRol oVeR Financial RePoRtinG

th g nw Rr i. s rsps r h r r ss h s hs rpr.

th cps g s s rsps r sshg g q r r vr rpi. prs r ss r g rs sg prv rs ssr rgrg h r prpr psh ss r wh gr p g prps. th r v r vss g s s, r rvs s ssr. a r r sss,

hv hr s. thrr, v hs sss r v prv rs ssr wh rs prpr prs.

th cps g ssss h vss h cps r r vr rprg s ds ssss, h cps g s h rr s rh h c Spsrg orgzs h tr Internal ControlIntegrated Framework.

bs h rss s v, h cps g h, s dr 31, 2009, h cps rprg s v s hs rr.

th cps p rgsr p g r, ers & yg llP, hs h ss prpnw Rr i. h vss nw Rr i.s r r vr rprg. thr rprs h vss nw Rr i.s r r vr rprg r prs hr.

neWell RubbeRmaid inc.

a, Grgmrh 1, 2010

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RePoRt oF indePendent ReGiSteRed Public accountinG FiRm

The Board of Directors and Shareholders of Neell Rbbermaid Inc.

W hv h pg s shs nw Rr i. ssrs s dr 31, 2009 s ss prs, skhrs q prhsv (ss), sh ws r h h hr dr 31, 2009. ths ss r h rsps h cps g. or rsps s pr ss s r s.

W r s r wh h srs h P cp ag ovrsgh br (u Ss). ths sw p prr h rs ssr whhr h ss r r r sss g, s ss, v spprg h s ssrs h ss. a s g prps s sg ss g, s w s vg h vr s prsh r s prv rs ss r r p.

i r p, h ss rrr v prs r, r rsps, h s ps nw ssrs dr 31, 2009 2008, h s rss hr prs hr sh ws r h h hr

dr 31, 2009, r wh u.S. gr p g prps.

W s hv , r wh h srs h P cp ag ovrsgh br (u Ss), nw Rr vr rprg s dr 31, 2009, s rr ssh Internal ControlIntegrated FrameworkssSpsrg orgzs h trw css r rpr mrh 1, 2010 prss q p hr.

a, Grgmrh 1, 2010

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RePoRt oF indePendent ReGiSteRed Public accountinG FiRmon inteRnal contRol oVeR Financial RePoRtinG

The Board of Directors and Shareholders o f Neell Rbbermaid Inc.

W hv nw Rr i. ssrs r r vr rprg s dr 31, 2009, s Internal ControlIntegrated Frameworkss h c Spsrg orgzs h trw css (h coSo r ssrs g s rsps r g v r r vr rprg, r s ssssr r vr rprg h pg mgs Rsps r F Ss a

cr vr F Rprg. or rsps s prss p h ps r r vr rpr

W r r wh h srs h P cp ag ovrsgh br (u Ss). thw p prr h rs ssr whhr v r r vr rprg wsrsps. or g rsg r r vr rprg, ssssg h rsk h r vg h sg prg vss r r s h ssss rsk, prrg sh hr sr ssr h rss. W v h r prvs rs ss r r p.

a ps r r vr rprg s prss sg prv rs ssr rgrg h r

h prpr ss r r prpss r wh gr p g prps. a rprg s hs ps prrs h (1) pr h rrs h, rs , h rss spss h sss h p; (2) prv rs ssr h rss r rr s ss r wh gr p g prps, h rps prs h r wh hrzs g rrs h p; (3) prv rs ssr rgrg prvhrz qs, s, r sps h ps sss h hv r h ss

bs s hr s, r r vr rprg prv r sss. as, prjvss r prs r sj h rsk h rs q s hgs s, r hwh h ps r prrs rr.

i r p, nw Rr i. ssrs , r rsps, v r r vr rprg s h coSo rr.

W s hv , r wh h srs h P cp ag ovrsgh br (u Ss), h nw Rr i. ssrs s dr 31, 2009 2008, h r s ss pr prhsv (ss), sh ws r h h hr rs h pr dr 31, 2009 nw R r rpr mrh 1, 2010 prss q p hr.

a, Grg

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conSolidated StatementS oF oPeRationS(Amounts in millions, except per share data)

yr e dr 31, 2009 2008

n ss $ 5,577.6 $ 6,470.6

cs prs s 3,528.1 4,347.4

Grss rg 2,049.5 2,123.2

Sg, gr srv pss 1,374.6 1,502.7

ipr hrgs 299.4 Rsrrg ss 100.0 120.3

oprg 574.9 200.8

nprg pss:

irs ps, rs $6.3, $8.9 $13.9 2009, 2008

2007, rspv 140.0 137.9

ohr ps, 6.7 59.1

n prg pss 146.7 197.0

i r s 428.2 3.8

i s 142.7 53.6

i (ss) r g prs 285.5 (49.8)

lss r s prs, (0.5)

n (ss) 285.5 (50.3)

n rg rss 2.0

n (ss) rg rss $ 285.5 $ (52.3)

Wgh-vrg shrs sg:

bs 280.8 279.9

d 294.4 279.9 erg pr shr:

bs:

i (ss) r g prs $ 1.02 $ (0.18)

lss r s prs

n (ss) rg rss $ 1.02 $ (0.18)

d:

i (ss) r g prs $ 0.97 $ (0.18)

lss r s prs

n (ss) rg rss $ 0.97 $ (0.18) dvs pr shr $ 0.26 $ 0.84

S ns cs F Ss.

