Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 21, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MASCO CORP /DE/ | ' |
Entity Central Index Key | '0000062996 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 356,545,600 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash investments | $906 | $1,223 |
Short-term bank deposits | 305 | 321 |
Receivables | 1,215 | 1,004 |
Prepaid expenses and other | 154 | 155 |
Inventories: | ' | ' |
Finished goods | 455 | 398 |
Raw material | 273 | 268 |
Work in process | 110 | 99 |
Total | 838 | 765 |
Total current assets | 3,418 | 3,468 |
Property and equipment, net | 1,232 | 1,252 |
Goodwill | 1,903 | 1,903 |
Other intangible assets, net | 150 | 149 |
Other assets | 177 | 185 |
Total assets | 6,880 | 6,957 |
Current liabilities: | ' | ' |
Notes payable | 6 | 6 |
Accounts payable | 954 | 902 |
Accrued liabilities | 760 | 874 |
Total current liabilities | 1,720 | 1,782 |
Long-term debt | 3,421 | 3,421 |
Deferred income taxes and other | 938 | 967 |
Total liabilities | 6,079 | 6,170 |
Commitments and contingencies | ' | ' |
Masco Corporation's shareholders' equity: | ' | ' |
Common shares, par value $1 per share Authorized shares: 1,400,000,000; issued and outstanding: 2014 - 349,400,000; 2013 - 349,500,000 | 349 | 349 |
Preferred shares authorized: 1,000,000; issued and outstanding: 2014 - None; 2013 - None | ' | ' |
Paid-in capital | ' | 16 |
Retained earnings | 98 | 79 |
Accumulated other comprehensive income | 115 | 115 |
Total Masco Corporation's shareholders' equity | 562 | 559 |
Noncontrolling interest | 239 | 228 |
Total equity | 801 | 787 |
Total liabilities and equity | $6,880 | $6,957 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Mar. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Common shares, shares authorized | 1,400,000,000 | 1,400,000,000 |
Common shares, shares issued | 349,400,000 | 349,500,000 |
Common shares, shares outstanding | 349,400,000 | 349,500,000 |
Preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
Net sales | $1,965 | $1,876 |
Cost of sales | 1,418 | 1,368 |
Gross profit | 547 | 508 |
Selling, general and administrative expenses | 395 | 376 |
Operating profit | 152 | 132 |
Other income (expense), net: | ' | ' |
Interest expense | -56 | -60 |
Other, net | -3 | 13 |
Total other income (expense), net | -59 | -47 |
Income from continuing operations before income taxes | 93 | 85 |
Income taxes | 5 | 14 |
Income from continuing operations | 88 | 71 |
Loss from discontinued operations | -2 | -9 |
Net income | 86 | 62 |
Less: Net income attributable to noncontrolling interest | 12 | 9 |
Net income attributable to Masco Corporation | 74 | 53 |
Basic: | ' | ' |
Income from continuing operations (in dollars per share) | $0.21 | $0.17 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ($0.03) |
Net income (in dollars per share) | $0.21 | $0.15 |
Diluted: | ' | ' |
Income from continuing operations (in dollars per share) | $0.21 | $0.17 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ($0.03) |
Net income (in dollars per share) | $0.21 | $0.15 |
Amounts attributable to Masco Corporation: | ' | ' |
Income from continuing operations | 76 | 62 |
Loss from discontinued operations | -2 | -9 |
Net income attributable to Masco Corporation | $74 | $53 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Net income | $86 | $62 |
Less: Net income attributable to noncontrolling interest | 12 | 9 |
Net income attributable to Masco Corporation | 74 | 53 |
Other comprehensive income (loss), net of tax: | ' | ' |
Cumulative translation adjustment | -4 | -36 |
Unrecognized pension prior service cost and net gain | 3 | 5 |
Other comprehensive loss | -1 | -31 |
Less: Other comprehensive loss attributable to noncontrolling interest | -1 | -8 |
Other comprehensive income (loss) attributable to Masco Corporation | ' | -23 |
Total comprehensive income | 85 | 31 |
Less: Total comprehensive income attributable to noncontrolling interest | 11 | 1 |
Total comprehensive income attributable to Masco Corporation | $74 | $30 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: | ' | ' |
Cash provided by operations | $121 | $130 |
Increase in receivables | -227 | -263 |
Increase in inventories | -75 | -43 |
Decrease in accounts payable and accrued liabilities, net | -63 | -34 |
Net cash for operating activities | -244 | -210 |
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: | ' | ' |
Purchase of Company common stock | -39 | -35 |
Cash dividends paid | -27 | -26 |
New Credit Agreement costs | ' | -4 |
Net cash for financing activities | -66 | -65 |
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -26 | -31 |
Acquisition of companies, net of cash acquired | -2 | -5 |
Proceeds from disposition of: | ' | ' |
Other financial investments | 2 | 5 |
Property and equipment | 5 | 5 |
Short-term bank deposits | 84 | 172 |
Purchases of: | ' | ' |
Short-term bank deposits | -69 | -72 |
Other, net | ' | -4 |
Net cash (for) from investing activities | -6 | 70 |
Effect of exchange rate changes on cash and cash investments | -1 | -7 |
CASH AND CASH INVESTMENTS: | ' | ' |
Decrease for the period | -317 | -212 |
At January 1 | 1,223 | 1,040 |
At March 31 | $906 | $828 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares ($1 par value) | Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $542 | $349 | $16 | ($94) | $59 | $212 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total comprehensive income | 31 | ' | ' | 53 | -23 | 1 |
Shares issued | -7 | 2 | -9 | ' | ' | ' |
Shares retired: | ' | ' | ' | ' | ' | ' |
Repurchased | -35 | -2 | -11 | -22 | ' | ' |
Surrendered (non-cash) | -10 | ' | -10 | ' | ' | ' |
Cash dividends declared | -26 | ' | ' | -26 | ' | ' |
Stock-based compensation | 14 | ' | 14 | ' | ' | ' |
Balance at Mar. 31, 2013 | 509 | 349 | ' | -89 | 36 | 213 |
Balance at Dec. 31, 2013 | 787 | 349 | 16 | 79 | 115 | 228 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total comprehensive income | 85 | ' | ' | 74 | ' | 11 |
Shares issued | -3 | 2 | -5 | ' | ' | ' |
Shares retired: | ' | ' | ' | ' | ' | ' |
Repurchased | -39 | -2 | -9 | -28 | ' | ' |
Surrendered (non-cash) | -14 | ' | -14 | ' | ' | ' |
Cash dividends declared | -27 | ' | ' | -27 | ' | ' |
Stock-based compensation | 12 | ' | 12 | ' | ' | ' |
Balance at Mar. 31, 2014 | $801 | $349 | ' | $98 | $115 | $239 |
Accounting_Policies
Accounting Policies | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Accounting Policies | ' | |||||||||||||||||||||||||
Accounting Policies | ' | |||||||||||||||||||||||||
A. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as at March 31, 2014 and the results of operations for the three months ended March 31, 2014 and 2013 and cash flows for the three months ended March 31, 2014 and 2013. The condensed consolidated balance sheet at December 31, 2013 was derived from audited financial statements. | ||||||||||||||||||||||||||
Certain prior-year amounts have been reclassified to conform to the 2014 presentation in the condensed consolidated financial statements. | ||||||||||||||||||||||||||
Revision of Previously Issued Financial Statements. During the first quarter ended March 31, 2014, the Company identified an error in the accounting for certain of its investments in private equity limited partnership funds. The investments were inappropriately accounted for under the cost basis versus the equity method. The impact of the error was to under report the investment value (included in other assets on the consolidated balance sheets) and to over (under) state equity investment earnings (loss) (included in other income (expense), net in the consolidated statements of operations). We have revised our first quarter 2013 consolidated statement of operations and prior year consolidated balance sheet in these financial statements to reflect the investment accounted for as an equity investment. Retained earnings and other comprehensive income were adjusted for the changes in net income. Other historic periods will be revised, as detailed below, in our future filings. This error is not considered material to any prior period financial statement. | ||||||||||||||||||||||||||
This revision has no effect on our consolidated statement of cash flows. | ||||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued full-year consolidated statement of operations (in millions): | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (239 | ) | $ | (229 | ) | $ | (177 | ) | |||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | (223 | ) | $ | (229 | ) | $ | (168 | ) | |||||||||||||||||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 434 | $ | 73 | $ | (392 | ) | |||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 450 | $ | 73 | $ | (383 | ) | |||||||||||||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 323 | $ | (18 | ) | $ | (352 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 339 | $ | (18 | ) | $ | (343 | ) | ||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 313 | $ | (79 | ) | $ | (533 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 329 | $ | (79 | ) | $ | (524 | ) | ||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued quarterly consolidated statements of operations (in millions): | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | Dec. 31 | Sep. 30 | June 30 | Mar. 31 | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (71 | ) | $ | (58 | ) | $ | (57 | ) | $ | (53 | ) | $ | (57 | ) | $ | (57 | ) | $ | (66 | ) | $ | (49 | ) | ||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | (68 | ) | $ | (52 | ) | $ | (56 | ) | $ | (47 | ) | $ | (53 | ) | $ | (50 | ) | $ | (68 | ) | $ | (58 | ) | ||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 70 | $ | 154 | $ | 131 | $ | 79 | $ | (26 | ) | $ | 51 | $ | (12 | ) | $ | 60 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 73 | $ | 160 | $ | 132 | $ | 85 | $ | (22 | ) | $ | 58 | $ | (14 | ) | $ | 51 | ||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 50 | $ | 116 | $ | 92 | $ | 65 | $ | (63 | ) | $ | 35 | $ | (43 | ) | $ | 53 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 53 | $ | 122 | $ | 93 | $ | 71 | $ | (59 | ) | $ | 42 | $ | (45 | ) | $ | 44 | ||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 56 | $ | 114 | $ | 87 | $ | 56 | $ | (80 | ) | $ | 24 | $ | (67 | ) | $ | 44 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 59 | $ | 120 | $ | 88 | $ | 62 | $ | (76 | ) | $ | 31 | $ | (69 | ) | $ | 35 | ||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets (in millions): | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | As of | ||||||||||||||||||||||
