Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-5794 |
Entity Registrant Name | Masco Corporation |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 38-1794485 |
Entity Address, Address Line One | 17450 College Parkway, |
Entity Address, City or Town | Livonia, |
Entity Address, State or Province | MI |
Entity Address, Postal Zip Code | 48152 |
City Area Code | 313 |
Local Phone Number | 274-7400 |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | MAS |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 247,162,958 |
Entity Central Index Key | 0000062996 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash investments | $ 769 | $ 1,326 |
Receivables | 1,352 | 1,138 |
Prepaid expenses and other | 117 | 149 |
Inventories: | ||
Finished goods | 610 | 552 |
Raw material | 311 | 242 |
Work in process | 100 | 82 |
Total inventories | 1,021 | 876 |
Total current assets | 3,259 | 3,489 |
Property and equipment, net | 896 | 908 |
Operating lease right-of-use assets | 169 | 166 |
Goodwill | 592 | 563 |
Other intangible assets, net | 372 | 357 |
Other assets | 135 | 294 |
Total assets | 5,423 | 5,777 |
Current Liabilities: | ||
Accounts payable | 1,021 | 893 |
Notes payable | 10 | 3 |
Accrued liabilities | 747 | 1,038 |
Total current liabilities | 1,778 | 1,934 |
Long-term debt | 2,950 | 2,792 |
Noncurrent operating lease liabilities | 152 | 149 |
Other liabilities | 458 | 481 |
Total liabilities | 5,338 | 5,356 |
Commitments and contingencies (Note P) | ||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 25 | 0 |
Masco Corporation's shareholders' equity: | ||
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2021 – 246,500,000; 2020 – 258,200,000 | 247 | 258 |
Preferred shares authorized: 1,000,000; Issued and outstanding: 2021 and 2020 – None | 0 | 0 |
Paid-in capital | 0 | 0 |
Retained (deficit) earnings | (640) | 79 |
Accumulated other comprehensive income (loss) | 239 | (142) |
Total Masco Corporation's shareholders' (deficit) equity | (154) | 195 |
Noncontrolling interest | 214 | 226 |
Total equity | 60 | 421 |
Total liabilities and equity | $ 5,423 | $ 5,777 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common share, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 1,400,000,000 | 1,400,000,000 |
Common shares, shares issued (in shares) | 246,500,000 | 258,200,000 |
Common shares, shares outstanding (in shares) | 246,500,000 | 258,200,000 |
Preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,179 | $ 1,764 | $ 4,149 | $ 3,345 |
Cost of sales | 1,388 | 1,136 | 2,658 | 2,170 |
Gross profit | 791 | 628 | 1,491 | 1,175 |
Selling, general and administrative expenses | 354 | 289 | 689 | 611 |
Operating profit | 437 | 339 | 802 | 564 |
Other income (expense), net: | ||||
Interest expense | (25) | (35) | (227) | (70) |
Other, net | (415) | (2) | (421) | (18) |
Total other income (expense), net | (440) | (37) | (648) | (88) |
(Loss) income from continuing operations before income taxes | (3) | 302 | 154 | 476 |
Income tax expense | 12 | 82 | 55 | 115 |
(Loss) income from continuing operations | (15) | 220 | 99 | 361 |
Income from discontinued operations, net | 0 | 14 | 0 | 411 |
Net (loss) income | (15) | 234 | 99 | 772 |
Less: Net income attributable to noncontrolling interest | 21 | 10 | 41 | 18 |
Net (loss) income attributable to Masco Corporation | $ (36) | $ 224 | $ 58 | $ 754 |
Basic: | ||||
Income from continuing operations (in dollars per share) | $ (0.14) | $ 0.80 | $ 0.21 | $ 1.27 |
(Loss) income from discontinued operations, net (in dollars per share) | 0 | 0.05 | 0 | 1.53 |
Net income (in dollars per share) | (0.14) | 0.85 | 0.21 | 2.80 |
Diluted: | ||||
Income from continuing operations (in dollars per share) | (0.14) | 0.80 | 0.20 | 1.27 |
(Loss) income from discontinued operations, net (in dollars per share) | 0 | 0.05 | 0 | 1.53 |
Net income (in dollars per share) | $ (0.14) | $ 0.85 | $ 0.20 | $ 2.80 |
Amounts attributable to Masco Corporation: | ||||
(Loss) income from continuing operations | $ (36) | $ 210 | $ 58 | $ 343 |
Income from discontinued operations, net | $ 0 | $ 14 | $ 0 | $ 411 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (15) | $ 234 | $ 99 | $ 772 |
Less: Net income attributable to noncontrolling interest | 21 | 10 | 41 | 18 |
Net (loss) income attributable to Masco Corporation | (36) | 224 | 58 | 754 |
Other comprehensive income (loss), net of tax (Note L): | ||||
Cumulative translation adjustment | 37 | 12 | 1 | (17) |
Interest rate swaps | 0 | 1 | 7 | 1 |
Pension and other post-retirement benefits | 358 | 5 | 363 | 10 |
Other comprehensive income (loss), net of tax | 395 | 18 | 371 | (6) |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | 2 | 3 | (10) | (1) |
Other comprehensive income (loss) attributable to Masco Corporation | 393 | 15 | 381 | (5) |
Total comprehensive income | 380 | 252 | 470 | 766 |
Less: Total comprehensive income attributable to noncontrolling interest | 23 | 13 | 31 | 17 |
Total comprehensive income attributable to Masco Corporation | $ 357 | $ 239 | $ 439 | $ 749 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: | ||
Cash provided by operations | $ 610 | $ 283 |
Increase in receivables | (238) | (342) |
Increase in inventories | (147) | (12) |
Increase in accounts payable and accrued liabilities, net | 14 | 361 |
Net cash from operating activities | 239 | 290 |
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: | ||
Retirement of notes | (1,326) | 0 |
Purchase of Company common stock | (750) | (602) |
Cash dividends paid | (96) | (73) |
Dividends paid to noncontrolling interest | (43) | (23) |
Issuance of notes, net of issuance costs | 1,481 | 0 |
Debt extinguishment costs | (160) | 0 |
Proceeds from the exercise of stock options | 1 | 21 |
Employee withholding taxes paid on stock-based compensation | (14) | (22) |
(Decrease) increase in debt, net | (2) | 5 |
Net cash for financing activities | (909) | (694) |
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: | ||
Capital expenditures | (53) | (45) |
Acquisition of businesses, net of cash acquired | (1) | (24) |
Proceeds from disposition of: | ||
Businesses, net of cash disposed | 5 | 865 |
Other financial investments | 168 | 1 |
Other, net | 3 | 2 |
Net cash from investing activities | 122 | 799 |
Effect of exchange rate changes on cash and cash investments | (9) | (3) |
CASH AND CASH INVESTMENTS: | ||
(Decrease) increase for the period | (557) | 392 |
At January 1 | 1,326 | 697 |
At June 30 | $ 769 | $ 1,089 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares ($1 par value) | Common Shares ($1 par value)Cumulative Effect, Period of Adoption, Adjustment | Paid-In Capital | Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Retained (Deficit) Earnings | Retained (Deficit) EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) IncomeCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest | Noncontrolling InterestCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 31, 2019 | $ (56) | $ (57) | $ 276 | $ 276 | $ 0 | $ 0 | $ (332) | $ (333) | $ (179) | $ (179) | $ 179 | $ 179 |
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | (1) | (1) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 514 | 530 | (20) | 4 | ||||||||
Shares issued | 11 | 1 | 10 | |||||||||
Shares retired: | ||||||||||||
Repurchased | (602) | (14) | (28) | (560) | ||||||||
Surrendered (non-cash) | (13) | (13) | ||||||||||
Cash dividends declared | (36) | (36) | ||||||||||
Stock-based compensation | 18 | 18 | ||||||||||
Balance at Mar. 31, 2020 | (165) | 263 | 0 | (412) | (199) | 183 | ||||||
Balance at Dec. 31, 2019 | (56) | (57) | 276 | $ 276 | 0 | $ 0 | (332) | (333) | (179) | $ (179) | 179 | $ 179 |
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ (1) | $ (1) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 766 | |||||||||||
Shares retired: | ||||||||||||
Noncontrolling Interest, Change in Redemption Value | 0 | |||||||||||
Balance at Jun. 30, 2020 | 37 | 260 | 11 | (223) | (184) | 173 | ||||||
Balance at Mar. 31, 2020 | (165) | 263 | 0 | (412) | (199) | 183 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 252 | 224 | 15 | 13 | ||||||||
Shares retired: | ||||||||||||
Repurchased | 0 | (3) | 3 | |||||||||
Cash dividends declared | (35) | (35) | ||||||||||
Noncontrolling Interest, Change in Redemption Value | 0 | |||||||||||
Stock-based compensation | 8 | 8 | ||||||||||
Balance at Jun. 30, 2020 | 37 | 260 | 11 | (223) | (184) | 173 | ||||||
Shares retired: | ||||||||||||
Dividends paid to noncontrolling interest | $ (23) | (23) | ||||||||||
Common share, par value (in dollars per share) | $ 1 | |||||||||||
Common share, par value (in dollars per share) | $ 1 | |||||||||||
Balance at Dec. 31, 2020 | $ 421 | 258 | 0 | 79 | (142) | 226 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 90 | 94 | (12) | 8 | ||||||||
Shares issued | 0 | 1 | (1) | |||||||||
Shares retired: | ||||||||||||
Repurchased | (303) | (6) | (27) | (270) | ||||||||
Surrendered (non-cash) | (13) | (13) | ||||||||||
Noncontrolling Interest, Change in Redemption Value | (6) | (6) | ||||||||||
Stock-based compensation | 28 | 28 | ||||||||||
Balance at Mar. 31, 2021 | 217 | 253 | 0 | (116) | (154) | 234 | ||||||
Balance at Dec. 31, 2020 | 421 | 258 | 0 | 79 | (142) | 226 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 470 | |||||||||||
Shares retired: | ||||||||||||
Noncontrolling Interest, Change in Redemption Value | (6) | |||||||||||
Balance at Jun. 30, 2021 | 60 | 247 | 0 | (640) | 239 | 214 | ||||||
Balance at Mar. 31, 2021 | 217 | 253 | 0 | (116) | (154) | 234 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Total comprehensive income | 380 | (36) | 393 | 23 | ||||||||
Shares retired: | ||||||||||||
Repurchased | (447) | (6) | (12) | (429) | ||||||||
Cash dividends declared | (59) | (59) | ||||||||||
Noncontrolling Interest, Change in Redemption Value | 0 | |||||||||||
Stock-based compensation | 12 | 12 | ||||||||||
Balance at Jun. 30, 2021 | 60 | $ 247 | $ 0 | $ (640) | $ 239 | 214 | ||||||
Shares retired: | ||||||||||||
Dividends paid to noncontrolling interest | $ (43) | $ (43) | ||||||||||
