Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FBHS | ' |
Entity Registrant Name | 'FORTUNE BRANDS HOME & SECURITY, INC. | ' |
Entity Central Index Key | '0001519751 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 157,767,590 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net sales | $1,097.70 | $1,045 | $3,073.30 | $2,847.90 |
Cost of products sold | 719.4 | 686.1 | 2,023.50 | 1,853.60 |
Selling, general and administrative expenses | 238.3 | 235.7 | 699.4 | 701 |
Amortization of intangible assets | 3.5 | 3 | 9.6 | 6.3 |
Restructuring charges | 0.1 | 1.4 | 3.2 | 1.9 |
Asset impairment charge | ' | 21.2 | 0 | 21.2 |
Operating income | 136.4 | 97.6 | 337.6 | 263.9 |
Interest expense | 3.2 | 2.1 | 7.2 | 5.5 |
Other expense (income), net | -0.3 | -0.5 | 0.1 | 5.6 |
Income from continuing operations before income taxes | 133.5 | 96 | 330.3 | 252.8 |
Income tax provision | 44.9 | 31.9 | 105.2 | 84.7 |
Income from continuing operations, net of tax | 88.6 | 64.1 | 225.1 | 168.1 |
(Loss) income from discontinued operations, net of tax | -109.5 | 0.5 | -111.2 | -1.8 |
Net income (loss) | -20.9 | 64.6 | 113.9 | 166.3 |
Less: Noncontrolling interests | 0.2 | 0.4 | 0.9 | 0.8 |
Net income (loss) attributable to Home & Security | -21.1 | 64.2 | 113 | 165.5 |
Basic | ' | ' | ' | ' |
Continuing operations | $0.56 | $0.38 | $1.38 | $1.01 |
Discontinued operations | ($0.69) | $0.01 | ($0.69) | ($0.01) |
Net income (loss) attributable to Home & Security common shareholders | ($0.13) | $0.39 | $0.69 | $1 |
Diluted | ' | ' | ' | ' |
Continuing operations | $0.54 | $0.37 | $1.34 | $0.98 |
Discontinued operations | ($0.67) | ' | ($0.67) | ($0.01) |
Net income (loss) attributable to Home & Security common shareholders | ($0.13) | $0.37 | $0.67 | $0.97 |
Comprehensive income (loss) | ($31.20) | $64.30 | $95.70 | $187.50 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $175.10 | $241.40 | ||
Accounts receivable, net | 534.5 | 445.4 | ||
Inventories | 520.9 | 456.9 | ||
Other current assets | 132.4 | 127.8 | ||
Current assets of discontinued operations | ' | 55.9 | ||
Total current assets | 1,362.90 | 1,327.40 | ||
Property, plant and equipment, net of accumulated depreciation | 533.3 | 496 | ||
Goodwill | 1,455.60 | [1] | 1,433.80 | [1] |
Other intangible assets, net of accumulated amortization | 665.9 | 630 | ||
Other assets | 63.5 | 42.7 | ||
Non-current assets of discontinued operations | ' | 248.2 | ||
Total assets | 4,081.20 | 4,178.10 | ||
Current liabilities | ' | ' | ||
Notes payable to banks | 3.5 | 6 | ||
Current portion of long-term debt | 26.2 | ' | ||
Accounts payable | 341.4 | 329.8 | ||
Other current liabilities | 339.1 | 361.4 | ||
Current liabilities of discontinued operations | ' | 41.5 | ||
Total current liabilities | 710.2 | 738.7 | ||
Long-term debt | 653.8 | 350 | ||
Deferred income taxes | 198.2 | 198.9 | ||
Other non-current liabilities | 178.4 | 183.1 | ||
Non-current liabilities of discontinued operations | ' | 54.3 | ||
Total liabilities | 1,740.60 | 1,525 | ||
Commitments and contingencies (see Note 19) | ' | ' | ||
Home & Security stockholders' equity | ' | ' | ||
Common stock | 1.7 | [2] | 1.7 | [2] |
Paid-in capital | 2,501.70 | 2,431.30 | ||
Accumulated other comprehensive income | 77.3 | 95.4 | ||
Retained earnings | 256.5 | 200.8 | ||
Treasury stock | -500 | -79.8 | ||
Total Home & Security stockholders' equity | 2,337.20 | 2,649.40 | ||
Noncontrolling interests | 3.4 | 3.7 | ||
Total equity | 2,340.60 | 2,653.10 | ||
Total liabilities and equity | $4,081.20 | $4,178.10 | ||
[1] | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors segment and $90.1 million in the Security & Storage segment). | |||
[2] | Common stock, par value $0.01 per share; 171.3 million shares and 169.1 million shares issued at September 30, 2014 and December 31, 2013, respectively. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 171.3 | 169.1 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Operating activities | ' | ' | ||
Net income | $113.90 | $166.30 | ||
Non-cash pre-tax expense: | ' | ' | ||
Depreciation | 60.9 | 57.1 | ||
Amortization | 12.3 | 9.1 | ||
Stock-based compensation | 23.9 | 19.8 | ||
Recognition of actuarial losses | 1.7 | 5.6 | ||
Asset impairment charges | ' | 27.4 | ||
Loss on sale of discontinued operation | 83.2 | ' | ||
Loss on sale of property, plant and equipment | 0.5 | 0.8 | ||
Restructuring charges | 0.4 | ' | ||
Deferred income taxes | 5.6 | -0.9 | ||
Changes in assets and liabilities: | ' | ' | ||
Increase in accounts receivable | -77.6 | -97.4 | ||
Increase in inventories | -34.5 | -79.9 | ||
(Decrease) increase in accounts payable | -3.6 | 40.8 | ||
(Increase) decrease in other assets | -15.1 | 26.2 | ||
Decrease in accrued expenses and other liabilities | -104.5 | -19.9 | ||
Increase in accrued taxes | 43.1 | 11.2 | ||
Net cash provided by operating activities | 110.2 | 166.2 | ||
Investing activities | ' | ' | ||
Capital expenditures | -82.3 | -55.2 | ||
Proceeds from the disposition of assets | 0.2 | 2.1 | ||
Proceeds from sale of discontinued operation | 130 | ' | ||
Cost of acquisitions, net of cash | -118.5 | -302 | ||
Other investing activities | -7 | -0.2 | ||
Net cash used in investing activities | -77.6 | -355.3 | ||
Financing activities | ' | ' | ||
Increase in short-term debt, net | -2.7 | 0.9 | ||
Issuance of long-term debt | 835 | 220 | ||
Repayment of long-term debt | -505 | -190 | ||
Proceeds from the exercise of stock options | 23.1 | 41.3 | ||
Treasury stock purchases | -411.4 | -43.1 | ||
Excess tax benefit from the exercise of stock-based compensation | 24.4 | 16.5 | ||
Dividends to stockholders | -58.5 | [1] | -33.2 | [1] |
Other financing, net | -2.2 | -2.6 | ||
Net cash (used in) provided by financing activities | -97.3 | 9.8 | ||
Effect of foreign exchange rate changes on cash | -1.6 | 0.3 | ||
Net decrease in cash and cash equivalents | -66.3 | -179 | ||
Cash and cash equivalents at beginning of period | 241.4 | 336 | ||
Cash and cash equivalents at end of period | $175.10 | $157 | ||
[1] | Excludes dividends declared but not paid of $19.0 million as of September 30, 2014 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Dividends declared but not paid | $19 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Equity (USD $) | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Non-controlling Interests | |
In Millions, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2012 | $2,384.70 | $1.60 | $2,324.80 | $30.60 | $41 | ($16.90) | $3.60 | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | 166.3 | ' | ' | ' | 165.5 | ' | 0.8 | |
Other comprehensive income | 21.2 | ' | ' | 21 | ' | ' | 0.2 | |
Stock options exercised | 41.4 | 0.1 | 41.3 | ' | ' | ' | ' | |
Stock-based compensation | 13.9 | ' | 20.1 | ' | ' | -6.2 | ' | |
Tax benefit on exercise of stock options | [1] | 20.1 | ' | 20.1 | ' | ' | ' | ' |
Treasury stock purchase | -42.7 | ' | ' | ' | ' | -42.7 | ' | |
Dividends ($0.30 per Common share) in 2013 and ($0.36 per Common share) in 2014 | -49.8 | ' | ' | ' | -49.8 | ' | ' | |
Dividends paid to noncontrolling interests | -1.1 | ' | ' | ' | ' | ' | -1.1 | |
Ending Balance at Sep. 30, 2013 | 2,554 | 1.7 | 2,406.30 | 51.6 | 156.7 | -65.8 | 3.5 | |
Beginning Balance at Dec. 31, 2013 | 2,653.10 | 1.7 | 2,431.30 | 95.4 | 200.8 | -79.8 | 3.7 | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | 113.9 | ' | ' | ' | 113 | ' | 0.9 | |
Other comprehensive income | -18.2 | ' | ' | -18.1 | ' | ' | -0.1 | |
Stock options exercised | 23.1 | ' | 23.1 | ' | ' | ' | ' | |
Stock-based compensation | 15 | ' | 23.8 | ' | ' | -8.8 | ' | |
Tax benefit on exercise of stock options | 24.7 | ' | 24.7 | ' | ' | ' | ' | |
Tax-related adjustments | -1.2 | ' | -1.2 | ' | ' | ' | ' | |
Treasury stock purchase | -411.4 | ' | ' | ' | ' | -411.4 | ' | |
Dividends ($0.30 per Common share) in 2013 and ($0.36 per Common share) in 2014 | -57.3 | ' | ' | ' | -57.3 | ' | ' | |
Dividends paid to noncontrolling interests | -1.1 | ' | ' | ' | ' | ' | -1.1 | |
Ending Balance at Sep. 30, 2014 | $2,340.60 | $1.70 | $2,501.70 | $77.30 | $256.50 | ($500) | $3.40 | |
[1] | Included $4.1 million of adjustments related to previously vested and unvested Restricted Stock Units. |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Equity (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Dividends per Common share | $0.36 | $0.30 |
Adjustments related to prior years' vested and unvested Restricted Stock Units | $4.10 | ' |
Basis_of_Presentation_and_Prin
Basis of Presentation and Principles of Consolidation | 9 Months Ended | |
Sep. 30, 2014 | ||
Basis of Presentation and Principles of Consolidation | ' | |
1 | Basis of Presentation and Principles of Consolidation | |
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. | ||
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. | ||
The condensed consolidated balance sheet as of September 30, 2014, the related condensed consolidated statements of comprehensive income for the nine-month and three-month periods ended September 30, 2014 and 2013 and the related condensed consolidated statements of cash flows and equity for the nine-month periods ended September 30, 2014 and 2013 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations for the interim periods have been included and are of a normal, recurring nature. Interim results may not be indicative of results for a full year. | ||
The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our annual consolidated financial statements and notes. The year-end condensed consolidated balance sheet was derived from the audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). This Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | ||
In accordance with Accounting Standards Codification (“ASC”) requirements and in connection with the sale of all of the shares of stock of Fortune Brands Windows, Inc., our subsidiary that owned and operated the Simonton windows business (“Simonton”), the results of operations of Simonton were reclassified and separately stated as discontinued operations in the accompanying condensed consolidated statements of comprehensive income for the nine and three months ended September 30, 2014 and 2013. The assets and liabilities of Simonton were reclassified as a discontinued operation in the accompanying condensed consolidated balance sheet as of December 31, 2013. The cash flows from discontinued operations for the nine months ending September 30, 2014 and 2013 were not separately classified on the accompanying condensed consolidated statements of cash flows. Information on Business Segments was revised to exclude this discontinued operation. | ||
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended | |
Sep. 30, 2014 | ||
Recently Issued Accounting Standards | ' | |
2 | Recently Issued Accounting Standards | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | ||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This amendment is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We do not expect this standard to have a material effect on our financial statements. | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU clarifies the accounting for revenue arising from contracts with customers and specifies the disclosures that an entity should include in its financial statements. The amendment is effective for annual reporting periods beginning after December 15, 2016 (calendar year 2017 for Home & Security). We are assessing the impact the adoption of this standard will have on our financial statements. | ||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the definition of discontinued operations and requires expanded disclosures. The amendment is effective for annual periods beginning on or after December 15, 2014 (calendar year 2015 for Home & Security). We do not expect this standard to have a material effect on our financial statements. |
Discontinued_Operation
Discontinued Operation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Discontinued Operation | ' | ||||||||||||||||
3 | Discontinued Operation | ||||||||||||||||
In August 2014, the Company decided to sell its Simonton window business in order to prioritize management and financial resources on its remaining higher margin businesses and better position them for growth in future periods. As a result of the decision, in August 2014, the Company entered into a stock purchase agreement to sell Simonton for $130 million in cash. The sale was completed in September 2014. Simonton is presented as a discontinued operation in the Company’s financial statements beginning in the third quarter of 2014 in accordance with ASC requirements. Simonton was previously reported in the Advanced Material Windows & Door Systems segment, which has been renamed the Doors segment. | |||||||||||||||||
The condensed consolidated statements of comprehensive income and condensed consolidated balance sheets for all prior periods have been adjusted to reflect the presentation of Simonton as a discontinued operation. | |||||||||||||||||
The following table summarizes the results of the discontinued operations for the nine and three months ended September 30, 2014 and 2013. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | $ | 218.3 | $ | 207.6 | $ | 85.5 | $ | 80.1 | |||||||||
(Loss) income from discontinued operations before income taxes | $ | (85.6 | ) | $ | (2.1 | ) | $ | (83.3 | ) | $ | 1 | ||||||
Income taxes | 25.6 | (0.3 | ) | 26.2 | 0.5 | ||||||||||||
(Loss) income from discontinued operations, net tax | $ | (111.2 | ) | $ | (1.8 | ) | $ | (109.5 | ) | $ | 0.5 | ||||||
The 2014 year-to-date and third quarter loss in discontinued operations included a loss on sale of the business of $111.8 million. | |||||||||||||||||
The following table summarizes the major classes of assets and liabilities of Simonton, which are now reflected as a discontinued operation on the consolidated balance sheet at December 31, 2013: | |||||||||||||||||
(in millions) | December 31, | ||||||||||||||||
2013 | |||||||||||||||||
Accounts receivable, net | $ | 31.7 | |||||||||||||||
Inventories | 14.7 | ||||||||||||||||
Other current assets | 9.5 | ||||||||||||||||
Total current assets | 55.9 | ||||||||||||||||
Property, plant and equipment, net | 38.4 | ||||||||||||||||
Goodwill | 86.1 | ||||||||||||||||
Identifiable intangibles, net | 122.9 | ||||||||||||||||
Other assets | 0.8 | ||||||||||||||||
Total assets | $ | 304.1 | |||||||||||||||
Accounts payable | $ | 14 | |||||||||||||||
Other current liabilities | 27.5 | ||||||||||||||||
Total current liabilities | 41.5 | ||||||||||||||||
Other liabilities | 54.3 | ||||||||||||||||
Total liabilities | $ | 95.8 | |||||||||||||||
Acquisitions
Acquisitions | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Acquisitions | ' | ||||
4 | Acquisitions | ||||
In July 2014, the Company acquired John D. Brush & Co., Inc. (“SentrySafe”) for a purchase price of $118.5 million in cash, subject to certain post-closing adjustments. The purchase price was funded from existing credit facilities. This acquisition broadens our product offering of security products. A preliminary allocation of the purchase price has been reflected in these financial statements and will be updated as asset and liability valuations are finalized. Final adjustments will reflect the fair value assigned to the assets, including intangible assets, and assumed liabilities. The acquisition was not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements. Net sales in the two months ended September 30, 2014 were approximately $25 million. | |||||
In June 2013, the Company acquired Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops, for a purchase price of $302 million. 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 and operating income of WoodCrafters in the first six months of 2014 were approximately $100 million and $12 million, respectively. | |||||
The following table summarizes the final allocation of the purchase price to fair values of assets acquired and liabilities assumed as of the date of the acquisition. | |||||
(In millions) | |||||
Accounts receivable | $ | 41.4 | |||
Inventories | 25.7 | ||||
Property, plant and equipment | 29.6 | ||||
Goodwill | 143.4 | ||||
Identifiable intangible assets | 89.4 | ||||
Other assets | 7.3 | ||||
Total assets | 336.8 | ||||
Other liabilities and accruals | 34.8 | ||||
Net assets acquired | $ | 302 | |||
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. In accordance with ASC requirements, the results of operations related to the sale of Simonton were reclassified and not included the summary below. 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, except per share amounts) | Nine Months Ended | ||||
September 30, | |||||
2013 | |||||
Net sales | $ | 2,955.30 | |||
Income from continuing operations | 176.9 | ||||
Basic earnings per common share | $ | 1.07 | |||
Diluted earnings per common share | $ | 1.03 |
Balance_Sheet_Information
Balance Sheet Information | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Balance Sheet Information | ' | ||||||||
5 | Balance Sheet Information | ||||||||
Supplemental information on our balance sheets is as follows: | |||||||||
(In millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Inventories: | |||||||||
Raw materials and supplies | $ | 190.1 | $ | 171.9 | |||||
Work in process | 56.8 | 52.5 | |||||||
Finished products | 274 | 232.5 | |||||||
Total inventories | $ | 520.9 | $ | 456.9 | |||||
Property, plant and equipment, gross | $ | 1,511.90 | $ | 1,463.10 | |||||
Less: accumulated depreciation | 978.6 | 967.1 | |||||||
Property, plant and equipment, net | $ | 533.3 | $ | 496 |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Identifiable Intangible Assets | ' | ||||||||||||||||||||||||
6 | Goodwill and Identifiable Intangible Assets | ||||||||||||||||||||||||
We had goodwill of $1,455.6 million and $1,433.8 million as of September 30, 2014 and December 31, 2013, respectively. The increase of $21.8 million was primarily due to the acquisition of SentrySafe. The change in the net carrying amount of goodwill by segment was as follows: | |||||||||||||||||||||||||
(In millions) | Cabinets | Plumbing | Doors | Security & | Total | ||||||||||||||||||||
Storage | Goodwill | ||||||||||||||||||||||||
Goodwill at December 31, 2013 (a) | $ | 631.7 | $ | 569.7 | $ | 143 | $ | 89.4 | $ | 1,433.80 | |||||||||||||||
Year-to-date translation adjustments | (0.5 | ) | — | — | (0.4 | ) | (0.9 | ) | |||||||||||||||||
Acquisition-related adjustments | 0.7 | — | — | 22 | 22.7 | ||||||||||||||||||||
Goodwill at September 30, 2014 (a) | $ | 631.9 | $ | 569.7 | $ | 143 | $ | 111 | $ | 1,455.60 | |||||||||||||||
(a) | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors segment and $90.1 million in the Security & Storage segment). | ||||||||||||||||||||||||
We also had identifiable intangible assets, principally tradenames, of $665.9 million and $630.0 million as of September 30, 2014 and December 31, 2013, respectively. The $45.4 million increase in gross amortizable identifiable intangible assets was predominantly due to the acquisition of SentrySafe. | |||||||||||||||||||||||||
The gross carrying value and accumulated amortization by class of intangible assets as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | ||||||||||||||||||||
(In millions) | Amounts | Amortization | Value | Amounts | Amortization | Value | |||||||||||||||||||
Indefinite-lived tradenames | $ | 547.2 | $ | (42.0 | )(a) | $ | 505.2 | $ | 538.8 | $ | (42.0 | )(a) | $ | 496.8 | |||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Tradenames | 17 | (7.7 | ) | 9.3 | 17.2 | (7.2 | ) | 10 | |||||||||||||||||
Customer and contractual relationships | 296.4 | (163.1 | ) | 133.3 | 260.2 | (156.5 | ) | 103.7 | |||||||||||||||||
Patents/proprietary technology | 58.2 | (40.1 | ) | 18.1 | 57.2 | (37.7 | ) | 19.5 | |||||||||||||||||
Total | 371.6 | (210.9 | ) | 160.7 | 334.6 | (201.4 | ) | 133.2 | |||||||||||||||||
Total identifiable intangibles | $ | 918.8 | $ | (252.9 | ) | $ | 665.9 | $ | 873.4 | $ | (243.4 | ) | $ | 630 | |||||||||||
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles – Goodwill and Other Assets. | ||||||||||||||||||||||||
Amortizable identifiable 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. |
Asset_Impairment_Charges
Asset Impairment Charges | 9 Months Ended | |
Sep. 30, 2014 | ||
Asset Impairment Charges | ' | |
7 | Asset Impairment Charges | |
No asset impairment charges occurred in the nine months ended September 30, 2014. At the end of the third quarter of 2013, our Cabinets 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 our 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 and reduced property, plant and equipment. | ||
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. |
External_Debt_and_Financing_Ar
External Debt and Financing Arrangements | 9 Months Ended | |
Sep. 30, 2014 | ||
External Debt and Financing Arrangements | ' | |
8 | External Debt and Financing Arrangements | |
In August 2014, the Company amended its credit agreement to increase total lending commitments from $1 billion to $1.5 billion. All other terms and conditions of the credit agreement remain essentially the same. As a result of the refinancing, there was no write-off of prepaid debt issuance costs. We have a $975 million committed revolving credit facility, as well as a $525 million term loan, both of which expire in July 2018. Both facilities can be used for general corporate purposes. On September 30, 2014 and December 31, 2013, our outstanding borrowings under these facilities were $680.0 million and $350.0 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 at September 30, 2014, the Company’s borrowing rate will range from LIBOR + 1.0% to LIBOR + 2.0%. As of September 30, 2014, we were in compliance with all covenants under these facilities. | ||
