SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
_______________
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED].
For the transition period from _________ to _________.
COMMISSION FILE NUMBER: 1-4188
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
RUBBERMAID RETIREMENT PLAN FOR COLLECTIVELY BARGAINED
ASSOCIATES
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
NEWELL RUBBERMAID INC.
29 EAST STEPHENSON STREET
NEWELL CENTER
FREEPORT, ILLINOIS 61032
REQUIRED INFORMATION
Financial Statements. The following financial statements and schedules are filed
as part of this annual report and appear immediately after the signature page
hereof:
1. Report of Independent Auditors
2. Report of Independent Public Accountants
3. Statements of Net Assets Available for Plan Benefits
4. Statement of Changes in Net Assets Available for Plan Benefits
5. Notes to Financial Statements
Exhibits. The following exhibits are filed as a part of this annual report:
Exhibit 23.1 Consent of Ernst & Young LLP
Exhibit 23.2 Notice Regarding Consent of Arthur Andersen LLP
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Plan has duly caused this annual report to be signed on
its behalf by the undersigned hereunto duly authorized.
RUBBERMAID RETIREMENT PLAN
FOR COLLECTIVELY BARGAINED
ASSOCIATES
Date: June 28, 2002 /s/ Tom Nohl
------------------------
Tom Nohl, Member,
Plan Administrative Committee
-2-
Rubbermaid Retirement Plan for Collectively Bargained Associates
Financial Statements
December 31, 2001 and 2000 and year ended December 31, 2001
CONTENTS
Report of Independent Auditors 1
Report of Independent Public Accountants 2
Financial Statements
Statements of Net Assets Available for Benefits 3
Statement of Changes in Net Assets Available for Benefits 4
Notes to Financial Statements 5
Report of Independent Auditors
To the Plan Administrator of
Rubbermaid Retirement Plan for
Collectively Bargained Associates
We have audited the accompanying statement of net assets available for benefits
of the Rubbermaid Retirement Plan for Collectively Bargained Associates as of
December 31, 2001, and the related statement of changes in net assets available
for benefits for the year then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2001, and the changes in its net assets available for benefits for
the year then ended, in conformity with accounting principles generally accepted
in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
June 14, 2002
1
THIS IS A COPY OF THE AUDIT REPORT PREVIOUSLY ISSUED BY ARTHUR ANDERSEN LLP IN
CONNECTION WITH THE PLAN'S FILING ON FORM 11-K FOR THE YEAR ENDED DECEMBER 31,
2000. THIS AUDIT REPORT HAS NOT BEEN REISSUED BY ARTHUR ANDERSEN IN CONNECTION
WITH THIS FILING ON FORM 11-K. SEE EXHIBIT 23.2 FOR FURTHER DISCUSSION.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of Rubbermaid
Retirement Plan for Collectively Bargained Associates:
We have audited the accompanying statements of net assets available for plan
benefits of the Rubbermaid Retirement Plan for Collectively Bargained Associates
(the "Plan") as of December 31, 2000 and 1999, and the related statement of
changes in net assets available for plan benefits for the year ended December
31, 2000. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 2000 and 1999, and the changes in its net assets available for
plan benefits for the year ended December 31, 2000, in conformity with
accounting principles generally accepted in the United States.
/s/ Arthur Andersen LLP
-----------------------
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
June 22, 2001
Rubbermaid Retirement Plan for Collectively Bargained Associates
Statements of Net Assets Available for Benefits
DECEMBER 31
-------------------------------------
2001 2000
----------- ------------
ASSETS
Interest in Newell Rubbermaid Master Trust $95,893,843 $107,122,012
Contributions receivable:
Employer 3,241,969 3,784,018
Participant 462,170 802,051
----------- ------------
Total receivables 3,704,139 4,586,069
----------- ------------
Net assets available for benefits $99,597,982 $111,708,081
=========== ============
See accompanying notes.
2
Rubbermaid Retirement Plan for Collectively Bargained Associates
Statement of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 2001
ADDITIONS
Contributions:
Employer $ 3,241,969
Participant 462,170
------------
Total additions 3,704,139
DEDUCTIONS
Benefits paid to participants 9,173,360
Net investment loss from Newell Rubbermaid Master Trust 6,561,069
Administrative expenses 79,809
------------
Total deductions 15,814,238
------------
Net decrease (12,110,099)
Net assets available for benefits - Beginning of year 111,708,081
------------
Net assets available for benefits - End of year $ 99,597,982
============
See accompanying notes.
