Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | FORTUNE BRANDS HOME & SECURITY, INC. | |
Entity Central Index Key | 0001519751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | FBHS | |
Entity Common Stock, Shares Outstanding | 128,242,529 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35166 | |
Entity Tax Identification Number | 62-1411546 | |
Entity Address, Address Line One | 520 Lake Cook Road | |
Entity Address, City or Town | Deerfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015-5611 | |
City Area Code | 847 | |
Local Phone Number | 484-4400 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 2,053.7 | $ 1,986.3 | $ 6,082 | $ 5,693.4 |
Cost of products sold | 1,310.2 | 1,280 | 3,895.9 | 3,637.2 |
Selling, general and administrative expenses | 415.3 | 400.2 | 1,259.4 | 1,166.3 |
Amortization of intangible assets | 16.8 | 15.9 | 48.9 | 48.5 |
Asset impairment charges | 0 | 0 | 26 | 0 |
Restructuring charges | 30.2 | 3.6 | 33.1 | 11.5 |
Operating income | 281.2 | 286.6 | 818.7 | 829.9 |
Interest expense | 33.1 | 20.6 | 85.4 | 63.2 |
Other (income) expense , net | (2.1) | (1.3) | (3.6) | 0.7 |
Income before taxes | 250.2 | 267.3 | 736.9 | 766 |
Income tax | 46 | 65.2 | 159.8 | 168.9 |
Net income | $ 204.2 | $ 202.1 | $ 577.1 | $ 597.1 |
Basic earnings per common share | $ 1.58 | $ 1.47 | $ 4.40 | $ 4.32 |
Diluted earnings per common share | $ 1.57 | $ 1.45 | $ 4.37 | $ 4.26 |
Comprehensive income | $ 174.2 | $ 186.7 | $ 599.5 | $ 598.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 345.3 | $ 471.5 | |
Accounts receivable less allowances for discounts and credit losses | 936.1 | 885.7 | |
Inventories | 1,502.3 | 1,193.8 | |
Other current assets | 223.9 | 193.5 | |
Total current assets | 3,007.6 | 2,744.5 | |
Property, plant and equipment, net of accumulated depreciation | 1,097.7 | 1,009.5 | |
Operating lease assets | 177 | 191.7 | |
Goodwill | [1] | 2,546.2 | 2,465.1 |
Other intangible assets, net of accumulated amortization | 1,375.9 | 1,383.8 | |
Other assets | 211.2 | 141.6 | |
Total assets | 8,415.6 | 7,936.2 | |
Current liabilities | |||
Short-term debt | 600.3 | 400 | |
Accounts payable | 672.6 | 764.9 | |
Other current liabilities | 775 | 806.2 | |
Total current liabilities | 2,047.9 | 1,971.1 | |
Long-term debt | 2,786.9 | 2,309.8 | |
Deferred income taxes | 222.7 | 176 | |
Accrued defined benefit plans | 62.3 | 79.7 | |
Operating lease liabilities | 142.4 | 158.8 | |
Other non-current liabilities | 123.3 | 176 | |
Total liabilities | 5,385.5 | 4,871.4 | |
Commitments and contingencies (see Note 17) | |||
Stockholders' equity | |||
Common stock | [2] | 1.9 | 1.9 |
Paid-in capital | 3,058.9 | 3,018.3 | |
Accumulated other comprehensive loss | (2.2) | (24.6) | |
Retained earnings | 3,277 | 2,807.9 | |
Treasury stock | (3,305.5) | (2,738.7) | |
Total stockholders' equity | 3,030.1 | 3,064.8 | |
Total liabilities and equity | $ 8,415.6 | $ 7,936.2 | |
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors & Security segment. Common stock, par value $ 0.01 per share; 186.1 million shares and 185.3 million shares issued at September 30, 2022 and December 31, 2021 , respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 186,100,000 | 185,300,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Operating activities | |||
Net income | $ 577.1 | $ 597.1 | |
Non-cash adjustments: | |||
Depreciation | 93.5 | 92.9 | |
Amortization of intangibles | 48.9 | 48.5 | |
Non-cash lease expense | 33.8 | 31.8 | |
Stock-based compensation | 40 | 36 | |
Recognition of actuarial losses | 0.4 | 1.1 | |
Deferred taxes | 34.9 | 9.6 | |
Restructuring charges | 7.5 | 0 | |
Asset impairment charges | 26 | 0 | |
Amortization of deferred financing fees | 2.8 | 2.8 | |
Loss on equity investments | 0 | 2.9 | |
(Gain) loss on sale of property, plant and equipment | (5.6) | 1.5 | |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (51) | (186.2) | |
Increase in inventories | (302.7) | (258) | |
(Decrease) increase in accounts payable | (79.3) | 116.5 | |
Decrease (increase) in other assets | 6.2 | (0.6) | |
Decrease in accrued expenses and other liabilities | (117.6) | (65) | |
Decrease in accrued taxes | (26.1) | (0.1) | |
Net cash provided by operating activities | 288.8 | 430.8 | |
Investing activities | |||
Capital expenditures | [1] | (175.1) | (113) |
Proceeds from the disposition of assets | 8.1 | 1.7 | |
Cost of acquisitions, net of cash acquired | (214) | 5.2 | |
Net cash used in investing activities | (381) | (106.1) | |
Financing activities | |||
Issuance of short-term debt | 701.4 | 0 | |
Repayment of short-term debt | (1,100) | 0 | |
Issuance of long-term debt | 4,973.9 | 825 | |
Repayment of long-term debt | (3,895.9) | (770) | |
Proceeds from the exercise of stock options | 0.6 | 32.6 | |
Treasury stock purchases | [2] | (531.1) | (252.9) |
Employee withholding taxes related to stock-based compensation | (25.7) | (10.5) | |
Dividends to stockholders | (109.8) | (107.9) | |
Other financing, net | (22.3) | (1.4) | |
Net cash used in financing activities | (8.9) | (285.1) | |
Effect of foreign exchange rate changes on cash | (26) | 1 | |
Net (decrease) increase in cash and cash equivalents | (127.1) | 40.6 | |
Cash, cash equivalents and restricted cash at beginning of period | [3] | 476.1 | 425 |
Cash, cash equivalents and restricted cash at end of period | [3] | $ 349 | $ 465.6 |
[1] Capital expenditures of $ 11.7 million and $ 12.6 million that had not been paid as of September 30, 2022 and 2021 , respectively, were excluded from the Statement of Cash Flows. Treasury stock purchased for the nine months ended September 30, 2022 and September 30, 2021 excludes $ 10.0 million and $ 17.2 million, respectively, related to purchases that were not settled until after September 30, 2022 and September 30, 2021, respectively. Restricted cash of $ 1.4 million and $ 2.3 million is included in Other current assets and Other assets, respectively, as of September 30, 2022 and restricted cash of $ 1.2 million and $ 3.7 million is included in Other current assets and Other assets, respectively, as of September 30, 2021 . Restricted cash of $ 1.3 million and $ 3.3 million is included in Other current assets and Other assets, respectively, as of December 31, 2021 . |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Capital expenditures incurred but not yet paid | $ 11.7 | $ 12.6 | |
Treasury repurchased but not yet paid | 10 | 17.2 | |
Other Current Assets [Member] | |||
Restricted Cash | 1.4 | 1.2 | $ 1.3 |
Other Noncurrent Assets [Member] | |||
Restricted Cash | $ 2.3 | $ 3.7 | $ 3.3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock |
Beginning Balance at Dec. 31, 2020 | $ 2,775.5 | $ 1.8 | $ 2,926.3 | $ (55.1) | $ 2,180.2 | $ (2,277.7) |
Comprehensive income: | ||||||
Net income | 597.1 | 597.1 | ||||
Other comprehensive income (loss) | 1.3 | 1.3 | ||||
Stock options exercised | 32.6 | 0.1 | 32.5 | |||
Stock-based compensation | 25.5 | 36 | (10.5) | |||
Treasury stock purchases | (270.1) | (270.1) | ||||
Dividends | (107.3) | (107.3) | ||||
Ending Balance at Sep. 30, 2021 | 3,054.6 | 1.9 | 2,994.8 | (53.8) | 2,670 | (2,558.3) |
Beginning Balance at Jun. 30, 2021 | 3,043.5 | 1.9 | 2,982.8 | (38.4) | 2,539.3 | (2,442.1) |
Comprehensive income: | ||||||
Net income | 202.1 | 202.1 | ||||
Other comprehensive income (loss) | (15.4) | (15.4) | ||||
Stock options exercised | 0.4 | 0.4 | ||||
Stock-based compensation | 9.5 | 11.6 | (2.1) | |||
Treasury stock purchases | (114.1) | (114.1) | ||||
Dividends | (71.4) | (71.4) | ||||
Ending Balance at Sep. 30, 2021 | 3,054.6 | 1.9 | 2,994.8 | (53.8) | 2,670 | (2,558.3) |
Beginning Balance at Dec. 31, 2021 | 3,064.8 | 1.9 | 3,018.3 | (24.6) | 2,807.9 | (2,738.7) |
Comprehensive income: | ||||||
Net income | 577.1 | 577.1 | ||||
Other comprehensive income (loss) | 22.4 | 22.4 | ||||
Stock options exercised | 0.6 | 0.6 | ||||
Stock-based compensation | 14.3 | 40 | (25.7) | |||
Treasury stock purchases | (541.1) | (541.1) | ||||
Dividends | (108) | (108) | ||||
Ending Balance at Sep. 30, 2022 | 3,030.1 | 1.9 | 3,058.9 | (2.2) | 3,277 | (3,305.5) |
Beginning Balance at Jun. 30, 2022 | 2,952.4 | 1.9 | 3,046.2 | 27.8 | 3,145 | (3,268.5) |
Comprehensive income: | ||||||
Net income | 204.2 | 204.2 | ||||
Other comprehensive income (loss) | (30) | (30) | ||||
Stock options exercised | 0.2 | 0.2 | ||||
Stock-based compensation | 11.6 | 12.5 | (0.9) | |||
Treasury stock purchases | (36.1) | (36.1) | ||||
Dividends | (72.2) | (72.2) | ||||
Ending Balance at Sep. 30, 2022 | $ 3,030.1 | $ 1.9 | $ 3,058.9 | $ (2.2) | $ 3,277 | $ (3,305.5) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per Common share | $ 0.56 | $ 0.52 | $ 0.84 | $ 0.78 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | 1. Basis of Presentation and Principles of Consolidation References to “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction and security applications. The condensed consolidated balance sheet as of September 30, 2022, the related condensed consolidated statements of comprehensive income and equity for the nine and three months ended September 30, 2022 and 2021, and the related condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year. In the first quarter of 2022, our Plumbing segment was renamed “Water Innovations” to better align with our key brands and organizational purpose. The Plumbing segment name change is to the name only and had no impact on the Company’s historical financial position, results of operations, cash flow or segment level results previously reported. In July 2022, we acquired 100 % of the outstanding equity of Aqualisa Holdings (International) Ltd. (“Aqualisa” ), a leading U.K. manufacturer of shower products known for premium, innovative and smart digital shower systems, for a purchase price of $ 156.0 million, net of cash acquired of $ 4.8 million. The results of Aqualisa are reported as part of the Water Innovations segment. We believe its product offerings will enable us to continue to leverage growing trends in water management and connected products. We financed the transaction with borrowings under our existing credit facility. We have not included pro forma financial information as it is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of July 29, 2022 was $ 156.0 million. In January 2022, we acquired 100 % of the outstanding equity of Solar Innovations LLC and an affiliated entity (together, “Solar” ), a leading producer of wide-opening exterior door systems and outdoor enclosures, for a purchase price of $ 61.6 million, net of cash acquired of $ 4.8 million . The purchase price is subject to a final post-closing working capital adjustment. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Solar are reported as part of the Outdoors & Security segment. Its complementary product offerings support the segment’s outdoor living strategy. The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC” ) and do not contain certain information included in our annual audited consolidated financial statements and notes. The December 31, 2021 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP” ). This Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards Disclosures by Business Entities About Government Assistance In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832). The new guidance, codified in Accounting Standards Codification (“ASC” ) 832, requires business entities that account for transactions with a government by applying a grant or contribution model by analogy to disclose information about government assistance recorded during the period. ASU 2021-10 is effective for all entities for annual reporting periods beginning after December 15, 2021 . The adoption of this guidance did no t have a material effect on our financial statements. |
