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^[1]

$ 4,579.4

$ 4,013.6

$ 3,703.6

Selling, general and administrative expenses

2,997.5

2,646.7

2,408.5

1,047.6

943.3

938.7

21.6

13.1

9.4

Income from continuing operations before income taxes

16.6

7.0

2.8

Asset impairment charges

0.0

21.2

OPERATING INCOME

496.1

403.5

323.0

Interest expense

31.9

10.4

7.2

Other expense, net

4.3

1.2

5.3

459.9

391.9

310.5

Income taxes

153.4

118.3

101.5

Income from continuing operations, net of tax

306.5

273.6

209.0

Income (loss) from discontinued operations, net of tax

9.0

(114.3)

21.9

Less: Noncontrolling interests

315.5

159.3

230.9

0.5

1.2

NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS

$ 315.0

$ 158.1

$ 229.7

Basic earnings (loss) per common share

Net income attributable to Fortune Brands common shareholders

$ 1.92

$ 1.68

$ 1.26

Discontinuing operations

0.05

(0.70)

0.13

1.97

0.98

1.39

Diluted earnings (loss) per common share

Net income attributable to Fortune Brands common shareholders

1.88

1.64

1.21

Discontinuing operations

0.05

(0.69)

0.13

$ 1.93

$ 0.95

$ 1.34

Basic average number of shares outstanding

159.5

161.8

165.5

Diluted average number of shares outstanding

163.0

166.3

171.3

Dividends declared per common share

$ 0.58

$ 0.50

$ 0.42

[1]	Based on country of destination

Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Other comprehensive (loss) income, before tax:

$ 315.5

$ 159.3

$ 230.9

Foreign currency translation adjustments

(44.3)

(22.3)

(10.2)

Unrealized gains (losses) on derivatives:

Unrealized holding gains (losses) arising during period

6.8

(1.3)

3.0

Less: reclassification adjustment for gains included in net income

(3.6)

(0.1)

(2.0)

Unrealized gains (losses) on derivatives

3.2

(1.4)

1.0

Defined benefit plans:

Prior service (cost) credit arising during period

(0.1)

15.3

34.7

Prior service cost recognition due to settlement and curtailment

(1.0)

Net actuarial gain (loss) arising during period

6.3

(112.5)

111.3

Less: amortization of prior service credit included in net periodic pension cost

(13.4)

(27.5)

(27.3)

Defined benefit plans

(8.2)

(124.7)

118.7

Other comprehensive (loss) income, before tax

(49.3)

(148.4)

109.5

Income tax benefit (expense) related to items of other comprehensive income

^[1]

3.5

46.2

(44.7)

Other comprehensive (loss) income, net of tax

(45.8)

(102.2)

64.8

COMPREHENSIVE INCOME

269.7

57.1

295.7

Less: comprehensive income attributable to noncontrolling interest

0.5

1.1

1.2

COMPREHENSIVE INCOME ATTRIBUTABLE TO FORTUNE BRANDS

$ 269.2

$ 56.0

$ 294.5

[1]	Income tax benefit (expense) on unrealized gains (losses) on derivatives of $(0.5) million, $(0.2) million and $(0.2) million and on defined benefit plans of $4.0 million, $46.4 million and $(44.5) million in 2015, 2014 and 2013, respectively.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Unrealized gains (losses) on derivatives, tax	$ (0.5)	$ (0.2)	$ (0.2)
Defined benefit plans, tax	$ 4.0	$ 46.4	$ (44.5)

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Current assets

Cash and cash equivalents

$ 238.5

$ 191.9

Accounts receivable less allowances for discounts, doubtful accounts and returns

502.6

458.9

Inventories

555.6

462.2

Other current assets

122.0

122.8

Current assets of discontinued operations

63.3

TOTAL CURRENT ASSETS

1,418.7

1,299.1

Property, plant and equipment, net of accumulated depreciation

^[1]

627.9

539.8

Other intangible assets, net of accumulated amortization

^[2]

1,755.3

1,467.8

996.7

656.5

Other assets

80.0

72.4

Non-current assets of discontinued operations

17.3

TOTAL ASSETS

4,878.6

4,052.9

Current liabilities

Notes payable to banks

0.8

Current portion of long-term debt

0.0

26.3

Accounts payable

344.2

333.8

Other current liabilities

412.9

322.0

Current liabilities of discontinued operations

17.5

TOTAL CURRENT LIABILITIES

757.9

699.6

Long-term debt

1,171.6

643.7

Deferred income taxes

201.7

150.6

Accrued defined benefit plans

218.4

216.9

Other non-current liabilities

75.2

75.6

Non-current liabilities of discontinued operations

3.4

TOTAL LIABILITIES

2,424.8

1,789.8

Commitments (Note 17) and Contingencies (Note 22)

Equity

Common stock

^[3]

1.7

Paid-in capital

2,602.2

2,517.3

Accumulated other comprehensive loss

(52.5)

(6.7)

Retained earnings

501.6

279.5

Treasury stock

(602.1)

(532.3)

TOTAL FORTUNE BRANDS EQUITY

2,450.9

2,259.5

Noncontrolling interests

2.9

3.6

TOTAL EQUITY

2,453.8

2,263.1

TOTAL LIABILITIES AND EQUITY

$ 4,878.6

$ 4,052.9

[1]	Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.
[2]	Net of accumulated impairment losses of $399.5 million in the Doors segment.
[3]	Common stock, par value $0.01 per share, 175.2 million shares and 172.0 million shares issued at December 31, 2015 and 2014, respectively.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2015	Dec. 31, 2014
Common Stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	175.2	172.0

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net Income	$ 315.5	$ 159.3	$ 230.9
Non-cash expense (income):
Depreciation	93.5	82.9	77.2
Amortization of intangibles	21.6	15.9	13.2
Stock-based compensation	27.6	29.7	26.1
Restructuring charges	1.0	2.5	0.2
(Gain) loss on sale of property, plant and equipment	(0.5)	0.9	0.8
Loss on sale of discontinued operation	16.7	83.2
Asset impairment charges		10.7	27.4
Actuarial (gain) loss	8.6	13.7	5.2
Deferred taxes	(13.6)	0.3	(12.7)
Amortization of deferred financing costs	0.6
Changes in assets and liabilities including effects subsequent to acquisitions:
Increase in accounts receivable	(6.9)	(39.9)	(58.5)
(Increase) decrease in inventories	(69.8)	14.5	(89.7)
(Decrease) increase in accounts payable	(16.0)	(9.5)	39.8
(Increase) decrease in other assets	(24.4)	(24.4)	32.2
Increase (decrease) in accrued taxes	6.7	(0.2)	5.7
Increase (decrease) in accrued expenses and other liabilities	50.5	(85.9)
NET CASH PROVIDED BY OPERATING ACTIVITIES	411.1	253.7	297.8
INVESTING ACTIVITIES
Capital expenditures	(128.5)	(127.5)	(96.7)
Proceeds from the disposition of assets	2.5	0.7	2.2
Proceeds from sale of discontinued operation	12.2	130.0
Cost of acquisitions, net of cash acquired	(652.8)	(147.3)	(302.0)
Other investing activities		(7.0)	(0.2)
NET CASH USED IN INVESTING ACTIVITIES	(766.6)	(151.1)	(396.7)
FINANCING ACTIVITIES
Increase (decrease) in short-term debt	0.8	(6.2)	1.3
Issuance of long-term debt	1,748.9	1,057.0	220.0
Repayment of long-term debt	(1,250.0)	(737.0)	(190.0)
Proceeds from the exercise of stock options	28.9	28.9	50.7
Excess tax benefit from the exercise of stock-based compensation	30.7	29.2	26.8
Dividends to stockholders	(89.5)	(77.4)	(49.9)
Treasury stock purchases	(51.7)	(439.8)	(52.1)
Other financing activities, net	(1.2)	(2.2)	(2.7)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	416.9	(147.5)	4.1
Effect of foreign exchange rate changes on cash	(14.8)	(4.6)	0.2
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	46.6	(49.5)	(94.6)
Cash and cash equivalents at beginning of year	191.9	241.4	336.0
Cash and cash equivalents at end of year	238.5	191.9	241.4
Cash paid during the year for:
External interest	26.0	9.6	6.7
Income taxes paid directly to taxing authorities	102.2	109.1	89.4
Income taxes (received from) paid to Fortune Brands, Inc.	2.0		(1.2)
Dividends declared but not paid	$ 25.6	$ 22.1	$ 20.0

Consolidated Statements of Equity - USD ($)
$ in Millions

Total

Common Stock

Paid-In Capital

Accumulated Other Comprehensive (Loss) Income

Retained Earnings (Deficit)

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:

Other comprehensive (loss) income

230.9

229.7

1.2

64.8

Stock options exercised

50.8

0.1

50.7

Stock-based compensation

14.5

25.7

(11.2)

Tax benefit on exercise of stock options

^[1]

30.1

Treasury stock purchase

(51.7)

Dividends ($0.42 per common share) in 2013, ($0.50 per common share) in 2014 and ($0.50 per common share) in 2015

(69.9)

Dividends paid to noncontrolling interests

(1.1)

Ending Balance at Dec. 31, 2013

2,653.1

1.7

2,431.3

95.4

200.8

(79.8)

3.7

Comprehensive income:

Other comprehensive (loss) income

159.3

158.1

1.2

(102.2)

(102.1)

(0.1)

Stock options exercised

29.1

Stock-based compensation

16.5

29.2

(12.7)

Tax benefit on exercise of stock options

27.7

Treasury stock purchase

(439.8)

Dividends ($0.42 per common share) in 2013, ($0.50 per common share) in 2014 and ($0.50 per common share) in 2015

(79.4)

Dividends paid to noncontrolling interests

(1.2)

Ending Balance at Dec. 31, 2014

2,263.1

1.7

2,517.3

(6.7)

279.5

(532.3)

3.6

Comprehensive income:

Other comprehensive (loss) income

315.5

315.0

0.5

(45.8)

Stock options exercised

28.9

Stock-based compensation

9.5

27.6

(18.1)

Tax benefit on exercise of stock options

28.4

Treasury stock purchase

(51.7)

Dividends ($0.42 per common share) in 2013, ($0.50 per common share) in 2014 and ($0.50 per common share) in 2015

(92.9)

Dividends paid to noncontrolling interests

(1.2)

Ending Balance at Dec. 31, 2015

$ 2,453.8

$ 1.7

$ 2,602.2

$ (52.5)

$ 501.6

$ (602.1)

$ 2.9

[1]	Includes $4.1 million of adjustments related to previous years' vested and unvested restricted stock units.

Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Dividends per Common share	$ 0.58	$ 0.50	$ 0.42
Adjustments related to previous years' vested and unvested restricted stock units	$ 4.1

Background and Basis of Presentation

12 Months Ended

Dec. 31, 2015

Background and Basis of Presentation

1. Background and Basis of Presentation

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 and security applications. References to (i) “Fortune Brands,” “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, after giving effect to the spin-off of Fortune Brands from Fortune Brands, Inc. in 2011 and (ii) “Former Parent” refer to Fortune Brands, Inc.

Basis of Presentation The consolidated financial statements include the accounts of Fortune Brands and its majority-owned subsidiaries. The Company’s subsidiaries operate on a 52 or 53-week fiscal year.

The consolidated financial statements included in this Annual Report on Form 10-K were derived principally from the consolidated financial statements of the Company. In May 2015, we acquired Norcraft Companies, Inc. (“Norcraft”). The financial results of Norcraft have been included in the Company’s consolidated statements of income and consolidated statements of cash flow beginning in May 2015 and the consolidated balance sheet as of December 31, 2015. On September 10, 2015, we completed the sale of Waterloo Industries, Inc. (“Waterloo”), our tool storage business. Therefore, in accordance with Accounting Standards Codification (“ASC”) requirements, the results of operations of Waterloo through the date of sale, were classified and separately stated as discontinued operations in the accompanying consolidated statements of income for the twelve months ended December 31, 2015, 2014 and 2013. The assets and liabilities of Waterloo were classified as discontinued operations in the accompanying consolidated balance sheet as of December 31, 2014. In September 2014, we sold all of the shares of stock of Fortune Brands Windows, Inc., our subsidiary that owned and operated the Simonton windows business (“Simonton”). Therefore, in accordance with ASC requirements, the results of operations of Simonton were reclassified and separately stated as discontinued operations in the accompanying consolidated statements of income for 2014 and 2013. The cash flows from discontinued operations for 2015, 2014 and 2013 were not separately classified on the accompanying condensed consolidated statements of cash flows. Information on Business Segments was revised to exclude these discontinued operations.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Significant Accounting Policies

2. Significant Accounting Policies

Use of Estimates The presentation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results in future periods could differ from those estimates.

Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents.

Allowances for Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowances for doubtful accounts represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency), or discounts related to early payment of accounts receivables by our customers. The allowances include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for doubtful accounts was $5.8 million and $5.4 million as of December 31, 2015 and 2014, respectively.

Inventories The majority of our inventories are accounted for using the first-in, first-out inventory method. Inventory provisions are recorded to reduce inventory to the lower of cost or market value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage and specific identification of items, such as product discontinuance, engineering/material changes, or regulatory-related changes.

We also use the last-in, first-out (“LIFO”) inventory method in those product groups in which metals inventories comprise a significant portion of our inventories. LIFO inventories at December 31, 2015 and 2014 were $227.9 million (with a current cost of $243.1 million) and $197.6 million (with a current cost of $217.5 million), respectively.

Property, Plant and Equipment Property, plant and equipment are carried at cost. Depreciation is provided, principally on a straight-line basis, over the estimated useful lives of the assets. Gains or losses resulting from dispositions are included in operating income. Betterments and renewals, which improve and extend the life of an asset, are capitalized; maintenance and repair costs are expensed as incurred. Assets held for use to be disposed of at a future date are depreciated over the remaining useful life. Assets to be sold are written down to fair value at the time the assets are being actively marketed for sale. Estimated useful lives of the related assets are as follows:

Long-lived Assets In accordance with ASC requirements for Property, Plant and Equipment, a long-lived asset (including amortizable identifiable intangible assets) or asset group held for use is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis.

Goodwill and Indefinite-lived Intangible Assets In accordance with ASC requirements for Intangibles — Goodwill and Other, goodwill is tested for impairment at least annually in the fourth quarter, and written down when impaired. An interim impairment test is performed if an event occurs or conditions change that would more likely than not reduce the fair value of the reporting unit below the carrying value.

We evaluate the recoverability of goodwill using a weighting of the income (80%) and market (20%) approaches. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates, and then discounting the future cash flows at a market-participant-derived weighted-average cost of capital. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our projection for the U.S. home products market is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine each reporting unit’s fair value. The Company’s reporting units are operating segments. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying value of a reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of a reporting unit is estimated based on a hypothetical allocation of each reporting unit’s fair value to all of its underlying assets and liabilities.

Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test.

The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. Such events may include, but are not limited to, the impact of the economic environment; a material negative change in relationships with significant customers; or strategic decisions made in response to economic and competitive conditions.

Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees.

We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation — Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan basis that matches projected future benefit payments with the appropriate interest rate applicable to the timing of the projected future benefit payments. The expected rate of return on plan assets is determined based on the nature of the plans’ investments, our current asset allocation and our expectations for long-term rates of return. Compensation increases reflect expected future compensation trends. For postretirement benefits, our health care trend rate assumption is based on historical cost increases and expectations for long-term increases. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the related employees. We believe that the assumptions utilized in recording obligations under our plans, which are presented in Note 14, “Defined Benefit Plans,” are reasonable based on our experience and on advice from our independent actuaries; however, differences in actual experience or changes in the assumptions may materially affect our financial position and results of operations. We will continue to monitor these assumptions as market conditions warrant.

Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with ASC requirements for Contingencies. We evaluate the measurement of recorded liabilities each reporting period based on the then-current facts and circumstances specific to each matter. The ultimate losses incurred upon final resolution of litigation-related loss contingencies may differ materially from the estimated liability recorded at any particular balance sheet date. Changes in estimates are recorded in earnings in the period in which such changes occur.

Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting bases and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized.

We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances, and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2015, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $38.2 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $7.5 million to $12.5 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

Revenue Recognition Revenue is recorded when persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectibility is reasonably assured. Revenue is recorded net of applicable provisions for discounts, returns and allowances. We record estimates for reductions to revenue for customer programs and incentives, including price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized. Sales returns are based on historical returns, current trends and forecasts of product demand.

Cost of Products Sold Cost of products sold includes all costs to make products saleable, such as labor costs, inbound freight, purchasing and receiving costs, inspection costs and internal transfer costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of products sold.

Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for in either “net sales” or the category “selling, general and administrative expenses” at the time the program is initiated and/or the revenue is recognized. The costs are predominantly recognized in “net sales” and include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, levels of returns and customer training. Management periodically reviews accruals for these rebates and allowances, and adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). The costs typically recognized in “selling, general and administrative expenses” include product displays, point of sale materials and media production costs. The costs included in the “selling, general and administrative expenses” category were $43.2 million, $43.4 million and $43.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $184.6 million, $169.7 million and $161.2 million in 2015, 2014 and 2013, respectively.

Advertising costs, which amounted to $195.4 million, $200.4 million and $197.1 million in 2015, 2014 and 2013, respectively, are principally expensed as incurred. Advertising costs include product displays, media production costs and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $63.2 million, $66.8 million and $56.8 million in 2015, 2014 and 2013, respectively. Advertising costs recorded in selling, general and administrative expenses were $132.2 million, $133.6 million and $140.3 million in 2015, 2014 and 2013, respectively.

Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $48.7 million, $46.1 million and $50.8 million in 2015, 2014 and 2013, respectively, are expensed as incurred.

Stock-based Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance award is based on the stock price at the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the share price at the date of grant. See Note 13, “Stock-Based Compensation,” for additional information.

Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Fortune Brands by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. See Note 20, “Earnings Per Share,” for further discussion.

Foreign Currency Translation Foreign currency balance sheet accounts are translated into U.S. dollars at the actual rates of exchange at the balance sheet date. Income and expenses are translated at the average rates of exchange in effect during the period for the foreign subsidiaries where the local currency is the functional currency. The related translation adjustments are made directly to a separate component of the “accumulated other comprehensive income” (“AOCI”) caption in equity. Transactions denominated in a currency other than the functional currency of a subsidiary are translated into functional currency with resulting transaction gains or losses recorded in other expense, net.

Derivative Financial Instruments In accordance with ASC requirements for Derivatives and Hedging, all derivatives are recognized as either assets or liabilities on the balance sheet and measurement of those instruments is at fair value. If the derivative is designated as a fair value hedge and is highly effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded directly to a separate component of AOCI, and are recognized in the consolidated statement of income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings.

Net deferred currency gains of $3.8 million was reclassified into earnings for the year ended December 31, 2015. There was no impact of deferred currency gains/losses on earnings in 2014. Net deferred currency gains of $2.3 million was reclassified into earnings for the years ended December 31, 2013. Based on foreign exchange rates as of December 31, 2015, we estimate that $3.1 million of net currency derivative gains included in AOCI as of December 31, 2015 will be reclassified to earnings within the next twelve months.

Recently Issued Accounting Standards

Balance Sheet Classification of Deferred Taxes

In November 2015, the Financial Accounting Standards Board (“FASB”) issued final guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. While the guidance changes the way deferred taxes are classified on the balance sheet, companies are still required to offset deferred tax assets and liabilities for each taxpaying component within a tax jurisdiction. The standard is effective starting January 1, 2017. We have early adopted this standard as of December 31, 2015. We have elected to apply the new standard prospectively and therefore we have not adjusted prior periods presented.

Simplifying Accounting for Measurement-Period Adjustments

In September 2015, the FASB issued a final standard that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The new standard is effective for the annual period beginning January 1, 2016 (calendar year 2016 for Fortune Brands). Early application is permitted, however we elected not to early adopt. We do not expect this standard to have a material effect on our financial statements.

Simplifying Subsequent Measurement of Inventory

In July 2015, the FASB issued a final standard that simplifies the subsequent measurement of inventory by replacing lower of cost or market test under the current GAAP. Under the current guidance the subsequent measurement of inventory is measured at the lower of cost or market, where “market” may have multiple possible outcomes. The new guidance requires subsequent measurement of inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell (completion, disposal, and transportation). This new standard is effective for the annual period beginning January 1, 2017 (calendar year 2017 for Fortune Brands). Earlier application is permitted, however we elected not to early adopt. We do not expect this standard to have a material effect on our financial statements.

Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share

In May 2015, the FASB issued a final standard that eliminates the requirement to categorize within the fair value hierarchy investments whose fair values are measured at net asset value. Instead, entities will be required to disclose the fair values of such investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table and the amounts reported on the balance sheet. The new guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2015 (calendar year 2016 for Fortune Brands). Early adoption is permitted, however we elected not to early adopt. We do not expect this standard to have a material effect on our financial statements.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, instead of as a deferred charge (i.e., as an asset). This new standard is effective for the annual period beginning after December 15, 2015 (calendar year 2016 for Fortune Brands), and for annual periods and interim periods thereafter. Early adoption is permitted, however we elected not to early adopt. The guidance will be applied on a retrospective basis. The adoption of this ASU will require us to reclassify approximately $3 million of debt issuance costs from a deferred asset to long-term debt as of March 31, 2016.

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This amendment is effective for the annual period ending after December 15, 2016 (calendar year 2016 for Fortune Brands), and for annual periods and interim periods thereafter. Early application is permitted, however we elected not to early adopt. We do not expect this standard to have a material effect on our financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued 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. Further, in August 2015, the FASB issued a standard, which clarified that the amendment is effective for annual reporting periods beginning after December 15, 2017 (calendar year 2018 for Fortune Brands), and annual and interim periods thereafter. We are assessing the impact the adoption of this standard will have on our financial statements.

Balance Sheet Information

12 Months Ended

Dec. 31, 2015

Balance Sheet Information

3. Balance Sheet Information

Supplemental information on our year-end consolidated balance sheets is as follows:



(In millions)	2015		2014
Inventories:
Raw materials and supplies	$	237.8	$	178.1
Work in process		60.2		54.0
Finished products		257.6		230.1
Total inventories	$	555.6	$	462.2

Property, plant and equipment:
Land and improvements	$	56.2	$	48.5
Buildings and improvements to leaseholds		407.6		356.3
Machinery and equipment		1,005.6		920.2
Construction in progress		82.3		71.3
Property, plant and equipment, gross		1,551.7		1,396.3
Less: accumulated depreciation		923.8		856.5
Property, plant and equipment, net of accumulated depreciation	$	627.9	$	539.8

Other current liabilities:
Accrued salaries, wages and other compensation	$	118.0	$	69.8
Accrued customer programs		124.8		102.5
Accrued taxes		43.3		28.0
Other accrued expenses		126.8		121.7
Total other current liabilities	$	412.9	$	322.0

Acquisitions

12 Months Ended

Dec. 31, 2015

Acquisitions

4. Acquisitions

In May 2015, we completed our tender offer to purchase all of the outstanding shares of common stock of Norcraft, a leading publicly-owned manufacturer of kitchen and bathroom cabinetry, for a total purchase price of $648.6 million in cash. We financed the transaction using cash on hand and borrowings under our existing credit facilities. Net sales and operating income for this acquired business in the year ended December 31, 2015 were approximately $258 million and $28 million, respectively. Operating income included a $2.0 million charge related to an inventory purchase accounting adjustment to fair value. The results of operations of Norcraft are included in the Cabinets segment. We incurred $15.1 million of Norcraft acquisition-related transaction costs in the year ended December 31, 2015. The goodwill expected to be deductible for income tax purposes is approximately $60.3 million.

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



(In millions)
Accounts receivable	$	31.0
Inventories		28.4
Property, plant and equipment		45.7
Goodwill		304.7
Identifiable intangible assets		360.0
Other assets		9.4
Total assets		779.2
Deferred tax liabilities		101.4
Other liabilities and accruals		29.2
Net assets acquired^(a)	$	648.6

^(a)	Net assets exclude $15.5 million of cash transferred to the Company as the result of the Norcraft acquisition.

The preceding purchase price allocation has been determined provisionally and is subject to revision as additional information about the fair value of individual assets and liabilities becomes available. Any change in the acquisition date fair value of the acquired assets and liabilities will change the amount of the purchase price allocable to goodwill.

Goodwill includes expected sales and cost synergies. Identifiable intangible assets consist of an indefinite-lived tradename of $150 million and customer relationships of $210 million. The useful life of the customer relationships identifiable intangible asset is estimated to be 20 years.

The following unaudited pro forma summary presents consolidated financial information as if Norcraft had been acquired on January 1, 2014. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and Norcraft. The pro forma results include:

the effect of certain transactions recorded in historical financial statements of Norcraft including: the expense relating to Norcraft’s tax receivable agreements settled upon the acquisition of Norcraft and the pro forma effect of a release of deferred tax valuation allowance,

estimated amortization of a definite-lived customer relationship intangible asset,

the estimated cost of the inventory adjustment to fair value,

interest expense associated with debt that would have been incurred in connection with the acquisition,

the reclassification of Norcraft transaction costs from 2015 to the first quarter of 2014, and

adjustments to conform accounting policies.

The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2014. In addition, the unaudited pro forma information should not be deemed to be indicative of future results.



(In millions, except per share amounts)	2015		2014
Net sales	$	4,721.8	$	4,387.8
Income from continuing operations		323.1		269.7
Basic earnings per common share	$	2.02	$	1.66
Diluted earnings per common share	$	1.98	$	1.61

In March 2015, we acquired a cabinets component company for approximately $6 million in cash. This acquisition did not have a material impact on our financial statements.

In December 2014, we acquired all of the issued and outstanding shares of capital stock of Anafree Holdings, Inc., the sole owner of Anaheim Manufacturing Company (“Anaheim”), which markets and sells garbage disposals, for $28.9 million in cash. We paid the purchase price using a combination of cash on hand and borrowings under our existing credit facilities. We completed our purchase price allocation in the first half of 2015 and as a result reclassified $17 million from goodwill to other identifiable assets. The results of operations of Anaheim are included in the Plumbing segment.

In July 2014, we acquired all of the voting equity of John D. Brush & Co., Inc. (“SentrySafe”) for a purchase price of $116.7 million in cash. The purchase price was funded from our existing credit facilities. This acquisition broadened our product offering of security products. The results of operations of SentrySafe are included in the Security segment.

These 2014 acquisitions were not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements.

In June 2013, we acquired Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops, for a purchase price of $302.0 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. The results of operations of WoodCrafters are included in the Cabinets segment.

Substantially all of the acquired goodwill was tax deductible. 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 following unaudited pro forma summary presents consolidated financial information as if WoodCrafters had been acquired on January 1, 2013. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and WoodCrafters. The pro forma results include adjustments for the impact of a preliminary allocation of the purchase price and interest expense associated with debt that would have been incurred in connection with the acquisition. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2013. In addition, the unaudited pro forma information should not be deemed to be indicative of future results.



(In millions except per share amounts)	2013
Net sales	$	3,811.0
Net income attributable to Fortune Brands		240.8
Basic earnings per common share	$	1.45
Diluted earnings per common share	$	1.41

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).

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Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations

5. Discontinued Operations

In 2015, we completed the sale of Waterloo for approximately $14 million in cash, subject to certain post-closing adjustments. We recorded a pre-tax loss of $16.7 million as the result of this sale. Transaction and other sale-related costs were approximately $2.8 million. The estimated tax benefit on the sale was $26.5 million with the after-tax gain of $7.0 million recorded within discontinued operations. The estimated tax benefit resulted primarily from a tax loss in excess of the financial reporting loss as a result of prior period nondeductible asset impairments. Waterloo is presented as a discontinued operation in our financial statements beginning January 1, 2013 and through the date of sale in accordance with ASC 205 requirements. Prior to classifying Waterloo as a discontinued operation, it was reported in the Security segment.

In addition, in August 2014, we entered into a stock purchase agreement to sell the Simonton business for $130 million in cash. The sale was completed in September 2014. Simonton is presented as a discontinued operation in the Company’s financial statements in accordance with ASC requirements. The 2014 income (loss) from discontinued operations, net of tax, included a loss on sale of the Simonton business of $111.2 million as well as $14.1 million of restructuring and impairment charges for Waterloo in order to remeasure this business at the estimated fair value less costs to sell. Simonton was previously reported in the Doors segment.

The following table summarizes the results of discontinued operations for the years ended December 31, 2015, 2014 and 2013. The year ended December 31, 2015 on a pre-tax basis consists of Waterloo only, however comparable periods in 2014 and 2013 include both Waterloo and Simonton.