2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
As reported | $ | 161 | $ | 166 | $ | 173 | $ | 182 | $ | 184 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 185 | $ | 187 | $ | 188 | $ | 196 | $ | 192 | ||||||||||||||||
Total assets | ||||||||||||||||||||||||||
As reported | $ | 6,933 | $ | 7,059 | $ | 7,062 | $ | 6,779 | $ | 6,875 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 6,957 | $ | 7,080 | $ | 7,077 | $ | 6,793 | $ | 6,883 | ||||||||||||||||
Revision of Previously Issued Financial Statements. As previously disclosed, during the third quarter ended September 30, 2013, the Company identified an error related to the classification of cash and cash investments. Foreign short-term bank deposits with terms ranging from three months to twelve months were incorrectly classified as cash and cash investments rather than short-term bank deposits. The statement of cash flows for the three months ended March 31, 2013 has been revised. Other historic periods will be revised, as detailed below, in our future filings. These classification errors were not considered material to any prior period financial statements. | ||||||||||||||||||||||||||
This revision had no effect on our consolidated results of operations. | ||||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets and statements of cash flows (all cash flow figures are year-to-date, in millions). | ||||||||||||||||||||||||||
Mar. 31, | June 30, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Cash and cash investments | ||||||||||||||||||||||||||
As reported | $ | 1,032 | $ | 1,223 | ||||||||||||||||||||||
As revised | $ | 828 | $ | 1,028 | ||||||||||||||||||||||
Short-term bank deposits | ||||||||||||||||||||||||||
As reported | — | — | ||||||||||||||||||||||||
As revised | $ | 204 | $ | 195 | ||||||||||||||||||||||
Net cash (for) from investing activities | ||||||||||||||||||||||||||
As reported | $ | (30 | ) | $ | (51 | ) | ||||||||||||||||||||
As revised | $ | 70 | $ | 62 | ||||||||||||||||||||||
The revisions did not significantly impact the effect of exchange rate changes on cash and cash investments in either quarter above. These changes will be reflected in the revised statements of cash flows, in future filings. | ||||||||||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Discontinued Operations | ' | ||||
Discontinued Operations | ' | ||||
B. In the first quarter of 2013, the Company determined that Tvilum, its Danish ready-to-assemble cabinet business, was no longer core to its long-term growth strategy and, accordingly, the Company embarked on a plan for disposition. The disposition of Tvilum was completed in the fourth quarter of 2013. The Company has accounted for this business as a discontinued operation. | |||||
Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions: | |||||
Three Months Ended | |||||
March 31, 2013 | |||||
Net Sales | $ | 59 | |||
Operating loss from discontinued operations | $ | (3 | ) | ||
Impairment of assets | (10 | ) | |||
Loss on disposal of discontinued operations, net | — | ||||
Loss before income tax | (13 | ) | |||
Income tax benefit | (4 | ) | |||
Loss from discontinued operations | $ | (9 | ) | ||
In the first quarter of 2014, the Company recognized $2 million of additional expenses related to prior discontinued operations. | |||||
During the first quarter of 2013, the Company estimated the fair value of the business held for sale, using unobservable inputs (Level 3). After considering the deferred gains reported in Accumulated Other Comprehensive Income, the Company recorded an impairment of $10 million in the first quarter of 2013. | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
C. The changes in the carrying amount of goodwill for the three months ended March 31, 2014, by segment, were as follows, in millions: | |||||||||||||||||
Gross Goodwill | Accumulated | Net Goodwill | |||||||||||||||
At | Impairment | At | |||||||||||||||
Mar. 31, 2014 | Losses | Mar. 31, 2014 | |||||||||||||||
Cabinets and Related Products | $ | 240 | $ | (59 | ) | $ | 181 | ||||||||||
Plumbing Products | 550 | (340 | ) | 210 | |||||||||||||
Installation and Other Services | 1,806 | (762 | ) | 1,044 | |||||||||||||
Decorative Architectural Products | 294 | (75 | ) | 219 | |||||||||||||
Other Specialty Products | 983 | (734 | ) | 249 | |||||||||||||
Total | $ | 3,873 | $ | (1,970 | ) | $ | 1,903 | ||||||||||
Gross Goodwill | Accumulated | Net Goodwill | Net Goodwill | ||||||||||||||
At | Impairment | At | At | ||||||||||||||
Dec. 31, 2013 | Losses | Dec. 31, 2013 | Other(A) | Mar. 31, 2014 | |||||||||||||
Cabinets and Related Products | $ | 240 | $ | (59 | ) | $ | 181 | $ | — | $ | 181 | ||||||
Plumbing Products | 550 | (340 | ) | 210 | — | 210 | |||||||||||
Installation and Other Services | 1,806 | (762 | ) | 1,044 | — | 1,044 | |||||||||||
Decorative Architectural Products | 294 | (75 | ) | 219 | — | 219 | |||||||||||
Other Specialty Products | 983 | (734 | ) | 249 | — | 249 | |||||||||||
Total | $ | 3,873 | $ | (1,970 | ) | $ | 1,903 | $ | — | $ | 1,903 | ||||||
(A) Other principally includes the effect of foreign currency translation. | |||||||||||||||||
Other indefinite-lived intangible assets were $133 million at both March 31, 2014 and December 31, 2013, and principally included registered trademarks. The carrying value of the Company’s definite-lived intangible assets was $17 million (net of accumulated amortization of $63 million) at March 31, 2014 and $16 million (net of accumulated amortization of $62 million) at December 31, 2013, and principally included customer relationships and non-compete agreements. | |||||||||||||||||
Depreciation_and_Amortization_
Depreciation and Amortization Expense | 3 Months Ended |
Mar. 31, 2014 | |
Depreciation and Amortization Expense | ' |
Depreciation and Amortization Expense | ' |
D. Depreciation and amortization expense, including discontinued operations, was $43 million and $51 million, including accelerated depreciation (relating to business rationalization initiatives) of $1 million and $4 million for the three months ended March 31, 2014 and 2013, respectively. | |
Fair_Value_of_Financial_Invest
Fair Value of Financial Investments and Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Fair Value of Financial Investments and Liabilities | ' | |||||||
Fair Value of Financial Investments and Liabilities | ' | |||||||
E. The Company has maintained investments in available-for-sale securities and a number of private equity funds, principally as part of its tax planning strategies, as any gains enhance the utilization of any current and future tax capital losses. Financial investments included in other assets were as follows, in millions: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Equity method investments | $ | 68 | $ | 70 | ||||
Total equity method investments | 68 | 70 | ||||||
Auction rate securities | 22 | 22 | ||||||
Total recurring investments | 22 | 22 | ||||||
Private equity funds | 17 | 18 | ||||||
Other investments | 3 | 3 | ||||||
Total non-recurring investments | 20 | 21 | ||||||
Total | $ | 110 | $ | 113 | ||||
Equity Method Investments. Investments in private equity fund partnerships, joint ventures and less than majority-owned subsidiaries in which we have significant influence are accounted for under the equity method. Our consolidated statements of operations include the Company’s proportionate share of the net income or (loss) of our equity method investees. When we record our proportionate share of net income (loss), it increases (decreases) our equity income in our consolidated statement of operations and our carrying value of that investment on our consolidated balance sheet. | ||||||||
Recurring Fair Value Measurements. The fair value of the auction rate securities held by the Company have been estimated, on a recurring basis, using a discounted cash flow model (Level 3 input). The significant inputs in the discounted cash flow model used to value the auction rate securities include: expected maturity of auction rate securities, discount rate used to determine the present value of expected cash flows and the assumptions for credit defaults, since the auction rate securities are backed by credit default swap agreements. | ||||||||
The Company’s investments in auction rate securities included cost basis of $19 million and pre-tax unrealized gains of $3 million and had a recorded basis of $22 million at both March 31, 2014 and December 31, 2013. | ||||||||
Non-Recurring Fair Value Measurements. During the three months ended March 31, 2014 and 2013, the Company did not measure any financial investments at fair value on a non-recurring basis, as there was no other-than-temporary decline in the estimated value of private equity funds. | ||||||||
The Company did not have any transfers between Level 1 and Level 2 financial assets in the three months ended March 31, 2014 or 2013. | ||||||||
Realized Gains (Losses) and Impairment Charges. Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Realized gains from private equity funds | $ | 1 | $ | 3 | ||||
Equity investments (loss) income, net | (2 | ) | 7 | |||||
Total income from financial investments | $ | (1 | ) | $ | 10 | |||
Fair Value of Debt. The fair value of the Company’s short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues or the current rates available to the Company for debt with similar terms and remaining maturities. The aggregate estimated market value of short-term and long-term debt at March 31, 2014 was approximately $3.8 billion, compared with the aggregate carrying value of $3.4 billion. The aggregate estimated market value of short-term and long-term debt at December 31, 2013 was approximately $3.7 billion, compared with the aggregate carrying value of $3.4 billion. | ||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||
