Newell Brands Reports Costs for Exit/Disposal Activities

TL;DR

**Newell Brands is taking charges for exiting some business activities, aiming for a leaner future.**

AI Summary

Newell Brands Inc. filed an 8-K on January 8, 2024, reporting an event that occurred on January 4, 2024, related to "Cost Associated with Exit or Disposal Activities." This filing indicates that the company is undergoing restructuring or divesting certain operations, which could lead to one-time costs but potentially improve future profitability. For investors, this matters because such activities can signal a strategic shift to streamline operations, which might initially impact earnings due to charges but could lead to a more efficient and profitable company long-term.

Why It Matters

This filing signals Newell Brands is likely streamlining operations, which could lead to short-term costs but long-term efficiency and improved financial health.

Risk Assessment

Risk Level: medium — While restructuring can improve efficiency, the immediate costs and potential disruption introduce a moderate level of risk.

Analyst Insight

A smart investor would monitor Newell Brands' upcoming earnings reports for details on the specific costs and expected benefits of these exit or disposal activities, looking for clarity on how they impact future profitability and strategic direction.

Key Players & Entities

• NEWELL BRANDS INC. (company) — the registrant filing the 8-K
• January 8, 2024 (date) — date of the 8-K filing
• January 4, 2024 (date) — date of the earliest event reported in the 8-K
• 0000814453 (company) — Central Index Key (CIK) for Newell Brands Inc.
• NWL (company) — trading symbol for Newell Brands Inc. common stock

FAQ

Key Financial Figures

• $1 — nge on which registered Common stock, $1 par value per share NWL Nasdaq Stoc
• $65 million — x savings in the range of approximately $65 million to $90 million, net of reinvestment, as
• $90 m — e range of approximately $65 million to $90 million, net of reinvestment, as a result
• $55 million — result of the Plan, with approximately $55 million to $70 million expected to be realized
• $70 million — Plan, with approximately $55 million to $70 million expected to be realized in 2024. The Co
• $75 million — imates that it will incur approximately $75 million to $90 million in restructuring and res
• $90 million — will incur approximately $75 million to $90 million in restructuring and restructuring-rela
• $60 million — estimated charges consist primarily of $60 million to $70 million in charges related to ca
• $11 million — ayments and other termination benefits; $11 million to $16 million in charges associated wi
• $16 million — er termination benefits; $11 million to $16 million in charges associated with office space
• $4 million — on and consolidation; and approximately $4 million of other charges, including those assoc
• $80 million — pects that approximately $70 million to $80 million will be in cash expenditures. The est

Filing Documents

• d103686d8k.htm (8-K) — 26KB
• 0001193125-24-003974.txt ( ) — 143KB
• nwl-20240104.xsd (EX-101.SCH) — 3KB
• nwl-20240104_lab.xml (EX-101.LAB) — 17KB
• nwl-20240104_pre.xml (EX-101.PRE) — 11KB
• d103686d8k_htm.xml (XML) — 3KB

05

Item 2.05. Costs Associated with Exit or Disposal Activities On January 4, 2024, the Board of Directors of Newell Brands Inc. (the "Company") approved an organizational realignment (the "Plan") that is expected to strengthen the Company's front-end commercial capabilities, improve accountability, unlock operational efficiencies and cost savings, reduce complexity and free up funds for reinvestment. As part of the Plan, the Company is making the following organizational design changes: standing up a cross-functional brand management organization; realigning business unit finance to fully support the new global brand management model; further simplifying and standardizing regional go-to-market organizations; and centralizing domestic retail sales teams, the digital technology team, business-aligned accounting personnel, the Manufacturing Quality team, and the Human Resources functions into the appropriate center-led teams to drive standardization, efficiency and scale. The Company also plans to further optimize its real estate footprint and pursue other cost reduction initiatives. These actions are expected to be substantially implemented by the end of 2024. Once organizational design changes are fully executed, the Company expects to realize annualized pre-tax savings in the range of approximately $65 million to $90 million, net of reinvestment, as a result of the Plan, with approximately $55 million to $70 million expected to be realized in 2024. The Company plans to reduce its office roles by approximately 7% in connection with the Plan, with most of these actions expected to be complete by the end of 2024. Decisions regarding the elimination of positions as well as the timing of separations are subject to local law and consultation requirements in certain countries, as well as the Company's business needs. The Company estimates that it will incur approximately $75 million to $90 million in restructuring and restructuring-related charges in connection with t

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements related to the expected benefits of and timing of completion of the Plan, the pre-tax savings resulting from the Plan, the number of positions eliminated pursuant to the Plan and the expected costs, charges and cash expenditures associated with the Plan. These forward-looking statements are based upon the Company's current plans, assumptions, beliefs, and expectations. Forward-looking statements are subject to the occurrence of many events outside of the Company's control. Actual results and the timing of events may differ materially from those contemplated by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, the risks and uncertainties included in the Company's reports on Forms 10-K, 10-Q and 8-K and in other filings the Company makes with the U.S. Securities and Exchange Commission from time to time, available at www.sec.gov. Forward-looking statements should be considered in light of these risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained herein speak only as of the date hereof. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NEWELL BRANDS INC. Dated: January 8, 2024 By: /s/ Mark Erceg Mark Erceg Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR