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Information on Business Segments | 12 Months Ended
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Dec. 31, 2013
Information on Business Segments | 18. Information on Business Segments We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below. The Kitchen & Bath Cabinetry segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Kitchen Craft, Kitchen Classics, Omega, Schrock, Homecrest, Decorá, Diamond and Kemper. In addition, cabinets are distributed under the Martha Stewart Living and Thomasville Cabinetry brand names. The Plumbing & Accessories segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks predominantly under the Moen brand. The Advanced Material Windows & Door Systems segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name, vinyl-framed windows and patio doors under the Simonton brand name, and urethane millwork under the Fypon brand name. The Security & Storage segment includes locks, safety and security devices and electronic security products under the Master Lock brand name, and tool storage and garage organization products under the Sears Craftsman and Waterloo brand names. The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe.
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 1,642.2 |  |  | $ | 1,326.6 |  |  | $ | 1,256.3 |
Plumbing & Accessories |  |  | 1,287.0 |  |  |  | 1,100.7 |  |  |  | 962.8 |
Advanced Material Windows & Door Systems |  |  | 657.8 |  |  |  | 587.2 |  |  |  | 552.9 |
Security & Storage |  |  | 570.4 |  |  |  | 576.6 |  |  |  | 556.6 |
Net sales |  | $ | 4,157.4 |  |  | $ | 3,591.1 |  |  | $ | 3,328.6 |
Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2013, 2012 and 2011. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 14%, 13% and 13% of net sales in 2013, 2012 and 2011, respectively. Net sales to Lowe’s were 13%, 13% and 15% of net sales in 2013, 2012 and 2011, respectively.
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 97.1 |  |  | $ | 20.5 |  |  | $ | 5.7 |
Plumbing & Accessories |  |  | 228.3 |  |  |  | 169.2 |  |  |  | 138.0 |
Advanced Material Windows & Door Systems |  |  | 14.4 |  |  |  | (1.0 | ) |  |  | (101.2 | )
Security & Storage |  |  | 90.4 |  |  |  | 75.4 |  |  |  | 62.6 |
Less: Corporate expenses(a) |  |  | (73.1 | ) |  |  | (102.4 | ) |  |  | (120.7 | )
Operating income (loss) |  | $ | 357.1 |  |  | $ | 161.7 |  |  | $ | (15.6 | )
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 1,588.0 |  |  | $ | 1,248.5 |  |  | $ | 1,273.2 |
Plumbing & Accessories |  |  | 1,176.3 |  |  |  | 1,081.7 |  |  |  | 1,065.0 |
Advanced Material Windows & Door Systems |  |  | 766.1 |  |  |  | 778.2 |  |  |  | 804.2 |
Security & Storage |  |  | 461.8 |  |  |  | 459.8 |  |  |  | 399.9 |
Corporate(b) |  |  | 185.9 |  |  |  | 305.7 |  |  |  | 95.6 |
Total assets |  | $ | 4,178.1 |  |  | $ | 3,873.9 |  |  | $ | 3,637.9 |
(a) Below is a table detailing Corporate expenses: |  |  |  |  |  |  |  |  |  |  |  |
Corporate expenses: |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expense(c) |  | $ | (78.0 | ) |  | $ | (63.7 | ) |  | $ | (44.1 | )
Business separation costs |  |  | — |  |  |  | — |  |  |  | (2.4 | )
Defined benefit plan costs |  |  | 10.1 |  |  |  | 3.5 |  |  |  | 5.8 |
Defined benefit plan recognition of actuarial losses |  |  | (5.2 | ) |  |  | (42.2 | ) |  |  | (80.0 | )
Total Corporate expenses |  | $ | (73.1 | ) |  | $ | (102.4 | ) |  | $ | (120.7 | )
(b) | Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent.
(c) | General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011.
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Depreciation expense: |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 29.3 |  |  | $ | 38.8 |  |  | $ | 38.6 |
Plumbing & Accessories |  |  | 16.7 |  |  |  | 18.1 |  |  |  | 18.2 |
Advanced Material Windows & Door Systems |  |  | 16.9 |  |  |  | 18.5 |  |  |  | 25.8 |
Security & Storage |  |  | 13.0 |  |  |  | 13.3 |  |  |  | 14.0 |
Corporate |  |  | 1.3 |  |  |  | 1.5 |  |  |  | 0.5 |
Depreciation expense |  | $ | 77.2 |  |  | $ | 90.2 |  |  | $ | 97.1 |
Amortization of intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 5.1 |  |  | $ | 3.3 |  |  | $ | 6.0 |
Advanced Material Windows & Door Systems |  |  | 7.5 |  |  |  | 7.5 |  |  |  | 7.9 |
Security & Storage |  |  | 0.6 |  |  |  | 0.3 |  |  |  | 0.5 |
Amortization of intangible assets |  | $ | 13.2 |  |  | $ | 11.1 |  |  | $ | 14.4 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Kitchen & Bath Cabinetry |  | $ | 36.4 |  |  | $ | 27.7 |  |  | $ | 29.1 |
Plumbing & Accessories |  |  | 25.3 |  |  |  | 19.1 |  |  |  | 16.5 |
Advanced Material Windows & Door Systems |  |  | 13.6 |  |  |  | 15.0 |  |  |  | 13.5 |
Security & Storage |  |  | 18.9 |  |  |  | 13.0 |  |  |  | 9.4 |
Corporate |  |  | 2.5 |  |  |  | 0.2 |  |  |  | — |
Capital expenditures, gross |  |  | 96.7 |  |  |  | 75.0 |  |  |  | 68.5 |
Less: proceeds from disposition of assets |  |  | (2.2 | ) |  |  | (13.5 | ) |  |  | (3.5 | )
Capital expenditures, net |  | $ | 94.5 |  |  | $ | 61.5 |  |  | $ | 65.0 |
Net sales by geographic region(a): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,479.4 |  |  | $ | 2,969.1 |  |  | $ | 2,755.0 |
Canada |  |  | 418.1 |  |  |  | 405.3 |  |  |  | 390.3 |
China and other international |  |  | 259.9 |  |  |  | 216.7 |  |  |  | 183.3 |
Net sales |  | $ | 4,157.4 |  |  | $ | 3,591.1 |  |  | $ | 3,328.6 |
Property, plant and equipment, net: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 439.2 |  |  | $ | 428.9 |  |  | $ | 443.7 |
Mexico |  |  | 55.6 |  |  |  | 37.0 |  |  |  | 39.1 |
Canada |  |  | 29.4 |  |  |  | 32.7 |  |  |  | 32.8 |
China and other international |  |  | 10.2 |  |  |  | 10.8 |  |  |  | 10.2 |
Property, plant and equipment, net |  | $ | 534.4 |  |  | $ | 509.4 |  |  | $ | 525.8 |
(a) | Based on country of destination

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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