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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE NINE-MONTH PERIOD ENDED
OCTOBER 1, 2000
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For the nine-month period ended October 1, 2000
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
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
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REQUIRED INFORMATION
FINANCIAL STATEMENTS. The following financial statements are filed as part of
this annual report and appear immediately after the signature page hereof:
1. Report of Independent Public Accountants
2. Statements of Net Assets Available for Plan Benefits
3. Statement of Changes in Net Assets Available for Plan Benefits
4. Notes to Financial Statements
The Rubbermaid Retirement Plan was merged into the Newell Long-Term Savings and
Investment Plan effective as of October 1, 2000. As a result, the financial
statements contained herein are as of October 1, 2000, and December 31, 1999.
EXHIBITS. The following exhibit is filed as a part of this annual report:
Exhibit 23: Consent of Arthur Andersen, LLP
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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
/s/ Tom Nohl
Dated: March 27 , 2001 -----------------------------------------
------ Tom Nohl
Vice President, Compensation and Benefits
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RUBBERMAID RETIREMENT PLAN
FINANCIAL STATEMENTS
AS OF OCTOBER 1, 2000 AND DECEMBER 31, 1999
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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RUBBERMAID RETIREMENT PLAN
FINANCIAL STATEMENTS
OCTOBER 1, 2000 AND DECEMBER 31, 1999
Table of Contents
Report of Independent Public Accountants
Financial Statements
Statements of Net Assets Available for Plan Benefits as of October 1, 2000
and December 31, 1999
Statement of Changes in Net Assets Available for Plan Benefits for the Nine
Months Ended October 1, 2000
Notes to Financial Statements
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of
Rubbermaid Retirement Plan:
We have audited the accompanying statement of net assets available for plan
benefits of the Rubbermaid Retirement Plan as of October 1, 2000 and December
31, 1999, and the related statement of changes in net assets available for plan
benefits for the nine months ended October 1, 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 October 1, 2000 and December 31, 1999, and the changes in its net assets
available for plan benefits for the nine months ended October 1, 2000, in
conformity with accounting principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
March 12, 2001
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RUBBERMAID RETIREMENT PLAN
Statements of Net Assets Available for Plan Benefits
As of October 1, 2000 and December 31, 1999
2000 1999
---- ----
Assets:
Investment in Rubbermaid Master Trust $ - $356,838,392
Receivables:
Employer Contribution - 9,864,061
-------- ------------
Net Assets Available for Plan Benefits $ - $366,702,453
======== ============
The accompanying notes to financial statements are an integral part of these
statements.
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RUBBERMAID RETIREMENT PLAN
Statement of Changes in Net Assets Available for Plan Benefits
For the Nine Months Ended October 1, 2000
Additions to Assets Attributed to:
Net Investment Income from Rubbermaid Master Trust $ 6,979,320
Contributions:
Employer Contribution 2,286,285
Participant Contributions 6,083,097
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Total Additions 15,348,702
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Deductions from Assets Attributed to:
Benefits Paid to Participants 63,293,052
Administrative Expenses 327,069
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Total Deductions 63,620,121
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Net Decrease Prior to Transfers (48,271,419)
Transfers from Little Tikes Commercial Play Systems, Inc. Retirement Plan 802,929
Transfer to Newell Long-Term Savings and Investment Plan (319,233,963)
Net Assets Available for Plan Benefits:
Beginning of Year 366,702,453
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End of Period $ -
=============
The accompanying notes to financial statements are an integral part of this
statement.
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RUBBERMAID RETIREMENT PLAN
Notes to Financial Statements
October 1, 2000 and December 31, 1999
(1) DESCRIPTION OF THE PLAN-
The following brief description of the Rubbermaid Retirement Plan (the
"Plan") is provided for general information purposes only. More complete
information regarding the Plan's provisions may be found in the Plan
document.
On October 20, 1998, the Plan's Sponsor entered into a definitive agreement
to merge with Newell Company ("Newell") through a tax-free exchange of
shares. This agreement was consummated effective March 24, 1999, resulting
in the Plan's sponsor becoming a wholly-owned subsidiary of Newell.
(a) GENERAL-
The Plan is a defined contribution profit sharing plan with a 401(k)
feature covering salaried and non-bargaining hourly associates, as
defined by the Plan, of Rubbermaid Incorporated and Affiliated
Companies (the "Company") that adopt the Plan. Participation in the
Plan begins on January 1 coincident with or following an associate's
date of hire. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
(b) PLAN MERGERS-
On May 1, 2000, the Little Tikes Commercial Play Systems, Inc.
Retirement Plan (the "Little Tikes Plan"), a defined contribution plan
established by Little Tikes Commercial Play Systems, Inc. (a subsidiary
of Newell Rubbermaid, Inc.), was combined with the Rubbermaid
Retirement Plan. The Little Tikes Plan's assets of $802,929 were
transferred into the Rubbermaid Retirement Plan. All active
participants of the Little Tikes Plan at that date became participants
of the Rubbermaid Retirement Plan.
