2013 Q4 Form 10-K Financial Statement

#000119312515062500 Filed on February 25, 2015

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2013 Q2
Revenue $964.6M $1.004B $922.1M
YoY Change 1.76% 10.39% -1.41%
Cost Of Revenue $553.7M $686.1M $663.4M
YoY Change -14.21% 13.07% 7.36%
Gross Profit $334.2M $348.5M $337.3M
YoY Change 10.12% 15.28% 6.27%
Gross Profit Margin 34.65% 34.72% 36.58%
Selling, General & Admin $237.7M $235.7M $267.7M
YoY Change -13.66% -0.21% 10.48%
% of Gross Profit 71.13% 67.63% 79.37%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $24.20M $23.40M $20.80M
YoY Change 8.52% -25.71% -9.57%
% of Gross Profit 7.24% 6.71% 6.17%
Operating Expenses $240.8M $235.7M $267.7M
YoY Change -13.32% -0.21% 10.48%
Operating Profit $81.90M $89.30M $94.60M
YoY Change 992.0% 47.36% 30.84%
Interest Expense -$2.200M $2.100M $1.700M
YoY Change 4.76% 5.0% -19.05%
% of Operating Profit -2.69% 2.35% 1.8%
Other Income/Expense, Net $6.600M $500.0K -$6.100M
YoY Change 1550.0% -37.5% 771.43%
Pretax Income $57.70M $96.00M $98.70M
YoY Change 894.83% 61.62% 42.01%
Income Tax $16.80M $31.90M $34.50M
% Of Pretax Income 29.12% 33.23% 34.95%
Net Earnings $64.20M $64.20M $64.00M
YoY Change 248.91% 60.5% 33.89%
Net Earnings / Revenue 6.66% 6.4% 6.94%
Basic Earnings Per Share $0.39 $0.39 $0.39
Diluted Earnings Per Share $0.37 $0.37 $0.37
COMMON SHARES
Basic Shares Outstanding 166.2M shares 166.0M shares 165.4M shares
Diluted Shares Outstanding 171.6M shares 171.3M shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $241.4M $157.0M $123.6M
YoY Change -28.15% -27.35% -16.03%
Cash & Equivalents $241.4M $157.0M $123.6M
Short-Term Investments
Other Short-Term Assets $127.9M $135.8M $141.4M
YoY Change -16.41% 10.5% 8.6%
Inventory $428.9M $463.1M $438.8M
Prepaid Expenses
Receivables $402.8M $517.7M $499.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.327B $1.274B $1.204B
YoY Change 8.1% 11.88% 12.69%
LONG-TERM ASSETS
Property, Plant & Equipment $468.3M $513.5M $522.2M
YoY Change 5.07% 3.15% 2.41%
Goodwill $1.434B $1.521B $1.522B
YoY Change 10.69% 11.16% 11.37%
Intangibles $628.9M $760.7M $764.6M
YoY Change -8.0% 8.97% 9.84%
Long-Term Investments
YoY Change
Other Assets $42.00M $50.40M $53.20M
YoY Change -41.34% -38.39% -37.78%
Total Long-Term Assets $2.851B $2.846B $2.862B
YoY Change 7.74% 7.54% 7.67%
TOTAL ASSETS
Total Short-Term Assets $1.327B $1.274B $1.204B
Total Long-Term Assets $2.851B $2.846B $2.862B
Total Assets $4.178B $4.119B $4.065B
YoY Change 7.85% 8.85% 9.11%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $314.8M $344.4M $350.1M
YoY Change 9.69% 35.86% 21.65%
Accrued Expenses $357.1M
YoY Change 12.51%
Deferred Revenue
YoY Change
Short-Term Debt $6.000M $5.600M $6.100M
YoY Change 9.09% 5.66% 32.61%
Long-Term Debt Due $0.00 $0.00 $22.50M
YoY Change -100.0% 28.57%
Total Short-Term Liabilities $738.7M $707.9M $671.7M
YoY Change 16.81% 18.42% 12.63%
LONG-TERM LIABILITIES
Long-Term Debt $350.0M $350.0M $357.5M
YoY Change 17.65% 3.15% 5.36%
Other Long-Term Liabilities $73.40M $85.80M $81.80M
YoY Change -11.14% 9.72% 9.5%
Total Long-Term Liabilities $423.4M $435.8M $439.3M
YoY Change 11.39% 4.38% 6.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $738.7M $707.9M $671.7M
Total Long-Term Liabilities $423.4M $435.8M $439.3M
Total Liabilities $1.525B $1.565B $1.537B
YoY Change 2.4% 7.94% 4.15%
SHAREHOLDERS EQUITY
Retained Earnings $200.8M $156.7M $125.8M
YoY Change 389.76% 593.36% -822.99%
Common Stock $1.700M $1.700M $1.600M
YoY Change 6.25% 6.25% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $79.80M $65.80M $34.10M
YoY Change 372.19% 813.89% 774.36%
Treasury Stock Shares 2.404M shares
Shareholders Equity $2.649B $2.551B $2.526B
YoY Change
Total Liabilities & Shareholders Equity $4.178B $4.119B $4.065B
YoY Change 7.85% 8.85% 9.11%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2013 Q2
OPERATING ACTIVITIES
Net Income $64.20M $64.20M $64.00M
YoY Change 248.91% 60.5% 33.89%
Depreciation, Depletion And Amortization $24.20M $23.40M $20.80M
YoY Change 8.52% -25.71% -9.57%
Cash From Operating Activities $131.6M $120.3M $118.4M
YoY Change -19.46% 79.82% 22.82%
INVESTING ACTIVITIES
Capital Expenditures -$41.50M -$24.00M -$16.80M
YoY Change 43.1% 34.83% -1.18%
Acquisitions
YoY Change
Other Investing Activities $100.0K -$1.000M -$299.3M
YoY Change -100.52% -110.64% -74925.0%
Cash From Investing Activities -$41.40M -$25.00M -$316.1M
YoY Change -14.29% 197.62% 1804.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.700M -62.10M 62.00M
YoY Change -226.67% -848.19% -215.24%
NET CHANGE
Cash From Operating Activities 131.6M 120.3M 118.4M
Cash From Investing Activities -41.40M -25.00M -316.1M
Cash From Financing Activities -5.700M -62.10M 62.00M
Net Change In Cash 84.50M 33.20M -135.7M
YoY Change -29.35% -50.3% -621.92%
FREE CASH FLOW
Cash From Operating Activities $131.6M $120.3M $118.4M
Capital Expenditures -$41.50M -$24.00M -$16.80M
Free Cash Flow $173.1M $144.3M $135.2M
YoY Change -10.03% 70.37% 19.22%

