View Filing Data

Other intangible assets, net of accumulated amortization

^[1]

1,520.6

1,519.9

744.2

752.9

Other assets

48.0

43.5

Total assets

4,190.1

4,178.1

Current liabilities

Notes payable to banks

10.1

6.0

Accounts payable

337.7

343.8

Other current liabilities

297.1

388.9

Total current liabilities

644.9

738.7

Long-term debt

595.0

350.0

Deferred income taxes

243.4

245.8

Other non-current liabilities

175.2

190.5

Total liabilities

1,658.5

1,525.0

Commitments and contingencies (see Note 17)

Home & Security stockholders' equity

Common stock

^[2]

1.7

Paid-in capital

2,476.1

2,431.3

Accumulated other comprehensive income

87.8

95.4

Retained earnings

315.6

200.8

Treasury stock

(352.6)

(79.8)

Total Home & Security stockholders' equity

2,528.6

2,649.4

Noncontrolling interests

3.0

3.7

Total equity

2,531.6

2,653.1

Total liabilities and equity

$ 4,190.1

$ 4,178.1

[1]	Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).
[2]	Common stock, par value $0.01 per share; 170.4 million shares and 169.1 million shares issued at June 30, 2014 and December 31, 2013, respectively.

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2014	Dec. 31, 2013
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	170.4	169.1

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Operating activities

Net income

$ 134.8

$ 101.7

Non-cash pre-tax expense:

Depreciation

39.6

37.7

Amortization

8.0

5.1

Stock-based compensation

15.8

13.8

Recognition of actuarial losses

0.6

5.4

Deferred income taxes

6.6

4.9

Increase in accounts receivable

0.4

Asset impairment charge

6.2

Changes in assets and liabilities:

(58.2)

(81.3)

Increase in inventories

(50.0)

(56.5)

(Decrease) increase in accounts payable

(6.0)

47.8

(Increase) decrease in other assets

(11.8)

12.9

Decrease in accrued expenses and other liabilities

(131.2)

(66.2)

Increase in accrued taxes

20.7

14.4

Net cash (used in) provided by operating activities

(30.7)

45.9

Investing activities

Capital expenditures

(47.6)

(31.2)

Proceeds from the disposition of assets

0.1

0.3

Cost of acquisition, net of cash

(299.4)

Net cash used in investing activities

(47.5)

(330.3)

Financing activities

Increase in short-term debt, net

3.9

1.1

Issuance of long-term debt

480.0

180.0

Repayment of long-term debt

(235.0)

(120.0)

Proceeds from the exercise of stock options

11.0

28.8

Treasury stock purchases

^[1]

(255.0)

(13.5)

Excess tax benefit from the exercise of stock-based compensation

18.6

13.1

Dividends to stockholders

(39.5)

(16.5)

Other financing, net

(1.1)

Net cash (used in) provided by financing activities

(17.1)

71.9

Effect of foreign exchange rate changes on cash

(1.1)

0.1

Net decrease in cash and cash equivalents

(96.4)

(212.4)

Cash and cash equivalents at beginning of period

241.4

336.0

Cash and cash equivalents at end of period

$ 145.0

$ 123.6

[1]	Treasury stock repurchases exclude repurchases of $9.8 million in June 2014 that were not settled until July 2014.

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2014 USD ($)
Treasury stock repurchases	$ 9.8

Condensed Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock	Non-controlling Interests
Beginning Balance at Dec. 31, 2012	$ 2,384.7	$ 1.6	$ 2,324.8	$ 30.6	$ 41.0	$ (16.9)	$ 3.6
Comprehensive income:
Net income	101.7				101.3		0.4
Other comprehensive income	21.5			21.5
Stock options exercised	28.8		28.8
Stock-based compensation	9.3		13.4			(4.1)
Tax benefit on exercise of stock options	13.1		13.1
Treasury stock purchase	(13.1)					(13.1)
Dividends ($0.10 per Common share) in 2013 and ($0.12 per Common share) in 2014	(16.5)				(16.5)
Dividends paid to noncontrolling interests	(1.1)						(1.1)
Ending Balance at Jun. 30, 2013	2,528.4	1.6	2,380.1	52.1	125.8	(34.1)	2.9
Beginning Balance at Dec. 31, 2013	2,653.1	1.7	2,431.3	95.4	200.8	(79.8)	3.7
Comprehensive income:
Net income	134.8				134.1		0.7
Other comprehensive income	(7.9)			(7.6)			(0.3)
Stock options exercised	11.0		11.0
Stock-based compensation	7.4		15.4			(8.0)
Tax benefit on exercise of stock options	18.4		18.4
Treasury stock purchase	(264.8)					(264.8)
Dividends ($0.10 per Common share) in 2013 and ($0.12 per Common share) in 2014	(19.3)				(19.3)
Dividends paid to noncontrolling interests	(1.1)						(1.1)
Ending Balance at Jun. 30, 2014	$ 2,531.6	$ 1.7	$ 2,476.1	$ 87.8	$ 315.6	$ (352.6)	$ 3.0

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Dividends per Common share	$ 0.12	$ 0.10

Basis of Presentation and Principles of Consolidation

6 Months Ended

Jun. 30, 2014

Basis of Presentation and Principles of Consolidation

1. Basis of Presentation and Principles of Consolidation

References to “Home & Security,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires.

The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction, security applications and storage.

The condensed consolidated balance sheet as of June 30, 2014, the related condensed consolidated statements of comprehensive income for the six-month and three-month periods ended June 30, 2014 and 2013 and the related condensed consolidated statements of cash flows and equity for the six-month periods ended June 30, 2014 and 2013 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations for the interim periods have been included and are of a normal, recurring nature. Interim results may not be indicative of results for a full year.

The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our annual consolidated financial statements and notes. The year-end condensed consolidated balance sheet was derived from the audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). This Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.

Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2014

Recently Issued Accounting Standards

2. Recently Issued Accounting Standards

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” This ASU clarifies the accounting for revenue arising from contracts with customers and specifies the disclosures that an entity should include in its financial statements. The amendment is effective for annual reporting periods beginning after December 15, 2016 (calendar year 2017 for Home & Security). We are assessing the impact the adoption of this standard will have on our financial statements.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the definition of discontinued operations and requires expanded disclosures. The amendment is effective for annual periods beginning on or after December 15, 2014 (calendar year 2015 for Home & Security). Early adoption is permitted. We do not expect this standard to have a material effect on our financial statements.

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Balance Sheet Information

Balance Sheet Information

6 Months Ended

Jun. 30, 2014

3. Balance Sheet Information

Supplemental information on our balance sheets is as follows:


(In millions)	June 30, 2014		December 31, 2013
Inventories:
Raw materials and supplies	$	204.0	$	184.6
Work in process		54.9		52.5
Finished products		262.3		234.5

Total inventories	$	521.2	$	471.6

Property, plant and equipment, gross	$	1,566.1	$	1,556.1
Less: accumulated depreciation		1,025.9		1,021.7

Property, plant and equipment, net	$	540.2	$	534.4

Acquisition

6 Months Ended

Jun. 30, 2014

Acquisition

4. Acquisition

In June 2013, our Kitchen & Bath Cabinetry business acquired 100% of the voting equity of Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops for a purchase price of $302 million. We paid the purchase price using a combination of cash on hand and borrowings under our existing credit facilities. This acquisition greatly expanded our offerings of bathroom cabinetry products. Net sales and operating income of WoodCrafters in the second quarter of 2014 were approximately $50 million and $7 million, respectively, and in the first six months of 2014 were approximately $100 million and $12 million, respectively.

