Beam Therapeutics 10-K 24 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
NET SALES	6694.7	7608.9	8563.1
Cost of products sold	3550.5	4044.8	4564.6
Excise taxes on spirits	489.3	503.8	510.9
Advertising, selling, general and administrative expenses	1941.6	1997.8	2035.8
Amortization of intangible assets	33.7	49.6	47.6
Restructuring charges	81.9	81.8	73.5
Asset impairment charges	92.5	785.5	0
Gain on sale of The Dalmore Scotch Whisky assets	0	0	-45.6
OPERATING INCOME	505.2	145.6	1376.3
Interest expense	215.8	237.1	293.6
Other expense (income), net	6	-279.9	-37.5
Income from continuing operations before income taxes	283.4	188.4	1120.2
Income taxes	36.3	95.6	346.3
Income from continuing operations, net of tax	247.1	92.8	773.9
Income from discontinued operations, net of tax	0	152.5	13.1
Net income	247.1	245.3	787
Less: Noncontrolling interests	4.3	-65.8	24.4
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS	242.8	311.1	762.6
AMOUNTS ATTRIBUTABLE TO COMMON SHAREHOLDERS
Income from continuing operations, net of tax	242.8	158.6	749.5
Income from discontinued operations, net of tax	0	152.5	13.1
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS	242.8	311.1	762.6
Basic
Continuing operations	1.61	1.04	4.89
Discontinued operations	$0	1.01	0.09
Net income attributable to Fortune Brands common shareholders	1.61	2.05	4.98
Diluted
Continuing operations	1.6	1.03	4.79
Discontinued operations	$0	0.99	0.08
Net income attributable to Fortune Brands common shareholders	1.6	2.02	4.87
DIVIDENDS PAID PER COMMON SHARE	1.01	1.72	1.62
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	150.3	151.7	153.1
Diluted	151.8	153.7	156.5

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	417.2	163.3
Accounts receivable from customers less allowances for discounts, doubtful accounts and returns	906.7	856.4
Accounts receivable from related parties	42.3	62.1
Inventories
Maturing spirits	1,243	1128.1
Other raw materials, supplies and work in process	322.7	366.7
Finished products	450.9	480.6
Total inventories	2016.6	1975.4
Other current assets	488.9	410.9
TOTAL CURRENT ASSETS	3871.7	3468.1
Property, plant and equipment
Land and improvements	179.8	170.4
Buildings and improvements to leaseholds	810.4	812.3
Machinery and equipment	1980.2	1964.6
Construction in progress	89.2	76.6
Property, Plant and Equipment, Gross, Total	3059.6	3023.9
Less accumulated depreciation	1591.7	1,470
Property, plant and equipment, net	1467.9	1553.9
Goodwill resulting from business acquisitions	3576.5	3571.8
Other intangible assets, net of accumulated amortization	3188.4	3211.4
Investments in unconsolidated subsidiaries	49.8	55.1
Other assets	216.3	231.6
TOTAL ASSETS	12370.6	12091.9
Current liabilities
Notes payable to banks	51.3	31.6
Current portion of long-term debt	0	5
Accounts payable to vendors	440.6	350.6
Accounts payable to related parties	27.9	37.1
Other current liabilities	943.8	765.8
TOTAL CURRENT LIABILITIES	1463.6	1190.1
Long-term debt	4413.3	4688.6
Deferred income taxes	642.9	700
Accrued pension and postretirement benefits	451.3	442.2
Other non-current liabilities	293.8	371.4
TOTAL LIABILITIES	7264.9	7392.3
Fortune Brands stockholders' equity
$2.67 Convertible Preferred stock	5.2	5.5
Common stock, par value $3.125 per share, 234.9 shares issued	734	734
Paid-in capital	755.6	716.4
Accumulated other comprehensive income (loss)	-211.8	-478.4
Retained earnings	7135.4	7046.2
Treasury stock, at cost	(3,326)	-3337.7
Total Fortune Brands stockholders' equity	5092.4	4,686
Noncontrolling interests	13.3	13.6
TOTAL EQUITY	5105.7	4699.6
TOTAL LIABILITIES AND EQUITY	12370.6	12091.9

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions, except Per Share data	Dec. 31, 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 Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES
Net income	247.1	245.3	$787
Non-cash pre-tax (income) expense:
Depreciation	218.3	213.2	232.3
Amortization	36.4	52.3	48.1
Stock-based compensation	40.9	25.7	27.9
Restructuring charges	10.8	21.8	49.6
Deferred taxes	-57.6	-66.3	-140.2
Gain on dividend distribution from Maxxium	-12.5	0	0
Deferred income	0	-92.3	(27)
Gain on sale of discontinued operations	0	-129.6	-63.2
Gain on sale of The Dalmore Scotch Whisky assets	0	0	-45.6
Asset impairment charges	92.5	785.5	0
Maxxium investment impairment charges	0	50.5	0
Changes in assets and liabilities including effects subsequent to acquisitions:
Decrease in accounts receivable	134.5	124.3	36.1
Decrease (increase) in inventories	70	-58.1	-4.7
Increase (decrease) in accounts payable	54.3	-62.4	-6.2
(Decrease) increase in accrued taxes	-53.2	-117.1	189.2
Increase (decrease) in accrued expenses and other liabilities	14.7	-205.2	-90.5
Other operating activities, net	70.1	30	-27.5
NET CASH PROVIDED BY OPERATING ACTIVITIES	866.3	817.6	965.3
INVESTING ACTIVITIES
Capital expenditures	-157.5	-176.3	-267.1
Proceeds from the disposition of assets	15.9	19.2	69.3
Proceeds (settlement) from the sale of U.S. Wine business	0	-1.9	948.3
Acquisitions, net of cash acquired	-121.9	-105.4	-6.3
Return of investment in affiliates	58.4	0	0
Loans to affiliates	-8.1	-9.8	0
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	-213.2	-274.2	744.2
FINANCING ACTIVITIES
Increase (decrease) in short-term debt and commercial paper, net	11.1	(197)	-1559.1
Issuance of long-term debt	895.8	790	1
Repayment of long-term debt	-1194.3	-205.8	-4.7
Dividends to stockholders	-152.2	-261.2	-248.6
Cash purchases of common stock for treasury	0	-278.6	0
Proceeds received from exercise of stock options	6.9	21.5	80.8
Tax benefit on exercise of stock options	0.4	3.2	22.8
Redemption related to subsidiary preferred stock	0	(455)	0
Other financing activities, net	0	27.1	-5.2
NET CASH USED BY FINANCING ACTIVITIES	-432.3	-555.8	(1,713)
Effect of foreign exchange rate changes on cash	33.1	(28)	24.5
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	253.9	-40.4	21
Cash and cash equivalents at beginning of year	163.3	203.7	182.7
Cash and cash equivalents at end of year	417.2	163.3	203.7
Cash paid during the year for (including discontinued operations)
Interest	222.2	234.9	307.4
Income taxes	$77	147.6	313.3