F. The Company is exposed to global market risk as part of its normal daily business activities. To manage these risks, the Company enters into various derivative contracts. These contracts include interest rate swap agreements, foreign currency exchange contracts and metals contracts intended to hedge the Company’s exposure to copper and zinc. The Company reviews its hedging program, derivative positions and overall risk management on a regular basis. | |||||||||||
Foreign Currency Contracts. The Company’s net cash inflows and outflows exposed to the risk of changes in foreign currency exchange rates arise from the sale of products in countries other than the manufacturing source, foreign currency denominated supplier payments, debt and other payables, and investments in subsidiaries. To mitigate this risk during the year, the Company, including certain European operations, enters into foreign currency forward contracts and foreign currency exchange contracts. | |||||||||||
Gains (losses) related to foreign currency forward and exchange contracts are recorded in the Company’s condensed consolidated statements of operations in other income (expense), net. In the event that the counterparties fail to meet the terms of the foreign currency forward contracts, the Company’s exposure is limited to the aggregate foreign currency rate differential with such institutions. | |||||||||||
Metals Contracts. The Company has entered into several contracts to manage its exposure to increases in the price of copper and zinc. (Losses) gains related to these contracts are recorded in the Company’s condensed consolidated statements of operations in cost of sales. | |||||||||||
The pre-tax (losses) gains included in the Company’s condensed consolidated statements of operations is as follows, in millions: | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2014 | 2013 | ||||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | (2 | ) | $ | 7 | ||||||
Forward Contracts | (1 | ) | 2 | ||||||||
Metals Contracts | (3 | ) | (4 | ) | |||||||
Total (loss) gain | $ | (6 | ) | $ | 5 | ||||||
The Company presents its derivatives, net by counterparty due to the right of offset under master netting arrangements in current assets or current liabilities in the condensed consolidated balance sheet. The notional amounts being hedged and the fair value of those derivative instruments, on a gross basis, are as follows, in millions: | |||||||||||
At March 31, 2014 | |||||||||||
Notional | |||||||||||
Amount | Assets | Liabilities | |||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | 83 | |||||||||
Current liabilities | $ | — | $ | 1 | |||||||
Forward Contracts | 67 | ||||||||||
Current liabilities | — | 1 | |||||||||
Metals Contracts | 54 | ||||||||||
Current liabilities | — | 4 | |||||||||
Total | $ | — | $ | 6 | |||||||
At December 31, 2013 | |||||||||||
Notional | |||||||||||
Amount | Assets | Liabilities | |||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | 53 | |||||||||
Current liabilities | $ | — | $ | 2 | |||||||
Forward Contracts | 88 | ||||||||||
Current liabilities | — | 1 | |||||||||
Metals Contracts | 48 | ||||||||||
Current liabilities | — | 2 | |||||||||
Total | $ | — | $ | 5 | |||||||
The fair value of all metals and foreign currency derivative contracts is estimated on a recurring basis, using Level 2 inputs (significant other observable inputs). | |||||||||||
Warranty
Warranty | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Warranty | ' | |||||||
Warranty | ' | |||||||
G. Changes in the Company’s warranty liability were as follows, in millions: | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
Balance at January 1 | $ | 124 | $ | 118 | ||||
Accruals for warranties issued during the period | 11 | 42 | ||||||
Accruals related to pre-existing warranties | 2 | 6 | ||||||
Settlements made (in cash or kind) during the period | (11 | ) | (42 | ) | ||||
Other, net | — | — | ||||||
Balance at end of period | $ | 126 | $ | 124 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2014 | |
Debt | ' |
Debt | ' |
H. On March 28, 2013, the Company entered into a credit agreement (the “Credit Agreement”) with a bank group, with an aggregate commitment of $1.25 billion and a maturity date of March 28, 2018. | |
Based on the limitations of the debt to total capitalization ratio covenant in the Credit Agreement, at March 31, 2014, the Company had additional borrowing capacity, subject to availability, of up to $1.2 billion. Additionally, at March 31, 2014, the Company could absorb a reduction to shareholders’ equity of approximately $796 million and remain in compliance with the debt to total capitalization covenant. | |
In order for the Company to borrow under the Credit Agreement, there must not be any default in the Company’s covenants in the Credit Agreement (i.e., in addition to the two financial covenants, principally limitations on subsidiary debt, negative pledge restrictions, legal compliance requirements and maintenance of properties and insurance) and the Company’s representations and warranties in the Credit Agreement must be true in all material respects on the date of borrowing (i.e., principally no material adverse change or litigation likely to result in a material adverse change, since December 31, 2012, in each case, no material ERISA or environmental non-compliance and no material tax deficiency). The Company was in compliance with all covenants and no borrowings have been made at March 31, 2014. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ' | |||||||
I. The Company’s 2005 Long Term Stock Incentive Plan (the “2005 Plan”) provides for the issuance of stock-based incentives in various forms to employees and non-employee Directors of the Company. At March 31, 2014, outstanding stock-based incentives were in the form of long-term stock awards, stock options, phantom stock awards and stock appreciation rights. Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Long-term stock awards | $ | 11 | $ | 9 | ||||
Stock options | 1 | 5 | ||||||
Phantom stock awards and stock appreciation rights | — | 3 | ||||||
Total | $ | 12 | $ | 17 | ||||
Income tax benefit (37 percent tax rate - before valuation allowance) | $ | 4 | $ | 6 | ||||
Long-Term Stock Awards. Long-term stock awards are granted to key employees and non-employee Directors of the Company and do not cause net share dilution inasmuch as the Company continues the practice of repurchasing and retiring an equal number of shares in the open market. The Company granted 1,582,210 shares of long-term stock awards in the three months ended March 31, 2014. | ||||||||
The Company’s long-term stock award activity was as follows, shares in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Unvested stock award shares at January 1 | 8 | 8 | ||||||
Weighted average grant date fair value | $ | 17 | $ | 16 | ||||
Stock award shares granted | 1 | 2 | ||||||
Weighted average grant date fair value | $ | 22 | $ | 20 | ||||
Stock award shares vested | 2 | 2 | ||||||
Weighted average grant date fair value | $ | 17 | $ | 16 | ||||
Stock award shares forfeited | — | — | ||||||
Weighted average grant date fair value | $ | 18 | $ | 18 | ||||
Unvested stock award shares at March 31 | 7 | 8 | ||||||
Weighted average grant date fair value | $ | 18 | $ | 17 | ||||
At both March 31, 2014 and 2013, there was $94 million of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of four years in both 2014 and 2013. | ||||||||
The total market value (at the vesting date) of stock award shares which vested during the three months ended March 31, 2014 and 2013 was $45 million and $32 million, respectively. | ||||||||
Stock Options. Stock options are granted to key employees of the Company. The exercise price equals the market price of the Company’s common stock at the grant date. These options generally become exercisable (vest ratably) over five years beginning on the first anniversary from the date of grant and expire no later than 10 years after the grant date. | ||||||||
The Company granted 332,750 of stock option shares in the three months ended March 31, 2014 with a grant date exercise price approximating $22 per share. In the first three months of 2014, 121,850 stock option shares were forfeited (including options that expired unexercised). | ||||||||
The Company’s stock option activity was as follows, shares in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Option shares outstanding, January 1 | 24 | 30 | ||||||
Weighted average exercise price | $ | 22 | $ | 21 | ||||
Option shares granted | — | 1 | ||||||
Weighted average exercise price | $ | 22 | $ | 20 | ||||
Option shares exercised | 1 | 2 | ||||||
Aggregate intrinsic value on date of exercise (A) | $ | 10 million | $ | 17 million | ||||
Weighted average exercise price | $ | 16 | $ | 11 | ||||
Option shares forfeited | — | — | ||||||
Weighted average exercise price | $ | 27 | $ | 19 | ||||
Option shares outstanding, March 31 | 23 | 29 | ||||||
Weighted average exercise price | $ | 22 | $ | 22 | ||||
Weighted average remaining option term (in years) | 4 | 4 | ||||||
Option shares vested and expected to vest, March 31 | 23 | 29 | ||||||
Weighted average exercise price | $ | 22 | $ | 22 | ||||
Aggregate intrinsic value (A) | $ | 93 million | $ | 82 million | ||||
Weighted average remaining option term (in years) | 4 | 4 | ||||||
Option shares exercisable (vested), March 31 | 20 | 23 | ||||||
Weighted average exercise price | $ | 23 | $ | 24 | ||||
Aggregate intrinsic value (A) | $ | 72 million | $ | 45 million | ||||
Weighted average remaining option term (in years) | 3 | 4 | ||||||
(A) Aggregate intrinsic value is calculated using the Company’s stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares. | ||||||||
At March 31, 2014 and 2013, there was $11 million and $17 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 three years and two years at March 31, 2014 and 2013, respectively. | ||||||||
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: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Weighted average grant date fair value | $ | 9.53 | $ | 8.33 | ||||
Risk-free interest rate | 1.91 | % | 1.2 | % | ||||
Dividend yield | 1.34 | % | 1.47 | % | ||||
Volatility factor | 49 | % | 49 | % | ||||
Expected option life | 6 years | 6 years | ||||||
Employee_Retirement_Plans
Employee Retirement Plans | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Employee Retirement Plans | ' | |||||||||||||