Common share, par value (in dollars per share) | $ 1 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to fairly state our financial position at June 30, 2021, our results of operations and comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, cash flows for the six months ended June 30, 2021 and 2020 and changes in shareholders' equity for the three and six months ended June 30, 2021 and 2020. The condensed consolidated balance sheet at December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted ("GAAP") in the United States of America. Recently Adopted Accounting Pronouncements. In January 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-01, "Investments—Equity Securities (Topic 321)," "Investments—Equity Method and Joint Ventures (Topic 323)," and "Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815," which clarifies that an entity should consider observable transactions when either applying or discontinuing the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321. ASU 2020-01 clarifies that for certain forward contracts or purchased options to acquire investments, an entity should not consider whether, upon settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option. We adopted ASU 2020-01 prospectively beginning on January 1, 2021. The adoption of the standard did not have a material effect on our financial position or results of operations. Recently Issued Accounting Pronouncements. In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. ASU 2020-06 is effective for us for annual periods beginning January 1, 2022. We are currently reviewing the provisions of this pronouncement and the impact, if any, the adoption of this guidance has on our financial position or results of operations. The effect will largely depend on the composition and terms of the financial instruments at the time of adoption. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS In the first quarter of 2021, we acquired a 75.1% equity interest in Easy Sanitary Solutions B.V. ("ESS"), for approximately €47 million ($58 million), including $52 million of cash and $6 million of debt that will be paid out over two years less any pending or settled indemnity matters. These amounts are subject to working capital and other adjustments. The cash payment was made to a third-party notary on December 29, 2020 for the acquisition of this equity interest in advance of the transaction closing on January 4, 2021. ESS is a manufacturer of shower channel drains and offers a wide range of products for barrier-free showering and bathroom wall niches. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $32 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 10 years. We also recognized $35 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. The remaining 24.9% equity interest in ESS is subject to a call and put option that is exercisable by us or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option is the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and were recorded as temporary equity in the condensed consolidated balance sheet at June 30, 2021. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained (deficit) earnings. B. ACQUISITIONS (Concluded) In the fourth quarter of 2020, we acquired substantially all of the net assets of Kraus USA Inc. ("Kraus"), a designer and distributor of sinks, faucets and accessories for the kitchen and bathroom, for approximately $103 million and an additional cash payment of up to $50 million, contingent upon the achievement of certain financial performance metrics for the year ending December 31, 2022. As of the closing date of the acquisition, the contingent consideration was assigned a fair value of approximately $8 million. This business expands our product offerings to our customers and our online presence under the Kraus brand. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $25 million of indefinite-lived intangible assets, which is related to trademarks, and $49 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 10 years. We also recognized $20 million of goodwill, which is generally tax deductible, and is related primarily to the expected synergies from combining the operations into our business. During the first quarter of 2021, we revised the allocation of the purchase price to certain identifiable assets and liabilities based on analysis of information as of the acquisition date, which resulted in a $1 million decrease to goodwill. The working capital adjustments were finalized with the seller in the second quarter of 2021, resulting in no significant changes. In the fourth quarter of 2020, we acquired substantially all of the net assets of Work Tools International Inc. and Elder & Jenks, LLC (collectively, "Work Tools") for approximately $53 million, including $48 million of cash and $5 million of debt that will be paid out in 18 months less any pending or settled indemnity matters. Work Tools will expand our product offering to our customers as it is a leading manufacturer of high-quality precision painting tools and accessories including brushes, rollers and mini rollers for DIY and professionals. This business is included in our Decorative Architectural Products segment. In connection with this acquisition, we recognized $7 million of indefinite-lived intangible assets, which is related to trademarks, and $27 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 12 years. We also recognized $7 million of goodwill, which is generally tax deductible, and is related primarily to the expected synergies from combining the operations into our business. The working capital adjustments were finalized with the seller in the first quarter of 2021, resulting in no significant changes. In the first quarter of 2020, we acquired all of the share capital of SmarTap A.Y Ltd. ("SmarTap") for approximately $24 million in cash. SmarTap is a developer of a smart bathing system that monitors and controls the temperature and flow of water. This acquisition provides an adaptable solution for a wide range of products as it is compatible with showerheads, hand showers, spouts and shower jets. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $10 million of definite-lived intangible assets, primarily related to technology, which is being amortized on a straight-line basis over a weighted average amortization period of 5 years. We also recognized $14 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES On May 31, 2021, we completed the divestiture of our Hüppe GmbH ("Hüppe") business, a manufacturer of shower enclosures and shower trays. In connection with the divestiture, we recognized a loss of $18 million for the three and six months ended June 30, 2021, which is included in other, net in our condensed consolidated statements of operations. This loss resulted primarily from the recognition of $23 million of currency translation losses that were previously included within accumulated other comprehensive income (loss). The sale of Hüppe does not represent a strategic shift that will have a major effect on our operations and financial results and therefore was not presented as discontinued operations. Prior to the divestiture, the results of the business were included in our Plumbing Products segment. On November 6, 2019, we completed the divestiture of our Milgard Windows and Doors business ("Milgard"), a manufacturer and distributor of windows and doors for proceeds of approximately $720 million, net of cash disposed. During the three and six months ended June 30, 2020, a $17 million pre-tax post-closing adjustment related to the finalization of working capital items was recorded to income from discontinued operations, net in the condensed consolidated statements of operations, as a gain on the divestiture of Milgard. Of the $17 million, we received $12 million in cash as of June 30, 2020, which is presented in investing activities on the condensed consolidated statement of cash flow as proceeds from disposition of businesses, net of cash disposed. The remaining $5 million was received in five monthly installments throughout the remainder of 2020. On November 14, 2019, we entered into a definitive agreement to sell Masco Cabinetry LLC ("Cabinetry"), a manufacturer of cabinetry products. We completed the divestiture of Cabinetry on February 18, 2020 for proceeds of approximately $989 million, including $853 million, net of cash disposed. The remaining $136 million was accounted for as preferred stock issued by a holding company of the buyer; refer to Note G for additional information. In connection with the sale, we recognized a gain on the divestiture of $585 million for the six months ended June 30, 2020, which is included in income from discontinued operations, net in the condensed consolidated statement of operations. As the sale of Milgard and Cabinetry represented a strategic shift having a major effect on our operations and financial results, these businesses were presented in discontinued operations separate from continuing operations for the three and six months ended June 30, 2020, as applicable. The major classes of line items constituting income from discontinued operations, net, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales $ — $ — $ — $ 101 Cost of sales — — — 78 Gross profit — — — 23 Selling, general and administrative expenses (A) — (1) — 31 Income (loss) from discontinued operations — 1 — (8) Gain on disposal of discontinued operations — 17 — 602 Income before income tax — 18 — 594 Income tax expense — (4) — (183) Income from discontinued operations, net $ — $ 14 $ — $ 411 (A) In the second quarter of 2020, certain remaining liabilities were adjusted to reflect current activity related to sold businesses. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenues [Abstract] | |