At September 30, 2014 and December 31, 2013, there were $3.5 million and $6.0 million of external short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes. The September 30, 2014 amount pertained to uncommitted bank lines of credit in China. The December 31, 2013 amount also includes a bank line of credit in India, which was repaid and terminated in 2014. These bank lines of credit provide for unsecured borrowings for working capital of up to $15.7 million and $22.7 million, as of September 30, 2014 and December 31, 2013, respectively. The weighted-average interest rates on these borrowings were 8.2% and 12.4% in the nine-month periods ended September 30, 2014 and 2013, respectively. The weighted-average interest rates on these borrowings were 12.2% and 12.5% in the three-month periods ended September 30, 2014 and 2013, respectively. | ||
As of September 30, 2014, JPMorgan Chase & Co. and its wholly owned subsidiaries (“JPM”) owned approximately 12% of the Company’s common stock. JPMorgan Chase Bank, N.A., a subsidiary of JPM, was a lender of $56.4 million of our total debt under our credit facilities and held $0.4 million of our cash balances. In addition, JPMorgan Investment Management, Inc., another subsidiary of JPM, manages pension assets in the Company’s Master Retirement Trust, which totaled $24.4 million as of September 30, 2014. JPMorgan Chase & Co. does not participate in management of the Company nor do any of its employees sit on our Board of Directors. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Financial Instruments | ' | ||||||||||
9 | 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. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. In addition, from time to time, we enter into commodity swaps. | |||||||||||
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 September 30, 2014 was $274.6 million, representing a net settlement asset of $1.0 million. Based on foreign exchange rates as of September 30, 2014, we estimate that $0.8 million of net foreign currency derivative gains included in other comprehensive income as of September 30, 2014 will be reclassified to earnings within the next twelve months. | |||||||||||
The fair values of derivative instruments on the consolidated balance sheets as of September 30, 2014 and December 31, 2013 were: | |||||||||||
Fair Value | |||||||||||
(In millions) | Location | September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Assets | |||||||||||
Foreign exchange contracts | Other current assets | $ | 2.1 | $ | 2.1 | ||||||
Net investment hedges | Other current assets | 0.3 | 0.6 | ||||||||
Total assets | $ | 2.4 | $ | 2.7 | |||||||
Liabilities | |||||||||||
Foreign exchange contracts | Other current liabilities | $ | 1.4 | $ | 0.3 | ||||||
The effects of derivative financial instruments on the statements of comprehensive income for the nine and three months ended September 30, 2014 and 2013 were: | |||||||||||
(In millions) | Gain Recognized in Income | ||||||||||
Nine Months Ended September 30, | |||||||||||
Type of hedge | Location | 2014 | 2013 | ||||||||
Cash flow | Cost of products sold | $ | 0.4 | $ | 2.3 | ||||||
Fair value | Other income, net | 1.6 | 1.3 | ||||||||
Total | $ | 2 | $ | 3.6 | |||||||
(In millions) | Gain Recognized in Income | ||||||||||
Three Months Ended September 30, | |||||||||||
Type of hedge | Location | 2014 | 2013 | ||||||||
Cash flow | Cost of products sold | $ | (0.2 | ) | $ | 0.9 | |||||
Fair value | Other income, net | 0.8 | 1.3 | ||||||||
Total | $ | 0.6 | $ | 2.2 | |||||||
The effective portion of cash flow hedges recognized in other comprehensive income were net (losses) gains of $(0.1) million and $3.3 million in the nine months ended September 30, 2014 and 2013, respectively. The effective portion of cash flow hedges recognized in other comprehensive income were net gains of $2.8 million and $1.0 million in the three months ended September 30, 2014 and 2013, respectively. In the nine and three months ended September 30, 2014 and 2013, the ineffective portion of cash flow hedges recognized in other expense (income), net, was insignificant. | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Fair Value Measurements | ' | ||||||||
10 | Fair Value Measurements | ||||||||
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||
Fair Value | |||||||||
(In millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Derivative financial instruments (level 2) | $ | 2.4 | $ | 2.7 | |||||
Deferred compensation program assets (level 1) | 3.2 | 3.5 | |||||||
Total assets | $ | 5.6 | $ | 6.2 | |||||
Liabilities | |||||||||
Derivative financial instruments (level 2) | $ | 1.4 | $ | 0.3 | |||||
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 inputs 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 September 30, 2014 and December 31, 2013 of $680.0 million and $350.0 million, respectively, approximated fair value. The fair value of the Company’s long-term debt was determined primarily by using broker quotes, which are Level 2 inputs. |
Defined_Benefit_Plans
Defined Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Defined Benefit Plans | ' | ||||||||||||||||
11 | Defined Benefit Plans | ||||||||||||||||
The components of net periodic benefit cost (income) for pension and postretirement benefits for the nine and three months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 7.8 | $ | 8.6 | $ | — | $ | 0.3 | |||||||||
Interest cost | 24.7 | 22.5 | 0.5 | 1.3 | |||||||||||||
Expected return on plan assets | (31.7 | ) | (31.3 | ) | — | — | |||||||||||
Recognition of prior service costs (credits) | 0.1 | 0.1 | (24.2 | ) | (21.5 | ) | |||||||||||
Recognition of actuarial losses | 1.1 | 0.8 | 0.6 | 4.8 | |||||||||||||
Curtailment and settlement losses | — | 0.1 | — | 0.1 | |||||||||||||
Net periodic benefit cost (income) | $ | 2 | $ | 0.8 | $ | (23.1 | ) | $ (15.0) | |||||||||
Three Months Ended September 30, | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2.4 | $ | 2.3 | $ | — | $ | 0.1 | |||||||||
Interest cost | 8.5 | 7.5 | 0.1 | 0.3 | |||||||||||||
Expected return on plan assets | (10.6 | ) | (10.5 | ) | — | — | |||||||||||
Recognition of prior service costs (credits) | — | — | (6.5 | ) | (5.7 | ) | |||||||||||
Recognition of actuarial losses (gains) | 1.1 | 0.7 | — | (0.5 | ) | ||||||||||||
Curtailment and settlement losses | — | 0.1 | — | 0.1 | |||||||||||||
Net periodic benefit cost (income) | $ | 1.4 | $ | 0.1 | $ | (6.4 | ) | $ | (5.7 | ) | |||||||
In the third quarter of 2014, the Company made qualified pension plan contributions of approximately $2 million. In the remainder of 2014, we do not expect to make additional qualified pension plan contributions. | |||||||||||||||||
In the first quarter of 2014, we communicated our decision to amend certain postretirement benefits to reduce health benefits for certain current and retired employees. The impact of these changes was a reduction in accrued retiree benefit plan liabilities of $15.3 million and we recorded actuarial losses of $0.6 million and prior service credits of $3.5 million. In the first half of 2013, we communicated our decision to amend 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 benefits of $34.8 million in the first nine months of 2013 and we recognized actuarial losses of $4.8 million in the first nine months of 2013 due to a decrease in the discount rate and a resulting lower threshold for loss recognition because of the reduced postretirement obligation. Liability reductions from these plan amendments are recorded as amortization of prior service cost in net income in accordance with accounting requirements. See Note 18, “Accumulated Other Comprehensive Income,” for information on the impact on accumulated other comprehensive income. | |||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | |
Sep. 30, 2014 | ||
Income Taxes | ' | |
12 | Income Taxes | |
The effective income tax rates for the nine months ended September 30, 2014 and 2013 were 31.8% and 33.5%, respectively. The effective income tax rate for 2014 was favorably impacted by the release of valuation allowances related to state net operating loss carryforwards and by the tax benefit associated with the anticipated year-over-year increase of the Domestic Production Activity (Internal Revenue Code Section 199) deduction. 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 could not record an income tax benefit and favorably impacted by the tax benefits associated with the extension of the U.S. research and development credit under The American Taxpayer Relief Act of 2012. | ||
The effective income tax rates for the three months ended September 30, 2014 and 2013 were 33.6% and 33.2%, respectively. | ||
It is reasonably possible that, within the next 12 months, total unrecognized tax benefits may decrease in the range of $2 million to $6 million, primarily as a result of the conclusion of pending U.S. federal, state and foreign income tax proceedings. |
Product_Warranties
Product Warranties | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Product Warranties | ' | ||||||||
13 | 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 nine months ended September 30, 2014 and 2013, respectively. | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
(In millions) | 2014 | 2013 | |||||||
Reserve balance at January 1, | $ | 10.4 | $ | 9.5 | |||||
Provision for warranties issued | 17.1 | 13.5 | |||||||
Settlements made (in cash or in kind) | (16.4 | ) | (13.0 | ) | |||||
Reserve balance at September 30, | $ | 11.1 | $ | 10 |
Information_on_Business_Segmen
Information on Business Segments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Information on Business Segments | ' | ||||||||||||
14 | Information on Business Segments | ||||||||||||
In August 2014, the Company entered into a stock purchase agreement to sell Simonton for $130 million in cash. The sale was completed in September 2014. Historical information on business segments now excludes Simonton, which is presented as a discontinued operation in the consolidated financial statements of the Company. Simonton was previously reported in the Advanced Material Windows & Door Systems segment, which has been renamed the Doors segment. Refer to Note 3, “Discontinued Operation,” for additional information. | |||||||||||||
Net sales and operating income for the nine months ended September 30, 2014 and 2013 by segment were as follows: | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
