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Information on Business Segments
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Information on Business Segments

19. Information on Business Segments

The Company’s operations are structured into three segments, Water, Outdoors and Security. These segments are strategic business units with differing products and services.

The chief operating decision maker (“CODM”), our Chief Executive Officer, uses operating income to evaluate the performance of our segments and to make resource allocation decisions. Segment operating income excludes unallocated corporate costs. Operating income is the primary measure of segment profitability used in internal management reporting to the CODM. This measure is used to view operating trends, perform analytical comparisons and benchmark performance between periods, and to evaluate historical and forecasted financial performance as well as performance relative to our competitors. The monthly and quarterly results provided to the CODM include the net sales and operating income or loss of the consolidated Company and each segment. These financial results are reviewed against budget and the prior year in evaluating the performance of the segment. The CODM is also regularly provided qualitative and quantitative metrics to establish an understanding of drivers to the overall performance. The metrics provided include information at a functional level for the Company's operations and supply chain in addition to each segment. These metrics also include service and quality ratings, brand awareness, market performance and outlook, working capital efficiency, operational plant efficiency, commodity pricing, capital spending and an overview of transformation initiatives.

The significant expense categories and amounts shown below align with the segment level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts below. Other operating expenses principally consist of cost of sales and selling, general and administrative expenses, which are not provided to the CODM in managing performance of the operating segments.

The Water segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek, Schaub and SpringWell brands. The Outdoors 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 and wide-opening exterior door systems and outdoor enclosures under the Solar Innovations brand. The Security segment includes locks, safety and security devices, connected and mechanical lock out tag out solutions and electronic security products under the Master Lock, American Lock, Yale and August brands, and fire-resistant safes, security containers and commercial cabinets under the SentrySafe brand. Corporate expenses consist primarily of headquarters administrative expenses. Corporate assets consist primarily of cash.

The Company’s subsidiaries operate principally in the United States, Canada, Mexico, the United Kingdom, China, South Africa, Vietnam and France.

 

(In millions)

 

Water

 

 

 

Outdoors

 

 

Security

 

 

Total 2024

 

Net sales

 

$

2,564.6

 

 

 

$

1,350.1

 

 

$

694.3

 

 

$

4,609.0

 

Depreciation

 

 

44.2

 

 

 

 

54.3

 

 

 

20.0

 

 

 

118.5

 

Amortization of Intangibles

 

 

39.5

 

 

 

 

30.0

 

 

 

3.6

 

 

 

73.1

 

Restructuring and other charges

 

 

8.5

 

 

 

 

19.8

 

 

 

11.5

 

 

 

39.8

 

Other segment Items (1)

 

 

1,877.3

 

 

 

 

1,048.0

 

 

 

558.8

 

 

 

3,484.1

 

Unallocated Expenses

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

155.6

 

Total operating income

 

$

595.1

 

 

 

$

198.0

 

 

$

100.4

 

 

$

737.9

 

(1) Other segment items recognized during the year ended December 28, 2024 include cost of sales and selling, general, and administrative expenses.

 

(In millions)

 

Water

 

 

 

Outdoors

 

 

Security

 

 

Total 2023

 

Net sales

 

$

2,562.2

 

 

 

$

1,341.1

 

 

$

722.9

 

 

$

4,626.2

 

Depreciation

 

 

40.4

 

 

 

 

34.5

 

 

 

29.8

 

 

 

104.7

 

Amortization of Intangibles

 

 

28.9

 

 

 

 

30.0

 

 

 

3.2

 

 

 

62.1

 

Restructuring and other charges

 

 

4.8

 

 

 

 

4.1

 

 

 

44.6

 

 

 

53.5

 

Other segment Items (1)

 

 

1,913.8

 

 

 

 

1,139.0

 

 

 

582.9

 

 

 

3,635.7

 

Unallocated Expenses

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

155.3

 

Total operating income

 

$

574.3

 

 

 

$

133.5

 

 

$

62.4

 

 

$

614.9

 

(1) Other segment items recognized during the year ended December 30, 2023 include cost of sales and selling, general, and administrative expenses.