Employee Retirement Plans | ' | |||||||||||||
J. Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions: | ||||||||||||||
Three Months ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | |||||||||||
Service cost | $ | 1 | $ | — | $ | 1 | $ | — | ||||||
Interest cost | 13 | 2 | 11 | 1 | ||||||||||
Expected return on plan assets | (12 | ) | — | (10 | ) | — | ||||||||
Amortization of net loss | 3 | — | 4 | 1 | ||||||||||
Net periodic pension cost | $ | 5 | $ | 2 | 6 | 2 | ||||||||
The Company participates in 21 regional multi-employer pension plans, principally related to building trades; none of the plans are considered significant to the Company. | ||||||||||||||
Effective January 1, 2010, the Company froze all future benefit accruals under substantially all of the Company’s domestic qualified and non-qualified defined benefit pension plans. Future benefit accruals related to the Company’s foreign non-qualified plans were frozen several years ago. | ||||||||||||||
Reclassifications_from_Accumul
Reclassifications from Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | ' | |||||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | ' | |||||||||
K. The reclassifications from accumulated other comprehensive income to the condensed consolidated statement of operations were as follows, in millions: | ||||||||||
Amount | ||||||||||
Accumulated Other | Reclassified | |||||||||
Comprehensive | March 31, | |||||||||
Income (Loss) | 2014 | 2013 | Financial Statement Line Item | |||||||
Amortization of defined benefit pension: | ||||||||||
Actuarial losses, net | $ | 3 | $ | 5 | Selling, general & administrative expense | |||||
— | — | Income tax expense | ||||||||
$ | 3 | $ | 5 | Net of tax | ||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
L. Information about the Company by segment and geographic area was as follows, in millions: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net Sales(A) | Operating Profit (Loss) | |||||||||||||
The Company’s operations by segment were: | ||||||||||||||
Cabinets and Related Products | $ | 237 | $ | 236 | $ | (12 | ) | $ | (4 | ) | ||||
Plumbing Products | 800 | 762 | 119 | 86 | ||||||||||
Installation and Other Services | 335 | 312 | (4 | ) | (4 | ) | ||||||||
Decorative Architectural Products | 441 | 432 | 76 | 89 | ||||||||||
Other Specialty Products | 152 | 134 | 5 | (1 | ) | |||||||||
Total | $ | 1,965 | $ | 1,876 | $ | 184 | $ | 166 | ||||||
The Company’s operations by geographic area were: | ||||||||||||||
North America | $ | 1,556 | $ | 1,510 | $ | 129 | $ | 140 | ||||||
International, principally Europe | 409 | 366 | 55 | 26 | ||||||||||
Total | $ | 1,965 | $ | 1,876 | 184 | 166 | ||||||||
General corporate expense, net | (32 | ) | (34 | ) | ||||||||||
Operating profit, as reported | 152 | 132 | ||||||||||||
Other income (expense), net | (59 | ) | (47 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 93 | $ | 85 | ||||||||||
(A) Inter-segment sales were not material. |
Severance_Costs
Severance Costs | 3 Months Ended |
Mar. 31, 2014 | |
Severance Costs | ' |
Severance Costs | ' |
M. The Company recorded charges related to severance of $2 million and $4 million for the three months ended March 31, 2014 and 2013, respectively. Such charges are principally reflected in the condensed consolidated statement of operations in selling, general and administrative expenses. | |
Other_Income_Expense_Net
Other Income (Expense), Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income (Expense), Net | ' | |||||||
Other Income (Expense), Net | ' | |||||||
N. Other, net, which is included in other income (expense), net, was as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Income from cash and cash investments | $ | 1 | $ | 1 | ||||
Income from financial investments (Note E) | (1 | ) | 10 | |||||
Other items, net | (3 | ) | 2 | |||||
Total other net | $ | (3 | ) | $ | 13 | |||
Other items, net, included $(2) million and $3 million of currency (losses) gains for the three months ended March 31, 2014 and 2013, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Common Share | ' | |||||||
Earnings Per Common Share | ' | |||||||
O. Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Numerator (basic and diluted): | ||||||||
Income from continuing operations | $ | 76 | $ | 62 | ||||
Less: Allocation to unvested restricted stock awards | 1 | 1 | ||||||
Income from continuing operations attributable to common shareholders | $ | 75 | $ | 61 | ||||
Loss from discontinued operations, net | (2 | ) | (9 | ) | ||||
Less: Allocation to unvested restricted stock awards | — | — | ||||||
Loss from discontinued operations attributable to common shareholders | (2 | ) | (9 | ) | ||||
Net income attributable to common shareholders | $ | 73 | $ | 52 | ||||
Denominator: | ||||||||
Basic common shares (based upon weighted average) | 351 | 350 | ||||||
Add: | ||||||||
Stock option dilution | 3 | 2 | ||||||
Diluted common shares | 354 | 352 | ||||||
For the three months ended March 31, 2014 and 2013, the Company allocated dividends and undistributed earnings to the unvested restricted stock awards (participating securities). | ||||||||
Additionally, 11 million and 15 million common shares for the three months ended March 31, 2014 and 2013, respectively, related to stock options were excluded from the computation of diluted earnings per common share due to their antidilutive effect. | ||||||||
In the first three months of 2014, the Company granted 1.6 million shares of long-term stock awards; to offset the dilutive impact of these awards, the Company also repurchased and retired 1.7 million shares of Company common stock, for cash aggregating approximately $39 million. At March 31, 2014, the Company had 20.9 million shares of its common stock remaining under the July 2007 Board of Directors’ repurchase authorization. | ||||||||
On the basis of amounts paid (declared), cash dividends per common share were $.075 ($.075) for both the three months ended March 31, 2014 and 2013. | ||||||||
Other_Commitments_and_Continge
Other Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Other Commitments and Contingencies | ' |
Other Commitments and Contingencies | ' |
P. We are subject to claims, charges, litigation and other proceedings in the ordinary course of our business, including those arising from or related to contractual matters, intellectual property, personal injury, environmental matters, product liability, product recalls, construction defect, insurance coverage, personnel and employment disputes and other matters, including class actions. We believe we have adequate defenses in these matters and that the outcome of these matters is not likely to have a material adverse effect on us. However, there is no assurance that we will prevail in these matters, and we could in the future incur judgments, 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 | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Q. Our effective tax rate was 5 percent and 16 percent for the three months ended March 31, 2014 and 2013, respectively, primarily due to the decrease in the valuation allowance resulting from the partial utilization of our U.S. Federal net operating loss carryforward. The effective tax rate includes a $15 million and $12 million state income tax benefit on uncertain tax positions primarily due to the expiration of applicable statutes of limitation for the three months ended March 31, 2014 and 2013, respectively. | |
As a result of expirations of applicable statutes of limitations in various jurisdictions expected to transpire or occur within the next 12 months, the Company anticipates that it is reasonably possible that the liability for uncertain tax positions could be reduced by approximately $3 million. | |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Accounting Policies | ' | |||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ' | |||||||||||||||||||||||||
Revision of Previously Issued Financial Statements. During the first quarter ended March 31, 2014, the Company identified an error in the accounting for certain of its investments in private equity limited partnership funds. The investments were inappropriately accounted for under the cost basis versus the equity method. The impact of the error was to under report the investment value (included in other assets on the consolidated balance sheets) and to over (under) state equity investment earnings (loss) (included in other income (expense), net in the consolidated statements of operations). We have revised our first quarter 2013 consolidated statement of operations and prior year consolidated balance sheet in these financial statements to reflect the investment accounted for as an equity investment. Retained earnings and other comprehensive income were adjusted for the changes in net income. Other historic periods will be revised, as detailed below, in our future filings. This error is not considered material to any prior period financial statement. | ||||||||||||||||||||||||||
This revision has no effect on our consolidated statement of cash flows. | ||||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued full-year consolidated statement of operations (in millions): | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (239 | ) | $ | (229 | ) | $ | (177 | ) | |||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | (223 | ) | $ | (229 | ) | $ | (168 | ) | |||||||||||||||||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 434 | $ | 73 | $ | (392 | ) | |||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 450 | $ | 73 | $ | (383 | ) | |||||||||||||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 323 | $ | (18 | ) | $ | (352 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 339 | $ | (18 | ) | $ | (343 | ) | ||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 313 | $ | (79 | ) | $ | (533 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 329 | $ | (79 | ) | $ | (524 | ) | ||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued quarterly consolidated statements of operations (in millions): | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | Dec. 31 | Sep. 30 | June 30 | Mar. 31 | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (71 | ) | $ | (58 | ) | $ | (57 | ) | $ | (53 | ) | $ | (57 | ) | $ | (57 | ) | $ | (66 | ) | $ | (49 | ) | ||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | (68 | ) | $ | (52 | ) | $ | (56 | ) | $ | (47 | ) | $ | (53 | ) | $ | (50 | ) | $ | (68 | ) | $ | (58 | ) | ||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 70 | $ | 154 | $ | 131 | $ | 79 | $ | (26 | ) | $ | 51 | $ | (12 | ) | $ | 60 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 73 | $ | 160 | $ | 132 | $ | 85 | $ | (22 | ) | $ | 58 | $ | (14 | ) | $ | 51 | ||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 50 | $ | 116 | $ | 92 | $ | 65 | $ | (63 | ) | $ | 35 | $ | (43 | ) | $ | 53 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 53 | $ | 122 | $ | 93 | $ | 71 | $ | (59 | ) | $ | 42 | $ | (45 | ) | $ | 44 | ||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 56 | $ | 114 | $ | 87 | $ | 56 | $ | (80 | ) | $ | 24 | $ | (67 | ) | $ | 44 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 59 | $ | 120 | $ | 88 | $ | 62 | $ | (76 | ) | $ | 31 | $ | (69 | ) | $ | 35 | ||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets (in millions): | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | As of | ||||||||||||||||||||||
