Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Fortune Brands Innovations, Inc. | ||
Entity Central Index Key | 0001519751 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 6,596,443,912 | ||
Entity Common Stock, Shares Outstanding | 128,272,026 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FBIN | ||
Security Exchange Name | NYSE | ||
Entity File Number | 1-35166 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 62-1411546 | ||
Entity Address, Address Line One | 520 Lake Cook Road | ||
Entity Address, City or Town | Deerfield | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60015-5611 | ||
City Area Code | 847 | ||
Local Phone Number | 484-4400 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Certain information contained in the registrant’s proxy statement for its Annual Meeting of Stockholders to be held on May 16, 2023 (to be filed not later than 120 days after the end of the registrant’s fiscal year) (the “2023 Proxy Statement”) is incorporated by reference into Part III hereof. | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Chicago, Illinois |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
NET SALES | [1] | $ 4,723 | $ 4,801.1 | $ 3,621.3 |
Cost of products sold | 2,790.1 | 2,840.6 | 2,157.4 | |
Selling, general and administrative expenses | 1,077.9 | 1,093.7 | 848.6 | |
Amortization of intangible assets | 48.3 | 46.4 | 24.2 | |
Asset impairment charges | 0 | 0 | 13 | |
Restructuring charges | 32.4 | 9.3 | 10.4 | |
OPERATING INCOME | 774.3 | 811.1 | 567.7 | |
Interest expense | 119.2 | 84.3 | 83.8 | |
Other expense (income), net | (12) | 0.4 | (15.3) | |
Income from continuing operations before income taxes | 667.1 | 726.4 | 499.2 | |
Income taxes | 127.2 | 166.7 | 110.8 | |
Income after tax | 539.9 | 559.7 | 388.4 | |
Equity in losses of affiliate | 0 | 0 | 7.6 | |
Income from continuing operations, net of tax | 539.9 | 559.7 | 380.8 | |
Income from discontinued operations, net of tax | 146.8 | 212.7 | 173.6 | |
NET INCOME | 686.7 | 772.4 | 554.4 | |
Less: Noncontrolling interests | 0 | 0 | 1.3 | |
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 686.7 | $ 772.4 | $ 553.1 | |
BASIC EARNINGS PER COMMON SHARE | ||||
Continuing operations | $ 4.14 | $ 4.07 | $ 2.74 | |
Discontinued operations | 1.13 | 1.55 | 1.25 | |
Basic earnings per share attributable to Fortune Brands | 5.27 | 5.62 | 3.99 | |
DILUTED EARNINGS PER COMMON SHARE | ||||
Continuing operations | 4.11 | 4.01 | 2.71 | |
Discontinued operations | 1.12 | 1.53 | 1.23 | |
Diluted earnings per share attributable to Fortune Brands | $ 5.23 | $ 5.54 | $ 3.94 | |
Basic average number of shares outstanding | [2] | 130.3 | 137.5 | 138.7 |
Diluted average number of shares outstanding | [2] | 131.3 | 139.5 | 140.2 |
[1] Based on country of destination Reflects the impact of share repurchases during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 686.7 | $ 772.4 | $ 554.4 | |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | (23.4) | (3.9) | 18.7 | |
Unrealized (losses) gains on derivatives: | ||||
Unrealized holding gains (losses) arising during period | 126.2 | 1.5 | (3.2) | |
Less: reclassification adjustment for (gains) losses included in net income | (5.5) | (2.2) | 2.4 | |
Unrealized (losses) gains on derivatives | 120.7 | (0.7) | (0.8) | |
Defined benefit plans: | ||||
Net actuarial gains (loss) arising during period | (21.7) | 47.5 | 0.3 | |
Defined benefit plans | (21.7) | 47.5 | 0.3 | |
Other comprehensive income (loss), before tax | 75.6 | 42.9 | 18.2 | |
Income tax (expense) benefit related to items of other comprehensive income | [1] | (21.9) | (12.4) | (0.7) |
Other comprehensive income, net of tax | 53.7 | 30.5 | 17.5 | |
COMPREHENSIVE INCOME | 740.4 | 802.9 | 571.9 | |
Less: comprehensive income attributable to noncontrolling interest | 0 | 0 | 1.3 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 740.4 | $ 802.9 | $ 570.6 | |
[1] Income tax (expense) benefit on unrealized (losses) gains on derivativ es of $( 27.3 ) million, $( 0.5 ) million and $( 0.5 ) million and on defined benefit plans o f $ 5.4 milli on, $( 11.9 ) million and $( 0.2 ) million in 2022, 2021 and 2020 , respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (losses) gains on derivatives, tax | $ (27.3) | $ (0.5) | $ (0.5) |
Defined benefit plans, tax | $ 5.4 | $ (11.9) | $ (0.2) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 642.5 | $ 425.6 | |
Accounts receivable less allowances for discounts and credit losses | 521.8 | 580.4 | |
Inventories | 1,021.3 | 889.5 | |
Other current assets | 274.8 | 135 | |
Current assets of discontinued operations | 0 | 714 | |
TOTAL CURRENT ASSETS | 2,460.4 | 2,744.5 | |
Property, plant and equipment, net of accumulated depreciation | 783.7 | 670.8 | |
Operating lease assets | 118.9 | 130.7 | |
Goodwill | [1] | 1,640.7 | 1,538.9 |
Other intangible assets, net of accumulated amortization | 1,000.8 | 968.1 | |
Other assets | 116.4 | 107.5 | |
Non-current assets of discontinued operations | 0 | 1,775.7 | |
TOTAL ASSETS | 6,120.9 | 7,936.2 | |
Current liabilities | |||
Short-term debt | 599.2 | 400 | |
Accounts payable | 421.6 | 561 | |
Other current liabilities | 523.9 | 646.4 | |
Current liabilities of discontinued operations | 0 | 363.7 | |
TOTAL CURRENT LIABILITIES | 1,544.7 | 1,971.1 | |
Long-term debt | 2,074.3 | 2,309.8 | |
Deferred income taxes | 136.9 | 81.7 | |
Accrued defined benefit plans | 79.9 | 80.9 | |
Operating lease liabilities | 95.4 | 108.8 | |
Other non-current liabilities | 102.8 | 170.2 | |
Non-current liabilities of discontinued operations | 0 | 148.9 | |
TOTAL LIABILITIES | 4,034 | 4,871.4 | |
Commitments (Note 18) and Contingencies (Note 22) | |||
Equity | |||
Common stock | [2] | 1.9 | 1.9 |
Paid-in capital | 3,069.6 | 3,018.3 | |
Accumulated other comprehensive income (loss) | 37.4 | (24.6) | |
Retained earnings | 2,323.8 | 2,807.9 | |
Treasury stock | (3,345.8) | (2,738.7) | |
TOTAL EQUITY | 2,086.9 | 3,064.8 | |
TOTAL LIABILITIES AND EQUITY | $ 6,120.9 | $ 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, 186.2 million s hares and 185.3 million shares issued at December 31, 2022 and 2021 , respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 186,200,000 | 185,300,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
OPERATING ACTIVITIES | ||||
Net income | $ 686.7 | $ 772.4 | $ 554.4 | |
Non-cash expense (income): | ||||
Depreciation | 126.5 | 125 | 121.5 | |
Amortization of intangibles | 65.1 | 64.1 | 42 | |
Non-cash lease expense | 45.2 | 42.5 | 37.4 | |
Stock-based compensation | 50.2 | 50.2 | 47.6 | |
Restructuring charges | 8 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | (4.7) | 1.6 | 2.4 | |
Loss (gain) on equity investments | 0 | 5 | (6.6) | |
Asset impairment charges | 46.4 | 0 | 26.1 | |
Recognition of actuarial (gain) loss | (1.2) | 0.8 | 3.2 | |
Deferred taxes | 14.8 | 1.7 | (14.6) | |
Amortization of deferred financing costs | 3.8 | 3.6 | 4.5 | |
Changes in assets and liabilities including effects subsequent to acquisitions | ||||
Decrease (Increase) in accounts receivable | 66.3 | (151.5) | (85.7) | |
Increase in inventories | (198.5) | (324.3) | (91.8) | |
(Decrease) increase in accounts payable | (161.2) | 137.7 | 142.9 | |
Decrease (increase) in other assets | 14 | 1 | (41.1) | |
(Decrease) increase in accrued taxes | (65.5) | 8.4 | 12.5 | |
(Decrease) increase in accrued expenses and other liabilities | (129.6) | (49.5) | 71 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 566.3 | 688.7 | 825.7 | |
INVESTING ACTIVITIES | ||||
Capital expenditures | [1] | (246.1) | (214.2) | (150.5) |
Proceeds from the disposition of assets | 8.2 | 1.9 | 1.6 | |
Cost of acquisitions, net of cash acquired | (217.6) | 5.2 | (715.2) | |
Other investing activities, net | 0 | 0 | (59.4) | |
NET CASH USED IN INVESTING ACTIVITIES | (455.5) | (207.1) | (923.5) | |
FINANCING ACTIVITIES | ||||
Increase in short-term debt | 700 | 400 | 0 | |
Repayment of short term debt | (1,100) | 0 | 0 | |
Issuance of long-term debt | 5,975.4 | 1,245 | 1,850 | |
Repayment of long-term debt | (5,612.5) | (1,510) | (1,465) | |
Proceeds from the exercise of stock options | 1.1 | 41.8 | 64.9 | |
Employee withholding taxes paid related to stock-based compensation | (27) | (13.3) | (10.7) | |
Dividends to stockholders | (145.6) | (143) | (133.3) | |
Dividends paid to non-controlling interests | 0 | 0 | (2.5) | |
Dividends received from MasterBrand | 940 | 0 | 0 | |
Cash retained by Masterbrand at Separation | (56.3) | 0 | 0 | |
Treasury stock purchases | (580.1) | (447.7) | (187.6) | |
Other financing activities, net | (22.5) | (1.4) | (4.2) | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | 72.5 | (428.6) | 111.6 | |
Effect of foreign exchange rate changes on cash | (11.1) | (1.9) | 16.3 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 172.2 | 51.1 | 30.1 | |
Cash, cash equivalents and restricted cash at beginning of year | [2] | 476.1 | 425 | 394.9 |
Cash, cash equivalents and restricted cash at end of year | [2] | 648.3 | 476.1 | 425 |
Cash paid during the year for | ||||
Interest | 102.9 | 76.8 | 76.2 | |
Income taxes paid directly to taxing authorities | 278.3 | 228.8 | 175.5 | |
Dividends declared but not paid | $ 29.4 | $ 37.8 | $ 36.1 | |
[1] Ca pital expenditures of $ 14.2 million, $ 19.6 million and $ 13.6 mill ion that have not been paid as of December 31, 2022, 2021 and 2020 , respectively, were excluded from the Consolidated Statement of Cash Flows. Restricted cash of $ 2.1 million and $ 3.7 million is inclu ded in Other current assets and Other assets, respectively, as of December 31, 2022 , $ 1.3 million and $ 3.3 million is included in Other current assets and Other assets, respectively, as of December 31, 2021 and $ 1.0 million and $ 4.9 million is included in Other current assets and Other assets, respectively, as of December 31, 2020 within our Consolidated Balance Sheet. The Consolidated Statements of Cash Flows presented above include cash flows from continuing and discontinued operations. Refer to Note 5, Discontinued Operations, for additional details. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capital expenditures incurred but not yet paid | $ 14.2 | $ 19.6 | $ 13.6 |
Other Current Assets [Member] | |||
Restricted Cash | 2.1 | 1.3 | 1 |
Other Assets [Member] | |||
Restricted Cash | $ 3.7 | $ 3.3 | $ 4.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | Non- controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 2,427.8 | $ 1.8 | $ 2,813.8 | $ (72.6) | $ 1,763 | $ (2,079.4) | $ 1.2 |
Comprehensive income: | |||||||
Net income | 554.4 | 553.1 | 1.3 | ||||
Other comprehensive income (loss) | 17.5 | 17.5 | |||||
Dividends received from MasterBrand | 0 | ||||||
Stock options exercised | 64.9 | 64.9 | |||||
Stock-based compensation | 36.9 | 47.6 | (10.7) | ||||
Treasury stock purchase | (187.6) | (187.6) | |||||
Dividends to non-controlling interest | (2.5) | $ (2.5) | |||||
Dividends | (135.9) | (135.9) | |||||
Ending 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 | 772.4 | 772.4 | |||||
Other comprehensive income (loss) | 30.5 | 30.5 | |||||
Dividends received from MasterBrand | 0 | ||||||
Stock options exercised | 41.9 | 0.1 | 41.8 | ||||
Stock-based compensation | 36.9 | 50.2 | (13.3) | ||||
Treasury stock purchase | (447.7) | (447.7) | |||||
Dividends | (144.7) | (144.7) | |||||
Ending 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 | 686.7 | 686.7 | |||||
Other comprehensive income (loss) | 53.7 | 53.7 | |||||
Distribution of MasterBrand | (1,965.2) | 8.3 | (1,973.5) | ||||
Dividends received from MasterBrand | 940 | 940 | |||||
Stock options exercised | 1.1 | 1.1 | |||||
Stock-based compensation | 23.2 | 50.2 | (27) | ||||
Treasury stock purchase | (580.1) | (580.1) | |||||
Dividends | (137.3) | (137.3) | |||||
Ending Balance at Dec. 31, 2022 | $ 2,086.9 | $ 1.9 | $ 3,069.6 | $ 37.4 | $ 2,323.8 | $ (3,345.8) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per Common share | $ 1.07 | $ 1.06 | $ 0.98 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation 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. References to “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Innovations, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. Basis of Presentation The consolidated financial statements in this Annual Report on Form 10-K have been derived from the accounts of the Company and its wholly-owned subsidiaries. The Company’s consolidated financial statements are based on a fiscal year ending December 31. Certain of the Company’s subsidiaries operate on a 52- or 53-week fiscal year ending during the month of December. On December 14, 2022, the Company completed the spin-off of its Cabinets business, MasterBrand, Inc. ("MasterBrand") via a tax-free spin-off transaction (the "Separation"). The Separation created two independent, publicly traded companies. Immediately following completion of the Separation, the Company changed its name from “Fortune Brands Home & Security, Inc.” to “Fortune Brands Innovations, Inc.” and its stock ticker symbol changed from “FBHS” to “FBIN” to better reflect its focus on activities core to brands and innovation. As a result of the Separation, our former Cabinets segment was disposed of and the operating results of the Cabinets business are reported as discontinued operations for all periods presented within this Annual Report on Form 10-K. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of the Company unless otherwise noted. See Note 5, Discontinued Operations, for additional information. 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. 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 . 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 100 % of the outstanding shares of Flo in a multi-phase transaction, which was completed in January 2022. 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 for the year-ended December 31, 2021, related to the remeasurement of our previously existing investment in Flo. During the fourth quarter of 2021 we recorded a mark-to-market expense of $ 2.2 million related to the remaining shares held by the minority shareholders. The financial results of Flo are included in the Company’s consolidated statements of comprehensive income for the year-ended December 31, 2021, the consolidated statement of cash flow for the year-ended December 31, 2021 and the consolidated balance sheet as of December 31, 2021. The results of operations are included in the Water Innovations segment. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Use of Estimates The presentation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates. Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. Allowances for Credit Losses Trade receivables are recorded at the stated amount, less allowances for discounts and credit losses. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency) or discounts related to early payment of accounts receivables by our customers. The allowances for credit losses include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for expected customer defaults on a general formula basis when it cannot yet be associated with specific customers. Expected credit losses are estimated using various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for credit losses was $ 5.5 million and $ 5.7 million as of December 31, 2022 and 2021, respectively. Inventories We use first-in, first-out inventory method. Inventory provisions are recorded to reduce inventory to the net realizable dollar value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes. Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value less costs to sell at the time the assets are being actively marketed for sale. Estimated useful lives of the related assets are as follows: Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years Long-lived Assets In accordance with Accounting Standards Codification ("ASC") requirements for Property, Plant and Equipment, a long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. We recorded impairment s of $ 0.2 million and $ 3.6 million related to a long-lived asset to be disposed of in selling, general and administrative expenses in 2021 and 2020, resp ectively. No impairments related to long-lived assets were recorded in 2022. Leases Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use our incremental borrowing rate in determining the present value of future lease payments. Our incremental borrowing rates include estimates related to the impact of collateralization and the economic environment where the leased asset is located. The operating lease assets also include any prepaid lease payments and initial direct costs incurred, but exclude lease incentives received at lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 9 yea rs, some of which may include options to extend or terminate the lease. Operating lease expense is recognized on a straight-line basis over the lease term. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Additionally, for certain equipment leases, we apply a portfolio approach and account for multiple lease components as a single lease component. Certain lease agreements include variable rental payments, including rental payments adjusted periodically for inflation. Variable rental payments are expensed during the period they are incurred and therefore are excluded from our lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Business Combinations We account for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations, which requires an allocation of the consideration we paid to the identifiable assets, intangible assets and liabilities based on the estimated fair values as of the closing date of the acquisition. The excess of the fair value of the purchase price over the fair values of these identifiable assets, intangible assets and liabilities is recorded as goodwill. Purchased intangibles other than goodwill are initially recognized at fair value and amortized over their useful lives unless those lives are determined to be indefinite. The valuation of acquired assets will impact future operating results. The fair value of identifiable intangible assets is determined using an income approach on an individual asset basis. Specifically, we use the multi-period excess earnings method to determine the fair value of customer relationships and the relief-from-royalty approach to determine the fair value of the tradename and proprietary technology. Determining the fair value of acquired intangibles involves significant estimates and assumptions, including forecasted revenue growth rates, EBITDA margins, percentage of revenue attributable to the tradename, contributory asset charges, customer attrition rate, market-participant discount rates and the assumed royalty rates. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, customer attrition rate, and other relevant factors. Goodwill and Indefinite-lived Intangible Assets In accordance with ASC requirements for Intangibles - Goodwill and Other, management reviews goodwill for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of the reporting unit. Impairment losses are recorded to the extent that the carrying value of the reporting unit exceeds its fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. To evaluate the recoverability of goodwill, we first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. Qualitative factors include changes in volume, margin, customers and the industry. If it is deemed more likely than not that goodwill for a reporting unit is impaired, we will perform a quantitative impairment test where fair value of each reporting unit is estimated using the income approach using a discounted cash flow model based on estimates of future cash flows combined with the market approach using comparable trading and transaction multiples based on guideline public companies. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. For the income approach, using a discounted cash flow model, we estimate the future cash flows of the reporting units to which the goodwill relates and then discount the future cash flows at a market-participant-derived discount rate. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our cash flow projections used to assess impairment of our goodwill and other intangible assets are significantly influenced by our projection for the U.S. new home starts and home repair remodel spending, our annual operating plans finalized in the fourth quarter of each year, and our ability to execute on various planned cost reduction initiatives supporting operating income improvements. Our projection for the U.S. home products market is inherently uncertain and is subject to a number of factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply comparable trading and transaction multiples based on guideline public companies to the current operating results of the reporting units to determine each reporting unit’s fair value. The significant assumptions that are used to determine the estimated fair value of reporting units for impairment testing are forecasted revenue growth rates, operating income margins, market-participant discount rates, EBITDA multiples and revenue multiples. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. We measure fair value of our indefinite-lived tradenames using the relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The significant assumptions that are used to determine the estimated fair value for indefinite-lived intangible assets upon acquisition and subsequent impairment testing are forecasted revenue growth rates, the assumed royalty rates and the market-participant discount rates. Of our $ 478.1 million indefinite-lived tradenames, $ 141.5 million relate to our Water Innovations segment and $ 336.6 million relate to our Outdoors & Security segment as of December 31, 2022. There were no impairments related to our continuing operations for the year ended December 31, 2022. See Note 6, “Goodwill and Identifiable Intangible Assets,” for additional information. 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, 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 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. Investments in Equity Securities In accordance with ASC requirements for investments in equity securities, we utilize the equity method to account for investments when we possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20 % of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. In applying the equity method, we record our investment at cost and subsequently increase or decrease the carrying amount of the investment by our proportionate share of the net earnings or losses of the investee. We record dividends or other equity distributions as reductions in the carrying value of our investment. When we do not have the ability to exercise significant influence over the operating and financial policies of the investee, we account for non-controlling investments in equity securities at fair value, with any gains or losses recognized through other income and expense. Equity securities without readily determinable fair values are recorded at cost minus impairment, plus or minus any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. As of December 31, 2022, all of our investments in our strategic partners where we do not have significant influence over the investee do not have readily determinable fair values. As of December 31, 2022 and 2021, the carrying value of our investments wer e $ 3.5 million and $ 3.5 million, respectively, which is included in other assets within our Consolidated Balance Sheet. There were no impairments or other changes resulting from observable prices changes recorded during the years ended December 31, 2022, 2021 or 2020 . Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. Service cost for 2022 relates to benefit accruals for an hourly Union group within the defined benefit plan for our Outdoors & Security segment. All other benefit accruals under our defined benefit pension plans were frozen as of, or prior to, December 31, 2016. We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation – Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. Compensation increases reflect expected future compensation trends. For postretirement benefits, our health care trend rate assumption is based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 15, “Defined Benefit Plans,” are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. Insurance Reserves We provide for expenses associated with workers’ compensation and product liability obligations when such amounts are probable and can be reasonably estimated. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability. Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC requirements for Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur. Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting basis and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2022, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $ 33.4 million. It is reasonably possible that the unrecognized tax benefits may decrease by $ 9.8 million in the next 12 months primarily as a result of the lapse of statutes of U.S. federal, state and foreign income taxes. Revenue Recognition The Company recognizes revenue for the sale of goods based on its assessment of when control transfers to our customers. See Note 14, “Revenue,” for additional information. Cost of Products Sold Cost of products sold includes all costs to make products saleable, such as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new products, store sell-through, merchandising support, levels of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in selling, general and administrative expenses include product displays, point of sale materials and media production costs. The costs included in the selling, general and administrative expenses category were $ 24.7 million, $ 25.2 million and $ 22.