2014 Q4 Form 10-K Financial Statement

#000119312516478315 Filed on February 25, 2016

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2014 Q2
Revenue $1.040B $1.058B $1.027B
YoY Change 7.78% 5.39% 11.4%
Cost Of Revenue $623.9M $689.7M $665.4M
YoY Change 12.68% 0.52% 0.3%
Gross Profit $341.8M $368.0M $361.8M
YoY Change 2.27% 5.6% 7.26%
Gross Profit Margin 32.88% 34.79% 35.22%
Selling, General & Admin $243.9M $234.9M $232.6M
YoY Change 2.61% -0.34% -13.11%
% of Gross Profit 71.36% 63.83% 64.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $25.60M $25.60M $24.10M
YoY Change 5.79% 9.4% 15.87%
% of Gross Profit 7.49% 6.96% 6.66%
Operating Expenses $247.4M $234.9M $232.6M
YoY Change 2.74% -0.34% -13.11%
Operating Profit $79.20M $129.5M $125.5M
YoY Change -3.3% 45.02% 32.66%
Interest Expense -$3.800M $3.200M $2.100M
YoY Change 72.73% 52.38% 23.53%
% of Operating Profit -4.8% 2.47% 1.67%
Other Income/Expense, Net $2.000M $500.0K -$1.000M
YoY Change -69.7% 0.0% -83.61%
Pretax Income $61.60M $126.8M $122.4M
YoY Change 6.76% 32.08% 24.01%
Income Tax $13.10M $42.30M $36.10M
% Of Pretax Income 21.27% 33.36% 29.49%
Net Earnings $45.40M -$21.10M $93.30M
YoY Change -29.28% -132.87% 45.78%
Net Earnings / Revenue 4.37% -1.99% 9.08%
Basic Earnings Per Share $0.29 -$0.13 $0.57
Diluted Earnings Per Share $0.28 -$0.13 $0.55
COMMON SHARES
Basic Shares Outstanding 157.8M shares 158.7M shares 164.2M shares
Diluted Shares Outstanding 163.2M shares 168.7M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $191.9M $175.1M $145.0M
YoY Change -20.51% 11.53% 17.31%
Cash & Equivalents $191.9M $175.1M $145.0M
Short-Term Investments
Other Short-Term Assets $122.8M $132.4M $135.6M
YoY Change -3.99% -2.5% -4.1%
Inventory $462.2M $520.9M $521.2M
Prepaid Expenses
Receivables $458.9M $534.5M $535.3M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.299B $1.363B $1.337B
YoY Change -2.13% 7.01% 11.09%
LONG-TERM ASSETS
Property, Plant & Equipment $539.8M $533.3M $540.2M
YoY Change 15.27% 3.86% 3.45%
Goodwill $1.468B $1.456B $1.521B
YoY Change 2.37% -4.31% -0.08%
Intangibles $656.5M $665.9M $744.2M
YoY Change 4.39% -12.46% -2.67%
Long-Term Investments
YoY Change
Other Assets $72.40M $63.50M $48.00M
YoY Change 72.38% 25.99% -9.77%
Total Long-Term Assets $2.752B $2.718B $2.853B
YoY Change -3.45% -4.48% -0.31%
TOTAL ASSETS
Total Short-Term Assets $1.299B $1.363B $1.337B
Total Long-Term Assets $2.752B $2.718B $2.853B
Total Assets $4.052B $4.081B $4.190B
YoY Change -3.03% -0.92% 3.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $333.8M $341.4M $337.7M
YoY Change 6.04% -0.87% -3.54%
Accrued Expenses $322.0M
YoY Change -9.83%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $3.500M $10.10M
YoY Change -100.0% -37.5% 65.57%
Long-Term Debt Due $26.30M $26.20M
YoY Change
Total Short-Term Liabilities $699.6M $710.2M $644.9M
YoY Change -5.29% 0.32% -3.99%
LONG-TERM LIABILITIES
Long-Term Debt $643.7M $653.8M $595.0M
YoY Change 83.91% 86.8% 66.43%
Other Long-Term Liabilities $75.60M $178.4M $175.2M
YoY Change 3.0% 107.93% 114.18%
Total Long-Term Liabilities $719.3M $832.2M $770.2M
YoY Change 69.89% 90.96% 75.32%
TOTAL LIABILITIES
Total Short-Term Liabilities $699.6M $710.2M $644.9M
Total Long-Term Liabilities $719.3M $832.2M $770.2M
