Beam Therapeutics 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	260.1	163.3
Accounts receivable, net	969	918.5
Inventories
Maturing spirits	1224.7	1128.1
Other raw materials, supplies and work in process	327.2	366.7
Finished products	472.3	480.6
Inventory, Net, Total	2024.2	1975.4
Other current assets	445.6	410.9
Total current assets	3698.9	3468.1
Property, plant and equipment, net	1463.5	1553.9
Goodwill resulting from business acquisitions	3588.1	3571.8
Other intangible assets resulting from business acquisitions, net	3279.2	3211.4
Other assets	302	286.7
Total assets	12331.7	12091.9
Current liabilities
Notes payable to banks	36.4	31.6
Current portion of long-term debt	11.7	5
Accounts payable	417.9	387.7
Other current liabilities	922.2	765.8
Total current liabilities	1388.2	1190.1
Long-term debt	4428.4	4688.6
Deferred income taxes	726.8	700
Accrued pension and postretirement benefits	421.2	442.2
Other non-current liabilities	282	371.4
Total liabilities	7246.6	7392.3
Fortune Brands stockholders' equity
$2.67 Convertible Preferred stock - redeemable at Company's option	5.3	5.5
Common stock, par value $3.125 per share, 234.9 shares issued	734	734
Paid-in capital	750.7	716.4
Accumulated other comprehensive loss	-242.8	-478.4
Retained earnings	7153.2	7046.2
Treasury stock, at cost	-3329.4	-3337.7
Total Fortune Brands stockholders' equity	5,071	4,686
Noncontrolling interests	14.1	13.6
Total equity	5085.1	4699.6
Total liabilities and equity	12331.7	12091.9

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions, except Per Share data	Sep. 30, 2009	Dec. 31, 2008
Convertible Preferred stock, per share	2.67	2.67
Common stock, par value	3.125	3.125
Common stock, shares issued	234.9	234.9

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net sales	1717.9	1921.8	4897.6	5823.3
Cost of products sold	893.4	1006.5	2595.1	3083.9
Excise taxes on spirits	125.3	122.5	350	346.3
Advertising, selling, general and administrative expenses	484.7	494.6	1422.2	1524.4
Amortization of intangible assets	8.5	12.4	25.2	37.3
Restructuring charges	1.5	31	47.2	41.1
Intangible asset impairment charges			0	324.3
Operating income	204.5	254.8	457.9	466
Interest expense	55.1	60.4	161	179.2
Other expense (income), net	-6.9	-285.1	7.2	(271)
Income from continuing operations before income taxes	156.3	479.5	289.7	557.8
Income tax expense	31.1	171.4	55	185.4
Income from continuing operations	125.2	308.1	234.7	372.4
Income from discontinued operations	0	30.2	0	152.5
Net income	125.2	338.3	234.7	524.9
Less: Noncontrolling interests	1.1	2.4	3.4	-67.5
Net income attributable to Fortune Brands	124.1	335.9	231.3	592.4
Amounts attributable to common stockholders:
Income from continuing operations, net of tax	124.1	305.7	231.3	439.9
Income from discontinued operations, net of tax	0	30.2	0	152.5
Net income attributable to Fortune Brands	124.1	335.9	231.3	592.4
Basic
Continuing operations	0.82	2.04	1.54	2.89
Discontinued operations	$0	0.2	$0	$1
Net income attributable to Fortune Brands common stockholders	0.82	2.24	1.54	3.89
Diluted
Continuing operations	0.82	2.01	1.53	2.85
Discontinued operations	$0	0.2	$0	0.98
Net income attributable to Fortune Brands common stockholders	0.82	2.21	1.53	3.83
Dividends paid per common share	0.19	0.44	0.82	1.28
Average number of common shares outstanding
Basic	150.3	150	150.2	152.3
Diluted	152	151.9	151.7	154.5

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating activities
Net income	234.7	524.9
Non-cash pre-tax (income) expense:
Restructuring charges	10	10.8
Depreciation	164.9	159.8
Amortization	27.2	39.3
Stock-based compensation	35.3	28.2
Deferred income taxes	-15.4	40.8
Dividends paid to noncontrolling interests	-2.9	-15.1
Gain on dividend distribution from Maxxium	-12.5	0
Acceleration of Future Brands unamortized deferred gain	0	(72)
Maxxium investment write-downs	0	50.5
Intangible asset impairment charges	0	324.3
Changes in assets and liabilities:
Decrease in accounts receivable	112.9	50.6
Decrease (increase) in inventories	61.1	-69.4
Increase (decrease) in accounts payable	2.5	-52.2
Decrease in accrued expenses and other liabilities	-29.9	-155.4
Decrease in accrued taxes	-9.8	-223.5
Other operating activities, net	36.2	-12.3
Net cash provided by operating activities	614.3	629.3
Investing activities
Capital expenditures	-91.2	-106.1
Proceeds from the disposition of assets	14.4	11.2
Acquisitions, net of cash acquired, and divestitures	-77.6	-104.1
Investments in affiliates	-41.7	0
Return of investment in affiliates	58.4	0
Net cash used by investing activities	-137.7	(199)
Financing activities
(Decrease) increase in short-term debt and commercial paper, net	-3.6	658.7
Issuance of long-term debt	895.8	0
Repayment of long-term debt	-1194.3	-204.8
Dividends to stockholders	-123.5	-195.1
Cash purchases of common stock for treasury	0	-278.6
Proceeds received from exercise of stock options	4.9	15.3
Tax benefit on exercise of stock options	0.4	3
Redemption of the 10% minority interest in our Spirits business	0	(455)
Net cash used by financing activities	-420.3	-456.5
Effect of foreign exchange rate changes on cash	40.5	(2)
Net increase (decrease) in cash and cash equivalents	96.8	-28.2
Cash and cash equivalents at beginning of period	163.3	203.7
Cash and cash equivalents at end of period	260.1	175.5

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Convertible Preferred Stock	Common Stock	Paid-in Capital	AOCI		Retained Earnings	Treasury Stock, At Cost	Non- controlling Interest		Total
Beginning Balance at Dec. 31, 2007	5.7	$734	684.3	349.1	[2]	6999.3	-3086.9	15.6		5701.1
Comprehensive income
Net income						592.4		4.6	[1]	597
Translation adjustments, net of effect of hedging				-138.2	[2]					-138.2
Pension and postretirement benefit adjustments				2.6	[2]					2.6
Total comprehensive income				-135.6	[2]	592.4		4.6		461.4
Dividends paid to noncontrolling interests								-5.3		-5.3
Dividends ($0.82 per Common share in 2009 and $1.28 per Common share in 2008, and $2.0025 per Preferred share in 2009 and 2008)						-261.2				-261.2
Treasury stock purchases (4.5 shares)							-278.6			-278.6
Stock-based compensation			32.7			-2.6	18			48.1
Tax benefit on exercise of stock options			3.5							3.5
Conversion of preferred stock (less than 0.1 shares)	-0.1		-1.1				1.2			0
Ending Balance at Sep. 30, 2008	5.6	734	719.4	213.5	[2]	7327.9	-3346.3	14.9		5,669
Beginning Balance at Dec. 31, 2008	5.5	734	716.4	-478.4	[2]	7046.2	-3337.7	13.6		4699.6
Comprehensive income
Net income						231.3		3.4		234.7
Translation adjustments, net of effect of hedging				210.8	[2]					210.8
Pension and postretirement benefit adjustments				24.8	[2]					24.8
Total comprehensive income				235.6	[2]	231.3		3.4		470.3
Dividends paid to noncontrolling interests								-2.9		-2.9
Dividends ($0.82 per Common share in 2009 and $1.28 per Common share in 2008, and $2.0025 per Preferred share in 2009 and 2008)						-123.5				-123.5
Stock-based compensation			34.8			-0.8	7.1			41.1
Tax benefit on exercise of stock options			0.5							0.5
Conversion of preferred stock (less than 0.1 shares)	-0.2		(1)				1.2			0
Ending Balance at Sep. 30, 2009	5.3	$734	750.7	-242.8	[2]	7153.2	-3329.4	14.1		5085.1
[1]2008 net income on the condensed consolidated statement of stockholders' equity includes $72.1 million of income from noncontrolling interests that was repurchased on September 30, 2008 and was classified on the balance sheet in mezzanine equity until repurchased.
[2]Accumulated other comprehensive income (loss)

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
Share data in Millions, except Per Share data	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Dividends, per Common share	0.82	1.28
Dividends, per Preferred share	2.0025	2.0025
Treasury stock purchases, shares		4.5
Conversion of preferred stock, shares	0.1	0.1

1.Basis of Presentation and Pri

1.Basis of Presentation and Principles of Consolidation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1.Basis of Presentation and Principles of Consolidation	1. Basis of Presentation and Principles of Consolidation References to we, our, us, Fortune Brands and the Company refer to Fortune Brands, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. The condensed consolidated balance sheet as of September30, 2009, the related condensed consolidated statements of income for the nine-month and three-month periods ended September30, 2009 and 2008 and the related condensed consolidated statements of cash flows and stockholders equity for the nine-month periods ended September30, 2009 and 2008 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the financial statements have been included. Interim results may not be indicative of results for a full year. Subsequent events have been evaluated through November6, 2009, the date the financial statements were issued. The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in our annual consolidated financial statements and notes. The year-end condensed consolidated balance sheet was derived from the audited financial statements adjusted for adoption of the authoritative guidance on noncontrolling interests, Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, but does not include all disclosures required by generally accepted accounting principles (GAAP). This Form 10-Q should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December31, 2008.

