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Information on Business Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
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 Plumbing segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe and Shaws brands. The Outdoors & Security segment includes fiberglass and steel entry door systems under the Therma-Tru brand name, storm, screen and security doors under the Larson brand name, composite decking and railing under the Fiberon brand name, urethane millwork under the Fypon brand name, locks, safety and security devices, and electronic security products under the Master Lock and American Lock brands, and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand. The Cabinets segment includes stock, semi-custom and custom cabinetry, as well as vanities, for the kitchen, bath and other parts of the home under brand names including Aristokraft, Diamond Now, Mid-Continent, Homecrest, Kitchen Craft, Omega, EVE, Diamond Reflections, Diamond, Kemper, Schrock, Starmark, Ultracraft and Mantra. Corporate expenses consist of headquarters administrative expenses. Corporate assets consist primarily of cash.

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

 

(In millions)

 

2020

 

 

 

2019

 

 

 

2018

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

$

2,202.1

 

 

 

$

2,027.2

 

 

 

$

1,883.3

 

Outdoors & Security

 

 

1,419.2

 

 

 

 

1,348.9

 

 

 

 

1,183.2

 

Cabinets

 

 

2,469.0

 

 

 

 

2,388.5

 

 

 

 

2,418.6

 

Net sales

 

$

6,090.3

 

 

 

$

5,764.6

 

 

 

$

5,485.1

 

 

 

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 2020, 2019 and 2018. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 15%, 14% and 13% of net sales in 2020, 2019 and 2018, respectively. Net sales to Lowe’s were 15%, 14% and 14% of net sales in 2020, 2019 and 2018, respectively.

 

(In millions)

 

2020

 

 

 

2019

 

 

 

2018

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

$

467.9

 

 

 

$

427.6

 

 

 

$

375.3

 

Outdoors & Security

 

 

201.3

 

 

 

 

172.3

 

 

 

 

155.6

 

Cabinets

 

 

235.7

 

 

 

 

178.3

 

 

 

 

143.5

 

Less: Corporate expenses

 

 

(103.5

)

 

 

 

(79.7

)

 

 

 

(79.2

)

Operating income

 

$

801.4

 

 

 

$

698.5

 

 

 

$

595.2

 

 

 

 

(In millions)

 

2020

 

 

 

2019

 

 

 

2018

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

 

2,262.9

 

 

 

 

2,110.8

 

 

 

 

1,943.1

 

Outdoors & Security

 

 

2,453.8

 

 

 

 

1,596.6

 

 

 

 

1,526.0

 

Cabinets

 

 

2,366.8

 

 

 

 

2,355.7

 

 

 

 

2,318.7

 

Corporate

 

 

275.2

 

 

 

 

228.2

 

 

 

 

176.8

 

Total assets

 

$

7,358.7

 

 

 

$

6,291.3

 

 

 

$

5,964.6

 

Depreciation expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

$

37.6

 

 

 

$

32.0

 

 

 

$

29.1

 

Outdoors & Security

 

 

33.3

 

 

 

 

32.3

 

 

 

 

30.2

 

Cabinets

 

 

47.9

 

 

 

 

44.3

 

 

 

 

50.9

 

Corporate

 

 

2.7

 

 

 

 

2.7

 

 

 

 

3.3

 

Depreciation expense

 

$

121.5

 

 

 

$

111.3

 

 

 

$

113.5

 

Amortization of intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

$

10.8

 

 

 

$

10.3

 

 

 

$

10.4

 

Outdoors & Security

 

 

13.4

 

 

 

 

13.3

 

 

 

 

6.1

 

Cabinets

 

 

17.8

 

 

 

 

17.8

 

 

 

 

19.6

 

Amortization of intangible assets

 

$

42.0

 

 

 

$

41.4

 

 

 

$

36.1

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing

 

$

30.5

 

 

 

$

35.7

 

 

 

$

41.4

 

Outdoors & Security

 

 

76.4

 

 

 

 

63.6

 

 

 

 

34.3

 

Cabinets

 

 

27.3

 

 

 

 

30.9

 

 

 

 

73.8

 

Corporate

 

 

16.3

 

 

 

 

1.6

 

 

 

 

0.6

 

Capital expenditures, gross

 

 

150.5

 

 

 

 

131.8

 

 

 

 

150.1

 

Less: proceeds from disposition of assets

 

 

(1.6

)

 

 

 

(4.2

)

 

 

 

(6.1

)

Capital expenditures, net

 

$

148.9

 

 

 

$

127.6

 

 

 

$

144.0

 

Net sales by geographic region (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

5,094.3

 

 

 

$

4,823.7

 

 

 

$

4,606.6

 

China

 

 

416.7

 

 

 

 

355.4

 

 

 

 

260.6

 

Canada

 

 

414.2

 

 

 

 

401.0

 

 

 

 

433.1

 

Other international

 

 

165.1

 

 

 

 

184.5

 

 

 

 

184.8

 

Net sales

 

$

6,090.3

 

 

 

$

5,764.6

 

 

 

$

5,485.1

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

732.4

 

 

 

$

641.9

 

 

 

$

628.9

 

Mexico

 

 

104.7

 

 

 

 

103.2

 

 

 

 

103.4

 

Canada

 

 

41.2

 

 

 

 

43.9

 

 

 

 

46.0

 

China

 

 

25.0

 

 

 

 

22.5

 

 

 

 

22.5

 

Other international

 

 

14.1

 

 

 

 

12.7

 

 

 

 

12.6

 

Property, plant and equipment, net

 

$

917.4

 

 

 

$

824.2

 

 

 

$

813.4

 

 

(a)

Based on country of destination