falsedesktopFBHS2020-09-30000156459020048855{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\nEmerging growth company\t☐\t\t\n", "q10k_tbl_1": "\tNine Months Ended\t\tThree Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet sales\t4430.6\t4294.1\t1652.1\t1459.0\nCost of products sold\t2873.9\t2773.5\t1071.5\t934.8\nSelling general and administrative expenses\t918.4\t943.9\t328.3\t311.3\nAmortization of intangible assets\t31.1\t30.0\t10.5\t9.9\nAsset impairment charges\t22.5\t29.5\t0\t29.5\nRestructuring charges\t16.5\t11.2\t1.6\t5.5\nOperating income\t568.2\t506.0\t240.2\t168.0\nInterest expense\t64.4\t71.8\t20.1\t23.6\nOther income net\t(13.4)\t(2.2)\t(2.1)\t(0.3)\nIncome before taxes\t517.2\t436.4\t222.2\t144.7\nIncome tax\t121.7\t109.1\t54.0\t39.0\nIncome after tax\t395.5\t327.3\t168.2\t105.7\nEquity in losses of affiliate\t4.7\t0\t2.4\t0\nNet income\t390.8\t327.3\t165.8\t105.7\nLess: Noncontrolling interests\t1.3\t(0.5)\t1.2\t0.1\nNet income attributable to Fortune Brands\t389.5\t327.8\t164.6\t105.6\nBasic earnings per common share\t2.81\t2.34\t1.19\t0.76\nDiluted earnings per common share\t2.78\t2.32\t1.17\t0.75\nComprehensive income\t371.9\t327.4\t184.6\t94.3\n", "q10k_tbl_2": "\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\nCurrent assets\t\t\nCash and cash equivalents\t464.5\t387.9\nAccounts receivable less allowances for discounts and doubtful accounts\t765.2\t624.8\nInventories\t738.3\t718.6\nOther current assets\t170.0\t166.9\nTotal current assets\t2138.0\t1898.2\nProperty plant and equipment net of accumulated depreciation\t791.7\t824.2\nOperating lease assets\t166.9\t165.6\nGoodwill\t2085.2\t2090.2\nOther intangible assets net of accumulated amortization\t1111.2\t1168.9\nOther assets\t226.0\t144.2\nTotal assets\t6519.0\t6291.3\nLiabilities and equity\t\t\nCurrent liabilities\t\t\nShort-term debt\t0\t399.7\nAccounts payable\t544.1\t460.0\nOther current liabilities\t590.9\t549.6\nTotal current liabilities\t1135.0\t1409.3\nLong-term debt\t2086.5\t1784.6\nDeferred income taxes\t149.2\t157.2\nAccrued defined benefit plans\t180.2\t201.4\nOperating lease liabilities\t139.1\t139.8\nOther non-current liabilities\t200.4\t171.2\nTotal liabilities\t3890.4\t3863.5\nCommitments and contingencies (see Note 17)\t\t\nEquity\t\t\nFortune Brands equity\t\t\nCommon stock(a)\t1.8\t1.8\nPaid-in capital\t2903.3\t2813.8\nAccumulated other comprehensive loss\t(91.5)\t(72.6)\nRetained earnings\t2052.7\t1763.0\nTreasury stock\t(2237.7)\t(2079.4)\nTotal Fortune Brands equity\t2628.6\t2426.6\nNoncontrolling interests\t0\t1.2\nTotal equity\t2628.6\t2427.8\nTotal liabilities and equity\t6519.0\t6291.3\n", "q10k_tbl_3": "\t2020\t2019\nOperating activities\t\t\nNet income\t390.8\t327.3\nNon-cash pre-tax expense:\t\t\nDepreciation\t85.8\t82.7\nAmortization of intangibles\t31.1\t30.0\nNon-cash lease expense\t26.6\t26.5\nStock-based compensation\t33.5\t22.9\nRecognition of actuarial losses\t0.6\t2.1\nDeferred taxes\t(17.0)\t(1.8)\nAsset impairment charges\t22.5\t31.2\nAmortization of deferred financing fees\t3.3\t2.4\nEquity in losses of affiliate\t4.7\t0\nGain on equity investments\t(6.6)\t0\nLoss (gain) on sale of property plant and equipment\t1.3\t(1.0)\nChanges in assets and liabilities:\t\t\nIncrease in accounts receivable\t(164.4)\t(68.4)\nIncrease in inventories\t(20.5)\t(81.2)\nIncrease (decrease) in accounts payable\t88.5\t(11.1)\nIncrease in other assets\t(21.2)\t(18.3)\nIncrease in accrued expenses and other liabilities\t25.0\t6.0\nIncrease in accrued taxes\t22.8\t4.5\nNet cash provided by operating activities\t506.8\t353.8\nInvesting activities\t\t\nCapital expenditures (a)\t(66.2)\t(82.4)\nProceeds from the disposition of assets\t1.5\t4.2\nCost of investments in equity securities\t(59.4)\t0\nOther investing activities net\t0\t0.1\nNet cash used in investing activities\t(124.1)\t(78.1)\nFinancing activities\t\t\nDecrease in short-term debt\t0\t(525.0)\nIssuance of long-term