Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 07, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'FBHS | ' | ' |
Entity Registrant Name | 'FORTUNE BRANDS HOME & SECURITY, INC. | ' | ' |
Entity Central Index Key | '0001519751 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 165,663,884 | ' |
Entity Public Float | ' | ' | $6,395,146,591 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net sales | $4,157.40 | [1] | $3,591.10 | [1] | $3,328.60 | [1] |
Cost of products sold | 2,718.60 | 2,421.10 | 2,332.10 | |||
Selling, general and administrative expenses | 1,043.10 | 976.9 | 900.6 | |||
Amortization of intangible assets | 13.2 | 11.1 | 14.4 | |||
Restructuring charges | 4.2 | 4.5 | 4.7 | |||
Asset impairment charges | 21.2 | 15.8 | 90 | |||
Business separation costs | ' | ' | 2.4 | |||
OPERATING INCOME (LOSS) | 357.1 | 161.7 | -15.6 | |||
Related party interest expense, net | ' | ' | 23.2 | |||
External interest expense | 7.2 | 8.7 | 3.2 | |||
Other expense (income), net | 5 | -1 | 1.6 | |||
Income (loss) before income taxes | 344.9 | 154 | -43.6 | |||
Income taxes (benefit) | 114 | 34.3 | -9 | |||
NET INCOME (LOSS) | 230.9 | 119.7 | -34.6 | |||
Less: Noncontrolling interests | 1.2 | 1 | 1 | |||
NET INCOME (LOSS) ATTRIBUTABLE TO HOME & SECURITY | $229.70 | $118.70 | ($35.60) | |||
BASIC EARNINGS (LOSS) PER COMMON SHARE | $1.39 | [2] | $0.74 | [2] | ($0.23) | [2] |
DILUTED EARNINGS (LOSS) PER COMMON SHARE | $1.34 | [2] | $0.71 | [2] | ($0.23) | [2] |
Basic average number of shares outstanding | 165.5 | [2] | 160.6 | [2] | 155.2 | [2] |
Diluted average number of shares outstanding | 171.3 | [2] | 166.1 | [2] | 155.2 | [2] |
Dividends declared per common share | $0.42 | ' | ' | |||
[1] | Based on country of destination | |||||
[2] | On September 27, 2011, shares of Home & Security common stock (par value $0.01 per share) were split from 1,000 shares issued and outstanding and 100,000 shares authorized to approximately 155.1 million shares issued and outstanding and 750 million shares authorized. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of Home & Security shares for the stock split for periods prior to September 27, 2011. |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | Sep. 27, 2011 |
Common stock, shares issued | 155,100,000 |
Common stock, shares outstanding | 155,052,629 |
Common stock, shares authorized | 750,000,000 |
Before Stock Split | ' |
Common Stock, par value | 0.01 |
Common stock, shares issued | 1,000 |
Common stock, shares outstanding | 1,000 |
Common stock, shares authorized | 100,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
NET INCOME (LOSS) | $230.90 | $119.70 | ($34.60) | |||
Other comprehensive income (loss), before tax: | ' | ' | ' | |||
Foreign currency translation adjustments | -10.2 | 8.4 | -1.8 | |||
Unrealized gains (losses) on derivatives: | ' | ' | ' | |||
Unrealized holding gains arising during period | 3 | 0.4 | 0.7 | |||
Less: reclassification adjustment for gains included in net income | -2 | -0.8 | -1.9 | |||
Unrealized gains (losses) on derivatives | 1 | -0.4 | -1.2 | |||
Defined benefit plans: | ' | ' | ' | |||
Prior service credit arising during period | 34.7 | 29.4 | 1.7 | |||
Net actuarial gain (loss) arising during period | 111.3 | -7 | -24.6 | |||
Transfer of corporate plan from Fortune Brands, Inc. | ' | ' | -5.3 | |||
Less: amortization of prior service (credit) cost included in net periodic pension cost | -27.3 | -2.3 | 0.7 | |||
Defined benefit plans | 118.7 | 20.1 | -27.5 | |||
Other comprehensive income (loss), before tax | 109.5 | 28.1 | -30.5 | |||
Income tax (expense) benefit related to items of other comprehensive income | -44.7 | [1] | -8.1 | [1] | 11.6 | [1] |
Other comprehensive income (loss), net of tax | 64.8 | 20 | -18.9 | |||
COMPREHENSIVE INCOME (LOSS) | 295.7 | 139.7 | -53.5 | |||
Less: comprehensive income attributable to noncontrolling interest | 1.2 | 1 | 1 | |||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HOME & SECURITY | $294.50 | $138.70 | ($54.50) | |||
[1] | Income tax (expense) benefit on unrealized gains (losses) on derivatives of $(0.2) million, $0.1 million and $0.5 million and on defined benefit plans of $(44.5) million, $(8.2) million and $11.1 million in 2013, 2012 and 2011, respectively. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized gains (losses) on derivatives, tax | ($0.20) | $0.10 | $0.50 |
Defined benefit plans, tax | ($44.50) | ($8.20) | $11.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $241.40 | $336 | ||
Accounts receivable less allowances for discounts, doubtful accounts and returns | 477.1 | 381.7 | ||
Inventories | 471.6 | 357.2 | ||
Other current assets | 137.3 | 153 | ||
TOTAL CURRENT ASSETS | 1,327.40 | 1,227.90 | ||
Property, plant and equipment, net of accumulated depreciation | 534.4 | 509.4 | ||
Goodwill | 1,519.90 | [1] | 1,381.40 | [1] |
Other intangible assets, net of accumulated amortization | 752.9 | 683.6 | ||
Other assets | 43.5 | 71.6 | ||
TOTAL ASSETS | 4,178.10 | 3,873.90 | ||
Current liabilities | ' | ' | ||
Notes payable to banks | 6 | 5.5 | ||
Current portion of long-term debt | ' | 22.5 | ||
Accounts payable | 343.8 | 287 | ||
Other current liabilities | 388.9 | 317.4 | ||
TOTAL CURRENT LIABILITIES | 738.7 | 632.4 | ||
Long-term debt | 350 | 297.5 | ||
Deferred income taxes | 245.8 | 224 | ||
Accrued defined benefit plans | 108.5 | 252.7 | ||
Other non-current liabilities | 82 | 82.6 | ||
TOTAL LIABILITIES | 1,525 | 1,489.20 | ||
Equity | ' | ' | ||
Common stock | 1.7 | [2] | 1.6 | [2] |
Paid-in capital | 2,431.30 | 2,324.80 | ||
Accumulated other comprehensive income | 95.4 | 30.6 | ||
Retained earnings | 200.8 | 41 | ||
Treasury stock | -79.8 | -16.9 | ||
TOTAL HOME & SECURITY EQUITY | 2,649.40 | 2,381.10 | ||
Noncontrolling interests | 3.7 | 3.6 | ||
TOTAL EQUITY | 2,653.10 | 2,384.70 | ||
TOTAL LIABILITIES AND EQUITY | $4,178.10 | $3,873.90 | ||
[1] | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). | |||
[2] | Par value $0.01 per share, 169.1 million shares and 164.6 million shares issued at December 31, 2013 and 2012, respectively. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 27, 2011 |
In Millions, except Per Share data, unless otherwise specified | |||
Common Stock, par value | $0.01 | $0.01 | ' |
Common stock, shares issued | 169.1 | 164.6 | 155.1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
NET INCOME (LOSS) | $230.90 | $119.70 | ($34.60) |
Non-cash expense (income): | ' | ' | ' |
Depreciation | 77.2 | 90.2 | 97.1 |
Amortization | 13.2 | 11.1 | 14.4 |
Stock-based compensation | 26.1 | 26.9 | 15.7 |
Restructuring charges | 0.2 | ' | 1.8 |
Loss (gain) on sale of property, plant and equipment | 0.8 | -2.9 | 1.7 |
Asset impairment charges | 27.4 | 15.8 | 90 |
Recognition of actuarial losses | 5.2 | 42.2 | 80 |
Deferred taxes | -12.7 | -4 | -62.4 |
Changes in assets and liabilities including effects subsequent to acquisitions: | ' | ' | ' |
(Increase) decrease in accounts receivable | -58.5 | -33.5 | 26.9 |
Increase in inventories | -89.7 | -18.7 | -4.6 |
Increase in accounts payable | 39.8 | 22.1 | 6.7 |
Decrease (increase) in other assets | 32.2 | 5.5 | -40.7 |
Increase (decrease) in accrued taxes | 5.7 | -12.8 | 50.4 |
Increase (decrease) in accrued expenses and other liabilities | ' | 21.2 | -67 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 297.8 | 282.8 | 175.4 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -96.7 | -75 | -68.5 |
Proceeds from the disposition of assets | 2.2 | 13.5 | 3.5 |
Acquisitions, net of cash acquired | -302 | -19.5 | -6 |
Other investing activities | -0.2 | -5.7 | ' |
NET CASH USED IN INVESTING ACTIVITIES | -396.7 | -86.7 | -71 |
FINANCING ACTIVITIES | ' | ' | ' |
Increase in short-term debt | 1.3 | 1.9 | 1.4 |
Issuance of long-term debt | 220 | 70 | 510 |
Repayment of long-term debt | -190 | -156.8 | -120 |
Proceeds from the exercise of stock options | 50.7 | 104.3 | 11 |
Excess tax benefit from the exercise of stock-based compensation | 26.8 | 12.2 | 0.9 |
Dividends to stockholders | -49.9 | ' | ' |
Treasury stock purchases | -52.1 | -8.8 | ' |
Net loan payments to Fortune Brands, Inc. | ' | ' | 91.2 |
Dividends to Fortune Brands, Inc. | ' | ' | -548.9 |
Fortune Brands, Inc. (payment) capital contribution | ' | -6 | 15.9 |
Other financing activities, net | -2.7 | -1.1 | -5 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 4.1 | 15.7 | -43.5 |
Effect of foreign exchange rate changes on cash | 0.2 | 3.4 | -0.8 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -94.6 | 215.2 | 60.1 |
Cash and cash equivalents at beginning of year | 336 | 120.8 | 60.7 |
Cash and cash equivalents at end of year | 241.4 | 336 | 120.8 |
Cash paid during the year for: | ' | ' | ' |
Interest paid | 6.7 | 7.1 | 2.6 |
Dividends declared but not paid | 20 | ' | ' |
Related Party | ' | ' | ' |
Cash paid during the year for: | ' | ' | ' |
Interest paid | ' | ' | 63.7 |
Taxing authorities | ' | ' | ' |
Cash paid during the year for: | ' | ' | ' |
Income taxes paid to (received from) | 89.4 | 55.9 | 23 |
Fortune Brands, Inc. | ' | ' | ' |
Cash paid during the year for: | ' | ' | ' |
Income taxes paid to (received from) | ($1.20) | $3 | $7.60 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings (Deficit) | Treasury Stock | Non- controlling Interests | |
In Millions, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2010 | ($56.70) | ' | $703.30 | $29.50 | ($793) | ' | $3.50 | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | -34.6 | ' | ' | ' | -35.6 | ' | 1 | |
Other comprehensive income | -18.9 | ' | ' | -18.9 | ' | ' | ' | |
Stock-based compensation | 26.6 | ' | 26.6 | ' | ' | ' | ' | |
Tax benefit on exercise of stock options | 1.2 | ' | 1.2 | ' | ' | ' | ' | |
Dividends declared to Fortune Brands, Inc. | -574.3 | ' | -574.3 | ' | ' | ' | ' | |
Change in legal structure | [1] | ' | ' | -750.9 | ' | 750.9 | ' | ' |
Fortune Brands, Inc. capital contribution | [2] | 2,782.10 | ' | 2,782.10 | ' | ' | ' | ' |
Common stock split | ' | 1.6 | -1.6 | ' | ' | ' | ' | |
Treasury stock purchase | -0.1 | ' | ' | ' | ' | -0.1 | ' | |
Dividends paid to noncontrolling interests | -0.8 | ' | ' | ' | ' | ' | -0.8 | |
Ending Balance at Dec. 31, 2011 | 2,124.50 | 1.6 | 2,186.40 | 10.6 | -77.7 | -0.1 | 3.7 | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | 119.7 | ' | ' | ' | 118.7 | ' | 1 | |
Other comprehensive income | 20 | ' | ' | 20 | ' | ' | ' | |
Stock options exercised | 104.4 | ' | 104.4 | ' | ' | ' | ' | |
Stock-based compensation | 19.4 | ' | 27.1 | ' | ' | -7.7 | ' | |
Tax benefit on exercise of stock options | 12 | ' | 12 | ' | ' | ' | ' | |
Separation-related adjustments | -5.1 | ' | -5.1 | ' | ' | ' | ' | |
Treasury stock purchase | -9.1 | ' | ' | ' | ' | -9.1 | ' | |
Dividends paid to noncontrolling interests | -1.1 | ' | ' | ' | ' | ' | -1.1 | |
Ending Balance at Dec. 31, 2012 | 2,384.70 | 1.6 | 2,324.80 | 30.6 | 41 | -16.9 | 3.6 | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | 230.9 | ' | ' | ' | 229.7 | ' | 1.2 | |
Other comprehensive income | 64.8 | ' | ' | 64.8 | ' | ' | ' | |
Stock options exercised | 50.8 | 0.1 | 50.7 | ' | ' | ' | ' | |
Stock-based compensation | 14.5 | ' | 25.7 | ' | ' | -11.2 | ' | |
Tax benefit on exercise of stock options | [3] | 30.1 | ' | 30.1 | ' | ' | ' | ' |
Treasury stock purchase | -51.7 | ' | ' | ' | ' | -51.7 | ' | |
Dividends ($0.42 per Common share) | -69.9 | ' | ' | ' | -69.9 | ' | ' | |
Dividends paid to noncontrolling interests | -1.1 | ' | ' | ' | ' | ' | -1.1 | |
Ending Balance at Dec. 31, 2013 | $2,653.10 | $1.70 | $2,431.30 | $95.40 | $200.80 | ($79.80) | $3.70 | |
[1] | In August 2011, the Company converted from a Delaware limited liability company to a Delaware corporation. As a result, the retained deficit is included as additional paid-in-capital in accordance with SEC Staff Accounting Bulletin Topic 4:B. | |||||||
[2] | The allocation of general and administrative expenses, stock-based compensation and the tax benefit on exercise of options provided by Fortune Brands, Inc. (net of tax) is included in the Consolidated Statements of Income and treated as a capital contribution. In addition, in 2011, Fortune Brands, Inc. made equity contributions totaling $2.7 billion to the Company. Any remaining related party loan balances to/from Fortune Brands, Inc. were capitalized immediately prior to the Separation. Refer to Note 15, "Related Party Transactions." | |||||||
[3] | Includes $4.1 million of adjustments related to prior years' vested and unvested restricted stock units. |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Dividends per Common share | $0.42 |
Adjustments related to prior years' vested and unvested Restricted Stock Units | $4.10 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Background and Basis of Presentation | ' |
1. Background and Basis of Presentation | |
The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction, security applications and storage. References to “Home & Security,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. | |
Separation On September 27, 2011, the board of directors of Fortune Brands, Inc. (our “Former Parent”) approved the spin-off of Home & Security into an independent, publicly-traded company (the “Separation”). On October 3, 2011, the Separation was completed, with the stockholders of our Former Parent receiving one share of Home & Security common stock for each share of Former Parent common stock held on September 20, 2011. Immediately prior to the Separation, on October 3, 2011, Home & Security paid a dividend to our Former Parent in the amount of $500 million. In addition, the Company paid a dividend of $48.9 million to our Former Parent prior to the Separation on October 3, 2011 and made a payment of $6.0 million to our Former Parent on January 3, 2012. These two latter payments represented U.S. cash balances generated from August 26, 2011, the date of the conversion of the Company from a Delaware limited liability company to a Delaware corporation, through the date of the Separation. Following the Separation, our Former Parent changed its name to Beam Inc. and retained no ownership interest in Home & Security. On October 4, 2011, our common stock began trading “regular-way” on the New York Stock Exchange under the ticker symbol “FBHS”. | |
Basis of Presentation The consolidated financial statements include the accounts of Home & Security and its majority-owned subsidiaries. The Company’s subsidiaries operate on a 52 or 53-week fiscal year. | |
The consolidated financial statements included in this Annual Report on Form 10-K were derived principally from the consolidated financial statements of the Company. Prior to the Separation, the Company was a wholly-owned subsidiary of our Former Parent. Our financial statements for periods prior to the Separation were derived from the historical results of operations and historical basis of assets and liabilities, and include allocations of certain general corporate expenses of our Former Parent incurred directly by our Former Parent. These allocated expenses include costs associated with legal, finance, treasury, accounting, internal audit and general management services and are included in “Corporate” in the accompanying segment information. During the year ended December 31, 2011, these allocations totaled $23.4 million. The 2011 allocation is for nine months only (January 1, 2011 through the date of the Separation) because Home & Security became an independent company on October 3, 2011. Management believes that the assumptions and methodologies underlying the allocation of these general corporate expenses are reasonable. However, such expenses may not be indicative of the actual level of expense that would have been incurred by the Company if it had operated as a stand-alone company. The consolidated financial statements included in this Annual Report on Form 10-K for periods prior to the Separation may not necessarily reflect the Company’s results of operations, financial condition and cash flows had the Company been a stand-alone company during the periods presented. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Significant Accounting Policies | ' | ||||||
2. Significant Accounting Policies | |||||||
Use of Estimates The presentation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates. | |||||||
Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. | |||||||
Allowances for Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowances for doubtful accounts represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency), or discounts related to early payment of accounts receivables by our customers. The allowances include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for doubtful accounts was $6.8 million and $9.0 million as of December 31, 2013 and 2012, respectively. | |||||||
Inventories The majority of our inventories are accounted for using the first-in, first-out inventory method. Inventory provisions are recorded to reduce inventory to the lower of cost or market value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes. | |||||||
We also use the last-in, first-out (“LIFO”) inventory method in those product groups in which metals inventories comprise a significant portion of our inventories. LIFO inventories at December 31, 2013 and 2012 were $228.8 million (with a current cost of $257.5 million) and $163.6 million (with a current cost of $193.9 million), respectively. | |||||||
Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value at the time the assets are being actively marketed for sale. As of December 31, 2013 and 2012, the carrying value of assets held for sale was not material. Estimated useful lives of the related assets are as follows: | |||||||
Buildings and leasehold improvements | 15 to 40 years | ||||||
Machinery and equipment | 3 to 10 years | ||||||
Software | 3 to 7 years | ||||||
Long-lived Assets In accordance with Accounting Standards Codification (“ASC”) requirements for Property, Plant and Equipment, a long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. | |||||||
Goodwill and Indefinite-lived Intangible Assets In accordance with ASC requirements for Intangibles — Goodwill and Other, goodwill is tested for impairment at least annually in the fourth quarter, and written down when impaired. An interim impairment test is performed if an event occurs or conditions change that would more likely than not reduce the fair value of the reporting unit below the carrying value. | |||||||
We evaluate the recoverability of goodwill using a weighting of the income (80%) and market (20%) approaches. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates, and then discounting the future cash flows at a market-participant-derived weighted-average cost of capital. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our projection for the U.S. home products market is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine each reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below the operating segment. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying value of a reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of a reporting unit is estimated based on a hypothetical allocation of each reporting unit’s fair value to all of its underlying assets and liabilities. | |||||||
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. In addition, beginning for 2012 year-end intangible asset impairment testing, we adopted the new Accounting Standards Update that allows us to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. | |||||||
The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. Such events may include, but are not limited to, the impact of the economic environment; a material negative change in relationships with significant customers; or strategic decisions made in response to economic and competitive conditions. | |||||||
Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. | |||||||
We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation — Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. Compensation increases reflect expected future compensation trends. For postretirement benefits, our health care trend rate assumption is based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 12, “Defined Benefit Plans,” are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. | |||||||
Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC requirements for Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur. | |||||||
Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting bases and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. | |||||||
We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances, and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2013, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $23.7 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $2.5 million to $3.5 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings. | |||||||
Revenue Recognition Revenue is recorded when persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectibility is reasonably assured. Revenue is recorded net of applicable provisions for discounts, returns and allowances. We record estimates for reductions to revenue for customer programs and incentives, including price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized. Sales returns are based on historical returns, current trends and forecasts of product demand. | |||||||
Cost of Products Sold Cost of products sold includes all costs to make products saleable, such as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. | |||||||
Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for in either “net sales” or the category “selling, general and administrative expenses” at the time the program is initiated and/or the revenue is recognized. The costs are predominantly recognized in “net sales” and include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, level of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in “selling, general and administrative expenses” include product displays, point of sale materials, and media production costs. The costs included in the “selling, general and administrative expenses” category were $46.0 million, $46.2 million and $47.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||
Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $189.7 million, $181.3 million and $164.1 million in 2013, 2012 and 2011, respectively. | |||||||
Advertising costs, which amounted to $205.3 million, $182.4 million and $180.4 million in 2013, 2012 and 2011, respectively, are principally expensed as incurred. Advertising costs include product displays, media production costs, and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $56.7 million, $49.9 million and $49.8 million in 2013, 2012 and 2011, respectively. Advertising costs recorded in selling, general and administrative expenses were $148.6 million, $132.5 million and $130.6 million in 2013, 2012 and 2011, respectively. | |||||||
Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $55.6 million, $47.0 million and $35.1 million in 2013, 2012 and 2011, respectively, are expensed as incurred. | |||||||
Stock-based Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance award is based on the stock price at the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the share price at the date of grant. See Note 11, “Stock-Based Compensation,” for additional information. | |||||||
Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Home & Security by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. In periods prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share because no Home & Security stock-based awards were outstanding prior to the Separation. See Note 20, “Earnings Per Share,” for further discussion. | |||||||
Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the “accumulated other comprehensive income” (“AOCI”) caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into functional currency with resulting transaction gains or losses recorded in other expense (income), net. | |||||||
Derivative Financial Instruments In accordance with ASC requirements for Derivatives and Hedging, all derivatives are recognized as either assets or liabilities on the balance sheet and measurement of those instruments is at fair value. If the derivative is designated as a fair value hedge and is highly effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded directly to a separate component of AOCI, and are recognized in the consolidated statement of income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. | |||||||
Net deferred currency gains of $2.3 million and $0.6 million were reclassified into earnings for the years ended December 31, 2013 and 2012, respectively. Net deferred currency losses of $0.5 million were reclassified into earnings in 2011. Based on foreign exchange rates as of December 31, 2013, we estimate that $1.3 million of net currency derivative gains included in AOCI as of December 31, 2013 will be reclassified to earnings within the next twelve months. | |||||||
Recently Issued Accounting Standards | |||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides explicit guidance on presentation in financial statements. The amendment is effective for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements. | |||||||
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity | |||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 clarifies the accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The ASU also clarifies the treatment of business combinations achieved in stages involving a foreign entity. The amendment is effective prospectively for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements. |
Balance_Sheet_Information
Balance Sheet Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Information | ' | ||||||||
3. Balance Sheet Information | |||||||||
Supplemental information on our year-end consolidated balance sheets is as follows: | |||||||||
(In millions) | 2013 | 2012 | |||||||
Inventories: | |||||||||
Raw materials and supplies | $ | 184.6 | $ | 144.3 | |||||
Work in process | 52.5 | 38.6 | |||||||
Finished products | 234.5 | 174.3 | |||||||
Total inventories | $ | 471.6 | $ | 357.2 | |||||
Property, plant and equipment: | |||||||||
Land and improvements | $ | 53.8 | $ | 47.6 | |||||
Buildings and improvements to leaseholds | 374.5 | 324.5 | |||||||
Machinery and equipment | 1,066.30 | 1,056.30 | |||||||
Construction in progress | 61.5 | 62.8 | |||||||
Property, plant and equipment, gross | 1,556.10 | 1,491.20 | |||||||
Less: accumulated depreciation | 1,021.70 | 981.8 | |||||||
Property, plant and equipment, net of accumulated depreciation | $ | 534.4 | $ | 509.4 | |||||
Other current liabilities: | |||||||||
Accrued salaries, wages and other compensation | $ | 128.9 | $ | 109 | |||||
Accrued customer programs | 122.6 | 102.8 | |||||||
Other accrued expenses | 137.4 | 105.6 | |||||||
Total other current liabilities | $ | 388.9 | $ | 317.4 |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Acquisitions | ' | ||||||||
4. Acquisitions | |||||||||
In June 2013, our Kitchen & Bath Cabinetry business acquired 100% of the voting equity of Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops for a purchase price of approximately $302 million, subject to certain post-closing adjustments. We paid the purchase price using a combination of cash on hand and borrowings under our existing credit facilities. This acquisition greatly expanded our offerings of bathroom cabinetry products. Net sales of WoodCrafters in the last six months of 2013 were approximately $115 million and WoodCrafters’ operating income was not material to the Company. | |||||||||