Effective October 1, 2000, the Plan merged into the Newell Long-Term
Savings and Investment Plan ("the Newell Plan"). Plan assets of
$319,233,963 were transferred into the Newell Plan. The transfer of
assets will not affect participants' vested benefits prior to the
merger. Active participants in the Plan became 100% vested in their
accounts on the date of the merger. All disclosures in these Notes to
Financial Statements are for the Plan prior to October 1, 2000.
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(c) EMPLOYER CONTRIBUTIONS-
The Plan provides for a fully vested Company matching contribution
equal to 50% of the first 6% of a participant's salary deferred into
the Plan and for rollovers. The Plan also provides for a Company
contribution equal to 6% of a participant's (other than Everything
Rubbermaid Store and Century Products employees) eligible compensation
with an opportunity for an additional 3% of the participant's eligible
compensation based on "EVA Targets." A participant must be employed by
the Company at the end of the Plan year and complete at least 1,000
hours during the Plan year in order to be eligible to receive a Company
contribution, subject to limited exceptions.
(d) EMPLOYEE SALARY DEFERRAL CONTRIBUTIONS-
A 401(k) salary deferral feature is included in the Plan, allowing
participants to make pretax salary deferrals of base compensation.
(e) PARTICIPANT ACCOUNTS-
Separate accounts are maintained for each participant. Contributions
are invested, as instructed by the participants, in one or more of the
available investment funds. Each participant's account is credited with
contributions, if any, and earnings.
(f) VESTING-
Participants are 100% vested in the portion of their accounts
attributable to 401(k) contributions and matching contributions (plus
earnings). Vesting in the remainder of their accounts is based upon a
seven-year graduated vesting schedule. A participant becomes 100%
vested after completing seven years of vesting service. Upon death,
disability or attainment of age 65, participants become 100% vested.
(g) INVESTMENTS OPTIONS-
All investments are participant-directed, and participants may elect to
invest their account in the Plan in one or more of the eleven
investment funds held by the Plan. Currently, the available investment
funds include:
STABLE VALUE FUND - Seeks to provide for preservation of capital and
stability of investment returns through investments in high quality
investment contracts with insurance companies, banks or other financial
institutions.
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FIDELITY PURITAN FUND - Seeks as much income as possible, consistent
with preservation of capital, by investing in a broadly diversified
portfolio of domestic and foreign common stocks, preferred stocks and
bonds, including lower quality, high yield debt securities.
SPARTAN U.S. EQUITY INDEX FUND - Seeks investment results that try to
duplicate the composition and total return of the S&P 500 and in other
securities that are based on the value of the Index.
FIDELITY CONTRAFUND - Seeks long-term capital appreciation by investing
mainly in the securities of companies believed to be out of favor or
undervalued.
FIDELITY MAGELLAN FUND - Seeks long-term capital appreciation by
investing in the stocks of both well known and lesser known companies
with above average growth potential and a correspondingly higher level
of risk.
FIDELITY SMALL-CAP SELECTOR - Seeks capital appreciation by investing
primarily in companies that have market capitalizations of $750 million
or less at the time of the Fund's investment.
FIDELITY DIVERSIFIED INTERNATIONAL FUND - Seeks capital growth by
investing primarily in equity securities of companies located anywhere
outside the U.S. that are included in the Morgan Stanley EAFE Index.
NEWELL RUBBERMAID INC. STOCK FUND - Invests primarily in Newell
Rubbermaid Inc. common stock.
FIDELITY U.S. BOND INDEX FUND - Seeks to provide investment results
that correspond to the aggregate price and investment performance of
the debt securities in the Lehman Brothers Aggregate Bond Index.
INVESCO DYNAMICS FUND - Seeks long-term capital growth by investing in
domestic common stocks of companies traded on U.S. securities exchanges
as well as on the over-the-counter (OTC) market.
FIDELITY EQUITY-INCOME FUND - Seeks to provide moderate income while
offering the potential for capital appreciation through investments in
income-producing stocks.
For investment purposes only, investments of the Plan are commingled
with the investments of the Rubbermaid Retirement Plan for
Collectively-Bargained Associates. Collectively, such funds comprise
the Rubbermaid Master Trust (the "Master Trust") with Fidelity
Management Trust Company as the trustee. Allocation of the Master Trust
investments and
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income among plans is determined on the basis of the value of the
participant accounts attributed to each plan.
(h) PAYMENT OF BENEFITS-
A participant is eligible to receive a distribution upon termination of
employment, in either a lump-sum cash payment equal to the value of his
or her vested account or periodic payments in such amounts as elected
by the participant (subject to provisions of the Plan).
(i) PARTICIPANT LOANS-
Loans of up to 50% of the vested portion of the participant's
individual account may be obtained by qualified participants. The
maximum loan permissible is generally the lesser of $50,000 or one-half
of the participant's vested balance. Loans are repayable through
payroll deductions over periods ranging up to 60 months, or in the case
of home loans, up to 120 months. The interest rate is determined based
on prevailing market conditions. There were no loans outstanding at
October 1, 2000.