debt\t1020.0\t1494.3\nRepayment of long-term debt\t(1120.0)\t(955.0)\nProceeds from the exercise of stock options\t56.0\t6.9\nTreasury stock purchases\t(150.0)\t(100.0)\nEmployee withholding taxes related to stock-based compensation\t(8.3)\t(8.5)\nDeferred acquisition payments\t0\t(19.0)\nDividends to stockholders\t(99.9)\t(92.3)\nDividends paid to non-controlling interests\t(2.5)\t0\nOther financing net\t(4.1)\t(3.3)\nNet cash used in financing activities\t(308.8)\t(201.9)\nEffect of foreign exchange rate changes on cash\t1.9\t(1.2)\nNet increase in cash and cash equivalents\t75.8\t72.6\nCash cash equivalents and restricted cash(b) at beginning of period\t394.9\t270.7\nCash cash equivalents and restricted cash(b) at end of period\t470.7\t343.3\n", "q10k_tbl_4": "\tCommon Stock\tPaid-In Capital\tAccumulated Other Comprehensive (Loss) Income\tRetained Earnings\tTreasury Stock\tNon- controlling Interests\tTotal Equity\nBalance at December 31 2018\t1.8\t2766.0\t(67.0)\t1448.1\t(1970.7)\t1.8\t2180.0\nComprehensive income:\t\t\t\t\t\t\t\nNet income\t0\t0\t0\t327.8\t0\t(0.5)\t327.3\nOther comprehensive income (loss)\t0\t0\t0.1\t0\t0\t0\t0.1\nStock options exercised\t0\t6.9\t0\t0\t0\t0\t6.9\nStock-based compensation\t0\t22.9\t0\t0\t(8.5)\t0\t14.4\nAdoption of ASU 2018-02\t0\t0\t(8.6)\t8.6\t0\t0\t0\nTreasury stock purchases\t0\t0\t0\t0\t(100.0)\t0\t(100.0)\nDividends ($0.66 per common share)\t0\t0\t0\t(92.0)\t0\t0\t(92.0)\nBalance at September 30 2019\t1.8\t2795.8\t(75.5)\t1692.5\t(2079.2)\t1.3\t2336.7\nBalance at December 31 2019\t1.8\t2813.8\t(72.6)\t1763.0\t(2079.4)\t1.2\t2427.8\nComprehensive income:\t\t\t\t\t\t\t\nNet income\t0\t0\t0\t389.5\t0\t1.3\t390.8\nOther comprehensive income (loss)\t0\t0\t(18.9)\t0\t0\t0\t(18.9)\nStock options exercised\t0\t56.0\t0\t0\t0\t0\t56.0\nStock-based compensation\t0\t33.5\t0\t0\t(8.3)\t0\t25.2\nTreasury stock purchases\t0\t0\t0\t0\t(150.0)\t0\t(150.0)\nDividends to non-controlling interests\t0\t0\t0\t0\t0\t(2.5)\t(2.5)\nDividends ($0.72 per common share)\t0\t0\t0\t(99.8)\t0\t0\t(99.8)\nBalance at September 30 2020\t1.8\t2903.3\t(91.5)\t2052.7\t(2237.7)\t0\t2628.6\n\tCommon Stock\tPaid-In Capital\tAccumulated Other Comprehensive (Loss) Income\tRetained Earnings\tTreasury Stock\tNon- controlling Interests\tTotal Equity\nBalance at June 30 2019\t1.8\t2786.6\t(64.1)\t1648.1\t(2028.9)\t1.2\t2344.7\nComprehensive income:\t\t\t\t\t\t\t\nNet income\t0\t0\t0\t105.6\t0\t0.1\t105.7\nOther comprehensive income (loss)\t0\t0\t(11.4)\t0\t0\t0\t(11.4)\nStock options exercised\t0\t0.8\t0\t0\t0\t0\t0.8\nStock-based compensation\t0\t8.4\t0\t0\t(0.3)\t0\t8.1\nTreasury stock purchases\t0\t0\t0\t0\t(50.0)\t0\t(50.0)\nDividends ($0.44 per common share)\t0\t0\t0\t(61.2)\t0\t0\t(61.2)\nBalance at September 30 2019\t1.8\t2795.8\t(75.5)\t1692.5\t(2079.2)\t1.3\t2336.7\nBalance at June 30 2020\t1.8\t2852.9\t(110.3)\t1954.7\t(2237.3)\t1.3\t2463.1\nComprehensive income:\t\t\t\t\t\t\t\nNet income\t0\t0\t0\t164.6\t0\t1.2\t165.8\nOther comprehensive income (loss)\t0\t0\t18.8\t0\t0\t0\t18.8\nStock options exercised\t0\t31.9\t0\t0\t0\t0\t31.9\nStock-based compensation\t0\t18.5\t0\t0\t(0.4)\t0\t18.1\nTreasury stock purchases\t0\t0\t0\t0\t0\t0\t0\nDividends to non-controlling interests\t0\t0\t0\t0\t0\t(2.5)\t(2.5)\nDividends ($0.48 per common share)\t0\t0\t0\t(66.6)\t0\t0\t(66.6)\nBalance at September 30 2020\t1.8\t2903.3\t(91.5)\t2052.7\t(2237.7)\t0\t2628.6\n", "q10k_tbl_5": "(In millions)\tSeptember 30 2020\tDecember 31 2019\nInventories:\t\t\nRaw materials and supplies\t299.3\t274.4\nWork in process\t72.0\t72.2\nFinished products\t367.0\t372.0\nTotal inventories\t738.3\t718.6\nProperty plant and equipment gross\t2005.7\t1982.5\nLess: accumulated depreciation\t1214.0\t1158.3\nProperty plant and equipment net\t791.7\t824.2\n", "q10k_tbl_6": "(In millions)\tPlumbing\tDoors & Security\tCabinets\tTotal Goodwill\nGoodwill at December 31 2019(a)\t747.3\t417.4\t925.5\t2090.2\nYear-to-date translation