The following table summarizes the preliminary allocation of the purchase price to estimated fair values of assets acquired and liabilities assumed as of the date of the acquisition. This allocation is expected to change after asset and liability valuations are finalized. | |||||||||
(In millions) | |||||||||
Accounts receivable | $ | 41.4 | |||||||
Inventories | 25.4 | ||||||||
Property, plant and equipment | 29.6 | ||||||||
Goodwill | 142.3 | ||||||||
Identifiable intangible assets | 89.4 | ||||||||
Other assets | 8.9 | ||||||||
Total assets | 337 | ||||||||
Other current liabilities and accruals | 35 | ||||||||
Net assets acquired | $ | 302 | |||||||
As of the acquisition date, substantially all of the acquired goodwill was tax deductible. Goodwill primarily represents expected supply chain synergies. Identifiable intangible assets primarily consisted of customer relationships ($75.9 million) and technology ($9.6 million). The useful lives of these identifiable intangible assets are 18 years and 10 years, respectively. | |||||||||
The following unaudited pro forma summary presents consolidated financial information as if WoodCrafters had been acquired on January 1, 2012. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and WoodCrafters. The pro forma results include adjustments for the impact of a preliminary allocation of the purchase price and interest expense associated with debt that would have been incurred in connection with the acquisition. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2012. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. | |||||||||
(In millions) | 2013 | 2012 | |||||||
Net sales | $ | 4,264.80 | $ | 3,771.00 | |||||
Net income attributable to Home & Security | 240.8 | 126.6 | |||||||
Basic earnings per common share | $ | 1.45 | $ | 0.79 | |||||
Diluted earnings per common share | $ | 1.41 | $ | 0.76 | |||||
In December 2012, our Security & Storage business acquired a company for approximately $20 million in cash. Purchase price adjustments and the allocation of the purchase price were finalized in the first quarter of 2013. Our December 31, 2012 balance sheet was retrospectively adjusted to reflect the purchase price adjustments in accordance with ASC requirements for Business Combinations, in particular a reduction in goodwill of $5.6 million and an increase in definite-lived intangible assets of $5.9 million. The acquisition was not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements. | |||||||||
In the third quarter of 2011, we acquired a regional windows business for $6 million in cash. This acquisition was not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements. |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Identifiable Intangible Assets | ' | ||||||||||||||||||||||||
5. Goodwill and Identifiable Intangible Assets | |||||||||||||||||||||||||
The change in the net carrying amount of goodwill by segment was as follows: | |||||||||||||||||||||||||
(In millions) | Kitchen & | Plumbing & | Advanced | Security & | Total | ||||||||||||||||||||
Bath | Accessories | Material | Storage | Goodwill | |||||||||||||||||||||
Cabinetry | Windows & | ||||||||||||||||||||||||
Door | |||||||||||||||||||||||||
Systems | |||||||||||||||||||||||||
Balance at December 31, 2011(a) | $ | 491.2 | $ | 569.7 | $ | 230.2 | $ | 75.5 | $ | 1,366.60 | |||||||||||||||
2012 translation adjustments | 0.6 | — | — | 0.2 | 0.8 | ||||||||||||||||||||
Acquisition-related adjustments | — | — | (1.1 | ) | 15.1 | 14 | |||||||||||||||||||
Balance at December 31, 2012(a) | $ | 491.8 | $ | 569.7 | $ | 229.1 | $ | 90.8 | $ | 1,381.40 | |||||||||||||||
2013 translation adjustments | (2.4 | ) | — | — | (1.4 | ) | (3.8 | ) | |||||||||||||||||
Acquisition-related adjustments | 142.3 | — | — | — | 142.3 | ||||||||||||||||||||
Balance at December 31, 2013(a) | $ | 631.7 | $ | 569.7 | $ | 229.1 | $ | 89.4 | $ | 1,519.90 | |||||||||||||||
(a) | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). | ||||||||||||||||||||||||
Amortizable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, 5 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion and other relevant factors. | |||||||||||||||||||||||||
The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||
Indefinite-lived intangible assets — tradenames | $ | 597.2 | $ | (42.0 | )(a) | $ | 555.2 | $ | 603.4 | $ | (42.0 | )(a) | $ | 561.4 | |||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Tradenames | 19.6 | (7.4 | ) | 12.2 | 17.8 | (6.9 | ) | 10.9 | |||||||||||||||||
Customer and contractual relationships | 348.6 | (182.5 | ) | 166.1 | 274.2 | (174.4 | ) | 99.8 | |||||||||||||||||
Patents/proprietary technology | 63.2 | (43.8 | ) | 19.4 | 52.6 | (41.1 | ) | 11.5 | |||||||||||||||||
Total | 431.4 | (233.7 | ) | 197.7 | 344.6 | (222.4 | ) | 122.2 | |||||||||||||||||
Total identifiable intangibles | $ | 1,028.60 | $ | (275.7 | ) | $ | 752.9 | $ | 948 | $ | (264.4 | ) | $ | 683.6 | |||||||||||
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets. | ||||||||||||||||||||||||
The decrease in the net book value of indefinite-lived intangible assets, principally tradenames, from December 31, 2012 to December 31, 2013 of $6.2 million was due to foreign currency adjustments. The $86.8 million increase in gross amortizable identifiable intangible assets was predominantly due to the acquisition of WoodCrafters ($89.4 million). | |||||||||||||||||||||||||
We expect to record intangible amortization of approximately $16 million in 2014, trending down to $12 million in 2018. | |||||||||||||||||||||||||
We review indefinite-lived intangible assets for impairment annually in the fourth quarter, as well as whenever market or business events indicate there may be a potential impact on a specific intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. | |||||||||||||||||||||||||
As of December 31, 2013, the fair value of each of our reporting units except for one of the reporting units in the Advanced Material Doors & Windows segment exceeded the carrying value by a substantial margin. The estimated excess fair value of this reporting unit is less than 10%. In addition, for one of the tradenames within this reporting unit, fair value exceeded its carrying value by less than 10%. Accordingly, a reduction in the estimated fair value of this reporting unit or tradename could trigger an impairment. As of December 31, 2013, the book value of the goodwill of this reporting unit and this tradename was $86.1 million and $58.4 million, respectively. Factors influencing fair value estimates of this reporting unit that could trigger future impairment are enumerated in the final paragraph of this footnote. | |||||||||||||||||||||||||
In the fourth quarter of 2012, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $15.8 million. These charges were recorded on the asset impairment charges line of the income statement. The impairment charges in our Advanced Material Windows & Door Systems segment were $9.9 million and the impairment charge in our Kitchen & Bath Cabinetry segment was $5.9 million. These charges were primarily the result of an increase in our market-participant cost of capital discount rates. One tradename in the Kitchen & Bath Cabinetry segment was also impacted by reduced revenue growth expectations for high-end discretionary cabinet purchases developed during our annual planning process that was completed in the fourth quarter. | |||||||||||||||||||||||||
In the fourth quarter of 2011, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $90.0 million in our Advanced Material Windows & Door Systems segment. These charges were primarily the result of reduced revenue growth and profit margin expectations associated with our Simonton tradename. Our revenue and profit margin expectations were lowered based upon the results of our annual planning process that was completed in the fourth quarter of 2011 and included consideration of our actual fourth quarter 2011 results, including lower 2011 sales due to the expiration of U.S. tax incentives for purchases of energy-efficient home products, as well as our projection of the recovery of the U.S. home products market. | |||||||||||||||||||||||||
The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that lag our assumptions, actions of key customers, volatility of discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, and lower levels of discretionary consumer spending. In addition, future decisions we could make with regard to acquisitions and divestitures could trigger a requirement to measure certain assets as held for sale with the resulting change in measurement standard potentially triggering impairments. While our cash flow projections used to assess impairment of our goodwill and other intangible assets held for use are influenced by a number of variables, they are most significantly influenced by our projection for the continued recovery of the U.S. home products markets in the next three years and our ability to execute on various planned cost reduction initiatives supporting operating income improvements forecasted to occur over the next three years. We evaluate our projection of the U.S. home products market periodically and in connection with our annual operating plans finalized in the fourth quarter of each year. The U.S. home products market is highly dependent on U.S. new home construction and the rate of spending on repair and remodel activities. Our projection for the U.S. home products markets is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, and the rate of home foreclosures. Significant changes in these and other factors could cause us to change our cash flow projections in future periods which could trigger impairment of goodwill or indefinite-lived intangible assets in the period in which such changes occur. |
Asset_Impairment_Charges
Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2013 | |
Asset Impairment Charges | ' |
6. Asset Impairment Charges | |
At the end of the third quarter of 2013, our Kitchen and Bath Cabinetry segment completed an evaluation of its information technology strategy. The evaluation considered opportunities arising from the improving U.S. home market conditions. As a result of this evaluation, the segment abandoned certain software developed for internal use in order to redirect financial resources toward developing more flexible systems that provide industry leading content for consumers and more advanced tools for designers to deliver a superior purchasing experience for their customers. The abandonment of this internal use software resulted in a pre-tax impairment charge of $21.2 million, which was recorded in operating income on the asset impairment charges line of the income statement and reduced property, plant and equipment. |
External_Debt_and_Financing_Ar
External Debt and Financing Arrangements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
External Debt and Financing Arrangements | ' | ||||||||
7. External Debt and Financing Arrangements | |||||||||
We have a $650 million committed revolving credit facility, as well as a $350 million term loan. In July 2013, these facilities were renewed under essentially the same terms and conditions, extending the maturity date from October 2016 to July 2018. On December 31, 2013 and 2012, our outstanding borrowings in aggregate under the revolving credit facility and term loan were $350.0 million and $320.0 million, respectively. The interest rates under these facilities are variable based on LIBOR at the time of the borrowing and the Company’s leverage as measured by a debt to Adjusted EBITDA ratio. Based upon the Company’s debt to Adjusted EBITDA ratio, the Company’s borrowing rate could range from LIBOR + 1.0% to LIBOR + 2.0%. The credit facilities also include a minimum Consolidated Interest Coverage Ratio requirement of 3.0 to 1.0. The Consolidated Interest Coverage Ratio is defined as the ratio of Adjusted EBITDA to Consolidated Interest Expense. Adjusted EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other adjustments. Consolidated Interest Expense is as disclosed in our financial statements. The credit facilities also include a Maximum Leverage Ratio of 3.5 to 1.0 as measured by the ratio of our debt to Adjusted EBITDA. The Maximum Leverage Ratio is permitted to increase to 3.75 to 1.0 for three succeeding quarters in the event of an acquisition. At December 31, 2013, we were in compliance with our debt covenant ratios. | |||||||||
At December 31, 2013 and 2012, there were $6.0 million and $5.5 million of external short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes. These amounts pertained to uncommitted bank lines of credit in China and India, which provide for unsecured borrowings for working capital of up to $22.7 million in aggregate, as of December 31, 2013 and 2012. The weighted-average interest rates on these borrowings were 12.3%, 13.0 % and 14.3% in 2013, 2012 and 2011, respectively. | |||||||||
The components of external long-term debt were as follows: | |||||||||
(In millions) | 2013 | 2012 | |||||||
$650 million revolving credit agreement due July 2018 | $ | — | $ | — | |||||
$350 million term loan due July 2018 | 350 | 320 | |||||||
Total debt | 350 | 320 | |||||||
Less: current portion | — | 22.5 | |||||||
Total long-term debt | $ | 350 | $ | 297.5 | |||||
Term loan amortization payments during the next five years as of December 31, 2013 are zero in 2014, $17.5 million in 2015, $35.0 million in 2016, $35.0 million in 2017 and $262.5 million in 2018. | |||||||||
In our debt agreements, there are normal and customary events of default which would permit the lenders to accelerate the debt if not cured within applicable grace periods, such as failure to pay principal or interest when due or a change in control of the Company. There were no events of default as of December 31, 2013. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Financial Instruments | ' | ||||||||||||||
8. Financial Instruments | |||||||||||||||
We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. | |||||||||||||||
Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. From time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. There were no material commodity swap contracts outstanding for the years ended December 31, 2013 and 2012. | |||||||||||||||
We enter into foreign exchange contracts primarily to hedge forecasted sales and purchases denominated in select foreign currencies, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange contracts correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. | |||||||||||||||
For derivative instruments that are designated as fair value hedges, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized on the same line of the statement of income. The effective portions of cash flow hedges are reported in OCI and are recognized in the statement of income when the hedged item affects earnings. The ineffective portion of all hedges is recognized in current period earnings. In addition, changes in the fair value of all economic hedge transactions are immediately recognized in current period earnings. Our primary foreign currency hedge contracts pertain to the Canadian dollar, the Chinese yuan and the Mexican peso. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2013 was $182.1 million, representing a net settlement receivable of $1.8 million. Based on foreign exchange rates as of December 31, 2013, we estimate that $1.3 million of net foreign currency derivative gains included in OCI as of December 31, 2013 will be reclassified to earnings within the next twelve months. | |||||||||||||||
The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2013 and 2012 were: | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Location | 2013 | 2012 | ||||||||||||
Assets: | |||||||||||||||
Foreign exchange contracts | Other current assets | $ | 2.1 | $ | 1 | ||||||||||
Commodity contracts | Other current assets | — | 0.2 | ||||||||||||
Net investment hedges | Other current assets | 0.6 | — | ||||||||||||
Total assets | $ | 2.7 | $ | 1.2 | |||||||||||
Liabilities: | |||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 0.3 | $ | 0.8 | ||||||||||
Commodity contracts | Other current liabilities | — | 0.1 | ||||||||||||
Total liabilities | $ | 0.3 | $ | 0.9 | |||||||||||
The effects of derivative financial instruments on the consolidated statements of income in 2013, 2012 and 2011 were: | |||||||||||||||
(In millions) | Gain (Loss) Recognized in Income | ||||||||||||||
Type of hedge | Location | 2013 | 2012 | 2011 | |||||||||||
Cash flow | Net sales | $ | — | $ | 0.2 | $ | (0.6 | ) | |||||||
Cost of products sold | 2 | 0.6 | 2.5 | ||||||||||||
Fair value | Other income (expense), net | 1.2 | (0.3 | ) | — | ||||||||||
Total | $ | 3.2 | $ | 0.5 | $ | 1.9 | |||||||||
For cash flow hedges that are effective, the amounts recognized in OCI were $3.0 million and $0.4 million in 2013 and 2012, respectively. In the years ended December 31, 2013, 2012 and 2011, the ineffective portion of cash flow hedges recognized in other expense (income), net, was insignificant. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
9. Fair Value Measurements | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Fair Value | |||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||
Assets: | |||||||||||||||||
Derivative asset financial instruments (level 2) | $ | 2.7 | $ | 1.2 | |||||||||||||
Deferred compensation program assets (level 1) | 3.5 | 3.6 | |||||||||||||||
Total assets | $ | 6.2 | $ | 4.8 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative liability financial instruments (level 2) | $ | 0.3 | $ | 0.9 | |||||||||||||
The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value. | |||||||||||||||||
ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs, due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3. | |||||||||||||||||
The carrying value of the Company’s long-term debt as of December 31, 2013 and 2012 of $350.0 million and $320.0 million, respectively, approximated its fair value. The fair value of the Company’s long-term debt was determined primarily by using broker quotes, which are level 2 inputs. | |||||||||||||||||
In 2013, 2012 and 2011, we recorded pre-tax intangible asset impairment charges of $21.2 million, $15.8 million and $90.0 million, respectively. Refer to Note 5, “Goodwill and Identifiable Intangible Assets,” and Note 6, “Asset Impairment Charges,” for additional information. In accordance with ASC requirements for Fair Value Measurements, below is the disclosure for assets measured at fair value on a non-recurring basis. There were no losses for indefinite-lived intangible assets in 2013. | |||||||||||||||||
(in millions) | 2012 | 2011 | |||||||||||||||
Fair Value Measurements Using | Total | Fair Value Measurements Using | Total | ||||||||||||||
Significant Unobservable | Losses | Significant Unobservable | Losses | ||||||||||||||
Inputs (level 3) | Inputs (level 3) | ||||||||||||||||
Indefinite-lived intangible assets | $ | 249.7 | $ | 15.8 | $ | 227 | $ | 90 |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Capital Stock | ' | ||||||||||||||||
10. Capital Stock | |||||||||||||||||
The Company has 750 million authorized shares of common stock, par value $0.01 per share. The number of shares of common stock and treasury stock and the share activity for 2013 and 2012 were as follows: | |||||||||||||||||
Common Shares | Treasury Shares | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at the beginning of the year | 163,855,647 | 156,008,132 | 700,102 | 3,357 | |||||||||||||
Stock plan shares issued | 4,516,507 | 8,544,260 | — | — | |||||||||||||
Shares surrendered by optionees | (296,100 | ) | (342,498 | ) | 296,100 | 342,498 | |||||||||||
Common stock repurchases | (1,408,118 | ) | (354,247 | ) | 1,408,118 | 354,247 | |||||||||||
Balance at the end of the year | 166,667,936 | 163,855,647 | 2,404,320 | 700,102 | |||||||||||||
In the second quarter of 2013, our Board of Directors declared our first dividend since becoming a publicly-traded company in October 2011, declaring a regular quarterly cash dividend of $0.10 per share of our common stock. In December 2013, our Board of Directors increased the quarterly cash dividend by 20% to $0.12 per share of our common stock. | |||||||||||||||||
The Company has 60,000,000 authorized shares of preferred stock, par value $0.01 per share. At December 31, 2013, no shares of our preferred stock were outstanding. Our Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue our preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock. | |||||||||||||||||
On July 25, 2012, our Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $150 million of shares of our outstanding common stock over the three years ending July 25, 2015. At December 31, 2013, the Company’s total remaining share repurchase authorization was $89.2 million. On February 25, 2014, our Board of Directors approved a second repurchase program that authorizes the Company to repurchase up to $150 million of shares of our outstanding common stock over the two years ending February 25, 2016. The share repurchase programs do not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||
11. Stock-Based Compensation | |||||||||||||||||||||||
As of December 31, 2013, we had awards outstanding under two Long-Term Incentive Plans, the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan (the “Plan”) and the 2011 Long-Term Incentive Plan (the “2011 Plan”, and together with the Plan the “Plans”). During 2013, our stockholders approved the Plan, which provides for the granting of stock options, performance share awards, restricted stock units, and other equity-based awards, to employees, directors and consultants. As of December 31, 2013, 8.7 million shares of common stock were authorized for issuance under the Plan. In addition, shares of common stock may be automatically added to the number of shares of common stock that may be issued as awards expire, are terminated, cancelled or forfeited, or are used to satisfy withholding taxes with respect to existing awards under the 2011 Plan. No new stock-based awards can be made under the 2011 Plan, but there are outstanding awards under the 2011 Plan that continue to vest and/or be exercisable. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares. Prior to the Separation, employees of Home & Security participated in our Former Parent’s stock-based compensation plans. | |||||||||||||||||||||||
At the time of the Separation, certain outstanding equity awards granted by our Former Parent and held by Home & Security employees were converted into Home & Security equity awards. The manner of conversion for each employee was determined based on the type of award, vesting status of the award and the employment status of the employee at the Separation date of October 3, 2011. | |||||||||||||||||||||||
Pre-tax stock-based compensation expense was as follows: | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Stock option awards | $ | 8.3 | $ | 12.5 | $ | 14.1 | |||||||||||||||||
Restricted stock units | 10.8 | 10 | 1.6 | ||||||||||||||||||||
Performance awards | 6.7 | 3.3 | — | ||||||||||||||||||||
Director awards | 0.9 | 1.1 | — | ||||||||||||||||||||
Total pre-tax expense | 26.7 | 26.9 | 15.7 | ||||||||||||||||||||
Tax benefit | 9.7 | 9.7 | 5.3 | ||||||||||||||||||||
Total after tax expense | $ | 17 | $ | 17.2 | $ | 10.4 | |||||||||||||||||
Compensation costs that were capitalized in inventory were not material. | |||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||
Restricted stock units have been granted to officers and select employees of the Company and represent the right to receive unrestricted shares of common stock subject to continued employment. Certain restricted stock units are also subject to attaining specific performance criteria. Compensation cost is recognized over the service period. We calculate the fair value of each restricted stock unit granted by using to the average of the high and low share price on the date of grant. Restricted stock units generally vest ratably over a three-year period. | |||||||||||||||||||||||
A summary of activity with respect to restricted stock units outstanding under the Plans related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows: | |||||||||||||||||||||||
Number of Restricted | Weighted-Average | ||||||||||||||||||||||
Stock Units | Grant-Date | ||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Non-vested at December 31, 2012 | 1,767,268 | $ | 14.49 | ||||||||||||||||||||
Granted | 389,350 | 34.83 | |||||||||||||||||||||
Vested | (730,421 | ) | 13.85 | ||||||||||||||||||||
Cancelled | (128,901 | ) | 17.24 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 1,297,296 | $ | 20.68 | ||||||||||||||||||||
The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2013 was approximately $14.2 million, and the weighted-average period of time over which this cost will be recognized is 1.9 years. The fair value of restricted stock units that vested during 2013 and 2012 was $26.9 million and $18.5 million, respectively. There were no restricted stock units that vested during 2011. | |||||||||||||||||||||||
Stock Option Awards | |||||||||||||||||||||||
The conversion of stock options constituted a modification of those stock option awards in accordance with ASC requirements for Compensation — Stock Compensation because certain awards did not have antidilution provisions. Stock-based compensation relating to the incremental fair value between Former Parent awards held prior to the Separation and Home & Security awards subsequent to the modification resulted in additional pre-tax stock-based compensation charges in 2011 of $2.4 million related to previously vested options, which was recorded in business separation costs in the statement of income. | |||||||||||||||||||||||
All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. Stock options granted under the Plans generally vest over a three-year period and have a maturity of ten years from the grant date. Home & Security stock options converted from awards granted by our Former Parent prior to the Separation retained the vesting schedule and expiration date of the original terms and conditions of the stock option awards. | |||||||||||||||||||||||
The fair value of Home & Security options granted subsequent to the Separation and our Former Parent’s stock options granted to Home & Security employees prior to the Separation was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: | |||||||||||||||||||||||
Home & Security | Former Parent | ||||||||||||||||||||||
Grants | Grants | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2011 | ||||||||||||||||||||
Current expected dividend yield | 1.50% | 1.50% | 1.50% | 2.00% | |||||||||||||||||||
Expected volatility | 32.00% | 35.00% | 39.00% | 33.20% | |||||||||||||||||||
Risk-free interest rate | 1.10% | 1.20% | 1.20% | 2.30% | |||||||||||||||||||
Expected term | 6.0 years | 6.0 years | 6.5 years | 5.5 years | |||||||||||||||||||
For periods presented prior to the Separation date of October 3, 2011, all stock-based compensation awards were made by our Former Parent and used our Former Parent assumptions for volatility, dividend yield and term. The weighted-average grant date fair value of stock options granted by our Former Parent during the year ended December 31, 2011 was $16.98. | |||||||||||||||||||||||
