Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FORTUNE BRANDS HOME & SECURITY, INC. | |
Entity Central Index Key | 0001519751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | FBHS | |
Entity Common Stock, Shares Outstanding | 138,598,332 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35166 | |
Entity Tax Identification Number | 62-1411546 | |
Entity Address, Address Line One | 520 Lake Cook Road | |
Entity Address, City or Town | Deerfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015-5611 | |
City Area Code | 847 | |
Local Phone Number | 484-4400 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net sales | $ 1,771 | $ 1,402.7 |
Cost of products sold | 1,126.9 | 909.5 |
Selling, general and administrative expenses | 371.5 | 313.9 |
Amortization of intangible assets | 16.6 | 10.3 |
Asset impairment charges | 9.5 | |
Restructuring charges | 7.6 | 4.5 |
Operating income | 248.4 | 155 |
Interest expense | 21.4 | 22.1 |
Other expense (income), net | 3.3 | (6.1) |
Income before taxes | 223.7 | 139 |
Income tax | 45.9 | 29.9 |
Income after tax | 177.8 | 109.1 |
Equity in losses of affiliate | 0.3 | |
Net income | 177.8 | 108.8 |
Less: Noncontrolling interests | (0.3) | |
Net income attributable to Fortune Brands | $ 177.8 | $ 109.1 |
Basic earnings per common share | $ 1.28 | $ 0.78 |
Diluted earnings per common share | $ 1.26 | $ 0.77 |
Comprehensive income | $ 181.9 | $ 58.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 356.1 | $ 419.1 | |
Accounts receivable less allowances for discounts and credit losses | 828.5 | 734.9 | |
Inventories | 958.4 | 867.2 | |
Other current assets | 202.9 | 187.3 | |
Total current assets | 2,345.9 | 2,208.5 | |
Property, plant and equipment, net of accumulated depreciation | 905.1 | 917.4 | |
Operating lease assets | 179.2 | 170.2 | |
Goodwill | [1] | 2,466.2 | 2,394.8 |
Other intangible assets, net of accumulated amortization | 1,434.3 | 1,420.3 | |
Other assets | 151.4 | 247.5 | |
Total assets | 7,482.1 | 7,358.7 | |
Current liabilities | |||
Accounts payable | 599.2 | 620.5 | |
Other current liabilities | 597.8 | 724.6 | |
Total current liabilities | 1,197 | 1,345.1 | |
Long-term debt | 2,682.8 | 2,572.2 | |
Deferred income taxes | 167.1 | 160.5 | |
Accrued defined benefit plans | 156.8 | 159.5 | |
Operating lease liabilities | 149.1 | 140.5 | |
Other non-current liabilities | 204.9 | 205.4 | |
Total liabilities | 4,557.7 | 4,583.2 | |
Commitments and contingencies (see Note 17) | |||
Stockholders' equity | |||
Common stock | [2] | 1.9 | 1.8 |
Paid-in capital | 2,955.1 | 2,926.3 | |
Accumulated other comprehensive loss | (51) | (55.1) | |
Retained earnings | 2,358 | 2,180.2 | |
Treasury stock | (2,339.6) | (2,277.7) | |
Total stockholders' equity | 2,924.4 | 2,775.5 | |
Total liabilities and equity | $ 7,482.1 | $ 7,358.7 | |
[1] | Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. | ||
[2] | Common stock, par value $0.01 per share; 184.7 million shares and 184.1 million shares issued at March 31, 2021 and December 31, 2020, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 184.7 | 184.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating activities | |||
Net income | $ 177.8 | $ 108.8 | |
Non-cash adjustments: | |||
Depreciation | 31.1 | 27.2 | |
Amortization of intangibles | 16.6 | 10.3 | |
Non-cash lease expense | 10.7 | 7.4 | |
Stock-based compensation | 11.6 | 11.1 | |
Deferred taxes | (0.1) | 0.5 | |
Asset impairment charges | 9.5 | ||
Amortization of deferred financing fees | 1.2 | 0.9 | |
Equity in losses of affiliate | 0.3 | ||
Loss (gain) on equity investments | 2.9 | (6.6) | |
Loss (gain) on sale of property, plant and equipment | 0.2 | (0.1) | |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (91.6) | (81.3) | |
(Increase) decrease in inventories | (86.4) | 9.6 | |
Decrease in accounts payable | (15.9) | (25.6) | |
Increase in other assets | (10.9) | (7.4) | |
Decrease in accrued expenses and other liabilities | (150.7) | (92.9) | |
Increase in accrued taxes | 34.3 | 14.5 | |
Net cash used in operating activities | (69.2) | (13.8) | |
Investing activities | |||
Capital expenditures | [1] | (25.4) | (26.9) |
Proceeds from the disposition of assets | 1.7 | 1.5 | |
Cost of acquisitions, net of cash acquired | 5.2 | ||
Cost of investments in equity securities | (51.6) | ||
Net cash used in investing activities | (18.5) | (77) | |
Financing activities | |||
Issuance of long-term debt | 370 | 380 | |
Repayment of long-term debt | (260) | (130) | |
Proceeds from the exercise of stock options | [2] | 10.6 | 18.4 |
Treasury stock purchases | (54.1) | (150) | |
Employee withholding taxes related to stock-based compensation | (7.8) | (7.6) | |
Dividends to stockholders | (36) | (33.5) | |
Other financing, net | 0.1 | ||
Net cash provided by financing activities | 22.8 | 77.3 | |
Effect of foreign exchange rate changes on cash | 1.7 | (15) | |
Net decrease in cash and cash equivalents | (63.2) | (28.5) | |
Cash, cash equivalents and restricted cash at beginning of period | [3] | 425 | 394.9 |
Cash, cash equivalents and restricted cash at end of period | [3] | $ 361.8 | $ 366.4 |
[1] | Capital expenditures of $7.4 million and $4.9 million that had not been paid as of March 31, 2021 and 2020, respectively, were excluded from the Statement of Cash Flows. | ||
[2] | Proceeds from the exercise of stock options for the three months ended March 31, 2021 excludes $6.6 million related to options that were not settled until April 1, 2021. | ||
[3] | Restricted cash of $1.1 million and $4.7 million is included in Other current assets and Other assets, respectively, as of March 31, 2021 and restricted cash of $0.8 million and $5.9 million is included in Other current assets and Other assets, respectively, as of March 31, 2020. Restricted cash of $1.0 million and $4.9 million is included in Other current assets and Other assets, respectively, as of December 31, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Capital expenditures incurred but not yet paid | $ 7.4 | $ 4.9 | |
Options not settled until April 1, 2021 | 6.6 | ||
Other Current Assets [Member] | |||
Restricted Cash | 1.1 | 0.8 | $ 1 |
Other Assets [Member] | |||
Restricted Cash | $ 4.7 | $ 5.9 | $ 4.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | 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 | 108.8 | 109.1 | (0.3) | ||||
Other comprehensive income (loss) | (50.6) | (50.6) | |||||
Stock options exercised | 18.4 | 18.4 | |||||
Stock-based compensation | 3.5 | 11.1 | (7.6) | ||||
Treasury stock purchases | (150) | (150) | |||||
Ending Balance at Mar. 31, 2020 | 2,357.9 | 1.8 | 2,843.3 | (123.2) | 1,872.1 | (2,237) | $ 0.9 |
Beginning Balance at Dec. 31, 2020 | 2,775.5 | 1.8 | 2,926.3 | (55.1) | 2,180.2 | (2,277.7) | |
Comprehensive income: | |||||||
Net income | 177.8 | 177.8 | |||||
Other comprehensive income (loss) | 4.1 | 4.1 | |||||
Stock options exercised | 17.3 | 0.1 | 17.2 | ||||
Stock-based compensation | 3.8 | 11.6 | (7.8) | ||||
Treasury stock purchases | (54.1) | (54.1) | |||||
