Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2016

Net Sales and Operating Income by Segment

The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe.



(In millions)	2016		2015		2014
Net sales:
Cabinets	$	2,397.8	$	2,173.4	$	1,787.5
Plumbing		1,534.4		1,414.5		1,331.0
Doors		473.0		439.1		413.9
Security		579.7		552.4		481.2
Net sales	$	4,984.9	$	4,579.4	$	4,013.6



(In millions)	2016			2015			2014

Operating income:
Cabinets	$	257.8		$	192.4		$	137.9
Plumbing		326.3			285.4			258.9
Doors		61.9			44.0			29.2
Security		66.6			55.9			49.4
Less: Corporate expenses^(a)		(79.9	)		(81.6	)		(71.9	)
Operating income	$	632.7		$	496.1		$	403.5
^(a) Below is a table detailing Corporate expenses:
General and administrative expense	$	(80.9	)	$	(70.1	)	$	(67.0	)
Defined benefit plan income		2.9			6.1			8.8
Recognition of defined benefit plan actuarial losses		(1.9	)		(2.5	)		(13.7	)
Norcraft transaction costs^(b)		—			(15.1	)		—
Total Corporate expenses	$	(79.9	)	$	(81.6	)	$	(71.9	)

^(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)	2016			2015			2014
Total assets:
Cabinets	$	2,349.4		$	2,364.0		$	1,603.6
Plumbing		1,626.8			1,341.4			1,270.2
Doors		480.6			483.9			459.3
Security		514.5			520.7			528.5
Corporate		157.2			165.7			109.3
Continuing operations		5,128.5			4,875.7			3,970.9
Discontinued operations		—			—			80.6
Total assets	$	5,128.5		$	4,875.7		$	4,051.5

Depreciation expense:
Cabinets	$	40.1		$	38.1		$	31.0
Plumbing		24.6			21.3			18.5
Doors		9.0			11.2			11.7
Security		17.2			19.5			10.0
Corporate		3.7			3.4			2.0
Continuing operations		94.6			93.5			73.2
Discontinued operations		—			—			9.7
Depreciation expense	$	94.6		$	93.5		$	82.9

Amortization of intangible assets:
Cabinets	$	18.4		$	14.3		$	8.0
Plumbing		3.6			1.2			—
Doors		3.8			3.8			3.8
Security		2.3			2.3			1.3
Continuing operations		28.1			21.6			13.1
Discontinued operations		—			—			2.8
Amortization of intangible assets	$	28.1		$	21.6		$	15.9

Capital expenditures:
Cabinets	$	61.7		$	61.3		$	64.0
Plumbing		48.3			27.2			25.8
Doors		12.9			13.3			10.9
Security		25.9			17.3			16.2
Corporate		0.5			9.4			4.8
Continuing operations		149.3			128.5			121.7
Discontinued operations		—			—			5.8
Capital expenditures, gross		149.3			128.5			127.5
Less: proceeds from disposition of assets		(3.9	)		(2.5	)		(0.7	)
Capital expenditures, net	$	145.4		$	126.0		$	126.8

Net sales by geographic region^(a):
United States	$	4,258.5		$	3,892.9		$	3,313.1
Canada		406.4			385.1			405.8
China and other international		320.0			301.4			294.7
Net sales	$	4,984.9		$	4,579.4		$	4,013.6

Property, plant and equipment, net^(b):
United States	$	499.8		$	498.9		$	429.1
Mexico		90.8			74.2			72.5
Canada		45.5			39.4			28.4
China and other international		26.4			15.4			9.8
Property, plant and equipment, net	$	662.5		$	627.9		$	539.8

^(a)	Based on country of destination

^(b)	Purchases of property, plant and equipment not yet paid for as of December 31, 2016, 2015 and 2014 were $11.9 million, $20.0 million and $4.2 million, respectively.