Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 25, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-41545 | ||
Entity Registrant Name | MasterBrand, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 88-3479920 | ||
Entity Address, Address Line One | 3300 Enterprise Parkway, Suite 300 | ||
Entity Address, City or Town | Beachwood | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44122 | ||
City Area Code | 877 | ||
Local Phone Number | 622-4782 | ||
Title of 12(g) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | MBC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,387,631,718 | ||
Entity Common Stock, Shares Outstanding | 127,002,728 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: | ||
Entity Central Index Key | 0001941365 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Milwaukee, Wisconsin |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Statement [Abstract] | |||
NET SALES | $ 2,726.2 | $ 3,275.5 | $ 2,855.3 |
Cost of products sold | 1,824.8 | 2,335 | 2,071.4 |
GROSS PROFIT | 901.4 | 940.5 | 783.9 |
Selling, general and administrative expenses | 569.7 | 648.5 | 527.6 |
Amortization of intangible assets | 15.3 | 17.2 | 17.8 |
Asset impairment charges | 0 | 46.4 | 0 |
Restructuring charges | 10.1 | 25.1 | 4.2 |
OPERATING INCOME | 306.3 | 203.3 | 234.3 |
Related party interest income, net | 0 | (12.9) | (4.6) |
Interest expense | 65.2 | 2.2 | 0 |
Other expense, net | 2.4 | 0.6 | 0.6 |
INCOME BEFORE TAXES | 238.7 | 213.4 | 238.3 |
Income tax expense | 56.7 | 58 | 55.7 |
NET INCOME | $ 182 | $ 155.4 | $ 182.6 |
Average Number of Shares of Common Stock Outstanding | |||
Basic (in shares) | 127.8 | 128 | 128 |
Diluted (in shares) | 129.9 | 129.1 | 128 |
Earnings Per Common Share | |||
Basic (in dollars per share) | $ 1.42 | $ 1.21 | $ 1.43 |
Diluted (in dollars per share) | $ 1.40 | $ 1.20 | $ 1.43 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 182 | $ 155.4 | $ 182.6 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | 12.1 | (9.9) | (0.9) |
Unrealized (losses) gains on derivatives: | |||
Unrealized holding gains arising during period | 9.6 | 7.2 | 0.5 |
Less: reclassification adjustment for gains included in net income | (10.2) | (4.5) | (2.9) |
Unrealized (losses) gains on derivatives | (0.6) | 2.7 | (2.4) |
Defined benefit plans: | |||
Net actuarial (losses) gains arising during period | (4.1) | (6.1) | 9.4 |
Less: Amortization of net actuarial loss and curtailment | 3.2 | 1.7 | 0 |
Defined benefit plans | (0.9) | (4.4) | 9.4 |
Other comprehensive income (loss), before tax | 10.6 | (11.6) | 6.1 |
Income tax benefit (expense) related to items of other comprehensive income | 0.2 | 1 | (2.3) |
Other comprehensive income (loss), net of tax | 10.8 | (10.6) | 3.8 |
COMPREHENSIVE INCOME | $ 192.8 | $ 144.8 | $ 186.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Current assets | ||
Cash and cash equivalents | $ 148.7 | $ 101.1 |
Accounts receivable, net | 203 | 289.6 |
Inventories | 249.8 | 373.1 |
Other current assets | 75.7 | 66.2 |
TOTAL CURRENT ASSETS | 677.2 | 830 |
Property, plant and equipment, net of accumulated depreciation | 356.6 | 352.6 |
Operating lease right-of-use assets, net of accumulated amortization | 60.1 | 52.3 |
Goodwill | 925.1 | 924.2 |
Other intangible assets, net of accumulated amortization | 335.5 | 349.8 |
Other assets | 27.2 | 20.5 |
TOTAL ASSETS | 2,381.7 | 2,529.4 |
Current liabilities | ||
Accounts payable | 151.4 | 219.2 |
Current portion of long-term debt | 17.6 | 17.5 |
Current operating lease liabilities | 16.1 | 13.9 |
Other current liabilities | 164.3 | 160.5 |
TOTAL CURRENT LIABILITIES | 349.4 | 411.1 |
Long-term debt | 690.2 | 961.5 |
Deferred income taxes | 83.6 | 87.3 |
Pension and other postretirement plan liabilities | 7.9 | 12.2 |
Operating lease liabilities | 46.3 | 40.7 |
Other non-current liabilities | 10.5 | 7.4 |
TOTAL LIABILITIES | 1,187.9 | 1,520.2 |
Commitments (Note 15) and Contingencies and Accrued Losses (Note 16) | ||
Equity | ||
Common stock (par value $0.01 per share; authorized 750.0 million shares; 129.1 million shares issued and 126.8 million outstanding as of December 31, 2023; 128.0 shares issued and outstanding as of December 25, 2022 ) | 1.3 | 1.3 |
Paid-in capital | 17.8 | 0 |
Treasury stock, at cost | (26.1) | (0.1) |
Accumulated other comprehensive loss | (3.7) | (14.5) |
Retained earnings | 1,204.5 | 1,022.5 |
TOTAL EQUITY | 1,193.8 | 1,009.2 |
TOTAL LIABILITIES AND EQUITY | $ 2,381.7 | $ 2,529.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 25, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock issued (in shares) | 129,100,000 | 128,000,000 |
Common stock outstanding (in shares) | 126,800,000 | 128,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | ||
OPERATING ACTIVITIES | ||||
NET INCOME | $ 182 | $ 155.4 | $ 182.6 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 49 | 47.3 | 44.4 | |
Amortization of intangible assets | 15.3 | 17.2 | 17.8 | |
Restructuring charges, net of cash payments | (9.4) | 13 | (0.4) | |
Amortization of finance fees | 2.2 | 0 | 0 | |
Stock-based compensation | 17.8 | 10.9 | 9.3 | |
Asset impairment charges | 0 | 46.4 | 0 | |
Recognition of actuarial losses | (2.9) | (0.9) | (0.2) | |
Deferred taxes | (5.7) | 2.3 | (7.7) | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 88.1 | 13.5 | (72.2) | |
Inventories | 123.6 | (70.1) | (58.5) | |
Other current assets | 2.1 | (5.3) | (1.7) | |
Accounts payable | (69.4) | 18.3 | 44.7 | |
Accrued expenses and other current liabilities | 17.2 | 1.8 | 3 | |
Other items | (10.1) | (16) | (13.3) | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 405.6 | 235.6 | 148.2 | |
INVESTING ACTIVITIES | ||||
Capital expenditures | [1] | (57.3) | (55.9) | (51.6) |
Proceeds from the disposition of assets | 0.4 | 0 | 0.1 | |
NET CASH USED IN INVESTING ACTIVITIES | (56.9) | (55.9) | (51.5) | |
FINANCING ACTIVITIES | ||||
Issuance of long-term and short-term debt | 255 | 985 | 0 | |
Repayments of long-term and short-term debt | (527.5) | 0 | 0 | |
Repurchase of common stock | (22) | 0 | 0 | |
Payments of employee taxes withheld from share-based awards | (4) | (0.1) | 0 | |
Related party borrowings | 0 | 2,754.5 | 2,614.2 | |
Related party repayments | 0 | (3,009.4) | (2,767.1) | |
Net contributions from Fortune Brands | 0 | 5.3 | 43.7 | |
Dividend to Fortune Brands | 0 | (940) | 0 | |
Payment of financing fees | 0 | (10.1) | 0 | |
Other items | (1.4) | (0.5) | (0.5) | |
NET CASH USED IN FINANCING ACTIVITIES | (299.9) | (215.3) | (109.7) | |
Effect of foreign exchange rate changes on cash and cash equivalents | (1.2) | (4.7) | 0.1 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 47.6 | (40.3) | (12.9) | |
Cash and cash equivalents at beginning of period | 101.1 | 141.4 | 154.3 | |
Cash and cash equivalents at end of period | $ 148.7 | $ 101.1 | $ 141.4 | |
[1] a) Capital expenditures of $2.3 million, $1.6 million and $4.1 million that have not been paid as of December 31, 2023, December 25, 2022 and December 26, 2021, respectively, were excluded from the Consolidated Statements of Cash Flows. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Statement of Cash Flows [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 2.3 | $ 1.6 | $ 4.1 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Treasury stock, at cost | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance, shares (in shares) at Dec. 27, 2020 | 0 | |||||
Beginning balance at Dec. 27, 2020 | $ 2,214.4 | $ 0 | $ 219.2 | $ 0 | $ (7.7) | $ 2,002.9 |
Comprehensive income: | ||||||
NET INCOME | 182.6 | 182.6 | ||||
Other comprehensive income | 3.8 | 3.8 | ||||
Stock-based compensation | 9.3 | 9.3 | ||||
Dividend to Fortune Brands | 0 | |||||
Net contributions from (distributions to) Fortune Brands | 43.7 | 43.7 | ||||
Ending balance, shares (in shares) at Dec. 26, 2021 | 0 | |||||
Ending balance at Dec. 26, 2021 | 2,453.8 | $ 0 | 272.2 | 0 | (3.9) | 2,185.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares issued (in shares) | 128,000,000 | |||||
Distribution of MasterBrand, Inc. stock to Fortune Brands shareholders | 1.3 | $ 1.3 | ||||
Comprehensive income: | ||||||
NET INCOME | 155.4 | 155.4 | ||||
Other comprehensive income | (10.6) | (10.6) | ||||
Stock-based compensation | 10.8 | 10.9 | (0.1) | |||
Dividend to Fortune Brands | (940) | (940) | ||||
Net contributions from (distributions to) Fortune Brands | 5.3 | 110.6 | (105.3) | |||
Return of capital to Fortune Brands | $ (666.8) | (393.7) | (273.1) | |||
Ending balance, shares (in shares) at Dec. 25, 2022 | 128,000,000 | 128,000,000 | ||||
Ending balance at Dec. 25, 2022 | $ 1,009.2 | $ 1.3 | 0 | (0.1) | (14.5) | 1,022.5 |
Comprehensive income: | ||||||
NET INCOME | 182 | 182 | ||||
Other comprehensive income | 10.8 | 10.8 | ||||
Shares issued under compensation plans (in shares) | 700,000 | |||||
Stock-based compensation | 13.8 | 17.8 | (4) | |||
Dividend to Fortune Brands | $ 0 | |||||
Stock repurchased under repurchase program (in shares) | (1,874,806) | (1,900,000) | ||||
Stock repurchase program | $ (22) | 22 | ||||
Ending balance, shares (in shares) at Dec. 31, 2023 | 126,800,000 | 126,800,000 | ||||
Ending balance at Dec. 31, 2023 | $ 1,193.8 | $ 1.3 | $ 17.8 | $ (26.1) | $ (3.7) | $ 1,204.5 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background MasterBrand, Inc. is a leading manufacturer of residential cabinets in North America with a portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. References to “Cabinets,” “MasterBrand,” “the Company,” “we,” “our” and “us” refer to MasterBrand, Inc. and its consolidated subsidiaries, unless the context otherwise requires. On April 28, 2022, Fortune Brands announced that its Board of Directors approved in principle the Separation. The Cabinets segment of Fortune Brands had historically been operated by MBCI. In July 2022, Fortune Brands incorporated MasterBrand, Inc. in the State of Delaware and subscribed to all of the shares of MasterBrand, Inc.’s common stock upon its incorporation. After the incorporation of MasterBrand, Inc., the following occurred: (1) Fortune Brands contributed all of the issued and outstanding shares of capital stock of MBCI to MasterBrand, Inc., resulting in MBCI becoming a wholly-owned subsidiary of MasterBrand, Inc. through a transaction between entities under common control; and (2) MBCI was converted into a Delaware limited liability company, MasterBrand Cabinets LLC (collectively, the “Reorganization”). On December 14, 2022, the Separation was completed via the Distribution. On December 14, 2022, the date of Separation, 128.0 million shares of MasterBrand, Inc. common stock were issued. Fortune Brand shareholders received one share of MasterBrand, Inc. common stock for each share of Fortune Brands common stock held on the record date. Following the Distribution, Fortune Brands stockholders owned 100 percent of the shares of MasterBrand, Inc. common stock and MasterBrand, Inc. became an independent, publicly-traded company, listed under the symbol “MBC” on the New York Stock Exchange, beginning December 15, 2022. All share and per share amounts for all prior periods presented in the consolidated financial statements, including Note 5, "Earnings Per Share," have been retroactively recast to reflect the effects of the changes in equity structure resulting from the Reorganization, Separation and Distribution. The historical activity of the Company is that of MBCI prior to the Reorganization. The Company’s equity structure prior to the Separation and Distribution included 5,000 shares of MasterBrand, Inc. common stock authorized and 100 shares issued. Prior to the incorporation of MasterBrand, Inc. in July 2022, the equity structure of MBCI included 1,000 authorized and issued shares of common stock. MasterBrand, Inc. is the registrant and the financial reporting entity following the consummation of the Separation and Distribution. In order to govern the ongoing relationships between MasterBrand, Inc. and Fortune Brands after the Separation and to facilitate an orderly transition, the parties entered into a series of agreements including the following: • Separation and Distribution Agreement - sets forth the principal actions to be taken in connection with the Separation, including the transfer of assets and assumption of liabilities, among others, and sets forth other agreements governing aspects of the relationship between MasterBrand, Inc. and Fortune Brands. • Transition Services Agreement – allows for Fortune Brands and MasterBrand to provide certain transition services to each other for a limited time, up to 24 months following the Separation. • Tax Allocation Agreement – governs the respective rights, responsibilities and obligations of MasterBrand and Fortune Brands with respect to tax liabilities and benefits, tax attributes, tax contests and other matters regarding income taxes, non-income taxes and related tax returns. • Employee Matters Agreement – addresses certain employment, compensation and benefits matters, including the allocation and treatment of certain assets and liabilities relating to MasterBrand associates. Basis of Presentation The accompanying financial statements are presented on a consolidated basis as the Company is a standalone public company. We have historically existed and functioned as a reporting segment of the consolidated business of Fortune Brands up until the Separation on December 14, 2022, at which time we became a standalone public company. Certain information from prior to the Separation was derived from Fortune Brands’ consolidated financial statements and accounting records. The consolidated f inancial statements and notes to consolidated financial statements as of and subsequent to December 14, 2022, the date of the Separation, reflect the consolidated financial position, results of operations and cash flows for MasterBrand as an independent company. Prior to the Separation, the consolidated financial statements and notes to consolidated financial statements were prepared on a carve-out basis using the financial statements and accounting records of Fortune Brands. The carve-out basis financial statements represent the historical financial position, results of operations, and cash flows of MasterBrand as they were historically managed in accordance with GAAP and reflect significant assumptions and allocations. The carve-out financial statements may not include all expenses that would have been incurred had MasterBrand existed as a standalone entity. Our consolidated financial statements are based on a 52- or 53-week fiscal year ending on the last Sunday in December in each calendar year. Fiscal 2023 consisted of 53 weeks ended on December 31, 2023 . Fiscal 2022 and 2021 both consisted of 52 weeks ending on December 25, 2022 and December 26, 2021, respectively. References herein to years are to our fiscal years. The consolidated financial statements have been prepared in accordance with GAAP. The Company has one operating segment based on the nature of products the Company sells, its production and distribution model, the internal management structure and information that is regularly reviewed by the chief executive officer (“CEO”), who is the chief operating decision maker, for the purpose of assessing performance and allocating resources. The consolidated statements of income include all revenues and costs directly attributable to our business, including costs for facilities, functions, and services we utilize. The consolidated statements of income also include an allocation of expenses related to certain Fortune Brands corporate functions through the Separation, including information technology, finance, executive, human resources, supply chain, internal audit, governance and legal services. These expenses have been allocated based on direct usage or benefit where specifically identifiable, with the remainder allocated on a proportional cost allocation method based primarily on net sales, associate headcount, or number of facilities, as applicable. Prior to the Separation, total expenses allocated for the 2022 and 2021 years were $92.5 million and $62.0 million respectively, of which $72.4 million and $42.3 million, respectively, was not previously allocated to us. Such amounts are primarily included within selling, general and administrative expenses in the consolidated statements of income. We consider the expense methodology and resulting allocation to be reasonable; however, the allocations may not be indicative of actual expenses that would have been incurred had we operated as an independent, publicly-traded company in the prior year periods presented. Actual costs that we may have incurred during the time period when we were not a standalone company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by our associates and strategic decisions made in areas such as manufacturing, selling and marketing, research and development, information technology and infrastructure. Accordingly, historical allocations may not be indicative of future costs we incur operating as an independent, publicly-traded company. The consolidated statements of income also include $2.4 million and $15.4 million of costs related to the separation from Fortune Brands for the years ended December 31, 2023 and December 25, 2022, respectively. The Separation-related costs include advisory fees, professional fees and other transaction related costs incurred directly by us. These costs are included within selling, general and administrative expenses. The income tax amounts in the consolidated financial statements have been calculated on a separate-return method and presented as if our operations were separate taxpayers in the respective jurisdictions. For the period prior to the Separation in 2022, including the Separation, federal and state income tax payments, withholding taxes, and refunds were paid and received by Fortune Brands on our behalf. The net income taxes paid on our behalf are payable to Fortune Brands, as provided in the indemnification provisions of the Tax Allocation Agreement. Accordingly, the net income tax payable of $32.6 million to Fortune Brands as of December 25, 2022, was recorded in accounts payable on the Consolidated Balance Sheets and settled in 2023. Following the Separation, a limited number of services that Fortune Brands provided to us, or we provided to them, prior to the Separation continue to be provided for a period of time under a Transition Services Agreement. Throughout fiscal 2023, we have incurred certain costs as a standalone public company, including services provided by our own resources or through third-party service providers relating to corporate functions, including information technology, finance, executive, human resources, supply chain, internal audit, governance, and legal services, as well as ongoing additional costs associated with operating as an independent, publicly-traded company. Fortune Brands utilized a central approach to treasury management, and prior to the Separation, we historically participated in related cash pooling arrangements. Our cash and cash equivalents on our consolidated balance sheets represent cash balances held in bank accounts owned by the Company and its subsidiaries. Prior to the Separation, we had no third-party borrowings, and all borrowings attributable to our business and due to Fortune Brands were recorded as “related party payable” in our consolidated balance sheets and classified as current or noncurrent based on loan maturity dates. Fortune Brands’ third-party debt and related interest expense were not attributed to us as we were not the legal obligor of the debt, and the borrowings were not specifically identifiable to us. However, in connection with the Separation, we completed a financing transaction, which resulted in additional interest expense beginning in the fourth quarter of 2022. See Note 11, "Debt," for additional information. For more information regarding related party transactions with Fortune Brands, see Note 20, "Related Party Transactions." During the fourth quarter of 2022, we recognized $8.7 million of additional expense in cost of goods sold as an out-of-period adjustment. This adjustment was to correct errors for expenses that should have been recognized of $5.1 million , $1.6 million and $2.0 million in the thirteen weeks ended March 27, 2022, June 26, 2022 and September 25, 2022, respectively. The adjustment did not have any impact on our annual consolidated financial statements for the year ended December 25, 2022. Tornado at Jackson, GA Production Facility On January 12, 2023, a tornado hit the Company’s leased Jackson, Georgia production facility, causing damage to the Company’s assets and disrupting certain operations. Insurance, less applicable deductibles, covered the repair or replacement of the Company’s assets that suffered loss or damage, and the Company worked closely with its insurance carriers and claims adjusters to ascertain the full amount of insurance proceeds due to the Company as a result of the damages and the losses the Company suffered. The Company’s insurance policies also provide business interruption coverage, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. In the first quarter of 2023, the Company incurred expenses of $9.4 million solely related to damages caused by the tornado. These expenses included compensation costs that we continued to pay skilled labor at the Jackson facility to enable a timely ramp up of production upon re-opening the facility on March 27, 2023, the first day of our fiscal second quarter of 2023, as well as the write-off of damaged inventory, freight costs to move product to other warehouses and professional fees to secure and maintain the site. No expenses related to the tornado were incurred during our second, third, or fourth quarters of 2023, and we do not expect to incur any additional costs related to this matter. During 2023, we received $7.4 million of insurance proceeds for direct costs caused by the tornado, consisting of $2.2 million, $2.0 million, and $3.2 million received during our second, third, and fourth quarters, respectively. Both the expenses and insurance recoveries are recorded as a component of cost of products sold in the consolidated statements of income. Upon receipt of the final insurance payment in the fourth quarter, we consider this claim to be closed. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue for the sale of goods based on its assessment of when control transfers to our customers, which generally occurs upon shipment or delivery of the products. See Note 3, "Revenue from Contracts with Customers," for additional information. Customer Program Costs Customer programs and incentives are a common practice in our business. Our business incurs customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. These costs are recognized as either a reduction of revenue or within the selling, general and administrative expenses category, depending on the underlying nature of the cost. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new products, store sell-through, merchandising support, levels of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate, typically as a result of a change in volume expectations. Cost of Products Sold Cost of products sold includes all costs to make products saleable, including the cost of materials, as well as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses wer e $169.4 million, $209.9 million and $170.1 million in 2023, 2022 and 2021, respectively . Advertising costs, which amounted to $65.0 million, $69.1 million and $65.6 million in 2023, 2022 and 2021, respectively, are principally expensed as incurred. Advertising costs paid to customers as pricing rebates include product displays, marketing administration costs, media production costs and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $27.6 million, $29.4 million and $24.4 million in 2023, 2022 and 2021, respectively. Advertising costs recorded in selling, general and administrative expenses were $37.4 million, $39.7 million and $41.2 million in 2023, 2022 and 2021, respectively. Stock-based Compensation Some of our associates participate in stock-based compensation plans sponsored by the Company. Stock based compensation plans may include stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an associate is required to provide services in exchange for the award. Stock-based compensation expense is recorded net of estimated forfeitures. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance share award is based on the average of the high and low share prices on the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the average of the high and low share prices on the date of grant. See Note 17, "Stock-Based Compensation," for additional information. Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the AOCI caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into the functional currency with resulting transaction gains or losses recorded in other expense, net. Income Taxes The income tax expense in our Consolidated Financial Statements has been determined on a stand-alone return basis in accordance with ASC Topic 740, Income Taxes, which requires the recognition of income taxes using the liability method. The tax provision and current and deferred tax balances have been prepared on a separate-return basis as if the Company were a separate filer. The income taxes of the Company, as presented in the consolidated financial statements, may not be indicative of the income taxes that the Company will incur in the future. For taxable periods prior to and including the Separation, our operations were included in the consolidated U.S. federal and certain state and local income tax returns of Fortune Brands, as applicable. The Company filed separate foreign income tax returns. Post-Separation, our income tax provisions are calculated based on the Company’s operating footprint, as well as our tax return elections and assertions. Income tax liabilities related to unrecognized tax benefits (“UTBs”), including interest and penalties, are reported as a liability within the Consolidated Balance Sheets based upon tax authorities’ ability to assert the Company may be legally liable for UTBs. For taxable periods ended after the Separation, the Company will file a consolidated U.S. federal income tax return and various state and local income tax returns. The Company’s foreign income tax returns will continue to be filed on a full-year basis. The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The determination of the Company’s income tax positions involves consideration of uncertainties, changing fiscal policies, tax laws, court rulings, regulations, and related legislation. Accordingly, significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, unrecognized tax benefits and the valuation allowance recorded against deferred tax assets. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The recognition and measurement of deferred tax asset and liability balances, and the corresponding deferred tax expense or benefit, are determined for each tax-paying component in each relevant jurisdiction. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the new tax rate is enacted. The Company recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related appeals or litigation processes, if any. We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50 percent of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50 percent likelihood of being sustained, no tax benefit is recorded. Considerable management judgment is necessary to assess the inherent uncertainties related to the interpretations of complex tax laws, regulations, and taxing authority rulings. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. As of each balance sheet date, unrecognized tax benefits are reassessed and adjusted if the Company’s judgment changes as a result of new information, and changes in facts or circumstances. Changes in recognition and measurement estimates are recorded in the Consolidated Statements of Income and Consolidated Balance Sheets in the period in which such changes occur. We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance in the period in which such changes occur, which would reduce the provision for income taxes. The Company recognizes Global Intangible Low-Taxed Income (“GILTI”) tax as a period cost. The Company recognizes tax-related interest and penalties as a component of income tax expense. Earnings Per Share Earnings per common share is calculated by dividing net income attributable to MasterBrand by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. For comparative purposes, 2021 has been retroactively recast to reflect the effects of the changes in equity structure resulting from the Reorganization, Separation and Distribution and assumes the same basic weighted average shares. For years prior to the Separation, it is assumed that there are no dilutive securities as there were no stock-based awards of MasterBrand outstanding. See Note 5, "Earnings Per Share," for further discussion. Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. Allowances for Credit Losses Trade receivables are recorded at the stated amount, less allowances for discounts and credit losses. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency) or discounts related to early payment of accounts receivable by our customers. The allowances for credit losses include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for expected customer defaults on a general formula basis when it cannot yet be associated with specific customers. Expected credit losses are estimated using various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in, first-out basis and net realizable value being determined on the basis of replacement cost. Inventory costs include direct materials, including freight, labor and manufacturing overhead. Inventory provisions are recorded to reduce inventory to the net realizable dollar value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes. If actual market conditions differ from our projections, and our estimates prove to be inaccurate, write-downs of inventory values and adjustments to cost of products sold may be required. Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value less costs to sell at the time the assets are being actively marketed for sale. Estimated useful lives of the related assets are as follows: Buildings and improvements to leaseholds 1 to 40 years Machinery and equipment 1 to 20 years Held for Sale Assets and liabilities to be disposed of by sale ("disposal groups") are reclassified into other current assets and other current liabilities on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met, including when management, having the requisite authority, have committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value. Long-lived Assets A long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Examples of events or circumstances indicating that its carrying amount may not be recoverable include changes in volume, margin, customers and the industry. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. In 2023, no triggering events were noted related to our goodwill or indefinite-lived tradenames. However, we did note a triggering event requiring assessment of impairment for certain of our long-lived assets due to a restructuring action, resulting in a $4.6 million impairment charge included within restructuring charges. See Note 12, "Restructuring Charges," for additional information. In 2022, we concluded we had triggering events requiring assessment of impairment for certain of our long-lived assets due to the impairment of certain indefinite-lived tradenames, as well as specific restructuring actions announced in 2022. We performed quantitative impairment analyses during the year and determined there were no impairments of long-lived assets through December 25, 2022. Leases Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use our incremental borrowing rate in determining the present value of future lease payments. Our incremental borrowing rates include estimates related to the impact of collateralization and the economic environment where the leased asset is located. The operating lease assets also include any prepaid lease payments and initial direct costs incurred, but exclude lease incentives received at lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 32 years, some of which may include options to extend or terminate the lease. Operating lease expense is recognized on a straight-line basis over the lease term. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Additionally, for certain equipment leases, we apply a portfolio approach and account for multiple lease components as a single lease component. Certain lease agreements include variable rental payments, including rental payments adjusted periodically for inflation. Variable rental payments are expensed during the period they are incurred and therefore are excluded from our lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Goodwill and Indefinite-lived Intangible Assets We account for goodwill and other intangible assets in accordance with the provisions of ASC 350, Intangibles-Goodwill and Other, and account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill Goodwill is tested for impairment at least annually in the fourth quarter and written down when impaired. An interim impairment test is performed if an event occurs or conditions change that would more likely than not reduce the fair value of the reporting unit below the carrying value. To evaluate the recoverability of goodwill, we first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. Qualitative factors include changes in volume, margin, customers and the industry. If it is deemed more likely than not that goodwill for a reporting unit is impaired, we will perform a quantitative impairment test using a weighting of the income and market approaches. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. Assessing qualitative factors during both 2023 and 2022 would not have resulted in us performing a quantitative impairment test. In both 2023 and 2022, we elected to bypass the qualitative testing and performed quantitative tests for all goodwill. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates and then discounting the future cash flows at a market-participant-derived discount rate based on the weighted-average cost of capital. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine the reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss based on that difference. The significant assumptions that are used to determine the estimated fair value for goodwill impairment testing include the following: third-party market forecasts of U.S. new home starts and home repair and remodel spending; management’s sales, operating income and cash flow forecasts; peer company EBITDA earnings multiples; the market-participant-based discount rate; and the perpetuity growth rate. Our estimates of reporting unit fair values are based on certain assumptions that may differ from our historical and future actual operating performance. Specifically, assumptions related to growth in the new construction and repair and remodel segments of the U.S. home products markets drive our forecasted sales growth. The market forecasts are developed using independent third-party forecasts from multiple sources. In addition, estimated future operating income and cash flow consider our historical performance at similar levels of sales volume and management’s future operating plans as reflected in annual and long-term plans that are reviewed and approved by management. As a result of the annual impairment assessments performed for 2023, 2022 and 2021, there were no goodwill impairments. Indefinite-Lived Intangible Assets Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The significant assumptions that are used to determine the estimated fair value for indefinite-lived intangible assets upon acquisition and subsequent impairment testing are the market-participant discount rates based on the weighted-average cost of capital; forecasted revenue growth rates; and the assumed royalty rates. The market-participant discount rate used in estimating the fair value of future cash flows is dependent on comparable company prices and other relevant information generated by market transactions, as well as broader market assumptions, such as U.S. treasury rates. Our cash flow projections used to assess impairment of our goodwill and other intangible assets are significantly influenced by our projection for the U.S. home products market, our annual operating plans finalized in the fourth quarter of each fiscal year, and our ability to execute on various planned cost reduction initiatives supporting operating income improvements. Our projection for the U.S. home products market is inherently uncertain and is subject to a number of factors, such as employment, home prices, interest rates, credit availability, new home starts and the rate of home foreclosures. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. In both 2023 and 2022, we elected to bypass the qualitative testing and tested all of our indefinite-lived tradenames quantitatively. We measure fair value of our indefinite-lived tradenames using the relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The determination of fair value using this technique requires the use of estimates and assumptions related to forecasted revenue growth rates, the assumed royalty rates and the market-participant discount rates. During both our 2023 and 2022 annual impairment tests, we elected to quantitatively test all of our indefinite-lived tradenames. During our 2021 annual impairment test, of our $231.8 million indefinite lived tradenames, we tested $180.7 million quantitatively, and the remainder was assessed using qualitative factors. We recognized impairment charges, which are classified as “Asset impairment charges” on our consolidated statements of income, related to certain indefinite-lived tradenames of $46.4 million in 2022. We did not recognize any impairment charges related to indefinite-lived intangible assets in either fiscal 2023 or 2021. See Note 8, "Goodwill and Identifiable Intangible Assets," for additional information. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: increases in discount rates, lower than forecasted revenues, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets. Derivative Financial Instruments In accordance with ASC requirements for derivatives and hedging, we recognize all derivative contracts as either assets or liabilities on the balance sheet, and the measurement of those instruments is at fair value. We account for derivative instruments as follows: • Derivative instruments that are designated as cash flow hedges - The changes in the fair value of the derivative instrument are reported in other comprehensive income and are recognized in the consolidated statements of income when the hedged item affects earnings. In all periods presented, the recognized gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in cost of products sold on the consolidated statements of income. • Derivative instruments that are designated as fair value hedges - The gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in other expense, net on the consolidated statements of income. • Derivative instruments that are designated as net investment hedges - The changes in fair value of the derivative instrument are recognized in the consolidated statements of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. Restructuring Actions Restructuring actions generally include significant actions involving employee-related severance charges, contract termination costs, and impairment or accelerated depreciation or amortization of assets associated with such actions. Employee-related severance charges are largely based upon distributed employment policies and substantive severance plans. These charges are reflected in the quarter when the actions are probable and the amounts are estimable, which typically is when management approves the associated actions. Severance amounts for which affected employees in certain circumstances are required to render service in order to receive benefits at their termination dates are measured at the date such benefits are communicated to the applicable employees and recognized as expense over the employees’ remaining service periods. Contract termination and other charges primarily reflect costs to terminate a contract before the end of its term (measured at fair value at the time the Company provided notice to the counterparty) or costs that will continue to be incurred under the contract for its remaining term without economic benefit to the Company. Pension and Postretirement Benefits Other than Pensions We have a pension plan in the United States covering many of the Company’s associates. However, the plan has been frozen to new participants and benefit accruals were frozen for active participants on or before December 31, 2016. During 2023, the Board of Directors of MasterBrand, Inc. approved a plan to terminate the defined benefit pension plan. The termination and settlement process, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to take up to 24 months to complete, subject to receipt of customary regulatory approvals. During 2024, the Company expects to offer a lump-sum benefit payout option to certain plan participants. During 2025, we expect to complete the purchase of group annuity contracts that will transfer any remaining pension benefit obligation to an insurance company. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation—Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, turnover and mortality rates and health care cost trend rates. Actuarial gains or losses related to these assumptions represent the difference between actual and actuarially assumed experience. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in other expense, net to the extent they are in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation for each plan (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each fiscal year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. For postretirement benefits, our health care trend rate assumptions are based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior associate service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related associates. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 14, "Pension and Other Postretirement Plans," are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. Insurance Reserves We provide for expenses associated with workers’ compensation and product liability obligations when such amounts are probable and can be reasonably estimated. The accruals are adjusted as new information develops or circumstances change that would affec |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our principal performance obligations are the sale of high quality stock, semi-custom and premium cabinetry, as well as vanities, for the kitchen, bath and other parts of the home (collectively, “goods” or “products”). We recognize revenue for the sale of goods based on our assessment of when control transfers to our customers, which generally occurs upon shipment or delivery of the products. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods to our customers. Payment terms on our product sales normally range from 30 to 90 days. Taxes assessed by a governmental authority that we collect are excluded from revenue. The expected costs associated with our contractual warranties are recognized as expense when the products are sold. See Note 16, "Contingencies and Accrued Losses," for further discussion. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. We account for shipping and handling costs that occur after the customer has obtained control of a product as a fulfillment activity (i.e., as an expense) rather than as a promised service (i.e., as a revenue element). These costs are classified within selling, general and administrative expenses. Settlement of our outstanding accounts receivable balances normally occurs within 30 to 90 days of the original sale transaction date. Obligations arise for us from customer rights to return our goods, including among others, product obsolescence, stock rotations, trade-in agreements for newer products and upon termination of a customer contract. We estimate future product returns at the time of sale based on historical experience and record a corresponding refund obligation, which amounted to $2.1 million and $3.0 million as of December 31, 2023 and December 25, 2022, respectively. Refund obligations are classified within other current liabilities in our consolidated balance sheet. Return assets related to the refund obligation are measured at the carrying amount of the goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value. Net sales to two of the Company’s customers, Lowe’s and The Home Depot each accounted for greater than 10 percent of the Company’s net sales in 2023, 2022 and 2021. Net sales to Lowe’s were 21 percent, 20 percent and 18 percent of net sales in 2023, 2022 and 2021, respectively. Net sales to The Home Depot were 16 percent, 17 percent, and 18 percent of net sales in 2023, 2022 and 2021, respectively. The Company disaggregates revenue from contracts with customers into (i) major sales distribution channels and (ii) total sales to customers by shipping location, as these categories depict the nature, amount, timing and uncertainty of revenues and cash flows that are affected by economic factors. The following table disaggregates our consolidated revenue by major sales distribution channels and by shipping location for 2023, 2022 and 2021. (U.S. Dollars presented in millions) 2023 2022 2021 Net Sales by Channel (a) Dealers (b) $ 1,446.5 $ 1,771.8 $ 1,583.4 Retailers (c) 967.0 1,173.9 1,012.4 Builders (d) 312.7 329.8 259.5 Net sales $ 2,726.2 $ 3,275.5 $ 2,855.3 Net Sales by Shipping Location United States $ 2,584.4 $ 3,086.8 $ 2,680.5 Canada 125.7 172.5 158.4 Mexico 16.1 16.2 16.4 Net sales $ 2,726.2 $ 3,275.5 $ 2,855.3 a) Net sales by channel presented in fiscal 2022 and 2021 have been reclassified to conform with the new format of this table, which is intended to provide a consolidated view of our net sales by channel and shipping location. Prior to this Annual Report on Form 10-K, net sales by channel was presented for our domestic sales only. b) Represents sales to domestic dealers whose end customers include builders, professional trades and home remodelers, inclusive of sales through our dealers’ respective internet website portals. c) Represents sales to domestic “Do-It-Yourself” retailers, including our two largest customers: 1) Lowe’s and 2) The Home Depot, inclusive of sales through their respective internet website portals. d) Represents sales directly to builders. Practical Expedients Incremental costs of obtaining a contract include only those costs the Company incurs that would not have been incurred if the contract had not been obtained. These costs are required to be recognized as assets and amortized over the period that the related goods or services transfer to the customer. As a practical expedient, we expense as incurred costs to obtain a contract when the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the accompanying consolidated statements of income. Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value that is expected to be collected. The allowance is based on assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in selling, general and administrative expenses. The following table summarizes the activity for the allowance for the years ended December 31, 2023 and December 25, 2022 : (U.S. Dollars presented in millions) 2023 2022 Beginning balance $ 11.6 $ 2.5 Bad debt provision 1.9 12.1 Uncollectible accounts written off, net of recoveries (8.9) (3.0) Ending balance $ 4.6 $ 11.6 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net The components of other expense, net for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 were as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Pension and postretirement benefits other than pensions $ 2.9 $ (1.3) $ (2.0) Foreign currency losses 3.2 1.1 1.4 Other items, net (3.7) 0.8 1.2 Total other expense, net $ 2.4 $ 0.6 $ 0.6 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share On December 14, 2022, 128.0 million MasterBrand common shares were distributed to Fortune Brands’ shareholders in conjunction with the Separation. For comparative purposes, fiscal 2021 has been retroactively recast to reflect the effects of the changes in equity structure resulting from the Reorganization, Separation and Distribution and assume the same basic weighted average shares. For the fiscal years ended December 31, 2023 and December 25, 2022 , diluted earnings per share was computed by giving effect to all potentially dilutive stock awards that are outstanding. For years prior to the Separation, it is assumed that there are no dilutive securities as there were no stock-based awards of MasterBrand outstanding. The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the fiscal years ended December 31, 2023 , December 25, 2022 , and December 26, 2021 : (U.S. Dollars presented in millions, except per share amounts) 2023 2022 2021 Numerator: Numerator for basic and diluted earnings per share - Net income $ 182.0 $ 155.4 $ 182.6 Denominator: Denominator for basic earnings per share - weighted average shares outstanding 127.8 128.0 128.0 Effect of dilutive securities - stock-based awards 2.1 1.1 — Denominator for diluted earnings per share - weighted average shares outstanding 129.9 129.1 128.0 Earnings per share: Basic $ 1.42 $ 1.21 $ 1.43 Diluted $ 1.40 $ 1.20 $ 1.43 Approximately 0.7 million shares and 1.3 million shares were excluded from the calculation of diluted earnings per share for the years ended December 31, 2023 and December 25, 2022 , respectively, because their inclusion would have been anti-dilutive. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | Balance Sheet Information Supplemental information on our year-end consolidated balance sheets is as follows: (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 Inventories: Raw materials and supplies $ 175.1 $ 292.1 Work in process 25.1 23.6 Finished products 49.6 57.4 Total inventories $ 249.8 $ 373.1 Property, plant and equipment: Land and improvements $ 31.8 $ 32.9 Buildings and improvements to leaseholds 304.0 304.0 Machinery and equipment 551.9 518.8 Construction in progress 36.6 37.7 Property, plant and equipment, gross 924.3 893.4 Less: accumulated depreciation 567.7 540.8 Property, plant and equipment, net of accumulated depreciation $ 356.6 $ 352.6 Accounts payable: Third party $ 149.7 $ 175.1 Fortune Brands (a) 1.7 44.1 Total accounts payable $ 151.4 $ 219.2 Other current liabilities: Accrued salaries, wages and other compensation $ 67.6 $ 49.0 Accrued restructuring 1.4 15.4 Accrued income and other taxes 18.5 14.3 Accrued product warranties 12.9 11.2 Other accrued expenses 63.9 70.6 Total other current liabilities $ 164.3 $ 160.5 (a) The payable to Fortune Brands of $44.1 million |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease right-of-use assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Amounts recognized for finance leases as of and for the years ended December 31, 2023 and December 25, 2022 were immaterial. Operating lease expense recognized in the consolidated statement of income for the years ended 2023, 2022 and 2021 were $26.9 million , $27.4 million and $24.7 million , respectively, including approximately $9.4 million, $11.7 million and $9.4 million of short-term and variable lease costs for the years ended 2023, 2022 and 2021, respectively. Other information related to leases was as follows for the fiscal years ending: (U.S. Dollars presented in millions, except lease term and discount rate) December 31, December 25, December 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 17.3 $ 15.4 $ 14.7 Right-of-use assets obtained in exchange for operating lease obligations $ 23.9 $ 5.2 $ 35.8 Weighted average remaining lease term—operating leases 5.4 years 5.1 years 5.9 years Weighted average discount rate—operating leases 4.5 % 3.0 % 2.8 % Total lease payments under non-cancellable operating leases as of December 31, 2023 are expected to be: (U.S. Dollars presented in millions) Fiscal Years Ending: 2024 $ 18.1 2025 13.5 2026 10.5 2027 8.7 2028 7.0 Thereafter 13.3 Total lease payments 71.1 Less imputed interest (8.7) Total $ 62.4 Reported as of December 31, 2023 Current operating lease liabilities $ 16.1 Operating lease liabilities (non-current) 46.3 Total $ 62.4 |