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $ 162.9 million, $ 164.0 million and $ 107.7 milli on in 2022, 2021 and 2020, respectively . Advertising costs, which amounted to $ 220.7 million, $ 231.7 million and $ 189.9 million in 2022, 2021 and 2020, respectively, are principally expensed as incurred. Advertising costs paid to customers as pricing rebates include product displays, marketing administration costs, media production costs and point-of-sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, wer e $ 47.7 million, $ 40.7 million and $ 40.4 mill ion in 2022, 2021 and 2020 , respectively. Advertising costs recorded in selling, general and administrative expenses were $ 173.0 million, $ 191.0 m illion and $ 149.5 mi llion in 2022, 2021 and 2020, respectively. Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which w ere $ 62.0 m illion, $ 64.1 million and $ 48.4 million in 2022, 2021 and 2020 , respectively, are expensed as incurred within selling, general and administrative expenses. Stock-base d Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance share award is based on the average of the high and low share prices on the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the average of the high and low share prices on the date of grant. See Note 13, “Stock-Based Compensation,” for additional information. Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Fortune Brands by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. See Note 21, “Earnings Per Share,” for further discussion. Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the “accumulated other comprehensive income” (“AOCI”) caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into functional currency with resulting transaction gains or losses recorded in other expense, net. Derivative Financial Instruments In accordance with ASC requirements for Derivatives and Hedging, we recognize all derivative contracts as either assets or liabilities on the balance sheet, and the measurement of those instruments is at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the changes in the fair value of the derivative are recorded in other comprehensive income (“OCI”) and are recognized in the consolidated statement of income when the hedged item affects earnings. If the derivative is designated as an effective economic hedge of the net investment in a foreign operation, the changes in the fair value of the derivative is reported in the cumulative translation adjustment section of OCI. Similar to foreign currency translation adjustments, these changes in fair value are recognized in earnings only when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. Deferred currency gains (loss) of $ 4.7 million, $( 2.6 ) million and $( 0.7 ) million (before tax impact) were reclassified into earnings for the years ended December 31, 2022, 2021 and 2020, respectively. Based on foreign exchange rates as of December 31, 2022, we estimate that $ 2.3 million of net derivative gain included in AOCI as of December 31, 2022 , will be reclassified to earnings within the next twelve months. Recently Issued Accounting Standards Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which is intended to simplify accounting for income taxes and improve consistency in application. ASU 2019-12 amends certain elements of income tax accounting, including but not limited to intraperiod tax allocations, step-ups in tax basis of goodwill and calculating taxes on year-to-date losses in interim periods. The guidance was effective for the Company’s fiscal year beginning January 1, 2021 . The adoption of this guidance did no t have a material effect on our financial statements. Effects of Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, which provides relief from accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. It also provides optional expedients to enable the continuance of hedge accounting where certain hedging relationships are impacted by reference rate reform. In January 2021 , the FASB issued ASU 2021-01, which further clarifies the scope of ASU 2020-04. This optional guidance is effective immediately and available to be used through December 31, 2024. The adoption of this guidance did no t have a material effect on our financial statements . Disclosures by Business Entities About Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832). The new guidance, codified in 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 . |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 3. Balance Sheet Information Supplemental information on our year-end consolidated balance sheets is as follows: (In millions) 2022 2021 Inventories: Raw materials and supplies $ 309.4 $ 247.3 Work in process 83.5 64.7 Finished products 628.4 577.5 Total inventories $ 1,021.3 $ 889.5 Property, plant and equipment: Land and improvements $ 51.9 $ 44.8 Buildings and improvements to leaseholds 285.1 270.9 Machinery and equipment 1,052.2 974.6 Construction in progress 225.1 141.8 Property, plant and equipment, gross 1,614.3 1,432.1 Less: accumulated depreciation 830.6 761.3 Property, plant and equipment, net of accumulated depreciation $ 783.7 $ 670.8 Other current liabilities: Accrued salaries, wages and other compensation $ 57.6 $ 132.4 Accrued customer programs 227.6 241.7 Accrued taxes 24.8 65.5 Dividends payable 29.4 37.8 Other accrued expenses 184.5 169.0 Total other current liabilities $ 523.9 $ 646.4 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions 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 not material 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, whic h includes $ 88.7 millio n 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. 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 in cludes $ 23.3 milli on 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 100 % of the outstanding shares of Flo in a multi-phase transaction, which was completed in January 2022. As part of this agreement, we acquired additional shares for $ 44.2 million in cash, including direct transactions costs, and entered into a forward contract to purchase all remaining shares of Flo at a future date in exchange for an additional $ 7.9 million in cash, which is included in other assets in our consolidated balance sheet. In April 2020, we acquired additional shares of Flo under a separate option agreement, which resulted in a non-cash gain of $ 4.4 million on the forward contract as included within other income for the year-ended December 31, 2020. As of December 31, 2020, we owned approximately 80 % of Flo’s outstanding shares. Starting in the first quarter of 2020, we applied the equity method of accounting to our investment in Flo as the minority stockholders had substantive participating rights which precluded consolidation in our result s of operations and statements of financial position and cash flows. Immediately prior to applying the equity method of accounting, we recognized a non-cash gain of $ 6.6 million within other income during the year-ended December 31, 2020 related to the remeasurement of our previously existing investment in Flo. The carrying value of our investment as of December 31, 2020 was $ 76.2 million. 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 for the year-ended December 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. During the fourth quarter of 2021, we recorded a mark-to-market expense of $ 2.2 million related to the remaining shares held by the minority shareholders . Larson Manufacturing In December 2020, we acquired 100 % of the outstanding equity of Larson Manufacturing ("Larson"), the North American market leading brand of storm, screen and security doors. Larson also sells related outdoor living products including retractable screens and porch windows. The acquisition of Larson is aligned with our strategic focus on the fast-growing outdoor living space. The Company completed the acquisition for a total purchase price of approximately $ 717.5 million, net of cash acquired. We financed the transaction with borrowings under our existing credit facility. The financial results of Larson were included in the Company’s December 31, 2021 and 2020 consolidated balance sheets and the Company's consolidated statements of income and statements of cash flow beginning January 2021. Larson's net sales, operating income and cash flows from the date of acquisition to December 31, 2020 were not material to the Company. The results of operations are included in the Outdoors & Security segment. We incurred $ 4.5 million of Larson acquisition-related transaction costs in the year ended December 31, 2020. The following unaudited pro forma summary presents consolidated financial information as if Larson had been acquired on January 1, 2019. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company's continuing operations and Larson. The pro forma results include: • estimated amortization of finite-lived intangible asset, including customer relationships and proprietary technology, • the estimated cost of the inventory adjustment to fair value, • interest expense associated with debt that would have been incurred in connection with the acquisition, • the reclassification of Larson transaction costs from 2020 to the first quarter of 2019, • the removal of certain transactions recorded in the historical financial statements of Larson related to assets and activities which were retained by the seller, and • adjustments to conform accounting policies. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2019. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. (In millions) 2020 Net sales $ 4,024.2 Net income $ 418.9 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 5. Discontinued Operations On December 14, 2022, the Company completed the Separation of MasterBrand. The consolidated statements of income and consolidated balance sheets for all prior periods have been adjusted to reflect the presentation of MasterBrand as discontinued operations. The following table summarizes the results of the discontinued operations for the years ended December 31, 2022, 2021 and 2020. (In millions, except per share amounts) 2022 2021 2020 NET SALES $ 3,199.7 $ 2,855.0 $ 2,469.0 Cost of products sold 2,279.3 2,068.5 1,768.7 Selling, general and administrative expense 619.7 485.3 433.8 Amortization of intangible asset 16.8 17.8 17.8 Asset impairment charges 46.4 — 9.5 Restructuring charges 25.1 4.2 5.5 DISCONTINUED OPERATING INCOME 212.4 279.2 233.7 Interest expense 0.2 0.1 0.1 Other expense, net 2.2 0.4 2.2 INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES 210.0 278.7 231.4 Income taxes 63.2 66.0 57.8 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 146.8 212.7 173.6 We incurred $ 63.2 million of transaction costs in connection with the Separation during the year ended December 31, 2022, which are included in the consolidated statements of operations as discontinued operations. These costs include legal, accounting and advisory fees, implementation and integration costs, duplicative costs for subscriptions and information technology systems, employee and contract costs, and other incremental separation costs related to the Separation. The following table summarizes the major classes of assets and liabilities of MasterBrand, which are now reflected as discontinued operations in the consolidated balance sheet: (In millions) 2021 ASSETS Current assets Cash and cash equivalents $ 45.9 Accounts receivable less allowances for discounts and credit losses 305.3 Inventories 304.3 Other current assets 58.5 TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS 714.0 Property, plant and equipment, net of accumulated depreciation 338.7 Operating lease assets 61.2 Goodwill 926.2 Other intangible assets, net of accumulated amortization 415.7 Other assets 33.9 TOTAL ASSETS OF DISCONTINUED OPERATIONS 2,489.7 LIABILITIES Current liabilities Accounts payable 203.9 Other current liabilities 159.8 TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 363.7 Deferred income taxes 94.3 Accrued defined benefit plans ( 1.2 ) Operating lease liabilities 50.0 Other non-current liabilities 5.8 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS $ 512.6 The following table summarizes the cash flows of MasterBrand, which are reflected in the consolidated statements of cash flows: (In millions) 2022 2021 2020 Net cash provided by operating activities $ 213.0 $ 162.7 $ 232.9 Net cash used in investing activities ( 55.8 ) ( 51.5 ) ( 26.7 ) Net cash used in financing activities — — — Effect of foreign exchange rate changes on cash ( 0.2 ) 0.1 0.8 Net increase (decrease) in cash and cash equivalents $ 157.0 $ 111.3 $ 207.0 MasterBrand depreciation for 2022, 2021 and 2020 was $ 43.6 million, $ 44.4 million and $ 48.0 million, respectively. MasterBrand amortization of intangibles for 2022, 2021 and 2020 was $ 16.8 million, $ 17.8 million and $ 17.8 million, respectively. MasterBrand capital expenditures for 2022, 2021 and 2020 were $ 55.8 million, $ 51.6 million and $ 27.3 million, respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 6. Goodwill and Identifiable Intangible Assets We had goodwill of $ 1,640.7 million and $ 1,538.9 million as of December 31, 2022 and 2021 , respectively. The change in the net carrying amount of goodwill by segment was as follows: (In millions) Water Innovations Outdoors & Security Total Balance at December 31, 2020 (a) $ 750.1 $ 718.6 $ 1,468.7 2021 translation adjustments ( 1.3 ) 0.1 ( 1.2 ) Acquisition-related adjustments 65.3 6.1 71.4 Balance at December 31, 2021 (a) $ 814.1 $ 724.8 $ 1,538.9 2022 translation adjustments ( 9.4 ) ( 0.8 ) ( 10.2 ) Acquisition-related adjustments 88.7 23.3 112.0 Balance at December 31, 2022 (a) $ 893.4 $ 747.3 $ 1,640.7 (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 intangible assets as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 As of December 31, 2021 (In millions) Gross Accumulated Net Book Gross Accumulated Net Book Indefinite-lived tradenames $ 478.1 $ — $ 478.1 $ 479.2 $ — $ 479.2 Amortizable intangible assets Tradenames 47.5 ( 6.8 ) 40.7 25.8 ( 5.2 ) 20.6 Customer and contractual relationships 662.6 ( 239.6 ) 423.0 611.2 ( 205.7 ) 405.5 Patents/proprietary technology 128.5 ( 69.5 ) 59.0 122.1 ( 59.3 ) 62.8 Total 838.6 ( 315.9 ) 522.7 759.1 ( 270.2 ) 488.9 Total identifiable intangibles $ 1,316.7 $ ( 315.9 ) $ 1,000.8 $ 1,238.3 $ ( 270.2 ) $ 968.1 We had identifiable intangible assets, principally tradenames and customer relationships, of $ 1,000.8 million and $ 968.1 million as of December 31, 2022 and 2021, respectively. The $ 78.4 million increase in gross identifiable intangible assets was primarily due to the acquisitions of Aqualisa and Solar. Amortizable intangible assets, principally customer relationships, are subject to amortization on a straight-line basis 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 include customer attrition rates and other relevant factors. We expect to record intangible amortization of approximately $ 50 million in 2023 , $ 50 million in 2024 , $ 50 million in 2025 , $ 49 million in 2026 and $ 47 million in 2027. During the second quarter of 2020, extended closures of luxury plumbing showrooms associated with COVID-19 led to lower than expected sales related to an indefinite-lived tradename within the Water Innovations segment, which combined with the updated financial outlook compared to previous forecasts and the continued uncertainty of the pandemic on the sales and profitability related to the tradename, led us to conclude that it was more likely than not that the indefinite-lived tradename was impaired. Therefore, we performed an interim impairment test as of June 30, 2020, and as a result we recognized a pre-tax impairment charge of $ 13.0 million related to this tradename. We also performed an evaluation of the useful life of this tradename and determined it was no longer indefinite-lived due to changes in long-term management expectations and future operating plans. As a result, the remaining carrying value of this tradename is being amortized over its estimated useful life of 30 years . The fair value of the impaired 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 value include forecasted revenue growth rates, assumed royalty rates, and market-participant discount rates that reflect 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 10, Fair Value Measurements). As of December 31, 2022, the fair value of one of our Outdoors & Security tradenames exceeded its carrying value of $ 111.0 million by less t han 10 %. A reduction in the estimated fair value of any of our tradenames could trigger 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, 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. The significant assumptions used to estimate the fair value of the tradename impaired during the year ended December 31, 2020 were as follows: Unobservable Input 2020 Discount rate 15.8 % Royalty rate (a) 5.0 % Long-term revenue growth rate (b) 3.0 % (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 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease assets, other current liabilities and operating lease liabilities in our consolidated balance sheets. Amounts recognized for finance leases as of and for the years ended December 31, 2022 and 2021 were immaterial. Operating lease expense recognized in the consolidated statement of comprehensive income for the years ended December 31, 2022, 2021 and 2020 and were $ 37.4 million, $ 35.6 million and $ 32.8 million, respectively, including approximately $ 2.6 million, $ 1.8 million and $ 1.8 million of short-term and variable lease costs for the years ended December 31, 2022, 2021 and 2020, respectively. Other information related to leases was as follows: (In millions, except lease term and discount rate) December 31, 2022 December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 35.1 $ 33.3 $ 30.3 Right-of-use assets obtained in exchange for operating $ 21.6 $ 33.9 $ 34.3 Weighted average remaining lease term - operating leases 5.6 years 6.1 years 6.9 years Weighted average discount rate - operating leases 3.6 % 3.5 % 3.9 % Total lease payments under non-cancellable operating leases as of December 31, 2022 were as follows: (In millions) Year Ending December 31, 2023 $ 34.1 2024 26.4 2025 19.8 2026 17.0 2027 14.2 Thereafter 28.6 Total lease payments 140.1 Less imputed interest ( 14.2 ) Total $ 125.9 Reported as of December 31, 2022 Other current liabilities $ 30.5 Operating lease liabilities 95.4 Total $ 125.9 |
External Debt and Financing Arr
External Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
External Debt and Financing Arrangements | 8. External Debt and Financing Arrangements Unsecured 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 December 31, 2022, the Company had aggregate outstanding notes in the principal 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 carrying value of the Notes, net of underwriting commissions, price discounts and debt issuance costs as of December 31, 2022 and December 31, 2021: (in millions) Net Carrying Value Coupon Rate Principal Amount Issuance Date Maturity Date December 31, 2022 December 31, 2021 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 498.1 $ 497.4 4.000% Senior Notes 600.0 September 2018 September 2023 599.2 598.2 3.250% Senior Notes 700.0 September 2019 September 2029 695.0 694.2 4.000% Senior Notes 450.0 March 2022 March 2032 445.8 - 4.500% Senior Notes 450.0 March 2022 March 2052 435.4 - Total Senior Notes $ 2,700.0 $ 2,673.5 $ 1,789.8 As of December 31, 2022 and December 31, 2021, the components of long-term debt were as follows: (In millions) 2022 2021 Notes (due 2023 to 2052 ) $ 2,673.5 $ 1,789.8 2022 Revolving Credit Agreement — 520.0 2021 Term Loan — 400.0 Total debt 2,673.5 2,709.8 Less: current portion 599.2 400.0 Total long-term debt $ 2,074.3 $ 2,309.8 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 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 December 31, 2022 and December 31, 2021, our outstanding borrowings under this credit facility and our previous revolving credit facility were zero and $ 520.0 million, respectively. As of December 31, 2022, we believe we are in compliance with all covenants under this credit facility. In November 2021, the Company entered into a 364-day, $ 400 million term loan credit agreement (“2021 Term Loan”) for general corporate purposes that matured 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 2022 Notes 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 in aggregate as of December 31, 2022 and $ 17.5 million as of December 31, 2021, of which there were no outstanding balances as of December 31, 2022 and 2021. The weighted-average interest rates on these borrowings were zero in 2022 and 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 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. In our debt agreements, there are normal and customary events of default which would permit the lenders to accelerate the debt if not cured within applicable grace periods, such as failure to pay principal or interest when due or a change in control of the Company. There were no events of default as of December 31, 2022. Debt payments due during the next five years as of December 31, 2022 are $ 600 million in 2023, zero in 2024, $ 500 million in 2025, zero in 2026, zero in 2027 and $ 1,600 million in 2028 and beyond. Interest payments due during the next five years as of December 31, 2022 are $ 105 million in 2023, $ 152 million in 2024 through 2025, $ 122 million in 2026 through 2027 and $ 642 million in 2028 and beyond. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 9. 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 account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. The gross notional amount of all commodity derivatives outstanding at December 31, 2022 was $ 17.8 million, representi ng a net settlement liability of $ 3.6 million. The gross notional amount of all commodity derivatives outstanding at December 31, 2021 was $ 5.0 million, representing a net settlement asset of zero . We may enter into foreign currency forward contracts to protect against foreign exchange risks associated with certain existing assets and liabilities, forecasted future cash flows, and net investments in foreign subsidiaries. Foreign exchange contracts related to forecasted future cash flows correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. We may enter into interest rate swap contracts to protect against interest rate risks associated with certain of our debt obligations. Interest rate swap contracts related to forecasted future interest payments correspond to the periods of the forecasted transactions. We account for these derivatives as cash flow hedges. These contracts were immaterial to the financial statements at December 31, 2021. For derivative instruments that are designated as fair value hedges, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized on the same line of the consolidated statements of income. The changes in the fair value of cash flow hedges are reported in OCI and are recognized in the consolidated statements of income when the hedged item affects earnings. The changes in fair value for net investment hedges are recognized in the consolidated statements of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. In addition, changes in the fair value of all economic hedge transactions are immediately recognized in current period earnings. 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 December 31, 2022 was $ 285.0 million, representing a net se ttlement asset of $ 4.2 million. Based on foreign exchange rates as of December 31, 2022, we estima te that $ 2.3 million of net derivative gains included in accumulated other comprehensive income as of December 31, 2022 will be reclassified to earnings within the next twelve months. The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2022 and 2021 were: Fair Value (In millions) Location 2022 2021 Assets: Foreign exchange contracts Other current assets $ 5.0 $ 3.6 Interest rate contracts Other current assets 84.6 — Total assets $ 89.6 $ 3.6 Liabilities: Foreign exchange contracts Other current liabilities $ 0.7 $ 0.7 Commodity contracts Other current liabilities 3.6 0.1 Total liabilities $ 4.3 $ 0.8 The effects of derivative financial instruments on the consolidated statements of income in 2022, 2021 and 2020 were: (In millions) Classification and Amount of Gain (Loss) 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Income $ 2,790.1 $ 119.2 $ 12.0 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — ( 22.4 ) Derivative designated as hedging instruments — — 21.3 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.8 — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 7.3 ) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 3.6 — (In millions) Classification and Amount of Gain (Loss) 2021 Cost of Interest Other expense, net Total amounts per Consolidated Statements of Income $ 2,840.6 $ 84.3 $ 0.4 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — ( 4.7 ) Derivative designated as hedging instruments — — 2.1 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 2.6 ) — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.6 — (In millions) Classification and Amount of Gain (Loss) 2020 Cost of Interest Other income, net Total amounts per Consolidated Statements of Income $ 2,157.4 $ 83.8 $ 15.