SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

SEGMENT INFORMATION

SEGMENT INFORMATION

P. SEGMENT INFORMATION

        Our reportable segments are as follows:

        Cabinets and Related Products –  principally includes assembled kitchen and bath cabinets; home office workstations; entertainment centers; storage products; bookcases; and kitchen utility products.

        Plumbing Products –  principally includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; and spas.

        Installation and Other Services –  principally includes the sale, installation and distribution of insulation and other building products.

        Decorative Architectural Products –  principally includes paints and stains; and cabinet, door, window and other hardware.

        Other Specialty Products –  principally includes windows, window frame components and patio doors; staple gun tackers, staples and other fastening tools.

        The above products and services are sold to the home improvement and new home construction markets through mass merchandisers, hardware stores, home centers, builders, distributors and other outlets for consumers and contractors.

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

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

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

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

	Net Sales (1)(2)(3)(4)(5)						Operating Profit (Loss) (5)(6)									Assets at December 31 (9)(10)
	2014		2013		2012		2014			2013			2012			2014		2013		2012
Our operations by segment were:
Cabinets and Related Products	$	999	$	1,014	$	939	$	(62	)	$	(10	)	$	(89	)	$	608	$	659	$	700
Plumbing Products		3,308		3,183		2,955		512			394			307			1,989		2,040		2,012
Installation and Other Services		1,515		1,412		1,209		58			37			(19	)		1,474		1,465		1,444
Decorative Architectural Products		1,998		1,927		1,818		360			351			329			857		812		799
Other Specialty Products		701		637		574		47			35			(31	)		702		693		704
Total	$	8,521	$	8,173	$	7,495	$	915		$	807		$	497		$	5,630	$	5,669	$	5,659
Our operations by geographic area were:
North America	$	6,892	$	6,634	$	6,046	$	701		$	649		$	360		$	4,335	$	4,295	$	4,363
International, principally Europe		1,629		1,539		1,449		214			158			137			1,295		1,374		1,296
Total, as above	$	8,521	$	8,173	$	7,495		915			807			497			5,630		5,669		5,659
General corporate expense, net (7)								(136	)		(134	)		(126	)
Income (charge) for litigation settlements (8)								9			—			(77	)
Gain from sales of fixed assets, net								—			—			8
Operating profit, as reported								788			673			302
Other income (expense), net								(213	)		(223	)		(229	)
Income from continuing operations before income taxes							$	575		$	450		$	73
Corporate assets																	1,537		1,288		1,021
Assets held for sale																	—		—		203
Total assets																$	7,167	$	6,957	$	6,883

							Depreciation and Amortization (5)
	Property Additions (5)						2014		2013		2012
	2014		2013		2012
Our operations by segment were:
Cabinets and Related Products	$	9	$	9	$	15	$	33	$	42	$	57
Plumbing Products		65		71		67		63		65		69
Installation and Other Services		13		14		11		26		27		30
Decorative Architectural Products		12		16		11		16		17		15
Other Specialty Products		28		10		11		18		22		21
		127		120		115		156		173		192
Unallocated amounts, principally related to corporate assets		1		4		2		11		11		11
Total	$	128	$	124	$	117	$	167	$	184	$	203

(1)	Included in net sales were export sales from the U.S. of $228 million, $227 million and $229 million in 2014, 2013 and 2012, respectively.
(2)	Excluded from net sales were intra-company sales between segments of approximately two percent of net sales in each of 2014, 2013 and 2012.
(3)	Included in net sales were sales to one customer of $2,319 million, $2,280 million and $2,143 million in 2014, 2013 and 2012, respectively. Such net sales were included in the following segments: Cabinets and Related Products, Plumbing Products, Decorative Architectural Products and Other Specialty Products.
(4)	Net sales from our operations in the U.S. were $6,689 million, $6,359 million and $5,793 million in 2014, 2013 and 2012, respectively.
(5)	Net sales, operating profit (loss), property additions and depreciation and amortization expense for 2014, 2013 and 2012 excluded the results of businesses reported as discontinued operations in 2013 and 2012.
(6)	Included in segment operating profit (loss) for 2012 was an impairment charge for other intangible assets as follows: Other Specialty Products – $42 million.
(7)	General corporate expense, net included those expenses not specifically attributable to our segments.
(8)	The income (charge) for litigation settlements in 2014 relates to a business in our Decorative Architectural Products segment and in 2012 primarily relates to a business in the Installation and Other Services segment.
(9)	Long-lived assets of our operations in the U.S. and Europe were $2,611 million and $428 million, $2,685 million and $481 million, and $2,792 million and $467 million at December 31, 2014, 2013 and 2012, respectively.
(10)	Segment assets for 2012 excluded the assets of businesses reported as discontinued operations.