2.Recently Issued Accounting St

2.Recently Issued Accounting Standards
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2.Recently Issued Accounting Standards	2. Recently Issued Accounting Standards Accounting Standards Codification In July 2009, the FASB established the FASB Accounting Standards Codification (ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The ASC supersedes all existing non-SEC accounting and reporting standards and is not intended to change GAAP. The use of the ASC was effective for financial statements issued for periods ending after September15, 2009. Transfer of Financial Assets In June 2009, the FASB amended the existing authoritative guidance on transfer of financial assets (ASC 860). The new guidance a) eliminates of the concept of a qualifying special-purpose entity, b) clarifies and changes derecognition criteria for a transfer, and c) enhances disclosures about risks that a transferor continues to be exposed to because of continuing involvement in transferred financial assets. The amendment is effective for annual reporting periods beginning after November15, 2009 (calendar year 2010 for Fortune Brands). It would currently have no impact on our financial statements or disclosures. Consolidation of Variable Interest Entities In June 2009, the FASB amended the existing authoritative guidance on variable interest entities (ASC 810), including a) a new approach for determining who should consolidate a variable interest entity (VIE) and b) changing when it is necessary to reassess who should consolidate a VIE. The new approach requires an enterprise to qualitatively assess the determination of the primary beneficiary (consolidator). The amendment is effective for annual reporting periods beginning after November15, 2009 (calendar year 2010 for Fortune Brands). We are currently evaluating the impact on our financial statements and disclosures. Disclosures about Postretirement Benefit Plans In December 2008, the FASB amended the existing authoritative guidance on employers disclosures about postretirement benefit plan assets (ASC 715). The amendment is effective for fiscal years ending after December15, 2009 (calendar year-end 2009 for Fortune Brands). Additional disclosure relating to plan assets will be presented in our 2009 Annual Report on Form 10-K. Business Combinations On January1, 2009, we adopted the revised authoritative guidance for business combinations (ASC 805), which establishes principles and requirements for how an acquirer, a) recognizes and measures the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree, b) recognizes and measures the goodwill acquired, and c) determines what information to disclose. All acquisition-related costs, including restructuring, are required to be recognized separately from the acquisition. This guidance eliminates adjustments to goodwill for uncertain tax positions after the acquisition accounting measurement period (limited to one yea

3.Acquisition

3.Acquisition
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3.Acquisition	3. Acquisition In June 2009, the Spirits business acquired the EFFEN super-premium vodka brand and related assets from the Sazerac Company, Inc. In conjunction with this transaction, we sold the Old Taylor whiskey brand and assets to Sazerac Company, Inc. The acquisition has been included in our consolidated results from the date of acquisition. The acquisition was not material for the purposes of supplemental disclosure in accordance with authoritative guidance on business combinations (ASC 805). The acquisition and divestiture did not have a material impact on our consolidated financial statements. Refer to Note 6, Related Parties, for information about the acquisition of international spirits sales and distribution companies. On September30, 2008, we acquired the premium Cruzan Rum business from Pernod Ricard S.A. (Pernod Ricard) for $100.0 million in cash. The acquisition was not material for the purposes of supplemental disclosure in accordance with authoritative guidance on business combinations.

4.Discontinued Operations

4.Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4.Discontinued Operations	4. Discontinued Operations In the third quarter of 2007, we sold the William Hill and Canyon Road wine brands and related assets to E. J. Gallo Winery. In December 2007, we sold the remaining U.S. wine assets to Constellation Brands, Inc. for $887.0 million. The statement of income for the nine and three months ended September30, 2008 reflected our U.S. Wine business as a discontinued operation. The following table summarizes the results of the discontinued operations for the nine and three months ended September30, 2008. There was no income statement impact from discontinued operations for the nine and three months ended September30, 2009. (inmillions) NineMonthsEnded September30, 2008 ThreeMonthsEnded September30, 2008 Net sales $ $ Income from discontinued operations before income taxes $ 4.0 $ Income tax benefits (148.5 ) (30.2 ) Income from discontinued operations, net of income taxes $ 152.5 $ 30.2 In the three months ended September30, 2008, we recorded a $30.2 million tax benefit related to finalization of the tax accounting for the sale of the U.S. Wine business to Constellation Brands in 2007. The benefit primarily resulted from the final determination of the tax gain as capital in nature, enabling us to utilize additional capital loss carryforwards from our 2001-2002 tax years. For the nine months ended September30, 2008, we recorded a net income benefit of $152.5 million. This included pre-tax income of $4.0 million from the settlement of outstanding working capital claims related to the sale of the U.S. Wine business in December 2007 (after tax $2.5 million). We also recorded a $43.1 million tax benefit related to finalization of the tax accounting for the sale of the U.S. Wine business. In addition, income taxes were favorably impacted by tax credits associated with the conclusion of our 2004-2005 federal income tax audit that pertained to other discontinued operations. In the second quarter of 2008, the Congressional Joint Committee on Taxation completed its review of a tax refund associated with a capital loss carry forward item that was favorably resolved in an IRS administrative proceeding relating to our 2001-2002 federal tax returns. As a result, the final settlement of the audit of our 2001-2002 federal tax returns removed uncertainty relating to the utilization of a capital loss carry forward, and we recorded a $98.0 million tax benefit related to a capital loss carry forward position associated with the sale of the U.S. Wine business.

5.Goodwill and Other Identifiab

5.Goodwill and Other Identifiable Intangible Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5.Goodwill and Other Identifiable Intangible Assets	5. Goodwill and Other Identifiable Intangible Assets We had goodwill of $3,588.1 million as of September30, 2009. The increase in goodwill of $16.3 million during the nine months ended September30, 2009 compared to December31, 2008 was due to foreign currency translation adjustments ($47.8 million), partly offset by acquisition-related adjustments related to EFFEN vodka acquired in June 2009, Cruzan rum acquired in September 2008, and certain subsidiaries of Maxxium Worldwide B.V. (Maxxium) acquired in April 2009, as well as adjustments to deferred tax liabilities of entities acquired in prior periods. See Note 6 for additional information on the acquisition of Maxxium subsidiaries. The change in the net carrying amount of goodwill by segment was as follows: (in millions) Spirits Homeand Hardware Golf Total goodwill Balance at December31, 2008 Goodwill $ 2,098.2 $ 1,913.1 $ 11.8 $ 4,023.1 Accumulated impairment losses (451.3 ) (451.3 ) Total goodwill, net $ 2,098.2 $ 1,461.8 $ 11.8 $ 3,571.8 Translation adjustments 41.4 6.4 47.8 Acquisition-related adjustments (15.5 ) (16.0 ) (31.5 ) Balance at September30, 2009 Goodwill $ 2,124.1 $ 1,903.5 $ 11.8 $ 4,039.4 Accumulated impairment losses (451.3 ) (451.3 ) Total goodwill, net $ 2,124.1 $ 1,452.2 $ 11.8 $ 3,588.1 We also had indefinite-lived intangible assets, principally tradenames, of $2,699.9 million and $2,682.4million as of September30, 2009 and December31, 2008, respectively. The increase of $17.5 million was due to changes in foreign currency translation adjustments, partly offset by the reclassification of a tradename from an indefinite-lived to amortizable intangible asset. Amortizable identifiable intangible assets, principally tradenames, are subject to amortization over their estimated useful life, 5 to 30years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, financial results and other relevant factors. The gross carrying value and accumulated amortization by class of intangible assets as of September30, 2009 and December31, 2008 are as follows: (in millions) As of September30, 2009 As of December31, 2008 Gross Carrying Amounts Accumulated Amortization Net Book Value Gross Carrying Amounts Accumulated Amortization Net Book Value Indefinite-lived tradenames $ 2,771.9 $ (72.0 )(1) $ 2,699.9 $ 2,754.4 $ (72.0 )(1) $ 2,682.4 Amortizable intangible assets Tradenames 577.6 (175.8 ) 401.8 505.5 (161.2 ) 344.3 Customer and contractual relationships 273.4 (136.9 )

6.Related Parties

6.Related Parties
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6.Related Parties	6. Related Parties Future BrandsLLC In May2001, the Spirits business completed transactions with VS Group (VS) creating a joint venture named Future BrandsLLC (Future Brands) to distribute, over an initial ten-year period, both companies spirits brands in the UnitedStates and provide related selling and invoicing services. Beam Global Spirits Wine,Inc. (BGSW or the Spirits business) accounted for this joint venture using the equity method of accounting. VS paid $270million to gain access to our Spirits businesss U.S.distribution network and to acquire an equity interest in Future Brands. We accounted for the $270million gain on the sale of our equity interest in Future Brands as deferred income due to certain continuing obligations of Jim Beam Brands Co., including, but not limited to, making payments to suppliers, employees and other parties with which Future Brands has contracts in the event of a default of Future Brands. In June2001, we began amortizing these amounts to Other expense, net, and income taxes on a straight-line basis over the initial term of the agreement. As the Future Brands joint venture was a cost sharing initiative and was considered integral to our operations, we classified the equity earnings in advertising, selling, general and administrative expense. On September30, 2008, we closed on a transaction that resulted in the early termination, as of September30, 2008, of the U.S. distribution agreement between BGSW and the U.S. business of VS recently acquired by Pernod Ricard. Under the agreement, Pernod Ricard paid Fortune Brands $230.0 million in cash in exchange for early termination of the distribution agreement, which was recorded in Other income, net, in the statement of income and we recognized the balance of unamortized deferred income of $72.0 million resulting from the initial payment in 2001 from VS to establish the U.S. distribution joint venture (total $302.0 million pre-tax and $187.3 million after tax in the three and nine months ended September30, 2008). The deferred gain was recognized as income because our obligations to our joint venture partner, VS, to financially and operationally support the joint venture ceased when we redeemed VSs shares in Future Brands. As a part of the early termination of the U.S. distribution agreement, BGSW redeemed the interest in Future Brands held by VS. Future Brands was consolidated as of September30, 2008 and did not have a material impact on the financial statements. The Edrington Alliance and Maxxium WorldwideB.V. Prior to March30, 2009, BGSW owned a 25% interest in the Maxxium international spirits sales and distribution joint venture. The other equal partners in Maxxium were Rmy Cointreau S.A. (Rmy), VS and The Edrington Group Ltd. (TEG). In accordance with a Settlement Agreement executed in September 2008, on March30, 2009, Rmy and VS exited the joint venture and BGSW became a 50% owner of Maxxium with TEG. BGSW and TEG are facilitating an orderly transition or winding down of Maxxium operations, which is now substantially complete. We account for Maxxium using the equity method. From April 2009 through September30, 2009, we received dividend