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	$2.67 Convertible Preferred Stock	Common Stock	Paid-In Capital	Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock, At Cost	Non- controlling Interests		Total
Beginning Balance at Dec. 31, 2006	6.3	$734	615.7	37.9		6496.3		-3162.2	16.8		4744.8
Comprehensive income
Net income						762.6			7	[1]	769.6
Translation adjustments, net of tax benefit (expense) of $(5.2) in 2009, $(6.1) in 2008 and $60.0 in 2007				256.8							256.8
Derivative instruments, net of tax benefit (expense) of $1.8 in 2009, $(2.4) in 2008 and $(0.3) in 2007				1.3							1.3
Pension and postretirement benefit adjustments, net of tax benefit (expense) of $(12.7) in 2009, $105.0 in 2008 and $(15.8) in 2007				53.1							53.1
Total comprehensive income (loss)				311.2	[2]	762.6	[2]		7	[2]	1080.8	[2]
Dividends paid to noncontrolling interests									-8.2		-8.2
Adjustment to initially apply revised ASC 740 on unrecognized tax benefits						-3.6					-3.6
Dividends ($1.01 in 2009, $1.72 in 2008 and $1.62 in 2007 per Common share and $2.67 in 2009, 2008 and 2007 per Preferred share)						-248.6					-248.6
Stock-based compensation			46.5			-7.4		70.8			109.9
Tax benefit on exercise of stock options			26								26
Conversion of preferred stock	-0.6		-3.9					4.5			0
Ending Balance at Dec. 31, 2007	5.7	734	684.3	349.1		6999.3		-3086.9	15.6		5701.1
Comprehensive income
Net income						311.1			6.3	[1]	317.4
Translation adjustments, net of tax benefit (expense) of $(5.2) in 2009, $(6.1) in 2008 and $60.0 in 2007				-694.7							-694.7
Derivative instruments, net of tax benefit (expense) of $1.8 in 2009, $(2.4) in 2008 and $(0.3) in 2007				35							35
Pension and postretirement benefit adjustments, net of tax benefit (expense) of $(12.7) in 2009, $105.0 in 2008 and $(15.8) in 2007				-167.8							-167.8
Total comprehensive income (loss)				-827.5	[2]	311.1	[2]		6.3	[2]	-510.1	[2]
Dividends paid to noncontrolling interests									-8.3		-8.3
Dividends ($1.01 in 2009, $1.72 in 2008 and $1.62 in 2007 per Common share and $2.67 in 2009, 2008 and 2007 per Preferred share)						-261.2					-261.2
Treasury stock purchases								-278.6			-278.6
Stock-based compensation			30.3			(3)		25.6			52.9
Tax benefit on exercise of stock options			3.8								3.8
Conversion of preferred stock	-0.2		(2)					2.2			0
Ending Balance at Dec. 31, 2008	5.5	734	716.4	-478.4		7046.2		-3337.7	13.6		4699.6
Comprehensive income
Net income						242.8			4.3		247.1
Translation adjustments, net of tax benefit (expense) of $(5.2) in 2009, $(6.1) in 2008 and $60.0 in 2007				288.1							288.1
Derivative instruments, net of tax benefit (expense) of $1.8 in 2009, $(2.4) in 2008 and $(0.3) in 2007				-39.2							-39.2
Pension and postretirement benefit adjustments, net of tax benefit (expense) of $(12.7) in 2009, $105.0 in 2008 and $(15.8) in 2007				17.7							17.7
Total comprehensive income (loss)				266.6	[2]	242.8	[2]		4.3	[2]	513.7	[2]
Dividends paid to noncontrolling interests									-4.6		-4.6
Dividends ($1.01 in 2009, $1.72 in 2008 and $1.62 in 2007 per Common share and $2.67 in 2009, 2008 and 2007 per Preferred share)						-152.2					-152.2
Stock-based compensation			40.2			-1.4		9.7			48.5
Tax benefit on exercise of stock options			0.7								0.7
Conversion of preferred stock	-0.3		-1.7					2			0
Ending Balance at Dec. 31, 2009	5.2	$734	755.6	-211.8		7135.4		($3,326)	13.3		5105.7
[1]Net income in 2008 and 2007 on the consolidated statement of stockholders' equity includes $72.1 million and $17.4 million, respectively, of income from a noncontrolling interest that was repurchased September 30, 2008 and was classified on the balance sheet in mezzanine equity until repurchased.
[2]Total comprehensive income (loss) attributable to Fortune Brands was $509.4 million, $(516.4) million and $1,073.8 million for the years ended December 31, 2009, 2008 and 2007, respectively.

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Translation adjustments, tax benefit (expense)	5.2	6.1	$60
Derivative instruments, tax benefit (expense)	1.8	2.4	0.3
Pension and postretirement benefit adjustments, tax benefit (expense)	12.7	$105	15.8
Dividends, per Common share	1.01	1.72	1.62
Dividends, per Preferred share	2.67	2.67	2.67

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies	1.Significant Accounting Policies Basis of PresentationThe consolidated financial statements include the accounts of Fortune Brands,Inc. (after elimination of intercompany transactions), majority-owned subsidiaries and a subsidiary, Acushnet Lionscore Limited, in which it holds a noncontrolling interest but has substantive control as a result of the Company having operational decision-making powers over the entity. Certain of the Companys subsidiaries operate on a 52 or 53-week fiscal year. Subsequent events have been evaluated through February23, 2010, the date the financial statements were issued. In accordance with authoritative guidance on property, plant and equipment (ASC 360), the results of operations related to the 2007 sale of the U.S. Wine business were reclassified and separately stated as discontinued operations in the accompanying consolidated statements of income for the years ended December31, 2008 and 2007. The cash flows from discontinued operations for the years ending December31, 2008 and 2007 were not separately classified on the accompanying consolidated statements of cashflows. The consolidated financial statements were retrospectively adjusted for adoption of the authoritative guidance on noncontrolling interests, Accounting Standards Codification (ASC) 810. The presentation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates. Cash and Cash EquivalentsHighly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. Allowances for Doubtful AccountsTrade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers potential insolvency), or discounts related to early payment of accounts receivables by our customers. The allowances include amounts for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical experience and existing economic conditions. In accordance with this policy, our allowance for discounts, doubtful accounts and returns for continuing operations was $72.0 million and $57.5 million as of December31, 2009 and 2008, respectively. InventoriesThe first-in, first-out (FIFO) inventory method is our principal inventory method across allsegments. In accordance with generally recognized trade practice, maturing spirits inventories are classified as current assets, although the majority of these inventories ordinarily will not be sold within oneye

