Use of non-GAAP financial information
This press release includes measures not derived in accordance with
generally accepted accounting principles (“GAAP”), such as diluted
earnings per share before charges/gains, net charges, net debt-to-EBITDA
before charges/gains ratio, operating income before charges/gains, and
free cash flow. These measures should not be considered in isolation or
as a substitute for any measure derived in accordance with GAAP and may
also be inconsistent with similar measures presented by other companies.
Reconciliations of these measures to the most closely comparable GAAP
measures, and reasons for the Company’s use of these measures, are
presented in the attached pages.
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
Net Sales (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kitchen & Bath Cabinetry
|
|
$
|
329.7
|
|
|
$
|
310.7
|
|
|
6.1
|
|
|
$
|
987.1
|
|
|
$
|
954.6
|
|
|
3.4
|
|
|
|
Plumbing & Accessories
|
|
|
278.2
|
|
|
|
249.1
|
|
|
11.7
|
|
|
|
804.2
|
|
|
|
704.7
|
|
|
14.1
|
|
|
|
Advanced Material Windows & Door Systems
|
|
|
158.4
|
|
|
|
148.2
|
|
|
6.9
|
|
|
|
431.4
|
|
|
|
399.2
|
|
|
8.1
|
|
|
|
Security & Storage
|
|
|
142.8
|
|
|
|
140.0
|
|
|
2.0
|
|
|
|
420.5
|
|
|
|
394.0
|
|
|
6.7
|
|
|
|
Total Net Sales
|
|
$
|
909.1
|
|
|
$
|
848.0
|
|
|
7.2
|
|
|
$
|
2,643.2
|
|
|
$
|
2,452.5
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) Before Charges/Gains
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kitchen & Bath Cabinetry
|
|
$
|
13.1
|
|
|
$
|
8.0
|
|
|
63.8
|
|
|
$
|
27.7
|
|
|
$
|
21.5
|
|
|
28.8
|
|
|
|
Plumbing & Accessories
|
|
|
48.5
|
|
|
|
38.7
|
|
|
25.3
|
|
|
|
127.5
|
|
|
|
98.8
|
|
|
29.0
|
|
|
|
Advanced Material Windows & Door Systems
|
|
|
6.2
|
|
|
|
1.9
|
|
|
226.3
|
|
|
|
(0.1
|
)
|
|
|
(6.7
|
)
|
|
98.5
|
|
|
|
Security & Storage
|
|
|
20.8
|
|
|
|
20.0
|
|
|
4.0
|
|
|
|
53.7
|
|
|
|
45.7
|
|
|
17.5
|
|
|
|
Corporate expense
|
|
|
(15.7
|
)
|
|
|
(14.4
|
)
|
|
(9.0
|
)
|
|
|
(42.3
|
)
|
|
|
(40.4
|
)
|
|
(4.7
|
)
|
|
|
Total Operating Income Before Charges/Gains
|
|
$
|
72.9
|
|
|
$
|
54.2
|
|
|
34.5
|
|
|
$
|
166.5
|
|
|
$
|
118.9
|
|
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Before Charges/Gains
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
|
45.0
|
|
|
$
|
0.66
|
|
|
$
|
0.44
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Before Charges/Gains
(c)
|
|
$
|
96.0
|
|
|
$
|
77.5
|
|
|
23.9
|
|
|
$
|
236.4
|
|
|
$
|
191.9
|
|
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating income (loss) before charges/gains is operating income
derived in accordance with U.S. generally accepted accounting
principles ("GAAP") including estimated incremental standalone
corporate expenses for 2011 periods and excluding restructuring and
other charges, business separation costs, income from a contingent
acquisition consideration adjustment and the impact of income and
expense from actuarial gains or losses associated with our defined
benefit plans. Operating income (loss) before charges/gains is a
measure not derived in accordance with GAAP. Management uses this
measure to determine the returns generated by FBHS and to evaluate
and identify cost-reduction initiatives. Management believes this
measure provides investors with helpful supplemental information
regarding the underlying performance of the Company from period to
period. This measure may be inconsistent with similar measures
presented by other companies. A reconciliation to operating income,
the most comparable GAAP measure, is included in subsequent tables.
|
|
|
|
|
(b) Diluted EPS before charges/gains is net income calculated on a
diluted per-share basis excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment, and
the impact of income and expense from actuarial gains or losses
associated with our defined benefit plans. Diluted EPS before
charges/gains for the three and nine months ended September 30, 2011
have also been adjusted to reflect an adjusted pro forma effective
tax rate of 35%, capital structure changes that reflect the
borrowing arrangements and debt level of the Company as of October
4, 2011, the 1:1 share distribution resulting from the spin-off of
the Company from Fortune Brands, Inc., estimated incremental
standalone corporate expenses for 2011 periods and business
separation costs. Diluted EPS before charges/gains is a measure not
derived in accordance with GAAP. Management uses this measure to
evaluate the overall performance of the Company and believes this
measure provides investors with helpful supplemental information
regarding the underlying performance of the Company from period to
period. This measure may be inconsistent with similar measures
presented by other companies. A reconciliation to diluted EPS, the
most closely comparable GAAP measure, is included in subsequent
tables.
|
|
|
|
|
(c) EBITDA before charges/gains is net income derived in accordance
with GAAP including estimated incremental standalone corporate
expenses for 2011 periods and excluding restructuring and other
charges, income from a contingent acquisition consideration
adjustment, business separation costs, the impact of income and
expense from actuarial gains or losses associated with our defined
benefit plans, depreciation, amortization of intangible assets,
related party interest expense, net, external interest expense, and
income taxes. EBITDA before charges/gains is a measure not derived
in accordance with GAAP. Management uses this measure to assess
returns generated by FBHS. Management believes this measure provides
investors with helpful supplemental information about the Company's
ability to fund internal growth, make acquisitions and repay debt
and related interest. This measure may be inconsistent with similar
measures presented by other companies. A reconciliation to net
income, the most closely comparable GAAP measure, is included in
subsequent tables.