Home & Security assumptions were utilized for grants made on or after October 4, 2011. The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, at a similar stage of life and with similar market capitalization because there is not sufficient historical volatility data for Home & Security common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. It is based on the simplified method from the Securities and Exchange Commission’s safe harbor guidelines. The dividend yield is based on the Company’s estimated dividend over the expected term. The weighted-average grant date fair value of stock options granted under the Plans during the years ended December 31, 2013, 2012 and 2011 was $9.02, $5.80 and $4.20, respectively. | |||||||||||||||||||||||
A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows: | |||||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||||
Average | |||||||||||||||||||||||
Exercise | |||||||||||||||||||||||
Price | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,070,134 | $ | 13.14 | ||||||||||||||||||||
Granted | 727,200 | 33.25 | |||||||||||||||||||||
Exercised | (3,770,311 | ) | 13.48 | ||||||||||||||||||||
Expired/forfeited | (377,463 | ) | 16.6 | ||||||||||||||||||||
Outstanding at December 31, 2013 | 9,649,560 | $ | 14.39 | ||||||||||||||||||||
Options outstanding and exercisable at December 31, 2013 were as follows: | |||||||||||||||||||||||
Options Outstanding(a) | Options Exercisable(b) | ||||||||||||||||||||||
Range Of | Options | Weighted- | Weighted- | Options | Weighted- | ||||||||||||||||||
Exercise Prices | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||
Life | |||||||||||||||||||||||
$9.00 to $11.99 | 2,788,572 | 3 | $ | 9.71 | 2,788,572 | $ | 9.71 | ||||||||||||||||
12.00 to 14.00 | 4,590,316 | 6.9 | 13.07 | 2,557,659 | 13.21 | ||||||||||||||||||
14.01 to 40.96 | 2,270,672 | 6.5 | 22.82 | 968,430 | 17.69 | ||||||||||||||||||
9,649,560 | 5.8 | $ | 14.39 | 6,314,661 | $ | 12.35 | |||||||||||||||||
(a) | At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million. | ||||||||||||||||||||||
(b) | At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million. | ||||||||||||||||||||||
The remaining unrecognized compensation cost related to unvested awards at December 31, 2013 was approximately $9.4 million, and the weighted-average period of time over which this cost will be recognized is 1.7 years. The fair value of options that vested during the years ended December 31, 2013, 2012 and 2011 was $12.4 million, $10.8 million and $10.0 million, respectively. The intrinsic value of Home & Security stock options exercised in the years ended December 31, 2013, 2012 and 2011 was $97.1 million, $70.2 million and $10.0 million, respectively. | |||||||||||||||||||||||
Performance Awards | |||||||||||||||||||||||
Performance share awards were granted to certain employees of the Company under the Plans and represent the right to earn shares of Company common stock based on the achievement of various segment or company-wide performance conditions, including diluted cumulative earnings per share, average return on invested capital, average return on net tangible assets and cumulative operating income during the three-year performance period. Compensation cost is amortized into expense over the performance period, which is generally three years, and is based on the probability of meeting performance targets. The fair value of each performance share award is based on the average of the high and low stock price on the date of grant. | |||||||||||||||||||||||
The following table summarizes information about performance share awards as of December 31, 2013, as well as activity during the year then ended, based on the target award amounts in the performance share award agreements: | |||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Performance Share | Grant-Date | ||||||||||||||||||||||
Awards | Fair Value | ||||||||||||||||||||||
Non-vested at December 31, 2012 | 328,100 | $ | 19.47 | ||||||||||||||||||||
Granted | 210,500 | 34.4 | |||||||||||||||||||||
Cancelled | (39,100 | ) | 24.38 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 499,500 | $ | 25.38 | ||||||||||||||||||||
No awards were made prior to 2012. The remaining unrecognized pre-tax compensation cost related to performance share awards at December 31, 2013 was approximately $11.0 million, and the weighted-average period of time over which this cost will be recognized is 1.7 years. | |||||||||||||||||||||||
Director Awards | |||||||||||||||||||||||
Starting in 2012, stock awards compensate outside directors under the Plan. Awards are issued annually in the second quarter as part of the compensation to outside directors. In addition, outside directors can elect to have director fees paid in stock or can elect to defer payment of stock. Compensation cost is expensed at the time of an award based on the fair value of a share at the date of the award. In 2013 and 2012, we awarded 24,672 and 52,208 shares of common stock to outside directors with a weighted average fair value on the date of the award of $36.47 and $20.46, respectively. |
Defined_Benefit_Plans
Defined Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Defined Benefit Plans | ' | ||||||||||||||||||||||||
12. Defined Benefit Plans | |||||||||||||||||||||||||
We have a number of pension plans in the United States, covering many of the Company’s employees, however most have been closed to new hires. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65, and also for payment of certain disability benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee’s length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. Also, from time to time, we may make contributions in excess of the legal funding requirements. | |||||||||||||||||||||||||
In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. | |||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Obligations and Funded Status at December 31 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in the Projected Benefit Obligation (PBO): | |||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 722.5 | $ | 639.5 | $ | 73.3 | $ | 93.9 | |||||||||||||||||
Service cost | 11.4 | 12.1 | 0.3 | 0.5 | |||||||||||||||||||||
Interest cost | 30.1 | 30.7 | 1.7 | 3.9 | |||||||||||||||||||||
Plan amendments | — | 0.4 | (34.7 | ) | (29.8 | ) | |||||||||||||||||||
Actuarial (gain) loss | (73.0 | ) | 66 | (0.3 | ) | 9.9 | |||||||||||||||||||
Participants’ contributions | — | — | 0.5 | 0.8 | |||||||||||||||||||||
Benefits paid | (28.7 | ) | (26.2 | ) | (7.0 | ) | (6.4 | ) | |||||||||||||||||
Medicare Part D reimbursement | — | — | 0.4 | 0.5 | |||||||||||||||||||||
Projected benefit obligation at end of year | $ | 662.3 | $ | 722.5 | $ | 34.2 | $ | 73.3 | |||||||||||||||||
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | $ | 648.5 | $ | 703.3 | |||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 536.8 | $ | 477.9 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 74.6 | 63.7 | — | — | |||||||||||||||||||||
Employer contributions | 1.1 | 21.4 | 6.1 | 5.1 | |||||||||||||||||||||
Participants’ contributions | — | — | 0.5 | 0.8 | |||||||||||||||||||||
Medicare Part D reimbursement | — | — | 0.4 | 0.5 | |||||||||||||||||||||
Benefits paid | (28.7 | ) | (26.2 | ) | (7.0 | ) | (6.4 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 583.8 | $ | 536.8 | $ | — | $ | — | |||||||||||||||||
Funded status (Fair value of plan assets less PBO) | $ | (78.5 | ) | $ | (185.7 | ) | $ | (34.2 | ) | $ | (73.3 | ) | |||||||||||||
The accumulated benefit obligation exceeds the fair value of assets for all pension plans. | |||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Current benefit payment liability | $ | (0.8 | ) | $ | (0.8 | ) | $ | (3.5 | ) | $ | (5.5 | ) | |||||||||||||
Accrued benefit liability | (77.7 | ) | (184.9 | ) | (30.7 | ) | (67.8 | ) | |||||||||||||||||
Net amount recognized | $ | (78.5 | ) | $ | (185.7 | ) | $ | (34.2 | ) | $ | (73.3 | ) | |||||||||||||
In the fourth quarter of 2012 and first half of 2013, we amended certain postretirement benefit plans to reduce health benefits for certain current and retired employees. The impact of these changes was a reduction in accrued retiree benefit plans of $29.8 million in 2012 and $34.7 million in 2013, and we recognized actuarial losses of $4.0 million in 2013 due to a decrease in the discount rate and a resulting lower threshold for loss recognition because of the reduced postretirement obligation. Liability reduction resulting from these plan amendments are recorded as amortization of prior service credits in net income in accordance with accounting requirements. In addition, in the first quarter of 2013, we communicated to certain employees our decision to freeze an hourly pension plan by December 31, 2016. As a result, we remeasured our pension liability, updating our pension measurement assumptions, and recorded a $20.0 million reduction in the liability. The curtailment charge associated with this pension freeze was insignificant. See Note 22, “Accumulated Other Comprehensive Income,” for information on the impact on accumulated other comprehensive income. In the third and fourth quarters of 2011, we communicated to employees our decision to freeze salaried and certain hourly non-union pension plans by December 31, 2016. As a result, we remeasured our pension liabilities, updated our pension measurement assumptions, and recorded pension curtailment charges totaling $1.8 million. | |||||||||||||||||||||||||
In the first quarter of 2014, we amended certain postretirement benefit plans to reduce health benefits for certain current and retired employees. The reduction in accrued retiree benefit plans is estimated to be $14.7 million and will be recorded in the first quarter of 2014. Of this reduction, $11.7 million will be recorded as amortization of prior service credit in net income over the next two to three years. In addition, in the first quarter of 2014, we expect to recognize actuarial gains of $0.6 million and one-time prior service credits in net income of $3.7 million. | |||||||||||||||||||||||||
In 2014, we expect to make pension cash contributions of approximately $10 million. | |||||||||||||||||||||||||
The amounts in accumulated other comprehensive income on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Net actuarial loss at December 31, 2011 | 63.5 | 6 | |||||||||||||||||||||||
Recognition of actuarial loss | (30.6 | ) | (11.6 | ) | |||||||||||||||||||||
Current year actuarial loss | 39.3 | 9.9 | |||||||||||||||||||||||
Net actuarial loss at December 31, 2012 | $ | 72.2 | $ | 4.3 | |||||||||||||||||||||
Recognition of actuarial gain | (0.9 | ) | (4.5 | ) | |||||||||||||||||||||
Current year actuarial gain | (105.6 | ) | (0.3 | ) | |||||||||||||||||||||
Net actuarial gain at December 31, 2013 | $ | (34.3 | ) | $ | (0.5 | ) | |||||||||||||||||||
Net prior service cost at December 31, 2011 | 0.5 | 1 | |||||||||||||||||||||||
Prior service cost (credit) recognition due to plan amendments | 0.4 | (29.8 | ) | ||||||||||||||||||||||
Amortization | (0.3 | ) | 2.6 | ||||||||||||||||||||||
Net prior service cost (credit) at December 31, 2012 | $ | 0.6 | $ | (26.2 | ) | ||||||||||||||||||||
Prior service credit recognition due to plan amendments | — | (34.7 | ) | ||||||||||||||||||||||
Amortization | (0.1 | ) | 27.4 | ||||||||||||||||||||||
Net prior service cost (credit) at December 31, 2013 | $ | 0.5 | $ | (33.5 | ) | ||||||||||||||||||||
Total at December 31, 2013 | $ | (33.8 | ) | $ | (34.0 | ) | |||||||||||||||||||
The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year are amortization of net prior service costs (credits) related pension benefits of $0.1 million and postretirement benefits of $(19.4) million. | |||||||||||||||||||||||||
Components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 11.4 | $ | 12.1 | $ | 12.9 | $ | 0.3 | $ | 0.5 | $ | 0.5 | |||||||||||||
Interest cost | 30.1 | 30.7 | 31 | 1.7 | 3.9 | 4.4 | |||||||||||||||||||
Expected return on plan assets | (41.8 | ) | (36.8 | ) | (41.3 | ) | — | — | — | ||||||||||||||||
Recognition of actuarial losses | 0.8 | 30.6 | 80 | 4.4 | 11.6 | — | |||||||||||||||||||
Amortization of prior service cost (credits) | 0.1 | 0.3 | 0.3 | (27.4 | ) | (2.6 | ) | 0.4 | |||||||||||||||||
Curtailment and settlement losses | 0.1 | — | 1.8 | 0.1 | — | — | |||||||||||||||||||
Net periodic benefit cost | $ | 0.7 | $ | 36.9 | $ | 84.7 | $ | (20.9 | ) | $ | 13.4 | $ | 5.3 | ||||||||||||
Assumptions | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 5.00% | 4.20% | 4.30% | 3.70% | |||||||||||||||||||||
Rate of compensation increase | 4.00% | 4.00% | — | — | |||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.20% | 4.90% | 5.80% | 3.70% | 4.60% | 5.30% | |||||||||||||||||||
Expected long-term rate of return on plan assets | 7.80% | 7.80% | 8.50% | — | — | — | |||||||||||||||||||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | — | — | — | |||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31: | |||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.1/7.5 | %(a) | 7.5/7.0 | %(a) | |||||||||||||||||||||
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2022 | 2017 | |||||||||||||||||||||||
(a) | The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate. | ||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||
(In millions) | 1-Percentage- | 1-Percentage- | |||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 0.1 | $ | (0.1 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation | 1.8 | (2.0 | ) | ||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2013 were as follows: | |||||||||||||||||||||||||
(In millions) | Total as of | Level 2 – | Level 3 – | ||||||||||||||||||||||
balance | Significant | Significant | |||||||||||||||||||||||
sheet date | other observable | unobservable | |||||||||||||||||||||||
inputs | inputs | ||||||||||||||||||||||||
Group annuity/insurance contracts | $ | 21.2 | $ | — | $ | 21.2 | |||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||
Cash and cash equivalents | 8.1 | 8.1 | — | ||||||||||||||||||||||
Equity | 278.6 | 278.6 | — | ||||||||||||||||||||||
Fixed income | 232.6 | 232.6 | — | ||||||||||||||||||||||
Multi-strategy hedge funds | 20.5 | — | 20.5 | ||||||||||||||||||||||
Real estate | 22.8 | — | 22.8 | ||||||||||||||||||||||
Total | $ | 583.8 | $ | 519.3 | $ | 64.5 | |||||||||||||||||||
A reconciliation of Level 3 measurements as of December 31, 2013 was as follows: | |||||||||||||||||||||||||
Commingled Funds | |||||||||||||||||||||||||
(In millions) | Group | Multi-strategy | Real estate | Total | |||||||||||||||||||||
annuity/ | hedge funds | ||||||||||||||||||||||||
insurance | |||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||
January 1, 2013 | $ | 20.6 | $ | 18.8 | $ | 24.4 | $ | 63.8 | |||||||||||||||||
Actual return on assets related to assets still held | 0.6 | 1.7 | 3.4 | 5.7 | |||||||||||||||||||||
Purchases, sales and settlements | — | — | (5.0 | ) | (5.0 | ) | |||||||||||||||||||
December 31, 2013 | $ | 21.2 | $ | 20.5 | $ | 22.8 | $ | 64.5 | |||||||||||||||||
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2012 were as follows: | |||||||||||||||||||||||||
(In millions) | Total as of | Level 2 – | Level 3 – | ||||||||||||||||||||||
balance | Significant | Significant | |||||||||||||||||||||||
sheet date | other observable | unobservable | |||||||||||||||||||||||
inputs | inputs | ||||||||||||||||||||||||
Group annuity/insurance contracts | $ | 20.6 | $ | — | $ | 20.6 | |||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||
Cash and cash equivalents | 6.3 | 6.3 | — | ||||||||||||||||||||||
Equity | 331.5 | 331.5 | — | ||||||||||||||||||||||
Fixed income | 135.2 | 135.2 | — | ||||||||||||||||||||||
Multi-strategy hedge funds | 18.8 | — | 18.8 | ||||||||||||||||||||||
Real estate | 24.4 | — | 24.4 | ||||||||||||||||||||||
Total | $ | 536.8 | $ | 473 | $ | 63.8 | |||||||||||||||||||
A reconciliation of Level 3 measurements as of December 31, 2012 was as follows: | |||||||||||||||||||||||||
Commingled Funds | |||||||||||||||||||||||||
(In millions) | Group | Multi-strategy | Real estate | Total | |||||||||||||||||||||
annuity/ | hedge funds | ||||||||||||||||||||||||
insurance | |||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||
1-Jan-12 | $ | 20 | $ | 17.5 | $ | 21.9 | $ | 59.4 | |||||||||||||||||
Actual return on assets related to assets still held | 0.6 | 1.3 | 2.5 | 4.4 | |||||||||||||||||||||
31-Dec-12 | $ | 20.6 | $ | 18.8 | $ | 24.4 | $ | 63.8 | |||||||||||||||||
Our defined benefit trust owns a variety of assets including equity, fixed income and real estate securities, as well as group annuity/insurance contracts and fund-of-hedge funds. Equity securities are traded on national stock exchanges and are valued at daily closing prices. Fixed income securities are valued at daily closing prices or institutional mid-evaluation prices provided by independent industry-recognized pricing sources. Real estate securities are valued based on recent market appraisals of underlying property, as well as standard valuation methodologies to determine the most probable cash price in a competitive market. Valuations of group annuity/insurance contracts and fund-of-hedge funds are based on daily closing prices of underlying securities or institutional evaluation prices consistent with industry practices. | |||||||||||||||||||||||||
Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. A Master Trust was established to hold the assets of our domestic defined benefit plans. The U.S. defined benefit asset allocation policy of the trust allows for an equity allocation of 0% to 75%, a fixed income allocation of 25% to 100%, a cash allocation of up to 25% and other investments up to 20%. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure. | |||||||||||||||||||||||||
Our 2014 expected blended long-term rate of return on plan assets of 7.4% was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants. | |||||||||||||||||||||||||
Estimated Future Retirement Benefit Payments | |||||||||||||||||||||||||
The following retirement benefit payments are expected to be paid: | |||||||||||||||||||||||||
(In millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2014 | $ | 32.2 | $ | 3.4 | |||||||||||||||||||||
2015 | 34.1 | 3.4 | |||||||||||||||||||||||
2016 | 36 | 3.4 | |||||||||||||||||||||||
2017 | 37.5 | 2.8 | |||||||||||||||||||||||
2018 | 39 | 2.8 | |||||||||||||||||||||||
Years 2019-2023 | 215 | 12.7 | |||||||||||||||||||||||
Estimated future retirement benefit payments above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans. | |||||||||||||||||||||||||
Defined Contribution Plan Contributions | |||||||||||||||||||||||||
We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions by the Company related to these plans amounted to $18.7 million, $16.1 million and $17.8 million in 2013, 2012 and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
13. Income Taxes | |||||||||||||
The components of income (loss) before income taxes and noncontrolling interests were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic operations | $ | 276.9 | $ | 95 | $ | (73.1 | ) | ||||||
Foreign operations | 68 | 59 | 29.5 | ||||||||||
Income (loss) before income taxes and noncontrolling interests | $ | 344.9 | $ | 154 | $ | (43.6 | ) | ||||||
A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision (benefit) reported was as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Income tax expense (benefit) computed at federal statutory income tax rate | $ | 120.7 | $ | 53.9 | $ | (15.3 | ) | ||||||
Other income taxes, net of federal tax benefit | 8 | 3.8 | (1.8 | ) | |||||||||
Foreign taxes at a different rate than U.S. federal statutory income tax rate | (10.2 | ) | (7.0 | ) | (5.3 | ) | |||||||
Tax effect on foreign dividends | — | 12.4 | 10.2 | ||||||||||
Tax benefit on income attributable to domestic production activities | (5.8 | ) | (2.2 | ) | (2.6 | ) | |||||||
Net adjustments for uncertain tax positions | 2 | (11.0 | ) | (9.7 | ) | ||||||||
Net effect of rate changes on deferred taxes | (3.0 | ) | (0.2 | ) | (2.9 | ) | |||||||
Prior period items | — | (3.9 | ) | — | |||||||||
Valuation allowance increase (decrease) | 2.1 | (8.9 | ) | 16.8 | |||||||||
Miscellaneous other, net | 0.2 | (2.6 | ) | 1.6 | |||||||||
Income tax expense (benefit) as reported | $ | 114 | $ | 34.3 | $ | (9.0 | ) | ||||||
Effective income tax rate | 33.1 | % | 22.3 | % | 20.6 | % | |||||||
The effective income tax rate for 2013 was unfavorably impacted by an increase in the valuation allowance related to an investment impairment charge for which we cannot presently record an income tax benefit. The effective income tax rate in 2013 was favorably impacted by $3.0 million of deferred tax benefits associated with the enacted repeal of the Mexican Business Flat Tax, under the 2014 Mexican Tax Reform Package and the extension of the U.S. research and development credit under The American Taxpayer Relief Act of 2012. The effective income tax rate was also favorably impacted by an increased benefit attriburable to domestic production activities. The effective income tax rate in 2012 was favorably impacted by a tax benefit related to the final settlement of a U.S. federal income tax audit covering the 2008 to 2009 years and a decrease in valuation allowance due to certain reorganization actions among our foreign subsidiaries. The effective rate in 2012 was unfavorably impacted by an income tax expense on foreign dividends. The effective income tax rate in 2011 was unfavorably impacted due to the recording of valuation allowances related to state and foreign net operating loss carryforwards and an income tax expense on foreign dividends. The 2011 effective income tax rate was favorably impacted by a tax benefit related to conclusion of foreign and state income tax audits and enacted changes in state tax laws. | |||||||||||||
On September 13, 2013, the Treasury Department and Internal Revenue Service issued the final tangible property repair regulations that are effective for years beginning on or after January 1, 2014. While the final impact of these regulations on our financial statements will not be determined until our 2014 income tax return is filed, we do not expect it to have a material impact on our results of operations or cash flows. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits (UTBs) was as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits — beginning of year | $ | 20.8 | $ | 35.4 | $ | 38.8 | |||||||
Gross additions — current year tax positions | 4.4 | 2.8 | 2.3 | ||||||||||
Gross additions — prior year tax positions | 0.7 | 0.6 | 7.2 | ||||||||||
Gross additions — purchase accounting adjustments | 1.6 | — | — | ||||||||||
Gross reductions — prior year tax positions | (3.2 | ) | (13.5 | ) | (12.0 | ) | |||||||
Gross reductions — settlements with taxing authorities | (0.6 | ) | (4.0 | ) | (0.4 | ) | |||||||
Impact of change in foreign exchange rates | — | — | (0.5 | ) | |||||||||
Impact due to expiration of statutes of limitations | — | (0.5 | ) | — | |||||||||
Unrecognized tax benefits — end of year | $ | 23.7 | $ | 20.8 | $ | 35.4 | |||||||
The amount of UTBs that, if recognized as of December 31, 2013, would affect the Company’s effective tax rate was $23.4 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $2.5 million to $3.5 million primarily as a result of the conclusion of U.S. state and foreign income tax proceedings. | |||||||||||||
We classify interest and penalty accruals related to UTBs as income tax expense. In 2013, we recognized an interest and penalty benefit of approximately $0.2 million. In 2012, we recognized an interest and penalty benefit of approximately $1.7 million, primarily driven by audit resolutions. In 2011, we recognized an interest and penalty benefit of $1.4 million. At December 31, 2013 and 2012, we had accruals for the payment of interest and penalties of $9.9 million and $10.2 million, respectively. | |||||||||||||
We file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently under examination by the U.S. Internal Revenue Service (“IRS”) for the periods related to 2010 and 2011. We have tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2008, Mexico for years after 2006 and China for years after 2009. | |||||||||||||
Income taxes in 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 102.8 | $ | 17.6 | $ | 26 | |||||||
Foreign | 12.8 | 13.1 | 8.9 | ||||||||||
State and other | 11.2 | 4.1 | 16.9 | ||||||||||
Deferred | |||||||||||||
Federal, state and other | (13.0 | ) | 4.8 | (66.8 | ) | ||||||||
Foreign | 0.2 | (5.3 | ) | 6 | |||||||||
Total income tax expense (benefit) | $ | 114 | $ | 34.3 | $ | (9.0 | ) | ||||||
The components of net deferred tax assets (liabilities) as of December 31, 2013 and 2012 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Compensation and benefits | $ | 36.8 | $ | 32.8 | |||||||||
Defined benefit plans | 44.2 | 84.3 | |||||||||||
Capitalized inventories | 13.1 | 13.8 | |||||||||||
Accounts receivable | 6.8 | 6.9 | |||||||||||
Other accrued expenses | 17.7 | 18 | |||||||||||
Net operating loss and other tax carryforwards | 25.5 | 32.7 | |||||||||||
Valuation allowance | (20.7 | ) | (19.2 | ) | |||||||||
Miscellaneous | 14.7 | 10.7 | |||||||||||
Total deferred tax assets | 138.1 | 180 | |||||||||||
Deferred tax liabilities: | |||||||||||||
LIFO inventories | (12.5 | ) | (12.5 | ) | |||||||||
Fixed assets | (63.4 | ) | (69.4 | ) | |||||||||
Identifiable intangible assets | (252.9 | ) | (253.6 | ) | |||||||||
Miscellaneous | (8.1 | ) | (12.3 | ) | |||||||||
Total deferred tax liabilities | (336.9 | ) | (347.8 | ) | |||||||||
Net deferred tax liability | $ | (198.8 | ) | $ | (167.8 | ) | |||||||
In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2013 and 2012 as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Other current assets | $ | 46.2 | $ | 55.6 | |||||||||
Other current liabilities | (0.6 | ) | (1.2 | ) | |||||||||
Other assets | 1.4 | 1.8 | |||||||||||
Deferred income taxes | (245.8 | ) | (224.0 | ) | |||||||||
Net deferred tax liability | $ | (198.8 | ) | $ | (167.8 | ) | |||||||
As of December 31, 2013 and 2012, the Company had deferred tax assets relating to net operating losses and other tax carryforwards of $25.5 million and $32.7 million, respectively, of which approximately $1.4 million will expire between 2014 and 2019, and the remainder which will expire in 2020 and thereafter. The Company has provided a valuation allowance to reduce the carrying value of certain of these deferred tax assets, as management has concluded that, based on the available evidence, it is more likely than not that the deferred tax assets will not be fully realized. | |||||||||||||
The undistributed earnings of foreign subsidiaries that are considered indefinitely reinvested were $156.1 million at December 31, 2013. A quantification of the associated deferred tax liability on these undistributed earnings has not been made, as the determination of such liability is not practicable. | |||||||||||||
In October, 2011, we separated from our Former Parent. During 2012, we analyzed the subsidiary legal and capital structures inherited from our Former Parent to assess their compatibility with our strategies as a new independent company. Based on this analysis, in the fourth quarter of 2012, we committed to a plan to reorganize certain foreign subsidiaries and adjust their capital structures to better align with our business strategy as a new independent company. As part of this plan, we committed to a non-recurring remittance of certain foreign earnings and recorded an associated tax liability of $12.4 million. In 2011, prior to the Separation and at the direction of our Former Parent, we remitted foreign earnings and recorded an associated tax liability of $9.1 million. We have not provided deferred income taxes on the remaining undistributed earnings of foreign subsidiaries. | |||||||||||||