2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
As reported | $ | 161 | $ | 166 | $ | 173 | $ | 182 | $ | 184 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 185 | $ | 187 | $ | 188 | $ | 196 | $ | 192 | ||||||||||||||||
Total assets | ||||||||||||||||||||||||||
As reported | $ | 6,933 | $ | 7,059 | $ | 7,062 | $ | 6,779 | $ | 6,875 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 6,957 | $ | 7,080 | $ | 7,077 | $ | 6,793 | $ | 6,883 | ||||||||||||||||
Revision of Previously Issued Financial Statements. As previously disclosed, during the third quarter ended September 30, 2013, the Company identified an error related to the classification of cash and cash investments. Foreign short-term bank deposits with terms ranging from three months to twelve months were incorrectly classified as cash and cash investments rather than short-term bank deposits. The statement of cash flows for the three months ended March 31, 2013 has been revised. Other historic periods will be revised, as detailed below, in our future filings. These classification errors were not considered material to any prior period financial statements. | ||||||||||||||||||||||||||
This revision had no effect on our consolidated results of operations. | ||||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets and statements of cash flows (all cash flow figures are year-to-date, in millions). | ||||||||||||||||||||||||||
Mar. 31, | June 30, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Cash and cash investments | ||||||||||||||||||||||||||
As reported | $ | 1,032 | $ | 1,223 | ||||||||||||||||||||||
As revised | $ | 828 | $ | 1,028 | ||||||||||||||||||||||
Short-term bank deposits | ||||||||||||||||||||||||||
As reported | — | — | ||||||||||||||||||||||||
As revised | $ | 204 | $ | 195 | ||||||||||||||||||||||
Net cash (for) from investing activities | ||||||||||||||||||||||||||
As reported | $ | (30 | ) | $ | (51 | ) | ||||||||||||||||||||
As revised | $ | 70 | $ | 62 | ||||||||||||||||||||||
The revisions did not significantly impact the effect of exchange rate changes on cash and cash investments in either quarter above. These changes will be reflected in the revised statements of cash flows, in future filings. | ||||||||||||||||||||||||||
Accounting_Policies_Tables
Accounting Policies (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Accounting Policies | ' | |||||||||||||||||||||||||
Schedule of impact of revisions on the Company's previously issued full-year consolidated statement of operations | ' | |||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued full-year consolidated statement of operations (in millions): | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (239 | ) | $ | (229 | ) | $ | (177 | ) | |||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | (223 | ) | $ | (229 | ) | $ | (168 | ) | |||||||||||||||||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 434 | $ | 73 | $ | (392 | ) | |||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 450 | $ | 73 | $ | (383 | ) | |||||||||||||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 323 | $ | (18 | ) | $ | (352 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 339 | $ | (18 | ) | $ | (343 | ) | ||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 313 | $ | (79 | ) | $ | (533 | ) | ||||||||||||||||||
Correction | 16 | — | 9 | |||||||||||||||||||||||
As revised | $ | 329 | $ | (79 | ) | $ | (524 | ) | ||||||||||||||||||
Schedule of impact of revisions on the Company's previously issued quarterly consolidated statements of operations | ' | |||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued quarterly consolidated statements of operations (in millions): | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | Dec. 31 | Sep. 30 | June 30 | Mar. 31 | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
As reported | $ | (71 | ) | $ | (58 | ) | $ | (57 | ) | $ | (53 | ) | $ | (57 | ) | $ | (57 | ) | $ | (66 | ) | $ | (49 | ) | ||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | (68 | ) | $ | (52 | ) | $ | (56 | ) | $ | (47 | ) | $ | (53 | ) | $ | (50 | ) | $ | (68 | ) | $ | (58 | ) | ||
Income (loss) from continuing operations, before income taxes | ||||||||||||||||||||||||||
As reported | $ | 70 | $ | 154 | $ | 131 | $ | 79 | $ | (26 | ) | $ | 51 | $ | (12 | ) | $ | 60 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 73 | $ | 160 | $ | 132 | $ | 85 | $ | (22 | ) | $ | 58 | $ | (14 | ) | $ | 51 | ||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||
As reported | $ | 50 | $ | 116 | $ | 92 | $ | 65 | $ | (63 | ) | $ | 35 | $ | (43 | ) | $ | 53 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 53 | $ | 122 | $ | 93 | $ | 71 | $ | (59 | ) | $ | 42 | $ | (45 | ) | $ | 44 | ||||||||
Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | 56 | $ | 114 | $ | 87 | $ | 56 | $ | (80 | ) | $ | 24 | $ | (67 | ) | $ | 44 | ||||||||
Correction | 3 | 6 | 1 | 6 | 4 | 7 | (2 | ) | (9 | ) | ||||||||||||||||
As revised | $ | 59 | $ | 120 | $ | 88 | $ | 62 | $ | (76 | ) | $ | 31 | $ | (69 | ) | $ | 35 | ||||||||
Schedule of impact of revisions on the Company's previously issued consolidated balance sheets | ' | |||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets (in millions): | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | June 30 | Mar. 31 | As of | ||||||||||||||||||||||
2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
As reported | $ | 161 | $ | 166 | $ | 173 | $ | 182 | $ | 184 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 185 | $ | 187 | $ | 188 | $ | 196 | $ | 192 | ||||||||||||||||
Total assets | ||||||||||||||||||||||||||
As reported | $ | 6,933 | $ | 7,059 | $ | 7,062 | $ | 6,779 | $ | 6,875 | ||||||||||||||||
Correction | 24 | 21 | 15 | 14 | 8 | |||||||||||||||||||||
As revised | $ | 6,957 | $ | 7,080 | $ | 7,077 | $ | 6,793 | $ | 6,883 | ||||||||||||||||
Schedule of impact of revisions on the Company's previously issued consolidated balance sheets and statements of cash flows | ' | |||||||||||||||||||||||||
The following table presents the impact of the revisions on the Company’s previously issued consolidated balance sheets and statements of cash flows (all cash flow figures are year-to-date, in millions). | ||||||||||||||||||||||||||
Mar. 31, | June 30, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Cash and cash investments | ||||||||||||||||||||||||||
As reported | $ | 1,032 | $ | 1,223 | ||||||||||||||||||||||
As revised | $ | 828 | $ | 1,028 | ||||||||||||||||||||||
Short-term bank deposits | ||||||||||||||||||||||||||
As reported | — | — | ||||||||||||||||||||||||
As revised | $ | 204 | $ | 195 | ||||||||||||||||||||||
Net cash (for) from investing activities | ||||||||||||||||||||||||||
As reported | $ | (30 | ) | $ | (51 | ) | ||||||||||||||||||||
As revised | $ | 70 | $ | 62 | ||||||||||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Discontinued Operations | ' | ||||
Schedule of selected financial information for the discontinued operations | ' | ||||
Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions: | |||||
Three Months Ended | |||||
March 31, 2013 | |||||
Net Sales | $ | 59 | |||
Operating loss from discontinued operations | $ | (3 | ) | ||
Impairment of assets | (10 | ) | |||
Loss on disposal of discontinued operations, net | — | ||||
Loss before income tax | (13 | ) | |||
Income tax benefit | (4 | ) | |||
Loss from discontinued operations | $ | (9 | ) | ||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Schedule of changes in carrying amount of goodwill | ' | ||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2014, by segment, were as follows, in millions: | |||||||||||||||||
Gross Goodwill | Accumulated | Net Goodwill | |||||||||||||||
At | Impairment | At | |||||||||||||||
Mar. 31, 2014 | Losses | Mar. 31, 2014 | |||||||||||||||
Cabinets and Related Products | $ | 240 | $ | (59 | ) | $ | 181 | ||||||||||
Plumbing Products | 550 | (340 | ) | 210 | |||||||||||||
Installation and Other Services | 1,806 | (762 | ) | 1,044 | |||||||||||||
Decorative Architectural Products | 294 | (75 | ) | 219 | |||||||||||||
Other Specialty Products | 983 | (734 | ) | 249 | |||||||||||||
Total | $ | 3,873 | $ | (1,970 | ) | $ | 1,903 | ||||||||||
Gross Goodwill | Accumulated | Net Goodwill | Net Goodwill | ||||||||||||||
At | Impairment | At | At | ||||||||||||||
Dec. 31, 2013 | Losses | Dec. 31, 2013 | Other(A) | Mar. 31, 2014 | |||||||||||||
Cabinets and Related Products | $ | 240 | $ | (59 | ) | $ | 181 | $ | — | $ | 181 | ||||||
Plumbing Products | 550 | (340 | ) | 210 | — | 210 | |||||||||||
Installation and Other Services | 1,806 | (762 | ) | 1,044 | — | 1,044 | |||||||||||
Decorative Architectural Products | 294 | (75 | ) | 219 | — | 219 | |||||||||||
Other Specialty Products | 983 | (734 | ) | 249 | — | 249 | |||||||||||
Total | $ | 3,873 | $ | (1,970 | ) | $ | 1,903 | $ | — | $ | 1,903 | ||||||
(A) Other principally includes the effect of foreign currency translation. |
Fair_Value_of_Financial_Invest1
Fair Value of Financial Investments and Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Fair Value of Financial Investments and Liabilities | ' | |||||||