adjustments\t(3.9)\t(0.3)\t(0.8)\t(5.0)\nGoodwill at September 30 2020(a)\t743.4\t417.1\t924.7\t2085.2\n", "q10k_tbl_7": "(In millions)\tAs of September 30 2020\t\t\tAs of December 31 2019\t\t\n\tGross Carrying Amounts\tAccumulated Amortization\tNet Book Value\tGross Carrying Amounts\tAccumulated Amortization\tNet Book Value\nIndefinite-lived tradenames\t597.5\t0\t597.5\t635.6\t0\t635.6\nAmortizable intangible assets\t\t\t\t\t\t\nTradenames\t33.5\t(13.4)\t20.1\t20.6\t(12.9)\t7.7\nCustomer and contractual relationships\t799.9\t(325.6)\t474.3\t803.9\t(299.6)\t504.3\nPatents/proprietary technology\t75.5\t(56.2)\t19.3\t73.4\t(52.1)\t21.3\nTotal\t908.9\t(395.2)\t513.7\t897.9\t(364.6)\t533.3\nTotal identifiable intangibles\t1506.4\t(395.2)\t1111.2\t1533.5\t(364.6)\t1168.9\n", "q10k_tbl_8": "\t2020\t\t\t2019\t\t\nUnobservable Input\tMinimum\tMaximum\tWeighted Average(a)\tMinimum\tMaximum\tWeighted Average(a)\nDiscount rate\t14.8%\t15.8%\t15.1%\t13.0%\t13.5%\t13.3%\nRoyalty rate(b)\t4.0%\t5.0%\t4.3%\t3.0%\t4.0%\t3.3%\nLong-term revenue growth rate(c)\t1.0%\t3.0%\t1.6%\t3.0%\t3.0%\t3.0%\n", "q10k_tbl_9": "\t\t\t\tNet Carrying Value\t\n(in millions)\tPrincipal Amount\tIssuance Date\tMaturity Date\tSeptember 30 2020\tDecember 31 2019\n3.000% Senior Notes\t400.0\tJune 2015\tJune 2020\t0\t399.7\n4.000% Senior Notes\t500.0\tJune 2015\tJune 2025\t496.4\t495.8\n4.000% Senior Notes (the \"2018 Notes\")\t600.0\tSeptember 2018\tSeptember 2023\t596.8\t596.1\n3.250% Senior Notes\t700.0\tSeptember 2019\tSeptember 2029\t693.3\t692.7\nTotal Senior Notes\t\t\t\t1786.5\t2184.3\n", "q10k_tbl_10": "\t\tFair Value\t\n(In millions)\tLocation\tSeptember 30 2020\tDecember 31 2019\nAssets:\t\t\t\nForeign exchange contracts\tOther current assets\t1.1\t2.9\nCommodity contracts\tOther current assets\t0\t0.1\n\tTotal assets\t1.1\t3.0\nLiabilities:\t\t\t\nForeign exchange contracts\tOther current liabilities\t4.4\t2.2\nCommodity contracts\tOther current liabilities\t0.1\t0\nNet investment hedges\tOther current liabilities\t0.1\t0.3\n\tTotal liabilities\t4.6\t2.5\n", "q10k_tbl_11": "(In millions)\tClassification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships\t\t\n\tNine Months Ended September 30 2020\t\t\n\tCost of products sold\tInterest expense\tOther income net\nTotal amounts per Consolidated Statements of Comprehensive Income\t2873.9\t64.4\t13.4\nThe effects of fair value and cash flow hedging:\t\t\t\nGain (loss) on fair value hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nHedged items\t\t\t(5.3)\nDerivative designated as hedging instruments\t\t\t6.9\nGain (loss) on cash flow hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t(2.1)\t\t\nCommodity contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t(0.2)\t\t\nInterest rate contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t\t0.5\t\n(In millions)\tClassification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships\t\t\n\tNine Months Ended September 30 2019\t\t\n\tCost of products sold\tInterest expense\tOther income net\nTotal amounts per Consolidated Statements of Comprehensive Income\t2773.5\t71.8\t2.2\nThe effects of fair value and cash flow hedging:\t\t\t\nGain (loss) on fair value hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nHedged items\t\t\t(2.7)\nDerivative designated as hedging instruments\t\t\t3.4\nGain (loss) on cash flow hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t3.2\t\t\nCommodity contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t(0.2)\t\t\nInterest rate contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t\t0.3\t\n", "q10k_tbl_12": "(In millions)\tClassification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships\t\t\n\tThree Months Ended September 30 2020\t\t\n\tCost of products sold\tInterest expense\tOther income net\nTotal amounts per Consolidated Statements of Comprehensive Income\t1071.5\t20.1\t2.1\nThe effects of fair value and cash flow hedging:\t\t\t\nGain (loss) on fair value hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nHedged items\t\t\t3.5\nDerivative designated as hedging instruments\t\t\t(3.1)\nGain (loss) on cash flow hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t(1.4)\t\t\nCommodity contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t0.2\t\t\nInterest rate contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t\t0.2\t\n(In millions)\tClassification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships\t\t\n\tThree Months Ended September 30 2019\t\t\n\tCost of products sold\tInterest expense\tOther income net\nTotal amounts per Consolidated Statements of Comprehensive Income\t934.8\t23.6\t0.3\nThe effects of fair value and cash flow hedging:\t\t\t\nGain (loss) on fair value hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nHedged items\t\t\t(2.5)\nDerivative designated as hedging instruments\t\t\t2.7\nGain (loss) on cash flow hedging relationships\t\t\t\nForeign exchange contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t0.4\t\t\nCommodity contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t(0.2)\t\t\nInterest rate contracts:\t\t\t\nAmount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income\t\t0.1\t\n", "q10k_tbl_13": "(In millions)\tSeptember 30 2020\t\tDecember 31 2019\t\n\tCarrying Value\tFair Value\tCarrying Value\tFair Value\nNotes net of underwriting commissions price discounts and debt issuance costs\t1786.5\t1992.4\t2184.3\t2271.4\n2019 Revolving Credit Agreement\t300.0\t300.0\t0\t0\nTotal debt\t2086.5\t2292.4\t2184.3\t2271.4\n", "q10k_tbl_14": "(In millions)\tFair Value\t\n\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\nDerivative financial instruments (Level 2)\t1.1\t3.0\nDeferred compensation program assets (Level 2)\t15.3\t12.1\nTotal assets\t16.4\t15.1\nLiabilities\t\t\nDerivative financial instruments (Level 2)\t4.6\t2.5\n", "q10k_tbl_15": "(In millions)\tForeign Currency Adjustments\tDerivative Hedging Gain (Loss)\tDefined Benefit Plan Adjustments\tAccumulated Other Comprehensive Loss\nBalance at December 31 2018\t(25.3)\t4.2\t(45.9)\t(67.0)\nAmounts classified into accumulated other comprehensive (loss) income\t1.1\t3.0\t(2.8)\t1.3\nAdoption of ASU 2018-02\t\t\t(8.6)\t(8.6)\nAmounts reclassified from accumulated other comprehensive (loss) income\t0\t(2.8)\t1.6\t(1.2)\nNet current-period other comprehensive (loss) income\t1.1\t0.2\t(9.8)\t(8.5)\nBalance at September 30 2019\t(24.2)\t4.4\t(55.7)\t(75.5)\nBalance at December 31 2019\t(11.5)\t5.5\t(66.6)\t(72.6)\nAmounts classified into accumulated other comprehensive (loss) income\t(12.7)\t(7.7)\t(1.0)\t(21.4)\nAmounts reclassified from accumulated other comprehensive (loss) income\t0\t2.1\t0.4\t2.5\nNet current-period other comprehensive (loss) income\t(12.7)\t(5.6)\t(0.6)\t(18.9)\nBalance at September 30 2020\t(24.2)\t(0.1)\t(67.2)\t(91.5)\n", "q10k_tbl_16": "(In millions)\tForeign Currency Adjustments\tDerivative Hedging Gain (Loss)\tDefined Benefit Plan Adjustments\tAccumulated Other Comprehensive Loss\nBalance at June 30 2019\t(11.6)\t2.0\t(54.5)\t(64.1)\nAmounts classified into accumulated other comprehensive (loss) income\t(12.6)\t2.7\t(2.8)\t(12.7)\nAmounts reclassified from accumulated other comprehensive (loss) income\t0\t(0.3)\t1.6\t1.3\nNet current-period other comprehensive (loss) income\t(12.6)\t2.4\t(1.2)\t(11.4)\nBalance at September 30 2019\t(24.2)\t4.4\t(55.7)\t(75.5)\nBalance at June 30 2020\t(41.8)\t(1.1)\t(67.4)\t(110.3)\nAmounts classified into accumulated other comprehensive (loss) income\t17.6\t0\t(0.2)\t17.4\nAmounts reclassified from accumulated other comprehensive (loss) income\t0\t1.0\t0.4\t1.4\nNet current-period other comprehensive (loss) income\t17.6\t1.0\t0.2\t18.8\nBalance at September 30 2020\t(24.2)\t(0.1)\t(67.2)\t(91.5)\n", "q10k_tbl_17": "(In millions)\t\t\t\nDetails about Accumulated Other Comprehensive Loss Components\tAmount Reclassified from Accumulated Other Comprehensive Loss Nine months ended