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CY2014 dei Document Type
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10-K
CY2014 dei Entity Registrant Name
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FORTUNE BRANDS HOME & SECURITY, INC.
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CY2014 dei Trading Symbol
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FBHS
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>Customer Program Costs</b>&#xA0;&#xA0;&#xA0;&#xA0;Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for in either &#x201C;net sales&#x201D; or the category &#x201C;selling, general and administrative expenses&#x201D; at the time the program is initiated and/or the revenue is recognized. The costs are predominantly recognized in &#x201C;net sales&#x201D; and include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management&#x2019;s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management&#x2019;s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, levels of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in &#x201C;selling, general and administrative expenses&#x201D; include product displays, point of sale materials and media production costs. The costs included in the &#x201C;selling, general and administrative expenses&#x201D; category were $43.4 million, $43.5 million and $45.0 million for the years ended December&#xA0;31, 2014, 2013 and 2012, respectively.</font></p> </div>
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CY2014 dei Document Period End Date
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CY2014 dei Document Fiscal Period Focus
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FY
CY2014 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2014 us-gaap Loss Contingency Disclosures
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>22.&#xA0;&#xA0;&#xA0;&#xA0;Contingencies</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2"><b>Litigation</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2">The Company is a defendant in lawsuits associated with the normal conduct of its businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company&#x2019;s results of operations, cash flows or financial condition, and, where appropriate, these actions are being vigorously contested. Accordingly the Company believes the likelihood of material loss is remote.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2"><b>Environmental</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2">Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Fortune Brands. Several of our subsidiaries have been designated as potentially responsible parties (&#x201C;PRP&#x201D;) under &#x201C;Superfund&#x201D; or similar state laws.&#xA0;As of December&#xA0;31, 2014, nine such instances have not been dismissed, settled or otherwise resolved.&#xA0;In calendar year 2014, our subsidiaries were identified as a PRP in three new instances and we settled two of these new instances in 2014. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have an adverse effect on our results of operations, cash flows or financial condition. At December&#xA0;31, 2014 and 2013, we had accruals of $2.8&#xA0;million and $4.8 million, respectively, relating to environmental compliance and clean up including, but not limited to, the above mentioned Superfund sites.</font></p> </div>
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