Schedule of financial investments included in other assets | ' | |||||||
The Company has maintained investments in available-for-sale securities and a number of private equity funds, principally as part of its tax planning strategies, as any gains enhance the utilization of any current and future tax capital losses. Financial investments included in other assets were as follows, in millions: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Equity method investments | $ | 68 | $ | 70 | ||||
Total equity method investments | 68 | 70 | ||||||
Auction rate securities | 22 | 22 | ||||||
Total recurring investments | 22 | 22 | ||||||
Private equity funds | 17 | 18 | ||||||
Other investments | 3 | 3 | ||||||
Total non-recurring investments | 20 | 21 | ||||||
Total | $ | 110 | $ | 113 | ||||
Schedule of income (loss) from financial investments, net, included in other, net, within other income (expense), net | ' | |||||||
Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Realized gains from private equity funds | $ | 1 | $ | 3 | ||||
Equity investments (loss) income, net | (2 | ) | 7 | |||||
Total income from financial investments | $ | (1 | ) | $ | 10 | |||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||
Schedule of pre-tax (losses) gains included in the Company's condensed consolidated statements of operations | ' | ||||||||||
The pre-tax (losses) gains included in the Company’s condensed consolidated statements of operations is as follows, in millions: | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2014 | 2013 | ||||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | (2 | ) | $ | 7 | ||||||
Forward Contracts | (1 | ) | 2 | ||||||||
Metals Contracts | (3 | ) | (4 | ) | |||||||
Total (loss) gain | $ | (6 | ) | $ | 5 | ||||||
Schedule of notional amounts being hedged and the fair value of derivative instruments, on a gross basis | ' | ||||||||||
The notional amounts being hedged and the fair value of those derivative instruments, on a gross basis, are as follows, in millions: | |||||||||||
At March 31, 2014 | |||||||||||
Notional | |||||||||||
Amount | Assets | Liabilities | |||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | 83 | |||||||||
Current liabilities | $ | — | $ | 1 | |||||||
Forward Contracts | 67 | ||||||||||
Current liabilities | — | 1 | |||||||||
Metals Contracts | 54 | ||||||||||
Current liabilities | — | 4 | |||||||||
Total | $ | — | $ | 6 | |||||||
At December 31, 2013 | |||||||||||
Notional | |||||||||||
Amount | Assets | Liabilities | |||||||||
Foreign Currency Contracts | |||||||||||
Exchange Contracts | $ | 53 | |||||||||
Current liabilities | $ | — | $ | 2 | |||||||
Forward Contracts | 88 | ||||||||||
Current liabilities | — | 1 | |||||||||
Metals Contracts | 48 | ||||||||||
Current liabilities | — | 2 | |||||||||
Total | $ | — | $ | 5 | |||||||
Warranty_Tables
Warranty (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Warranty | ' | |||||||
Schedule of changes in the Company's warranty liability | ' | |||||||
Changes in the Company’s warranty liability were as follows, in millions: | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
Balance at January 1 | $ | 124 | $ | 118 | ||||
Accruals for warranties issued during the period | 11 | 42 | ||||||
Accruals related to pre-existing warranties | 2 | 6 | ||||||
Settlements made (in cash or kind) during the period | (11 | ) | (42 | ) | ||||
Other, net | — | — | ||||||
Balance at end of period | $ | 126 | $ | 124 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Stock-Based Compensation | ' | |||||||
Schedule of pre-tax compensation expense and the related income tax benefit for these stock-based incentives | ' | |||||||
Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Long-term stock awards | $ | 11 | $ | 9 | ||||
Stock options | 1 | 5 | ||||||
Phantom stock awards and stock appreciation rights | — | 3 | ||||||
Total | $ | 12 | $ | 17 | ||||
Income tax benefit (37 percent tax rate - before valuation allowance) | $ | 4 | $ | 6 | ||||
Schedule of the Company's long-term stock award activity | ' | |||||||
The Company’s long-term stock award activity was as follows, shares in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Unvested stock award shares at January 1 | 8 | 8 | ||||||
Weighted average grant date fair value | $ | 17 | $ | 16 | ||||
Stock award shares granted | 1 | 2 | ||||||
Weighted average grant date fair value | $ | 22 | $ | 20 | ||||
Stock award shares vested | 2 | 2 | ||||||
Weighted average grant date fair value | $ | 17 | $ | 16 | ||||
Stock award shares forfeited | — | — | ||||||
Weighted average grant date fair value | $ | 18 | $ | 18 | ||||
Unvested stock award shares at March 31 | 7 | 8 | ||||||
Weighted average grant date fair value | $ | 18 | $ | 17 | ||||
Schedule of the Company's stock option activity | ' | |||||||
The Company’s stock option activity was as follows, shares in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Option shares outstanding, January 1 | 24 | 30 | ||||||
Weighted average exercise price | $ | 22 | $ | 21 | ||||
Option shares granted | — | 1 | ||||||
Weighted average exercise price | $ | 22 | $ | 20 | ||||
Option shares exercised | 1 | 2 | ||||||
Aggregate intrinsic value on date of exercise (A) | $ | 10 million | $ | 17 million | ||||
Weighted average exercise price | $ | 16 | $ | 11 | ||||
Option shares forfeited | — | — | ||||||
Weighted average exercise price | $ | 27 | $ | 19 | ||||
Option shares outstanding, March 31 | 23 | 29 | ||||||
Weighted average exercise price | $ | 22 | $ | 22 | ||||
Weighted average remaining option term (in years) | 4 | 4 | ||||||
Option shares vested and expected to vest, March 31 | 23 | 29 | ||||||
Weighted average exercise price | $ | 22 | $ | 22 | ||||
Aggregate intrinsic value (A) | $ | 93 million | $ | 82 million | ||||
Weighted average remaining option term (in years) | 4 | 4 | ||||||
Option shares exercisable (vested), March 31 | 20 | 23 | ||||||
Weighted average exercise price | $ | 23 | $ | 24 | ||||
Aggregate intrinsic value (A) | $ | 72 million | $ | 45 million | ||||
Weighted average remaining option term (in years) | 3 | 4 | ||||||
(A) Aggregate intrinsic value is calculated using the Company’s 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: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Weighted average grant date fair value | $ | 9.53 | $ | 8.33 | ||||
Risk-free interest rate | 1.91 | % | 1.2 | % | ||||
Dividend yield | 1.34 | % | 1.47 | % | ||||
Volatility factor | 49 | % | 49 | % | ||||
Expected option life | 6 years | 6 years | ||||||
Employee_Retirement_Plans_Tabl
Employee Retirement Plans (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Employee Retirement Plans | ' | |||||||||||||
Schedule of net periodic pension cost for the Company's defined-benefit pension plans | ' | |||||||||||||
Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions: | ||||||||||||||
Three Months ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | |||||||||||
Service cost | $ | 1 | $ | — | $ | 1 | $ | — | ||||||
Interest cost | 13 | 2 | 11 | 1 | ||||||||||
Expected return on plan assets | (12 | ) | — | (10 | ) | — | ||||||||
Amortization of net loss | 3 | — | 4 | 1 | ||||||||||
Net periodic pension cost | $ | 5 | $ | 2 | 6 | 2 | ||||||||
Reclassifications_from_Accumul1
Reclassifications from Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | ' | |||||||||
Schedule of reclassifications from accumulated other comprehensive income | ' | |||||||||
The reclassifications from accumulated other comprehensive income to the condensed consolidated statement of operations were as follows, in millions: | ||||||||||
Amount | ||||||||||
Accumulated Other | Reclassified | |||||||||
Comprehensive | March 31, | |||||||||
Income (Loss) | 2014 | 2013 | Financial Statement Line Item | |||||||
Amortization of defined benefit pension: | ||||||||||
Actuarial losses, net | $ | 3 | $ | 5 | Selling, general & administrative expense | |||||
— | — | Income tax expense | ||||||||
$ | 3 | $ | 5 | Net of tax | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of information about the Company by segment and geographic area | ' | |||||||||||||
Information about the Company by segment and geographic area was as follows, in millions: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net Sales(A) | Operating Profit (Loss) | |||||||||||||
The Company’s operations by segment were: | ||||||||||||||
Cabinets and Related Products | $ | 237 | $ | 236 | $ | (12 | ) | $ | (4 | ) | ||||
Plumbing Products | 800 | 762 | 119 | 86 | ||||||||||
Installation and Other Services | 335 | 312 | (4 | ) | (4 | ) | ||||||||
Decorative Architectural Products | 441 | 432 | 76 | 89 | ||||||||||
Other Specialty Products | 152 | 134 | 5 | (1 | ) | |||||||||
Total | $ | 1,965 | $ | 1,876 | $ | 184 | $ | 166 | ||||||
The Company’s operations by geographic area were: | ||||||||||||||
North America | $ | 1,556 | $ | 1,510 | $ | 129 | $ | 140 | ||||||
International, principally Europe | 409 | 366 | 55 | 26 | ||||||||||
Total | $ | 1,965 | $ | 1,876 | 184 | 166 | ||||||||
General corporate expense, net | (32 | ) | (34 | ) | ||||||||||
Operating profit, as reported | 152 | 132 | ||||||||||||
Other income (expense), net | (59 | ) | (47 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 93 | $ | 85 | ||||||||||
(A) Inter-segment sales were not material. |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income (Expense), Net | ' | |||||||
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 | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Income from cash and cash investments | $ | 1 | $ | 1 | ||||
Income from financial investments (Note E) | (1 | ) | 10 | |||||
Other items, net | (3 | ) | 2 | |||||
Total other net | $ | (3 | ) | $ | 13 | |||
Other items, net, included $(2) million and $3 million of currency (losses) gains for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Common Share | ' | |||||||
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 earnings per common share were as follows, in millions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Numerator (basic and diluted): | ||||||||
Income from continuing operations | $ | 76 | $ | 62 | ||||
Less: Allocation to unvested restricted stock awards | 1 | 1 | ||||||
Income from continuing operations attributable to common shareholders | $ | 75 | $ | 61 | ||||
