Newell Brands(US:NWL)2023-02-14 16:00Restructuring and Operational Efficiency - The Company announced a restructuring initiative called "Project Phoenix" aimed at reducing complexity and driving operational efficiencies, expected to be completed by the end of 2023[22]. - The Company will combine its Commercial Solutions, Home Appliances, and Home Solutions segments into one segment called Home and Commercial Solutions starting January 2023[27]. Business Segments and Sales - The Company has five primary operating segments: Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation[25]. - Walmart accounted for approximately 14% of net sales in 2022, while Amazon accounted for approximately 13%[51]. - The Company’s sales tend to be seasonal, with the first quarter generally showing lower sales and operating income compared to other quarters[44]. Workforce and Employee Development - The Company employed approximately 28,000 people worldwide as of December 31, 2022, with 14,000 in manufacturing and supply chain roles[54]. - The Company has a strong focus on diversity and inclusion, with various employee resource groups to support these initiatives[56]. - The Company emphasizes employee development and has established a robust talent and succession planning process[60]. - The Company is focused on recruiting diverse candidates and has adopted a policy requiring diverse slates for recruitment at the Director level and above[59]. - The Company conducted a fully digital, enterprise-wide engagement survey in 2022, which showed that the majority of scores were equal to or above global benchmarks[59]. Financial Performance and Risks - The Company experienced significant inflationary pressures for sourced finished goods in 2022, driven by global conditions, which are expected to continue into 2023[40]. - The Company has approximately $1.7 billion of its debt carrying a variable interest rate, while about $3.7 billion carries a fixed rate[306]. - A hypothetical 1% increase in interest rates would increase interest expense by approximately $17 million and decrease the fair value of debt by approximately $161 million[306]. - The Company is exposed to market risks including fluctuations in interest rates, foreign currency exchange rates, and commodity prices, which it assesses using sensitivity analysis[305]. - The Company is exposed to commodity price risk, and a hypothetical 10% change in commodity prices would not have a material effect on its results of operations[309]. Currency and Hedging - Approximately 35% of the Company's sales were denominated in foreign currencies, with the most significant being the European Euro (9%), British Pound (5%), and Canadian Dollar (4%)[308]. - The Company has implemented foreign currency hedging activities to mitigate exchange rate exposure related to forecasted inventory purchases and sales[308]. Innovation and Market Position - The Company continues to invest in research and development to create innovative products based on consumer insights[53]. - The management team has significant industry experience and is dedicated to maintaining the Company's position as a global leader in the consumer products industry[61].