Asset Impairment Charges

Asset Impairment Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Impairment Charges	2. Asset Impairment Charges 2009 Impairment Charges The Spirits business had indefinite-lived tradenames with a book value of $1,905.4 million as of December31, 2009. In connection with our regular annual impairment testing in the fourth quarter of 2009, we recorded impairment charges of $92.5 million, primarily related to the indefinite-lived tradename for Sauza tequila, reducing the book value of the impaired brands to $782.8 million in aggregate. The Company remains confident in the long-term growth prospects for our Spirits brands; however, GAAP requires that indefinite-lived tradenames be valued based on their current fair value. The impairment charges were recorded to reflect a decline in the estimated fair value of these impaired tradenames below their book value in accordance with the requirements of ASC 350. Because these tradenames were acquired in 2005, their fair value more closely approximates their book value. For the impaired tradenames, we believe the current fair value has declined below book value primarily due to the combined effect of the current economic downturn on sales in key geographic markets, particularly Mexico and the U.S., and the expectation of more moderate market growth rates for the overall tequila spirits category for the foreseeable future. We estimate fair value using a standard relief-from-royalty method which estimates the present value of hypothetical royalty payments avoided due to ownership of the tradename. This method is consistent with the method we have employed in prior periods and the method employed to value the tradenames at the date of their original acquisition. In our methodology, the most important judgments and estimates that influence a tradenames fair value include the expected branded product sales included in our final 2010 to 2012 operating plans, longer-term market growth rates in particular spirits categories and geographies, expected profit margins on products sold using the brands, terminal value revenue growth rates, and the weighted average cost of capital. The Company has certain indefinite-lived tradenames in its Spirits business for which a more than 10% reduction in the fair value would trigger an impairment charge in future periods. These tradenames had an aggregate book value of $865.9 million as of December31, 2009. There were no goodwill or indefinite-lived tradename impairment charges recorded in the Home Security business in 2009. At December31, 2009, the Company had long-lived assets in its Home Security segment that totaled $2,900.3 million, including goodwill and indefinite-lived tradenames of $1,452.7 million and $662.6 million, respectively. The dollar amounts of goodwill and indefinite-lived tradenames associated with each of the reporting units within our Home Security segment as of December31, 2009 were as follows: ($ in millions) Reporting Unit Goodwill Indefinite-lived Tradename Cabinet products $ 490.3 $ 216.7 Faucet products 569.7 107.2 Entry door products 142.9 190.0 Window products 84.4 127.0 Storage and security products 165.4 21.7 T

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Identifiable Intangible Assets	3.Goodwill and Other Identifiable Intangible Assets The change in the net carrying amount of goodwill by segment was as follows: ($ in millions) Spirits HomeSecurity Golf TotalGoodwill Balance at December31, 2007 Goodwill $ 2,264.6 $ 1,920.1 $ 11.8 $ 4,196.5 Accumulated impairment losses Total goodwill, net $ 2,264.6 $ 1,920.1 $ 11.8 $ 4,196.5 2008 activity: Translation adjustments (193.2 ) (1.6 ) (194.8 ) Acquisition-related adjustments 26.8 (5.4 ) 21.4 Impairment charges (451.3 ) (451.3 ) 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 2009 activity: Translation adjustments 44.3 6.9 35.2 Acquisition-related adjustments (30.5 ) (16.0 ) (30.5 ) Balance at December31, 2009 Goodwill $ 2,112.0 $ 1,904.0 $ 11.8 $ 4,027.8 Accumulated impairment losses (451.3 ) (451.3 ) Total goodwill, net $ 2,112.0 $ 1,452.7 $ 11.8 $ 3,576.5 We also had indefinite-lived intangible assets, principally tradenames, of $2,623.1million as of December31, 2009 compared to $2,682.4million as of December31, 2008. The decrease of $59.3million was primarily due to impairment charges related to certain tradenames in the Spirits business and the reclassification of a tradename from an indefinite-lived to amortizable intangible asset, partly offset by foreign currency translation adjustments. Refer to Note 2, Asset Impairment Charges, for more information on the impairment charges in the Spirits business. Amortizable identifiable intangible assets, principally tradenames and customer relationships, 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 of amortizable intangible assets were $932.1million and $366.8million, respectively, as of December31, 2009, compared to $854.2million and $325.2million, respectively, as of December31, 2008. The gross carrying value increase of $77.9million was primarily due to changes in foreign currency translation adjustments and the reclassification of a tradename from an indefinite-lived to amortizable intangible asset. The gross carrying value and accumulated amortization by class of intangible assets as of December31, 2009 and 2008 were asfollo

Acquisitions and Disposals

Acquisitions and Disposals
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Disposals	4.Acquisitions and Disposals Acquisitions in 2009 In April 2009, we paid 49.9million (approximately $66.2 million, net of cash acquired) to purchase 100% interests in seven Maxxium Worldwide B.V. (Maxxium) subsidiaries. These acquisitions were accounted for using the purchase method in accordance with authoritative guidance on business combinations (ASC 805). In addition, we paid 30.9million (approximately $41.7 million) to acquire 50% ownership in five alliance joint venture entities. These entities are accounted for under the equity method. For additional information, refer to Note 6, Related Party Transactions. In June 2009, we 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. These acquisitions were included in our consolidated results from the dates of acquisition. The acquisitions were not material for the purposes of supplemental disclosure in accordance with authoritative guidance on business combinations (ASC 805). The acquisitions and divestiture did not have a material impact on our consolidated financial statements. Acquisition in 2008 On September30, 2008, we acquired the premium Cruzan rum business from Pernod Ricard S.A. (Pernod Ricard) for $103.2 million in cash. 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 did not have a material impact on our consolidated financial statements. Disposal in 2007 In December 2007, we sold the U.S. distribution rights and related assets to The Dalmore Scotch Whisky for $58 million. The sale resulted in a pre-tax gain of $45.6 million ($28.5 million after tax). Refer to Note 5, Discontinued Operations for information on the disposition of the U.S. Wine business.

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations	5.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. (Constellation Brands) for $887.0 million. The statements of income for the twelve months ended December31, 2008 and 2007 were adjusted to reflect our U.S. Wine business as a discontinued operation. Interest expense associated with the outstanding debt of Fortune Brands was allocated to discontinued operations assuming the discontinued operations had a debt to equity ratio consistent with the debt to equity ratio of Fortune Brands in accordance with the authoritative guidance on discontinued operations (ASC 205). The following table summarizes the results of the discontinued operations for the years ended December31, 2008 and 2007. There was no impact in 2009. For the Year ended December31, (Inmillions) 2008 2007 Net sales $ $ 239.2 Income from discontinued operations before income taxes $ 4.0 $ 84.7 Income tax (benefit) expense (148.5 ) 71.6 Income from discontinued operations, net of income taxes $ 152.5 $ 13.1 In 2008, we recorded net income of $152.5 million in discontinued operations. This included pre-tax income of $4.0 million (after tax $2.5 million) from the settlement of outstanding working capital claims related to the sale of the U.S. Wine business. 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 and tax credits associated with the conclusion of our 2004-2005 federal income tax audit that pertained to other discontinued operations. In addition, the Congressional Joint Committee on Taxation completed its review of a tax refund associated with a capital loss carryforward 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 carryforward, and we recorded a $98.0 million tax benefit ($98.7 million of unrecognized tax benefits less interest of $0.7 million) related to a capital loss carryforward position associated with the sale of the U.S. Wine business. The effective income tax rate in 2007 was impacted by taxes associated with the gain on the sale of the U.S. Wine business.