Loss from discontinued operations, net | (2 | ) | (9 | ) | ||||
Less: Allocation to unvested restricted stock awards | — | — | ||||||
Loss from discontinued operations attributable to common shareholders | (2 | ) | (9 | ) | ||||
Net income attributable to common shareholders | $ | 73 | $ | 52 | ||||
Denominator: | ||||||||
Basic common shares (based upon weighted average) | 351 | 350 | ||||||
Add: | ||||||||
Stock option dilution | 3 | 2 | ||||||
Diluted common shares | 354 | 352 | ||||||
Accounting_Policies_Details
Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impact of revisions on previously issued consolidated statements of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ($59) | ($68) | ($52) | ($56) | ($47) | ($53) | ($50) | ($68) | ($58) | ($223) | ($229) | ($168) |
Income (loss) from continuing operations before income taxes | 93 | 73 | 160 | 132 | 85 | -22 | 58 | -14 | 51 | 450 | 73 | -383 |
Income (loss) from continuing operations | 88 | 53 | 122 | 93 | 71 | -59 | 42 | -45 | 44 | 339 | -18 | -343 |
Net income (loss) | 86 | 59 | 120 | 88 | 62 | -76 | 31 | -69 | 35 | 329 | -79 | -524 |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | 177 | 185 | 187 | 188 | 196 | 192 | ' | ' | ' | 185 | 192 | ' |
Total assets | 6,880 | 6,957 | 7,080 | 7,077 | 6,793 | 6,883 | ' | ' | ' | 6,957 | 6,883 | ' |
Cash and cash investments | 906 | 1,223 | ' | 1,028 | 828 | 1,040 | ' | ' | ' | 1,223 | 1,040 | ' |
Short-term bank deposits | ' | ' | ' | 195 | 204 | ' | ' | ' | ' | ' | ' | ' |
Net cash (for) from investing activities | -6 | ' | ' | 62 | 70 | ' | ' | ' | ' | ' | ' | ' |
Accounting for certain investments in private equity limited partnership funds | As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of revisions on previously issued consolidated statements of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ' | -71 | -58 | -57 | -53 | -57 | -57 | -66 | -49 | -239 | -229 | -177 |
Income (loss) from continuing operations before income taxes | ' | 70 | 154 | 131 | 79 | -26 | 51 | -12 | 60 | 434 | 73 | -392 |
Income (loss) from continuing operations | ' | 50 | 116 | 92 | 65 | -63 | 35 | -43 | -53 | 323 | -18 | -352 |
Net income (loss) | ' | 56 | 114 | 87 | 56 | -80 | 24 | -67 | 44 | 313 | -79 | -533 |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | 161 | 166 | 173 | 182 | 184 | ' | ' | ' | 161 | 184 | ' |
Total assets | ' | 6,933 | 7,059 | 7,062 | 6,779 | 6,875 | ' | ' | ' | 6,933 | 6,875 | ' |
Accounting for certain investments in private equity limited partnership funds | Correction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of revisions on previously issued consolidated statements of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ' | 3 | 6 | 1 | 6 | 4 | 7 | -2 | -9 | 16 | ' | 9 |
Income (loss) from continuing operations before income taxes | ' | 3 | 6 | 1 | 6 | 4 | 7 | -2 | -9 | 16 | ' | 9 |
Income (loss) from continuing operations | ' | 3 | 6 | 1 | 6 | 4 | 7 | -2 | -9 | 16 | ' | 9 |
Net income (loss) | ' | 3 | 6 | 1 | 6 | 4 | 7 | -2 | -9 | 16 | ' | 9 |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | 24 | 21 | 15 | 14 | 8 | ' | ' | ' | 24 | 8 | ' |
Total assets | ' | 24 | 21 | 15 | 14 | 8 | ' | ' | ' | 24 | 8 | ' |
Classification of cash and cash investments | As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash investments | ' | ' | ' | 1,223 | 1,032 | ' | ' | ' | ' | ' | ' | ' |
Net cash (for) from investing activities | ' | ' | ' | ($51) | ($30) | ' | ' | ' | ' | ' | ' | ' |
Foreign short-term bank deposits | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign short-term bank deposits | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of previously issued consolidated statement of cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Selected financial information for the discontinued operations | ' | ' |
Net Sales | ' | $59 |
Operating loss from discontinued operations | ' | -3 |
Impairment of assets | ' | -10 |
Loss before income tax | ' | -13 |
Income tax benefit | ' | -4 |
Loss from discontinued operations | -2 | -9 |
Additional expenses related to prior discontinued operations | $2 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill | ' | ' |
Gross Goodwill | $3,873 | $3,873 |
Accumulated Impairment Losses | -1,970 | -1,970 |
Net Goodwill | 1,903 | 1,903 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 1,903 | 1,903 |
Ending balance | 1,903 | 1,903 |
Cabinets and Related Products segment | ' | ' |
Goodwill | ' | ' |
Gross Goodwill | 240 | 240 |
Accumulated Impairment Losses | -59 | -59 |
Net Goodwill | 181 | 181 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 181 | 181 |
Ending balance | 181 | 181 |
Plumbing Products | ' | ' |
Goodwill | ' | ' |
Gross Goodwill | 550 | 550 |
Accumulated Impairment Losses | -340 | -340 |
Net Goodwill | 210 | 210 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 210 | 210 |
Ending balance | 210 | 210 |
Installation and Other Services | ' | ' |
Goodwill | ' | ' |
Gross Goodwill | 1,806 | 1,806 |
Accumulated Impairment Losses | -762 | -762 |
Net Goodwill | 1,044 | 1,044 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 1,044 | 1,044 |
Ending balance | 1,044 | 1,044 |
Decorative Architectural Products | ' | ' |
Goodwill | ' | ' |
Gross Goodwill | 294 | 294 |
Accumulated Impairment Losses | -75 | -75 |
Net Goodwill | 219 | 219 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 219 | 219 |
Ending balance | 219 | 219 |
Other Specialty Products | ' | ' |
Goodwill | ' | ' |
Gross Goodwill | 983 | 983 |
Accumulated Impairment Losses | -734 | -734 |
Net Goodwill | 249 | 249 |
Changes in the carrying amount of goodwill | ' | ' |
Beginning balance | 249 | 249 |
Ending balance | $249 | $249 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and other intangible assets | ' | ' |
Other indefinite-lived intangible assets | $133 | $133 |
Carrying value of definite-lived intangible assets | 17 | 16 |
Accumulated amortization | $63 | $62 |
Depreciation_and_Amortization_1
Depreciation and Amortization Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Depreciation and Amortization Expense | ' | ' |
Depreciation and amortization expense | $43 | $51 |
Accelerated depreciation expenses | $1 | $4 |
Fair_Value_of_Financial_Invest2
Fair Value of Financial Investments and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value of financial investments and liabilities | ' | ' |
Total equity method investments | $68 | $70 |
Total financial investments | 110 | 113 |
Cost basis available-for-sale securities | 19 | 19 |
Pre-tax unrealized gains, available-for-sale securities | 3 | 3 |
Recorded basis, available for sale securities | 22 | 22 |
Equity method investments | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Total equity method investments | 68 | 70 |
Recurring investments | Level 3 | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Recurring investments, Available-for-sale securities | 22 | 22 |
Recurring investments | Auction rate securities | Level 3 | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Recurring investments, Available-for-sale securities | 22 | 22 |
Non-recurring investments | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Non-recurring investments | 20 | 21 |
Non-recurring investments | Private equity funds | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Non-recurring investments | 17 | 18 |
Non-recurring investments | Other investments | ' | ' |
Fair value of financial investments and liabilities | ' | ' |
Non-recurring investments | $3 | $3 |
Fair_Value_of_Financial_Invest3
Fair Value of Financial Investments and Liabilities (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income from financial investments, net and impairment charges | ' | ' | ' |
Equity investments (loss) income, net | ($2,000,000) | $7,000,000 | ' |
Total income from financial investments | -1,000,000 | 10,000,000 | ' |
Estimated market value of long-term and short-term debt | 3,800,000,000 | ' | 3,700,000,000 |
Aggregate carrying value of long-term and short-term debt | 3,400,000,000 | ' | 3,400,000,000 |
Private equity funds | ' | ' | ' |
Income from financial investments, net and impairment charges | ' | ' | ' |
Realized gains from private equity funds | $1,000,000 | $3,000,000 | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (Not designated as a hedge, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative instruments and hedging activities | ' | ' |
Total (loss) gain | ($6) | $5 |
Foreign currency exchange contracts | Other income (expense), net | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Total (loss) gain | -2 | 7 |
Foreign currency forward contracts | Other income (expense), net | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Total (loss) gain | -1 | 2 |
Metals contracts | Cost of sales | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Total (loss) gain | ($3) | ($4) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Recurring | Level 2 | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Liabilities | $6 | $5 |
Foreign currency exchange contracts | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Notional Amount | 83 | 53 |
Foreign currency exchange contracts | Current liabilities | Recurring | Level 2 | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Liabilities | 1 | 2 |
Foreign currency forward contracts | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Notional Amount | 67 | 88 |
Foreign currency forward contracts | Current liabilities | Recurring | Level 2 | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Liabilities | 1 | 1 |
Metals contracts | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Notional Amount | 54 | 48 |
Metals contracts | Current liabilities | Recurring | Level 2 | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Liabilities | $4 | $2 |
Warranty_Details
Warranty (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Warranty | ' | ' |
Balance at the beginning of the period | $124 | $118 |
Accruals for warranties issued during the year | 11 | 42 |
Accruals related to pre-existing warranties | 2 | 6 |
Settlements made (in cash or kind) during the year | -11 | -42 |
Balance at the end of the period | $126 | $124 |
Debt_Details
Debt (Details) (Credit Agreement dated March 28, 3013, USD $) | Mar. 31, 2014 | Mar. 28, 2013 |
Credit Agreement dated March 28, 3013 | ' | ' |