Revenue | REVENUE Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions: Three Months Ended June 30, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 867 $ 850 $ 1,717 International, principally Europe 462 — 462 Total $ 1,329 $ 850 $ 2,179 Six Months Ended June 30, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,675 $ 1,571 $ 3,246 International, principally Europe 903 — 903 Total $ 2,578 $ 1,571 $ 4,149 Three Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 584 $ 896 $ 1,480 International, principally Europe 284 — 284 Total $ 868 $ 896 $ 1,764 Six Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,216 $ 1,522 $ 2,738 International, principally Europe 607 — 607 Total $ 1,823 $ 1,522 $ 3,345 Our contract asset balance was $1 million and $2 million at June 30, 2021 and December 31, 2020, respectively. Our contract liability balance was $24 million and $62 million at June 30, 2021 and December 31, 2020, respectively. We reversed $1 million and $3 million of revenue for the three months ended June 30, 2021 and 2020, respectively, related to performance obligations settled in previous quarters of the same year. We recognized $3 million and $4 million of revenue for the three and six months ended June 30, 2021, respectively, and $2 million and $5 million of revenue for the three and six months ended June 30, 2020, respectively, related to performance obligations settled in previous years. D. REVENUE (Concluded) Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2020 Balance at January 1 $ 7 $ 5 Provision for expected credit losses during the period 1 3 Write-offs charged against the allowance (1) (2) Recoveries of amounts previously written off 1 1 Other (A) (1) — Balance at end of period $ 7 $ 7 (A) As a result of Hüppe being divested in May 2021, $1 million for the six months ended June 30, 2021 was removed from allowance for credit losses. |
Depreciation and Amortization
Depreciation and Amortization | 6 Months Ended |
Jun. 30, 2021 | |
Depreciation, Depletion and Amortization [Abstract] | |
Depreciation and Amortization | DEPRECIATION AND AMORTIZATION Depreciation and amortization expense was $78 million and $66 million for the six months ended June 30, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at June 30, 2021, by segment, was as follows, in millions: Gross Goodwill At June 30, 2021 Accumulated Net Goodwill At June 30, 2021 Plumbing Products (A) $ 602 $ (301) $ 301 Decorative Architectural Products 366 (75) 291 Total $ 968 $ (376) $ 592 (A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. The changes in the carrying amount of goodwill for the six months ended June 30, 2021, by segment, were as follows, in millions: Gross Goodwill At December 31, 2020 Accumulated Net Goodwill At December 31, 2020 Acquisitions Other (B) Net Goodwill At June 30, 2021 Plumbing Products $ 613 $ (340) $ 273 $ 34 $ (6) $ 301 Decorative Architectural Products 365 (75) 290 1 — 291 Total $ 978 $ (415) $ 563 $ 35 $ (6) $ 592 (B) Other consists of the effect of foreign currency translation. The carrying value of our other indefinite-lived intangible assets was $109 million at both June 30, 2021 and December 31, 2020 and principally included registered trademarks. The carrying value of our definite-lived intangible assets was $263 million (net of accumulated amortization of $59 million) and $248 million (net of accumulated amortization of $73 million) at June 30, 2021 and December 31, 2020, respectively, and principally included customer relationships. The increase in our definite-lived intangible assets is primarily a result of our acquisition of ESS. |
Fair Value of Financial Investm
Fair Value of Financial Investments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Investments | FAIR VALUE OF FINANCIAL INVESTMENTS Preferred Stock of ACProducts Holding, Inc. In conjunction with our divestiture of Cabinetry, we received preferred stock of ACProducts Holding, Inc., the holding company of the buyer, with a liquidation preference of $150 million. We did not have the ability to exercise significant influence, and the fair value of this security was not readily available. We elected to measure this investment at cost (less impairment, if any) adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer for subsequent measurements of fair value. As the preferred stock was received in conjunction with the sale of Cabinetry, we determined the cost to be the fair value of the preferred stock at the time of sale, which was determined to be $136 million and was included in other assets in our condensed consolidated balance sheet. In May 2021, we received, in cash, $166 million for the redemption of the preferred stock, including all accrued but unpaid dividends, and recognized a gain of $14 million which was included within other, net in our condensed consolidated statements of operations. Prior to the redemption, dividends earned on this investment were included within other, net in our condensed consolidated statements of operations with a corresponding increase to our basis in the investment. We had dividend income of $3 million and $6 million for the three and six months ended June 30, 2021, respectively, and $4 million for both the three and six months ended June 30, 2020. The preferred stock was reported at the carrying value of $146 million in other assets in our condensed consolidated balance sheet at December 31, 2020. Fair Value of Debt. The fair value of our short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues, which are Level 1 inputs. The aggregate estimated market value of our short-term and long-term debt at June 30, 2021 was approximately $3.2 billion, compared with the aggregate carrying value of $3.0 billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2020 was approximately $3.3 billion, compared with the aggregate carrying value of $2.8 billion. |
Warranty Liability
Warranty Liability | 6 Months Ended |
Jun. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liability | WARRANTY LIABILITY Changes in our warranty liability were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2020 Balance at January 1 $ 83 $ 84 Accruals for warranties issued during the period 18 34 Accruals related to pre-existing warranties — (3) Settlements made (in cash or kind) during the period (15) (33) Other, net (including currency translation and acquisitions) (1) 1 Balance at end of period $ 85 $ 83 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On March 4, 2021, we issued $600 million of 1.500% Notes due February 15, 2028, $600 million of 2.000% Notes due February 15, 2031 and $300 million of 3.125% Notes due February 15, 2051. We received proceeds of $1,495 million, net of discount, for the issuance of these Notes. The Notes are senior indebtedness and are redeemable at our option at the applicable redemption price. On March 22, 2021, proceeds from the debt issuances, together with cash on hand, were used to repay and early retire our $326 million 5.950% Notes due March 15, 2022, $500 million 4.450% Notes due April 1, 2025, and $500 million 4.375% Notes due April 1, 2026. In connection with these early retirements, we incurred a loss on debt extinguishment of $168 million for the six months ended June 30, 2021, which was recorded as interest expense in the condensed consolidated statement of operations. On March 13, 2019, we entered into a credit agreement (the “Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of March 13, 2024. Under the Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders. The Credit Agreement provides for an unsecured revolving credit facility available to us and one of our foreign subsidiaries, in U.S. dollars, European euros, British Pounds Sterling, Canadian dollars and certain other currencies for revolving credit loans, swingline loans and letters of credit. Borrowings under the revolving credit loans denominated in any agreed upon currency other than U.S. dollars are limited to $500 million, equivalent. We can also borrow swingline loans up to $100 million and obtain letters of credit of up to $25 million; outstanding letters of credit under the Credit Agreement reduce our borrowing capacity. At June 30, 2021, we had no outstanding standby letters of credit under the Credit Agreement. Revolving credit loans bear interest under the Credit Agreement, at our option, at (A) a rate per annum equal to the greater of (i) the JPMorgan Chase Bank, N.A. prime rate, (ii) the Federal Reserve Bank of New York effective rate plus 0.50% and (iii) if available, adjusted LIBO Rate plus 1.0% (the "Alternative Base Rate"); plus an applicable margin based upon our then-applicable corporate credit ratings; or (B) if available, adjusted LIBO Rate plus an applicable margin based upon our then-applicable corporate credit ratings. The foreign currency revolving credit loans bear interest at a rate equal to adjusted LIBO Rate, if available, plus an applicable margin based upon our then-applicable corporate credit ratings. The Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) a minimum interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Our 2014 Long Term Stock Incentive Plan provides for the issuance of stock-based incentives in various forms to our employees and non-employee Directors. At June 30, 2021, outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units, performance restricted stock units and phantom stock awards. Pre-tax compensation expense included in (loss) income from continuing operations for these stock-based incentives was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Long-term stock awards $ 3 $ 3 $ 6 $ 7 Stock options 1 2 5 5 Restricted stock units 4 3 23 11 Performance restricted stock units 4 — 6 1 Phantom stock awards — 2 2 2 Total $ 12 $ 10 $ 42 $ 26 Long-Term Stock Awards. Prior to the amendment of our 2014 Long Term Stock Incentive Plan in December 2019, we granted long-term stock awards to our key employees and non-employee Directors. We did not grant shares of long-term stock awards in the six months ended June 30, 2021 and 2020. Our long-term stock award activity was as follows, shares in millions: Six Months Ended June 30, 2021 2020 Unvested stock award shares at January 1 1 2 Weighted average grant date fair value $ 36 $ 34 Stock award shares vested — 1 Weighted average grant date fair value $ 34 $ 32 Stock award shares forfeited — — Weighted average grant date fair value $ 37 $ 35 Unvested stock award shares at June 30 1 1 Weighted average grant date fair value $ 37 $ 36 At June 30, 2021 and 2020, there was $15 million and $28 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of two years and three years at June 30, 2021 and 2020, respectively. The total market value (at the vesting date) of stock award shares which vested was $27 million and $30 million during the six months ended June 30, 2021 and 2020, respectively. J. STOCK-BASED COMPENSATION (Continued) Stock Options. Stock options are granted to certain key employees. We granted 331,970 shares of stock options in the six months ended June 30, 2021 with a grant date weighted average exercise price of approximately $56 per share. Our stock option activity was as follows, shares in millions: Six Months Ended June 30, 2021 2020 Option