September 30\t\tAffected Line Item in the Statement of Comprehensive Income\n\t2020\t2019\t\nGains (losses) on cash flow hedges\t\t\t\nForeign exchange contracts\t(2.1)\t3.2\tCost of products sold\nCommodity contracts\t(0.2)\t(0.2)\tCost of products sold\nInterest rate contracts\t0.5\t0.3\tInterest expense\n\t(1.8)\t3.3\tTotal before tax\n\t(0.3)\t(0.5)\tTax expense\n\t(2.1)\t2.8\tNet of tax\nDefined benefit plan items\t\t\t\nRecognition of actuarial losses\t(0.6)\t(2.1)\t(a)\n\t(0.6)\t(2.1)\tTotal before tax\n\t0.2\t0.5\tTax expense\n\t(0.4)\t(1.6)\tNet of tax\nTotal reclassifications for the period\t(2.5)\t1.2\tNet of tax\n(In millions)\t\t\t\nDetails about Accumulated Other Comprehensive Loss Components\tAmount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended September 30\t\tAffected Line Item in the Statement of Comprehensive Income\n\t2020\t2019\t\nGains (losses) on cash flow hedges\t\t\t\nForeign exchange contracts\t(1.4)\t0.4\tCost of products sold\nCommodity contracts\t0.2\t(0.2)\tCost of products sold\nInterest rate contracts\t0.2\t0.1\tInterest expense\n\t(1.0)\t0.3\tTotal before tax\n\t0\t0\tTax expense\n\t(1.0)\t0.3\tNet of tax\nDefined benefit plan items\t\t\t\nRecognition of actuarial losses\t(0.6)\t(2.1)\t(a)\n\t(0.6)\t(2.1)\tTotal before tax\n\t0.2\t0.5\tTax expense\n\t(0.4)\t(1.6)\tNet of tax\nTotal reclassifications for the period\t(1.4)\t(1.3)\tNet of tax\n", "q10k_tbl_18": "(In millions)\tNine Months Ended September 30\t\tThree Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nWholesalers(a)\t1969.8\t2001.8\t722.9\t684.0\nHome Center retailers(b)\t1338.4\t1205.6\t498.3\t383.7\nOther retailers(c)\t251.3\t220.0\t91.7\t77.6\nBuilder direct\t164.6\t173.2\t57.8\t60.8\nU.S. net sales\t3724.1\t3600.6\t1370.7\t1206.1\nInternational(d)\t706.5\t693.5\t281.4\t252.9\nNet sales\t4430.6\t4294.1\t1652.1\t1459.0\n", "q10k_tbl_19": "(In millions)\tNine Months Ended September 30\t\tThree Months Ended September 30\t\n\tPension Benefits\t\tPension Benefits\t\n\t2020\t2019\t2020\t2019\nService cost\t0.3\t0.3\t0.1\t0.1\nInterest cost\t21.2\t24.7\t7.0\t8.3\nExpected return on plan assets\t(24.5)\t(26.4)\t(8.1)\t(8.8)\nRecognition of actuarial losses\t0.6\t2.1\t0.6\t2.1\nNet periodic benefit (income) expense\t(2.4)\t0.7\t(0.4)\t1.7\n", "q10k_tbl_20": "(In millions)\tNine Months Ended September 30\t\n\t2020\t2019\nReserve balance at January 1\t24.7\t24.9\nProvision for warranties issued\t17.7\t20.5\nSettlements made (in cash or in kind)\t(19.7)\t(19.2)\nForeign translation adjustments\t0\t(0.5)\nReserve balance at September 30\t22.7\t25.7\n", "q10k_tbl_21": "\tNine Months Ended September 30\t\t\n(In millions)\t2020\t2019\t% Change vs. Prior Year\nNet Sales\t\t\t\nPlumbing\t1564.4\t1478.8\t5.8%\nDoors & Security\t1052.7\t1017.6\t3.4\nCabinets\t1813.5\t1797.7\t0.9\nNet sales\t4430.6\t4294.1\t3.2%\nOperating Income (Loss)\t\t\t\nPlumbing\t330.6\t307.9\t7.4%\nDoors & Security\t143.5\t122.5\t17.1\nCabinets\t163.1\t134.0\t21.7\nLess: Corporate expenses\t(69.0)\t(58.4)\t(18.2)\nOperating income\t568.2\t506.0\t12.3%\n\tThree Months Ended September 30\t\t\n(In millions)\t2020\t2019\t% Change vs. Prior Year\nNet Sales\t\t\t\nPlumbing\t590.6\t514.1\t14.9%\nDoors & Security\t406.7\t355.2\t14.5\nCabinets\t654.8\t589.7\t11.0\nNet sales\t1652.1\t1459.0\t13.2%\nOperating Income (Loss)\t\t\t\nPlumbing\t116.6\t112.0\t4.1%\nDoors & Security\t66.8\t50.1\t33.3\nCabinets\t82.1\t25.1\t227.1\nLess: Corporate expenses\t(25.3)\t(19.2)\t(31.8)\nOperating income\t240.2\t168.0\t43.0%\n", "q10k_tbl_22": "(In millions)\tNine Months Ended September 30 2020\t\t\tNine Months Ended September 30 2019\t\t\n\tRestructuring Charges\tOther Charges (a)\tTotal Charges\tRestructuring Charges\tOther Charges (a)\tTotal Charges\nPlumbing\t7.2\t0.1\t7.3\t3.5\t5.6\t9.1\nDoors & Security\t3.2\t0.5\t3.7\t1.6\t2.0\t3.6\nCabinets\t4.7\t2.6\t7.3\t6.1\t1.1\t7.2\nCorporate\t1.4\t0.3\t1.7\t0\t0\t0\nTotal\t16.5\t3.5\t20.0\t11.2\t8.7\t19.9\n", "q10k_tbl_23": "(In