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — 3.5 Derivative designated as hedging instruments — — ( 2.8 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.7 ) — — 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 — 0.6 — The cash flow hedges from continuing operations recognized in other comprehensive income were net gains (losses) of $ 119.0 million, $ 1.0 million and $( 1.8 ) million in 2022, 2021 and 2020 respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements ASC requirements for Fair 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, except for pension assets discussed in Note 14. The carrying value and fair value of debt as of December 31, 2022 and 2021 were as follows: (In millions) December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price $ 2,673.5 $ 2,412.6 $ 1,789.8 $ 1,902.9 2022 Revolving Credit Agreement — — 520.0 520.0 2021 Term Loan — — 400.0 400.0 The estimated fair value of our term loan and revolving credit facility is determined primarily using broker quotes, which are level 2 inputs. The estimated fair value of our Notes is determined by using quoted market prices of our debt securities, which are level 1 inputs. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021 were as follows: (In millions) Fair Value 2022 2021 Assets: Derivative asset financial instruments (level 2) $ 89.6 $ 3.6 Deferred compensation program assets (level 2) 14.9 14.6 Total assets $ 104.5 $ 18.2 Liabilities: Derivative liability financial instruments (level 2) $ 4.3 $ 0.8 The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Common Stock | 11. Common Stock The Company has 750 million authorized shares of common stock, par value $ 0.01 per share and 60 million authorized shares of preferred stock, par value $ 0.01 per share. The number of shares of common stock and treasury stock and the share activity for 2022 and 2021 were as follows: Common Shares Treasury Shares 2022 2021 2022 2021 Balance at the beginning of the year 135,064,296 138,660,154 50,252,566 45,406,158 Stock plan shares issued 856,175 1,250,550 — — Shares surrendered by optionees ( 316,450 ) ( 144,280 ) 316,450 144,280 Common stock repurchases ( 7,563,462 ) ( 4,702,128 ) 7,563,462 4,702,128 Balance at the end of the year 128,040,559 135,064,296 58,132,478 50,252,566 At December 31, 2022 , no shares of our preferred stock were outstanding. Our Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue our preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock. In 2022, we repurchased 7.6 million shares of outstanding common stock under the Company’s share repurchase program for $ 580.1 million. As of December 31, 2022, the Company’s total remaining share repurchase authorization under the remaining program was approximately $ 584.6 million. The share repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021 were as follows: (In millions) Details about Accumulated Other Affected Line Item in the 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.8 $ ( 2.6 ) Cost of products sold Interest rate contracts 3.6 0.6 Interest expense Commodity contracts ( 7.3 ) 1.3 Cost of products sold 1.1 ( 0.7 ) Total before tax 0.6 0.2 Tax expense $ 1.7 $ ( 0.5 ) Net of tax Defined benefit plan items Recognition of actuarial losses $ 1.3 $ ( 0.8 ) Other income (expense) 0.4 0.2 Tax benefit 1.7 $ ( 0.6 ) Net of tax Total reclassifications for the period $ 3.4 $ ( 1.1 ) Net of tax (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 15, “Defined Benefit Plans,” for additional information. The amounts in the table above reflect continuing operations, and exclude amounts related to discontinued operations of $ 4.5 million and $ 2.9 million in 2022 and 2021, respectively . 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 were as follows: (In millions) Foreign Derivative Defined Benefit Accumulated Balance at December 31, 2019 $ ( 11.5 ) $ 5.5 $ ( 66.6 ) $ ( 72.6 ) Amounts classified into accumulated other 18.7 ( 3.7 ) ( 2.7 ) 12.3 Amounts reclassified into earnings — 2.4 2.8 5.2 Net current period other comprehensive (loss) income 18.7 ( 1.3 ) 0.1 17.5 Balance at December 31, 2020 $ 7.2 $ 4.2 $ ( 66.5 ) $ ( 55.1 ) Amounts classified into accumulated other ( 3.9 ) 1.1 35.1 32.3 Amounts reclassified into earnings — ( 2.4 ) 0.6 ( 1.8 ) Net current period other comprehensive (loss) income ( 3.9 ) ( 1.3 ) 35.7 30.5 Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 23.4 ) 99.6 ( 14.6 ) 61.6 Amounts reclassified into earnings — ( 6.2 ) ( 1.7 ) ( 7.9 ) Net current period other comprehensive (loss) income ( 23.4 ) 93.4 ( 16.3 ) 53.7 Distribution of Masterbrand 8.0 ( 2.8 ) 3.1 8.3 Balance at December 31, 2022 $ ( 12.1 ) $ 93.5 $ ( 44.0 ) $ 37.4 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation As of December 31, 2022, we had awards outstanding under the Fortune Brands Home & Security, Inc. 2022 Long-Term Incentive Plan (the "2022 Plan"), the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan (the “2013 Plan”) and the 2011 Long-Term Incentive Plan (the “2011 Plan”) (collectively, the "Plans"). In 2022, stockholders approved the 2022 Plan, which provides for the granting of stock options, performance share awards ("PSAs"), restricted stock units ("RSUs') and other equity-based awards to employees, directors and consultants. No new stock-based awards can be made under the 2013 Plan or the 2011 Plan, but there are outstanding stock options under the Plans that continue to be exercisable. As of December 31, 2022, approximately 5.1 million shares of common stock remained authorized for issuance under the 2022 Plan. In addition, shares of common stock that were granted and subsequently expired, terminated, cancelled or forfeited, or were used to satisfy the required withholding taxes with respect to awards under the Plans may be recycled back into the total numbers of shares available for issuance under the 2022 Plan. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares. In connection with the Separation, under the provisions of the Plans and the Employee Matters Agreement entered into in connection with the Separation, the Company adjusted its outstanding equity awards in order to preserve the intrinsic value of the awards immediately before and after the Separation. At the time of the Separation, outstanding equity awards granted to Company service providers were adjusted to preserve the intrinsic value of the awards held, with unvested PSAs converting into time-based RSUs (“Adjusted RSUs”). All outstanding equity awards granted to MasterBrand service providers were converted into replacement awards of MasterBrand equity under the same methodology and ceased to represent equity awards with respect to the Company. Due to the adjustment of outstanding equity awards as a result of the Separation, the Company compared the fair value of the outstanding equity awards immediately before and after the Separation and, based on such comparison, no incremental fair value was required to be recognized. The number of equity awards granted and forfeited in the tables below primarily relate to the modifications in connection with the Separation, which resulted in the adjustment of Company shares subject to outstanding awards held by Company service providers and the forfeiture of Company equity awards by MasterBrand service providers. Stock-based compensation expense was as follows: (In millions) 2022 2021 2020 Restricted stock units $ 16.6 $ 17.8 $ 15.6 Stock option awards 6.6 5.3 4.6 Performance awards 15.6 20.7 19.5 Director awards 1.3 1.3 0.9 Total pre-tax expense 40.1 45.1 40.6 Tax benefit 9.2 7.9 6.2 Total after tax expense $ 30.9 $ 37.2 $ 34.4 Included in compensation costs are cash-settled restricted stock units of $ 0.3 million, $ 3.3 million and $ 2.3 million that are classified as a liability as of December 31, 2022, 2021 and 2020, respectively. Compensation costs that were capitalized in inventory were not material. Restricted Stock Units RSUs have been granted to officers and certain employees of the Company and represent the right to receive shares of Company common stock subject to continued employment through each vesting date. As a result of the Separation, the number of unvested RSUs awarded to the Company’s employees were adjusted to preserve the intrinsic value of such awards following the Separation. Also, all annual cycle PSAs outstanding on the date of the Separation were replaced with RSUs (“Adjusted RSUs”). For purposes of determining the number of Adjusted RSUs, the number of Adjusted RSUs earned was based upon projected performance results through the end of the applicable performance period, calculated based on actual performance from the beginning of the applicable performance period through the end of the fiscal quarter immediately preceding the Separation and expected performance through the remainder of the applicable performance period had the Separation not occurred. RSUs generally vest ratably over a three-year period, with the exception of the RSUs that were converted from PSAs, which vest at the end of the original three-year performance cycles. In addition, certain employees can elect to defer receipt of a portion of their RSU awards upon vesting. Compensation cost is recognized over the service period. We calculate the fair value of each RSU granted by using the average of the high and low share prices on the date of grant. A summary of activity with respect to RSUs outstanding under the Plans for the year ended December 31, 2022 was as follows: Number of Weighted-Average Non-vested at December 31, 2021 396,399 $ 75.45 Granted 1,485,979 $ 71.85 Vested ( 184,290 ) $ 69.37 Forfeited ( 519,762 ) $ 80.45 Non-vested at December 31, 2022 1,178,326 $ 69.65 The remaining unrecognized pre-tax compensation cost related to RSUs at December 31, 2022 was approximately $ 26.0 million, and the weighted-average period of time over which this cost will be recognized is 1.7 years. The fair value of RSUs that vested during 2022, 2021 and 2020 was $ 16.8 million, $ 15.6 million and $ 17.1 million, respectively. Stock Option Awards Stock options were granted to officers and certain employees of the Company and represent the right to purchase shares of Company common stock subject to continued employment through each vesting date. Stock options granted under the Plans generally vest over a three-year period and generally expire ten years from the grant date. As a result of the Separation, the number of stock options awarded to the Company’s employees and the corresponding exercise price of each award was adjusted to preserve the intrinsic value of such awards following the Separation. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: 2022 2021 2020 Current expected dividend yield 1.2 % 1.2 % 1.4 % Expected volatility 34.8 % 35.1 % 25.9 % Risk-free interest rate 2.3 % 0.6 % 1.2 % Expected term 5.2 years 5.2 years 5.3 years Beginning in 2020, the determination of expected volatility is based on the volatility of Fortune Brands common stock. The determination of expected volatility in prior years is based on a blended peer group volatility for companies in similar industries, at a similar stage of life and with similar market capitalization. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. The expected term was determined based on the historical employee exercise behavior and the contractual term of the options. The dividend yield is based on the Company’s estimated dividend over the expected term. The weighted-average grant date fair value of stock options granted under the Plans during the years ended December 31, 2022, 2021 and 2020 was $ 24.50 , $ 24.55 and $ 15.21 , respectively. A summary of Fortune Brands stock option activity related to Fortune Brands and former employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2022 was as follows: Options Weighted- Outstanding at December 31, 2021 1,819,151 $ 61.87 Granted 2,715,899 $ 60.02 Exercised ( 29,435 ) $ 37.83 Expired/forfeited ( 2,179,188 ) $ 65.26 Outstanding at December 31, 2022 2,326,427 $ 56.84 Options outstanding and exercisable at December 31, 2022 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Options Weighted- Weighted- Options Weighted- $ 20.01 to $ 76.63 2,326,427 5.93 $ 56.84 1,701,253 $ 51.98 (a) At December 31, 2022 , the aggregate intrinsic value of options outstanding was $ 12.6 million. (b) At December 31, 2022 , the weighted-average remaining contractual life of options exercisable was 5.0 years and the aggregate intrinsic value of options exercisable was $ 12.2 million. The remaining unrecognized compensation cost related to unvested awards at December 31, 2022 was $ 6.2 million, and the weighted-average period of time over which this cost will be recognized is 1.8 years. The fair value of options that vested during the years ended December 31, 2022, 2021 and 2020 was $ 26.2 million, $ 4.8 million and $ 8.0 million, respectively. The intrinsic value of Fortune Brands stock options exercised in the years ended December 31, 2022, 2021 and 2020 was $ 1.1 million, $ 40.1 million and $ 54.2 million, respectively. Performance Share Awards PSAs were granted to officers and certain employees of the Company in 2020, 2021 and 2022 and represented the right to earn shares of Company common stock based on the achievement of company-wide performance conditions during the three-year performance period. As a result of the Separation, these three outstanding PSAs were replaced with Adjusted RSUs as described above. For purposes of determining the number of Adjusted RSUs, the number of Adjusted RSUs earned was based upon projected performance results through the end of the applicable performance period, calculated based on actual performance from the beginning of the applicable performance period through the end of the fiscal quarter immediately preceding the Separation and expected performance through the remainder of the applicable performance period had the Separation not occurred. Compensation cost is amortized into expense over the performance period, which is generally three years, and is based on the probability of meeting performance targets. The fair value of each PSAs is based on the average of the high and low stock prices on the date of grant. The following table summarizes information about PSAs as of December 31, 2022, as well as activity during the year then ended. The number of performance share awards granted are shown below at the target award amounts: Number of Weighted-Average Non-vested at December 31, 2021 543,333 $ 64.68 Granted 708,111 $ 69.40 Vested ( 475,760 ) $ 47.76 Forfeited ( 755,112 ) $ 79.47 Non-vested at December 31, 2022 20,572 $ 75.59 The remaining unrecognized pre-tax compensation cost related to PSAs at December 31, 2022 was approximately $ 0.8 million, and the weighted-average period of time over which this cost will be recognized is 1.9 years. The fair value of PSAs that vested during 2022 was $ 11.4 million ( 475,760 shares). Director Awards Stock awards are used as part of the compensation provided to outside directors under the Plans. Awards are issued annually in the second quarter. In addition, outside directors can elect to have director cash compensation paid in stock or can elect to defer payment of stock. Compensation cost is expensed at the time of an award based on the fair value of a share at the date of the award. In 2022, 2021 and 2020, we awarded 17,649 , 12,114 and 20,181 shares of Company common stock to outside directors with a weighted-average fair value on the date of the award of $ 73.94 , $ 107.73 and $ 46.82 , respectively. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 14. Revenue Our principal performance obligations are the sale of faucets and accessories, fiberglass and steel entry-door systems and locks, safes, safety, security devices and decking, and kitchen and bath cabinets (collectively, “goods” or “products”). We recognize revenue for the sale of goods based on our assessment of when control transfers to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods to our customers. Payment terms on our product sales normally range from 30 to 90 days. Taxes assessed by a governmental authority that we collect are excluded from revenue. The expected costs associated with our contractual warranties will continue to be recognized as expense when the products are sold. See Note 18, Commitments, for further discussion. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. We account for shipping and handling costs that occur after the customer has obtained control of a product as a fulfillment activity (i.e., as an expense) rather than as a promised service (i.e., as a revenue element). These costs are classified within selling, general and administrative expenses. Settlement of our outstanding accounts receivable balances is normally within 30 to 90 days of the original sale transaction date. Obligations arise for us from customer rights to return our goods for any reason, including among others, product obsolescence, stock rotations, trade-in agreements for newer products and upon termination of a customer contract. We estimate future product returns at the time of sale based on historical experience and record a corresponding refund obligation, which amounted to $ 27.2 million and $ 22.9 million as of December 31, 2022 and 2021, respectively. Refund obligations are classified within other current liabilities in our consolidated balance sheet. Return assets related to the refund obligation are measured at the carrying amount of the goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value. Return assets are classified within other current assets and were approximately $ 2.9 million and $ 2.2 million as of December 31, 2022 and 2021, respectively. The Company disaggregates revenue from contracts with customers into (i) major sales distribution channels in the U.S. and (ii) total sales to customers outside the U.S. market as these categories depict the nature, amount, timing and uncertainty of revenues and cash flows that are affected by economic factors. The following table disaggregates our consolidated revenue by major sales distribution channels for the years ended December 31, 2022, 2021 and 2020. (In millions) December 31, 2022 December 31, 2021 December 31, 2020 Wholesalers (a) $ 2,100.0 $ 2,027.9 $ 1,500.6 Home Center retailers (b) 1,270.7 1,254.1 928.2 Other retailers (c) 392.9 440.7 346.0 U.S. net sales 3,763.6 3,722.7 2,774.8 International (d) 959.4 1,078.4 846.5 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 (a) Represents sales to customers whose business is oriented toward builders, professional tradespeople 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 China, Canada, Europe and Mexico. Practical Expedients Incremental costs of obtaining a contract include only those costs the Company incurs that would not have been incurred if the contract had not been obtained. These costs are required to be recognized as assets and amortized over the period that the related goods or services transfer to the customer. As a practical expedient, we expense as incurred costs to obtain a contract when the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. |
Defined Benefit Plans
Defined Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans | 15. Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees; however, the majority of these plans have been frozen to new participants, and benefit accruals were frozen for active participants on December 31, 2016. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65 . After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee’s length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. Also, from time to time, we may make contributions in excess of the legal funding requirements. Service cost for 2022 relates to benefit accruals for an hourly Union group within the defined benefit plan for our Outdoors & Security segment. All other benefit accruals under our defined benefit pension plans were frozen as of, or prior to, December 31, 2016. Net actuarial gains and losses occur when actual experience differs from any of the assumptions used to value defined benefit plans or when assumptions change as they may each year. The primary factors contributing to actuarial gains and losses are changes in the discount rate used to value obligations as of the measurement date and the differences between expected and actual returns on pension plan assets. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. (In millions) Pension Benefits Postretirement Benefits Obligations and Funded Status at December 31 2022 2021 2022 2021 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 712.0 $ 750.6 $ 9.8 $ 10.6 Service cost 0.2 0.4 0.4 0.2 Interest cost 20.4 19.3 0.4 0.2 Actuarial (loss) gain ( 155.9 ) ( 26.2 ) ( 1.2 ) ( 1.0 ) Benefits paid ( 33.1 ) ( 32.1 ) ( 0.4 ) ( 0.2 ) Projected benefit obligation at end of year $ 543.6 $ 712.0 $ 9.0 $ 9.8 Accumulated benefit obligation at end of year $ 543.6 $ 712.0 $ — $ — Change in Plan Assets: Fair value of plan assets at beginning of year $ 649.8 $ 624.2 $ — $ — Actual return on plan assets ( 144.8 ) 37.8 — — Employer contributions 10.6 19.9 0.4 ( 0.1 ) Benefits paid ( 33.1 ) ( 32.1 ) ( 0.4 ) 0.1 Fair value of plan assets at end of year $ 482.5 $ 649.8 $ — $ — Funded status (Fair value of plan assets less PBO) $ ( 61.1 ) $ ( 62.2 ) $ ( 9.0 ) $ ( 9.8 ) The actuarial loss is primarily a result of changes in discount rates from year to year. The accumulated benefit obligation exceeds the fair value of assets for all pension plans. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (In millions) 2022 2021 2022 2021 Current benefit payment liability $ ( 1.5 ) $ ( 1.3 ) $ ( 1.2 ) $ ( 0.8 ) Accrued benefit liability ( 59.6 ) ( 60.9 ) ( 7.8 ) ( 9.0 ) Net amount recognized $ ( 61.1 ) $ ( 62.2 ) $ ( 9.0 ) $ ( 9.8 ) As of December 31, 2021, we adopted the new Society of Actuaries MP-2020 mortality tables, resulting in an immaterial increase in plan benefit obligation, and deferred actuarial losses in accumulated other comprehensive income. The amounts in accumulated other comprehensive loss on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In millions) Pension Benefits Postretirement Benefits Net actuarial loss (gain) at December 31, 2020 $ 70.1 $ — Recognition of actuarial loss ( 1.1 ) 0.5 Current year actuarial loss ( 36.6 ) ( 0.9 ) Net actuarial loss (gain) at December 31, 2021 $ 32.4 $ ( 0.4 ) Recognition of actuarial loss 0.3 1.0 Current year actuarial gain 17.0 ( 1.1 ) Net actuarial loss at December 31, 2022 $ 49.7 $ ( 0.5 ) Components of net periodic benefit cost were as follows: Components of Net Periodic Benefit (Income) Cost Pension Benefits Postretirement Benefits (In millions) 2022 2021 2020 2022 2021 2020 Service cost $ 0.2 $ 0.4 $ ( 5.2 ) $ 0.4 $ 0.2 $ — Interest cost 20.4 19.3 35.2 0.4 0.2 — Expected return on plan assets ( 28.1 ) ( 27.4 ) ( 33.3 ) — — — Recognition of actuarial losses (gains) ( 0.3 ) 1.1 2.1 ( 1.0 ) ( 0.5 ) ( 0.1 ) Settlement/Curtailment losses (gains) — — 0.6 — — — Net periodic benefit (income) cost $ ( 7.8 ) $ ( 6.6 ) $ ( 0.6 ) $ ( 0.2 ) $ ( 0.1 ) $ ( 0.1 ) Assumptions Pension Benefits Postretirement Benefits 2022 2021 2020 2022 2021 2020 Weighted-Average Assumptions Used to Discount rate 5.2 % 2.9 % 2.6 % 5.8 % 3.9 % 5.9 % Weighted-Average Assumptions Used to Discount rate 2.9 % 2.6 % 3.3 % 3.9 % 5.9 % 6.4 % Expected long-term rate of return on plan assets 4.4 % 4.4 % 4.5 % — — — Postretirement Benefits 2022 2021 Assumed Health Care Cost Trend Rates Used to Determine Health care cost trend rate assumed for next year 5.8 / 6.3 % (a) 6.3 / 6.7 % (a) Rate that the cost trend rate is assumed to decline 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2028 2028 (a) The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate . Plan Assets The fair value of the pension assets by major category of plan assets as of December 31, 2022 and 2021 were as follows: (In millions) Total as of 2022 2021 Group annuity/insurance contracts (level 3) $ 26.0 $ 25.5 Collective trusts: Cash and cash equivalents 6.3 3.2 Equity 113.8 174.8 Fixed income 291.6 409.7 Multi-strategy hedge funds 21.3 17.2 Real estate 23.5 19.4 Total $ 482.5 $ 649.8 A reconciliation of Level 3 measurements was as follows: Group annuity/ (In millions) 2022 2021 January 1 $ 25.5 $ 24.8 Actual return on assets related to assets still held 0.5 0.7 December 31 $ 26.0 $ 25.5 Our defined benefit plans Master Trust own a variety of investment assets. All of these investment assets, except for group annuity/insurance contracts, are measured using net asset value per share as a practical expedient per ASC 820. Following the retrospective adoption of ASU 2015-07 (Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share), we excluded all investments measured using net asset value per share in the amount of $ 456.5 million and $ 624.3 million as of December 31, 2022 and 2021, respectively, from the tabular fair value hierarchy disclosure. The terms and conditions for redemptions vary for each class of the investment assets valued at net asset value per share as a practical expedient. Real estate assets may be redeemed quarterly with a 45 day redemption notice period. Investment assets in multi-strategy hedge funds may be redeemed semi-annually with a 95 day redemption notice period. Equity, fixed income and cash and cash equivalents have no specified redemption frequency and notice period and may be redeemed daily. As of December 31, 2022, we do not have an intent to sell or otherwise dispose of these investment assets at prices different than the net asset value per share. Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. The defined benefit asset allocation policy of the plans allows for an equity allocation of 0 % to 75 %, a fixed income allocation of 25 % to 100 %, a cash allocation of up to 25 % and other investments of up to 20 %. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocations meets the needs of the liability structure. Our 2023 expected blended long-term rate of return on plan assets of 6.1 % was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants. Estimated Future Retirement Benefit Payments The following retirement benefit payments are expected to be paid: (In millions) Pension Postretirement 2023 $ 35.6 $ 1.1 2024 36.1 1.1 2025 36.9 1.1 2026 37.8 1.1 2027 38.1 1.1 Years 2028-2032 191.7 5.7 Estimated future retirement benefit payments above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans. Defined Contribution Plan Contributions We sponsor a number of defined contribution plans. Contributions ar e determined under various formulas. Cash contributions by the Company related to these plans amounted to $ 36.3 mi llion, $ 33.1 million and $ 22.3 million in 2022, 2021 and 2020 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The components of income from continuing operations before income taxes and noncontrolling interests were as follows: (In millions) 2022 2021 2020 Domestic operations $ 563.1 $ 591.0 $ 396.1 Foreign operations 104.0 135.4 103.1 Income before income taxes and noncontrolling interests $ 667.1 $ 726.4 $ 499.2 Income tax expense in the consolidated statement of income consisted of the following: (In millions) 2022 2021 2020 Current Federal $ 62.4 $ 102.4 $ 50.5 Foreign 34.3 40.2 49.0 State and other 16.0 16.9 15.9 Deferred Federal 15.3 11.5 7.6 Foreign 1.5 ( 4.9 ) ( 12.6 ) State and Local ( 2.3 ) 0.6 0.4 Total income tax expense $ 127.2 $ 166.7 $ 110.8 A reconciliation between the federal statutory tax rate and the effective tax rate is as follows: (In millions) 2022 2021 2020 Income tax expense computed at federal statutory income tax rate $ 140.1 $ 152.5 $ 104.9 State and local income taxes, net of federal tax benefit 18.5 23.8 15.3 Foreign taxes at a different rate than U.S. federal statutory income tax rate 9.1 9.2 6.7 Provision for foreign earnings repatriation, net 1.2 — 2.1 Net adjustments for uncertain tax positions ( 26.2 ) ( 11.3 ) ( 4.2 ) Share-based compensation ( 5.4 ) ( 9.0 ) ( 9.8 ) Deferred tax impact of state tax rate changes ( 1.9 ) ( 0.7 ) ( 0.8 ) Valuation allowance (decrease) increase ( 5.8 ) 4.7 ( 7.1 ) Non-deductible executive compensation 7.5 5.0 1.6 Expiration of loss carryforwards — — 6.6 Miscellaneous other, net ( 9.9 ) ( 7.5 ) ( 4.5 ) Income tax expense as reported $ 127.2 $ 166.7 $ 110.8 Effective income tax rate 19.1 % 22.9 % 22.2 % The 2022 effective income tax rate was unfavorably impacted by state and local income taxes, foreign income taxed at higher rates, as well as non-deductible executive compensation. This expense was offset by favorable benefits for the release of uncertain tax positions, primarily related to audit closures and statute of limitations lapses, share-based compensation, and a valuation allowance decrease. The 2021 and 2020 effective income tax rates were unfavorably impacted by state and local income taxes, foreign income taxed at higher rates, as well as non-deductible executive compensation. Both 2021 and 2020 expenses were offset by favorable benefits for the release of uncertain tax positions, primarily related to statute of limitations lapses, and share-based compensation. A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) is as follows: (In millions) 2022 2021 2020 Unrecognized tax benefits—beginning of year $ 83.1 $ 96.1 $ 88.0 Gross additions—current year tax positions 2.1 2.6 7.2 Gross additions—prior year tax positions — 2.0 3.7 Gross additions (reductions)—purchase accounting adjustments — — 12.1 Gross reductions—prior year tax positions ( 50.5 ) ( 16.6 ) ( 11.7 ) Gross reductions—settlements with taxing authorities ( 1.3 ) ( 1.0 ) ( 3.2 ) Unrecognized tax benefits—end of year $ 33.4 $ 83.1 $ 96.1 The amount of UTBs that, if recognized as of December 31, 2022, would affect the Company’s effective tax rate is $ 33.4 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease by $ 9.8 million primarily as a result of the lapse of statutes of U.S. federal, state and foreign income taxes. The Company classifies interest and penalty accruals related to UTBs as income tax expense. In 2022 and 2021, the Company recognized an interest and penalty benefit of approximately $ 6.4 million and $ 1.9 million, respectively. In 2020, the Company recognized interest and penalty expense of approximately $ 0.7 million. As of December 31, 2022, and 2021, the Company had accruals for the payment of interest and penalties of $ 8.8 million and $ 15.5 million, respectively. The Company files income tax returns in the U.S., various state, and foreign jurisdictions. The Company has recently concluded its examination by the U.S. Internal Revenue Service for the periods related to 2017 and 2018 and is generally subject to examination by the IRS for years 2019 and later. In addition to the U.S., the Company has tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2017, Mexico for years after 2016 and China for years after 2018. The components of net deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: (In millions) 2022 2021 Deferred tax assets: Compensation and benefits $ 21.0 $ 30.8 Defined benefit plans 15.4 16.5 Capitalized inventories 17.8 21.0 Accounts receivable 4.2 5.0 Operating lease liabilities 31.0 34.5 Other accrued expenses 51.2 50.8 Net operating loss and other tax carryforwards 23.5 24.1 Valuation allowance ( 13.8 ) ( 20.7 ) Miscellaneous 6.7 24.0 Total deferred tax assets 157.0 186.0 Deferred tax liabilities: Fixed assets ( 60.3 ) ( 73.0 ) Intangible assets ( 152.5 ) ( 125.8 ) Operating lease assets ( 29.3 ) ( 32.6 ) Other investments ( 28.2 ) ( 0.9 ) Miscellaneous ( 6.5 ) ( 8.1 ) Total deferred tax liabilities ( 276.8 ) ( 240.4 ) Net deferred tax liability $ ( 119.8 ) $ ( 54.4 ) In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2022 and 2021 as follows: (In millions) 2022 2021 Other assets 17.1 27.3 Deferred income taxes ( 136.9 ) ( 81.7 ) Net deferred tax liability $ ( 119.8 ) $ ( 54.4 ) As of December 31, 2022, and 2021, the Company had deferred tax assets related to net operating losses and other tax carryforwards of $ 23.5 million and $ 24.1 million, respectively. Approximately $ 2.6 million expires between 2023 and 2027 , and the remainder will expire in 2028 and thereafter. The Company has provided a valuation allowance to reduce the carrying value of certain deferred tax assets. Management has concluded that, based on the available evidence, it is more likely than not that the deferred tax assets will not be fully realized. Accumulated foreign earnings and profits of the Company’s foreign subsidiaries as of December 31, 2017, were subject to a deemed repatriation tax and should not be subject to additional U.S. federal income tax upon an actual repatriation of these earnings. As of December 31, 2022, the Company has recorded an estimated deferred tax liability of $ 0.5 million for taxes that will be payable upon distribution of these earnings. Subsequent to December 31, 2017, we consider the unremitted earnings of certain foreign subsidiaries that impose local country taxes on dividends to be indefinitely reinvested. We have not provided deferred taxes on the remaining book over tax outside basis difference of $ 191.8 million related to these subsidiaries. The amount of unrecognized deferred tax liabilities for local country withholding taxes that would be owed related to these earnings is $ 12.2 million. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 17. Restructuring and Other Charges Pre-tax restructuring and other charges for the year ended December 31, 2022 were as follows: Year Ended December 31, 2022 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ 6.3 $ ( 0.2 ) $ 0.8 $ 6.9 Outdoors & Security 25.1 ( 6.2 ) — 18.9 Corporate 1.0 — — 1.0 Total $ 32.4 $ ( 6.4 ) $ 0.8 $ 26.8 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. Restructuring and other charges in 2022 are largely related to severance, asset impairment and other costs associated with plant closures and headcount actions across both segments. Pre-tax restructuring and other charges for the year ended December 31, 2021 were as follows: Year Ended December 31, 2021 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ ( 1.1 ) $ 2.0 $ 2.1 $ 3.0 Outdoors & Security 10.4 — ( 0.6 ) 9.8 Total $ 9.3 $ 2.0 $ 1.5 $ 12.8 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. Restructuring and other charges in 2021 were largely related to severance costs associated with the relocation of manufacturing facilities within our Outdoors & Security segment. Pre-tax restructuring and other charges for the year ended December 31, 2020 were as follows: Year Ended December 31, 2020 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ 6.0 $ 4.4 $ ( 1.7 ) $ 8.7 Outdoors & Security 3.0 0.9 — 3.9 Corporate 1.4 — 0.3 1.7 Total $ 10.4 $ 5.3 $ ( 1.4 ) $ 14.3 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. Restructuring and other charges in 2020 largely related to headcount actions associated with COVID-19 across both segments and costs associated with changes in our manufacturing processes within our Water Innovations segment. Reconciliation of Restructuring Liability (In millions) Balance at 2022 Cash (a) Non-Cash Balance at Workforce reduction costs $ 3.2 $ 19.4 $ ( 6.4 ) $ — $ 16.2 Other 0.8 13.0 ( 0.3 ) — 13.5 $ 4.0 $ 32.4 $ ( 6.7 ) $ — $ 29.7 (a) Cash expenditures primarily related to severance charges. (In millions) Balance at 2021 Cash (a) Non-Cash Balance at Workforce reduction costs $ 5.4 $ 8.5 $ ( 10.7 ) $ — $ 3.2 Other — 0.8 — — 0.8 $ 5.4 $ 9.3 $ ( 10.7 ) $ — $ 4.0 (a) Cash expenditures primarily related to severance charges. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 18. Commitments Purchase Obligations Purchase obligations of the Company as of December 31, 2022 were $ 561.3 million, of which $ 534.0 million is due within one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures. 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 years ended December 31, 2022, 2021 and 2020. (In millions) 2022 2021 2020 Reserve balance at the beginning of the year $ 19.5 $ 19.0 $ 18.5 Provision for warranties issued 8.1 8.5 4.8 Settlements made (in cash or in kind) ( 9.0 ) ( 8.4 ) ( 5.9 ) Acquisition 1.7 0.3 1.5 Foreign currency ( 0.2 ) 0.1 0.1 Reserve balance at end of year $ 20.1 $ 19.5 $ 19.0 |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 19. Information on Business Segments Following the Separation, the operating results of our Cabinets segment have been classified as discontinued operations for all periods presented, we have two operating segments. The tables below reflect the results of operations of the Company's operating segments in continuing operations, consistent with internal reporting used by the Company. We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below. The Water Innovations segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa and Shaws brands. The Outdoors & Security segment includes fiberglass and steel entry door systems under the Therma-Tru brand name, storm, screen and security doors under the Larson brand name, composite decking and railing under the Fiberon brand name, urethane millwork under the Fypon brand name, locks, safety and security devices, and electronic security products under the Master Lock and American Lock brands, and fire-resistant safes, security containers and commercial cabinets under the SentrySafe brand. Corporate expenses consist of headquarters administrative expenses. Corporate assets consist primarily of cash. The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. (In millions) 2022 2021 2020 Net sales: Water Innovations $ 2,570.2 $ 2,761.2 $ 2,202.1 Outdoors & Security 2,152.8 2,039.9 1,419.2 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2022, 2021 and 2020 . Both of our business segments sell to The Home Depot and Lowe’s. Net sales to The Home Depot were 11.7 %, 11.2 % and 14.1 % of net sales in 2022, 2021 and 2020 , respectively. Net sales to Lowe’s were 12.0 %, 11.9 % and 11.1 % of net sales in 2022, 2021 and 2020, respectively. (In millions) 2022 2021 2020 Operating income: Water Innovations $ 614.6 $ 629.7 $ 467.9 Outdoors & Security 289.6 291.9 201.3 Corporate ( 129.9 ) ( 110.5 ) ( 101.5 ) Operating income $ 774.3 $ 811.1 $ 567.7 (In millions) 2022 2021 2020 Total assets: Water Innovations $ 2,674.4 $ 2,614.7 $ 2,262.9 Outdoors & Security 2,820.0 2,619.4 2,453.8 Corporate 626.5 212.4 275.2 Total assets $ 6,120.9 $ 5,446.5 $ 4,991.9 Depreciation expense: Water Innovations $ 34.9 $ 37.1 $ 37.6 Outdoors & Security 45.5 40.7 33.3 Corporate 2.5 2.8 2.7 Depreciation expense $ 82.9 $ 80.6 $ 73.6 Amortization of intangible assets: Water Innovations $ 16.2 $ 14.9 $ 10.8 Outdoors & Security 32.1 31.5 13.4 Amortization of intangible assets $ 48.3 $ 46.4 $ 24.2 Capital expenditures: Water Innovations $ 52.1 $ 38.1 $ 30.5 Outdoors & Security 138.1 124.2 76.4 Corporate — 0.3 16.3 Capital expenditures, gross 190.2 162.6 123.2 Less: proceeds from disposition of assets ( 8.2 ) ( 1.8 ) ( 1.0 ) Capital expenditures, net $ 182.0 $ 160.8 $ 122.2 Net sales by geographic region (a) : United States $ 3,763.6 $ 3,722.7 $ 2,774.8 China 363.9 510.4 416.7 Canada 368.2 384.2 280.3 Other international 227.3 183.8 149.5 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 Property, plant and equipment, net: United States $ 673.5 $ 569.6 $ 487.3 Mexico 55.9 53.7 53.9 Canada 7.3 7.7 7.6 China 20.1 23.7 25.0 Other international 26.9 16.1 14.1 Property, plant and equipment, net $ 783.7 $ 670.8 $ 587.9 (a) Based on country of destination . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 20. Quarterly Financial Data (Unaudited) The following table sets forth our unaudited quarterly consolidated statements of operations data for each of the quarters indicated and has been retrospectively adjusted to reflect MasterBrand historical financial results as discontinued operations. The information for each quarter has been prepared on a basis consistent with our audited consolidated financial statements included in this Annual Report on Form 10-K, and reflect, in the opinion of management, all adjustments of a normal, recurring nature that are necessary for a fair statement of the financial information contained in those statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. (In millions, except per share amounts) 2022 1 st 2 nd 3 rd 4 th Net sales $ 1,140.2 $ 1,255.4 $ 1,195.5 $ 1,131.9 Gross profit 468.5 513.2 478.9 472.3 Income from continuing operations before income taxes 160.3 189.0 162.5 155.3 Net income from continuing operations 126.2 144.2 141.4 128.1 Net income (loss) from discontinued operations 54.8 47.7 62.7 ( 18.4 ) Basic income from continuing operations per share 0.94 1.11 1.09 1.00 Basic income(loss) from discontinued operations per share 0.41 0.37 0.49 ( 0.14 ) Diluted income from continuing operations per share 0.93 1.10 1.09 0.99 Diluted income (loss) from discontinued operations per share 0.41 0.37 0.48 ( 0.14 ) Shares used in computation of basic income per share 133.4 130.3 129.3 128.1 Shares used in computation of diluted income per share 134.7 131.2 130.1 129.0 2021 1 st 2 nd 3 rd 4 th Net sales $ 1,083.1 $ 1,230.1 $ 1,269.9 $ 1,218.0 Gross profit 448.7 504.7 511.2 495.9 Income from continuing operations before income taxes 151.3 200.5 200.1 174.5 Net income from continuing operations 121.1 159.4 151.7 127.5 Net income from discontinued operations 56.7 57.7 50.6 47.7 Basic income from continuing operations per share 0.88 1.15 1.10 0.94 Basic income from discontinued operations per share 0.41 0.42 0.37 0.35 Diluted income from continuing operations per share 0.85 1.14 1.09 0.93 Diluted income from discontinued operations per share 0.40 0.41 0.36 0.36 Shares used in computation of basic income per share 138.6 138.4 137.8 135.3 Shares used in computation of diluted income per share 140.6 140.4 139.7 137.3 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 21. Earnings Per Share The computations of earnings per common share were as follows: (In millions, except per share data) 2022 2021 2020 Income from continuing operations, net of tax $ 539.9 $ 559.7 $ 380.8 Less: Noncontrolling interests — — 1.3 Income from continuing operations $ 539.9 $ 559.7 $ 379.5 Income from discontinued operations 146.8 212.7 173.6 Net income attributable to Fortune Brands $ 686.7 $ 772.4 $ 553.1 Earnings per common share Basic Continuing operations $ 4.14 $ 4.07 $ 2.74 Discontinued operations $ 1.13 $ 1.55 $ 1.25 Basic earnings per share attributable to Fortune Brands $ 5.27 $ 5.62 $ 3.99 Diluted Continuing operations $ 4.11 $ 4.01 $ 2.71 Discontinued operations $ 1.12 $ 1.53 $ 1.23 Diluted earnings per share attributable to Fortune Brands $ 5.23 $ 5.54 $ 3.94 Basic average shares outstanding (a) 130.3 137.5 138.7 Stock-based awards 1.0 2.0 1.5 Diluted average shares outstanding (a) 131.3 139.5 140.2 Antidilutive stock-based awards excluded from weighted-average 1.3 0.3 0.8 (a) Reflects the impact of share repurchases during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | 22. Other (Income) Expense, Net The components of other (income) expense, net, for the years ended December 31, 2022, 2021 and 2020 were as follows: (In millions) 2022 2021 2020 Defined benefit plan $ ( 8.7 ) $ ( 7.1 ) $ ( 1.1 ) Foreign currency losses 3.3 4.6 1.5 Losses (gains) on equity investment — 5.0 ( 11.0 ) Other items, net ( 6.6 ) ( 2.1 ) ( 4.7 ) Total other (income) expense, net $ ( 12.0 ) $ 0.4 $ ( 15.3 ) |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Loss Contingency [Abstract] | |
Contingencies | 23. Contingencies Litigation The Company is a defendant in lawsuits that are ordinary, routine litigation matters incidental to its businesses. 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 the Company’s 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 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, excluding possible insurance recoveries or recoveries from other third parties. Uncertainties about the status of laws, regulations, technology and information related to individual sites make it difficult to develop estimates of future environmental remediation exposures. Some of the potential liabilities relate to sites we own, and some relate to sites we no longer own or never owned. Several of our subsidiaries have been designated as potentially responsible parties (“PRP”) under Superfund or similar state laws. As of December 31, 2022, twelve such instances have not been dismissed, settled or otherwise resolved. In 2022, none of our subsidiaries were identified as a PRP in a new instance and no instances were settled, dismissed or otherwise resolved. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. At December 31, 2022 and 2021, we had accruals of $ 0.3 million and $ 0.4 million, respectively, relating to environmental compliance and cleanup including, but not limited to, the above mentioned Superfund sites. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events Change in Reporting Segments Effective as of the first quarter of 2023, the Company revised its segment reporting from 2 reportable segments, Water Innovations and Outdoors & Security, to 3 reportable segments, Water Innovations, Outdoors and Security. The change in segment reporting was made to align with changes made in the manner our chief operating decision maker reviews the Company’s operating results in assessing performance and allocating resources. Fiscal Year Change On January 19, 2023, the Board of Directors of the Company approved a change to the Company’s fiscal year end from December 31 to a 52-or 53-week fiscal year ending on the Saturday closest but not subsequent to December 31, effective as of the commencement of the Company’s fiscal year on January 1, 2023. This change was made in order to align the Company’s fiscal year with that of its operating businesses and to align the Company’s reporting calendar with how the Company evaluates its businesses. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts For the years ended December 31, 2022, 2021 and 2020 (In millions) Balance at Charged to Write-offs Business Balance at 2022: Allowance for cash discounts and sales $ 135.9 $ 287.0 $ ( 306.7 ) $ — $ 116.2 Allowance for credit losses 5.7 3.7 ( 3.9 ) — 5.5 Allowance for deferred tax assets 20.7 ( 6.9 ) — — 13.8 2021: Allowance for cash discounts and sales $ 109.9 $ 296.9 $ ( 270.9 ) — $ 135.9 Allowance for credit losses 4.3 4.0 ( 2.6 ) — 5.7 Allowance for deferred tax assets 9.6 5.0 6.1 20.7 2020: Allowance for cash discounts and sales $ 64.0 $ 173.8 $ ( 130.7 ) $ 2.8 $ 109.9 Allowance for credit losses 2.2 4.8 ( 2.7 ) — 4.3 Allowance for deferred tax assets 16.8 ( 7.2 ) — — 9.6 (a) Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. (b) Represents purchase accounting adjustment related to the Larson acquisition within our Outdoors & Security segment in 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The presentation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents. |
Allowances for Credit Losses | Allowances for Credit Losses Trade receivables are recorded at the stated amount, less allowances for discounts and credit losses. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency) or discounts related to early payment of accounts receivables by our customers. The allowances for credit losses include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for expected customer defaults on a general formula basis when it cannot yet be associated with specific customers. Expected credit losses are estimated using various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for credit losses was $ 5.5 million and $ 5.7 million as of December 31, 2022 and 2021, respectively. |
Inventories | Inventories We use first-in, first-out inventory method. Inventory provisions are recorded to reduce inventory to the net realizable dollar value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value less costs to sell at the time the assets are being actively marketed for sale. Estimated useful lives of the related assets are as follows: Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years |
Long-lived Assets | Long-lived Assets In accordance with Accounting Standards Codification ("ASC") requirements for Property, Plant and Equipment, a long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. We recorded impairment s of $ 0.2 million and $ 3.6 million related to a long-lived asset to be disposed of in selling, general and administrative expenses in 2021 and 2020, resp ectively. No impairments related to long-lived assets were recorded in 2022. |
Leases | Leases Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use our incremental borrowing rate in determining the present value of future lease payments. Our incremental borrowing rates include estimates related to the impact of collateralization and the economic environment where the leased asset is located. The operating lease assets also include any prepaid lease payments and initial direct costs incurred, but exclude lease incentives received at lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 9 yea rs, some of which may include options to extend or terminate the lease. Operating lease expense is recognized on a straight-line basis over the lease term. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Additionally, for certain equipment leases, we apply a portfolio approach and account for multiple lease components as a single lease component. Certain lease agreements include variable rental payments, including rental payments adjusted periodically for inflation. Variable rental payments are expensed during the period they are incurred and therefore are excluded from our lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Business Combinations | Business Combinations We account for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations, which requires an allocation of the consideration we paid to the identifiable assets, intangible assets and liabilities based on the estimated fair values as of the closing date of the acquisition. The excess of the fair value of the purchase price over the fair values of these identifiable assets, intangible assets and liabilities is recorded as goodwill. Purchased intangibles other than goodwill are initially recognized at fair value and amortized over their useful lives unless those lives are determined to be indefinite. The valuation of acquired assets will impact future operating results. The fair value of identifiable intangible assets is determined using an income approach on an individual asset basis. Specifically, we use the multi-period excess earnings method to determine the fair value of customer relationships and the relief-from-royalty approach to determine the fair value of the tradename and proprietary technology. Determining the fair value of acquired intangibles involves significant estimates and assumptions, including forecasted revenue growth rates, EBITDA margins, percentage of revenue attributable to the tradename, contributory asset charges, customer attrition rate, market-participant discount rates and the assumed royalty rates. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, customer attrition rate, and other relevant factors. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets In accordance with ASC requirements for Intangibles - Goodwill and Other, management reviews goodwill for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of the reporting unit. Impairment losses are recorded to the extent that the carrying value of the reporting unit exceeds its fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. To evaluate the recoverability of goodwill, we first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. Qualitative factors include changes in volume, margin, customers and the industry. If it is deemed more likely than not that goodwill for a reporting unit is impaired, we will perform a quantitative impairment test where fair value of each reporting unit is estimated using the income approach using a discounted cash flow model based on estimates of future cash flows combined with the market approach using comparable trading and transaction multiples based on guideline public companies. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. For the income approach, using a discounted cash flow model, we estimate the future cash flows of the reporting units to which the goodwill relates and then discount the future cash flows at a market-participant-derived discount rate. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our cash flow projections used to assess impairment of our goodwill and other intangible assets are significantly influenced by our projection for the U.S. new home starts and home repair remodel spending, our annual operating plans finalized in the fourth quarter of each year, and our ability to execute on various planned cost reduction initiatives supporting operating income improvements. Our projection for the U.S. home products market is inherently uncertain and is subject to a number of factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply comparable trading and transaction multiples based on guideline public companies to the current operating results of the reporting units to determine each reporting unit’s fair value. The significant assumptions that are used to determine the estimated fair value of reporting units for impairment testing are forecasted revenue growth rates, operating income margins, market-participant discount rates, EBITDA multiples and revenue multiples. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. We measure fair value of our indefinite-lived tradenames using the relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The significant assumptions that are used to determine the estimated fair value for indefinite-lived intangible assets upon acquisition and subsequent impairment testing are forecasted revenue growth rates, the assumed royalty rates and the market-participant discount rates. Of our $ 478.1 million indefinite-lived tradenames, $ 141.5 million relate to our Water Innovations segment and $ 336.6 million relate to our Outdoors & Security segment as of December 31, 2022. There were no impairments related to our continuing operations for the year ended December 31, 2022. See Note 6, “Goodwill and Identifiable Intangible Assets,” for additional information. 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, 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 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. |