shares outstanding, January 1 2 3 Weighted average exercise price $ 33 $ 27 Option shares granted 1 1 Weighted average exercise price $ 56 $ 48 Option shares exercised — 1 Aggregate intrinsic value on date of exercise (A) $ 1 million $ 23 million Weighted average exercise price $ 20 $ 17 Option shares forfeited — — Weighted average exercise price $ 11 $ 42 Option shares outstanding, June 30 3 3 Weighted average exercise price $ 36 $ 33 Weighted average remaining option term (in years) 6 7 Option shares vested and expected to vest, June 30 3 3 Weighted average exercise price $ 36 $ 33 Aggregate intrinsic value (A) $ 62 million $ 46 million Weighted average remaining option term (in years) 6 7 Option shares exercisable (vested), June 30 2 1 Weighted average exercise price $ 30 $ 27 Aggregate intrinsic value (A) $ 49 million $ 34 million Weighted average remaining option term (in years) 5 5 (A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares. At June 30, 2021 and 2020, there was $5 million and $8 million, respectively, of unrecognized compensation expense (using the Black-Scholes option pricing model at the grant date) related to unvested stock options; such options had a weighted average remaining vesting period of two years and three years at June 30, 2021 and 2020, respectively. J. STOCK-BASED COMPENSATION (Concluded) The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows: Six Months Ended June 30, 2021 2020 Weighted average grant date fair value $ 13.61 $ 10.67 Risk-free interest rate 0.75 % 1.53 % Dividend yield 1.67 % 1.14 % Volatility factor 30.00 % 24.00 % Expected option life 6 years 6 years Restricted Stock Units. Restricted stock units are granted to our key employees and non-employee Directors. These grants did not cause net share dilution due to our practice of repurchasing and retiring an equal number of shares in the open market. We granted 660,980 restricted stock units in the six months ended June 30, 2021 with a weighted average grant date fair value of $57 per share. In the six months ended June 30, 2021, 137,995 shares were issued and 13,330 restricted stock units were forfeited. During the six months ended June 30, 2020, we granted 432,170 restricted stock units with a grant date fair value of approximately $47 per share and 5,870 restricted stock units were forfeited. At June 30, 2021 and 2020, there was $20 million and $9 million, respectively, of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years at both June 30, 2021 and 2020. The total market value (at the vesting date) of restricted stock units which vested was $7 million during the six months ended June 30, 2021. Performance Restricted Stock Units. Under our Long Term Incentive Program, we grant performance restricted stock units to certain senior executives. These performance restricted stock units will vest and share awards will be issued at no cost to the employees, subject to our achievement of specified performance metrics established by our Compensation Committee over a three-year performance period and the recipient's continued employment through the share award date. |
Employee Retirement Plans
Employee Retirement Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans | EMPLOYEE RETIREMENT PLANS Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other, net, in our condensed consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended June 30, 2021 2020 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ — $ — Interest cost 5 — 7 1 Expected return on plan assets (3) — (5) — Settlement loss 406 — — — Amortization of net loss 5 1 5 1 Net periodic pension cost $ 414 $ 1 $ 7 $ 2 Six Months Ended June 30, 2021 2020 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 2 $ — $ 1 $ — Interest cost 13 1 13 2 Expected return on plan assets (7) — (11) — Settlement loss 406 — — — Amortization of net loss 11 2 11 2 Net periodic pension cost $ 425 $ 3 $ 14 $ 4 As of January 1, 2010, substantially all of our domestic and foreign qualified and domestic non-qualified defined-benefit pension plans were frozen to future benefit accruals. In December 2019, our Board of Directors approved the termination of our qualified domestic defined-benefit pension plans. In the second quarter of 2021, we settled these plans and made a final contribution of $101 million. The settlement loss included $447 million of pre-tax actuarial losses that were reclassified out of accumulated other comprehensive income (loss) during both the three and six months ended June 30, 2021. |
Reclassifications From Accumula
Reclassifications From Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassifications From Accumulated Other Comprehensive Loss | RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Accumulated Other Comprehensive (Income) Loss Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Line Item 2021 2020 2021 2020 Settlement and amortization of defined-benefit pension and other post-retirement benefits (A) : Actuarial losses, net $ 9 $ 6 $ 16 $ 13 Other, net Settlement loss 447 — 447 — Tax (benefit) (98) (1) (100) (3) Net of tax $ 358 $ 5 $ 363 $ 10 Interest rate swaps (B) $ — $ 1 $ 2 $ 1 Interest expense Tax expense — — 5 — Net of tax $ — $ 1 $ 7 $ 1 (A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $447 million of pre-tax actuarial losses from accumulated other comprehensive income (loss) and $96 million of income tax benefit, which included $11 million of related disproportionate tax expense. Additionally, the amortization of defined-benefit pension and post-retirement benefits included $3 million, net of tax, due to the disposition of pension plans in connection with the divestiture of Hüppe. (B) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022 in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense. In addition to the above amounts, we reclassified $23 million of currency translation losses from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations in conjunction with the divestiture of Hüppe in the second quarter of 2021. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Information by segment and geographic area was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 Net Sales (A) Operating Profit (Loss) Net Sales (A) Operating Profit (Loss) Operations by segment: Plumbing Products $ 1,329 $ 868 $ 273 $ 155 $ 2,578 $ 1,823 $ 525 $ 312 Decorative Architectural Products 850 896 188 201 1,571 1,522 330 296 Total $ 2,179 $ 1,764 $ 461 $ 356 $ 4,149 $ 3,345 $ 855 $ 608 Operations by geographic area: North America $ 1,717 $ 1,480 $ 370 $ 321 $ 3,246 $ 2,738 $ 678 $ 531 International, principally Europe 462 284 91 35 903 607 177 77 Total $ 2,179 $ 1,764 461 356 $ 4,149 $ 3,345 855 608 General corporate expense, net (24) (17) (53) (44) Operating profit 437 339 802 564 Other income (expense), net (440) (37) (648) (88) (Loss) income from continuing operations before income taxes $ (3) $ 302 $ 154 $ 476 (A) Inter-segment sales were not material. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | OTHER INCOME (EXPENSE), NET Other, net, which is included in other income (expense), net, was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loss on sale of business $ (18) $ — $ (18) $ — Income from cash and cash investments — 1 — 2 Equity investment income, net — — 2 — Foreign currency transaction gains (losses) 2 2 2 (7) Net periodic pension and post-retirement benefit cost (A) (415) (8) (426) (16) Gain on preferred stock redemption 14 — 14 — Dividend income 3 4 6 4 Other items, net (1) (1) (1) (1) Total other, net $ (415) $ (2) $ (421) $ (18) (A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $406 million of additional pension expense. |
(Loss) Income Per Common Share
(Loss) Income Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
(Loss) Income Per Common Share | (LOSS) INCOME PER COMMON SHARE Reconciliations of the numerators and denominators used in the computations of basic and diluted (loss) income per common share were as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator (basic and diluted): (Loss) income from continuing operations $ (36) $ 210 $ 58 $ 343 Less: Allocation to redeemable noncontrolling interest — — 6 — Less: Allocation to unvested restricted stock awards — 2 — 3 (Loss) income from continuing operations attributable to common shareholders (36) 208 52 340 Income from discontinued operations, net — 14 — 411 Less: Allocation to unvested restricted stock awards — — — 3 Income from discontinued operations, net attributable to common shareholders — 14 — 408 Net (loss) income attributable to common shareholders $ (36) $ 222 $ 52 $ 748 Denominator: Basic common shares (based upon weighted average) 252 262 254 267 Add: Stock option dilution — 1 2 1 Diluted common shares 252 263 256 268 For the three and six months ended June 30, 2021, we allocated dividends to the unvested restricted stock awards. For the three and six months ended June 30, 2020, we allocated dividends and undistributed earnings to the unvested restricted stock awards. Additionally, 2.8 million and 260,000 common shares for the three and six months ended June 30, 2021, respectively, and 762,000 and 672,000 common shares for the three and six months ended June 30, 2020, respectively, related to stock options and 464,000 and 1,000 restricted stock units for the three and six months ended June 30, 2021, respectively, were excluded from the computation of diluted (loss) income per common share due to their antidilutive effect. Effective February 10, 2021, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock in open-market transactions or otherwise, replacing the previous Board of Directors authorization established in 2019. In June 2021, we entered into an accelerated stock repurchase transaction whereby we agreed to repurchase a total of $350 million of our common stock with an initial delivery of approximately 5.1 million shares. This transaction was completed on July 29, 2021, at which time we received, at no additional cost, 0.9 million additional shares of our common stock resulting from changes in the volume weighted average stock price of our common stock over the term of the transaction, less a discount. In total, excluding the incremental shares we received in July 2021 from the accelerated stock repurchase transaction, we repurchased and retired 12.2 million shares of our common stock in the six months ended June 30, 2021 for approximately $750 million. This included 0.7 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2021. At June 30, 2021, we had $1.4 billion remaining under the 2021 authorization. On the basis of amounts paid (declared), cash dividends per common share were $0.235 ($0.235) and $0.375 ($0.235) for the three and six months ended June 30, 2021, respectively, and $0.135 ($0.135) and $0.270 ($0.270) for the three and six months ended June 30, 2020, respectively. |