The following table summarizes the final allocation of the purchase price to fair values of assets acquired and liabilities assumed as of the date of the acquisition.


(In millions)
Accounts receivable	$	41.4
Inventories		25.7
Property, plant and equipment		29.6
Goodwill		143.4
Identifiable intangible assets		89.4
Other assets		7.3

Total assets		336.8
Other liabilities and accruals		34.8

Net assets acquired	$	302.0

Goodwill primarily represents expected supply chain synergies. Identifiable intangible assets primarily consisted of customer relationships ($75.9 million) and technology ($9.6 million). The useful lives of these identifiable intangible assets are 18 years and 10 years, respectively.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

Goodwill and Identifiable Intangible Assets

Goodwill and Identifiable Intangible Assets

6 Months Ended

Jun. 30, 2014

5. Goodwill and Identifiable Intangible Assets

We had goodwill of $1,520.6 million as of June 30, 2014. The change in the net carrying amount of goodwill by segment was as follows:


(In millions)	Kitchen & Bath Cabinetry		Plumbing & Accessories		Advanced Material Windows & Door Systems		Security & Storage			Total Goodwill
Goodwill at December 31, 2013 ^(a)	$	631.7	$	569.7	$	229.1	$	89.4		$	1,519.9
Year-to-date translation adjustments		0.1		—		—		(0.1	)		—
Acquisition-related adjustments		0.7		—		—		—			0.7

Goodwill at June 30, 2014 ^(a)	$	632.5	$	569.7	$	229.1	$	89.3		$	1,520.6

^(a)

Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).

Amortizable identifiable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, 5 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, and other relevant factors.

The gross carrying value and accumulated amortization by class of intangible assets as of June 30, 2014 and December 31, 2013 were as follows:


(In millions)	As of June 30, 2014							As of December 31, 2013
	Gross					Net		Gross					Net
	Carrying		Accumulated			Book		Carrying		Accumulated			Book
	Amounts		Amortization			Value		Amounts		Amortization			Value
Indefinite-lived tradenames	$	596.6	$	(42.0	)^(a)	$	554.6	$	597.2	$	(42.0	)^(a)	$	555.2
Amortizable intangible assets
Tradenames		19.6		(7.9	)		11.7		19.6		(7.4	)		12.2
Customer and contractual relationships		348.3		(188.7	)		159.6		348.6		(182.5	)		166.1
Patents/proprietary technology		63.5		(45.2	)		18.3		63.2		(43.8	)		19.4

Total		431.4		(241.8	)		189.6		431.4		(233.7	)		197.7

Total identifiable intangibles	$	1,028.0	$	(283.8	)	$	744.2	$	1,028.6	$	(275.7	)	$	752.9

^(a)

Accumulated amortization prior to the adoption of revised Accounting Standards Codification (“ASC”) requirements for Intangibles – Goodwill and Other Assets.

In the first half of 2014, no events or circumstances occurred that would have required us to perform interim impairment tests of goodwill or indefinite-lived intangible assets. As of December 31, 2013, the fair value of each of our reporting units except for one of the reporting units in the Advanced Material Doors & Windows segment exceeded the carrying value by a substantial margin. The estimated excess fair value of this reporting unit was less than 10%. In addition, for one of the tradenames within this reporting unit, fair value exceeded its carrying value by less than 10%. Accordingly, a reduction in the estimated fair value of this reporting unit or tradename could trigger an impairment. As of June 30, 2014, the book values of the goodwill of this reporting unit and this tradename were $86.1 million and $58.4 million, respectively.

The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that lag our assumptions, actions of key customers, volatility of discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, and lower levels of discretionary consumer spending. In addition, future decisions we could make with regard to acquisitions and divestitures could trigger a requirement to measure certain assets as held for sale with the resulting change in measurement standard potentially triggering impairments. While our cash flow projections used to assess impairment of our goodwill and other intangible assets held for use are influenced by a number of variables, they are most significantly influenced by our projection for the continued recovery of the U.S. home products markets in the next three years and our ability to execute on various planned cost reduction initiatives supporting operating income improvements forecasted to occur over the next three years. We evaluate our projection of the U.S. home products market periodically and in connection with our annual operating plans finalized in the fourth quarter of each year. The U.S. home products market is highly dependent on U.S. new home construction and the rate of spending on repair and remodel activities. Our projection for the U.S. home products markets is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, and the rate of home foreclosures. Significant changes in these and other factors could cause us to change our cash flow projections in future periods which could trigger impairment of goodwill or indefinite-lived intangible assets in the period in which such changes occur.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

External Debt and Financing Arrangements

External Debt and Financing Arrangements

6 Months Ended

Jun. 30, 2014

6. External Debt and Financing Arrangements

We have a $650 million committed revolving credit facility, as well as a $350 million term loan, both of which expire in July 2018. On June 30, 2014 and December 31, 2013, our outstanding borrowings under these facilities were $595.0 million and $350.0 million, respectively. The interest rates under these facilities are variable based on LIBOR at the time of the borrowing and the Company’s leverage as measured by a debt to Adjusted EBITDA ratio. Based upon the Company’s debt to Adjusted EBITDA ratio at June 30, 2014, the Company’s borrowing rate could range from LIBOR + 1.0% to LIBOR + 2.0%. As of June 30, 2014, we were in compliance with all covenants under these facilities.

At June 30, 2014 and December 31, 2013, there were $10.1 million and $6.0 million of external short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes. These amounts pertained to uncommitted bank lines of credit in China and India, which provide for unsecured borrowings for working capital of up to $22.7 million in aggregate, as of June 30, 2014 and December 31, 2013. The weighted-average interest rates on these borrowings were 7.2% and 12.4% in the six-month periods ended June 30, 2014 and 2013, respectively. The weighted-average interest rates on these borrowings were 5.3% and 12.6% in the three-month periods ended June 30, 2014 and 2013, respectively.

Financial Instruments

6 Months Ended

Jun. 30, 2014

Financial Instruments

7. Financial Instruments

We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. In addition, from time to time, we enter into commodity swaps.

Our primary foreign currency hedge contracts pertain to the Canadian dollar, the Chinese yuan and the Mexican peso. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at June 30, 2014 was $259.3 million, representing a net settlement liability of $3.0 million. Based on foreign exchange rates as of June 30, 2014, we estimate that $2.4 million of net foreign currency derivative gains included in other comprehensive income as of June 30, 2014 will be reclassified to earnings within the next twelve months.