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conSolidated balance SHeetS(Amounts in millions, except par values)

dr 31, 20

Assets

crr asss:

csh sh qvs $ 27

as rv, ws $42.2 r 2009 $40.6 r 2008 89

ivrs, 68

drr s 18

Prp pss hr 13

t crr asss 2,18

Prpr, p qp, 57

Gw 2,75

ohr g sss, 64

ohr sss 26

t asss $ 6,42

Liabilities and Stocholders Eqitycrr ls:

as p $ 43

ar ps 17

ohr r s 65

Shr-r

crr pr g-r 49

t crr ls 1,75

lg-r 2,01

drr sohr rr s 86

Skhrs eq:

Prrr sk, hrz shrs, 10.0 $1.00 pr v

n ss sg

c sk, hrz shrs, 800.0 $1.00 pr v 29

osg shrs, r rsr:

2009 294.0

2008 293.1

trsr sk, s: (42

Shrs h:

2009 16.2

2008 16.0

a p- p 66

R 1 82

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conSolidated StatementS oF caSH FloWS(Amounts in millions)

yr e dr 31, 2009 2008

Operatin Actiities:

n (ss) $ 285.5 $ (50.3)

ajss r (ss) sh prv prg vs:

dpr rz 175.1 183.3

n-sh rsrrg ss 32.4 46.2

drr s 14.9 8.7

lss s sss 0.5 0.5

ipr hrgs 299.4

lss sps s prs 0.5

Sk-s ps ps 35.1 35.6

ohr, 20.6 24.7

chgs prg sss s, g h s qss:

as rv 98.0 168.3

ivrs 243.1 30.9

as p (103.6) (105.5)

ar s hr (198.8) (185.2)

ds prs (2.2)

n csh Prv oprg avs $ 602.8 $ 454.9

Inestin Actiities:

aqss, sh qr $ (13.7) $ (655.7)

cp prs (153.3) (157.8)

dspss -rr sss ss ssss 17.6 9.4

n csh us ivsg avs $ (149.4) $ (804.1) Financin Actiities:

Prs r ss , ss ss $ 827.3 $ 1,318.0

Prs r ss wrrs 32.7

Prhs ps (69.0)

Ps s p (1,113.0) (772.5)

csh vs (71.4) (234.5)

Prhs rg rss s ssrs (29.2)

ohr, (4.4) (5.0)

n csh (us ) Prv Fg avs $ (427.0) $ 306.0

crr r sh sh qvs (23.5) (10.6)

irs (drs) csh csh eqvs 2.9 (53.8)

csh csh eqvs bgg yr 275.4 329.2

csh csh eqvs e yr $ 278.3 $ 275.4

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conSolidated StatementS oF StocKHoldeRS eQuity and comPReHenSiV(Amounts in millions)

a Skhra ohr eq

c trsr P-i R cprhsv arSk Sk cp ergs lss Pr

b dr 31, 2006 $291.0 $(411.6) $505.0 $1,662.2 $(184.6) $1,862.0n 467.1 467.1Frg rr rs 28.2 28.2

urgz ps hr psrrs, $17.8 ps 26.3 26.3

G rvv srs, g $23.3 s 6.9 6.9

t prhsv $ 528.5

csh vs sk (234.7) (234.7csh vs r rg rss ers sk ps 0.9 21.6 22.5Sk-s ps hr 0.7 (3.5) 43.7 (0.1) 40.8

b dr 31, 2007 $292.6 $(415.1) $570.3 $1,894.5 $(123.2) $2,219.1n (ss) (52.3) (52.3Frg rr rs (312.0) (312.0urgz ps hr psrr ss,

$87.0 s (107.4) (107.4G rvv srs, g $22.1

s 39.5 39.5t prhsv ss $ (432.2)csh vs sk (234.5) (234.5csh vs r rg rss

ers sk ps 0.1 2.3 2.4Ps js, $0.2 s (1.1) 0.7 (0.4Sk-s ps hr 0.4 (2.9) 34.1 31.6

b dr 31, 2008 $293.1 $(418.0) $606.7 $1,606.6 $(502.4) $1,586.0

n 285.5 285.5 Frg rr rs, g $10.2

s 75.9 75.9urgz ps hr psrr ss,

$17.4 s (109.3) (109.3

lss rvv srs, g $46.3 ps (49.4) (49.4

t prhsv ss $ 202.7csh vs sk (71.4) (71.4csh vs r rg rss Sk-s ps hr 0.9 (2.6) 34.7 33.0P h (43 0) (43 0

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noteS to conSolidated Financial StatementSFOOTNOTE 1

deScRiPtion oF buSineSS and SiGniFicant accountinG PolicieSDescription of Bsiness

nw Rr (h cp) s g rkr sr r prs h h h vs pp whr p. th cps prs r rk r srg pr rs, g Rr, Gr, apr, lvr, cShrp, Ppr m, d, Prkr, Wr, irw, l th cps. th cps -pr rg -r sr r prs hr sss sgs: H & F; o Prs; ts, Hrwr & c

Principles of Consolidationth cs F Ss h s h cp, s jr w ssrs vr rs s h prr r, r rp rss.

use of Estimatesth prpr hs ss rqrs h s r ss g rg h cps ss pss r ssrs. a rss r r hs ss.

Reclassifications

cr 2008 2007 s hv rss r h 2009 prs.

Concentration of Credit Ris

th cp ss prs srs vrs srs ggrph rgs , hrr, hs sg rth cp s vs h rwrhss s srs gr s rqr r.

th cp vs h s rv s rs. Wh wr sp ss gs, sh s h s krp gs r rr h srs prg rss r ps sp rsrv r r h r rv h h cp rs vs s . th cpr r hr srs s vr rs, g h gh h rvs r ps hsr

as r s rvw r p wr- s--s ss. as r wr , p rvr sp srs hg, h cps ss h rvr rvs rhr js.th cps rwr hg rs, rss-rr rs r swps, p rs sj h cp

hg r v, s gs sss hs srs gr s gs sss h sss, s, g hg. th cp s ps r-r sss h v -prr rprs r rvv th cp s r r hr sr sppr rvv srs sj r rsk, r h rprs.

th r psr h rss r , rs r, rg hg hr rvvs s h r v rv s h rprg . th r psr h cps rs r rg rr rvvs dr 31, 20 $1.2 , rspv. th r psr ss wh h vr hg rss s h v h prhs

$306.7 s dr 31, 2009. th r psr h cps rvvs dr 31, 2009 ws

Sales Reconition

Ss rhs rgh srs r rgz wh psss ss rsks wrshp hg, whhr p shp r p vr s p r rs. Ss r prvss r sh ss, rrs, sr sr r ss), prv vrsg hr ss r ss.


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nw Rr i.2009 a Rpr


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Research and Deelopment Costs

Rsrh vp ss rg h r rr prs r hrg sg, gr srv pths ss $118.4 , $119.5 $111.2 2009, 2008 2007, rspv.