Leases | Leases We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease right-of-use assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Amounts recognized for finance leases as of and for the years ended December 31, 2023 and December 25, 2022 were immaterial. Operating lease expense recognized in the consolidated statement of income for the years ended 2023, 2022 and 2021 were $26.9 million , $27.4 million and $24.7 million , respectively, including approximately $9.4 million, $11.7 million and $9.4 million of short-term and variable lease costs for the years ended 2023, 2022 and 2021, respectively. Other information related to leases was as follows for the fiscal years ending: (U.S. Dollars presented in millions, except lease term and discount rate) December 31, December 25, December 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 17.3 $ 15.4 $ 14.7 Right-of-use assets obtained in exchange for operating lease obligations $ 23.9 $ 5.2 $ 35.8 Weighted average remaining lease term—operating leases 5.4 years 5.1 years 5.9 years Weighted average discount rate—operating leases 4.5 % 3.0 % 2.8 % Total lease payments under non-cancellable operating leases as of December 31, 2023 are expected to be: (U.S. Dollars presented in millions) Fiscal Years Ending: 2024 $ 18.1 2025 13.5 2026 10.5 2027 8.7 2028 7.0 Thereafter 13.3 Total lease payments 71.1 Less imputed interest (8.7) Total $ 62.4 Reported as of December 31, 2023 Current operating lease liabilities $ 16.1 Operating lease liabilities (non-current) 46.3 Total $ 62.4 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets We had goodwill of $925.1 million and $924.2 million as of December 31, 2023 and December 25, 2022, respectively. The change in the net carrying amount of goodwill was as follows: (U.S. Dollars presented in millions) Total Balance at December 26, 2021 $ 926.2 2022 translation adjustments (2.0) Balance at December 25, 2022 $ 924.2 2023 translation adjustments 0.9 Balance at December 31, 2023 $ 925.1 The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2023 and December 25, 2022 were as follows: As of December 31, 2023 As of December 25, 2022 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 184.2 $ — $ 184.2 $ 183.1 $ — $ 183.1 Amortizable intangible assets Tradenames 10.4 (10.4) — 10.3 (10.2) 0.1 Customer and contractual relationships 363.6 (212.3) 151.3 362.9 (196.8) 166.1 Patents/proprietary technology 11.0 (11.0) — 11.0 (10.5) 0.5 Total 385.0 (233.7) 151.3 384.2 (217.5) 166.7 Total identifiable intangibles $ 569.2 $ (233.7) $ 335.5 $ 567.3 $ (217.5) $ 349.8 Amortizable intangible assets, principally customer relationships, are subject to amortization on a straight-line basis over their estimated useful life, ranging from 18 to 20 years, based on the assessment of a number of factors that may impact useful life, including customer attrition rates and other relevant factors. We expect to record intangible amortization of $14.7 million annually from 2024 through 2028. In the second quarter of 2022, subsequent to the balance sheet date, we recognized an impairment charge In the fourth quarter of 2022, we recognized an impairment charge of $7.6 million to a second indefinite-lived tradename. This was primarily due to a shift in customer demand from this tradename to a lower price point product, as a result of continued and persistent inflation, as well as elevated interest rates and economic uncertainty. As of both December 31, 2023 and December 25, 2022 , the carrying value of this tradename was $19.1 million . The fair values of the impaired 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 the more significant assumptions inherent in estimating the fair values include market-participant discount rates based on the weighted-average cost of capital, which is dependent on comparable company prices and other relevant information generated by market transactions, as well as broader market assumptions, such as U.S. treasury rates, forecasted revenue growth rates and assumed royalty rates. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management plans. These assumptions represent Level 3 inputs of the fair value hierarchy (refer to Note 10, “Fair Value Measurements” ). A reduction in the estimated fair value of any of our tradenames could trigger impairment charges in future periods. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: increases in discount rates, lower than forecasted revenues, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers,continued economic uncertainty, higher levels of unemployment, weak consumer confidence, higher interest rates, 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 with certainty the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets. There were no impairments of goodwill for any periods presented. There were no impairments of indefinite-lived assets for the years ended December 31, 2023 or December 26, 2021. The significant assumptions used to estimate the fair values of the tradenames impaired during the year ended December 25, 2022 were as follows: 2022 Unobservable Input Min Max Wtd Avg (a) Discount rate 11.6 % 12.6 % 12.1 % Royalty rate (b) 2.5 % 3.0 % 2.8 % Long-term revenue growth rate (c) 1.0 % 1.0 % 1.0 % 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. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | 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. 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. We account for derivative instruments as follows: • Derivative instruments that are designated as cash flow hedges - The changes in the fair value of the derivative instrument are reported in other comprehensive income and are recognized in the consolidated statements of income when the hedged item affects earnings. In all periods presented, the recognized gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in cost of products sold on the consolidated statements of income. • Derivative instruments that are designated as fair value hedges - The gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in other expense, net on the consolidated statements of income. • Derivative instruments that are designated as net investment hedges - The changes in fair value of the derivative instrument are recognized in the consolidated statements of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. As of and during the fiscal years ended December 31, 2023 and December 25, 2022, we have only entered into foreign currency forward contracts, some of which have been designated as fair value hedges and some of which have been designated as cash flow hedges. We may enter into foreign currency forward contracts to protect against foreign exchange risks associated with certain existing assets and liabilities, forecasted future cash flows, and net investments in foreign subsidiaries. Foreign exchange contracts related to forecasted future cash flows correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. Our primary foreign currency hedge contracts pertain to the Mexican peso and the Canadian dollar. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2023 was $61.3 million, representing a net settlement asset of $2.9 million. Based on foreign exchange rates as of December 31, 2023, we estimate that $2.2 million of net derivative gains associated with cash flow hedges and included in accumulated other comprehensive income as of December 31, 2023 will be reclassified to earnings within the next twelve months. The fair values of foreign exchange derivative instruments on the consolidated balance sheets as of December 31, 2023 and December 25, 2022 were: (U.S. Dollars presented in millions) Location December 31, 2023 December 25, 2022 Assets: Foreign exchange contracts Other current assets $ 3.0 $ 3.7 Total assets $ 3.0 $ 3.7 Liabilities: Foreign exchange contracts Other current liabilities $ 0.1 $ 0.5 Total liabilities $ 0.1 $ 0.5 The effects of cash flow hedging financial instruments included within the consolidated statements of comprehensive income in 2023, 2022 and 2021 were as presented in the table below. When the hedged item affects earnings, amounts are reclassed out of accumulated other comprehensive loss and recognized as a component of cost of products sold. Amount Recognized in Statement of Comprehensive Income for Cash Flow Hedging Relationships (U.S. Dollars presented in millions) 2023 2022 2021 Foreign exchange contracts: Unrealized holding gains arising during period $ 9.6 $ 7.2 $ 0.5 Less: reclassification adjustment for gains included in net income (10.2) (4.5) (2.9) Unrealized (losses) gains on derivatives $ (0.6) $ 2.7 $ (2.4) The effects of fair value hedging financial instruments included in other expense, net on the consolidated statements of income in 2023, 2022 and 2021 were: Amount of Gain (Loss) Recognized in Earnings on Fair Value Hedging Relationships (U.S. Dollars presented in millions) 2023 2022 2021 Foreign exchange contracts: Hedged items $ (1.3) $ — $ — Derivatives designated as hedging instruments 5.9 (7.2) (0.5) Net gains (losses) recognized in earnings $ 4.6 $ (7.2) $ (0.5) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3, except for certain assumptions in estimating the fair value of indefinite-lived tradenames, as discussed in Note 8, "Goodwill and Identifiable Intangible Assets." Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) Fair Value 2023 2022 Assets: Derivative asset financial instruments (Level 2) $ 3.0 $ 3.7 Deferred compensation program assets (Level 2) 5.5 3.6 Total assets $ 8.5 $ 7.3 Liabilities: Derivative liability financial instruments (Level 2) $ 0.1 $ 0.5 The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table provides a summary of the Company’s debt as of December 31, 2023 and December 25, 2022 , including the carrying value of the debt less debt issuance costs: (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 Current Long-term Current Long-term Revolving credit facility due November 2027 $ — $ — $ — $ 235.0 Term loan due November 2027 18.8 693.7 18.8 731.3 $ 18.8 $ 693.7 $ 18.8 $ 966.3 Less: Unamortized debt issuance costs (1.2) (3.5) (1.3) (4.8) Total $ 17.6 $ 690.2 $ 17.5 $ 961.5 On November 18, 2022, the Company entered into a 5-year, $1.25 billion credit agreement, consisting of a $750.0 million term loan and a $500.0 million revolving credit facility (the “2022 Credit Agreement”). Initial proceeds from the 2022 Credit Agreement were received at the time of Separation from Fortune Brands and were used to fund the dividend paid to Fortune Brands, with any future proceeds to be used for general corporate purposes. The 2022 Credit Agreement is secured by certain assets as well as the guarantee of certain of our subsidiaries. The $750.0 million Term Loan has quarterly required amortization payments that began in March 2023. As of December 31, 2023, the Company had $480.2 million of availability under its revolving credit facility. Debt issuance costs related to the 2022 Credit Agreement were $10.1 million upon inception of the agreement and are being amortized over the term of the debt. At December 25, 2022 , $0.8 million was included in other current assets, $3.2 million is included in other assets, $1.3 million is included in the current portion of long-term debt and $4.8 million is included in long-term debt in our Consolidated Balance Sheets. At December 31, 2023 , unamortized debt issuance costs totaled $8.0 million of which $0.9 million was included in other current assets, $2.4 million was included in other assets, $1.2 million was included in the current portion of long-term debt and $3.5 million was included in long-term debt in our Consolidated Balance Sheets. During the third quarter of fiscal 2023 , the Company made total payments of $28.1 million on the term loan, consisting of a $4.7 million required payment due September 2023, and $23.4 million of required amortization payments due during each of the next three quarters. We did not make any additional term loan payments during the fourth quarter of fiscal 2023, and as of December 31, 2023 we are paid in advance for our next two scheduled quarterly payments due during the first and second quarters of 2024. Total amounts outstanding under the term loan as of December 31, 2023 and December 25, 2022 were $712.5 million and $750.0 million, respectively . Additionally, the revolving credit facility was paid in full during the third quarter of fiscal 2023 . The revolving credit facility did not have an outstanding balance as of December 31, 2023, as compared to a balance of $235.0 million at December 25, 2022. Interest rates under these facilities are variable based on the SOFR at the time of the borrowing, and the Company’s net leverage ratio as measured by net leverage to our Consolidated EBITDA. Interest rates can range from SOFR plus 1.85 percent to SOFR plus 2.60 percent. Net leverage is defined as consolidated total indebtedness minus certain cash and cash equivalents. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. The net leverage ratio may not exceed 3.875 to 1.0 at the initial borrowing through the second fiscal quarter of 2023, adjusting downward in various future quarters before settling at 3.25 to 1.0 in January 2025. As of December 31, 2023, the net leverage ratio may not exceed 3.75 to 1.0. The Company also is required to maintain a minimum interest coverage ratio, defined as Consolidated EBITDA to consolidated interest expense, of 3.0 to 1.0. The Company’s 2022 Credit Agreement contains additional covenants which limit or preclude certain corporate actions based upon the measurement of certain financial covenant metrics. The Company was in compliance with all of its debt covenants as of December 31, 2023 and December 25, 2022 . Over the next five years, debt due to be paid by the Company is as follows: (U.S. Dollars presented in millions) Future Debt Payments 2024 $ 18.8 2025 $ 37.5 2026 $ 37.5 2027 $ 618.7 2028 $ — Interest paid on debt was $64.0 million and $0.3 million in 2023 and 2022, respectively. During the fourth quarter of 2022, we incurred indebtedness in connection with the Separation and Distribution, which resulted in the recognition of interest expense. Prior to the Separation, we had no third-party borrowings. We did not recor d any material capitalized interest during 2023, 2022, or 2021. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges of $10.1 million in 2023 are primarily related to severance costs and other associate-related costs in order to better align our workforce with our forecasted demand within our manufacturing footprint, and an asset impairment charge associated with a decision to permanently close our Newton, Kansas manufacturing facility, which had previously been idled. Restructuring charges of $25.1 million in 2022 are largely related to severance costs and other associate-related costs associated with the relocation and closure of certain production facilities within our manufacturing footprint, resulting in a more flexible facility footprint. These actions included the consolidation of two manufacturing facilities in Winnipeg, Canada into one facility, the idling of a manufacturing facility in Newton, Kansas, and the closure of our Lynchburg, Virginia manufacturing facility. Restructuring charges of $4.2 million in 2021 are largely related to severance costs and costs associated with closing a facility. Reconciliation of Restructuring Liability (U.S. Dollars presented in millions) Balance at December 25, 2022 2023 Provision Cash Expenditures (a) Non-cash Writeoffs Balance at December 31, 2023 Workforce reduction costs $ 15.3 $ 3.6 $ (17.6) $ — $ 1.3 Facility Closure Costs — 4.6 — (4.6) — Other 0.1 1.9 (1.9) — 0.1 $ 15.4 $ 10.1 $ (19.5) $ (4.6) $ 1.4 (a) Cash expenditures primarily related to severance charges. (U.S. Dollars presented in millions) Balance at December 26, 2021 2022 Provision Cash Expenditures (a) Balance at December 25, 2022 Workforce reduction costs $ 2.2 $ 24.5 $ (11.4) $ 15.3 Other 0.2 0.6 (0.7) 0.1 $ 2.4 $ 25.1 $ (12.1) $ 15.4 (a) Cash expenditures primarily related to severance charges. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For taxable periods prior to and including the Separation, our operations were included in the consolidated U.S. federal and certain state and local income tax returns of Fortune Brands, as applicable. The Company filed separate foreign income tax returns. Subsequent to the Separation, as a stand-alone entity, we file consolidated U.S. federal income tax returns and various state and local income tax returns. The Company’s foreign income tax returns will continue to be filed on a full-year basis. The Company’s deferred taxes and effective tax rate may differ from those in the pre-Separation taxable periods. The components of income from continuing operations before income taxes were as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Domestic operations $ 213.2 $ 162.2 $ 204.0 Foreign operations 25.5 51.2 34.3 Income before income taxes $ 238.7 $ 213.4 $ 238.3 Income tax expense in the consolidated statement of income consisted of the following: (U.S. Dollars presented in millions) 2023 2022 2021 Current Federal $ 44.2 $ 30.9 $ 43.7 State 9.3 14.2 10.8 Foreign 8.9 10.6 8.9 Deferred Federal 1.2 3.7 (5.4) State (2.1) (2.3) (0.2) Foreign (4.8) 0.9 (2.1) Total income tax expense $ 56.7 $ 58.0 $ 55.7 A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: (in percentages) 2023 2022 2021 Income tax expense at U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax benefit 2.2 4.3 3.9 Foreign taxes at a different rate than U.S. federal statutory income tax rate 0.6 (0.4) (0.2) Unrecognized tax benefits — (6.6) (0.5) IRS audit adjustments — 8.1 — Miscellaneous other, net — 0.8 (0.8) Effective income tax rate 23.8 % 27.2 % 23.4 % For 2023, the Company’s effective tax rate was 23.8 percent, compared to an effective tax rate of 27.2 percent for 2022. The decrease in effective tax rate in 2023 was primarily the result of changes in state and local income taxes and the nonrecurrence of IRS audit adjustments in 2022, including recognition of a deferred tax liability for earnings of various foreign entities, partially offset by benefits for the release of uncertain tax positions in 2022 and foreign income taxed at higher rates. The 2023 effective income tax rate of 23.8 percent was unfavorably impacted by net changes in state and local income taxes, and foreign income taxed at higher rates. The 27.2 percent effective income tax rate for 2022 was unfavorably impacted by IRS audit adjustments, including recognition of a deferred tax liability for earnings of various foreign entities, and state and local income taxes, partially offset by favorable benefits for the release of uncertain tax positions and foreign income taxed at lower rates. For 2022, the Company’s effective tax rate was 27.2 percent, compared to an effective tax rate of 23.4 percent for 2021. The increase in effective tax rate was primarily the result of state and local income taxes and IRS audit adjustments, including recognition of a deferred tax liability for earnings of various foreign entities, partially offset by increased benefits for the release of uncertain tax positions and foreign income taxed at lower rates. The 23.4 percent effective income tax rate for 2021 was unfavorably impacted by state and local income taxes and increases in uncertain tax positions that were partially offset by a favorable benefit for foreign income taxed at lower rates. Deferred income tax assets and liabilities are provided for the impact of temporary differences between amounts of assets and liabilities recognized for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. These temporary differences result in taxable or deductible amounts in future years. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view regarding the future realization of deferred tax assets. The components of net deferred tax assets (liabilities) as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) 2023 2022 Deferred tax assets: Compensation and benefits $ 15.9 $ 14.6 Other accrued expenses 14.7 15.9 Accounts receivable 12.5 18.8 Operating lease liabilities 11.0 14.6 Capitalized inventories 4.2 6.0 Net operating loss and other tax carryforwards 3.2 2.4 Defined benefit plans 1.1 2.4 Valuation allowance (1.0) (1.2) Other 8.7 4.6 Total deferred tax assets 70.3 78.1 Deferred tax liabilities: Intangible assets (114.3) (118.0) Fixed assets (22.0) (25.3) Operating lease assets (10.5) (14.0) Prepaid marketing (3.0) (4.1) Unremitted earnings of foreign subsidiaries — (0.2) Other (0.4) (2.2) Total deferred tax liabilities (150.2) (163.8) Net deferred tax liability $ (79.9) $ (85.7) Deferred taxes were classified in the Consolidated Balance Sheets as of December 31, 2023 and December 25, 2022 as follows: (U.S. Dollars presented in millions) 2023 2022 Other assets $ 3.7 $ 1.6 Deferred income taxes (83.6) (87.3) Net deferred tax liability $ (79.9) $ (85.7) As of December 31, 2023 and December 25, 2022 , the Company had deferred tax assets related to net operating losses and other tax credit carryforwards of $3.2 million and $2.4 million , respectively. The net operating losses expire between 2024 and 2043, and the tax credit carryforwards expire between 2029 and 2032. The Company evaluated its ability to realize tax benefits associated with deferred tax assets and concluded, based on all available positive and negative evidence, that it is more likely than not that a portion of the deferred tax assets are not expected to be realized. Accordingly, a valuation allowance of $1.0 million and $1.2 million as of December 31, 2023 and December 25, 2022, respectively, was recorded to reduce the deferred tax assets related to the net operating losses and tax credit carryforwards. A reconciliation of the Company’s gross change in UTBs, including accrued interest and penalties, is as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Unrecognized tax benefits—beginning of year $ 1.2 $ 20.2 $ 21.5 Gross additions—current year tax positions — 0.1 0.1 Gross additions—prior year tax positions — — 0.1 Gross reductions—prior year tax positions (0.3) (17.8) (1.5) Gross reductions—settlements with taxing authorities — (1.3) — Unrecognized tax benefits—end of year $ 0.9 $ 1.2 $ 20.2 Unrecognized tax benefits—accrued interest and penalties 0.7 0.5 3.0 Gross unrecognized tax benefits $ 1.6 $ 1.7 $ 23.2 In the fourth quarter of 2023, the Company released $0.3 million of prior year tax positions due to statute of limitations. In the third quarter of 2022, the IRS completed its examination of the Company’s tax filings for 2017 and 2018. As a result of closing the IRS examination and other changes to UTBs, the Company realized a $19.0 million net reduction in UTBs, which was partially offset by related tax expenses to adjust current and deferred income tax liabilities. As a result of the IRS audit, the Company is now recognizing a deferred tax liability for various foreign entities whose income is currently includable for U.S. federal income tax purposes. Post-Separation, liabilities related to UTBs, including interest and penalties, are reported as a liability within the Consolidated Balance Sheet based upon tax authorities’ ability to assert the Company may be legally liable for UTBs. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company classifies interest and penalty accruals related to UTBs as income tax expense. In 2023, the Company recognized interest and penalty expense of approximately $0.2 million. In both 2022 and 2021, the Company recognized interest and penalty expenses of approximately $0.1 million. The amount of UTBs that, if recognized as of December 31, 2023, would affect the Company’s effective tax rate is $0.9 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $0.4 million to $0.9 million primarily as a result of the conclusion of U.S. federal, state, and foreign income tax proceedings or expiration of the relevant statute of limitations. As of December 31, 2023, the Company believed that it is more-likely-than-not that the tax positions it has taken would be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, interest and/or penalty assessments. For pre-Separation periods, the Company’s federal income tax returns, and various state income tax returns that included operations of the Company, were filed by Fortune Brands and remain open and subject to examination for tax years after 2018. In addition to the U.S., the Company has tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2018 and Mexico for years after 2017. As of December 31, 2023, the Company is not permanently reinvested with respect to all earnings generated by foreign operations. There was no material deferred tax expense recorded for foreign and state tax costs associated with the future remittance of these undistributed earnings. Accordingly, the Company’s foreign earnings are subject to the general presumption of APB 23, including the 100 percent dividends-received deduction and previously taxed income components. Income taxes paid directly to taxing authorities, net of refunds received, were $68.5 million, $10.3 million, and $15.3 million during the years ended December 31, 2023, December 25, 2022 and December 26, 2021, respectively. Prior to the Separation in 2022, federal and state income tax payments and refunds were paid and received by Fortune Brands on our behalf. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans We have a defined benefit pension plan in the United States covering many of the Company’s associates. However, the plan has been frozen to new participants and benefit accruals were frozen for active participants on or before December 31, 2016. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. Service cost for 2023 and 2022 relates to benefit accruals for an associate group in Mexico who receive statutorily-mandated retiree health and welfare benefits. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65. After meeting certain qualifications, an associate acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an associate’s length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. Also, from time to time, we may make contributions in excess of the legal funding requirements. During 2023, the Board of Directors of MasterBrand, Inc. approved a plan to terminate the defined benefit pension plan. The termination and settlement process, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to take up to 24 months to complete, subject to receipt of customary regulatory approvals. During 2024, the Company expects to offer a lump-sum benefit payout option to certain plan participants. During 2025, we expect to complete the purchase of group annuity contracts that will transfer any remaining pension benefit obligation to an insurance company. Net actuarial gains and losses occur when actual experience differs from any of the assumptions used to value the plans or when assumptions change as they may each year. The primary factors contributing to actuarial gains and losses are changes in the discount rate used to value obligations as of the measurement date and the differences between expected and actual returns on pension plan assets. (U.S. Dollars presented in millions) Pension Benefits Postretirement Benefits Obligations and Funded Status December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 128.9 $ 173.3 $ 3.2 $ 3.5 Service cost — — 0.5 0.5 Interest cost 6.5 5.1 0.3 0.3 Actuarial loss (gain) 7.9 (41.1) 0.5 0.4 Benefits paid (7.7) (8.4) (0.2) (0.9) Settlements/Curtailments gain — — (0.2) (0.6) Projected benefit obligation at end of year $ 135.6 $ 128.9 $ 4.1 $ 3.2 Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) $ 135.6 $ 128.9 $ 2.9 $ 2.3 Change in Plan Assets Fair value of plan assets at beginning of year $ 119.4 $ 166.2 $ — $ — Actual return on plan assets 11.3 (39.5) — — Employer contributions 8.1 1.1 1.0 0.9 Benefits paid (7.7) (8.4) (1.0) (0.9) Fair value of plan assets at end of year $ 131.1 $ 119.4 $ — $ — Funded status (Fair value of plan assets less PBO) $ (4.5) $ (9.5) $ (4.1) $ (3.2) For the year ended December 31, 2023, the actuarial loss is primarily due to declining discount rates and the decision to terminate the plan, which resulted in the adoption of plan termination assumptions that results in an increase to the liability. These liability losses were offset slightly by asset returns greater than expected. For the year ended December 25, 2022, the actuarial gain is primarily a result of the difference in the expected long-term rate of return compared to the actual return on plan assets. The accumulated benefit obligation exceeds the fair value of the pension plan assets. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 Current liabilities $ (0.1) $ (0.1) $ (0.6) $ (0.4) Noncurrent liabilities (4.4) (9.4) (3.5) (2.8) Net amount recognized $ (4.5) $ (9.5) $ (4.1) $ (3.2) As of December 31, 2023, we utilized the Society of Actuaries’ base MP-2021 mortality projection scale without adjustment, resulting in an immaterial increase in plan benefit obligation and ongoing expenses. As of December 25, 2022, we utilized an aggregate Pri-2012 mortality table with the Society of Actuaries’ MP-2021 projection scale and an adjustment to reflect increased rates of mortality subsequent to the Society of Actuaries’ MP-2021 projection scale, resulting in an immaterial decrease in plan benefit obligation and ongoing expenses. The amounts in accumulated other comprehensive loss on the Consolidated Balance Sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In U.S. Dollars in millions) Pension Benefits Postretirement Benefits Net actuarial loss at December 26, 2021 $ 7.2 $ 0.4 Recognition of actuarial loss (0.2) (0.4) Current year actuarial loss 5.8 0.3 Current year net actuarial gain due to curtailment — (0.3) Net actuarial loss at December 25, 2022 $ 12.8 $ — Recognition of actuarial loss (2.9) (0.3) Current year actuarial loss 3.6 0.5 Net actuarial loss at December 31, 2023 $ 13.5 $ 0.2 Components of net periodic cost (benefit) were as follows: Components of Net Periodic Cost (Benefit) Pension Benefits Postretirement Benefits (U.S. Dollars presented in millions) 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 0.5 $ 0.5 $ 0.4 Interest cost 6.5 5.1 4.7 0.3 0.3 0.2 Expected return on plan assets (7.1) (7.3) (7.5) — — — Recognition of actuarial losses 2.9 0.2 — — 0.7 0.2 Settlement/Curtailment loss/(gain) — — — 0.3 (0.3) — Net periodic cost (benefit) $ 2.3 $ (2.0) $ (2.8) $ 1.1 $ 1.2 $ 0.8 Assumptions Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 Weighted-average assumptions used to determine benefit obligations at balance sheet date: Discount rate 4.8 % 5.2 % 3.0 % 9.2 % 9.5 % 7.8 % Weighted-average assumptions used to determine net cost (benefit) for years ended: Discount rate 5.2% 3.0% 2.7% 9.4% 8.9% 7.0 % Expected long-term rate of return on plan assets 3.8% 6.2% 4.5% —% —% —% Plan Assets The fair value of the pension assets by major category of plan assets as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) Total as of 2023 2022 Collective trusts: Cash and cash equivalents $ 23.2 $ 5.4 Equity 28.5 31.0 Fixed income 73.6 76.6 Multi-strategy hedge funds 3.0 3.4 Real estate 2.8 3.0 Total $ 131.1 $ 119.4 A reconciliation of Level 3 measurements was as follows: Group annuity/ (U.S. Dollars presented in millions) 2023 2022 Beginning of year $ — $ 4.8 Assets liquidated — (4.8) End of year $ — $ — Our defined benefit plan Master Trust owns a variety of investment assets. All of these investment assets, except for group annuity/insurance contracts which were liquidated during our 2022 fiscal year as shown in the table above, are measured using net asset value per share as a practical expedient per ASC 820. Following the retrospective adoption of ASU 2015-07 (Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share) we excluded all investments measured using net asset value per share in the amount of $131.1 million and $119.4 million as of December 31, 2023 and December 25, 2022, respectively, from the tabular fair value hierarchy disclosure. The terms and conditions for redemptions vary for each class of the investment assets valued at net asset value per share as a practical expedient. Real estate assets may be redeemed quarterly with a 105 day redemption notice period. Investment assets in multi-strategy hedge funds have a 1-year lockup with a 95 day redemption notice period. Equity, fixed income and cash and cash equivalents have no specified redemption frequency and notice period and may be redeemed daily. As of December 31, 2023, we did not have an intent to sell or otherwise dispose of these investment assets at prices different than the net asset value per share. Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. The defined benefit asset allocation policy of the plan allows for an equity allocation of up to 75 percent, a fixed income allocation of 25 percent to 100 percent, a cash allocation of up to 25 percent and other investments of up to 20 percent. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure. Our 2024 expected blended long-term rate of return on plan assets of 3.8 percent was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants. The asset allocation for plan investments has shifted to mirror the revised expected timing of the disbursement of plan assets in conjunction with the plan termination. Estimated Future Retirement Benefit Payments The following retirement benefit payments are expected to be paid by the respective plans: (U.S. Dollars presented in millions) Pension Postretirement 2024 $ 47.6 $ 0.5 2025 $ 7.2 $ 0.5 2026 $ 7.2 $ 0.4 2027 $ 7.2 $ 0.4 2028 $ 7.1 $ 0.4 Years 2029-2033 $ 33.7 $ 2.5 Estimated future retirement benefit payments listed are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to certain participants. Defined Contribution Plan Contributions We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions by the Company related to these plans amounted to $18.2 million, $14.0 million, and $15.3 million in 2023, 2022 and 2021, respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Purchase Obligations Purchase obligations of the Company as of December 31, 2023 were $38.3 million, of which $25.6 million is due within one year. Purchase obligations include contracts for selling and administrative services and capital expenditures. |
Contingencies and Accrued Losse
Contingencies and Accrued Losses | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Accrued Losses | Contingencies and Accrued Losses Product Warranties We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the years ended 2023, 2022 and 2021. (U.S. Dollars presented in millions) 2023 2022 2021 Reserve balance at the beginning of the year $ 11.2 $ 7.0 $ 5.5 Provision for warranties issued 32.7 39.6 28.1 Settlements made (in cash or in kind) (31.0) (35.4) (26.6) Reserve balance at end of year $ 12.9 $ 11.2 $ 7.0 Litigation The Company is a defendant in lawsuits that are ordinary routine litigation matters incidental to our business and operations. In addition, other matters, including tax assessments, audits, claims and governmental investigations and proceedings covering a wide range of matters are pending against us. It is not possible to predict the outcome of the pending actions, and, as with any such matters, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’s results of operations, and where appropriate, these actions are being vigorously contested. Accordingly, the Company believes the likelihood of material loss is remote. However, such matters are subject to inherent uncertainties and unfavorable rulings or other events could occur. The Company regularly undergoes tax audits in various jurisdictions in which our products are sold or manufactured. In the future, such costs or an unfavorable outcome could have a material impact on our consolidated results of operations. Following an audit for the 2018 tax year, the Mexican tax administration service, the Servicio de Administración Tributaria, (the “SAT”), issued a tax assessment in the amount of approximately $54.9 million to our subsidiary, Woodcrafters Home Products, S. de R.L. de C.V., for allegedly failing to make certain tax payments and to export timely certain merchandise. The Company disputed these findings and the SAT annulled their decision on January 11, 2024. In order to prevent the 2018 tax year from further audit by the SAT, the Company has filed an action to declare this annulment final in the specialized court of trade and customs in Monterrey, Nuevo Leon, Sala Especializada en Materia de Comercio Exterior y Auxiliar – Noreste, Tribunal Federal de Justicia Administrativa. We have reserved an immaterial amount related to the 2018 tax year audit as our best estimate of our probable liability. While we cannot predict with certainty the outcome of any future review relating to the 2018 tax year or other open tax years, based on currently known information, we believe our risk of additional loss is remote and not estimable. Environmental We reserve for remediation activities to clean up potential environmental liabilities as required by federal and state laws based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties. There were no material environmental accruals as of December 31, 2023 and December 25, 2022. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program On May 9, 2023, we announced our authorization of a stock repurchase program under which we may repurchase up to $50.0 million of MasterBrand common stock over a twenty-four month period at management’s discretion for general corporate purposes. As a result of this authorization, we may repurchase shares from time to time through open market purchases, privately-negotiated transactions, block trades or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of our purchases will depend upon prevailing market conditions, our available capital resources, our financial and operational performance, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During fiscal 2023 we repurchased 1,874,806 shares of our common stock under this program at a cost of approximately $22.0 million, or an average of $11.73 per share. As of December 31, 2023, $28.0 million remained authorized for purchase under our stock repurchase program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Total accumulated other comprehensive loss consists of net income and other changes in business equity from transactions and other events from sources other than stockholders. It includes currency translation gains and losses, realized 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 were as follows: (U.S. Dollars presented in millions) Foreign Derivative Pension and Other Accumulated Balance at December 27, 2020 $ 2.8 $ 2.5 $ (13.0) $ (7.7) Amounts classified into accumulated other comprehensive (loss) income . (0.9) 0.5 7.1 6.7 Amounts reclassified into earnings — (2.9) — (2.9) Net current period other comprehensive (loss) income (0.9) (2.4) 7.1 3.8 Balance at December 26, 2021 $ 1.9 $ 0.1 $ (5.9) $ (3.9) Amounts classified into accumulated other comprehensive (loss) income (9.9) 7.2 (4.5) (7.2) Amounts reclassified into earnings — (4.5) 1.1 (3.4) Net current period other comprehensive (loss) income (9.9) 2.7 (3.4) (10.6) Balance at December 25, 2022 $ (8.0) $ 2.8 $ (9.3) $ (14.5) Amounts classified into accumulated other comprehensive (loss) income. 12.1 9.6 (3.1) 18.6 Amounts reclassified into earnings — (10.2) 2.4 (7.8) Net current period other comprehensive (loss) income 12.1 (0.6) (0.7) 10.8 Balance at December 31, 2023 $ 4.1 $ 2.2 $ (10.0) $ (3.7) The amounts recorded in accumulated other comprehensive loss for the years ended December 31, 2023, December 25, 2022, and December 26, 2021 were as follows: (U.S. Dollars presented in millions) Details about Accumulated Other 2023 2022 2021 Foreign currency translation adjustments $ 12.1 $ (9.9) $ (0.9) — — — Tax expense $ 12.1 $ (9.9) $ (0.9) Net of tax Cash flow hedges Unrealized holding gains arising during period $ 9.6 $ 7.2 $ 0.5 — — — Tax expense $ 9.6 $ 7.2 $ 0.5 Net of tax Pension and Other Postretirement Plans items Net actuarial (losses) gains arising during period $ (4.1) $ (6.1) $ 9.4 1.0 1.6 (2.3) Tax benefit (expense) $ (3.1) $ (4.5) $ 7.1 Net of tax Total amounts recorded in accumulated other comprehensive loss for the period $ 18.6 $ (7.2) $ 6.7 Net of tax The reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2023, December 25, 2022, and December 26, 2021 were as follows: (U.S. Dollars presented in millions) Details about Accumulated Other 2023 2022 2021 Affected Line Item in the Consolidated Statements of Income Cash flow hedges Reclassification adjustment for gains included in net income $ (10.2) $ (4.5) $ (2.9) Cost of products sold — — — Tax expense $ (10.2) $ (4.5) $ (2.9) Net of tax Pension and Other Postretirement Plans items Amortization of net actuarial loss and curtailment $ 3.2 $ 1.7 $ — Other expense, net (0.8) (0.6) — Tax benefit $ 2.4 $ 1.1 $ — Net of tax Total reclassifications for the period $ (7.8) $ (3.4) $ (2.9) Net of tax |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The accompanying financial statements are presented on a consolidated basis as the company is a standalone public company. Certain information from prior to the Separation on December 14, 2022 was derived from Fortune Brands consolidated financial statements and accounting records. Transactions between MasterBrand and Fortune Brands prior to the Separation have been presented as related party transactions in the accompanying consolidated financial statements. After the Separation, Fortune Brands is not considered a related party of MasterBrand, Inc. Fortune Brands performed, and continues to perform in some areas as part of a transitional services agreement, certain corporate functions, including information technology, finance, executive, human resources, supply chain, internal audit, governance and legal services on behalf of the Company. The expenses associated with these functions have been allocated based on direct usage or benefit where specifically identifiable, with the remainder allocated on a proportional cost allocation method based primarily on net sales, associate headcount, or number of facilities, as applicable. Prior to the Separation, total expenses allocated for the 2022 and 2021 years were $92.5 million and $62.0 million, respectively, and such amounts are primarily included within selling, general and administrative expenses in the Consolidated Statements of Income. These amounts include costs of $72.4 million and $42.3 million for the 2022 and 2021 years, respectively, that were not historically allocated to us as part of Fortune Brands’ normal periodic management reporting process. We consider the expense methodology and resulting allocation to be reasonable for all periods presented; however, the allocations may not be indicative of actual expenses that would have been incurred had we operated as an independent, publicly-traded company for the periods presented. Actual costs that we may have incurred had we been a standalone company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by our associates and strategic decisions made in areas such as manufacturing, selling and marketing, research and development, information technology and infrastructure. Cash Management Fortune Brands utilized a central approach to treasury management, and prior to the Separation, we historically participated in related cash pooling arrangements to maximize the availability of cash for general operating and investing purposes. Under these cash pooling arrangements in the United States, cash balances were remitted regularly from our accounts. Our cash and cash equivalents on our consolidated balance sheets represent cash balances held in bank accounts owned by the Company and its subsidiaries. Stock-Based Compensation Prior to the Separation, our associates participated in Fortune Brands stock-based compensation plans, the costs of which have been allocated and recorded in cost of products sold, and selling, general and administrative expenses in the consolidated statements of income. Prior to the Separation, stock-based compensation costs related to our associates for 2022 and 2021 were $10.9 million and $9.3 million, respectively. All of these amounts, except for $0.7 million of incremental compensation expense recognized in the fourth quarter of 2022, as described in Note 17, "Stock-Based Compensation," are included within the total expenses allocated, as noted above. Related Party Sales There were no material sales to or from Fortune Brands or its subsidiaries for any of the periods presented. Balances Due to and From Related Parties Prior to Separation, the related party note receivable balance was the amount owed to the Company and its subsidiaries from Fortune Brands. We had written interest-bearing loan agreements in place with Fortune Brands. The receivable balance consisted of excess cash remitted to the Parent’s cash pooling arrangements, net of expenses incurred by us which were paid for by Fortune Brands. The loan agreements were to mature on April 14, 2026, but all amounts under these agreements were settled prior to the Separation. The receivable balance earned interest at a rate in-line with the Fortune Brands’ short-term borrowing rate, which was between 0.95 percent and 4.80 percent during 2022. Prior to Separation, the related party note payable balance was a note payable between a subsidiary of the Company and Fortune Brands. The balance comprised of a revolving loan that was due at the maturity of the agreement on April 15, 2026, but was settled prior to the Separation. The note bore interest at rates ranging between 1.20 percent and 5.05 percent during 2022. The Company received interest income on related party receivables of $14.4 million and $5.2 million for 2022 and 2021 , respectively. Additionally, the Company incurred interest expense on intercompany payables and notes of $1.5 million and $0.6 million for 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Prior to the Separation, certain of Cabinets’ associates participated in stock-based compensation plans sponsored by Fortune Brands. In connection with the Separation, stock compensation awards granted under the Fortune Brands’ Long-Term Incentive Plans were adjusted as follows: • Vested and unvested stock options were adjusted so that the grantee holds options to purchase MasterBrand, Inc. common shares. • The adjustment to the stock options was intended to generally preserve the intrinsic value of each original option grant and the ratio of the exercise price to the fair market value of Fortune Brands’ common shares on December 14, 2022 . • For unvested performance share awards, progress against the targets was projected as of the conclusion of our fiscal third quarter of 2022. The unvested performance share awards were then converted into awards of restricted stock units. • Unvested restricted stock awards were replaced with adjusted, substitute awards for restricted shares or units, as applicable, of MasterBrand, Inc. common shares. The new awards of restricted stock were intended to generally preserve the intrinsic value of the original award determined as of December 14, 2022. • Vesting periods of all awards described above were unaffected by the adjustment and substitution. Subsequent to the Separation, certain of the Company’s associates participate in a stock-based compensation plan sponsored by MasterBrand, Inc. Our stock-based compensation plan, the MasterBrand, Inc. 2022 Long-Term Incentive Plan (the “Plan”), includes stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. As of December 31, 2023, approximately 9.7 million shares of common stock remained authorized for issuance under the Plan. In addition, shares of common stock that were granted and subsequently expired, terminated, cancelled or forfeited, or were used to satisfy the required withholding taxes with respect to existing awards under the Plan may be recycled back into the total numbers of shares available for issuance under the Plan. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares of MasterBrand, Inc. Stock-based compensation expense, including expense recognized under both the Fortune Brands’ Long-Term Incentive Plans and the MasterBrand, Inc. 2022 Long-Term Incentive Plan, was as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Performance awards $ 1.2 $ 3.2 $ 2.3 Restricted stock units 15.6 6.2 6.2 Stock option awards 1.0 1.5 0.8 Total pre-tax expense 17.8 10.9 9.3 Tax benefit 4.2 3.0 2.0 Total after tax expense $ 13.6 $ 7.9 $ 7.3 Compensation expense for 2022 included the recognition of $0.7 million of incremental compensation expense in the fourth quarter of 2022 resulting from the adjustment and substitution of Fortune Brands awards settled in MasterBrand, Inc. stock. Performance Share Awards Performance share awards were granted to officers and certain associates of the Company and represent the right to earn shares of MasterBrand, Inc. common stock based on the achievement of their company-wide non-GAAP performance conditions, including average adjusted return on net tangible assets and cumulative adjusted EBITDA during the three-year performance period. Compensation cost is amortized into expense over the performance period, which is generally three years, and is based on the probability of meeting performance targets. The fair value of each performance share award is based on the average of the high and low stock price on the date of grant. Upon Separation, the progress against the targets for all outstanding performance share awards was projected as of the conclusion of our fiscal third quarter of 2022, and were converted into awards of Restricted Stock Units, and the v esting periods of the performance share awards were unaffected by the adjustment and substitution. The fair value of performance share awards that vested during 2022 was $1.5 million ( 245,111 shares, as converted to MasterBrand, Inc. common stock). As of December 25, 2022, there were no unvested performance share awards outstanding that had been awarded under the Fortune Brands’ Long-Term Incentive Plans. During the first quarter of fiscal 2023, we granted 411,647 performance share awards. The following table summarizes activity with respect to performance share awards outstanding under the MasterBrand, Inc. Plan: Number of Performance Share Awards Weighted- Non-vested at December 25, 2022 — $ — Granted 411,647 $ 9.91 Vested (9,332) $ 10.71 Forfeited — $ — Non-vested at December 31, 2023 402,315 $ 9.92 The remaining unrecognized pre-tax compensation cost related to PSAs at December 31, 2023 was approximately $2.8 million (based on the current estimated probability of meeting performance targets), and the weighted-average period of time over which this cost will be recognized is 2.09 years. The fair value of PSAs that vested during 2023 was $0.1 million. Restricted Stock Units Restricted stock units (“RSUs”) have been granted to officers and certain associates of the Company and represent the right to receive shares of MasterBrand, Inc. common stock subject to continued employment through each vesting date. RSUs generally vest ratably over a three-year period (i.e., 1/3 vests on the 1st anniversary of the grant date, 1/3 vests on the 2nd anniversary of the grant date, and 1/3 vests on the 3rd anniversary of the grant date). In addition, certain associates can elect to defer receipt of a portion of their RSU awards upon vesting. Compensation cost is recognized over the service period. We calculate the fair value of each RSU granted by using the average of the high and low share prices on the date of grant. The following table summarizes activity with respect to RSUs outstanding under the MasterBrand, Inc. Plan: Number of Weighted- Non-vested at December 25, 2022 3,924,976 $ 8.98 Granted 1,254,704 $ 10.28 Vested (1,019,865) $ 9.19 Forfeited (160,496) $ 9.19 Non-vested at December 31, 2023 3,999,319 $ 9.32 The remaining unrecognized pre-tax compensation cost related to RSUs at December 31, 2023 was approximately $19.3 million, and the weighted-average period of time over which this cost will be recognized is 1.78 years. The fair value of RSUs that vested (including RSUs that had been awarded under the Fortune Brands’ Long-Term Incentive Plans that vested prior to the Separation) during 2023, 2022 and 2021 was $10.6 million, $6.1 million and $6.6 million, respectively. Stock Option Awards Stock options have been granted to officers and certain associates of the Company and represent the right to purchase shares of MasterBrand, Inc. common stock subject to continued employment through each vesting date. Stock options granted under the Plan generally vest over a three-year period and generally have a maturity of ten years from the grant date. All stock-based compensation to associates is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. MasterBrand, Inc. did not grant any stock options in fiscal 2023 or 2022, subsequent to the Separation. The fair value of MasterBrand, Inc. options granted in future periods will be estimated at the date of grant using a Black-Scholes option pricing model with assumptions for current expected dividend yield, expected volatility, risk-free interest rate, and an expected term. A summary of MasterBrand, Inc. stock option activity for the year ended December 31, 2023 was as follows: Options Weighted- Outstanding at December 25, 2022 1,334,292 $ 9.36 Granted — $ — Exercised — $ — Expired/forfeited — $ — Outstanding at December 31, 2023 1,334,292 $ 9.36 Options outstanding and exercisable at December 31, 2023 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Options Weighted- Weighted- Options Weighted- $5.92 to $10.76 1,334,292 6.60 $ 9.36 1,022,298 $ 8.94 (a) At December 31, 2023, the aggregate intrinsic value of options outstanding was $7.3 million (as compared to $0.2 million at December 25, 2022 ) . (b) At December 31, 2023 the weighted-average remaining contractual life of options exercisable was 6.2 years (as compared to 6.7 years at December 25, 2022 ) and the aggregate intrinsic value of options exercisable was $6.0 million (as compared to $0.2 million at December 25, 2022 . The remaining unrecognized compensation cost related to unvested awards at December 31, 2023 was $0.4 million , and the weighted-average period of time over which this cost will be recognized is 0.74 years. The fair value of options that vested (including stock options that had been awarded under the Fortune Brands’ Long-Term Incentive Plans that vested prior to the Separation) during the years ended 2023, 2022 and 2021 was $1.4 million , $0.8 million and $0.7 million , respectively. No options were exercised in 2023 or 2022. The intrinsic value of stock options exercised in 2021 was $2.6 million |
SEC Schedule, Article 12-09, Va
SEC Schedule, Article 12-09, Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure | For the years ended December 31, 2023, December 25, 2022 and December 26, 2021 (U.S. Dollars presented in millions) Balance at Charges (a) Write-offs and Deductions (b) Balance at 2023: Allowance for cash discounts and sales allowances $ 5.6 $ 73.5 $ 74.2 $ 4.9 Customer program allowance 58.3 146.5 161.8 43.0 Valuation allowance for deferred tax assets 1.2 (0.2) — 1.0 2022: Allowance for cash discounts and sales allowances $ 5.6 $ 85.2 $ 85.2 $ 5.6 Customer program allowance 55.3 141.0 138.0 58.3 Valuation allowance for deferred tax assets 1.2 — — 1.2 2021: Allowance for cash discounts and sales allowances $ 5.9 $ 66.5 $ 66.8 $ 5.6 Customer program allowance 37.2 157.1 139.0 55.3 Valuation allowance for deferred tax assets 1.3 (0.1) — 1.2 (a) Charges related to the allowance for cash discounts and sales allowances and the customer program allowance are classified as a reduction in net sales. Charges related to the valuation allowance for deferred tax assets are classified as income tax expense. (b) Net of immaterial foreign currency impact. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pay vs Performance Disclosure | |||
NET INCOME | $ 182 | $ 155.4 | $ 182.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements are presented on a consolidated basis as the Company is a standalone public company. We have historically existed and functioned as a reporting segment of the consolidated business of Fortune Brands up until the Separation on December 14, 2022, at which time we became a standalone public company. Certain information from prior to the Separation was derived from Fortune Brands’ consolidated financial statements and accounting records. The consolidated f inancial statements and notes to consolidated financial statements as of and subsequent to December 14, 2022, the date of the Separation, reflect the consolidated financial position, results of operations and cash flows for MasterBrand as an independent company. Prior to the Separation, the consolidated financial statements and notes to consolidated financial statements were prepared on a carve-out basis using the financial statements and accounting records of Fortune Brands. The carve-out basis financial statements represent the historical financial position, results of operations, and cash flows of MasterBrand as they were historically managed in accordance with GAAP and reflect significant assumptions and allocations. The carve-out financial statements may not include all expenses that would have been incurred had MasterBrand existed as a standalone entity. Our consolidated financial statements are based on a 52- or 53-week fiscal year ending on the last Sunday in December in each calendar year. Fiscal 2023 consisted of 53 weeks ended on December 31, 2023 . Fiscal 2022 and 2021 both consisted of 52 weeks ending on December 25, 2022 and December 26, 2021, respectively. References herein to years are to our fiscal years. The consolidated financial statements have been prepared in accordance with GAAP. The Company has one operating segment based on the nature of products the Company sells, its production and distribution model, the internal management structure and information that is regularly reviewed by the chief executive officer (“CEO”), who is the chief operating decision maker, for the purpose of assessing performance and allocating resources. The consolidated statements of income include all revenues and costs directly attributable to our business, including costs for facilities, functions, and services we utilize. The consolidated statements of income also include an allocation of expenses related to certain Fortune Brands corporate functions through the Separation, including information technology, finance, executive, human resources, supply chain, internal audit, governance and legal services. These expenses have been allocated based on direct usage or benefit where specifically identifiable, with the remainder allocated on a proportional cost allocation method based primarily on net sales, associate headcount, or number of facilities, as applicable. Prior to the Separation, total expenses allocated for the 2022 and 2021 years were $92.5 million and $62.0 million respectively, of which $72.4 million and $42.3 million, respectively, was not previously allocated to us. Such amounts are primarily included within selling, general and administrative expenses in the consolidated statements of income. We consider the expense methodology and resulting allocation to be reasonable; however, the allocations may not be indicative of actual expenses that would have been incurred had we operated as an independent, publicly-traded company in the prior year periods presented. Actual costs that we may have incurred during the time period when we were not a standalone company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by our associates and strategic decisions made in areas such as manufacturing, selling and marketing, research and development, information technology and infrastructure. Accordingly, historical allocations may not be indicative of future costs we incur operating as an independent, publicly-traded company. The consolidated statements of income also include $2.4 million and $15.4 million of costs related to the separation from Fortune Brands for the years ended December 31, 2023 and December 25, 2022, respectively. The Separation-related costs include advisory fees, professional fees and other transaction related costs incurred directly by us. These costs are included within selling, general and administrative expenses. The income tax amounts in the consolidated financial statements have been calculated on a separate-return method and presented as if our operations were separate taxpayers in the respective jurisdictions. For the period prior to the Separation in 2022, including the Separation, federal and state income tax payments, withholding taxes, and refunds were paid and received by Fortune Brands on our behalf. The net income taxes paid on our behalf are payable to Fortune Brands, as provided in the indemnification provisions of the Tax Allocation Agreement. Accordingly, the net income tax payable of $32.6 million to Fortune Brands as of December 25, 2022, was recorded in accounts payable on the Consolidated Balance Sheets and settled in 2023. Following the Separation, a limited number of services that Fortune Brands provided to us, or we provided to them, prior to the Separation continue to be provided for a period of time under a Transition Services Agreement. Throughout fiscal 2023, we have incurred certain costs as a standalone public company, including services provided by our own resources or through third-party service providers relating to corporate functions, including information technology, finance, executive, human resources, supply chain, internal audit, governance, and legal services, as well as ongoing additional costs associated with operating as an independent, publicly-traded company. Fortune Brands utilized a central approach to treasury management, and prior to the Separation, we historically participated in related cash pooling arrangements. Our cash and cash equivalents on our consolidated balance sheets represent cash balances held in bank accounts owned by the Company and its subsidiaries. Prior to the Separation, we had no third-party borrowings, and all borrowings attributable to our business and due to Fortune Brands were recorded as “related party payable” in our consolidated balance sheets and classified as current or noncurrent based on loan maturity dates. Fortune Brands’ third-party debt and related interest expense were not attributed to us as we were not the legal obligor of the debt, and the borrowings were not specifically identifiable to us. However, in connection with the Separation, we completed a financing transaction, which resulted in additional interest expense beginning in the fourth quarter of 2022. See Note 11, "Debt," for additional information. For more information regarding related party transactions with Fortune Brands, see Note 20, "Related Party Transactions." |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue for the sale of goods based on its assessment of when control transfers to our customers, which generally occurs upon shipment or delivery of the products. See Note 3, "Revenue from Contracts with Customers," for additional information. Customer Program Costs Customer programs and incentives are a common practice in our business. Our business incurs customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. These costs are recognized as either a reduction of revenue or within the selling, general and administrative expenses category, depending on the underlying nature of the cost. |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes all costs to make products saleable, including the cost of materials, as well as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses |
Stock-based Compensation | Stock-based Compensation Some of our associates participate in stock-based compensation plans sponsored by the Company. Stock based compensation plans may include stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an associate is required to provide services in exchange for the award. Stock-based compensation expense is recorded net of estimated forfeitures. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance share award is based on the average of the high and low share prices on the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the average of the high and low share prices on the date of grant. See Note 17, "Stock-Based Compensation," for additional information. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the AOCI caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into the functional currency with resulting transaction gains or losses recorded in other expense, net. |
Income Taxes | Income Taxes The income tax expense in our Consolidated Financial Statements has been determined on a stand-alone return basis in accordance with ASC Topic 740, Income Taxes, which requires the recognition of income taxes using the liability method. The tax provision and current and deferred tax balances have been prepared on a separate-return basis as if the Company were a separate filer. The income taxes of the Company, as presented in the consolidated financial statements, may not be indicative of the income taxes that the Company will incur in the future. For taxable periods prior to and including the Separation, our operations were included in the consolidated U.S. federal and certain state and local income tax returns of Fortune Brands, as applicable. The Company filed separate foreign income tax returns. Post-Separation, our income tax provisions are calculated based on the Company’s operating footprint, as well as our tax return elections and assertions. Income tax liabilities related to unrecognized tax benefits (“UTBs”), including interest and penalties, are reported as a liability within the Consolidated Balance Sheets based upon tax authorities’ ability to assert the Company may be legally liable for UTBs. For taxable periods ended after the Separation, the Company will file a consolidated U.S. federal income tax return and various state and local income tax returns. The Company’s foreign income tax returns will continue to be filed on a full-year basis. The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The determination of the Company’s income tax positions involves consideration of uncertainties, changing fiscal policies, tax laws, court rulings, regulations, and related legislation. Accordingly, significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, unrecognized tax benefits and the valuation allowance recorded against deferred tax assets. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The recognition and measurement of deferred tax asset and liability balances, and the corresponding deferred tax expense or benefit, are determined for each tax-paying component in each relevant jurisdiction. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the new tax rate is enacted. The Company recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related appeals or litigation processes, if any. We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50 percent of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50 percent likelihood of being sustained, no tax benefit is recorded. Considerable management judgment is necessary to assess the inherent uncertainties related to the interpretations of complex tax laws, regulations, and taxing authority rulings. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. As of each balance sheet date, unrecognized tax benefits are reassessed and adjusted if the Company’s judgment changes as a result of new information, and changes in facts or circumstances. Changes in recognition and measurement estimates are recorded in the Consolidated Statements of Income and Consolidated Balance Sheets in the period in which such changes occur. We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance in the period in which such changes occur, which would reduce the provision for income taxes. The Company recognizes Global Intangible Low-Taxed Income (“GILTI”) tax as a period cost. The Company recognizes tax-related interest and penalties as a component of income tax expense. |
Earnings Per Share | Earnings Per Share Earnings per common share is calculated by dividing net income attributable to MasterBrand by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. For comparative purposes, 2021 has been retroactively recast to reflect the effects of the changes in equity structure resulting from the Reorganization, Separation and Distribution and assumes the same basic weighted average shares. For years prior to the Separation, it is assumed that there are no dilutive securities as there were no stock-based awards of MasterBrand outstanding. See Note 5, "Earnings Per Share," for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. |
Allowances for Credit Losses | Allowances for Credit Losses Trade receivables are recorded at the stated amount, less allowances for discounts and credit losses. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency) or discounts related to early payment of accounts receivable by our customers. The allowances for credit losses include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for expected customer defaults on a general formula basis when it cannot yet be associated with specific customers. Expected credit losses are estimated using various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment Long-lived Assets A long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Examples of events or circumstances indicating that its carrying amount may not be recoverable include changes in volume, margin, customers and the industry. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis. |
Held for Sale | Held for Sale Assets and liabilities to be disposed of by sale ("disposal groups") are reclassified into other current assets and other current liabilities on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met, including when management, having the requisite authority, have committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value. |