Equity securities | Investments in Equity Securities In accordance with ASC requirements for investments in equity securities, we utilize the equity method to account for investments when we possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20 % of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. In applying the equity method, we record our investment at cost and subsequently increase or decrease the carrying amount of the investment by our proportionate share of the net earnings or losses of the investee. We record dividends or other equity distributions as reductions in the carrying value of our investment. When we do not have the ability to exercise significant influence over the operating and financial policies of the investee, we account for non-controlling investments in equity securities at fair value, with any gains or losses recognized through other income and expense. Equity securities without readily determinable fair values are recorded at cost minus impairment, plus or minus any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. As of December 31, 2022, all of our investments in our strategic partners where we do not have significant influence over the investee do not have readily determinable fair values. As of December 31, 2022 and 2021, the carrying value of our investments wer e $ 3.5 million and $ 3.5 million, respectively, which is included in other assets within our Consolidated Balance Sheet. There were no impairments or other changes resulting from observable prices changes recorded during the years ended December 31, 2022, 2021 or 2020 . |
Defined Benefit Plans | Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. Service cost for 2022 relates to benefit accruals for an hourly Union group within the defined benefit plan for our Outdoors & Security segment. All other benefit accruals under our defined benefit pension plans were frozen as of, or prior to, December 31, 2016. We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation – Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. Compensation increases reflect expected future compensation trends. For postretirement benefits, our health care trend rate assumption is based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 15, “Defined Benefit Plans,” are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. |
Insurance Reserves | Insurance Reserves We provide for expenses associated with workers’ compensation and product liability obligations when such amounts are probable and can be reasonably estimated. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability. |
Litigation Contingencies | Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC requirements for Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur. |
Income Taxes | Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting basis and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2022, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $ 33.4 million. It is reasonably possible that the unrecognized tax benefits may decrease by $ 9.8 million in the next 12 months primarily as a result of the lapse of statutes of U.S. federal, state and foreign income taxes. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue for the sale of goods based on its assessment of when control transfers to our customers. See Note 14, “Revenue,” for additional information. |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes all costs to make products saleable, such as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. |
Customer Program Costs | Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new products, store sell-through, merchandising support, levels of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in selling, general and administrative expenses include product displays, point of sale materials and media production costs. The costs included in the selling, general and administrative expenses category were $ 24.7 million, $ 25.2 million and $ 22.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $ 162.9 million, $ 164.0 million and $ 107.7 milli on in 2022, 2021 and 2020, respectively . Advertising costs, which amounted to $ 220.7 million, $ 231.7 million and $ 189.9 million in 2022, 2021 and 2020, respectively, are principally expensed as incurred. Advertising costs paid to customers as pricing rebates include product displays, marketing administration costs, media production costs and point-of-sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, wer e $ 47.7 million, $ 40.7 million and $ 40.4 mill ion in 2022, 2021 and 2020 , respectively. Advertising costs recorded in selling, general and administrative expenses were $ 173.0 million, $ 191.0 m illion and $ 149.5 mi llion in 2022, 2021 and 2020, respectively. Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which w ere $ 62.0 m illion, $ 64.1 million and $ 48.4 million in 2022, 2021 and 2020 , respectively, are expensed as incurred within selling, general and administrative expenses. |
Stock-based Compensation | Stock-base d Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance share award is based on the average of the high and low share prices on the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the average of the high and low share prices on the date of grant. See Note 13, “Stock-Based Compensation,” for additional information. |
Earnings Per Share | Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Fortune Brands by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. See Note 21, “Earnings Per Share,” for further discussion. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the “accumulated other comprehensive income” (“AOCI”) caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into functional currency with resulting transaction gains or losses recorded in other expense, net. |
Derivative Financial Instruments | Derivative Financial Instruments In accordance with ASC requirements for Derivatives and Hedging, we recognize all derivative contracts as either assets or liabilities on the balance sheet, and the measurement of those instruments is at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the changes in the fair value of the derivative are recorded in other comprehensive income (“OCI”) and are recognized in the consolidated statement of income when the hedged item affects earnings. If the derivative is designated as an effective economic hedge of the net investment in a foreign operation, the changes in the fair value of the derivative is reported in the cumulative translation adjustment section of OCI. Similar to foreign currency translation adjustments, these changes in fair value are recognized in earnings only when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. Deferred currency gains (loss) of $ 4.7 million, $( 2.6 ) million and $( 0.7 ) million (before tax impact) were reclassified into earnings for the years ended December 31, 2022, 2021 and 2020, respectively. Based on foreign exchange rates as of December 31, 2022, we estimate that $ 2.3 million of net derivative gain included in AOCI as of December 31, 2022 , will be reclassified to earnings within the next twelve months. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which is intended to simplify accounting for income taxes and improve consistency in application. ASU 2019-12 amends certain elements of income tax accounting, including but not limited to intraperiod tax allocations, step-ups in tax basis of goodwill and calculating taxes on year-to-date losses in interim periods. The guidance was effective for the Company’s fiscal year beginning January 1, 2021 . The adoption of this guidance did no t have a material effect on our financial statements. Effects of Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, which provides relief from accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. It also provides optional expedients to enable the continuance of hedge accounting where certain hedging relationships are impacted by reference rate reform. In January 2021 , the FASB issued ASU 2021-01, which further clarifies the scope of ASU 2020-04. This optional guidance is effective immediately and available to be used through December 31, 2024. The adoption of this guidance did no t have a material effect on our financial statements . Disclosures by Business Entities About Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832). The new guidance, codified in 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 . |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Estimated useful lives of the related assets are as follows: Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information on Balance Sheets | Supplemental information on our year-end consolidated balance sheets is as follows: (In millions) 2022 2021 Inventories: Raw materials and supplies $ 309.4 $ 247.3 Work in process 83.5 64.7 Finished products 628.4 577.5 Total inventories $ 1,021.3 $ 889.5 Property, plant and equipment: Land and improvements $ 51.9 $ 44.8 Buildings and improvements to leaseholds 285.1 270.9 Machinery and equipment 1,052.2 974.6 Construction in progress 225.1 141.8 Property, plant and equipment, gross 1,614.3 1,432.1 Less: accumulated depreciation 830.6 761.3 Property, plant and equipment, net of accumulated depreciation $ 783.7 $ 670.8 Other current liabilities: Accrued salaries, wages and other compensation $ 57.6 $ 132.4 Accrued customer programs 227.6 241.7 Accrued taxes 24.8 65.5 Dividends payable 29.4 37.8 Other accrued expenses 184.5 169.0 Total other current liabilities $ 523.9 $ 646.4 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2019. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. (In millions) 2020 Net sales $ 4,024.2 Net income $ 418.9 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Results of the Discontinued Operations | The following table summarizes the results of the discontinued operations for the years ended December 31, 2022, 2021 and 2020. (In millions, except per share amounts) 2022 2021 2020 NET SALES $ 3,199.7 $ 2,855.0 $ 2,469.0 Cost of products sold 2,279.3 2,068.5 1,768.7 Selling, general and administrative expense 619.7 485.3 433.8 Amortization of intangible asset 16.8 17.8 17.8 Asset impairment charges 46.4 — 9.5 Restructuring charges 25.1 4.2 5.5 DISCONTINUED OPERATING INCOME 212.4 279.2 233.7 Interest expense 0.2 0.1 0.1 Other expense, net 2.2 0.4 2.2 INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES 210.0 278.7 231.4 Income taxes 63.2 66.0 57.8 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 146.8 212.7 173.6 The following table summarizes the major classes of assets and liabilities of MasterBrand, which are now reflected as discontinued operations in the consolidated balance sheet: (In millions) 2021 ASSETS Current assets Cash and cash equivalents $ 45.9 Accounts receivable less allowances for discounts and credit losses 305.3 Inventories 304.3 Other current assets 58.5 TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS 714.0 Property, plant and equipment, net of accumulated depreciation 338.7 Operating lease assets 61.2 Goodwill 926.2 Other intangible assets, net of accumulated amortization 415.7 Other assets 33.9 TOTAL ASSETS OF DISCONTINUED OPERATIONS 2,489.7 LIABILITIES Current liabilities Accounts payable 203.9 Other current liabilities 159.8 TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 363.7 Deferred income taxes 94.3 Accrued defined benefit plans ( 1.2 ) Operating lease liabilities 50.0 Other non-current liabilities 5.8 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS $ 512.6 |
Summary of Cash Flow Information Related to Discontinued Operations | The following table summarizes the cash flows of MasterBrand, which are reflected in the consolidated statements of cash flows: (In millions) 2022 2021 2020 Net cash provided by operating activities $ 213.0 $ 162.7 $ 232.9 Net cash used in investing activities ( 55.8 ) ( 51.5 ) ( 26.7 ) Net cash used in financing activities — — — Effect of foreign exchange rate changes on cash ( 0.2 ) 0.1 0.8 Net increase (decrease) in cash and cash equivalents $ 157.0 $ 111.3 $ 207.0 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 & Security Total Balance at December 31, 2020 (a) $ 750.1 $ 718.6 $ 1,468.7 2021 translation adjustments ( 1.3 ) 0.1 ( 1.2 ) Acquisition-related adjustments 65.3 6.1 71.4 Balance at December 31, 2021 (a) $ 814.1 $ 724.8 $ 1,538.9 2022 translation adjustments ( 9.4 ) ( 0.8 ) ( 10.2 ) Acquisition-related adjustments 88.7 23.3 112.0 Balance at December 31, 2022 (a) $ 893.4 $ 747.3 $ 1,640.7 (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 intangible assets as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 As of December 31, 2021 (In millions) Gross Accumulated Net Book Gross Accumulated Net Book Indefinite-lived tradenames $ 478.1 $ — $ 478.1 $ 479.2 $ — $ 479.2 Amortizable intangible assets Tradenames 47.5 ( 6.8 ) 40.7 25.8 ( 5.2 ) 20.6 Customer and contractual relationships 662.6 ( 239.6 ) 423.0 611.2 ( 205.7 ) 405.5 Patents/proprietary technology 128.5 ( 69.5 ) 59.0 122.1 ( 59.3 ) 62.8 Total 838.6 ( 315.9 ) 522.7 759.1 ( 270.2 ) 488.9 Total identifiable intangibles $ 1,316.7 $ ( 315.9 ) $ 1,000.8 $ 1,238.3 $ ( 270.2 ) $ 968.1 |
Significant Assumptions Used to Estimate the Fair Value of Tradename Impaired | The significant assumptions used to estimate the fair value of the tradename impaired during the year ended December 31, 2020 were as follows: Unobservable Input 2020 Discount rate 15.8 % Royalty rate (a) 5.0 % Long-term revenue growth rate (b) 3.0 % (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 . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Other Information Related to Leases | Other information related to leases was as follows: (In millions, except lease term and discount rate) December 31, 2022 December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 35.1 $ 33.3 $ 30.3 Right-of-use assets obtained in exchange for operating $ 21.6 $ 33.9 $ 34.3 Weighted average remaining lease term - operating leases 5.6 years 6.1 years 6.9 years Weighted average discount rate - operating leases 3.6 % 3.5 % 3.9 % |
Lease Payments Under Non-Cancellable Leases | Total lease payments under non-cancellable operating leases as of December 31, 2022 were as follows: (In millions) Year Ending December 31, 2023 $ 34.1 2024 26.4 2025 19.8 2026 17.0 2027 14.2 Thereafter 28.6 Total lease payments 140.1 Less imputed interest ( 14.2 ) Total $ 125.9 Reported as of December 31, 2022 Other current liabilities $ 30.5 Operating lease liabilities 95.4 Total $ 125.9 |
External Debt and Financing A_2
External Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Notes | The following table provides a summary of the Company’s outstanding Notes, including the carrying value of the Notes, net of underwriting commissions, price discounts and debt issuance costs as of December 31, 2022 and December 31, 2021: (in millions) Net Carrying Value Coupon Rate Principal Amount Issuance Date Maturity Date December 31, 2022 December 31, 2021 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 498.1 $ 497.4 4.000% Senior Notes 600.0 September 2018 September 2023 599.2 598.2 3.250% Senior Notes 700.0 September 2019 September 2029 695.0 694.2 4.000% Senior Notes 450.0 March 2022 March 2032 445.8 - 4.500% Senior Notes 450.0 March 2022 March 2052 435.4 - Total Senior Notes $ 2,700.0 $ 2,673.5 $ 1,789.8 As of December 31, 2022 and December 31, 2021, the components of long-term debt were as follows: (In millions) 2022 2021 Notes (due 2023 to 2052 ) $ 2,673.5 $ 1,789.8 2022 Revolving Credit Agreement — 520.0 2021 Term Loan — 400.0 Total debt 2,673.5 2,709.8 Less: current portion 599.2 400.0 Total long-term debt $ 2,074.3 $ 2,309.8 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2022 and 2021 were: Fair Value (In millions) Location 2022 2021 Assets: Foreign exchange contracts Other current assets $ 5.0 $ 3.6 Interest rate contracts Other current assets 84.6 — Total assets $ 89.6 $ 3.6 Liabilities: Foreign exchange contracts Other current liabilities $ 0.7 $ 0.7 Commodity contracts Other current liabilities 3.6 0.1 Total liabilities $ 4.3 $ 0.8 |
Effects of Derivative Financial Instruments on Consolidated Statements of Income | The effects of derivative financial instruments on the consolidated statements of income in 2022, 2021 and 2020 were: (In millions) Classification and Amount of Gain (Loss) 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Income $ 2,790.1 $ 119.2 $ 12.0 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — ( 22.4 ) Derivative designated as hedging instruments — — 21.3 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.8 — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 7.3 ) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 3.6 — (In millions) Classification and Amount of Gain (Loss) 2021 Cost of Interest Other expense, net Total amounts per Consolidated Statements of Income $ 2,840.6 $ 84.3 $ 0.4 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — ( 4.7 ) Derivative designated as hedging instruments — — 2.1 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 2.6 ) — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.6 — (In millions) Classification and Amount of Gain (Loss) 2020 Cost of Interest Other income, net Total amounts per Consolidated Statements of Income $ 2,157.4 $ 83.8 $ 15.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — 3.5 Derivative designated as hedging instruments — — ( 2.8 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.7 ) — — 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 — 0.6 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Debt | The carrying value and fair value of debt as of December 31, 2022 and 2021 were as follows: (In millions) December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price $ 2,673.5 $ 2,412.6 $ 1,789.8 $ 1,902.9 2022 Revolving Credit Agreement — — 520.0 520.0 2021 Term Loan — — 400.0 400.0 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021 were as follows: (In millions) Fair Value 2022 2021 Assets: Derivative asset financial instruments (level 2) $ 89.6 $ 3.6 Deferred compensation program assets (level 2) 14.9 14.6 Total assets $ 104.5 $ 18.2 Liabilities: Derivative liability financial instruments (level 2) $ 4.3 $ 0.8 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Treasury Stock Activity | The number of shares of common stock and treasury stock and the share activity for 2022 and 2021 were as follows: Common Shares Treasury Shares 2022 2021 2022 2021 Balance at the beginning of the year 135,064,296 138,660,154 50,252,566 45,406,158 Stock plan shares issued 856,175 1,250,550 — — Shares surrendered by optionees ( 316,450 ) ( 144,280 ) 316,450 144,280 Common stock repurchases ( 7,563,462 ) ( 4,702,128 ) 7,563,462 4,702,128 Balance at the end of the year 128,040,559 135,064,296 58,132,478 50,252,566 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021 were as follows: (In millions) Details about Accumulated Other Affected Line Item in the 2022 2021 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.8 $ ( 2.6 ) Cost of products sold Interest rate contracts 3.6 0.6 Interest expense Commodity contracts ( 7.3 ) 1.3 Cost of products sold 1.1 ( 0.7 ) Total before tax 0.6 0.2 Tax expense $ 1.7 $ ( 0.5 ) Net of tax Defined benefit plan items Recognition of actuarial losses $ 1.3 $ ( 0.8 ) Other income (expense) 0.4 0.2 Tax benefit 1.7 $ ( 0.6 ) Net of tax Total reclassifications for the period $ 3.4 $ ( 1.1 ) Net of tax (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 15, “Defined Benefit Plans,” for additional information. |
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 were as follows: (In millions) Foreign Derivative Defined Benefit Accumulated Balance at December 31, 2019 $ ( 11.5 ) $ 5.5 $ ( 66.6 ) $ ( 72.6 ) Amounts classified into accumulated other 18.7 ( 3.7 ) ( 2.7 ) 12.3 Amounts reclassified into earnings — 2.4 2.8 5.2 Net current period other comprehensive (loss) income 18.7 ( 1.3 ) 0.1 17.5 Balance at December 31, 2020 $ 7.2 $ 4.2 $ ( 66.5 ) $ ( 55.1 ) Amounts classified into accumulated other ( 3.9 ) 1.1 35.1 32.3 Amounts reclassified into earnings — ( 2.4 ) 0.6 ( 1.8 ) Net current period other comprehensive (loss) income ( 3.9 ) ( 1.3 ) 35.7 30.5 Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 23.4 ) 99.6 ( 14.6 ) 61.6 Amounts reclassified into earnings — ( 6.2 ) ( 1.7 ) ( 7.9 ) Net current period other comprehensive (loss) income ( 23.4 ) 93.4 ( 16.3 ) 53.7 Distribution of Masterbrand 8.0 ( 2.8 ) 3.1 8.3 Balance at December 31, 2022 $ ( 12.1 ) $ 93.5 $ ( 44.0 ) $ 37.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense was as follows: (In millions) 2022 2021 2020 Restricted stock units $ 16.6 $ 17.8 $ 15.6 Stock option awards 6.6 5.3 4.6 Performance awards 15.6 20.7 19.5 Director awards 1.3 1.3 0.9 Total pre-tax expense 40.1 45.1 40.6 Tax benefit 9.2 7.9 6.2 Total after tax expense $ 30.9 $ 37.2 $ 34.4 |
RSU Activity | A summary of activity with respect to RSUs outstanding under the Plans for the year ended December 31, 2022 was as follows: Number of Weighted-Average Non-vested at December 31, 2021 396,399 $ 75.45 Granted 1,485,979 $ 71.85 Vested ( 184,290 ) $ 69.37 Forfeited ( 519,762 ) $ 80.45 Non-vested at December 31, 2022 1,178,326 $ 69.65 |
Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options | The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: 2022 2021 2020 Current expected dividend yield 1.2 % 1.2 % 1.4 % Expected volatility 34.8 % 35.1 % 25.9 % Risk-free interest rate 2.3 % 0.6 % 1.2 % Expected term 5.2 years 5.2 years 5.3 years |
Stock Option Activity | A summary of Fortune Brands stock option activity related to Fortune Brands and former employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2022 was as follows: Options Weighted- Outstanding at December 31, 2021 1,819,151 $ 61.87 Granted 2,715,899 $ 60.02 Exercised ( 29,435 ) $ 37.83 Expired/forfeited ( 2,179,188 ) $ 65.26 Outstanding at December 31, 2022 2,326,427 $ 56.84 |
Options Outstanding and Exercisable | Options outstanding and exercisable at December 31, 2022 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Options Weighted- Weighted- Options Weighted- $ 20.01 to $ 76.63 2,326,427 5.93 $ 56.84 1,701,253 $ 51.98 (a) At December 31, 2022 , the aggregate intrinsic value of options outstanding was $ 12.6 million. (b) At December 31, 2022 , the weighted-average remaining contractual life of options exercisable was 5.0 years and the aggregate intrinsic value of options exercisable was $ 12.2 million. |