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions	6. Related Party Transactions The Edrington Alliance and Maxxium WorldwideB.V. Prior to April1, 2009, Beam Global Spirits Wine,Inc. (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), Vin Sprit Group (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 December31, 2009, we received dividend distributions from Maxxium totaling 42.9million (approximately $58.4 million). The current carrying value of our investment in Maxxium is zero. In the third quarter of 2009, we recorded a gain of $12.5 million representing dividend distributions in excess of our carrying value. In September 2008, BGSW and TEG entered into an agreement establishing an international distribution alliance that is a combination of jointly-owned and Company-owned sales forces in 24 markets. The distribution alliance provided that BGSW and TEG acquire all or portions of certain distribution companies wholly-owned by Maxxium. Operations under the new alliance began on April1, 2009. This alliance simplifies our international routes to market and gives us greater control over our distribution. The alliance provides that BGSW and TEG have joint 50-50 ownership of sales and distribution companies in certain markets and that BGSW wholly-owned or TEG wholly-owned distribution companies distribute both companies products and third party products in certain other markets. In April 2009, we paid 49.9million (approximately $66.2 million, net of cash acquired) to purchase 100% interests in seven Maxxium subsidiaries. These acquisitions were accounted for using the purchase method in accordance with authoritative guidance on business combinations (ASC 805). In addition, we paid 30.9million (approximately $41.7 million) to acquire 50% ownership in five alliance joint venture entities. These entities are accounted for under the equity method. The final purchase price allocation will be completed within the required measurement period after asset and liability valuations are finalized. Final adjustments may affect the fair value assigned to the assets, including intangible assets, and assumed liabilities. As of March31, 2009, we terminated our guarantees related to the debt of Maxxium. Since April1, 2009, we have been providing similar guarantees of 50% of the credit facilities of Maxxium Espaa S.L., in the amount of 11million (approximately $15.7 million), reflecting our ownership in the joint venture with TEG. As of December31, 2009, 6.5million (approximately $9.3 million) was outstanding. The liability related to these guarantees was not material. BGSW and TEG have also executed an uncommitted multi-currency Shareholder Loan Facility in the amount of 30million (approximately $42.9 million) for BGSW/TEG joint ven

Debt and Financing Arrangements

Debt and Financing Arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Financing Arrangements	7.Debt and Financing Arrangements At December31, 2009 and 2008, there were $51.3million and $31.6million of short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes, including acquisitions. Included in these amounts as of December31, 2009 and 2008 were $39.9 million and $17.8million outstanding under committed bank credit agreements, which provide for unsecured borrowings of up to $99.4million and $46.7million, respectively. In addition, at December31, 2009 and 2008, the Company had uncommitted bank lines of credit, which provide for unsecured borrowings for working capital, of up to $115.9 million, of which $11.4million was outstanding, and $121.7 million, of which $13.8million was outstanding, respectively. The weighted-average interest rates on these borrowings were 1.4%, 3.0% and 5.4%, respectively, in 2009, 2008 and 2007. The components of long-term debt were as follows: (Inmillions) 2009 2008 31/2% Notes, Due 2009 (300.0)(a) $ $ 419.4 $2 billion Revolving Credit Agreement, Due October 2010 790.0 51/8% Notes, Due January 2011 750.0 750.0 3% Notes, Due June 2012 400.0 4% Notes, Due 2013 (500.0) 715.6 699.1 47/8% Notes, Due 2013 300.0 300.0 63/8% Notes, Due 2014 500.0 53/8% Notes, Due 2016 950.0 950.0 85/8% Debentures, Due 2021 90.9 90.9 77/8% Debentures, Due 2023 150.0 150.0 65/8% Debentures, Due 2028 200.0 200.0 57/8% Notes, Due 2036 300.0 300.0 Miscellaneous 56.8 44.2 Total debt 4,413.3 4,693.6 Less current portion 5.0 Total long-term debt $ 4,413.3 $ 4,688.6 (a) Based on our intent and ability to refinance the 31/2% notes due 2009 on a long-term basis, it was classified as a long-term borrowing on the consolidated balance sheet as of December31, 2008. On February3, 2010, we executed a $750million, 3-year committed revolving credit agreement to be used for general corporate purposes. This credit facility replaced our existing $2.0billion, 5-year committed revolving credit agreement that had no balance outstanding as of December31, 2009. The interest rates under this credit facility are variable based on LIBOR at the time of the borrowing and the Companys long-term credit rating. The weighted-average interest rate on our revolving credit borrowings was 0.9% in 2009. The 2010 credit facility includes a minimum Consolidated Interest Coverage Ratio requirement of 3.0 to 1.0 through 2011 and 3.5 to 1.0 in 2012. The Consolidated Interest Coverage Ratio is defined as the ratio of adjusted EBITDA to Consolidated Interest Expense. Adjusted EBITDA is defined as consolidated net income before interest expense, income taxes, and depreciation and amortization of intangible assets, as well as noncash restructuring and nonrecurring charges, losses from asset impairments, and gains or losses resulting from the sale of assets not in the ordinary course of business. Consolidated Interest Expense is as disclosed in the financial stat

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments	8.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 program 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. Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. From time-to-time, we enter into commodity swaps to manage the price risk associated with forecasted 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 December31, 2009. In the fourth quarter of 2009, we entered into fixed to floating interest rate swaps with an aggregate notional principal amount of $400 million. In the second quarter of 2009, we entered into fixed to floating interest rate swaps with an aggregate notional principal amount of $500 million. Interest rate swaps outstanding at December31, 2009 had a notional value totaling $900 million. These 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 swap agreements were designated and classified as fair value hedges in accordance with the authoritative guidance on derivatives and hedging (ASC 815). In the second quarter of 2008, we entered into fixed to floating interest rate swaps with an aggregate notional principal amount of $400 million. In October 2008, we terminated and settled the 2008 interest rate swap agreements, and recorded a $15.6 million gain that is being amortized to income as a reduction of interest expense over the remaining life of the debt using the effective interest method. There were no interest rate swaps ou