Ending Balance at Mar. 31, 2021 | $ 2,924.4 | $ 1.9 | $ 2,955.1 | $ (51) | $ 2,358 | $ (2,339.6) |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | FORTUNE BRANDS HOME & SECURITY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation and Principles of Consolidation References to “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction and security applications. The condensed consolidated balance sheet as of March 31, 2021, the related condensed consolidated statements of comprehensive income and equity for the three months ended March 31, 2021 and 2020, and the related condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020 are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year. In 2018 our Plumbing segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo Technologies, Inc. (“Flo”), a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. In January 2021, upon the expiration of the minority shareholders’ substantive participating rights, we began to consolidate the financial results of Flo into the Company’s financial results. The financial results of Flo are included in the Company’s condensed consolidated statement of comprehensive income and statement of cash flow for the three months ended March 31, 2021 and the condensed consolidated balance sheet as of March 31, 2021. The results of operations are included in the Plumbing segment. Our Doors & Security segment was renamed “Outdoors & Security” to better align with the segment’s strategic focus on the outdoor living space and to better represent the brands within the segment, including the newly acquired Larson Manufacturing (“Larson”) In December 2020, we acquired 100% of the outstanding equity interests of 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 Company completed the acquisition for a total purchase price, excluding expected tax benefits, of approximately $717.5 million, net of cash acquired and final working capital adjustments of $2.3 million paid during the three months ended March 31, 2021. We financed the transaction with borrowings under our existing credit facilities. The financial results of Larson were included in the Company’s condensed consolidated statement of comprehensive income and statement of cash flow for the three months ended March 31, 2021 and the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. The results of operations are included in the Outdoors & Security segment. The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our annual audited consolidated financial statements and notes. The December 31, 2020 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). This Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | 2. 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 is 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. 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. This optional guidance is effective immediately, and available to be used through December 31, 2022. We are assessing the impact that reference rate reform and the related adoption of this guidance may have on our financial statements. |
Balance Sheet Information
Balance Sheet Information | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Information | 3 . Balance Sheet Information Supplemental information on our balance sheets is as follows: (In millions) March 31, 2021 December 31, 2020 Inventories: Raw materials and supplies $ 354.2 $ 346.6 Work in process 80.9 76.7 Finished products 523.3 443.9 Total inventories $ 958.4 $ 867.2 Property, plant and equipment, gross $ 2,159.2 $ 2,150.1 Less: accumulated depreciation 1,254.1 1,232.7 Property, plant and equipment, net $ 905.1 $ 917.4 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Flo Technologies In 2018 our Plumbing segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo, a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. As part of this agreement, we acquired a majority of Flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of Flo during the first quarter of 2022 for a price based on a multiple of Flo’s 2021 sales and adjusted earnings before interest and taxes. During 2020, we applied the equity method of accounting to our investment in Flo as the minority shareholders had substantive participating rights which precluded consolidation in our results 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 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 $87.8 million, Larson Manufacturing In December 2020, we acquired 100% of the outstanding equity of 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 Company completed the acquisition for a total purchase price, excluding expected tax benefits, of approximately $717.5 million, net of cash acquired and final working capital adjustments of $2.3 million paid during the three months ended March 31, 2021 The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 42.3 Inventories 51.8 Property, plant and equipment 66.1 Goodwill 304.1 Identifiable intangible assets 313.0 Operating lease assets 6.2 Other assets 4.5 Total assets 788.0 Accounts payable 6.5 Other current liabilities and accruals 31.1 Other non-current liabilities 32.9 Net assets acquired (a) $ 717.5 (a) The preceding purchase price allocation has been determined provisionally and is subject to revision as additional information about the fair value of individual assets and liabilities becomes available. We apply significant judgement in determining the estimates and assumptions used to determine the fair value of the identifiable intangible assets, 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 Company is in the process of finalizing valuations of certain tangible and intangible assets, including property, plant and equipment and identifiable intangible assets. The provisional measurement of property, plant and equipment, identifiable intangible assets, and goodwill is subject to change. Any change in the acquisition date fair value of the acquired assets and liabilities will change the amount of the purchase price allocable to goodwill. Goodwill includes expected sales and cost synergies. The goodwill is included in our Outdoors & Security segment. Larson’s identifiable intangible assets consist of a finite-lived customer relationships asset of $168.0 million, an indefinite-lived tradename of $111.0 million and a finite-lived proprietary technology asset of $34.0 million. The useful life of the customer relationship intangible asset is estimated to be 13 years. The Larson tradename has been assigned an indefinite life as we currently anticipate that this tradename will contribute cash flows to the Company indefinitely. The useful life of the proprietary technology intangible asset is estimated to be 7 years. Customer and contractual relationships and proprietary technology are amortized on a straight-line basis over their useful lives. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 5 . Goodwill and Identifiable Intangible Assets We had goodwill of $2,466.2 million (In millions) Plumbing Outdoors & Security Cabinets Total Goodwill Goodwill at December 31, 2020 (a) $ 750.1 $ 718.6 $ 926.1 $ 2,394.8 Year-to-date translation adjustments 1.8 0.3 0.7 2.8 Acquisition-related adjustments 65.4 3.2 — 68.6 Goodwill at March 31, 2021 (a) $ 817.3 $ 722.1 $ 926.8 $ 2,466.2 (a) Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. We also had net identifiable intangible assets of $1,434.3 million and $1,420.3 million as of March 31, 2021 and December 31, 2020, respectively. The $32.0 million increase in gross identifiable intangible assets was primarily due to the consolidation of Flo and foreign translation adjustments. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2021 and December 31, 2020 were as follows: (In millions) As of March 31, 2021 As of December 31, 2020 Gross Carrying Amounts Accumulated Amortization Net Book Value Gross Carrying Amounts Accumulated Amortization Net Book Value Indefinite-lived tradenames $ 712.2 $ — $ 712.2 $ 711.0 $ — $ 711.0 Amortizable intangible assets Tradenames 37.3 (14.5 ) 22.8 34.8 (14.0 ) 20.8 Customer and contractual relationships 978.2 (350.1 ) 628.1 973.2 (337.3 ) 635.9 Patents/proprietary technology 132.9 (61.7 ) 71.2 109.6 (57.0 ) 52.6 Total 1,148.4 (426.3 ) 722.1 1,117.6 (408.3 ) 709.3 Total identifiable intangibles $ 1,860.6 $ (426.3 ) $ 1,434.3 $ 1,828.6 $ (408.3 ) $ 1,420.3 Amortizable identifiable intangible assets, principally customer relationships, are subject to amortization over their estimated useful life, ranging from 2 to 30 years, based on the assessment of a number of factors that may impact useful life, which includes customer attrition rates and other relevant factors. During the first quarter of 2021, no events or circumstances occurred that required us to perform interim impairment tests of goodwill or indefinite-lived tradenames. During the second quarter of 2020, extended closures of luxury plumbing showrooms associated with the impact of the novel coronavirus (“COVID-19”) pandemic led to lower than expected sales related to an indefinite-lived tradename within the Plumbing segment, which combined with the updated financial outlook compared to previous forecasts and the continued uncertainty of the COVID-19 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. In the first quarter of 2020, we recognized an impairment charge of $9.5 million related to an indefinite-lived tradename in our Cabinets segment. This charge was primarily the result of lower expected sales of custom cabinetry products related to the impact of COVID-19. As of March 31, 2021, the carrying value of this tradename was $29.1 million. The fair values of these tradenames were 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 5. Goodwill and Identifiable Intangible Assets (Continued) the more significant assumptions inherent in estimating the fair values include forecasted revenue growth rates for the tradename, assumed royalty rate, and a market-participant discount rate that reflects the level of risk associated with the tradenames’ future revenues and profitability. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management plans. These assumptions represent Level 3 inputs of the fair value hierarchy (refer to Note 8). The significant assumptions used to estimate the fair values of the tradenames impaired during the year ended December 31, 2020 were as follows: 2020 Unobservable Input Minimum Maximum Weighted Average (a) Discount rate 14.8 % 15.8 % 15.1 % Royalty rate (b) 4.0 % 5.0 % 4.3 % Long-term revenue growth rate (c) 1.0 % 3.0 % 1.6 % (a) Weighted by relative fair value of the impaired tradenames. (b) Represents estimated percentage of sales a market-participant would pay to license the impaired tradenames. (c) Selected long-term revenue growth rate within 10-year projection period of the impaired tradenames. As of December 31, 2020, the fair value of four Cabinets' tradenames exceeded their carrying values of $180.6 million by less than 30%. A reduction in the estimated fair value of the tradenames in our Cabinets segment could trigger additional impairment charges in future periods. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: lower than forecasted revenues, more severe impacts of the COVID-19 pandemic than currently expected, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and a decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets. |
External Debt and Financing Arr
External Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
External Debt and Financing Arrangements | 6 . External Debt and Financing Arrangements Unsecured Senior Notes At March 31, 2021, the Company had aggregate outstanding notes in the amount of $1.8 billion, with varying maturities (the “Notes”). The Notes are unsecured senior obligations of the Company. The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of March 31, 2021 and December 31, 2020: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date March 31, 2021 December 31, 2020 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 496.8 $ 496.6 4.000% Senior Notes (the "2018 Notes") 600.0 September 2018 September 2023 597.3 597.1 3.250% Senior Notes (the "2019 Notes") 700.0 September 2019 September 2029 693.7 693.5 Total Senior Notes $ 1,800.0 $ 1,787.8 $ 1,787.2 Credit Facilities In April 2020, the Company entered into a 364-day supplemental, $400 million revolving credit facility (the “2020 Revolving Credit Agreement”). This supplemental facility was never utilized by the Company prior to its expiration in April 2021. In September 2019, the Company entered into a second amended and restated $1.25 billion revolving credit facility (the “2019 Revolving Credit Agreement”), and borrowings thereunder will be used for general corporate purposes. The terms and conditions of the 2019 Revolving Credit Agreement, including the total commitment amount, essentially remained the same as under the previous credit agreement, except that the maturity date was extended to September 2024 . Interest rates under the 2019 Revolving Credit Agreement are variable based on LIBOR at the time of the borrowing and the Company’s long-term credit rating and can range from LIBOR + 0.91 % to LIBOR + 1.4 %. On March 31, 2021 and December 31, 2020 , our outstanding borrowings under this facility were $ 895.0 million and $ 785.0 million, respectively . This facility is included in Long-term debt in the condensed consolidated balance sheets. As of March 31, 2021 , we were in compliance with all covenants under this facility. We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $17.5 million in aggregate, of which there were no outstanding balances as of March 31, 2021 and December 31, 2020. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 7 . Financial Instruments We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. As a result, from time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. 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 March 31, 2021 was $432.7 million. Based on foreign exchange rates as of March 31, 2021, we estimate that $0.7 million of net derivative gains included in accumulated other comprehensive income as of March 31, 2021 will be reclassified to earnings within the next twelve months. The fair values of derivative instruments on the consolidated balance sheets as of March 31, 2021 and December 31, 2020 were as follows: Fair Value (In millions) Location March 31, 2021 December 31, 2020 Assets: Foreign exchange contracts Other current assets $ 3.2 $ 3.7 Commodity contracts Other current assets 1.3 1.9 Total assets $ 4.5 $ 5.6 Liabilities: Foreign exchange contracts Other current liabilities $ 3.6 $ 6.5 Total liabilities $ 3.6 $ 6.5 7 . Financial Instruments (Continued) The effects of derivative financial instruments on the statements of comprehensive income for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended March 31, 2021 Cost of products sold Interest expense Other expense, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,126.9 $ 21.4 $ 3.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — (0.8 ) Derivative designated as hedging instruments — — — Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income (0.8 ) — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.1 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.2 — (In millions) Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended March 31, 2020 Cost of products sold Interest expense Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 909.5 $ 22.1 $ 6.1 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — 10.0 Derivative designated as hedging instruments — — (10.5 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.6 — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income (0.2 ) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.2 — The cash flow hedges recognized in other comprehensive income were a net loss of $2.0 million $6.5 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8 . Fair Value Measurements FASB Accounting Standards Codification (“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. The carrying value and fair value of debt as of March 31, 2021 and December 31, 2020 were as follows: (In millions) March 31, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Notes, net of underwriting commissions, price discounts and debt issuance costs $ 1,787.8 $ 1,928.0 $ 1,787.2 $ 1,994.9 Revolving credit facility 895.0 895.0 785.0 785.0 Total debt $ 2,682.8 $ 2,823.0 $ 2,572.2 $ 2,779.9 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 March 31, 2021 and December 31, 2020 were as follows: (In millions) Fair Value March 31, 2021 December 31, 2020 Assets Derivative financial instruments (Level 2) $ 4.5 $ 5.6 Deferred compensation program assets (Level 2) 19.0 16.3 Total assets $ 23.5 $ 21.9 Liabilities Derivative financial instruments (Level 2) $ 3.6 $ 6.5 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | 9 . Accumulated Other Comprehensive (Loss) Income Total accumulated other comprehensive (loss) income consists of net income and other changes in business equity from transactions and other events from sources other than shareholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The after-tax components of and changes in accumulated other comprehensive (loss) income for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Foreign Currency Adjustments Derivative Hedging Gain (Loss) Defined Benefit Plan Adjustments Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ (11.5 ) $ 5.5 $ (66.6 ) $ (72.6 ) Amounts classified into accumulated other comprehensive (loss) income (41.7 ) (7.7 ) (0.8 ) (50.2 ) Amounts reclassified from accumulated other comprehensive (loss) income — (0.4 ) — (0.4 ) Net current-period other comprehensive (loss) income (41.7 ) (8.1 ) (0.8 ) (50.6 ) Balance at March 31, 2020 $ (53.2 ) $ (2.6 ) $ (67.4 ) $ (123.2 ) Balance at December 31, 2020 $ 7.2 $ 4.2 $ (66.5 ) $ (55.1 ) Amounts classified into accumulated other comprehensive (loss) income 5.8 (1.8 ) (0.2 ) 3.8 Amounts reclassified from accumulated other comprehensive (loss) income — 0.3 — 0.3 Net current-period other comprehensive (loss) income 5.8 (1.5 ) (0.2 ) 4.1 Balance at March 31, 2021 $ 13.0 $ 2.7 $ (66.7 ) $ (51.0 ) The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Three months ended March 31, Affected Line Item in the Statement of Comprehensive Income 2021 2020 Gains (losses) on cash flow hedges Foreign exchange contracts $ (0.8 ) $ 0.6 Cost of products sold Commodity contracts 0.1 (0.2 ) Cost of products sold Interest rate contracts 0.2 0.2 Interest expense (0.5 ) 0.6 Total before tax 0.2 (0.2 ) Tax expense Total reclassifications for the period $ (0.3 ) $ 0.4 Net of tax |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 10 . Revenue The following table disaggregates our consolidated revenue by major sales distribution channels for the three months ended March 31, 2021 and 2020: (In millions) Three Months Ended March 31, 2021 2020 Wholesalers (a) $ 798.0 $ 654.2 Home Center retailers (b) 548.9 419.2 Other retailers (c) 99.1 82.6 Builder direct 61.4 54.7 U.S. net sales 1,507.4 1,210.7 International (d) 263.6 192.0 Net sales $ 1,771.0 $ 1,402.7 ( a ) Represents sales to customers ( b ) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowes Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. ( c ) Represents sales principally to our mass merchant and standalone independent e-commerce customers. ( d ) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Plans | 1 1 . Defined Benefit Plans The components of net periodic benefit income for pension for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Three Months Ended March 31, Pension Benefits 2021 2020 Service cost $ 0.1 $ 0.1 Interest cost 6.0 7.1 Expected return on plan assets (8.7 ) (8.2 ) Net periodic benefit income $ (2.6 ) $ (1.0 ) Service cost relates to benefit accruals in an hourly Union defined benefit plan in our Outdoors & Security segment. All other defined benefit pension plans were frozen as of December 31, 2016. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . Income Taxes The effective income tax rates for the three months ended March 31, 2021 and 2020 were 20.5% and 21.5%, respectively. The effective income tax rate in 2021 was favorably impacted by a benefit related to decreases in uncertain tax positions and a benefit related to share-based compensation. |
Product Warranties
Product Warranties | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees And Product Warranties [Abstract] | |
Product Warranties | 1 3 . 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 three months ended March 31, 2021 and 2020, respectively. (In millions) Three Months Ended March 31, 2021 2020 Reserve balance at January 1, $ 24.5 $ 24.7 Provision for warranties issued 8.1 6.5 Settlements made (in cash or in kind) (8.1 ) (7.0 ) Acquisition 0.6 — Foreign translation adjustments — (0.1 ) Reserve balance at March 31, $ 25.1 $ 24.1 |
Information on Business Segment
Information on Business Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 1 4 . Information on Business Segments Net sales and operating income for the three months ended March 31, 2021 and 2020 by segment were as follows: Three Months Ended March 31, (In millions) 2021 2020 % Change vs. Prior Year Net Sales Plumbing $ 621.6 $ 469.0 32.5 % Outdoors & Security 461.5 313.7 47.1 Cabinets 687.9 620.0 11.0 Net sales $ 1,771.0 $ 1,402.7 26.3 % Operating Income (Loss) Plumbing $ 147.9 $ 104.5 41.5 % Outdoors & Security 52.8 31.5 67.6 Cabinets 72.6 43.7 66.1 Less: Corporate expenses (24.9 ) (24.7 ) (0.8 ) Operating income $ 248.4 $ 155.0 60.3 % |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges | 1 5 . Restructuring and Other Charges Pre-tax restructuring and other charges for the three months ended March 31, 2021 and 2020 are shown below. (In millions) Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Restructuring Charges Other Charges (a) Total Charges Restructuring Charges Other Charges (a) Total Charges Plumbing $ — $ 1.5 $ 1.5 $ 0.3 $ (0.4 ) $ (0.1 ) Outdoors & Security 6.1 — 6.1 0.3 0.8 1.1 Cabinets 1.5 0.4 1.9 2.4 0.1 2.5 Corporate — — — 1.5 0.3 1.8 Total $ 7.6 $ 1.9 $ 9.5 $ 4.5 $ 0.8 $ 5.3 (a) “Other Charges” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. Restructuring and other charges in the first quarter of 2021 largely related to severance costs associated with the relocation of manufacturing facilities other charges in the first quarter of 2020 Reconciliation of Restructuring Liability (In millions) Balance at 12/31/20 2021 Provision Cash Expenditures (a) Non-Cash Write-offs Balance at 3/31/21 Workforce reduction costs $ 6.9 $ 6.5 $ (4.6 ) $ — $ 8.8 Other 0.7 1.1 (0.4 ) — 1.4 $ 7.6 $ 7.6 $ (5.0 ) $ — $ 10.2 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 12/31/19 2020 Provision Cash Expenditures (a) Non-Cash Write-offs Balance at 3/31/20 Workforce reduction costs $ 6.7 $ 4.2 $ (3.0 ) $ — $ 7.9 Other 0.1 0.3 (0.2 ) 0.4 0.6 $ 6.8 $ 4.5 $ (3.2 ) $ 0.4 $ 8.5 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 6 . Earnings Per Share The computations of earnings per common share for the three months ended March 31, 2021 and 2020 were as follows: (In millions, except per share data) Three Months Ended March 31, 2021 2020 Net income $ 177.8 $ 108.8 Less: Noncontrolling interest — (0.3 ) Net income attributable to Fortune Brands 177.8 109.1 Basic earnings per common share $ 1.28 $ 0.78 Diluted earnings per common share $ 1.26 $ 0.77 Basic average shares outstanding 138.6 139.3 Stock-based awards 2.0 1.5 Diluted average shares outstanding 140.6 140.8 Antidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share 0.2 0.9 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Litigation We are defendants in lawsuits associated with the normal conduct of our businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon our results of operations, cash flows or financial condition, and where appropriate, these actions are being vigorously contested. Accordingly, the Company believes the likelihood of material loss is remote. Environmental Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Fortune Brands during the three months ended March 31, 2021 and 2020. 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. We believe compliance with current environmental protection laws (before taking into account estimated recoveries from third parties) will not have a material adverse effect upon our results of operations, cash flows or financial condition. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
