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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
H. | GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for 2012 and 2011, by segment, were as follows, in millions:
|  | Gross Goodwill At December 31, 2012 |  |  | Accumulated Impairment Losses |  |  | Net Goodwill At December 31, 2012 |
Cabinets and Related Products |  | $ | 240 |  |  | $ | (59 | ) |  | $ | 181 |
Plumbing Products |  |  | 544 |  |  |  | (340 | ) |  |  | 204 |
Installation and Other Services |  |  | 1,806 |  |  |  | (762 | ) |  |  | 1,044 |
Decorative Architectural Products |  |  | 294 |  |  |  | (75 | ) |  |  | 219 |
Other Specialty Products |  |  | 980 |  |  |  | (734 | ) |  |  | 246 |
Total |  | $ | 3,864 |  |  | $ | (1,970 | ) |  | $ | 1,894 |
|  | Gross Goodwill At December 31, 2011 |  |  | Accumulated Impairment Losses |  |  | Net Goodwill At December 31, 2011 |  |  | Pre-tax Impairment Charge |  |  | Other (C) |  |  | Net Goodwill At December 31, 2012 |
Cabinets and Related Products |  | $ | 240 |  |  | $ | (59 | ) |  | $ | 181 |  |  | $ | — |  |  | $ | — |  |  | $ | 181 |
Plumbing Products |  |  | 541 |  |  |  | (340 | ) |  |  | 201 |  |  |  | — |  |  |  | 3 |  |  |  | 204 |
Installation and Other Services |  |  | 1,806 |  |  |  | (762 | ) |  |  | 1,044 |  |  |  | — |  |  |  | — |  |  |  | 1,044 |
Decorative Architectural Products |  |  | 294 |  |  |  | (75 | ) |  |  | 219 |  |  |  | — |  |  |  | — |  |  |  | 219 |
Other Specialty Products |  |  | 980 |  |  |  | (734 | ) |  |  | 246 |  |  |  | — |  |  |  | — |  |  |  | 246 |
Total |  | $ | 3,864 |  |  | $ | (1,970 | ) |  | $ | 1,891 |  |  | $ | — |  |  | $ | 3 |  |  | $ | 1,894 |
|  | Gross Goodwill At December 31, 2010 |  |  | Accumulated Impairment Losses |  |  | Net Goodwill At December 31, 2010 |  |  | Additions (A) |  |  | Discontinued Operations(B) |  |  | Pre-tax Impairment Charge |  |  | Other (C) |  |  | Net Goodwill At December 31, 2011 |
Cabinets and Related Products |  | $ | 240 |  |  | $ | (59 | ) |  | $ | 181 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 181 |
Plumbing Products |  |  | 536 |  |  |  | (340 | ) |  |  | 196 |  |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | (4 | ) |  |  | 201 |
Installation and Other Services |  |  | 1,819 |  |  |  | (762 | ) |  |  | 1,057 |  |  |  | — |  |  |  | (13 | ) |  |  | — |  |  |  | — |  |  |  | 1,044 |
Decorative Architectural Products |  |  | 294 |  |  |  | — |  |  |  | 294 |  |  |  | — |  |  |  | — |  |  |  | (75 | ) |  |  | — |  |  |  | 219 |
Other Specialty Products |  |  | 980 |  |  |  | (367 | ) |  |  | 613 |  |  |  | — |  |  |  | — |  |  |  | (367 | ) |  |  | — |  |  |  | 246 |
Total |  | $ | 3,869 |  |  | $ | (1,528 | ) |  | $ | 2,341 |  |  | $ | 9 |  |  | $ | (13 | ) |  | $ | (442 | ) |  | $ | (4 | ) |  | $ | 1,891 |
(A) | Additions include acquisitions.
(B) | During 2011, the Company reclassified the goodwill related to the business units held for sale. Subsequent to the reclassification, the Company recognized a charge for those business units expected to be divested at a loss; the charge included a write-down of goodwill of $13 million.
(C) | Other principally includes the effect of foreign currency translation and purchase price adjustments related to prior-year acquisitions.
In the fourth quarters of 2012 and 2011, the Company completed its annual impairment testing of goodwill and other indefinite-lived intangible assets. The impairment test in 2012 indicated there was no impairment of goodwill for any of the Company’s reporting units. The impairment test in 2011 indicated that goodwill recorded for certain of the Company’s reporting units was impaired. The Company recognized the non-cash, pre-tax impairment charges, in continuing operations, for goodwill of $442 million ($286 million, after tax) for 2011. In 2011, the pre-tax impairment charge in the Decorative Architectural Products segment relates to the builders’ hardware business and reflects increasing competitive conditions for that business. The pre-tax impairment charge in the Other Specialty Products segment relates to the North American window and door business and reflects the continuing weak level of new home construction activity in the western U.S., the reduced levels of repair and remodel activity and the expectation that recovery in these segments will be modestly slower than anticipated. The Company then assessed the long-lived assets associated with these business units and determined no impairment was necessary at December 31, 2011. Other indefinite-lived intangible assets were $132 million and $174 million at December 31, 2012 and 2011, respectively, and principally included registered trademarks. In 2012 and 2011, the impairment test indicated that the registered trademark for a North American business unit in the Other Specialty Products segment and the registered trademark for a North American business unit in the Plumbing Products segment (2011 only) were impaired due to changes in the long-term outlook for the business units. The Company recognized non-cash, pre-tax impairment charges for other indefinite-lived intangible assets of $42 million ($27 million, after tax) and $8 million ($5 million, after tax) in 2012 and 2011, respectively. In 2010, the Company recognized non-cash, pre-tax impairment charges for other indefinite-lived intangible assets of $10 million ($6 million after tax) related to the Installation and Other Services segment ($9 million pre-tax) and the Plumbing Products segment ($1 million pre-tax). The carrying value of the Company’s definite-lived intangible assets was $19 million at December 31, 2012 (net of accumulated amortization of $57 million) and $22 million at December 31, 2011 (net of accumulated amortization of $54 million) and principally included customer relationships and non-compete agreements, with a weighted average amortization period of 6 years in both 2012 and 2011. Amortization expense related to the definite-lived intangible assets of continuing operations was $6 million in each of 2012, 2011 and 2010. At December 31, 2012, amortization expense related to the definite-lived intangible assets during each of the next five years was as follows: 2013—$5 million; 2014—$4 million; 2015—$4 million; 2016—$2 million; and 2017—$1 million.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 + Details
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