(in millions)	2015			2014			2013
Net sales	$	78.2		$	369.4		$	453.8
(Loss) income from discontinued operations before income taxes	$	(16.0	)	$	(90.8	)	$	34.4
Income tax (benefit) expense		(25.0	)		23.5			12.5
Income (loss) from discontinued operations, net of tax	$	9.0		$	(114.3	)	$	21.9

The following table summarizes the major classes of assets and liabilities of Waterloo, which is reflected as a discontinued operation on the consolidated balance sheet as of December 31, 2014:



(in millions)	2014
Accounts receivable, net	$	40.1
Inventories		15.9
Other current assets		7.3
Total current assets		63.3
Property, plant and equipment, net		13.3
Other non-current assets		4.0
Total assets	$	80.6
Accounts payable	$	8.5
Other current liabilities		9.0
Total current liabilities		17.5
Other non-current liabilities		3.4
Total liabilities	$	20.9

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Goodwill and Identifiable Intangible Assets

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2015

6. Goodwill and Identifiable Intangible Assets

We had goodwill of $1,755.3 million and $1,467.8 million as of December 31, 2015 and 2014, respectively. The increase of $287.5 million was primarily due to the acquisitions of Norcraft and Anaheim. The change in the net carrying amount of goodwill by segment was as follows:



(In millions)	Cabinets			Plumbing			Doors		Security			Total Goodwill
Balance at December 31, 2013^(a)	$	631.7		$	569.7		$	143.0	$	89.4		$	1,433.8
2014 translation adjustments		(2.7	)		—			—		(1.4	)		(4.1	)
Acquisition-related adjustments		1.1			25.9			—		11.1			38.1
Balance at December 31, 2014^(a)	$	630.1		$	595.6		$	143.0	$	99.1		$	1,467.8
2015 translation adjustments		(4.9	)		—			—		(2.7	)		(7.6	)
Acquisition-related adjustments		312.5			(17.0	)		—		(0.4	)		295.1
Balance at December 31, 2015^(a)	$	937.7		$	578.6		$	143.0	$	96.0		$	1,755.3

^(a)	Net of accumulated impairment losses of $399.5 million in the Doors segment.

We also had identifiable intangible assets, principally tradenames, of $996.7 million and $656.5 million as of December 31, 2015 and 2014, respectively. The $356.4 million increase in gross identifiable intangible assets was primarily due to the acquisition of Norcraft.

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2015 and 2014 were as follows:


	As of December 31, 2015							As of December 31, 2014
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets—tradenames	$	680.6	$	(42.0	)^(a)	$	638.6	$	542.7	$	(42.0	)^(a)	$	500.7
Amortizable intangible assets
Tradenames		19.1		(8.6	)		10.5		14.6		(6.4	)		8.2
Customer and contractual relationships		511.2		(177.4	)		333.8		294.2		(164.0	)		130.2
Patents/proprietary technology		54.7		(40.9	)		13.8		57.7		(40.3	)		17.4
Total		585.0		(226.9	)		358.1		366.5		(210.7	)		155.8
Total identifiable intangibles	$	1,265.6	$	(268.9	)	$	996.7	$	909.2	$	(252.7	)	$	656.5

^(a)	Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets.

Amortizable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, ranging from 3 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, customer attrition rates, and other relevant factors. We expect to record intangible amortization of approximately $26 million in 2016, $24 million in 2017, $22 million in 2018, $21 million in 2019 and $21 million in 2020.

We review indefinite-lived tradename intangible assets for impairment annually in the fourth quarter, as well as whenever market or business events indicate there may be a potential impact on a specific intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the tradename to a third party over the remaining useful life.

In 2015, 2014 and 2013, we did not record any asset impairment charges associated with goodwill or indefinite-lived intangible assets.

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

Asset Impairment Charges

12 Months Ended

Dec. 31, 2015

Asset Impairment Charges

7. Asset Impairment Charges

No asset impairment charges were recorded in 2015 and 2014 in operating income. In 2013, our Cabinets segment abandoned certain software developed for internal use, which resulted in a pre-tax impairment charge of $21.2 million, which was recorded in operating income on the asset impairment charges line of the income statement and reduced property, plant and equipment.

In addition, in 2014, as a result of our decision to sell Waterloo, we recorded $9.1 million of pre-tax impairment charges in order to remeasure this business at the estimated fair value less costs to sell. These charges consisted of $8.1 million for fixed assets and $1.0 million for definite-lived intangible assets. Refer to Note 5, “Discontinued Operations,” for additional information.

External Debt and Financing Arrangements

12 Months Ended

Dec. 31, 2015

8. External Debt and Financing Arrangements

In June 2015, we issued $900 million of unsecured senior notes (“Senior Notes”) in a registered public offering. The Senior Notes consist of two tranches: $400 million of five-year notes due 2020 with a coupon of 3% and $500 million of ten-year notes due 2025 with a coupon of 4%. We used the proceeds from the Senior Notes offering to pay down our revolving credit facility and for general corporate purposes. On December 31, 2015, the outstanding amount of the Senior Notes, net of underwriting commissions and price discounts, was $891.6 million.

We have a $975 million committed revolving credit facility, as well as a term loan in the initial amount of $525 million, both of which expire in July 2018. Both facilities can be used for general corporate purposes. On December 31, 2015 and 2014, our outstanding borrowings under the revolving credit facility were zero and $145.0 million, respectively; the amounts outstanding under the term loan were $280.0 million and $525.0 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, the Company’s borrowing rate could range from LIBOR + 1.0% to LIBOR + 2.0%. The credit facilities also include a minimum Consolidated Interest Coverage Ratio requirement of 3.0 to 1.0. The Consolidated Interest Coverage Ratio is defined as the ratio of Adjusted EBITDA to Consolidated Interest Expense. Adjusted EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. Consolidated Interest Expense is as disclosed in our financial statements. The credit facilities also include a Maximum Leverage Ratio of 3.5 to 1.0 as measured by the ratio of our debt to Adjusted EBITDA. The Maximum Leverage Ratio is permitted to increase to 3.75 to 1.0 for three succeeding quarters in the event of an acquisition. At December 31, 2015, we were in compliance with our debt covenant ratios.

At December 31, 2015 and 2014, the current portion of long-term debt was zero and $26.3 million, respectively. We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $25.7 million in aggregate, of which $0.8 million and zero were outstanding, as of December 31, 2015 and 2014. The weighted-average interest rates on these borrowings were 1.0%, 7.6% and 12.3% in 2015, 2014 and 2013, respectively.

The components of external long-term debt were as follows:



(In millions)	2015		2014
$400 million unsecured senior note due June 2020	$	397.7	$	—
$500 million unsecured senior note due June 2025		493.9		—
$975 million revolving credit agreement due July 2018		—		145.0
$525 million term loan due July 2018		280.0		525.0
Total debt		1,171.6		670.0
Less: current portion		—		26.3
Total long-term debt	$	1,171.6	$	643.7

Senior Notes payments during the next five years as of December 31, 2015 are zero in 2016 through 2019 and $400 million in 2020. Term loan amortization payments during the next five years as of December 31, 2015 are zero in 2016, $52.5 million in 2017, $227.5 million in 2018, zero in 2019 and 2020.

In our debt agreements, there are normal and customary events of default which would permit the lenders to accelerate the debt if not cured within applicable grace periods, such as failure to pay principal or interest when due or a change in control of the Company. There were no events of default as of December 31, 2015.

Financial Instruments

12 Months Ended

Dec. 31, 2015

Financial Instruments

9. 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. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company.

Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. From time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. There were no material commodity swap contracts outstanding for the years ended December 31, 2015 and 2014.

We enter into foreign exchange contracts primarily to hedge forecasted sales and purchases denominated in select foreign currencies, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange contracts correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date.

For derivative instruments that are designated as fair value hedges, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized on the same line of the statement of income. The effective portions of cash flow hedges are reported in other comprehensive income (“OCI”) and are recognized in the statement of income when the hedged item affects earnings. The ineffective portion of all hedges is recognized in current period earnings. In addition, changes in the fair value of all economic hedge transactions are immediately recognized in current period earnings. Our primary foreign currency hedge contracts pertain to the Canadian dollar, the Mexican peso and the Chinese yuan. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2015 was $226.7 million, representing a net settlement receivable of $3.7 million. Based on foreign exchange rates as of December 31, 2015, we estimate that $3.1 million of net foreign currency derivative gains included in OCI as of December 31, 2015 will be reclassified to earnings within the next twelve months.

The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2015 and 2014 were:



		Fair Value

(In millions)	Location	2015		2014
Assets:
Foreign exchange contracts	Other current assets	$	6.7	$	5.1
Net investment hedges	Other current assets		0.1		0.5
	Total assets	$	6.8	$	5.6
Liabilities:
Foreign exchange contracts	Other current liabilities	$	3.1	$	5.4

The effects of derivative financial instruments on the consolidated statements of income in 2015, 2014 and 2013 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2015		2014			2013
Cash flow	Net sales	$	—	$	—		$	—
	Cost of products sold		3.6		0.5			1.9
	Other expense, net		—		(0.4	)		—
Fair value	Other expense, net		8.2		3.6			1.2
Total		$	11.8	$	3.7		$	3.1

For cash flow hedges that are effective, the amounts recognized in OCI were gains/(losses) of $6.7 million and $(1.3) million in 2015 and 2014, respectively. In the years ended December 31, 2015, 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.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Measurements

10. Fair Value Measurements

The carrying value and fair value of debt as of December 31, 2015 and 2014 were as follows:



(In millions)	December 31, 2015				December 31, 2014

	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility	$	—	$	—	$	145.0	$	145.0
Notes payable to bank		0.8		0.8		—		—
Term loan, including current portion		280.0		280.0		525.0		525.0
Senior Notes, net of underwriting commissions and price discounts		891.6		894.1		—		—

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 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 estimated fair value of our term loan and the current portion thereof is determined primarily using broker quotes, which are level 2 inputs. The estimated fair value of our Senior Notes is determined by using quoted market prices of our debt securities, which are level 1 inputs.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 were as follows:



(In millions)	Fair Value

	2015		2014
Assets:
Derivative asset financial instruments (level 2)	$	6.8	$	5.6
Deferred compensation program assets (level 2)		3.1		3.3
Total assets	$	9.9	$	8.9
Liabilities:
Derivative liability financial instruments (level 2)	$	3.1	$	5.4

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.