The fair values of derivative instruments on the consolidated balance sheets as of June 30, 2014 and December 31, 2013 were:


(In millions)		Fair Value
	Location	June 30, 2014		December 31, 2013
Assets
Foreign exchange contracts	Other current assets	$	0.6	$	2.1
Net investment hedges	Other current assets		—		0.6

	Total assets	$	0.6	$	2.7
Liabilities
Foreign exchange contracts	Other current liabilities	$	3.2	$	0.3
Commodity contracts	Other current liabilities		0.1		—
Net investment hedges	Other current liabilities		0.4		—

	Total current liabilities	$	3.7	$	0.3

The effects of derivative financial instruments on the statements of comprehensive income for the six and three months ended June 30, 2014 and 2013 were:


(In millions)		Gain Recognized in Income
		Six Months Ended June 30,
Type of hedge	Location	2014		2013
Cash flow	Cost of products sold	$	0.6	$	1.4
Fair value	Other expense, net		0.8		—

Total		$	1.4	$	1.4


(In millions)		(Loss) Gain Recognized in Income
		Three Months Ended June 30,
Type of hedge	Location	2014			2013
Cash flow	Cost of products sold	$	(0.1	)	$	1.0
Fair value	Other expense, net		(0.1	)		0.2

Total		$	(0.2	)	$	1.2

The effective portion of cash flow hedges recognized in other comprehensive income were net (losses) gains of $(2.9) million and $2.3 million in the six months ended June 30, 2014 and 2013, respectively. The effective portion of cash flow hedges recognized in other comprehensive income were net (losses) gains of $(2.5) million and $0.7 million in the three months ended June 30, 2014 and 2013, respectively. In the six and three months ended June 30, 2014 and 2013, the ineffective portion of cash flow hedges recognized in other expense, net, was insignificant.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Measurements

8. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 were as follows:


(In millions)	Fair Value
	June 30, 2014		December 31, 2013
Assets
Derivative financial instruments (level 2)	$	0.6	$	2.7
Deferred compensation program assets (level 1)		3.2		3.5

Total assets	$	3.8	$	6.2
Liabilities
Derivative financial instruments (level 2)	$	3.7	$	0.3

The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value.

ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect inputs other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs, due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3.

The carrying value of the Company’s long-term debt as of June 30, 2014 and December 31, 2013 of $595.0 million and $350.0 million, respectively, approximated fair value. The fair value of the Company’s long-term debt was determined primarily by using broker quotes, which are Level 2 inputs.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Information on Business Segments

Defined Benefit Plans

6 Months Ended

Jun. 30, 2014

Defined Benefit Plans

9. Defined Benefit Plans

The components of net periodic benefit cost (income) for pension and postretirement benefits for the six and three months ended June 30, 2014 and 2013 were as follows:


(In millions)	Six Months Ended June 30,
	Pension Benefits						Postretirement Benefits
	2014			2013			2014			2013
Service cost	$	5.4		$	6.3		$	—		$	0.2
Interest cost		16.2			15.0			0.4			1.0
Expected return on plan assets		(21.1	)		(20.8	)		—			—
Recognition of prior service credits		0.1			0.1			(17.7	)		(15.8	)
Recognition of actuarial losses		—			0.1			0.6			5.3

Net periodic benefit cost (income)	$	0.6		$	0.7		$	(16.7	)	$	(9.3	)


(In millions)	Three Months Ended June 30,
	Pension Benefits						Postretirement Benefits
	2014			2013			2014			2013
Service cost	$	2.7		$	3.1		$	—		$	0.1
Interest cost		8.0			7.5			0.2			0.4
Expected return on plan assets		(10.5	)		(10.5	)		—			—
Recognition of prior service credits		0.1			0.1			(7.1	)		(8.8	)
Recognition of actuarial losses		—			0.1			—			0.7

Net periodic benefit cost (income)	$	0.3		$	0.3		$	(6.9	)	$	(7.6	)

In the first quarter of 2014, we communicated our decision to amend certain postretirement benefits to reduce health benefits for certain current and retired employees. The impact of these changes was a reduction in accrued retiree benefit plan liabilities of $14.7 million and we recorded actuarial losses of $0.6 million and prior service credits of $3.7 million. In the first quarter of 2013, we communicated our decision to amend certain postretirement benefit plans to reduce health benefits for certain current and retired employees and as a result we recognized actuarial losses of $4.6 million in the first quarter of 2013. Liability reductions from these plan amendments are recorded as amortization of prior service cost in net income in accordance with accounting requirements. See Note 16, “Accumulated Other Comprehensive Income,” for information on the impact on accumulated other comprehensive income.

Income Taxes

6 Months Ended

Jun. 30, 2014

Income Taxes

10. Income Taxes

The effective income tax rates for the six months ended June 30, 2014 and 2013 were 30.7% and 33.9%, respectively. The effective income tax rate for 2014 was favorably impacted by the release of valuation allowances related to state net operating loss carryforwards and by the tax benefit associated with the anticipated year-over-year increase of the Domestic Production Activity (Internal Revenue Code Section 199) deduction. The effective income tax rate in 2013 was unfavorably impacted by an increase in the valuation allowance related to an investment impairment charge for which we could not record an income tax benefit and favorably impacted by the tax benefits associated with the extension of the U.S. research and development credit under The American Taxpayer Relief Act of 2012.

The effective income tax rates for the three months ended June 30, 2014 and 2013 were 30.0% and 35.0%, respectively. The effective income tax rate for 2014 was favorably impacted by the release of valuation allowances related to state net operating loss carryforwards and by the tax benefit associated with the anticipated year-over-year increase of the Domestic Production Activity (Internal Revenue Code Section 199) deduction. The effective income tax rate in 2013 was unfavorably impacted by an increase in the valuation allowance related to an investment impairment charge for which we could not record an income tax benefit.

It is reasonably possible that, within the next 12 months, total unrecognized tax benefits may decrease in the range of $2 million to $6 million, primarily as a result of the conclusion of pending U.S. federal, state and foreign income tax proceedings.

Product Warranties

6 Months Ended

Jun. 30, 2014

Product Warranties

11. Product Warranties

We generally record warranty expense at the time of sale. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the six months ended June 30, 2014 and 2013, respectively.


(In millions)	Six Months Ended June 30,
	2014			2013
Reserve balance at January 1,	$	15.2		$	14.3
Provision for warranties issued		12.1			9.2
Settlements made (in cash or in kind)		(11.5	)		(9.2	)

Reserve balance at June 30,	$	15.8		$	14.3

Information on Business Segments

6 Months Ended

Jun. 30, 2014

12. Information on Business Segments

Net sales and operating income for the six months ended June 30, 2014 and 2013 by segment were as follows:


(In millions)	Six Months Ended June 30,
	2014			2013			% Change vs. Prior Year
Net Sales
Kitchen & Bath Cabinetry	$	878.8		$	737.7			19.1	%
Plumbing & Accessories		650.0			631.5			2.9
Advanced Material Windows & Door Systems		322.9			300.7			7.4
Security & Storage		256.7			260.5			(1.5	)

Net sales	$	2,108.4		$	1,930.4			9.2	%
Operating Income
Kitchen & Bath Cabinetry	$	66.0		$	49.7			32.8	%
Plumbing & Accessories		126.8			110.3			15.0
Advanced Material Windows & Door Systems		7.4			1.3			469.2
Security & Storage		29.6			38.6			(23.3	)
Less: Corporate expenses		(31.1	)		(36.8	)		15.5

Operating income	$	198.7		$	163.1			21.8	%
Corporate expenses
General and administrative expense	$	(35.1	)	$	(36.3	)
Defined benefit plan costs		4.0			(0.5	)

Total Corporate expenses	$	(31.1	)	$	(36.8	)		15.5	%

Net sales and operating income for the three months ended June 30, 2014 and 2013 by segment were as follows:


	Three Months Ended June 30,
(In millions)	2014			2013			% Change vs. Prior Year
Net Sales
Kitchen & Bath Cabinetry	$	467.9		$	392.4			19.2	%
Plumbing & Accessories		340.1			322.6			5.4
Advanced Material Windows & Door Systems		192.9			176.5			9.3
Security & Storage		141.3			148.9			(5.1	)