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements	9.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 ASC 820, on January1, 2009, we adopted the fair value measurement disclosures for nonfinancial assets and liabilities, such as goodwill and indefinite-lived intangible assets. Assets and liabilities measured at fair value on a recurring basis as of December31, 2009 and December31, 2008 were as follows: (in millions) Fair Value Using SignificantOtherObservable Inputs (Level 2) December31, 2009 December31, 2008 Assets Derivative financial instruments $ 19.9 $ 49.0 Deferred compensation program assets 47.1 50.4 Total assets $ 67.0 $ 99.4 Liabilities Derivative financial instruments $ 22.2 $ 18.0 Deferred compensation program liabilities 47.1 50.4 Total liabilities $ 69.3 $ 68.4 Derivatives are either foreign exchange contracts recorded at fair value to hedge currency fluctuations for transactions denominated in foreign currency, interest rate swaps or commodity swaps of forecasted commodity purchases. Assets and liabilities for deferred compensation programs are for programs where select employees can defer compensation until death, disability or other termination of employment. Assets and liabilities measured at fair value using unobservable inputs require a significant degree of judgment and estimates regarding assumptions, including, but not limited to, projected future levels of income based on managements plans, as well as business trends, prospects, and market and economic conditions. As a result, changes to the fair values could have a material impact on results of operations and liquidity when realized. Below is a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December31, 2008. (in millions) FairValueMeasurementsUsingSignificant Unobservable Inputs(Level 3) NoncontrollingInterestintheSpiritsBusiness Beginning balance January1, 2008 $ 542.9 Unrealized gains included in earnings (87.9 ) Repurchase of the noncontrolling interest (455.0 ) Ending balance December31, 2008 $ At each reporting period prior to June30, 2008, we estimated the fair value of the noncontrolling interest

$2.67 Convertible Preferred Sto

$2.67 Convertible Preferred Stock - Redeemable at Company's Option
	12 Months Ended Dec. 31, 2009 USD / shares
$2.67 Convertible Preferred Stock - Redeemable at Company's Option	10.$2.67 Convertible Preferred Stock Redeemable at Companys Option We have 60million authorized shares of Preferred stock. There were 171,138 and 178,504 shares of the $2.67 Convertible Preferred stock issued and outstanding at December31, 2009 and 2008, respectively. Reacquired, redeemed or converted authorized shares that are not outstanding are required to be retired or restored to the status of authorized but unissued shares of preferred stock without series designation. The holders of $2.67 Convertible Preferred stock are entitled to cumulative dividends, three-tenths of a vote per share together with holders of common stock (incertain events, to the exclusion of the common shares), preference in liquidation over holders of common stock of $30.50 per share plus accrued dividends and to convert each share of Convertible Preferred stock into 6.601shares of common stock. Authorized but unissued common shares are reserved for issuance upon the conversions, but treasury shares may be and are delivered. Holders converted 7,366 and 8,843 shares during 2009 and 2008, respectively. The Company may redeem the Convertible Preferred stock at a price of $30.50 per share, plus accrued dividends. The Company paid cash dividends of $2.67 per share in the aggregate amount of $0.5 million in each of the years ended December31, 2009, 2008 and 2007.

Capital Stock

Capital Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Capital Stock	11.Capital Stock We have 750million authorized shares of common stock. The number of shares of common stock and treasury stock and the share activity were as follows: Common Shares Treasury Shares 2009 2008 2009 2008 Balance at the beginning of the year 150,101,919 153,913,500 84,775,617 80,964,036 Preferred stock conversion to common stock 48,609 58,326 (48,609 ) (58,326 ) Stock plan shares issued 305,577 666,198 (305,577 ) (666,198 ) Shares surrendered by optionees (3,131 ) (4,194 ) 3,131 4,194 Common stock repurchases (4,531,911 ) 4,531,911 Balance at the end of the year 150,452,974 150,101,919 84,424,562 84,775,617 The cash dividends paid on the common stock for the years ended December31, 2009, 2008 and 2007 aggregated $151.7 million, $260.7million and $248.1million, respectively. On February3, 2010, we made a voluntary contribution to our U.S. defined benefit pension plans of 1.56million shares of our common stock, held as treasury stock, with a fair value of $67.9 million.

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation	12.Stock-Based Compensation We use stock options, performance awards and restricted stock units (RSUs) to compensate key employees and stock awards to compensate outside directors. We had awards outstanding under three Long-Term Incentive Plans for employees and two for directors as of December31, 2009. Grants under the 2007 Long-Term Incentive Plan may be made on or before February27, 2017 for up to 13million shares. No new stock-based awards can be made under the 1999 and 2003 Long-Term Incentive Plans or the 1997 and 2002 Non-Employee Director Stock Option Plans, but there are existing awards under those plans that continue to beexercisable. Stock options have exercise prices equal to the fair value of a share of our common stock on the date of grant. Options generally may not be exercised prior to one year after the date of grant. Options issued prior to December2005 and after August 2009 generally expire ten years after the date of grant; options issued between December2005 and August 2009 expire seven years after the date of grant. Options issued generally vest one-third each year over a three-year period beginning on the first anniversary of the date ofgrant. The fair value of each option award was estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions shown in the following table: 2009 2008 2007 Current expected dividend yield 2.1% 3.1% 2.1% Expected volatility 33.3% 21.8% 18.5% Risk-free interest rate 2.1% 2.9% 4.2% Expected term 4.5years 4.5years 4.0years The determination of expected volatility is based on historical volatility of our stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S.government issues with a remaining term equal to the expected life of the stock options. The weighted average expected term was determined based on the historical employee exercise behavior and the contractual term of the options. The weighted-average grant date fair value of stock options granted during the twelve months ended December31, 2009, 2008 and 2007 was $10.81, $8.94 and $13.79, respectively. In the twelve months ended December31, 2009, we recognized pre-tax stock-based compensation expense for stock options in income from continuing operations of $23.4 million ($17.0 million after tax or $0.11 per basic and diluted share). In the twelve months ended December31 2008, we recognized pre-tax stock-based compensation expense for stock options in income from continuing operations of $23.3 million ($16.8 million after tax or $0.11 per basic and per diluted share). In the twelve months ended December31, 2007, we recognized pre-tax stock-based compensation expense for stock options in income from continuing operations of $29.1million ($20.3million after tax or $0.13 per basic and diluted share). Of the total pre-tax stock-based compensation expense, the amounts included in advertising, selling, general and administrative expenses in the consolidated statement of income were $20.8 million, $21.0 millio