In 2015 and 2014, we did not record impairment charges in operating income. In 2013, we recorded pre-tax intangible asset impairment charges of $21.2 million, refer to Note 7, “Asset Impairment Charges,” for additional information. There were no losses for indefinite-lived intangible assets in 2015, 2014 and 2013.

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.

Capital Stock

12 Months Ended

Dec. 31, 2015

Capital Stock

11. Capital Stock

The Company has 750 million authorized shares of common stock, par value $0.01 per share. The number of shares of common stock and treasury stock and the share activity for 2015 and 2014 were as follows:



	Common Shares						Treasury Shares

	2015			2014			2015		2014
Balance at the beginning of the year		158,140,128			166,667,936			13,809,889		2,404,320
Stock plan shares issued		3,249,892			2,877,761			—		—
Shares surrendered by optionees		(392,921	)		(288,797	)		392,921		288,797
Common stock repurchases		(1,091,067	)		(11,116,772	)		1,091,067		11,116,772
Balance at the end of the year		159,906,032			158,140,128			15,293,877		13,809,889

In December 2015, our Board of Directors increased the quarterly cash dividend by 14% to $0.16 per share of our common stock.

The Company has 60 million authorized shares of preferred stock, par value $0.01 per share. At December 31, 2015, no shares of our preferred stock were outstanding. Our Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue our preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock.

In 2015, we repurchased 1,091,067 shares of outstanding common stock under the Company’s share repurchase programs at cost of $51.7 million. As of December 31, 2015, the Company’s total remaining share repurchase authorization under the remaining program was approximately $247.8 million. The share repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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-Number Topic 4
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Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2015

12. Accumulated Other Comprehensive (Loss) Income

The reclassifications out of accumulated other comprehensive (loss) income for the year ended December 31, 2015 and 2014 were as follows:



(In millions)

Details about Accumulated Other Comprehensive Income Components				Affected Line Item in the Consolidated Statements of Income

	2015			2014
Cumulative translation adjustments	$	—			1.5		Restructuring charges
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	4.0		$	0.5		Cost of products sold
		—			(0.4	)	Other expense, net
Commodity contracts		(0.4	)		—		Cost of products sold
		3.6			0.1		Total before tax
		(1.8	)		(0.1	)	Tax expense
	$	1.8		$	—		Net of tax
Defined benefit plan items
Amortization of prior service cost	$	13.4		$	27.5		(a)
Recognition of actuarial losses		(2.5	)		(13.7	)	(a)
Recognition of prior service in discontinued operations		1.0			—		(b)
Recognition of actuarial losses in discontinued operations		(6.1	)		—		(b)
		5.8			13.8		Total before tax
		(3.0	)		(5.2	)	Tax expense
	$	2.8		$	8.6		Net of tax
Total reclassifications for the period	$	4.6		$	10.1		Net of tax

^(a)	These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 14, “Defined Benefit Plans,” for additional information.

^(b)	These accumulated other comprehensive loss components are included in discontinued operations.

Total accumulated other comprehensive (loss) 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 after-tax components of and changes in accumulated other comprehensive (loss) income were as follows:



(In millions)	Foreign Currency Adjustments			Derivative Hedging Gain (Loss)			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2012	$	63.5		$	0.2		$	(33.1	)	$	30.6
Amounts classified into accumulated other comprehensive (loss) income		(10.2	)		2.0			87.8			79.6
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(1.3	)		(13.5	)		(14.8	)
Net current period other comprehensive (loss) income		(10.2	)		0.7			74.3			64.8
Balance at December 31, 2013		53.3			0.9			41.2			95.4
Amounts classified into accumulated other comprehensive (loss) income		(20.8	)		(1.5	)		(69.7	)		(92.0	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		(1.5	)		—			(8.6	)		(10.1	)
Net current period other comprehensive (loss) income		(22.3	)		(1.5	)		(78.3	)		(102.1	)
Balance at December 31, 2014		31.0			(0.6	)		(37.1	)		(6.7	)
Amounts classified into accumulated other comprehensive (loss) income		(44.3	)		4.5			(1.4	)		(41.2	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(1.8	)		(2.8	)		(4.6	)
Net current period other comprehensive (loss) income		(44.3	)		2.7			(4.2	)		(45.8	)
Balance at December 31, 2015	$	(13.3	)	$	2.1		$	(41.3	)	$	(52.5	)

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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Restructuring and Other Charges

Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

Stock-Based Compensation

13. Stock-Based Compensation

As of December 31, 2015, we had awards outstanding under two Long-Term Incentive Plans, the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan (the “Plan”) and the 2011 Long-Term Incentive Plan (the “2011 Plan”, and together with the Plan — the “Plans”). During 2013, our stockholders approved the Plan, which provides for the granting of stock options, performance share awards, restricted stock units, and other equity-based awards, to employees, directors and consultants. As of December 31, 2015, approximately 7 million shares of common stock remained authorized for issuance under the Plan. In addition, shares of common stock may be automatically added to the number of shares of common stock that may be issued as awards expire, are terminated, cancelled or forfeited, or are used to satisfy withholding taxes with respect to existing awards under the Plans. No new stock-based awards can be made under the 2011 Plan, but there are outstanding awards under the 2011 Plan that continue to vest and/or be exercisable. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares.

Pre-tax stock-based compensation expense from continuing operations was as follows:



(In millions)	2015		2014		2013
Stock option awards	$	7.4	$	7.8	$	7.9
Restricted stock units		13.4		11.8		9.6
Performance awards		5.9		7.6		6.5
Director awards		0.9		0.9		0.9
Total pre-tax expense		27.6		28.1		24.9
Tax benefit		9.9		10.5		9.1
Total after tax expense	$	17.7	$	17.6	$	15.8

Compensation costs that were capitalized in inventory were not material.

Restricted Stock Units

Restricted stock units have been granted to officers and certain employees of the Company and represent the right to receive unrestricted shares of Company common stock subject to continued employment. Restricted stock units granted to certain officers are also subject to attaining specific performance criteria. Compensation cost is recognized over the service period. We calculate the fair value of each restricted stock unit granted by using the average of the high and low share prices on the date of grant. Restricted stock units generally vest ratably over a three-year period.

A summary of activity with respect to restricted stock units outstanding under the Plans for the year ended December 31, 2015 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		842,937		$	30.79
Granted		427,715			47.38
Vested		(516,990	)		24.44
Forfeited		(67,636	)		43.30
Non-vested at December 31, 2015		686,026		$	44.69

The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2015 was approximately $17.8 million, and the weighted-average period of time over which this cost will be recognized is 1.9 years. The fair value of restricted stock units that vested during 2015, 2014 and 2013 was $24.9 million, $31.1 million and $26.9 million, respectively.

Stock Option Awards

Stock options were granted to officers and select employees of the Company and represent the right to purchase shares of Company common stock subject to continued employment through each vesting date.

All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. Stock options granted under the Plans generally vest over a three-year period and have a maturity of ten years from the grant date.

The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:



	2015		2014		2013
Current expected dividend yield		1.5%		1.5%		1.5%
Expected volatility		27.0%		32.0%		32.0%
Risk-free interest rate		1.8%		1.9%		1.1%
Expected term		6 years		6 years		6 years

The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, at a similar stage of life and with similar market capitalization because there is not sufficient historical volatility data for Fortune Brands common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. It is based on the simplified method from the Securities and Exchange Commission’s safe harbor guidelines. The dividend yield is based on the Company’s estimated dividend over the expected term. The weighted-average grant date fair value of stock options granted under the Plans during the years ended December 31, 2015, 2014 and 2013 was $11.58, $12.72 and $9.02, respectively.

A summary of Fortune Brands stock option activity related to Fortune Brands and our Former Parent employees for the year ended December 31, 2015 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2014		7,879,778		$	16.60
Granted		651,700			47.73
Exercised		(2,223,962	)		12.99
Expired/forfeited		(107,990	)		41.14
Outstanding at December 31, 2015		6,199,526		$	20.74

Options outstanding and exercisable at December 31, 2015 were as follows:



	Options Outstanding^(a)						Options Exercisable^(b)

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $12.99		2,391,073		3.4	$	11.02		2,391,073	$	11.02
13.00 to 20.00		2,191,678		5.5		15.64		2,191,678		15.64
20.01 to 47.87		1,616,775		8.2		42.02		508,623		36.66
		6,199,526		5.4	$	20.74		5,091,374	$	15.57

^(a)	At December 31, 2015, the aggregate intrinsic value of options outstanding was $215.5 million.

^(b)	At December 31, 2015, the weighted-average remaining contractual life of options exercisable was 4.7 years and the aggregate intrinsic value of options exercisable was $203.3 million.

The remaining unrecognized compensation cost related to unvested awards at December 31, 2015 was $6.4 million, and the weighted-average period of time over which this cost will be recognized is 1.6 years. The fair value of options that vested during the years ended December 31, 2015, 2014 and 2013 was $7.8 million, $9.8 million and $12.4 million, respectively. The intrinsic value of Fortune Brands stock options exercised in the years ended December 31, 2015, 2014 and 2013 was $78.0 million, $63.4 million and $97.1 million, respectively.

Performance Awards

Performance share awards were granted to officers and select employees of the Company under the Plans and represent the right to earn shares of Company common stock based on the achievement of various segment or company-wide performance conditions, including cumulative diluted earnings per share, average return on invested capital, average return on net tangible assets and cumulative operating income during the three-year performance period. Compensation cost is amortized into expense over the performance period, which is generally three years, and is based on the probability of meeting performance targets. The fair value of each performance share award is based on the average of the high and low stock price on the date of grant.