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 is 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. 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. This optional guidance is effective immediately, and available to be used through December 31, 2022. We are assessing the impact that reference rate reform and the related adoption of this guidance may have on our financial statements. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information on Balance Sheets | Supplemental information on our balance sheets is as follows: (In millions) March 31, 2021 December 31, 2020 Inventories: Raw materials and supplies $ 354.2 $ 346.6 Work in process 80.9 76.7 Finished products 523.3 443.9 Total inventories $ 958.4 $ 867.2 Property, plant and equipment, gross $ 2,159.2 $ 2,150.1 Less: accumulated depreciation 1,254.1 1,232.7 Property, plant and equipment, net $ 905.1 $ 917.4 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 42.3 Inventories 51.8 Property, plant and equipment 66.1 Goodwill 304.1 Identifiable intangible assets 313.0 Operating lease assets 6.2 Other assets 4.5 Total assets 788.0 Accounts payable 6.5 Other current liabilities and accruals 31.1 Other non-current liabilities 32.9 Net assets acquired (a) $ 717.5 (a) |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) Plumbing Outdoors & Security Cabinets Total Goodwill Goodwill at December 31, 2020 (a) $ 750.1 $ 718.6 $ 926.1 $ 2,394.8 Year-to-date translation adjustments 1.8 0.3 0.7 2.8 Acquisition-related adjustments 65.4 3.2 — 68.6 Goodwill at March 31, 2021 (a) $ 817.3 $ 722.1 $ 926.8 $ 2,466.2 (a) Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of March 31, 2021 and December 31, 2020 were as follows: (In millions) As of March 31, 2021 As of December 31, 2020 Gross Carrying Amounts Accumulated Amortization Net Book Value Gross Carrying Amounts Accumulated Amortization Net Book Value Indefinite-lived tradenames $ 712.2 $ — $ 712.2 $ 711.0 $ — $ 711.0 Amortizable intangible assets Tradenames 37.3 (14.5 ) 22.8 34.8 (14.0 ) 20.8 Customer and contractual relationships 978.2 (350.1 ) 628.1 973.2 (337.3 ) 635.9 Patents/proprietary technology 132.9 (61.7 ) 71.2 109.6 (57.0 ) 52.6 Total 1,148.4 (426.3 ) 722.1 1,117.6 (408.3 ) 709.3 Total identifiable intangibles $ 1,860.6 $ (426.3 ) $ 1,434.3 $ 1,828.6 $ (408.3 ) $ 1,420.3 |
Significant Assumptions Used to Estimate the Fair Values of Tradenames Impaired | The significant assumptions used to estimate the fair values of the tradenames impaired during the year ended December 31, 2020 were as follows: 2020 Unobservable Input Minimum Maximum Weighted Average (a) Discount rate 14.8 % 15.8 % 15.1 % Royalty rate (b) 4.0 % 5.0 % 4.3 % Long-term revenue growth rate (c) 1.0 % 3.0 % 1.6 % (a) Weighted by relative fair value of the impaired tradenames. (b) Represents estimated percentage of sales a market-participant would pay to license the impaired tradenames. (c) Selected long-term revenue growth rate within 10-year projection period of the impaired tradenames. |
External Debt and Financing A_2
External Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Notes | The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of March 31, 2021 and December 31, 2020: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date March 31, 2021 December 31, 2020 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 496.8 $ 496.6 4.000% Senior Notes (the "2018 Notes") 600.0 September 2018 September 2023 597.3 597.1 3.250% Senior Notes (the "2019 Notes") 700.0 September 2019 September 2029 693.7 693.5 Total Senior Notes $ 1,800.0 $ 1,787.8 $ 1,787.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The fair values of derivative instruments on the consolidated balance sheets as of March 31, 2021 and December 31, 2020 were as follows: Fair Value (In millions) Location March 31, 2021 December 31, 2020 Assets: Foreign exchange contracts Other current assets $ 3.2 $ 3.7 Commodity contracts Other current assets 1.3 1.9 Total assets $ 4.5 $ 5.6 Liabilities: Foreign exchange contracts Other current liabilities $ 3.6 $ 6.5 Total liabilities $ 3.6 $ 6.5 |
Effects of Derivative Financial Instruments on Consolidated Statements of Income | The effects of derivative financial instruments on the statements of comprehensive income for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended March 31, 2021 Cost of products sold Interest expense Other expense, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,126.9 $ 21.4 $ 3.3 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — (0.8 ) Derivative designated as hedging instruments — — — Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income (0.8 ) — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.1 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.2 — (In millions) Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended March 31, 2020 Cost of products sold Interest expense Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 909.5 $ 22.1 $ 6.1 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items — — 10.0 Derivative designated as hedging instruments — — (10.5 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.6 — — Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income (0.2 ) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income — 0.2 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Debt | The carrying value and fair value of debt as of March 31, 2021 and December 31, 2020 were as follows: (In millions) March 31, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Notes, net of underwriting commissions, price discounts and debt issuance costs $ 1,787.8 $ 1,928.0 $ 1,787.2 $ 1,994.9 Revolving credit facility 895.0 895.0 785.0 785.0 Total debt $ 2,682.8 $ 2,823.0 $ 2,572.2 $ 2,779.9 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 were as follows: (In millions) Fair Value March 31, 2021 December 31, 2020 Assets Derivative financial instruments (Level 2) $ 4.5 $ 5.6 Deferred compensation program assets (Level 2) 19.0 16.3 Total assets $ 23.5 $ 21.9 Liabilities Derivative financial instruments (Level 2) $ 3.6 $ 6.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income | The after-tax components of and changes in accumulated other comprehensive (loss) income for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Foreign Currency Adjustments Derivative Hedging Gain (Loss) Defined Benefit Plan Adjustments Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ (11.5 ) $ 5.5 $ (66.6 ) $ (72.6 ) Amounts classified into accumulated other comprehensive (loss) income (41.7 ) (7.7 ) (0.8 ) (50.2 ) Amounts reclassified from accumulated other comprehensive (loss) income — (0.4 ) — (0.4 ) Net current-period other comprehensive (loss) income (41.7 ) (8.1 ) (0.8 ) (50.6 ) Balance at March 31, 2020 $ (53.2 ) $ (2.6 ) $ (67.4 ) $ (123.2 ) Balance at December 31, 2020 $ 7.2 $ 4.2 $ (66.5 ) $ (55.1 ) Amounts classified into accumulated other comprehensive (loss) income 5.8 (1.8 ) (0.2 ) 3.8 Amounts reclassified from accumulated other comprehensive (loss) income — 0.3 — 0.3 Net current-period other comprehensive (loss) income 5.8 (1.5 ) (0.2 ) 4.1 Balance at March 31, 2021 $ 13.0 $ 2.7 $ (66.7 ) $ (51.0 ) |
Reclassifications Out of Accumulated Other Comprehensive Loss | The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Three months ended March 31, Affected Line Item in the Statement of Comprehensive Income 2021 2020 Gains (losses) on cash flow hedges Foreign exchange contracts $ (0.8 ) $ 0.6 Cost of products sold Commodity contracts 0.1 (0.2 ) Cost of products sold Interest rate contracts 0.2 0.2 Interest expense (0.5 ) 0.6 Total before tax 0.2 (0.2 ) Tax expense Total reclassifications for the period $ (0.3 ) $ 0.4 Net of tax |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels for the three months ended March 31, 2021 and 2020: (In millions) Three Months Ended March 31, 2021 2020 Wholesalers (a) $ 798.0 $ 654.2 Home Center retailers (b) 548.9 419.2 Other retailers (c) 99.1 82.6 Builder direct 61.4 54.7 U.S. net sales 1,507.4 1,210.7 International (d) 263.6 192.0 Net sales $ 1,771.0 $ 1,402.7 ( a ) Represents sales to customers ( b ) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowes Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. ( c ) Represents sales principally to our mass merchant and standalone independent e-commerce customers. ( d ) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Income for Pension | The components of net periodic benefit income for pension for the three months ended March 31, 2021 and 2020 were as follows: (In millions) Three Months Ended March 31, Pension Benefits 2021 2020 Service cost $ 0.1 $ 0.1 Interest cost 6.0 7.1 Expected return on plan assets (8.7 ) (8.2 ) Net periodic benefit income $ (2.6 ) $ (1.0 ) |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees And Product Warranties [Abstract] | |
Activity Related to Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the three months ended March 31, 2021 and 2020, respectively. (In millions) Three Months Ended March 31, 2021 2020 Reserve balance at January 1, $ 24.5 $ 24.7 Provision for warranties issued 8.1 6.5 Settlements made (in cash or in kind) (8.1 ) (7.0 ) Acquisition 0.6 — Foreign translation adjustments — (0.1 ) Reserve balance at March 31, $ 25.1 $ 24.1 |