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEET (GAAP)
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
216.1
|
|
$
|
120.8
|
|
|
Accounts receivable, net
|
|
|
407.1
|
|
|
346.1
|
|
|
Inventories
|
|
|
392.3
|
|
|
336.3
|
|
|
Other current assets
|
|
|
122.9
|
|
|
150.3
|
|
|
Total current assets
|
|
|
1,138.4
|
|
|
953.5
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
497.8
|
|
|
525.8
|
|
|
Goodwill resulting from business acquisitions
|
|
|
1,368.4
|
|
|
1,366.6
|
|
|
Other intangible assets, net of accumulated amortization
|
|
|
698.1
|
|
|
702.9
|
|
|
Other assets
|
|
|
81.8
|
|
|
89.1
|
|
|
Total assets
|
|
$
|
3,784.5
|
|
$
|
3,637.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Notes payable to banks
|
|
$
|
5.3
|
|
$
|
3.8
|
|
|
Current portion of long-term debt
|
|
|
-
|
|
|
17.5
|
|
|
Accounts payable
|
|
|
253.5
|
|
|
260.7
|
|
|
Other current liabilities
|
|
|
339.0
|
|
|
315.8
|
|
|
Total current liabilities
|
|
|
597.8
|
|
|
597.8
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
339.3
|
|
|
389.3
|
|
|
Deferred income taxes
|
|
|
205.0
|
|
|
204.1
|
|
|
Accrued defined benefit plans
|
|
|
229.9
|
|
|
248.2
|
|
|
Other non-current liabilities
|
|
|
78.2
|
|
|
74.0
|
|
|
Total liabilities
|
|
|
1,450.2
|
|
|
1,513.4
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
2,330.9
|
|
|
2,120.8
|
|
|
Noncontrolling interests
|
|
|
3.4
|
|
|
3.7
|
|
|
Total equity
|
|
|
2,334.3
|
|
|
2,124.5
|
|
|
Total liabilities and equity
|
|
$
|
3,784.5
|
|
$
|
3,637.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
$
|
101.1
|
|
|
$
|
36.3
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
79.0
|
|
|
|
76.0
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
|
5.6
|
|
|
|
3.4
|
|
|
|
|
|
|
|
Other noncash items
|
|
|
|
17.4
|
|
|
|
11.8
|
|
|
|
|
|
|
|
Changes in assets and liabilities, net
|
|
|
|
(83.7
|
)
|
|
|
(104.5
|
)
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
119.4
|
|
|
$
|
23.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures, net of proceeds from asset sales
|
|
|
$
|
(33.4
|
)
|
|
$
|
(38.0
|
)
|
|
|
|
|
|
|
Acquisitions, net of cash acquired
|
|
|
|
-
|
|
|
|
(6.0
|
)
|
|
|
|
|
|
|
Other investing activities
|
|
|
|
(5.0
|
)
|
|
|
-
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
$
|
(38.4
|
)
|
|
$
|
(44.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
$
|
11.2
|
|
|
$
|
88.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash
|
|
|
|
3.1
|
|
|
|
(1.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
$
|
95.3
|
|
|
$
|
66.9
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
120.8
|
|
|
|
60.7
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
216.1
|
|
|
$
|
127.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH FLOW
|
|
|
Nine Months Ended September 30,
|
|
2012 Full Year
|
|
|
|
|
|
2012
|
|
2011
|
|
Target
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
(a)
|
|
|
$
|
166.6
|
|
|
$
|
(15.0
|
)
|
|
In excess of
|
|
$
|
275
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
46.0
|
|
|
|
41.4
|
|
|
|
|
|
80
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the sale of assets
|
|
|
|
12.6
|
|
|
|
3.4
|
|
|
|
|
|
15
|
|
|
Proceeds from the exercise of stock options
|
|
|
|
80.6
|
|
|
|
-
|
|
|
|
|
|
85
|
|
|
Cash Flow From Operations (GAAP)
|
|
|
$
|
119.4
|
|
|
$
|
23.0
|
|
|
In excess of
|
|
$
|
255
|
|
(a) Free cash flow is cash flow from operations calculated in
accordance with GAAP less net capital expenditures (capital
expenditures less proceeds from the sale of assets including
property, plant and equipment) plus proceeds from the exercise of
stock options. Free cash flow is a measure not derived in accordance
with GAAP. Management believes that free cash flow provides
investors with helpful supplemental information about the Company's
ability to fund internal growth, make acquisitions, repay debt and
related interest, pay dividends and repurchase common stock. This
measure may be inconsistent with similar measures presented by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
CONSOLIDATED STATEMENT OF INCOME (GAAP)
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
909.1
|
|
|
$
|
848.0
|
|
|
7.2
|
|
|
$
|
2,643.2
|
|
|
$
|
2,452.5
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
606.8
|
|
|
|
592.2
|
|
|
2.5
|
|
|
|
1,776.7
|
|
|
|
1,695.1
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and administrative expenses
|
|
|
236.2
|
|
|
|
228.0
|
|
|
3.6
|
|
|
|
699.6
|
|
|
|
648.4
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
