nwl-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2024

Commission File Number 1-9608

NEWELL BRANDS INC.

(Exact name of registrant as specified in its charter)


Delaware						36-3514169
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

6655 Peachtree Dunwoody Road,

Atlanta, Georgia 30328

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (770) 418-7000

Securities registered pursuant to Section 12(b) of the Act:

TITLE OF EACH CLASS

TRADING SYMBOL

NAME OF EXCHANGE ON WHICH REGISTERED

Common stock, $1 par value per share

NWL

Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding (net of treasury shares) as of April 22, 2024: 415.2 million.

Table of Contents


TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION			2
Item 1. Financial Statements			2
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3. Quantitative and Qualitative Disclosures about Market Risk			32
Item 4. Controls and Procedures			32
PART II. OTHER INFORMATION			33
Item 1. Legal Proceedings			33
Item 1A. Risk Factors			33
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities			33
Item 5. Other Information			33
Item 6. Exhibits			34
SIGNATURES			35

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NEWELL BRANDS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

(Amounts in millions, except per share amounts)


	Three Months Ended March 31,
		2024		2023
Net sales		$	1,653	$	1,805
Cost of products sold		1,149		1,323
Gross profit		504		482
Selling, general and administrative expenses		462		480
Restructuring costs, net		26		38

Operating income (loss)		16		(36)
Non-operating expenses:
Interest expense, net		70		68
Loss on extinguishment and modification of debt		1		—
Other expense, net		5		12
Loss before income taxes		(60)		(116)
Income tax benefit		(51)		(14)
Net loss		$	(9)	$	(102)

Weighted average common shares outstanding:
Basic		414.7		413.9
Diluted		414.7		413.9

Loss per share:
Basic		$	(0.02)	$	(0.25)
Diluted		$	(0.02)	$	(0.25)




COMPREHENSIVE INCOME (LOSS):
Net loss	$	(9)	$	(102)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(24)		18
Pension and postretirement costs	8		(1)
Derivative financial instruments	7		(10)
Total other comprehensive income (loss), net of tax	(9)		7




Total comprehensive loss	$	(18)	$	(95)

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

NEWELL BRANDS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Amounts in millions, except par values)


	March 31, 2024		December 31, 2023
Assets:
Cash and cash equivalents	$	372	$	332
Accounts receivable, net	958		1,195
Inventories	1,695		1,531
Prepaid expenses and other current assets	376		296

Total current assets	3,401		3,354
Property, plant and equipment, net	1,194		1,212
Operating lease assets	492		515
Goodwill	3,059		3,071
Other intangible assets, net	2,447		2,488
Deferred income taxes	775		806
Other assets	732		717
Total assets	$	12,100	$	12,163

Liabilities:
Accounts payable	$	1,038	$	1,003

Other accrued liabilities	1,489		1,565
Short-term debt and current portion of long-term debt	429		329

Total current liabilities	2,956		2,897
Long-term debt	4,558		4,575
Deferred income taxes	237		241
Operating lease liabilities	422		446
Other noncurrent liabilities	851		892
Total liabilities	9,024		9,051
Commitments and contingencies (Footnote 16)
Stockholders’ equity:
Preferred stock (10.0 authorized shares, $1.00 par value, no shares issued at March 31, 2024 and December 31, 2023)	—		—
Common stock (800.0 authorized shares, $1.00 par value, 440.9 shares and 439.6 shares issued at March 31, 2024 and December 31, 2023, respectively)	441		440
Treasury stock, at cost (25.8 shares and 25.3 shares at March 31, 2024 and December 31, 2023, respectively)	(631)		(627)
Additional paid-in capital	6,900		6,915
Retained deficit	(2,735)		(2,726)
Accumulated other comprehensive loss	(899)		(890)


Total stockholders’ equity	3,076		3,112
Total liabilities and stockholders’ equity	$	12,100	$	12,163

See Notes to Condensed Consolidated Financial Statements (Unaudited).

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NEWELL BRANDS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Amounts in millions)


	Three Months Ended March 31,
	2024		2023
Cash flows from operating activities:
Net loss	$	(9)	$	(102)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	85		81


Deferred income taxes	8		6
Stock based compensation expense	16		11


Other, net	(3)		(9)
Changes in operating accounts:
Accounts receivable	221		45
Inventories	(178)		(27)
Accounts payable	38		26
Accrued liabilities and other	(146)		(108)
Net cash provided by (used in) operating activities	32		(77)
Cash flows from investing activities:

Capital expenditures	(59)		(83)
Swap proceeds	8		14
Other investing activities, net	1		1
Net cash used in investing activities	(50)		(68)
Cash flows from financing activities:
Proceeds from (payments on) short-term debt, net	(131)		232

Proceeds from short-term debt with original maturities greater than 90 days	431		—
Payments on short-term debt with original maturities greater than 90 days	(200)		—



Cash dividends	(31)		(97)


Equity compensation activity and other, net	(9)		(7)
Net cash provided by financing activities	60		128
Exchange rate effect on cash, cash equivalents and restricted cash	(3)		(1)
Increase (decrease) in cash, cash equivalents and restricted cash	39		(18)
Cash, cash equivalents and restricted cash at beginning of period	361		303
Cash, cash equivalents and restricted cash at end of period	$	400	$	285

Supplemental disclosures:
Restricted cash at beginning of period	$	29	$	16
Restricted cash at end of period	28		14

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

NEWELL BRANDS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

(Amounts in millions, except per share amounts)

Common
Stock

SEC Form 10-Q filed by Newell Brands Inc.