Leases | Leases Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use our incremental borrowing rate in determining the present value of future lease payments. Our incremental borrowing rates include estimates related to the impact of collateralization and the economic environment where the leased asset is located. The operating lease assets also include any prepaid lease payments and initial direct costs incurred, but exclude lease incentives received at lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 32 years, some of which may include options to extend or terminate the lease. Operating lease expense is recognized on a straight-line basis over the lease term. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Additionally, for certain equipment leases, we apply a portfolio approach and account for multiple lease components as a single lease component. Certain lease agreements include variable rental payments, including rental payments adjusted periodically for inflation. Variable rental payments are expensed during the period they are incurred and therefore are excluded from our lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets We account for goodwill and other intangible assets in accordance with the provisions of ASC 350, Intangibles-Goodwill and Other, and account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill Goodwill is tested for impairment at least annually in the fourth quarter and written down when impaired. An interim impairment test is performed if an event occurs or conditions change that would more likely than not reduce the fair value of the reporting unit below the carrying value. To evaluate the recoverability of goodwill, we first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. Qualitative factors include changes in volume, margin, customers and the industry. If it is deemed more likely than not that goodwill for a reporting unit is impaired, we will perform a quantitative impairment test using a weighting of the income and market approaches. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. Assessing qualitative factors during both 2023 and 2022 would not have resulted in us performing a quantitative impairment test. In both 2023 and 2022, we elected to bypass the qualitative testing and performed quantitative tests for all goodwill. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates and then discounting the future cash flows at a market-participant-derived discount rate based on the weighted-average cost of capital. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine the reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss based on that difference. The significant assumptions that are used to determine the estimated fair value for goodwill impairment testing include the following: third-party market forecasts of U.S. new home starts and home repair and remodel spending; management’s sales, operating income and cash flow forecasts; peer company EBITDA earnings multiples; the market-participant-based discount rate; and the perpetuity growth rate. Our estimates of reporting unit fair values are based on certain assumptions that may differ from our historical and future actual operating performance. Specifically, assumptions related to growth in the new construction and repair and remodel segments of the U.S. home products markets drive our forecasted sales growth. The market forecasts are developed using independent third-party forecasts from multiple sources. In addition, estimated future operating income and cash flow consider our historical performance at similar levels of sales volume and management’s future operating plans as reflected in annual and long-term plans that are reviewed and approved by management. As a result of the annual impairment assessments performed for 2023, 2022 and 2021, there were no goodwill impairments. Indefinite-Lived Intangible Assets Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The significant assumptions that are used to determine the estimated fair value for indefinite-lived intangible assets upon acquisition and subsequent impairment testing are the market-participant discount rates based on the weighted-average cost of capital; forecasted revenue growth rates; and the assumed royalty rates. The market-participant discount rate used in estimating the fair value of future cash flows is dependent on comparable company prices and other relevant information generated by market transactions, as well as broader market assumptions, such as U.S. treasury rates. Our cash flow projections used to assess impairment of our goodwill and other intangible assets are significantly influenced by our projection for the U.S. home products market, our annual operating plans finalized in the fourth quarter of each fiscal year, and our ability to execute on various planned cost reduction initiatives supporting operating income improvements. Our projection for the U.S. home products market is inherently uncertain and is subject to a number of factors, such as employment, home prices, interest rates, credit availability, new home starts and the rate of home foreclosures. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. We may also elect to bypass the qualitative testing and proceed directly to the quantitative testing. In both 2023 and 2022, we elected to bypass the qualitative testing and tested all of our indefinite-lived tradenames quantitatively. We measure fair value of our indefinite-lived tradenames using the relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The determination of fair value using this technique requires the use of estimates and assumptions related to forecasted revenue growth rates, the assumed royalty rates and the market-participant discount rates. During both our 2023 and 2022 annual impairment tests, we elected to quantitatively test all of our indefinite-lived tradenames. During our 2021 annual impairment test, of our $231.8 million indefinite lived tradenames, we tested $180.7 million quantitatively, and the remainder was assessed using qualitative factors. We recognized impairment charges, which are classified as “Asset impairment charges” on our consolidated statements of income, related to certain indefinite-lived tradenames of $46.4 million in 2022. We did not recognize any impairment charges related to indefinite-lived intangible assets in either fiscal 2023 or 2021. See Note 8, "Goodwill and Identifiable Intangible Assets," for additional information. Events or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: increases in discount rates, lower than forecasted revenues, actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived assets. |
Derivative Financial Instruments | Derivative Financial Instruments In accordance with ASC requirements for derivatives and hedging, we recognize all derivative contracts as either assets or liabilities on the balance sheet, and the measurement of those instruments is at fair value. We account for derivative instruments as follows: • Derivative instruments that are designated as cash flow hedges - The changes in the fair value of the derivative instrument are reported in other comprehensive income and are recognized in the consolidated statements of income when the hedged item affects earnings. In all periods presented, the recognized gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in cost of products sold on the consolidated statements of income. • Derivative instruments that are designated as fair value hedges - The gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in other expense, net on the consolidated statements of income. • Derivative instruments that are designated as net investment hedges |
Restructuring Actions | Restructuring Actions |
Pension and Postemployment Benefits Other than Pensions | Pension and Postretirement Benefits Other than Pensions We have a pension plan in the United States covering many of the Company’s associates. However, the plan has been frozen to new participants and benefit accruals were frozen for active participants on or before December 31, 2016. During 2023, the Board of Directors of MasterBrand, Inc. approved a plan to terminate the defined benefit pension plan. The termination and settlement process, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to take up to 24 months to complete, subject to receipt of customary regulatory approvals. During 2024, the Company expects to offer a lump-sum benefit payout option to certain plan participants. During 2025, we expect to complete the purchase of group annuity contracts that will transfer any remaining pension benefit obligation to an insurance company. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation—Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, turnover and mortality rates and health care cost trend rates. Actuarial gains or losses related to these assumptions represent the difference between actual and actuarially assumed experience. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in other expense, net to the extent they are in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation for each plan (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each fiscal year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. For postretirement benefits, our health care trend rate assumptions are based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior associate service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related associates. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 14, "Pension and Other Postretirement Plans," are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant. |
Insurance Reserves | Insurance Reserves We provide for expenses associated with workers’ compensation and product liability obligations when such amounts are probable and can be reasonably estimated. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability. |
Litigation Contingencies | Litigation Contingencies Our business is subject to risks related to threatened or pending litigation and we are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC Topic 450, Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss refers to gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to equity. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Issued and Adopted There are no recently issued accounting pronouncements that we have adopted that had a material impact on our financial position, results of operations or cash flows. Accounting Standards Issued, But Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Schedule of Property. Plant And Equipment, Useful Life | Estimated useful lives of the related assets are as follows: Buildings and improvements to leaseholds 1 to 40 years Machinery and equipment 1 to 20 years |
Revenue from Contract with Cust
Revenue from Contract with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels and by shipping location for 2023, 2022 and 2021. (U.S. Dollars presented in millions) 2023 2022 2021 Net Sales by Channel (a) Dealers (b) $ 1,446.5 $ 1,771.8 $ 1,583.4 Retailers (c) 967.0 1,173.9 1,012.4 Builders (d) 312.7 329.8 259.5 Net sales $ 2,726.2 $ 3,275.5 $ 2,855.3 Net Sales by Shipping Location United States $ 2,584.4 $ 3,086.8 $ 2,680.5 Canada 125.7 172.5 158.4 Mexico 16.1 16.2 16.4 Net sales $ 2,726.2 $ 3,275.5 $ 2,855.3 a) Net sales by channel presented in fiscal 2022 and 2021 have been reclassified to conform with the new format of this table, which is intended to provide a consolidated view of our net sales by channel and shipping location. Prior to this Annual Report on Form 10-K, net sales by channel was presented for our domestic sales only. b) Represents sales to domestic dealers whose end customers include builders, professional trades and home remodelers, inclusive of sales through our dealers’ respective internet website portals. c) Represents sales to domestic “Do-It-Yourself” retailers, including our two largest customers: 1) Lowe’s and 2) The Home Depot, inclusive of sales through their respective internet website portals. d) |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the allowance for the years ended December 31, 2023 and December 25, 2022 : (U.S. Dollars presented in millions) 2023 2022 Beginning balance $ 11.6 $ 2.5 Bad debt provision 1.9 12.1 Uncollectible accounts written off, net of recoveries (8.9) (3.0) Ending balance $ 4.6 $ 11.6 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | The components of other expense, net for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 were as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Pension and postretirement benefits other than pensions $ 2.9 $ (1.3) $ (2.0) Foreign currency losses 3.2 1.1 1.4 Other items, net (3.7) 0.8 1.2 Total other expense, net $ 2.4 $ 0.6 $ 0.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the fiscal years ended December 31, 2023 , December 25, 2022 , and December 26, 2021 : (U.S. Dollars presented in millions, except per share amounts) 2023 2022 2021 Numerator: Numerator for basic and diluted earnings per share - Net income $ 182.0 $ 155.4 $ 182.6 Denominator: Denominator for basic earnings per share - weighted average shares outstanding 127.8 128.0 128.0 Effect of dilutive securities - stock-based awards 2.1 1.1 — Denominator for diluted earnings per share - weighted average shares outstanding 129.9 129.1 128.0 Earnings per share: Basic $ 1.42 $ 1.21 $ 1.43 Diluted $ 1.40 $ 1.20 $ 1.43 |
Balance Sheet Information - (Ta
Balance Sheet Information - (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | Supplemental information on our year-end consolidated balance sheets is as follows: (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 Inventories: Raw materials and supplies $ 175.1 $ 292.1 Work in process 25.1 23.6 Finished products 49.6 57.4 Total inventories $ 249.8 $ 373.1 Property, plant and equipment: Land and improvements $ 31.8 $ 32.9 Buildings and improvements to leaseholds 304.0 304.0 Machinery and equipment 551.9 518.8 Construction in progress 36.6 37.7 Property, plant and equipment, gross 924.3 893.4 Less: accumulated depreciation 567.7 540.8 Property, plant and equipment, net of accumulated depreciation $ 356.6 $ 352.6 Accounts payable: Third party $ 149.7 $ 175.1 Fortune Brands (a) 1.7 44.1 Total accounts payable $ 151.4 $ 219.2 Other current liabilities: Accrued salaries, wages and other compensation $ 67.6 $ 49.0 Accrued restructuring 1.4 15.4 Accrued income and other taxes 18.5 14.3 Accrued product warranties 12.9 11.2 Other accrued expenses 63.9 70.6 Total other current liabilities $ 164.3 $ 160.5 (a) The payable to Fortune Brands of $44.1 million |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | Other information related to leases was as follows for the fiscal years ending: (U.S. Dollars presented in millions, except lease term and discount rate) December 31, December 25, December 26, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 17.3 $ 15.4 $ 14.7 Right-of-use assets obtained in exchange for operating lease obligations $ 23.9 $ 5.2 $ 35.8 Weighted average remaining lease term—operating leases 5.4 years 5.1 years 5.9 years Weighted average discount rate—operating leases 4.5 % 3.0 % 2.8 % |
Schedule of Aggregate Future Lease Payments Under Operating Leases | Total lease payments under non-cancellable operating leases as of December 31, 2023 are expected to be: (U.S. Dollars presented in millions) Fiscal Years Ending: 2024 $ 18.1 2025 13.5 2026 10.5 2027 8.7 2028 7.0 Thereafter 13.3 Total lease payments 71.1 Less imputed interest (8.7) Total $ 62.4 Reported as of December 31, 2023 Current operating lease liabilities $ 16.1 Operating lease liabilities (non-current) 46.3 Total $ 62.4 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the net carrying amount of goodwill was as follows: (U.S. Dollars presented in millions) Total Balance at December 26, 2021 $ 926.2 2022 translation adjustments (2.0) Balance at December 25, 2022 $ 924.2 2023 translation adjustments 0.9 Balance at December 31, 2023 $ 925.1 |
Schedule of Finite-Lived Intangible Assets | The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2023 and December 25, 2022 were as follows: As of December 31, 2023 As of December 25, 2022 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 184.2 $ — $ 184.2 $ 183.1 $ — $ 183.1 Amortizable intangible assets Tradenames 10.4 (10.4) — 10.3 (10.2) 0.1 Customer and contractual relationships 363.6 (212.3) 151.3 362.9 (196.8) 166.1 Patents/proprietary technology 11.0 (11.0) — 11.0 (10.5) 0.5 Total 385.0 (233.7) 151.3 384.2 (217.5) 166.7 Total identifiable intangibles $ 569.2 $ (233.7) $ 335.5 $ 567.3 $ (217.5) $ 349.8 |
Schedule of Indefinite-Lived Intangible Assets | The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2023 and December 25, 2022 were as follows: As of December 31, 2023 As of December 25, 2022 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 184.2 $ — $ 184.2 $ 183.1 $ — $ 183.1 Amortizable intangible assets Tradenames 10.4 (10.4) — 10.3 (10.2) 0.1 Customer and contractual relationships 363.6 (212.3) 151.3 362.9 (196.8) 166.1 Patents/proprietary technology 11.0 (11.0) — 11.0 (10.5) 0.5 Total 385.0 (233.7) 151.3 384.2 (217.5) 166.7 Total identifiable intangibles $ 569.2 $ (233.7) $ 335.5 $ 567.3 $ (217.5) $ 349.8 |
Schedule Of Finite Lived Assets, Fair Value Assumptions | The significant assumptions used to estimate the fair values of the tradenames impaired during the year ended December 25, 2022 were as follows: 2022 Unobservable Input Min Max Wtd Avg (a) Discount rate 11.6 % 12.6 % 12.1 % Royalty rate (b) 2.5 % 3.0 % 2.8 % Long-term revenue growth rate (c) 1.0 % 1.0 % 1.0 % 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. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Values of Foreign Exchange Derivative Instruments on the Consolidated Balance Sheets | The fair values of foreign exchange derivative instruments on the consolidated balance sheets as of December 31, 2023 and December 25, 2022 were: (U.S. Dollars presented in millions) Location December 31, 2023 December 25, 2022 Assets: Foreign exchange contracts Other current assets $ 3.0 $ 3.7 Total assets $ 3.0 $ 3.7 Liabilities: Foreign exchange contracts Other current liabilities $ 0.1 $ 0.5 Total liabilities $ 0.1 $ 0.5 |
Effects of Derivative Financial Instruments on the Consolidated Statements of Income | The effects of cash flow hedging financial instruments included within the consolidated statements of comprehensive income in 2023, 2022 and 2021 were as presented in the table below. When the hedged item affects earnings, amounts are reclassed out of accumulated other comprehensive loss and recognized as a component of cost of products sold. Amount Recognized in Statement of Comprehensive Income for Cash Flow Hedging Relationships (U.S. Dollars presented in millions) 2023 2022 2021 Foreign exchange contracts: Unrealized holding gains arising during period $ 9.6 $ 7.2 $ 0.5 Less: reclassification adjustment for gains included in net income (10.2) (4.5) (2.9) Unrealized (losses) gains on derivatives $ (0.6) $ 2.7 $ (2.4) The effects of fair value hedging financial instruments included in other expense, net on the consolidated statements of income in 2023, 2022 and 2021 were: Amount of Gain (Loss) Recognized in Earnings on Fair Value Hedging Relationships (U.S. Dollars presented in millions) 2023 2022 2021 Foreign exchange contracts: Hedged items $ (1.3) $ — $ — Derivatives designated as hedging instruments 5.9 (7.2) (0.5) Net gains (losses) recognized in earnings $ 4.6 $ (7.2) $ (0.5) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) Fair Value 2023 2022 Assets: Derivative asset financial instruments (Level 2) $ 3.0 $ 3.7 Deferred compensation program assets (Level 2) 5.5 3.6 Total assets $ 8.5 $ 7.3 Liabilities: Derivative liability financial instruments (Level 2) $ 0.1 $ 0.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides a summary of the Company’s debt as of December 31, 2023 and December 25, 2022 , including the carrying value of the debt less debt issuance costs: (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 Current Long-term Current Long-term Revolving credit facility due November 2027 $ — $ — $ — $ 235.0 Term loan due November 2027 18.8 693.7 18.8 731.3 $ 18.8 $ 693.7 $ 18.8 $ 966.3 Less: Unamortized debt issuance costs (1.2) (3.5) (1.3) (4.8) Total $ 17.6 $ 690.2 $ 17.5 $ 961.5 |
Schedule of Maturities of Long-Term Debt | Over the next five years, debt due to be paid by the Company is as follows: (U.S. Dollars presented in millions) Future Debt Payments 2024 $ 18.8 2025 $ 37.5 2026 $ 37.5 2027 $ 618.7 2028 $ — |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liabilities | Reconciliation of Restructuring Liability (U.S. Dollars presented in millions) Balance at December 25, 2022 2023 Provision Cash Expenditures (a) Non-cash Writeoffs Balance at December 31, 2023 Workforce reduction costs $ 15.3 $ 3.6 $ (17.6) $ — $ 1.3 Facility Closure Costs — 4.6 — (4.6) — Other 0.1 1.9 (1.9) — 0.1 $ 15.4 $ 10.1 $ (19.5) $ (4.6) $ 1.4 (a) Cash expenditures primarily related to severance charges. (U.S. Dollars presented in millions) Balance at December 26, 2021 2022 Provision Cash Expenditures (a) Balance at December 25, 2022 Workforce reduction costs $ 2.2 $ 24.5 $ (11.4) $ 15.3 Other 0.2 0.6 (0.7) 0.1 $ 2.4 $ 25.1 $ (12.1) $ 15.4 (a) Cash expenditures primarily related to severance charges. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income from continuing operations before income taxes were as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Domestic operations $ 213.2 $ 162.2 $ 204.0 Foreign operations 25.5 51.2 34.3 Income before income taxes $ 238.7 $ 213.4 $ 238.3 |
Schedule of Income Tax Expense | Income tax expense in the consolidated statement of income consisted of the following: (U.S. Dollars presented in millions) 2023 2022 2021 Current Federal $ 44.2 $ 30.9 $ 43.7 State 9.3 14.2 10.8 Foreign 8.9 10.6 8.9 Deferred Federal 1.2 3.7 (5.4) State (2.1) (2.3) (0.2) Foreign (4.8) 0.9 (2.1) Total income tax expense $ 56.7 $ 58.0 $ 55.7 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: (in percentages) 2023 2022 2021 Income tax expense at U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax benefit 2.2 4.3 3.9 Foreign taxes at a different rate than U.S. federal statutory income tax rate 0.6 (0.4) (0.2) Unrecognized tax benefits — (6.6) (0.5) IRS audit adjustments — 8.1 — Miscellaneous other, net — 0.8 (0.8) Effective income tax rate 23.8 % 27.2 % 23.4 % |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets (liabilities) as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) 2023 2022 Deferred tax assets: Compensation and benefits $ 15.9 $ 14.6 Other accrued expenses 14.7 15.9 Accounts receivable 12.5 18.8 Operating lease liabilities 11.0 14.6 Capitalized inventories 4.2 6.0 Net operating loss and other tax carryforwards 3.2 2.4 Defined benefit plans 1.1 2.4 Valuation allowance (1.0) (1.2) Other 8.7 4.6 Total deferred tax assets 70.3 78.1 Deferred tax liabilities: Intangible assets (114.3) (118.0) Fixed assets (22.0) (25.3) Operating lease assets (10.5) (14.0) Prepaid marketing (3.0) (4.1) Unremitted earnings of foreign subsidiaries — (0.2) Other (0.4) (2.2) Total deferred tax liabilities (150.2) (163.8) Net deferred tax liability $ (79.9) $ (85.7) |
Schedule of Classification of Deferred Tax Assets and Liabilities | Deferred taxes were classified in the Consolidated Balance Sheets as of December 31, 2023 and December 25, 2022 as follows: (U.S. Dollars presented in millions) 2023 2022 Other assets $ 3.7 $ 1.6 Deferred income taxes (83.6) (87.3) Net deferred tax liability $ (79.9) $ (85.7) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the Company’s gross change in UTBs, including accrued interest and penalties, is as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Unrecognized tax benefits—beginning of year $ 1.2 $ 20.2 $ 21.5 Gross additions—current year tax positions — 0.1 0.1 Gross additions—prior year tax positions — — 0.1 Gross reductions—prior year tax positions (0.3) (17.8) (1.5) Gross reductions—settlements with taxing authorities — (1.3) — Unrecognized tax benefits—end of year $ 0.9 $ 1.2 $ 20.2 Unrecognized tax benefits—accrued interest and penalties 0.7 0.5 3.0 Gross unrecognized tax benefits $ 1.6 $ 1.7 $ 23.2 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Accumulated and Projected Benefit Obligations | The primary factors contributing to actuarial gains and losses are changes in the discount rate used to value obligations as of the measurement date and the differences between expected and actual returns on pension plan assets. (U.S. Dollars presented in millions) Pension Benefits Postretirement Benefits Obligations and Funded Status December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 128.9 $ 173.3 $ 3.2 $ 3.5 Service cost — — 0.5 0.5 Interest cost 6.5 5.1 0.3 0.3 Actuarial loss (gain) 7.9 (41.1) 0.5 0.4 Benefits paid (7.7) (8.4) (0.2) (0.9) Settlements/Curtailments gain — — (0.2) (0.6) Projected benefit obligation at end of year $ 135.6 $ 128.9 $ 4.1 $ 3.2 Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) $ 135.6 $ 128.9 $ 2.9 $ 2.3 Change in Plan Assets Fair value of plan assets at beginning of year $ 119.4 $ 166.2 $ — $ — Actual return on plan assets 11.3 (39.5) — — Employer contributions 8.1 1.1 1.0 0.9 Benefits paid (7.7) (8.4) (1.0) (0.9) Fair value of plan assets at end of year $ 131.1 $ 119.4 $ — $ — Funded status (Fair value of plan assets less PBO) $ (4.5) $ (9.5) $ (4.1) $ (3.2) |
Schedule of Amounts Recognized in Balance Sheet | The accumulated benefit obligation exceeds the fair value of the pension plan assets. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (U.S. Dollars presented in millions) December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 Current liabilities $ (0.1) $ (0.1) $ (0.6) $ (0.4) Noncurrent liabilities (4.4) (9.4) (3.5) (2.8) Net amount recognized $ (4.5) $ (9.5) $ (4.1) $ (3.2) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts in accumulated other comprehensive loss on the Consolidated Balance Sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In U.S. Dollars in millions) Pension Benefits Postretirement Benefits Net actuarial loss at December 26, 2021 $ 7.2 $ 0.4 Recognition of actuarial loss (0.2) (0.4) Current year actuarial loss 5.8 0.3 Current year net actuarial gain due to curtailment — (0.3) Net actuarial loss at December 25, 2022 $ 12.8 $ — Recognition of actuarial loss (2.9) (0.3) Current year actuarial loss 3.6 0.5 Net actuarial loss at December 31, 2023 $ 13.5 $ 0.2 |