Information on Business Segme_2
Information on Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Income by Segment | Net sales and operating income for the three months ended March 31, 2021 and 2020 by segment were as follows: Three Months Ended March 31, (In millions) 2021 2020 % Change vs. Prior Year Net Sales Plumbing $ 621.6 $ 469.0 32.5 % Outdoors & Security 461.5 313.7 47.1 Cabinets 687.9 620.0 11.0 Net sales $ 1,771.0 $ 1,402.7 26.3 % Operating Income (Loss) Plumbing $ 147.9 $ 104.5 41.5 % Outdoors & Security 52.8 31.5 67.6 Cabinets 72.6 43.7 66.1 Less: Corporate expenses (24.9 ) (24.7 ) (0.8 ) Operating income $ 248.4 $ 155.0 60.3 % |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Pre-tax Restructuring and Other Charges | Pre-tax restructuring and other charges for the three months ended March 31, 2021 and 2020 are shown below. (In millions) Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Restructuring Charges Other Charges (a) Total Charges Restructuring Charges Other Charges (a) Total Charges Plumbing $ — $ 1.5 $ 1.5 $ 0.3 $ (0.4 ) $ (0.1 ) Outdoors & Security 6.1 — 6.1 0.3 0.8 1.1 Cabinets 1.5 0.4 1.9 2.4 0.1 2.5 Corporate — — — 1.5 0.3 1.8 Total $ 7.6 $ 1.9 $ 9.5 $ 4.5 $ 0.8 $ 5.3 (a) “Other Charges” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Reconciliation of Restructuring Liability | Reconciliation of Restructuring Liability (In millions) Balance at 12/31/20 2021 Provision Cash Expenditures (a) Non-Cash Write-offs Balance at 3/31/21 Workforce reduction costs $ 6.9 $ 6.5 $ (4.6 ) $ — $ 8.8 Other 0.7 1.1 (0.4 ) — 1.4 $ 7.6 $ 7.6 $ (5.0 ) $ — $ 10.2 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 12/31/19 2020 Provision Cash Expenditures (a) Non-Cash Write-offs Balance at 3/31/20 Workforce reduction costs $ 6.7 $ 4.2 $ (3.0 ) $ — $ 7.9 Other 0.1 0.3 (0.2 ) 0.4 0.6 $ 6.8 $ 4.5 $ (3.2 ) $ 0.4 $ 8.5 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computations of Earnings (Loss) per Common Share | The computations of earnings per common share for the three months ended March 31, 2021 and 2020 were as follows: (In millions, except per share data) Three Months Ended March 31, 2021 2020 Net income $ 177.8 $ 108.8 Less: Noncontrolling interest — (0.3 ) Net income attributable to Fortune Brands 177.8 109.1 Basic earnings per common share $ 1.28 $ 0.78 Diluted earnings per common share $ 1.26 $ 0.77 Basic average shares outstanding 138.6 139.3 Stock-based awards 2.0 1.5 Diluted average shares outstanding 140.6 140.8 Antidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share 0.2 0.9 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Dec. 31, 2020 | Mar. 31, 2021 | |
Basis Of Presentation And Principles Of Consolidation [Line Items] | ||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ (5.2) | |
LARSON [Member] | ||
Basis Of Presentation And Principles Of Consolidation [Line Items] | ||
Business acquisition, percentage of outstanding equity interests acquired | 100.00% | |
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 717.5 | |
Working capital adjustments | $ 2.3 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards - Additional Information (Detail) | 1 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | |
Accounting Standards Update 2019-12 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Description | 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 is 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, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | ||
Change in accounting principle, accounting standards update, adopted | true | ||
Accounting Standards Update 2020-04 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Description | 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. This optional guidance is effective immediately, and available to be used through December 31, 2022. We are assessing the impact that reference rate reform and the related adoption of this guidance may have on our financial statements. |
Balance Sheet Information - Sup
Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventories: | ||
Raw materials and supplies | $ 354.2 | $ 346.6 |
Work in process | 80.9 | 76.7 |
Finished products | 523.3 | 443.9 |
Total inventories | 958.4 | 867.2 |
Property, plant and equipment, gross | 2,159.2 | 2,150.1 |
Less: accumulated depreciation | 1,254.1 | 1,232.7 |
Property, plant and equipment, net | $ 905.1 | $ 917.4 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2021 | ||
Business Acquisition [Line Items] | |||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ (5.2) | ||||
Flo Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Substantive participating rights expiration date | Jan. 1, 2021 | ||||
Fair value allocated to assets acquired and liabilities assumed | $ 87.8 | ||||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 9.7 | ||||
Flo Technologies, Inc. [Member] | Other Income/Expenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Non cash gain (loss) on remeasurement of existing investment | 4.5 | $ 6.6 | |||
LARSON [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value allocated to assets acquired and liabilities assumed | [1] | $ 717.5 | |||
Business combination purchase price, excluding expected tax benefits, net of cash acquired | $ 717.5 | ||||
Business acquisition, percentage of outstanding equity acquired | 100.00% | ||||
Working capital adjustments | $ 2.3 | ||||
Business acquisition, transaction costs | $ 4.5 | ||||
Business acquisition, goodwill, expected tax deductible amount | 290 | ||||
Finite-lived intangible assets, amortization method | Customer and contractual relationships and proprietary technology are amortized on a straight-line basis over their useful lives. | ||||
LARSON [Member] | Tradename [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived intangible asset | 111 | ||||
LARSON [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 168 | ||||
Useful life of intangible asset | 13 years | ||||
LARSON [Member] | Proprietary Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 34 | ||||
Useful life of intangible asset | 7 years | ||||
[1] | Net assets exclude $0.4 million of cash transferred to the Company as the result of the Larson acquisition. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | [1] | $ 2,466.2 | $ 2,394.8 |
LARSON [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 42.3 | ||
Inventories | 51.8 | ||
Property, plant and equipment | 66.1 | ||
Goodwill | 304.1 | ||
Identifiable intangible assets | 313 | ||
Operating lease assets | 6.2 | ||
Other assets | 4.5 | ||
Total assets | 788 | ||
Accounts payable | 6.5 | ||
Other current liabilities and accruals | 31.1 | ||
Other non-current liabilities | 32.9 | ||
Net assets acquired | [2] | $ 717.5 | |
[1] | Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. | ||
[2] | Net assets exclude $0.4 million of cash transferred to the Company as the result of the Larson acquisition. |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Summary of Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Millions | 1 Months Ended |
Dec. 31, 2020USD ($) | |
LARSON [Member] | |
Business Acquisition [Line Items] | |
Cash transferred from acquisition | $ 0.4 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 2,466.2 | $ 2,394.8 | ||
Net identifiable intangible assets | 1,434.3 | 1,420.3 | |||
Increase in gross identifiable intangible assets | 32 | ||||
Gross Carrying Amounts, Indefinite-lived tradenames | 712.2 | 711 | |||
Plumbing [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 817.3 | 750.1 | ||
Plumbing [Member] | COVID-19 [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Amortizable identifiable intangible assets, estimated useful life | 30 years | ||||
Impairment of intangible assets, trade names | $ 13 | ||||
Cabinets [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 926.8 | 926.1 | ||
Cabinets [Member] | Tradenames [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 29.1 | ||||
Cabinets [Member] | Four Tradenames [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 180.6 | ||||