millions)\tThree Months Ended September 30 2020\t\t\tThree Months Ended September 30 2019\t\t\n\tRestructuring Charges\tOther Charges (a)\tTotal Charges\tRestructuring Charges\tOther Charges (a)\tTotal Charges\nPlumbing\t4.0\t2.4\t6.4\t0.2\t(0.2)\t0\nDoors & Security\t0\t(0.3)\t(0.3)\t1.5\t0\t1.5\nCabinets\t(2.4)\t0.3\t(2.1)\t3.8\t0.4\t4.2\nTotal\t1.6\t2.4\t4.0\t5.5\t0.2\t5.7\n", "q10k_tbl_24": "(In millions)\tBalance at 12/31/19\t2020 Provision\tCash Expenditures (a)\tNon-Cash Write-offs\tBalance at 9/30/20\nWorkforce reduction costs\t6.7\t16.0\t(12.2)\t0\t10.5\nOther\t0.1\t0.5\t(0.6)\t0\t0\n\t6.8\t16.5\t(12.8)\t0\t10.5\n", "q10k_tbl_25": "(In millions)\tBalance at 12/31/18\t2019 Provision\tCash Expenditures (a)\tNon-Cash Write-offs\tBalance at 9/30/19\nWorkforce reduction costs\t9.9\t10.2\t(10.1)\t(0.1)\t9.9\nOther\t0.6\t1.0\t(1.2)\t0\t0.4\n\t10.5\t11.2\t(11.3)\t(0.1)\t10.3\n", "q10k_tbl_26": "(In millions except per share data)\tNine Months Ended September 30\t\tThree Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income\t390.8\t327.3\t165.8\t105.7\nLess: Noncontrolling interest\t1.3\t(0.5)\t1.2\t0.1\nNet income attributable to Fortune Brands\t389.5\t327.8\t164.6\t105.6\nBasic earnings per common share\t2.81\t2.34\t1.19\t0.76\nDiluted earnings per common share\t2.78\t2.32\t1.17\t0.75\nBasic average shares outstanding\t138.6\t140.0\t138.6\t139.5\nStock-based awards\t1.4\t1.4\t1.9\t1.4\nDiluted average shares outstanding\t140.0\t141.4\t140.5\t140.9\nAntidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share\t1.1\t2.2\t0.3\t1.7\n", "q10k_tbl_27": "\tNet Sales\t\t\n(In millions)\t2020\t2019\t% Change vs. Prior Year\nPlumbing\t1564.4\t1478.8\t5.8%\nDoors & Security\t1052.7\t1017.6\t3.4\nCabinets\t1813.5\t1797.7\t0.9\nNet sales\t4430.6\t4294.1\t3.2%\n\tOperating Income (Loss)\t\t\n\t2020\t2019\t% Change vs. Prior Year\nPlumbing\t330.6\t307.9\t7.4%\nDoors & Security\t143.5\t122.5\t17.1\nCabinets\t163.1\t134.0\t21.7\nLess: Corporate expenses\t(69.0)\t(58.4)\t(18.2)\nOperating income\t568.2\t506.0\t12.3%\n", "q10k_tbl_28": "\tNet Sales\t\t\n(In millions)\t2020\t2019\t% Change vs. Prior Year\nPlumbing\t590.6\t514.1\t14.9%\nDoors & Security\t406.7\t355.2\t14.5\nCabinets\t654.8\t589.7\t11.0\nNet sales\t1652.1\t1459.0\t13.2%\n\tOperating Income (Loss)\t\t\n\t2020\t2019\t% Change vs. Prior Year\nPlumbing\t116.6\t112.0\t4.1%\nDoors & Security\t66.8\t50.1\t33.3\nCabinets\t82.1\t25.1\t227.1\nLess: Corporate expenses\t(25.3)\t(19.2)\t(31.8)\nOperating income\t240.2\t168.0\t43.0%\n", "q10k_tbl_29": "\t\t\t\tNet Carrying Value\t\n(in millions)\tPrincipal Amount\tIssuance Date\tMaturity Date\tSeptember 30 2020\tDecember 31 2019\n3.000% Senior Notes\t400.0\tJune 2015\tJune 2020\t0\t399.7\n4.000% Senior Notes\t500.0\tJune 2015\tJune 2025\t496.4\t495.8\n4.000% Senior Notes (the \"2018 Notes\")\t600.0\tSeptember 2018\tSeptember 2023\t596.8\t596.1\n3.250% Senior Notes\t700.0\tSeptember 2019\tSeptember 2029\t693.3\t692.7\nTotal Senior Notes\t\t\t\t1786.5\t2184.3\n", "q10k_tbl_30": "(In millions)\tNine Months Ended September 30\t\n\t2020\t2019\nNet cash provided by operating activities\t506.8\t353.8\nNet cash used in investing activities\t(124.1)\t(78.1)\nNet cash used in financing activities\t(308.8)\t(201.9)\nEffect of foreign exchange rate changes on cash\t1.9\t(1.2)\nNet increase in cash and cash equivalents\t75.8\t72.6\n", "q10k_tbl_31": "Three Months Ended September 30 2020\tTotal number of shares purchased (a)\tAverage price paid per share\tTotal number of shares purchased as part of publicly announced plans or programs (a)\tMaximum dollar amount that may yet be purchased under the plans or programs (a)\nJuly 1 - July 31\t0\t0\t0\t0\nAugust 1 - August 31\t0\t0\t0\t0\nSeptember 1 - September 30\t0\t0\t0\t500000000\nTotal\t0\t0\t0\t\n", "q10k_tbl_32": "Authorization date\tAnnouncement date\tAuthorization amount of shares of outstanding common stock\tExpiration date\nSeptember 21 2020\tSeptember 21 2020\t500 million\tSeptember 21 2022\nJuly 13 2018\tJuly 16 2018\t400 million\tJuly 13 2020\n", "q10k_tbl_33": "3(i)\tRestated Certificate of Incorporation of Fortune Brands Home & Security Inc. incorporated herein by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 5 2012 Commission file number 1-35166.