Summarizes Information of Performance Share Awards | The following table summarizes information about PSAs as of December 31, 2022, as well as activity during the year then ended. The number of performance share awards granted are shown below at the target award amounts: Number of Weighted-Average Non-vested at December 31, 2021 543,333 $ 64.68 Granted 708,111 $ 69.40 Vested ( 475,760 ) $ 47.76 Forfeited ( 755,112 ) $ 79.47 Non-vested at December 31, 2022 20,572 $ 75.59 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels for the years ended December 31, 2022, 2021 and 2020. (In millions) December 31, 2022 December 31, 2021 December 31, 2020 Wholesalers (a) $ 2,100.0 $ 2,027.9 $ 1,500.6 Home Center retailers (b) 1,270.7 1,254.1 928.2 Other retailers (c) 392.9 440.7 346.0 U.S. net sales 3,763.6 3,722.7 2,774.8 International (d) 959.4 1,078.4 846.5 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 (a) Represents sales to customers whose business is oriented toward builders, professional tradespeople 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 China, Canada, Europe and Mexico. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Obligations and Funded Status | (In millions) Pension Benefits Postretirement Benefits Obligations and Funded Status at December 31 2022 2021 2022 2021 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 712.0 $ 750.6 $ 9.8 $ 10.6 Service cost 0.2 0.4 0.4 0.2 Interest cost 20.4 19.3 0.4 0.2 Actuarial (loss) gain ( 155.9 ) ( 26.2 ) ( 1.2 ) ( 1.0 ) Benefits paid ( 33.1 ) ( 32.1 ) ( 0.4 ) ( 0.2 ) Projected benefit obligation at end of year $ 543.6 $ 712.0 $ 9.0 $ 9.8 Accumulated benefit obligation at end of year $ 543.6 $ 712.0 $ — $ — Change in Plan Assets: Fair value of plan assets at beginning of year $ 649.8 $ 624.2 $ — $ — Actual return on plan assets ( 144.8 ) 37.8 — — Employer contributions 10.6 19.9 0.4 ( 0.1 ) Benefits paid ( 33.1 ) ( 32.1 ) ( 0.4 ) 0.1 Fair value of plan assets at end of year $ 482.5 $ 649.8 $ — $ — Funded status (Fair value of plan assets less PBO) $ ( 61.1 ) $ ( 62.2 ) $ ( 9.0 ) $ ( 9.8 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (In millions) 2022 2021 2022 2021 Current benefit payment liability $ ( 1.5 ) $ ( 1.3 ) $ ( 1.2 ) $ ( 0.8 ) Accrued benefit liability ( 59.6 ) ( 60.9 ) ( 7.8 ) ( 9.0 ) Net amount recognized $ ( 61.1 ) $ ( 62.2 ) $ ( 9.0 ) $ ( 9.8 ) |
Amounts in Accumulated Other Comprehensive Loss that have not yet been Recognized as Components of Net Periodic Benefit Cost | The amounts in accumulated other comprehensive loss on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In millions) Pension Benefits Postretirement Benefits Net actuarial loss (gain) at December 31, 2020 $ 70.1 $ — Recognition of actuarial loss ( 1.1 ) 0.5 Current year actuarial loss ( 36.6 ) ( 0.9 ) Net actuarial loss (gain) at December 31, 2021 $ 32.4 $ ( 0.4 ) Recognition of actuarial loss 0.3 1.0 Current year actuarial gain 17.0 ( 1.1 ) Net actuarial loss at December 31, 2022 $ 49.7 $ ( 0.5 ) |
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits | Components of net periodic benefit cost were as follows: Components of Net Periodic Benefit (Income) Cost Pension Benefits Postretirement Benefits (In millions) 2022 2021 2020 2022 2021 2020 Service cost $ 0.2 $ 0.4 $ ( 5.2 ) $ 0.4 $ 0.2 $ — Interest cost 20.4 19.3 35.2 0.4 0.2 — Expected return on plan assets ( 28.1 ) ( 27.4 ) ( 33.3 ) — — — Recognition of actuarial losses (gains) ( 0.3 ) 1.1 2.1 ( 1.0 ) ( 0.5 ) ( 0.1 ) Settlement/Curtailment losses (gains) — — 0.6 — — — Net periodic benefit (income) cost $ ( 7.8 ) $ ( 6.6 ) $ ( 0.6 ) $ ( 0.2 ) $ ( 0.1 ) $ ( 0.1 ) |
Schedule of Assumptions Used | Assumptions Pension Benefits Postretirement Benefits 2022 2021 2020 2022 2021 2020 Weighted-Average Assumptions Used to Discount rate 5.2 % 2.9 % 2.6 % 5.8 % 3.9 % 5.9 % Weighted-Average Assumptions Used to Discount rate 2.9 % 2.6 % 3.3 % 3.9 % 5.9 % 6.4 % Expected long-term rate of return on plan assets 4.4 % 4.4 % 4.5 % — — — |
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost | Postretirement Benefits 2022 2021 Assumed Health Care Cost Trend Rates Used to Determine Health care cost trend rate assumed for next year 5.8 / 6.3 % (a) 6.3 / 6.7 % (a) Rate that the cost trend rate is assumed to decline 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2028 2028 (a) The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate . |
Fair Value of Pension Assets by Major Category of Plan Assets | The fair value of the pension assets by major category of plan assets as of December 31, 2022 and 2021 were as follows: (In millions) Total as of 2022 2021 Group annuity/insurance contracts (level 3) $ 26.0 $ 25.5 Collective trusts: Cash and cash equivalents 6.3 3.2 Equity 113.8 174.8 Fixed income 291.6 409.7 Multi-strategy hedge funds 21.3 17.2 Real estate 23.5 19.4 Total $ 482.5 $ 649.8 |
Reconciliation of Level Three Measurements | A reconciliation of Level 3 measurements was as follows: Group annuity/ (In millions) 2022 2021 January 1 $ 25.5 $ 24.8 Actual return on assets related to assets still held 0.5 0.7 December 31 $ 26.0 $ 25.5 |
Schedule of Expected Benefit Payments | The following retirement benefit payments are expected to be paid: (In millions) Pension Postretirement 2023 $ 35.6 $ 1.1 2024 36.1 1.1 2025 36.9 1.1 2026 37.8 1.1 2027 38.1 1.1 Years 2028-2032 191.7 5.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Income Before Income Taxes and Noncontrolling Interests | The components of income from continuing operations before income taxes and noncontrolling interests were as follows: (In millions) 2022 2021 2020 Domestic operations $ 563.1 $ 591.0 $ 396.1 Foreign operations 104.0 135.4 103.1 Income before income taxes and noncontrolling interests $ 667.1 $ 726.4 $ 499.2 |
Summary of Income Tax Expense | Income tax expense in the consolidated statement of income consisted of the following: (In millions) 2022 2021 2020 Current Federal $ 62.4 $ 102.4 $ 50.5 Foreign 34.3 40.2 49.0 State and other 16.0 16.9 15.9 Deferred Federal 15.3 11.5 7.6 Foreign 1.5 ( 4.9 ) ( 12.6 ) State and Local ( 2.3 ) 0.6 0.4 Total income tax expense $ 127.2 $ 166.7 $ 110.8 |
Reconciliation Between Federal Statutory Tax Rate to Effective Tax Rate from Continuing Operations | A reconciliation between the federal statutory tax rate and the effective tax rate is as follows: (In millions) 2022 2021 2020 Income tax expense computed at federal statutory income tax rate $ 140.1 $ 152.5 $ 104.9 State and local income taxes, net of federal tax benefit 18.5 23.8 15.3 Foreign taxes at a different rate than U.S. federal statutory income tax rate 9.1 9.2 6.7 Provision for foreign earnings repatriation, net 1.2 — 2.1 Net adjustments for uncertain tax positions ( 26.2 ) ( 11.3 ) ( 4.2 ) Share-based compensation ( 5.4 ) ( 9.0 ) ( 9.8 ) Deferred tax impact of state tax rate changes ( 1.9 ) ( 0.7 ) ( 0.8 ) Valuation allowance (decrease) increase ( 5.8 ) 4.7 ( 7.1 ) Non-deductible executive compensation 7.5 5.0 1.6 Expiration of loss carryforwards — — 6.6 Miscellaneous other, net ( 9.9 ) ( 7.5 ) ( 4.5 ) Income tax expense as reported $ 127.2 $ 166.7 $ 110.8 Effective income tax rate 19.1 % 22.9 % 22.2 % |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) is as follows: (In millions) 2022 2021 2020 Unrecognized tax benefits—beginning of year $ 83.1 $ 96.1 $ 88.0 Gross additions—current year tax positions 2.1 2.6 7.2 Gross additions—prior year tax positions — 2.0 3.7 Gross additions (reductions)—purchase accounting adjustments — — 12.1 Gross reductions—prior year tax positions ( 50.5 ) ( 16.6 ) ( 11.7 ) Gross reductions—settlements with taxing authorities ( 1.3 ) ( 1.0 ) ( 3.2 ) Unrecognized tax benefits—end of year $ 33.4 $ 83.1 $ 96.1 |
Components of Net Deferred Tax Assets Liabilities | The components of net deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: (In millions) 2022 2021 Deferred tax assets: Compensation and benefits $ 21.0 $ 30.8 Defined benefit plans 15.4 16.5 Capitalized inventories 17.8 21.0 Accounts receivable 4.2 5.0 Operating lease liabilities 31.0 34.5 Other accrued expenses 51.2 50.8 Net operating loss and other tax carryforwards 23.5 24.1 Valuation allowance ( 13.8 ) ( 20.7 ) Miscellaneous 6.7 24.0 Total deferred tax assets 157.0 186.0 Deferred tax liabilities: Fixed assets ( 60.3 ) ( 73.0 ) Intangible assets ( 152.5 ) ( 125.8 ) Operating lease assets ( 29.3 ) ( 32.6 ) Other investments ( 28.2 ) ( 0.9 ) Miscellaneous ( 6.5 ) ( 8.1 ) Total deferred tax liabilities ( 276.8 ) ( 240.4 ) Net deferred tax liability $ ( 119.8 ) $ ( 54.4 ) In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2022 and 2021 as follows: (In millions) 2022 2021 Other assets 17.1 27.3 Deferred income taxes ( 136.9 ) ( 81.7 ) Net deferred tax liability $ ( 119.8 ) $ ( 54.4 ) |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Pre-tax Restructuring and Other Charges | Pre-tax restructuring and other charges for the year ended December 31, 2022 were as follows: Year Ended December 31, 2022 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ 6.3 $ ( 0.2 ) $ 0.8 $ 6.9 Outdoors & Security 25.1 ( 6.2 ) — 18.9 Corporate 1.0 — — 1.0 Total $ 32.4 $ ( 6.4 ) $ 0.8 $ 26.8 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. Restructuring and other charges in 2022 are largely related to severance, asset impairment and other costs associated with plant closures and headcount actions across both segments. Pre-tax restructuring and other charges for the year ended December 31, 2021 were as follows: Year Ended December 31, 2021 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ ( 1.1 ) $ 2.0 $ 2.1 $ 3.0 Outdoors & Security 10.4 — ( 0.6 ) 9.8 Total $ 9.3 $ 2.0 $ 1.5 $ 12.8 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. Restructuring and other charges in 2021 were largely related to severance costs associated with the relocation of manufacturing facilities within our Outdoors & Security segment. Pre-tax restructuring and other charges for the year ended December 31, 2020 were as follows: Year Ended December 31, 2020 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Water Innovations $ 6.0 $ 4.4 $ ( 1.7 ) $ 8.7 Outdoors & Security 3.0 0.9 — 3.9 Corporate 1.4 — 0.3 1.7 Total $ 10.4 $ 5.3 $ ( 1.4 ) $ 14.3 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses. |
Reconciliation of Restructuring Liability | Reconciliation of Restructuring Liability (In millions) Balance at 2022 Cash (a) Non-Cash Balance at Workforce reduction costs $ 3.2 $ 19.4 $ ( 6.4 ) $ — $ 16.2 Other 0.8 13.0 ( 0.3 ) — 13.5 $ 4.0 $ 32.4 $ ( 6.7 ) $ — $ 29.7 (a) Cash expenditures primarily related to severance charges. (In millions) Balance at 2021 Cash (a) Non-Cash Balance at Workforce reduction costs $ 5.4 $ 8.5 $ ( 10.7 ) $ — $ 3.2 Other — 0.8 — — 0.8 $ 5.4 $ 9.3 $ ( 10.7 ) $ — $ 4.0 (a) Cash expenditures primarily related to severance charges. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity Related to Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the years ended December 31, 2022, 2021 and 2020. (In millions) 2022 2021 2020 Reserve balance at the beginning of the year $ 19.5 $ 19.0 $ 18.5 Provision for warranties issued 8.1 8.5 4.8 Settlements made (in cash or in kind) ( 9.0 ) ( 8.4 ) ( 5.9 ) Acquisition 1.7 0.3 1.5 Foreign currency ( 0.2 ) 0.1 0.1 Reserve balance at end of year $ 20.1 $ 19.5 $ 19.0 |
Information on Business Segme_2
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Income by Segment | The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. (In millions) 2022 2021 2020 Net sales: Water Innovations $ 2,570.2 $ 2,761.2 $ 2,202.1 Outdoors & Security 2,152.8 2,039.9 1,419.2 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 (In millions) 2022 2021 2020 Operating income: Water Innovations $ 614.6 $ 629.7 $ 467.9 Outdoors & Security 289.6 291.9 201.3 Corporate ( 129.9 ) ( 110.5 ) ( 101.5 ) Operating income $ 774.3 $ 811.1 $ 567.7 (In millions) 2022 2021 2020 Total assets: Water Innovations $ 2,674.4 $ 2,614.7 $ 2,262.9 Outdoors & Security 2,820.0 2,619.4 2,453.8 Corporate 626.5 212.4 275.2 Total assets $ 6,120.9 $ 5,446.5 $ 4,991.9 Depreciation expense: Water Innovations $ 34.9 $ 37.1 $ 37.6 Outdoors & Security 45.5 40.7 33.3 Corporate 2.5 2.8 2.7 Depreciation expense $ 82.9 $ 80.6 $ 73.6 Amortization of intangible assets: Water Innovations $ 16.2 $ 14.9 $ 10.8 Outdoors & Security 32.1 31.5 13.4 Amortization of intangible assets $ 48.3 $ 46.4 $ 24.2 Capital expenditures: Water Innovations $ 52.1 $ 38.1 $ 30.5 Outdoors & Security 138.1 124.2 76.4 Corporate — 0.3 16.3 Capital expenditures, gross 190.2 162.6 123.2 Less: proceeds from disposition of assets ( 8.2 ) ( 1.8 ) ( 1.0 ) Capital expenditures, net $ 182.0 $ 160.8 $ 122.2 Net sales by geographic region (a) : United States $ 3,763.6 $ 3,722.7 $ 2,774.8 China 363.9 510.4 416.7 Canada 368.2 384.2 280.3 Other international 227.3 183.8 149.5 Net sales $ 4,723.0 $ 4,801.1 $ 3,621.3 Property, plant and equipment, net: United States $ 673.5 $ 569.6 $ 487.3 Mexico 55.9 53.7 53.9 Canada 7.3 7.7 7.6 China 20.1 23.7 25.0 Other international 26.9 16.1 14.1 Property, plant and equipment, net $ 783.7 $ 670.8 $ 587.9 (a) Based on country of destination . |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Quarterly Financial data | The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. (In millions, except per share amounts) 2022 1 st 2 nd 3 rd 4 th Net sales $ 1,140.2 $ 1,255.4 $ 1,195.5 $ 1,131.9 Gross profit 468.5 513.2 478.9 472.3 Income from continuing operations before income taxes 160.3 189.0 162.5 155.3 Net income from continuing operations 126.2 144.2 141.4 128.1 Net income (loss) from discontinued operations 54.8 47.7 62.7 ( 18.4 ) Basic income from continuing operations per share 0.94 1.11 1.09 1.00 Basic income(loss) from discontinued operations per share 0.41 0.37 0.49 ( 0.14 ) Diluted income from continuing operations per share 0.93 1.10 1.09 0.99 Diluted income (loss) from discontinued operations per share 0.41 0.37 0.48 ( 0.14 ) Shares used in computation of basic income per share 133.4 130.3 129.3 128.1 Shares used in computation of diluted income per share 134.7 131.2 130.1 129.0 2021 1 st 2 nd 3 rd 4 th Net sales $ 1,083.1 $ 1,230.1 $ 1,269.9 $ 1,218.0 Gross profit 448.7 504.7 511.2 495.9 Income from continuing operations before income taxes 151.3 200.5 200.1 174.5 Net income from continuing operations 121.1 159.4 151.7 127.5 Net income from discontinued operations 56.7 57.7 50.6 47.7 Basic income from continuing operations per share 0.88 1.15 1.10 0.94 Basic income from discontinued operations per share 0.41 0.42 0.37 0.35 Diluted income from continuing operations per share 0.85 1.14 1.09 0.93 Diluted income from discontinued operations per share 0.40 0.41 0.36 0.36 Shares used in computation of basic income per share 138.6 138.4 137.8 135.3 Shares used in computation of diluted income per share 140.6 140.4 139.7 137.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computations of Earnings per Common Share | The computations of earnings per common share were as follows: (In millions, except per share data) 2022 2021 2020 Income from continuing operations, net of tax $ 539.9 $ 559.7 $ 380.8 Less: Noncontrolling interests — — 1.3 Income from continuing operations $ 539.9 $ 559.7 $ 379.5 Income from discontinued operations 146.8 212.7 173.6 Net income attributable to Fortune Brands $ 686.7 $ 772.4 $ 553.1 Earnings per common share Basic Continuing operations $ 4.14 $ 4.07 $ 2.74 Discontinued operations $ 1.13 $ 1.55 $ 1.25 Basic earnings per share attributable to Fortune Brands $ 5.27 $ 5.62 $ 3.99 Diluted Continuing operations $ 4.11 $ 4.01 $ 2.71 Discontinued operations $ 1.12 $ 1.53 $ 1.23 Diluted earnings per share attributable to Fortune Brands $ 5.23 $ 5.54 $ 3.94 Basic average shares outstanding (a) 130.3 137.5 138.7 Stock-based awards 1.0 2.0 1.5 Diluted average shares outstanding (a) 131.3 139.5 140.2 Antidilutive stock-based awards excluded from weighted-average 1.3 0.3 0.8 (a) Reflects the impact of share repurchases during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Components of Other (Income) Expense, Net | The components of other (income) expense, net, for the years ended December 31, 2022, 2021 and 2020 were as follows: (In millions) 2022 2021 2020 Defined benefit plan $ ( 8.7 ) $ ( 7.1 ) $ ( 1.1 ) Foreign currency losses 3.3 4.6 1.5 Losses (gains) on equity investment — 5.0 ( 11.0 ) Other items, net ( 6.6 ) ( 2.1 ) ( 4.7 ) Total other (income) expense, net $ ( 12.0 ) $ 0.4 $ ( 15.3 ) |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Aqualisa Holdings (International) Ltd. [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Payments to Acquire Businesses Gross | $ 156 | ||||||
Business acquisition, percentage of outstanding equity acquired | 100% | ||||||
Cash acquired from acquisition | $ 4.8 | ||||||
Solar Innovations LLC [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Payments to Acquire Businesses Gross | $ 61.6 | ||||||
Business acquisition, percentage of outstanding equity acquired | 100% | ||||||
Cash acquired from acquisition | $ 4.8 | ||||||
Flo Technologies, Inc. [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Percentage of outstanding shares to be acquired | 100% | ||||||
Substantive participating rights expiration date | Jan. 01, 2021 | Jan. 01, 2021 | |||||
Mark-to-market expense | $ 2.2 | ||||||
Flo Technologies, Inc. [Member] | Other Income/Expenses [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Non cash gain (loss) on remeasurement of existing investment | $ 4.5 | ||||||
Larson [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Business acquisition, percentage of outstanding equity acquired | 100% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Of Accounting Policies [Line Items] | ||||
Highly liquid investments included in cash and cash equivalents, maturity period | 3 months | |||
Allowances for credit losses | $ 5.5 | $ 5.7 | ||
Indefinite lived tradenames | 478.1 | $ 479.2 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | |||
Impairment of intangible assets, trade names | 0 | |||
Investments | 3.5 | $ 3.5 | ||
Impairment of Investments | 0 | 0 | $ 0 | |
Unrecognized tax benefits pertaining to uncertain tax positions | 33.4 | 83.1 | 96.1 | $ 88 |
Reasonably possible decrease in unrecognized tax benefits | 9.8 | |||
Advertising costs | 220.7 | 231.7 | 189.9 | |
Advertising costs, reduction to net sales | 47.7 | 40.7 | 40.4 | |
Water Innovations [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Indefinite lived tradenames | 141.5 | |||
Outdoors & Security [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Indefinite lived tradenames | $ 336.6 | |||
Accounting Standards Update 2019-12 [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Simplifying the Accounting for Income TaxesIn December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which is intended to simplify accounting for income taxes and improve consistency in application. ASU 2019-12 amends certain elements of income tax accounting, including but not limited to intraperiod tax allocations, step-ups in tax basis of goodwill and calculating taxes on year-to-date losses in interim periods. The guidance was effective for the Company’s fiscal year beginning January 1, 2021. The adoption of this guidance did not have a material effect on our financial statements. | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2021 | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Accounting Standards Update 2021-10 [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Disclosures by Business Entities About Government AssistanceIn November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832). The new guidance, codified in 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. | |||
Accounting Standards Update 2020-04 [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Effects of Reference Rate ReformIn March 2020, the FASB issued ASU 2020-04, which provides relief from accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. It also provides optional expedients to enable the continuance of hedge accounting where certain hedging relationships are impacted by reference rate reform. In January 2021, the FASB issued ASU 2021-01, which further clarifies the scope of ASU 2020-04. This optional guidance is effective immediately and available to be used through December 31, 2024. The adoption of this guidance did not have a material effect on our financial statements. | |||
Accounting Standards Update 2021-01 [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2021 | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Foreign exchange contracts [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Gain (loss) reclassified from Accumulated OCI into earnings | $ 4.8 | (2.6) | (0.7) | |
Cash flow hedge [Member] | Foreign exchange contracts [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Gain (loss) reclassified from Accumulated OCI into earnings | 4.7 | (2.6) | (0.7) | |
Estimated amount of net derivative gain in other comprehensive income reclassified to earnings within 12 months | $ 2.3 | |||
Minimum [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Remaining lease terms | 1 year | |||
Maximum [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Remaining lease terms | 9 years | |||
Investments in Equity Securities [Member] | Minimum [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Percentage of voting interests of investee to exercise significant influence | 20% | |||
Selling, general and administrative Expenses [Member] | ||||
Significant Of Accounting Policies [Line Items] | ||||
Impairment of long-lived asset | 0.2 | 3.6 | ||
Customer program costs | $ 24.7 | 25.2 | 22.6 | |
Shipping and handling costs | 162.9 | 164 | 107.7 | |
Advertising costs | 173 | 191 | 149.5 | |
Research and development expenses | $ 62 | $ 64.1 | $ 48.4 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and Leasehold Improvements | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Buildings and Leasehold Improvements | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Machinery and Equipment | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Machinery and Equipment | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Software | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Software | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 7 years |
Balance Sheet Information - Sup
Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories: | ||
Raw materials and supplies | $ 309.4 | $ 247.3 |
Work in process | 83.5 | 64.7 |
Finished products | 628.4 | 577.5 |
Total inventories | 1,021.3 | 889.5 |
Property, plant and equipment: | ||
Land and improvements | 51.9 | 44.8 |
Buildings and improvements to leaseholds | 285.1 | 270.9 |
Machinery and equipment | 1,052.2 | 974.6 |
Construction in progress | 225.1 | 141.8 |
Property, plant and equipment, gross | 1,614.3 | 1,432.1 |
Less: accumulated depreciation | 830.6 | 761.3 |
Property, plant and equipment, net of accumulated depreciation | 783.7 | 670.8 |
Other current liabilities: | ||
Accrued salaries, wages and other compensation | 57.6 | 132.4 |
Accrued customer programs | 227.6 | 241.7 |
Accrued taxes | 24.8 | 65.5 |
Dividends payable | 29.4 | 37.8 |
Other accrued expenses | 184.5 | 169 |
Total other current liabilities | $ 523.9 | $ 646.4 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jan. 01, 2021 | Jul. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 29, 2022 | |
Business Acquisition [Line Items] | ||||||||||
Business combination net of cash acquired | $ 217.6 | $ (5.2) | $ 715.2 | |||||||
Flo Technologies, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value allocated to assets acquired and liabilities assumed | $ 87.8 | |||||||||
Business combination net of cash acquired | 9.7 | |||||||||
Percentage of outstanding shares to be acquired | 100% | |||||||||
Business acquisition, shares acquired in cash | $ 44.2 | |||||||||
Percentage of outstanding shares acquired | 80% | 80% | ||||||||
Other income related to remeasurement of previously existing investment | $ 6.6 | |||||||||
Substantive participating rights expiration date | Jan. 01, 2021 | Jan. 01, 2021 | ||||||||
Carrying value of investment | $ 76.2 | 76.2 | ||||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 65.3 | |||||||||
Mark-to-market expense | $ 2.2 | |||||||||
Flo Technologies, Inc. [Member] | Other Income [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Non cash gain (loss) on forward contract or remeasurement of existing investment | 4.4 | |||||||||
Flo Technologies, Inc. [Member] | Other Income/Expenses [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Non cash gain (loss) on forward contract or remeasurement of existing investment | $ 4.5 | |||||||||
Flo Technologies, Inc. [Member] | Other Assets [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination remaining shares to be exchanged for additional cash in future | $ 7.9 | |||||||||
Larson [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination net of cash acquired | 717.5 | |||||||||
Business acquisition, transaction costs | $ 4.5 | $ 4.5 | ||||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||||
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 | |||||||||
Cash acquired from acquisition | $ 4.8 | |||||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 23.3 | |||||||||
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 | |||||||||
Cash acquired from acquisition | $ 4.8 | |||||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 88.7 |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Financial Information (Detail) - Larson [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |
Net sales | $ 4,024.2 |
Net income | $ 418.9 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
NET SALES | $ 3,199.7 | $ 2,855 | $ 2,469 | ||||||||
Cost of products sold | 2,279.3 | 2,068.5 | 1,768.7 | ||||||||
Selling, general and administrative expense | 619.7 | 485.3 | 433.8 | ||||||||
Amortization of intangible asset | 16.8 | 17.8 | 17.8 | ||||||||
Asset impairment charges | 46.4 | 0 | 9.5 | ||||||||
Restructuring charges | 25.1 | 4.2 | 5.5 | ||||||||
DISCONTINUED OPERATING INCOME | 212.4 | 279.2 | 233.7 | ||||||||
Interest expense | 0.2 | 0.1 | 0.1 | ||||||||
Other expense, net | 2.2 | 0.4 | 2.2 | ||||||||
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | 210 | 278.7 | 231.4 | ||||||||
Income taxes | 63.2 | 66 | 57.8 | ||||||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | $ (18.4) | $ 62.7 | $ 47.7 | $ 54.8 | $ 47.7 | $ 50.6 | $ 57.7 | $ 56.7 | $ 146.8 | $ 212.7 | $ 173.6 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 45.9 | |
Accounts receivable less allowances for discounts and credit losses | 305.3 | |
Inventories | 304.3 | |
Other current assets | 58.5 | |
TOTAL CURRENT ASSETS | $ 0 | 714 |
Property, plant and equipment, net of accumulated depreciation | 338.7 | |
Operating lease assets | 61.2 | |
Goodwill | 926.2 | |
Other intangible assets, net of accumulated amortization | 415.7 | |
Other assets | 33.9 | |
TOTAL ASSETS | 2,489.7 | |
Current liabilities | ||