Other Commitments and Contingen
Other Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | OTHER COMMITMENTS AND CONTINGENCIES We are involved in claims and litigation, including class actions, mass torts and regulatory proceedings, which arise in the ordinary course of our business. The types of matters may include, among others: competition, product liability, employment, warranty, advertising, contract, personal injury, environmental, intellectual property and insurance coverage. We believe we have adequate defenses in these matters. We are also subject to product safety regulations, product recalls and direct claims for product liabilities. We believe the likelihood that the outcome of these claims, litigation and product safety matters would have a material adverse effect on us is remote. However, there is no assurance that we will prevail in these matters, and we could, in the future, incur judgments or penalties, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We recorded a $12 million income tax expense on a $3 million loss from continuing operations for the three months ended June 30, 2021. The unusual relationship between income tax expense and the loss from continuing operations was due primarily to an $11 million income tax expense from the elimination of a disproportionate tax effect from accumulated other comprehensive income (loss), relating to the termination of our qualified domestic defined-benefit pension plans. Our effective tax rate was 36 percent for the six months ended June 30, 2021. The tax expense for the six months ended June 30, 2021 includes a $5 million and $11 million income tax expense from the elimination of disproportionate tax effects from accumulated other comprehensive income (loss) relating to our interest rate swap following the retirement of the related debt, and the termination of our qualified domestic defined-benefit pension plans, respectively. Our effective tax rate was 27 percent and 24 percent for the three months and six months ended June 30, 2020. The tax expense for the three months ended June 30, 2020 was impacted by the recording of a $2 million valuation allowance against deferred tax assets in certain jurisdictions. The tax expense for the six months ended June 30, 2020 also includes a $7 million income tax benefit on stock-based compensation and a $6 million state income tax benefit from a reduction in the liability for uncertain tax positions resulting from the expiration of statutes of limitation. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT In July 2021, we acquired all of the share capital of Steamist, Inc., a manufacturer of residential steam bath products, for approximately $56 million in cash. This business will be included in the Plumbing Products segment. In connection with this acquisition, we currently anticipate recognizing approximately $30 million of definite-lived intangible assets, primarily related to customer relationships. We also anticipate recognizing approximately $30 million of goodwill, which is not tax deductible and is related primarily to the expected synergies from combining the operations into our business. These amounts are subject to changes due to working capital and other adjustments, including completing our initial purchase accounting. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In January 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-01, "Investments—Equity Securities (Topic 321)," "Investments—Equity Method and Joint Ventures (Topic 323)," and "Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815," which clarifies that an entity should consider observable transactions when either applying or discontinuing the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321. ASU 2020-01 clarifies that for certain forward contracts or purchased options to acquire investments, an entity should not consider whether, upon settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option. We adopted ASU 2020-01 prospectively beginning on January 1, 2021. The adoption of the standard did not have a material effect on our financial position or results of operations. Recently Issued Accounting Pronouncements. In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. ASU 2020-06 is effective for us for annual periods beginning January 1, 2022. We are currently reviewing the provisions of this pronouncement and the impact, if any, the adoption of this guidance has on our financial position or results of operations. The effect will largely depend on the composition and terms of the financial instruments at the time of adoption. |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The major classes of line items constituting income from discontinued operations, net, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales $ — $ — $ — $ 101 Cost of sales — — — 78 Gross profit — — — 23 Selling, general and administrative expenses (A) — (1) — 31 Income (loss) from discontinued operations — 1 — (8) Gain on disposal of discontinued operations — 17 — 602 Income before income tax — 18 — 594 Income tax expense — (4) — (183) Income from discontinued operations, net $ — $ 14 $ — $ 411 (A) In the second quarter of 2020, certain remaining liabilities were adjusted to reflect current activity related to sold businesses. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenues [Abstract] | |
Disaggregation of Revenue | Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions: Three Months Ended June 30, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 867 $ 850 $ 1,717 International, principally Europe 462 — 462 Total $ 1,329 $ 850 $ 2,179 Six Months Ended June 30, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,675 $ 1,571 $ 3,246 International, principally Europe 903 — 903 Total $ 2,578 $ 1,571 $ 4,149 Three Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 584 $ 896 $ 1,480 International, principally Europe 284 — 284 Total $ 868 $ 896 $ 1,764 Six Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,216 $ 1,522 $ 2,738 International, principally Europe 607 — 607 Total $ 1,823 $ 1,522 $ 3,345 |
Financing Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2020 Balance at January 1 $ 7 $ 5 Provision for expected credit losses during the period 1 3 Write-offs charged against the allowance (1) (2) Recoveries of amounts previously written off 1 1 Other (A) (1) — Balance at end of period $ 7 $ 7 (A) As a result of Hüppe being divested in May 2021, $1 million for the six months ended June 30, 2021 was removed from allowance for credit losses. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | Goodwill at June 30, 2021, by segment, was as follows, in millions: Gross Goodwill At June 30, 2021 Accumulated Net Goodwill At June 30, 2021 Plumbing Products (A) $ 602 $ (301) $ 301 Decorative Architectural Products 366 (75) 291 Total $ 968 $ (376) $ 592 (A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. The changes in the carrying amount of goodwill for the six months ended June 30, 2021, by segment, were as follows, in millions: Gross Goodwill At December 31, 2020 Accumulated Net Goodwill At December 31, 2020 Acquisitions Other (B) Net Goodwill At June 30, 2021 Plumbing Products $ 613 $ (340) $ 273 $ 34 $ (6) $ 301 Decorative Architectural Products 365 (75) 290 1 — 291 Total $ 978 $ (415) $ 563 $ 35 $ (6) $ 592 (B) Other consists of the effect of foreign currency translation. |
Warranty Liability (Tables)
Warranty Liability (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in the Company's warranty liability | Changes in our warranty liability were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2020 Balance at January 1 $ 83 $ 84 Accruals for warranties issued during the period 18 34 Accruals related to pre-existing warranties — (3) Settlements made (in cash or kind) during the period (15) (33) Other, net (including currency translation and acquisitions) (1) 1 Balance at end of period $ 85 $ 83 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of pre-tax compensation expense and the related income tax benefit for these stock-based incentives | Pre-tax compensation expense included in (loss) income from continuing operations for these stock-based incentives was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Long-term stock awards $ 3 $ 3 $ 6 $ 7 Stock options 1 2 5 5 Restricted stock units 4 3 23 11 Performance restricted stock units 4 — 6 1 Phantom stock awards — 2 2 2 Total $ 12 $ 10 $ 42 $ 26 |
Schedule of the Company's long-term stock award activity | Our long-term stock award activity was as follows, shares in millions: Six Months Ended June 30, 2021 2020 Unvested stock award shares at January 1 1 2 Weighted average grant date fair value $ 36 $ 34 Stock award shares vested — 1 Weighted average grant date fair value $ 34 $ 32 Stock award shares forfeited — — Weighted average grant date fair value $ 37 $ 35 Unvested stock award shares at June 30 1 1 Weighted average grant date fair value $ 37 $ 36 |
Schedule of the Company's stock option activity | Our stock option activity was as follows, shares in millions: Six Months Ended June 30, 2021 2020 Option shares outstanding, January 1 2 3 Weighted average exercise price $ 33 $ 27 Option shares granted 1 1 Weighted average exercise price $ 56 $ 48 Option shares exercised — 1 Aggregate intrinsic value on date of exercise (A) $ 1 million $ 23 million Weighted average exercise price $ 20 $ 17 Option shares forfeited — — Weighted average exercise price $ 11 $ 42 Option shares outstanding, June 30 3 3 Weighted average exercise price $ 36 $ 33 Weighted average remaining option term (in years) 6 7 Option shares vested and expected to vest, June 30 3 3 Weighted average exercise price $ 36 $ 33 Aggregate intrinsic value (A) $ 62 million $ 46 million Weighted average remaining option term (in years) 6 7 Option shares exercisable (vested), June 30 2 1 Weighted average exercise price $ 30 $ 27 Aggregate intrinsic value (A) $ 49 million $ 34 million Weighted average remaining option term (in years) 5 5 (A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares. |