Deriatie Financial Instrmentsdrvv srs r gr s g r , rs r rg rr rsks. ths s rs r swps, rss-rr rs r swps, rwr hg rs ps. th cps rwr ps rss-rr rs r swps sj h cp hg r rsk s gs sss hs s gs sss h sss, s, hr rss g hg. Hwvr, hs srs, wh s, psh ws r prs h h rg rs g hg s ss s s,

o h whh h cp rs rvv, h rvv s sg s hg h psr. thvss s hgg rshps h hg p gg ss. n r vss ws rr 2009, 2008 r 2007.

Interest Rate Ris Manaement

Gs sss rs r swps sg s sh w hgs, h h h hg rshp hs v,prhsv (ss) rgz rs ps vr h pr whh h cp rgzs rs ps sr. a vss hs srs s rgz rs ps h pr h h v

irs r swps sg s r v hgs rs r swps g-r , rss-rr rs r shg rs. th cp rrs h r v rs r swps g-r s ss r wh rrsp

h rrg v h . a vss hs srs s rgz rs ps h pr hrs. S rg rr g w r sss rss-rr rs r swps rwr hg rsGs r sss rsg r h r r rs r swps r rr s rs r rs h rrg

rz s js h h r sr vr h rg pr rg vr h swr p rg h r rs r swps s hr s prg v h cs Ss

Forein Crrency Manaementth cp zs rwr hg rs ps g rg hg rsk r h kw p hr-pr r rs psrs ppr r r r ss. Fr srs sg s sh w hpr h hgs r v hs srs s rpr hr prhsv (ss) rss rgs

prs whh h hg rss rgs. a v pr s rgz rgs. Fr srs hgs, h hgs r v r rpr rgs, gr s g h hg v h rg sr g h

th cp hs hsr z rss-rr rs r swps hg g-r rp g rssr qg rwr hg rs, whh hg r p rss, r rgz hr prhsvh rg rs rs.

th r vs rg rr hgg srs r rr h ps Prp pss hr, ohr sss, ohr ohr rr s h cs b Shs pg h r h cps rss-rr rs rrs dr 31, 2009 2008. th rgs p sh w hgs rg rs prhss vr s g prs s h h rg rs g hg. Fr hg rs rss, hg g s srs s gr pr rrg, whh s prvs rr hgg gs r sss w rr rgs

Disclosres Abot Fair vale of Financial Instrmentsth cps srs sh sh qvs, s rv, s p, rvv srs, srs, s p shr g-r . th rrg vs r rr sss s, g sh s rv s p, ppr r v h shr r sh srs. th r vs h csrs r rr h cs b Shs r ss F 11. th r vs h cps vr

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Forein Crrency Translation

asss s rg ssrs r rs u.S. rs h rs hg r-. th rr r hr prhsv (ss). i pss r rs h vrg hrg h r. Gs sss r rg rr rss hs ssrs r (ss). ir hgh r s rsr r sss hsr rs, wh r sss r rsr rrsr js (ss) s hr ps, .

i dr 2009, h cp s h s h hg r rs sss, s (ss) s g sg h pr hg r s h hgs h cp hs rprg Vz rhg r hr s rss. usg pr h r r rs, h cps Vz p ppr $65.0 prg ppr $25.0 2009. ev Jr 2010, Vz r .

th cp sgs r rg rr , g-r rp g rss s rg prs rrs h g r ss h rs rsg r hgs hg rs s rs jrp g rrg s v s hg.

Income Taxes

th cp s r rr s sg h ss pprh. ur hs pprh, rr s s prr rs w h s ss sss s, s sr rrws r rr r h rr sss h w r k h rz. n prvs s h sr rgs -u.S. ssrs h r sr pr vs.

th cps prvss r s s ssps h r sj h irhr hrs. ahgh h cp vs h h pss k prvs rrs r rs, hsrsrvs rg h vrs g hrs hg h pss k, whh rs th cp rgr rvws s rr sss r rvr srg hsr pr, prj r h rvrss sg prr rs pg srgs.

th hrv g rqrs pp r k h hrsh h rg rg gg sssss h r k h s hr s r pss rqr sgr rs h cps v r, s w s p prg rss.

Stoc-Based Compensation

Sk-s ps ps s js r s rrs s rgz srgh- ss vr h rqwr, whh s gr hr v rs r sk ps hr rs r rsr sk, rsr sk s pth cp ss r rr rs s s hsr pr. S F 15 r r.

Accmlated Other Comprehensie Loss

a hr prhsv ss s rr wh skhrs q psss rg rr rs rvv srs rgz ps hr psrr ss. th wg sps h pprhsv ss s r h r dr 31, 2009 (in millions):

Frg urgz ar-t

crr Ps & ohr drvvtrs Psrr Hgg G (lss) css, n t G (lss

b dr 31, 2008 $(242.2) $ (309.1) $ 48.9 crr-r hg 75.9 (109.3) (49.4)

Balance at December 31 2009 $(166 3) $(418 4) $ (0 5)


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nw Rr i.2009 a Rpr


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ths qs ws r sg h prhs h g rg, h cp h

g g sss qr s ss s hr s r vs h prhs pr , h cp $48.1 h prhs pr g sss $93.5pr g sss. th cp rr h ss h prhs pr vr h ggrg r vs $3th cps rss prs r h cps cs F Ss s h qsprs r hsr prs w r r hrr r prs.

Aprica

o apr 1, 2008, h cp qr ss h sss apr chr is apr Kss, i. (aprss hr hrs prs, hqrr osk, Jp. th cp qr aprs sss r $145.7 , wss h rp aprs sg gs sg. apr s Jps r pr srrs, jv prs. th qs prvs h ppr r h cps b & Prg esss sss r g pg h sp aprs ss s as. th sg h prhs aprs prs ch rh sss qr s ss r h s qr gw rr h ah p h qs aprs ch prs sg p h vr apr prhs pr

ths qs ws r sg h prhs h g rg, h cp h g g sss qr s ss s hr s r vs h prhs pr , h cp $(34.7) h prhs pr g s $pr g sss. th cp rr h ss h prhs pr vr h ggrg r vs $1aprs rss prs r h cps cs F Ss s h qs . Pr

r hsr prs w r r hrr r prs.