Balance Sheet Information
Balance Sheet Information | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 3. Balance Sheet Information Supplemental information on our balance sheets is as follows: (In millions) September 30, December 31, Inventories: Raw materials and supplies $ 619.9 $ 455.1 Work in process 110.6 93.0 Finished products 771.8 645.7 Total inventories $ 1,502.3 $ 1,193.8 Property, plant and equipment, gross $ 2,438.8 $ 2,278.0 Less: accumulated depreciation 1,341.1 1,268.5 Property, plant and equipment, net $ 1,097.7 $ 1,009.5 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Cabinets On April 28, 2022, the Company announced that its Board of Directors authorized the Company to develop a plan to separate the Company into two independent, publicly-traded companies via a tax-free spin-off of the MasterBrand Cabinets, Inc. business into a separate standalone publicly-traded company (the “Spin-Off”). The Spin-Off is expected to be completed within twelve months from the announcement date, subject to a number of conditions including the approval by the Company’s Board of Directors and the effectiveness of a registration statement on Form 10 to be filed with the SEC. Aqualisa In July 2022, we acquired 100 % of the outstanding equity of Aqualisa Holdings (International) Ltd. (“Aqualisa”), a leading U.K. manufacturer of shower products known for premium, innovative and smart digital shower systems, for a purchase price of $ 156.0 million, net of cash acquired of $ 4.8 million. The results of Aqualisa are reported as part of the Water Innovations segment. We believe its product offerings will enable us to continue to leverage growing trends in water management and connected products. We financed the transaction with borrowings under our existing credit facility. We have not included pro forma financial information as the transaction is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of July 29, 2022 was $ 156.0 million, which include s $ 87.3 mi llion of goodwill. Goodwill includes expected sales and cost synergies and is not expected to be deductible for income tax purposes. Solar In January 2022, we acquired 100 % of the outstanding equity of Solar for a purchase price of $ 61.6 million, net of cash acquired of $ 4.8 million. The purchase price is subject to a final post-closing working capital adjustment. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Solar are reported as part of the Outdoors & Security segment. Its complementary product offerings support the segment’s outdoor living strategy. Solar's net sales and operating income for the three and nine months ended September 30, 2022 were not material to the Company. We have not included pro forma financial information as the transaction is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of January 31, 2022 was $ 61.6 million, which includes $ 21.0 million of goodwill. Goodwill includes expected sales and cost synergies and is expected to be deductible for income tax purposes. Flo Technologies In 2018, our Water Innovations segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo Technologies, Inc. (“Flo” ), a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. As part of this agreement, we acquired a majority of Flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of Flo during the first quarter of 2022 for a price based on a multiple of Flo’s 2021 sales and adjusted earnings before interest and taxes. On January 30, 2022, we made a final cash payment of $ 16.7 million to the legacy minority shareholders to acquire such shares which is reflected within Other financing, net in our consolidated statements of cash flows. The minority shareholders’ substantive participating rights expired on January 1, 2021 , at which time we obtained control of, and began consolidating, Flo in our results of operations and statements of financial positions and cash flows. Immediately prior to consolidating Flo, we recognized a non-cash loss of $ 4.5 million within other expense during the three months ended March 31, 2021 related to the remeasurement of our previously existing investment in Flo. The fair value allocated to assets acquired and liabilities assumed as of January 1, 2021 was $ 87.8 million, net of cash acquired of $ 9.7 million, which includes $ 65.3 million of goodwill. Goodwill includes expected sales and cost synergies and is not expected to be deductible for income tax purposes. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 5. Goodwill and Identifiable Intangible Assets We had goodwill of $ 2,546.2 million and $ 2,465.1 million as of September 30, 2022 and December 31, 2021 , respectively. The change in the net carrying amount of goodwill by segment was as follows: (In millions) Water Innovations Outdoors & Cabinets Total Goodwill at December 31, 2021 (a) $ 814.1 $ 724.8 $ 926.2 $ 2,465.1 Year-to-date translation adjustments ( 24.5 ) ( 0.8 ) ( 1.9 ) ( 27.2 ) Acquisition-related adjustments 87.3 21.0 - 108.3 Goodwill at September 30, 2022 (a) $ 876.9 $ 745.0 $ 924.3 $ 2,546.2 (a) Net of accumulated impairment losses of $ 399.5 million in the Outdoors & Security segment. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of September 30, 2022 and December 31, 2021 were as follows: (In millions) As of September 30, 2022 As of December 31, 2021 Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 681.5 $ - $ 681.5 $ 711.1 $ - $ 711.1 Amortizable intangible assets Tradenames 54.3 ( 16.4 ) 37.9 36.4 ( 15.5 ) 20.9 Customer and contractual relationships 1,016.5 ( 422.0 ) 594.5 975.7 ( 388.2 ) 587.5 Patents/proprietary technology 139.0 ( 77.0 ) 62.0 133.1 ( 68.8 ) 64.3 Total 1,209.8 ( 515.4 ) 694.4 1,145.2 ( 472.5 ) 672.7 Total identifiable intangibles $ 1,891.3 $ ( 515.4 ) $ 1,375.9 $ 1,856.3 $ ( 472.5 ) $ 1,383.8 We had net identifiable intangible assets of $ 1,375.9 million and $ 1,383.8 million as of September 30, 2022 and December 31, 2021, respectively. The $ 35.0 million increase in gross identifiable intangible assets was primarily due to the acquisition of Aqualisa and Solar partially offset b y the tradename impairment charges of $ 26.0 million in our Cabinets segment (as discussed below) and translation adjustments. Amortizable identifiable intangible assets, principally customer relationships, are subject to amortization over their estimated useful life, ranging from 5 to 30 years, based on the assessment of a number of factors that may impact useful life, which includes customer attrition rates and other relevant factors. The asset impairment charge of $ 26.0 million in 2022 relates to an indefinite-lived tradename within our Cabinets segment. During the second quarter of 2022, production was shifted at a historical make-to-order plant to a stock product line, to enable what we expect to be a higher value purpose and growth opportunity. This production shift led to downward revisions to forecasted revenue growth rates associated with the tradename. The fair value of this tradename was measured using the relief-from-royalty approach, which estimates the present value of royalty income that could be hypothetically earned by licensing the tradename to a third party over its remaining useful life. Some of the more significant assumptions inherent in estimating the fair values include forecasted revenue growth rates for the tradename, assumed royalty rate, and a market-participant discount rate that reflects the level of risk associated with the tradenames’ future revenues and profitability. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management plans. These assumptions represent Level 3 inputs of the fair value hierarchy (refer to Note 8). The significant assumptions used to estimate the fair value of the tradename impaired in the second quarter of 2022 were as follows: Unobservable Input 2022 Discount rate 11.6 % Royalty rate (a) 3 % Long-term revenue growth rate (b) 1 % (a) Represents estimated percentage of sales a market-participant would pay to license the impaired tradename. (b) Selected long-term revenue growth rate within 10-year projection period of the impaired tradename. As of September 30, 2022, the estimated fair value of this tradename equaled its carrying value of $ 59.0 million. A reduction in the estimated fair value of this tradename could trigger additional impairment charges in future periods. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: lower than forecasted revenues, more severe impacts of the COVID-19 pandemic than currently expected, including due to resurgences of the virus, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and a decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets. |
External Debt and Financing Arr
External Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
