(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Class | Shares Outstanding at September 30, 2022 | |||||||
Common stock, par value $1.00 per share | ||||||||
Page No. | ||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash investments | $ | $ | |||||||||
Receivables | |||||||||||
Prepaid expenses and other | |||||||||||
Inventories: | |||||||||||
Finished goods | |||||||||||
Raw material | |||||||||||
Work in process | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Notes payable | |||||||||||
Accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Noncurrent operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note P) | |||||||||||
Redeemable noncontrolling interest | |||||||||||
EQUITY | |||||||||||
Masco Corporation's shareholders' equity: | |||||||||||
Common shares, par value $ Authorized shares: Issued and outstanding: 2022 – | |||||||||||
Preferred shares authorized: Issued and outstanding: 2022 and 2021 – | |||||||||||
Paid-in capital | |||||||||||
Retained deficit | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total Masco Corporation's shareholders' (deficit) | ( | ( | |||||||||
Noncontrolling interest | |||||||||||
Total equity | ( | ||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Other income (expense), net: | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||||||||
( | ( | ( | ( | ||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
Net income attributable to Masco Corporation | $ | $ | $ | $ | |||||||||||||||||||
Income per common share attributable to Masco Corporation: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
Net income attributable to Masco Corporation | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income, net of tax (Note L): | |||||||||||||||||||||||
Cumulative translation adjustment | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Pension and other post-retirement benefits | |||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ||||||||||||||||||||
Less: Other comprehensive (loss) attributable to noncontrolling interest | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive (loss) income attributable to Masco Corporation | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Total comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interest | |||||||||||||||||||||||
Total comprehensive income attributable to Masco Corporation | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: | |||||||||||
Cash provided by operations | $ | $ | |||||||||
Increase in receivables | ( | ( | |||||||||
Increase in inventories | ( | ( | |||||||||
(Decrease) increase in accounts payable and accrued liabilities, net | ( | ||||||||||
Net cash from operating activities | |||||||||||
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: | |||||||||||
Retirement of notes | ( | ||||||||||
Purchase of Company common stock | ( | ( | |||||||||
Cash dividends paid | ( | ( | |||||||||
Dividends paid to noncontrolling interest | ( | ( | |||||||||
Issuance of notes, net of issuance costs | |||||||||||
Proceeds from term loan | |||||||||||
Payment of term loan | ( | ||||||||||
Debt extinguishment costs | ( | ||||||||||
Proceeds from the exercise of stock options | |||||||||||
Employee withholding taxes paid on stock-based compensation | ( | ( | |||||||||
Decrease in debt, net | ( | ( | |||||||||
Net cash for financing activities | ( | ( | |||||||||
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisition of businesses, net of cash acquired | ( | ||||||||||
Proceeds from disposition of: | |||||||||||
Businesses, net of cash disposed | |||||||||||
Other financial investments | |||||||||||
Other, net | ( | ||||||||||
Net cash (for) from investing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash investments | ( | ( | |||||||||
CASH AND CASH INVESTMENTS: | |||||||||||
Decrease for the period | ( | ( | |||||||||
At January 1 | |||||||||||
At September 30 | $ | $ |
Total | Common Shares ($ | Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | ||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Shares issued | ( | — | — | — | |||||||||||||||||||||||||||||||
Shares retired: | |||||||||||||||||||||||||||||||||||
Repurchased | ( | ( | ( | ( | — | — | |||||||||||||||||||||||||||||
Surrendered (non-cash) | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Redeemable noncontrolling interest - redemption adjustment | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Shares retired: | |||||||||||||||||||||||||||||||||||
Repurchased | ( | ( | ( | ( | — | — | |||||||||||||||||||||||||||||
Cash dividends declared | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Dividends declared to noncontrolling interest | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Shares retired: | |||||||||||||||||||||||||||||||||||
Repurchased | ( | ( | ( | ( | — | — | |||||||||||||||||||||||||||||
Cash dividends declared | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ( | $ | $ |
Total | Common Shares ($ | Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | ||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Shares issued | — | — | — | — | |||||||||||||||||||||||||||||||
Shares retired: | |||||||||||||||||||||||||||||||||||
Repurchased | ( | ( | ( | ( | — | — | |||||||||||||||||||||||||||||
Surrendered (non-cash) | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Cash dividends declared | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Redeemable noncontrolling interest - redemption adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Shares retired: | |||||||||||||||||||||||||||||||||||
Repurchased | ( | ( | ( | ( | — | — | |||||||||||||||||||||||||||||
Cash dividends declared | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Dividends declared to noncontrolling interest | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||
Redeemable noncontrolling interest - redemption adjustment | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends declared | ( | — | — | ( | — | — | |||||||||||||||||||||||||||||
Redeemable noncontrolling interest - redemption adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | ( | $ | $ | $ | ( | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||
Plumbing Products | Decorative Architectural Products | Total | |||||||||||||||
Primary geographic markets: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
International, principally Europe | |||||||||||||||||
Total | $ | $ | $ |
Nine Months Ended September 30, 2022 | |||||||||||||||||
Plumbing Products | Decorative Architectural Products | Total | |||||||||||||||
Primary geographic markets: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
International, principally Europe | |||||||||||||||||
Total | $ | $ | $ |
Three Months Ended September 30, 2021 | |||||||||||||||||
Plumbing Products | Decorative Architectural Products | Total | |||||||||||||||
Primary geographic markets: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
International, principally Europe | |||||||||||||||||
Total | $ | $ | $ |
Nine Months Ended September 30, 2021 | |||||||||||||||||
Plumbing Products | Decorative Architectural Products | Total | |||||||||||||||
Primary geographic markets: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
International, principally Europe | |||||||||||||||||
Total | $ | $ | $ |
Nine Months Ended September 30, 2022 | Twelve Months Ended December 31, 2021 | ||||||||||
Balance at January 1 | $ | $ | |||||||||
Provision for expected credit losses during the period | |||||||||||
Write-offs charged against the allowance | ( | ( | |||||||||
Recoveries of amounts previously written off | |||||||||||
Other (A) | ( | ||||||||||
Balance at end of period | $ | $ |
Gross Goodwill At September 30, 2022 | Accumulated Impairment Losses | Net Goodwill At September 30, 2022 | |||||||||||||||
Plumbing Products | $ | $ | ( | $ | |||||||||||||
Decorative Architectural Products | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
Gross Goodwill At December 31, 2021 | Accumulated Impairment Losses | Net Goodwill At December 31, 2021 | Other (B) | Net Goodwill At September 30, 2022 | |||||||||||||||||||||||||
Plumbing Products (A) | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Decorative Architectural Products | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, 2022 | Twelve Months Ended December 31, 2021 | ||||||||||
Balance at January 1 | $ | $ | |||||||||
Accruals for warranties issued during the period | |||||||||||
Accruals related to pre-existing warranties | ( | ||||||||||
Settlements made (in cash or kind) during the period | ( | ( | |||||||||
Other, net (including currency translation and acquisitions) | ( | ( | |||||||||
Balance at end of period | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Restricted stock units | $ | $ | $ | $ | |||||||||||||||||||
Performance restricted stock units | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Long-term stock awards | |||||||||||||||||||||||
Phantom stock awards | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Unvested restricted stock units at January 1 | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Restricted stock units granted | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Restricted stock units vested | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Restricted stock units forfeited | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Unvested restricted stock units at September 30 | |||||||||||
Weighted average grant date fair value | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Option shares outstanding, January 1 | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Option shares granted | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Option shares exercised | |||||||||||||||||
Aggregate intrinsic value on date of exercise (A) | $ | $ | |||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Option shares forfeited | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Option shares outstanding, September 30 | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Weighted average remaining option term (in years) | |||||||||||||||||
Option shares vested and expected to vest, September 30 | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Aggregate intrinsic value (A) | $ | $ | |||||||||||||||
Weighted average remaining option term (in years) | |||||||||||||||||
Option shares exercisable (vested), September 30 | |||||||||||||||||
Weighted average exercise price | $ | $ | |||||||||||||||
Aggregate intrinsic value (A) | $ | $ | |||||||||||||||
Weighted average remaining option term (in years) |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Dividend yield | % | % | |||||||||
Volatility factor | % | % | |||||||||
Expected option life |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Unvested stock award shares at January 1 | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Stock award shares vested | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Stock award shares forfeited | |||||||||||
Weighted average grant date fair value | $ | $ | |||||||||
Unvested stock award shares at September 30 | |||||||||||
Weighted average grant date fair value | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||||||||
Settlement loss | |||||||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Amounts Reclassified | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Three Months Ended September 30, | Nine Months Ended September 30, | Statement of Operations Line Item | ||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Settlement and amortization of defined-benefit pension and other post-retirement benefits (A): | |||||||||||||||||||||||||||||
Actuarial losses, net | $ | $ | $ | $ | Other, net | ||||||||||||||||||||||||
Settlement loss | Other, net | ||||||||||||||||||||||||||||
Tax (benefit) | ( | ( | |||||||||||||||||||||||||||
Net of tax | $ | $ | $ | $ | |||||||||||||||||||||||||
Interest rate swaps (B) | $ | $ | $ | $ | Interest expense | ||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||
Net of tax | $ | $ | $ | $ | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Net Sales (A) | Operating Profit | Net Sales (A) | Operating Profit | ||||||||||||||||||||||||||||||||||||||||||||
Operations by segment: | |||||||||||||||||||||||||||||||||||||||||||||||
Plumbing Products | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Decorative Architectural Products | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Operations by geographic area: | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
International, principally Europe | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
General corporate expense, net | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Contingent consideration (A) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Equity investment (loss) income, net | ( | ( | |||||||||||||||||||||
Net periodic pension and post-retirement benefit expense (B) | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency transaction losses | ( | ( | ( | ( | |||||||||||||||||||
Income from cash and cash investments | |||||||||||||||||||||||
Loss on sale of businesses, net | ( | ( | |||||||||||||||||||||
Gain on preferred stock redemption (C) | |||||||||||||||||||||||
Dividend income | |||||||||||||||||||||||
Other items, net | ( | ( | ( | ||||||||||||||||||||
Total other, net | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator (basic and diluted): | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less: Allocation to redeemable noncontrolling interest | ( | ( | |||||||||||||||||||||
Less: Allocation to unvested restricted stock awards | |||||||||||||||||||||||
Net income attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic common shares (based upon weighted average) | |||||||||||||||||||||||
Add: Stock option dilution | |||||||||||||||||||||||
Diluted common shares |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Number of stock options | |||||||||||||||||||||||
Number of restricted stock units |
MASCO CORPORATION | |||||
Item 2. | |||||
MANAGEMENT'S DISCUSSION AND ANALYSIS OF | |||||
FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Net sales, as reported | $ | 2,204 | $ | 2,204 | $ | — | $ | 6,757 | $ | 6,353 | $ | 404 | |||||||||||||||||||||||
Acquisitions | — | — | — | (11) | — | (11) | |||||||||||||||||||||||||||||
Divestitures | — | — | — | — | (32) | 32 | |||||||||||||||||||||||||||||
Net sales, excluding acquisitions and divestitures | 2,204 | 2,204 | — | 6,746 | 6,321 | 425 | |||||||||||||||||||||||||||||
Currency translation | 67 | — | 67 | 155 | — | 155 | |||||||||||||||||||||||||||||
Net sales, excluding acquisitions, divestitures and the effect of currency translation | $ | 2,271 | $ | 2,204 | $ | 67 | $ | 6,901 | $ | 6,321 | $ | 580 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||
Gross profit | $ | 695 | $ | 753 | $ | (58) | $ | 2,168 | $ | 2,244 | $ | (76) | |||||||||||||||||||||||