The following table summarizes information about performance share awards as of December 31, 2015, as well as activity during the year then ended, based on the target award amounts in the performance share award agreements:



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		595,700		$	30.06
Granted		163,400			47.52
Vested		(268,390	)		19.47
Forfeited		(47,610	)		37.10
Non-vested at December 31, 2015		443,100		$	42.15

The remaining unrecognized pre-tax compensation cost related to performance share awards at December 31, 2015 was approximately $6.4 million, and the weighted-average period of time over which this cost will be recognized is 1.6 years. The fair value of performance share awards that vested during 2015 was $11.8 million.

Director Awards

Stock awards are used as part of the compensation provided to outside directors under the Plan. Awards are issued annually in the second quarter. In addition, outside directors can elect to have director fees paid in stock or can elect to defer payment of stock. Compensation cost is expensed at the time of an award based on the fair value of a share at the date of the award. In 2015, 2014 and 2013, we awarded 19,695, 22,654 and 24,672 shares of Company common stock to outside directors with a weighted average fair value on the date of the award of $46.21, $40.01 and $36.47, respectively.

Defined Benefit Plans

12 Months Ended

Dec. 31, 2015

Defined Benefit Plans

14. Defined Benefit Plans

We have a number of pension plans in the United States, covering many of the Company’s employees, however most have been closed to new hires. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65, and also for payment of certain disability benefits. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee’s length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. Also, from time to time, we may make contributions in excess of the legal funding requirements.

In addition, the Company provides postretirement health care and life insurance benefits to certain retirees.



(In millions)	Pension Benefits						Postretirement Benefits

Obligations and Funded Status at December 31	2015			2014			2015			2014
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	808.6		$	662.3		$	20.1		$	34.2
Service cost		11.5			10.4			0.1			0.1
Interest cost		33.7			32.9			0.6			0.8
Plan amendments		—			—			0.1			(15.3	)
Actuarial (gain) loss		(54.1	)		133.1			(1.3	)		3.9
Participants’ contributions		—			—			—			0.3
Benefits paid		(31.4	)		(30.1	)		(2.6	)		(4.2	)
Medicare Part D reimbursement		—			—			0.3			0.4
Plan curtailment gain		(0.6	)		—			—			—
Plan settlement gain		—			—			(1.6	)		—
Foreign exchange		—			—			(0.1	)		(0.1	)
Projected benefit obligation at end of year	$	767.7		$	808.6		$	15.6		$	20.1
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	759.8		$	793.2
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	608.2		$	583.8		$	—		$	—
Actual return on plan assets		(18.2	)		52.0			—			—
Employer contributions		3.3			2.5			2.3			3.5
Participants’ contributions		—			—			—			0.3
Medicare Part D reimbursement		—			—			0.3			0.4
Benefits paid		(31.4	)		(30.1	)		(2.6	)		(4.2	)
Fair value of plan assets at end of year	$	561.9		$	608.2		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(205.8	)	$	(200.4	)	$	(15.6	)	$	(20.1	)

The accumulated benefit obligation exceeds the fair value of assets for all pension plans. The 2014 actuarial loss includes $0.9 million related to an acquired business.

Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits						Postretirement Benefits

(In millions)	2015			2014			2015			2014
Current benefit payment liability	$	(1.1	)	$	(1.0	)	$	(2.0	)	$	(2.6	)
Accrued benefit liability		(204.7	)		(199.4	)		(13.6	)		(17.5	)
Net amount recognized	$	(205.8	)	$	(200.4	)	$	(15.6	)	$	(20.1	)

In the third quarter of 2015, we recognized actuarial losses of $6.1 million related to curtailment accounting due to the sale of the Waterloo tool storage business in discontinued operations in addition to the $2.5 million of actuarial losses reflected below in net periodic benefit cost.

In the first quarter of 2014, we communicated our decision to amend certain postretirement benefit plans to reduce health benefits for certain current and retired employees. The reduction in accrued retiree benefit plan liabilities was $15.3 million and we recorded actuarial losses of $0.6 million and prior service credits of $3.5 million.

In the first half of 2013, we communicated our decision to amend certain postretirement benefit plans 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 $34.7 million in 2013, and we recognized actuarial losses of $4.0 million due to a decrease in the discount rate and a resulting lower threshold for loss recognition because of the reduced postretirement obligation. Liability reductions resulting from these benefit reductions are recorded as amortization of prior service credits in net income in accordance with accounting requirements. In addition, in the first quarter of 2013, we communicated to certain employees our decision to freeze an hourly pension plan by December 31, 2016. As a result, we remeasured our pension liability, updating our pension measurement assumptions, and recorded a $20.0 million reduction in the liability. The curtailment charge associated with this pension freeze was insignificant. See Note 12, “Accumulated Other Comprehensive (Loss) Income,” for information on the impact on accumulated other comprehensive income.

As of December 31 2015, we adopted the new Society of Actuaries MP-2015 mortality tables, resulting in a decrease in our postretirement obligations of approximately $0.5 million, and a corresponding decrease in deferred actuarial losses in accumulated other comprehensive income. As of December 31 2014, we adopted the Society of Actuaries RP-2014 mortality tables, resulting in an increase in our postretirement obligations of approximately $48 million, and a corresponding increase in deferred actuarial losses in accumulated other comprehensive income.

The amounts in accumulated other comprehensive income on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:



(In millions)	Pension Benefits			Postretirement Benefits
Net actuarial gain at December 31, 2013	$	(34.3	)	$	(0.5	)
Recognition of actuarial loss		(12.5	)		(1.2	)
Current year actuarial gain		123.3			2.9
Net actuarial loss at December 31, 2014	$	76.5		$	1.2
Recognition of actuarial (loss) gain		(9.0	)		0.4
Current year actuarial gain (loss)		4.2			(1.3	)
Net actuarial loss due to curtailment		(0.6	)		—
Net actuarial loss at December 31, 2015	$	71.1		$	0.3
Net prior service cost (credit) at December 31, 2013	$	0.5		$	(33.5	)
Prior service credit recognition due to plan amendments		—			(15.3	)
Amortization		(0.1	)		27.6
Net prior service cost (credit) at December 31, 2014	$	0.4		$	(21.2	)
Prior service cost recognition due to plan amendments		—			0.1
Amortization		(0.1	)		13.5
Prior service cost recognition due to curtailment		(0.2	)		—
Prior service credit recognition due to settlement		—			1.2
Net prior service cost (credit) at December 31, 2015	$	0.1		$	(6.4	)
Total at December 31, 2015	$	71.2		$	(6.1	)

The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year are amortization of net prior service credits related pension benefits of zero and postretirement benefits of $(5.5) million.

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit Cost	Pension Benefits									Postretirement Benefits

(In millions)	2015			2014			2013			2015			2014			2013
Service cost	$	11.5		$	10.4		$	11.4		$	0.1		$	0.1		$	0.3
Interest cost		33.7			32.9			30.1			0.6			0.8			1.7
Expected return on plan assets		(40.2	)		(42.2	)		(41.8	)		—			—			—
Recognition of actuarial losses (gains)		2.9			12.5			0.8			(0.4	)		1.2			4.4
Amortization of prior service cost (credits)		0.1			0.1			0.1			(13.5	)		(27.6	)		(27.4	)
Curtailment and settlement losses		—			—			0.1			—			—			0.1
Net periodic benefit cost	$	8.0		$	13.7		$	0.7		$	(13.2	)	$	(25.5	)	$	(20.9	)



Assumptions	Pension Benefits			Postretirement Benefits

	2015	2014	2013	2015	2014	2013
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	4.6%	4.2%		4.1%	3.5%
Rate of compensation increase	4.0%	4.0%		—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.2%	5.0%	4.2%	3.5%	4.3%	3.7%
Expected long-term rate of return on plan assets	6.8%	7.4%	7.8%	—	—	—
Rate of compensation increase	4.0%	4.0%	4.0%	—	—	—



	Postretirement Benefits

	2015			2014
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31:
Health care cost trend rate assumed for next year		7.3/8.2	%^(a)		7.6/7.5	%^(a)
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		4.5	%
Year that the rate reaches the ultimate trend rate		2024			2022

^(a)	The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate.

A one-percentage-point change in assumed health care cost trend rates would have the following effects:



(In millions)	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost	$	—	$	(0.1	)
Effect on postretirement benefit obligation		1.2		(1.3	)

Plan Assets

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2015 were as follows:


(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	22.3	$	—	$	22.3
Commingled funds:
Cash and cash equivalents		5.8		5.8		—
Equity		249.1		249.1		—
Fixed income		233.8		233.8		—
Multi-strategy hedge funds		22.3		—		22.3
Real estate		28.6		—		28.6
Total	$	561.9	$	488.7	$	73.2

A reconciliation of Level 3 measurements as of December 31, 2015 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2015	$	21.8	$	21.6	$	25.1	$	68.5
Actual return on assets related to assets still held		0.5		0.7		3.5		4.7
December 31, 2015	$	22.3	$	22.3	$	28.6	$	73.2

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2014 were as follows:



(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	21.8	$	—	$	21.8
Commingled funds:
Cash and cash equivalents		9.1		9.1		—
Equity		282.6		282.6		—
Fixed income		248.0		248.0		—
Multi-strategy hedge funds		21.6		—		21.6
Real estate		25.1		—		25.1
Total	$	608.2	$	539.7	$	68.5

A reconciliation of Level 3 measurements as of December 31, 2014 was as follows:



			Commingled Funds
(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2014	$	21.2	$	20.5	$	22.8	$	64.5
Actual return on assets related to assets still held		0.6		1.1		2.3		4.0
December 31, 2014	$	21.8	$	21.6	$	25.1	$	68.5

Our defined benefit plans owns a variety of investment assets. Level 2 assets include primarily pooled funds, involving investments in fixed income and equity securities valued using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of actual purchase and sale transactions. Level 2 plan assets also include an unregistered money market fund that invests in a variety of cash and cash equivalents. Level 3 plan assets include a hedge fund-of-funds and a real estate fund that invests primarily in direct and indirect equity and debt investments in improved real properties, both of which are valued using the net asset value. Level 3 assets also include group annuity/insurance contracts valued at institutional evaluation prices consistent with industry practices. Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. A Master Trust was established to hold the assets of our domestic defined benefit plans. The defined benefit asset allocation policy of the trust allows for an equity allocation of 0% to 75%, a fixed income allocation of 25% to 100%, a cash allocation of up to 25% and other investments up to 20%. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.

