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, lighting fixtures and LED lighting systems, and cabinet and other hardware.

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 in 2017, 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)						Operating Profit (Loss) (5)									Assets at December 31 (6)
	2018		2017		2016		2018			2017			2016			2018		2017		2016
Our operations by segment were:
Plumbing Products	$	3,998	$	3,732	$	3,529	$	715		$	702		$	654		$	2,253	$	2,298	$	2,028
Decorative Architectural Products	2,656		2,206		2,092		456			438			433			1,534		965		900
Cabinetry Products	950		934		970		86			92			97			537		526		539
Windows and Other Specialty Products	755		770		770		34			54			(3		)	660		677		746
Total	$	8,359	$	7,642	$	7,361	$	1,291		$	1,286		$	1,181		$	4,984	$	4,466	$	4,213
Our operations by geographic area were:
North America	$	6,763	$	6,067	$	5,838	$	1,094		$	1,080		$	973		$	3,832	$	3,236	$	3,029
International, principally Europe	1,596		1,575		1,523		197			206			208			1,152		1,230		1,184
Total, as above	$	8,359	$	7,642	$	7,361	1,291			1,286			1,181			4,984		4,466		4,213
General corporate expense, net (6)							(80		)	(92		)	(94		)
Operating profit, as reported							1,211			1,194			1,087
Other income (expense), net							(169		)	(310		)	(255		)
Income before income taxes							$	1,042		$	884		$	832
Corporate assets																409		1,068		951
Total assets																$	5,393	$	5,534	$	5,164

P. SEGMENT INFORMATION (Concluded)



	Property Additions (7)						Depreciation and Amortization
	2018		2017		2016		2018		2017		2016
Our operations by segment were:
Plumbing Products	$	120	$	115	$	110	$	77	$	63	$	57
Decorative Architectural Products	54		19		22		35		16		16
Cabinetry Products	18		14		8		13		14		21
Windows and Other Specialty Products	20		13		30		23		21		21
	212		161		170		148		114		115
Unallocated amounts, principally related to corporate assets	7		12		10		8		13		19
Total	$	219	$	173	$	180	$	156	$	127	$	134


(1)	Included in net sales were export sales from the U.S. of $259 million, $232 million and $226 million in 2018, 2017 and 2016, respectively.


(2)	Excluded from net sales were intra-company sales between segments of less than one percent in 2018, 2017 and 2016.


(3)	Included in net sales were sales to one customer of $2,670 million, $2,535 million and $2,480 million in 2018, 2017 and 2016, respectively. Such net sales were included in each of our segments.


(4)	Net sales from our operations in the U.S. were $6,587 million, $5,819 million and $5,609 million in 2018, 2017 and 2016, respectively.


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


(6)	Long-lived assets of our operations in the U.S. and Europe were $1,928 million and $492 million, $1,582 million and $482 million, and $1,508 million and $417 million at December 31, 2018, 2017 and 2016, respectively.


(7)	Property additions exclude amounts paid for long-lived assets as part of acquisitions. Refer to Note C for further information.