7.Income Taxes

7.Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7.Income Taxes	7. Income Taxes The effective income tax rate for the nine months ended September30, 2009 and 2008 was 19.0% and 33.2%, respectively. The 2009 effective tax rate was favorably impacted by higher tax benefits from restructuring and restructuring-related charges relative to lower taxed income before these charges. In addition, the effective tax rate was favorably impacted by a higher proportion of foreign income in 2009, which is taxed at a lower rate relative to U.S. income. The 2009 income tax rate was also favorably impacted by annual true-up adjustments related to tax returns filed in the current period. The 2009 income tax rate was unfavorablyimpacted by net taxexpenseof $8.5 millionrelated to prior perioditems. The 2008 effective income tax rate was favorably impacted by a $98.4 million tax benefit related to final settlement of the federal income tax audit related to our 2001 2002 federal tax returns and tax credits associated with the conclusion of our 2004 2005 federal tax audit. The 2008 effective income tax rate was unfavorably impacted by the absence of a tax benefit on goodwill impairment charges of $288.9 million and a $50.5 million write-down in our Maxxium joint venture. The effective income tax rate for the three months ended September30, 2009 and 2008 was 19.9% and 35.7%, respectively. The 2009 effective tax rate was favorably impacted by a higher proportion of foreign income in 2009, which is taxed at a lower rate relative to U.S. income. The 2009 income tax rate was also favorably impacted by annual true-up adjustments related to tax returns filed in the current period. The 2008 effective rate was unfavorably impacted by the absence of a tax benefit on a $25.4 million write-down of our investment in the Maxxium joint venture and higher taxed income associated with the termination of the Spirits businesss U.S. distribution agreement. In the third quarter of 2009, we determined that approximately $524 million of foreign subsidiary earnings were no longer considered permanently reinvested.Current and deferred taxes associated with these earnings were recorded and were not material. It is reasonably possible that, within the next 12 months, total unrecognized tax benefits may decrease in the range of $5 to $100 million primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

8.Information on Business Segme

8.Information on Business Segments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8.Information on Business Segments	8. Information on Business Segments Net sales and operating income (loss) for the nine months ended September30, 2009 and 2008 by segment were as follows: Nine Months Ended September30, (in millions) 2009 2008 %Change vs.PriorYear Net Sales Spirits $ 1,723.2 $ 1,759.5 (2.1 )% Home and Hardware 2,183.0 2,907.1 (24.9 ) Golf 991.4 1,156.7 (14.3 ) Net Sales $ 4,897.6 $ 5,823.3 (15.9 )% Operating Income (Loss) Spirits $ 414.3 $ 417.6 (0.8 )% Home and Hardware 51.9 (45.9 ) Golf 62.3 143.6 (56.6 ) Corporate expenses (70.6 ) (49.3 ) (43.2 ) Operating Income $ 457.9 $ 466.0 (1.7 )% Net sales and operating income for the three months ended September30, 2009 and 2008 by segment were as follows: Three Months Ended September30, (in millions) 2009 2008 %Change vs.PriorYear Net Sales Spirits $ 636.9 $ 636.3 0.1 % Home and Hardware 802.4 977.6 (17.9 ) Golf 278.6 307.9 (9.5 ) Net Sales $ 1,717.9 $ 1,921.8 (10.6 )% Operating Income Spirits $ 145.4 $ 150.4 (3.3 )% Home and Hardware 70.8 95.9 (26.2 ) Golf 9.7 24.0 (59.6 ) Corporate expenses (21.4 ) (15.5 ) (38.1 ) Operating Income $ 204.5 $ 254.8 (19.7 )%

9.Earnings Per Share

9.Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9.Earnings Per Share	9. Earnings Per Share The computation of basic and diluted earnings per common share (EPS) is as follows: (in millions, except for per share amounts) NineMonthsEnded September30, ThreeMonthsEnded September30, 2009 2008 2009 2008 Income from continuing operations $ 231.3 $ 439.9 $ 124.1 $ 305.7 Income from discontinued operations 152.5 30.2 Net income attributable to Fortune Brands 231.3 592.4 124.1 335.9 Less: Preferred stock dividends 0.4 0.4 0.1 0.1 Income attributable to Fortune Brands common stockholders basic 230.9 592.0 124.0 335.8 Convertible Preferred stock dividends 0.4 0.4 0.1 0.1 Income attributable to Fortune Brands common stockholders diluted $ 231.3 $ 592.4 $ 124.1 $ 335.9 Weighted average number of common shares outstanding basic 150.2 152.3 150.3 150.0 Conversion of Convertible Preferred stock 1.2 1.2 1.2 1.2 Exercise of stock options 0.3 1.0 0.5 0.7 Weighted average number of common shares outstanding diluted 151.7 154.5 152.0 151.9 Earnings per common share Basic Continuing operations $ 1.54 $ 2.89 $ 0.82 $ 2.04 Discontinued operations 1.00 0.20 Net income attributable to Fortune Brands $ 1.54 $ 3.89 $ 0.82 $ 2.24 Diluted Continuing operations $ 1.53 $ 2.85 $ 0.82 $ 2.01 Discontinued operations 0.98 0.20 Net income attributable to Fortune Brands $ 1.53 $ 3.83 $ 0.82 $ 2.21 For the nine and three months ended September30, 2009 and 2008, certain stock options were excluded from the calculation of weighted average shares for diluted EPS if they were antidilutive (the exercise price exceeded the average stock price). These excluded stock options were approximately 13.3million and 8.7million shares for the nine months ended September30, 2009 and 2008, respectively. These excluded stock options were approximately 13.0million and 8.6million shares for the three months ended September30, 2009 and 2008, respectively.