Net sales	$	1,142.2		$	1,040.4			9.8	%
Operating Income
Kitchen & Bath Cabinetry	$	46.1		$	35.4			30.2	%
Plumbing & Accessories		71.5			55.3			29.3
Advanced Material Windows & Door Systems		15.1			9.8			54.1
Security & Storage		19.8			26.3			(24.7	)
Less: Corporate expenses		(15.9	)		(20.3	)		21.7

Operating income	$	136.6		$	106.5			28.3	%
Corporate expenses
General and administrative expense	$	(18.2	)	$	(22.0	)
Defined benefit plan costs		2.3			1.7

Total Corporate expenses	$	(15.9	)	$	(20.3	)		21.7	%

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Restructuring and Other Charges

Other Expense, Net

6 Months Ended

Jun. 30, 2014

Other Expense, Net

13. Other Expense, Net

The components of other expense, net, were as follows:


(In millions)	Six Months Ended June 30,					Three Months Ended June 30,
	2014		2013			2014		2013
Asset impairment charge	$	—	$	6.2		$	—	$	6.2
Other		0.3		(0.3	)		0.8		(0.1	)

Total other expense, net	$	0.3	$	5.9		$	0.8	$	6.1

In the second quarter of 2013, we recorded a $6.2 million impairment charge pertaining to a cost method investment due to an other-than-temporary decline in the fair value of the investment. As a result of the impairment, the carrying value of the investment has been reduced to zero and the Company is not subject to further impairment or funding obligations with regard to this investment.

Restructuring and Other Charges

6 Months Ended

Jun. 30, 2014

14. Restructuring and Other Charges

Pre-tax restructuring and other charges for the six and three months ended June 30, 2014 and 2013 are shown below.


(In millions)	Six Months Ended June 30, 2014
	Restructuring Charges			Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.3		$	—		$	0.3
Plumbing & Accessories		(0.9	)		(0.6	)		(1.5	)
Security & Storage		2.1			0.1			2.2
Corporate		1.6			—			1.6

Total	$	3.1		$	(0.5	)	$	2.6


(In millions)	Six Months Ended June 30, 2013
	Restructuring Charges		Other Charges ^(a)		Total Charges
Kitchen & Bath Cabinetry	$	0.5	$	—	$	0.5
Advanced Material Windows & Door Systems		0.7		—		0.7

Total	$	1.2	$	—	$	1.2


(In millions)	Three Months Ended June 30, 2014
	Restructuring Charges			Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.2		$	—		$	0.2
Plumbing & Accessories		(1.0	)		(0.6	)		(1.6	)
Corporate		1.6			—			1.6

Total	$	0.8		$	(0.6	)	$	0.2


(In millions)	Three Months Ended June 30, 2013
	Restructuring Charges		Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.2	$	(0.3	)	$	(0.1	)
Advanced Material Windows & Door Systems		0.1		—			0.1

Total	$	0.3	$	(0.3	)	$	—

^(a)

“Other Charges,” which were recorded in cost of products sold, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under U.S. GAAP. Such costs may include losses on disposal of inventories, trade receivables, allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities.

Restructuring and other charges in the first six months of 2014 resulted from product line rationalization in the storage product line within our Security & Storage segment and severance charges in Corporate, partially offset by a benefit from release of a foreign currency gain associated with the dissolution of a foreign entity in the Plumbing & Accessories segment. The Company’s restructuring liability was not material as of June 30, 2014 and December 31, 2013.

Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share

15. Earnings Per Share

The computations of earnings per common share were as follows:


(In millions, except per share data)	Six Months Ended June 30,				Three Months Ended June 30,
	2014		2013		2014		2013
Net income attributable to Home & Security	$	134.1	$	101.3	$	93.3	$	64.0

Basic earnings per common share	$	0.81	$	0.61	$	0.57	$	0.39
Diluted earnings per common share	$	0.79	$	0.59	$	0.55	$	0.37

Basic average shares outstanding		165.2		164.9		164.2		165.4
Stock-based awards		4.8		5.9		4.5		5.9

Diluted average shares outstanding		170.0		170.8		168.7		171.3

Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.4		1.2		0.6		0.9

Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Income

16. Accumulated Other Comprehensive Income

Total accumulated other comprehensive income consists of net income and other changes in business equity from transactions and other events from sources other than shareholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The components of and changes in accumulated other comprehensive income, net of tax, were as follows:


(In millions)	Foreign Currency Adjustments			Derivative Hedging Gains			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2013	$	53.3		$	0.9		$	41.2		$	95.4
Amounts classified into accumulated other comprehensive income		(3.4	)		(2.2	)		9.1	^(a)		3.5
Amounts reclassified from accumulated other comprehensive income		—			(0.5	)		(10.6	)		(11.1	)

Net current-period other comprehensive income		(3.4	)		(2.7	)		(1.5	)		(7.6	)

Balance at June 30, 2014	$	49.9		$	(1.8	)	$	39.7		$	87.8

^(a)

See Note 9, “Defined Benefit Plans,” for further information on the adjustments related to defined benefit plans.

The reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2014 and 2013 were as follows:


(In millions)
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income Six Months Ended June 30,						Affected Line Item in the Statement of Comprehensive Income
	2014			2013
Gains on cash flow hedges
Foreign exchange contracts	$	0.6		$	1.5		Cost of products sold
Commodity contracts		—			(0.1	)	Cost of products sold

		0.6			1.4		Total before tax
		(0.1	)		(0.4	)	Tax expense

	$	0.5		$	1.0		Net of tax
Defined benefit plan items
Recognition of prior service cost	$	17.6		$	15.7		(a)
Recognition of actuarial losses		(0.6	)		(5.4	)	(a)

		17.0			10.3		Total before tax
		(6.4	)		(4.0	)	Tax expense

	$	10.6		$	6.3		Net of tax

Total reclassifications for the period	$	11.1		$	7.3		Net of tax


(In millions)
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended June 30,						Affected Line Item in the Statement of Comprehensive Income
	2014			2013
(Loss) gain on cash flow hedges
Foreign exchange contracts	$	(0.1	)	$	1.1		Cost of products sold
Commodity contracts		—			(0.1	)	Cost of products sold

		(0.1	)		1.0		Total before tax
		—			(0.3	)	Tax expense

	$	(0.1	)	$	0.7		Net of tax
Defined benefit plan items
Recognition of prior service cost	$	7.0		$	8.7		(a)
Recognition of actuarial losses		—			(0.8	)	(a)

		7.0			7.9		Total before tax
		(2.6	)		(2.9	)	Tax expense

	$	4.4		$	5.0		Net of tax

Total reclassifications for the period	$	4.3		$	5.7		Net of tax

^(a)

These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 9, “Defined Benefit Plans,” for additional information.

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Contingencies

6 Months Ended

Jun. 30, 2014

Contingencies

17. Contingencies

Litigation

We are defendants in lawsuits associated with the normal conduct of our 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 effect upon our results of operations, cash flows or financial condition, and where appropriate, these actions are being vigorously contested.

Environmental

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 Home & Security during the six months ended June 30, 2014 and 2013. We are involved in remediation activities to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs of each site are based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties. Uncertainties about the status of laws, regulations, technology and information related to individual sites make it difficult to develop estimates of environmental remediation exposures.