Cabinets [Member] | COVID-19 [Member] | Tradenames [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Impairment of intangible assets, trade names | $ 9.5 | ||||
Maximum [Member] | Cabinets [Member] | Four Tradenames [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Estimated fair value in excess of carrying amount | 30.00% | ||||
Tradenames and Customer Relationship [Member] | Minimum [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Amortizable identifiable intangible assets, estimated useful life | 2 years | ||||
Tradenames and Customer Relationship [Member] | Maximum [Member] | |||||
Goodwill and Identifiable Intangible Assets [Line Items] | |||||
Amortizable identifiable intangible assets, estimated useful life | 30 years | ||||
[1] | Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | ||
Goodwill [Line Items] | ||
Beginning Balance | $ 2,394.8 | [1] |
Translation adjustments | 2.8 | |
Acquisition-related adjustments | 68.6 | |
Ending Balance | 2,466.2 | [1] |
Plumbing [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 750.1 | [1] |
Translation adjustments | 1.8 | |
Acquisition-related adjustments | 65.4 | |
Ending Balance | 817.3 | [1] |
Outdoors & Security [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 718.6 | [1] |
Translation adjustments | 0.3 | |
Acquisition-related adjustments | 3.2 | |
Ending Balance | 722.1 | [1] |
Cabinets [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 926.1 | [1] |
Translation adjustments | 0.7 | |
Ending Balance | $ 926.8 | [1] |
[1] | Net of accumulated impairment losses of $399.5 million in the Outdoors & Security segment. |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions | Mar. 31, 2021USD ($) |
Doors & 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 | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 712.2 | $ 711 |
Net Book Value, Indefinite-lived tradenames | 712.2 | 711 |
Gross Carrying Amounts, Finite Lived | 1,148.4 | 1,117.6 |
Accumulated Amortization, Finite Lived | (426.3) | (408.3) |
Net Book Value, Finite Lived | 722.1 | 709.3 |
Gross Carrying Amounts, Total identifiable intangibles | 1,860.6 | 1,828.6 |
Accumulated Amortization, Total identifiable intangibles | (426.3) | (408.3) |
Net Book Value, Total identifiable intangibles | 1,434.3 | 1,420.3 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 37.3 | 34.8 |
Accumulated Amortization, Finite Lived | (14.5) | (14) |
Net Book Value, Finite Lived | 22.8 | 20.8 |
Customer and contractual relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 978.2 | 973.2 |
Accumulated Amortization, Finite Lived | (350.1) | (337.3) |
Net Book Value, Finite Lived | 628.1 | 635.9 |
Patents/proprietary technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 132.9 | 109.6 |
Accumulated Amortization, Finite Lived | (61.7) | (57) |
Net Book Value, Finite Lived | $ 71.2 | $ 52.6 |
Goodwill and Identifiable Int_7
Goodwill and Identifiable Intangible Assets - Significant Assumptions Used to Estimate the Fair Values of Tradenames Impaired (Detail) | Dec. 31, 2020 | |
Long-term Revenue Growth Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Alternative Investment, Type [Extensible List] | Tradename [Member] | |
Minimum [Member] | 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 | 0.148 | |
Alternative Investment, Type [Extensible List] | Tradename [Member] | |
Minimum [Member] | 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 | 0.040 | [1] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [1] |
Minimum [Member] | 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 | 0.010 | [2] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [2] |
Maximum [Member] | 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 | |
Alternative Investment, Type [Extensible List] | Tradename [Member] | |
Maximum [Member] | 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] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [1] |
Maximum [Member] | 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] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [2] |
Weighted Average [Member] | 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 | 0.151 | [3] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [3] |
Weighted Average [Member] | 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 | 0.043 | [1],[3] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [1],[3] |
Weighted Average [Member] | 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 | 0.016 | [2],[3] |
Alternative Investment, Type [Extensible List] | Tradename [Member] | [2],[3] |
[1] | Represents estimated percentage of sales a market-participant would pay to license the impaired tradenames. | |
[2] | Selected long-term revenue growth rate within 10-year projection period of the impaired tradenames. | |
[3] | Weighted by relative fair value of the impaired tradenames. |
Goodwill and Identifiable Int_8
Goodwill and Identifiable Intangible Assets - Significant Assumptions Used to Estimate the Fair Values of Tradenames Impaired (Parenthetical) (Detail) - Long-term Revenue Growth Rate [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Long-term revenue growth rate projection period | 10 years |
Alternative Investment, Type [Extensible List] | Tradename [Member] |
External Debt and Financing A_3
External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |||
Apr. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Aggregate outstanding notes | $ 1,800 | |||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 17.5 | $ 17.5 | ||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding | 0 | 0 | ||
2020 Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | |||
Term loan maturity period | 2021-04 | |||
2019 Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250 | |||
Term loan maturity period | 2024-09 | |||
Debt Instrument, Description of Variable Rate Basis | Interest rates under the 2019 Revolving Credit Agreement are variable based on LIBOR at the time of the borrowing and the Company’s long-term credit rating and can range from LIBOR + 0.91% to LIBOR + 1.4%. | |||
Term loan, outstanding borrowings | $ 895 | $ 785 | ||
2019 Revolving Credit Agreement [Member] | LIBOR [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate over LIBOR | 0.91% | |||
2019 Revolving Credit Agreement [Member] | LIBOR [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate over LIBOR | 1.40% |
External Debt and Financing A_4
External Debt and Financing Arrangements - Summary of Outstanding Notes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 1,800 | |
Net Carrying Value | 1,787.8 | $ 1,787.2 |
4.000% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 500 | |
Issuance Date | 2015-06 | |
Maturity Date | 2025-06 | |
Net Carrying Value | $ 496.8 | 496.6 |
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 | $ 597.3 | 597.1 |
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 | $ 693.7 | $ 693.5 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount of foreign currency derivative hedges | $ 432,700,000 | |
Cash flow hedge [Member] | ||
Derivative [Line Items] | ||
Derivative instrument loss | 2,000,000 | $ 6,500,000 |
Cash flow hedge [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Estimated amount of net derivative gains in accumulated other comprehensive income reclassified to earnings within 12 months | $ 700,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 4.5 | $ 5.6 |
Derivative liabilities, fair value | 3.6 | 6.5 |
Foreign exchange contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 3.2 | 3.7 |
Foreign exchange contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 3.6 | 6.5 |
Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 1.3 | $ 1.9 |
Financial Instruments - Classif
Financial Instruments - Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cost of products sold [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 1,126.9 | $ 909.5 |
Cost of products sold [Member] | Foreign exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | (0.8) | 0.6 |
Cost of products sold [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | 0.1 | (0.2) |
Interest expense [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 21.4 | 22.1 |
Interest expense [Member] | Interest rate contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | 0.2 | 0.2 |
Other income/expense, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 3.3 | 6.1 |
Other income/expense, net [Member] | Foreign exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (0.8) | 10 |
Other income/expense, net [Member] | Foreign exchange contracts [Member] | Designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (10.5) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Mar. 31, 2021USD ($) |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 2,682.8 | $ 2,572.2 |
Carrying Value [Member] | Revolving Credit Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 895 | 785 |
Carrying Value [Member] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 1,787.8 | 1,787.2 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 2,823 | 2,779.9 |
Fair Value [Member] | Revolving Credit Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | 895 | 785 |
Fair Value [Member] | Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 1,928 | $ 1,994.9 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | $ 4.5 | $ 5.6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23.5 | 21.9 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | 4.5 | 5.6 |
Deferred compensation program assets (Level 2) | 19 | 16.3 |
Derivative financial instruments (Level 2) | $ 3.6 | $ 6.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 2,775.5 | $ 2,427.8 |
Amounts classified into accumulated other comprehensive (loss) income | 3.8 | (50.2) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.3 | (0.4) |
Other comprehensive (loss) income, net of tax | 4.1 | (50.6) |
Ending Balance | 2,924.4 | 2,357.9 |
Foreign Currency Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 7.2 | (11.5) |
Amounts classified into accumulated other comprehensive (loss) income | 5.8 | (41.7) |
Other comprehensive (loss) income, net of tax | 5.8 | (41.7) |
Ending Balance | 13 | (53.2) |
Derivative Hedging Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 4.2 | 5.5 |
Amounts classified into accumulated other comprehensive (loss) income | (1.8) | (7.7) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.3 | (0.4) |
Other comprehensive (loss) income, net of tax | (1.5) | (8.1) |
Ending Balance | 2.7 | (2.6) |
Defined Benefit Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (66.5) | (66.6) |
Amounts classified into accumulated other comprehensive (loss) income | (0.2) | (0.8) |
Other comprehensive (loss) income, net of tax | (0.2) | (0.8) |
Ending Balance | (66.7) | (67.4) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (55.1) | (72.6) |
Ending Balance | $ (51) | $ (123.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of products sold | $ 1,126.9 | $ 909.5 |
Tax (expense) benefit | (45.9) | (29.9) |
Income after tax | 177.8 | 109.1 |
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 (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (0.5) | 0.6 |
Tax (expense) benefit | 0.2 | (0.2) |
Income after tax | (0.3) | 0.4 |
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 | (0.8) | 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 | 0.1 | (0.2) |
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 | $ 0.2 | $ 0.2 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,771 | $ 1,402.7 | |
Wholesalers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 798 | 654.2 |
Home Center retailers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 548.9 | 419.2 |
Other retailers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [3] | 99.1 | 82.6 |
Builder direct [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 61.4 | 54.7 | |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,507.4 | 1,210.7 | |
International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [4] | $ 263.6 | $ 192 |
[1] | Represents sales to customers | ||
[2] | Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowes Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. | ||
[3] | Represents sales principally to our mass merchant and standalone independent e-commerce customers. | ||
[4] | Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans - Compone
Defined Benefit Plans - Components of Net Periodic Benefit Income for Pension (Detail) - Net Periodic Benefit Income [Member] - Pension Benefits [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.1 | $ 0.1 |
Interest cost | 6 | 7.1 |
Expected return on plan assets | (8.7) | (8.2) |
Net periodic benefit income | $ (2.6) | $ (1) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 20.50% | 21.50% |
Product Warranties - Activity R
Product Warranties - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | ||
Reserve balance at the beginning of the year | $ 24.5 | $ 24.7 |
Provision for warranties issued | 8.1 | 6.5 |
Settlements made (in cash or in kind) | (8.1) | (7) |
Acquisition | 0.6 | |
Foreign translation adjustments | (0.1) | |
Reserve balance at end of year | $ 25.1 | $ 24.1 |
Information on Business Segme_3
Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | $ 1,771 | $ 1,402.7 |
Operating income | $ 248.4 | 155 |
Net Sales, Percentage Change vs. Prior Year | 26.30% | |
Operating Income, Percentage Change vs. Prior Year | 60.30% | |
Corporate [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | $ (24.9) | (24.7) |
Operating Income, Percentage Change vs. Prior Year | (0.80%) | |
Plumbing [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | $ 621.6 | 469 |
Operating income | $ 147.9 | 104.5 |
Net Sales, Percentage Change vs. Prior Year | 32.50% | |
Operating Income, Percentage Change vs. Prior Year | 41.50% | |
Outdoors & Security [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | $ 461.5 | 313.7 |
Operating income | $ 52.8 | 31.5 |
Net Sales, Percentage Change vs. Prior Year | 47.10% | |
Operating Income, Percentage Change vs. Prior Year | 67.60% | |
Cabinets [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | $ 687.9 | 620 |
Operating income | $ 72.6 | $ 43.7 |
Net Sales, Percentage Change vs. Prior Year | 11.00% | |
Operating Income, Percentage Change vs. Prior Year | 66.10% |
Restructuring and Other Charg_3
Restructuring and Other Charges - Pre-tax Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 7.6 | $ 4.5 | |
Other Charges | [1] | 1.9 | 0.8 |
Total Charges | 9.5 | 5.3 | |
Operating Segments [Member] | Cabinets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.5 | 2.4 | |
Other Charges | [1] | 0.4 | 0.1 |
Total Charges | 1.9 | 2.5 | |
Operating Segments [Member] | Plumbing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.3 | ||
Other Charges | [1] | 1.5 | (0.4) |
Total Charges | 1.5 | (0.1) | |
Operating Segments [Member] | Outdoors & Security [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6.1 | 0.3 | |
Other Charges | [1] | 0.8 | |
Total Charges | $ 6.1 | 1.1 | |
Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.5 | ||
Other Charges | [1] | 0.3 | |
Total Charges | $ 1.8 | ||
[1] | “Other Charges” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Restructuring and Other Charg_4
Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 7.6 | $ 6.8 | |
Provision | 7.6 | 4.5 | |
Cash Expenditures | [1] | (5) | (3.2) |
Non-Cash Write-offs | 0.4 | ||
Ending Balance | 10.2 | 8.5 | |
Workforce Reduction Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 6.9 | 6.7 | |
Provision | 6.5 | 4.2 | |
Cash Expenditures | [1] | (4.6) | (3) |
Ending Balance | 8.8 | 7.9 | |
Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 0.7 | 0.1 | |
Provision | 1.1 | 0.3 | |
Cash Expenditures | [1] | (0.4) | (0.2) |
Non-Cash Write-offs | 0.4 | ||
Ending Balance | $ 1.4 | $ 0.6 | |
[1] | Cash expenditures primarily relate to severance charges. |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 177.8 | $ 108.8 |
Less: Noncontrolling interest | (0.3) | |
Net income attributable to Fortune Brands | $ 177.8 | $ 109.1 |
Basic earnings per common share | $ 1.28 | $ 0.78 |
Diluted earnings per common share | $ 1.26 | $ 0.77 |
Basic average shares outstanding | 138.6 | 139.3 |
Stock-based awards | 2 | 1.5 |
Diluted average shares outstanding | 140.6 | 140.8 |
Antidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share | 0.2 | 0.9 |