Accounts payable | 203.9 | |
Other current liabilities | 159.8 | |
TOTAL CURRENT LIABILITIES | $ 0 | 363.7 |
Deferred income taxes | 94.3 | |
Accrued defined benefit plans | (1.2) | |
Operating lease liabilities | 50 | |
Other non-current liabilities | 5.8 | |
TOTAL LIABILITIES | $ 512.6 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Cash Flow Information Related to Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Net Cash Provided By Operating Activities | $ 213 | $ 162.7 | $ 232.9 |
Net Cash Provided By Investing Activities | (55.8) | (51.5) | (26.7) |
Net Cash used in Financing Activities | 0 | 0 | 0 |
Effect of foreign exchange rate changes on cash | (0.2) | 0.1 | 0.8 |
Net increase (decrease) in cash and cash equivalents | $ 157 | $ 111.3 | $ 207 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Discontinued Operation, Transaction Costs | $ 63.2 | ||
Depreciation | 43.6 | $ 44.4 | $ 48 |
Amortization of intangible asset | 16.8 | 17.8 | 17.8 |
Capital Expenditure | $ 55.8 | $ 51.6 | $ 27.3 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | ||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 1,640.7 | $ 1,468.7 | $ 1,538.9 | |
Net identifiable intangible assets | 1,000.8 | 968.1 | |||
Increase in gross identifiable intangible assets | 78.4 | ||||
Impairment of intangible assets, trade names | 0 | ||||
Amount of fair value in excess of carrying amount | $ 111 | ||||
Percentage of fair value in excess of carrying amount | 10% | ||||
Expected intangible amortization expense in 2023 | $ 50 | ||||
Expected intangible amortization expense in 2024 | 50 | ||||
Expected intangible amortization expense in 2025 | 50 | ||||
Expected intangible amortization expense in 2026 | 49 | ||||
Expected intangible amortization expense in 2027 | 47 | ||||
Gross Carrying Amounts, Indefinite-lived tradenames | 478.1 | 479.2 | |||
Tradenames and Customer Relationship [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Net identifiable intangible assets | $ 1,000.8 | 968.1 | |||
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 | ||||
Water Innovations [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 893.4 | $ 750.1 | $ 814.1 | |
Water Innovations [Member] | COVID-19 [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Impairment of intangible assets, trade names | $ 13 | ||||
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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Goodwill [Line Items] | |||
Beginning Balance | [1] | $ 1,538.9 | $ 1,468.7 |
Translation adjustments | (10.2) | (1.2) | |
Acquisition-related adjustments | 112 | 71.4 | |
Ending Balance | [1] | 1,640.7 | 1,538.9 |
Water Innovations [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 814.1 | 750.1 |
Translation adjustments | (9.4) | (1.3) | |
Acquisition-related adjustments | 88.7 | 65.3 | |
Ending Balance | [1] | 893.4 | 814.1 |
Outdoors & Security [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 724.8 | 718.6 |
Translation adjustments | (0.8) | 0.1 | |
Acquisition-related adjustments | 23.3 | 6.1 | |
Ending Balance | [1] | $ 747.3 | $ 724.8 |
[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 | Dec. 31, 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 478.1 | $ 479.2 |
Net Book Value, Indefinite-lived tradenames | 478.1 | 479.2 |
Gross Carrying Amounts, Finite Lived | 838.6 | 759.1 |
Accumulated Amortization, Finite Lived | (315.9) | (270.2) |
Net Book Value, Finite Lived | 522.7 | 488.9 |
Gross Carrying Amounts, Total identifiable intangibles | 1,316.7 | 1,238.3 |
Accumulated Amortization, Total identifiable intangibles | (315.9) | (270.2) |
Net Book Value, Total identifiable intangibles | 1,000.8 | 968.1 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 47.5 | 25.8 |
Accumulated Amortization, Finite Lived | (6.8) | (5.2) |
Net Book Value, Finite Lived | 40.7 | 20.6 |
Customer and contractual relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 662.6 | 611.2 |
Accumulated Amortization, Finite Lived | (239.6) | (205.7) |
Net Book Value, Finite Lived | 423 | 405.5 |
Patents/proprietary technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 128.5 | 122.1 |
Accumulated Amortization, Finite Lived | (69.5) | (59.3) |
Net Book Value, Finite Lived | $ 59 | $ 62.8 |
Goodwill and Identifiable Int_7
Goodwill and Identifiable Intangible Assets - Significant Assumptions Used to Estimate the Fair Value of Tradename Impaired (Detail) - Tradename [Member] | Dec. 31, 2020 | |
Discount Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.158 | |
Royalty Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.050 | [1] |
Long-term Revenue Growth Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assumptions used to estimate the fair values | 0.030 | [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 . |
Goodwill and Identifiable Int_8
Goodwill and Identifiable Intangible Assets - Significant Assumptions Used to Estimate the Fair Value of Tradename Impaired (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Tradename [Member] | Long-term Revenue Growth Rate [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Long-term revenue growth rate projection period | 10 years |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 37.4 | $ 35.6 | $ 32.8 |
Variable lease cost | $ 2.6 | $ 1.8 | $ 1.8 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 35.1 | $ 33.3 | $ 30.3 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 21.6 | $ 33.9 | $ 34.3 |
Weighted average remaining lease term - operating leases | 5 years 7 months 6 days | 6 years 1 month 6 days | 6 years 10 months 24 days |
Weighted average discount rate - operating leases | 3.60% | 3.50% | 3.90% |
Leases - Total Lease Payments U
Leases - Total Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 34.1 | |
2024 | 26.4 | |
2025 | 19.8 | |
2026 | 17 | |
2027 | 14.2 | |
Thereafter | 28.6 | |
Total lease payments | 140.1 | |
Less imputed interest | (14.2) | |
Total | 125.9 | |
Other current liabilities | $ 30.5 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | |
Operating lease liabilities | $ 95.4 | $ 108.8 |
External Debt and Financing A_3
External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 18, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 25, 2022 | |
Debt Instrument [Line Items] | ||||||||
Aggregate outstanding notes | $ 2,700,000 | |||||||
Aggregate principal amount | 2,700,000,000 | |||||||
Repayment of long-term debt | 5,612,500,000 | $ 1,510,000,000 | $ 1,465,000,000 | |||||
Long-term debt | 2,673,500,000 | 2,709,800,000 | ||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 20,500,000 | 17,500,000 | ||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding | $ 0 | $ 0 | ||||||
Weighted-average interest rates on borrowings | 0% | 0% | ||||||
2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||||||
Long-term debt | $ 0 | $ 400,000,000 | ||||||
Term loan maturity period | 2022-11 | |||||||
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 | |||||||
Principal Amount | $ 600,000,000 | |||||||
2021 Term Loan [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 400,000,000 | |||||||
2021 Term Loan [Member] | SOFR Member | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 600,000,000 | |||||||
2021 Term Loan [Member] | SOFR Member | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 0.725% | |||||||
2021 Term Loan [Member] | SOFR Member | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 1.35% | |||||||
Commercial Paper Program [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000,000 | |||||||
4.000% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500,000,000 | |||||||
Senior unsecured notes, maturity year | 2032 | |||||||
Issuance Date | 2015-06 | |||||||
Long-term debt | $ 498,100,000 | 497,400,000 | ||||||
2018 Senior Notes [Member] | 4.000% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 600,000,000 | |||||||
Issuance Date | 2018-09 | |||||||
Long-term debt | $ 599,200,000 | 598,200,000 | ||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 900,000,000 | |||||||
Long-term debt payments due in 2023 | 600,000,000 | |||||||
Long-term debt payments due in 2024 | 0 | |||||||
Long-term debt payments due in 2025 | 500,000,000 | |||||||
Long-term debt payments due in 2026 | 0 | |||||||
Long-term debt payments due in 2027 | 0 | |||||||
Long-term debt payments due in 2028 and beyond | 1,600,000,000 | |||||||
Interest payments due in 2023 | 105,000,000 | |||||||
Interest payments due in 2024 through 2025 | 152,000,000 | |||||||
Interest payments due in 2026 through 2027 | 122,000,000 | |||||||
Interest payments due in 2028 and beyond | 642,000,000 | |||||||
Long-term debt | 2,673,500,000 | 1,789,800,000 | ||||||
Senior Notes [Member] | 4.000% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||
Senior unsecured notes, coupon rate | 4% | |||||||
Senior Notes [Member] | 4.500% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||
Senior unsecured notes, maturity year | 2052 | |||||||
Senior unsecured notes, coupon rate | 4.50% | |||||||
2022 Revolving Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 520,000,000 | ||||||
2022 Revolving Credit Agreement [Member] | 2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan, outstanding borrowings | $ 1,100,000,000 | |||||||
2022 Revolving Credit Agreement [Member] | 4.000% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||
Issuance Date | 2022-03 | |||||||
Long-term debt | $ 445,800,000 | 0 | ||||||
2022 Revolving Credit Agreement [Member] | 4.500% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||
Issuance Date | 2022-03 | |||||||
Long-term debt | $ 435,400,000 | 0 | ||||||
2022 Revolving Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000,000 | |||||||
Term loan maturity period | 2027-08 | |||||||
Debt Instrument, Description of Variable Rate Basis | Interest rates under the 2022 Revolving Credit Agreement are variable based on 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 | |||||||
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 | 0.30 | |||||||
Ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA | 0.35 | |||||||
Term loan, outstanding borrowings | $ 0 | $ 520,000,000 | ||||||
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 | $ 1,100,000,000 |
External Debt and Financing A_4
External Debt and Financing Arrangements - Summary of Outstanding Notes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 2,700 | ||
Net Carrying Value | 2,673.5 | $ 2,709.8 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 900 | ||
Net Carrying Value | 2,673.5 | 1,789.8 | |
4.000% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 500 | ||
Issuance Date | 2015-06 | ||
Maturity Date | 2025-06 | ||
Net Carrying Value | $ 498.1 | 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 | $ 599.2 | 598.2 | |
4.000% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | 450 | ||
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 | $ 445.8 | $ 0 | |
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 | $ 695 | $ 694.2 | |
4.500% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | 2052-03 | ||
4.500% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 450 | ||
4.500% Senior Notes [Member] | 2022 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 450 | ||
Issuance Date | 2022-03 | ||
Net Carrying Value | $ 435.4 | $ 0 |
External Debt and Financing A_5
External Debt and Financing Arrangements - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 2,673.5 | $ 2,709.8 |
Less: current portion | 599.2 | 400 |
Long-term debt | 2,074.3 | 2,309.8 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 2,673.5 | 1,789.8 |
2022 Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 520 |
2021 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 400 |
External Debt and Financing A_6
External Debt and Financing Arrangements - Components of Long-Term Debt (Parenthetical) (Detail) - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Notes maturity year | 2023 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Notes maturity year | 2052 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Gross notional amount of derivatives | $ 17.8 | $ 5 | |
Net settlement asset on derivatives outstanding | 0 | ||
Net settlement liability on derivatives outstanding | 3.6 | ||
Net settlement asset | 4.2 | ||
Derivative instrument gain (loss) | 126.2 | 1.5 | $ (3.2) |
Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Gross notional amount of derivatives | 285 | ||
Cash flow hedge [Member] | |||
Derivative [Line Items] | |||
Derivative instrument gain (loss) | 119 | $ 1 | $ (1.8) |
Cash flow hedge [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Estimated amount of net derivative gain in accumulated other comprehensive income reclassified to earnings within 12 months | $ 2.3 | ||
Minimum [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts period | 12 months | ||
Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts period | 15 months |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 89.6 | $ 3.6 |
Derivative liabilities, fair value | 4.3 | 0.8 |
Other Current Assets [Member] | Foreign exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 5 | 3.6 |
Other Current Assets [Member] | Interest rate contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 84.6 | 0 |
Other Current Liabilities [Member] | Foreign exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 0.7 | 0.7 |
Other Current Liabilities [Member] | Commodity contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 3.6 | $ 0.1 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign exchange contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ 4.8 | $ (2.6) | $ (0.7) |
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 |
Commodity contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ (7.3) | $ (1.3) | |
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 | $ 3.6 | $ 0.6 | $ 0.6 |
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 |
Cost of products sold [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 2,790.1 | $ 2,840.6 | $ 2,157.4 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax |
Interest expense [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 119.2 | $ 84.3 | $ 83.8 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax |
Other income/expense, net [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 12 | $ 0.4 | $ 15.3 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax |
Other income/expense, net [Member] | Designated as hedging instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 21.3 | $ 2.1 | $ (2.8) |
Other income/expense, net [Member] | Foreign exchange contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (22.4) | $ (4.7) | $ 3.5 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value [Member] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 2,673.5 | $ 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 | 0 | 520 |
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] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 2,412.6 | 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 | 0 | 520 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset financial instruments (level 2) | $ 89.6 | $ 3.6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 104.5 | 18.2 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset financial instruments (level 2) | 89.6 | 3.6 |
Deferred compensation program assets (level 2) | 14.9 | 14.6 |
Derivative liability financial instruments (level 2) | $ 4.3 | $ 0.8 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 60,000,000 | 60,000,000 | |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, shares outstanding | 0 | ||
Common stock repurchases | 7,563,462 | 4,702,128 | |
Treasury stock purchases | $ 580.1 | $ 447.7 | $ 187.6 |
Stock repurchase program, remaining authorized repurchase amount | $ 584.6 |
Common Stock - Common Stock and
Common Stock - Common Stock and Treasury Stock Activity (Detail) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common shares | ||
Balance at the beginning of the year | 135,064,296 | 138,660,154 |
Stock plan shares issued | 856,175 | 1,250,550 |
Shares surrendered by optionees | (316,450) | (144,280) |
Common stock repurchases | (7,563,462) | (4,702,128) |
Balance at the end of the year | 128,040,559 | 135,064,296 |
Treasury shares | ||
Balance at the beginning of the year | 50,252,566 | 45,406,158 |
Shares surrendered by optionees | 316,450 | 144,280 |
Common stock repurchases | 7,563,462 | 4,702,128 |
Balance at the end of the year | 58,132,478 | 50,252,566 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of products sold | $ 2,790.1 | $ 2,840.6 | $ 2,157.4 | ||||||||
Interest expense | 119.2 | 84.3 | 83.8 | ||||||||
Income from continuing operations before income taxes | $ 155.3 | $ 162.5 | $ 189 | $ 160.3 | $ 174.5 | $ 200.1 | $ 200.5 | $ 151.3 | 667.1 | 726.4 | 499.2 |
Income(Loss)From Continuing Operations Before Income Taxes ,Noncontrolling interest | 667.1 | 726.4 | 499.2 | ||||||||
Recognition of actuarial losses (gains) | 1.2 | (0.8) | (3.2) | ||||||||
Tax (expense) benefit | (127.2) | (166.7) | (110.8) | ||||||||
Net income | 686.7 | 772.4 | 554.4 | ||||||||
Income after tax | 539.9 | 559.7 | $ 388.4 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | 3.4 | (1.1) | |||||||||
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 from continuing operations before income taxes | 1.1 | (0.7) | |||||||||
Tax (expense) benefit | 0.6 | 0.2 | |||||||||
Net income | 1.7 | (0.5) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Foreign exchange contracts [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of products sold | 4.8 | (2.6) | |||||||||
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 | 3.6 | 0.6 | |||||||||
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 | (7.3) | 1.3 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Defined Benefit Plan Adjustments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Recognition of actuarial losses (gains) | 1.3 | (0.8) | |||||||||
Tax (expense) benefit | (0.4) | 0.2 | |||||||||
Net income | $ 1.7 | $ (0.6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Loss from discontinued operations, net of tax | $ 146.8 | $ 212.7 | $ 173.6 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Loss from discontinued operations, net of tax | $ 4.5 | $ 2.9 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 3,064.8 | $ 2,775.5 | $ 2,427.8 |
Distribution of MasterBrand | (1,965.2) | ||
Ending Balance | 2,086.9 | 3,064.8 | 2,775.5 |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 3.3 | 7.2 | (11.5) |
Amounts classified into accumulated other comprehensive (loss) income | (23.4) | (3.9) | 18.7 |
Net current period other comprehensive (loss) income | (23.4) | (3.9) | 18.7 |
Distribution of MasterBrand | 8 | ||
Ending Balance | 12.1 | 3.3 | 7.2 |
Derivative Hedging Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 2.9 | 4.2 | 5.5 |
Amounts classified into accumulated other comprehensive (loss) income | 99.6 | 1.1 | (3.7) |
Amounts reclassified into earnings | (6.2) | (2.4) | 2.4 |
Net current period other comprehensive (loss) income | 93.4 | (1.3) | (1.3) |
Distribution of MasterBrand | (2.8) | ||
Ending Balance | 93.5 | 2.9 | 4.2 |
Defined Benefit Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (30.8) | (66.5) | (66.6) |
Amounts classified into accumulated other comprehensive (loss) income | (14.6) | 35.1 | 2.7 |
Amounts reclassified into earnings | (1.7) | 0.6 | |
Net current period other comprehensive (loss) income | (16.3) | 35.7 | 0.1 |
Distribution of MasterBrand | 3.1 | ||
Ending Balance | (44) | (30.8) | (66.5) |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (24.6) | (55.1) | (72.6) |
Amounts classified into accumulated other comprehensive (loss) income | 61.6 | 32.3 | 12.3 |
Amounts reclassified into earnings | (7.9) | (1.8) | 5.2 |
Net current period other comprehensive (loss) income | 53.7 | 30.5 | 17.5 |
Distribution of MasterBrand | 8.3 | ||
Ending Balance | $ 37.4 | $ (24.6) | $ (55.1) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Incentive Plan, common stock available for issuance | 5,100,000 | ||
Incentive Plan, options vesting period | 3 years | ||
Unrecognized compensation cost, weighted-average recognition period | 1 year 8 months 12 days | ||
Incentive Plan, options maturity period | 10 years | ||
Incentive Plan, weighted-average grant date fair value of stock options granted | $ 24.50 | $ 24.55 | $ 15.21 |
Unrecognized compensation cost related to unvested option | $ 6.2 | ||
Fair value of options vested | 26.2 | $ 4.8 | $ 8 |
Intrinsic value of stock options exercised | $ 1.1 | 40.1 | 54.2 |
Performance Condition Achievement | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vested | (475,760) | ||
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation costs classified as liability | $ 0.3 | 3.3 | 2.3 |
Incentive Plan, options vesting period | 3 years | ||
Unrecognized pre-tax compensation cost | $ 26 | ||
Fair value of performance share awards vested | $ 16.8 | $ 15.6 | $ 17.1 |
Stock Option Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost, weighted-average recognition period | 1 year 9 months 18 days | ||
Performance Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized pre-tax compensation cost | $ 0.8 | ||
Unrecognized compensation cost, weighted-average recognition period | 1 year 10 months 24 days | ||
Fair value of performance share awards vested | $ 11.4 | ||
Vested | (475,760) | ||
Director Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock awards issued | 17,649 | 12,114 | 20,181 |
Common stock issued to outside directors | $ 73.94 | $ 107.73 | $ 46.82 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 40.1 | $ 45.1 | $ 40.6 |
Tax benefit | 9.2 | 7.9 | 6.2 |
Total after tax expense | 30.9 | 37.2 | 34.4 |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 16.6 | 17.8 | 15.6 |
Stock Option Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 6.6 | 5.3 | 4.6 |
Performance Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 15.6 | 20.7 | 19.5 |
Director Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 1.3 | $ 1.3 | $ 0.9 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Restricted Stock Units | |
Non-vested at December 31, 2021 | shares | 396,399 |
Granted | shares | 1,485,979 |
Vested | shares | (184,290) |
Forfeited | shares | (519,762) |
Non-vested at December 31, 2022 | shares | 1,178,326 |
Weighted-Average Grant-Date Fair Value | |
Non-vested at December 31, 2021 | $ / shares | $ 75.45 |
Granted | $ / shares | 71.85 |
Vested | $ / shares | 69.37 |
Forfeited | $ / shares | 80.45 |
Non-vested at December 31, 2022 | $ / shares | $ 69.65 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Current expected dividend yield | 1.20% | 1.20% | 1.40% |
Expected volatility | 34.80% | 35.10% | 25.90% |
Risk-free interest rate | 2.30% | 0.60% | 1.20% |
Expected term | 5 years 2 months 12 days | 5 years 2 months 12 days | 5 years 3 months 18 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Options | |
Outstanding at December 31, 2021 | shares | 1,819,151 |
Granted | shares | 2,715,899 |
Exercised | shares | (29,435) |
Expired/forfeited | shares | (2,179,188) |
Outstanding at December 31, 2022 | shares | 2,326,427 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2021 | $ / shares | $ 61.87 |
Granted | $ / shares | 60.02 |
Exercised | $ / shares | 37.83 |
Expired/forfeited | $ / shares | 65.26 |
Outstanding at December 31, 2022 | $ / shares | $ 56.84 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Outstanding and Exercisable (Detail) | 12 Months Ended | |
Dec. 31, 2022 $ / shares shares | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Options Outstanding | shares | 2,326,427 | [1] |
Exercise Price Range One | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Options Outstanding, Weighted-Average Remaining Contractual Life | 5 years 11 months 4 days | [1] |
Options Outstanding, Weighted-Average Exercise Price | $ 56.84 | [1] |
Options Exercisable | shares | 1,701,253 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $ 51.98 | [2] |
Exercise Price Range Two | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower limit | 20.01 | |
Range of Exercise Prices, upper limit | $ 76.63 | |
[1] At December 31, 2022 , the aggregate intrinsic value of options outstanding was $ 12.6 million. At December 31, 2022 , the weighted-average remaining contractual life of options exercisable was 5.0 years and the aggregate intrinsic value of options exercisable was $ 12.2 million. |
Stock-Based Compensation - Op_2
Stock-Based Compensation - Options Outstanding and Exercisable (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Options outstanding, aggregate intrinsic value | $ 12.6 |
Options exercisable, weighted-average remaining contractual life | 5 years |
Options exercisable, aggregate intrinsic value | $ 12.2 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarizes Information of Performance Share Awards (Detail) - Performance Awards | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested at December 31, 2021 | shares | 543,333 |
Granted | shares | 708,111 |
Vested | shares | (475,760) |
Forfeited | shares | (755,112) |
Non-vested at December 31, 2022 | shares | 20,572 |
Non-vested at December 31, 2021 | $ / shares | $ 64.68 |
Granted | $ / shares | 69.40 |
Vested | $ / shares | 47.76 |
Forfeited | $ / shares | 79.47 |
Non-vested at December 31, 2022 | $ / shares | $ 75.59 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Payment term on product sales range, description | Payment terms on our product sales normally range from 30 to 90 days. | |
Other Current Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Refund obligation | $ 27.2 | $ 22.9 |
Other Current Assets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, right to recover product, current | $ 2.9 | $ 2.2 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | $ 1,131.9 | $ 1,195.5 | $ 1,255.4 | $ 1,140.2 | $ 1,218 | $ 1,269.9 | $ 1,230.1 | $ 1,083.1 | $ 4,723 | [1] | $ 4,801.1 | [1] | $ 3,621.3 | [1] | |