10.Pension and Other Retiree Be

10.Pension and Other Retiree Benefits
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10.Pension and Other Retiree Benefits	10. Pension and Other Retiree Benefits The components of net periodic benefit cost for pension and postretirement benefits for the nine months ended September30, 2009 and 2008 were as follows: Nine Months Ended September30, Pension Benefits PostretirementBenefits (in millions) 2009 2008 2009 2008 Service cost $ 20.9 $ 22.8 $ 1.8 $ 2.3 Interest cost 47.3 43.4 6.0 6.9 Expected return on plan assets (56.0 ) (51.7 ) Amortization of prior service cost (credit) 1.9 2.1 (0.8 ) (0.8 ) Amortization of net losses (gains) 10.4 6.1 (1.0 ) 0.2 Curtailment and settlement losses (gains) 8.3 2.2 (0.1 ) Net periodic benefit cost $ 32.8 $ 24.9 $ 5.9 $ 8.6 Curtailment losses related to the downsizing or closure of facilities in the Home and Hardware and Golf businesses. Settlement losses related to the retirement of an executive officer. The components of net periodic benefit cost for pension and postretirement benefits for the three months ended September30, 2009 and 2008 were as follows: Three Months Ended September30, PensionBenefits PostretirementBenefits (in millions) 2009 2008 2009 2008 Service cost $ 7.2 $ 7.1 $ 0.6 $ 0.7 Interest cost 16.0 14.6 2.0 2.4 Expected return on plan assets (18.3 ) (17.0 ) Amortization of prior service cost (credit) 0.6 0.9 (0.3 ) (0.2 ) Amortization of net losses (gains) 3.8 2.4 (0.3 ) Curtailment and settlement losses 2.2 0.1 Net periodic benefit cost $ 9.3 $ 10.2 $ 2.0 $ 3.0

11.Long-Term Debt

11.Long-Term Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11.Long-Term Debt	11. Long-Term Debt In June 2009, we issued long-term debt securities of $500 million under our shelf registration statement filed with the Securities and Exchange Commission. The 63/8% Notes will mature in June 2014. Proceeds were used to pay down balances on our revolving credit facility. Net proceeds of $496.7 million are less price discounts of $0.3 million and underwriting fees of $3.0 million. In January 2009, we borrowed on our $400 million three-year term loan that matures in October 2011, to repay a 300million note (approximately $394 million) that was due January30, 2009. The interest rate under this term loan is variable based on U.S. LIBOR at the time of the borrowing and the Companys long-term credit rating.

12.Fair Value Measurements

12.Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12.Fair Value Measurements	12. Fair Value Measurements On January1, 2008, we adopted the authoritative guidance on fair value measurement (ASC 820), which defines fair value, establishes a framework for measuring fair value and expands disclosures about assets and liabilities measured at fair value. The guidance established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs, due to little or no market activity for the asset or liability, such as internally-developed valuation models. As permitted under this guidance, on January1, 2009, we adopted the nonrecurring fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets. The impact of adoption of this guidance was not material. Assets and liabilities measured at fair value on a recurring basis as of September30, 2009 and December31, 2008 were as follows: (in millions) Fair Value Using Significant Other Observable Inputs (Level 2) September 30, 2009 December 31, 2008 Assets Derivative financial instruments $ 28.0 $ 49.0 Deferred compensation program assets 45.5 50.4 Total assets $ 73.5 $ 99.4 Liabilities Derivative financial instruments $ 24.0 $ 18.0 Deferred compensation program liabilities 45.5 50.4 Total liabilities $ 69.5 $ 68.4

13.Financial Instruments

13.Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13.Financial Instruments	13. Financial Instruments Derivative financial instruments are either foreign exchange contracts recorded at fair value to hedge currency fluctuations for transactions denominated in foreign currencies, interest rate swaps or commodity swaps of forecasted commodity purchases. Deferred compensation programs assets and liabilities are for programs where select employees can defer compensation until death, disability or other termination of employment. On January1, 2009, we adopted the amendment on existing authoritative guidance on disclosures about derivatives and hedging (ASC 815). This guidance established the disclosure requirements for derivative financial instruments and for hedging activities in order to provide users of financial statements with an enhanced understanding of a) how and why derivatives are used, b) how derivative financial instruments and related hedged items are accounted for, and c) how they affect financial position, financial performance and cash flows. We do not enter into financial instruments for trading or speculative purposes. Financial instruments are principally used to reduce the impact of changes in foreign currency exchange rates, interest rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into interest rate swaps and commodity swaps. We enter into commodity swaps to manage the price risk associated with forecasted purchase of materials used in our operations. We account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. There were no material commodity swaps outstanding as of September30, 2009. In the second quarter of 2009, we entered into fixed to floating interest rate swaps with an aggregate notional principal amount of $500 million. The swap agreements hedge changes in the fair value of a portion of our existing fixed rate debt that result from changes in a benchmark interest rate (U.S. LIBOR). The swaps were designated and are classified as fair value hedges in accordance with the authoritative guidance on derivatives and hedging (ASC 815). We enter into foreign exchange contracts primarily to hedge forecasted sales and purchases denominated in select foreign currencies, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange contracts correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. We also enter into foreign exchange contracts to hedge our risk to changes in the fair value of recognized foreign currency denominated assets and liabilities and to hedge a portion of our net investments in certain foreign subsidiaries. The effective portions of cash flow hedges are reported in other comprehensive income and are recognized in the statement of income when the hedged item affects earnings. The ineffective portion of all hedges is recogn