External Debt and Financing Arrangements | 6. External Debt and Financing Arrangements Senior Notes In March 2022, the Company issued $ 900 million in aggregate principal amount of senior unsecured notes in a registered public offering consisting of $ 450 million of 4.00 % senior unsecured notes maturing in 2032 and $ 450 million of 4.50 % senior unsecured notes maturing in 2052 (together, the “2022 Notes”). The Company used the net proceeds from the 2022 Notes offering to pay down a portion of the outstanding balance on the 2021 Term Loan, as described below. At September 30, 2022 , the Company had aggregate outstanding senior notes in the amount of $ 2.7 billion, with varying maturities (the “Notes”). The Notes are unsecured senior obligations of the Company. The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of September 30, 2022 and December 31, 2021: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date September 30, 2022 December 31, 2021 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 497.9 $ 497.4 4.000% Senior Notes 600.0 September 2018 September 2023 599.0 598.2 3.250% Senior Notes 700.0 September 2019 September 2029 694.8 694.2 4.000% Senior Notes 450.0 March 2022 March 2032 445.6 - 4.500% Senior Notes 450.0 March 2022 March 2052 435.3 - Total Senior Notes $ 2,700.0 $ 2,672.6 $ 1,789.8 Credit Facilities In August 2022, the Company entered into a third amended and restated $ 1.25 billion revolving credit facility (the “2022 Revolving Credit Agreement”), and borrowings thereunder will be used for general corporate purposes. The maturity date of the facility is August 2027 . Interest rates under the 2022 Revolving Credit Agreement are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s long-term credit rating and can range from SOFR + 1.02 % to SOFR + 1.525 %. Under the 2022 Revolving Credit Agreement, the Company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. In addition, the Company's ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA generally may not exceed 3.5 to 1.0. On September 30, 2022 and December 31, 2021, our outstanding borrowings under this facility and our previous revolving credit facility were $ 100.0 million and $ 520.0 million, respectively. This facility is included in Long-term debt in the condensed consolidated balance sheets. As of September 30, 2022, we were in compliance with all covenants under this facility. In November 2021, the Company entered into a 364-day, $ 400 million term loan credit agreement (the “2021 Term Loan”), for general corporate purposes, to mature in November 2022. On March 1, 2022, the Company entered into a First Amendment and Incremental Agreement to the 2021 Term Loan (the “First Amendment” ). The First Amendment provided for an increase in the principal amount from $ 400 million to $ 600 million as well as the transition from LIBOR to SOFR interest rates. As a result, interest rates under the 2021 Term Loan were variable based on SOFR at the time of the borrowing and the Company’s long-term credit rating and could range from SOFR + 0.725 % to SOFR + 1.350 %. On March 18, 2022, the Company entered into a Second Amendment and Incremental Agreement to the 2021 Term Loan (the “Second Amendment” ), increasing the principal amount from $ 600 million to $ 1.1 billion. All other terms and conditions remained the same under the First Amendment and Second Amendment. Proceeds from the increased 2021 Term Loan were used to repay outstanding balances under our previous revolving credit facility. The outstanding $ 1.1 billion under the 2021 Term Loan was repaid on March 25, 2022 with proceeds from the senior notes offering in March 2022 (as described above) and other existing sources of liquidity. We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $ 20.5 million and $ 17.5 million in aggregate as of September 30, 2022 and December 31, 2021 , respectively. There were outstanding balances of $ 1.4 million as of September 30, 2022 and no outstanding balance as of December 31, 2021. Commercial Paper In November 2021, the Company established a commercial paper program (the “Commercial Paper Program” ) pursuant to which the Company may issue unsecured commercial paper notes. The Company’s 2022 Revolving Credit Agreement is the liquidity backstop for the repayment of any notes issued under the Commercial Paper Program, and as such, borrowings under the Commercial Paper Program are included in Long-term debt in the condensed consolidated balance sheets. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed, with the aggregate principal amount outstanding at any time, including borrowings under the 2022 Revolving Credit Agreement, not to exceed $ 1.25 billion. The Company plans to use net proceeds from any issuances under the Commercial Paper Program for general corporate purposes. On September 30, 2022 and December 31, 2021 our outstanding borrowings under the Commercial Paper Program w ere $ 613.3 million and zero , respectively. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 7. Financial Instruments We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. As a result, from time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We may be exposed to interest rate risk on existing debt or forecasted debt issuance. To mitigate this risk, we may enter into interest rate hedge contracts. As of September 30, 2022 , we had outstanding interest rate hedges with a notional value of $ 600 million which have been accounted for as cash flow hedges. We terminated $ 600 million of interest rate hedges during the first quarter of 2022, concurrent with the issuance of new long-term debt. Total realized pre-tax gains of $ 39.0 million related to these interest rate hedges have been recorded in accumulated other comprehensive income and will be reclassified to earnings over the related maturity of the related interest rate hedging instrument. Our primary foreign currency hedge contracts pertain to the Canadian dollar, the British pound, the Mexican peso and the Chinese yuan. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at September 30, 2022 w as $ 553.7 milli on. Based on foreign exchange rates as of September 30, 2022, we estimate th at $ 2.5 mil lion of net derivative losses included in accumulated other comprehensive income as of September 30, 2022 will be reclassified to earnings within the next twelve months. The fair values of derivative instruments on the consolidated balance sheets as of September 30, 2022 and December 31, 2021 were as follows: Fair Value (In millions) Location September 30, December 31, Assets: Foreign exchange contracts Other current assets $ 9.5 $ 4.1 Interest rate hedges Other non-current assets 88.8 - Total assets $ 98.3 $ 4.1 Liabilities: Foreign exchange contracts Other current liabilities $ 10.9 $ 1.4 Commodity contracts Other current liabilities 7.6 0.1 Total liabilities $ 18.5 $ 1.5 The effects of derivative financial instruments on the statements of comprehensive income for the nine months ended September 30, 2022 and 2021 were as follows: (In millions) Classification and Amount of Gain (Loss) Nine Months Ended September 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 3,895.9 $ 85.4 $ 3.6 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 26.1 ) Derivative designated as hedging instruments - - 21.6 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.3 - - Commodity contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 4.2 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 2.5 - (In millions) Classification and Amount of Gain (Loss) Nine Months Ended September 30, 2021 Cost of Interest Other expense, net Total amounts per Consolidated Statements of Comprehensive Income $ 3,637.2 $ 63.2 $ 0.7 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 2.1 ) Derivative designated as hedging instruments - - ( 0.6 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.2 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 0.5 - The effects of derivative financial instruments on the statements of comprehensive income for the three months ended September 30, 2022 and 2021 were as follows: (In millions) Classification and Amount of Gain (Loss) Three Months Ended September 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,310.2 $ 33.1 $ 2.1 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 17.2 ) Derivative designated as hedging instruments - - 16.5 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 - - Commodity contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 3.9 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.1 - (In millions) Classification and Amount of Gain (Loss) Three Months Ended September 30, 2021 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,280.0 $ 20.6 $ 1.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 3.8 ) Derivative designated as hedging instruments - - 3.1 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - - Interest rate contracts: - Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 0.2 - The cash flow hedges recognized in other comprehensive income were a net gain of $ 125.9 million and a net gain of $ 1.8 million in the nine months ended September 30, 2022 and 2021 , respectively. The cash flow hedges recognized in other comprehensive income were a net gain of $ 126.4 million and a net gain of $ 2.4 million in the three months ended September 30, 2022 and 2021 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements FASB ASC requirements for Fa ir Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs, due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3. The carrying value and fair value of debt as of September 30, 2022 and December 31, 2021 were as follows: (In millions) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price discounts and debt issuance costs $ 2,672.6 $ 2,338.9 $ 1,789.8 $ 1,902.9 2022 Revolving Credit Agreement 100.0 100.0 520.0 520.0 Commercial paper borrowings 613.3 615.2 - - 2021 Term Loan - - 400.0 400.0 Total debt $ 3,385.9 $ 3,054.1 $ 2,709.8 $ 2,822.9 The estimated fair value of our Notes is determined by using quoted market prices of our debt securities, which are Level 1 inputs. The estimated fair value of our 2022 Revolving Credit Agreement, Commercial paper borrowings and 2021 Term Loan is determined primarily using broker quotes, which are Level 2 inputs. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 were as follows: (In millions) Fair Value September 30, December 31, Assets Derivative financial instruments (Level 2) $ 98.3 $ 4.1 Deferred compensation program assets (Level 2) 18.8 19.8 Total assets $ 117.1 $ 23.9 Liabilities Derivative financial instruments (Level 2) $ 18.5 $ 1.5 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) Total accumulated other comprehensive income (loss) consists of net income and other changes in business equity from transactions and other events from sources other than stockholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The after-tax components of and changes in accumulated other comprehensive (loss) income for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Foreign Derivative Defined Accumulated Balance at December 31, 2020 $ 7.2 $ 4.2 $ ( 66.5 ) $ ( 55.1 ) Amounts classified into accumulated other 2.9 1.4 ( 2.6 ) 1.7 Amounts reclassified from accumulated other - ( 1.8 ) 1.4 ( 0.4 ) Net current-period other comprehensive (loss) income 2.9 ( 0.4 ) ( 1.2 ) 1.3 Balance at September 30, 2021 $ 10.1 $ 3.8 $ ( 67.7 ) $ ( 53.8 ) Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 70.5 ) 97.3 ( 1.6 ) 25.2 Amounts reclassified from accumulated other - ( 3.1 ) 0.3 ( 2.8 ) Net current-period other comprehensive (loss) income ( 70.5 ) 94.2 ( 1.3 ) 22.4 Balance at September 30, 2022 $ ( 67.2 ) $ 97.1 $ ( 32.1 ) $ ( 2.2 ) (In millions) Foreign Derivative Defined Accumulated Balance at June 30, 2021 $ 25.0 $ 3.3 $ ( 66.7 ) $ ( 38.4 ) Amounts classified into accumulated other ( 14.9 ) 1.7 ( 2.4 ) ( 15.6 ) Amounts reclassified from accumulated other - ( 1.2 ) 1.4 0.2 Net current-period other comprehensive (loss) income ( 14.9 ) 0.5 ( 1.0 ) ( 15.4 ) Balance at September 30, 2021 $ 10.1 $ 3.8 $ ( 67.7 ) $ ( 53.8 ) Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Amounts classified into accumulated other ( 54.4 ) 24.9 ( 1.5 ) ( 31.0 ) Amounts reclassified from accumulated other - 0.7 0.3 1.0 Net current-period other comprehensive (loss) income ( 54.4 ) 25.6 ( 1.2 ) ( 30.0 ) Balance at September 30, 2022 $ ( 67.2 ) $ 97.1 $ ( 32.1 ) $ ( 2.2 ) The reclassifications out of accumulated other comprehensive loss for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.3 $ 0.2 Cost of products sold Commodity contracts ( 4.2 ) 0.9 Cost of products sold Interest rate contracts 2.5 0.5 Interest expense 2.6 1.6 Total before tax 0.5 0.2 Tax expense $ 3.1 $ 1.8 Net of tax Defined benefit plan items Recognition of actuarial losses $ ( 0.4 ) $ ( 1.1 ) Other (income) expense, net ( 0.4 ) ( 1.1 ) Total before tax 0.1 ( 0.3 ) Tax expense $ ( 0.3 ) $ ( 1.4 ) Net of tax Total reclassifications for the period $ 2.8 $ 0.4 Net of tax (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 1.3 $ 0.9 Cost of products sold Commodity contracts ( 3.9 ) - Cost of products sold Interest rate contracts 1.1 0.2 Interest expense ( 1.5 ) 1.1 Total before tax 0.8 0.1 Tax expense Total reclassifications for the period $ ( 0.7 ) $ 1.2 Net of tax Defined benefit plan items Recognition of actuarial losses $ ( 0.4 ) $ ( 1.1 ) Other (income) expense, net ( 0.4 ) ( 1.1 ) Total before tax 0.1 ( 0.3 ) Tax expense $ ( 0.3 ) $ ( 1.4 ) Net of tax Total reclassifications for the period $ ( 1.0 ) $ ( 0.2 ) Net of tax |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 10. Revenue The following table disaggregates our consolidated revenue by major sales distribution channels for the nine and three months ended September 30, 2022 and 2021: (In millions) Nine Months Ended Three Months Ended 2022 2021 2022 2021 Wholesalers (a) $ 2,874.4 $ 2,594.4 $ 987.6 $ 933.6 Home Center retailers (b) 1,787.5 1,642.0 580.6 524.9 Other retailers (c) 309.9 326.6 99.7 128.5 Builder direct 248.1 194.8 88.1 65.7 U.S. net sales 5,219.9 4,757.8 1,756.0 1,652.7 International (d) 862.1 935.6 297.7 333.6 Net sales $ 6,082.0 $ 5,693.4 $ 2,053.7 $ 1,986.3 (a) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (b) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. (c) Represents sales principally to our mass merchant and standalone independent e-commerce customers. (d) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans
Defined Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans | 11. Defined Benefit Plans The components of net periodic benefit income for pension benefits for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Nine Months Ended September 30, Three Months Ended September 30, Pension Benefits Pension Benefits 2022 2021 2022 2021 Service cost $ 0.2 $ 0.3 $ - $ 0.1 Interest cost 19.1 18.0 6.4 6.0 Expected return on plan assets ( 26.6 ) ( 26.2 ) ( 8.9 ) ( 8.7 ) Recognition of actuarial losses 0.4 1.1 0.4 1.1 Net periodic benefit income $ ( 6.9 ) $ ( 6.8 ) $ ( 2.1 ) $ ( 1.5 ) Service cost relates to benefit accruals in an hourly Union defined benefit plan in our Outdoors & Security segment. All other defined benefit pension plans were frozen as of December 31, 2016. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The effective income tax rates for the nine and three months ended September 30 were 21.7 % and 18.4 % for 2022 and 22.0 % and 24.4 % for 2021, respectively. The difference between the Company’s effective tax rate for the nine and three months ended September 30, 2022 , and the U.S. statutory rate of 21.0 % primarily relates to state income taxes (net of federal income tax benefit), the benefit for decreases in uncertain tax positions and tax expense related to the tax audit settlement. In the third quarter of 2022, the Internal Revenue Service (“IRS”) completed its examination of the Company’s tax filings for 2017 and 2018. As a result of closing the IRS examination, the Company realized a net tax benefit related to the release of uncertain tax positions reduced by tax expenses to adjust accrued current and deferred income tax liabilities. As a result of the IRS audit, the Company is now recognizing deferred tax liability for full inclusion entities where the Company cannot assert permanent reinvestment. |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 13. Product Warranties We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the nine months ended September 30, 2022 and 2021, respectively. (In millions) Nine Months Ended 2022 2021 Reserve balance at January 1, $ 26.5 $ 24.5 Provision for warranties issued 35.1 26.5 Settlements made (in cash or in kind) ( 32.1 ) ( 25.5 ) Acquisitions 1.1 0.3 Foreign translation adjustments ( 0.5 ) 0.1 Reserve balance at September 30, $ 30.1 $ 25.9 |
Information on Business Segment
Information on Business Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 14. Information on Business Segments Net sales and operating income for the nine and three months ended September 30, 2022 and 2021 by segment were as follows: Nine Months Ended September 30, (In millions) 2022 2021 % Change Net Sales Water Innovations $ 1,928.6 $ 2,057.6 ( 6.3 ) % Outdoors & Security 1,662.4 1,525.4 9.0 Cabinets 2,491.0 2,110.4 18.0 Net sales $ 6,082.0 $ 5,693.4 6.8 % Operating Income (Loss) Water Innovations $ 462.7 $ 483.3 ( 4.3 ) % Outdoors & Security 223.3 211.7 5.5 Cabinets 243.3 214.2 13.6 Less: Corporate expenses ( 110.6 ) ( 79.3 ) ( 39.5 ) Operating income $ 818.7 $ 829.9 ( 1.3 ) % Three Months Ended September 30, (In millions) 2022 2021 % Change Net Sales Water Innovations $ 635.1 $ 741.4 ( 14.3 ) % Outdoors & Security 560.4 528.4 6.1 Cabinets 858.2 716.5 19.8 Net sales $ 2,053.7 $ 1,986.3 3.4 % Operating Income (Loss) Water Innovations $ 152.7 $ 166.5 ( 8.3 ) % Outdoors & Security 70.6 80.4 ( 12.2 ) Cabinets 100.9 67.2 50.1 Less: Corporate expenses ( 43.0 ) ( 27.5 ) ( 56.4 ) Operating income $ 281.2 $ 286.6 ( 1.9 ) % |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 15. Restructuring and Other Charges Pre-tax restructuring and other charges (gains) for the nine and three months ended September 30, 2022 and 2021 are shown below. (In millions) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Restructuring Other (a) Total Restructuring Other (a) Total Water Innovations $ 3.8 $ 0.7 $ 4.5 $ - $ 2.8 $ 2.8 Outdoors & Security 18.9 ( 6.1 ) 12.8 8.5 ( 0.4 ) 8.1 Cabinets 10.9 6.3 17.2 3.0 3.5 6.5 Corporate ( 0.5 ) - ( 0.5 ) - - - Total $ 33.1 $ 0.9 $ 34.0 $ 11.5 $ 5.9 $ 17.4 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. Restructuring and other charges (gains) in the first nine months of 2022 are largely related to severance, asset impairment and other costs associated with plant closures and headcount actions across all segments. Restructuring and other charges (gains) in the first nine months of 2021 were largely related to severance costs associated with the relocation of manufacturing facilities within our Cabinets and Outdoors & Security segments. (In millions) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Restructuring Other (a) Total Restructuring Other (a) Total Water Innovations $ 2.9 $ - $ 2.9 $ - $ 1.2 $ 1.2 Outdoors & Security 18.2 0.2 18.4 2.4 ( 0.4 ) 2.0 Cabinets 9.6 3.9 13.5 1.2 0.9 2.1 Corporate ( 0.5 ) - ( 0.5 ) - - - Total $ 30.2 $ 4.1 $ 34.3 $ 3.6 $ 1.7 $ 5.3 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. Restructuring and other charges (gains) in the third quarter of 2022 are largely related to severance, asset impairment and other costs associated with plant closures and headcount actions across all segments. Restructuring and other charges (gains) in the third quarter of 2021 were largely related to severance costs associated with headcount actions within our Outdoor & Security and Cabinets segments. Reconciliation of Restructuring Liability (In millions) Balance at 2022 Cash (a) Balance at Workforce reduction costs $ 4.7 $ 24.5 $ ( 7.1 ) $ 22.1 Other 1.0 8.6 ( 0.4 ) 9.2 Total $ 5.7 $ 33.1 $ ( 7.5 ) $ 31.3 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 2021 Cash (a) Balance at Workforce reduction costs $ 6.9 $ 9.6 $ ( 11.2 ) $ 5.3 Other 0.7 1.9 ( 1.5 ) 1.1 Total $ 7.6 $ 11.5 $ ( 12.7 ) $ 6.4 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. Earnings Per Share The computations of earnings per common share for the nine and three months ended September 30, 2022 and 2021were as follows: (In millions, except per share data) Nine Months Ended Three Months Ended 2022 2021 2022 2021 Net income $ 577.1 $ 597.1 $ 204.2 $ 202.1 Basic earnings per common share $ 4.40 $ 4.32 $ 1.58 $ 1.47 Diluted earnings per common share $ 4.37 $ 4.26 $ 1.57 $ 1.45 Basic average shares outstanding 131.0 138.3 129.3 137.8 Stock-based awards 1.0 1.9 0.8 1.9 Diluted average shares outstanding 132.0 140.2 130.1 139.7 Antidilutive stock-based awards excluded from weighted- 1.2 0.3 1.6 0.4 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Litigation We are defendants in lawsuits associated with the normal conduct of our businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon our results of operations, cash flows or financial condition, and where appropriate, these actions are being vigorously contested. Accordingly, the Company believes the likelihood of material loss is remote. Environmental Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Fortune Brands during the nine and three months ended September 30, 2022 and 2021 . We are involved in remediation activities to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs of each site are based on our best estimate of undiscounted future costs. Uncertainties about the status of laws, regulations, technology and information related to individual sites make it difficult to develop estimates of environmental remediation exposures. We believe compliance with current environmental protection laws (before taking into account estimated recoveries from third parties) will not have a material adverse effect upon our results of operations, cash flows or financial condition. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information on Balance Sheets | Supplemental information on our balance sheets is as follows: (In millions) September 30, December 31, Inventories: Raw materials and supplies $ 619.9 $ 455.1 Work in process 110.6 93.0 Finished products 771.8 645.7 Total inventories $ 1,502.3 $ 1,193.8 Property, plant and equipment, gross $ 2,438.8 $ 2,278.0 Less: accumulated depreciation 1,341.1 1,268.5 Property, plant and equipment, net $ 1,097.7 $ 1,009.5 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Net Carrying Amount of Goodwill by Segment | The change in the net carrying amount of goodwill by segment was as follows: (In millions) Water Innovations Outdoors & Cabinets Total Goodwill at December 31, 2021 (a) $ 814.1 $ 724.8 $ 926.2 $ 2,465.1 Year-to-date translation adjustments ( 24.5 ) ( 0.8 ) ( 1.9 ) ( 27.2 ) Acquisition-related adjustments 87.3 21.0 - 108.3 Goodwill at September 30, 2022 (a) $ 876.9 $ 745.0 $ 924.3 $ 2,546.2 (a) Net of accumulated impairment losses of $ 399.5 million in the Outdoors & Security segment. |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of September 30, 2022 and December 31, 2021 were as follows: (In millions) As of September 30, 2022 As of December 31, 2021 Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 681.5 $ - $ 681.5 $ 711.1 $ - $ 711.1 Amortizable intangible assets Tradenames 54.3 ( 16.4 ) 37.9 36.4 ( 15.5 ) 20.9 Customer and contractual relationships 1,016.5 ( 422.0 ) 594.5 975.7 ( 388.2 ) 587.5 Patents/proprietary technology 139.0 ( 77.0 ) 62.0 133.1 ( 68.8 ) 64.3 Total 1,209.8 ( 515.4 ) 694.4 1,145.2 ( 472.5 ) 672.7 Total identifiable intangibles $ 1,891.3 $ ( 515.4 ) $ 1,375.9 $ 1,856.3 $ ( 472.5 ) $ 1,383.8 |
Significant Assumptions Used to Estimate the Fair Values of Tradenames Impaired | The significant assumptions used to estimate the fair value of the tradename impaired in the second quarter of 2022 were as follows: Unobservable Input 2022 Discount rate 11.6 % Royalty rate (a) 3 % Long-term revenue growth rate (b) 1 % (a) Represents estimated percentage of sales a market-participant would pay to license the impaired tradename. (b) Selected long-term revenue growth rate within 10-year projection period of the impaired tradename. |
External Debt and Financing A_2
External Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Notes | The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of September 30, 2022 and December 31, 2021: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date September 30, 2022 December 31, 2021 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 497.9 $ 497.4 4.000% Senior Notes 600.0 September 2018 September 2023 599.0 598.2 3.250% Senior Notes 700.0 September 2019 September 2029 694.8 694.2 4.000% Senior Notes 450.0 March 2022 March 2032 445.6 - 4.500% Senior Notes 450.0 March 2022 March 2052 435.3 - Total Senior Notes $ 2,700.0 $ 2,672.6 $ 1,789.8 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The fair values of derivative instruments on the consolidated balance sheets as of September 30, 2022 and December 31, 2021 were as follows: Fair Value (In millions) Location September 30, December 31, Assets: Foreign exchange contracts Other current assets $ 9.5 $ 4.1 Interest rate hedges Other non-current assets 88.8 - Total assets $ 98.3 $ 4.1 Liabilities: Foreign exchange contracts Other current liabilities $ 10.9 $ 1.4 Commodity contracts Other current liabilities 7.6 0.1 Total liabilities $ 18.5 $ 1.5 |
Effects of Derivative Financial Instruments on Consolidated Statements of Income | The effects of derivative financial instruments on the statements of comprehensive income for the nine months ended September 30, 2022 and 2021 were as follows: (In millions) Classification and Amount of Gain (Loss) Nine Months Ended September 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 3,895.9 $ 85.4 $ 3.6 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 26.1 ) Derivative designated as hedging instruments - - 21.6 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.3 - - Commodity contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 4.2 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 2.5 - (In millions) Classification and Amount of Gain (Loss) Nine Months Ended September 30, 2021 Cost of Interest Other expense, net Total amounts per Consolidated Statements of Comprehensive Income $ 3,637.2 $ 63.2 $ 0.7 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 2.1 ) Derivative designated as hedging instruments - - ( 0.6 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.2 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 0.5 - The effects of derivative financial instruments on the statements of comprehensive income for the three months ended September 30, 2022 and 2021 were as follows: (In millions) Classification and Amount of Gain (Loss) Three Months Ended September 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,310.2 $ 33.1 $ 2.1 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 17.2 ) Derivative designated as hedging instruments - - 16.5 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 - - Commodity contracts: Amoun t of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 3.9 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.1 - (In millions) Classification and Amount of Gain (Loss) Three Months Ended September 30, 2021 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,280.0 $ 20.6 $ 1.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 3.8 ) Derivative designated as hedging instruments - - 3.1 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - - Interest rate contracts: - Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 0.2 - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Debt | The carrying value and fair value of debt as of September 30, 2022 and December 31, 2021 were as follows: (In millions) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price discounts and debt issuance costs $ 2,672.6 $ 2,338.9 $ 1,789.8 $ 1,902.9 2022 Revolving Credit Agreement 100.0 100.0 520.0 520.0 Commercial paper borrowings 613.3 615.2 - - 2021 Term Loan - - 400.0 400.0 Total debt $ 3,385.9 $ 3,054.1 $ 2,709.8 $ 2,822.9 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 were as follows: (In millions) Fair Value September 30, December 31, Assets Derivative financial instruments (Level 2) $ 98.3 $ 4.1 Deferred compensation program assets (Level 2) 18.8 19.8 Total assets $ 117.1 $ 23.9 Liabilities Derivative financial instruments (Level 2) $ 18.5 $ 1.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income | The after-tax components of and changes in accumulated other comprehensive (loss) income for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Foreign Derivative Defined Accumulated Balance at December 31, 2020 $ 7.2 $ 4.2 $ ( 66.5 ) $ ( 55.1 ) Amounts classified into accumulated other 2.9 1.4 ( 2.6 ) 1.7 Amounts reclassified from accumulated other - ( 1.8 ) 1.4 ( 0.4 ) Net current-period other comprehensive (loss) income 2.9 ( 0.4 ) ( 1.2 ) 1.3 Balance at September 30, 2021 $ 10.1 $ 3.8 $ ( 67.7 ) $ ( 53.8 ) Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 70.5 ) 97.3 ( 1.6 ) 25.2 Amounts reclassified from accumulated other - ( 3.1 ) 0.3 ( 2.8 ) Net current-period other comprehensive (loss) income ( 70.5 ) 94.2 ( 1.3 ) 22.4 Balance at September 30, 2022 $ ( 67.2 ) $ 97.1 $ ( 32.1 ) $ ( 2.2 ) (In millions) Foreign Derivative Defined Accumulated Balance at June 30, 2021 $ 25.0 $ 3.3 $ ( 66.7 ) $ ( 38.4 ) Amounts classified into accumulated other ( 14.9 ) 1.7 ( 2.4 ) ( 15.6 ) Amounts reclassified from accumulated other - ( 1.2 ) 1.4 0.2 Net current-period other comprehensive (loss) income ( 14.9 ) 0.5 ( 1.0 ) ( 15.4 ) Balance at September 30, 2021 $ 10.1 $ 3.8 $ ( 67.7 ) $ ( 53.8 ) Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Amounts classified into accumulated other ( 54.4 ) 24.9 ( 1.5 ) ( 31.0 ) Amounts reclassified from accumulated other - 0.7 0.3 1.0 Net current-period other comprehensive (loss) income ( 54.4 ) 25.6 ( 1.2 ) ( 30.0 ) Balance at September 30, 2022 $ ( 67.2 ) $ 97.1 $ ( 32.1 ) $ ( 2.2 ) |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The reclassifications out of accumulated other comprehensive loss for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.3 $ 0.2 Cost of products sold Commodity contracts ( 4.2 ) 0.9 Cost of products sold Interest rate contracts 2.5 0.5 Interest expense 2.6 1.6 Total before tax 0.5 0.2 Tax expense $ 3.1 $ 1.8 Net of tax Defined benefit plan items Recognition of actuarial losses $ ( 0.4 ) $ ( 1.1 ) Other (income) expense, net ( 0.4 ) ( 1.1 ) Total before tax 0.1 ( 0.3 ) Tax expense $ ( 0.3 ) $ ( 1.4 ) Net of tax Total reclassifications for the period $ 2.8 $ 0.4 Net of tax (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 1.3 $ 0.9 Cost of