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14394-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14557-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14453-108349

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14615-108349

Supplemental Information on Balance Sheets

Subsequent Event

6 Months Ended

Jun. 30, 2014

Subsequent Event

18. Subsequent Event

On July 29, 2014, the Company acquired Sentry Safe, a leading manufacturer of personal safes with estimated annual sales of $150 million, for a purchase price of $117.5 million in cash, subject to certain post-closing adjustments. The purchase price was funded from existing credit facilities. This acquisition broadens our product offering within our Master Lock business. An allocation of the purchase price will be completed after asset and liability valuations are finalized. Final adjustments will reflect the fair value assigned to the assets, including intangible assets, and assumed liabilities.

Balance Sheet Information (Tables)

6 Months Ended

Jun. 30, 2014

Supplemental information on our balance sheets is as follows:


(In millions)	June 30, 2014		December 31, 2013
Inventories:
Raw materials and supplies	$	204.0	$	184.6
Work in process		54.9		52.5
Finished products		262.3		234.5

Total inventories	$	521.2	$	471.6

Property, plant and equipment, gross	$	1,566.1	$	1,556.1
Less: accumulated depreciation		1,025.9		1,021.7

Property, plant and equipment, net	$	540.2	$	534.4

Acquisition (Tables)

6 Months Ended

Jun. 30, 2014

Final Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the final allocation of the purchase price to fair values of assets acquired and liabilities assumed as of the date of the acquisition.


(In millions)
Accounts receivable	$	41.4
Inventories		25.7
Property, plant and equipment		29.6
Goodwill		143.4
Identifiable intangible assets		89.4
Other assets		7.3

Total assets		336.8
Other liabilities and accruals		34.8

Net assets acquired	$	302.0

Goodwill and Identifiable Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Change in Net Carrying Amount of Goodwill by Segment

The change in the net carrying amount of goodwill by segment was as follows:


(In millions)	Kitchen & Bath Cabinetry		Plumbing & Accessories		Advanced Material Windows & Door Systems		Security & Storage			Total Goodwill
Goodwill at December 31, 2013 ^(a)	$	631.7	$	569.7	$	229.1	$	89.4		$	1,519.9
Year-to-date translation adjustments		0.1		—		—		(0.1	)		—
Acquisition-related adjustments		0.7		—		—		—			0.7

Goodwill at June 30, 2014 ^(a)	$	632.5	$	569.7	$	229.1	$	89.3		$	1,520.6

^(a)

Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).

Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets

The gross carrying value and accumulated amortization by class of intangible assets as of June 30, 2014 and December 31, 2013 were as follows:


(In millions)	As of June 30, 2014							As of December 31, 2013
	Gross					Net		Gross					Net
	Carrying		Accumulated			Book		Carrying		Accumulated			Book
	Amounts		Amortization			Value		Amounts		Amortization			Value
Indefinite-lived tradenames	$	596.6	$	(42.0	)^(a)	$	554.6	$	597.2	$	(42.0	)^(a)	$	555.2
Amortizable intangible assets
Tradenames		19.6		(7.9	)		11.7		19.6		(7.4	)		12.2
Customer and contractual relationships		348.3		(188.7	)		159.6		348.6		(182.5	)		166.1
Patents/proprietary technology		63.5		(45.2	)		18.3		63.2		(43.8	)		19.4

Total		431.4		(241.8	)		189.6		431.4		(233.7	)		197.7

Total identifiable intangibles	$	1,028.0	$	(283.8	)	$	744.2	$	1,028.6	$	(275.7	)	$	752.9

^(a)

Accumulated amortization prior to the adoption of revised Accounting Standards Codification (“ASC”) requirements for Intangibles – Goodwill and Other Assets.

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Values of Derivative Instruments

The fair values of derivative instruments on the consolidated balance sheets as of June 30, 2014 and December 31, 2013 were:


(In millions)		Fair Value
	Location	June 30, 2014		December 31, 2013
Assets
Foreign exchange contracts	Other current assets	$	0.6	$	2.1
Net investment hedges	Other current assets		—		0.6

	Total assets	$	0.6	$	2.7
Liabilities
Foreign exchange contracts	Other current liabilities	$	3.2	$	0.3
Commodity contracts	Other current liabilities		0.1		—
Net investment hedges	Other current liabilities		0.4		—

	Total current liabilities	$	3.7	$	0.3

Effects of Derivative Financial Instruments on Statements of Comprehensive Income

The effects of derivative financial instruments on the statements of comprehensive income for the six and three months ended June 30, 2014 and 2013 were:


(In millions)		Gain Recognized in Income
		Six Months Ended June 30,
Type of hedge	Location	2014		2013
Cash flow	Cost of products sold	$	0.6	$	1.4
Fair value	Other expense, net		0.8		—

Total		$	1.4	$	1.4


(In millions)		(Loss) Gain Recognized in Income
		Three Months Ended June 30,
Type of hedge	Location	2014			2013
Cash flow	Cost of products sold	$	(0.1	)	$	1.0
Fair value	Other expense, net		(0.1	)		0.2

Total		$	(0.2	)	$	1.2

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 were as follows:


(In millions)	Fair Value
	June 30, 2014		December 31, 2013
Assets
Derivative financial instruments (level 2)	$	0.6	$	2.7
Deferred compensation program assets (level 1)		3.2		3.5

Total assets	$	3.8	$	6.2
Liabilities
Derivative financial instruments (level 2)	$	3.7	$	0.3

Defined Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2014

Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits

The components of net periodic benefit cost (income) for pension and postretirement benefits for the six and three months ended June 30, 2014 and 2013 were as follows:


(In millions)	Six Months Ended June 30,
	Pension Benefits						Postretirement Benefits
	2014			2013			2014			2013
Service cost	$	5.4		$	6.3		$	—		$	0.2
Interest cost		16.2			15.0			0.4			1.0
Expected return on plan assets		(21.1	)		(20.8	)		—			—
Recognition of prior service credits		0.1			0.1			(17.7	)		(15.8	)
Recognition of actuarial losses		—			0.1			0.6			5.3

Net periodic benefit cost (income)	$	0.6		$	0.7		$	(16.7	)	$	(9.3	)


(In millions)	Three Months Ended June 30,
	Pension Benefits						Postretirement Benefits
	2014			2013			2014			2013
Service cost	$	2.7		$	3.1		$	—		$	0.1
Interest cost		8.0			7.5			0.2			0.4
Expected return on plan assets		(10.5	)		(10.5	)		—			—
Recognition of prior service credits		0.1			0.1			(7.1	)		(8.8	)
Recognition of actuarial losses		—			0.1			—			0.7

Net periodic benefit cost (income)	$	0.3		$	0.3		$	(6.9	)	$	(7.6	)

Product Warranties (Tables)

6 Months Ended

Jun. 30, 2014

The following table summarizes activity related to our product warranty liability for the six months ended June 30, 2014 and 2013, respectively.


