UNITED STATES
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, 2002
[ ] 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. Statement of Assets Available for Benefits
3. Statement of Changes in Assets Available for Benefits
4. 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 99.1 Certification Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
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 27, 2003 /s/ Tom Nohl
----------------------------
Tom Nohl, Member,
Plan Administrative Committee
-2-
Financial Statements
Rubbermaid Retirement Plan for
Collectively Bargained Associates
December 31, 2002 and 2001 and year ended December 31, 2002
with Report of Independent Auditors
Rubbermaid Retirement Plan for Collectively Bargained Associates
Financial Statements
December 31, 2002 and 2001 and year ended December 31, 2002
CONTENTS
Report of Independent Auditors ........................................... 1
Financial Statements
Statements of Assets Available for Benefits .............................. 2
Statement of Changes in Assets Available for Benefits .................... 3
Notes to Financial Statements ............................................ 4
Report of Independent Auditors
To the Plan Administrator of
Rubbermaid Retirement Plan for
Collectively Bargained Associates
We have audited the accompanying statements of assets available for benefits of
the Rubbermaid Retirement Plan for Collectively Bargained Associates as of
December 31, 2002 and 2001, and the related statement of changes in assets
available for benefits for the year ended December 31, 2002. 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 assets available for benefits of the Plan at December
31, 2002 and 2001, and the changes in its assets available for benefits for the
year ended December 31, 2002, in conformity with accounting principles generally
accepted in the United States.
Chicago, Illinois
June 10, 2003
1
Rubbermaid Retirement Plan for Collectively Bargained Associates
Statements of Assets Available for Benefits
DECEMBER 31
---------------------------
2002 2001
---- ----
ASSETS
Interest in Newell Rubbermaid Master Trust $82,672,235 $95,893,843
Contributions receivable:
Employer 2,770,258 3,241,969
Participant 332,216 462,170
----------- -----------
Total receivables 3,102,474 3,704,139
----------- -----------
Assets available for benefits $85,774,709 $99,597,982
=========== ===========
See accompanying notes.
2
Rubbermaid Retirement Plan for Collectively Bargained Associates
Statement of Changes in Assets Available for Benefits
Year ended December 31, 2002
ADDITIONS
Contributions:
Employer $ 2,770,258
Participant 333,754
------------
Total additions 3,104,012
DEDUCTIONS
Benefits paid to participants 9,433,608
Net investment loss from Newell Rubbermaid Master Trust 7,646,498
Administrative expenses 99,173
------------
Total deductions 17,179,279
Transfers in 251,994
------------
Net decrease (13,823,273)
Assets available for benefits - Beginning of year 99,597,982
------------
Assets available for benefits - End of year $ 85,774,709
============
See accompanying notes.
3
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements
Year ended December 31, 2002
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, as amended (ERISA).
CONTRIBUTIONS
Annual contribution rates are defined by the Plan. During 2002, the Company
contributed to the Plan an amount equal to 14% 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.
Eligible 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 $102,379 and $87,199 were unallocated at December 31, 2002 and
2001, respectively.
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, 2002, ranged
from 5.25% 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 direct
contributions to the Plan to one or more of the Plan's 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.
3. INVESTMENTS
The Plan's investments are held in the Newell Rubbermaid Master Trust (Master
Trust) along with the investments of another Company-sponsored plan, the Newell
Rubbermaid 401(k) Savings Plan. Fidelity Management Trust Company serves as
trustee for the assets of the Master Trust.
Each participating plan has an undivided interest in the Master Trust. At
December 31, 2002 and 2001, the Plan's interest in the net assets of the Master
Trust was approximately 31.8% and 36.5%, respectively. Investment income and
expenses are allocated among the participating plans based upon the value of the
participant accounts attributed to each plan.
6
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
The Master Trust investments at December 31 are as follows:
2002 2001
---- ----
Investments at fair value:
Newell Rubbermaid Inc. common stock $ 1,279,380 $ 919,239
Mutual funds 32,284,548 50,895,181
Loans to participants 1,507,868 1,065,192
Short-term investment fund 84,720 58,398
------------ ------------
35,156,516 52,938,010
Investments at contract value:
Stable Value Fund 224,911,951 209,519,597
------------ ------------
$260,068,467 $262,457,607
============ ============
Investment income for the Master Trust for the year ended December 31, 2002, is
as follows:
Interest and dividends $ 11,645,415
Net realized and unrealized appreciation (depreciation) in the fair value of
investments determined by quoted market price:
Newell Rubbermaid Inc. common stock 171,902
Mutual funds (10,705,014)
------------
$ 1,112,303
============
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
$10,622,209 and $6,990,464 at December 31, 2002 and 2001, respectively. 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 blended crediting interest rate for the fund was 4.97% and 5.75% as of
December 31, 2002 and 2001, respectively. The fund's blended rate of return for
the 2002 year was 5.31%.
7
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
4. STABLE VALUE FUND (CONTINUED)
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, 2002 and 2001, are as follows:
CONTRACT VALUE FAIR VALUE
----------------------------- -----------------------------
2002 2001 2002 2001
---- ---- ---- ----
Guaranteed Investment Contracts $ 65,335,005 $ 57,375,436 $ 65,335,005 $ 59,135,791
Synthetic Guaranteed Investment
Contracts 148,954,737 145,153,697 139,486,885 149,107,629
------------ ------------ ------------ ------------
$214,289,742 $202,529,133 $204,821,890 $208,243,420
============ ============ ============ ============
Included in the fair value of synthetic guaranteed investment contracts as of
December 31, 2002 and 2001, are wrapper contracts with an estimated fair value
of $13,823,109 and $17,759,647, respectively. The wrappers 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.
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.
8
Rubbermaid Retirement Plan for Collectively Bargained Associates
Notes to Financial Statements (continued)
7. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated February 5, 2003, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Subsequent to the issuance of the determination letter,
the Plan was amended. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The plan administrator
believes the Plan is being operated in compliance with the application
requirements of the Code and, therefore, believes the Plan, as amended, is
qualified and the related trust is tax exempt.
9