Our 2016 expected blended long-term rate of return on plan assets of 6.8% was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants.

Estimated Future Retirement Benefit Payments

The following retirement benefit payments are expected to be paid:



(In millions)	Pension Benefits		Postretirement Benefits
2016	$	34.6	$	1.8
2017		36.2		1.1
2018		37.6		1.1
2019		39.5		1.0
2020		41.0		1.0
Years 2021-2025		226.4		4.6

Estimated future retirement benefit payments above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans.

Defined Contribution Plan Contributions

We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions by the Company related to these plans amounted to $18.3 million, $21.5 million and $18.7 million in 2015, 2014 and 2013, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Taxes

15. Income Taxes

The components of income from continuing operations before income taxes and noncontrolling interests were as follows:



(In millions)	2015		2014		2013
Domestic operations	$	387.7	$	301.4	$	243.8
Foreign operations		72.2		90.5		66.7
Income before income taxes and noncontrolling interests	$	459.9	$	391.9	$	310.5

A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision reported was as follows:



(In millions)	2015			2014			2013
Income tax expense computed at federal statutory income tax rate	$	161.0		$	137.2		$	108.7
Other income taxes, net of federal tax benefit		9.4			7.2			7.0
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(8.7	)		(13.4	)		(10.1	)
Tax benefit on income attributable to domestic production activities		(12.5	)		(7.6	)		(5.2	)
Net adjustments for uncertain tax positions		4.7			4.7			3.0
Net effect of rate changes on deferred taxes		0.2			(0.7	)		(1.6	)
Valuation allowance increase (decrease)		0.8			(4.1	)		2.1
Miscellaneous other, net		(1.5	)		(5.0	)		(2.4	)
Income tax expense as reported	$	153.4		$	118.3		$	101.5
Effective income tax rate		33.4	%		30.2	%		32.7	%

The effective income tax rates for 2015, 2014 and 2013 were favorably impacted by the tax benefit attributable to the Domestic Production Activity (Internal Revenue Code Section 199) Deduction, favorable tax rates in foreign jurisdictions, and a benefit associated with the various extensions of the U.S. research and development credit, offset by state and local taxes and increases to uncertain tax positions. The benefit associated with the favorable tax rates in foreign jurisdictions is affected by overall allocation of income, rate changes and impact of foreign exchange rates. In 2015, the effective income tax rate benefit from foreign tax rates was reduced, as compared to prior years, due to the overall allocation of income within foreign jurisdictions and an expiration of a favorable tax incentive that in total increased the effective foreign tax rate by 6%. The 2015 effective income tax rate was unfavorably impacted by $2.4 million related to nondeductible acquisition costs. The effective tax rate in 2014 was favorably impacted by the release of valuation allowances related to state net operating loss carryforwards of $4.1 million.

A reconciliation of the beginning and ending amount of unrecognized tax benefits (UTBs) was as follows:



(In millions)	2015			2014			2013
Unrecognized tax benefits — beginning of year	$	31.0		$	23.7		$	20.8
Gross additions — current year tax positions		4.6			8.7			4.4
Gross additions — prior year tax positions		8.3			2.2			0.7
Gross additions (reductions) — purchase accounting adjustments		0.1			(1.1	)		1.6
Gross reductions — prior year tax positions		(2.1	)		(2.5	)		(3.2	)
Gross reductions — settlements with taxing authorities		(3.6	)		—			(0.6	)
Impact of change in foreign exchange rates		(0.1	)		—			—
Unrecognized tax benefits — end of year	$	38.2		$	31.0		$	23.7

The amount of UTBs that, if recognized as of December 31, 2015, would affect the Company’s effective tax rate was $27.8 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $7.5 million to $12.5 million primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

We classify interest and penalty accruals related to UTBs as income tax expense. In 2015, we recognized an interest and penalty expense of approximately $1.0 million. In 2014, we recognized an interest and penalty expense of approximately $0.5 million. In 2013, we recognized an interest and penalty benefit of approximately $0.2 million. At December 31, 2015 and 2014, we had accruals for the payment of interest and penalties of $10.2 million and $10.7 million, respectively.

We file income tax returns in the U.S., various state and foreign jurisdictions. The Company is currently under examination by the U.S. Internal Revenue Service (“IRS”) for the periods related to 2011 through 2012. We have tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2010, Mexico for years after 2006 and China for years after 2011.

Income taxes in 2015, 2014 and 2013 were as follows:



(In millions)	2015			2014		2013
Current
Federal	$	130.6		$	86.9	$	96.3
Foreign		19.7			12.3		12.5
State and other		16.1			12.0		11.1
Deferred
Federal, state and other		(11.3	)		2.7		(20.2	)
Foreign		(1.7	)		4.4		1.8
Total income tax expense	$	153.4		$	118.3	$	101.5

The components of net deferred tax assets (liabilities) as of December 31, 2015 and 2014 were as follows:



(In millions)	2015			2014
Deferred tax assets:
Compensation and benefits	$	32.8		$	32.5
Defined benefit plans		84.4			83.9
Capitalized inventories		12.1			10.9
Accounts receivable		7.7			7.5
Other accrued expenses		23.7			17.2
Net operating loss and other tax carryforwards		39.9			15.8
Valuation allowance		(19.7	)		(12.0	)
Miscellaneous		6.1			3.7
Total deferred tax assets		187.0			159.5
Deferred tax liabilities:
LIFO inventories		(8.2	)		(9.3	)
Fixed assets		(48.5	)		(60.6	)
Identifiable intangible assets		(194.6	)		(205.0	)
Investment in partnership		(129.8	)		—
Miscellaneous		(0.2	)		(1.7	)
Total deferred tax liabilities		(381.3	)		(276.6	)
Net deferred tax liability	$	(194.3	)	$	(117.1	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2015 and 2014 as follows:



(In millions)	2015			2014
Other current assets	$	—		$	33.8
Other current liabilities		—			(2.4	)
Other assets		7.4			2.1
Deferred income taxes		(201.7	)		(150.6	)
Net deferred tax liability	$	(194.3	)	$	(117.1	)

In accordance with the ASU 2015-17, Balance Sheet Classification of Deferred Taxes, issued by the FASB on November 20, 2015, the Company has elected to adopt the provisions of the ASU, beginning with its year ended December 31, 2015. The Company has applied the provisions of this ASU on a prospective basis, and therefore, has not retrospectively adjusted its prior periods’ classification of deferred taxes. See ‘Recently Issued Accounting Standards’ section in Note 2 “Significant Accounting Policies” for more discussion on this early adoption of the standard.

Included in the Company’s 2015 components of net deferred tax liabilities is an investment in partnership resulting from the purchase of Norcraft, whose primary operating company is structured as a partnership.

As of December 31, 2015 and 2014, the Company had deferred tax assets relating to net operating losses, capital losses, and other tax carryforwards of $39.9 million and $15.8 million, respectively, of which approximately $10.1 million will expire between 2016 and 2020, and the remainder which will expire in 2021 and thereafter. Included in the tax loss carryforwards are net operating loss carryforwards acquired in the purchase of Norcraft.

The Company has provided a valuation allowance to reduce the carrying value of certain of these deferred tax assets, as management has concluded that, based on the available evidence, it is more likely than not that the deferred tax assets will not be fully realized.

The undistributed earnings of foreign subsidiaries that are considered indefinitely reinvested were $270.1 million at December 31, 2015. A quantification of the associated deferred tax liability on these undistributed earnings has not been made, as the determination of such liability is not practicable.

In October, 2011, we separated from our Former Parent. During 2012, we analyzed the subsidiary legal and capital structures inherited from our Former Parent to assess their compatibility with our strategies as a new independent company. Based on this analysis, in the fourth quarter of 2012, we committed to a plan to reorganize certain foreign subsidiaries and adjust their capital structures to better align with our business strategy as a new independent company. As part of this plan, we committed to a non-recurring remittance of certain foreign earnings and recorded an associated tax liability of $12.4 million. The remaining portion of this liability as of December 31, 2015 is $1.4 million. We have not provided deferred income taxes on the remaining undistributed earnings of foreign subsidiaries.

In general, under the Tax Allocation Agreement that we entered into with our Former Parent, Fortune Brands is responsible for all taxes to the extent such taxes are attributable to the Home & Security business, and we agreed to indemnify our Former Parent for these taxes. Our Former Parent will be responsible for all taxes to the extent such taxes are not attributable to the Fortune Brands business and our Former Parent has agreed to indemnify us for these taxes. Though valid as between the parties, the Tax Allocation Agreement will not be binding on the IRS or other taxing authorities.

Restructuring and Other Charges

12 Months Ended

Dec. 31, 2015

16. Restructuring and Other Charges

Pre-tax restructuring and other charges for the year ended December 31, 2015 were:



	Year Ended December 31, 2015
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.2	$	0.1	$	—	$	1.3
Plumbing		6.4		0.1		0.6		7.1
Security		8.1		5.3		—		13.4
Corporate		0.9		—		—		0.9
Total	$	16.6	$	5.5	$	0.6	$	22.7

^(a)

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

^(b)	Selling, general and administrative expenses

Restructuring and other charges in 2015 related to severance costs to relocate a plumbing manufacturing facility in China and severance costs and accelerated depreciation to relocate a manufacturing facility within our Security segment, as well as severance costs in the Security and Cabinets segments, as well as Corporate.