Schedule of weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model | The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows: Six Months Ended June 30, 2021 2020 Weighted average grant date fair value $ 13.61 $ 10.67 Risk-free interest rate 0.75 % 1.53 % Dividend yield 1.67 % 1.14 % Volatility factor 30.00 % 24.00 % Expected option life 6 years 6 years |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost for the Company's defined-benefit pension plans | Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other, net, in our condensed consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended June 30, 2021 2020 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ — $ — Interest cost 5 — 7 1 Expected return on plan assets (3) — (5) — Settlement loss 406 — — — Amortization of net loss 5 1 5 1 Net periodic pension cost $ 414 $ 1 $ 7 $ 2 Six Months Ended June 30, 2021 2020 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 2 $ — $ 1 $ — Interest cost 13 1 13 2 Expected return on plan assets (7) — (11) — Settlement loss 406 — — — Amortization of net loss 11 2 11 2 Net periodic pension cost $ 425 $ 3 $ 14 $ 4 |
Reclassifications From Accumu_2
Reclassifications From Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of reclassifications from accumulated other comprehensive (loss) income to the condensed consolidated statements of operations | The reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Accumulated Other Comprehensive (Income) Loss Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Line Item 2021 2020 2021 2020 Settlement and amortization of defined-benefit pension and other post-retirement benefits (A) : Actuarial losses, net $ 9 $ 6 $ 16 $ 13 Other, net Settlement loss 447 — 447 — Tax (benefit) (98) (1) (100) (3) Net of tax $ 358 $ 5 $ 363 $ 10 Interest rate swaps (B) $ — $ 1 $ 2 $ 1 Interest expense Tax expense — — 5 — Net of tax $ — $ 1 $ 7 $ 1 (A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $447 million of pre-tax actuarial losses from accumulated other comprehensive income (loss) and $96 million of income tax benefit, which included $11 million of related disproportionate tax expense. Additionally, the amortization of defined-benefit pension and post-retirement benefits included $3 million, net of tax, due to the disposition of pension plans in connection with the divestiture of Hüppe. (B) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022 in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense. In addition to the above amounts, we reclassified $23 million of currency translation losses from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations in conjunction with the divestiture of Hüppe in the second quarter of 2021. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of information by segment and geographic area | Information by segment and geographic area was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 Net Sales (A) Operating Profit (Loss) Net Sales (A) Operating Profit (Loss) Operations by segment: Plumbing Products $ 1,329 $ 868 $ 273 $ 155 $ 2,578 $ 1,823 $ 525 $ 312 Decorative Architectural Products 850 896 188 201 1,571 1,522 330 296 Total $ 2,179 $ 1,764 $ 461 $ 356 $ 4,149 $ 3,345 $ 855 $ 608 Operations by geographic area: North America $ 1,717 $ 1,480 $ 370 $ 321 $ 3,246 $ 2,738 $ 678 $ 531 International, principally Europe 462 284 91 35 903 607 177 77 Total $ 2,179 $ 1,764 461 356 $ 4,149 $ 3,345 855 608 General corporate expense, net (24) (17) (53) (44) Operating profit 437 339 802 564 Other income (expense), net (440) (37) (648) (88) (Loss) income from continuing operations before income taxes $ (3) $ 302 $ 154 $ 476 (A) Inter-segment sales were not material. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other, net, which is included in other income (expense), net | Other, net, which is included in other income (expense), net, was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loss on sale of business $ (18) $ — $ (18) $ — Income from cash and cash investments — 1 — 2 Equity investment income, net — — 2 — Foreign currency transaction gains (losses) 2 2 2 (7) Net periodic pension and post-retirement benefit cost (A) (415) (8) (426) (16) Gain on preferred stock redemption 14 — 14 — Dividend income 3 4 6 4 Other items, net (1) (1) (1) (1) Total other, net $ (415) $ (2) $ (421) $ (18) (A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $406 million of additional pension expense. |
(Loss) Income Per Common Share
(Loss) Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share | Reconciliations of the numerators and denominators used in the computations of basic and diluted (loss) income per common share were as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator (basic and diluted): (Loss) income from continuing operations $ (36) $ 210 $ 58 $ 343 Less: Allocation to redeemable noncontrolling interest — — 6 — Less: Allocation to unvested restricted stock awards — 2 — 3 (Loss) income from continuing operations attributable to common shareholders (36) 208 52 340 Income from discontinued operations, net — 14 — 411 Less: Allocation to unvested restricted stock awards — — — 3 Income from discontinued operations, net attributable to common shareholders — 14 — 408 Net (loss) income attributable to common shareholders $ (36) $ 222 $ 52 $ 748 Denominator: Basic common shares (based upon weighted average) 252 262 254 267 Add: Stock option dilution — 1 2 1 Diluted common shares 252 263 256 268 |
Acquisitions (Details)
Acquisitions (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021EUR (€) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jan. 04, 2021 | |
Business Acquisition [Line Items] | ||||||
Goodwill, acquired during period | $ 35 | |||||
Easy Sanitary Solutions B.V. | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 24.90% | |||||
SmarTap | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $ 24 | |||||
Finite-lived intangible assets acquired | 10 | |||||
Goodwill, acquired during period | $ 14 | |||||
Weighted average useful life (in years) | 5 years | |||||
Easy Sanitary Solutions B.V. | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 75.10% | |||||
Business combination, consideration transferred | € 47 | $ 58 | ||||
Payments to acquire businesses | 52 | |||||
Liabilities incurred from acquisition | $ 6 | |||||
Payment period of liabilities incurred from acquisition | 2 years | 2 years | ||||
Finite-lived intangible assets acquired | $ 32 | |||||
Goodwill, acquired during period | $ 35 | |||||
Weighted average useful life (in years) | 10 years | 10 years | ||||
Kraus USA Inc | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $ 103 | |||||
Finite-lived intangible assets acquired | 49 | |||||
Goodwill, acquired during period | 20 | |||||
Payments for asset acquisition, contingent | 50 | |||||
Business combination, contingent consideration, liability | 8 | |||||
Indefinite-lived intangible assets acquired | $ 25 | |||||
Weighted average useful life (in years) | 10 years | |||||
Decrease to goodwill | $ 1 | |||||
Work Tools International Inc and Elder & Jenks LLC | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | $ 53 | |||||
Payments to acquire businesses | 48 | |||||
Liabilities incurred from acquisition | $ 5 | |||||
Payment period of liabilities incurred from acquisition | 18 months | |||||
Finite-lived intangible assets acquired | $ 27 | |||||
Goodwill, acquired during period | 7 | |||||
Indefinite-lived intangible assets acquired | $ 7 | |||||
Weighted average useful life (in years) | 12 years | |||||
Decrease to goodwill | $ 0 |
Divestitures - H_ppe (Details)
Divestitures - Hüppe (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 18 | $ 0 | $ 18 | $ 0 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, not discontinued operation, currency translation gain (loss) | 23 | 23 | ||
Hüppe | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 18 | $ 18 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) $ in Millions | Feb. 18, 2020USD ($) | Nov. 06, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)installment | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)installment |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Businesses, net of cash disposed | $ 5 | $ 865 | ||||
Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on disposal of discontinued operations | $ 0 | $ 17 | 0 | 602 | ||
Income before income tax, discontinued operations | $ 0 | $ 18 | $ 0 | 594 | ||
Masco Cabinetry | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Businesses, net of cash disposed | $ 989 | |||||
Proceeds from divestiture | 853 | |||||
Gain (loss) on disposition of business | $ 585 | |||||
Milgard | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of installments | installment | 5 | 5 | ||||
Milgard | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Businesses, net of cash disposed | $ 720 | $ 12 | ||||
Gain on disposal of discontinued operations | 17 | $ 17 | ||||
Short term receivable from divestiture of businesses, payable in five monthly installments | $ 5 | $ 5 | ||||
ACProducts Preferred Stock | Masco Cabinetry | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 136 |
Divestitures - Income Statement
Divestitures - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net | $ 0 | $ 14 | $ 0 | $ 411 |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 0 | 0 | 101 |
Cost of sales | 0 | 0 | 0 | 78 |
Gross profit | 0 | 0 | 0 | 23 |
Selling, general and administrative expenses | 0 | (1) | 0 | 31 |
Income (loss) from discontinued operations | 0 | 1 | 0 | (8) |
Gain on disposal of discontinued operations | 0 | 17 | 0 | 602 |
Income before income tax | 0 | 18 | 0 | 594 |
Income tax expense | 0 | (4) | 0 | (183) |
Income from discontinued operations, net | $ 0 | $ 14 | $ 0 | $ 411 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 2,179 | $ 1,764 | $ 4,149 | $ 3,345 | |
Contract with customer, asset, gross, current | 1 | 1 | $ 2 | ||
Contract with customer, liability | 24 | 24 | 62 | ||
Contract with customer, liability, revenue recognized | 1 | 3 | |||
Performance obligation satisfied in previous period | 3 | 2 | 4 | 5 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at January 1 | 7 | 5 | 5 | ||