(j) FORFEITED ACCOUNTS-
At October 1, 2000 and December 31, 1999, forfeited nonvested accounts
totaled approximately $0 and $1,466,000, respectively. These accounts
will be used to reduce future employer contributions. During 2000,
employer contributions were reduced by approximately $1,467,000 from
forfeited nonvested accounts.
(2) SIGNIFICANT ACCOUNTING POLICIES-
(a) BASIS OF PRESENTATION-
The accompanying financial statements have been prepared on the accrual
basis of accounting.
(b) INVESTMENT VALUATION-
The Plan's investments are stated at fair value except for fully
benefit-responsive guaranteed principal and interest contracts included
in the Stable Value Fund, which are stated at contract value. Purchases
and sales of securities are recorded on a trade date basis.
(c) PAYMENT OF BENEFITS-
Benefits are recorded when paid.
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(d) ADMINISTRATIVE EXPENSES-
All normal costs and expenses of administering the Plan and Master
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.
(e) USE OF ESTIMATES-
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities
and changes therein, and disclosure of contingent assets and
liabilities. Actual results could differ from these estimates.
(3) MASTER TRUST FINANCIAL INFORMATION-
The Plan's investments are contained in a Master Trust in which they are
combined for investment purposes with the assets of the Rubbermaid
Retirement Plan for Collectively-Bargained Associates. The Master Trust
fund assets at October 1, 2000 and December 31, 1999 are as follows:
October 1, December 31,
Assets 2000 1999
------ ------------------- ----------------
Newell Rubbermaid Inc. Stock Fund * $2,618,162 $12,115,255
Mutual Funds 71,860,705 272,481,883
Stable Value Fund 41,918,308 224,231,031
Loans to Participants 1,063,480 9,728,457
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Total Assets $117,460,655 $518,556,626
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*Represents a party-in-interest.
October 1, 2000 December 31, 1999
----------------------------- ----------------------------
Amount Percent Amount Percent
------------------ ---------- ----------------- ---------
Rubbermaid Retirement Plan $ - - $356,838,392 68.8%
Rubbermaid Retirement Plan for
Collectively-Bargained Associates 117,460,655 100% 161,718,234 31.2
------------------ -------- ----------------- ---------
Total Assets $117,460,655 100% $518,556,626 100.0%
================== ======== ================= =========
The Master Trust is invested in a Stable Value Fund that invests primarily
in guaranteed investment contracts ("GIC"), separate account portfolios
("SAP")
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and synthetic guaranteed investment contracts ("SYN"). The crediting
interest rate for the fund was 6.22% and 6.10% as of October 1, 2000 and
December 31, 1999, respectively. The fund's blended rate of return for the
period ended October 1, 2000 and the year ended December 31, 1999 was 6.32%
and 6.13%, respectively.
The crediting rates for SAP and SYN contracts 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.
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The contract values and fair values of investment contracts included in the
Stable Value Fund as of October 1, 2000 and December 31, 1999 are as
follows:
Contract Value Fair Value
------------------------------------ ------------------------------------
2000 1999 2000 1999
------------------ ----------------- ----------------- ------------------
Guaranteed Investment Contracts $4,533,263 $21,252,179 $4,527,091 $21,297,592
Synthetic Guaranteed Investment
Contracts 108,318,048 133,491,859 105,730,429 130,432,760
Separate Account Guaranteed
Investment Contracts 57,079,076 57,971,897 56,570,798 56,442,510
------------------ ----------------- ----------------- ------------------
$169,930,387 $212,715,935 $166,828,318 $208,172,862
================== ================= ================= ==================
Included in the fair value of synthetic guaranteed investment contracts as
of October 1, 2000 and December 31, 1999 are $0 and $(3,000,063),
respectively, related to wrapper contracts which guarantee the contract
value of the synthetic guaranteed investment contracts for
participant-initiated withdrawal events.
Master Trust income and its allocation to the participating plans for the
nine months ended October 1, 2000 is as follows:
Interest and Dividends $13,222,935
Realized Losses, Net (4,453,024)
Unrealized Appreciation (Depreciation) in the Fair Value of
Investments by Type:
Stock Funds (225,568)
Mutual Funds 642,301
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Total Unrealized Appreciation 416,734
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Total Master Trust Income $9,186,644
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Master Trust Income Amount Percent
------------------- --------------- -----------
Rubbermaid Retirement Plan $6,979,320 76.0%
Rubbermaid Retirement Plan for Collectively-
Bargained Associates 2,207,324 24.0%
--------------- -----------
Total Master Trust Income $9,186,644 100.0%
=============== ===========
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(4) TAX STATUS-
The Internal Revenue Service has determined and informed the Company by
letter dated June 2, 1999, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC).
Therefore, no provision for income taxes has been included in the Plan's
financial statements.
(5) RECONCILIATION OF NET ASSETS TO FORM 5500-
As of December 31, 1999, the Plan had $2,870 of pending distributions to
participants who elected to withdraw from the Plan. This amount is recorded
as a liability in the Plan's 1999 Form 5500; however, this amount is not
recorded as a liability in the accompanying statement of net assets
available for plan benefits in accordance with generally accepted
accounting principles.