In general, under the Tax Allocation Agreement that we entered into with our Former Parent, Home & Security is responsible for all taxes to the extent such taxes are attributable to the Home & Security business, and we agreed to indemnify our Former Parent for these taxes. Our Former Parent will be responsible for all taxes to the extent such taxes are not attributable to the Home & Security business and our Former Parent has agreed to indemnify us for these taxes. Although Home & Security will continue to be severally liable with our Former Parent for this liability following the Separation, under the Tax Allocation Agreement, our Former Parent agreed to indemnify us for amounts relating to this liability to the extent not attributable to the Home & Security business. Though valid as between the parties, the Tax Allocation Agreement will not be binding on the IRS. Moreover, the Tax Allocation Agreement generally provides that each of Home & Security and our Former Parent is responsible for any taxes imposed as a result of the failure of the distribution of all the shares of our common stock owned by our Former Parent to stockholders of our Former Parent as of September 20, 2011 (the “Distribution”) to qualify for tax-favored treatment under the Internal Revenue Code if such failure is attributable to certain post-Distribution actions taken by such party or in respect of such party or such party’s stockholders after the Distribution, regardless of whether the actions occur more than two years after the Distribution, the other party consents to such actions or such party obtains a favorable letter ruling or tax opinion. |
Restructuring_and_Other_Charge
Restructuring and Other Charges | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring and Other Charges | ' | ||||||||||||||||
14. Restructuring and Other Charges | |||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2013 were: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Other Charges(a) | |||||||||||||||||
(In millions) | Restructuring | Cost of | SG&A(b) | Total | |||||||||||||
Charges | Products | Charges | |||||||||||||||
Sold | |||||||||||||||||
Kitchen & Bath Cabinetry | $ | 2.2 | $ | 0.1 | $ | — | $ | 2.3 | |||||||||
Plumbing & Accessories | 0.6 | 0.6 | 0.2 | 1.4 | |||||||||||||
Advanced Material Windows & Door Systems | 1.4 | — | — | 1.4 | |||||||||||||
Total | $ | 4.2 | $ | 0.7 | $ | 0.2 | $ | 5.1 | |||||||||
(a) | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||||||||||||
(b) | Selling, general and administrative expenses | ||||||||||||||||
2013 restructuring and other charges related to supply chain initiatives. | |||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2012 were: | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||||||
Charges | Charges(a) | Charges | |||||||||||||||
Kitchen & Bath Cabinetry | $ | 4.7 | $ | 8.9 | $ | 13.6 | |||||||||||
Advanced Material Windows & Door Systems | 0.8 | (3.4 | ) | (2.6 | ) | ||||||||||||
Security & Storage | (1.0 | ) | — | (1.0 | ) | ||||||||||||
Total | $ | 4.5 | $ | 5.5 | $ | 10 | |||||||||||
(a) | “Other Charges,” which were recorded in cost of products sold in 2012, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||||||||||||
In August 2012, we announced and initiated a restructuring action in the Kitchen & Bath Cabinetry segment. As a result of the restructuring, in 2012 we recorded restructuring and other charges of approximately $12 million due to the planned closure of our Martinsville, Virginia cabinet manufacturing facility. Pre-tax charges included $3.2 million of workforce reduction and exit costs to close the facility and to consolidate manufacturing at other facilities and $8.5 million of other charges, primarily accelerated depreciation of long-lived assets associated with the closed facility. The restructuring actions were undertaken to further enhance the efficiency and flexibility of the Company’s supply chains. | |||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2011 were: | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||||||
Charges | Charges(a) | Charges | |||||||||||||||
Kitchen & Bath Cabinetry | $ | 3.7 | $ | 9 | $ | 12.7 | |||||||||||
Plumbing & Accessories | — | (0.1 | ) | (0.1 | ) | ||||||||||||
Advanced Material Windows & Door Systems | 1 | 6.4 | 7.4 | ||||||||||||||
Total | $ | 4.7 | $ | 15.3 | $ | 20 | |||||||||||
(a) | “Other Charges,” which were recorded in cost of products sold in 2011, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||||||||||||
Pretax restructuring and other charges of $20.0 million in 2011 primarily related to cabinet and window manufacturing facility closures. These charges consisted of $3.5 million for workforce reductions including employee benefit curtailments, $11.5 million primarily for accelerated depreciation for facilities that were closed in the fourth quarter of 2011, tradename impairment charges of $1.9 million, and $3.1 million of other costs. | |||||||||||||||||
The Company’s restructuring liability was not material as of December 31, 2013, 2012 and 2011. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
15. Related Party Transactions | |
Prior to the Separation, Home & Security had certain related party relationships with our Former Parent and its subsidiaries, as discussed below. Pursuant to the Separation and Distribution Agreement, the Indemnification Agreement and certain other agreements entered into in connection with the Separation, our Former Parent agreed to indemnify us from certain liabilities and we agreed to indemnify our Former Parent from certain liabilities. Indemnities that we may be required to provide our Former Parent may be significant and could negatively impact our business, particularly indemnities relating to our actions that could impact the tax-free nature of the Distribution. Third parties could also seek to hold us responsible for any of the liabilities that our Former Parent has agreed to retain. Even if we ultimately succeed in recovering from our Former Parent any amounts for which we are held liable, we may be temporarily required to bear these losses ourselves. | |
Upon the Separation, our Former Parent ceased providing financing, cash management and treasury services to the Company. Immediately prior to the Separation, on October 3, 2011, Home & Security paid a dividend to our Former Parent in the amount of $500 million. In addition, the Company paid a dividend of $48.9 million to our Former Parent, prior to the Separation on October 3, 2011 and made a payment of $6.0 million to our Former Parent on January 3, 2012. These two latter payments represented U.S. cash balances generated from August 26, 2011, the date of the conversion of the Company from a Delaware limited liability company to a Delaware corporation, through the date of the Separation. In addition, in the fourth quarter of 2012, we paid $3.0 million to our Former Parent for the final settlement of the Home & Security portion of our Former Parent’s consolidated 2011 federal income tax return. In the second quarter of 2013, we received $1.2 million from our Former Parent for the final settlement of 2011 state income tax returns in which Home & Security companies were included, net of a state audit payment that was owed to our Former Parent. | |
Financing and Cash Management Historically, our Former Parent provided financing, cash management and treasury services to Home & Security. The Company’s U.S. cash balances were swept by our Former Parent on a daily basis and the Company received funding from our Former Parent for operating and investing cash needs. Cash transferred to and from the Company was recorded in the form of loans from or to our Former Parent in the accompanying financial statements. The weighted-average interest rate on loans to/from our Former Parent was 3.4% in 2011. Related party interest expense and income in 2011 were $29.3 million and $6.1 million, respectively, netting to expense of $23.2 million. | |
General and Administrative Services Until consummation of the Separation, our Former Parent performed certain functions and services on behalf of Home & Security. Refer to Note 1, “Background and Basis of Presentation,” for additional information. |
Business_Separation_Costs
Business Separation Costs | 12 Months Ended |
Dec. 31, 2013 | |
Business Separation Costs | ' |
16. Business Separation Costs | |
We recorded $2.4 million of business separation costs during the year ended December 31, 2011 related to non-cash non-recurring costs associated with the modification of share-based compensation awards as a result of the Separation. |
Commitments
Commitments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments | ' | ||||||||||||
17. Commitments | |||||||||||||
Purchase Obligations | |||||||||||||
Purchase obligations of the Company as of December 31, 2013 were $298.8 million, of which $283.9 million is due in one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures. | |||||||||||||
Lease Commitments | |||||||||||||
Future minimum rental payments under non-cancelable operating leases as of December 31, 2013 were as follows: | |||||||||||||
(In millions) | |||||||||||||
2014 | $ | 29.4 | |||||||||||
2015 | 24 | ||||||||||||
2016 | 17 | ||||||||||||
2017 | 8.4 | ||||||||||||
2018 | 6.1 | ||||||||||||
Remainder | 4.4 | ||||||||||||
Total minimum rental payments | $ | 89.3 | |||||||||||
Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $47.9 million, $49.3 million and $35.2 million in 2013, 2012 and 2011, respectively. | |||||||||||||
Product Warranties | |||||||||||||
We generally record warranty expense at the time of sale. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Reserve balance at the beginning of the year | $ | 14.3 | $ | 13.9 | $ | 12.6 | |||||||
Provision for warranties issued | 20.1 | 17.5 | 18.9 | ||||||||||
Settlements made (in cash or in kind) | (19.2 | ) | (17.1 | ) | (17.6 | ) | |||||||
Reserve balance at end of year | $ | 15.2 | $ | 14.3 | $ | 13.9 |
Information_on_Business_Segmen
Information on Business Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Information on Business Segments | ' | ||||||||||||
18. Information on Business Segments | |||||||||||||
We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below. | |||||||||||||
The Kitchen & Bath Cabinetry segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Kitchen Craft, Kitchen Classics, Omega, Schrock, Homecrest, Decorá, Diamond and Kemper. In addition, cabinets are distributed under the Martha Stewart Living and Thomasville Cabinetry brand names. The Plumbing & Accessories segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks predominantly under the Moen brand. The Advanced Material Windows & Door Systems segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name, vinyl-framed windows and patio doors under the Simonton brand name, and urethane millwork under the Fypon brand name. The Security & Storage segment includes locks, safety and security devices and electronic security products under the Master Lock brand name, and tool storage and garage organization products under the Sears Craftsman and Waterloo brand names. | |||||||||||||
The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,642.20 | $ | 1,326.60 | $ | 1,256.30 | |||||||
Plumbing & Accessories | 1,287.00 | 1,100.70 | 962.8 | ||||||||||
Advanced Material Windows & Door Systems | 657.8 | 587.2 | 552.9 | ||||||||||
Security & Storage | 570.4 | 576.6 | 556.6 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2013, 2012 and 2011. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 14%, 13% and 13% of net sales in 2013, 2012 and 2011, respectively. Net sales to Lowe’s were 13%, 13% and 15% of net sales in 2013, 2012 and 2011, respectively. | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Operating income (loss): | |||||||||||||
Kitchen & Bath Cabinetry | $ | 97.1 | $ | 20.5 | $ | 5.7 | |||||||
Plumbing & Accessories | 228.3 | 169.2 | 138 | ||||||||||
Advanced Material Windows & Door Systems | 14.4 | (1.0 | ) | (101.2 | ) | ||||||||
Security & Storage | 90.4 | 75.4 | 62.6 | ||||||||||
Less: Corporate expenses(a) | (73.1 | ) | (102.4 | ) | (120.7 | ) | |||||||
Operating income (loss) | $ | 357.1 | $ | 161.7 | $ | (15.6 | ) | ||||||
Total assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,588.00 | $ | 1,248.50 | $ | 1,273.20 | |||||||
Plumbing & Accessories | 1,176.30 | 1,081.70 | 1,065.00 | ||||||||||
Advanced Material Windows & Door Systems | 766.1 | 778.2 | 804.2 | ||||||||||
Security & Storage | 461.8 | 459.8 | 399.9 | ||||||||||
Corporate(b) | 185.9 | 305.7 | 95.6 | ||||||||||
Total assets | $ | 4,178.10 | $ | 3,873.90 | $ | 3,637.90 | |||||||
(a) Below is a table detailing Corporate expenses: | |||||||||||||
Corporate expenses: | |||||||||||||
General and administrative expense(c) | $ | (78.0 | ) | $ | (63.7 | ) | $ | (44.1 | ) | ||||
Business separation costs | — | — | (2.4 | ) | |||||||||
Defined benefit plan costs | 10.1 | 3.5 | 5.8 | ||||||||||
Defined benefit plan recognition of actuarial losses | (5.2 | ) | (42.2 | ) | (80.0 | ) | |||||||
Total Corporate expenses | $ | (73.1 | ) | $ | (102.4 | ) | $ | (120.7 | ) | ||||
(b) | Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent. | ||||||||||||
(c) | General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011. | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 29.3 | $ | 38.8 | $ | 38.6 | |||||||
Plumbing & Accessories | 16.7 | 18.1 | 18.2 | ||||||||||
Advanced Material Windows & Door Systems | 16.9 | 18.5 | 25.8 | ||||||||||
Security & Storage | 13 | 13.3 | 14 | ||||||||||
Corporate | 1.3 | 1.5 | 0.5 | ||||||||||
Depreciation expense | $ | 77.2 | $ | 90.2 | $ | 97.1 | |||||||
Amortization of intangible assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 5.1 | $ | 3.3 | $ | 6 | |||||||
Advanced Material Windows & Door Systems | 7.5 | 7.5 | 7.9 | ||||||||||
Security & Storage | 0.6 | 0.3 | 0.5 | ||||||||||
Amortization of intangible assets | $ | 13.2 | $ | 11.1 | $ | 14.4 | |||||||
Capital expenditures: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 36.4 | $ | 27.7 | $ | 29.1 | |||||||
Plumbing & Accessories | 25.3 | 19.1 | 16.5 | ||||||||||
Advanced Material Windows & Door Systems | 13.6 | 15 | 13.5 | ||||||||||
Security & Storage | 18.9 | 13 | 9.4 | ||||||||||
Corporate | 2.5 | 0.2 | — | ||||||||||
Capital expenditures, gross | 96.7 | 75 | 68.5 | ||||||||||
Less: proceeds from disposition of assets | (2.2 | ) | (13.5 | ) | (3.5 | ) | |||||||
Capital expenditures, net | $ | 94.5 | $ | 61.5 | $ | 65 | |||||||
Net sales by geographic region(a): | |||||||||||||
United States | $ | 3,479.40 | $ | 2,969.10 | $ | 2,755.00 | |||||||
Canada | 418.1 | 405.3 | 390.3 | ||||||||||
China and other international | 259.9 | 216.7 | 183.3 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 439.2 | $ | 428.9 | $ | 443.7 | |||||||
Mexico | 55.6 | 37 | 39.1 | ||||||||||
Canada | 29.4 | 32.7 | 32.8 | ||||||||||
China and other international | 10.2 | 10.8 | 10.2 | ||||||||||
Property, plant and equipment, net | $ | 534.4 | $ | 509.4 | $ | 525.8 | |||||||
(a) | Based on country of destination |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||||||
19. Quarterly Financial Data | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||
2013 | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||
Year | |||||||||||||||||||||
Net sales | $ | 890 | $ | 1,040.40 | $ | 1,125.10 | $ | 1,101.90 | $ | 4,157.40 | |||||||||||
Gross profit | 300.2 | 377 | 384.9 | 376.7 | 1,438.80 | ||||||||||||||||
Operating income | 56.6 | 106.5 | 98.6 | 95.4 | 357.1 | ||||||||||||||||
Net income | 37.5 | 64.2 | 64.6 | 64.6 | 230.9 | ||||||||||||||||
Net income attributable to Home & Security | 37.3 | 64 | 64.2 | 64.2 | 229.7 | ||||||||||||||||
Basic earnings per common share | 0.23 | 0.39 | 0.39 | 0.39 | 1.39 | ||||||||||||||||
Diluted earnings per common share | 0.22 | 0.37 | 0.37 | 0.37 | 1.34 | ||||||||||||||||
In the third quarter of 2013, we recorded pre-tax asset impairment charges in our Kitchen & Bath Cabinetry segment of $21.2 million ($13.8 after tax or $0.08 per diluted share) associated with the abandonment of certain internal use software. We recorded pre-tax defined benefit plan actuarial losses of $5.2 million in 2013 — $4.6 million ($3.1 million after tax or $0.02 per diluted share) in the first quarter, $0.7 million ($0.4 million after tax or $— per diluted share) in the second quarter, $0.3 million ($0.2 million after tax or $— per diluted share) in the third quarter and a gain of $0.4 million ($0.4 million after tax or $— per diluted share) in the fourth quarter. | |||||||||||||||||||||
2012 | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||
Year | |||||||||||||||||||||
Net sales | $ | 798.8 | $ | 935.3 | $ | 909.1 | $ | 947.9 | $ | 3,591.10 | |||||||||||
Gross profit | 246.8 | 317.4 | 302.3 | 303.5 | 1,170.00 | ||||||||||||||||
Operating income | 21.3 | 72.3 | 60.6 | 7.5 | 161.7 | ||||||||||||||||
Net income | 13 | 47.9 | 40.2 | 18.6 | 119.7 | ||||||||||||||||
Net income attributable to Home & Security | 12.5 | 47.8 | 40 | 18.4 | 118.7 | ||||||||||||||||
Basic earnings per common share | 0.08 | 0.3 | 0.25 | 0.11 | 0.74 | ||||||||||||||||
Diluted earnings per common share | 0.08 | 0.29 | 0.24 | 0.11 | 0.71 | ||||||||||||||||
In the fourth quarter of 2012, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $15.8 million ($9.7 million after tax or $0.06 per diluted share). We recorded pre-tax defined benefit plan actuarial losses of $42.2 million in 2012 — $3.7 million ($2.3 million after tax or $0.01 per diluted share) in the third quarter and $38.5 million ($23.9 million after tax or $0.14 per diluted share) in the fourth quarter. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
20. Earnings Per Share | |||||||||||||
The computations of earnings (loss) per common share were as follows: | |||||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||||
Net income (loss) attributable to Home & Security | $ | 229.7 | $ | 118.7 | $ | (35.6 | ) | ||||||
Basic earnings (loss) per common share | $ | 1.39 | $ | 0.74 | $ | (0.23 | ) | ||||||
Diluted earnings (loss) per common share | $ | 1.34 | $ | 0.71 | $ | (0.23 | ) | ||||||
Basic average shares outstanding | 165.5 | 160.6 | 155.2 | ||||||||||
Diluted average shares outstanding | 171.3 | 166.1 | 155.2 | ||||||||||
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 0.4 | 0.7 | 22.1 | ||||||||||
Prior to the Separation, the total number of outstanding shares of the Company’s common stock increased significantly. On September 27, 2011, the total number of issued and outstanding shares was increased such that 155,052,629 shares of Home & Security common stock were available for distribution to the holders of common stock of our Former Parent. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of shares of Home & Security common stock for the stock split. In periods prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share because no Home & Security stock-based awards were outstanding prior to the Separation. Stock-based awards were antidilutive in 2011 due to the Company’s net loss. |
Other_Expense_Income_Net
Other Expense (Income), Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Expense (Income), Net | ' | ||||||||||||
21. Other Expense (Income), Net | |||||||||||||
The components of other expense (income), net for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Foreign currency transaction losses | $ | — | $ | — | $ | 2.7 | |||||||
Asset impairment charge | 6.2 | — | — | ||||||||||
Other items, net | (1.2 | ) | (1.0 | ) | (1.1 | ) | |||||||
Total other expense (income), net | $ | 5 | $ | (1.0 | ) | $ | 1.6 | ||||||
In the second quarter of 2013, we recorded a $6.2 million impairment charge pertaining to a cost method investment due to an other-than-temporary decline in the fair value of the investment. As a result of the impairment, the carrying value of the investment was reduced to zero and the Company is not subject to further impairment or funding obligations with regard to this investment. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
22. Accumulated Other Comprehensive Income | |||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 were as follows: | |||||||||||||||||
(In millions) | |||||||||||||||||
Details about Accumulated Other | Affected Line Item in the | ||||||||||||||||
Comprehensive Income Components | Statement of Comprehensive Income | ||||||||||||||||
Gains (losses) on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | 2.3 | Cost of products sold | ||||||||||||||
Commodity contract | (0.3 | ) | Cost of products sold | ||||||||||||||
2 | Total before tax | ||||||||||||||||
(0.7 | ) | Tax expense | |||||||||||||||
$ | 1.3 | Net of tax | |||||||||||||||
Defined benefit plan items | |||||||||||||||||
Amortization of prior service cost | $ | 27.3 | (a) | ||||||||||||||
Recognition of actuarial losses | (5.2 | ) | (a) | ||||||||||||||
Curtailment and settlement losses | (0.2 | ) | (a) | ||||||||||||||
21.9 | Total before tax | ||||||||||||||||
(8.4 | ) | Tax expense | |||||||||||||||
$ | 13.5 | Net of tax | |||||||||||||||
Total reclassifications for the period | $ | 14.8 | Net of tax | ||||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, “Defined Benefit Plans,” for additional information. | ||||||||||||||||
Total accumulated other comprehensive income consists of net income (loss) and other changes in business equity from transactions and other events from sources other than shareholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The components of and changes in accumulated other comprehensive income were as follows: | |||||||||||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gain | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2010 | $ | 56.9 | $ | 1.2 | $ | (28.6 | ) | $ | 29.5 | ||||||||
Changes during year | (1.8 | ) | (0.7 | ) | (16.4 | ) | (18.9 | ) | |||||||||
Balance at December 31, 2011 | 55.1 | 0.5 | (45.0 | ) | 10.6 | ||||||||||||
Changes during year | 8.4 | (0.3 | ) | 11.9 | 20 | ||||||||||||
Balance at December 31, 2012 | $ | 63.5 | $ | 0.2 | $ | (33.1 | ) | $ | 30.6 | ||||||||
Amounts classified into accumulated other comprehensive income | (10.2 | ) | 2 | 87.8 | 79.6 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1.3 | ) | (13.5 | ) | (14.8 | ) | ||||||||||
Net current period other comprehensive income | (10.2 | ) | 0.7 | 74.3 | 64.8 | ||||||||||||
Balance at December 31, 2013 | $ | 53.3 | $ | 0.9 | $ | 41.2 | $ | 95.4 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Contingencies | ' |
23. Contingencies | |
Litigation | |
The Company is a defendant in lawsuits associated with the normal conduct of its businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’s results of operations, cash flows or financial condition, and, where appropriate, these actions are being vigorously contested. | |
Environmental | |
Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Home & Security. Several of our subsidiaries have been designated as potentially responsible parties (“PRP”) under “Superfund” or similar state laws. As of December 31, 2013, eight such instances have not been dismissed, settled or otherwise resolved. In calendar year 2013, we were identified as a PRP in one new instance, which we settled in 2013. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have an adverse effect on our results of operations, cash flows or financial condition. At December 31, 2013 and 2012, we had accruals of $5.6 million and $6.8 million, respectively, relating to environmental compliance and clean up including, but not limited to, the above mentioned Superfund sites. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | |||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||||||||||
(In millions) | Balance at | Charged to | Write-offs | Other | Balance at | ||||||||||||||||
Beginning of | Expense | and | End of | ||||||||||||||||||
Period | Deductions(a) | Period | |||||||||||||||||||
2013:00:00 | |||||||||||||||||||||
Allowance for cash discounts, returns and sales allowances | $ | 35.4 | $ | 133.4 | $ | 133 | $ | — | $ | 35.8 | |||||||||||
Allowance for doubtful accounts | 9 | 0.7 | 2.9 | — | 6.8 | ||||||||||||||||
Allowance for deferred tax assets | 19.2 | 1.5 | — | — | 20.7 | ||||||||||||||||
2012:00:00 | |||||||||||||||||||||
Allowance for cash discounts, returns and sales allowances | $ | 39.3 | $ | 138.0 | $ | 142.1 | $ | 0.2 | $ | 35.4 | |||||||||||
Allowance for doubtful accounts | 10.6 | 1.6 | 3.2 | — | 9 | ||||||||||||||||
Allowance for deferred tax assets | 26.6 | (7.4 | ) | — | — | 19.2 | |||||||||||||||
2011:00:00 | |||||||||||||||||||||
Allowance for cash discounts, returns and sales allowances | $ | 37.3 | $ | 157.8 | $ | 155.8 | $ | — | $ | 39.3 | |||||||||||
Allowance for doubtful accounts | 14.7 | 1.5 | 5.6 | — | 10.6 | ||||||||||||||||
Allowance for deferred tax assets | 41.9 | 21.5 | — | (36.8 | ) | 26.6 | |||||||||||||||
(a) | Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Use of Estimates | ' | ||||||
Use of Estimates The presentation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates. | |||||||
Cash and Cash Equivalents | ' | ||||||
Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. | |||||||
Allowances for Doubtful Accounts | ' | ||||||
Allowances for Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowances for doubtful accounts represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency), or discounts related to early payment of accounts receivables by our customers. The allowances include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for doubtful accounts was $6.8 million and $9.0 million as of December 31, 2013 and 2012, respectively. | |||||||
Inventories | ' | ||||||
Inventories The majority of our inventories are accounted for using the first-in, first-out inventory method. Inventory provisions are recorded to reduce inventory to the lower of cost or market value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes. | |||||||
We also use the last-in, first-out (“LIFO”) inventory method in those product groups in which metals inventories comprise a significant portion of our inventories. LIFO inventories at December 31, 2013 and 2012 were $228.8 million (with a current cost of $257.5 million) and $163.6 million (with a current cost of $193.9 million), respectively. | |||||||
Property, Plant and Equipment | ' | ||||||
Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value at the time the assets are being actively marketed for sale. As of December 31, 2013 and 2012, the carrying value of assets held for sale was not material. Estimated useful lives of the related assets are as follows: | |||||||
Buildings and leasehold improvements | 15 to 40 years | ||||||
Machinery and equipment | 3 to 10 years | ||||||
Software | 3 to 7 years | ||||||
Long-lived Assets | ' | ||||||
Long-lived Assets In accordance with Accounting Standards Codification (“ASC”) requirements for Property, Plant and Equipment, a long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. | |||||||
Goodwill and Indefinite-lived Intangible Assets | ' | ||||||
Goodwill and Indefinite-lived Intangible Assets In accordance with ASC requirements for Intangibles — Goodwill and Other, goodwill is tested for impairment at least annually in the fourth quarter, and written down when impaired. An interim impairment test is performed if an event occurs or conditions change that would more likely than not reduce the fair value of the reporting unit below the carrying value. | |||||||
