Background and Basis of Presentation

12 Months Ended

Dec. 31, 2014

Background and Basis of Presentation

1.    Background and Basis of Presentation

The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction, security applications and storage. References to (i) “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires, after giving effect to the spin-off of Fortune Brands from Fortune Brands, Inc. in 2011 and (ii) “Former Parent” refer to Fortune Brands, Inc..

Basis of Presentation    The consolidated financial statements include the accounts of Fortune Brands and its majority-owned subsidiaries. The Company’s subsidiaries operate on a 52 or 53-week fiscal year.

The consolidated financial statements included in this Annual Report on Form 10-K were derived principally from the consolidated financial statements of the Company. In September 2014, we sold all of the shares of stock of Fortune Brands Windows, Inc., our subsidiary that owned and operated the Simonton windows business (“Simonton”). In December 2014, we committed to a plan to sell Waterloo Industries, Inc. (“Waterloo”), our tool storage business. Therefore, in accordance with Accounting Standards Codification (“ASC”) requirements, the results of operations of Waterloo and Simonton were reclassified and separately stated as discontinued operations in the accompanying consolidated statements of comprehensive income for 2014, 2013 and 2012. The assets and liabilities of Simonton were reclassified as a discontinued operation in the accompanying consolidated balance sheets as of December 31, 2013. The assets and liabilities of Waterloo were reclassified as a discontinued operation in the accompanying consolidated balance sheets as of December 31, 2014 and 2013. The cash flows from discontinued operations for 2014, 2013 and 2012 were not separately classified on the accompanying condensed consolidated statements of cash flows. Information on Business Segments was revised to exclude this discontinued operation.