(In millions) | 2014 | 2013 | % Change | ||||||||||
vs. Prior Year | |||||||||||||
Net Sales | |||||||||||||
Cabinets | $ | 1,331.40 | $ | 1,186.30 | 12.2 | % | |||||||
Plumbing | 995.9 | 969.6 | 2.7 | ||||||||||
Doors | 304.5 | 274.1 | 11.1 | ||||||||||
Security & Storage | 441.5 | 417.9 | 5.6 | ||||||||||
Net sales | $ | 3,073.30 | $ | 2,847.90 | 7.9 | % | |||||||
Operating Income | |||||||||||||
Cabinets | $ | 102.5 | $ | 63.8 | 60.7 | % | |||||||
Plumbing | 202.6 | 176.2 | 15 | ||||||||||
Doors | 21.7 | 12 | 80.8 | ||||||||||
Security & Storage | 56.7 | 68.1 | (16.7 | ) | |||||||||
Less: Corporate expenses | (45.9 | ) | (56.2 | ) | 18.3 | ||||||||
Operating income | $ | 337.6 | $ | 263.9 | 27.9 | % | |||||||
Corporate expenses | |||||||||||||
General and administrative expense | $ | (50.7 | ) | $ | (58.2 | ) | |||||||
Defined benefit plan costs | 4.8 | 2 | |||||||||||
Total Corporate expenses | $ | (45.9 | ) | $ | (56.2 | ) | 18.3 | % | |||||
Net sales and operating income for the three months ended September 30, 2014 and 2013 by segment were as follows: | |||||||||||||
Three Months Ended September 30, | |||||||||||||
(In millions) | 2014 | 2013 | % Change | ||||||||||
vs. Prior Year | |||||||||||||
Net Sales | |||||||||||||
Cabinets | $ | 452.6 | $ | 448.6 | 0.9 | % | |||||||
Plumbing | 345.9 | 338.1 | 2.3 | ||||||||||
Doors | 114.4 | 100.9 | 13.4 | ||||||||||
Security & Storage | 184.8 | 157.4 | 17.4 | ||||||||||
Net sales | $ | 1,097.70 | $ | 1,045.00 | 5 | % | |||||||
Operating Income | |||||||||||||
Cabinets | $ | 36.5 | $ | 14.1 | 158.9 | % | |||||||
Plumbing | 75.8 | 65.9 | 15 | ||||||||||
Doors | 12.1 | 7.5 | 61.3 | ||||||||||
Security & Storage | 27.1 | 29.5 | (8.1 | ) | |||||||||
Less: Corporate expenses | (15.1 | ) | (19.4 | ) | 22.2 | ||||||||
Operating income | $ | 136.4 | $ | 97.6 | 39.8 | % | |||||||
Corporate expenses | |||||||||||||
General and administrative expense | $ | (15.9 | ) | $ | (21.9 | ) | |||||||
Defined benefit plan costs | 0.8 | 2.5 | |||||||||||
Total Corporate expenses | $ | (15.1 | ) | $ | (19.4 | ) | 22.2 | % |
Other_Expense_Income_Net
Other Expense (Income), Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Expense (Income), Net | ' | ||||||||||||||||
15 | Other Expense (Income), Net | ||||||||||||||||
The components of other expense (income), net, were as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Asset impairment charge | $ | — | $ | 6.2 | $ | — | $ | — | |||||||||
Other | 0.1 | (0.6 | ) | (0.3 | ) | (0.5 | ) | ||||||||||
Total other expense (income), net | $ | 0.1 | $ | 5.6 | $ | (0.3 | ) | $ | (0.5 | ) | |||||||
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. |
Restructuring_and_Other_Charge
Restructuring and Other Charges | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Restructuring and Other Charges | ' | ||||||||||||
16 | Restructuring and Other Charges | ||||||||||||
Pre-tax restructuring and other charges for the nine and three months ended September 30, 2014 and 2013 are shown below. | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 0.3 | $ | — | $ | 0.3 | |||||||
Plumbing | (1.2 | ) | (0.1 | ) | (1.3 | ) | |||||||
Security & Storage | 2.5 | 0.2 | 2.7 | ||||||||||
Corporate | 1.6 | — | 1.6 | ||||||||||
Total | $ | 3.2 | $ | 0.1 | $ | 3.3 | |||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 1.9 | $ | 0.1 | $ | 2 | |||||||
Three Months Ended September 30, 2014 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Plumbing | $ | (0.3 | ) | $ | 0.5 | $ | 0.2 | ||||||
Security & Storage | 0.4 | 0.1 | 0.5 | ||||||||||
Total | $ | 0.1 | $ | 0.6 | $ | 0.7 | |||||||
Three Months Ended September 30, 2013 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 1.4 | $ | 0.1 | $ | 1.5 | |||||||
(a) | “Other Charges,” which were recorded in cost of products sold or selling, general and administrative expenses, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under U.S. 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 or losses on the sale of previously closed facilities. | ||||||||||||
Restructuring and other charges in the first nine months of 2014 primarily resulted from product line rationalization in the storage product line within our Security & Storage segment and severance charges in Corporate and the security product line within our Security & Storage segment, partially offset by a benefit from release of a foreign currency gain associated with the dissolution of a foreign entity in the Plumbing segment. The Company’s restructuring liability was not material as of September 30, 2014 and December 31, 2013. | |||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
17 | Earnings Per Share | ||||||||||||||||
The computations of earnings per common share (“EPS”) were as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income from continuing operations, net of tax | $ | 225.1 | $ | 168.1 | $ | 88.6 | $ | 64.1 | |||||||||
Less: Noncontrolling interests | 0.9 | 0.8 | 0.2 | 0.4 | |||||||||||||
Income from continuing operations for EPS | 224.2 | 167.3 | 88.4 | 63.7 | |||||||||||||
(Loss) income from discontinued operations | (111.2 | ) | (1.8 | ) | (109.5 | ) | 0.5 | ||||||||||
Net income (loss) attributable to Home & Security | $ | 113 | $ | 165.5 | $ | (21.1 | ) | $ | 64.2 | ||||||||
Earnings per common share | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | 1.38 | $ | 1.01 | $ | 0.56 | $ | 0.38 | |||||||||
Discontinued operations | (0.69 | ) | (0.01 | ) | (0.69 | ) | 0.01 | ||||||||||
Net income (loss) attributable to Home & Security common stockholders | $ | 0.69 | $ | 1 | $ | (0.13 | ) | $ | 0.39 | ||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | 1.34 | $ | 0.98 | $ | 0.54 | $ | 0.37 | |||||||||
Discontinued operations | (0.67 | ) | (0.01 | ) | (0.67 | ) | — | ||||||||||
Net income (loss) attributable to Home & Security common stockholders | $ | 0.67 | $ | 0.97 | $ | (0.13 | ) | $ | 0.37 | ||||||||
Basic average shares outstanding | 163 | 165.2 | 158.7 | 166 | |||||||||||||
Stock-based awards | 4.7 | 5.9 | 4.5 | 5.6 | |||||||||||||
Diluted average shares outstanding | 167.7 | 171.1 | 163.2 | 171.6 | |||||||||||||
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 0.5 | 0.8 | 0.6 | 0.7 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
18 | Accumulated Other Comprehensive Income | ||||||||||||||||
Total accumulated other comprehensive income consists of net income 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, net of tax, for the nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gains | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2013 | $ | 53.3 | $ | 0.9 | $ | 41.2 | $ | 95.4 | |||||||||
Amounts classified into accumulated other comprehensive income | (7.4 | ) | 0.1 | 5 | (a) | (2.3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (1.4 | ) | (0.4 | ) | (14.0 | ) | (15.8 | ) | |||||||||
Net current period other comprehensive income | (8.8 | ) | (0.3 | ) | (9.0 | ) | (18.1 | ) | |||||||||
Balance at September 30, 2014 | $ | 44.5 | $ | 0.6 | $ | 32.2 | $ | 77.3 | |||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gains | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2012 | $ | 63.5 | $ | 0.2 | $ | (33.1 | ) | $ | 30.6 | ||||||||
Amounts classified into accumulated other comprehensive income | (3.9 | ) | 2 | 33.7 | (a) | 31.8 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1.4 | ) | (9.4 | ) | (10.8 | ) | ||||||||||
Net current period other comprehensive income | (3.9 | ) | 0.6 | 24.3 | 21 | ||||||||||||
Balance at September 30, 2013 | $ | 59.6 | $ | 0.8 | $ | (8.8 | ) | $ | 51.6 | ||||||||
(a) | See Note 11, “Defined Benefit Plans,” for further information on the adjustments related to defined benefit plans. | ||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the nine and three months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
(In millions) | Amount Reclassified from | Affected Line Item in | |||||||||||||||
Accumulated Other Comprehensive Income | the Statement of | ||||||||||||||||
Nine Months Ended September 30, | Comprehensive Income | ||||||||||||||||
Details about Accumulated Other | |||||||||||||||||
Comprehensive Income Components | 2014 | 2013 | |||||||||||||||
Cumulative translation adjustments | $ | 1.4 | $ | — | Restructuring charges | ||||||||||||
Gains on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | 0.4 | $ | 2.6 | Cost of products sold | ||||||||||||
Commodity contracts | — | (0.3 | ) | Cost of products sold | |||||||||||||
0.4 | 2.3 | Total before tax | |||||||||||||||
— | (0.9 | ) | Tax expense | ||||||||||||||
$ | 0.4 | $ | 1.4 | Net of tax | |||||||||||||
Defined benefit plan items | |||||||||||||||||
Recognition of prior service cost | $ | 24.1 | $ | 21.4 | (a) | ||||||||||||
Recognition of actuarial losses | (1.7 | ) | (5.6 | ) | (a) | ||||||||||||
Curtailment and settlement losses | — | (0.2 | ) | (a) | |||||||||||||
22.4 | 15.6 | Total before tax | |||||||||||||||
(8.4 | ) | (6.2 | ) | Tax expense | |||||||||||||
$ | 14 | $ | 9.4 | Net of tax | |||||||||||||
Total reclassifications for the period | $ | 15.8 | $ | 10.8 | Net of tax | ||||||||||||
(In millions) | Amount Reclassified from | Affected Line Item in | |||||||||||||||
Accumulated Other Comprehensive Income | the Statement of | ||||||||||||||||
Three Months Ended September 30, | Comprehensive Income | ||||||||||||||||
Details about Accumulated Other | |||||||||||||||||
Comprehensive Income Components | 2014 | 2013 | |||||||||||||||
Cumulative translation adjustments | $ | 1.4 | $ | — | Restructuring charges | ||||||||||||
(Loss) gain on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | (0.2 | ) | $ | 1.1 | Cost of products sold | |||||||||||
Commodity contracts | — | (0.2 | ) | Cost of products sold | |||||||||||||
(0.2 | ) | 0.9 | Total before tax | ||||||||||||||
0.1 | (0.5 | ) | Tax expense | ||||||||||||||
$ | (0.1 | ) | $ | 0.4 | Net of tax | ||||||||||||
Defined benefit plan items | |||||||||||||||||
Recognition of prior service cost | $ | 6.5 | $ | 5.7 | (a) | ||||||||||||
Recognition of actuarial losses | (1.1 | ) | (0.2 | ) | (a) | ||||||||||||
Curtailment and settlement losses | — | (0.2 | ) | (a) | |||||||||||||
5.4 | 5.3 | Total before tax | |||||||||||||||
(2.0 | ) | (2.2 | ) | Tax expense | |||||||||||||
$ | 3.4 | $ | 3.1 | Net of tax | |||||||||||||
Total reclassifications for the period | $ | 4.7 | $ | 3.5 | Net of tax | ||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 11, “Defined Benefit Plans,” for additional information. | ||||||||||||||||
Contingencies
Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
Contingencies | ' | |
19 | Contingencies | |
Litigation | ||
