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Information on Business Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Information on Business Segments

19. Information on Business Segments

Following the Separation, the operating results of our Cabinets segment have been classified as discontinued operations for all periods presented, we have two operating segments. The tables below reflect the results of operations of the Company's operating segments in continuing operations, consistent with internal reporting used by the Company.

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 Water Innovations segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa 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. 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)

 

2022

 

 

 

2021

 

 

 

2020

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

2,570.2

 

 

 

$

2,761.2

 

 

 

$

2,202.1

 

Outdoors & Security

 

 

2,152.8

 

 

 

 

2,039.9

 

 

 

 

1,419.2

 

Net sales

 

$

4,723.0

 

 

 

$

4,801.1

 

 

 

$

3,621.3

 

 

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 2022, 2021 and 2020. Both of our business segments sell to The Home Depot and Lowe’s. Net sales to The Home Depot were 11.7%, 11.2% and 14.1% of net sales in 2022, 2021 and 2020, respectively. Net sales to Lowe’s were 12.0%, 11.9% and 11.1% of net sales in 2022, 2021 and 2020, respectively.

 

(In millions)

 

2022

 

 

 

2021

 

 

 

2020

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

614.6

 

 

 

$

629.7

 

 

 

$

467.9

 

Outdoors & Security

 

 

289.6

 

 

 

 

291.9

 

 

 

 

201.3

 

Corporate

 

 

(129.9

)

 

 

 

(110.5

)

 

 

 

(101.5

)

Operating income

 

$

774.3

 

 

 

$

811.1

 

 

 

$

567.7

 

 

 

 

(In millions)

 

2022

 

 

 

2021

 

 

 

2020

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

2,674.4

 

 

 

$

2,614.7

 

 

 

$

2,262.9

 

Outdoors & Security

 

 

2,820.0

 

 

 

 

2,619.4

 

 

 

 

2,453.8

 

Corporate

 

 

626.5

 

 

 

 

212.4

 

 

 

 

275.2

 

Total assets

 

$

6,120.9

 

 

 

$

5,446.5

 

 

 

$

4,991.9

 

Depreciation expense:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

34.9

 

 

 

$

37.1

 

 

 

$

37.6

 

Outdoors & Security

 

 

45.5

 

 

 

 

40.7

 

 

 

 

33.3

 

Corporate

 

 

2.5

 

 

 

 

2.8

 

 

 

 

2.7

 

Depreciation expense

 

$

82.9

 

 

 

$

80.6

 

 

 

$

73.6

 

Amortization of intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

16.2

 

 

 

$

14.9

 

 

 

$

10.8

 

Outdoors & Security

 

 

32.1

 

 

 

 

31.5

 

 

 

 

13.4

 

Amortization of intangible assets

 

$

48.3

 

 

 

$

46.4

 

 

 

$

24.2

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

Water Innovations

 

$

52.1

 

 

 

$

38.1

 

 

 

$

30.5

 

Outdoors & Security

 

 

138.1

 

 

 

 

124.2

 

 

 

 

76.4

 

Corporate

 

 

—

 

 

 

 

0.3

 

 

 

 

16.3

 

Capital expenditures, gross

 

 

190.2

 

 

 

 

162.6

 

 

 

 

123.2

 

Less: proceeds from disposition of assets

 

 

(8.2

)

 

 

 

(1.8

)

 

 

 

(1.0

)

Capital expenditures, net

 

$

182.0

 

 

 

$

160.8

 

 

 

$

122.2

 

Net sales by geographic region (a):

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,763.6

 

 

 

$

3,722.7

 

 

 

$

2,774.8

 

China

 

 

363.9

 

 

 

 

510.4

 

 

 

 

416.7

 

Canada

 

 

368.2

 

 

 

 

384.2

 

 

 

 

280.3

 

Other international

 

 

227.3

 

 

 

 

183.8

 

 

 

 

149.5

 

Net sales

 

$

4,723.0

 

 

 

$

4,801.1

 

 

 

$

3,621.3

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

673.5

 

 

 

$

569.6

 

 

 

$

487.3

 

Mexico

 

 

55.9

 

 

 

 

53.7

 

 

 

 

53.9

 

Canada

 

 

7.3

 

 

 

 

7.7

 

 

 

 

7.6

 

China

 

 

20.1

 

 

 

 

23.7

 

 

 

 

25.0

 

Other international

 

 

26.9

 

 

 

 

16.1

 

 

 

 

14.1

 

Property, plant and equipment, net

 

$

783.7

 

 

 

$

670.8

 

 

 

$

587.9

 

 

(a)
Based on country of destination.