Newell Rubbermaid (NWL) to Offer Certain Employees Lump-Sum Distribution of PV of Benefits

Newell Rubbermaid Inc. (NYSE: NWL) intends to offer approximately 5,700 former employees who have deferred vested benefits under the Company’s tax-qualified pension plan, a one-time election to receive a lump sum distribution of the present value of their benefits by the end of 2014. This will reduce the size of the Company’s U.S. tax-qualified defined benefit pension plan obligation and related expenses. The benefit obligation associated with these former employees is approximately $200 million, equivalent to about 20% of the Company's benefit obligation for its U.S. tax-qualified pension plan.

The cash payments to those electing the lump sum distribution will be made from the pension plan assets. Therefore, the lump sum payment offer will not impact the Company’s cash flow. Based on the average acceptance rate of similar offers of approximately 50%, the Company would recognize a one-time, non-cash settlement charge in the fourth quarter. At that participation level, the Company would expect to incur a non-cash charge of approximately $50 million during the fourth quarter. The Company will not be able to determine the amount of the fourth quarter charge until the offer is completed.

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