Schedule of Net Benefit Costs | Components of net periodic cost (benefit) were as follows: Components of Net Periodic Cost (Benefit) Pension Benefits Postretirement Benefits (U.S. Dollars presented in millions) 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 0.5 $ 0.5 $ 0.4 Interest cost 6.5 5.1 4.7 0.3 0.3 0.2 Expected return on plan assets (7.1) (7.3) (7.5) — — — Recognition of actuarial losses 2.9 0.2 — — 0.7 0.2 Settlement/Curtailment loss/(gain) — — — 0.3 (0.3) — Net periodic cost (benefit) $ 2.3 $ (2.0) $ (2.8) $ 1.1 $ 1.2 $ 0.8 |
Schedule of Assumptions Used to Calculate Benefit Obligation | Assumptions Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 Weighted-average assumptions used to determine benefit obligations at balance sheet date: Discount rate 4.8 % 5.2 % 3.0 % 9.2 % 9.5 % 7.8 % Weighted-average assumptions used to determine net cost (benefit) for years ended: Discount rate 5.2% 3.0% 2.7% 9.4% 8.9% 7.0 % Expected long-term rate of return on plan assets 3.8% 6.2% 4.5% —% —% —% |
Schedule of Allocation of Plan Assets | The fair value of the pension assets by major category of plan assets as of December 31, 2023 and December 25, 2022 were as follows: (U.S. Dollars presented in millions) Total as of 2023 2022 Collective trusts: Cash and cash equivalents $ 23.2 $ 5.4 Equity 28.5 31.0 Fixed income 73.6 76.6 Multi-strategy hedge funds 3.0 3.4 Real estate 2.8 3.0 Total $ 131.1 $ 119.4 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | A reconciliation of Level 3 measurements was as follows: Group annuity/ (U.S. Dollars presented in millions) 2023 2022 Beginning of year $ — $ 4.8 Assets liquidated — (4.8) End of year $ — $ — |
Schedule of Expected Benefit Payments | The following retirement benefit payments are expected to be paid by the respective plans: (U.S. Dollars presented in millions) Pension Postretirement 2024 $ 47.6 $ 0.5 2025 $ 7.2 $ 0.5 2026 $ 7.2 $ 0.4 2027 $ 7.2 $ 0.4 2028 $ 7.1 $ 0.4 Years 2029-2033 $ 33.7 $ 2.5 |
Contingencies and Accrued Los_2
Contingencies and Accrued Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the years ended 2023, 2022 and 2021. (U.S. Dollars presented in millions) 2023 2022 2021 Reserve balance at the beginning of the year $ 11.2 $ 7.0 $ 5.5 Provision for warranties issued 32.7 39.6 28.1 Settlements made (in cash or in kind) (31.0) (35.4) (26.6) Reserve balance at end of year $ 12.9 $ 11.2 $ 7.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The after-tax components of and changes in accumulated other comprehensive loss were as follows: (U.S. Dollars presented in millions) Foreign Derivative Pension and Other Accumulated Balance at December 27, 2020 $ 2.8 $ 2.5 $ (13.0) $ (7.7) Amounts classified into accumulated other comprehensive (loss) income . (0.9) 0.5 7.1 6.7 Amounts reclassified into earnings — (2.9) — (2.9) Net current period other comprehensive (loss) income (0.9) (2.4) 7.1 3.8 Balance at December 26, 2021 $ 1.9 $ 0.1 $ (5.9) $ (3.9) Amounts classified into accumulated other comprehensive (loss) income (9.9) 7.2 (4.5) (7.2) Amounts reclassified into earnings — (4.5) 1.1 (3.4) Net current period other comprehensive (loss) income (9.9) 2.7 (3.4) (10.6) Balance at December 25, 2022 $ (8.0) $ 2.8 $ (9.3) $ (14.5) Amounts classified into accumulated other comprehensive (loss) income. 12.1 9.6 (3.1) 18.6 Amounts reclassified into earnings — (10.2) 2.4 (7.8) Net current period other comprehensive (loss) income 12.1 (0.6) (0.7) 10.8 Balance at December 31, 2023 $ 4.1 $ 2.2 $ (10.0) $ (3.7) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts recorded in accumulated other comprehensive loss for the years ended December 31, 2023, December 25, 2022, and December 26, 2021 were as follows: (U.S. Dollars presented in millions) Details about Accumulated Other 2023 2022 2021 Foreign currency translation adjustments $ 12.1 $ (9.9) $ (0.9) — — — Tax expense $ 12.1 $ (9.9) $ (0.9) Net of tax Cash flow hedges Unrealized holding gains arising during period $ 9.6 $ 7.2 $ 0.5 — — — Tax expense $ 9.6 $ 7.2 $ 0.5 Net of tax Pension and Other Postretirement Plans items Net actuarial (losses) gains arising during period $ (4.1) $ (6.1) $ 9.4 1.0 1.6 (2.3) Tax benefit (expense) $ (3.1) $ (4.5) $ 7.1 Net of tax Total amounts recorded in accumulated other comprehensive loss for the period $ 18.6 $ (7.2) $ 6.7 Net of tax The reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2023, December 25, 2022, and December 26, 2021 were as follows: (U.S. Dollars presented in millions) Details about Accumulated Other 2023 2022 2021 Affected Line Item in the Consolidated Statements of Income Cash flow hedges Reclassification adjustment for gains included in net income $ (10.2) $ (4.5) $ (2.9) Cost of products sold — — — Tax expense $ (10.2) $ (4.5) $ (2.9) Net of tax Pension and Other Postretirement Plans items Amortization of net actuarial loss and curtailment $ 3.2 $ 1.7 $ — Other expense, net (0.8) (0.6) — Tax benefit $ 2.4 $ 1.1 $ — Net of tax Total reclassifications for the period $ (7.8) $ (3.4) $ (2.9) Net of tax |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Stock Based Compensation Expense And The Resulting Tax Benefits | Stock-based compensation expense, including expense recognized under both the Fortune Brands’ Long-Term Incentive Plans and the MasterBrand, Inc. 2022 Long-Term Incentive Plan, was as follows: (U.S. Dollars presented in millions) 2023 2022 2021 Performance awards $ 1.2 $ 3.2 $ 2.3 Restricted stock units 15.6 6.2 6.2 Stock option awards 1.0 1.5 0.8 Total pre-tax expense 17.8 10.9 9.3 Tax benefit 4.2 3.0 2.0 Total after tax expense $ 13.6 $ 7.9 $ 7.3 |
Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes activity with respect to performance share awards outstanding under the MasterBrand, Inc. Plan: Number of Performance Share Awards Weighted- Non-vested at December 25, 2022 — $ — Granted 411,647 $ 9.91 Vested (9,332) $ 10.71 Forfeited — $ — Non-vested at December 31, 2023 402,315 $ 9.92 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity with respect to RSUs outstanding under the MasterBrand, Inc. Plan: Number of Weighted- Non-vested at December 25, 2022 3,924,976 $ 8.98 Granted 1,254,704 $ 10.28 Vested (1,019,865) $ 9.19 Forfeited (160,496) $ 9.19 Non-vested at December 31, 2023 3,999,319 $ 9.32 |
Schedule of Stock Options Roll Forward | A summary of MasterBrand, Inc. stock option activity for the year ended December 31, 2023 was as follows: Options Weighted- Outstanding at December 25, 2022 1,334,292 $ 9.36 Granted — $ — Exercised — $ — Expired/forfeited — $ — Outstanding at December 31, 2023 1,334,292 $ 9.36 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | Options outstanding and exercisable at December 31, 2023 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Options Weighted- Weighted- Options Weighted- $5.92 to $10.76 1,334,292 6.60 $ 9.36 1,022,298 $ 8.94 (a) At December 31, 2023, the aggregate intrinsic value of options outstanding was $7.3 million (as compared to $0.2 million at December 25, 2022 ) . (b) At December 31, 2023 the weighted-average remaining contractual life of options exercisable was 6.2 years (as compared to 6.7 years at December 25, 2022 ) and the aggregate intrinsic value of options exercisable was $6.0 million (as compared to $0.2 million at December 25, 2022 . |
Background and Basis of Prese_3
Background and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 14, 2022 | Dec. 31, 2023 | Sep. 24, 2023 | Jun. 25, 2023 | Mar. 26, 2023 | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Jun. 25, 2023 | Sep. 24, 2023 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 15, 2022 | Dec. 13, 2022 | Jul. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Common stock authorized (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | 5,000 | ||||||||||||
Common stock issued (in shares) | 129,100,000 | 129,100,000 | 128,000,000 | 100 | ||||||||||||
Selling, general and administrative expenses | $ 569.7 | $ 648.5 | $ 527.6 | |||||||||||||
Separation costs | 2.4 | 15.4 | ||||||||||||||
Accrued income and other taxes | $ 18.5 | 18.5 | 14.3 | |||||||||||||
Cost of products sold | 1,824.8 | 2,335 | 2,071.4 | |||||||||||||
Related Party | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Income taxes payable | 32.6 | |||||||||||||||
Related Party | Transitional Services Agreement | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Selling, general and administrative expenses | 92.5 | 62 | ||||||||||||||
Fortune Brands | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Common stock, shares issued (in shares) | 128,000,000 | |||||||||||||||
Fortune Brands | Related Party | Transitional Services Agreement, Costs Previously Not Allocated | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Selling, general and administrative expenses | $ 72.4 | $ 42.3 | ||||||||||||||
MBCI | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Common stock authorized (in shares) | 1,000 | |||||||||||||||
Tornado | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Other nonrecurring expense | $ 9.4 | $ 0 | $ 0 | |||||||||||||
Insurance proceeds | $ 3.2 | $ 2 | $ 2.2 | $ 7.4 | ||||||||||||
Revision of Prior Period, Error Correction, Adjustment | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Cost of products sold | $ 8.7 | $ 2 | $ 1.6 | $ 5.1 | ||||||||||||
Fortune Brand Stockholders | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 100% |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||
Advertising expense | $ 65 | $ 69.1 | $ 65.6 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold | 1,824.8 | 2,335 | 2,071.4 | |
Advertising expense | 65 | 69.1 | 65.6 | |
Accounts receivable, allowance for credit loss | $ 4.6 | 4.6 | 11.6 | 2.5 |
Impairment of goodwill | 0 | 0 | 0 | |
Finite-lived intangible assets, net | 151.3 | 151.3 | 166.7 | |
Asset impairment charges | 0 | 46.4 | 0 | |
Tradenames | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Finite-lived intangible assets, net | 231.8 | |||
Tested quantitatively | 180.7 | |||
Asset impairment charges | $ 0 | 46.4 | 0 | |
Building and Leasehold Improvements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Asset impairment charges | $ 4.6 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, useful life | 1 year | 1 year | ||
Minimum | Building and Leasehold Improvements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 1 year | 1 year | ||
Minimum | Machinery and Equipment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 1 year | 1 year | ||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, useful life | 32 years | 32 years | ||
Maximum | Building and Leasehold Improvements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | 40 years | ||
Maximum | Machinery and Equipment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 20 years | 20 years | ||
Customer program allowance | ||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||
Advertising expense | $ 27.6 | 29.4 | 24.4 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advertising expense | 27.6 | 29.4 | 24.4 | |
Allowance for cash discounts and sales allowances | ||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||
Advertising expense | 37.4 | 39.7 | 41.2 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advertising expense | 37.4 | 39.7 | 41.2 | |
Allowance for cash discounts and sales allowances | Shipping and Handling | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold | $ 169.4 | $ 209.9 | $ 170.1 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, estimate refund | $ 2.1 | $ 3 | |
Lowe's | |||
Disaggregation of Revenue [Line Items] | |||
Customer Percent Of Net Revenue | 21% | 20% | 18% |
The Home Depot | |||
Disaggregation of Revenue [Line Items] | |||
Customer Percent Of Net Revenue | 16% | 17% | 18% |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, terms of payment | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, terms of payment | 90 days |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue by Channel (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 2,726.2 | $ 3,275.5 | $ 2,855.3 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,584.4 | 3,086.8 | 2,680.5 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 125.7 | 172.5 | 158.4 |
Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 16.1 | 16.2 | 16.4 |
Dealer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,446.5 | 1,771.8 | 1,583.4 |
Retailer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 967 | 1,173.9 | 1,012.4 |
Builders | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 312.7 | $ 329.8 | $ 259.5 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Accounts Receivable Allowance for Credit Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 11.6 | $ 2.5 |
Bad debt provision | 1.9 | 12.1 |
Uncollectible accounts written off, net of recoveries | (8.9) | (3) |
Ending balance | $ 4.6 | $ 11.6 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Other Income and Expenses [Abstract] | |||
Pension and postretirement benefits other than pensions | $ 2.9 | $ (1.3) | $ (2) |
Foreign currency losses | 3.2 | 1.1 | 1.4 |
Total other expense, net | (3.7) | 0.8 | 1.2 |
Total other expense, net | $ 2.4 | $ 0.6 | $ 0.6 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive weighted-average stock awards (in shares) | 0.7 | 1.3 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Numerator: | |||
Denominator: | $ 182 | $ 155.4 | $ 182.6 |
Denominator: | |||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 127.8 | 128 | 128 |
Effect of dilutive securities - stock-based awards (in shares) | 2.1 | 1.1 | 0 |
Denominator for diluted earnings per share - weighted average shares outstanding (in shares) | 129.9 | 129.1 | 128 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.42 | $ 1.21 | $ 1.43 |
Diluted (in dollars per share) | $ 1.40 | $ 1.20 | $ 1.43 |
Balance Sheet Information- Sche
Balance Sheet Information- Schedule of Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Inventories: | ||
Raw materials and supplies | $ 175.1 | $ 292.1 |
Work in process | 25.1 | 23.6 |
Finished products | 49.6 | 57.4 |
Total inventories | 249.8 | 373.1 |
Property, plant and equipment: | ||
Property, plant and equipment, gross | 924.3 | 893.4 |
Less: accumulated depreciation | 567.7 | 540.8 |
Property, plant and equipment, net of accumulated depreciation | 356.6 | 352.6 |
Accounts payable: | ||
Accounts payable | 151.4 | 219.2 |
Other current liabilities: | ||
Accrued salaries, wages and other compensation | 67.6 | 49 |
Accrued restructuring | 1.4 | 15.4 |
Accrued income and other taxes | 18.5 | 14.3 |
Accrued product warranties | 12.9 | 11.2 |
Other accrued expenses | 63.9 | 70.6 |
Total other current liabilities | 164.3 | 160.5 |
Nonrelated Party | ||
Accounts payable: | ||
Accounts payable | 149.7 | 175.1 |
Related Party | ||
Accounts payable: | ||
Accounts payable | 1.7 | 44.1 |
Other current liabilities: | ||
Income taxes payable | 32.6 | |
Land and Land Improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 31.8 | 32.9 |
Building and Building Improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 304 | 304 |
Machinery and Equipment | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 551.9 | 518.8 |
Construction in Progress | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 36.6 | $ 37.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating Lease, Expense | $ 26.9 | $ 27.4 | $ 24.7 |
Short term and variable lease, expense | $ 9.4 | $ 11.7 | $ 9.4 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 17.3 | $ 15.4 | $ 14.7 |
Right-Of-Use Asset Obtained In Exchange For Lease Liability [Abstract] | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ 23.9 | $ 5.2 | $ 35.8 |
Weighted average remaining lease term—operating leases | 5 years 4 months 24 days | 5 years 1 month 6 days | 5 years 10 months 24 days |
Weighted average discount rate—operating leases | 4.50% | 3% | 2.80% |
Leases - Summary of Future Paym
Leases - Summary of Future Payments Under Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Operating Lease | ||
2024 | $ 18.1 | |
2025 | 13.5 | |
2026 | 10.5 | |
2027 | 8.7 | |
2028 | 7 | |
Thereafter | 13.3 | |
Total lease payments | 71.1 | |
Less imputed interest | (8.7) | |
Total | 62.4 | |
Current operating lease liabilities | 16.1 | $ 13.9 |
Operating lease liabilities | $ 46.3 | $ 40.7 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 25, 2022 | Jun. 26, 2022 | Dec. 31, 2023 | Dec. 26, 2021 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 924.2 | $ 925.1 | $ 926.2 | |
2024 | 14.7 | |||
2025 | 14.7 | |||
2026 | 14.7 | |||
2027 | 14.7 | |||
2028 | 14.7 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset impairment charges | |||
Impairment of intangible assets, indefinite-lived | $ 0 | $ 0 | ||
Minimum | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 18 years | |||
Maximum | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 20 years | |||
Tradenames | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived tradenames | 183.1 | $ 184.2 | ||
Revenue growth rate, projection period | 10 years | |||
Tradenames, One | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, indefinite-lived | 12.8 | $ 26 | ||
Indefinite-lived tradenames | 46.2 | $ 46.2 | ||
Tradenames, Two | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, indefinite-lived | 7.6 | |||
Indefinite-lived tradenames | $ 19.1 | $ 19.1 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 924.2 | $ 926.2 |
Currency translation adjustment | 0.9 | (2) |
Goodwill, ending balance | $ 925.1 | $ 924.2 |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | $ 385 | $ 384.2 | |
Accumulated Amortization | (233.7) | (217.5) | |
Net Book Value | 151.3 | 166.7 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Gross Carrying Amounts | 569.2 | 567.3 | |
Accumulated Amortization | (233.7) | (217.5) | |
Net Book Value | 335.5 | 349.8 | |
Tradenames | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived tradenames | 184.2 | 183.1 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net Book Value | $ 231.8 | ||
Tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | 10.4 | 10.3 | |
Accumulated Amortization | (10.4) | (10.2) | |
Net Book Value | 0 | 0.1 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | (10.4) | (10.2) | |
Customer and contractual relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | 363.6 | 362.9 | |
Accumulated Amortization | (212.3) | (196.8) | |
Net Book Value | 151.3 | 166.1 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | (212.3) | (196.8) | |
Patents/proprietary technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | 11 | 11 | |
Accumulated Amortization | (11) | (10.5) | |
Net Book Value | 0 | 0.5 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | $ (11) | $ (10.5) |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Schedule of Finite-Lived Intangible Assets Fair Value Assumptions (Details) - Tradenames | 12 Months Ended |
Dec. 25, 2022 | |
Minimum | Discount Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.116 |
Minimum | Royalty Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.025 |
Minimum | Long-Term Revenue Growth Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.010 |
Maximum | Discount Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.126 |
Maximum | Royalty Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.030 |
Maximum | Long-Term Revenue Growth Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.010 |
Weighted Average | Discount Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.121 |
Weighted Average | Royalty Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.028 |
Weighted Average | Long-Term Revenue Growth Rate | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, measurement input | 0.010 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Derivative [Line Items] | |||
Unrealized holding gains arising during period | $ 9.6 | $ 7.2 | $ 0.5 |
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Unrealized holding gains arising during period | $ 9.6 | $ 7.2 | $ 0.5 |
Foreign Exchange Contract | Minimum | |||
Derivative [Line Items] | |||
Derivative, term of contract | 12 months | ||
Foreign Exchange Contract | Maximum | |||
Derivative [Line Items] | |||
Derivative, term of contract | 15 months | ||
Designated as Hedging Instrument | USD to Mexican Peso and Canadian Dollar | |||
Derivative [Line Items] | |||
Notional amount | $ 61.3 | ||
Net derivative asset | 2.9 | ||
Net gain on derivative | $ 2.2 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Foreign Exchange Derivatives Recorded in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 3 | $ 3.7 |
Derivative liability | 0.1 | 0.5 |
Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 3 | 3.7 |
Derivative liability | $ 0.1 | $ 0.5 |
Financial Instruments - Effect
Financial Instruments - Effect of Derivative Instruments on Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized holding gains arising during period | $ 9.6 | $ 7.2 | $ 0.5 |
Less: reclassification adjustment for gains included in net income | (10.2) | (4.5) | (2.9) |
Unrealized (losses) gains on derivatives | (0.6) | 2.7 | (2.4) |
Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized holding gains arising during period | 9.6 | 7.2 | 0.5 |
Less: reclassification adjustment for gains included in net income | (10.2) | (4.5) | (2.9) |
Unrealized (losses) gains on derivatives | (0.6) | 2.7 | (2.4) |
Foreign Exchange Contract | Fair Value Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged items | (1.3) | 0 | 0 |
Derivatives designated as hedging instruments | 5.9 | (7.2) | (0.5) |
Net gains (losses) recognized in earnings | $ 4.6 | $ (7.2) | $ (0.5) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Assets: | ||
Derivative asset | $ 3 | $ 3.7 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Liabilities: | ||
Derivative liability | $ 0.1 | 0.5 |
Fair Value, Recurring | ||
Assets: | ||
Total assets | 8.5 | 7.3 |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | ||
Assets: | ||
Derivative asset | 3 | 3.7 |
Deferred compensation plan assets | 5.5 | 3.6 |
Liabilities: | ||
Derivative liability | $ 0.1 | $ 0.5 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | $ 18.8 | $ 18.8 |
Long-term debt, excluding current maturities, gross | 693.7 | 966.3 |
Current debt issuance costs, net | (1.2) | (1.3) |
Noncurrent debt issuance costs, net | (3.5) | (4.8) |
Current portion of long-term debt | 17.6 | 17.5 |
Long-term debt | 690.2 | 961.5 |
Secured Debt | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | 18.8 | 18.8 |
Long-term debt, excluding current maturities, gross | 693.7 | 731.3 |
Revolving Credit Facility | Line of Credit | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | 0 | 0 |
Long-term debt, excluding current maturities, gross | $ 0 | $ 235 |
Debt - Narrative (Details)
Debt - Narrative (Details) - The Credit Facility $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 18, 2022 USD ($) | Sep. 24, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 25, 2022 USD ($) | Jun. 25, 2023 | |
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Face amount | $ 1,250 | ||||
Debt Issuance Costs, Gross | $ 10.1 | $ 8 | |||
Long-term debt, gross | 750 | ||||
Maximum EBITDA to consolidated interest expense | 3 | ||||
Interest expense | $ 64 | 0.3 | |||
Other Current Assets | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Gross | 0.9 | 0.8 | |||
Other Noncurrent Assets | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Gross | 2.4 | 3.2 | |||
Long-Term Debt, Current Maturities | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Gross | 1.2 | 1.3 | |||
Long-Term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Gross | $ 3.5 | 4.8 | |||
Through Second Fiscal Quarter Of 2023 | |||||
Debt Instrument [Line Items] | |||||
Maximum net debt to EBITDA ratio | 3.75 | 3.875 | |||
January 2025 | |||||
Debt Instrument [Line Items] | |||||
Maximum net debt to EBITDA ratio | 3.25 | ||||
Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Interest rate spread | 1.85% | ||||
Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Interest rate spread | 2.60% | ||||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 750 | ||||
Repayments of secured debt | $ 28.1 | ||||
Total amortization payments | 4.7 | ||||
Debt instrument, periodic payment, prepayment | $ 23.4 | ||||
Long-term debt, gross | $ 712.5 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 500 | ||||
Remaining borrowing capacity | $ 480.2 | ||||
Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 235 |
Debt - Schedule of Future Matur
Debt - Schedule of Future Maturities of Debt (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 18.8 |
2025 | 37.5 |
2026 | 37.5 |
2027 | 618.7 |
Long-Term Debt, Maturity, Year Five | $ 0 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 25, 2022 USD ($) manufacturingFacility | Dec. 26, 2021 USD ($) | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ | $ 10.1 | $ 25.1 | $ 4.2 |
Number of manufacturing facilities consolidated | manufacturingFacility | 2 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 15.4 | $ 2.4 | |
Restructuring charges | 10.1 | 25.1 | $ 4.2 |
Payments for restructuring | (19.5) | (12.1) | |
Settled without cash | (4.6) | ||
Ending balance | 1.4 | 15.4 | 2.4 |
Workforce reduction costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 15.3 | 2.2 | |
Restructuring charges | 3.6 | 24.5 | |
Payments for restructuring | (17.6) | (11.4) | |
Settled without cash | 0 | ||
Ending balance | 1.3 | 15.3 | 2.2 |
Facility Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring charges | 4.6 | ||
Payments for restructuring | 0 | ||
Settled without cash | (4.6) | ||
Ending balance | 0 | 0 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0.1 | 0.2 | |
Restructuring charges | 1.9 | 0.6 | |
Payments for restructuring | (1.9) | (0.7) | |
Settled without cash | 0 | ||
Ending balance | $ 0.1 | $ 0.1 | $ 0.2 |
Income Taxes - Summary Of Incom
Income Taxes - Summary Of Income Before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 213.2 | $ 162.2 | $ 204 |
Foreign operations | 25.5 | 51.2 | 34.3 |
INCOME BEFORE TAXES | $ 238.7 | $ 213.4 | $ 238.3 |
Income Taxes - Summary Of Inc_2
Income Taxes - Summary Of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Current | |||
Federal | $ 44.2 | $ 30.9 | $ 43.7 |
State | 9.3 | 14.2 | 10.8 |
Foreign | 8.9 | 10.6 | 8.9 |
Deferred | |||
Federal | 1.2 | 3.7 | (5.4) |
State | (2.1) | (2.3) | (0.2) |
Foreign | (4.8) | 0.9 | (2.1) |
Total income tax expense | $ 56.7 | $ 58 | $ 55.7 |
Income Taxes - Summary Of Effec
Income Taxes - Summary Of Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at U.S. federal statutory income tax rate | 21% | 21% | 21% |
State and local income taxes, net of federal tax benefit | 2.20% | 4.30% | 3.90% |
Foreign taxes at a different rate than U.S. federal statutory income tax rate | 0.60% | (0.40%) | (0.20%) |
Unrecognized tax benefits | 0% | (6.60%) | (0.50%) |
IRS audit adjustments | 0% | 8.10% | 0% |
Miscellaneous other, net | 0% | 0.80% | (0.80%) |
Effective income tax rate | 23.80% | 27.20% | 23.40% |
Income Taxes - Summary Of Defer
Income Taxes - Summary Of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Deferred tax assets: | ||
Compensation and benefits | $ 15.9 | $ 14.6 |
Other accrued expenses | 14.7 | 15.9 |
Accounts receivable | 12.5 | 18.8 |
Operating lease liabilities | 11 | 14.6 |
Capitalized inventories | 4.2 | 6 |
Net operating loss and other tax carryforwards | 3.2 | 2.4 |
Defined benefit plans | 1.1 | 2.4 |
Valuation allowance | (1) | (1.2) |
Other | 8.7 | 4.6 |
Total deferred tax assets | 70.3 | 78.1 |
Deferred tax liabilities: | ||
Intangible assets | (114.3) | (118) |
Fixed assets | (22) | (25.3) |
Operating lease assets | (10.5) | (14) |
Prepaid marketing | (3) | (4.1) |
Unremitted earnings of foreign subsidiaries | 0 | (0.2) |
Other | (0.4) | (2.2) |
Total deferred tax liabilities | (150.2) | (163.8) |
Deferred income taxes | $ (79.9) | $ (85.7) |
Income Taxes - Summary Of Def_2
Income Taxes - Summary Of Deferred Tax Assets Classified In The Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Income Tax Contingency [Line Items] | ||
Total deferred tax assets | $ 70.3 | $ 78.1 |
Deferred income taxes | (150.2) | (163.8) |
Net deferred tax liability | 79.9 | 85.7 |
Other Assets | ||
Income Tax Contingency [Line Items] | ||
Total deferred tax assets | 3.7 | 1.6 |
Deferred Income Tax Liabilities, Net | ||
Income Tax Contingency [Line Items] | ||
Deferred income taxes | $ (83.6) | $ (87.3) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits—beginning of year | $ 1.2 | $ 20.2 | $ 21.5 | |
Gross additions—current year tax positions | 0 | 0.1 | 0.1 | |
Gross additions—prior year tax positions | 0 | 0 | 0.1 | |
Gross reductions—prior year tax positions | (0.3) | (17.8) | (1.5) | |
Gross reductions—settlements with taxing authorities | 0 | (1.3) | 0 | $ (19) |
Unrecognized tax benefits—end of year | 0.9 | 1.2 | 20.2 | |
Unrecognized tax benefits—accrued interest and penalties | 0.7 | 0.5 | 3 | |
Gross unrecognized tax benefits | $ 1.6 | $ 1.7 | $ 23.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 30, 2018 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 23.80% | 27.20% | 23.40% | ||
Net operating loss and other tax carryforwards | $ 3.2 | $ 3.2 | $ 2.4 | ||
Gross reductions—prior year tax positions | 0.3 | 17.8 | $ 1.5 | ||
Valuation allowance | (1) | (1) | (1.2) | ||
Accounts payable | 151.4 | 151.4 | 219.2 | ||
Reduction resulting from lapse of applicable statute of limitations | 0.3 | ||||
Gross reductions—settlements with taxing authorities | 0 | 1.3 | 0 | $ 19 | |
Unrecognized tax benefits, income tax penalties and interest expense | 0.2 | 0.1 | 0.1 | ||
Unrecognized tax benefits that would impact effective tax rate | 0.9 | 0.9 | |||
Income taxes paid | 68.5 | 10.3 | $ 15.3 | ||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Decrease in unrecognized tax benefits is reasonably possible | 0.4 | 0.4 | |||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Decrease in unrecognized tax benefits is reasonably possible | 0.9 | 0.9 | |||
Related Party | |||||
Income Tax Contingency [Line Items] | |||||
Accounts payable | $ 1.7 | $ 1.7 | $ 44.1 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Schedule Of Obligations And Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Pension Benefits | |||
Change in the Projected Benefit Obligation (PBO): | |||
Projected benefit obligation at beginning of year | $ 128.9 | $ 173.3 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 6.5 | 5.1 | 4.7 |
Actuarial loss (gain) | 7.9 | (41.1) | |
Benefits paid | (7.7) | (8.4) | |
Settlements/Curtailments gain | 0 | 0 | |
Projected benefit obligation at end of year | 135.6 | 128.9 | 173.3 |
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | 135.6 | 128.9 | |
Change in Plan Assets | |||
Beginning balance | 119.4 | 166.2 | |
Actual return on plan assets | 11.3 | (39.5) | |
Employer contributions | 8.1 | 1.1 | |
Benefits paid | (7.7) | (8.4) | |
Ending balance | 131.1 | 119.4 | 166.2 |
Funded status (Fair value of plan assets less PBO) | (4.5) | (9.5) | |
Postretirement Benefits | |||
Change in the Projected Benefit Obligation (PBO): | |||
Projected benefit obligation at beginning of year | 3.2 | 3.5 | |
Service cost | 0.5 | 0.5 | 0.4 |
Interest cost | 0.3 | 0.3 | 0.2 |
Actuarial loss (gain) | 0.5 | 0.4 | |
Benefits paid | (0.2) | (0.9) | |
Settlements/Curtailments gain | (0.2) | (0.6) | |
Projected benefit obligation at end of year | 4.1 | 3.2 | 3.5 |
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | 2.9 | 2.3 | |
Change in Plan Assets | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1 | 0.9 | |
Benefits paid | (1) | (0.9) | |
Ending balance | 0 | 0 | $ 0 |
Funded status (Fair value of plan assets less PBO) | $ (4.1) | $ (3.2) |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Schedule of Net Amounts Recognized for the Direct Plans in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (7.9) | $ (12.2) |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (0.1) | (0.1) |
Noncurrent liabilities | (4.4) | (9.4) |
Net amount recognized | (4.5) | (9.5) |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (0.6) | (0.4) |
Noncurrent liabilities | (3.5) | (2.8) |
Net amount recognized | $ (4.1) | $ (3.2) |
Pension and Other Postretirem_5
Pension and Other Postretirement Plans - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Change in Plan Assets | |||
Net actuarial (losses) gains arising during period | $ (4.1) | $ (6.1) | $ 9.4 |
Pension Benefits | |||
Change in Plan Assets | |||
Beginning balance | 12.8 | 7.2 | |
Recognition of actuarial loss | (2.9) | (0.2) | |
Actuarial loss (gain) | 7.9 | (41.1) | |
Net actuarial (losses) gains arising during period | 3.6 | 5.8 | |
Current year net actuarial gain due to curtailment | 0 | ||
Ending balance | 13.5 | 12.8 | 7.2 |
Postretirement Benefits | |||
Change in Plan Assets | |||
Beginning balance | 0 | 0.4 | |
Recognition of actuarial loss | (0.3) | (0.4) | |
Actuarial loss (gain) | 0.5 | 0.4 | |
Net actuarial (losses) gains arising during period | 0.5 | 0.3 | |
Current year net actuarial gain due to curtailment | (0.3) | ||
Ending balance | $ 0.2 | $ 0 | $ 0.4 |
Pension and Other Postretirem_6
Pension and Other Postretirement Plans - Schedule of Net Periodic Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognition of actuarial losses | $ 2.9 | $ 0.9 | $ 0.2 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 6.5 | 5.1 | 4.7 |
Expected return on plan assets | (7.1) | (7.3) | (7.5) |
Recognition of actuarial losses | 2.9 | 0.2 | 0 |
Settlement/Curtailment loss/(gain) | 0 | 0 | 0 |
Net periodic cost (benefit) | 2.3 | (2) | (2.8) |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.5 | 0.4 |
Interest cost | 0.3 | 0.3 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 |
Recognition of actuarial losses | 0 | 0.7 | 0.2 |
Settlement/Curtailment loss/(gain) | 0.3 | (0.3) | 0 |
Net periodic cost (benefit) | $ 1.1 | $ 1.2 | $ 0.8 |
Pension and Other Postretirem_7
Pension and Other Postretirement Plans - Schedule Of Plan Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets | 3.80% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.80% | 5.20% | 3% |
Discount rate | 5.20% | 3% | 2.70% |
Expected long-term rate of return on plan assets | 3.80% | 6.20% | 4.50% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.20% | 9.50% | 7.80% |
Discount rate | 9.40% | 8.90% | 7% |
Expected long-term rate of return on plan assets | 0% | 0% | 0% |
Pension and Other Postretirem_8
Pension and Other Postretirement Plans - Schedule of Plan Assets By Category (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 131.1 | $ 119.4 | $ 166.2 |
Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 131.1 | 119.4 | |
Group Annuity | Fair Value, Recurring | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | $ 4.8 |
Cash and cash equivalents | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 23.2 | 5.4 | |
Equity | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 28.5 | 31 | |
Fixed income | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 73.6 | 76.6 | |
Multi-strategy hedge funds | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 3 | 3.4 | |
Real estate | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 2.8 | $ 3 |
Pension and Other Postretirem_9
Pension and Other Postretirement Plans - Schedule of Level 3 Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 25, 2022 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | $ 119.4 | $ 166.2 |
Ending balance | 131.1 | 119.4 |
Fair Value, Recurring | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | 119.4 | |
Ending balance | 131.1 | 119.4 |
Group Annuity | Fair Value, Inputs, Level 3 | Fair Value, Recurring | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 4.8 |
Assets liquidated | 0 | (4.8) |
Ending balance | $ 0 | $ 0 |
Pension and Other Postretire_10
Pension and Other Postretirement Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets | 3.80% | ||
Employer contributions | $ 18.2 | $ 14 | $ 15.3 |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 131.1 | 119.4 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 131.1 | $ 119.4 | $ 166.2 |
Expected long-term rate of return on plan assets | 3.80% | 6.20% | 4.50% |
Maximum | Equity Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 75% | ||
Maximum | Fixed Income Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100% | ||
Maximum | Cash and cash equivalents | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 25% | ||
Maximum | Other Investments | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 20% | ||
Minimum | Fixed Income Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 25% |
Pension and Other Postretire_11
Pension and Other Postretirement Plans - Estimated Future Benefits Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 47.6 |
2025 | 7.2 |
2026 | 7.2 |
2027 | 7.2 |
2028 | 7.1 |
Years 2029-2033 | 33.7 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 0.5 |
2025 | 0.5 |
2026 | 0.4 |
2027 | 0.4 |
2028 | 0.4 |
Years 2029-2033 | $ 2.5 |
Commitments (Details)
Commitments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligation | $ 38.3 |
Purchase obligation, due within one year | $ 25.6 |
Contingencies and Accrued Los_3
Contingencies and Accrued Losses - Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Reserve balance at the beginning of the year | $ 11.2 | $ 7 | $ 5.5 |
Provision for warranties issued | 32.7 | 39.6 | 28.1 |
Settlements made (in cash or in kind) | (31) | (35.4) | (26.6) |
Reserve balance at end of year | $ 12.9 | $ 11.2 | $ 7 |
Contingencies and Accrued Los_4
Contingencies and Accrued Losses - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Mexican Tax Authority | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 54.9 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | May 09, 2023 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 50 | |
Stock repurchased under repurchase program (in shares) | 1,874,806 | |
Stock repurchase program | $ 22 | |
Average cost per share (in USD per share) | $ 11.73 | |
Remaining authorized repurchase amount | $ 28 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,009.2 | $ 2,453.8 | $ 2,214.4 |
Amounts classified into accumulated other comprehensive (loss) income . | 18.6 | (7.2) | 6.7 |
Amounts reclassified into earnings | (7.8) | (3.4) | (2.9) |
Other comprehensive income | 10.8 | (10.6) | 3.8 |
Ending balance | 1,193.8 | 1,009.2 | 2,453.8 |
Foreign Currency Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (8) | 1.9 | 2.8 |
Amounts classified into accumulated other comprehensive (loss) income . | 12.1 | (9.9) | (0.9) |
Amounts reclassified into earnings | 0 | 0 | 0 |
Other comprehensive income | 12.1 | (9.9) | (0.9) |
Ending balance | 4.1 | (8) | 1.9 |
Derivative Hedging Gain (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2.8 | 0.1 | 2.5 |
Amounts classified into accumulated other comprehensive (loss) income . | 9.6 | 7.2 | 0.5 |
Amounts reclassified into earnings | (10.2) | (4.5) | (2.9) |
Other comprehensive income | (0.6) | 2.7 | (2.4) |
Ending balance | 2.2 | 2.8 | 0.1 |
Pension and Other Postretirement Plans Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (9.3) | (5.9) | (13) |
Amounts classified into accumulated other comprehensive (loss) income . | (3.1) | (4.5) | 7.1 |
Amounts reclassified into earnings | 2.4 | 1.1 | 0 |
Other comprehensive income | (0.7) | (3.4) | 7.1 |
Ending balance | (10) | (9.3) | (5.9) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14.5) | (3.9) | (7.7) |
Other comprehensive income | 10.8 | (10.6) | 3.8 |
Ending balance | $ (3.7) | $ (14.5) | $ (3.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Amounts Recorded in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Equity [Abstract] | |||
Foreign currency translation adjustments | $ 12.1 | $ (9.9) | $ (0.9) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 12.1 | (9.9) | (0.9) |
Unrealized holding gains arising during period | 9.6 | 7.2 | 0.5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 9.6 | 7.2 | 0.5 |
Net actuarial (losses) gains arising during period | (4.1) | (6.1) | 9.4 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | (1) | (1.6) | 2.3 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (3.1) | (4.5) | 7.1 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | $ 18.6 | $ (7.2) | $ 6.7 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of products sold | $ 1,824.8 | $ 2,335 | $ 2,071.4 |
Income tax expense | 56.7 | 58 | 55.7 |
NET INCOME | 182 | 155.4 | 182.6 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
NET INCOME | (7.8) | (3.4) | (2.9) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax expense | 0 | 0 | 0 |
NET INCOME | (10.2) | (4.5) | (2.9) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Postretirement Plans Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Actuarial loss (gain) | 3.2 | 1.7 | 0 |
Income tax expense | 0.8 | 0.6 | 0 |
NET INCOME | 2.4 | 1.1 | 0 |
Cost of products sold | Foreign Exchange Contract | Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of products sold | $ (10.2) | $ (4.5) | $ (2.9) |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses | $ 569.7 | $ 648.5 | $ 527.6 | |
Stock based compensation expense | $ 0.7 | 17.8 | 10.9 | 9.3 |
Interest income | 0 | 12.9 | 4.6 | |
Interest expense | $ 65.2 | 2.2 | 0 | |
Transitional Services Agreement | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses | 92.5 | 62 | ||
Related Party, Note Receivable | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 14.4 | 5.2 | ||
Related Party, Note Payable | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 1.5 | 0.6 | ||
Fortune Brands | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Stock based compensation expense | $ 0.7 | 10.9 | 9.3 | |
Fortune Brands | Transitional Services Agreement, Costs Previously Not Allocated | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses | $ 72.4 | $ 42.3 | ||
Minimum | Fortune Brands | Related Party, Note Receivable | ||||
Related Party Transaction [Line Items] | ||||
Related party interest rate | 0.95% | |||
Minimum | Fortune Brands | Related Party, Note Payable | ||||
Related Party Transaction [Line Items] | ||||
Related party interest rate | 1.20% | |||
Maximum | Fortune Brands | Related Party, Note Receivable | ||||
Related Party Transaction [Line Items] | ||||
Related party interest rate | 4.80% | |||
Maximum | Fortune Brands | Related Party, Note Payable | ||||
Related Party Transaction [Line Items] | ||||
Related party interest rate | 5.05% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 26, 2023 | Dec. 25, 2022 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Stock-Based Compensation [Line Items] | |||||
Stock based compensation expense | $ 0.7 | $ 17.8 | $ 10.9 | $ 9.3 | |
Unvested (in shares) | 0 | 0 | 0 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 8 months 26 days | ||||
Options, outstanding, intrinsic value | $ 0.2 | $ 7.3 | $ 0.2 | ||
Weighted average remaining contractual term (in years) | 6 years 2 months 12 days | 6 years 8 months 12 days | |||
Options, exercisable, intrinsic value | $ 0.2 | $ 6 | $ 0.2 | ||
Option, cost not yet recognized | 0.4 | ||||
Options, vested in period, fair value | $ 1.4 | 0.8 | 0.7 | ||
Options, exercised in period, intrinsic value | 2.6 | ||||
2022 Long-Term Incentive Plan | |||||
Stock-Based Compensation [Line Items] | |||||
Number of shares authorized and available for issuance (shares) | 9,700,000 | ||||
Performance awards | |||||
Stock-Based Compensation [Line Items] | |||||
Stock based compensation expense | $ 1.2 | 3.2 | 2.3 | ||
Total grant date fair value | $ 0.1 | $ 1.5 | |||
Converted (in shares) | 245,111 | ||||
Unvested (in shares) | 0 | 402,315 | 0 | ||
Granted (in shares) | 411,647 | 411,647 | |||
Unrecognized pre-tax stock-based compensation expense | $ 2.8 | ||||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 2 years 1 month 2 days | ||||
Restricted stock units | |||||
Stock-Based Compensation [Line Items] | |||||
Stock based compensation expense | $ 15.6 | $ 6.2 | 6.2 | ||
Total grant date fair value | $ 10.6 | $ 6.1 | 6.6 | ||
Unvested (in shares) | 3,924,976 | 3,999,319 | 3,924,976 | ||
Granted (in shares) | 1,254,704 | ||||
Unrecognized pre-tax stock-based compensation expense | $ 19.3 | ||||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 1 year 9 months 10 days | ||||
Award vesting period | 3 years | ||||
Restricted stock units | Share-Based Payment Arrangement, Tranche One | |||||
Stock-Based Compensation [Line Items] | |||||
Award vesting rights, percentage | 33.33% | ||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Two | |||||
Stock-Based Compensation [Line Items] | |||||
Award vesting rights, percentage | 33.33% | ||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Three | |||||
Stock-Based Compensation [Line Items] | |||||
Award vesting rights, percentage | 33.33% | ||||
Stock option awards | |||||
Stock-Based Compensation [Line Items] | |||||
Stock based compensation expense | $ 1 | $ 1.5 | $ 0.8 | ||
Award vesting period | 3 years | ||||
Maturity period | 10 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule Of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Stock-Based Compensation [Line Items] | ||||
Stock based compensation expense | $ 0.7 | $ 17.8 | $ 10.9 | $ 9.3 |
Tax benefit | 4.2 | 3 | 2 | |
Total after tax expense | 13.6 | 7.9 | 7.3 | |
Performance awards | ||||
Stock-Based Compensation [Line Items] | ||||
Stock based compensation expense | 1.2 | 3.2 | 2.3 | |
Restricted stock units | ||||
Stock-Based Compensation [Line Items] | ||||
Stock based compensation expense | 15.6 | 6.2 | 6.2 | |
Stock option awards | ||||
Stock-Based Compensation [Line Items] | ||||
Stock based compensation expense | $ 1 | $ 1.5 | $ 0.8 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule Of Non-vested Performance Shares And Restricted Stock Units Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 26, 2023 | Dec. 31, 2023 | |
Number of Performance Share Awards | ||
Beginning balance (in shares) | 0 | 0 |
Ending balance (in shares) | 0 | |
Restricted stock units | ||
Number of Performance Share Awards | ||
Beginning balance (in shares) | 3,924,976 | 3,924,976 |
Granted (in shares) | 1,254,704 | |
Vested (in shares) | (1,019,865) | |
Forfeited (in shares) | (160,496) | |
Ending balance (in shares) | 3,999,319 | |
Weighted- Average Grant- Date Fair Value | ||
Outstanding at beginning of period (in US dollars per share) | $ 8.98 | $ 8.98 |
Granted (in US dollars per share) | 10.28 | |
Vested (in US dollars per share) | 9.19 | |
Forfeited (in US dollars per share) | 9.19 | |
Outstanding at end of period (in US dollars per share) | $ 9.32 | |
Performance awards | ||
Number of Performance Share Awards | ||
Beginning balance (in shares) | 0 | 0 |
Granted (in shares) | 411,647 | 411,647 |
Vested (in shares) | (9,332) | |
Forfeited (in shares) | 0 | |
Ending balance (in shares) | 402,315 | |
Weighted- Average Grant- Date Fair Value | ||
Outstanding at beginning of period (in US dollars per share) | $ 0 | $ 0 |
Granted (in US dollars per share) | 9.91 | |
Vested (in US dollars per share) | 10.71 | |
Forfeited (in US dollars per share) | 0 | |
Outstanding at end of period (in US dollars per share) | $ 9.92 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule Of Option Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Options Outstanding | |
Beginning balance (in shares) | shares | 1,334,292 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Expired or forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,334,292 |
Weighted Average Exercise Price | |
Beginning balance (in US dollars per share) | $ / shares | $ 9.36 |
Granted (in US dollars per share) | $ / shares | 0 |
Exercised (in US dollars per share) | $ / shares | 0 |
Expired and forfeited (in US dollars per share) | $ / shares | 0 |
Ending balance (in US dollars per shares) | $ / shares | $ 9.36 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule Of Option Outstanding And Exercisable (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Stock-Based Compensation [Line Items] | |
Options outstanding (in shares) | shares | 1,334,292 |
Weighted average remaining contractual term | 6 years 7 months 6 days |
Exercise price (in US dollars per share) | $ 9.36 |
Exercisable (in shares) | shares | 1,022,298 |
Exercise price (in US dollars per share) | $ 8.94 |
Minimum | |
Stock-Based Compensation [Line Items] | |
Lower range limit | 5.92 |
Maximum | |
Stock-Based Compensation [Line Items] | |
Upper range limit | $ 10.76 |
SEC Schedule, Article 12-09, _2
SEC Schedule, Article 12-09, Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | |
Allowance for cash discounts and sales allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 5.6 | $ 5.6 | $ 5.9 |
Charges | 73.5 | 85.2 | 66.5 |
Write-offs and deductions | 74.2 | 85.2 | 66.8 |
Balance at End of Period | 4.9 | 5.6 | 5.6 |
Customer program allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 58.3 | 55.3 | 37.2 |
Charges | 146.5 | 141 | 157.1 |
Write-offs and deductions | 161.8 | 138 | 139 |
Balance at End of Period | 43 | 58.3 | 55.3 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 1.2 | 1.2 | 1.3 |
Charges | (0.2) | 0 | (0.1) |
Write-offs and deductions | 0 | 0 | 0 |
Balance at End of Period | $ 1 | $ 1.2 | $ 1.2 |