XML 41 R27.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Information on Business Segments | 12 Months Ended
--- | ---
Dec. 31, 2015
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 Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Diamond, Kitchen Craft, Mid-Continent, Kitchen Classics, Schrock, Omega, Homecrest, Ultracraft and StarMark. In addition, cabinets are distributed under the Thomasville Cabinetry brand names. The Plumbing segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks and waste disposals predominantly under the Moen and Waste King brands. The Doors segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name and urethane millwork product lines under the Fypon brand name. The Security segment includes locks, safety and security devices and electronic security products under the Master Lock brand name and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand name. Corporate expenses consist of headquarter administrative expenses and defined benefit plans costs, primarily interest costs and expected return on plan assets, as well as actuarial gains and losses arising from periodic remeasurement of our liabilities. Corporate assets primarily consist of cash. The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe.
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 2,173.4 |  |  | $ | 1,787.5 |  |  | $ | 1,642.2 |
Plumbing |  |  | 1,414.5 |  |  |  | 1,331.0 |  |  |  | 1,287.0 |
Doors |  |  | 439.1 |  |  |  | 413.9 |  |  |  | 371.6 |
Security |  |  | 552.4 |  |  |  | 481.2 |  |  |  | 402.8 |
Net sales |  | $ | 4,579.4 |  |  | $ | 4,013.6 |  |  | $ | 3,703.6 |
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 2015, 2014 and 2013. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 14%, 15% and 14% of net sales in 2015, 2014 and 2013, respectively. Net sales to Lowe’s were 14%, 14% and 14% of net sales in 2015, 2014 and 2013, respectively.
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 192.4 |  |  | $ | 137.9 |  |  | $ | 97.1 |
Plumbing |  |  | 285.4 |  |  |  | 258.9 |  |  |  | 228.3 |
Doors |  |  | 44.0 |  |  |  | 29.2 |  |  |  | 15.3 |
Security |  |  | 55.9 |  |  |  | 49.4 |  |  |  | 55.4 |
Less: Corporate expenses(a) |  |  | (81.6 | ) |  |  | (71.9 | ) |  |  | (73.1 | )
Operating income |  | $ | 496.1 |  |  | $ | 403.5 |  |  | $ | 323.0 |
(a) Below is a table detailing Corporate expenses: |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expense |  | $ | (70.1 | ) |  | $ | (67.0 | ) |  | $ | (78.0 | )
Defined benefit plan income |  |  | 6.1 |  |  |  | 8.8 |  |  |  | 10.1 |
Recognition of defined benefit plan actuarial losses |  |  | (2.5 | ) |  |  | (13.7 | ) |  |  | (5.2 | )
Norcraft transaction costs(b) |  |  | (15.1 | ) |  |  | — |  |  |  | — |
Total Corporate expenses |  | $ | (81.6 | ) |  | $ | (71.9 | ) |  | $ | (73.1 | )
(b) | Representing external costs directly related to the acquisition of Norcraft and primarily includes expenditures for banking, legal, accounting and other similar services.
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 2,364.0 |  |  | $ | 1,603.6 |  |  | $ | 1,588.0 |
Plumbing |  |  | 1,341.4 |  |  |  | 1,270.2 |  |  |  | 1,176.3 |
Doors |  |  | 483.9 |  |  |  | 459.3 |  |  |  | 462.0 |
Security |  |  | 520.7 |  |  |  | 528.5 |  |  |  | 361.8 |
Corporate |  |  | 168.6 |  |  |  | 110.7 |  |  |  | 185.9 |
Continuing operations |  |  | 4,878.6 |  |  |  | 3,972.3 |  |  |  | 3,774.0 |
Discontinued operations |  |  | — |  |  |  | 80.6 |  |  |  | 404.1 |
Total assets |  | $ | 4,878.6 |  |  | $ | 4,052.9 |  |  | $ | 4,178.1 |
Depreciation expense: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 38.1 |  |  | $ | 31.0 |  |  | $ | 29.3 |
Plumbing |  |  | 21.3 |  |  |  | 18.5 |  |  |  | 16.7 |
Doors |  |  | 11.2 |  |  |  | 11.7 |  |  |  | 11.4 |
Security |  |  | 19.5 |  |  |  | 10.0 |  |  |  | 8.2 |
Corporate |  |  | 3.4 |  |  |  | 2.0 |  |  |  | 1.3 |
Continuing operations |  |  | 93.5 |  |  |  | 73.2 |  |  |  | 66.9 |
Discontinued operations |  |  | — |  |  |  | 9.7 |  |  |  | 10.3 |
Depreciation expense |  | $ | 93.5 |  |  | $ | 82.9 |  |  | $ | 77.2 |
Amortization of intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 14.3 |  |  | $ | 8.0 |  |  | $ | 5.1 |
Plumbing |  |  | 1.2 |  |  |  | — |  |  |  | — |
Doors |  |  | 3.8 |  |  |  | 3.8 |  |  |  | 3.8 |
Security |  |  | 2.3 |  |  |  | 1.3 |  |  |  | 0.5 |
Continuing operations |  |  | 21.6 |  |  |  | 13.1 |  |  |  | 9.4 |
Discontinued operations |  |  | — |  |  |  | 2.8 |  |  |  | 3.8 |
Amortization of intangible assets |  | $ | 21.6 |  |  | $ | 15.9 |  |  | $ | 13.2 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Cabinets |  | $ | 61.3 |  |  | $ | 64.0 |  |  | $ | 36.4 |
Plumbing |  |  | 27.2 |  |  |  | 25.8 |  |  |  | 25.3 |
Doors |  |  | 13.3 |  |  |  | 10.9 |  |  |  | 7.3 |
Security |  |  | 17.3 |  |  |  | 16.2 |  |  |  | 12.6 |
Corporate |  |  | 9.4 |  |  |  | 4.8 |  |  |  | 2.5 |
Continuing operations |  |  | 128.5 |  |  |  | 121.7 |  |  |  | 84.1 |
Discontinued operations |  |  | — |  |  |  | 5.8 |  |  |  | 12.6 |
Capital expenditures, gross |  |  | 128.5 |  |  |  | 127.5 |  |  |  | 96.7 |
Less: proceeds from disposition of assets |  |  | (2.5 | ) |  |  | (0.7 | ) |  |  | (2.2 | )
Capital expenditures, net |  | $ | 126.0 |  |  | $ | 126.8 |  |  | $ | 94.5 |
Net sales by geographic region(a): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,892.9 |  |  | $ | 3,313.1 |  |  | $ | 3,046.5 |
Canada |  |  | 385.1 |  |  |  | 405.8 |  |  |  | 413.2 |
China and other international |  |  | 301.4 |  |  |  | 294.7 |  |  |  | 243.9 |
Net sales |  | $ | 4,579.4 |  |  | $ | 4,013.6 |  |  | $ | 3,703.6 |
Property, plant and equipment, net(b): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 498.9 |  |  | $ | 429.1 |  |  | $ | 378.0 |
Mexico |  |  | 74.2 |  |  |  | 72.5 |  |  |  | 50.8 |
Canada |  |  | 39.4 |  |  |  | 28.4 |  |  |  | 29.4 |
China and other international |  |  | 15.4 |  |  |  | 9.8 |  |  |  | 10.1 |
Property, plant and equipment, net |  | $ | 627.9 |  |  | $ | 539.8 |  |  | $ | 468.3 |
(a) | Based on country of destination
(b) | Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.

X
- 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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 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=51669610&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 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration