2016 Q4 Form 10-K Financial Statement

#000119312517062357 Filed on February 28, 2017

View on sec.gov

Income Statement

Concept 2016 Q4 2015 Q4 2015 Q3
Revenue $1.302B $1.225B $1.239B
YoY Change 6.28% 17.8% 17.12%
Cost Of Revenue $826.4M $805.7M $804.3M
YoY Change 2.57% 29.14% 16.62%
Gross Profit $474.1M $420.1M $434.5M
YoY Change 12.85% 22.91% 18.07%
Gross Profit Margin 36.42% 34.3% 35.07%
Selling, General & Admin $297.6M $269.5M $265.7M
YoY Change 10.43% 10.5% 13.11%
% of Gross Profit 62.77% 64.15% 61.15%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $33.00M $33.30M $31.60M
YoY Change -0.9% 30.08% 23.44%
% of Gross Profit 6.96% 7.93% 7.27%
Operating Expenses $305.3M $275.8M $265.7M
YoY Change 10.7% 11.48% 13.11%
Operating Profit $166.4M $140.3M $160.3M
YoY Change 18.6% 77.15% 23.78%
Interest Expense -$11.80M -$2.500M $11.10M
YoY Change 372.0% -34.21% 246.88%
% of Operating Profit -7.09% -1.78% 6.92%
Other Income/Expense, Net -$2.300M -$2.900M -$500.0K
YoY Change -20.69% -245.0% -200.0%
Pretax Income $153.2M $128.3M $148.7M
YoY Change 19.41% 108.28% 17.27%
Income Tax $48.80M $40.70M $48.70M
% Of Pretax Income 31.85% 31.72% 32.75%
Net Earnings $103.7M $88.00M $107.5M
YoY Change 17.84% 93.83% -609.48%
Net Earnings / Revenue 7.97% 7.19% 8.68%
Basic Earnings Per Share $0.67 $0.55 $0.67
Diluted Earnings Per Share $0.66 $0.54 $0.66
COMMON SHARES
Basic Shares Outstanding 154.3M shares 159.7M shares 160.0M shares
Diluted Shares Outstanding 163.4M shares

Balance Sheet

Concept 2016 Q4 2015 Q4 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $251.5M $238.5M $350.6M
YoY Change 5.45% 24.28% 100.23%
Cash & Equivalents $251.5M $238.5M $350.6M
Short-Term Investments
Other Short-Term Assets $111.9M $121.3M $175.4M
YoY Change -7.75% -1.22% 32.48%
Inventory $531.1M $555.6M $540.4M
Prepaid Expenses
Receivables $550.7M $502.6M $557.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.445B $1.418B $1.623B
YoY Change 1.92% 9.15% 19.11%
LONG-TERM ASSETS
Property, Plant & Equipment $662.5M $627.9M $606.3M
YoY Change 5.51% 16.32% 13.69%
Goodwill $1.834B $1.755B $1.801B
YoY Change 4.47% 19.59% 23.72%
Intangibles $1.107B $996.7M $982.2M
YoY Change 11.07% 51.82% 47.5%
Long-Term Investments
YoY Change
Other Assets $80.00M $77.80M $69.50M
YoY Change 2.83% 7.46% 9.45%
Total Long-Term Assets $3.683B $3.458B $3.459B
YoY Change 6.52% 25.62% 27.24%
TOTAL ASSETS
Total Short-Term Assets $1.445B $1.418B $1.623B
Total Long-Term Assets $3.683B $3.458B $3.459B
Total Assets $5.129B $4.876B $5.082B
YoY Change 5.18% 20.34% 24.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $393.8M $344.2M $353.6M
YoY Change 14.41% 3.12% 3.57%
Accrued Expenses $449.0M $412.9M
YoY Change 8.74% 28.23%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $800.0K $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $0.00 $0.00 $3.800M
YoY Change -100.0% -85.5%
Total Short-Term Liabilities $842.8M $757.9M $777.7M
YoY Change 11.2% 8.33% 9.5%
LONG-TERM LIABILITIES
Long-Term Debt $1.431B $1.169B $1.338B
YoY Change 22.45% 81.56% 104.59%
Other Long-Term Liabilities $111.9M $75.20M $296.6M
YoY Change 48.8% -0.53% 66.26%
Total Long-Term Liabilities $1.543B $1.244B $1.634B
YoY Change 24.05% 72.93% 96.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $842.8M $757.9M $777.7M
Total Long-Term Liabilities $1.543B $1.244B $1.634B
Total Liabilities $2.766B $2.422B $2.678B
YoY Change 14.19% 35.32% 53.85%
SHAREHOLDERS EQUITY
Retained Earnings $814.6M $501.6M $439.4M
YoY Change 62.4% 79.46% 71.31%
Common Stock $2.656B $2.604B $2.583B
YoY Change 1.98% 3.37% 151864.71%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.037B $602.1M $582.1M
YoY Change 72.18% 13.11% 16.42%
Treasury Stock Shares $24.31M 15.29M shares
Shareholders Equity $2.362B $2.451B $2.402B
YoY Change
Total Liabilities & Shareholders Equity $5.129B $4.876B $5.082B
YoY Change 5.18% 20.3% 24.53%