Pension and Other Retiree Benef

Pension and Other Retiree Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Pension and Other Retiree Benefits	13.Pension and Other Retiree Benefits We have a number of pension plans, principally in the UnitedStates, covering many of the Companys employees. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65, and also for payment of certain disability and severance benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employees length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements aresatisfied. In addition, from time to time, we may make contributions in excess of the legal funding requirements. The Company provides postretirement health care and life insurance benefits to certain retirees. Many employees and retirees outside the UnitedStates are covered by government health careprograms. Obligations and Funded Status at December31 Pension Benefits Postretirement Benefits (Inmillions) 2009 2008 2009 2008 CHANGE IN PROJECTED BENEFIT OBLIGATION (PBO) Projected benefit obligation at beginning of year $ 1,004.8 $ 924.7 $ 150.5 $ 148.1 Service cost 27.1 30.1 2.3 3.0 Interest cost 63.1 58.2 8.1 9.2 Actuarial loss (gain) 75.6 21.0 (10.8 ) (0.9 ) Participants contributions 0.4 0.6 2.2 2.3 Foreign exchange rate changes 7.1 (18.5 ) Benefits paid (72.5 ) (50.2 ) (12.2 ) (12.1 ) Plan curtailment (gain) loss (3.8 ) 0.6 (0.1 ) (2.6 ) Plan amendments 0.1 4.5 (10.8 ) 1.7 Medicare Part D reimbursement 0.2 0.3 Impact of acquisitions, including consolidation of Future Brands 9.6 33.8 1.5 Projected benefit obligation at end of year $ 1,111.5 $ 1,004.8 $ 129.4 $ 150.5 Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) $ 1,002.5 $ 898.9 CHANGE IN PLAN ASSETS Fair value of plan assets at beginning of year $ 736.2 $ 849.1 $ $ Actual return on plan assets 125.1 (181.1 ) Employer contributions 26.4 114.5 9.8 9.5 Participants contributions 0.4 0.6 2.2 2.3 Medicare Part D reimbursement 0.2 0.3 Foreign exchange rate changes 6.1 (16.7 ) Benefits paid (72.5 ) (49.6 ) (12.2 ) (12.1 ) Impact of acquisitions, including consolidation of Future Brands 19.4 Fair value of plan assets at end of year 821.7 736.2 Funded Status (Fair value of plan assets less PBO) (289.8 ) (268.6 ) (129.4 ) (150.5 ) Amounts recognized in the balance sheet consist of:

Lease Commitments

Lease Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Lease Commitments	14.Lease Commitments Future minimum rental payments under non-cancelable operating leases as of December31,2009 were asfollows: (Inmillions) 2010 $ 56.0 2011 45.4 2012 32.6 2013 24.3 2014 20.0 Remainder 15.0 Total minimum rental payments 193.3 Less minimum rentals to be received under non-cancelable subleases 5.6 $ 187.7 Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $71.9million, $67.9million and $64.8million in 2009, 2008 and 2007, respectively.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	15.Income Taxes The components of income (loss) from continuing operations before income taxes were asfollows: (Inmillions) 2009 2008 2007 Domestic operations $ (46.7 ) $ (121.7 ) $ 687.0 Foreign operations 330.1 310.1 433.2 Income from continuing operations before income taxes and noncontrolling interests $ 283.4 $ 188.4 $ 1,120.2 A reconciliation of income taxes at the 35% federal statutory income tax rate to income taxes from continuing operations were asfollows: (Inmillions) 2009 2008 2007 Income taxes computed at federal statutory income tax rate $ 99.2 $ 65.9 $ 392.1 Other income taxes, net of federal tax benefit (0.5 ) 12.9 16.3 Foreign taxes at a different rate than U.S.federal statutory income tax rate (80.2 ) (64.4 ) (86.2 ) Goodwill impairment not deductible for tax purposes 158.0 Joint venture investment write-down not deductible for tax purposes 12.9 Tax benefit on income attributable to domestic production activities (8.4 ) (8.1 ) (12.7 ) Net adjustments for uncertain tax positions 18.1 (82.8 ) 18.7 Net effect of change in deferred taxes 1.7 1.0 (1.0 ) Prior period items 13.3 Miscellaneous other, net (6.9 ) 0.2 19.1 Income taxes from continuing operations as reported $ 36.3 $ 95.6 $ 346.3 The effective income tax rates for the twelve months ended December31, 2009 and 2008 were 12.8% and 50.7%, respectively. The 2009 effective tax rate was favorably impacted by higher 2009 restructuring and other charges in the U.S. taxed at a higher rate. 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 unfavorably impacted by net taxexpenseof $13.3 millionrelated tothe correction of prior yearitems. These prior year items, primarily related to goodwill tax benefits, net operating loss carryforwards, and certain deferred tax adjustments, were determined to be immaterial to the years to which they relate. The 2008 effective income tax rate was favorably impacted by a $98.4 million tax benefit related to the final settlement of the federal income tax audit related to our 2001-2002 federal tax returns, tax credits associated with the conclusion of our 2004-2005 federal tax audit, and non-goodwill impairment and restructuring charges benefited at higher U.S. tax rates. The 2008 effective income tax rate was unfavorably impacted by the absence of a tax benefit on goodwill impairment charges of $451.3 million and a $50.5 million write-down of our investment in the Maxxium joint venture, as well as income associated with the termination of the Spirits businesss U.S. distribution agreement at the highe

Detail of Other Current Liabili

Detail of Other Current Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Detail of Other Current Liabilities	16.Detail of Other Current Liabilities Detail of other current liabilities as of December31, 2009 and 2008 was as follows: (Inmillions) 2009 2008 Accrued taxes $ 159.4 $ 99.3 Accrued interest 86.7 103.9 Accrued customer programs 91.7 93.5 Accrued salaries, wages and other compensation 178.6 136.6 Accrued expenses and other current liabilities 427.4 332.5 Total other current liabilities $ 943.8 $ 765.8

Guarantees and Commitments

Guarantees and Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Guarantees and Commitments	17.Guarantees and Commitments As of March31, 2009, we terminated our guarantees related to the debt of Maxxium, 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., in the amount of 11million (approximately $15.7 million), reflecting our ownership in the joint venture with TEG. As of December31, 2009, 6.5million (approximately $9.3 million) was outstanding. The liability related to these guarantees was not material. BGSW and TEG have also executed an uncommitted multi-currency Shareholder Loan Facility in the amount of 30million (approximately $42.9 million) for BGSW/TEG joint ventures, of which our share is 50%. Our share of the outstanding balance as of December31, 2009 was 5million (approximately $8.1 million). 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 $22.6 million, through April 2013. Accordingly, we have recorded the fair value of these guarantees of $0.4 million as of December31, 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 2010 or in future periods. Purchase obligations by the Company as of December31, 2009 were: Payments Due by Period as of December31, 2009 (Inmillions) Total Less than 1year 1-3years 4-5years After 5years Purchase obligations(a) $ 827.5 $ 356.7 $ 178.6 $ 127.2 $ 165.0 (a) Purchase obligations include contracts for raw materials and finished goods purchases; advertising, selling and administrative services; and capital expenditures.

