Segment Information

12 Months Ended

Dec. 31, 2012

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 (loss) also excludes the charge for litigation settlements, net, and the gain on sale of 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 Profit (Loss) (5)  (6)									Assets at December 31 (9)  (10)
	2012		2011		2010		2012			2011			2010			2012		2011		2010
The Company’s operations by segment were:
Cabinets and Related Products	$	1,189	$	1,231	$	1,464	$	(120	)	$	(206	)	$	(250	)	$	903	$	1,009	$	1,108
Plumbing Products		2,955		2,913		2,692		307			322			331			2,012		1,959		1,866
Installation and Other Services		1,209		1,077		1,041		(19	)		(79	)		(798	)		1,444		1,427		1,537
Decorative Architectural Products		1,818		1,670		1,693		329			196			345			799		770		851
Other Specialty Products		574		576		596		(31	)		(401	)		19			704		768		1,182
Total	$	7,745	$	7,467	$	7,486	$	466		$	(168	)	$	(353	)	$	5,862	$	5,933	$	6,544
The Company’s operations by geographic area were:
North America	$	6,046	$	5,669	$	5,823	$	360		$	(259	)	$	(507	)	$	4,363	$	4,441	$	5,063
International, principally Europe		1,699		1,798		1,663		106			91			154			1,499		1,492		1,481
Total, as above	$	7,745	$	7,467	$	7,486		466			(168	)		(353	)		5,862		5,933		6,544
General corporate expense, net (7)								(126	)		(118	)		(110	)
Charge for litigation settlements, net (8)								(77	)		(9	)		—
Gain from sales of fixed assets, net								8			—			—
Operating profit (loss), as reported								271			(295	)		(463	)
Other income (expense), net								(229	)		(177	)		(278	)
Income (loss) from continuing operations before income taxes							$	42		$	(472	)	$	(741	)
Corporate assets																	1,013		1,339		1,596
Assets held for sale																	—		25		—
Total assets																$	6,875	$	7,297	$	8,140

	Property Additions (5)						Depreciation and Amortization (5)
	2012		2011		2010		2012		2011		2010
The Company’s operations by segment were:
Cabinets and Related Products	$	17	$	26	$	34	$	68	$	78	$	112
Plumbing Products		67		85		65		69		68		63
Installation and Other Services		11		9		6		30		32		33
Decorative Architectural Products		11		8		9		15		15		18
Other Specialty Products		11		17		18		21		48		26
		117		145		132		203		241		252
Unallocated amounts, principally related to corporate assets		2		6		4		11		16		20
Total	$	119	$	151	$	136	$	214	$	257	$	272

(1) Included in net sales were export sales from the U.S. of $229 million, $241 million and $246 million in 2012, 2011 and 2010, respectively.

(2) Excluded from net sales were intra-company sales between segments of approximately two percent of net sales in each of 2012, 2011 and 2010.

(3) Included in net sales were sales to one customer of $2,143 million, $1,984 million and $1,993 million in 2012, 2011 and 2010, 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 $5,793 million, $5,394 million and $5,618 million in 2012, 2011 and 2010, respectively.

(5) Net sales, operating (loss) profit, property additions and depreciation and amortization expense for 2012, 2011 and 2010 excluded the results of businesses reported as discontinued operations in 2012, 2011 and 2010.

(6) Included in segment operating profit (loss) for 2012 was an impairment charge for other intangible assets as follows: Other Specialty Products – $42 million. 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.

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

(8) The charge for litigation settlement, net in 2012 primarily relates to a business in the Installation and Other Services segment and in 2011 relates to business units in the Cabinets and Related Products and the Other Specialty Products segments.

(9) Long-lived assets of the Company’s operations in the U.S. and Europe were $2,795 million and $567 million, $2,964 million and $565 million, and $3,684 million and $617 million at December 31, 2012, 2011 and 2010, respectively.

(10) Segment assets for 2012 and 2011 excluded the assets of businesses reported as discontinued operations in the respective years.