2.4
|
|
|
|
3.5
|
|
|
(31.4
|
)
|
|
|
8.6
|
|
|
|
11.0
|
|
(21.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
3.1
|
|
|
|
1.1
|
|
|
181.8
|
|
|
|
4.1
|
|
|
|
1.8
|
|
127.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business separation costs
|
|
|
-
|
|
|
|
2.4
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
2.4
|
|
(100.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
60.6
|
|
|
|
20.8
|
|
|
191.3
|
|
|
|
154.2
|
|
|
|
93.8
|
|
64.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party interest expense, net
|
|
|
-
|
|
|
|
0.2
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
23.2
|
|
(100.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External interest expense (income)
|
|
|
2.0
|
|
|
|
(0.1
|
)
|
|
(4,100.0
|
)
|
|
|
6.6
|
|
|
|
0.2
|
|
2,673.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense, net
|
|
|
(0.8
|
)
|
|
|
1.8
|
|
|
(143.5
|
)
|
|
|
(0.6
|
)
|
|
|
1.9
|
|
(131.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
59.4
|
|
|
|
18.9
|
|
|
215.0
|
|
|
|
148.2
|
|
|
|
68.5
|
|
116.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
19.2
|
|
|
|
16.4
|
|
|
17.1
|
|
|
|
47.1
|
|
|
|
32.2
|
|
46.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
40.2
|
|
|
$
|
2.5
|
|
|
1,532.8
|
|
|
$
|
101.1
|
|
|
$
|
36.3
|
|
178.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interests
|
|
|
0.2
|
|
|
|
0.3
|
|
|
(33.3
|
)
|
|
|
0.8
|
|
|
|
0.9
|
|
(11.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fortune Brands Home & Security
|
|
$
|
40.0
|
|
|
$
|
2.2
|
|
|
1,750.1
|
|
|
$
|
100.3
|
|
|
$
|
35.4
|
|
183.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share, Diluted
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
2,300.0
|
|
|
$
|
0.61
|
|
|
$
|
0.23
|
|
165.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding
(a)
|
|
|
167.0
|
|
|
|
155.1
|
|
|
7.7
|
|
|
|
165.1
|
|
|
|
155.1
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Diluted earnings per common share and the average number of
shares of common stock outstanding in the three and nine months
ended September 30, 2011 were retrospectively restated adjusting the
number of shares of Fortune Brands Home & Security, Inc. common
stock using the number of shares of common stock outstanding as of
September 27, 2011. In the periods prior to the spin-off of Fortune
Brands Home & Security, Inc. from Fortune Brands, Inc., the same
number of shares was used to calculate diluted earnings per share
since no Fortune Brands Home & Security, Inc. stock-based awards
were outstanding at that time.
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
Net Sales (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kitchen & Bath Cabinetry
|
|
$
|
329.7
|
|
|
$
|
310.7
|
|
|
6.1
|
|
|
$
|
987.1
|
|
|
$
|
954.6
|
|
|
3.4
|
|
|
|
Plumbing & Accessories
|
|
|
278.2
|
|
|
|
249.1
|
|
|
11.7
|
|
|
|
804.2
|
|
|
|
704.7
|
|
|
14.1
|
|
|
|
Advanced Material Windows & Door Systems
|
|
|
158.4
|
|
|
|
148.2
|
|
|
6.9
|
|
|
|
431.4
|
|
|
|
399.2
|
|
|
8.1
|
|
|
|
Security & Storage
|
|
|
142.8
|
|
|
|
140.0
|
|
|
2.0
|
|
|
|
420.5
|
|
|
|
394.0
|
|
|
6.7
|
|
|
|
Total Net Sales
|
|
$
|
909.1
|
|
|
$
|
848.0
|
|
|
7.2
|
|
|
$
|
2,643.2
|
|
|
$
|
2,452.5
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kitchen & Bath Cabinetry
|
|
$
|
1.5
|
|
|
$
|
7.8
|
|
|
(80.8
|
)
|
|
$
|
14.1
|
|
|
$
|
20.9
|
|
|
(32.5
|
)
|
|
|
Plumbing & Accessories
|
|
|
48.5
|
|
|
|
38.6
|
|
|
25.6
|
|
|
|
127.5
|
|
|
|
98.9
|
|
|
28.9
|
|
|
|
Advanced Material Windows & Door Systems
|
|
|
9.2
|
|
|
|
(0.3
|
)
|
|
3,166.7
|
|
|
|
4.4
|
|
|
|
(9.6
|
)
|
|
145.8
|
|
|
|
Security & Storage
|
|
|
20.8
|
|
|
|
20.0
|
|
|
4.0
|
|
|
|
54.2
|
|
|
|
45.7
|
|
|
18.6
|
|
|
|
Corporate Expenses
(a)
|
|
|
(19.4
|
)
|
|
|
(45.3
|
)
|
|
57.2
|
|
|
|
(46.0
|
)
|
|
|
(62.1
|
)
|
|
25.9
|
|
|
|
Total Operating Income (GAAP)
|
|
$
|
60.6
|
|
|
$
|
20.8
|
|
|
191.3
|
|
|
$
|
154.2
|
|
|
$
|
93.8
|
|
|
64.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS) BEFORE
CHARGES/GAINS RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) Before Charges/Gains
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kitchen & Bath Cabinetry
|
|
$
|
13.1
|
|
|
$
|
8.0
|
|
|
63.8
|
|
|
$
|
27.7
|
|
|
$
|
21.5
|
|
|
28.8
|
|
|
|
Plumbing & Accessories
|
|
|
48.5
|
|
|
|
38.7
|
|
|
25.3
|
|
|
|
127.5
|
|
|
|
98.8
|
|
|
29.0
|
|
|
|
Advanced Material Windows & Door Systems
|
|
|
6.2
|
|
|
|
1.9
|
|
|
226.3
|
|
|
|
(0.1
|
)
|
|
|
(6.7
|
)
|
|
98.5
|
|
|
|
Security & Storage
|
|
|