Gross margin | 31.5 | % | 34.2 | % | (270) bps | 32.1 | % | 35.3 | % | (320) bps |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | (Favorable) / Unfavorable | 2022 | 2021 | (Favorable) / Unfavorable | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 344 | $ | 368 | $ | (24) | $ | 1,056 | $ | 1,057 | $ | (1) | |||||||||||||||||||||||
Selling, general and administrative expenses as percentage of net sales | 15.6 | % | 16.7 | % | (110) bps | 15.6 | % | 16.6 | % | (100) bps |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||
Operating profit | $ | 351 | $ | 385 | $ | (34) | $ | 1,112 | $ | 1,187 | $ | (75) | |||||||||||||||||||||||
Operating profit margin | 15.9 | % | 17.5 | % | (160) bps | 16.5 | % | 18.7 | % | (220) bps |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||
Interest expense | $ | (29) | $ | (26) | $ | (3) | $ | (82) | $ | (253) | $ | 171 | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||
Other, net | $ | (12) | $ | (17) | $ | 5 | $ | 4 | $ | (438) | $ | 442 | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | (Favorable) / Unfavorable | 2022 | 2021 | (Favorable) / Unfavorable | ||||||||||||||||||||||||||||||
Income tax expense | $ | 77 | $ | 103 | $ | (26) | $ | 255 | $ | 158 | $ | 97 | |||||||||||||||||||||||
Effective tax rate | 25 | % | 30 | % | (5) | % | 25 | % | 32 | % | (7) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||
Net income | $ | 218 | $ | 220 | $ | (2) | $ | 729 | $ | 278 | $ | 451 | |||||||||||||||||||||||
Diluted income per common share | $ | 0.97 | $ | 0.89 | $ | 0.08 | $ | 3.13 | $ | 1.07 | $ | 2.06 |
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | vs. | 2021 | 2022 | 2021 | 2022 | vs. | 2021 | ||||||||||||||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||||||||||||||||
Plumbing Products | $ | 1,324 | $ | 1,329 | — | % | $ | 4,056 | $ | 3,907 | 4 | % | |||||||||||||||||||||||||||||||||||
Decorative Architectural Products | 880 | 875 | 1 | % | 2,701 | 2,446 | 10 | % | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,204 | $ | 2,204 | — | % | $ | 6,757 | $ | 6,353 | 6 | % | |||||||||||||||||||||||||||||||||||
North America | $ | 1,792 | $ | 1,753 | 2 | % | $ | 5,431 | $ | 4,999 | 9 | % | |||||||||||||||||||||||||||||||||||
International, principally Europe | 412 | 451 | (9) | % | 1,326 | 1,354 | (2) | % | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,204 | $ | 2,204 | — | % | $ | 6,757 | $ | 6,353 | 6 | % |
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | vs. | 2021 | 2022 | 2021 | 2022 | vs. | 2021 | ||||||||||||||||||||||||||||||||||||||
Operating Profit: (A) | |||||||||||||||||||||||||||||||||||||||||||||||
Plumbing Products | $ | 220 | $ | 248 | (11) | % | $ | 686 | $ | 773 | (11) | % | |||||||||||||||||||||||||||||||||||
Decorative Architectural Products | 151 | 166 | (9) | % | 498 | 496 | — | % | |||||||||||||||||||||||||||||||||||||||
Total | $ | 371 | $ | 414 | (10) | % | $ | 1,184 | $ | 1,269 | (7) | % | |||||||||||||||||||||||||||||||||||
North America | $ | 305 | $ | 332 | (8) | % | $ | 961 | $ | 1,010 | (5) | % | |||||||||||||||||||||||||||||||||||
International, principally Europe | 66 | 82 | (20) | % | 223 | 259 | (14) | % | |||||||||||||||||||||||||||||||||||||||
Total | 371 | 414 | (10) | % | 1,184 | 1,269 | (7) | % | |||||||||||||||||||||||||||||||||||||||
General corporate expense, net | (20) | (29) | (31) | % | (72) | (82) | (12) | % | |||||||||||||||||||||||||||||||||||||||
Total operating profit | $ | 351 | $ | 385 | (9) | % | $ | 1,112 | $ | 1,187 | (6) | % |
MASCO CORPORATION | |||||
Item 4. | |||||
CONTROLS AND PROCEDURES |
31a | – | ||||||||||
31b | – | ||||||||||
32 | – | ||||||||||
101 | – | The following financial information from Masco Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders' Equity, and (vi) Notes to Condensed Consolidated Financial Statements. | |||||||||
104 | – | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
MASCO CORPORATION | ||||||||
By: | /s/ John G. Sznewajs | |||||||
Name: | John G. Sznewajs | |||||||
Title: | Vice President, Chief Financial Officer |
Date: | October 26, 2022 | By: | /s/ Keith J. Allman | |||||||||||
Keith J. Allman | ||||||||||||||
President and Chief Executive Officer |
Date: | October 26, 2022 | By: | /s/ John G. Sznewajs | |||||||||||
John G. Sznewajs | ||||||||||||||
Vice President, Chief Financial Officer |
Date: | October 26, 2022 | /s/ Keith J. Allman | ||||||||||||
Keith J. Allman | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
Date: | October 26, 2022 | /s/ John G. Sznewajs | ||||||||||||
John G. Sznewajs | ||||||||||||||
Vice President, Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common share, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 1,400,000,000 | 1,400,000,000 |
Common shares, shares issued (in shares) | 225,300,000 | 241,200,000 |
Common shares, shares outstanding (in shares) | 225,300,000 | 241,200,000 |
Preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 2,204 | $ 2,204 | $ 6,757 | $ 6,353 |
Cost of sales | 1,509 | 1,451 | 4,589 | 4,109 |
Gross profit | 695 | 753 | 2,168 | 2,244 |
Selling, general and administrative expenses | 344 | 368 | 1,056 | 1,057 |
Operating profit | 351 | 385 | 1,112 | 1,187 |
Other income (expense), net: | ||||
Interest expense | (29) | (26) | (82) | (253) |
Other, net | (12) | (17) | 4 | (438) |
Total other income (expense), net | (41) | (43) | (78) | (691) |
Income before income taxes | 310 | 342 | 1,034 | 496 |
Income tax expense | 77 | 103 | 255 | 158 |
Net income | 233 | 239 | 779 | 338 |
Less: Net income attributable to noncontrolling interest | 15 | 19 | 50 | 60 |
Net income attributable to Masco Corporation | $ 218 | $ 220 | $ 729 | $ 278 |
Basic: | ||||
Net income (in dollars per share) | $ 0.97 | $ 0.89 | $ 3.14 | $ 1.08 |
Diluted: | ||||
Net income (in dollars per share) | $ 0.97 | $ 0.89 | $ 3.13 | $ 1.07 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Statement of Stockholders' Equity [Abstract] | |||
Common share, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
SUPPLEMENTAL CASH FLOW INFORMATION |
9 Months Ended |
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Sep. 30, 2022 | |
Leases [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Right-of-use assets obtained in exchange for new lease obligations were $116 million and $40 million for the nine months ended September 30, 2022 and 2021, respectively. |
Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to fairly state our financial position at September 30, 2022, our results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021 and changes in shareholders' equity for the three and nine months ended September 30, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted ("GAAP") in the United States of America. Recently Adopted Accounting Pronouncements. In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. Recently Issued Accounting Pronouncements. In September 2022, the FASB issued ASU 2022-04, "Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that an entity that uses a supplier finance program in connection with the purchase of goods or services disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for annual periods on a retrospective basis, including interim periods within those annual periods, beginning January 1, 2023, except for the amendment on rollforward information, which is effective prospectively for annual periods beginning January 1, 2024. Early adoption is permitted. The adoption of this guidance will modify our disclosures, but will not have a material impact on our financial statements.