We evaluate the recoverability of goodwill using a weighting of the income (80%) and market (20%) approaches. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates, and then discounting the future cash flows at a market-participant-derived weighted-average cost of capital. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our projection for the U.S. home products market is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine each reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below the operating segment. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying value of a reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of a reporting unit is estimated based on a hypothetical allocation of each reporting unit’s fair value to all of its underlying assets and liabilities. | |||||||
Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. In addition, beginning for 2012 year-end intangible asset impairment testing, we adopted the new Accounting Standards Update that allows us to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. | |||||||
The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. Such events may include, but are not limited to, the impact of the economic environment; a material negative change in relationships with significant customers; or strategic decisions made in response to economic and competitive conditions. | |||||||
Defined Benefit Plans | ' | ||||||
Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. | |||||||
We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation — Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. Compensation increases reflect expected future compensation trends. For postretirement benefits, our health care trend rate assumption is based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 12, “Defined Benefit Plans,” are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. | |||||||
Litigation Contingencies | ' | ||||||
Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC requirements for Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur. | |||||||
Income Taxes | ' | ||||||
Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting bases and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. | |||||||
We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances, and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2013, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $23.7 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $2.5 million to $3.5 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings. | |||||||
Revenue Recognition | ' | ||||||
Revenue Recognition Revenue is recorded when persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectibility is reasonably assured. Revenue is recorded net of applicable provisions for discounts, returns and allowances. We record estimates for reductions to revenue for customer programs and incentives, including price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized. Sales returns are based on historical returns, current trends and forecasts of product demand. | |||||||
Cost of Products Sold | ' | ||||||
Cost of Products Sold Cost of products sold includes all costs to make products saleable, such as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. | |||||||
Customer Program Costs | ' | ||||||
Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for in either “net sales” or the category “selling, general and administrative expenses” at the time the program is initiated and/or the revenue is recognized. The costs are predominantly recognized in “net sales” and include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, level of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in “selling, general and administrative expenses” include product displays, point of sale materials, and media production costs. The costs included in the “selling, general and administrative expenses” category were $46.0 million, $46.2 million and $47.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||
Selling, General and Administrative Expenses | ' | ||||||
Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $189.7 million, $181.3 million and $164.1 million in 2013, 2012 and 2011, respectively. | |||||||
Advertising costs, which amounted to $205.3 million, $182.4 million and $180.4 million in 2013, 2012 and 2011, respectively, are principally expensed as incurred. Advertising costs include product displays, media production costs, and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $56.7 million, $49.9 million and $49.8 million in 2013, 2012 and 2011, respectively. Advertising costs recorded in selling, general and administrative expenses were $148.6 million, $132.5 million and $130.6 million in 2013, 2012 and 2011, respectively. | |||||||
Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $55.6 million, $47.0 million and $35.1 million in 2013, 2012 and 2011, respectively, are expensed as incurred. | |||||||
Stock-based Compensation | ' | ||||||
Stock-based Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance award is based on the stock price at the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the share price at the date of grant. See Note 11, “Stock-Based Compensation,” for additional information. | |||||||
Earnings Per Share | ' | ||||||
Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Home & Security by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. In periods prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share because no Home & Security stock-based awards were outstanding prior to the Separation. See Note 20, “Earnings Per Share,” for further discussion. | |||||||
Foreign Currency Translation | ' | ||||||
Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the “accumulated other comprehensive income” (“AOCI”) caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into functional currency with resulting transaction gains or losses recorded in other expense (income), net. | |||||||
Derivative Financial Instruments | ' | ||||||
Derivative Financial Instruments In accordance with ASC requirements for Derivatives and Hedging, all derivatives are recognized as either assets or liabilities on the balance sheet and measurement of those instruments is at fair value. If the derivative is designated as a fair value hedge and is highly effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded directly to a separate component of AOCI, and are recognized in the consolidated statement of income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. | |||||||
Net deferred currency gains of $2.3 million and $0.6 million were reclassified into earnings for the years ended December 31, 2013 and 2012, respectively. Net deferred currency losses of $0.5 million were reclassified into earnings in 2011. Based on foreign exchange rates as of December 31, 2013, we estimate that $1.3 million of net currency derivative gains included in AOCI as of December 31, 2013 will be reclassified to earnings within the next twelve months. | |||||||
Recently Issued Accounting Standards | ' | ||||||
Recently Issued Accounting Standards | |||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides explicit guidance on presentation in financial statements. The amendment is effective for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements. | |||||||
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity | |||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 clarifies the accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The ASU also clarifies the treatment of business combinations achieved in stages involving a foreign entity. The amendment is effective prospectively for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Estimated Useful Lives of Property Plant and Equipment | ' | ||||||
Estimated useful lives of the related assets are as follows: | |||||||
Buildings and leasehold improvements | 15 to 40 years | ||||||
Machinery and equipment | 3 to 10 years | ||||||
Software | 3 to 7 years |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Information on Balance Sheets | ' | ||||||||
Supplemental information on our year-end consolidated balance sheets is as follows: | |||||||||
(In millions) | 2013 | 2012 | |||||||
Inventories: | |||||||||
Raw materials and supplies | $ | 184.6 | $ | 144.3 | |||||
Work in process | 52.5 | 38.6 | |||||||
Finished products | 234.5 | 174.3 | |||||||
Total inventories | $ | 471.6 | $ | 357.2 | |||||
Property, plant and equipment: | |||||||||
Land and improvements | $ | 53.8 | $ | 47.6 | |||||
Buildings and improvements to leaseholds | 374.5 | 324.5 | |||||||
Machinery and equipment | 1,066.30 | 1,056.30 | |||||||
Construction in progress | 61.5 | 62.8 | |||||||
Property, plant and equipment, gross | 1,556.10 | 1,491.20 | |||||||
Less: accumulated depreciation | 1,021.70 | 981.8 | |||||||
Property, plant and equipment, net of accumulated depreciation | $ | 534.4 | $ | 509.4 | |||||
Other current liabilities: | |||||||||
Accrued salaries, wages and other compensation | $ | 128.9 | $ | 109 | |||||
Accrued customer programs | 122.6 | 102.8 | |||||||
Other accrued expenses | 137.4 | 105.6 | |||||||
Total other current liabilities | $ | 388.9 | $ | 317.4 |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Preliminary Allocation of Purchase Price to Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||
The following table summarizes the preliminary allocation of the purchase price to estimated fair values of assets acquired and liabilities assumed as of the date of the acquisition. This allocation is expected to change after asset and liability valuations are finalized. | |||||||||
(In millions) | |||||||||
Accounts receivable | $ | 41.4 | |||||||
Inventories | 25.4 | ||||||||
Property, plant and equipment | 29.6 | ||||||||
Goodwill | 142.3 | ||||||||
Identifiable intangible assets | 89.4 | ||||||||
Other assets | 8.9 | ||||||||
Total assets | 337 | ||||||||
Other current liabilities and accruals | 35 | ||||||||
Net assets acquired | $ | 302 | |||||||
Proforma Consolidated Financial Information | ' | ||||||||
The following unaudited pro forma summary presents consolidated financial information as if WoodCrafters had been acquired on January 1, 2012. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and WoodCrafters. The pro forma results include adjustments for the impact of a preliminary allocation of the purchase price and interest expense associated with debt that would have been incurred in connection with the acquisition. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2012. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. | |||||||||
(In millions) | 2013 | 2012 | |||||||
Net sales | $ | 4,264.80 | $ | 3,771.00 | |||||
Net income attributable to Home & Security | 240.8 | 126.6 | |||||||
Basic earnings per common share | $ | 1.45 | $ | 0.79 | |||||
Diluted earnings per common share | $ | 1.41 | $ | 0.76 |
Goodwill_and_Identifiable_Inta1
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Change in Net Carrying Amount of Goodwill by Segment | ' | ||||||||||||||||||||||||
The change in the net carrying amount of goodwill by segment was as follows: | |||||||||||||||||||||||||
(In millions) | Kitchen & | Plumbing & | Advanced | Security & | Total | ||||||||||||||||||||
Bath | Accessories | Material | Storage | Goodwill | |||||||||||||||||||||
Cabinetry | Windows & | ||||||||||||||||||||||||
Door | |||||||||||||||||||||||||
Systems | |||||||||||||||||||||||||
Balance at December 31, 2011(a) | $ | 491.2 | $ | 569.7 | $ | 230.2 | $ | 75.5 | $ | 1,366.60 | |||||||||||||||
2012 translation adjustments | 0.6 | — | — | 0.2 | 0.8 | ||||||||||||||||||||
Acquisition-related adjustments | — | — | (1.1 | ) | 15.1 | 14 | |||||||||||||||||||
Balance at December 31, 2012(a) | $ | 491.8 | $ | 569.7 | $ | 229.1 | $ | 90.8 | $ | 1,381.40 | |||||||||||||||
2013 translation adjustments | (2.4 | ) | — | — | (1.4 | ) | (3.8 | ) | |||||||||||||||||
Acquisition-related adjustments | 142.3 | — | — | — | 142.3 | ||||||||||||||||||||
Balance at December 31, 2013(a) | $ | 631.7 | $ | 569.7 | $ | 229.1 | $ | 89.4 | $ | 1,519.90 | |||||||||||||||
(a) | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). | ||||||||||||||||||||||||
Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets | ' | ||||||||||||||||||||||||
The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||
Indefinite-lived intangible assets — tradenames | $ | 597.2 | $ | (42.0 | )(a) | $ | 555.2 | $ | 603.4 | $ | (42.0 | )(a) | $ | 561.4 | |||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Tradenames | 19.6 | (7.4 | ) | 12.2 | 17.8 | (6.9 | ) | 10.9 | |||||||||||||||||
Customer and contractual relationships | 348.6 | (182.5 | ) | 166.1 | 274.2 | (174.4 | ) | 99.8 | |||||||||||||||||
Patents/proprietary technology | 63.2 | (43.8 | ) | 19.4 | 52.6 | (41.1 | ) | 11.5 | |||||||||||||||||
Total | 431.4 | (233.7 | ) | 197.7 | 344.6 | (222.4 | ) | 122.2 | |||||||||||||||||
Total identifiable intangibles | $ | 1,028.60 | $ | (275.7 | ) | $ | 752.9 | $ | 948 | $ | (264.4 | ) | $ | 683.6 | |||||||||||
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets. |
External_Debt_and_Financing_Ar1
External Debt and Financing Arrangements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of External Long-Term Debt | ' | ||||||||
The components of external long-term debt were as follows: | |||||||||
(In millions) | 2013 | 2012 | |||||||
$650 million revolving credit agreement due July 2018 | $ | — | $ | — | |||||
$350 million term loan due July 2018 | 350 | 320 | |||||||
Total debt | 350 | 320 | |||||||
Less: current portion | — | 22.5 | |||||||
Total long-term debt | $ | 350 | $ | 297.5 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Values of Derivative Instruments | ' | ||||||||||||||
The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2013 and 2012 were: | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Location | 2013 | 2012 | ||||||||||||
Assets: | |||||||||||||||
Foreign exchange contracts | Other current assets | $ | 2.1 | $ | 1 | ||||||||||
Commodity contracts | Other current assets | — | 0.2 | ||||||||||||
Net investment hedges | Other current assets | 0.6 | — | ||||||||||||
Total assets | $ | 2.7 | $ | 1.2 | |||||||||||
Liabilities: | |||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 0.3 | $ | 0.8 | ||||||||||
Commodity contracts | Other current liabilities | — | 0.1 | ||||||||||||
Total liabilities | $ | 0.3 | $ | 0.9 | |||||||||||
Effects of Derivative Financial Instruments on Consolidated Statements of Income | ' | ||||||||||||||
The effects of derivative financial instruments on the consolidated statements of income in 2013, 2012 and 2011 were: | |||||||||||||||
(In millions) | Gain (Loss) Recognized in Income | ||||||||||||||
Type of hedge | Location | 2013 | 2012 | 2011 | |||||||||||
Cash flow | Net sales | $ | — | $ | 0.2 | $ | (0.6 | ) | |||||||
Cost of products sold | 2 | 0.6 | 2.5 | ||||||||||||
Fair value | Other income (expense), net | 1.2 | (0.3 | ) | — | ||||||||||
Total | $ | 3.2 | $ | 0.5 | $ | 1.9 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Fair Value | |||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||
Assets: | |||||||||||||||||
Derivative asset financial instruments (level 2) | $ | 2.7 | $ | 1.2 | |||||||||||||
Deferred compensation program assets (level 1) | 3.5 | 3.6 | |||||||||||||||
Total assets | $ | 6.2 | $ | 4.8 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative liability financial instruments (level 2) | $ | 0.3 | $ | 0.9 | |||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||
In accordance with ASC requirements for Fair Value Measurements, below is the disclosure for assets measured at fair value on a non-recurring basis. There were no losses for indefinite-lived intangible assets in 2013. | |||||||||||||||||
(in millions) | 2012 | 2011 | |||||||||||||||
Fair Value Measurements Using | Total | Fair Value Measurements Using | Total | ||||||||||||||
Significant Unobservable | Losses | Significant Unobservable | Losses | ||||||||||||||
Inputs (level 3) | Inputs (level 3) | ||||||||||||||||
Indefinite-lived intangible assets | $ | 249.7 | $ | 15.8 | $ | 227 | $ | 90 |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Common Stock and Treasury Stock Activity | ' | ||||||||||||||||
The number of shares of common stock and treasury stock and the share activity for 2013 and 2012 were as follows: | |||||||||||||||||
Common Shares | Treasury Shares | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at the beginning of the year | 163,855,647 | 156,008,132 | 700,102 | 3,357 | |||||||||||||
Stock plan shares issued | 4,516,507 | 8,544,260 | — | — | |||||||||||||
Shares surrendered by optionees | (296,100 | ) | (342,498 | ) | 296,100 | 342,498 | |||||||||||
Common stock repurchases | (1,408,118 | ) | (354,247 | ) | 1,408,118 | 354,247 | |||||||||||
Balance at the end of the year | 166,667,936 | 163,855,647 | 2,404,320 | 700,102 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Pre-Tax Stock-Based Compensation Expense | ' | ||||||||||||||||||||||
Pre-tax stock-based compensation expense was as follows: | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Stock option awards | $ | 8.3 | $ | 12.5 | $ | 14.1 | |||||||||||||||||
Restricted stock units | 10.8 | 10 | 1.6 | ||||||||||||||||||||
Performance awards | 6.7 | 3.3 | — | ||||||||||||||||||||
Director awards | 0.9 | 1.1 | — | ||||||||||||||||||||
Total pre-tax expense | 26.7 | 26.9 | 15.7 | ||||||||||||||||||||
Tax benefit | 9.7 | 9.7 | 5.3 | ||||||||||||||||||||
Total after tax expense | $ | 17 | $ | 17.2 | $ | 10.4 | |||||||||||||||||
Restricted Stock Units Activity | ' | ||||||||||||||||||||||
A summary of activity with respect to restricted stock units outstanding under the Plans related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows: | |||||||||||||||||||||||
Number of Restricted | Weighted-Average | ||||||||||||||||||||||
Stock Units | Grant-Date | ||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Non-vested at December 31, 2012 | 1,767,268 | $ | 14.49 | ||||||||||||||||||||
Granted | 389,350 | 34.83 | |||||||||||||||||||||
Vested | (730,421 | ) | 13.85 | ||||||||||||||||||||
Cancelled | (128,901 | ) | 17.24 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 1,297,296 | $ | 20.68 | ||||||||||||||||||||
Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options | ' | ||||||||||||||||||||||
The fair value of Home & Security options granted subsequent to the Separation and our Former Parent’s stock options granted to Home & Security employees prior to the Separation was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: | |||||||||||||||||||||||
Home & Security | Former Parent | ||||||||||||||||||||||
Grants | Grants | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2011 | ||||||||||||||||||||
Current expected dividend yield | 1.50% | 1.50% | 1.50% | 2.00% | |||||||||||||||||||
Expected volatility | 32.00% | 35.00% | 39.00% | 33.20% | |||||||||||||||||||
Risk-free interest rate | 1.10% | 1.20% | 1.20% | 2.30% | |||||||||||||||||||
Expected term | 6.0 years | 6.0 years | 6.5 years | 5.5 years | |||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||||
A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows: | |||||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||||
Average | |||||||||||||||||||||||
Exercise | |||||||||||||||||||||||
Price | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 13,070,134 | $ | 13.14 | ||||||||||||||||||||
Granted | 727,200 | 33.25 | |||||||||||||||||||||
Exercised | (3,770,311 | ) | 13.48 | ||||||||||||||||||||
Expired/forfeited | (377,463 | ) | 16.6 | ||||||||||||||||||||
Outstanding at December 31, 2013 | 9,649,560 | $ | 14.39 | ||||||||||||||||||||
Options Outstanding and Exercisable | ' | ||||||||||||||||||||||
Options outstanding and exercisable at December 31, 2013 were as follows: | |||||||||||||||||||||||
Options Outstanding(a) | Options Exercisable(b) | ||||||||||||||||||||||
Range Of | Options | Weighted- | Weighted- | Options | Weighted- | ||||||||||||||||||
Exercise Prices | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||
Life | |||||||||||||||||||||||
$9.00 to $11.99 | 2,788,572 | 3 | $ | 9.71 | 2,788,572 | $ | 9.71 | ||||||||||||||||
12.00 to 14.00 | 4,590,316 | 6.9 | 13.07 | 2,557,659 | 13.21 | ||||||||||||||||||
14.01 to 40.96 | 2,270,672 | 6.5 | 22.82 | 968,430 | 17.69 | ||||||||||||||||||
9,649,560 | 5.8 | $ | 14.39 | 6,314,661 | $ | 12.35 | |||||||||||||||||
(a) | At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million. | ||||||||||||||||||||||
(b) | At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million. | ||||||||||||||||||||||
Summarizes Information of Performance Share Awards | ' | ||||||||||||||||||||||
The following table summarizes information about performance share awards as of December 31, 2013, as well as activity during the year then ended, based on the target award amounts in the performance share award agreements: | |||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Performance Share | Grant-Date | ||||||||||||||||||||||
Awards | Fair Value | ||||||||||||||||||||||
Non-vested at December 31, 2012 | 328,100 | $ | 19.47 | ||||||||||||||||||||
Granted | 210,500 | 34.4 | |||||||||||||||||||||
Cancelled | (39,100 | ) | 24.38 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 499,500 | $ | 25.38 |
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Obligations and Funded Status | ' | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Obligations and Funded Status at December 31 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in the Projected Benefit Obligation (PBO): | |||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 722.5 | $ | 639.5 | $ | 73.3 | $ | 93.9 | |||||||||||||||||
Service cost | 11.4 | 12.1 | 0.3 | 0.5 | |||||||||||||||||||||
Interest cost | 30.1 | 30.7 | 1.7 | 3.9 | |||||||||||||||||||||
Plan amendments | — | 0.4 | (34.7 | ) | (29.8 | ) | |||||||||||||||||||
Actuarial (gain) loss | (73.0 | ) | 66 | (0.3 | ) | 9.9 | |||||||||||||||||||
Participants’ contributions | — | — | 0.5 | 0.8 | |||||||||||||||||||||
Benefits paid | (28.7 | ) | (26.2 | ) | (7.0 | ) | (6.4 | ) | |||||||||||||||||
Medicare Part D reimbursement | — | — | 0.4 | 0.5 | |||||||||||||||||||||
Projected benefit obligation at end of year | $ | 662.3 | $ | 722.5 | $ | 34.2 | $ | 73.3 | |||||||||||||||||
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | $ | 648.5 | $ | 703.3 | |||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 536.8 | $ | 477.9 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 74.6 | 63.7 | — | — | |||||||||||||||||||||
Employer contributions | 1.1 | 21.4 | 6.1 | 5.1 | |||||||||||||||||||||
Participants’ contributions | — | — | 0.5 | 0.8 | |||||||||||||||||||||
Medicare Part D reimbursement | — | — | 0.4 | 0.5 | |||||||||||||||||||||
Benefits paid | (28.7 | ) | (26.2 | ) | (7.0 | ) | (6.4 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 583.8 | $ | 536.8 | $ | — | $ | — | |||||||||||||||||
Funded status (Fair value of plan assets less PBO) | $ | (78.5 | ) | $ | (185.7 | ) | $ | (34.2 | ) | $ | (73.3 | ) | |||||||||||||
Amounts Recognized in Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Current benefit payment liability | $ | (0.8 | ) | $ | (0.8 | ) | $ | (3.5 | ) | $ | (5.5 | ) | |||||||||||||
Accrued benefit liability | (77.7 | ) | (184.9 | ) | (30.7 | ) | (67.8 | ) | |||||||||||||||||
Net amount recognized | $ | (78.5 | ) | $ | (185.7 | ) | $ | (34.2 | ) | $ | (73.3 | ) | |||||||||||||
Amounts in Accumulated Other Comprehensive Income that have not yet been Recognized as Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
The amounts in accumulated other comprehensive income on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
Net actuarial loss at December 31, 2011 | 63.5 | 6 | |||||||||||||||||||||||
Recognition of actuarial loss | (30.6 | ) | (11.6 | ) | |||||||||||||||||||||
Current year actuarial loss | 39.3 | 9.9 | |||||||||||||||||||||||
Net actuarial loss at December 31, 2012 | $ | 72.2 | $ | 4.3 | |||||||||||||||||||||
Recognition of actuarial gain | (0.9 | ) | (4.5 | ) | |||||||||||||||||||||
Current year actuarial gain | (105.6 | ) | (0.3 | ) | |||||||||||||||||||||
Net actuarial gain at December 31, 2013 | $ | (34.3 | ) | $ | (0.5 | ) | |||||||||||||||||||
Net prior service cost at December 31, 2011 | 0.5 | 1 | |||||||||||||||||||||||
Prior service cost (credit) recognition due to plan amendments | 0.4 | (29.8 | ) | ||||||||||||||||||||||
Amortization | (0.3 | ) | 2.6 | ||||||||||||||||||||||
Net prior service cost (credit) at December 31, 2012 | $ | 0.6 | $ | (26.2 | ) | ||||||||||||||||||||
Prior service credit recognition due to plan amendments | — | (34.7 | ) | ||||||||||||||||||||||
Amortization | (0.1 | ) | 27.4 | ||||||||||||||||||||||
Net prior service cost (credit) at December 31, 2013 | $ | 0.5 | $ | (33.5 | ) | ||||||||||||||||||||
Total at December 31, 2013 | $ | (33.8 | ) | $ | (34.0 | ) | |||||||||||||||||||
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits | ' | ||||||||||||||||||||||||
Components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 11.4 | $ | 12.1 | $ | 12.9 | $ | 0.3 | $ | 0.5 | $ | 0.5 | |||||||||||||
Interest cost | 30.1 | 30.7 | 31 | 1.7 | 3.9 | 4.4 | |||||||||||||||||||
Expected return on plan assets | (41.8 | ) | (36.8 | ) | (41.3 | ) | — | — | — | ||||||||||||||||
Recognition of actuarial losses | 0.8 | 30.6 | 80 | 4.4 | 11.6 | — | |||||||||||||||||||
Amortization of prior service cost (credits) | 0.1 | 0.3 | 0.3 | (27.4 | ) | (2.6 | ) | 0.4 | |||||||||||||||||
Curtailment and settlement losses | 0.1 | — | 1.8 | 0.1 | — | — | |||||||||||||||||||
Net periodic benefit cost | $ | 0.7 | $ | 36.9 | $ | 84.7 | $ | (20.9 | ) | $ | 13.4 | $ | 5.3 | ||||||||||||
Schedule of Assumptions Used | ' | ||||||||||||||||||||||||
Assumptions | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 5.00% | 4.20% | 4.30% | 3.70% | |||||||||||||||||||||
Rate of compensation increase | 4.00% | 4.00% | — | — | |||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.20% | 4.90% | 5.80% | 3.70% | 4.60% | 5.30% | |||||||||||||||||||
Expected long-term rate of return on plan assets | 7.80% | 7.80% | 8.50% | — | — | — | |||||||||||||||||||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | — | — | — | |||||||||||||||||||
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost | ' | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31: | |||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.1/7.5 | %(a) | 7.5/7.0 | %(a) | |||||||||||||||||||||
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2022 | 2017 | |||||||||||||||||||||||
(a) | The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate. | ||||||||||||||||||||||||
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||
(In millions) | 1-Percentage- | 1-Percentage- | |||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 0.1 | $ | (0.1 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation | 1.8 | (2.0 | ) | ||||||||||||||||||||||
Reconciliation of Level Three Measurements | ' | ||||||||||||||||||||||||
A reconciliation of Level 3 measurements as of December 31, 2013 was as follows: | |||||||||||||||||||||||||
Commingled Funds | |||||||||||||||||||||||||
(In millions) | Group | Multi-strategy | Real estate | Total | |||||||||||||||||||||
annuity/ | hedge funds | ||||||||||||||||||||||||
insurance | |||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||
January 1, 2013 | $ | 20.6 | $ | 18.8 | $ | 24.4 | $ | 63.8 | |||||||||||||||||
Actual return on assets related to assets still held | 0.6 | 1.7 | 3.4 | 5.7 | |||||||||||||||||||||
Purchases, sales and settlements | — | — | (5.0 | ) | (5.0 | ) | |||||||||||||||||||
December 31, 2013 | $ | 21.2 | $ | 20.5 | $ | 22.8 | $ | 64.5 | |||||||||||||||||
A reconciliation of Level 3 measurements as of December 31, 2012 was as follows: | |||||||||||||||||||||||||
Commingled Funds | |||||||||||||||||||||||||
(In millions) | Group | Multi-strategy | Real estate | Total | |||||||||||||||||||||