20.8
|
|
|
|
20.0
|
|
|
4.0
|
|
|
|
53.7
|
|
|
|
45.7
|
|
|
17.5
|
|
|
|
Corporate expenses
|
|
|
(15.7
|
)
|
|
|
(14.4
|
)
|
|
(9.0
|
)
|
|
|
(42.3
|
)
|
|
|
(40.4
|
)
|
|
(4.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Income Before Charges/Gains
|
|
|
72.9
|
|
|
|
54.2
|
|
|
34.5
|
|
|
|
166.5
|
|
|
|
118.9
|
|
|
40.0
|
|
|
|
Restructuring and other charges
(c)
|
|
|
(8.6
|
)
|
|
|
(2.5
|
)
|
|
(242.6
|
)
|
|
|
(10.6
|
)
|
|
|
(3.4
|
)
|
|
(211.4
|
)
|
|
|
Contingent acquisition consideration adjustment
(d)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
2.0
|
|
|
|
-
|
|
|
100.0
|
|
|
|
Standalone corporate costs
(e)
|
|
|
-
|
|
|
|
3.8
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
13.8
|
|
|
(100.0
|
)
|
|
|
Business separation costs
(f)
|
|
|
-
|
|
|
|
(2.4
|
)
|
|
100.0
|
|
|
|
-
|
|
|
|
(2.4
|
)
|
|
100.0
|
|
|
|
Defined benefit plan actuarial losses
(g)
|
|
|
(3.7
|
)
|
|
|
(32.3
|
)
|
|
88.5
|
|
|
|
(3.7
|
)
|
|
|
(33.1
|
)
|
|
88.8
|
|
|
|
Total Operating Income (GAAP)
|
|
$
|
60.6
|
|
|
$
|
20.8
|
|
|
191.3
|
|
|
$
|
154.2
|
|
|
$
|
93.8
|
|
|
64.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For 2011, corporate expenses include allocations of certain
Fortune Brands, Inc. general corporate expenses incurred directly by
Fortune Brands, Inc. These allocated expenses include costs
associated with legal, finance, treasury, accounting, internal audit
and general management services. They also include the components of
defined benefit plan expense other than service cost including
actuarial gains and losses.
|
|
|
|
|
|
(b) Operating income (loss) before charges/gains is operating income
derived in accordance with GAAP including estimated incremental
standalone corporate expenses for 2011 periods and excluding
restructuring and other charges, business separation costs, income
from a contingent acquisition consideration adjustment and the
impact of income and expense from actuarial gains or losses
associated with our defined benefit plans. Operating income (loss)
before charges/gains is a measure not derived in accordance with
GAAP. Management uses this measure to determine the returns
generated by FBHS and to evaluate and identify cost-reduction
initiatives. Management believes this measure provides investors
with helpful supplemental information regarding the underlying
performance of the Company from period to period. This measure may
be inconsistent with similar measures presented by other companies.
|
|
|
|
|
|
(c) Restructuring charges are costs incurred to implement
significant cost reduction initiatives and include workforce
reduction costs; "other charges" represent charges directly related
to restructuring initiatives that cannot be reported as
restructuring under GAAP. Such costs may include losses on disposal
of inventories, trade receivables allowances from exiting product
lines and accelerated depreciation resulting from the closure of
facilities and gains or losses associated with the sale of closed
facilities.
|
|
|
|
|
|
(d) Represents gain attributable to reduction of estimated liability
for contingent consideration associated with a business acquisition.
|
|
|
|
|
|
(e) The Company estimates that it would have incurred $3.8 million
and $13.8 million of incremental corporate expenses if it had
functioned as an independent standalone public company for the three
months and nine months ended September 30, 2011.
|
|
|
|
|
|
(f) Business separation costs are costs related to non-cash
non-recurring costs associated with the modification of share-based
compensation awards as a result of the spin-off of FBHS from Fortune
Brands, Inc.
|
|
|
|
|
|
(g) Represents actuarial losses associated with our defined benefit
plans.
|
|
|
|
|
DILUTED EPS BEFORE CHARGES/GAINS
RECONCILIATION
|
|
Diluted EPS before charges/gains is net income calculated on a
diluted per-share basis excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment, and
the impact of income and expense from actuarial gains or losses
associated with our defined benefit plans. Diluted EPS before
charges/gains for the three and nine months ended September 30, 2011
have also been adjusted to reflect an adjusted pro forma effective
tax rate of 35%, capital structure changes that reflect the
borrowing arrangements and debt level of the Company as of October
4, 2011, the 1:1 share distribution resulting from the spin-off of
the Company from Fortune Brands, Inc., estimated incremental
standalone corporate expenses, and business separation costs.