Debt | ' | ' |
Borrowing capacity, maximum | ' | $1,250,000,000 |
Additional borrowing capacity | 1,200,000,000 | ' |
Absorption of reduction to shareholders' equity to remain in compliance with covenant | 796,000,000 | ' |
Amount borrowed | $0 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock-based compensation | ' | ' |
Pre-tax compensation expense | $12 | $17 |
Income tax benefit | 4 | 6 |
Tax rate - before valuation allowance (as a percent) | 37.00% | 37.00% |
Long-term stock awards | ' | ' |
Stock-based compensation | ' | ' |
Pre-tax compensation expense | 11 | 9 |
Stock options | ' | ' |
Stock-based compensation | ' | ' |
Pre-tax compensation expense | 1 | 5 |
Phantom stock awards and stock appreciation rights | ' | ' |
Stock-based compensation | ' | ' |
Pre-tax compensation expense | ' | $3 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Additional disclosures | ' | ' |
Remaining weighted average vesting period | '3 years | '2 years |
Long-term stock awards | ' | ' |
Unvested stock award shares | ' | ' |
Balance at the beginning of the period (in shares) | 8,000,000 | 8,000,000 |
Granted (in shares) | 1,582,210 | 2,000,000 |
Vested (in shares) | 2,000,000 | 2,000,000 |
Balance at the end of the period (in shares) | 7,000,000 | 8,000,000 |
Weighted average grant date fair value | ' | ' |
Balance at the beginning of the period (in dollars per share) | 17 | 16 |
Granted (in dollars per share) | 22 | 20 |
Vested (in dollars per share) | 17 | 16 |
Forfeited (in dollars per share) | 18 | 18 |
Balance at the end of the period (in dollars per share) | 18 | 17 |
Additional disclosures | ' | ' |
Total unrecognized compensation expense | 94 | 94 |
Remaining weighted average vesting period | '4 years | '4 years |
Total market value (at the vesting date) of stock award shares | 45 | 32 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Additional disclosures | ' | ' |
Weighted average remaining vesting period | '3 years | '2 years |
Stock Options | ' | ' |
Stock Options | ' | ' |
Vesting period | '5 years | ' |
Expiration period | '10 years | ' |
Shares | ' | ' |
Outstanding at the beginning of the period (in shares) | 24,000,000 | 30,000,000 |
Granted (in shares) | 332,750 | 1,000,000 |
Exercised (in shares) | 1,000,000 | 2,000,000 |
Forfeited (in shares) | 121,850 | ' |
Outstanding at the end of the period (in shares) | 23,000,000 | 29,000,000 |
Option shares vested and expected to vest at the end of the period | 23,000,000 | 29,000,000 |
Option shares exercisable at the end of the period | 20,000,000 | 23,000,000 |
Weighted average exercise price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | 22 | 21 |
Granted (in dollars per share) | 22 | 20 |
Exercised (in dollars per share) | 16 | 11 |
Forfeited (in dollars per share) | 27 | 19 |
Outstanding at the end of the period (in dollars per share) | 22 | 22 |
Option shares vested and expected to vest at the end of the period (in dollars per share) | 22 | 22 |
Option shares exercisable at the end of the period (in dollars per share) | 23 | 24 |
Aggregate intrinsic value | ' | ' |
Exercised | 10 | 17 |
Option shares vested and expected to vest at the end of the period | 93 | 82 |
Option shares exercisable at the end of the period | 72 | 45 |
Weighted average remaining option term | ' | ' |
Outstanding at the end of the period | '4 years | '4 years |
Option shares vested and expected to vest at the end of the period | '4 years | '4 years |
Option shares exercisable at the end of the period | '3 years | '4 years |
Additional disclosures | ' | ' |
Total unrecognized compensation expense | 11 | 17 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (Stock Options, USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options | ' | ' |
Stock Options | ' | ' |
Weighted average grant date fair value (in dollars per share) | $9.53 | $8.33 |
Risk-free interest rate (as a percent) | 1.91% | 1.20% |
Dividend yield (as a percent) | 1.34% | 1.47% |
Volatility factor (as a percent) | 49.00% | 49.00% |
Expected option life | '6 years | '6 years |
Employee_Retirement_Plans_Deta
Employee Retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net periodic pension cost for the company's defined-benefit pension plans | ' | ' |
Number of regional multi-employer pension plans in which the entity participates | 21 | ' |
Qualified | ' | ' |
Net periodic pension cost for the company's defined-benefit pension plans | ' | ' |
Service cost | $1 | $1 |
Interest cost | 13 | 11 |
Expected return on plan assets | -12 | -10 |
Amortization of net loss | 3 | 4 |
Net periodic pension cost | 5 | 6 |
Non-Qualified | ' | ' |
Net periodic pension cost for the company's defined-benefit pension plans | ' | ' |
Interest cost | 2 | 1 |
Amortization of net loss | ' | 1 |
Net periodic pension cost | $2 | $2 |
Reclassifications_from_Accumul2
Reclassifications from Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassifications from accumulated other comprehensive income (loss) | ' | ' |
Selling, general and administrative expenses | $395 | $376 |
Net of tax | 74 | 53 |
Actuarial losses, net | Amount Reclassified | ' | ' |
Reclassifications from accumulated other comprehensive income (loss) | ' | ' |
Selling, general and administrative expenses | 3 | 5 |
Net of tax | $3 | $5 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,965 | ' | ' | ' | $1,876 | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 152 | ' | ' | ' | 132 | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | -59 | -68 | -52 | -56 | -47 | -53 | -50 | -68 | -58 | -223 | -229 | -168 |
Income from continuing operations before income taxes | 93 | 73 | 160 | 132 | 85 | -22 | 58 | -14 | 51 | 450 | 73 | -383 |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 1,556 | ' | ' | ' | 1,510 | ' | ' | ' | ' | ' | ' | ' |
International, principally Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 409 | ' | ' | ' | 366 | ' | ' | ' | ' | ' | ' | ' |
Cabinets and Related Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 237 | ' | ' | ' | 236 | ' | ' | ' | ' | ' | ' | ' |
Plumbing Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 800 | ' | ' | ' | 762 | ' | ' | ' | ' | ' | ' | ' |
Installation and Other Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 335 | ' | ' | ' | 312 | ' | ' | ' | ' | ' | ' | ' |
Decorative Architectural Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 441 | ' | ' | ' | 432 | ' | ' | ' | ' | ' | ' | ' |
Other Specialty Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 152 | ' | ' | ' | 134 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 184 | ' | ' | ' | 166 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | Cabinets and Related Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | -12 | ' | ' | ' | -4 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | Plumbing Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 119 | ' | ' | ' | 86 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | Installation and Other Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | -4 | ' | ' | ' | -4 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | Decorative Architectural Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 76 | ' | ' | ' | 89 | ' | ' | ' | ' | ' | ' | ' |
Operating Segments | Other Specialty Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 5 | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General corporate expense, net | -32 | ' | ' | ' | -34 | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 184 | ' | ' | ' | 166 | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas | North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | 129 | ' | ' | ' | 140 | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas | International, principally Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Profit (Loss) | $55 | ' | ' | ' | $26 | ' | ' | ' | ' | ' | ' | ' |
Severance_Costs_Details
Severance Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Severance Costs | ' | ' |
Severance costs | $2 | $4 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income (Expense), Net | ' | ' |
Income from cash and cash investments | $1 | $1 |
Income from financial investments | -1 | 10 |
Other items, net | -3 | 2 |
Total other, net | -3 | 13 |
Currency (losses) gains included in other items, net | ($2) | $3 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator (basic and diluted): | ' | ' |
Income from continuing operations | $76 | $62 |
Less: Allocation to unvested restricted stock awards | 1 | 1 |
Income from continuing operations attributable to common shareholders | 75 | 61 |
Loss from discontinued operations, net | -2 | -9 |
Loss from discontinued operations attributable to common shareholders | -2 | -9 |
Net income attributable to common shareholders | $73 | $52 |
Denominator: | ' | ' |
Basic common shares (based upon weighted average) (in shares) | 351 | 350 |
Add: | ' | ' |
Stock option dilution (in shares) | 3 | 2 |
Diluted common shares (in shares) | 354 | 352 |
Earnings_Per_Common_Share_Deta1
Earnings Per Common Share (Details 2) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Antidilutive securities excluded from computation of earnings per share | ' | ' |
Repurchase and retirement of common stock to offset the dilutive impact of long-term stock awards | 1,700,000 | ' |
Repurchase and retirement of common stock cash aggregate to offset the dilutive effect | $39 | $35 |
Remaining number of shares authorized to be repurchased | 20,900,000 | ' |
Cash dividends per common share paid (in dollars per share) | $0.08 | $0.08 |
Cash dividends per common share declared (in dollars per share) | $0.08 | $0.08 |
Stock options | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' |
Antidilutive effect on computation of diluted earnings per common share (in shares) | 11,000,000 | 15,000,000 |
Unvested stock awards | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' |
Grant of long-term stock awards | 1,600,000 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income taxes | ' | ' |
Effective tax rate (as a percent) | 5.00% | 16.00% |
Reasonably possible reduction in the liability for uncertain tax positions | $3 | ' |
State | ' | ' |
Income taxes | ' | ' |
Income tax benefit on uncertain tax positions, expiration of statutes of limitations and settlements on audits | $15 | 12 |