Newell Brands(NWL) - 2021 Q4 - Annual Report

COVID-19 Impact - Approximately 20 out of 135 manufacturing and distribution facilities were temporarily closed due to COVID-19, impacting supply chain operations[18] - The company faced high-single-digit percentage inflation impact on the cost of products sold in 2021, primarily due to increased costs for commodities like resin and transportation[18] - Retail dynamics shifted significantly during the pandemic, with some secondary customers temporarily closing stores, affecting traditional order patterns[19] - Consumer demand patterns shifted during the quarantine phase, benefiting categories like Food, Commercial, and Home Appliances, while other categories saw increased demand post-lockdowns[20] - The company anticipates ongoing uncertainty regarding future consumer demand patterns as the pandemic evolves[21] - The company experienced significant inflationary pressures for sourced finished goods in 2021, driven by global conditions and demand volatility related to COVID-19[37] Business Segments and Competition - The company has multiple operating segments, including Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation, each with distinct product offerings[24] - The company competes in a highly competitive environment, with large mass merchandisers exerting strong negotiating power over suppliers[44] - The company aims to maintain competitive advantages through brand differentiation, superior customer service, and innovative product development[46] - Walmart accounted for approximately 15% of net sales in 2021, while Amazon accounted for approximately 13%[47] Financial Overview - The Company has approximately $100 million of variable rate debt and $4.8 billion of fixed rate debt as of December 31, 2021[312] - A hypothetical 1% increase in interest rates would increase interest expense by approximately $1 million and decrease the fair value of debt by approximately $283 million[312] - Approximately 35% of the Company's sales were denominated in foreign currencies in 2021, with the European Euro being the most significant at approximately 9%[313] Workforce and Diversity - The Company employed approximately 32,000 people worldwide as of December 31, 2021, with 14,000 in North America and 4,000 in the Asia-Pacific region[50] - The Company has established six employee resource groups (ERGs) to promote diversity and inclusion[52] - The Company is focused on recruitment of diverse candidates and has adopted a policy requiring diverse slates for recruitment at the Director level and above[53] Research and Development - The Company continues to invest in research and development to strengthen its product design and innovation capabilities[49] Sales and Seasonal Variations - Seasonal variations impact sales, with the first quarter generally showing lower sales and operating income compared to other quarters[41] Commodity Management - The Company monitors commodity prices and enters into commodity-based derivatives to mitigate rising costs of raw materials[314] Employee Engagement - The Company conducted a digital engagement survey in 2021, with results showing scores equal to or above global benchmarks[54]