Diluted EPS before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the
overall performance of the Company and believes this measure
provides investors with helpful supplemental information regarding
the underlying performance of the Company from period to period.
This measure may be inconsistent with similar measures presented by
other companies.
|
|
|
|
|
For the third quarter of 2012, diluted EPS before charges/gains is
net income calculated on a diluted per-share basis excluding $8.6
million ($5.7 million after tax or $0.04 per diluted share) of
restructuring and other charges and the impact of income and expense
from actuarial gains or losses associated with our defined benefit
plans of $3.7 million ($2.4 million after tax or $0.01 per diluted
share).
|
|
|
|
|
For the nine months ended September 30, 2012, diluted EPS before
charges/gains is net income calculated on a diluted per-share basis
excluding $10.6 million ($7.0 million after tax or $0.04 per diluted
share) of restructuring and other charges, income from a contingent
acquisition consideration adjustment of $2.0 million ($1.3 million
after tax) and the impact of income and expense from actuarial gains
or losses associated with our defined benefit plans of $3.7 million
($2.4 million after tax or $0.01 per diluted share).
|
|
|
|
|
For the third quarter of 2011, diluted EPS before charges/gains is
net income calculated on a diluted per-share basis adjusted to
reflect estimated incremental standalone corporate costs of $3.8
million ($2.4 million after tax or $0.01 per diluted share), capital
structure changes of $2.9 million ($1.8 million after tax or $0.01
per diluted share) and an adjusted pro forma tax rate adjustment of
$10.3 million ($0.06 per diluted share), and excludes $2.5 million
($1.6 million after tax or $0.01 per diluted share) of restructuring
and other charges, business separation costs of $2.4 million ($1.7
million after tax or $0.01 per diluted share) and the impact of
income and expense from actuarial gains or losses associated with
our defined benefit plans of $32.3 million ($20.2 million after tax
or $0.13 per diluted share).
|
|
|
|
|
For the nine months ended September 30, 2011, diluted EPS before
charges/gains is net income calculated on a diluted per-share basis
adjusted to reflect estimated incremental standalone corporate costs
of $13.8 million ($8.6 million after tax or $0.05 per diluted
share), capital structure changes of $14.4 million ($8.9 million
after tax or $0.06 per diluted share) and an adjusted pro forma tax
rate adjustment of $8.9 million ($0.06 per diluted share), and
excludes $3.4 million ($2.3 million after tax or $0.01 per diluted
share) of restructuring and other charges, business separation costs
of $2.4 million ($1.7 million after tax or $0.01 per diluted share)
and the impact of income and expense from actuarial gains or losses
associated with our defined benefit plans of $33.1 million ($20.7
million after tax or $0.13 per diluted share).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share -
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Before Charges/Gains
|
|
$
|
0.29
|
|
|
$
|
0.20
|
|
|
45.0
|
|
|
$
|
0.66
|
|
|
$
|
0.44
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges
|
|
|
(0.04
|
)
|
|
|
(0.01
|
)
|
|
(300.0
|
)
|
|
|
(0.04
|
)
|
|
|
(0.01
|
)
|
|
(300.0
|
)
|
|
Contingent acquisition consideration adjustment
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Standalone corporate costs
|
|
|
-
|
|
|
|
0.01
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
0.05
|
|
|
(100.0
|
)
|
|
Capital structure change
|
|
|
-
|
|
|
|
0.01
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
100.0
|
|
|
Business separation costs
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
100.0
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
100.0
|
|
|
Adjusted pro forma tax rate adjustment
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
100.0
|
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
100.0
|
|
|
Defined benefit plan actuarial losses
|
|
|
(0.01
|
)
|
|
|
(0.13
|
)
|
|
92.3
|
|
|
|
(0.01
|
)
|
|
|
(0.13
|
)
|
|
92.3
|
|
|
Impact of adjusted pro forma diluted shares outstanding
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
(100.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
2,300.0
|
|
|
$
|
0.61
|
|
|
$
|
0.23
|
|
|
165.2
|
|
|
|
|
|
RECONCILIATION OF FULL YEAR 2012 EARNINGS
GUIDANCE TO GAAP
|
|
|
|
|
For the full year, the Company is targeting diluted EPS before
charges/gains to be in the range of $0.86 to $0.88 per share. On a
GAAP basis, the Company is targeting diluted EPS to be in the range
of $0.80 to $0.83 per share. In addition, on a GAAP basis, based on
current relevant interest rate benchmarks and year-to-date pension
asset returns the Company may incur additional defined benefit plan
net actuarial losses in the range of $0.10 to $0.15 per share in the
fourth quarter of 2012 due to declining discount rates since
December 31, 2011, the last remeasurement date. Any actuarial loss
will be based upon spot discount rates as of December 31, 2012 and
our full year 2012 pension asset returns and may differ materially
from this estimate. A 25 basis point change in our discount rate
impacts our defined benefit liabilities by approximately $25 million.