\n3(ii)\tAmended and Restated By-laws of Fortune Brands Home & Security Inc. as adopted September 27 2011 incorporated herein by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the SEC on September 30 2011 Commission file number 1-35166.\n31.1*\tCertificate of Chief Executive Officer Required Under Section 302 of the Sarbanes-Oxley Act of 2002.\n31.2*\tCertificate of Chief Financial Officer Required Under Section 302 of the Sarbanes-Oxley Act of 2002.\n32.*\tJoint CEO/CFO Certificate Required Under Section 906 of the Sarbanes-Oxley Act of 2002.\n101.*\tThe following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30 2020 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) the Cover Page (ii) the Condensed Consolidated Statements of Comprehensive Income (iii) the Condensed Consolidated Balance Sheets (iv) the Condensed Consolidated Statements of Cash Flows (v) the Condensed Consolidated Statements of Equity and (vi) the Notes to the Condensed Consolidated Financial Statements.\n104.*\tCover Page Interactive Data File (embedded within the iXBRL document).\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_1", "cf": "q10k_tbl_3"}None
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits
Exhibits
EX-31.1
fbhs-ex311_6.htm
EX-31.2
fbhs-ex312_8.htm
EX-32
fbhs-ex32_7.htm
Fortune Brands Earnings 2020-09-30
Balance Sheet
Income Statement
Cash Flow
Assets, Equity
Rev, G Profit, Net Income
Ops, Inv, Fin
fbhs-10q_20200930.htm
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It also provides optional expedients to enable the continuance of hedge accounting where certain hedging relationships are impacted by reference rate reform. This optional guidance is effective immediately, and available to be used through December 31, 2022. 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period fromto
Commission file number 1-35166
FORTUNE BRANDS HOME & SECURITY, INC.
(Exact name of Registrant as specified in its charter)
Delaware
62-1411546
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
520 Lake Cook Road, Deerfield, Illinois60015-5611
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (847) 484-4400
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
FBHS
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒Yes☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, at October 16, 2020 was 138,928,712.
PART I. FINANCIAL INFORMATION
Item 1.
FINANCIAL STATEMENTS.
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Nine and Three Months Ended September 30, 2020 and 2019
(In millions, except per share amounts)
(Unaudited)
Nine Months Ended
Three Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net sales
$
4,430.6
$
4,294.1
$
1,652.1
$
1,459.0
Cost of products sold
2,873.9
2,773.5
1,071.5
934.8
Selling, general and administrative expenses
918.4
943.9
328.3
311.3
Amortization of intangible assets
31.1
30.0
10.5
9.9
Asset impairment charges
22.5
29.5
—
29.5
Restructuring charges
16.5
11.2
1.6
5.5
Operating income
568.2
506.0
240.2
168.0
Interest expense
64.4
71.8
20.1
23.6
Other income, net
(13.4
)
(2.2
)
(2.1
)
(0.3
)
Income before taxes
517.2
436.4
222.2
144.7
Income tax
121.7
109.1
54.0
39.0
Income after tax
395.5
327.3
168.2
105.7
Equity in losses of affiliate
4.7
—
2.4
—
Net income
390.8
327.3
165.8
105.7
Less: Noncontrolling interests
1.3
(0.5
)
1.2
0.1
Net income attributable to Fortune Brands
$
389.5
$
327.8
$
164.6
$
105.6
Basic earnings per common share
$
2.81
$
2.34
$
1.19
$
0.76
Diluted earnings per common share
$
2.78
$
2.32
$
1.17
$
0.75
Comprehensive income
$
371.9
$
327.4
$
184.6
$
94.3
See notes to condensed consolidated financial statements.