Provision for expected credit losses during the period | 1 | 3 | |||
Write-offs charged against the allowance | (1) | (2) | |||
Recoveries of amounts previously written off | 1 | 1 | |||
Other | 1 | 0 | |||
Balance at end of period | 7 | 7 | $ 7 | ||
Hüppe | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Other | 1 | ||||
Plumbing Products (A) | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,329 | 868 | 2,578 | 1,823 | |
Decorative Architectural Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 850 | 896 | 1,571 | 1,522 | |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,717 | 1,480 | 3,246 | 2,738 | |
North America | Plumbing Products (A) | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 867 | 584 | 1,675 | 1,216 | |
North America | Decorative Architectural Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 850 | 896 | 1,571 | 1,522 | |
International, principally Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 462 | 284 | 903 | 607 | |
International, principally Europe | Plumbing Products (A) | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 462 | 284 | 903 | 607 | |
International, principally Europe | Decorative Architectural Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Depreciation and Amortization (
Depreciation and Amortization (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Depreciation, Depletion and Amortization [Abstract] | ||
Depreciation and amortization expense | $ 78 | $ 66 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Goodwill [Line Items] | |||
Gross goodwill | $ 968 | $ 978 | $ 968 |
Accumulated Impairment Losses | (376) | (415) | (376) |
Net goodwill | 592 | 563 | 592 |
Goodwill [Roll Forward] | |||
Gross goodwill | 968 | 978 | 968 |
Accumulated Impairment Losses | (376) | (415) | (376) |
Goodwill, beginning balance | 563 | ||
Acquisitions | 35 | ||
Other | (6) | ||
Goodwill, ending balance | 592 | 563 | 592 |
Goodwill, Written off Related to Sale of Business Unit | 39 | ||
Plumbing Products (A) | |||
Goodwill [Line Items] | |||
Gross goodwill | 602 | 613 | 602 |
Accumulated Impairment Losses | (301) | (340) | (301) |
Net goodwill | 301 | 273 | 301 |
Goodwill [Roll Forward] | |||
Gross goodwill | 602 | 613 | 602 |
Accumulated Impairment Losses | (301) | (340) | (301) |
Goodwill, beginning balance | 273 | ||
Acquisitions | 34 | ||
Other | (6) | ||
Goodwill, ending balance | 301 | 273 | 301 |
Decorative Architectural Products | |||
Goodwill [Line Items] | |||
Gross goodwill | 366 | 365 | 366 |
Accumulated Impairment Losses | (75) | (75) | (75) |
Net goodwill | 291 | 290 | 291 |
Goodwill [Roll Forward] | |||
Gross goodwill | 366 | 365 | 366 |
Accumulated Impairment Losses | (75) | (75) | (75) |
Goodwill, beginning balance | 290 | ||
Acquisitions | 1 | ||
Other | 0 | ||
Goodwill, ending balance | $ 291 | $ 290 | $ 291 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||
Other indefinite-lived intangible assets | $ 109 | $ 109 |
Carrying value of definite-lived intangible assets | 263 | 248 |
Accumulated amortization | $ 59 | $ 73 |
Fair Value of Financial Inves_2
Fair Value of Financial Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Feb. 18, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Proceeds from redemption of preferred stock | $ 166 | ||||||
Gain on preferred stock redemption | $ 14 | $ 14 | $ 0 | $ 14 | $ 0 | ||
Dividend income | 3 | $ 4 | 6 | $ 4 | |||
Estimate of Fair Value Measurement | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Estimated market value of long-term and short-term debt | 3,200 | 3,200 | $ 3,300 | ||||
Carrying Value Reported Value Measurement | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Aggregate carrying value of long-term and short-term debt | 3,000 | 3,000 | 2,800 | ||||
ACProducts Preferred Stock | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Investments, fair value disclosure | $ 136 | ||||||
ACProducts Preferred Stock | Other Assets | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Investments | $ 146 | ||||||
ACProducts Holding, Inc | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Preferred stock, liquidation preference, value | $ 150 | $ 150 |
Warranty Liability (Details)
Warranty Liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at the beginning of the period | $ 83 | $ 84 |
Accruals for warranties issued during the period | 18 | 34 |
Accruals related to pre-existing warranties | 0 | (3) |
Settlements made (in cash or kind) during the period | (15) | (33) |
Other, net (including currency translation and acquisitions) | (1) | 1 |
Balance at the end of the period | $ 85 | $ 83 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 22, 2021 | Mar. 04, 2021 | Mar. 13, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Debt | |||||
Proceeds from issuance of debt | $ 1,495,000,000 | ||||
Repayments of notes payable | $ 1,326,000,000 | $ 0 | |||
Gain (loss) on extinguishment of debt | $ 168,000,000 | ||||
Credit Agreement dated March 13, 2019 | |||||
Debt | |||||
Borrowing capacity, maximum | $ 1,000,000,000 | ||||
Increase in maximum borrowing capacity | $ 500,000,000 | ||||
Maximum net leverage ratio | 4 | ||||
Minimum interest coverage ratio | 2.5 | ||||
Borrowings outstanding | 0 | ||||
Credit Agreement dated March 13, 2019 | Federal funds effective rate | |||||
Debt | |||||
Interest rate, basis spread (as a percent) | 0.50% | ||||
Credit Agreement dated March 13, 2019 | Libor rate | |||||
Debt | |||||
Interest rate, basis spread (as a percent) | 1.00% | ||||
Credit Agreement dated March 13, 2019 | Revolver | |||||
Debt | |||||
Borrowing capacity, maximum | $ 500,000,000 | ||||
Credit Agreement dated March 13, 2019 | Swingline loans | |||||
Debt | |||||
Borrowing capacity, maximum | 100,000,000 | ||||
Credit Agreement dated March 13, 2019 | Letters of credit | |||||
Debt | |||||
Borrowing capacity, maximum | $ 25,000,000 | ||||
Letters of credit outstanding, amount | $ 0 | ||||
1.5 Notes and Debentures Due February 15, 2028 | |||||
Debt | |||||
Long-term debt, gross | $ 600,000,000 | ||||
Debt instrument stated interest rate | 1.50% | ||||
2.0% Notes and Debentures Due February 15, 2031 | |||||
Debt | |||||
Long-term debt, gross | $ 600,000,000 | ||||
Debt instrument stated interest rate | 2.00% | ||||
3.125 Notes and Debentures Due February 15, 2051 | |||||
Debt | |||||
Long-term debt, gross | $ 300,000,000 | ||||
Debt instrument stated interest rate | 3.125% | ||||
5.95 Notes and Debentures Due March 15, 2022 | |||||
Debt | |||||
Debt instrument stated interest rate | 5.95% | ||||
Repayments of notes payable | $ 326,000,000 | ||||
4.45 Notes and Debentures Due April 1, 2025 | |||||
Debt | |||||
Debt instrument stated interest rate | 4.45% | ||||
Repayments of notes payable | $ 500,000,000 | ||||
4.375 Notes and Debentures Due April 1, 2026 | |||||
Debt | |||||
Debt instrument stated interest rate | 4.375% | ||||
Repayments of notes payable | $ 500,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation | ||||
Pre-tax compensation expense | $ 12 | $ 10 | $ 42 | $ 26 |
Long-term stock awards | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 3 | 3 | 6 | 7 |
Stock options | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 1 | 2 | 5 | 5 |
Restricted stock units | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 4 | 3 | 23 | 11 |
Performance Restricted Stock Units | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 4 | 0 | 6 | 1 |
Phantom stock awards | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | $ 0 | $ 2 | $ 2 | $ 2 |
Stock-Based Compensation - Long
Stock-Based Compensation - Long-Term Stock Award (Details) - Long-term stock awards - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Unvested stock award shares | ||
Balance at the beginning of the period (in shares) | 1 | 2 |
Vested (in shares) | 0 | 1 |
Forfeited (in shares) | 0 | 0 |
Balance at the end of the period (in shares) | 1 | 1 |
Weighted average grant date fair value | ||
Balance at the beginning of the period (in dollars per share) | $ 36 | $ 34 |
Vested (in dollars per share) | 34 | 32 |
Forfeited (in dollars per share) | 37 | 35 |
Balance at the end of the period (in dollars per share) | $ 37 | $ 36 |
Additional disclosures | ||
Total unrecognized compensation expense | $ 15 | $ 28 |
Weighted average remaining vesting period | 2 years | 3 years |
Total market value (at the vesting date) of stock award shares | $ 27 | $ 30 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||
Grant date intrinsic value (in dollars per share) | $ 56 | |
Shares | ||
Granted (in shares) | 331,970 | |
Stock options | ||
Shares | ||
Outstanding at the beginning of the period (in shares) | 2,000,000 | 3,000,000 |
Granted (in shares) | 1,000,000 | 1,000,000 |
Exercised (in shares) | 0 | 1,000,000 |
Forfeited (in shares) | 0 | 0 |
Outstanding at the end of the period (in shares) | 3,000,000 | 3,000,000 |
Vested and expected to vest at the end of the period (in shares) | 3,000,000 | 3,000,000 |
Exercisable at the end of the period (in shares) | 2,000,000 | 1,000,000 |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 33 | $ 27 |
Granted (in dollars per share) | 56 | 48 |
Exercised (in dollars per share) | 20 | 17 |
Forfeited (in dollars per share) | 11 | 42 |
Outstanding at the end of the period (in dollars per share) | 36 | 33 |
Vested and expected to vest at the end of the period (in dollars per share) | 36 | 33 |
Exercisable at the end of the period (in dollars per share) | $ 30 | $ 27 |
Aggregate intrinsic value | ||
Exercised | $ 1 | $ 23 |
Vested and expected to vest at the end of the period | 62 | 46 |
Exercisable at the end of the period | $ 49 | $ 34 |
Weighted average remaining option term | ||
Outstanding at the end of the period | 6 years | 7 years |
Vested and expected to vest at the end of the period | 6 years | 7 years |
Exercisable at the end of the period | 5 years | 5 years |
Additional disclosures | ||
Total unrecognized compensation expense | $ 5 | $ 8 |
Weighted average remaining vesting period | 2 years | 3 years |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Pricing Assumptions and Estimates (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||
Weighted average grant date fair value (in dollars per share) | $ 13.61 | $ 10.67 |
Risk-free interest rate (as a percent) | 0.75% | 1.53% |
Dividend yield (as a percent) | 1.67% | 1.14% |
Volatility factor (as a percent) | 30.00% | 24.00% |