products sold Commodity contracts ( 3.9 ) - Cost of products sold Interest rate contracts 1.1 0.2 Interest expense ( 1.5 ) 1.1 Total before tax 0.8 0.1 Tax expense Total reclassifications for the period $ ( 0.7 ) $ 1.2 Net of tax Defined benefit plan items Recognition of actuarial losses $ ( 0.4 ) $ ( 1.1 ) Other (income) expense, net ( 0.4 ) ( 1.1 ) Total before tax 0.1 ( 0.3 ) Tax expense $ ( 0.3 ) $ ( 1.4 ) Net of tax Total reclassifications for the period $ ( 1.0 ) $ ( 0.2 ) Net of tax |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels for the nine and three months ended September 30, 2022 and 2021: (In millions) Nine Months Ended Three Months Ended 2022 2021 2022 2021 Wholesalers (a) $ 2,874.4 $ 2,594.4 $ 987.6 $ 933.6 Home Center retailers (b) 1,787.5 1,642.0 580.6 524.9 Other retailers (c) 309.9 326.6 99.7 128.5 Builder direct 248.1 194.8 88.1 65.7 U.S. net sales 5,219.9 4,757.8 1,756.0 1,652.7 International (d) 862.1 935.6 297.7 333.6 Net sales $ 6,082.0 $ 5,693.4 $ 2,053.7 $ 1,986.3 (a) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (b) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. (c) Represents sales principally to our mass merchant and standalone independent e-commerce customers. (d) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Income for Pension Benefits | The components of net periodic benefit income for pension benefits for the nine and three months ended September 30, 2022 and 2021 were as follows: (In millions) Nine Months Ended September 30, Three Months Ended September 30, Pension Benefits Pension Benefits 2022 2021 2022 2021 Service cost $ 0.2 $ 0.3 $ - $ 0.1 Interest cost 19.1 18.0 6.4 6.0 Expected return on plan assets ( 26.6 ) ( 26.2 ) ( 8.9 ) ( 8.7 ) Recognition of actuarial losses 0.4 1.1 0.4 1.1 Net periodic benefit income $ ( 6.9 ) $ ( 6.8 ) $ ( 2.1 ) $ ( 1.5 ) |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Activity Related to Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the nine months ended September 30, 2022 and 2021, respectively. (In millions) Nine Months Ended 2022 2021 Reserve balance at January 1, $ 26.5 $ 24.5 Provision for warranties issued 35.1 26.5 Settlements made (in cash or in kind) ( 32.1 ) ( 25.5 ) Acquisitions 1.1 0.3 Foreign translation adjustments ( 0.5 ) 0.1 Reserve balance at September 30, $ 30.1 $ 25.9 |
Information on Business Segme_2
Information on Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Income by Segment | Net sales and operating income for the nine and three months ended September 30, 2022 and 2021 by segment were as follows: Nine Months Ended September 30, (In millions) 2022 2021 % Change Net Sales Water Innovations $ 1,928.6 $ 2,057.6 ( 6.3 ) % Outdoors & Security 1,662.4 1,525.4 9.0 Cabinets 2,491.0 2,110.4 18.0 Net sales $ 6,082.0 $ 5,693.4 6.8 % Operating Income (Loss) Water Innovations $ 462.7 $ 483.3 ( 4.3 ) % Outdoors & Security 223.3 211.7 5.5 Cabinets 243.3 214.2 13.6 Less: Corporate expenses ( 110.6 ) ( 79.3 ) ( 39.5 ) Operating income $ 818.7 $ 829.9 ( 1.3 ) % Three Months Ended September 30, (In millions) 2022 2021 % Change Net Sales Water Innovations $ 635.1 $ 741.4 ( 14.3 ) % Outdoors & Security 560.4 528.4 6.1 Cabinets 858.2 716.5 19.8 Net sales $ 2,053.7 $ 1,986.3 3.4 % Operating Income (Loss) Water Innovations $ 152.7 $ 166.5 ( 8.3 ) % Outdoors & Security 70.6 80.4 ( 12.2 ) Cabinets 100.9 67.2 50.1 Less: Corporate expenses ( 43.0 ) ( 27.5 ) ( 56.4 ) Operating income $ 281.2 $ 286.6 ( 1.9 ) % |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Pre-tax Restructuring and Other Charges (gains) | Pre-tax restructuring and other charges (gains) for the nine and three months ended September 30, 2022 and 2021 are shown below. (In millions) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Restructuring Other (a) Total Restructuring Other (a) Total Water Innovations $ 3.8 $ 0.7 $ 4.5 $ - $ 2.8 $ 2.8 Outdoors & Security 18.9 ( 6.1 ) 12.8 8.5 ( 0.4 ) 8.1 Cabinets 10.9 6.3 17.2 3.0 3.5 6.5 Corporate ( 0.5 ) - ( 0.5 ) - - - Total $ 33.1 $ 0.9 $ 34.0 $ 11.5 $ 5.9 $ 17.4 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. (In millions) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Restructuring Other (a) Total Restructuring Other (a) Total Water Innovations $ 2.9 $ - $ 2.9 $ - $ 1.2 $ 1.2 Outdoors & Security 18.2 0.2 18.4 2.4 ( 0.4 ) 2.0 Cabinets 9.6 3.9 13.5 1.2 0.9 2.1 Corporate ( 0.5 ) - ( 0.5 ) - - - Total $ 30.2 $ 4.1 $ 34.3 $ 3.6 $ 1.7 $ 5.3 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Reconciliation of Restructuring Liability | Reconciliation of Restructuring Liability (In millions) Balance at 2022 Cash (a) Balance at Workforce reduction costs $ 4.7 $ 24.5 $ ( 7.1 ) $ 22.1 Other 1.0 8.6 ( 0.4 ) 9.2 Total $ 5.7 $ 33.1 $ ( 7.5 ) $ 31.3 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 2021 Cash (a) Balance at Workforce reduction costs $ 6.9 $ 9.6 $ ( 11.2 ) $ 5.3 Other 0.7 1.9 ( 1.5 ) 1.1 Total $ 7.6 $ 11.5 $ ( 12.7 ) $ 6.4 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computations of Earnings (Loss) per Common Share | The computations of earnings per common share for the nine and three months ended September 30, 2022 and 2021were as follows: (In millions, except per share data) Nine Months Ended Three Months Ended 2022 2021 2022 2021 Net income $ 577.1 $ 597.1 $ 204.2 $ 202.1 Basic earnings per common share $ 4.40 $ 4.32 $ 1.58 $ 1.47 Diluted earnings per common share $ 4.37 $ 4.26 $ 1.57 $ 1.45 Basic average shares outstanding 131.0 138.3 129.3 137.8 Stock-based awards 1.0 1.9 0.8 1.9 Diluted average shares outstanding 132.0 140.2 130.1 139.7 Antidilutive stock-based awards excluded from weighted- 1.2 0.3 1.6 0.4 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 29, 2022 | |
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 214 | $ (5.2) | |||
Aqualisa Holdings (International) Ltd. [Member] | |||||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||
Business acquisition, percentage of outstanding equity interests acquired | 100% | ||||
Payments to acquire businesses gross | $ 156 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 4.8 | ||||
Fair value allocated to assets acquired and liabilities assumed | $ 156 | ||||
Solar Innovations LLC [Member] | |||||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||
Business acquisition, percentage of outstanding equity interests acquired | 100% | ||||
Payments to acquire businesses gross | $ 61.6 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 4.8 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Detail) - Accounting Standards Update 202110 [Member] | 9 Months Ended |
Sep. 30, 2022 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | Disclosures by Business Entities About Government AssistanceIn November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832). The new guidance, codified in Accounting Standards Codification (“ASC”) 832, requires business entities that account for transactions with a government by applying a grant or contribution model by analogy to disclose information about government assistance recorded during the period. ASU 2021-10 is effective for all entities for annual reporting periods beginning after December 15, 2021. The adoption of this guidance did not have a material effect on our financial statements. |
Change in accounting principle, accounting standards update, adoption date | Dec. 15, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Change in accounting principle, accounting standards update, adopted | true |
Balance Sheet Information - Sup
Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventories: | ||
Raw materials and supplies | $ 619.9 | $ 455.1 |
Work in process | 110.6 | 93 |
Finished products | 771.8 | 645.7 |
Total inventories | 1,502.3 | 1,193.8 |
Property, plant and equipment, gross | 2,438.8 | 2,278 |
Less: accumulated depreciation | 1,341.1 | 1,268.5 |
Property, plant and equipment, net | $ 1,097.7 | $ 1,009.5 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 30, 2022 | Jan. 01, 2021 | Jul. 31, 2022 | Jan. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 29, 2022 | |
Business Acquisition [Line Items] | ||||||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 214 | $ (5.2) | ||||||
Flo Technologies, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Substantive participating rights expiration date | Jan. 01, 2021 | |||||||
Fair value allocated to assets acquired and liabilities assumed | $ 87.8 | |||||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | 9.7 | |||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 65.3 | |||||||
Final cash payment | $ 16.7 | |||||||
Flo Technologies, Inc. [Member] | Other (Income) Expense [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Non cash gain (loss) on remeasurement of existing investment | $ 4.5 | |||||||
Solar Innovations [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses gross | $ 61.6 | |||||||
Fair value allocated to assets acquired and liabilities assumed | 61.6 | |||||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 4.8 | |||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 21 | |||||||
Aqualisa Holdings (International) Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses gross | $ 156 | |||||||
Fair value allocated to assets acquired and liabilities assumed | $ 156 | |||||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 4.8 | |||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 87.3 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | ||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Goodwill | [1] | $ 2,546.2 | $ 2,465.1 |
Net identifiable intangible assets | 1,375.9 | 1,383.8 | |
Increase in gross identifiable intangible assets | 35 | ||
Tradename [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Estimated fair value of tradename | 59 | ||
Cabinets [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Goodwill | [1] | 924.3 | $ 926.2 |
Tradename impairment charges | 26 | ||
Cabinets [Member] | Tradename [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Impairment of intangible assets, trade names | $ 26 | ||
Tradenames and Customer Relationship [Member] | Minimum [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Amortizable identifiable intangible assets, estimated useful life | 5 years | ||