Endicia

o J 1, 2007, h cp qr h sg q rss PSi Sss, i. (e), prvr e irps r qs ss g ps p $25.0 s r rvs. i 2009, h cp p $10ps s es rvs, $15.0 p ssq prs s es r re, g prvr psg, rss h cps vrg s hr hg rs vpg gr ss r s -sz ssss. ths qs ws r sg h prhs h h cps prhs pr , h cp hs rr gw $59.2 h cs b Sh drss prs r hsr prs w r r hrr r prs.

e s pr ws gs gg p rg whh ws nvr 22, 2006 h u.S. dsr cr. i hs s, Sps. sks sp gs, rs s jv r rr prv e r h r g rg Sps.s ps. a vr hs g r vrs h e

FOOTNOTE 3

diScontinued oPeRationSth wg srzs h rss ssss rpr s s prs r h rs dr 31,

2009 20n ss $ $ lss r prs s prs $ $ lss sps s prs, f $ ,

$0.5 $3.0 2009, 2008 2007, rspv (

lss r s prs, $ $ (

nw Rr i.2009 a Rpr


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FOOTNOTE 4

ReStRuctuRinG coStSi h hr qrr 2005, h cp g v rrr s Prj ar srghg cps pr. Prj ar ws sg r rg vrh, r g h cps sr prsss hv gs , rrgz h cps vr sss srr g wh h cps r h g sss , hv s s. i J 2008, h cp p Prj ar s h, jvs, prvs r vsg, wszg r g r pr grs r r s r pr g s w-rg, -k, s rs-sv pr grs r h cps psr rks, prr rs.

i hrgh dr 31, 2009, h cp hs rr $420.9 ss r Prj ar, whh $ hr ss, $187.4 r p svr, r s p r ss, r s hr rsrrg ss.

th w srzs h rsrrg ss rgz r Prj ar rsrrg vs r g p dr 31, (in millions):

2009 2008

F hr ss $ 32.4 $ 46.1 ep svr, r s r ss 48.8 57.5 e r s hr 18.8 13.6

$100.0 $117.2(1)

(1) drg 2008, h cp rr $3.1 rsrrg hrgs rg s 2001 Rsrrg P, whh s h v s r dr 31, 2008.

Rsrrg prvss wr r s ss prpr h h rsrrg s wr pprv gp r hgs s s rgz s rr. css rr sh ps h pr ssv s. iprs rsrrg hrgs $32.4 , $46.1 $27.7 r h rs 2008 2007, rspv. th pr sss v gs, gs r whh p ss v , hr qp s r hrws sps prr h s rg s s . th pr

r h s rg vs s w s h rs s srg prrs.a sr h cps r rsrrg rsrvs r g prs s r h rs dr 31

rspv, s s ws (in millions):

dr 31,2008 css

b Prvs irr

F ss, g prs $ $ 32.4 $ (32.4)ep svr r s 30.7 48.8 (56.2)

e r s hr 20.3 18.8 (27.3)$51.0 $100.0 $(115.9)

dr 31,

2007 css b Prvs irr

nw Rr i.2009 a Rpr


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th w shws rsrrg ss rgz r Prj ar rsrrg vs r h rs d

rpr sss sg (in millions):

Sg 2009 20

H & F $ 24.0 $ 4o Prs 34.8 3ts, Hrwr & cr Prs 16.6 2crpr 24.6 1

$100.0 $11

th wg ps h hgs r rsrrg rsrvs r Prj ar r h rs dr 31,ggrg rpr sss sg (in millions):

dr 31,2008 css

Sg b Prvs irr

H & F $ 6.1 $ 24.0 $ (22.1)o Prs 17.5 34.8 (36.6)ts, Hrwr & cr Prs 16.5 16.6 (29.2)

crpr 10.9 24.6 (28.0)$51.0 $100.0 $(115.9)

dr 31,

2007 css Sg b Prvs irr

H & F $ 0.8 $ 43.5 $ (38.2)o Prs 23.1 35.6 (41.2)ts, Hrwr & cr Prs 13.9 20.4 (17.8)

crpr 0.9 17.7 (7.7)$38.7 $117.2 $(104.9)

th w shws rsrrg ss r Prj ar s p hrgh dr 31, 2009, ggrg

sg (in millions):

Sg

H & F o Prs

ts, Hrwr & cr Prs crpr

csh p r rsrrg vs ws $ 84.0 , $60.9 $53.1 r 2009, 2008 2007, rsp

nw Rr i.2009 a Rpr


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FOOTNOTE 5

inVentoRieS, netth ps vrs wr s ws s dr 31, (in millions):

2009

mrs spps $118.5Wrk prss 141.6Fsh prs 428.1

$688.2

ivr ss r rs, r r rg vrh, r wh sh gs r sr, h s s

h hr pr. cs r s vrs (ppr 51.7% 58.4% grss vr ss dr 31, 2009 ws r h liFo h; r h , s ws r sg h FiFo h. as dr 31, 2009 2008$24.2 $46.5 , rspv. th rgz h cp r h q liFo-s vrs 20 h r s rgz h cp r h -p r q liFo-s vrs 2008 2007 w

FOOTNOTE 6

PRoPeRty, Plant & eQuiPment, netPrpr, p qp, ss h wg s dr 31, (in millions):

2009

l $ 39.4bgs prvs 414.7mhr qp 1,723.5

2,177.6a pr (1,599.5)

$ 578.1

dpr ps ws $122.1 , $131.1 $143.2 2009, 2008 2007, rspv.


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arz ps r g sss, g pz swr, ws $53.0 , $52.2 $33.8 2009, 2008

as dr 31, 2009, h ggrg s g rz s r h sg v rs r s ws (

2010 2011 2012 2013

$50.6 $42.7 $39.8 $33.9

a rz ps rpr r prs r r r hs ss s rs qsvs hr rv rs.

th vrs p h r vr h cp rg h rh qrr 2008 wh h psss s h cp v h rrg v gw s dr 31, 2008. as rs h v h

h cp rr -sh pr hrgs $299.4 prp r h gw pr hrgs rg h h gw pr hrgs, h r vs h rprg s wr r sg s n sr hrgs wr rr 2009 r 2007.

