SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our reportable segments are as follows:

Plumbing Products –  principally includes faucets, plumbing fittings and valves, showerheads and hand showers, bathtubs and shower enclosures, toilets, spas, exercise pools and water handling systems.

Decorative Architectural Products –  principally includes paints and other coating products, cabinet door, window and other hardware and glass shower doors.

Cabinetry Products –  principally includes assembled kitchen and bath cabinets, home office workstations, entertainment centers and storage products.

Windows and Other Specialty Products –  principally includes windows, window frame components, patio doors, and, until the divestiture of Arrow, staple gun tackers, staples and other fastening tools.

The above products are sold to the residential repair and remodel and new home construction markets through home center retailers, online retailers, mass merchandisers, hardware stores, homebuilders, distributors and other outlets for consumers and contractors and direct to the customer.

Our operations are principally located in North America and Europe. Our country of domicile is the United States of America.

Corporate assets consist primarily of real property, equipment, cash and cash investments and other investments.

Our segments are based upon similarities in products and represent the aggregation of operating units, for which financial information is regularly evaluated by our corporate operating executive in determining resource allocation and assessing performance, and is periodically reviewed by the Board of Directors. Accounting policies for the segments are the same as those for us. We primarily evaluate performance based upon operating profit (loss) and, other than general corporate expense, allocate specific corporate overhead to each segment.

Information by segment and geographic area was as follows, in millions:

	Net Sales (1)(2)(3)(4)(5)						Operating Profit (Loss) (5)(6)									Assets at December 31 (7)
	2017		2016		2015		2017			2016			2015			2017		2016		2015
Our operations by segment were:
Plumbing Products	$	3,735	$	3,526	$	3,341	$	698		$	642		$	512		$	2,260	$	2,009	$	1,972
Decorative Architectural Products	2,205		2,092		2,020		434			430			403			961		894		874
Cabinetry Products	934		970		1,025		90			93			51			524		537		567
Windows and Other Specialty Products	770		769		756		52			(3		)	57			673		743		748
Total	$	7,644	$	7,357	$	7,142	$	1,274		$	1,162		$	1,023		$	4,418	$	4,183	$	4,161
Our operations by geographic area were:
North America	$	6,069	$	5,834	$	5,645	$	1,072		$	961		$	841		$	3,211	$	3,001	$	2,925
International, principally Europe	1,575		1,523		1,497		202			201			182			1,207		1,182		1,236
Total, as above	$	7,644	$	7,357	$	7,142	1,274			1,162			1,023			4,418		4,183		4,161
General corporate expense, net (6)							(105		)	(109		)	(109		)
Operating profit, as reported							1,169			1,053			914
Other income (expense), net							(284		)	(223		)	(225		)
Income from continuing operations before income taxes							$	885		$	830		$	689
Corporate assets																1,070		954		1,503
Total assets																$	5,488	$	5,137	$	5,664

O. SEGMENT INFORMATION (Concluded)

	Property Additions (5)						Depreciation and Amortization (5)
	2017		2016		2015		2017		2016		2015
Our operations by segment were:
Plumbing Products	$	115	$	110	$	87	$	63	$	57	$	56
Decorative Architectural Products	19		22		16		16		16		16
Cabinetry Products	14		8		6		14		21		24
Windows and Other Specialty Products	13		30		41		21		21		18
	161		170		150		114		115		114
Unallocated amounts, principally related to corporate assets	12		10		1		13		19		13
Total	$	173	$	180	$	151	$	127	$	134	$	127

(1) Included in net sales were export sales from the U.S. of $232 million, $226 million and $217 million in 2017, 2016 and 2015, respectively.

(2) Excluded from net sales were intra-company sales between segments of less than one percent in 2017, 2016 and 2015.

(3) Included in net sales were sales to one customer of $2,535 million, $2,480 million and $2,378 million in 2017, 2016 and 2015, respectively. Such net sales were included in each of our segments.

(4) Net sales from our operations in the U.S. were $5,821 million, $5,605 million and $5,407 million in 2017, 2016 and 2015, respectively.

(5) Net sales, operating profit (loss), property additions and depreciation and amortization expense for 2015 excluded the results of businesses reported as discontinued operations.

(6) General corporate expense, net included those expenses not specifically attributable to our segments.

(7) Long-lived assets of our operations in the U.S. and Europe were $1,582 million and $482 million, $1,508 million and $417 million, and $1,487 million and $427 million at December 31, 2017, 2016 and 2015, respectively.