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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2013
SEGMENT INFORMATION  
SEGMENT INFORMATION

P. SEGMENT INFORMATION

        The Company's reportable segments are as follows:

        Cabinets and Related Products –  principally includes assembled kitchen and bath cabinets; home office workstations; entertainment centers; storage products; bookcases; and kitchen utility products.

        Plumbing Products –  principally includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; and spas.

        Installation and Other Services –  principally includes the sale, installation and distribution of insulation and other building products.

        Decorative Architectural Products –  principally includes paints and stains; and cabinet, door, window and other hardware.

        Other Specialty Products –  principally includes windows, window frame components and patio doors; staple gun tackers, staples and other fastening tools.

        The above products and services are sold to the home improvement and new home construction markets through mass merchandisers, hardware stores, home centers, builders, distributors and other outlets for consumers and contractors.

        The Company's operations are principally located in North America and Europe. The Company's country of domicile is the United States of America.

        Corporate assets consist primarily of real property, equipment, cash and cash investments and other investments.

        The Company's segments are based upon similarities in products and services and represent the aggregation of operating units, for which financial information is regularly evaluated by the Company's corporate operating executives in determining resource allocation and assessing performance, and is periodically reviewed by the Board of Directors. Accounting policies for the segments are the same as those for the Company. The Company primarily evaluates performance based upon operating profit (loss) and, other than general corporate expense, allocates specific corporate overhead to each segment. The evaluation of segment operating profit (loss) also excludes the charge for litigation settlements, net, and the gain on sale of fixed assets, net.

        Information about the Company by segment and geographic area was as follows, in millions:

 
   Net Sales
(1)(2)(3)(4)(5)		   Operating Profit (Loss) (5)(6)   Assets at
December 31 (9)(10)		  
 
   2013   2012   2011   2013   2012   2011   2013   2012   2011  

The Company's operations by segment were:

                                                        

Cabinets and Related Products

   $ 1,014   $ 939   $ 934   $ (10 ) $ (89 ) $ (126 ) $ 659   $ 700   $ 792  

Plumbing Products

     3,183     2,955     2,913     394     307     322     2,040     2,012     1,959  

Installation and Other Services

     1,412     1,209     1,077     37     (19 )   (79 )   1,465     1,444     1,427  

Decorative Architectural Products

     1,927     1,818     1,670     351     329     196     812     799     770  

Other Specialty Products

     637     574     576     35     (31 )   (401 )   693     704     768  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 8,173   $ 7,495   $ 7,170   $ 807   $ 497   $ (88 ) $ 5,669   $ 5,659   $ 5,716  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

The Company's operations by geographic area were:

                                                        

North America

   $ 6,634   $ 6,046   $ 5,669   $ 649   $ 360   $ (259 ) $ 4,295   $ 4,363   $ 4,441  

International, principally Europe

     1,539     1,449     1,501     158     137     171     1,374     1,296     1,275  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total, as above

   $ 8,173   $ 7,495   $ 7,170     807     497     (88 )   5,669     5,659     5,716  
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                                   

General corporate expense, net (7)

     (134 )   (126 )   (118 )                  

Charge for litigation settlements, net (8)

     —     (77 )   (9 )                  

Gain from sales of fixed assets, net

     —     8     —                    
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Operating profit (loss), as reported

     673     302     (215 )                  


Other income (expense), net
 
 
(239
)
 
(229
)
 
(177
)
 
 
 
 
 
 
 
 
 
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) from continuing operations before income taxes

   $ 434   $ 73   $ (392 )                  
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                                   

Corporate assets

                       1,264     1,013     1,339  

Assets held for sale

                       —     203     242  
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

                     $ 6,933   $ 6,875   $ 7,297  
                                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                                   


 

 
    
    
    
   Depreciation and Amortization (5)  
 
  
Property Additions (5)
  2013   2012   2011  
 
  
2013
 
2012
 
2011
 

The Company's operations by segment were:

                                      

Cabinets and Related Products

   $ 9   $ 15   $ 14   $ 42   $ 57   $ 66  

Plumbing Products

     71     67     85     65     69     68  

Installation and Other Services

     14     11     9     27     30     32  

Decorative Architectural Products

     16     11     8     17     15     15  

Other Specialty Products

     10     11     17     22     21     48  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

     120     115     133     173     192     229  

Unallocated amounts, principally related to corporate assets

     4     2     6     11     11     16  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 124   $ 117   $ 139   $ 184   $ 203   $ 245  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 

(1)
Included in net sales were export sales from the U.S. of $227 million, $229 million and $241 million in 2013, 2012 and 2011, respectively.

(2)
Excluded from net sales were intra-company sales between segments of approximately two percent of net sales in each of 2013, 2012 and 2011.

(3)
Included in net sales were sales to one customer of $2,280 million, $2,143 million and $1,984 million in 2013, 2012 and 2011, respectively. Such net sales were included in the following segments: Cabinets and Related Products, Plumbing Products, Decorative Architectural Products and Other Specialty Products.

(4)
Net sales from the Company's operations in the U.S. were $6,359 million, $5,793 million and $5,394 million in 2013, 2012 and 2011, respectively.

(5)
Net sales, operating (loss) profit, property additions and depreciation and amortization expense for 2013, 2012 and 2011 excluded the results of businesses reported as discontinued operations in 2013, 2012 and 2011.

(6)
Included in segment operating profit (loss) for 2012 was an impairment charge for other intangible assets as follows: Other Specialty Products – $42 million. Included in segment operating (loss) profit for 2011 were impairment charges for goodwill and other intangible assets as follows: Plumbing Products – $1 million; Decorative Architectural Products – $75 million; and Other Specialty Products – $374 million.

(7)
General corporate expense, net included those expenses not specifically attributable to the Company's segments.

(8)
The charge for litigation settlement, net in 2012 primarily relates to a business in the Installation and Other Services segment and in 2011 relates to business units in the Cabinets and Related Products and the Other Specialty Products segments.

(9)
Long-lived assets of the Company's operations in the U.S. and Europe were $2,685 million and $481 million, $2,792 million and $467 million, and $2,962 million and $455 million at December 31, 2013, 2012 and 2011, respectively.

(10)
Segment assets for 2012 and 2011 excluded the assets of businesses reported as discontinued operations in the respective years.