Expected option life | 6 years | 6 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted stock units | ||
Stock-based compensation | ||
Granted (in shares) | 660,980 | 432,170 |
Shares issued in period (in shares) | 137,995 | |
Forfeited (in shares) | 13,330 | 5,870 |
Granted (in dollars per share) | $ 57 | $ 47 |
Unrecognized compensation expense | $ 20 | $ 9 |
Weighted average remaining vesting period | 2 years | |
Total market value (at the vesting date) of stock award shares | $ 7 | |
Stock options | ||
Stock-based compensation | ||
Weighted average remaining vesting period | 2 years | 3 years |
Performance Restricted Stock Units | ||
Stock-based compensation | ||
Period for recognition | 3 years | |
LTIP Program | Performance Restricted Stock Units | ||
Stock-based compensation | ||
Granted (in shares) | 85,360 | 133,390 |
Shares issued in period (in shares) | 104,757 | 151,724 |
Forfeited (in shares) | 0 | |
Granted (in dollars per share) | $ 53 | $ 34 |
Employee Retirement Plans - Sch
Employee Retirement Plans - Schedule of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Qualified Plan | ||||
Net periodic pension cost for the company's defined-benefit pension plans | ||||
Service cost | $ 1 | $ 0 | $ 2 | $ 1 |
Interest cost | 5 | 7 | 13 | 13 |
Expected return on plan assets | (3) | (5) | (7) | (11) |
Settlement loss | 406 | 0 | 406 | 0 |
Amortization of net loss | 5 | 5 | 11 | 11 |
Net periodic pension cost | 414 | 7 | 425 | 14 |
Nonqualified Plan | ||||
Net periodic pension cost for the company's defined-benefit pension plans | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 1 | 1 | 2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Amortization of net loss | 1 | 1 | 2 | 2 |
Net periodic pension cost | $ 1 | $ 2 | $ 3 | $ 4 |
Employee Retirement Plans - Nar
Employee Retirement Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Employee Retirement Plans | |
Defined benefit plan, benefit obligation, payment for settlement | $ 101 |
Reclassification out of Accumulated Other Comprehensive Income | |
Employee Retirement Plans | |
Defined benefit plan actuarial loss | $ 447 |
Reclassifications From Accumu_3
Reclassifications From Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 22, 2021 | |
Reclassifications from accumulated other comprehensive (loss) income | |||||
Other, net | $ 440 | $ 37 | $ 648 | $ 88 | |
Tax (benefit) | (12) | (82) | (55) | (115) | |
Reclassifications, after tax | 15 | (234) | (99) | (772) | |
Interest expense | 25 | 35 | 227 | 70 | |
Disproportionate tax expense | 11 | ||||
5.95 Notes and Debentures Due March 15, 2022 | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Debt instrument stated interest rate | 5.95% | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Defined benefit plan actuarial loss | 0 | 447 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Defined benefit plan actuarial loss | 447 | ||||
Tax (benefit) | 96 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Other, net | 9 | 6 | 16 | 13 | |
Defined benefit plan actuarial loss | 447 | ||||
Tax (benefit) | 98 | 1 | 100 | 3 | |
Reclassifications, after tax | 358 | 5 | 363 | 10 | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Tax (benefit) | 0 | 0 | (5) | 0 | |
Reclassifications, after tax | 0 | (1) | (7) | (1) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Interest Rate Swap | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Interest expense | 0 | $ 1 | $ 2 | $ 1 | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Foreign Currency Adjustment Attributable to Parent | Hüppe | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Other, net | (23) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | Hüppe | |||||
Reclassifications from accumulated other comprehensive (loss) income | |||||
Other, net | $ (3) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Information | ||||
Net sales | $ 2,179 | $ 1,764 | $ 4,149 | $ 3,345 |
Operating Profit (Loss) | 437 | 339 | 802 | 564 |
Other income (expense), net | (440) | (37) | (648) | (88) |
(Loss) income from continuing operations before income taxes | (3) | 302 | 154 | 476 |
North America | ||||
Segment Information | ||||
Net sales | 1,717 | 1,480 | 3,246 | 2,738 |
International, principally Europe | ||||
Segment Information | ||||
Net sales | 462 | 284 | 903 | 607 |
Plumbing Products (A) | ||||
Segment Information | ||||
Net sales | 1,329 | 868 | 2,578 | 1,823 |
Plumbing Products (A) | North America | ||||
Segment Information | ||||
Net sales | 867 | 584 | 1,675 | 1,216 |
Plumbing Products (A) | International, principally Europe | ||||
Segment Information | ||||
Net sales | 462 | 284 | 903 | 607 |
Decorative Architectural Products | ||||
Segment Information | ||||
Net sales | 850 | 896 | 1,571 | 1,522 |
Decorative Architectural Products | North America | ||||
Segment Information | ||||
Net sales | 850 | 896 | 1,571 | 1,522 |
Decorative Architectural Products | International, principally Europe | ||||
Segment Information | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | ||||
Segment Information | ||||
Net sales | 2,179 | 1,764 | 4,149 | 3,345 |
Operating Profit (Loss) | 461 | 356 | 855 | 608 |
Operating Segments | Plumbing Products (A) | ||||
Segment Information | ||||
Net sales | 1,329 | 868 | 2,578 | 1,823 |
Operating Profit (Loss) | 273 | 155 | 525 | 312 |
Operating Segments | Decorative Architectural Products | ||||
Segment Information | ||||
Net sales | 850 | 896 | 1,571 | 1,522 |
Operating Profit (Loss) | 188 | 201 | 330 | 296 |
Geographic Areas | ||||
Segment Information | ||||
Net sales | 2,179 | 1,764 | 4,149 | 3,345 |
Operating Profit (Loss) | 461 | 356 | 855 | 608 |
Geographic Areas | North America | ||||
Segment Information | ||||
Net sales | 1,717 | 1,480 | 3,246 | 2,738 |
Operating Profit (Loss) | 370 | 321 | 678 | 531 |
Geographic Areas | International, principally Europe | ||||
Segment Information | ||||
Net sales | 462 | 284 | 903 | 607 |
Operating Profit (Loss) | 91 | 35 | 177 | 77 |
Corporate, Non-Segment | ||||
Segment Information | ||||
General corporate expense, net | $ (24) | $ (17) | $ (53) | $ (44) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |||||
Loss on sale of business | $ (18) | $ 0 | $ (18) | $ 0 | |
Income from cash and cash investments | 0 | 1 | 0 | 2 | |
Equity investment income, net | 0 | 0 | 2 | 0 | |
Foreign currency transaction gains (losses) | 2 | 2 | 2 | (7) | |
Net periodic pension and post-retirement benefit cost (A) | (415) | (8) | (426) | (16) | |
Gain on preferred stock redemption | $ 14 | 14 | 0 | 14 | 0 |
Dividend income | 3 | 4 | 6 | 4 | |
Other items, net | (1) | (1) | (1) | (1) | |
Total other, net | $ (415) | $ (2) | $ (421) | $ (18) |
Other Income (Expense), Net - F
Other Income (Expense), Net - Footnote (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Qualified Plan | ||||
Employee Retirement Plans | ||||
Settlement loss | $ 406 | $ 0 | $ 406 | $ 0 |
(Loss) Income Per Common Shar_2
(Loss) Income Per Common Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator (basic and diluted): | |||||
(Loss) income from continuing operations | $ (36) | $ 210 | $ 58 | $ 343 | |
Less: Allocation to redeemable noncontrolling interest | 0 | $ 6 | 0 | 6 | 0 |
Less: Allocation to unvested restricted stock awards | 0 | 2 | 0 | 3 | |
(Loss) income from continuing operations attributable to common shareholders | (36) | 208 | 52 | 340 | |
Income from discontinued operations, net | 0 | 14 | 0 | 411 | |
Less: Allocation to unvested restricted stock awards | 0 | 0 | 0 | 3 | |
Income from discontinued operations, net attributable to common shareholders | 0 | 14 | 0 | 408 | |
Net (loss) income attributable to common shareholders | $ (36) | $ 222 | $ 52 | $ 748 | |
Denominator: | |||||
Basic common shares (based upon weighted average) (in shares) | 252 | 262 | 254 | 267 | |
Add: Stock option dilution (in shares) | 0 | 1 | 2 | 1 | |
Diluted common shares (in shares) | 252 | 263 | 256 | 268 |
(Loss) Income Per Common Shar_3
(Loss) Income Per Common Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 29, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 10, 2021 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Amount authorized for repurchase | $ 2,000 | ||||||
Payment for common stock shares repurchased | $ 350 | $ 350 | $ 350 | ||||
Stock repurchased during period (in shares) | 5,100,000 | 12,200,000 | |||||
Payments for repurchase of common stock | $ 750 | $ 602 | |||||
Remaining authorized repurchase amount | $ 1,400 | $ 1,400 | $ 1,400 | ||||
Dividends | |||||||
Cash dividends per common share paid (in dollars per share) | $ 0.235 | $ 0.135 | $ 0.375 | $ 0.270 | |||
Cash dividends per common share declared (in dollars per share) | $ 0.235 | $ 0.135 | $ 0.235 | $ 0.270 | |||
Subsequent Event | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Stock repurchased during period (in shares) | 900,000 | ||||||
Stock options | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive effect on computation of diluted earnings per common share (in shares) | 2,800,000 | 762,000 | 260,000 | 672,000 | |||
Long-term stock awards | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive effect on computation of diluted earnings per common share (in shares) | 464,000 | 1,000 | |||||
Restricted stock units | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Stock repurchased and retired during period to offset dilutive impact of awards granted (in shares) | 700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Tax (benefit) | $ 12 | $ 82 | $ 55 | $ 115 |
(Loss) income from continuing operations before income taxes | (3) | $ 302 | 154 | $ 476 |
Disproportionate tax effect related to termination of pension plans | $ 11 | $ 11 | ||
Effective tax rate (as a percent) | 27.00% | 36.00% | 24.00% | |
Income tax expense, elimination of disproportionate tax | $ 5 | |||
Change in deferred tax assets valuation allowance | $ 2 | |||
Income tax expense on stock-based compensation | $ 7 | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | $ 6 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Jul. 29, 2021 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | ||
Goodwill, acquired during period | $ 35 | |
Steamist, Inc. | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Payments to acquire businesses | $ 56 | |
Finite-lived intangible assets acquired | 30 | |
Goodwill, acquired during period | $ 30 |