Restructuring and Other Charges

Restructuring and Other Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring and Other Charges	18.Restructuring and Other Charges Pre-tax restructuring and other charges for the twelve months ended December31, 2009 were: Twelve Months Ended December31, 2009 Other Charges(a) (inmillions) Restructuring Charges Cost of Products Sold ASGA(b) Total Charges Spirits $ 25.1 $ 0.6 $ 4.6 $ 30.3 Home Security 21.8 26.1 4.1 52.0 Golf 31.3 2.3 1.6 35.2 Corporate 3.7 3.7 $ 81.9 $ 29.0 $ 10.3 $ 121.2 (a) Other charges represent charges directly related to restructuring initiatives that cannot be reported as restructuring under U.S. GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines and accelerated depreciation resulting from the closure of facilities. (b) Advertising, selling, general and administrative expenses. Pre-tax restructuring charges in the Spirits business in 2009 of $25.1 million primarily related to our business repositioning, including strategic sales and distribution initiatives in international markets and U.S. supply chain activities, and consisted of $19.5 million for work force reductions and $5.6 million for contract termination costs and other costs. Spirits business other charges were primarily associated with the business repositioning, including the realignment of our U.S. business into fully integrated category business teams and a reduction of the number of our international regions from four to three. Home Security business restructuring and other charges of $52.0 million 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 reductions. Home Security restructuring charges of $21.8 million primarily consisted of $11.5 million for workforce reductions, $5.2 million for fixed assets write-downs, and $5.1 million for lease contract termination and other costs. Home Security other charges consisted primarily of accelerated depreciation associated with facilities being closed. Golf business restructuring charges of $31.3 million for the twelve months ended December31, 2009 were primarily due to a company-wide workforce reduction ($29.2 million) and the closure of a shoe manufacturing facility ($1.3 million). Golf other charges were primarily associated with the closure of the shoe manufacturing facility. Corporate charges related to the disposal of fixed assets. Pre-tax restructuring and other charges for the twelve months ended December31, 2008 were: Twelve Months Ended December31, 2008 Other Charges(a) (inmillions) Restructuring Charges Cost of Products Sold ASGA(b) Total Charges Spirits $ 32.3 $ 4.4 $ 26.9 $ 63.6 Home Security 49.5 9.1 (3.0 ) 55.6 $ 81.8 $ 13.5 $ 23.9 $ 119.2 (a) Other charges represent charges directly related to restructuring initi

Information on Business Segment

Information on Business Segments
	12 Months Ended Dec. 31, 2009 USD / shares
Information on Business Segments	19.Information on Business Segments We report our operating segments (Spirits, Home Security, and Golf) based on how we have organized our segments within the Company for making operating decisions and assessing performance based on the markets served. The Companys operating segments and types of products from which each segment derives revenues are described below: Spirits includes products made, marketed or distributed by Beam Global Spirits Wine,Inc. subsidiaries oraffiliates. Home Security includes: kitchen and bathroom faucets and accessories manufactured, marketed or distributed by Moen; kitchen and bath cabinetry manufactured, marketed and distributed by MasterBrand Cabinets; residential entry door and patio door systems designed and manufactured by Therma-Tru; vinyl-framed windows manufactured, marketed and distributed by Simonton; locks, tool storage and organization products manufactured, marketed or distributed by Storage and Security. Golf includes golf balls, golf clubs, golf shoes and gloves manufactured, marketed or distributed by Acushnet Company. The Companys subsidiaries operate principally in the UnitedStates, Canada, Europe (primarily in Spain, the UnitedKingdom andFrance), Australia and Mexico. (Inmillions) 2009 2008 2007 Net sales: Spirits $ 2,469.6 $ 2,480.9 $ 2,606.8 Home Security 3,006.8 3,759.1 4,550.9 Golf 1,218.3 1,368.9 1,405.4 Net sales $ 6,694.7 $ 7,608.9 $ 8,563.1 Operating income (loss): Spirits $ 484.7 $ 543.7 $ 766.7 Home Security 87.0 (465.6 ) 503.0 Golf 25.0 125.3 165.5 Less: Corporate expenses(a) (91.5 ) (57.8 ) (58.9 ) Operating income $ 505.2 $ 145.6 $ 1,376.3 Net sales by geographic region(b): UnitedStates $ 4,601.4 $ 5,312.2 $ 6,208.0 Canada 483.7 549.0 523.8 UnitedKingdom 239.2 435.6 504.7 Australia 276.8 258.4 280.5 Spain 178.9 156.5 189.5 Other countries 914.7 897.2 856.6 Net sales $ 6,694.7 $ 7,608.9 $ 8,563.1 Total assets: Spirits $ 7,482.7 $ 7,128.4 $ 7,855.6 Home Security 3,747.9 3,924.1 5,057.5 Golf 813.2 895.0 840.3 Corporate(c) 326.8 144.4 203.5 Total assets $ 12,370.6 $ 12,091.9 $ 13,956.9 (a) Corporate expenses include salaries, benefits and expenses related to Corporate office employees and functions that benefit all operating segments. Corporate expenses do not include expenses directly allocable to the reportable segments. Allocating these indirect expenses to operating segments would require an imprecise allocation methodology. There are no amounts that are the elimination or reversal of transactions between reportable segments. (b) Based on country of destination. (c) Corporate

Quarterly Financial Data

Quarterly Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Financial Data	20.Quarterly Financial Data Unaudited (Inmillions, except per share amounts) 2009 1st 2nd 3rd 4th Net sales $ 1,438.9 $ 1,740.8 $ 1,717.9 $ 1,797.1 Gross profit 550.9 702.4 699.2 702.4 Operating income 60.5 192.9 204.5 47.3 Net income 8.9 100.6 125.2 12.4 Net income attributable to Fortune Brands 7.4 99.8 124.1 11.5 Earnings per common share Basic $ 0.05 $ 0.66 $ 0.82 $ 0.08 Diluted $ 0.05 $ 0.66 $ 0.82 $ 0.08 2008 1st 2nd 3rd 4th Net sales $ 1,806.1 $ 2,095.4 $ 1,921.8 $ 1,785.6 Gross profit 733.3 867.0 792.8 667.2 Operating income (loss) 227.2 (16.0 ) 254.8 (320.4 ) Income (loss) from continuing operations 113.8 (49.5 ) 308.1 (279.6 ) Income from discontinued operations 12.9 109.4 30.2 Net income (loss) 126.7 59.9 338.3 (279.6 ) Net income (loss) attributable to Fortune Brands 120.5 136.0 335.9 (281.3 ) Earnings per common share Basic Income (loss) from continuing operations $ 0.70 $ 0.17 $ 2.04 $ (1.88 ) Net income (loss) attributable to Fortune Brands common shareholders $ 0.78 $ 0.89 $ 2.24 $ (1.88 ) Diluted Income (loss) from continuing operations $ 0.69 $ 0.17 $ 2.01 $ (1.88 ) Net income (loss) attributable to Fortune Brands common shareholders $ 0.77 $ 0.88 $ 2.21 $ (1.88 )