2
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
September 30,
2020
December 31,
2019
Assets
Current assets
Cash and cash equivalents
$
464.5
$
387.9
Accounts receivable less allowances for discounts and doubtful accounts
765.2
624.8
Inventories
738.3
718.6
Other current assets
170.0
166.9
Total current assets
2,138.0
1,898.2
Property, plant and equipment, net of accumulated depreciation
791.7
824.2
Operating lease assets
166.9
165.6
Goodwill
2,085.2
2,090.2
Other intangible assets, net of accumulated amortization
1,111.2
1,168.9
Other assets
226.0
144.2
Total assets
$
6,519.0
$
6,291.3
Liabilities and equity
Current liabilities
Short-term debt
$
—
$
399.7
Accounts payable
544.1
460.0
Other current liabilities
590.9
549.6
Total current liabilities
1,135.0
1,409.3
Long-term debt
2,086.5
1,784.6
Deferred income taxes
149.2
157.2
Accrued defined benefit plans
180.2
201.4
Operating lease liabilities
139.1
139.8
Other non-current liabilities
200.4
171.2
Total liabilities
3,890.4
3,863.5
Commitments and contingencies (see Note 17)
Equity
Fortune Brands equity
Common stock(a)
1.8
1.8
Paid-in capital
2,903.3
2,813.8
Accumulated other comprehensive loss
(91.5
)
(72.6
)
Retained earnings
2,052.7
1,763.0
Treasury stock
(2,237.7
)
(2,079.4
)
Total Fortune Brands equity
2,628.6
2,426.6
Noncontrolling interests
—
1.2
Total equity
2,628.6
2,427.8
Total liabilities and equity
$
6,519.0
$
6,291.3
(a)
Common stock, par value $0.01 per share; 183.8 million shares and 181.9 million shares issued at September 30, 2020 and December 31, 2019, respectively.
See notes to condensed consolidated financial statements.
3
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2020 and 2019
(In millions)
(Unaudited)
2020
2019
Operating activities
Net income
$
390.8
$
327.3
Non-cash pre-tax expense:
Depreciation
85.8
82.7
Amortization of intangibles
31.1
30.0
Non-cash lease expense
26.6
26.5
Stock-based compensation
33.5
22.9
Recognition of actuarial losses
0.6
2.1
Deferred taxes
(17.0
)
(1.8
)
Asset impairment charges
22.5
31.2
Amortization of deferred financing fees
3.3
2.4
Equity in losses of affiliate
4.7
—
Gain on equity investments
(6.6
)
—
Loss (gain) on sale of property, plant and equipment
1.3
(1.0
)
Changes in assets and liabilities:
Increase in accounts receivable
(164.4
)
(68.4
)
Increase in inventories
(20.5
)
(81.2
)
Increase (decrease) in accounts payable
88.5
(11.1
)
Increase in other assets
(21.2
)
(18.3
)
Increase in accrued expenses and other liabilities
25.0
6.0
Increase in accrued taxes
22.8
4.5
Net cash provided by operating activities
506.8
353.8
Investing activities
Capital expenditures (a)
(66.2
)
(82.4
)
Proceeds from the disposition of assets
1.5
4.2
Cost of investments in equity securities
(59.4
)
—
Other investing activities, net
—
0.1
Net cash used in investing activities
(124.1
)
(78.1
)
Financing activities
Decrease in short-term debt
—
(525.0
)
Issuance of long-term debt
1,020.0
1,494.3
Repayment of long-term debt
(1,120.0
)
(955.0
)
Proceeds from the exercise of stock options
56.0
6.9
Treasury stock purchases
(150.0
)
(100.0
)
Employee withholding taxes related to stock-based compensation
(8.3
)
(8.5
)
Deferred acquisition payments
—
(19.0
)
Dividends to stockholders
(99.9
)
(92.3
)
Dividends paid to non-controlling interests
(2.5
)
—
Other financing, net
(4.1
)
(3.3
)
Net cash used in financing activities
(308.8
)
(201.9
)
Effect of foreign exchange rate changes on cash
1.9
(1.2
)
Net increase in cash and cash equivalents
$
75.8
$
72.6
Cash, cash equivalents and restricted cash(b) at beginning of period
$
394.9
$
270.7
Cash, cash equivalents and restricted cash(b) at end of period
$
470.7
$
343.3
(a)
Capital expenditures of $3.5 million and $9.0 million that had not been paid as of September 30, 2020 and 2019, respectively, were excluded from the Statement of Cash Flows.
(b)
Restricted cash of $1.0 million and $5.2 million is included in Other current assets and Other assets, respectively, as of September 30, 2020 and restricted cash of $0.8 million and $6.3 million is included in Other current assets and Other assets, respectively, as of September 30, 2019. Restricted cash of $0.8 million and $6.1 million is included in Other current assets and Other assets, respectively, as of December 31, 2019.
See notes to condensed consolidated financial statements.
4
FORTUNE BRANDS HOME & SECURITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
For the Nine and Three Months Ended September 30, 2020 and 2019