 

(In millions)

 

Water

 

 

 

Outdoors

 

 

Security

 

 

Total 2022

 

Net sales

 

$

2,570.2

 

 

 

$

1,517.4

 

 

$

635.4

 

 

$

4,723.0

 

Depreciation

 

 

34.9

 

 

 

 

32.3

 

 

 

13.2

 

 

 

80.4

 

Amortization of Intangibles

 

 

16.2

 

 

 

 

30.2

 

 

 

1.9

 

 

 

48.3

 

Restructuring and other charges

 

 

6.9

 

 

 

 

18.3

 

 

 

0.6

 

 

 

25.8

 

Other segment Items (1)

 

 

1,897.6

 

 

 

 

1,242.4

 

 

 

524.3

 

 

 

3,664.3

 

Unallocated Expenses

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

129.9

 

Total operating income

 

$

614.6

 

 

 

$

194.2

 

 

$

95.4

 

 

$

774.3

 

(1) Other segment items recognized during the year ended December 31, 2022 include cost of sales and selling, general, and administrative expenses.

 

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 2024, 2023 and 2022. All of our business segments sell to The Home Depot and Lowe’s. Net sales to The Home Depot were 10%, 10% and 12% of net sales in 2024, 2023 and 2022, respectively. Net sales to Lowe’s were 11%, 11% and 12% of net sales in 2024, 2023 and 2022, respectively.

 

(In millions)

 

2024

 

 

 

2023

 

 

 

2022

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

Water

 

$

3,539.2

 

 

 

$

3,492.2

 

 

 

$

2,674.4

 

Outdoors

 

 

2,169.3

 

 

 

 

2,205.3

 

 

 

 

2,214.6

 

Security

 

 

649.7

 

 

 

 

721.0

 

 

 

 

605.4

 

Corporate

 

 

203.6

 

 

 

 

146.5

 

 

 

 

626.5

 

Total assets

 

$

6,561.8

 

 

 

$

6,565.0

 

 

 

$

6,120.9

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

Water

 

$

72.6

 

 

 

$

104.7

 

 

 

$

52.1

 

Outdoors

 

 

64.4

 

 

 

 

140.0

 

 

 

 

120.2

 

Security

 

 

21.5

 

 

 

 

10.4

 

 

 

 

17.9

 

Corporate

 

 

34.8

 

 

 

 

1.4

 

 

 

 

—

 

Capital expenditures, gross

 

 

193.3

 

 

 

 

256.5

 

 

 

 

190.2

 

Less: proceeds from disposition of assets

 

 

(26.9

)

 

 

 

(2.8

)

 

 

 

(8.2

)

Capital expenditures, net

 

$

166.4

 

 

 

$

253.7

 

 

 

$

182.0

 

Net sales by geographic region (a):

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

3,809.0

 

 

 

$

3,708.0

 

 

 

$

3,763.6

 

China

 

 

233.6

 

 

 

 

335.2

 

 

 

 

363.9

 

Canada

 

 

344.5

 

 

 

 

352.4

 

 

 

 

368.2

 

Other international

 

 

221.9

 

 

 

 

230.6

 

 

 

 

227.3

 

Net sales

 

$

4,609.0

 

 

 

$

4,626.2

 

 

 

$

4,723.0

 

Property, plant and equipment, net:

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

816.4

 

 

 

$

798.0

 

 

 

$

673.5

 

Mexico

 

 

59.0

 

 

 

 

62.9

 

 

 

 

55.9

 

Canada

 

 

6.7

 

 

 

 

7.6

 

 

 

 

7.3

 

China

 

 

14.5

 

 

 

 

17.3

 

 

 

 

20.1

 

Other international

 

 

102.6

 

 

 

 

89.2

 

 

 

 

26.9

 

Property, plant and equipment, net

 

$

999.2

 

 

 

$

975.0

 

 

 

$

783.7

 

 

 

(a)
Based on country of destination.