14.Guarantees and Commitments

14.Guarantees and Commitments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14.Guarantees and Commitments	14. Guarantees and Commitments As of March31, 2009, we terminated our guarantees related to the debt of Maxxium Worldwide B.V., our Spirits businesss former international sales and distribution joint venture. Since April1, 2009, we have been providing similar guarantees of 50% of the credit facilities of Maxxium Espaa S.L., reflecting our ownership in the joint venture with TEG. Guarantees of the credit facilities of the new joint venture entities in the alliance with TEG are not material. We also guaranteed various leases for ACCO World Corporation, the Office business divested in a spin-off in 2005. We will continue to guarantee payment of certain real estate leases, with lease payments totaling approximately $24.3 million, through April 2013. Accordingly, we have recorded the fair value of these guarantees of $0.5 million as of September30, 2009 as a liability on our financial statements. We have provided typical indemnities in connection with divestitures. These indemnities relate to various representations generally included in divestiture agreements, such as environmental, tax, product liability, employee liability and other contingencies, depending on the transactions. In several of these divestitures, a maximum obligation for certain contingencies is not specified, which is not unusual for these transactions. We cannot reasonably estimate potential payments under these divestiture-related indemnity obligations. The indemnities vary in duration, and in some cases the durations are indefinite. Because authoritative guidance on guarantees was effective after December31, 2002, we did not record any liabilities in the consolidated financial statements for indemnities entered into prior to that date. We have not made any indemnity payments that were material to our financial position or results of operations for any quarter. Furthermore, we do not expect that any potential payments in connection with any of these indemnity obligations would have a material adverse effect on our consolidated financial position, results of operations or liquidity for 2009 or in future periods.

15.Restructuring and Restructur

15.Restructuring and Restructuring-Related Charges
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15.Restructuring and Restructuring-Related Charges	15. Restructuring and Restructuring-Related Charges Pre-tax restructuring and restructuring-related charges for the nine months ended September30, 2009 and 2008 are shown below. (in millions) Nine Months Ended September30, 2009 Restructuring Charges Restructuring-Related Total Charges CostofSales GA(1) Spirits $ 4.9 $ 0.6 $ 1.9 $ 7.4 Home and Hardware 16.8 23.6 3.2 43.6 Golf 21.8 1.3 1.5 24.6 Corporate 3.7 3.7 $ 47.2 $ 25.5 $ 6.6 $ 79.3 (in millions) Nine Months Ended September30, 2008 Restructuring Charges Restructuring-Related Total Charges CostofSales GA(1) Spirits $ 22.1 $ $ 11.9 $ 34.0 Home and Hardware 19.0 3.7 5.7 28.4 $ 41.1 $ 3.7 $ 17.6 $ 62.4 Pre-tax restructuring and restructuring-related charges for the three months ended September30, 2009 and 2008 are shown below. (in millions) Three Months Ended September30, 2009 Restructuring Charges Restructuring-Related Total Charges CostofSales GA(1) Spirits $ 0.6 $ $ 3.2 $ 3.8 Home and Hardware 0.8 0.9 2.2 3.9 Golf 0.1 (0.2 ) 0.5 0.4 $ 1.5 $ 0.7 $ 5.9 $ 8.1 (in millions) Three Months Ended September30, 2008 Restructuring Charges Restructuring-Related Total Charges CostofSales GA(1) Spirits $ 18.2 $ $ 3.8 $ 22.0 Home and Hardware 12.8 1.1 2.0 15.9 $ 31.0 $ 1.1 $ 5.8 $ 37.9 (1) General and administrative expenses Spirits restructuring and restructuring-related charges in 2009 of $7.4 million primarily related to our business repositioning, including strategic route-to-market initiatives in the U.S. and international markets, and supply chain activities. Home and Hardware charges were primarily due to supply chain realignment, and capacity and cost reduction initiatives, including the announced closure of seven additional U.S. manufacturing facilities, as well as workforce and shift reductions. For the nine months ended September30, 2009, Home and Hardware restructuring charges of $16.8 million primarily consisted of $9.0 million for workforce reductions, $4.4 million for fixed assets write-downs, and $3.4 million for lease contract termination and other costs. Home and Hardware restructuring-related charges consisted primarily of accelerated depreciation associated with facilities being closed. Golf restructuring charges of $21.8 million for the nine months ended September30, 2009 were primarily due to a company-wide workforce reduction ($20.5 million) and the closure of a shoe manufacturing facility ($1.3 million). Golf restructuring-related charges were primarily associated with discontinuance of a product line. Corporate charges related to costs incurred with the disposal of fixed assets. Spirits restructuring charges for th