Tradenames and Customer Relationship [Member] | Maximum [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Amortizable identifiable intangible assets, estimated useful life | 30 years | ||
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors & Security segment. |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) | ||
Goodwill [Line Items] | ||
Beginning Balance | $ 2,465.1 | [1] |
Translation adjustments | (27.2) | |
Acquisition-related adjustments | 108.3 | |
Ending Balance | 2,546.2 | [1] |
Water Innovations [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 814.1 | [1] |
Translation adjustments | (24.5) | |
Acquisition-related adjustments | 87.3 | |
Ending Balance | 876.9 | [1] |
Outdoors & Security [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 724.8 | [1] |
Translation adjustments | (0.8) | |
Acquisition-related adjustments | 21 | |
Ending Balance | 745 | [1] |
Cabinets [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 926.2 | [1] |
Translation adjustments | (1.9) | |
Acquisition-related adjustments | 0 | |
Ending Balance | $ 924.3 | [1] |
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors & Security segment. |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions | Sep. 30, 2022 USD ($) |
Outdoors & Security [Member] | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 399.5 |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 681.5 | $ 711.1 |
Net Book Value, Indefinite-lived tradenames | 681.5 | 711.1 |
Gross Carrying Amounts, Finite Lived | 1,209.8 | 1,145.2 |
Accumulated Amortization, Finite Lived | (515.4) | (472.5) |
Net Book Value, Finite Lived | 694.4 | 672.7 |
Gross Carrying Amounts, Total identifiable intangibles | 1,891.3 | 1,856.3 |
Accumulated Amortization, Total identifiable intangibles | (515.4) | (472.5) |
Net Book Value, Total identifiable intangibles | 1,375.9 | 1,383.8 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 54.3 | 36.4 |
Accumulated Amortization, Finite Lived | (16.4) | (15.5) |
Net Book Value, Finite Lived | 37.9 | 20.9 |
Customer and contractual relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 1,016.5 | 975.7 |
Accumulated Amortization, Finite Lived | (422) | (388.2) |
Net Book Value, Finite Lived | 594.5 | 587.5 |
Patents/proprietary technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 139 | 133.1 |
Accumulated Amortization, Finite Lived | (77) | (68.8) |
Net Book Value, Finite Lived | $ 62 | $ 64.3 |
Goodwill and Identifiable Int_7
Goodwill and Identifiable Intangible Assets - Significant Assumptions Used to Estimate the Fair Values of Tradenames Impaired (Details) - Tradename [Member] | Sep. 30, 2022 | |
Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.116 | |
Royalty Rates [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.03 | [1] |
Long-term Revenue Growth Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.01 | [2] |
[1] Represents estimated percentage of sales a market-participant would pay to license the impaired tradename. Selected long-term revenue growth rate within 10-year projection period of the impaired tradename. |
External Debt and Financing A_3
External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Mar. 18, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2022 | Sep. 30, 2022 | Mar. 25, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 2,700 | ||||||
Aggregate outstanding notes | 2,700 | ||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 20.5 | $ 17.5 | |||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding | 1.4 | 0 | |||||
Long-term Debt | 2,672.6 | 1,789.8 | |||||
2021 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | ||||||
Principal Amount | $ 600 | ||||||
Debt Instrument, Description of Variable Rate Basis | interest rates under the 2021 Term Loan were variable based on SOFR at the time of the borrowing and the Company’s long-term credit rating and could range from SOFR + 0.725% to SOFR + 1.350%. | ||||||
Commercial Paper [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250 | ||||||
Long-term Debt | 613.3 | 0 | |||||
4.000% Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 500 | ||||||
Long-term Debt | 497.9 | 497.4 | |||||
LIBOR [Member] | 2021 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 400 | ||||||
SOFR [Member] | 2021 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 600 | ||||||
SOFR [Member] | 2021 Term Loan [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 0.725% | ||||||
SOFR [Member] | 2021 Term Loan [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 1.35% | ||||||
2022 Revolving Credit Agreement [Member] | 2021 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, outstanding borrowings | $ 1,100 | ||||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 900 | ||||||
Senior Notes [Member] | 4.000% Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 450 | ||||||
Unsecured Senior Notes, Interest rate | 4% | ||||||
Unsecured Senior notes, Maturity year | 2032 | ||||||
Senior Notes [Member] | 4.500% Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 450 | ||||||
Unsecured Senior Notes, Interest rate | 4.50% | ||||||
Unsecured Senior notes, Maturity year | 2052 | ||||||
2022 Revolving Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250 | ||||||
Term loan, outstanding borrowings | $ 100 | $ 520 | |||||
Debt instrument, covenant description | Under the 2022 Revolving Credit Agreement, the Company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. In addition, the Company's ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA generally may not exceed 3.5 to 1.0. | ||||||
Required minimum ratio of consolidated EBITDA to consolidated interest expense | 3 | ||||||
Ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA | 3.5 | ||||||
Debt Instrument, Description of Variable Rate Basis | Interest rates under the 2022 Revolving Credit Agreement are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s long-term credit rating and can range from SOFR + 1.02% to SOFR + 1.525%. | ||||||
Term loan maturity period | 2027-08 | ||||||
2022 Revolving Credit Agreement [Member] | SOFR [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 1.02% | ||||||
2022 Revolving Credit Agreement [Member] | SOFR [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 1.525% | ||||||
Second Amended And Incremental Agreement Term Loan Twenty Twenty One [Member] | 2021 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 1,100 |
External Debt and Financing A_4
External Debt and Financing Arrangements - Summary of Outstanding Notes (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 2,700 | ||
Net Carrying Value | 2,672.6 | $ 1,789.8 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 900 | ||
4.000% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 500 | ||
Issuance Date | 2015-06 | ||
Maturity Date | 2025-06 | ||
Net Carrying Value | $ 497.9 | 497.4 | |
4.000% Senior Notes [Member] | 2018 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 600 | ||
Issuance Date | 2018-09 | ||
Maturity Date | 2023-09 | ||
Net Carrying Value | $ 599 | 598.2 | |
4.000% Senior Notes [Member] | 2022 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 450 | ||
Issuance Date | 2022-03 | ||
Maturity Date | 2032-03 | ||
Net Carrying Value | $ 445.6 | 0 | |
4.000% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | 450 | ||
3.250% Senior Notes [Member] | 2019 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 700 | ||
Issuance Date | 2019-09 | ||
Maturity Date | 2029-09 | ||
Net Carrying Value | $ 694.8 | $ 694.2 | |
4.500% Senior Notes [Member] | 2022 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 450 | ||
Issuance Date | 2022-03 | ||
Maturity Date | 2052-03 | ||
Net Carrying Value | $ 435.3 | ||
4.500% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 450 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | |||||
Notional amount of foreign currency derivative hedges | $ 600 | $ 600 | |||
Value of terminated interest rate hedges | $ 600 | ||||
Foreign Exchange Contracts [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivative hedges | 553.7 | 553.7 | |||
Cash flow hedge [Member] | |||||
Derivative [Line Items] | |||||
Derivative instrument gain (loss) | 126.4 | $ 2.4 | 125.9 | $ 1.8 | |
Cash flow hedge [Member] | Foreign Exchange Contracts [Member] | |||||
Derivative [Line Items] | |||||
Estimated amount of net derivative gains in accumulated other comprehensive income reclassified to earnings within 12 months | $ 2.5 | 2.5 | |||
Total realized pre-tax gains | $ 39 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 98.3 | $ 4.1 |
Derivative liabilities, fair value | 18.5 | 1.5 |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 9.5 | 4.1 |
Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 10.9 | 1.4 |
Interest Rate Hedges [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 88.8 | 0 |
Commodity Contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 7.6 | $ 0.1 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign Exchange Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ 1.3 | $ 0.9 | $ 4.3 | $ 0.2 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Commodity Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ (3.9) | $ (4.2) | $ 0.9 | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | |
Interest rate contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ 1.1 | $ 0.2 | $ 2.5 | $ 0.5 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | Interest Expense |
Cost of products sold [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 1,310.2 | $ 1,280 | $ 3,895.9 | $ 3,637.2 |
Interest expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 33.1 | 20.6 | 85.4 | 63.2 |
Other income/expense, net [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 2.1 | 1.3 | 3.6 | 0.7 |
Other income/expense, net [Member] | Designated as hedging instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 16.5 | 3.1 | 21.6 | (0.6) |
Other income/expense, net [Member] | Foreign Exchange Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (17.2) | $ (3.8) | $ (26.1) | $ (2.1) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Sep. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Assets or liabilities measured at fair value on recurring basis | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 3,385.9 | $ 2,709.8 |
Carrying Value [Member] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 2,672.6 | 1,789.8 |