FOOTNOTE 8

otHeR accRued liabilitieSar s h wg s dr 31, (in millions):

2009

csr rs $237.5ars r rg, rkg rgh pss 99.9ar s-sr 82.5ar ps, r hr psrr s 49.8ar gs, prr g, vr wrr 44.9ar rsrrg (S F 4) 33.3ar rvv r s 1.5ar r prhs rg rs ssr (S F 1) ohr 106.6

ohr r s $656.0

csr rs r pr ws rs, g prv vrsg, gv srs hg

v prhs. th s-sr r s prr s s sh s wrkrs ps, gr pr s s s p hsr ss pr wh r v hs, rvw sg pp rsk rsr prgrs.

FOOTNOTE 9

debtth wg s sr sg s dr 31, (in millions):

2009

m-r s (rg rs rgg r 5 10 rs, vrg rs r 6.83%) $1,426.6


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Interest Rate Saps

as dr 31, 2009, h cp h r -r-g rs r swps sg s r v hgs. th r $1.0 h prp h -r s rs h cp v pg g r rs hsj h rs r swps. th -r s dr 31, 2009 2008 rk--rk jss$62.3 , rspv, rr h r v h hgs h -r , h rk--rk jss h h rpr v h -r s.

Conertible Notesi mrh 2009, h cp ss $345.0 vr sr s (h cvr ns). th cvr ns r pr r, whh s p s-, h cvr ns r mrh 15, 2014. th cvr ns r vr r 116.198 shrs h cps sk pr $1,000 prp cvr ns (rprsg

ppr $8.61 pr shr sk), sj js r rss. up vrs, hr w rggrg prp h cvr ns vr , sh, shrs sk r hr ( h crsp h vrs v v h cvr ns prp , . th vrs g s s h s s r h 40 sv rg s h () g , , h s rg r h h cvr nvrs h rv vrs rs prr nvr 15, 2013, r () g , , h 42 sh rg prg mrh 15, 2014, h rv vrs rs r r nvr 15, 2013.

th cvr ns w vr h wg rss: ( ) rg r qrr ( rg s h s rpr s pr h cps sk r s 20 rg s pr 30 sv rg s h prg r qrr s grr h r q 130% h vrs pr ( $11.19) rg ; () rg h v sss pr r 10 sv rg pr whh h rg pr pr $1,000 prcvr ns r h rg h pr ws ss h 98% h pr h s rpr s pr h cps pp vrs r h sh ; () p h rr sp rpr vs; (v) r, 2013 hrgh h s sh rg prg mrh 15, 2014, h r h cvr ns.

bs h s rpr s pr h cps sk $11.19 r s 20 h s 30 sv rhs dr 31, 2009, h cvrs ns r vr h h hrs h cvr ns hs g mrh 31, 2010. S vrs h cvr ns s s h r h cp, h cvr ns r pr g-r h cs b Sh dr 31, 2009. Hrs g vr h cvr ns wh ggrg prp h cvr ns vr, sh, shrs sk r hr ( h rsp h vrs v v h cvr ns prp . bs h sg pr h cps s

2009 $15.01 pr shr, ppr $256.7 ( h prp ) w h hrs h cvrs h hrs vr h cvr ns. th p sh r shrs h cps skhr, h cps p. th cp r vr hg rss r h cps s hS F 10 r r r.

Hrs h cvr ns rqr h cp prhs r pr h cvr ns pr q h cvr ns prhs, ps r p rs, sh, p h rr r h cp. n prs r hs rg wr s p h vr hg rss (s F 10) hrp r gr rpr prpss.

ag srs rqr h cp, s ssr h cvr ns, spr r h q cvr ns r h rs h cps vr rrwg r h ss wh rs

ssq prs. th cp $69.0 h $345.0 prp h cvr ns h qrprss s h w rz rs ps sg h v rs h hrgh mrh 2014cps v rs r h cvr ns s 10.8%, s h cp w rgz rs ps rg h wvdr 31, 2010 h cvr ns h pprs 10.8% $284.3 , h p h dr 31, 2009. th rs ps rgz r h cvr ns h wv hs g dr 31, 2011 w grr s h s s rz h v rs h s pp.

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Receiables-Related Borroins

ur 2001 rvs wh s, h cp r g h s s h cur hs , h cp rgr r rss wh h g s v rs ssu.S. r rvs h g . i 2001, h g ss $450.0 prrr srs h r wh h rs h rvs , h g s h sg prrr srs g r ggrg prp $448.0 (h n) hr sr, 2008 h r r Spr 2008 Spr 2009. th n ws rp Spr 2009, whh , h cp ws s rvs h sr h n.

i Spr 2009, h cp p w 364- rvs h prvs r rrwgs p $200.0 Spr 2010. ur hs , h cp r prg ssrs (v, h orgrs) s hr rssr s h rvs r rg. th g ssr s wh w h cp s h wr h pr

rrwr r h . th sss h g ssr r rsr s r r h p r hr g, h g ssrs sss r r v ss h s gs w h cprrs. th cp s h g ssrs sss s s s ss. th hgs, h h cp r rs vrg ss p rs, h cp ws rqrs s dr 31, 2009. as dr 31, 2009, $562.2 sg s rv wr w hs s r s rv, h cps cs b Sh dr 31, 2009.rrw r h s sj vrs s s h hrr h rvs w h g ss2009, s wr sg r h $188.8 ws v r rrwg.

