Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

O.  SEGMENT INFORMATION

The Company’s reportable segments are as follows:

Cabinets and Related Products – principally includes assembled and ready-to-assemble 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; 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.

The Company’s operations are principally located in North America and Europe. The Company’s country of domicile is the United States of America.

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

The Company’s segments are based upon similarities in products and services and represent the aggregation of operating units, for which financial information is regularly evaluated by the Company’s corporate operating executives 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 the Company. The Company primarily evaluates performance based upon operating profit (loss) and, other than general corporate expense, allocates specific corporate overhead to each segment. The evaluation of segment operating profit also excludes the charge for defined-benefit plan curtailment, the charge for litigation settlements, the accelerated stock compensation expense and the (loss) on corporate fixed assets, net.

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

	Net Sales(1)(2)(3)(4)(5)						Operating (Loss) Profit(5)(6)									Assets at December 31(11)(12)
	2011		2010		2009		2011			2010			2009			2011		2010		2009
The Company’s operations by segment were:
Cabinets and Related Products	$	1,231	$	1,464	$	1,674	$	(206	)	$	(250	)	$	(64	)	$	1,009	$	1,108	$	1,382
Plumbing Products		2,913		2,692		2,564		322			331			237			1,959		1,866		1,815
Installation and Other Services		1,077		1,041		1,121		(79	)		(798	)		(116	)		1,427		1,537		2,339
Decorative Architectural Products		1,670		1,693		1,714		196			345			375			770		851		871
Other Specialty Products		576		596		584		(401	)		19			(199	)		768		1,182		1,197
Total	$	7,467	$	7,486	$	7,657	$	(168	)	$	(353	)	$	233		$	5,933	$	6,544	$	7,604
The Company’s operations by geographic area were:
North America	$	5,669	$	5,823	$	6,000	$	(259	)	$	(507	)	$	108		$	4,441	$	5,063	$	6,113
International, principally Europe		1,798		1,663		1,657		91			154			125			1,492		1,481		1,491
Total, as above	$	7,467	$	7,486	$	7,657		(168	)		(353	)		233			5,933		6,544		7,604
General corporate expense, net (7)								(118	)		(110	)		(140	)
Charge for defined-benefit curtailment (8)								—			—			(8	)
Charge for litigation settlements (9)								(9	)		—			(7	)
Accelerated stock compensation expense (10)								—			—			(6	)
Loss on corporate fixed assets, net								—			—			(2	)
Operating (loss) profit, as reported								(295	)		(463	)		70
Other income (expense), net								(177	)		(278	)		(206	)
Loss from continuing operations before income taxes							$	(472	)	$	(741	)	$	(136	)
Corporate assets																	1,339		1,596		1,571
Assets held for sale																	25		—		—
Total assets																$	7,297	$	8,140	$	9,175

	Property Additions(5)						Depreciation and Amortization(5)
	2011		2010		2009		2011		2010		2009
The Company’s operations by segment were:
Cabinets and Related Products	$	26	$	34	$	30	$	78	$	112	$	84
Plumbing Products		85		65		47		68		63		70
Installation and Other Services		9		6		29		32		33		28
Decorative Architectural Products		8		9		7		15		18		18
Other Specialty Products		17		18		7		48		26		28
		145		132		120		241		252		228
Unallocated amounts, principally related to corporate assets		6		4		1		16		20		17
Total	$	151	$	136	$	121	$	257	$	272	$	245

(1) Included in net sales were export sales from the U.S. of $241 million, $246 million and $277 million in 2011, 2010 and 2009, respectively.

(2) Intra-company sales between segments represented approximately two percent of net sales in 2011 and 2010 and three percent of net sales in 2009.

(3) Included in net sales were sales to one customer of $1,984 million, $1,993 million and $2,053 million in 2011, 2010 and 2009, 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 the Company’s operations in the U.S. were $5,394 million, $5,618 million and $5,952 million in 2011, 2010 and 2009, respectively.

(5) Net sales, operating (loss) profit, property additions and depreciation and amortization expense for 2011, 2010 and 2009 excluded the results of businesses reported as discontinued operations in 2011, 2010 and 2009.

(6) Included in segment operating (loss) profit for 2011 were impairment charges for goodwill and other intangible assets as follows: Cabinets and Related Products – $44 million; Plumbing Products – $1 million; Decorative Architectural Products – $75 million; and Other Specialty Products – $374 million. Included in segment operating (loss) profit for 2010 were impairment charges for goodwill and other intangible assets as follows: Plumbing Products – $1 million; and Installation and Other Services – $697 million. Included in segment operating profit (loss) for 2009 were impairment charges for goodwill as follows: Plumbing Products – $39 million; and Other Specialty Products – $223 million.

(7) General corporate expense, net included those expenses not specifically attributable to the Company’s segments.

(8) During 2009, the Company recognized a curtailment loss related to the plan to freeze all future benefit accruals beginning January 1, 2010 under substantially all of the Company’s domestic qualified and non-qualified defined-benefit pension plans. See Note M to the consolidated financial statements.

(9) The charge for litigation settlement in 2011 relates to business units in the Cabinets and Related Products and the Other Specialty Products segments. The charge for litigation settlement in 2009 relates to a business unit in the Cabinets and Related Products segment.

(10) See Note L to the consolidated financial statements.

(11) Long-lived assets of the Company’s operations in the U.S. and Europe were $2,964 million and $565 million, $3,684 million and $617 million, and $4,628 million and $690 million at December 31, 2011, 2010 and 2009, respectively.

(12) Segment assets for 2011 excluded the assets of businesses reported as discontinued operations in the respective years.