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
2011 DILUTED EPS BEFORE CHARGES/GAINS
RECONCILIATION
|
|
For the year ended December 31, 2011, diluted EPS before
charges/gains is net income (loss) calculated on a diluted per-share
basis adjusted to reflect the actual number of diluted shares of the
Company as of December 31, 2011 of 160.7 million, estimated
incremental standalone corporate costs of $13.8 million ($8.6
million after tax or $0.05 per diluted share), an adjusted pro forma
effective tax rate adjustment of $12.0 million ($0.07 per share) to
reflect an effective tax rate of 35%, capital structure changes that
reflect the borrowing arrangements and debt level of the Company as
of October 4, 2011 of $14.4 million ($8.9 million after tax or $0.06
per diluted share), and excludes restructuring and other charges of
$20.0 million ($12.5 million after tax or $0.08 per diluted share),
business separation costs of $2.4 million ($1.7 million after tax or
$0.01 per diluted share), asset impairment charges of $90.0 million
($55.3 million after tax or $0.35 per diluted share) and the impact
of income and expenses from actuarial gains or losses associated
with our defined benefit plans of $80.0 million ($49.9 million after
tax or $0.31 per diluted share).
|
|
|
|
|
Diluted EPS before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the
overall performance of the Company and believes this measure
provides investors with helpful supplemental information regarding
the underlying performance of the Company from period to period.
This measure may be inconsistent with similar measures presented by
other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share -
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Before Charges/Gains
|
|
$ 0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
Standalone corporate costs
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Capital structure change
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
Business separation costs
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted pro forma tax rate adjustment
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
Asset impairment charges
|
|
(0.35
|
)
|
|
|
|
|
|
|
|
|
|
Defined benefit plan actuarial losses
|
|
|
|
|
(0.31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
$ (0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EBITDA BEFORE
CHARGES/GAINS TO GAAP NET INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA BEFORE CHARGES/GAINS
|
|
$
|
96.0
|
|
|
$
|
77.5
|
|
|
23.9
|
|
|
$
|
236.4
|
|
|
$
|
191.9
|
|
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
(a)
|
|
$
|
(19.9
|
)
|
|
$
|
(21.6
|
)
|
|
7.9
|
|
|
$
|
(60.7
|
)
|
|
$
|
(63.9
|
)
|
|
5.0
|
|
|
Amortization of intangible assets
|
|
|
(2.4
|
)
|
|
|
(3.5
|
)
|
|
31.4
|
|
|
|
(8.6
|
)
|
|
|
(11.0
|
)
|
|
21.8
|
|
|
Restructuring and other charges
|
|
|
(8.6
|
)
|
|
|
(2.5
|
)
|
|
(242.6
|
)
|
|
|
(10.6
|
)
|
|
|
(3.4
|
)
|
|
(211.4
|
)
|
|
Contingent acquisition consideration adjustment
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
2.0
|
|
|
|
-
|
|
|
100.0
|
|
|
Business separation costs
|
|
|
-
|
|
|
|
(2.4
|
)
|
|
100.0
|
|
|
|
-
|
|
|
|
(2.4
|
)
|
|
100.0
|
|
|
Related party interest expense, net
|
|
|
-
|
|
|
|
(0.2
|
)
|
|
100.0
|
|
|
|
-
|
|
|
|
(23.2
|
)
|
|
100.0
|
|
|
External interest expense (income)
|
|
|
(2.0
|
)
|
|
|
0.1
|
|
|
(4,100.0
|
)
|
|
|
(6.6
|
)
|
|
|
(0.2
|
)
|
|
(2,673.1
|
)
|
|
Standalone corporate expenses
|
|
|
-
|
|
|
|
3.8
|
|
|
(100.0
|
)
|
|
|
-
|
|
|
|
13.8
|
|
|
(100.0
|
)
|
|
Defined benefit plan actuarial losses
|
|
|
(3.7
|
)
|
|
|
(32.3
|
)
|
|
88.5
|
|
|
|
(3.7
|
)
|
|
|
(33.1
|
)
|
|
88.8
|
|
|
Income tax provision
|
|
|
(19.2
|
)
|
|
|
(16.4
|
)
|
|
(17.1
|
)
|
|
|
(47.1
|
)
|
|
|
(32.2
|
)
|
|
(46.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
40.2
|
|
|
$
|
2.5
|
|
|
1,532.8
|
|
|
$
|
101.1
|
|
|
$
|
36.3
|
|
|
178.8
|
|
|
Noncontrolling interests
|
|
|
(0.2
|
)
|
|
|
(0.3
|
)
|
|
33.3
|
|
|
|
(0.8
|
)
|
|
|
(0.9
|
)
|
|
11.1
|
|
|
Net income attributable to Home & Security
|
|
$
|
40.0
|
|
|
$
|
2.2
|
|
|
1,750.1
|
|
|
$
|
100.3
|
|
|
$
|
35.4
|
|
|
183.6
|
|
|
|
|
|
EBITDA before charges/gains is net income derived in accordance with
GAAP including estimated incremental standalone corporate expenses
for 2011 periods and excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment,
business separation costs, the impact of income and expense from
actuarial gains or losses associated with our defined benefit plans,
depreciation, amortization of intangible assets, related party
interest expense, net, external interest expense (income), and
income taxes. EBITDA before charges/gains is a measure not derived
in accordance with GAAP. Management uses this measure to assess
returns generated by FBHS. Management believes this measure provides
investors with helpful supplemental information about the Company's
ability to fund internal growth, make acquisitions and repay debt
and related interest. This measure may be inconsistent with similar
measures presented by other companies.
|
|
|
|
|
(a) Depreciation excludes accelerated depreciation of $9.2 million
and $9.7 million for the three and nine months ended September 30,
2012, respectively, and $1.1 million for the three and nine months
ended September 30, 2011. Accelerated depreciation is included in
restructuring and other charges.