3
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements
Year ended December 31, 2001
1. DESCRIPTION OF THE PLAN
The following description of the Rubbermaid Retirement Plan for
Collectively Bargained Associates (the Plan) provides only general information.
Participants should refer to the Summary Plan Description for a more complete
description of the Plan's provisions.
GENERAL
The Plan is a defined contribution profit sharing plan covering
collectively-bargained associates of the United Steelworkers of America,
Rubber/Plastic Industry Conference Local 302, located at the Wooster, Ohio
facility of Newell Rubbermaid, Inc. (the Company). Participation in the Plan
begins upon completion of one year of eligibility service, which is defined as
1,000 hours of service with the Company within a 12-month period. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
CONTRIBUTIONS
Annual contribution rates are defined by the Plan. During 2001 and 2000, the
Company contributed to the Plan an amount equal to 18% of the eligible
compensation earned by Plan participants. A participant must be employed by the
Company at the end of the Plan year or complete at least 1,000 hours during the
Plan year in order to be eligible to receive a Company contribution, subject to
limited exceptions. Employees may elect to receive 25% of the Company
contribution as a cash bonus payment or have that amount, up to the maximum
amount permitted by the Internal Revenue Service (IRS), contributed to the Plan
as a salary deferral contribution.
PARTICIPANT ACCOUNTS
Separate accounts are maintained for each participant. Each participant's
account is credited with the participant's contributions and an allocation of:
(a) the Company's contribution, and (b) Plan earnings, and is charged with an
allocation of administrative expenses. Allocations are based on participant
earnings or account balances, as defined. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's vested
account.
4
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VESTING
Participants are immediately vested in their salary deferral contributions, plus
actual earnings thereon. Vesting in the Company contribution portion of their
accounts is based upon a seven-year graduated vesting schedule. A participant
becomes 100% vested after completing seven years of service. Upon death,
disability or attainment of age 65, participants become 100% vested regardless
of years of service. Forfeited balances of terminated participants' nonvested
accounts are reallocated among the accounts of eligible participants.
Forfeitures of $87,199 remained unallocated at December 31, 2001.
PARTICIPANT LOANS
Participants may borrow from their accounts a minimum of $1,000 up to a maximum
equal to the lesser of $50,000 or 50% of their vested account balance. Loan
terms range from one to five years. The loans are secured by the balance in the
participant's account and bear interest at a rate based on prevailing market
conditions. Interest rates on loans outstanding at December 31, 2001, ranged
from 5.0% to 10.5%. Principal and interest are paid ratably through monthly
payroll deductions.
PAYMENT OF BENEFITS
A participant is eligible to receive a distribution upon termination of
employment, death, disability, or retirement. The form of payment may be a
lump-sum cash payment, periodic payments in such amounts as elected by the
participant, or a combination thereof.
INVESTMENT OPTIONS
All investments are participant-directed. Participants may elect to direct
contributions to the Plan to one or more of the Plan's eleven investment funds.
Participants may change their investment options or reallocate their investment
balances on a daily basis.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual basis of
accounting.
5
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INVESTMENT VALUATION AND INCOME RECOGNITION
Except for investment contracts which are valued at contract value, the Plan's
investments are stated at fair value, which equals the quoted market price on
the last business day of the Plan year. The participant loans are valued at
their outstanding balances, which approximate fair value.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
ADMINISTRATIVE EXPENSES
All normal costs and expenses of administering the Plan and trust are paid by
Plan participants. Any cost resulting from a participant obtaining a loan or
requesting a distribution or in-service withdrawal may be borne by such
participant or charged to the participant's individual account.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
RECLASSIFICATION
Certain amounts in the 2000 financial statements have been reclassified to
conform with the 2001 presentation.
3. INVESTMENTS
Prior to October 1, 2000, investments of the Plan were commingled with the
investments of the Rubbermaid Retirement Plan for investment purposes only.
Collectively, such funds comprised the Rubbermaid Master Trust with Fidelity
Management Trust Company as the trustee. On October 1, 2000, the Rubbermaid
Retirement Plan merged into the Newell Long-Term Savings and Investment Plan
(the Newell Plan). Plan assets of the Rubbermaid Retirement Plan of $187,022,012
were transferred from the
6
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
Rubbermaid Master Trust to the trustee of the Newell Plan, J.P. Morgan/American
Century. Assets of $132,211,951 remained in the Rubbermaid Master Trust as
assets of the Newell Plan. The Newell Plan transferred additional assets of
$40,544,433 to the Rubbermaid Master Trust. Effective October 1, 2000, the
Rubbermaid Master Trust was renamed the Newell Rubbermaid Master Trust (the
Master Trust).