Reolin Credit Facility and Commercial Papero nvr 14, 2005, h cp r s rvvg r (h Rvvr). th Rvvr prs nrr hs $690.0 v r rrwg r h Rvvr ( nvr 2010, h v s r $665.0 2008, hr wr rrwgs r h Rvvr. th Rvvr prs h cp rrw s vr rsrqrs, g hr hgs, h h cp r rs vrg ss p rs, th Rvvr s s h ss ssrs r. as dr 31, 2009, h cp ws ph gr gvrg h Rvvr.

i rrwgs r h Rvvr, h cp ss p $690.0 r ppr. th Rvvr prvq rqr ss r ppr; hwvr, ss h r ppr rks s p h cps sharg, r ppr ss p h v r rrwg r h Rvvr. th Rvvr s p

p $100.0 s rs r s g s hr s s v r rrwg r h Rvvr. tppr sg dr 31, 2009 2008. thr wr s rs r ss r h Rvvr r hr p

Jnior Conertible Sbordinated Debentres

i 1997, 100% w ssr (h Ssr) h cp ss 10.0 shrs 5.25% vr prrSrs). Hrs h Prrr Srs r v sh vs 5.25% h q prr $5$2.625 pr r. eh hs Prrr Srs s vr 0.9865 shr h cps sk. drg 200prhs ggrg 1.6 shrs s Prrr Srs r hrs vrg pr $45.27 pr shr ($71.3 2009, h cp grs h 8.4 shrs h Prrr Srs ss h Ssr hh , whh r 100% h q prr $421.2 .

th prs rv h Ssr r h ss h Prrr Srs wr vs h cps 5Sr drs (h drs). i , h Ssr rv ppr $15.5 h cps $15.5 h cp rrw r h Ssr prhs 100% h q rss h Ssss ggrg $515.5 drs, h Ssr s h s hr h drs. th drs Ssr, r dr 1, 2027, r rs r 5.25%, r p qrr r dr 2001. th cp r rs ps h drs r pr p 20 sv qrrs, r

nw Rr i.2009 a Rpr


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FOOTNOTE 10

conVeRtible note HedGe and WaRRant tRanSactionSi wh h ss h cvr ns, h cp r spr vr hg rss wh rsp h cps sk z h p h p p vrs h cvr nsprhs ps prv rss vr 40.1 shrs h cps sk rs pr $8. js r rss, r $69.0 . th ps gr w h cp rv shrs h cpr rprs q h r shrs sk p h hrs h cvr ns p vrs. tr h rr h r h r cvr ns r h rs h r cvr ns r vrs r hrws. as dr 31, 2009, h s r v h ps ws $306.7 .

th cp s s wrrs prg h prhsrs qr p 40.1 shrs h cps sk $11.59 pr shr, sj js r rss, prv rss r prs $32.7 . th wpr sv-v rg s gg J 13, 2014 r erp-s wrrs (rs p pr). Frs, h cp w vr h rprs r shrs h cps sk q h wsk pr s h rs pr, v h sk pr. th cp w rqr vr r h cpwh h s h wrrs ss h ggrg r shrs sj h wrrs, r 40.1 shrs hsk. as dr 31, 2009, h s r v h wrrs h hrs ws $238.9 .

th cp hs z h vr hg rss wrr rss r h pp hrv gcp r h h h rr r ss s q rss. as rs, h cp rr h prhs r p- p, , h prs r h wrrs s rs p- p

s rgz ssq hgs h r v h srs s ss.

FOOTNOTE 11

deRiVatiVe Financial inStRumentSth s srs, g rvvs, pss h cp rk rsk r hgs rs rs, rrs prs. th cp rs rs r swps r gs wh r s rgg rth cp ss rs r swp grs g s rs r psr hv sr prpr vrths rvvs r sg s r v hgs s h r h rsk g hg. th cp s ss rvv

rwr rs, g h rsk ss wh h v r sh ws rg rrs hgs r hgs rg rr hg rs. th cps rg hg rsk g p gr phszs hpsrs -r r r ss hgg rg rr rp g vs wh rvvs wh r th cp ss rvv srs hg vrs rg hg psrs, g h wg: () vr rg sh ws, sh s h hgs vr prhss r prs pr rr s hr rr () rwh rg rrprg sss s, sh s rwr rs hr srs h hg shrp g vs. a, h cp prhss r rw rs whh r sj pr v rs. Whr pr, h cp ss rvvs s pr s rsk g prss. th cp rprs s h cs b Shs grss ss s ss rvv pss wh h s rpr. ts pss wh, h r q , h ss h r prs s rss.

drvv srs r r r v. th g r hgs h r v rvv ps h sg h rvv sr. Fr rvv sr h s sg qs s r v hg, h g r s w s h sg ss r g h hg r h hg rsk r rgz rr rgs. Fr rvvr sg q s sh w hgs, h v pr h g r ss h rvv s rpr s phr prhsv (ss) (aoci), , s ssq rss rgs wh h hg rs v pr h g r ss s rgz rr rgs. Fr rvvs sg s qg hgs vs


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Net Inestment Hedes

th cp rs rss-rr rs r swps ss wh vss rp rrwgs sg s vssrs. ev hgs h r v h rr grs rsg r hgs h sp -u.S. rr hg aoci h cs b Shs s h hg h rrg v h vs g hg. a hgs hhgs h r h rs vss r rgz rs ps, h cs Ss opr

th wg srzs h pr- s srs sg rg h r dr 31, 2009 sgvss (in millions):

G (ss)rss r

drvvs sh w hgg rshps aoci

crss-rr rs r swps

th cp p ppr $17.6 s rss-rr rs r swps rg h r dr 31, 2009, hgs r s hr h cs S csh Fws r h r dr 31, 2009. as h cp ws pr rss-rr rs r swps.

th cp rr vss r rvv -rvv srs sg s hgs vr dr 31, 2009.

FOOTNOTE 12

commitmentSLease Commitmentsth cp ss rg, wrhs hr s, r s, rspr, prssg hr qppr vrs s hrgh h r 2020. R ps, whh s rgz srgh- ss vr h h s r$129.2 $109.7 2009, 2008 2007, rspv.

Fr r ps r prg ss wh r rg rs ss r r s ws s dr 3

2010 2011 2012 2013 2014 thrr

$96.5 $77.3 $60.4 $43.6 $35.8 $90.7

Prchase Obliationsth cp rs r gs prhs sh gs, rw rs, ps srvs prs g g gs, whh sg rs.

as dr 31, 2009, h cps r s prhs gs r s ws (in millions):

2010 2011 2012

$340.9 $45.3 $28.4

nw Rr i.2009 a Rpr


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FOOTNOTE 13

emPloyee beneFit and RetiRement PlanSth cp s ssrs hv rr ps, pr shrg rr 401(k) ps vrg ss s ps. P s r gr s rs srv /r ps. th cps g ph h s rqr h ep Rr i Sr a 1974, s , h ir Rv r rg ss ssr h p sss w q prv rr s.

i aoci dr 31, 2009 s $ 625.1 ($418.4 ) r rgz r srv r h hv rgz pr ps s. th cp ps rgz $13.0 ($ss 2010 ss wh r sss prr srv r.

ev Jr 1, 2008, h cp prspv p p hrv g pp h sr ps, whh rqrs h sr r p sss gs wh h h shs, whh r h cp s dr 31. th cp h hsr sr p sss s ps Spr 30 r s r- cs b Shs. th p h cs F Ss sr r h cps psrr ps wh Spr 30 p r-s rs r rgs Jr 1, 2008 $1.1 r- aoci $0.7 .

th cps -q ps p s rz r h r - u.S. wrk r, h cp ps p wh r . th r hs hr-r -vsrr $17.3 , $19.4 $19.9 ps r h r rrg r 2009, 200th ss wh h r rrg s dr 31, 2009 2008 s $17.3

rspv, s hr r s h cs b Shs.as dr 31, 2009 2008, h cp vrs -q rr ps ps wh vrss wh hs ps ws $ 69.8 $69.3 s dr 31, 2009 2008, rspv. ths rr s h cs b Shs. ths ps r pr wh ss s $46.2 dr 31, 2009 2008, rspv. ths sss r hr sss h cs b Shs.

th cp hs Spp ev Rr P (SeRP ), whh s q p prs p spp ps s r k ps p rr s p h ps rs srv p hrgh rs gr wh h nr hr trs cp, s rs, h ws sr ps ppr 300 wh ggrg h s $234.1 . a dr 31, 2009 2008, h sr rs h sh srrr v$90.7 , rspv. th SeRP s s pr hrgh sh vss, whh h v

$11.8 dr 31, 2009 2008, rspv. ths sss, s w s h sh srrr v h sr sss h cs b Shs. th prj g ws $98.7 $94.1 dr 31, 200th SeRP s r h ps w; hwvr, h cps vs h sr rs s q s p sss r h rv hrv g.

th cps hg rs h rr 401(k) p wr $14.0 , $15.9 $15.6 r 2009,

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Defined Benefit Pension Plans

th wg prvs r gs, p sss ss h cps rr ps, g h SeRP, s dr 31, (in millions, except percentages):

u.S. i

2009 2008 2009

chg g:b g gg pr $ 863.7 $ 868.6 $ 391.6Srv s 4.8 4.5 4.9irs s 52.1 52.2 24.5

ar (g) ss 49.3 (2.8) 71.6aqss crr rs 35.0bs p (1) (59.1) (70.6) (22.5)msr p jss (2) 11.8 crs, s ss hr (5.3)

b g pr $ 910.8 $ 863.7 $ 499.8

chg p sss:Fr v p sss gg pr $ 492.4 $ 763.7 $ 362.9a rr p sss (1) 60.9 (208.7) 11.2aqss crs 82.7 8.0 21.0crr rs 36.5bs p (1) (59.1) (70.6) (22.5)S hrgs hr 1.5

Fr v p sss pr $ 576.9 $ 492.4 $ 410.6

F ss pr $ (333.9) $ (371.3) $ (89.2)

as rgz h cs b Shs:Prp s, hr sss $ $ $ 3.5

ar rr s, hr r s (11.7) (7.0) (4.0)ar rr f s, hr rr s (322.2) (364.3) (88.7)

t $ (333.9) $ (371.3) $ (89.2)

as rgz aoci:Prr srv s $ (11.5) $ (12.9) $ n ss (522.0) (484.7) (81.2)

aoci, pr- $ (533.5) $ (497.6) $ (81.2)

a g $ 904.2 $ 854.1 $ 489.1

(1) Fr ps wh Spr 30 sr s prr Jr 1, 2008, h 2008 s v r h 15 h pr r or 1, 2007 dr 31, 200(2) ajs r srv rs ss r h hr hs dr 31, 2007 rg h p h sr prvss rv hrv

hsr sr Spr 30.

u.S. i

2009 2008 2009

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n ps s s h wg ps r h rs dr 31, (in millions, except percentages):

u.S. i

2009 2008 2007 (1) 2009

Srv s-s r rg h r $ 4.8 $ 4.5 $ 3.8 $ 4.9irs s prj g 52.1 52.2 51.2 24.5ep rr p sss (57.2) (57.7) (58.6) (22.2)arz :

Prr srv s 1.3 1.3 1.1 ar ss 8.3 7.1 7.6 0.1

cr, s r ss 1.3n ps s $ 9.3 $ 7.4 $ 5.1 $ 8.6

(1) Fr ps wh Spr 30 sr s prr Jr 1, 2008, h 2007 s rprs 12 hs ps ss r h pr or 1, 2006 s v r h hr hs d r 31, 2007 s h $1.1 rs r rgs r- aoci $0.7 r

u.S. i

2009 2008 2007 2009

Wgh-vrg ssps s r pr s:

ds r 6.25% 6.25% 6.00% 6.08%lg-r r rr p sss 8.50% 8.50% 8.50% 5.65%lg-r r ps rs 4.00% 4.00% 4.50% 3.83%

th cp s rqr k rs s prr u.S. ps p 2010, h cp ps ppr $32.7 s ps ps 2010, ss whh s r h cps rps ps.

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Plan Assets

Current Allocationth r v h jr gr ps p sss s dr 31, 2009 s s ws (in millions):

u.S. n-u.S.

Q Prs Q Prs av Sg av Sg

mrks r ohr Sg % t mrks r ohr Sg i osrv usrv asss s i osrv usrv asss ips ips t dr 31, asss ips ips t

dsrp (lv1) (lv 2) (lv 3) u.S. 2009 2008 (lv 1) (lv 2) (lv 3) n-u.S.

eq (1)u.S. rg p $ $146.1 $ $146.1 $ 7.2 $ 19.2 $ $ 26.4u.S. s p 18.3 18.3 ir 140.2 140.2 45.7 45.7

t q 304.6 304.6 53% 53% 7.2 64.9 72.1F (2)

u.S. trsr 28.1 28.1 1.2 1.2ohr gvr 49.8 49.8 4.6 15.1 19.7ass-k

srs 33.9 33.9 7.4 7.4crpr s 48.2 48.2 52.9 52.9Shr-r

vss 30.2 30.2

t 190.2 190.2 33 25 4.6 76.6 81.2isr rs(3) 17.9 17.9 3 4 105.6 105.6Vr p

prrshps (4) 4.3 32.9 37.2 6 8 14.6 12.3 2.0 28.9R s (5) 18.8 18.8 3 7 2.9 1.6 6.4 10.9

csh shqvs (6) 3.7 3.7 1 1 25.3 74.6 99.9ohr 4.5 4.5 1 2 10.4 1.6 12.0

t $ $520.7 $56.2 $576.9 100% 100% $54.6 $346.0 $10.0 $410.6

(1) eq srs r prr prs s /v rs s. ivss s / v rs s r v h p h r shrs r s h s h sr . th / v rs s r gr v g vs vhs.