We are defendants in lawsuits associated with the normal conduct of our 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 effect upon our 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 during the nine months ended September 30, 2014 and 2013. We are involved in remediation activities to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs of each site are based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties. Uncertainties about the status of laws, regulations, technology and information related to individual sites make it difficult to develop estimates of environmental remediation exposures. | ||
Discontinued_Operation_Tables
Discontinued Operation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Summary of the results of discontinued operations | ' | ||||||||||||||||
The following table summarizes the results of the discontinued operations for the nine and three months ended September 30, 2014 and 2013. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | $ | 218.3 | $ | 207.6 | $ | 85.5 | $ | 80.1 | |||||||||
(Loss) income from discontinued operations before income taxes | $ | (85.6 | ) | $ | (2.1 | ) | $ | (83.3 | ) | $ | 1 | ||||||
Income taxes | 25.6 | (0.3 | ) | 26.2 | 0.5 | ||||||||||||
(Loss) income from discontinued operations, net tax | $ | (111.2 | ) | $ | (1.8 | ) | $ | (109.5 | ) | $ | 0.5 | ||||||
The 2014 year-to-date and third quarter loss in discontinued operations included a loss on sale of the business of $111.8 million. | |||||||||||||||||
The following table summarizes the major classes of assets and liabilities of Simonton, which are now reflected as a discontinued operation on the consolidated balance sheet at December 31, 2013: | |||||||||||||||||
(in millions) | December 31, | ||||||||||||||||
2013 | |||||||||||||||||
Accounts receivable, net | $ | 31.7 | |||||||||||||||
Inventories | 14.7 | ||||||||||||||||
Other current assets | 9.5 | ||||||||||||||||
Total current assets | 55.9 | ||||||||||||||||
Property, plant and equipment, net | 38.4 | ||||||||||||||||
Goodwill | 86.1 | ||||||||||||||||
Identifiable intangibles, net | 122.9 | ||||||||||||||||
Other assets | 0.8 | ||||||||||||||||
Total assets | $ | 304.1 | |||||||||||||||
Accounts payable | $ | 14 | |||||||||||||||
Other current liabilities | 27.5 | ||||||||||||||||
Total current liabilities | 41.5 | ||||||||||||||||
Other liabilities | 54.3 | ||||||||||||||||
Total liabilities | $ | 95.8 | |||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Final Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||
The following table summarizes the final allocation of the purchase price to fair values of assets acquired and liabilities assumed as of the date of the acquisition. | |||||
(In millions) | |||||
Accounts receivable | $ | 41.4 | |||
Inventories | 25.7 | ||||
Property, plant and equipment | 29.6 | ||||
Goodwill | 143.4 | ||||
Identifiable intangible assets | 89.4 | ||||
Other assets | 7.3 | ||||
Total assets | 336.8 | ||||
Other liabilities and accruals | 34.8 | ||||
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. In accordance with ASC requirements, the results of operations related to the sale of Simonton were reclassified and not included the summary below. 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, except per share amounts) | Nine Months Ended | ||||
September 30, | |||||
2013 | |||||
Net sales | $ | 2,955.30 | |||
Income from continuing operations | 176.9 | ||||
Basic earnings per common share | $ | 1.07 | |||
Diluted earnings per common share | $ | 1.03 |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Information on Balance Sheets | ' | ||||||||
Supplemental information on our balance sheets is as follows: | |||||||||
(In millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Inventories: | |||||||||
Raw materials and supplies | $ | 190.1 | $ | 171.9 | |||||
Work in process | 56.8 | 52.5 | |||||||
Finished products | 274 | 232.5 | |||||||
Total inventories | $ | 520.9 | $ | 456.9 | |||||
Property, plant and equipment, gross | $ | 1,511.90 | $ | 1,463.10 | |||||
Less: accumulated depreciation | 978.6 | 967.1 | |||||||
Property, plant and equipment, net | $ | 533.3 | $ | 496 |
Goodwill_and_Identifiable_Inta1
Goodwill and Identifiable Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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) | Cabinets | Plumbing | Doors | Security & | Total | ||||||||||||||||||||
Storage | Goodwill | ||||||||||||||||||||||||
Goodwill at December 31, 2013 (a) | $ | 631.7 | $ | 569.7 | $ | 143 | $ | 89.4 | $ | 1,433.80 | |||||||||||||||
Year-to-date translation adjustments | (0.5 | ) | — | — | (0.4 | ) | (0.9 | ) | |||||||||||||||||
Acquisition-related adjustments | 0.7 | — | — | 22 | 22.7 | ||||||||||||||||||||
Goodwill at September 30, 2014 (a) | $ | 631.9 | $ | 569.7 | $ | 143 | $ | 111 | $ | 1,455.60 | |||||||||||||||
(a) | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors 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 September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | ||||||||||||||||||||
(In millions) | Amounts | Amortization | Value | Amounts | Amortization | Value | |||||||||||||||||||
Indefinite-lived tradenames | $ | 547.2 | $ | (42.0 | )(a) | $ | 505.2 | $ | 538.8 | $ | (42.0 | )(a) | $ | 496.8 | |||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Tradenames | 17 | (7.7 | ) | 9.3 | 17.2 | (7.2 | ) | 10 | |||||||||||||||||
Customer and contractual relationships | 296.4 | (163.1 | ) | 133.3 | 260.2 | (156.5 | ) | 103.7 | |||||||||||||||||
Patents/proprietary technology | 58.2 | (40.1 | ) | 18.1 | 57.2 | (37.7 | ) | 19.5 | |||||||||||||||||
Total | 371.6 | (210.9 | ) | 160.7 | 334.6 | (201.4 | ) | 133.2 | |||||||||||||||||
Total identifiable intangibles | $ | 918.8 | $ | (252.9 | ) | $ | 665.9 | $ | 873.4 | $ | (243.4 | ) | $ | 630 | |||||||||||
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles – Goodwill and Other Assets. | ||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | ||||||||||||||||||||
(In millions) | Amounts | Amortization | Value | Amounts | Amortization | Value | |||||||||||||||||||
Indefinite-lived tradenames | $ | 547.2 | $ | (42.0 | )(a) | $ | 505.2 | $ | 538.8 | $ | (42.0 | )(a) | $ | 496.8 | |||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Tradenames | 17 | (7.7 | ) | 9.3 | 17.2 | (7.2 | ) | 10 | |||||||||||||||||
Customer and contractual relationships | 296.4 | (163.1 | ) | 133.3 | 260.2 | (156.5 | ) | 103.7 | |||||||||||||||||
Patents/proprietary technology | 58.2 | (40.1 | ) | 18.1 | 57.2 | (37.7 | ) | 19.5 | |||||||||||||||||
Total | 371.6 | (210.9 | ) | 160.7 | 334.6 | (201.4 | ) | 133.2 | |||||||||||||||||
Total identifiable intangibles | $ | 918.8 | $ | (252.9 | ) | $ | 665.9 | $ | 873.4 | $ | (243.4 | ) | $ | 630 | |||||||||||
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles – Goodwill and Other Assets. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Fair Values of Derivative Instruments | ' | ||||||||||
The fair values of derivative instruments on the consolidated balance sheets as of September 30, 2014 and December 31, 2013 were: | |||||||||||
Fair Value | |||||||||||
(In millions) | Location | September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Assets | |||||||||||
Foreign exchange contracts | Other current assets | $ | 2.1 | $ | 2.1 | ||||||
Net investment hedges | Other current assets | 0.3 | 0.6 | ||||||||
Total assets | $ | 2.4 | $ | 2.7 | |||||||
Liabilities | |||||||||||
Foreign exchange contracts | Other current liabilities | $ | 1.4 | $ | 0.3 | ||||||
Effects of Derivative Financial Instruments on Statements of Comprehensive Income | ' | ||||||||||
The effects of derivative financial instruments on the statements of comprehensive income for the nine and three months ended September 30, 2014 and 2013 were: | |||||||||||
(In millions) | Gain Recognized in Income | ||||||||||
Nine Months Ended September 30, | |||||||||||
Type of hedge | Location | 2014 | 2013 | ||||||||
Cash flow | Cost of products sold | $ | 0.4 | $ | 2.3 | ||||||
Fair value | Other income, net | 1.6 | 1.3 | ||||||||
Total | $ | 2 | $ | 3.6 | |||||||
(In millions) | Gain Recognized in Income | ||||||||||
Three Months Ended September 30, | |||||||||||
Type of hedge | Location | 2014 | 2013 | ||||||||
Cash flow | Cost of products sold | $ | (0.2 | ) | $ | 0.9 | |||||
Fair value | Other income, net | 0.8 | 1.3 | ||||||||
Total | $ | 0.6 | $ | 2.2 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||
Fair Value | |||||||||
(In millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Derivative financial instruments (level 2) | $ | 2.4 | $ | 2.7 | |||||
Deferred compensation program assets (level 1) | 3.2 | 3.5 | |||||||
Total assets | $ | 5.6 | $ | 6.2 | |||||
Liabilities | |||||||||
Derivative financial instruments (level 2) | $ | 1.4 | $ | 0.3 |
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits | ' | ||||||||||||||||
The components of net periodic benefit cost (income) for pension and postretirement benefits for the nine and three months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 7.8 | $ | 8.6 | $ | — | $ | 0.3 | |||||||||
Interest cost | 24.7 | 22.5 | 0.5 | 1.3 | |||||||||||||
Expected return on plan assets | (31.7 | ) | (31.3 | ) | — | — | |||||||||||
Recognition of prior service costs (credits) | 0.1 | 0.1 | (24.2 | ) | (21.5 | ) | |||||||||||
Recognition of actuarial losses | 1.1 | 0.8 | 0.6 | 4.8 | |||||||||||||
Curtailment and settlement losses | — | 0.1 | — | 0.1 | |||||||||||||
Net periodic benefit cost (income) | $ | 2 | $ | 0.8 | $ | (23.1 | ) | $ (15.0) | |||||||||
Three Months Ended September 30, | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2.4 | $ | 2.3 | $ | — | $ | 0.1 | |||||||||
Interest cost | 8.5 | 7.5 | 0.1 | 0.3 | |||||||||||||
Expected return on plan assets | (10.6 | ) | (10.5 | ) | — | — | |||||||||||
Recognition of prior service costs (credits) | — | — | (6.5 | ) | (5.7 | ) | |||||||||||
Recognition of actuarial losses (gains) | 1.1 | 0.7 | — | (0.5 | ) | ||||||||||||
Curtailment and settlement losses | — | 0.1 | — | 0.1 | |||||||||||||
Net periodic benefit cost (income) | $ | 1.4 | $ | 0.1 | $ | (6.4 | ) | $ | (5.7 | ) |
Product_Warranties_Tables
Product Warranties (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Activity Related to Product Warranty Liability | ' | ||||||||
The following table summarizes activity related to our product warranty liability for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
(In millions) | 2014 | 2013 | |||||||
Reserve balance at January 1, | $ | 10.4 | $ | 9.5 | |||||
Provision for warranties issued | 17.1 | 13.5 | |||||||
Settlements made (in cash or in kind) | (16.4 | ) | (13.0 | ) | |||||
Reserve balance at September 30, | $ | 11.1 | $ | 10 |
Information_on_Business_Segmen1
Information on Business Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Net Sales and Operating Income by Segment | ' | ||||||||||||
Net sales and operating income for the nine months ended September 30, 2014 and 2013 by segment were as follows: | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
(In millions) | 2014 | 2013 | % Change | ||||||||||
vs. Prior Year | |||||||||||||
Net Sales | |||||||||||||
Cabinets | $ | 1,331.40 | $ | 1,186.30 | 12.2 | % | |||||||
Plumbing | 995.9 | 969.6 | 2.7 | ||||||||||
Doors | 304.5 | 274.1 | 11.1 | ||||||||||
Security & Storage | 441.5 | 417.9 | 5.6 | ||||||||||
Net sales | $ | 3,073.30 | $ | 2,847.90 | 7.9 | % | |||||||
Operating Income | |||||||||||||
Cabinets | $ | 102.5 | $ | 63.8 | 60.7 | % | |||||||
Plumbing | 202.6 | 176.2 | 15 | ||||||||||
Doors | 21.7 | 12 | 80.8 | ||||||||||
Security & Storage | 56.7 | 68.1 | (16.7 | ) | |||||||||
Less: Corporate expenses | (45.9 | ) | (56.2 | ) | 18.3 | ||||||||
Operating income | $ | 337.6 | $ | 263.9 | 27.9 | % | |||||||
Corporate expenses | |||||||||||||
General and administrative expense | $ | (50.7 | ) | $ | (58.2 | ) | |||||||
Defined benefit plan costs | 4.8 | 2 | |||||||||||
Total Corporate expenses | $ | (45.9 | ) | $ | (56.2 | ) | 18.3 | % | |||||
Net sales and operating income for the three months ended September 30, 2014 and 2013 by segment were as follows: | |||||||||||||
Three Months Ended September 30, | |||||||||||||
(In millions) | 2014 | 2013 | % Change | ||||||||||
vs. Prior Year | |||||||||||||
Net Sales | |||||||||||||
Cabinets | $ | 452.6 | $ | 448.6 | 0.9 | % | |||||||
Plumbing | 345.9 | 338.1 | 2.3 | ||||||||||
Doors | 114.4 | 100.9 | 13.4 | ||||||||||
Security & Storage | 184.8 | 157.4 | 17.4 | ||||||||||
Net sales | $ | 1,097.70 | $ | 1,045.00 | 5 | % | |||||||
Operating Income | |||||||||||||
Cabinets | $ | 36.5 | $ | 14.1 | 158.9 | % | |||||||
Plumbing | 75.8 | 65.9 | 15 | ||||||||||
Doors | 12.1 | 7.5 | 61.3 | ||||||||||
Security & Storage | 27.1 | 29.5 | (8.1 | ) | |||||||||
Less: Corporate expenses | (15.1 | ) | (19.4 | ) | 22.2 | ||||||||
Operating income | $ | 136.4 | $ | 97.6 | 39.8 | % | |||||||
Corporate expenses | |||||||||||||
General and administrative expense | $ | (15.9 | ) | $ | (21.9 | ) | |||||||
Defined benefit plan costs | 0.8 | 2.5 | |||||||||||
Total Corporate expenses | $ | (15.1 | ) | $ | (19.4 | ) | 22.2 | % |
Other_Expense_Income_Net_Table
Other Expense (Income), Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Components of Other Expense (Income), Net | ' | ||||||||||||||||
The components of other expense (income), net, were as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Asset impairment charge | $ | — | $ | 6.2 | $ | — | $ | — | |||||||||
Other | 0.1 | (0.6 | ) | (0.3 | ) | (0.5 | ) | ||||||||||
Total other expense (income), net | $ | 0.1 | $ | 5.6 | $ | (0.3 | ) | $ | (0.5 | ) |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Pre-tax Restructuring and Other Charges | ' | ||||||||||||
Pre-tax restructuring and other charges for the nine and three months ended September 30, 2014 and 2013 are shown below. | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
(In millions) | Restructuring | Other | Total | ||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 0.3 | $ | — | $ | 0.3 | |||||||
Plumbing | (1.2 | ) | (0.1 | ) | (1.3 | ) | |||||||
Security & Storage | 2.5 | 0.2 | 2.7 | ||||||||||
Corporate | 1.6 | — | 1.6 | ||||||||||
Total | $ | 3.2 | $ | 0.1 | $ | 3.3 | |||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 1.9 | $ | 0.1 | $ | 2 | |||||||
Three Months Ended September 30, 2014 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Plumbing | $ | (0.3 | ) | $ | 0.5 | $ | 0.2 | ||||||
Security & Storage | 0.4 | 0.1 | 0.5 | ||||||||||
Total | $ | 0.1 | $ | 0.6 | $ | 0.7 | |||||||
Three Months Ended September 30, 2013 | |||||||||||||
Restructuring | Other | Total | |||||||||||
Charges | Charges (a) | Charges | |||||||||||
Cabinets | $ | 1.4 | $ | 0.1 | $ | 1.5 | |||||||
(a) | “Other Charges,” which were recorded in cost of products sold or selling, general and administrative expenses, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under U.S. 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 or losses on the sale of previously closed facilities |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Computations of Earnings per Common Share | ' | ||||||||||||||||
The computations of earnings per common share (“EPS”) were as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income from continuing operations, net of tax | $ | 225.1 | $ | 168.1 | $ | 88.6 | $ | 64.1 | |||||||||
Less: Noncontrolling interests | 0.9 | 0.8 | 0.2 | 0.4 | |||||||||||||
Income from continuing operations for EPS | 224.2 | 167.3 | 88.4 | 63.7 | |||||||||||||
(Loss) income from discontinued operations | (111.2 | ) | (1.8 | ) | (109.5 | ) | 0.5 | ||||||||||
Net income (loss) attributable to Home & Security | $ | 113 | $ | 165.5 | $ | (21.1 | ) | $ | 64.2 | ||||||||
Earnings per common share | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | 1.38 | $ | 1.01 | $ | 0.56 | $ | 0.38 | |||||||||
Discontinued operations | (0.69 | ) | (0.01 | ) | (0.69 | ) | 0.01 | ||||||||||
Net income (loss) attributable to Home & Security common stockholders | $ | 0.69 | $ | 1 | $ | (0.13 | ) | $ | 0.39 | ||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | 1.34 | $ | 0.98 | $ | 0.54 | $ | 0.37 | |||||||||
Discontinued operations | (0.67 | ) | (0.01 | ) | (0.67 | ) | — | ||||||||||
Net income (loss) attributable to Home & Security common stockholders | $ | 0.67 | $ | 0.97 | $ | (0.13 | ) | $ | 0.37 | ||||||||
Basic average shares outstanding | 163 | 165.2 | 158.7 | 166 | |||||||||||||
Stock-based awards | 4.7 | 5.9 | 4.5 | 5.6 | |||||||||||||
Diluted average shares outstanding | 167.7 | 171.1 | 163.2 | 171.6 | |||||||||||||
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 0.5 | 0.8 | 0.6 | 0.7 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Components of and Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The components of and changes in accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gains | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2013 | $ | 53.3 | $ | 0.9 | $ | 41.2 | $ | 95.4 | |||||||||
Amounts classified into accumulated other comprehensive income | (7.4 | ) | 0.1 | 5 | (a) | (2.3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (1.4 | ) | (0.4 | ) | (14.0 | ) | (15.8 | ) | |||||||||
Net current period other comprehensive income | (8.8 | ) | (0.3 | ) | (9.0 | ) | (18.1 | ) | |||||||||
Balance at September 30, 2014 | $ | 44.5 | $ | 0.6 | $ | 32.2 | $ | 77.3 | |||||||||
(In millions) | Foreign | Derivative | Defined | Accumulated | |||||||||||||
Currency | Hedging | Benefit Plan | Other | ||||||||||||||
Adjustments | Gains | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
Balance at December 31, 2012 | $ | 63.5 | $ | 0.2 | $ | (33.1 | ) | $ | 30.6 | ||||||||
Amounts classified into accumulated other comprehensive income | (3.9 | ) | 2 | 33.7 | (a) | 31.8 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1.4 | ) | (9.4 | ) | (10.8 | ) | ||||||||||
Net current period other comprehensive income | (3.9 | ) | 0.6 | 24.3 | 21 | ||||||||||||
Balance at September 30, 2013 | $ | 59.6 | $ | 0.8 | $ | (8.8 | ) | $ | 51.6 | ||||||||
(a) | See Note 11, “Defined Benefit Plans,” for further information on the adjustments related to defined benefit plans. | ||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the nine and three months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
(In millions) | Amount Reclassified from | Affected Line Item in | |||||||||||||||
Accumulated Other Comprehensive Income | the Statement of | ||||||||||||||||
Nine Months Ended September 30, | Comprehensive Income | ||||||||||||||||
Details about Accumulated Other | |||||||||||||||||
Comprehensive Income Components | 2014 | 2013 | |||||||||||||||
Cumulative translation adjustments | $ | 1.4 | $ | — | Restructuring charges | ||||||||||||
Gains on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | 0.4 | $ | 2.6 | Cost of products sold | ||||||||||||
Commodity contracts | — | (0.3 | ) | Cost of products sold | |||||||||||||
0.4 | 2.3 | Total before tax | |||||||||||||||
— | (0.9 | ) | Tax expense | ||||||||||||||
$ | 0.4 | $ | 1.4 | Net of tax | |||||||||||||
Defined benefit plan items | |||||||||||||||||
Recognition of prior service cost | $ | 24.1 | $ | 21.4 | (a) | ||||||||||||
Recognition of actuarial losses | (1.7 | ) | (5.6 | ) | (a) | ||||||||||||
Curtailment and settlement losses | — | (0.2 | ) | (a) | |||||||||||||
22.4 | 15.6 | Total before tax | |||||||||||||||
(8.4 | ) | (6.2 | ) | Tax expense | |||||||||||||
$ | 14 | $ | 9.4 | Net of tax | |||||||||||||
Total reclassifications for the period | $ | 15.8 | $ | 10.8 | Net of tax | ||||||||||||
(In millions) | Amount Reclassified from | Affected Line Item in | |||||||||||||||
Accumulated Other Comprehensive Income | the Statement of | ||||||||||||||||
Three Months Ended September 30, | Comprehensive Income | ||||||||||||||||
Details about Accumulated Other | |||||||||||||||||
Comprehensive Income Components | 2014 | 2013 | |||||||||||||||
Cumulative translation adjustments | $ | 1.4 | $ | — | Restructuring charges | ||||||||||||
(Loss) gain on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | (0.2 | ) | $ | 1.1 | Cost of products sold | |||||||||||
Commodity contracts | — | (0.2 | ) | Cost of products sold | |||||||||||||
(0.2 | ) | 0.9 | Total before tax | ||||||||||||||
0.1 | (0.5 | ) | Tax expense | ||||||||||||||
$ | (0.1 | ) | $ | 0.4 | Net of tax | ||||||||||||
Defined benefit plan items | |||||||||||||||||
Recognition of prior service cost | $ | 6.5 | $ | 5.7 | (a) | ||||||||||||
Recognition of actuarial losses | (1.1 | ) | (0.2 | ) | (a) | ||||||||||||
Curtailment and settlement losses | — | (0.2 | ) | (a) | |||||||||||||
5.4 | 5.3 | Total before tax | |||||||||||||||
(2.0 | ) | (2.2 | ) | Tax expense | |||||||||||||
$ | 3.4 | $ | 3.1 | Net of tax | |||||||||||||
Total reclassifications for the period | $ | 4.7 | $ | 3.5 | Net of tax | ||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 11, “Defined Benefit Plans,” for additional information. | ||||||||||||||||
Discontinued_Operation_Additio
Discontinued Operation - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Proceeds from sale of business | $130 | ' | $130 |
Loss on sale of business, discontinued operations | ' | $111.80 | $111.80 |
Summary_of_Operating_Results_a
Summary of Operating Results and Summary of Major Classes of Assets and Liabilities Reflected as Discontinued Operations on Consolidated Comprehensive Income and Balance Sheet (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Net sales | $85.50 | $80.10 | $218.30 | $207.60 | ' |
(Loss) income from discontinued operations before income taxes | -83.3 | 1 | -85.6 | -2.1 | ' |
Income taxes | 26.2 | 0.5 | 25.6 | -0.3 | ' |