Each participating plan has an undivided interest in the Master Trust. At
December 31, 2001 and 2000, the Plan's interest in the net assets of the Master
Trust was approximately 36.5% and 40.2%, respectively. Investment income and
expenses are allocated among the participating plans based upon the value of the
participant accounts attributed to each plan.
The Master Trust investments at December 31 are as follows:
2001 2000
------------ -------------
Investments at fair value:
Newell Rubbermaid Inc. common stock $ 919,239 $ 2,041,585
Mutual funds 50,895,181 64,348,921
Loans to participants 1,065,192 1,117,273
Short-term investment fund 58,398 -
------------ -------------
52,938,010 67,507,779
Investments at contract value:
Stable Value Fund 209,519,597 198,828,621
$262,457,607 $266,336,400
Investment income for the Master Trust for the year ended December 31, 2001, is
as follows:
Interest and dividends $12,707,768
Net realized and unrealized appreciation (depreciation) in the fair
value of investments determined by quoted market price:
Newell Rubbermaid Inc. common stock 340,012
Mutual funds (10,190,149)
-----------
$ 2,857,631
===========
7
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
4. STABLE VALUE FUND
The Master Trust holds an investment in the Stable Value Fund, which invests
primarily in guaranteed investment contracts and synthetic guaranteed investment
contracts. The fund also includes a short-term interest fund in the amount of
$6,990,464 at December 31, 2001. The fund is included in the financial
statements at contract value as reported by the respective insurance companies.
Contract value represents contributions made, plus earnings, less participant
withdrawals and administrative expenses.
The crediting interest rate for the fund was 5.75% and 6.20% as of December 31,
2001 and 2000, respectively. The fund's blended rate of return for the year was
5.86% in 2001.
The crediting rates are reset periodically and are based on the market value of
the underlying portfolio of assets backing these contracts. Inputs used to
determine the crediting rate include each contract's portfolio market value,
current yield-to-maturity, duration (i.e., weighted-average life), and market
value relative to contract value. All contracts have a guaranteed rate of 0% or
higher.
The contract values and fair values of investment contracts included in the
Stable Value Fund as of December 31, 2001 and 2000, are as follows:
CONTRACT VALUE FAIR VALUE
------------------------------ ----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Guaranteed Investment Contracts $ 57,375,436 $ 85,483,538 $ 59,135,791 $ 86,105,194
Synthetic Guaranteed Investment
Contracts 145,153,697 72,587,726 149,107,629 73,376,131
------------ ------------ ------------ ------------
$202,529,133 $158,071,264 $208,243,420 $159,481,325
============ ============ ============ ============
Included in the fair value of synthetic guaranteed investment contracts as of
December 31, 2001 and 2000, are $17,759,647 and $0, respectively, related to
wrapper contracts which guarantee the contract value of the synthetic guaranteed
investment contracts for participant-initiated withdrawal events.
5. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of the collective bargaining agreement and ERISA.
In the event of Plan termination, participants will become 100% vested in their
accounts.
8
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
6. RELATED PARTY TRANSACTIONS
All expenses related to the Trustee and recordkeeping in connection with the
operation of the Plan are paid by the Plan. All other costs are paid out of
Plan assets, except to the extent the Administrative Committee elects to have
such expenses paid directly by the Company.
As of December 31, 2001, the Plan owned 33,342 shares of Newell Rubbermaid Inc.
common stock.
7. TAX STATUS
The Plan has received a determination letter from the IRS dated November 20,
1996, stating that the Plan is qualified under Section 401(a) of the Internal
Revenue Code (IRC) and, therefore, the related trust is exempt from taxation.
Subsequent to the issuance of the determination letter, the Plan was amended and
restated. Once qualified, the Plan is required to operate in conformity with the
IRC to maintain its qualification. The plan administrator believes the Plan is
being operated in compliance with the applicable requirements of the IRC and,
therefore, believes the Plan, as amended, is qualified and the related trust is
tax exempt.
9
INDEX TO EXHIBITS
-----------------
(23) CONSENTS OF EXPERTS AND COUNSEL
23.1 Consent of Ernst & Young LLP
23.2 Notice regarding Consent of Arthur Andersen LLP