Total Liabilities $1.790B $1.741B $1.659B
YoY Change 17.36% 11.2% 7.91%
SHAREHOLDERS EQUITY
Retained Earnings $279.5M $256.5M $315.6M
YoY Change 39.19% 63.69% 150.87%
Common Stock $2.519B $1.700M $1.700M
YoY Change 148076.47% 0.0% 6.25%
Preferred Stock
YoY Change
Treasury Stock (at cost) $532.3M $500.0M $352.6M
YoY Change 567.04% 659.88% 934.02%
Treasury Stock Shares 13.81M shares
Shareholders Equity $2.260B $2.337B $2.529B
YoY Change
Total Liabilities & Shareholders Equity $4.053B $4.081B $4.190B
YoY Change -3.0% -0.92% 3.07%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2014 Q2
OPERATING ACTIVITIES
Net Income $45.40M -$21.10M $93.30M
YoY Change -29.28% -132.87% 45.78%
Depreciation, Depletion And Amortization $25.60M $25.60M $24.10M
YoY Change 5.79% 9.4% 15.87%
Cash From Operating Activities $156.0M $140.9M $125.9M
YoY Change 18.54% 17.12% 6.33%
INVESTING ACTIVITIES
Capital Expenditures -$45.20M -$34.70M -$26.60M
YoY Change 8.92% 44.58% 58.33%
Acquisitions
YoY Change
Other Investing Activities -$28.30M $4.600M $0.00
YoY Change -28400.0% -560.0% -100.0%
Cash From Investing Activities -$73.50M -$30.10M -$26.60M
YoY Change 77.54% 20.4% -91.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -62.70M -80.20M -79.10M
YoY Change 1000.0% 29.15% -227.58%
NET CHANGE
Cash From Operating Activities 156.0M 140.9M 125.9M
Cash From Investing Activities -73.50M -30.10M -26.60M
Cash From Financing Activities -62.70M -80.20M -79.10M
Net Change In Cash 19.80M 30.60M 20.20M
YoY Change -76.57% -7.83% -114.89%
FREE CASH FLOW
Cash From Operating Activities $156.0M $140.9M $125.9M
Capital Expenditures -$45.20M -$34.70M -$26.60M
Free Cash Flow $201.2M $175.6M $152.5M
YoY Change 16.23% 21.69% 12.8%

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<div> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>22.&#xA0;&#xA0;&#xA0;&#xA0;Contingencies</b></font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Litigation</b></font></p> <p style="margin-top:12px;margin-bottom:0px"><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-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Environmental</b></font></p> <p style="margin-top:12px;margin-bottom:0px"><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. As of December&#xA0;31, 2015, ten such instances have not been dismissed, settled or otherwise resolved. In calendar year 2015, none of our subsidiaries were identified as a PRP in any new instances and no instances were settled, dismissed or otherwise resolved. 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, 2015 and 2014, we had accruals of $2.8 million, relating to environmental compliance and clean up including, but not limited to, the above mentioned Superfund sites.</font></p> </div>
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<div> <p style="margin-top:12px;margin-bottom: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 $43.2 million, $43.4 million and $43.5 million for the years ended December&#xA0;31, 2015, 2014 and 2013, respectively.</font></p> </div>
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CY2015Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax
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CY2015Q2 us-gaap Profit Loss
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