annuity/ | hedge funds | ||||||||||||||||||||||||
insurance | |||||||||||||||||||||||||
contracts | |||||||||||||||||||||||||
1-Jan-12 | $ | 20 | $ | 17.5 | $ | 21.9 | $ | 59.4 | |||||||||||||||||
Actual return on assets related to assets still held | 0.6 | 1.3 | 2.5 | 4.4 | |||||||||||||||||||||
31-Dec-12 | $ | 20.6 | $ | 18.8 | $ | 24.4 | $ | 63.8 | |||||||||||||||||
Pension Assets by Major Category of Plan Assets and Type of Fair Value Measurement | ' | ||||||||||||||||||||||||
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2013 were as follows: | |||||||||||||||||||||||||
(In millions) | Total as of | Level 2 – | Level 3 – | ||||||||||||||||||||||
balance | Significant | Significant | |||||||||||||||||||||||
sheet date | other observable | unobservable | |||||||||||||||||||||||
inputs | inputs | ||||||||||||||||||||||||
Group annuity/insurance contracts | $ | 21.2 | $ | — | $ | 21.2 | |||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||
Cash and cash equivalents | 8.1 | 8.1 | — | ||||||||||||||||||||||
Equity | 278.6 | 278.6 | — | ||||||||||||||||||||||
Fixed income | 232.6 | 232.6 | — | ||||||||||||||||||||||
Multi-strategy hedge funds | 20.5 | — | 20.5 | ||||||||||||||||||||||
Real estate | 22.8 | — | 22.8 | ||||||||||||||||||||||
Total | $ | 583.8 | $ | 519.3 | $ | 64.5 | |||||||||||||||||||
Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2012 were as follows: | |||||||||||||||||||||||||
(In millions) | Total as of | Level 2 – | Level 3 – | ||||||||||||||||||||||
balance | Significant | Significant | |||||||||||||||||||||||
sheet date | other observable | unobservable | |||||||||||||||||||||||
inputs | inputs | ||||||||||||||||||||||||
Group annuity/insurance contracts | $ | 20.6 | $ | — | $ | 20.6 | |||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||
Cash and cash equivalents | 6.3 | 6.3 | — | ||||||||||||||||||||||
Equity | 331.5 | 331.5 | — | ||||||||||||||||||||||
Fixed income | 135.2 | 135.2 | — | ||||||||||||||||||||||
Multi-strategy hedge funds | 18.8 | — | 18.8 | ||||||||||||||||||||||
Real estate | 24.4 | — | 24.4 | ||||||||||||||||||||||
Total | $ | 536.8 | $ | 473 | $ | 63.8 | |||||||||||||||||||
Schedule of Expected Benefit Payments | ' | ||||||||||||||||||||||||
The following retirement benefit payments are expected to be paid: | |||||||||||||||||||||||||
(In millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2014 | $ | 32.2 | $ | 3.4 | |||||||||||||||||||||
2015 | 34.1 | 3.4 | |||||||||||||||||||||||
2016 | 36 | 3.4 | |||||||||||||||||||||||
2017 | 37.5 | 2.8 | |||||||||||||||||||||||
2018 | 39 | 2.8 | |||||||||||||||||||||||
Years 2019-2023 | 215 | 12.7 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Loss Income Before Income Taxes and Noncontrolling Interests | ' | ||||||||||||
The components of income (loss) before income taxes and noncontrolling interests were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic operations | $ | 276.9 | $ | 95 | $ | (73.1 | ) | ||||||
Foreign operations | 68 | 59 | 29.5 | ||||||||||
Income (loss) before income taxes and noncontrolling interests | $ | 344.9 | $ | 154 | $ | (43.6 | ) | ||||||
Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations | ' | ||||||||||||
A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision (benefit) reported was as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Income tax expense (benefit) computed at federal statutory income tax rate | $ | 120.7 | $ | 53.9 | $ | (15.3 | ) | ||||||
Other income taxes, net of federal tax benefit | 8 | 3.8 | (1.8 | ) | |||||||||
Foreign taxes at a different rate than U.S. federal statutory income tax rate | (10.2 | ) | (7.0 | ) | (5.3 | ) | |||||||
Tax effect on foreign dividends | — | 12.4 | 10.2 | ||||||||||
Tax benefit on income attributable to domestic production activities | (5.8 | ) | (2.2 | ) | (2.6 | ) | |||||||
Net adjustments for uncertain tax positions | 2 | (11.0 | ) | (9.7 | ) | ||||||||
Net effect of rate changes on deferred taxes | (3.0 | ) | (0.2 | ) | (2.9 | ) | |||||||
Prior period items | — | (3.9 | ) | — | |||||||||
Valuation allowance increase (decrease) | 2.1 | (8.9 | ) | 16.8 | |||||||||
Miscellaneous other, net | 0.2 | (2.6 | ) | 1.6 | |||||||||
Income tax expense (benefit) as reported | $ | 114 | $ | 34.3 | $ | (9.0 | ) | ||||||
Effective income tax rate | 33.1 | % | 22.3 | % | 20.6 | % | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits (UTBs) was as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits — beginning of year | $ | 20.8 | $ | 35.4 | $ | 38.8 | |||||||
Gross additions — current year tax positions | 4.4 | 2.8 | 2.3 | ||||||||||
Gross additions — prior year tax positions | 0.7 | 0.6 | 7.2 | ||||||||||
Gross additions — purchase accounting adjustments | 1.6 | — | — | ||||||||||
Gross reductions — prior year tax positions | (3.2 | ) | (13.5 | ) | (12.0 | ) | |||||||
Gross reductions — settlements with taxing authorities | (0.6 | ) | (4.0 | ) | (0.4 | ) | |||||||
Impact of change in foreign exchange rates | — | — | (0.5 | ) | |||||||||
Impact due to expiration of statutes of limitations | — | (0.5 | ) | — | |||||||||
Unrecognized tax benefits — end of year | $ | 23.7 | $ | 20.8 | $ | 35.4 | |||||||
Income Taxes | ' | ||||||||||||
Income taxes in 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 102.8 | $ | 17.6 | $ | 26 | |||||||
Foreign | 12.8 | 13.1 | 8.9 | ||||||||||
State and other | 11.2 | 4.1 | 16.9 | ||||||||||
Deferred | |||||||||||||
Federal, state and other | (13.0 | ) | 4.8 | (66.8 | ) | ||||||||
Foreign | 0.2 | (5.3 | ) | 6 | |||||||||
Total income tax expense (benefit) | $ | 114 | $ | 34.3 | $ | (9.0 | ) | ||||||
Components of Net Deferred Tax Assets Liabilities | ' | ||||||||||||
The components of net deferred tax assets (liabilities) as of December 31, 2013 and 2012 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Compensation and benefits | $ | 36.8 | $ | 32.8 | |||||||||
Defined benefit plans | 44.2 | 84.3 | |||||||||||
Capitalized inventories | 13.1 | 13.8 | |||||||||||
Accounts receivable | 6.8 | 6.9 | |||||||||||
Other accrued expenses | 17.7 | 18 | |||||||||||
Net operating loss and other tax carryforwards | 25.5 | 32.7 | |||||||||||
Valuation allowance | (20.7 | ) | (19.2 | ) | |||||||||
Miscellaneous | 14.7 | 10.7 | |||||||||||
Total deferred tax assets | 138.1 | 180 | |||||||||||
Deferred tax liabilities: | |||||||||||||
LIFO inventories | (12.5 | ) | (12.5 | ) | |||||||||
Fixed assets | (63.4 | ) | (69.4 | ) | |||||||||
Identifiable intangible assets | (252.9 | ) | (253.6 | ) | |||||||||
Miscellaneous | (8.1 | ) | (12.3 | ) | |||||||||
Total deferred tax liabilities | (336.9 | ) | (347.8 | ) | |||||||||
Net deferred tax liability | $ | (198.8 | ) | $ | (167.8 | ) | |||||||
In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2013 and 2012 as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Other current assets | $ | 46.2 | $ | 55.6 | |||||||||
Other current liabilities | (0.6 | ) | (1.2 | ) | |||||||||
Other assets | 1.4 | 1.8 | |||||||||||
Deferred income taxes | (245.8 | ) | (224.0 | ) | |||||||||
Net deferred tax liability | $ | (198.8 | ) | $ | (167.8 | ) |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Pre Tax Restructuring and Other Charges | ' | ||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2013 were: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Other Charges(a) | |||||||||||||||||
(In millions) | Restructuring | Cost of | SG&A(b) | Total | |||||||||||||
Charges | Products | Charges | |||||||||||||||
Sold | |||||||||||||||||
Kitchen & Bath Cabinetry | $ | 2.2 | $ | 0.1 | $ | — | $ | 2.3 | |||||||||
Plumbing & Accessories | 0.6 | 0.6 | 0.2 | 1.4 | |||||||||||||
Advanced Material Windows & Door Systems | 1.4 | — | — | 1.4 | |||||||||||||
Total | $ | 4.2 | $ | 0.7 | $ | 0.2 | $ | 5.1 | |||||||||
(a) | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||||||||||||
(b) | Selling, general and administrative expenses | ||||||||||||||||
2013 restructuring and other charges related to supply chain initiatives. | |||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2012 were: | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||||||
Charges | Charges(a) | Charges | |||||||||||||||
Kitchen & Bath Cabinetry | $ | 4.7 | $ | 8.9 | $ | 13.6 | |||||||||||
Advanced Material Windows & Door Systems | 0.8 | (3.4 | ) | (2.6 | ) | ||||||||||||
Security & Storage | (1.0 | ) | — | (1.0 | ) | ||||||||||||
Total | $ | 4.5 | $ | 5.5 | $ | 10 | |||||||||||
(a) | “Other Charges,” which were recorded in cost of products sold in 2012, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||||||||||||
Pre-tax restructuring and other charges for the year ended December 31, 2011 were: | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||||||
Charges | Charges(a) | Charges | |||||||||||||||
Kitchen & Bath Cabinetry | $ | 3.7 | $ | 9 | $ | 12.7 | |||||||||||
Plumbing & Accessories | — | (0.1 | ) | (0.1 | ) | ||||||||||||
Advanced Material Windows & Door Systems | 1 | 6.4 | 7.4 | ||||||||||||||
Total | $ | 4.7 | $ | 15.3 | $ | 20 | |||||||||||
(a) | “Other Charges,” which were recorded in cost of products sold in 2011, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. |
Commitments_Tables
Information on Business Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Sales and Operating Income by Segment | ' | ||||||||||||
The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,642.20 | $ | 1,326.60 | $ | 1,256.30 | |||||||
Plumbing & Accessories | 1,287.00 | 1,100.70 | 962.8 | ||||||||||
Advanced Material Windows & Door Systems | 657.8 | 587.2 | 552.9 | ||||||||||
Security & Storage | 570.4 | 576.6 | 556.6 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Operating income (loss): | |||||||||||||
Kitchen & Bath Cabinetry | $ | 97.1 | $ | 20.5 | $ | 5.7 | |||||||
Plumbing & Accessories | 228.3 | 169.2 | 138 | ||||||||||
Advanced Material Windows & Door Systems | 14.4 | (1.0 | ) | (101.2 | ) | ||||||||
Security & Storage | 90.4 | 75.4 | 62.6 | ||||||||||
Less: Corporate expenses(a) | (73.1 | ) | (102.4 | ) | (120.7 | ) | |||||||
Operating income (loss) | $ | 357.1 | $ | 161.7 | $ | (15.6 | ) | ||||||
Total assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,588.00 | $ | 1,248.50 | $ | 1,273.20 | |||||||
Plumbing & Accessories | 1,176.30 | 1,081.70 | 1,065.00 | ||||||||||
Advanced Material Windows & Door Systems | 766.1 | 778.2 | 804.2 | ||||||||||
Security & Storage | 461.8 | 459.8 | 399.9 | ||||||||||
Corporate(b) | 185.9 | 305.7 | 95.6 | ||||||||||
Total assets | $ | 4,178.10 | $ | 3,873.90 | $ | 3,637.90 | |||||||
(a) Below is a table detailing Corporate expenses: | |||||||||||||
Corporate expenses: | |||||||||||||
General and administrative expense(c) | $ | (78.0 | ) | $ | (63.7 | ) | $ | (44.1 | ) | ||||
Business separation costs | — | — | (2.4 | ) | |||||||||
Defined benefit plan costs | 10.1 | 3.5 | 5.8 | ||||||||||
Defined benefit plan recognition of actuarial losses | (5.2 | ) | (42.2 | ) | (80.0 | ) | |||||||
Total Corporate expenses | $ | (73.1 | ) | $ | (102.4 | ) | $ | (120.7 | ) | ||||
(b) | Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent. | ||||||||||||
(c) | General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011. | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 29.3 | $ | 38.8 | $ | 38.6 | |||||||
Plumbing & Accessories | 16.7 | 18.1 | 18.2 | ||||||||||
Advanced Material Windows & Door Systems | 16.9 | 18.5 | 25.8 | ||||||||||
Security & Storage | 13 | 13.3 | 14 | ||||||||||
Corporate | 1.3 | 1.5 | 0.5 | ||||||||||
Depreciation expense | $ | 77.2 | $ | 90.2 | $ | 97.1 | |||||||
Amortization of intangible assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 5.1 | $ | 3.3 | $ | 6 | |||||||
Advanced Material Windows & Door Systems | 7.5 | 7.5 | 7.9 | ||||||||||
Security & Storage | 0.6 | 0.3 | 0.5 | ||||||||||
Amortization of intangible assets | $ | 13.2 | $ | 11.1 | $ | 14.4 | |||||||
Capital expenditures: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 36.4 | $ | 27.7 | $ | 29.1 | |||||||
Plumbing & Accessories | 25.3 | 19.1 | 16.5 | ||||||||||
Advanced Material Windows & Door Systems | 13.6 | 15 | 13.5 | ||||||||||
Security & Storage | 18.9 | 13 | 9.4 | ||||||||||
Corporate | 2.5 | 0.2 | — | ||||||||||
Capital expenditures, gross | 96.7 | 75 | 68.5 | ||||||||||
Less: proceeds from disposition of assets | (2.2 | ) | (13.5 | ) | (3.5 | ) | |||||||
Capital expenditures, net | $ | 94.5 | $ | 61.5 | $ | 65 | |||||||
Net sales by geographic region(a): | |||||||||||||
United States | $ | 3,479.40 | $ | 2,969.10 | $ | 2,755.00 | |||||||
Canada | 418.1 | 405.3 | 390.3 | ||||||||||
China and other international | 259.9 | 216.7 | 183.3 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 439.2 | $ | 428.9 | $ | 443.7 | |||||||
Mexico | 55.6 | 37 | 39.1 | ||||||||||
Canada | 29.4 | 32.7 | 32.8 | ||||||||||
China and other international | 10.2 | 10.8 | 10.2 | ||||||||||
Property, plant and equipment, net | $ | 534.4 | $ | 509.4 | $ | 525.8 | |||||||
(a) | Based on country of destination |
Information_on_Business_Segmen1
Information on Business Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Sales and Operating Income by Segment | ' | ||||||||||||
The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,642.20 | $ | 1,326.60 | $ | 1,256.30 | |||||||
Plumbing & Accessories | 1,287.00 | 1,100.70 | 962.8 | ||||||||||
Advanced Material Windows & Door Systems | 657.8 | 587.2 | 552.9 | ||||||||||
Security & Storage | 570.4 | 576.6 | 556.6 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Operating income (loss): | |||||||||||||
Kitchen & Bath Cabinetry | $ | 97.1 | $ | 20.5 | $ | 5.7 | |||||||
Plumbing & Accessories | 228.3 | 169.2 | 138 | ||||||||||
Advanced Material Windows & Door Systems | 14.4 | (1.0 | ) | (101.2 | ) | ||||||||
Security & Storage | 90.4 | 75.4 | 62.6 | ||||||||||
Less: Corporate expenses(a) | (73.1 | ) | (102.4 | ) | (120.7 | ) | |||||||
Operating income (loss) | $ | 357.1 | $ | 161.7 | $ | (15.6 | ) | ||||||
Total assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 1,588.00 | $ | 1,248.50 | $ | 1,273.20 | |||||||
Plumbing & Accessories | 1,176.30 | 1,081.70 | 1,065.00 | ||||||||||
Advanced Material Windows & Door Systems | 766.1 | 778.2 | 804.2 | ||||||||||
Security & Storage | 461.8 | 459.8 | 399.9 | ||||||||||
Corporate(b) | 185.9 | 305.7 | 95.6 | ||||||||||
Total assets | $ | 4,178.10 | $ | 3,873.90 | $ | 3,637.90 | |||||||
(a) Below is a table detailing Corporate expenses: | |||||||||||||
Corporate expenses: | |||||||||||||
General and administrative expense(c) | $ | (78.0 | ) | $ | (63.7 | ) | $ | (44.1 | ) | ||||
Business separation costs | — | — | (2.4 | ) | |||||||||
Defined benefit plan costs | 10.1 | 3.5 | 5.8 | ||||||||||
Defined benefit plan recognition of actuarial losses | (5.2 | ) | (42.2 | ) | (80.0 | ) | |||||||
Total Corporate expenses | $ | (73.1 | ) | $ | (102.4 | ) | $ | (120.7 | ) | ||||
(b) | Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent. | ||||||||||||
(c) | General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011. | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 29.3 | $ | 38.8 | $ | 38.6 | |||||||
Plumbing & Accessories | 16.7 | 18.1 | 18.2 | ||||||||||
Advanced Material Windows & Door Systems | 16.9 | 18.5 | 25.8 | ||||||||||
Security & Storage | 13 | 13.3 | 14 | ||||||||||
Corporate | 1.3 | 1.5 | 0.5 | ||||||||||
Depreciation expense | $ | 77.2 | $ | 90.2 | $ | 97.1 | |||||||
Amortization of intangible assets: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 5.1 | $ | 3.3 | $ | 6 | |||||||
Advanced Material Windows & Door Systems | 7.5 | 7.5 | 7.9 | ||||||||||
Security & Storage | 0.6 | 0.3 | 0.5 | ||||||||||
Amortization of intangible assets | $ | 13.2 | $ | 11.1 | $ | 14.4 | |||||||
Capital expenditures: | |||||||||||||
Kitchen & Bath Cabinetry | $ | 36.4 | $ | 27.7 | $ | 29.1 | |||||||
Plumbing & Accessories | 25.3 | 19.1 | 16.5 | ||||||||||
Advanced Material Windows & Door Systems | 13.6 | 15 | 13.5 | ||||||||||
Security & Storage | 18.9 | 13 | 9.4 | ||||||||||
Corporate | 2.5 | 0.2 | — | ||||||||||
Capital expenditures, gross | 96.7 | 75 | 68.5 | ||||||||||
Less: proceeds from disposition of assets | (2.2 | ) | (13.5 | ) | (3.5 | ) | |||||||
Capital expenditures, net | $ | 94.5 | $ | 61.5 | $ | 65 | |||||||
Net sales by geographic region(a): | |||||||||||||
United States | $ | 3,479.40 | $ | 2,969.10 | $ | 2,755.00 | |||||||
Canada | 418.1 | 405.3 | 390.3 | ||||||||||
China and other international | 259.9 | 216.7 | 183.3 | ||||||||||
Net sales | $ | 4,157.40 | $ | 3,591.10 | $ | 3,328.60 | |||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 439.2 | $ | 428.9 | $ | 443.7 | |||||||
Mexico | 55.6 | 37 | 39.1 | ||||||||||
Canada | 29.4 | 32.7 | 32.8 | ||||||||||
China and other international | 10.2 | 10.8 | 10.2 | ||||||||||
Property, plant and equipment, net | $ | 534.4 | $ | 509.4 | $ | 525.8 | |||||||
(a) | Based on country of destination |
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Quarterly Financial Data | ' | ||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||
2013 | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||
Year | |||||||||||||||||||||
Net sales | $ | 890 | $ | 1,040.40 | $ | 1,125.10 | $ | 1,101.90 | $ | 4,157.40 | |||||||||||
Gross profit | 300.2 | 377 | 384.9 | 376.7 | 1,438.80 | ||||||||||||||||
Operating income | 56.6 | 106.5 | 98.6 | 95.4 | 357.1 | ||||||||||||||||
Net income | 37.5 | 64.2 | 64.6 | 64.6 | 230.9 | ||||||||||||||||
Net income attributable to Home & Security | 37.3 | 64 | 64.2 | 64.2 | 229.7 | ||||||||||||||||
Basic earnings per common share | 0.23 | 0.39 | 0.39 | 0.39 | 1.39 | ||||||||||||||||
Diluted earnings per common share | 0.22 | 0.37 | 0.37 | 0.37 | 1.34 | ||||||||||||||||
2012 | 1st | 2nd | 3rd | 4th | Full | ||||||||||||||||
Year | |||||||||||||||||||||
Net sales | $ | 798.8 | $ | 935.3 | $ | 909.1 | $ | 947.9 | $ | 3,591.10 | |||||||||||
Gross profit | 246.8 | 317.4 | 302.3 | 303.5 | 1,170.00 | ||||||||||||||||
Operating income | 21.3 | 72.3 | 60.6 | 7.5 | 161.7 | ||||||||||||||||
Net income | 13 | 47.9 | 40.2 | 18.6 | 119.7 | ||||||||||||||||
Net income attributable to Home & Security | 12.5 | 47.8 | 40 | 18.4 | 118.7 | ||||||||||||||||
Basic earnings per common share | 0.08 | 0.3 | 0.25 | 0.11 | 0.74 | ||||||||||||||||
Diluted earnings per common share | 0.08 | 0.29 | 0.24 | 0.11 | 0.71 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Computations of Earnings Loss per Common Share | ' | ||||||||||||
The computations of earnings (loss) per common share were as follows: | |||||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||||
Net income (loss) attributable to Home & Security | $ | 229.7 | $ | 118.7 | $ | (35.6 | ) | ||||||
Basic earnings (loss) per common share | $ | 1.39 | $ | 0.74 | $ | (0.23 | ) | ||||||
Diluted earnings (loss) per common share | $ | 1.34 | $ | 0.71 | $ | (0.23 | ) | ||||||
Basic average shares outstanding | 165.5 | 160.6 | 155.2 | ||||||||||
Diluted average shares outstanding | 171.3 | 166.1 | 155.2 | ||||||||||
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 0.4 | 0.7 | 22.1 |
Other_Expense_Income_Net_Table
Other Expense (Income), Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Other Expense Income Net | ' | ||||||||||||
The components of other expense (income), net for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Foreign currency transaction losses | $ | — | $ | — | $ | 2.7 | |||||||
Asset impairment charge | 6.2 | — | — | ||||||||||
Other items, net | (1.2 | ) | (1.0 | ) | (1.1 | ) | |||||||
Total other expense (income), net | $ | 5 | $ | (1.0 | ) | $ | 1.6 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 were as follows: | |||||||||||||||||
(In millions) | |||||||||||||||||
Details about Accumulated Other | Affected Line Item in the | ||||||||||||||||
Comprehensive Income Components | Statement of Comprehensive Income | ||||||||||||||||
Gains (losses) on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | 2.3 | Cost of products sold | ||||||||||||||
Commodity contract | (0.3 | ) | Cost of products sold | ||||||||||||||
2 | Total before tax | ||||||||||||||||
(0.7 | ) | Tax expense | |||||||||||||||
$ | 1.3 | Net of tax | |||||||||||||||
Defined benefit plan items | |||||||||||||||||
Amortization of prior service cost | $ | 27.3 | (a) | ||||||||||||||
Recognition of actuarial losses | (5.2 | ) | (a) | ||||||||||||||
Curtailment and settlement losses | (0.2 | ) | (a) | ||||||||||||||
21.9 | Total before tax | ||||||||||||||||
(8.4 | ) | Tax expense | |||||||||||||||
$ | 13.5 | Net of tax | |||||||||||||||
Total reclassifications for the period | $ | 14.8 | Net of tax | ||||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, “Defined Benefit Plans,” for additional information. | ||||||||||||||||
Components of and Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The components of and changes in accumulated other comprehensive income were as follows: | |||||||||||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gain | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2010 | $ | 56.9 | $ | 1.2 | $ | (28.6 | ) | $ | 29.5 | ||||||||
Changes during year | (1.8 | ) | (0.7 | ) | (16.4 | ) | (18.9 | ) | |||||||||
Balance at December 31, 2011 | 55.1 | 0.5 | (45.0 | ) | 10.6 | ||||||||||||
Changes during year | 8.4 | (0.3 | ) | 11.9 | 20 | ||||||||||||
Balance at December 31, 2012 | $ | 63.5 | $ | 0.2 | $ | (33.1 | ) | $ | 30.6 | ||||||||
Amounts classified into accumulated other comprehensive income | (10.2 | ) | 2 | 87.8 | 79.6 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1.3 | ) | (13.5 | ) | (14.8 | ) | ||||||||||
Net current period other comprehensive income | (10.2 | ) | 0.7 | 74.3 | 64.8 | ||||||||||||
Balance at December 31, 2013 | $ | 53.3 | $ | 0.9 | $ | 41.2 | $ | 95.4 |
Background_and_Basis_of_Presen1
Background and Basis of Presentation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2012 | Oct. 03, 2011 | Dec. 31, 2011 |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' |
Dividend to Former Parent | $6 | $48.90 | $548.90 |
Former Parent | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' |
Allocated general corporate expenses | ' | ' | 23.4 |
Home and Security | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' |
Number of Home & Security common share Former Parent receiving for each common share | ' | 1 | ' |
Dividend to Former Parent | ' | $500 | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Highly liquid investments included in cash and cash equivalents, maturity period | '3 months | ' | ' | ' |
Allowances for doubtful accounts | $6.80 | $9 | ' | ' |
Inventories | 471.6 | 357.2 | ' | ' |
Unrecognized tax benefits pertaining to uncertain tax positions | 23.7 | 20.8 | 35.4 | 38.8 |
Reasonably possible decrease in total unrecognized tax benefits, minimum | -2.5 | ' | ' | ' |
Reasonably possible decrease in total unrecognized tax benefits, maximum | -3.5 | ' | ' | ' |
Selling, general and administrative expenses | 1,043.10 | 976.9 | 900.6 | ' |
Advertising costs | 205.3 | 182.4 | 180.4 | ' |
Research and development expenses | 55.6 | 47 | 35.1 | ' |
Estimated amount of net foreign currency derivative gains in other comprehensive income reclassified to earnings | 1.3 | ' | ' | ' |
Cash flow | Foreign exchange contracts | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from Accumulated OCI into earnings | 2.3 | 0.6 | -0.5 | ' |
Selling, General and Administrative Expenses | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Customer program costs | 46 | 46.2 | 47.4 | ' |
Shipping And Handling Expense | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Selling, general and administrative expenses | 189.7 | 181.3 | 164.1 | ' |
Advertising | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Selling, general and administrative expenses | 148.6 | 132.5 | 130.6 | ' |
Advertising costs, reduction to net sales | 56.7 | 49.9 | 49.8 | ' |
Income Approach | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Goodwill Recoverabilty Weighted Percentage | 80.00% | ' | ' | ' |
Market Approach | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Goodwill Recoverabilty Weighted Percentage | 20.00% | ' | ' | ' |
Metals inventories | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
LIFO inventories | 228.8 | 163.6 | ' | ' |
Inventories | $257.50 | $193.90 | ' | ' |
Estimated_Useful_Lives_of_Prop
Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Building and Building Improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '15 years |
Building and Building Improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '40 years |
Machinery and Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '3 years |
Machinery and Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '10 years |
Software | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '3 years |
Software | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '7 years |
Supplemental_Information_on_Ba
Supplemental Information on Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Inventories: | ' | ' | ' |
Raw materials and supplies | $184.60 | $144.30 | ' |
Work in process | 52.5 | 38.6 | ' |
Finished products | 234.5 | 174.3 | ' |
Total inventories | 471.6 | 357.2 | ' |
Property, plant and equipment: | ' | ' | ' |
Land and improvements | 53.8 | 47.6 | ' |
Buildings and improvements to leaseholds | 374.5 | 324.5 | ' |
Machinery and equipment | 1,066.30 | 1,056.30 | ' |
Construction in progress | 61.5 | 62.8 | ' |
Property, plant and equipment, gross | 1,556.10 | 1,491.20 | ' |
Less: accumulated depreciation | 1,021.70 | 981.8 | ' |
Property, plant and equipment, net of accumulated depreciation | 534.4 | 509.4 | 525.8 |
Other current liabilities: | ' | ' | ' |
Accrued salaries, wages and other compensation | 128.9 | 109 | ' |
Accrued customer programs | 122.6 | 102.8 | ' |
Other accrued expenses | 137.4 | 105.6 | ' |
Total other current liabilities | $388.90 | $317.40 | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |||
Security & Storage | Security & Storage | Security & Storage | WoodCrafters Home Products, LLC | WoodCrafters Home Products, LLC | WoodCrafters Home Products, LLC | ||||||||||||||||
Customer Relationships | Technology | ||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Business acquisition purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $302 | ' | ' | |||
Net sales | 1,101.90 | 1,125.10 | 1,040.40 | 890 | 947.9 | 909.1 | 935.3 | 798.8 | ' | 4,157.40 | [1] | 3,591.10 | [1] | 3,328.60 | [1] | ' | ' | ' | 115 | ' | ' |
Percentage of ownership acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | |||
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.9 | 9.6 | |||
Amortizable identifiable intangible assets, estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 years | '10 years | |||
Business acquisition, cash paid | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | 20 | ' | ' | ' | ' | ' | |||
Purchase price adjustment, reduction in goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142.3 | 14 | ' | ' | -5.6 | 15.1 | ' | ' | ' | |||
Increase in definite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.90 | ' | ' | ' | ' | |||
[1] | Based on country of destination |
Preliminary_Allocation_of_Purc
Preliminary Allocation of Purchase Price to Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | |||
In Millions, unless otherwise specified | WoodCrafters Home Products, LLC | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | |||
Accounts receivable | ' | ' | ' | $41.40 | |||
Inventories | ' | ' | ' | 25.4 | |||
Property, plant and equipment | ' | ' | ' | 29.6 | |||
Goodwill | 1,519.90 | [1] | 1,381.40 | [1] | 1,366.60 | [1] | 142.3 |
Identifiable intangible assets | ' | ' | ' | 89.4 | |||
Other assets | ' | ' | ' | 8.9 | |||
Total assets | ' | ' | ' | 337 | |||