Wholesalers [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [2] | 2,100 | 2,027.9 | 1,500.6 | |||||||||||
Home Center retailers [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [3] | 1,270.7 | 1,254.1 | 928.2 | |||||||||||
Other retailers [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [4] | 392.9 | 440.7 | 346 | |||||||||||
United States [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 3,763.6 | 3,722.7 | 2,774.8 | ||||||||||||
Net sales | [1] | 3,763.6 | 3,722.7 | 2,774.8 | |||||||||||
International [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [5] | $ 959.4 | $ 1,078.4 | $ 846.5 | |||||||||||
[1] Based on country of destination Represents sales to customers whose business is oriented toward builders, professional tradespeople 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 China, Canada, Europe and Mexico. |
Defined Benefit Plans - Additio
Defined Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 USD ($) Age | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, cash contributions | $ | $ 36.3 | $ 33.1 | $ 22.3 | |
Cash and cash equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 25% | |||
Other Investment | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 20% | |||
Real estate [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Assets redemption notice period | 45 days | |||
Investment Assets [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Assets redemption notice period | 95 days | |||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investments measured using net asset value per share | $ | $ 456.5 | $ 624.3 | ||
Minimum [Member] | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 0% | |||
Minimum [Member] | Fixed income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 25% | |||
Maximum [Member] | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 75% | |||
Maximum [Member] | Fixed income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 100% | |||
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, blended long-term rate of return on plan assets | 4.40% | 4.40% | 4.50% | |
Pension Benefits [Member] | Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, retirement benefits payment commencement age | Age | 55 | |||
Pension Benefits [Member] | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, retirement benefits payment commencement age | Age | 65 | |||
Pension Benefits [Member] | Scenario Forecast Member | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, blended long-term rate of return on plan assets | 6.10% |
Defined Benefit Plans - Obligat
Defined Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in the Projected Benefit Obligation (PBO): | |||
Recognition of actuarial losses (gains) | $ (1.2) | $ 0.8 | $ 3.2 |
Change in Plan Assets: | |||
Beginning balance | 649.8 | ||
Ending balance | 482.5 | 649.8 | |
Pension Benefits [Member] | |||
Change in the Projected Benefit Obligation (PBO): | |||
Projected benefit obligation at beginning of year | 712 | 750.6 | |
Service cost | 0.2 | 0.4 | |
Interest cost | 20.4 | 19.3 | |
Recognition of actuarial losses (gains) | (155.9) | (26.2) | |
Benefits paid | (33.1) | (32.1) | |
Projected benefit obligation at end of year | 543.6 | 712 | 750.6 |
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | 543.6 | 712 | |
Change in Plan Assets: | |||
Beginning balance | 649.8 | 624.2 | |
Actual return on plan assets | (144.8) | 37.8 | |
Employer contributions | (10.6) | (19.9) | |
Benefits paid | (33.1) | (32.1) | |
Ending balance | 482.5 | 649.8 | 624.2 |
Funded status (Fair value of plan assets less PBO) | (61.1) | (62.2) | |
Postretirement Benefits [Member] | |||
Change in the Projected Benefit Obligation (PBO): | |||
Projected benefit obligation at beginning of year | 9.8 | 10.6 | |
Service cost | 0.4 | 0.2 | |
Interest cost | 0.4 | 0.2 | |
Recognition of actuarial losses (gains) | (1.2) | (1) | |
Benefits paid | (0.4) | (0.2) | |
Projected benefit obligation at end of year | 9 | 9.8 | $ 10.6 |
Change in Plan Assets: | |||
Employer contributions | (0.4) | (0.1) | |
Benefits paid | (0.4) | 0.1 | |
Funded status (Fair value of plan assets less PBO) | $ (9) | $ (9.8) |
Defined Benefit Plans - Amounts
Defined Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ (79.9) | $ (80.9) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current benefit payment liability | (1.5) | (1.3) |
Accrued benefit liability | (59.6) | (60.9) |
Net amount recognized | (61.1) | (62.2) |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current benefit payment liability | (1.2) | (0.8) |
Accrued benefit liability | (7.8) | (9) |
Net amount recognized | $ (9) | $ (9.8) |
Defined Benefit Plans - Amoun_2
Defined Benefit Plans - Amounts in Accumulated Other Comprehensive loss that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognition of actuarial loss | $ 1.2 | $ (0.8) | $ (3.2) |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognition of actuarial loss | 155.9 | 26.2 | |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognition of actuarial loss | 1.2 | 1 | |
Other Accumulated Other Comprehensive Income | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning Balance | 32.4 | 70.1 | |
Recognition of actuarial loss | 0.3 | (1.1) | |
Current year actuarial (gain) loss | 17 | (36.6) | |
Ending Balance | 49.7 | 32.4 | $ 70.1 |
Other Accumulated Other Comprehensive Income | Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning Balance | (0.4) | ||
Recognition of actuarial loss | 1 | 0.5 | |
Current year actuarial (gain) loss | (1.1) | (0.9) | |
Ending Balance | $ (0.5) | $ (0.4) |
Defined Benefit Plans - Compone
Defined Benefit Plans - Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognition of actuarial losses (gains) | $ 1.2 | $ (0.8) | $ (3.2) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.2 | 0.4 | |
Interest cost | 20.4 | 19.3 | |
Recognition of actuarial losses (gains) | 155.9 | 26.2 | |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.4 | 0.2 | |
Interest cost | 0.4 | 0.2 | |
Recognition of actuarial losses (gains) | 1.2 | 1 | |
Net Periodic Benefit Cost | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.2 | 0.4 | $ 5.2 |
Interest cost | 20.4 | 19.3 | 35.2 |
Expected return on plan assets | (28.1) | (27.4) | (33.3) |
Recognition of actuarial losses (gains) | (0.3) | 1.1 | 2.1 |
Settlement/Curtailment losses (gains) | 0 | 0.6 | |
Net periodic benefit (income) cost | (7.8) | (6.6) | (0.6) |
Net Periodic Benefit Cost | Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.4 | 0.2 | |
Interest cost | 0.4 | 0.2 | |
Recognition of actuarial losses (gains) | (1) | (0.5) | (0.1) |
Net periodic benefit (income) cost | $ (0.2) | $ (0.1) | $ (0.1) |
Defined Benefit Plans - Schedul
Defined Benefit Plans - Schedule of Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||
Discount rate | 5.20% | 2.90% | 2.60% |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||
Discount rate | 2.90% | 2.60% | 3.30% |
Expected long-term rate of return on plan assets | 4.40% | 4.40% | 4.50% |
Postretirement Benefits [Member] | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||
Discount rate | 5.80% | 3.90% | 5.90% |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||
Discount rate | 3.90% | 5.90% | 6.40% |
Defined Benefit Plans - Assumed
Defined Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost (Detail) - Postretirement Benefits [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | |
Year that the rate reaches the ultimate trend rate | 2028 | 2028 | |
Pre Age Sixty Five | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | [1] | 5.80% | 6.30% |
Post Age Sixty Five | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | [1] | 6.30% | 6.70% |
[1] The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate |
Defined Benefit Plans - Fair Va
Defined Benefit Plans - Fair Value of Pension Assets by Major Category of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 482.5 | $ 649.8 | |
Group annuity/insurance contracts (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 26 | 25.5 | $ 24.8 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 6.3 | 3.2 | |
Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 113.8 | 174.8 | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 291.6 | 409.7 | |
Multi-strategy hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 21.3 | 17.2 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 23.5 | $ 19.4 |
Defined Benefit Plans - Reconci
Defined Benefit Plans - Reconciliation of Level Three Measurements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 649.8 | |
Ending balance | 482.5 | $ 649.8 |
Group annuity/insurance contracts (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 25.5 | 24.8 |
Actual return on assets related to assets still held | 0.5 | 0.7 |
Ending balance | $ 26 | $ 25.5 |
Defined Benefit Plans - Sched_2
Defined Benefit Plans - Schedule of Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 35.6 |
2024 | 36.1 |
2025 | 36.9 |
2026 | 37.8 |
2027 | 38.1 |
Years 2028-2032 | 191.7 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 1.1 |
2024 | 1.1 |
2025 | 1.1 |
2026 | 1.1 |
2027 | 1.1 |
Years 2028-2032 | $ 5.7 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 563.1 | $ 591 | $ 396.1 |
Foreign operations | 104 | 135.4 | 103.1 |
Income(Loss)From Continuing Operations Before Income Taxes ,Noncontrolling interest | $ 667.1 | $ 726.4 | $ 499.2 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 62.4 | $ 102.4 | $ 50.5 |
Foreign | 34.3 | 40.2 | 49 |
State and other | 16 | 16.9 | 15.9 |
Deferred | |||
Federal | 15.3 | 11.5 | 7.6 |
Foreign | 1.5 | (4.9) | (12.6) |
State and Local | (2.3) | 0.6 | 0.4 |
Income tax expense as reported | $ 127.2 | $ 166.7 | $ 110.8 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Federal Statutory Tax Rate to Effective Tax Rate from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at federal statutory income tax rate | $ 140.1 | $ 152.5 | $ 104.9 |
State and local income taxes, net of federal tax benefit | 18.5 | 23.8 | 15.3 |
Foreign taxes at a different rate than U.S. federal statutory income tax rate | 9.1 | 9.2 | 6.7 |
Provision for foreign earnings repatriation, net | 1.2 | 0 | 2.1 |
Net adjustments for uncertain tax positions | (26.2) | (11.3) | (4.2) |
Share-based compensation | (5.4) | (9) | (9.8) |
Deferred tax impact of state tax rate changes | (1.9) | (0.7) | (0.8) |
Valuation allowance (decrease) increase | (5.8) | 4.7 | (7.1) |
Non-deductible executive compensation | 7.5 | 5 | 1.6 |
Expiration of loss carryforwards | 0 | 0 | 6.6 |
Miscellaneous other, net | (9.9) | (7.5) | (4.5) |
Income tax expense as reported | $ 127.2 | $ 166.7 | $ 110.8 |
Effective income tax rate | 19.10% | 22.90% | 22.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 33.4 | ||
Reasonably possible decrease in unrecognized tax benefits | 9.8 | ||
Unrecognized tax expense (benefits), interest and penalty expense (benefit) recognized | (6.4) | $ (1.9) | $ 0.7 |
Unrecognized tax benefits, accrued interest and penalties | 8.8 | 15.5 | |
Deferred tax assets, net operating losses and other tax carryforwards | 23.5 | $ 24.1 | |
Deferred tax assets, net operating losses and other tax carryforwards | 2.6 | ||
Deferred tax liability for foreign and state taxes | 0.5 | ||
Unremitted earnings of foreign subsidiaries | 191.8 | ||
Unrecognized deferred tax liabilities of Foreign Subsidiaries | $ 12.2 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period | 2023 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period | 2027 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits—beginning of year | $ 83.1 | $ 96.1 | $ 88 |
Gross additions—current year tax positions | 2.1 | 2.6 | 7.2 |
Gross additions—prior year tax positions | 0 | 2 | 3.7 |
Gross additions (reductions)—purchase accounting adjustments | 0 | 0 | 12.1 |
Gross reductions—prior year tax positions | (50.5) | (16.6) | (11.7) |
Gross reductions—settlements with taxing authorities | (1.3) | (1) | (3.2) |
Unrecognized tax benefits—end of year | $ 33.4 | $ 83.1 | $ 96.1 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Compensation and benefits | $ 21 | $ 30.8 |
Defined benefit plans | 15.4 | 16.5 |
Capitalized inventories | 17.8 | 21 |
Accounts receivable | 4.2 | 5 |
Operating lease liabilities | 31 | 34.5 |
Other accrued expenses | 51.2 | 50.8 |
Net operating loss and other tax carryforwards | 23.5 | 24.1 |
Valuation allowance | (13.8) | (20.7) |
Miscellaneous | 6.7 | 24 |
Total deferred tax assets | 157 | 186 |
Deferred tax liabilities: | ||
Fixed assets | (60.3) | (73) |
Intangible assets | (152.5) | (125.8) |
Operating lease assets | (29.3) | (32.6) |
Other investments | (28.2) | (0.9) |
Miscellaneous | (6.5) | (8.1) |
Total deferred tax liabilities | (276.8) | (240.4) |
Net deferred tax liability | (119.8) | (54.4) |
Other assets | 17.1 | 27.3 |
Deferred income taxes | $ (136.9) | $ (81.7) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Pre-tax Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring charges | Restructuring charges | Restructuring charges | |
Restructuring charges | $ 32.4 | $ 9.3 | $ 10.4 | |
Total Charges | 26.8 | 12.8 | 14.3 | |
Cost of products sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1] | (6.4) | 2 | 5.3 |
Selling, general and administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1],[2] | 0.8 | 1.5 | (1.4) |
Operating Segments [Member] | Water Innovations [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 6.3 | (1.1) | 6 | |
Total Charges | 6.9 | 3 | 8.7 | |
Operating Segments [Member] | Water Innovations [Member] | Cost of products sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1] | (0.2) | 2 | 4.4 |
Operating Segments [Member] | Water Innovations [Member] | Selling, general and administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1],[2] | 0.8 | 2.1 | (1.7) |
Operating Segments [Member] | Outdoors & Security [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 25.1 | 10.4 | 3 | |
Total Charges | 18.9 | 9.8 | 3.9 | |
Operating Segments [Member] | Outdoors & Security [Member] | Cost of products sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1] | (6.2) | 0 | 0.9 |
Operating Segments [Member] | Outdoors & Security [Member] | Selling, general and administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1],[2] | 0 | $ (0.6) | 0 |
Operating Segments [Member] | Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 1.4 | ||
Total Charges | 1 | 1.7 | ||
Operating Segments [Member] | Corporate [Member] | Cost of products sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1] | 0 | 0 | |
Operating Segments [Member] | Corporate [Member] | Selling, general and administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Charges | [1],[2] | $ 0 | $ 0.3 | |
[1] “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. Selling, general and administrative expenses. |
Restructuring and Other Charg_4
Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 4 | $ 5.4 | ||
Provision | 32.4 | 9.3 | $ 10.4 | |
Cash Expenditures | [1] | (6.7) | (10.7) | |
Ending Balance | 29.7 | 4 | 5.4 | |
Workforce Reduction Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 3.2 | 5.4 | ||
Provision | 19.4 | 8.5 | ||
Cash Expenditures | [1] | (6.4) | (10.7) | |
Ending Balance | 16.2 | 3.2 | 5.4 | |
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 0.8 | 0 | ||
Provision | 13 | 0.8 | ||
Cash Expenditures | [1] | (0.3) | 0 | |
Ending Balance | $ 13.5 | $ 0.8 | $ 0 | |
[1] Cash expenditures primarily related to severance charges. |
Commitments - Additional Inform
Commitments - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 561.3 |
Purchase obligations due in one year | $ 534 |
Commitments - Activity Related
Commitments - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | |||
Reserve balance at the beginning of the year | $ 19.5 | $ 19 | $ 18.5 |
Provision for warranties issued | 8.1 | 8.5 | 4.8 |
Settlements made (in cash or in kind) | (9) | (8.4) | (5.9) |
Acquisition | 1.7 | 0.3 | 1.5 |
Foreign currency | (0.2) | 0.1 | 0.1 |
Reserve balance at end of year | $ 20.1 | $ 19.5 | $ 19 |
Information on Business Segme_3
Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | $ 1,131.9 | $ 1,195.5 | $ 1,255.4 | $ 1,140.2 | $ 1,218 | $ 1,269.9 | $ 1,230.1 | $ 1,083.1 | $ 4,723 | [1] | $ 4,801.1 | [1] | $ 3,621.3 | [1] | |
Operating income | 774.3 | 811.1 | 567.7 | ||||||||||||
Assets | 6,120.9 | 7,936.2 | 6,120.9 | 7,936.2 | |||||||||||
Depreciation expense | 126.5 | 125 | 121.5 | ||||||||||||
Amortization of intangible assets | 48.3 | 46.4 | 24.2 | ||||||||||||
Capital expenditures, gross | [2] | 246.1 | 214.2 | 150.5 | |||||||||||
Less: proceeds from disposition of assets | (8.2) | (1.8) | (1) | ||||||||||||
Property, plant and equipment, net | 783.7 | 670.8 | 783.7 | 670.8 | |||||||||||
United States [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | [1] | 3,763.6 | 3,722.7 | 2,774.8 | |||||||||||
Property, plant and equipment, net | 673.5 | 569.6 | 673.5 | 569.6 | 487.3 | ||||||||||
Mexico [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Property, plant and equipment, net | 55.9 | 53.7 | 55.9 | 53.7 | 53.9 | ||||||||||
China [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | [1] | 363.9 | 510.4 | 416.7 | |||||||||||
Property, plant and equipment, net | 20.1 | 23.7 | 20.1 | 23.7 | 25 | ||||||||||
Canada [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | [1] | 368.2 | 384.2 | 280.3 | |||||||||||
Property, plant and equipment, net | 7.3 | 7.7 | 7.3 | 7.7 | 7.6 | ||||||||||
Other International [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | [1] | 227.3 | 183.8 | 149.5 | |||||||||||
Property, plant and equipment, net | 26.9 | 16.1 | 26.9 | 16.1 | 14.1 | ||||||||||
Operating Segments [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Assets | 6,120.9 | 5,446.5 | 6,120.9 | 5,446.5 | 4,991.9 | ||||||||||
Depreciation expense | 82.9 | 80.6 | 73.6 | ||||||||||||
Capital expenditures, gross | 190.2 | 162.6 | 123.2 | ||||||||||||
Capital expenditures, net | 182 | 160.8 | 122.2 | ||||||||||||
Property, plant and equipment, net | 783.7 | 670.8 | 783.7 | 670.8 | 587.9 | ||||||||||
Operating Segments [Member] | Water Innovations [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | 2,570.2 | 2,761.2 | 2,202.1 | ||||||||||||
Operating income | 614.6 | 629.7 | 467.9 | ||||||||||||
Assets | 2,674.4 | 2,614.7 | 2,674.4 | 2,614.7 | 2,262.9 | ||||||||||
Depreciation expense | 34.9 | 37.1 | 37.6 | ||||||||||||
Amortization of intangible assets | 16.2 | 14.9 | 10.8 | ||||||||||||
Capital expenditures, gross | 52.1 | 38.1 | 30.5 | ||||||||||||
Operating Segments [Member] | Outdoors & Security [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net sales | 2,152.8 | 2,039.9 | 1,419.2 | ||||||||||||
Operating income | 289.6 | 291.9 | 201.3 | ||||||||||||
Assets | 2,820 | 2,619.4 | 2,820 | 2,619.4 | 2,453.8 | ||||||||||
Depreciation expense | 45.5 | 40.7 | 33.3 | ||||||||||||
Amortization of intangible assets | 32.1 | 31.5 | 13.4 | ||||||||||||
Capital expenditures, gross | 138.1 | 124.2 | 76.4 | ||||||||||||
Corporate [Member] | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Operating income | (129.9) | (110.5) | (101.5) | ||||||||||||
Assets | $ 626.5 | $ 212.4 | 626.5 | 212.4 | 275.2 | ||||||||||
Depreciation expense | 2.5 | 2.8 | 2.7 | ||||||||||||
Capital expenditures, gross | $ 0 | $ 0.3 | $ 16.3 | ||||||||||||
[1] Based on country of destination Ca pital expenditures of $ 14.2 million, $ 19.6 million and $ 13.6 mill ion that have not been paid as of December 31, 2022, 2021 and 2020 , respectively, were excluded from the Consolidated Statement of Cash Flows. |
Information on Business Segme_4
Information on Business Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Number of customers accounted for greater than 10% of net sales | 2 | 2 | 2 |
Customer Concentration Risk | Net Sales [Member] | The Home Depot, Inc. [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Percentage of net sales to major customer | 11.70% | 11.20% | 14.10% |
Customer Concentration Risk | Net Sales [Member] | Lowe's Companies, Inc [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Percentage of net sales to major customer | 12% | 11.90% | 11.10% |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
NET SALES | $ 1,131.9 | $ 1,195.5 | $ 1,255.4 | $ 1,140.2 | $ 1,218 | $ 1,269.9 | $ 1,230.1 | $ 1,083.1 | $ 4,723 | [1] | $ 4,801.1 | [1] | $ 3,621.3 | [1] |
Gross profit | 472.3 | 478.9 | 513.2 | 468.5 | 495.9 | 511.2 | 504.7 | 448.7 | ||||||
Income from continuing operations before income taxes | 155.3 | 162.5 | 189 | 160.3 | 174.5 | 200.1 | 200.5 | 151.3 | 667.1 | 726.4 | 499.2 | |||
Net income from continuing operations | 128.1 | 141.4 | 144.2 | 126.2 | 127.5 | 151.7 | 159.4 | 121.1 | ||||||
Net income (loss) from discontinued operations | $ (18.4) | $ 62.7 | $ 47.7 | $ 54.8 | $ 47.7 | $ 50.6 | $ 57.7 | $ 56.7 | $ 146.8 | $ 212.7 | $ 173.6 | |||
Basic income from continuing operations per share | $ 1 | $ 1.09 | $ 1.11 | $ 0.94 | $ 0.94 | $ 1.10 | $ 1.15 | $ 0.88 | $ 4.14 | $ 4.07 | $ 2.74 | |||
Basic income (loss) from discontinued operations per share | (0.14) | 0.49 | 0.37 | 0.41 | 0.35 | 0.37 | 0.42 | 0.41 | 1.13 | 1.55 | 1.25 | |||
Diluted income from continuing operations per share | 0.99 | 1.09 | 1.10 | 0.93 | 0.93 | 1.09 | 1.14 | 0.85 | 4.11 | 4.01 | 2.71 | |||
Diluted income (loss) from discontinued operations per share | $ (0.14) | $ 0.48 | $ 0.37 | $ 0.41 | $ 0.36 | $ 0.36 | $ 0.41 | $ 0.40 | $ 1.12 | $ 1.53 | $ 1.23 | |||
Shares used in computation of basic income per share | 128.1 | 129.3 | 130.3 | 133.4 | 135.3 | 137.8 | 138.4 | 138.6 | 130.3 | [2] | 137.5 | [2] | 138.7 | [2] |
Shares used in computation of diluted income per share | 129 | 130.1 | 131.2 | 134.7 | 137.3 | 139.7 | 140.4 | 140.6 | 131.3 | [2] | 139.5 | [2] | 140.2 | [2] |
[1] Based on country of destination Reflects the impact of share repurchases during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Earnings Per Share [Abstract] | ||||||||||||||
Net income | $ 686.7 | $ 772.4 | $ 554.4 | |||||||||||
Income from continuing operations, net of tax | 539.9 | 559.7 | 380.8 | |||||||||||
Less: Noncontrolling interests | 0 | 0 | 1.3 | |||||||||||
Income from continuing operations | 539.9 | 559.7 | 379.5 | |||||||||||
Income from discontinued operations | $ (18.4) | $ 62.7 | $ 47.7 | $ 54.8 | $ 47.7 | $ 50.6 | $ 57.7 | $ 56.7 | 146.8 | 212.7 | 173.6 | |||
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 686.7 | $ 772.4 | $ 553.1 | |||||||||||
Continuing operations | $ 1 | $ 1.09 | $ 1.11 | $ 0.94 | $ 0.94 | $ 1.10 | $ 1.15 | $ 0.88 | $ 4.14 | $ 4.07 | $ 2.74 | |||
Discontinued operations | (0.14) | 0.49 | 0.37 | 0.41 | 0.35 | 0.37 | 0.42 | 0.41 | 1.13 | 1.55 | 1.25 | |||
Basic earnings per share attributable to Fortune Brands | 5.27 | 5.62 | 3.99 | |||||||||||
Continuing operations | $ 0.99 | $ 1.09 | $ 1.10 | $ 0.93 | $ 0.93 | $ 1.09 | $ 1.14 | $ 0.85 | 4.11 | 4.01 | 2.71 | |||
Discontinued operations | 1.12 | 1.53 | 1.23 | |||||||||||
Diluted earnings per share attributable to Fortune Brands | $ 5.23 | $ 5.54 | $ 3.94 | |||||||||||
Basic average number of shares outstanding | 128.1 | 129.3 | 130.3 | 133.4 | 135.3 | 137.8 | 138.4 | 138.6 | 130.3 | [1] | 137.5 | [1] | 138.7 | [1] |
Stock-based awards | 1 | 2 | 1.5 | |||||||||||
Diluted average shares outstanding | 129 | 130.1 | 131.2 | 134.7 | 137.3 | 139.7 | 140.4 | 140.6 | 131.3 | [1] | 139.5 | [1] | 140.2 | [1] |
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 1.3 | 0.3 | 0.8 | |||||||||||
[1] Reflects the impact of share repurchases during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Other (Income) Expense, Net - C
Other (Income) Expense, Net - Components of Other Expense (Income), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other expense (income), net | $ (12) | $ 0.4 | $ (15.3) |
Defined Benefit Plan [Member] | |||
Other expense (income), net | (8.7) | (7.1) | (1.1) |
Foreign Currency Gain (Loss) [Member] | |||
Other expense (income), net | 3.3 | 4.6 | 1.5 |
Losses (Gains) on Equity Investment [Member] | |||
Other expense (income), net | 0 | 5 | (11) |
Other Items, Net [Member] | |||
Other expense (income), net | $ (6.6) | $ (2.1) | $ (4.7) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingency [Abstract] | |||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Commitments and Contingencies | Commitments and Contingencies | |
Accruals, relating to environmental compliance and clean up | $ 0.3 | $ 0.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Segments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||
Number Of Reportable Segments | 2 | |
Scenario Forecast Member | ||
Subsequent Event [Line Items] | ||
Number Of Reportable Segments | 3 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Allowance for cash discounts and sales allowances | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line items] | ||||
Balance at Beginning of Period | $ 135.9 | $ 109.9 | $ 64 | |
Charged to Expense | 287 | 296.9 | 173.8 | |
Write-offs, and Deductions | [1] | 306.7 | 270.9 | 130.7 |
Business Acquisition | [2] | 2.8 | ||
Balance at End of Period | 116.2 | 135.9 | 109.9 | |
Allowance for credit losses | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line items] | ||||
Balance at Beginning of Period | 5.7 | 4.3 | 2.2 | |
Charged to Expense | 3.7 | 4 | 4.8 | |
Write-offs, and Deductions | [1] | 3.9 | 2.6 | 2.7 |
Balance at End of Period | 5.5 | 5.7 | 4.3 | |
Allowance for deferred tax assets | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line items] | ||||
Balance at Beginning of Period | 20.7 | 9.6 | 16.8 | |
Charged to Expense | (6.9) | 5 | (7.2) | |
Write-offs, and Deductions | [1] | 6.1 | ||
Balance at End of Period | $ 13.8 | $ 20.7 | $ 9.6 | |
[1] Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. Represents purchase accounting adjustment related to the Larson acquisition within our Outdoors & Security segment in 2020. |