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
Reconciliation of Income Statement - GAAP to Before Charges/Gains
Information
|
|
Three Months Ended September 30,
|
|
$ in millions, except per share amounts
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before Charges/Gains adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
Standalone
|
|
Business
|
|
benefit plan
|
|
Capital
|
|
Pro forma
|
|
Before
|
|
|
|
GAAP
|
|
and other
|
|
corporate
|
|
separation
|
|
actuarial
|
|
structure
|
|
tax rate
|
|
Charges/Gains
|
|
|
|
(unaudited)
|
|
charges
|
|
costs
|
|
costs
|
|
losses
|
|
change
|
|
adjustment
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
THIRD QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
909.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
606.8
|
|
|
(5.5
|
)
|
|
-
|
|
|
-
|
|
|
(1.5
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Selling, general & administrative expenses
|
|
|
236.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.2
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Amortization of intangible assets
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring charges
|
|
|
3.1
|
|
|
(3.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
60.6
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
3.7
|
|
|
-
|
|
|
-
|
|
|
|
72.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External interest expense
|
|
|
2.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Other income, net
|
|
|
(0.8
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Income before income taxes
|
|
|
59.4
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
3.7
|
|
|
-
|
|
|
-
|
|
|
|
71.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
19.2
|
|
|
2.9
|
|
|
-
|
|
|
-
|
|
|
1.3
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
40.2
|
|
|
5.7
|
|
|
-
|
|
|
-
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
|
48.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interests
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Fortune Brands Home & Security, Inc.
|
|
$
|
40.0
|
|
|
5.7
|
|
|
-
|
|
|
-
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
|
48.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
167.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
848.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
592.2
|
|
|
(1.4
|
)
|
|
-
|
|
|
-
|
|
|
(17.0
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Selling, general & administrative expenses
|
|
|
228.0
|
|
|
-
|
|
|
3.8
|
|
|
-
|
|
|
(15.3
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Amortization of intangible assets
|
|
|
3.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring charges
|
|
|
1.1
|
|
|
(1.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Business separation costs
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
(2.4
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
20.8
|
|
|
2.5
|
|
|
(3.8
|
)
|
|
2.4
|
|
|
32.3
|
|
|
-
|
|
|
-
|
|
|
|
54.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party interest expense, net
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.9
|
|
|
-
|
|
|
|
|
External interest income
|
|
|
(0.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Other expense, net
|
|
|
1.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Income before income taxes
|
|
|
18.9
|
|
|
2.5
|
|
|
(3.8
|
)
|
|
2.4
|
|
|
32.3
|
|
|
(2.9
|
)
|
|
-
|
|
|
|
49.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
16.4
|
|
|
0.9
|
|
|
(1.4
|
)
|
|
0.7
|
|
|
12.1
|
|
|
(1.1
|
)
|
|
(10.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
2.5
|
|
|
1.6
|
|
|
(2.4
|
)
|
|
1.7
|
|
|
20.2
|
|
|
(1.8
|
)
|
|
10.3
|
|
|
$
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interests
|
|
|
0.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Fortune Brands Home & Security, Inc.
|
|
$
|
2.2
|
|
|
1.6
|
|
|
(2.4
|
)
|
|
1.7
|
|
|
20.2
|
|
|
(1.8
|
)
|
|
10.3
|
|
|
$
|
31.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
155.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.20
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
Reconciliation of Income Statement - GAAP to Before Charges/Gains
Information
|
|
Nine Months Ended September 30,
|
|
$ in millions, except per share amounts
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before Charges/Gains adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
|
|
|
|
|
|
Defined
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
acquisition
|
|
Standalone
|
|
Business
|
|
benefit plan
|
|
Capital
|
|
Pro forma
|
|
Before
|
|
|
|
GAAP
|
|
and other
|
|
consideration
|
|
corporate
|
|
separation
|
|
actuarial
|
|
structure
|
|
tax rate
|
|
Charges/Gains
|
|
|
|
(unaudited)
|
|
charges
|
|
adjustment
|
|
costs
|
|
costs
|
|
losses
|
|
change
|
|
adjustment
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
2012
|
|
YEAR TO DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
2,643.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
1,776.7
|
|
|
(6.5
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1.5
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Selling, general & administrative expenses
|
|
|
699.6
|
|
|
-
|
|
|
2.0
|
|
|
-
|
|
|
-
|
|
|
(2.2
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Amortization of intangible assets
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring charges
|
|
|
4.1
|
|
|
(4.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
154.2
|
|
|
10.6
|
|
|
(2.0
|
)
|
|
-
|
|
|
-
|
|
|
3.7
|
|
|
-
|
|
|
-
|
|
|
|
166.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External interest expense
|
|
|
6.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Other income, net
|
|
|
(0.6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Income before income taxes
|
|
|
148.2
|
|
|
10.6
|
|
|
(2.0
|
)
|
|
-
|
|
|
-
|
|
|
3.7
|
|
|
-
|
|
|
-
|
|
|
|
160.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
47.1
|
|
|
3.6
|
|
|
(0.7
|
)
|
|
-
|
|
|
-
|
|
|
1.3
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
101.1
|
|
|
7.0
|
|
|
(1.3
|
)
|
|
-
|
|
|
-
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
$
|
109.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interests
|
|
|
0.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Fortune Brands Home & Security, Inc.