Other current liabilities and accruals | ' | ' | ' | 35 | |||
Net assets acquired | ' | ' | ' | $302 | |||
[1] | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). |
Proforma_Consolidated_Financia
Proforma Consolidated Financial Information (Detail) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' | ' |
Net sales | $4,264.80 | $3,771 |
Net income attributable to Home & Security | $240.80 | $126.60 |
Basic earnings per common share | $1.45 | $0.79 |
Diluted earnings per common share | $1.41 | $0.76 |
Change_in_Net_Carrying_Amount_
Change in Net Carrying Amount of Goodwill by Segment (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
Kitchen & Bath Cabinetry | Kitchen & Bath Cabinetry | Plumbing & Accessories | Plumbing & Accessories | Plumbing & Accessories | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Security & Storage | Security & Storage | Security & Storage | |||||||||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Beginning Balance | $1,381.40 | [1] | $1,366.60 | [1] | $491.80 | [1] | $491.20 | [1] | $569.70 | [1] | $569.70 | [1] | $569.70 | [1] | $230.20 | [1] | $229.10 | [1] | $90.80 | [1] | $90.80 | [1] | $75.50 | [1] |
Translation adjustments | -3.8 | 0.8 | -2.4 | 0.6 | ' | ' | ' | ' | ' | ' | -1.4 | 0.2 | ||||||||||||
Acquisition-related adjustments | 142.3 | 14 | 142.3 | ' | ' | ' | ' | -1.1 | ' | -5.6 | ' | 15.1 | ||||||||||||
Ending Balance | $1,519.90 | [1] | $1,381.40 | [1] | $631.70 | [1] | $491.80 | [1] | $569.70 | [1] | $569.70 | [1] | $569.70 | [1] | $229.10 | [1] | $229.10 | [1] | ' | $89.40 | [1] | $90.80 | [1] | |
[1] | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). |
Change_in_Net_Carrying_Amount_1
Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Goodwill [Line Items] | ' |
Accumulated impairment losses | $541.40 |
Advanced Material Windows & Door Systems | ' |
Goodwill [Line Items] | ' |
Accumulated impairment losses | 451.3 |
Security & Storage | ' |
Goodwill [Line Items] | ' |
Accumulated impairment losses | $90.10 |
Goodwill_and_Other_Identifiabl
Goodwill and Other Identifiable Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||||||||||
WoodCrafters Home Products, LLC | Minimum | Maximum | Tradenames | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Kitchen & Bath Cabinetry | Kitchen & Bath Cabinetry | Kitchen & Bath Cabinetry | Kitchen & Bath Cabinetry | Advanced Material Windows and Door Systems | Advanced Material Windows and Door Systems | Advanced Material Windows and Door Systems | |||||||||||||||
Tradenames And Customer Relationship | Tradenames And Customer Relationship | Tradenames | Tradenames | Tradenames | Tradenames | Maximum | Tradenames | ||||||||||||||||||||||||
Pre Tax | Pre Tax | Maximum | |||||||||||||||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Amortizable identifiable intangible assets, estimated useful life | ' | ' | ' | ' | ' | '5 years | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Decrease in indefinite-lived tradenames | ' | ' | ' | ' | ' | ' | ' | $6.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Amortizable identifiable intangible assets acquired | ' | ' | ' | 86.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Acquisition of identifiable intangible assets | ' | ' | ' | ' | 89.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected intangible amortization expense in 2014 | 16 | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected intangible amortization expense in 2015 | 15 | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected intangible amortization expense in 2016 | 14 | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected intangible amortization expense in 2017 | 13 | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected intangible amortization expense in 2018 | 12 | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Percentage of estimated excess fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ||||||||||
Goodwill | 1,519.90 | [1] | 1,381.40 | [1] | 1,366.60 | [1] | 1,519.90 | [1] | 142.3 | ' | ' | ' | 229.1 | [1] | 229.1 | [1] | 230.2 | [1] | ' | ' | ' | 631.7 | [1] | 491.8 | [1] | 491.2 | [1] | ' | 86.1 | ' | ' |
Indefinite-lived tradenames | ' | ' | ' | ' | ' | ' | ' | 58.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Indefinite-lived intangible assets impairment charges | $21.20 | $15.80 | $90 | ' | ' | ' | ' | ' | ' | ' | ' | $9.90 | $90 | $15.80 | ' | ' | ' | $5.90 | ' | ' | ' | ||||||||||
Market recovery projection period | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
[1] | Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment). |
Gross_Carrying_Value_and_Accum
Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | $1,028.60 | $948 | ||
Accumulated Amortization | -275.7 | -264.4 | ||
Net Book Value | 752.9 | 683.6 | ||
Indefinite-lived intangible assets-tradenames | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | 597.2 | 603.4 | ||
Accumulated Amortization | -42 | [1] | -42 | [1] |
Net Book Value | 555.2 | 561.4 | ||
Amortizable intangible assets | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | 431.4 | 344.6 | ||
Accumulated Amortization | -233.7 | -222.4 | ||
Net Book Value | 197.7 | 122.2 | ||
Amortizable intangible assets | Tradenames | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | 19.6 | 17.8 | ||
Accumulated Amortization | -7.4 | -6.9 | ||
Net Book Value | 12.2 | 10.9 | ||
Amortizable intangible assets | Customer and contractual relationships | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | 348.6 | 274.2 | ||
Accumulated Amortization | -182.5 | -174.4 | ||
Net Book Value | 166.1 | 99.8 | ||
Amortizable intangible assets | Patents/proprietary technology | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts | 63.2 | 52.6 | ||
Accumulated Amortization | -43.8 | -41.1 | ||
Net Book Value | $19.40 | $11.50 | ||
[1] | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles - Goodwill and Other Assets. |
Asset_Impairment_Charges_Addit
Asset Impairment Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Asset Impairment Charges [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charge | $6.20 | $21.20 | $21.20 | $15.80 | $90 |
External_Debt_and_Financing_Ar2
External Debt and Financing Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | $650 | $650 | ' |
Term loan | 350 | 350 | ' |
Revolving credit facility, extended expiration date | '2018-07 | ' | ' |
Term loan, extended expiration date | '2018-07 | ' | ' |
Term loan, outstanding borrowings | 350 | 320 | ' |
Credit facility, minimum Consolidated Interest Coverage Ratio | 3 | ' | ' |
Increase Maximum Leverage Ratio | 3.75 | ' | ' |
Notes payable to banks | 6 | 5.5 | ' |
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 22.7 | 22.7 | ' |
Weighted-average interest rates on borrowings | 12.30% | 13.00% | 14.30% |
Term loan amortization payments in 2014 | 0 | ' | ' |
Term loan amortization payments in 2015 | 17.5 | ' | ' |
Term loan amortization payments in 2016 | 35 | ' | ' |
Term loan amortization payments in 2017 | 35 | ' | ' |
Term loan amortization payments in 2018 | $262.50 | ' | ' |
Debt To Ebitda Ratio | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Credit facility, maximum Leverage Ratio | 3.5 | ' | ' |
LIBOR | Minimum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate over LIBOR | 1.00% | ' | ' |
LIBOR | Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate over LIBOR | 2.00% | ' | ' |
Components_of_External_Long_Te
Components of External Long - Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
$650 million revolving credit agreement due July 2018 | ' | ' |
$350 million term loan due July 2018 | 350 | 320 |
Total debt | 350 | 320 |
Less: current portion | ' | 22.5 |
Total long-term debt | $350 | $297.50 |
Components_of_External_Long_Te1
Components of External Long - Term Debt (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility, maximum borrowing capacity | $650 | $650 |
Revolving credit facility, expiration date | '2018-07 | ' |
Term loan | $350 | $350 |
Term loan, expiration date | '2018-07 | ' |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Foreign exchange contracts period, minimum | '12 months | ' |
Foreign exchange contracts period, maximum | '15 months | ' |
Notional amount of foreign currency derivative hedges | $182.10 | ' |
Net settlement receivable | 1.8 | ' |
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings | 1.3 | ' |
Cash flow | ' | ' |
Derivative [Line Items] | ' | ' |
Gain (Loss) Recognized in OCI | $3 | $0.40 |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | $2.70 | $1.20 |
Derivative liabilities, fair value | 0.3 | 0.9 |
Foreign exchange contracts | Other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 2.1 | 1 |
Foreign exchange contracts | Other current liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities, fair value | 0.3 | 0.8 |
Commodity contracts | Other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 0.2 |
Commodity contracts | Other current liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities, fair value | ' | 0.1 |
Net investment | Other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | $0.60 | ' |
Effects_of_Derivative_Financia
Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Income | $3.20 | $0.50 | $1.90 |
Cash flow | Net Sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Income | ' | 0.2 | -0.6 |
Cash flow | Cost of products sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Income | 2 | 0.6 | 2.5 |
Fair value | Other income (expense), net | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Income | $1.20 | ($0.30) | ' |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | $6.20 | $4.80 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative asset financial instruments (level 2) | 2.7 | 1.2 |
Derivative liability financial instruments (level 2) | 0.3 | 0.9 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation program assets | $3.50 | $3.60 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Long-term debt, carrying value | $350 | $320 | ' |
Pre-tax indefinite-lived intangible assets impairment charges | 21.2 | 15.8 | 90 |
Level 2 | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Long-term debt, net of current portion | $350 | $320 | ' |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets impairment charges | $21.20 | $15.80 | $90 |
Fair Value, Measurements, Nonrecurring | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets impairment charges | ' | 15.8 | 90 |
Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets | ' | $249.70 | $227 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jul. 25, 2012 | Sep. 27, 2011 | Feb. 25, 2014 |
Subsequent Event | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 750,000,000 | ' | 750,000,000 | ' | 750,000,000 | ' |
Common Stock, par value | $0.01 | ' | $0.01 | ' | ' | ' |
Dividend declared, per share | $0.12 | $0.10 | ' | ' | ' | ' |
Percentage of increase in quarterly cash dividend | 20.00% | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 60,000,000 | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.01 | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $150 | ' | ' | ' | ' | $150 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $89.20 | ' | ' | ' | ' | ' |
Share repurchase approval period | ' | ' | ' | '3 years | ' | '2 years |
Share repurchase program, repurchase period end date | ' | ' | ' | 25-Jul-15 | ' | 25-Feb-16 |
Common_Stock_and_Treasury_Stoc
Common Stock and Treasury Stock Activity (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Common shares | ' | ' |
Balance at the beginning of the year | 163,855,647 | 156,008,132 |
Stock plan shares issued | 4,516,507 | 8,544,260 |
Shares surrendered by optionees | -296,100 | -342,498 |
Common stock repurchases | -1,408,118 | -354,247 |
Balance at the end of the year | 166,667,936 | 163,855,647 |
Treasury shares | ' | ' |
Balance at the beginning of the year | 700,102 | 3,357 |
Stock plan shares issued | ' | ' |
Shares surrendered by optionees | 296,100 | 342,498 |
Common stock repurchases | 1,408,118 | 354,247 |
Balance at the end of the year | 2,404,320 | 700,102 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Incentive Plan, common stock available for issuance | 8,700,000 | ' | ' |
Plan modification, additional pre-tax stock-based compensation charges | ' | ' | $2.40 |
Incentive Plan, options vesting period | '3 years | ' | ' |
Incentive Plan, options maturity period | '10 years | ' | ' |
Incentive Plan, weighted-average grant date fair value of stock options granted | $9.02 | $5.80 | $4.20 |
Unrecognized compensation cost related to unvested option | 9.4 | ' | ' |
Fair value of options vested | 12.4 | 10.8 | 10 |
Intrinsic value of stock options exercised | 97.1 | 70.2 | 10 |
Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost, weighted-average recognition period | '1 year 8 months 12 days | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized pre-tax compensation cost | 14.2 | ' | ' |
Unrecognized compensation cost, weighted-average recognition period | '1 year 10 months 24 days | ' | ' |
Fair value of restricted stock units vested | 26.9 | 18.5 | 0 |
Performance Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized pre-tax compensation cost | $11 | ' | ' |
Unrecognized compensation cost, weighted-average recognition period | '1 year 8 months 12 days | ' | ' |
Outside Directors | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock awards issued | 24,672 | 52,208 | ' |
Common stock issued to outside directors | $36.47 | $20.46 | ' |
Former Parent | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Incentive Plan, weighted-average grant date fair value of stock options granted | ' | ' | $16.98 |
PreTax_StockBased_Compensation
Pre-Tax Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $26.10 | $26.90 | $15.70 |
Tax benefit | 9.7 | 9.7 | 5.3 |
Total after tax expense | 17 | 17.2 | 10.4 |
Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 8.3 | 12.5 | 14.1 |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 10.8 | 10 | 1.6 |
Performance Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 6.7 | 3.3 | ' |
Outside Directors | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 0.9 | 1.1 | ' |
Pre Tax | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $26.70 | $26.90 | $15.70 |
Restricted_Stock_Units_Activit
Restricted Stock Units Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of Restricted Stock Units | ' |
Non-vested at December 31, 2012 | 328,100 |
Granted | 210,500 |
Cancelled | -39,100 |
Non-vested at December 31, 2013 | 499,500 |
Weighted-Average Grant-Date Fair Value | ' |
Non-vested at December 31, 2012 | $19.47 |
Granted | $34.40 |
Cancelled | $24.38 |
Non-vested at December 31, 2013 | $25.38 |
Restricted Stock Units (RSUs) | ' |
Number of Restricted Stock Units | ' |
Non-vested at December 31, 2012 | 1,767,268 |
Granted | 389,350 |
Vested | -730,421 |
Cancelled | -128,901 |
Non-vested at December 31, 2013 | 1,297,296 |
Weighted-Average Grant-Date Fair Value | ' |
Non-vested at December 31, 2012 | $14.49 |
Granted | $34.83 |
Vested | $13.85 |
Cancelled | $17.24 |
Non-vested at December 31, 2013 | $20.68 |
BlackScholes_Option_Pricing_Mo
Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Home and Security | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Current expected dividend yield | 1.50% | 1.50% | 1.50% |
Expected volatility | 32.00% | 35.00% | 39.00% |
Risk-free interest rate | 1.10% | 1.20% | 1.20% |
Expected term | '6 years | '6 years | '6 years 6 months |
Former Parent | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Current expected dividend yield | ' | ' | 2.00% |
Expected volatility | ' | ' | 33.20% |
Risk-free interest rate | ' | ' | 2.30% |
Expected term | ' | ' | '5 years 6 months |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Options | ' |
Outstanding at December 31, 2012 | 13,070,134 |
Granted | 727,200 |
Exercised | -3,770,311 |
Expired/forfeited | -377,463 |
Outstanding at December 31, 2013 | 9,649,560 |
Weighted-Average Exercise Price | ' |
Outstanding at December 31, 2012 | $13.14 |
Granted | $33.25 |
Exercised | $13.48 |
Expired/forfeited | $16.60 |
Outstanding at December 31, 2013 | $14.39 |
Options_Outstanding_and_Exerci
Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Options Outstanding | 9,649,560 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | '5 years 9 months 18 days | [1] |
Options Outstanding, Weighted-Average Exercise Price | $14.39 | [1] |
Options Exercisable | 6,314,661 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $12.35 | [2] |
Exercise Price Range One | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, Lower limit | $9 | |
Range of Exercise Prices, upper limit | $11.99 | |
Options Outstanding | 2,788,572 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | '3 years | [1] |
Options Outstanding, Weighted-Average Exercise Price | $9.71 | [1] |
Options Exercisable | 2,788,572 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $9.71 | [2] |
Exercise Price Range Two | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, Lower limit | $12 | |
Range of Exercise Prices, upper limit | $14 | |
Options Outstanding | 4,590,316 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | '6 years 10 months 24 days | [1] |
Options Outstanding, Weighted-Average Exercise Price | $13.07 | [1] |
Options Exercisable | 2,557,659 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $13.21 | [2] |
Exercise Price Range Three | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, Lower limit | $14.01 | |
Range of Exercise Prices, upper limit | $40.96 | |
Options Outstanding | 2,270,672 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | '6 years 6 months | [1] |
Options Outstanding, Weighted-Average Exercise Price | $22.82 | [1] |
Options Exercisable | 968,430 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $17.69 | [2] |
[1] | At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million. | |
[2] | At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million. |
Options_Outstanding_and_Exerci1
Options Outstanding and Exercisable (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options outstanding, aggregate intrinsic value | $302.10 |
Options exercisable, weighted-average remaining contractual life | '4 years 6 months |
Options exercisable, aggregate intrinsic value | $210.60 |
Summarizes_Information_of_Perf
Summarizes Information of Performance Share Awards (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Non-vested at December 31, 2012 | 328,100 |
Granted | 210,500 |
Cancelled | -39,100 |
Non-vested at December 31, 2013 | 499,500 |
Non-vested at December 31, 2012 | $19.47 |
Granted | $34.40 |
Cancelled | $24.38 |
Non-vested at December 31, 2013 | $25.38 |
Defined_Benefit_Plans_Addition
Defined Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Equity Securities | Fixed income | Cash and cash equivalents | Other Investment | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | ||||||
Minimum | Maximum | Scenario, Forecast In the first quarter of 2014 | Minimum | Maximum | ||||||||||||||||||
Age | Age | Scenario, Forecast In the first quarter of 2014 | Scenario, Forecast In the first quarter of 2014 | |||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans, retirement benefits payment commencement age | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 65 | ' | ' | ' | ' | ' | ' |
Reduction in accrued retiree benefit plans | ($29.80) | ($34.70) | ' | ' | ($5.30) | ' | ' | ' | ' | ' | ' | ' | ($0.40) | ' | ' | ' | ' | $34.70 | $29.80 | ($14.70) | ' | ' |
Recognition of actuarial (losses) gains | ' | ' | -5.2 | -42.2 | -80 | ' | ' | ' | ' | ' | ' | 73 | -66 | ' | ' | ' | -4 | 0.3 | -9.9 | 0.6 | ' | ' |
Defined benefit plans, reduction in liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | -20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans, curtailment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | 3.7 | ' | ' |
Defined benefit plans, amortization of net prior service costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | -19.4 | ' | 11.7 | ' | ' |
Period of prior service credit in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years |
Expected pension contributions in 2014 | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit asset allocation, minimum | ' | ' | ' | ' | ' | 0.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit asset allocation, maximum | ' | ' | ' | ' | ' | 75.00% | 100.00% | 25.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans, blended long-term rate of return on plan assets | ' | ' | 7.40% | ' | ' | ' | ' | ' | ' | ' | ' | 7.80% | 7.80% | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Contribution Plan, cash contributions | ' | ' | $18.70 | $16.10 | $17.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Obligations_and_Funded_Status_
Obligations and Funded Status (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in the Projected Benefit Obligation (PBO): | ' | ' | ' | ' | ' |
Plan amendments | $29.80 | $34.70 | ' | ' | $5.30 |
Actuarial (gain) loss | ' | ' | 5.2 | 42.2 | 80 |
Change in Plan Assets: | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | ' | 536.8 | 536.8 | ' | ' |
Fair value of plan assets at end of year | 536.8 | ' | 583.8 | 536.8 | ' |
Pension Benefits | ' | ' | ' | ' | ' |
Change in the Projected Benefit Obligation (PBO): | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | ' | 722.5 | 722.5 | 639.5 | ' |
Service cost | ' | ' | 11.4 | 12.1 | ' |
Interest cost | ' | ' | 30.1 | 30.7 | ' |
Plan amendments | ' | ' | ' | 0.4 | ' |
Actuarial (gain) loss | ' | ' | -73 | 66 | ' |
Benefits paid | ' | ' | -28.7 | -26.2 | ' |
Projected benefit obligation at end of year | 722.5 | ' | 662.3 | 722.5 | ' |
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | 703.3 | ' | 648.5 | 703.3 | ' |
Change in Plan Assets: | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | ' | 536.8 | 536.8 | 477.9 | ' |
Actual return on plan assets | ' | ' | 74.6 | 63.7 | ' |
Employer contributions | ' | ' | 1.1 | 21.4 | ' |
Benefits paid | ' | ' | -28.7 | -26.2 | ' |
Fair value of plan assets at end of year | 536.8 | ' | 583.8 | 536.8 | ' |
Funded status (Fair value of plan assets less PBO) | -185.7 | ' | -78.5 | -185.7 | ' |
Postretirement Benefits | ' | ' | ' | ' | ' |
Change in the Projected Benefit Obligation (PBO): | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | ' | 73.3 | 73.3 | 93.9 | ' |
Service cost | ' | ' | 0.3 | 0.5 | ' |
Interest cost | ' | ' | 1.7 | 3.9 | ' |
Plan amendments | ' | ' | -34.7 | -29.8 | ' |
Actuarial (gain) loss | ' | 4 | -0.3 | 9.9 | ' |
Participants' contributions | ' | ' | 0.5 | 0.8 | ' |
Benefits paid | ' | ' | -7 | -6.4 | ' |
Medicare Part D reimbursement | ' | ' | 0.4 | 0.5 | ' |
Projected benefit obligation at end of year | 73.3 | ' | 34.2 | 73.3 | ' |
Change in Plan Assets: | ' | ' | ' | ' | ' |
Employer contributions | ' | ' | 6.1 | 5.1 | ' |
Participants' contributions | ' | ' | 0.5 | 0.8 | ' |
Medicare Part D reimbursement | ' | ' | 0.4 | 0.5 | ' |
Benefits paid | ' | ' | -7 | -6.4 | ' |
Funded status (Fair value of plan assets less PBO) | ($73.30) | ' | ($34.20) | ($73.30) | ' |
Amounts_Recognized_in_Consolid
Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accrued benefit liability | ($108.50) | ($252.70) |
Pension Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current benefit payment liability | -0.8 | -0.8 |
Accrued benefit liability | -77.7 | -184.9 |
Net amount recognized | -78.5 | -185.7 |
Postretirement Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current benefit payment liability | -3.5 | -5.5 |
Accrued benefit liability | -30.7 | -67.8 |
Net amount recognized | ($34.20) | ($73.30) |
Amounts_in_Accumulated_Other_C
Amounts in Accumulated Other Comprehensive Income that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | ||||
Other Accumulated Other Comprehensive Income | Other Accumulated Other Comprehensive Income | Other Accumulated Other Comprehensive Income | Other Accumulated Other Comprehensive Income | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | ' | $72.20 | $63.50 | ' | ' | ' | $4.30 | $6 |
Actuarial (gain) loss | 5.2 | 42.2 | 80 | ' | -73 | 66 | -0.9 | -30.6 | 4 | -0.3 | 9.9 | -4.5 | -11.6 |
Current year actuarial gain | ' | ' | ' | ' | ' | ' | -105.6 | 39.3 | ' | ' | ' | -0.3 | 9.9 |
Ending Balance | ' | ' | ' | ' | ' | ' | -34.3 | 72.2 | ' | ' | ' | -0.5 | 4.3 |
Beginning Balance | ' | ' | ' | ' | ' | ' | 0.6 | 0.5 | ' | ' | ' | -26.2 | 1 |
Prior service cost (credit) recognition due to plan amendments | ' | ' | ' | -1.8 | ' | ' | ' | 0.4 | ' | ' | ' | -34.7 | -29.8 |
Amortization | ' | ' | ' | ' | ' | ' | -0.1 | -0.3 | ' | ' | ' | 27.4 | 2.6 |
Ending Balance | ' | ' | ' | ' | ' | ' | 0.5 | 0.6 | ' | ' | ' | -33.5 | -26.2 |
Total at December 31, 2013 | ' | ' | ' | ' | ' | ' | ($33.80) | ' | ' | ' | ' | ($34) | ' |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) (USD $) | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | Postretirement Benefits | ||||
Net Periodic Benefit Cost | Net Periodic Benefit Cost | Net Periodic Benefit Cost | Net Periodic Benefit Cost | Net Periodic Benefit Cost | Net Periodic Benefit Cost | |||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | $11.40 | $12.10 | $11.40 | $12.10 | $12.90 | ' | $0.30 | $0.50 | $0.30 | $0.50 | $0.50 |
Interest cost | ' | ' | ' | 30.1 | 30.7 | 30.1 | 30.7 | 31 | ' | 1.7 | 3.9 | 1.7 | 3.9 | 4.4 |
Expected return on plan assets | ' | ' | ' | ' | ' | -41.8 | -36.8 | -41.3 | ' | ' | ' | ' | ' | ' |
Recognition of actuarial losses | 5.2 | 42.2 | 80 | -73 | 66 | 0.8 | 30.6 | 80 | 4 | -0.3 | 9.9 | 4.4 | 11.6 | ' |
Amortization of prior service cost (credits) | ' | ' | ' | 0.1 | ' | 0.1 | 0.3 | 0.3 | ' | -19.4 | ' | -27.4 | -2.6 | 0.4 |
Curtailment and settlement losses | ' | ' | ' | ' | ' | 0.1 | ' | 1.8 | ' | ' | ' | 0.1 | ' | ' |
Net periodic benefit cost | ' | ' | ' | ' | ' | $0.70 | $36.90 | $84.70 | ' | ' | ' | ($20.90) | $13.40 | $5.30 |
Schedule_of_Assumptions_Used_D
Schedule of Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | ' | ' | ' |
Expected long-term rate of return on plan assets | 7.40% | ' | ' |
Pension Benefits | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | ' | ' | ' |
Discount rate | 5.00% | 4.20% | ' |
Rate of compensation increase | 4.00% | 4.00% | ' |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | ' | ' | ' |
Discount rate | 4.20% | 4.90% | 5.80% |
Expected long-term rate of return on plan assets | 7.80% | 7.80% | 8.50% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Postretirement Benefits | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | ' | ' | ' |
Discount rate | 4.30% | 3.70% | ' |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | ' | ' | ' |
Discount rate | 3.70% | 4.60% | 5.30% |
Assumed_Health_Care_Cost_Trend
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost (Detail) (Postretirement Benefits) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 5.00% | ||
Year that the rate reaches the ultimate trend rate | '2022 | '2017 | ||
Pre Age Sixty Five | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Health care cost trend rate assumed for next year | 7.10% | [1] | 7.50% | [1] |
Post Age Sixty Five | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Health care cost trend rate assumed for next year | 7.50% | [1] | 7.00% | [1] |
[1] | The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate. |
Effect_of_OnePercentagePoint_C
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Effect on total of service and interest cost | $0.10 |
Effect on postretirement benefit obligation | 1.8 |
Effect on total of service and interest cost | -0.1 |
Effect on postretirement benefit obligation | ($2) |
Pension_Assets_by_Major_Catego