|
Acquisitions |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS In the third quarter of 2021, we acquired all of the share capital of Steamist, Inc. ("Steamist") for approximately $56 million in cash. Steamist is a manufacturer of residential steam bath products that are complementary to many of our plumbing products. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $31 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 11 years. We also recognized $29 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. Working capital and other adjustments were finalized with the seller in the fourth quarter of 2021, resulting in no significant changes. In the first quarter of 2021, our Hansgrohe SE subsidiary acquired a 75.1 percent equity interest in Easy Sanitary Solutions B.V. ("ESS"), for approximately €47 million ($58 million), including $52 million of cash and $6 million of debt that will be paid out over two years less any pending or settled indemnity matters. The cash payment was made to a third-party notary on December 29, 2020 for the acquisition of this equity interest in advance of the transaction closing on January 4, 2021. ESS is a manufacturer of shower channel drains and offers a wide range of products for barrier-free showering and bathroom wall niches. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $32 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 10 years. We also recognized $35 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. B. ACQUISITIONS, Concluded The remaining 24.9 percent equity interest in ESS is subject to a call and put option that is exercisable by Hansgrohe SE or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option is the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and were recorded as temporary equity in the condensed consolidated balance sheet. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit. In the fourth quarter of 2020, we acquired substantially all of the net assets of Kraus USA Inc. ("Kraus"), a designer and distributor of sinks, faucets and accessories for the kitchen and bathroom, for approximately $103 million and an additional cash payment of up to $50 million to be paid in 2023, contingent upon the achievement of certain financial performance metrics for the year ending December 31, 2022. As of the closing date of the acquisition, the contingent consideration was assigned a fair value of approximately $8 million. Refer to Note G for additional information regarding the measurement of the contingent consideration liability. This business expands our product offerings to our customers and our online presence under the Kraus brand. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $25 million of indefinite-lived intangible assets, which is related to trademarks, and $49 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 10 years. We also recognized $20 million of goodwill, which is generally tax deductible, and is related primarily to the expected synergies from combining the operations into our business. During the first quarter of 2021, we revised the allocation of the purchase price to certain identifiable assets and liabilities based on analysis of information as of the acquisition date, which resulted in a $1 million decrease to goodwill.
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Divestitures |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURESOn May 31, 2021, we completed the divestiture of our Hüppe GmbH ("Hüppe") business, a manufacturer of shower enclosures and shower trays. In connection with the divestiture, we recognized a loss of $18 million for the nine months ended September 30, 2021, which is included in other, net in our condensed consolidated statement of operations. This loss resulted primarily from the recognition of $23 million of currency translation losses that were previously included within accumulated other comprehensive income. During the nine months ended September 30, 2022, we recorded a $2 million pre-tax post-closing gain related to the finalization of working capital items in other, net in our condensed consolidated statement of operations. The sale of Hüppe did not represent a strategic shift that will have a major effect on our operations and financial results and therefore was not presented as discontinued operations. Prior to the divestiture, the results of the business were included in our Plumbing Products segment. |
Revenue |
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Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions:
D. REVENUE, Concluded
Our contract asset balance was $2 million and $1 million at September 30, 2022 and December 31, 2021, respectively. Our contract liability balance was $19 million and $67 million at September 30, 2022 and December 31, 2021, respectively. We recognized $8 million of revenue for the three months ended September 30, 2022 and we reversed $1 million of revenue for the three months ended September 30, 2021 related to performance obligations settled in previous quarters of the same year. We recognized $5 million and $18 million of revenue for the three and nine months ended September 30, 2022, respectively, and $3 million and $7 million of revenue for the three and nine months ended September 30, 2021, respectively, related to performance obligations settled in previous years. Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions:
(A) As a result of Hüppe being divested in May 2021, $1 million for the year ended December 31, 2021 was removed from allowance for credit losses.
