Information on Business Segments

12 Months Ended

Dec. 30, 2023

Segment Reporting [Abstract]

Information on Business Segments

19. Information on Business Segments

Following the Separation, the operating results of our Cabinets segment have been classified as discontinued operations for all periods presented, and we have three operating segments. The tables below reflect the results of operations of the Company's operating segments in continuing operations, consistent with internal reporting used by the Company.

We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below.

The Water segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek and Schaub brands. The Outdoors segment includes fiberglass and steel entry door systems under the Therma-Tru brand name, storm, screen and security doors under the Larson brand name, composite decking and railing under the Fiberon brand name, urethane millwork under the Fypon brand name and wide-opening exterior door systems and outdoor enclosures under the Solar Innovations brand. The Security segment includes locks, safety and security devices, and electronic security products under the Master Lock, American Lock, Yale and August brands, and fire-resistant safes, security containers and commercial cabinets under the SentrySafe brand. Corporate expenses consist of headquarters administrative expenses. Corporate assets consist primarily of cash.

The Company’s subsidiaries operate principally in the United States, Canada, Mexico, the United Kingdom, China, South Africa, Vietnam and France.

(In millions)	2023		2022		2021
Net sales:
Water	$	2,562.2	$	2,570.2	$	2,761.2
Outdoors		1,341.1		1,517.4		1,416.5
Security		722.9		635.4		623.4
Total net sales	$	4,626.2	$	4,723.0	$	4,801.1

Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2023, 2022 and 2021. All of our business segments sell to The Home Depot and Lowe’s. Net sales to The Home Depot were 10.2%, 11.7% and 11.2% of net sales in 2023, 2022 and 2021, respectively. Net sales to Lowe’s were 10.9%, 12.0% and 11.9% of net sales in 2023, 2022 and 2021, respectively.

(In millions)	2023			2022			2021
Operating income:
Water	$	574.3		$	614.6		$	629.7
Outdoors		133.5			194.2			205.3
Security		62.4			95.4			86.6
Corporate		(155.3	)		(129.9	)		(110.5	)
Total operating income	$	614.9		$	774.3		$	811.1

(In millions)	2023			2022			2021
Total assets:
Water	$	3,492.2		$	2,674.4		$	2,614.7
Outdoors		2,205.3			2,214.6			2,042.3
Security		721.0			605.4			577.1
Corporate		146.5			626.5			212.4
Total assets	$	6,565.0		$	6,120.9		$	5,446.5
Depreciation expense:
Water	$	40.4		$	34.9		$	37.1
Outdoors		34.5			32.3			26.1
Security		29.8			13.2			14.6
Corporate		2.0			2.5			2.8
Depreciation expense	$	106.7		$	82.9		$	80.6
Amortization of intangible assets:
Water	$	28.9		$	16.2		$	14.9
Outdoors		30.0			30.2			29.6
Security		3.2			1.9			1.9
Amortization of intangible assets	$	62.1		$	48.3		$	46.4
Capital expenditures:
Water	$	104.7		$	52.1		$	38.1
Outdoors		140.0			120.2			112.3
Security		10.4			17.9			11.9
Corporate		1.4			—			0.3
Capital expenditures, gross		256.5			190.2			162.6
Less: proceeds from disposition of assets		(2.8	)		(8.2	)		(1.8	)
Capital expenditures, net	$	253.7		$	182.0		$	160.8
Net sales by geographic region (a):
United States	$	3,708.0		$	3,763.6		$	3,722.7
China		335.2			363.9			510.4
Canada		352.4			368.2			384.2
Other international		230.6			227.3			183.8
Net sales	$	4,626.2		$	4,723.0		$	4,801.1
Property, plant and equipment, net:
United States	$	798.0		$	673.5		$	569.6
Mexico		62.9			55.9			53.7
Canada		7.6			7.3			7.7
China		17.3			20.1			23.7
Other international		89.2			26.9			16.1
Property, plant and equipment, net	$	975.0		$	783.7		$	670.8

(a)Based on country of destination.