(In millions)	Six Months Ended June 30,
	2014			2013
Reserve balance at January 1,	$	15.2		$	14.3
Provision for warranties issued		12.1			9.2
Settlements made (in cash or in kind)		(11.5	)		(9.2	)

Reserve balance at June 30,	$	15.8		$	14.3

Information on Business Segments (Tables)

6 Months Ended

Jun. 30, 2014

Net Sales and Operating Income by Segment

Net sales and operating income for the six months ended June 30, 2014 and 2013 by segment were as follows:


(In millions)	Six Months Ended June 30,
	2014			2013			% Change vs. Prior Year
Net Sales
Kitchen & Bath Cabinetry	$	878.8		$	737.7			19.1	%
Plumbing & Accessories		650.0			631.5			2.9
Advanced Material Windows & Door Systems		322.9			300.7			7.4
Security & Storage		256.7			260.5			(1.5	)

Net sales	$	2,108.4		$	1,930.4			9.2	%
Operating Income
Kitchen & Bath Cabinetry	$	66.0		$	49.7			32.8	%
Plumbing & Accessories		126.8			110.3			15.0
Advanced Material Windows & Door Systems		7.4			1.3			469.2
Security & Storage		29.6			38.6			(23.3	)
Less: Corporate expenses		(31.1	)		(36.8	)		15.5

Operating income	$	198.7		$	163.1			21.8	%
Corporate expenses
General and administrative expense	$	(35.1	)	$	(36.3	)
Defined benefit plan costs		4.0			(0.5	)

Total Corporate expenses	$	(31.1	)	$	(36.8	)		15.5	%

Net sales and operating income for the three months ended June 30, 2014 and 2013 by segment were as follows:


	Three Months Ended June 30,
(In millions)	2014			2013			% Change vs. Prior Year
Net Sales
Kitchen & Bath Cabinetry	$	467.9		$	392.4			19.2	%
Plumbing & Accessories		340.1			322.6			5.4
Advanced Material Windows & Door Systems		192.9			176.5			9.3
Security & Storage		141.3			148.9			(5.1	)

Net sales	$	1,142.2		$	1,040.4			9.8	%
Operating Income
Kitchen & Bath Cabinetry	$	46.1		$	35.4			30.2	%
Plumbing & Accessories		71.5			55.3			29.3
Advanced Material Windows & Door Systems		15.1			9.8			54.1
Security & Storage		19.8			26.3			(24.7	)
Less: Corporate expenses		(15.9	)		(20.3	)		21.7

Operating income	$	136.6		$	106.5			28.3	%
Corporate expenses
General and administrative expense	$	(18.2	)	$	(22.0	)
Defined benefit plan costs		2.3			1.7

Total Corporate expenses	$	(15.9	)	$	(20.3	)		21.7	%

Other Expense, Net (Tables)

6 Months Ended

Jun. 30, 2014

Components of Other Expense, Net

The components of other expense, net, were as follows:


(In millions)	Six Months Ended June 30,					Three Months Ended June 30,
	2014		2013			2014		2013
Asset impairment charge	$	—	$	6.2		$	—	$	6.2
Other		0.3		(0.3	)		0.8		(0.1	)

Total other expense, net	$	0.3	$	5.9		$	0.8	$	6.1

Restructuring and Other Charges (Tables)

6 Months Ended

Jun. 30, 2014

Pre-tax Restructuring and Other Charges

Pre-tax restructuring and other charges for the six and three months ended June 30, 2014 and 2013 are shown below.


(In millions)	Six Months Ended June 30, 2014
	Restructuring Charges			Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.3		$	—		$	0.3
Plumbing & Accessories		(0.9	)		(0.6	)		(1.5	)
Security & Storage		2.1			0.1			2.2
Corporate		1.6			—			1.6

Total	$	3.1		$	(0.5	)	$	2.6


(In millions)	Six Months Ended June 30, 2013
	Restructuring Charges		Other Charges ^(a)		Total Charges
Kitchen & Bath Cabinetry	$	0.5	$	—	$	0.5
Advanced Material Windows & Door Systems		0.7		—		0.7

Total	$	1.2	$	—	$	1.2


(In millions)	Three Months Ended June 30, 2014
	Restructuring Charges			Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.2		$	—		$	0.2
Plumbing & Accessories		(1.0	)		(0.6	)		(1.6	)
Corporate		1.6			—			1.6

Total	$	0.8		$	(0.6	)	$	0.2


(In millions)	Three Months Ended June 30, 2013
	Restructuring Charges		Other Charges ^(a)			Total Charges
Kitchen & Bath Cabinetry	$	0.2	$	(0.3	)	$	(0.1	)
Advanced Material Windows & Door Systems		0.1		—			0.1

Total	$	0.3	$	(0.3	)	$	—

^(a)

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2014

Computations of Earnings per Common Share

The computations of earnings per common share were as follows:


(In millions, except per share data)	Six Months Ended June 30,				Three Months Ended June 30,
	2014		2013		2014		2013
Net income attributable to Home & Security	$	134.1	$	101.3	$	93.3	$	64.0

Basic earnings per common share	$	0.81	$	0.61	$	0.57	$	0.39
Diluted earnings per common share	$	0.79	$	0.59	$	0.55	$	0.37

Basic average shares outstanding		165.2		164.9		164.2		165.4
Stock-based awards		4.8		5.9		4.5		5.9

Diluted average shares outstanding		170.0		170.8		168.7		171.3

Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.4		1.2		0.6		0.9

Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2014

Components of and Changes in Accumulated Other Comprehensive Income

The components of and changes in accumulated other comprehensive income, net of tax, were as follows:


(In millions)	Foreign Currency Adjustments			Derivative Hedging Gains			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2013	$	53.3		$	0.9		$	41.2		$	95.4
Amounts classified into accumulated other comprehensive income		(3.4	)		(2.2	)		9.1	^(a)		3.5
Amounts reclassified from accumulated other comprehensive income		—			(0.5	)		(10.6	)		(11.1	)

Net current-period other comprehensive income		(3.4	)		(2.7	)		(1.5	)		(7.6	)

Balance at June 30, 2014	$	49.9		$	(1.8	)	$	39.7		$	87.8

^(a)

See Note 9, “Defined Benefit Plans,” for further information on the adjustments related to defined benefit plans.

Reclassifications Out of Accumulated Other Comprehensive Income

The reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2014 and 2013 were as follows:


(In millions)
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income Six Months Ended June 30,						Affected Line Item in the Statement of Comprehensive Income
	2014			2013
Gains on cash flow hedges
Foreign exchange contracts	$	0.6		$	1.5		Cost of products sold
Commodity contracts		—			(0.1	)	Cost of products sold

		0.6			1.4		Total before tax
		(0.1	)		(0.4	)	Tax expense

	$	0.5		$	1.0		Net of tax
Defined benefit plan items
Recognition of prior service cost	$	17.6		$	15.7		(a)
Recognition of actuarial losses		(0.6	)		(5.4	)	(a)

		17.0			10.3		Total before tax
		(6.4	)		(4.0	)	Tax expense

	$	10.6		$	6.3		Net of tax

Total reclassifications for the period	$	11.1		$	7.3		Net of tax


(In millions)
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended June 30,						Affected Line Item in the Statement of Comprehensive Income
	2014			2013
(Loss) gain on cash flow hedges
Foreign exchange contracts	$	(0.1	)	$	1.1		Cost of products sold
Commodity contracts		—			(0.1	)	Cost of products sold

		(0.1	)		1.0		Total before tax
		—			(0.3	)	Tax expense

	$	(0.1	)	$	0.7		Net of tax
Defined benefit plan items
Recognition of prior service cost	$	7.0		$	8.7		(a)
Recognition of actuarial losses		—			(0.8	)	(a)

		7.0			7.9		Total before tax
		(2.6	)		(2.9	)	Tax expense

	$	4.4		$	5.0		Net of tax

Total reclassifications for the period	$	4.3		$	5.7		Net of tax

^(a)

These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 9, “Defined Benefit Plans,” for additional information.

Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions	Jun. 30, 2014	Dec. 31, 2013
Inventories:
Raw materials and supplies	$ 204.0	$ 184.6
Work in process	54.9	52.5
Finished products	262.3	234.5
Total inventories	521.2	471.6
Property, plant and equipment, gross	1,566.1	1,556.1
Less: accumulated depreciation	1,025.9	1,021.7
Property, plant and equipment, net	$ 540.2	$ 534.4

Acquisition - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Business Acquisition [Line Items]
Net sales		$ 1,142.2	$ 1,040.4	$ 2,108.4	$ 1,930.4
Operating income (Loss)		136.6	$ 106.5	198.7	$ 163.1
WoodCrafters Home Products, LLC
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%		100.00%		100.00%
Business acquisition purchase price	$ 302.0
Net sales		50.0		100.0
Operating income (Loss)		$ 7.0		$ 12.0
WoodCrafters Home Products, LLC \| Customer Relationships
Business Acquisition [Line Items]
Identifiable intangible assets	$ 75.9		$ 75.9		$ 75.9
Amortizable identifiable intangible assets, estimated useful life	18 years
WoodCrafters Home Products, LLC \| Technology
Business Acquisition [Line Items]
Identifiable intangible assets	$ 9.6		$ 9.6		$ 9.6
Amortizable identifiable intangible assets, estimated useful life	10 years

Final Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Millions

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2013

Business Acquisition [Line Items]

WoodCrafters Home Products, LLC

^[1]

$ 1,520.6

$ 1,519.9

Business Acquisition [Line Items]

Accounts receivable

$ 41.4

Inventories

25.7

Property, plant and equipment

29.6

Identifiable intangible assets

143.4

89.4

Other assets

7.3

Total assets

336.8

Other liabilities and accruals

34.8

Net assets acquired

$ 302.0

[1]	Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).

Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Market recovery projection period

^[1]

$ 1,520.6

$ 1,519.9

3 years

Tradenames

Indefinite-lived tradenames

$ 58.4

Advanced Material Windows and Door Systems

Advanced Material Windows and Door Systems | Reporting Unit One

^[1]

229.1

$ 229.1

Minimum | Tradenames And Customer Relationship

$ 86.1

Amortizable identifiable intangible assets, estimated useful life

5 years

Maximum | Tradenames And Customer Relationship

Amortizable identifiable intangible assets, estimated useful life

30 years

Maximum | Advanced Material Windows and Door Systems

Percentage of estimated excess fair value

10.00%

Maximum | Advanced Material Windows and Door Systems | Tradenames

Percentage of estimated excess fair value

10.00%

[1]	Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).

Change in Net Carrying Amount of Goodwill by Segment (Detail)
$ in Millions

6 Months Ended

Jun. 30, 2014

USD ($)

Acquisition-related adjustments

$ 1,519.9

^[1]

0.7

Kitchen and Bath Cabinetry

1,520.6

^[1]

Year-to-date translation adjustments

631.7

^[1]

0.1

Acquisition-related adjustments

0.7

632.5

^[1]

Plumbing and Accessories

569.7

^[1]

Advanced Material Windows and Door Systems

569.7

^[1]

229.1

^[1]

229.1

^[1]

Security and Storage

Year-to-date translation adjustments

89.4

^[1]

(0.1)

$ 89.3

^[1]

[1]	Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).

Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions	Jun. 30, 2014 USD ($)
Goodwill [Line Items]
Accumulated impairment losses	$ 541.4
Advanced Material Windows and Door Systems
Goodwill [Line Items]
Accumulated impairment losses	451.3
Security and Storage
Goodwill [Line Items]
Accumulated impairment losses	$ 90.1

Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets (Detail) - USD ($)
$ in Millions

Jun. 30, 2014

Dec. 31, 2013

Gross Carrying Amounts, Total identifiable intangibles

$ 1,028.0

$ 1,028.6

Accumulated Amortization, Total identifiable intangibles

(283.8)

(275.7)

Net Book Value, Total identifiable intangibles

744.2

752.9

Gross Carrying Amounts, Indefinite-lived tradenames

596.6

597.2

Accumulated Amortization, Indefinite-lived tradenames

^[1]

(42.0)

Net Book Value, Indefinite-lived tradenames

554.6

555.2

431.4

(241.8)

(233.7)

189.6

197.7

Tradenames

19.6

(7.9)

(7.4)

Customer and contractual relationships

11.7

12.2

348.3

348.6

(188.7)

(182.5)

Patents/proprietary technology

159.6

166.1

63.5

63.2

(45.2)

(43.8)

$ 18.3

$ 19.4

[1]	Accumulated amortization prior to the adoption of revised Accounting Standards Codification ("ASC") requirements for Intangibles - Goodwill and Other Assets.

External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 650.0		$ 650.0
Term loan	350.0		$ 350.0
Revolving credit facility, extended expiration date			2018-07
Term loan, extended expiration date			2018-07
Term loan, outstanding borrowings	595.0		$ 595.0		$ 350.0
Notes payable to banks	10.1		10.1		6.0
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital	$ 22.7		$ 22.7		$ 22.7
Weighted-average interest rates on borrowings	5.30%	12.60%	7.20%	12.40%
LIBOR \| Minimum
Debt Instrument [Line Items]
Interest rate over LIBOR			1.00%
LIBOR \| Maximum
Debt Instrument [Line Items]
Interest rate over LIBOR			2.00%

Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Derivative [Line Items]
Net settlement liability			$ 3.0
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings	$ 2.4		2.4
Foreign exchange contracts
Derivative [Line Items]
Notional amount of foreign currency derivative hedges	259.3		259.3
Cash flow
Derivative [Line Items]
Net (Losses) Gains Recognized in OCI	$ (2.5)	$ 0.7	$ (2.9)	$ 2.3

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 0.6	$ 2.7
Derivative liabilities, fair value	3.7	0.3
Net investment \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value		0.6
Net investment \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	0.4
Foreign exchange contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	0.6	2.1
Foreign exchange contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	3.2	$ 0.3
Commodity contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	$ 0.1

Effects of Derivative Financial Instruments on Statements of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in Income	$ (0.2)	$ 1.2	$ 1.4	$ 1.4
Cash flow \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in Income	(0.1)	1.0	0.6	$ 1.4
Fair value \| Other expense, net
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in Income	$ (0.1)	$ 0.2	$ 0.8

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 3.8	$ 6.2
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments (level 2)	0.6	2.7
Derivative financial instruments (level 2)	3.7	0.3
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation program assets	$ 3.2	$ 3.5

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2014	Dec. 31, 2013
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net of current portion	$ 595.0	$ 350.0
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net of current portion	$ 595.0	$ 350.0

Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial losses					$ 0.6	$ 5.4
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2.7		$ 3.1		5.4	6.3
Interest cost	8.0		7.5		16.2	15.0
Expected return on plan assets	(10.5)		(10.5)		(21.1)	(20.8)
Recognition of prior service credits	0.1		0.1		0.1	0.1
Recognition of actuarial losses			0.1			0.1
Net periodic benefit cost (income)	0.3		0.3		0.6	0.7
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost			0.1			0.2
Interest cost	0.2		0.4		0.4	1.0
Recognition of prior service credits	(7.1)	$ (3.7)	(8.8)		(17.7)	(15.8)
Recognition of actuarial losses		$ 0.6	0.7	$ 4.6	0.6	5.3
Net periodic benefit cost (income)	$ (6.9)		$ (7.6)		$ (16.7)	$ (9.3)