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Depreciation and Amortization |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Depreciation, Depletion and Amortization [Abstract] | |
Depreciation and Amortization | DEPRECIATION AND AMORTIZATIONDepreciation and amortization expense was $105 million and $114 million for the nine months ended September 30, 2022 and 2021, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at September 30, 2022, by segment, was as follows, in millions:
The changes in the carrying amount of goodwill for the nine months ended September 30, 2022, by segment, were as follows, in millions:
(A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. (B) Other consists of the effect of foreign currency translation. |
Fair Value of Financial Instruments |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Investments | FAIR VALUE OF FINANCIAL INSTRUMENTS Kraus Acquisition Contingent Consideration. As described in Note B, we may be obligated to pay up to an additional $50 million in 2023 for the Kraus acquisition contingent upon the achievement of certain financial performance metrics for the year ending December 31, 2022. The measurement of the liability for contingent consideration is based on significant inputs that are not observable in the market, and are therefore classified as Level 3 inputs. Examples of utilized unobservable inputs are estimated future revenues and earnings of the acquired business and an applicable discount rate. The estimate of the liability may fluctuate if there are changes in the forecast of the acquired business' future revenues and earnings, as a result of actual levels achieved, or in the discount rate used to determine the present value of contingent future cash flows. All subsequent remeasurements from the initial estimate at the time of acquisition are recorded in other, net in our condensed consolidated statements of operations, as described in Note N. As of September 30, 2022, we do not believe the financial performance metrics will be met and the fair value of the liability was estimated to be nil, using probability weighted discounted cash flows and a discount rate that reflects the uncertainty surrounding the expected outcomes, which we believe is appropriate and representative of a market participant assumption. The fair value of the liability was estimated to be $24 million as of December 31, 2021. Fair Value of Debt. The fair value of our short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues, which are Level 1 inputs. The 364-day term loan has an interest rate that resets monthly and the fair value of this instrument approximates the carrying value at September 30, 2022. The aggregate estimated market value of our short-term and long-term debt at September 30, 2022 was approximately $2.8 billion, compared with the aggregate carrying value of $3.4 billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2021 was approximately $3.2 billion, compared with the aggregate carrying value of $3.0 billion.
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Warranty Liability |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Liability | WARRANTY LIABILITY Changes in our warranty liability were as follows, in millions:
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Debt |
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Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On April 26, 2022, we entered into a revolving credit agreement (the “2022 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of April 26, 2027. Under the 2022 Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders. Upon entry into the 2022 Credit Agreement, our credit agreement dated March 13, 2019, as amended, with an aggregate commitment of $1.0 billion, was terminated. The 2022 Credit Agreement provides for an unsecured revolving credit facility available to us and one of our foreign subsidiaries in U.S. dollars, European euros, British Pounds Sterling, Canadian dollars and certain other currencies for revolving credit loans, swingline loans and letters of credit. Borrowings under the revolving credit loans denominated in any agreed upon currency other than U.S. dollars are limited to the equivalent of $500 million. We can also borrow swingline loans up to $125 million and obtain letters of credit of up to $25 million. Outstanding letters of credit under the 2022 Credit Agreement reduce our borrowing capacity and we had no outstanding letters of credit at September 30, 2022. Revolving credit loans denominated in U.S. dollars bear interest under the 2022 Credit Agreement at our option, at (A) SOFR rate for the interest period in effect for the borrowing, plus 0.1%, plus an applicable margin based upon our then-applicable corporate credit ratings; or (B) a rate per annum equal to the greatest of (i) the U.S. prime rate, (ii) the Federal Reserve Bank of New York effective rate plus 0.50% and (iii) the adjusted term SOFR rate for a one month interest period, plus 1.0%; plus an applicable margin based upon our then-applicable corporate credit ratings. Foreign currency revolving credit loans denominated in Canadian dollars bear interest at a rate per annum equal to the greater of (i) the rate equal to the PRIMCAN Index rate and (ii) the CDOR rate for a one month interest period, plus 1.0%; plus an applicable margin based upon our then-applicable corporate credit ratings. Foreign currency revolving credit loans denominated in British Pounds Sterling bear interest at a rate per annum equal to the Daily Simple SONIA, plus an applicable margin based upon our then-applicable corporate credit ratings. Foreign currency revolving credit loans denominated in European euros bear interest at the adjusted EURIBOR rate, plus an applicable margin based upon our then-applicable corporate credit ratings. The various benchmarks are subject to applicable floors. The 2022 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. In order for us to borrow under the 2022 Credit Agreement, there must not be any default in our covenants in the 2022 Credit Agreement (i.e., in addition to the two financial covenants described above, principally limitations on subsidiary debt, negative pledge restrictions, and requirements relating to legal compliance, maintenance of our properties and insurance) and our representations and warranties in the 2022 Credit Agreement must be true in all material respects on the date of borrowing (i.e., principally no material adverse change or litigation likely to result in a material adverse change, since December 31, 2021, no material ERISA or environmental non-compliance, and no material tax deficiency). We were in compliance with all covenants and no borrowings were outstanding at September 30, 2022. I. DEBT, Concluded On April 26, 2022, we entered into a 364-day $500 million senior unsecured delayed draw term loan due April 26, 2023 with a syndicate of lenders. The senior unsecured term loan and commitments thereunder are subject to prepayment or termination at our option and the loans will bear interest at SOFR plus a spread adjustment and 0.70%. The covenants, including the financial covenants, are substantially the same as those in the 2022 Credit Agreement. We repaid $100 million during the three months ended September 30, 2022. We repaid an additional $65 million subsequent to September 30, 2022. On March 4, 2021, we issued $600 million of 1.500% Notes due February 15, 2028, $600 million of 2.000% Notes due February 15, 2031 and $300 million of 3.125% Notes due February 15, 2051. We received proceeds of $1,495 million, net of discount, for the issuance of these Notes. The Notes are senior indebtedness and are redeemable at our option at the applicable redemption price. On March 22, 2021, proceeds from the debt issuances, together with cash on hand, were used to repay and early retire our $326 million 5.950% Notes due March 15, 2022, $500 million 4.450% Notes due April 1, 2025, and $500 million 4.375% Notes due April 1, 2026. In connection with these early retirements, we incurred a loss on debt extinguishment of $168 million for the nine months ended September 30, 2021, which was recorded as interest expense in the condensed consolidated statement of operations.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION Our 2014 Long Term Stock Incentive Plan provides for the issuance of stock-based incentives in various forms to our employees and non-employee Directors. At September 30, 2022, outstanding stock-based incentives were in the form of restricted stock units, performance restricted stock units, stock options, long-term stock awards and phantom stock awards. Pre-tax compensation expense for these stock-based incentives was as follows, in millions:
Restricted Stock Units. Restricted stock units are granted to our key employees and non-employee Directors. These grants did not cause net share dilution due to our practice of repurchasing and retiring an equal number of shares in the open market. We granted approximately 608,000 restricted stock units in the nine months ended September 30, 2022 with a weighted average grant date fair value of approximately $59 per share. J. STOCK-BASED COMPENSATION, Continued Our restricted stock unit activity was as follows, units in thousands:
At September 30, 2022 and 2021, there was $21 million and $18 million, respectively, of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years at both September 30, 2022 and 2021. The total market value (at the vesting date) of restricted stock units which vested was $20 million and $8 million during the nine months ended September 30, 2022 and 2021, respectively. Performance Restricted Stock Units. Under our Long Term Incentive Program, we grant performance restricted stock units to certain senior executives. These performance restricted stock units will vest and share awards will be issued at no cost to the employees, subject to our achievement of specified performance metrics established by our Compensation Committee over a three-year performance period and the recipient's continued employment through the share award date. During the nine months ended September 30, 2022, we granted approximately 92,000 performance restricted stock units with a grant date fair value of approximately $55 per share and approximately 168,000 shares were issued. No performance restricted stock units were forfeited during the nine months ended September 30, 2022. During the nine months ended September 30, 2021, we granted approximately 85,000 performance restricted stock units with a grant date fair value of approximately $53 per share and approximately 105,000 shares were issued. No performance restricted stock units were forfeited during the nine months ended September 30, 2021. Stock Options. Stock options are granted to certain key employees. We granted approximately 338,000 shares of stock options in the nine months ended September 30, 2022 with a grant date weighted average exercise price of approximately $59 per share. J. STOCK-BASED COMPENSATION, Continued Our stock option activity was as follows, shares in thousands:
(A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares. At September 30, 2022 and 2021, there was $2 million and $4 million, respectively, of unrecognized compensation expense (using the Black-Scholes option pricing model at the grant date) related to unvested stock options; such options had a weighted average remaining vesting period of two years at both September 30, 2022 and 2021. J. STOCK-BASED COMPENSATION, Concluded The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:
Long-Term Stock Awards. Prior to the amendment of our 2014 Long Term Stock Incentive Plan in December 2019, we granted long-term stock awards to our key employees and non-employee Directors. We did not grant shares of long-term stock awards in the nine months ended September 30, 2022 and 2021. Our long-term stock award activity was as follows, shares in thousands:
At September 30, 2022 and 2021, there was $4 million and $12 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of one year and two years at September 30, 2022 and 2021, respectively. The total market value (at the vesting date) of stock award shares which vested was $21 million and $28 million during the nine months ended September 30, 2022 and 2021, respectively.
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Employee Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plans | EMPLOYEE RETIREMENT PLANS Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other, net, in our condensed consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions:
In December 2019, our Board of Directors approved the termination of our qualified domestic defined-benefit pension plans. In the second quarter of 2021, we settled these pension plans and made a final contribution of $101 million. The settlement loss included $447 million of pre-tax actuarial losses that were reclassified out of accumulated other comprehensive income during the nine months ended September 30, 2021.
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RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications From Accumulated Other Comprehensive Income | RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME The reclassifications from accumulated other comprehensive income to the condensed consolidated statements of operations were as follows, in millions:
(A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $447 million of pre-tax actuarial losses from accumulated other comprehensive income and $96 million of income tax benefit, which included $11 million of related disproportionate tax expense. Additionally, the amortization of defined-benefit pension and other post-retirement benefits included $3 million, net of tax, due to the disposition of pension plans in connection with the divestiture of Hüppe. (B) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022 in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense. In addition to the above amounts, we reclassified $23 million of currency translation losses from accumulated other comprehensive income to the condensed consolidated statement of operations in conjunction with the divestiture of Hüppe in the second quarter of 2021.
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Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION Information by segment and geographic area was as follows, in millions:
(A) Inter-segment sales were not material.
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Other Income (Expense), Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | OTHER INCOME (EXPENSE), NET Other, net, which is included in other income (expense), net, was as follows, in millions:
(A) We recognized $24 million of income for the nine months ended September 30, 2022, and we recognized $14 million of expense for the three and nine months ended September 30, 2021, from the revaluation of contingent consideration related to a prior acquisition. Refer to Note G for additional information. (B) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $406 million of additional pension expense. (C) In May 2021, we received, in cash, $166 million for the redemption of the AC Products Holding, Inc. preferred stock, including all accrued but unpaid dividends, and recognized a gain of $14 million.
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INCOME PER COMMON SHARE |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Per Common Share | INCOME PER COMMON SHARE Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions:
For the three and nine months ended September 30, 2022 and 2021, we allocated dividends and undistributed earnings to the unvested restricted stock awards. The following stock options and restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands:
Effective February 10, 2021, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock in open-market transactions or otherwise. We repurchased and retired approximately 16.6 million shares of our common stock in the nine months ended September 30, 2022 for approximately $914 million. This included 0.6 million shares to offset the dilutive impact of restricted stock units granted in the nine months ended September 30, 2022. At September 30, 2022, we had $214 million remaining under the 2021 authorization. Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock in open-market transactions or otherwise, replacing the previous Board of Directors authorization established in 2021. On the basis of amounts paid (declared), cash dividends per common share were $0.280 ($0.280) and $0.840 ($0.840) for the three and nine months ended September 30, 2022, respectively, and $0.235 ($0.235) and $0.610 ($0.470) for the three and nine months ended September 30, 2021, respectively.
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Other Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | OTHER COMMITMENTS AND CONTINGENCIESWe are involved in claims and litigation, including class actions, mass torts and regulatory proceedings, which arise in the ordinary course of our business. The types of matters may include, among others: competition, product liability, employment, warranty, advertising, contract, personal injury, environmental, intellectual property, product compliance and insurance coverage. We believe we have adequate defenses in these matters. We are also subject to product safety regulations, product recalls and direct claims for product liabilities. We believe the likelihood that the outcome of these claims, litigation and product safety matters would have a material adverse effect on us is remote. However, there is no assurance that we will prevail in these matters, and we could, in the future, incur judgments or penalties, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations. |
Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESOur 2021 income tax expense was impacted by the elimination of disproportionate tax effects from accumulated other comprehensive income resulting in income tax expense of $16 million for the nine months ended September 30, 2021, related to our debt retirement and pension plan termination. Our 2021 income tax expense was also impacted by losses providing no tax benefit in certain jurisdictions from our pension plan termination and a business divestiture resulting in income tax expense of $10 million and $15 million for the three and nine months ended September 30, 2021, respectively. |
Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. Recently Issued Accounting Pronouncements. In September 2022, the FASB issued ASU 2022-04, "Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that an entity that uses a supplier finance program in connection with the purchase of goods or services disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for annual periods on a retrospective basis, including interim periods within those annual periods, beginning January 1, 2023, except for the amendment on rollforward information, which is effective prospectively for annual periods beginning January 1, 2024. Early adoption is permitted. The adoption of this guidance will modify our disclosures, but will not have a material impact on our financial statements.