(Loss) income from discontinued operations, net tax | -109.5 | 0.5 | -111.2 | -1.8 | ' |
Accounts receivable, net | ' | ' | ' | ' | 31.7 |
Inventories | ' | ' | ' | ' | 14.7 |
Other current assets | ' | ' | ' | ' | 9.5 |
Total current assets | ' | ' | ' | ' | 55.9 |
Property, plant and equipment, net | ' | ' | ' | ' | 38.4 |
Goodwill | ' | ' | ' | ' | 86.1 |
Identifiable intangibles, net | ' | ' | ' | ' | 122.9 |
Other assets | ' | ' | ' | ' | 0.8 |
Total assets | ' | ' | ' | ' | 304.1 |
Accounts payable | ' | ' | ' | ' | 14 |
Other current liabilities | ' | ' | ' | ' | 27.5 |
Total current liabilities | ' | ' | ' | ' | 41.5 |
Other liabilities | ' | ' | ' | ' | 54.3 |
Total liabilities | ' | ' | ' | ' | $95.80 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 2 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jul. 31, 2014 | Sep. 30, 2014 |
WoodCrafters Home Products, LLC | WoodCrafters Home Products, LLC | WoodCrafters Home Products, LLC | WoodCrafters Home Products, LLC | SentrySafe | SentrySafe | |||||
Customer Relationships | Technology | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition purchase price | ' | ' | ' | ' | $302 | ' | ' | ' | $118.50 | ' |
Net sales | 1,097.70 | 1,045 | 3,073.30 | 2,847.90 | ' | 100 | ' | ' | ' | 25 |
Operating income (Loss) | 136.4 | 97.6 | 337.6 | 263.9 | ' | 12 | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | $75.90 | $9.60 | ' | ' |
Amortizable identifiable intangible assets, estimated useful life | ' | ' | ' | ' | ' | ' | '18 years | '10 years | ' | ' |
Final_Allocation_of_Purchase_P
Final Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | WoodCrafters Home Products, LLC | ||||
Business Acquisition [Line Items] | ' | ' | ' | ||
Accounts receivable | ' | ' | $41.40 | ||
Inventories | ' | ' | 25.7 | ||
Property, plant and equipment | ' | ' | 29.6 | ||
Goodwill | 1,455.60 | [1] | 1,433.80 | [1] | 143.4 |
Identifiable intangible assets | ' | ' | 89.4 | ||
Other assets | ' | ' | 7.3 | ||
Total assets | ' | ' | 336.8 | ||
Other liabilities and accruals | ' | ' | 34.8 | ||
Net assets acquired | ' | ' | $302 | ||
[1] | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors segment and $90.1 million in the Security & Storage segment). |
Proforma_Consolidated_Financia
Proforma Consolidated Financial Information (Detail) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Business Acquisition [Line Items] | ' |
Net sales | $2,955.30 |
Income from continuing operations | $176.90 |
Basic earnings per common share | $1.07 |
Diluted earnings per common share | $1.03 |
Supplemental_Information_on_Ba
Supplemental Information on Balance Sheets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories: | ' | ' |
Raw materials and supplies | $190.10 | $171.90 |
Work in process | 56.8 | 52.5 |
Finished products | 274 | 232.5 |
Total inventories | 520.9 | 456.9 |
Property, plant and equipment, gross | 1,511.90 | 1,463.10 |
Less: accumulated depreciation | 978.6 | 967.1 |
Property, plant and equipment, net | $533.30 | $496 |
Goodwill_and_Identifiable_Inta2
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
In Millions, unless otherwise specified | SentrySafe | Minimum | Maximum | ||||
Tradenames and Customer Relationship | Tradenames and Customer Relationship | ||||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ||
Goodwill | $1,455.60 | [1] | $1,433.80 | [1] | ' | ' | ' |
Goodwill increase due to acquisition | ' | ' | 21.8 | ' | ' | ||
Identifiable intangible assets, tradenames | 665.9 | 630 | ' | ' | ' | ||
Increase in gross amortizable identifiable intangible assets acquired | ' | ' | $45.40 | ' | ' | ||
Amortizable identifiable intangible assets, estimated useful life | ' | ' | ' | '5 years | '30 years | ||
[1] | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors segment and $90.1 million in the Security & Storage segment). |
Change_in_Net_Carrying_Amount_
Change in Net Carrying Amount of Goodwill by Segment (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | |
Goodwill [Line Items] | ' | |
Goodwill at December 31, 2013 | $1,433.80 | [1] |
Year-to-date translation adjustments | -0.9 | |
Acquisition-related adjustments | 22.7 | |
Goodwill at September 30, 2014 | 1,455.60 | [1] |
Cabinets | ' | |
Goodwill [Line Items] | ' | |
Goodwill at December 31, 2013 | 631.7 | [1] |
Year-to-date translation adjustments | -0.5 | |
Acquisition-related adjustments | 0.7 | |
Goodwill at September 30, 2014 | 631.9 | [1] |
Plumbing | ' | |
Goodwill [Line Items] | ' | |
Goodwill at December 31, 2013 | 569.7 | [1] |
Year-to-date translation adjustments | ' | |
Acquisition-related adjustments | ' | |
Goodwill at September 30, 2014 | 569.7 | [1] |
Doors | ' | |
Goodwill [Line Items] | ' | |
Goodwill at December 31, 2013 | 143 | [1] |
Year-to-date translation adjustments | ' | |
Acquisition-related adjustments | ' | |
Goodwill at September 30, 2014 | 143 | [1] |
Security and Storage | ' | |
Goodwill [Line Items] | ' | |
Goodwill at December 31, 2013 | 89.4 | [1] |
Year-to-date translation adjustments | -0.4 | |
Acquisition-related adjustments | 22 | |
Goodwill at September 30, 2014 | $111 | [1] |
[1] | Net of accumulated impairment losses of $489.6 million ($399.5 million in the Doors 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 $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Goodwill [Line Items] | ' |
Accumulated impairment losses | $489.60 |
Doors | ' |
Goodwill [Line Items] | ' |
Accumulated impairment losses | 399.5 |
Security and Storage | ' |
Goodwill [Line Items] | ' |
Accumulated impairment losses | $90.10 |
Gross_Carrying_Value_and_Accum
Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts, Total identifiable intangibles | $918.80 | $873.40 | ||
Accumulated Amortization, Total identifiable intangibles | -252.9 | -243.4 | ||
Net Book Value, Total identifiable intangibles | 665.9 | 630 | ||
Gross Carrying Amounts, Indefinite-lived tradenames | 547.2 | 538.8 | ||
Accumulated Amortization, Indefinite-lived tradenames | -42 | [1] | -42 | [1] |
Net Book Value, Indefinite-lived tradenames | 505.2 | 496.8 | ||
Gross Carrying Amounts, Finite Lived | 371.6 | 334.6 | ||
Accumulated Amortization, Finite Lived | -210.9 | -201.4 | ||
Net Book Value, Finite Lived | 160.7 | 133.2 | ||
Tradenames | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts, Finite Lived | 17 | 17.2 | ||
Accumulated Amortization, Finite Lived | -7.7 | -7.2 | ||
Net Book Value, Finite Lived | 9.3 | 10 | ||
Customer and contractual relationships | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts, Finite Lived | 296.4 | 260.2 | ||
Accumulated Amortization, Finite Lived | -163.1 | -156.5 | ||
Net Book Value, Finite Lived | 133.3 | 103.7 | ||
Patents/proprietary technology | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amounts, Finite Lived | 58.2 | 57.2 | ||
Accumulated Amortization, Finite Lived | -40.1 | -37.7 | ||
Net Book Value, Finite Lived | $18.10 | $19.50 | ||
[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 | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Asset Impairment Charges [Line Items] | ' | ' | ' | ' |
Asset impairment charge | $21.20 | $6.20 | $0 | $21.20 |
Market recovery projection period | ' | ' | '3 years | ' |
External_Debt_and_Financing_Ar1
External Debt and Financing Arrangements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
JPMorgan Chase & Co. | JPMorgan Chase Bank, N.A., a subsidiary of JPM | JPMorgan Investment Management, Inc., another subsidiary of JPM | LIBOR | LIBOR | Prior Credit Agreement [Member] | Amended Credit Agreement | Revolving Credit Facility | Revolving Credit Facility | Term Loan Facilities | Term Loan Facilities | ||||||
Minimum | Maximum | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | $1,500 | $975 | ' | $525 | ' |
Revolving credit facility, extended expiration date | ' | ' | '2018-07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, extended expiration date | ' | ' | '2018-07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 680 | 680 | 350 | 350 |
Interest rate over LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 2.00% | ' | ' | ' | ' | ' | ' |
Notes payable to banks | 3.5 | ' | 3.5 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 15.7 | ' | 15.7 | ' | 22.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rates on borrowings | 12.20% | 12.50% | 8.20% | 12.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt under credit facilities | 680 | ' | 680 | ' | 350 | ' | 56.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash balances | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension assets | ' | ' | ' | ' | ' | ' | ' | $24.40 | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative [Line Items] | ' | ' | ' | ' |
Net settlement asset | ' | ' | $1 | ' |
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings | 0.8 | ' | 0.8 | ' |
Foreign exchange contracts | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Notional amount of foreign currency derivative hedges | 274.6 | ' | 274.6 | ' |
Cash flow hedge | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Net (Losses) Gains Recognized in OCI | $2.80 | $1 | ($0.10) | $3.30 |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instruments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | $2.40 | $2.70 |
Net investment | Other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 0.3 | 0.6 |
Foreign exchange contracts | Other current assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 2.1 | 2.1 |
Foreign exchange contracts | Other current liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities, fair value | $1.40 | $0.30 |
Effects_of_Derivative_Financia
Effects of Derivative Financial Instruments on Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain Recognized in Income | $0.60 | $2.20 | $2 | $3.60 |
Cash flow hedge | Cost of products sold | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain Recognized in Income | -0.2 | 0.9 | 0.4 | 2.3 |
Fair value hedge | Other income, net | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain Recognized in Income | $0.80 | $1.30 | $1.60 | $1.30 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | $5.60 | $6.20 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative financial instruments (level 2) | 2.4 | 2.7 |
Derivative financial instruments (level 2) | 1.4 | 0.3 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Deferred compensation program assets (level 1) | $3.20 | $3.50 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, net of current portion | $680 | $350 |
Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, net of current portion | $680 | $350 |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Recognition of actuarial losses (gains) | ' | ' | ' | $1.70 | $5.60 |
Pension Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Service cost | 2.4 | ' | 2.3 | 7.8 | 8.6 |