|
|
$
|
100.3
|
|
|
7.0
|
|
|
(1.3
|
)
|
|
-
|
|
|
-
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
$
|
108.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
165.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
2,452.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
1,695.1
|
|
|
(1.6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(17.1
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Selling, general & administrative expenses
|
|
|
648.4
|
|
|
-
|
|
|
-
|
|
|
13.8
|
|
|
-
|
|
|
(16.0
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Amortization of intangible assets
|
|
|
11.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring charges
|
|
|
1.8
|
|
|
(1.8
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Business separation costs
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.4
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
93.8
|
|
|
3.4
|
|
|
-
|
|
|
(13.8
|
)
|
|
2.4
|
|
|
33.1
|
|
|
-
|
|
|
-
|
|
|
|
118.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party interest expense, net
|
|
|
23.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(14.4
|
)
|
|
-
|
|
|
|
|
External interest expense
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Other expense, net
|
|
|
1.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Income before income taxes
|
|
|
68.5
|
|
|
3.4
|
|
|
-
|
|
|
(13.8
|
)
|
|
2.4
|
|
|
33.1
|
|
|
14.4
|
|
|
-
|
|
|
|
108.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
32.2
|
|
|
1.1
|
|
|
-
|
|
|
(5.2
|
)
|
|
0.7
|
|
|
12.4
|
|
|
5.5
|
|
|
(8.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
36.3
|
|
|
2.3
|
|
|
-
|
|
|
(8.6
|
)
|
|
1.7
|
|
|
20.7
|
|
|
8.9
|
|
|
8.9
|
|
|
$
|
70.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interests
|
|
|
0.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Fortune Brands Home & Security, Inc.
|
|
$
|
35.4
|
|
|
2.3
|
|
|
-
|
|
|
(8.6
|
)
|
|
1.7
|
|
|
20.7
|
|
|
8.9
|
|
|
8.9
|
|
|
$
|
69.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
155.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
158.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS HOME & SECURITY, INC.
|
|
|
RECONCILIATION OF SEGMENT OPERATING INCOME BEFORE CHARGES/GAINS
TO GAAP OPERATING INCOME (LOSS)
|
|
|
(In millions)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three month period ended
|
|
|
|
|
September 30,
2012
|
|
September 30,
2011
|
|
$ change
|
|
% change
|
|
|
KITCHEN & BATH CABINETRY
|
|
|
|
|
|
|
|
|
|
|
Operating income before charges/gains
(a)
|
|
$
|
13.1
|
|
|
$
|
8.0
|
|
|
$
|
5.1
|
|
|
63.8
|
|
|
|
Restructuring charges
|
|
|
(2.6
|
)
|
|
|
(0.4
|
)
|
|
|
(2.2
|
)
|
|
(558.2
|
)
|
|
|
Other charges
(b)
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
(9.0
|
)
|
|
|
0.2
|
|
|
|
(9.2
|
)
|
|
(5,272.4
|
)
|
|
|
Operating income (GAAP)
|
|
$
|
1.5
|
|
|
$
|
7.8
|
|
|
$
|
(6.3
|
)
|
|
(80.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MATERIAL WINDOWS & DOOR SYSTEMS
|
|
|
|
|
|
|
|
|
|
|
Operating income before charges/gains
(a)
|
|
$
|
6.2
|
|
|
$
|
1.9
|
|
|
$
|
4.3
|
|
|
226.3
|
|
|
|
Restructuring charges
|
|
|
(0.5
|
)
|
|
|
(0.7
|
)
|
|
|
0.2
|
|
|
29.5
|
|
|
|
Other charges
(b)
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
3.5
|
|
|
|
(1.5
|
)
|
|
|
5.0
|
|
|
337.8
|
|
|
|
Operating income (loss) (GAAP)
|
|
$
|
9.2
|
|
|
$
|
(0.3
|
)
|
|
$
|
9.5
|
|
|
3,166.7
|
|
|
|
|
|
|
(a) Operating income before charges/gains is operating income
derived in accordance with GAAP excluding restructuring and other
charges. Operating income before charges/gains is a measure not
derived in accordance with GAAP. Management uses this measure to
determine the returns generated by FBHS and to evaluate and identify
cost-reduction initiatives. Management believes this measure
provides investors with helpful supplemental information regarding
the underlying performance of the Company from period to period.
This measure may be inconsistent with similar measures presented by
other companies.
|
|
|
|
|
|
(b) Other charges represents charges directly related to
restructuring initiatives that cannot be reported as restructuring
under GAAP. Such costs may include losses on disposal of
inventories, trade receivables allowances from exiting product lines
and accelerated depreciation resulting from the closure of
facilities and gains or losses associated with the sale of closed
facilities.
|