Defined Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains					$ (0.6)	$ (5.4)
Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans		$ (14.7)
Recognition of actuarial (losses) gains		(0.6)	$ (0.7)	$ (4.6)	(0.6)	(5.3)
Recognition of prior service credits	$ (7.1)	$ (3.7)	$ (8.8)		$ (17.7)	$ (15.8)

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Taxes [Line Items]
Effective income tax rate	30.00%	35.00%	30.70%	33.90%
Reasonably possible decrease in unrecognized tax benefits, minimum	$ 2		$ 2
Reasonably possible decrease in unrecognized tax benefits, maximum	$ 6		$ 6

Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Product Warranty Liability [Line Items]
Reserve balance at January 1,	$ 15.2	$ 14.3
Provision for warranties issued	12.1	9.2
Settlements made (in cash or in kind)	(11.5)	(9.2)
Reserve balance at June 30,	$ 15.8	$ 14.3

Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 1,142.2	$ 1,040.4	$ 2,108.4	$ 1,930.4
Operating income (Loss)	$ 136.6	106.5	$ 198.7	163.1
Net Sales, Percentage Change vs. Prior Year	9.80%		9.20%
Operating Income (Loss), Percentage Change vs. Prior Year	28.30%		21.80%
Operating Segments \| Kitchen and Bath Cabinetry
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 467.9	392.4	$ 878.8	737.7
Operating income (Loss)	$ 46.1	35.4	$ 66.0	49.7
Net Sales, Percentage Change vs. Prior Year	19.20%		19.10%
Operating Income (Loss), Percentage Change vs. Prior Year	30.20%		32.80%
Operating Segments \| Plumbing and Accessories
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 340.1	322.6	$ 650.0	631.5
Operating income (Loss)	$ 71.5	55.3	$ 126.8	110.3
Net Sales, Percentage Change vs. Prior Year	5.40%		2.90%
Operating Income (Loss), Percentage Change vs. Prior Year	29.30%		15.00%
Operating Segments \| Advanced Material Windows and Door Systems
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 192.9	176.5	$ 322.9	300.7
Operating income (Loss)	$ 15.1	9.8	$ 7.4	1.3
Net Sales, Percentage Change vs. Prior Year	9.30%		7.40%
Operating Income (Loss), Percentage Change vs. Prior Year	54.10%		469.20%
Operating Segments \| Security and Storage
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 141.3	148.9	$ 256.7	260.5
Operating income (Loss)	$ 19.8	26.3	$ 29.6	38.6
Net Sales, Percentage Change vs. Prior Year	(5.10%)		(1.50%)
Operating Income (Loss), Percentage Change vs. Prior Year	(24.70%)		(23.30%)
Corporate
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (Loss)	$ (15.9)	(20.3)	$ (31.1)	(36.8)
Corporate expenses	$ (15.9)	(20.3)	$ (31.1)	(36.8)
Operating Income (Loss), Percentage Change vs. Prior Year	21.70%		15.50%
Corporate expenses, Percentage Change vs. Prior Year	21.70%		15.50%
Corporate \| General and administrative expense
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Corporate expenses	$ (18.2)	(22.0)	$ (35.1)	(36.3)
Corporate \| Defined benefit plan costs
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Corporate expenses	$ 2.3	$ 1.7	$ 4.0	$ (0.5)

Components of Other Expense, Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Component Of Other Expense Income Nonoperating [Line Items]
Asset impairment charge		$ 6.2		$ 6.2
Other	$ 0.8	(0.1)	$ 0.3	(0.3)
Total other expense, net	$ 0.8	$ 6.1	$ 0.3	$ 5.9

Other Expense, Net - Additional Information (Detail)	3 Months Ended
Other Expense, Net - Additional Information (Detail)	Jun. 30, 2013 USD ($)
Component Of Other Expense Income Nonoperating [Line Items]
Impairment charge	$ 6,200,000
Carrying value of the investment	$ 0

Pre-tax Restructuring and Other Charges (Detail) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

$ 0.8

$ 0.3

$ 3.1

$ 1.2

^[1]

(0.6)

(0.3)

(0.5)

Operating Segments | Kitchen and Bath Cabinetry

0.2

2.6

1.2

0.2

0.3

0.5

^[1]

(0.3)

Operating Segments | Plumbing and Accessories

0.2

(0.1)

0.3

0.5

(1.0)

(0.9)

^[1]

(0.6)

Operating Segments | Security and Storage

(1.6)

(1.5)

2.1

^[1]

0.1

Operating Segments | Advanced Material Windows and Door Systems

2.2

0.1

0.7

$ 0.1

$ 0.7

Corporate

1.6

$ 1.6

[1]

"Other Charges," which were recorded in cost of products sold, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under U.S. GAAP. Such costs may include losses on disposal of inventories, trade receivables, allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities.

Computations of Earnings Loss Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Net income attributable to Home & Security	$ 93.3	$ 64.0	$ 134.1	$ 101.3
Basic earnings per common share	$ 0.57	$ 0.39	$ 0.81	$ 0.61
Diluted earnings per common share	$ 0.55	$ 0.37	$ 0.79	$ 0.59
Basic average shares outstanding	164.2	165.4	165.2	164.9
Stock-based awards	4.5	5.9	4.8	5.9
Diluted average shares outstanding	168.7	171.3	170.0	170.8
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share	0.6	0.9	0.4	1.2

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Accumulated Other Comprehensive Income (Loss) [Line Items]

Components of and Changes in Accumulated Other Comprehensive Income (Detail)
$ in Millions

6 Months Ended

Jun. 30, 2014

USD ($)

Amounts classified into accumulated other comprehensive income

$ 95.4

3.5

Amounts reclassified from accumulated other comprehensive income

(11.1)

(7.6)

Foreign Currency Adjustments

87.8

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amounts classified into accumulated other comprehensive income

53.3

(3.4)

(3.4)

Accumulated Other Comprehensive Income (Loss) [Line Items]

49.9

Derivative Hedging Gain

Amounts classified into accumulated other comprehensive income

0.9

(2.2)

Amounts reclassified from accumulated other comprehensive income

(0.5)

(2.7)

Defined Benefit Plan Adjustments

(1.8)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amounts classified into accumulated other comprehensive income

41.2

9.1

^[1]

Amounts reclassified from accumulated other comprehensive income

(10.6)

(1.5)

$ 39.7

[1]	See Note 9, "Defined Benefit Plans," for further information on the adjustments related to defined benefit plans.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Cost of products sold

$ (741.8)

$ (663.4)

$ (1,393.3)

$ (1,253.2)

Income before income taxes

133.7

98.7

194.4

153.8

Tax (expense) benefit

(40.1)

(34.5)

(59.6)

(52.1)

Reclassification out of Accumulated Other Comprehensive Income

93.6

64.2

134.8

101.7

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain

4.3

5.7

11.1

7.3

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Income before income taxes

(0.1)

1.0

0.6

1.4

Tax (expense) benefit

(0.3)

(0.1)

(0.4)

Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | Foreign exchange contracts

(0.1)

0.7

0.5

1.0

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Cost of products sold

(0.1)

1.1

0.6

1.5

Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain | Commodity contracts

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Cost of products sold

(0.1)

Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plan Adjustments

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Recognition of prior service cost

^[1]

7.0

8.7

17.6

15.7

Recognition of actuarial losses

^[1]

(0.8)

(0.6)

(5.4)

Income before income taxes

7.0

7.9

17.0

10.3

Tax (expense) benefit

(2.6)

(2.9)

(6.4)

(4.0)