Interest cost | 8.5 | ' | 7.5 | 24.7 | 22.5 |
Expected return on plan assets | -10.6 | ' | -10.5 | -31.7 | -31.3 |
Recognition of prior service costs (credits) | ' | ' | ' | 0.1 | 0.1 |
Recognition of actuarial losses (gains) | 1.1 | ' | 0.7 | 1.1 | 0.8 |
Curtailment and settlement losses | ' | ' | 0.1 | ' | 0.1 |
Net periodic benefit cost (income) | 1.4 | ' | 0.1 | 2 | 0.8 |
Postretirement Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Service cost | ' | ' | 0.1 | ' | 0.3 |
Interest cost | 0.1 | ' | 0.3 | 0.5 | 1.3 |
Recognition of prior service costs (credits) | -6.5 | -3.5 | -5.7 | -24.2 | -21.5 |
Recognition of actuarial losses (gains) | ' | 0.6 | -0.5 | 0.6 | 4.8 |
Curtailment and settlement losses | ' | ' | 0.1 | ' | 0.1 |
Net periodic benefit cost (income) | ($6.40) | ' | ($5.70) | ($23.10) | ($15) |
Defined_Benefit_Plans_Addition
Defined Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Pension plan contributions | $2 | ' | ' | ' | ' |
Expected pension plan contributions in remainder of the year | 0 | ' | ' | 0 | ' |
Recognition of actuarial (losses) gains | ' | ' | ' | -1.7 | -5.6 |
Postretirement Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Reduction in accrued retiree benefit plans | ' | -15.3 | ' | ' | -34.8 |
Recognition of actuarial (losses) gains | ' | -0.6 | 0.5 | -0.6 | -4.8 |
Recognition of prior service credits | ($6.50) | ($3.50) | ($5.70) | ($24.20) | ($21.50) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective income tax rate | 33.60% | 33.20% | 31.80% | 33.50% |
Reasonably possible decrease in unrecognized tax benefits, minimum | $2 | ' | $2 | ' |
Reasonably possible decrease in unrecognized tax benefits, maximum | $6 | ' | $6 | ' |
Activity_Related_to_Product_Wa
Activity Related to Product Warranty Liability (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Product Warranty Liability [Line Items] | ' | ' |
Reserve balance at January 1, | $10.40 | $9.50 |
Provision for warranties issued | 17.1 | 13.5 |
Settlements made (in cash or in kind) | -16.4 | -13 |
Reserve balance at September 30, | $11.10 | $10 |
Information_on_Business_Segmen2
Information on Business Segments - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Cash received from sale of business | $130 | $130 |
Net_Sales_and_Operating_Income
Net Sales and Operating Income by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | $1,097.70 | $1,045 | $3,073.30 | $2,847.90 |
Operating income (Loss) | 136.4 | 97.6 | 337.6 | 263.9 |
Net Sales, Percentage Change vs. Prior Year | 5.00% | ' | 7.90% | ' |
Operating Income (Loss), Percentage Change vs. Prior Year | 39.80% | ' | 27.90% | ' |
Operating Segments | Cabinets | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 452.6 | 448.6 | 1,331.40 | 1,186.30 |
Operating income (Loss) | 36.5 | 14.1 | 102.5 | 63.8 |
Net Sales, Percentage Change vs. Prior Year | 0.90% | ' | 12.20% | ' |
Operating Income (Loss), Percentage Change vs. Prior Year | 158.90% | ' | 60.70% | ' |
Operating Segments | Plumbing | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 345.9 | 338.1 | 995.9 | 969.6 |
Operating income (Loss) | 75.8 | 65.9 | 202.6 | 176.2 |
Net Sales, Percentage Change vs. Prior Year | 2.30% | ' | 2.70% | ' |
Operating Income (Loss), Percentage Change vs. Prior Year | 15.00% | ' | 15.00% | ' |
Operating Segments | Doors | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 114.4 | 100.9 | 304.5 | 274.1 |
Operating income (Loss) | 12.1 | 7.5 | 21.7 | 12 |
Net Sales, Percentage Change vs. Prior Year | 13.40% | ' | 11.10% | ' |
Operating Income (Loss), Percentage Change vs. Prior Year | 61.30% | ' | 80.80% | ' |
Operating Segments | Security and Storage | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 184.8 | 157.4 | 441.5 | 417.9 |
Operating income (Loss) | 27.1 | 29.5 | 56.7 | 68.1 |
Net Sales, Percentage Change vs. Prior Year | 17.40% | ' | 5.60% | ' |
Operating Income (Loss), Percentage Change vs. Prior Year | -8.10% | ' | -16.70% | ' |
Corporate | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Operating income (Loss) | -15.1 | -19.4 | -45.9 | -56.2 |
General and administrative expense | -15.9 | -21.9 | -50.7 | -58.2 |
Defined benefit plan costs | 0.8 | 2.5 | 4.8 | 2 |
Corporate expenses | ($15.10) | ($19.40) | ($45.90) | ($56.20) |
Operating Income (Loss), Percentage Change vs. Prior Year | 22.20% | ' | 18.30% | ' |
Corporate expenses, Percentage Change vs. Prior Year | 22.20% | ' | 18.30% | ' |
Components_of_Other_Expense_In
Components of Other Expense (Income), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Asset impairment charge | ' | ' | ' | $6.20 |
Other | -0.3 | -0.5 | 0.1 | -0.6 |
Total other expense (income), net | ($0.30) | ($0.50) | $0.10 | $5.60 |
Other_Expense_Income_Net_Addit
Other Expense (Income), Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Impairment charge | $21,200,000 | $6,200,000 | $0 | $21,200,000 |
Carrying value of the investment | ' | $0 | ' | ' |
Pretax_Restructuring_and_Other
Pre-tax Restructuring and Other Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | $0.10 | $1.40 | $3.20 | $1.90 | ||||
Other Charges | 0.6 | [1] | ' | 0.1 | [1] | ' | ||
Total Charges | 0.7 | ' | 3.3 | ' | ||||
Operating Segments | Cabinets | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | ' | 1.4 | 0.3 | 1.9 | ||||
Other Charges | ' | 0.1 | [1] | ' | 0.1 | [1] | ||
Total Charges | ' | 1.5 | 0.3 | 2 | ||||
Operating Segments | Plumbing | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | -0.3 | ' | -1.2 | ' | ||||
Other Charges | 0.5 | [1] | ' | -0.1 | [1] | ' | ||
Total Charges | 0.2 | ' | -1.3 | ' | ||||
Operating Segments | Security and Storage | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | 0.4 | ' | 2.5 | ' | ||||
Other Charges | 0.1 | [1] | ' | 0.2 | [1] | ' | ||
Total Charges | 0.5 | ' | 2.7 | ' | ||||
Corporate | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | ' | ' | 1.6 | ' | ||||
Total Charges | ' | ' | $1.60 | ' | ||||
[1] | "Other Charges," which were recorded in cost of products sold or selling, general and administrative expenses, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under U.S. 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 or losses on the sale of previously closed facilities. |
Computations_of_Earnings_Loss_
Computations of Earnings Loss Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' |
Income from continuing operations, net of tax | $88.60 | $64.10 | $225.10 | $168.10 |
Less: Noncontrolling interests | 0.2 | 0.4 | 0.9 | 0.8 |
Income from continuing operations for EPS | 88.4 | 63.7 | 224.2 | 167.3 |
(Loss) income from discontinued operations | -109.5 | 0.5 | -111.2 | -1.8 |
Net income (loss) attributable to Home & Security | ($21.10) | $64.20 | $113 | $165.50 |
Basic | ' | ' | ' | ' |
Continuing operations | $0.56 | $0.38 | $1.38 | $1.01 |
Discontinued operations | ($0.69) | $0.01 | ($0.69) | ($0.01) |
Net income (loss) attributable to Home & Security common stockholders | ($0.13) | $0.39 | $0.69 | $1 |
Diluted | ' | ' | ' | ' |
Continuing operations | $0.54 | $0.37 | $1.34 | $0.98 |
Discontinued operations | ($0.67) | ' | ($0.67) | ($0.01) |
Net income (loss) attributable to Home & Security common stockholders | ($0.13) | $0.37 | $0.67 | $0.97 |
Basic average shares outstanding | 158.7 | 166 | 163 | 165.2 |
Stock-based awards | 4.5 | 5.6 | 4.7 | 5.9 |
Diluted average shares outstanding | 163.2 | 171.6 | 167.7 | 171.1 |
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 0.6 | 0.7 | 0.5 | 0.8 |
Components_of_and_Changes_in_A
Components of and Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | $95.40 | $30.60 | ||
Amounts classified into accumulated other comprehensive income | -2.3 | 31.8 | ||
Amounts reclassified from accumulated other comprehensive income | -15.8 | -10.8 | ||
Net current period other comprehensive income | -18.1 | 21 | ||
Ending Balance | 77.3 | 51.6 | ||
Foreign Currency Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | 53.3 | 63.5 | ||
Amounts classified into accumulated other comprehensive income | -7.4 | -3.9 | ||
Amounts reclassified from accumulated other comprehensive income | -1.4 | ' | ||
Net current period other comprehensive income | -8.8 | -3.9 | ||
Ending Balance | 44.5 | 59.6 | ||
Derivative Hedging Gain | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | 0.9 | 0.2 | ||
Amounts classified into accumulated other comprehensive income | 0.1 | 2 | ||
Amounts reclassified from accumulated other comprehensive income | -0.4 | -1.4 | ||
Net current period other comprehensive income | -0.3 | 0.6 | ||
Ending Balance | 0.6 | 0.8 | ||
Defined Benefit Plan Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning Balance | 41.2 | -33.1 | ||
Amounts classified into accumulated other comprehensive income | 5 | [1] | 33.7 | [1] |
Amounts reclassified from accumulated other comprehensive income | -14 | -9.4 | ||
Net current period other comprehensive income | -9 | 24.3 | ||
Ending Balance | $32.20 | ($8.80) | ||
[1] | See Note 11, "Defined Benefit Plans," for further information on the adjustments related to defined benefit plans. |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | ($0.10) | ($1.40) | ($3.20) | ($1.90) | ||||
Cost of products sold | -719.4 | -686.1 | -2,023.50 | -1,853.60 | ||||
Income from continuing operations before income taxes | 133.5 | 96 | 330.3 | 252.8 | ||||
Tax (expense) benefit | -44.9 | -31.9 | -105.2 | -84.7 | ||||
Net income (loss) | -20.9 | 64.6 | 113.9 | 166.3 | ||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net income (loss) | 4.7 | 3.5 | 15.8 | 10.8 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Adjustments | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Restructuring charges | 1.4 | ' | 1.4 | ' | ||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Income from continuing operations before income taxes | -0.2 | 0.9 | 0.4 | 2.3 | ||||
Tax (expense) benefit | 0.1 | -0.5 | ' | -0.9 | ||||
Net income (loss) | -0.1 | 0.4 | 0.4 | 1.4 | ||||
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 | -0.2 | 1.1 | 0.4 | 2.6 | ||||
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 | ' | -0.2 | ' | -0.3 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plan Adjustments | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Recognition of prior service cost | 6.5 | [1] | 5.7 | [1] | 24.1 | [1] | 21.4 | [1] |
Recognition of actuarial losses | -1.1 | [1] | -0.2 | [1] | -1.7 | [1] | -5.6 | [1] |
Curtailment and settlement losses | ' | -0.2 | [1] | ' | -0.2 | [1] | ||
Income from continuing operations before income taxes | 5.4 | 5.3 | 22.4 | 15.6 | ||||
Tax (expense) benefit | -2 | -2.2 | -8.4 | -6.2 | ||||
Net income (loss) | $3.40 | $3.10 | $14 | $9.40 | ||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 11, "Defined Benefit Plans," for additional information. |