Other Expense

Other Expense (Income), net
	12 Months Ended Dec. 31, 2009 USD / shares
Other Expense (Income), net	21. Other Expense (Income), net The components of other expense (income), net, for the years ended December31, 2009, 2008 and 2007 were asfollows: (Inmillions) 2009 2008 2007 Maxxium distribution gain(a) $ (12.5 ) $ $ Amortization of deferred income(a) (20.3 ) (27.0 ) Early termination of Spirits businesss U.S. distribution agreement(a) (233.7 ) Acceleration of Future Brands unamortized deferred gain(a) (72.0 ) Maxxium investment impairment charges(a) 50.5 Foreign currency transaction losses 4.7 6.2 1.1 Other miscellaneous items 13.8 10.6 (11.6 ) Total other expense (income), net $ 6.0 $ (279.9 ) $ (37.5 ) (a) Refer to Note 6, Related Party Transactions, for additional information.

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share	22.Earnings Per Share Basic earnings per common share are based on the weighted-average number of common shares outstanding in each year and after preferred stock dividend requirements. Diluted earnings per common share assume that any convertible preferred shares outstanding at the beginning of each year were converted at those dates, with preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds exercise price, less shares that could have been purchased by the Company with related proceeds. The computations of basic and diluted earnings per common share were asfollows: (Inmillions) 2009 2008 2007 Income from continuing operations $ 242.8 $ 158.6 $ 749.5 Income from discontinued operations 152.5 13.1 Net income attributable to Fortune Brands 242.8 311.1 762.6 Less: Preferred stock dividends 0.5 0.5 0.5 Income available to Fortune Brands common stockholders basic 242.3 310.6 762.1 Convertible Preferred stock Dividend requirements 0.5 0.5 0.5 Income available to Fortune Brands common stockholders diluted $ 242.8 $ 311.1 $ 762.6 Weighted average number of common shares outstanding basic 150.3 151.7 153.1 Conversion of Convertible Preferred stock 1.2 1.2 1.2 Exercise of stock options 0.3 0.8 2.2 Weighted average number of common shares outstanding diluted 151.8 153.7 156.5 Earnings per common share Basic Continuing operations $ 1.61 $ 1.04 $ 4.89 Discontinued operations 1.01 0.09 Net income attributable to Fortune Brands common shareholders $ 1.61 $ 2.05 $ 4.98 Diluted Continuing operations $ 1.60 $ 1.03 $ 4.79 Discontinued operations 0.99 0.08 Net income attributable to Fortune Brands common shareholders $ 1.60 $ 2.02 $ 4.87 For the years ended December31, 2009, 2008 and 2007, stock-based awards were excluded from the calculation of weighted average shares for diluted EPS if they were antidilutive (exercise price exceeded the average stock price). These excluded stock-based awards were approximately 16.1million, 9.9million and 6.2million shares of weighted average shares outstanding, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income	23.Accumulated Other Comprehensive Income Total accumulated other comprehensive income 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, and pension and postretirement adjustments. The components of and changes in accumulated other comprehensive income were asfollows: (inmillions) Foreign Currency Adjustments Pension and Postretirement Adjustment Derivative Hedging Gain(Loss) Accumulated Other Comprehensive Income/(Loss) Balance at December31, 2006 208.9 (169.2 ) (1.8 ) 37.9 Changes during year 256.8 53.1 1.3 311.2 Balance at December31, 2007 465.7 (116.1 ) (0.5 ) 349.1 Changes during year (694.7 ) (167.8 ) 35.0 (827.5 ) Balance at December31, 2008 (229.0 ) (283.9 ) 34.5 (478.4 ) Changes during year 288.1 17.7 (39.2 ) 266.6 Balance at December31, 2009 $ 59.1 $ (266.2 ) $ (4.7 ) $ (211.8 ) The 2009 change in foreign currency adjustments and derivative hedging position were a result of weakening of the U.S dollar against most major currencies. The 2008 change in foreign currency adjustments and derivative hedging position were a result of strengthening of the U.S dollar against most major currencies. The 2008 change in the pension and postretirement adjustment was primarily a result of a decrease in the fair value of plan assets.

Pending Litigation

Pending Litigation
	12 Months Ended Dec. 31, 2009 USD / shares
Pending Litigation	24.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 golf balls as o

Environmental

Environmental
	12 Months Ended Dec. 31, 2009 USD / shares
Environmental	25.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 due to uncertainties about the status of laws, regulations, technology and information related to individual sites. We are involved in numerous remediation actions to clean up hazardous wastes as required by federal and state laws. Based on our evaluation of the cleanup cost estimates and the compliance programs, we do not believe there is a reasonable possibility that a material loss exceeding the amounts already recognized may have been incurred. Liabilities for remediation costs at each site are based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties.

Schedule II Valuation and Quali

Schedule II Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II Valuation and Qualifying Accounts	ScheduleII Valuation and Qualifying Accounts For the years ended December31, 2009, 2008 and 2007 FortuneBrands,Inc.andSubsidiaries Additions (Inmillions) Balance@ Beginning of Period Chargedto Expense Chargedto OtherAccounts(a) Write-offsand Deductions(b) Balance@ End of Period 2009: Allowance for cash discounts $ 4.9 $ 54.3 $ $ 54.3 $ 4.9 Allowance for returns 22.7 136.7 131.4 28.0 Allowance for doubtful accounts 29.9 23.2 0.6 14.6 39.1 $ 57.5 $ 214.2 $ 0.6 $ 200.3 $ 72.0 2008: Allowance for cash discounts $ 7.1 $ 60.4 $ $ 62.6 $ 4.9 Allowance for returns 18.5 166.2 162.0 22.7 Allowance for doubtful accounts 28.2 15.6 13.9 29.9 $ 53.8 $ 242.2 $ $ 238.5 $ 57.5 2007: Allowance for cash discounts $ 7.7 $ 80.9 $ $ 81.5 $ 7.1 Allowance for returns 21.9 146.2 149.6 18.5 Allowance for doubtful accounts 19.5 14.2 3.7 9.2 28.2 $ 49.1 $ 241.3 $ 3.7 $ 240.3 $ 53.8 (a) Balance at acquisition date of subsidiaries, net of dispositions. (b) Net of recoveries of amounts written off in prior years and immaterial foreign currency impact.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
In Hundreds, except Share data	12 Months Ended Dec. 31, 2009	Feb. 05, 2010	Jun. 30, 2009
Trading Symbol	FO
Entity Registrant Name	FORTUNE BRANDS INC
Entity Central Index Key	0000789073
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		151,977,804
Entity Public Float			52032499.6