Carrying Value [Member] | 2022 Revolving Credit Agreement [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 100 | 520 |
Carrying Value [Member] | Commercial Paper Borrowings [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 613.3 | 0 |
Carrying Value [Member] | 2021 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 0 | 400 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 3,054.1 | 2,822.9 |
Fair Value [Member] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 2,338.9 | 1,902.9 |
Fair Value [Member] | 2022 Revolving Credit Agreement [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 100 | 520 |
Fair Value [Member] | Commercial Paper Borrowings [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 615.2 | 0 |
Fair Value [Member] | 2021 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 0 | $ 400 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | $ 98.3 | $ 4.1 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 117.1 | 23.9 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | 98.3 | 4.1 |
Deferred compensation program assets (Level 2) | 18.8 | 19.8 |
Derivative financial instruments (Level 2) | $ 18.5 | $ 1.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 2,952.4 | $ 3,043.5 | $ 3,064.8 | $ 2,775.5 |
Ending Balance | 3,030.1 | 3,054.6 | 3,030.1 | 3,054.6 |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (12.8) | 25 | 3.3 | 7.2 |
Amounts classified into accumulated other comprehensive (loss) income | (54.4) | (14.9) | (70.5) | 2.9 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (54.4) | (14.9) | (70.5) | 2.9 |
Ending Balance | (67.2) | 10.1 | (67.2) | 10.1 |
Derivative Hedging Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 71.5 | 3.3 | 2.9 | 4.2 |
Amounts classified into accumulated other comprehensive (loss) income | 24.9 | 1.7 | 97.3 | 1.4 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.7 | (1.2) | (3.1) | (1.8) |
Net current period other comprehensive (loss) income | 25.6 | 0.5 | 94.2 | (0.4) |
Ending Balance | 97.1 | 3.8 | 97.1 | 3.8 |
Defined Benefit Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (30.9) | (66.7) | (30.8) | (66.5) |
Amounts classified into accumulated other comprehensive (loss) income | (1.5) | (2.4) | (1.6) | (2.6) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.3 | 1.4 | 0.3 | 1.4 |
Net current period other comprehensive (loss) income | (1.2) | (1) | (1.3) | (1.2) |
Ending Balance | (32.1) | (67.7) | (32.1) | (67.7) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 27.8 | (38.4) | (24.6) | (55.1) |
Amounts classified into accumulated other comprehensive (loss) income | (31) | (15.6) | 25.2 | 1.7 |
Amounts reclassified from accumulated other comprehensive (loss) income | 1 | 0.2 | (2.8) | (0.4) |
Net current period other comprehensive (loss) income | (30) | (15.4) | 22.4 | 1.3 |
Ending Balance | $ (2.2) | $ (53.8) | $ (2.2) | $ (53.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | $ 1,310.2 | $ 1,280 | $ 3,895.9 | $ 3,637.2 |
Interest expense | 33.1 | 20.6 | 85.4 | 63.2 |
Recognition of actuarial losses | (0.4) | (1.1) | ||
Income before taxes | 250.2 | 267.3 | 736.9 | 766 |
Tax (expense) benefit | (46) | (65.2) | (159.8) | (168.9) |
Income after tax | 204.2 | 202.1 | 577.1 | 597.1 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income after tax | (1) | (0.2) | 2.8 | 0.4 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before taxes | (1.5) | 1.1 | 2.6 | 1.6 |
Tax (expense) benefit | 0.8 | 0.1 | 0.5 | 0.2 |
Income after tax | (0.7) | 1.2 | 3.1 | 1.8 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Foreign Exchange Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | 1.3 | 0.9 | 4.3 | 0.2 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Commodity Contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | (3.9) | 0 | (4.2) | 0.9 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Interest rate contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 1.1 | 0.2 | 2.5 | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Defined Benefit Plan Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before taxes | (0.4) | (1.1) | (0.4) | (1.1) |
Tax (expense) benefit | 0.1 | (0.3) | 0.1 | (0.3) |
Income after tax | (0.3) | (1.4) | (0.3) | (1.4) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Defined Benefit Plan Adjustments [Member] | Other (Income) Expense [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Recognition of actuarial losses | $ (0.4) | $ (1.1) | $ (0.4) | $ (1.1) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 2,053.7 | $ 1,986.3 | $ 6,082 | $ 5,693.4 | |
Wholesalers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 987.6 | 933.6 | 2,874.4 | 2,594.4 |
Home Center retailers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [2] | 580.6 | 524.9 | 1,787.5 | 1,642 |
Other retailers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [3] | 99.7 | 128.5 | 309.9 | 326.6 |
Builder direct [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 88.1 | 65.7 | 248.1 | 194.8 | |
United States [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,756 | 1,652.7 | 5,219.9 | 4,757.8 | |
International [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [4] | $ 297.7 | $ 333.6 | $ 862.1 | $ 935.6 |
[1] Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. Represents sales principally to our mass merchant and standalone independent e-commerce customers. Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans - Compone
Defined Benefit Plans - Components of Net Periodic Benefit Income for Pension Benefits (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial losses | $ 0.4 | $ 1.1 | ||
Net Periodic Benefit Cost [Member] | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0.1 | 0.2 | 0.3 |
Interest cost | 6.4 | 6 | 19.1 | 18 |
Expected return on plan assets | (8.9) | (8.7) | (26.6) | (26.2) |
Recognition of actuarial losses | 0.4 | 1.1 | 0.4 | 1.1 |
Net periodic benefit income | $ (2.1) | $ (1.5) | $ (6.9) | $ (6.8) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 18.40% | 24.40% | 21.70% | 22% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Product Warranties - Activity R
Product Warranties - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | ||
Reserve balance at the beginning of the year | $ 26.5 | $ 24.5 |
Provision for warranties issued | 35.1 | 26.5 |
Settlements made (in cash or in kind) | (32.1) | (25.5) |
Acquisitions | 1.1 | 0.3 |
Foreign translation adjustments | (0.5) | 0.1 |
Reserve balance at end of year | $ 30.1 | $ 25.9 |
Information on Business Segme_3
Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 2,053.7 | $ 1,986.3 | $ 6,082 | $ 5,693.4 |
Operating income | $ 281.2 | 286.6 | $ 818.7 | 829.9 |
Net Sales, Percentage Change vs. Prior Year | 3.40% | 6.80% | ||
Operating Income, Percentage Change vs. Prior Year | (1.90%) | (1.30%) | ||
Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ (43) | (27.5) | $ (110.6) | (79.3) |
Operating Income, Percentage Change vs. Prior Year | (56.40%) | (39.50%) | ||
Water Innovations [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 635.1 | 741.4 | $ 1,928.6 | 2,057.6 |
Operating income | $ 152.7 | 166.5 | $ 462.7 | 483.3 |
Net Sales, Percentage Change vs. Prior Year | (14.30%) | (6.30%) | ||
Operating Income, Percentage Change vs. Prior Year | (8.30%) | (4.30%) | ||
Outdoors & Security [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 560.4 | 528.4 | $ 1,662.4 | 1,525.4 |
Operating income | $ 70.6 | 80.4 | $ 223.3 | 211.7 |
Net Sales, Percentage Change vs. Prior Year | 6.10% | 9% | ||
Operating Income, Percentage Change vs. Prior Year | (12.20%) | 5.50% | ||
Cabinets [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 858.2 | 716.5 | $ 2,491 | 2,110.4 |
Operating income | $ 100.9 | $ 67.2 | $ 243.3 | $ 214.2 |
Net Sales, Percentage Change vs. Prior Year | 19.80% | 18% | ||
Operating Income, Percentage Change vs. Prior Year | 50.10% | 13.60% |
Restructuring and Other Charg_3
Restructuring and Other Charges - Pre-tax Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 30.2 | $ 3.6 | $ 33.1 | $ 11.5 | ||
Other Charges | 4.1 | 1.7 | 0.9 | [1] | 5.9 | [1] |
Total Charges | 34.3 | 5.3 | 34 | 17.4 | ||
Operating Segments [Member] | Water Innovations [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2.9 | 0 | 3.8 | 0 | ||
Other Charges | 0 | 1.2 | 0.7 | [1] | 2.8 | [1] |
Total Charges | 2.9 | 1.2 | 4.5 | 2.8 | ||
Operating Segments [Member] | Outdoors & Security [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 18.2 | 2.4 | 18.9 | 8.5 | ||
Other Charges | (0.2) | (0.4) | (6.1) | [1] | (0.4) | [1] |
Total Charges | 18.4 | 2 | 12.8 | 8.1 | ||
Operating Segments [Member] | Cabinets [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 9.6 | 1.2 | 10.9 | 3 | ||
Other Charges | 3.9 | 0.9 | 6.3 | [1] | 3.5 | [1] |
Total Charges | 13.5 | 2.1 | 17.2 | 6.5 | ||
Operating Segments [Member] | Corporate Segment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | (0.5) | 0 | (0.5) | 0 | ||
Other Charges | 0 | 0 | 0 | [1] | 0 | [1] |
Total Charges | $ (0.5) | $ 0 | $ (0.5) | $ 0 | ||
[1] (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Restructuring and Other Charg_4
Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | $ 5.7 | $ 7.6 | ||||
Provision | $ 30.2 | $ 3.6 | 33.1 | 11.5 | ||
Cash Expenditures | (7.5) | [1] | (12.7) | [2] | ||
Ending Balance | 31.3 | 6.4 | 31.3 | 6.4 | ||
Workforce Reduction Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 4.7 | 6.9 | ||||
Provision | 24.5 | 9.6 | ||||
Cash Expenditures | (7.1) | [1] | (11.2) | [2] | ||
Ending Balance | 22.1 | 5.3 | 22.1 | 5.3 | ||
Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 1 | 0.7 | ||||
Provision | 8.6 | 1.9 | ||||
Cash Expenditures | (0.4) | [1] | (1.5) | [2] | ||
Ending Balance | $ 9.2 | $ 1.1 | $ 9.2 | $ 1.1 | ||
[1] (a) Cash expenditures primarily relate to severance charges. (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 204.2 | $ 202.1 | $ 577.1 | $ 597.1 |
Basic earnings per common share | $ 1.58 | $ 1.47 | $ 4.40 | $ 4.32 |
Diluted earnings per common share | $ 1.57 | $ 1.45 | $ 4.37 | $ 4.26 |
Basic average shares outstanding | 129.3 | 137.8 | 131 | 138.3 |
Stock-based awards | 0.8 | 1.9 | 1 | 1.9 |
Diluted average shares outstanding | 130.1 | 139.7 | 132 | 140.2 |
Antidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share | 1.6 | 0.4 | 1.2 | 0.3 |