Cashflow Statement

Concept 2016 Q4 2015 Q4 2015 Q3
OPERATING ACTIVITIES
Net Income $103.7M $88.00M $107.5M
YoY Change 17.84% 93.83% -609.48%
Depreciation, Depletion And Amortization $33.00M $33.30M $31.60M
YoY Change -0.9% 30.08% 23.44%
Cash From Operating Activities $269.9M $151.4M $222.4M
YoY Change 78.27% -2.95% 57.84%
INVESTING ACTIVITIES
Capital Expenditures -$43.20M -$41.60M -$32.30M
YoY Change 3.85% -7.96% -6.92%
Acquisitions
YoY Change
Other Investing Activities -$7.600M $0.00 $14.00M
YoY Change -100.0% 204.35%
Cash From Investing Activities -$50.80M -$41.60M -$18.30M
YoY Change 22.12% -43.4% -39.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -240.9M -218.0M -70.50M
YoY Change 10.5% 247.69% -12.09%
NET CHANGE
Cash From Operating Activities 269.9M 151.4M 222.4M
Cash From Investing Activities -50.80M -41.60M -18.30M
Cash From Financing Activities -240.9M -218.0M -70.50M
Net Change In Cash -21.80M -108.2M 133.6M
YoY Change -79.85% -646.46% 336.6%
FREE CASH FLOW
Cash From Operating Activities $269.9M $151.4M $222.4M
Capital Expenditures -$43.20M -$41.60M -$32.30M
Free Cash Flow $313.1M $193.0M $254.7M
YoY Change 62.23% -4.08% 45.05%

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13100000
CY2014 us-gaap Cash And Cash Equivalents Period Increase Decrease
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CY2014 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2014 us-gaap Increase Decrease In Accrued Income Taxes Payable
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100000
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CY2014 us-gaap Proceeds From Issuance Of Long Term Debt
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23600000
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28900000
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7000000
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2500000
CY2014 fbhs Dividends Declared Not Paid
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22100000
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11.58
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CY2016 dei Document Fiscal Period Focus
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CY2016 dei Document Fiscal Year Focus
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2016
CY2016 dei Document Type
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CY2016 us-gaap Earnings Per Share Diluted
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2.62
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0.35 pure
CY2016 dei Entity Central Index Key
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0001519751
CY2016 dei Entity Well Known Seasoned Issuer
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CY2016 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2016 us-gaap Loss Contingency Disclosures
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<div> <p style="margin-top:12px;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 that are ordinary routine litigation matters incidental to its businesses. 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.&#xA0;As of December&#xA0;31, 2016, eleven such instances have not been dismissed, settled or otherwise resolved.&#xA0;In calendar year 2016, one of our subsidiaries was identified as a PRP in a new instance 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, 2016 and 2015, we had accruals of $1.0&#xA0;million and $2.8&#xA0;million, respectively, relating to environmental compliance and cleanup including, but not limited to, the above mentioned Superfund sites. Our year over year accrual decreased after we completed the remediation at one location.</font></p> </div>
CY2016 us-gaap Revenue Recognition Incentives
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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 $44.1&#xA0;million, $43.2&#xA0;million and $43.4&#xA0;million for the years ended December&#xA0;31, 2016, 2015 and 2014, respectively.</font></p> </div>
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P10Y
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56712 shares
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13.10
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CY2016 dei Trading Symbol
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FBHS
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false
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0.01
CY2016 dei Entity Current Reporting Status
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CY2016 dei Entity Filer Category
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Large Accelerated Filer
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0.014 pure
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0.013 pure
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12.70
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46.29
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50.22
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204538 shares
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0.66
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--12-31
CY2016 dei Document Period End Date
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2016-12-31
CY2016 us-gaap Earnings Per Share Basic
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2.68
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3500000 shares
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650500000
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1949423 shares
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0.066 pure
CY2016 us-gaap Use Of Estimates
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<div> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Use of Estimates</b>&#xA0;&#xA0;&#xA0;&#xA0;The presentation of financial statements in accordance with U.S. generally accepted accounting principles (&#x201C;GAAP&#x201D;) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates.</font></p> </div>
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0.66
CY2016Q4 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.67
CY2016Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
-0.01
CY2016Q4 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.68
CY2016Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
-0.01
CY2016Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.67
CY2016Q4 us-gaap Sales Revenue Net
SalesRevenueNet
1301600000
CY2016Q4 us-gaap Income Loss Attributable To Parent
IncomeLossAttributableToParent
103600000
CY2016Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
166400000
CY2016Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
-700000
CY2016Q4 us-gaap Profit Loss
ProfitLoss
103700000
CY2016Q4 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
104400000
CY2016Q4 us-gaap Gross Profit
GrossProfit
474100000

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