(2) F vss r prr prs s /v rs s h vs rpr gvr s. ivss rs s r v h ss v pr shr r p h r shrs r s h s h sr . th vss sg s s.

(3) th r vs sr rs r s s h r sh ws rv r h rs s h prs sg s r h pps sr h ss ps p s.

(4) Vr p prrshps r v ss v, whh s gr sg h s r prrshp rprs.

(5) R s vss r gr vss prrshps, r s vs rss sr vhs h vs r s. th vs h vsh s r rprs h vs vhs. th grs h h vs vhs s h vs h r s sss rg h r pr pprss hr v hqs ss.

(6) csh qvs vss s v s. S v s r gr vs rs s rs-rg s.


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nw Rr i.2009 a Rpr


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th wgh-vrg s r r h cps hr psrr ps s vp sg sp rs

r pp rpr s r aa r hghr. th wg r h wgh-vrg ssps s rr h hr psrr ps r h rs dr 31,:

2009 20

Wgh-vrg ssps s r pr s:ds r 6.25% 6lg-r hh r s r r 5.00% 5

ass hh r s rs hv s h v h gs r psrr s. thh g ws 8.7% r rrs 2010, g 4.5% 2028 hrr.

th hh r s r r sg s h rpr psrr ss gs. a -prss r w hv h wg s (in millions):

1% i

e srv rs s ps $ e psrr gs $1

Estimated Ftre Benefit Paymentses r ps r h cps ps ps hr psrr ps

dr 31, 2009 (in millions):

2010 2011 2012 2013 20

Ps s (1) $84.1 $79.0 $82.4 $84.3 $10ohr psrr s $16.0 $15.4 $14.7 $14.3 $ 1

(1) cr ps ps w p sss.

th s hr psrr ps r mr Pr d sss ppr $2.3 ps k r sh ps ppr $16.0 r s hr psrr ps 2010.

FOOTNOTE 14

eaRninGS PeR SHaReo Jr 1, 2009, h cp rrspv p h hrv g whh prvs h vs shr-s r rghs vs r v qvs (whhr p r p) r prpg srs shp rgs pr shr. th rrspv p h hrv g p s r2008 2007, s ws:

2008 2007lss pr lss pr cg

shr r shr bs d bg rg rgs rgs rprs rss pr shr pr shr pr

ergs (ss) pr shr s rpr $(0 19) $(0 19) $ 1 74 $1 72 $

nw Rr i.2009 a Rpr


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th p h p h hrv g s h w r s

shr r h rs dr 31, (in millions, except per share data):2009 2008

nrr r s rgs (ss) pr shr:n (ss) rg rss $ 285.5 $ (52.3) lss r s prs 0.5 dvs qvs r shr-s wrs p r 0.2 0.6

i (ss) r g prs r s rgs (ss) pr shr 285.7 (51.2) lss r s prs (0.5)

n (ss) rg rss r s rgs (ss) pr shr $ 285.7 $ (51.7) nrr r rgs (ss) pr shr:

i (ss) r g prs r s rgs (ss) pr shr $ 285.7 $ (51.2) e Prrr Srs (1)

i (ss) r g prs r rgs (ss) pr shr 285.7 (51.2) lss r s prs (0.5)

n (ss) rg rss r rgs (ss) pr shr $ 285.7 $ (51.7)

dr r s rgs (ss) pr shr:Wgh-vrg shrs sg 277.7 277.0

Shr-s p wrs ssf s prpg srs 3.1 2.9 dr r s rgs (ss) pr shr 280.8 279.9

dv srs (2) 1.1 cvr ns (3) 9.0 Wrrs (4) 3.5 Prrr Srs (1)

dr r rgs (ss) pr shr 294.4 279.9

bs rgs (ss) pr shr:i (ss) r g prs $ 1.02 $ (0.18)

lss r s prs n (ss) rg rss $ 1.02 $ (0.18)

d rgs (ss) pr shr:i (ss) r g prs $ 0.97 $ (0.18) lss r s prs n (ss) rg rss $ 0.97 $ (0.18)

(1) th vr prrr srs r -v r 2009 2008, hrr hv r rgs pr shr. H h vr prrr sr rgs pr shr , $14.2 pss w hv k h ( ss) r h 20 09 2008. Wgh-vrg shrs s 8.3 shrs r h 2009 2008.

(2) dv srs h ps, -prpg rsr sk s prr shr wrs. th wgh-vrg shrs sg r 2009

ppr 13.2 , 17.2 9.5 sk ps, rspv, s sh ps wr -v.(3) th cvr ns ss mrh 2009 wr v r h r dr 31, 2009 s h vrg pr h cps sk rg qrr p

ns wr sg ws grr h $8.61, h vrs pr h cvr n s. th v h cvr ns r h r dr 31, 2009qrr v r 2009.

(4) th wrrs ss mrh 2009 wr v r h r dr 31, 2009 s h vrg pr h cps sk rg qrr prs s ws grr h $11.59, h rs pr h wrrs. th v h wrrs r h r d r 31, 2009 ws s h vrg qrr v

nw Rr i.2009 a Rpr

FOOTNOTE 15


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FOOTNOTE 15

StocK-baSed comPenSationth cp rs sk-s ps s ps h s sk ps, rsr sk wrs, -rsr sk s, s ws:

Stock Options

th cps sk ps ps p 1993 2003. th cp hs ss h q v sprs q h cps sk pr h gr wh r rs rs. Hsr, sk pcp gr vs wr ps r

nwl 2009 annual report

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