16.Accumulated Other Comprehens

16.Accumulated Other Comprehensive Income (Loss)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16.Accumulated Other Comprehensive Income (Loss)	16. Accumulated Other Comprehensive Income (Loss) Total accumulated other comprehensive income (loss) consists of net income and other changes in stockholders equity from transactions and other events from sources other than stockholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, deferred net gains on treasury rate locks, and amortization of unrecognized net periodic pension and postretirement cost. Included in the foreign currency adjustments balance at September30, 2009 were losses of $16.7 million related to the cash flow hedging of forecasted transactions denominated in foreign currencies. Total comprehensive income attributable to Fortune Brands for the three months ended September30, 2009 and 2008 is shown below. ThreeMonthsEndedSeptember30, (inmillions) 2009 2008 Net income attributable to Fortune Brands $ 124.1 $ 335.9 Translation adjustments, net of effect of hedging 65.3 (297.5 ) Pension and postretirement benefit adjustments 2.3 0.7 Total comprehensive income 191.7 39.1 Comprehensive income attributable to noncontrolling interests 1.1 1.2 (1) Comprehensive income attributable to Fortune Brands $ 192.8 $ 40.3 (1) 2008 net income on the condensed consolidated statement of stockholders equity includes $72.1 million of income from noncontrolling interests that was repurchased on September30, 2008 and was classified on the balance sheet in mezzanine equity until repurchased.

17.Pending Litigation

17.Pending Litigation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
17.Pending Litigation	17. Pending Litigation Tobacco Litigation and Indemnification On December22, 1994, we sold The American Tobacco Company (ATCO) subsidiary to Brown Williamson Tobacco Corporation (BW), at the time a wholly-owned subsidiary of B.A.T. Industries p.l.c. In connection with the sale, BW and ATCO, which subsequently merged into BW, agreed, under an Indemnification Agreement (theIndemnification Agreement), to indemnify Fortune Brands,Inc. against claims including legal expenses arising from smoking and health and fire safe cigarette matters relating to the tobacco business ofATCO. On July30, 2004, BW and R.J. Reynolds Tobacco Holdings,Inc. announced that they had completed the combination of their respective U.S.tobacco businesses, previously conducted by BW (andATCO) and R.J. Reynolds TobaccoCo., by forming a new combined company known as R.J. Reynolds Tobacco Company. As a result of the combination and in accordance with the Indemnification Agreement, the new R.J. Reynolds Tobacco Company has assumed the indemnification obligations under the Indemnification Agreement relating to the U.S.business previously conducted by BW (andATCO). BW has not been released from any of its obligations under the Indemnification Agreement. We refer to BW and the new R.J. Reynolds Tobacco Company as the Indemnitor under the Indemnification Agreement. The Indemnitor has complied with the terms of the Indemnification Agreement since 1994 and we are not aware of any inability on the part of the Indemnitor to satisfy its indemnity obligations. The Company is a defendant in a number of actions based upon allegations that human ailments have resulted from tobacco use. It is not possible to predict the outcome of the pending litigation, and, as with any litigation, it is possible that some of these actions could be decided unfavorably. We are unable to make a meaningful estimate of the amount or range of loss that could result from an unfavorable outcome of the pending litigation. However, we believe that there are a number of meritorious defenses to the pending actions, including the fact that the Company never made or sold tobacco, and these actions are being vigorously contested by the Indemnitor. We believe that the pending actions will not have a material adverse effect upon our results of operations, cash flows or financial condition because we believe we have meritorious defenses and the Company is indemnified under the Indemnification Agreement. Other Litigation On February9, 2006, Callaway Golf Company filed a lawsuit seeking unspecified damages against Acushnet Company in the United States District Court for the District of Delaware. Callaway alleged that Pro V1 golf balls then manufactured by Acushnet Company infringed four of Callaways patents. Acushnet stipulated to infringement and a jury trial on the validity of the patent claims asserted by Callaway was conducted in December 2007. The jury was provided evidence related to nine claims contained in the four patents and returned a mixed verdict, finding one claim invalid and eight claims valid. On November10, 2008, the trial court issued an order enjoining sales of all 2007 Pro V1 go

18.Environmental

18.Environmental
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
18.Environmental	18. Environmental We are subject to laws and regulations relating to the protection of the environment.It is not possible to quantify with certainty the potential impact of actions relating to environmental matters, particularly remediation and other compliance efforts that our subsidiaries may undertake in the future.In our opinion, however, compliance with current environmental protection laws (before taking into account estimated recoveries from third parties) will not have a material adverse effect upon our results of operations, cash flows or financial condition.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 31, 2009
Entity [Text Block]
Trading Symbol	FO
Entity Registrant Name	FORTUNE BRANDS INC
Entity Central Index Key	0000789073
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		150,342,365