Pension Assets by Major Category of Plan Assets and Type of Fair Value Measurement (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | $583.80 | $536.80 |
Group annuity/insurance contracts | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 21.2 | 20.6 |
Cash and cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 8.1 | 6.3 |
Equity | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 278.6 | 331.5 |
Fixed income | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 232.6 | 135.2 |
Multi-strategy hedge funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 20.5 | 18.8 |
Real estate | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 22.8 | 24.4 |
Level 2 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 519.3 | 473 |
Level 2 | Cash and cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 8.1 | 6.3 |
Level 2 | Equity | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 278.6 | 331.5 |
Level 2 | Fixed income | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 232.6 | 135.2 |
Level 3 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 64.5 | 63.8 |
Level 3 | Group annuity/insurance contracts | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 21.2 | 20.6 |
Level 3 | Multi-strategy hedge funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | 20.5 | 18.8 |
Level 3 | Real estate | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value asset measurements | $22.80 | $24.40 |
Reconciliation_of_Level_Three_
Reconciliation of Level Three Measurements (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | $63.80 | $59.40 |
Actual return on assets related to assets still held | 5.7 | 4.4 |
Purchases, sales and settlements | -5 | ' |
Ending balance | 64.5 | 63.8 |
Group annuity/insurance contracts | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | 20.6 | 20 |
Actual return on assets related to assets still held | 0.6 | 0.6 |
Ending balance | 21.2 | 20.6 |
Commingled Funds | Multi-strategy hedge funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | 18.8 | 17.5 |
Actual return on assets related to assets still held | 1.7 | 1.3 |
Ending balance | 20.5 | 18.8 |
Commingled Funds | Real estate | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | 24.4 | 21.9 |
Actual return on assets related to assets still held | 3.4 | 2.5 |
Purchases, sales and settlements | -5 | ' |
Ending balance | $22.80 | $24.40 |
Schedule_of_Expected_Benefit_P
Schedule of Expected Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $32.20 |
2015 | 34.1 |
2016 | 36 |
2017 | 37.5 |
2018 | 39 |
Years 2019-2023 | 215 |
Postretirement Benefits | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 3.4 |
2015 | 3.4 |
2016 | 3.4 |
2017 | 2.8 |
2018 | 2.8 |
Years 2019-2023 | $12.70 |
Components_of_Loss_Income_Befo
Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Income Before Income Tax [Line Items] | ' | ' | ' |
Domestic operations | $276.90 | $95 | ($73.10) |
Foreign operations | 68 | 59 | 29.5 |
Income (loss) before income taxes | $344.90 | $154 | ($43.60) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Reconciliation of income taxes | 35.00% | ' | ' | ' |
Net effect of rate changes on deferred taxes | ($3) | ($0.20) | ($2.90) | ' |
Unrecognized tax benefits that would impact effective tax rate | 23.4 | ' | ' | ' |
Reasonably possible decrease in unrecognized tax benefits, minimum | -2.5 | ' | ' | ' |
Reasonably possible decrease in unrecognized tax benefits, maximum | -3.5 | ' | ' | ' |
Unrecognized tax benefits, interest and penalty benefit recognized | 0.2 | 1.7 | 1.4 | ' |
Unrecognized tax benefits, accrued interest and penalties | 9.9 | 10.2 | ' | ' |
Deferred tax assets, net operating losses and other tax carryforwards | 25.5 | 32.7 | ' | ' |
Undistributed earnings of foreign subsidiaries | 156.1 | ' | ' | ' |
Tax liability associated with remittance of certain foreign earnings | ' | 12.4 | ' | 9.1 |
Expire In Twenty Thirteen Through Twenty Nineteen | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Deferred tax assets, net operating losses and other tax carryforwards | $1.40 | $1.40 | ' | ' |
Minimum | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period | '2020 | ' | ' | ' |
Reconciliation_of_Income_Taxes
Reconciliation of Income Taxes at Federal Statutory Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Income Taxes [Line Items] | ' | ' | ' |
Income tax expense (benefit) computed at federal statutory income tax rate | $120.70 | $53.90 | ($15.30) |
Other income taxes, net of federal tax benefit | 8 | 3.8 | -1.8 |
Foreign taxes at a different rate than U.S. federal statutory income tax rate | -10.2 | -7 | -5.3 |
Tax effect on foreign dividends | ' | 12.4 | 10.2 |
Tax benefit on income attributable to domestic production activities | -5.8 | -2.2 | -2.6 |
Net adjustments for uncertain tax positions | 2 | -11 | -9.7 |
Net effect of rate changes on deferred taxes | -3 | -0.2 | -2.9 |
Prior period items | ' | -3.9 | ' |
Valuation allowance increase (decrease) | 2.1 | -8.9 | 16.8 |
Miscellaneous other, net | 0.2 | -2.6 | 1.6 |
Income tax expense (benefit) as reported | $114 | $34.30 | ($9) |
Effective income tax rate | 33.10% | 22.30% | 20.60% |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized tax benefits - beginning of year | $20.80 | $35.40 | $38.80 |
Gross additions - current year tax positions | 4.4 | 2.8 | 2.3 |
Gross additions - prior year tax positions | 0.7 | 0.6 | 7.2 |
Gross additions - purchase accounting adjustments | 1.6 | ' | ' |
Gross reductions - prior year tax positions | -3.2 | -13.5 | -12 |
Gross reductions - settlements with taxing authorities | -0.6 | -4 | -0.4 |
Impact of change in foreign exchange rates | ' | ' | -0.5 |
Impact due to expiration of statutes of limitations | ' | -0.5 | ' |
Unrecognized tax benefits - end of year | $23.70 | $20.80 | $35.40 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $102.80 | $17.60 | $26 |
Foreign | 12.8 | 13.1 | 8.9 |
State and other | 11.2 | 4.1 | 16.9 |
Deferred | ' | ' | ' |
Federal, state and other | -13 | 4.8 | -66.8 |
Foreign | 0.2 | -5.3 | 6 |
Income tax expense (benefit) as reported | $114 | $34.30 | ($9) |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Assets Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Net deferred tax liability | ' | ' |
Other current assets | $46.20 | $55.60 |
Other current liabilities | -0.6 | -1.2 |
Other assets | 1.4 | 1.8 |
Deferred income taxes | -245.8 | -224 |
Net deferred tax liability | -198.8 | -167.8 |
Deferred tax assets: | ' | ' |
Compensation and benefits | 36.8 | 32.8 |
Defined benefit plans | 44.2 | 84.3 |
Capitalized inventories | 13.1 | 13.8 |
Accounts receivable | 6.8 | 6.9 |
Other accrued expenses | 17.7 | 18 |
Net operating loss and other tax carryforwards | 25.5 | 32.7 |
Valuation allowance | -20.7 | -19.2 |
Miscellaneous | 14.7 | 10.7 |
Total deferred tax assets | 138.1 | 180 |
Deferred tax liabilities: | ' | ' |
LIFO inventories | -12.5 | -12.5 |
Fixed assets | -63.4 | -69.4 |
Identifiable intangible assets | -252.9 | -253.6 |
Miscellaneous | -8.1 | -12.3 |
Total deferred tax liabilities | -336.9 | -347.8 |
Net deferred tax liability | ($198.80) | ($167.80) |
Pretax_restructuring_and_Other
Pre-tax restructuring and Other Charges (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | $4.20 | $4.50 | $4.70 | |||
Cost of Products Sold | 0.7 | [1] | 5.5 | [2] | 15.3 | [3] |
SG&A | 0.2 | [1],[4] | ' | ' | ||
Total Charges | 5.1 | 10 | 20 | |||
Kitchen & Bath Cabinetry | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | 2.2 | 4.7 | 3.7 | |||
Cost of Products Sold | 0.1 | [1] | 8.9 | [2] | 9 | [3] |
Total Charges | 2.3 | 13.6 | 12.7 | |||
Plumbing & Accessories | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | 0.6 | ' | ' | |||
Cost of Products Sold | 0.6 | [1] | ' | -0.1 | [3] | |
SG&A | 0.2 | [1],[4] | ' | ' | ||
Total Charges | 1.4 | ' | -0.1 | |||
Advanced Material Windows & Door Systems | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | 1.4 | 0.8 | 1 | |||
Cost of Products Sold | ' | -3.4 | [2] | 6.4 | [3] | |
Total Charges | 1.4 | -2.6 | 7.4 | |||
Security & Storage | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | -1 | ' | |||
Total Charges | ' | ($1) | ' | |||
[1] | "Other Charges" represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | |||||
[2] | "Other Charges," which were recorded in cost of products sold in 2012, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | |||||
[3] | "Other Charges," which were recorded in cost of products sold in 2011, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | |||||
[4] | Selling, general and administrative expenses |
Restructuring_and_Other_Charge2
Restructuring and Other Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Workforce reduction and exit cost | ' | ' | ' | ' | ' | $2.40 |
Restructuring and other charges | ' | ' | ' | 5.1 | 10 | 20 |
Indefinite-lived intangible assets impairment charges | 21.2 | 15.8 | 90 | ' | ' | ' |
Other restructuring costs | ' | ' | ' | 4.2 | 4.5 | 4.7 |
Kitchen & Bath Cabinetry | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | ' | 2.3 | 13.6 | 12.7 |
Other restructuring costs | ' | ' | ' | 2.2 | 4.7 | 3.7 |
Other | Kitchen & Bath Cabinetry | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Expected non-cash charges for accelerated depreciation | ' | ' | ' | 8.5 | ' | ' |
Pre Tax | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | ' | ' | ' | 20 |
Accelerated depreciation of facilities | ' | ' | ' | ' | ' | 11.5 |
Other restructuring costs | ' | ' | ' | ' | ' | 3.1 |
Pre Tax | Kitchen & Bath Cabinetry | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Expected restructuring and related charges | ' | ' | ' | 12 | ' | ' |
Pre Tax | Workforce reduction costs | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Workforce reduction and exit cost | ' | ' | ' | ' | ' | 3.5 |
Pre Tax | Workforce reduction costs | Kitchen & Bath Cabinetry | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Workforce reduction and exit cost | ' | ' | ' | 3.2 | ' | ' |
Pre Tax | Restructuring Charges | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets impairment charges | ' | ' | ' | ' | ' | $1.90 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2012 | Oct. 03, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Oct. 03, 2011 |
State and Local Jurisdiction | Home and Security | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Dividend to Former Parent | $6 | $48.90 | ' | $548.90 | ' | $500 |
Federal income tax portion to former parent | ' | ' | 3 | ' | ' | ' |
Proceeds from final settlement of 2011 income tax returns | ' | ' | ' | ' | 1.2 | ' |
Weighted-average interest rate on loans | ' | ' | ' | 3.40% | ' | ' |
Related party interest expense | ' | ' | ' | 29.3 | ' | ' |
Related party interest income | ' | ' | ' | 6.1 | ' | ' |
Related party interest, net | ' | ' | ' | ($23.20) | ' | ' |
Business_Separation_Costs_Addi
Business Separation Costs - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Separation and Merger Transaction [Line Items] | ' |
Plan modification, additional pre-tax stock-based compensation charges | $2.40 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Purchase obligations | $298.80 | ' | ' |
Purchase obligations due in one year | 283.9 | ' | ' |
Operating leases, rent expense net | $47.90 | $49.30 | $35.20 |
Future_Minimum_Rental_Payments
Future Minimum Rental Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | ' |
2014 | $29.40 |
2015 | 24 |
2016 | 17 |
2017 | 8.4 |
2018 | 6.1 |
Remainder | 4.4 |
Total minimum rental payments | $89.30 |
Activity_Related_to_Product_Wa
Activity Related to Product Warranty Liability (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Product Warranty Liability [Line Items] | ' | ' | ' |
Reserve balance at the beginning of the year | $14.30 | $13.90 | $12.60 |
Provision for warranties issued | 20.1 | 17.5 | 18.9 |
Settlements made (in cash or in kind) | -19.2 | -17.1 | -17.6 |
Reserve balance at end of year | $15.20 | $14.30 | $13.90 |
Net_Sales_and_Operating_Income
Net Sales and Operating Income by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | $1,101.90 | $1,125.10 | $1,040.40 | $890 | $947.90 | $909.10 | $935.30 | $798.80 | $4,157.40 | [1] | $3,591.10 | [1] | $3,328.60 | [1] | ||
OPERATING INCOME (LOSS) | 95.4 | 98.6 | 106.5 | 56.6 | 7.5 | 60.6 | 72.3 | 21.3 | 357.1 | 161.7 | -15.6 | |||||
Assets | 4,178.10 | ' | ' | ' | 3,873.90 | ' | ' | ' | 4,178.10 | 3,873.90 | 3,637.90 | |||||
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 96.7 | 75 | 68.5 | |||||
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -73.1 | -102.4 | -120.7 | |||||
Less: proceeds from disposition of assets | ' | ' | ' | ' | ' | ' | ' | ' | -2.2 | -13.5 | -3.5 | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 77.2 | 90.2 | 97.1 | |||||
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 94.5 | 61.5 | 65 | |||||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 13.2 | 11.1 | 14.4 | |||||
Net sales | 1,101.90 | 1,125.10 | 1,040.40 | 890 | 947.9 | 909.1 | 935.3 | 798.8 | 4,157.40 | [1] | 3,591.10 | [1] | 3,328.60 | [1] | ||
Property, plant and equipment, net | 534.4 | ' | ' | ' | 509.4 | ' | ' | ' | 534.4 | 509.4 | 525.8 | |||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
OPERATING INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | -73.1 | [2] | -102.4 | [2] | -120.7 | [2] | ||
Assets | 185.9 | [3] | ' | ' | ' | 305.7 | [3] | ' | ' | ' | 185.9 | [3] | 305.7 | [3] | 95.6 | [3] |
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | 0.2 | ' | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | 1.5 | 0.5 | |||||
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,479.40 | [1] | 2,969.10 | [1] | 2,755 | [1] | ||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,479.40 | [1] | 2,969.10 | [1] | 2,755 | [1] | ||
Property, plant and equipment, net | 439.2 | ' | ' | ' | 428.9 | ' | ' | ' | 439.2 | 428.9 | 443.7 | |||||
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 418.1 | [1] | 405.3 | [1] | 390.3 | [1] | ||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 418.1 | [1] | 405.3 | [1] | 390.3 | [1] | ||
Property, plant and equipment, net | 29.4 | ' | ' | ' | 32.7 | ' | ' | ' | 29.4 | 32.7 | 32.8 | |||||
China and other international | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 259.9 | [1] | 216.7 | [1] | 183.3 | [1] | ||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 259.9 | [1] | 216.7 | [1] | 183.3 | [1] | ||
Property, plant and equipment, net | 10.2 | ' | ' | ' | 10.8 | ' | ' | ' | 10.2 | 10.8 | 10.2 | |||||
MEXICO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Property, plant and equipment, net | 55.6 | ' | ' | ' | 37 | ' | ' | ' | 55.6 | 37 | 39.1 | |||||
General and administrative expense | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -78 | [4] | -63.7 | [4] | -44.1 | [4] | ||
Business separation costs | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.4 | |||||
Defined benefit plan costs | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | 10.1 | 3.5 | 5.8 | |||||
Defined Benefit Plan Contributions | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -5.2 | -42.2 | -80 | |||||
Kitchen and Bath Cabinetry | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets | 1,588 | ' | ' | ' | 1,248.50 | ' | ' | ' | 1,588 | 1,248.50 | 1,273.20 | |||||
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 36.4 | 27.7 | 29.1 | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 29.3 | 38.8 | 38.6 | |||||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | 3.3 | 6 | |||||
Kitchen and Bath Cabinetry | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,642.20 | 1,326.60 | 1,256.30 | |||||
OPERATING INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 97.1 | 20.5 | 5.7 | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,642.20 | 1,326.60 | 1,256.30 | |||||
Plumbing and Accessories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets | 1,176.30 | ' | ' | ' | 1,081.70 | ' | ' | ' | 1,176.30 | 1,081.70 | 1,065 | |||||
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 25.3 | 19.1 | 16.5 | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 16.7 | 18.1 | 18.2 | |||||
Plumbing and Accessories | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,287 | 1,100.70 | 962.8 | |||||
OPERATING INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 228.3 | 169.2 | 138 | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,287 | 1,100.70 | 962.8 | |||||
Advanced Material Windows and Door Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets | 766.1 | ' | ' | ' | 778.2 | ' | ' | ' | 766.1 | 778.2 | 804.2 | |||||
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 13.6 | 15 | 13.5 | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 16.9 | 18.5 | 25.8 | |||||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 7.5 | 7.5 | 7.9 | |||||
Advanced Material Windows and Door Systems | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 657.8 | 587.2 | 552.9 | |||||
OPERATING INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 14.4 | -1 | -101.2 | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 657.8 | 587.2 | 552.9 | |||||
Security and Storage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets | 461.8 | ' | ' | ' | 459.8 | ' | ' | ' | 461.8 | 459.8 | 399.9 | |||||
Capital expenditures, gross | ' | ' | ' | ' | ' | ' | ' | ' | 18.9 | 13 | 9.4 | |||||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13.3 | 14 | |||||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.3 | 0.5 | |||||
Security and Storage | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 570.4 | 576.6 | 556.6 | |||||
OPERATING INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 90.4 | 75.4 | 62.6 | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $570.40 | $576.60 | $556.60 | |||||
[1] | Based on country of destination | |||||||||||||||
[2] | Below is a table detailing Corporate expenses: | |||||||||||||||
[3] | Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent. | |||||||||||||||
[4] | General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011. |
Information_on_Business_Segmen2
Information on Business Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer | Customer | Customer | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of customers accounted for greater than 10% of net sales | 2 | 2 | 2 |
Net Sales | The Home Depot, Inc. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of net sales to major customer | 14.00% | 13.00% | 13.00% |
Net Sales | Lowe's Companies, Inc | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of net sales to major customer | 13.00% | 13.00% | 15.00% |
Net_Sales_and_Operating_Income1
Net Sales and Operating Income by Segment (Parenthetical) (Detail) (Former Parent, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2011 |
Former Parent | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' |
Corporate expenses | $23.40 |
Schedule_of_Quarterly_Financia
Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | $1,101.90 | $1,125.10 | $1,040.40 | $890 | $947.90 | $909.10 | $935.30 | $798.80 | $4,157.40 | [1] | $3,591.10 | [1] | $3,328.60 | [1] |
Gross profit | 376.7 | 384.9 | 377 | 300.2 | 303.5 | 302.3 | 317.4 | 246.8 | 1,438.80 | 1,170 | ' | |||
OPERATING INCOME (LOSS) | 95.4 | 98.6 | 106.5 | 56.6 | 7.5 | 60.6 | 72.3 | 21.3 | 357.1 | 161.7 | -15.6 | |||
Net income | 64.6 | 64.6 | 64.2 | 37.5 | 18.6 | 40.2 | 47.9 | 13 | 230.9 | 119.7 | -34.6 | |||
Net income attributable to Home & Security | $64.20 | $64.20 | $64 | $37.30 | $18.40 | $40 | $47.80 | $12.50 | $229.70 | $118.70 | ($35.60) | |||
Basic earnings per common share | $0.39 | $0.39 | $0.39 | $0.23 | $0.11 | $0.25 | $0.30 | $0.08 | $1.39 | [2] | $0.74 | [2] | ($0.23) | [2] |
Diluted earnings per common share | $0.37 | $0.37 | $0.37 | $0.22 | $0.11 | $0.24 | $0.29 | $0.08 | $1.34 | [2] | $0.71 | [2] | ($0.23) | [2] |
[1] | Based on country of destination | |||||||||||||
[2] | On September 27, 2011, shares of Home & Security common stock (par value $0.01 per share) were split from 1,000 shares issued and outstanding and 100,000 shares authorized to approximately 155.1 million shares issued and outstanding and 750 million shares authorized. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of Home & Security shares for the stock split for periods prior to September 27, 2011. |
Quarterly_Financial_Data_Addit
Quarterly Financial Data - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
Kitchen and Bath Cabinetry | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | Pre Tax | After Tax | After Tax | After Tax | After Tax | After Tax | After Tax | After Tax | After Tax | |||||||||
Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Kitchen and Bath Cabinetry | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Kitchen and Bath Cabinetry | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | Tradenames | ||||||||||||||||
Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | Advanced Material Windows & Door Systems | ||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actuarial loss | ' | ' | ' | ' | ' | ($5.20) | ($42.20) | ($80) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.40) | ($0.30) | ($0.70) | ($4.60) | ($38.50) | ($3.70) | ($5.20) | ($42.20) | ' | ' | ' | ($0.40) | ($0.20) | ($0.40) | ($3.10) | ($23.90) | ($2.30) | ' |
Actuarial loss per diluted share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0.02 | $0.14 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | 6.2 | ' | ' | 21.2 | 21.2 | 15.8 | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.8 | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets impairment charges per diluted share | ' | ' | ' | ' | ' | ' | ' | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets impairment charges | $21.20 | ' | $15.80 | $90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $90 | $15.80 | ' | ' | ' | ' | ' | ' | ' | $9.70 |
Computations_of_Earnings_Loss_
Computations of Earnings Loss Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income (loss) attributable to Home & Security | $64.20 | $64.20 | $64 | $37.30 | $18.40 | $40 | $47.80 | $12.50 | $229.70 | $118.70 | ($35.60) | |||
BASIC EARNINGS (LOSS) PER COMMON SHARE | $0.39 | $0.39 | $0.39 | $0.23 | $0.11 | $0.25 | $0.30 | $0.08 | $1.39 | [1] | $0.74 | [1] | ($0.23) | [1] |
DILUTED EARNINGS (LOSS) PER COMMON SHARE | $0.37 | $0.37 | $0.37 | $0.22 | $0.11 | $0.24 | $0.29 | $0.08 | $1.34 | [1] | $0.71 | [1] | ($0.23) | [1] |
Basic average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 165.5 | [1] | 160.6 | [1] | 155.2 | [1] |
Diluted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 171.3 | [1] | 166.1 | [1] | 155.2 | [1] |
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.7 | 22.1 | |||
[1] | On September 27, 2011, shares of Home & Security common stock (par value $0.01 per share) were split from 1,000 shares issued and outstanding and 100,000 shares authorized to approximately 155.1 million shares issued and outstanding and 750 million shares authorized. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of Home & Security shares for the stock split for periods prior to September 27, 2011. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | Sep. 27, 2011 |
Earnings Per Share Disclosure [Line Items] | ' |
Common stock, shares issued and outstanding | 155,052,629 |
Components_of_Other_Expense_In
Components of Other Expense Income Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' |
Foreign currency transaction losses | ' | ' | $2.70 |
Asset impairment charge | 6.2 | ' | ' |
Other items, net | -1.2 | -1 | -1.1 |
Total other expense (income), net | $5 | ($1) | $1.60 |
Other_Expense_Net_Additional_I
Other Expense, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Components of Other Income (Expense) [Line Items] | ' | ' | ' | ' | ' |
Impairment charge | $6,200,000 | $21,200,000 | $21,200,000 | $15,800,000 | $90,000,000 |
Carrying value of the investment | $0 | ' | ' | ' | ' |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | ($27.30) | ($2.30) | $0.70 | |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | -2,718.60 | -2,421.10 | -2,332.10 | |
Income taxes (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -114 | -34.3 | 9 | |
NET INCOME (LOSS) | 64.6 | 64.6 | 64.2 | 37.5 | 18.6 | 40.2 | 47.9 | 13 | 230.9 | 119.7 | -34.6 | |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 14.8 | ' | ' | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |
Income taxes (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -0.7 | ' | ' | |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | ' | ' | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | Foreign exchange contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | ' | ' | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | Commodity contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | ' | ' | |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plan Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amortization of prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | 27.3 | [1] | ' | ' |
Recognition of actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | -5.2 | [1] | ' | ' |
Curtailment and settlement losses | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | [1] | ' | ' |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 21.9 | ' | ' | |
Income taxes (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -8.4 | ' | ' | |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | $13.50 | ' | ' | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, "Defined Benefit Plans," for additional information. |
Components_of_and_Changes_in_A
Components of and Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | $30.60 | $10.60 | $29.50 |
Amounts classified into accumulated other comprehensive income | 79.6 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -14.8 | ' | ' |
Changes during year | 64.8 | 20 | -18.9 |
Ending Balance | 95.4 | 30.6 | 10.6 |
Foreign Currency Adjustments | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 63.5 | 55.1 | 56.9 |
Amounts classified into accumulated other comprehensive income | -10.2 | ' | ' |
Changes during year | -10.2 | 8.4 | -1.8 |
Ending Balance | 53.3 | 63.5 | 55.1 |
Derivative Hedging Gain | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 0.2 | 0.5 | 1.2 |
Amounts classified into accumulated other comprehensive income | 2 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -1.3 | ' | ' |
Changes during year | 0.7 | -0.3 | -0.7 |
Ending Balance | 0.9 | 0.2 | 0.5 |
Defined Benefit Plan Adjustments | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -33.1 | -45 | -28.6 |
Amounts classified into accumulated other comprehensive income | 87.8 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -13.5 | ' | ' |
Changes during year | 74.3 | 11.9 | -16.4 |
Ending Balance | $41.20 | ($33.10) | ($45) |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Accruals, Relating to environmental compliance and clean up | $5.60 | $6.80 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for cash discounts, returns and sales allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $35.40 | $39.30 | $37.30 | |||
Charged to Expense | 133.4 | 138 | 157.8 | |||
Write-offs, and Deductions | 133 | [1] | 142.1 | [1] | 155.8 | [1] |
Other | ' | 0.2 | ' | |||
Balance at End of Period | 35.8 | 35.4 | 39.3 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 9 | 10.6 | 14.7 | |||
Charged to Expense | 0.7 | 1.6 | 1.5 | |||
Write-offs, and Deductions | 2.9 | [1] | 3.2 | [1] | 5.6 | [1] |
Balance at End of Period | 6.8 | 9 | 10.6 | |||
Allowance for deferred tax assets | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 19.2 | 26.6 | 41.9 | |||
Charged to Expense | 1.5 | -7.4 | 21.5 | |||
Other | ' | ' | -36.8 | |||
Balance at End of Period | $20.70 | $19.20 | $26.60 | |||
[1] | Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. |