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Revenue (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions:
D. REVENUE, Concluded
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Financing Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions:
(A) As a result of Hüppe being divested in May 2021, $1 million for the year ended December 31, 2021 was removed from allowance for credit losses.
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Goodwill and Other Intangible Assets (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in carrying amount of goodwill | Goodwill at September 30, 2022, by segment, was as follows, in millions:
The changes in the carrying amount of goodwill for the nine months ended September 30, 2022, by segment, were as follows, in millions:
(A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. (B) Other consists of the effect of foreign currency translation.
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Warranty Liability (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the Company's warranty liability | Changes in our warranty liability were as follows, in millions:
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of pre-tax compensation expense and the related income tax benefit for these stock-based incentives | Pre-tax compensation expense for these stock-based incentives was as follows, in millions:
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Schedule of the Company's long-term stock award activity | Our restricted stock unit activity was as follows, units in thousands:
Our long-term stock award activity was as follows, shares in thousands:
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Schedule of the Company's stock option activity | Our stock option activity was as follows, shares in thousands:
(A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares.
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Schedule of weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model | The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:
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Employee Retirement Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic pension cost for the Company's defined-benefit pension plans | Net periodic pension cost for our defined-benefit pension plans was as follows, in millions:
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RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reclassifications from accumulated other comprehensive (loss) income to the condensed consolidated statements of operations | The reclassifications from accumulated other comprehensive income to the condensed consolidated statements of operations were as follows, in millions:
(A) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $447 million of pre-tax actuarial losses from accumulated other comprehensive income and $96 million of income tax benefit, which included $11 million of related disproportionate tax expense. Additionally, the amortization of defined-benefit pension and other post-retirement benefits included $3 million, net of tax, due to the disposition of pension plans in connection with the divestiture of Hüppe. (B) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022 in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense.
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information by segment and geographic area | Information by segment and geographic area was as follows, in millions:
(A) Inter-segment sales were not material.
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Other Income (Expense), Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of other, net, which is included in other income (expense), net | Other, net, which is included in other income (expense), net, was as follows, in millions:
(A) We recognized $24 million of income for the nine months ended September 30, 2022, and we recognized $14 million of expense for the three and nine months ended September 30, 2021, from the revaluation of contingent consideration related to a prior acquisition. Refer to Note G for additional information. (B) In the second quarter of 2021, we settled our qualified domestic defined-benefit pension plans and recognized $406 million of additional pension expense. (C) In May 2021, we received, in cash, $166 million for the redemption of the AC Products Holding, Inc. preferred stock, including all accrued but unpaid dividends, and recognized a gain of $14 million.
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INCOME PER COMMON SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share | Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions:
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Schedule of the Company's Stock Option Activity | The following stock options and restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands:
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SUPPLEMENTAL CASH FLOW INFORMATION - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
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Leases [Abstract] | ||
Right-of-use asset obtained in exchange for operating lease liability | $ 116 | $ 40 |
Divestitures - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 0 | $ 0 | $ (1) | $ (18) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Hüppe | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 2 | (18) | ||
Disposal group, not discontinued operation, currency translation gain (loss) | $ (23) |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
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Revenues [Abstract] | |||||
Contract with customer, asset, gross, current | $ 2 | $ 2 | $ 1 | ||
Contract with customer, liability | 19 | 19 | $ 67 | ||
Contract with customer, liability, revenue recognized | 8 | $ 1 | |||
Performance obligation satisfied in previous period | $ 5 | $ 3 | $ 18 | $ 7 |
Revenue - Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
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Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ 6 | $ 7 |
Provision for expected credit losses during the period | 3 | 1 |
Write-offs charged against the allowance | (2) | (2) |
Recoveries of amounts previously written off | 1 | 1 |
Other | 0 | (1) |
Balance at end of period | 8 | 6 |
Other | $ 0 | 1 |
Hüppe | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Other | (1) | |
Other | $ 1 |
Depreciation and Amortization - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
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Depreciation, Depletion and Amortization [Abstract] | ||
Depreciation and amortization expense | $ 105 | $ 114 |
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended | |
---|---|---|---|
May 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
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Goodwill [Roll Forward] | |||
Gross goodwill | $ 965 | $ 989 | |
Accumulated Impairment Losses | (421) | (421) | |
Net goodwill | 544 | 568 | |
Other | (24) | ||
Net goodwill, ending balance | 544 | ||
Plumbing Products | |||
Goodwill [Roll Forward] | |||
Gross goodwill | 599 | 623 | |
Accumulated Impairment Losses | (301) | (301) | |
Net goodwill | 298 | 322 | |
Other | (24) | ||
Net goodwill, ending balance | 298 | ||
Gross goodwill decrease and accumulated impairment losses | $ 39 | ||
Decorative Architectural Products | |||
Goodwill [Roll Forward] | |||
Gross goodwill | 366 | 366 | |
Accumulated Impairment Losses | (120) | (120) | |
Net goodwill | 246 | $ 246 | |
Other | 0 | ||
Net goodwill, ending balance | $ 246 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Other indefinite-lived intangible assets | $ 108 | $ 109 |
Carrying value of definite-lived intangible assets | 251 | 279 |
Accumulated amortization | $ 85 | $ 75 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Kraus USA Inc | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of the contingent consideration | $ 0 | $ 24 | $ 50 |
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated market value of long-term and short-term debt | 2,800 | 3,200 | |
Carrying Value Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate carrying value of long-term and short-term debt | $ 3,400 | $ 3,000 |
Warranty Liability - Schedule of changes in the Company's warranty liability (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at January 1 | $ 80 | $ 83 |
Accruals for warranties issued during the period | 31 | 38 |
Accruals related to pre-existing warranties | 2 | (8) |
Settlements made (in cash or kind) during the period | (24) | (31) |
Other, net (including currency translation and acquisitions) | (4) | (2) |
Balance at end of period | $ 85 | $ 80 |
Stock-Based Compensation - Schedule of pre-tax compensation expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Stock-based compensation | ||||
Pre-tax compensation expense | $ 8 | $ 9 | $ 47 | $ 51 |
Restricted stock units | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 4 | 3 | 29 | 26 |
Performance restricted stock units | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 1 | 2 | 5 | 8 |
Stock options | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 1 | 1 | 7 | 6 |
Long-term stock awards | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | 2 | 2 | 6 | 8 |
Phantom stock awards | ||||
Stock-based compensation | ||||
Pre-tax compensation expense | $ 0 | $ 1 | $ 0 | $ 3 |
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Unvested stock award shares | ||
Balance at the beginning of the period (in shares) | 934,000 | 435,000 |
Granted (in shares) | 608,000 | 663,000 |
Vested (in shares) | 350,000 | 141,000 |
Forfeited (in shares) | 16,000 | 16,000 |
Balance at the end of the period (in shares) | 1,176,000 | 941,000 |
Weighted average grant date fair value | ||
Nonvested, weighted average grant date fair value. beginning of period (in dollars per share) | $ 54 | $ 47 |
Granted (in dollars per share) | 59 | 57 |
Vested (in dollars per share) | 53 | 47 |
Forfeited (in dollars per share) | 56 | 54 |
Nonvested, weighted average grant date fair value. end of period (in dollars per share) | $ 57 | $ 54 |
Stock-Based Compensation - Option Pricing Assumptions and Estimates (Details) - Stock options - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | $ 14.66 | $ 13.61 |
Risk-free interest rate (as a percent) | 1.90% | 0.75% |
Dividend yield (as a percent) | 1.89% | 1.67% |
Volatility factor (as a percent) | 29.00% | 30.00% |
Expected option life (in years) | 6 years | 6 years |
Stock-Based Compensation - Long-Term Stock Award (Details) - Long-term stock awards - $ / shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Unvested stock award shares | ||
Balance at the beginning of the period (in shares) | 608 | 1,125 |
Vested (in shares) | 324 | 491 |
Forfeited (in shares) | 10 | 18 |
Balance at the end of the period (in shares) | 274 | 616 |
Weighted average grant date fair value | ||
Nonvested, weighted average grant date fair value. beginning of period (in dollars per share) | $ 37 | $ 36 |
Vested (in dollars per share) | 37 | 34 |
Forfeited (in dollars per share) | 37 | 37 |
Nonvested, weighted average grant date fair value. end of period (in dollars per share) | $ 38 | $ 37 |
Employee Retirement Plans - Schedule of Net Periodic Pension Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Qualified | ||||
Net periodic pension cost for the company's defined-benefit pension plans | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 3 |
Interest cost | 0 | 1 | 1 | 14 |
Expected return on plan assets | (1) | (1) | (2) | (8) |
Settlement loss | 0 | 406 | ||
Amortization of net loss | 1 | 2 | 3 | 13 |
Net periodic pension cost | 1 | 3 | 4 | 428 |
Non-Qualified | ||||
Net periodic pension cost for the company's defined-benefit pension plans | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 2 | 3 | 3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | ||
Amortization of net loss | 0 | 0 | 1 | 2 |
Net periodic pension cost | $ 1 | $ 2 | $ 4 | $ 5 |
Employee Retirement Plans - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Employee Retirement Plans | |
Defined benefit plan, benefit obligation, payment for settlement | $ 101 |
Reclassification out of Accumulated Other Comprehensive Income | |
Employee Retirement Plans | |
Settlement loss | $ (447) |
Other Income (Expense), Net (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
May 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||||
Contingent consideration | $ 0 | $ (14) | $ 24 | $ (14) | ||
Equity investment (loss) income, net | (6) | 5 | (6) | 7 | ||
Net periodic pension and post-retirement benefit expense | (2) | (4) | (7) | (430) | ||
Foreign currency transaction losses | (4) | (4) | (6) | (2) | ||
Income from cash and cash investments | 1 | 0 | 2 | 0 | ||
Loss on sale of businesses, net | 0 | 0 | (1) | (18) | ||
Gain on preferred stock redemption | $ 14 | 0 | 0 | 0 | 14 | |
Dividend income | 0 | 0 | 0 | 6 | ||
Other items, net | (1) | 0 | (2) | (1) | ||
Total other, net | $ (12) | (17) | $ 4 | (438) | ||
Expense from revaluation of contingent consideration | $ 14 | $ 14 | ||||
Pension cost | $ 406 | |||||
Proceeds from redemption of preferred stock | $ 166 |
INCOME PER COMMON SHARE - Schedule of reconciliations of the numerators and denominators (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Numerator (basic and diluted): | |||||||
Net income | $ 218 | $ 220 | $ 729 | $ 278 | |||
Less: Allocation to redeemable noncontrolling interest | (2) | $ 1 | $ (1) | 0 | $ 6 | (2) | 6 |
Less: Allocation to unvested restricted stock awards | 0 | 1 | 3 | 1 | |||
Net income attributable to common shareholders | $ 220 | $ 219 | $ 728 | $ 271 | |||
Denominator: | |||||||
Basic common shares (based upon weighted average) (in shares) | 226 | 246 | 232 | 251 | |||
Add: Stock option dilution (in shares) | 1 | 1 | 1 | 2 | |||
Diluted common shares (in shares) | 227 | 247 | 233 | 253 |
INCOME PER COMMON SHARE - Schedule of the Company's stock option activity (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Payment Arrangement, Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive effect on computation of diluted earnings per common share (in shares) | 670 | 70 | 623 | 285 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive effect on computation of diluted earnings per common share (in shares) | 4 | 0 | 22 | 0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense, elimination of disproportionate tax | $ 16 | |
Income tax expense, pension plan termination and a business divestiture | $ 10 | $ 15 |
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