Pre-tax restructuring and other charges for the year ended December 31, 2014 were:



	Year Ended December 31, 2014
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	0.4	$	—	$	—	$	0.4
Plumbing		0.5		0.1		0.6		1.2
Security		4.1		—		—		4.1
Corporate		2.0		—		—		2.0
Total	$	7.0	$	0.1	$	0.6	$	7.7

^(a)

^(b)	Selling, general and administrative expenses

Restructuring and other charges in 2014 primarily resulted from severance charges in Security, Plumbing and Corporate, partially offset by a benefit from release of a foreign currency gain associated with the dissolution of a foreign entity in Plumbing.

Pre-tax restructuring and other charges for the year ended December 31, 2013 were:



	Year Ended December 31, 2013
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	2.2	$	0.1	$	—	$	2.3
Plumbing		0.6		0.6		0.2		1.4
Total	$	2.8	$	0.7	$	0.2	$	3.7

^(a)

^(b)	Selling, general and administrative expenses

2013 restructuring and other charges related to supply chain initiatives.

Reconciliation of Restructuring Liability



(In millions)	Balance at 12/31/14		2015 Provision		Cash Expenditures^(a)			Non-Cash Write-offs^(b)			Balance at 12/31/15
Workforce reduction costs	$	7.9	$	13.3	$	(11.2	)	$	0.4		$	10.4
Asset disposals		—		0.7		—			(0.7	)		—
Contract termination costs		—		0.2		—			(0.2	)		—
Other		—		2.4		(0.7	)		(1.2	)		0.5
	$	7.9	$	16.6	$	(11.9	)	$	(1.7	)	$	10.9

^(a)	Cash expenditures primarily related to severance charges.

^(b)	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions.



(In millions)	Balance at 12/31/13		2014 Provision			Cash Expenditures^(c)			Non-Cash Write-offs^(d)		Balance at 12/31/14
Workforce reduction costs	$	1.5	$	8.1		$	(3.1	)	$	1.4	$	7.9
Contract termination costs		0.4		—			(0.4	)		—		—
Other		—		(1.0	)		(0.4	)		1.5		—
	$	1.9	$	7.0		$	(3.9	)	$	2.9	$	7.9

^(c)	Cash expenditures primarily related to severance charges.

^(d)	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions and the benefit from release of a foreign currency gain associated with the dissolution of a foreign entity

Commitments

12 Months Ended

Dec. 31, 2015

Commitments

17. Commitments

Purchase Obligations

Purchase obligations of the Company as of December 31, 2015 were $332.9 million, of which $311.8 million is due within one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures.

Lease Commitments

Future minimum rental payments under non-cancelable operating leases as of December 31, 2015 were as follows:


(In millions)
2016	$	28.9
2017		23.0
2018		15.5
2019		11.9
2020		7.9
Remainder		27.0
Total minimum rental payments	$	114.2

Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $34.9 million, $33.4 million and $29.0 million in 2015, 2014 and 2013, respectively.

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 years ended December 31, 2015, 2014 and 2013.



(In millions)	2015			2014			2013
Reserve balance at the beginning of the year	$	13.0		$	10.3		$	9.4
Provision for warranties issued		29.9			24.9			18.3
Settlements made (in cash or in kind)		(28.3	)		(23.6	)		(17.4	)
Acquisition		1.6			1.4			—
Foreign currency		(0.2	)		—			—
Reserve balance at end of year	$	16.0		$	13.0		$	10.3

Information on Business Segments

12 Months Ended

Dec. 31, 2015

Information on Business Segments

18. Information on Business Segments

We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below.

The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Diamond, Kitchen Craft, Mid-Continent, Kitchen Classics, Schrock, Omega, Homecrest, Ultracraft and StarMark. In addition, cabinets are distributed under the Thomasville Cabinetry brand names. The Plumbing segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks and waste disposals predominantly under the Moen and Waste King brands. The Doors segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name and urethane millwork product lines under the Fypon brand name. The Security segment includes locks, safety and security devices and electronic security products under the Master Lock brand name and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand name. Corporate expenses consist of headquarter administrative expenses and defined benefit plans costs, primarily interest costs and expected return on plan assets, as well as actuarial gains and losses arising from periodic remeasurement of our liabilities. Corporate assets primarily consist of cash.

The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe.



(In millions)	2015		2014		2013
Net sales:
Cabinets	$	2,173.4	$	1,787.5	$	1,642.2
Plumbing		1,414.5		1,331.0		1,287.0
Doors		439.1		413.9		371.6
Security		552.4		481.2		402.8
Net sales	$	4,579.4	$	4,013.6	$	3,703.6

Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2015, 2014 and 2013. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 14%, 15% and 14% of net sales in 2015, 2014 and 2013, respectively. Net sales to Lowe’s were 14%, 14% and 14% of net sales in 2015, 2014 and 2013, respectively.



(In millions)	2015			2014			2013

Operating income:
Cabinets	$	192.4		$	137.9		$	97.1
Plumbing		285.4			258.9			228.3
Doors		44.0			29.2			15.3
Security		55.9			49.4			55.4
Less: Corporate expenses^(a)		(81.6	)		(71.9	)		(73.1	)
Operating income	$	496.1		$	403.5		$	323.0
^(a) Below is a table detailing Corporate expenses:
General and administrative expense	$	(70.1	)	$	(67.0	)	$	(78.0	)
Defined benefit plan income		6.1			8.8			10.1
Recognition of defined benefit plan actuarial losses		(2.5	)		(13.7	)		(5.2	)
Norcraft transaction costs^(b)		(15.1	)		—			—
Total Corporate expenses	$	(81.6	)	$	(71.9	)	$	(73.1	)

^(b)	Representing external costs directly related to the acquisition of Norcraft and primarily includes expenditures for banking, legal, accounting and other similar services.



(In millions)	2015			2014			2013
Total assets:
Cabinets	$	2,364.0		$	1,603.6		$	1,588.0
Plumbing		1,341.4			1,270.2			1,176.3
Doors		483.9			459.3			462.0
Security		520.7			528.5			361.8
Corporate		168.6			110.7			185.9
Continuing operations		4,878.6			3,972.3			3,774.0
Discontinued operations		—			80.6			404.1
Total assets	$	4,878.6		$	4,052.9		$	4,178.1

Depreciation expense:
Cabinets	$	38.1		$	31.0		$	29.3
Plumbing		21.3			18.5			16.7
Doors		11.2			11.7			11.4
Security		19.5			10.0			8.2
Corporate		3.4			2.0			1.3
Continuing operations		93.5			73.2			66.9
Discontinued operations		—			9.7			10.3
Depreciation expense	$	93.5		$	82.9		$	77.2

Amortization of intangible assets:
Cabinets	$	14.3		$	8.0		$	5.1
Plumbing		1.2			—			—
Doors		3.8			3.8			3.8
Security		2.3			1.3			0.5
Continuing operations		21.6			13.1			9.4
Discontinued operations		—			2.8			3.8
Amortization of intangible assets	$	21.6		$	15.9		$	13.2

Capital expenditures:
Cabinets	$	61.3		$	64.0		$	36.4
Plumbing		27.2			25.8			25.3
Doors		13.3			10.9			7.3
Security		17.3			16.2			12.6
Corporate		9.4			4.8			2.5
Continuing operations		128.5			121.7			84.1
Discontinued operations		—			5.8			12.6
Capital expenditures, gross		128.5			127.5			96.7
Less: proceeds from disposition of assets		(2.5	)		(0.7	)		(2.2	)
Capital expenditures, net	$	126.0		$	126.8		$	94.5

Net sales by geographic region^(a):
United States	$	3,892.9		$	3,313.1		$	3,046.5
Canada		385.1			405.8			413.2
China and other international		301.4			294.7			243.9
Net sales	$	4,579.4		$	4,013.6		$	3,703.6

Property, plant and equipment, net^(b):
United States	$	498.9		$	429.1		$	378.0
Mexico		74.2			72.5			50.8
Canada		39.4			28.4			29.4
China and other international		15.4			9.8			10.1
Property, plant and equipment, net	$	627.9		$	539.8		$	468.3

^(a)	Based on country of destination

^(b)	Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.

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.

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Earnings (Loss) Per Share

Quarterly Financial Data

12 Months Ended

Dec. 31, 2015

Quarterly Financial Data

19. Quarterly Financial Data

Unaudited

(In millions, except per share amounts)



2015	1^st			2^nd		3^rd		4^th		Full Year
Net sales	$	950.8		$	1,165.1	$	1,238.8	$	1,224.7	$	4,579.4
Gross profit		316.9			410.4		434.5		420.1		1,581.9
Operating income		67.3			128.2		160.3		140.3		496.1
Income from continuing operations, net of tax		40.9			78.0		100.0		87.6		306.5
Income (loss) from discontinued operations, net of tax		(0.6	)		1.4		7.8		0.4		9.0
Net income		40.3			79.4		107.8		88.0		315.5
Net income attributable to Fortune Brands		40.0			79.7		107.5		87.8		315.0
Basic earnings (loss) per common share
Continuing operations		0.26			0.49		0.62		0.55		1.92
Discontinued operations		(0.01	)		0.01		0.05		—		0.05
Net income attributable to Fortune Brands		0.25			0.50		0.67		0.55		1.97
Diluted earnings (loss) per common share
Continuing operations		0.25			0.48		0.61		0.54		1.88
Discontinued operations		—			0.01		0.05		—		0.05
Net income attributable to Fortune Brands		0.25			0.49		0.66		0.54		1.93



2014	1^st			2^nd		3^rd			4^th			Full Year
Net sales	$	889.1		$	1,027.2	$	1,057.7		$	1,039.6		$	4,013.6
Gross profit		295.3			361.8		368.0			341.8			1,366.9
Operating income		69.3			125.5		129.5			79.2			403.5
Income from continuing operations, net of tax		46.3			86.3		84.5			56.5			273.6
Income (loss) from discontinued operations, net of tax		(5.1	)		7.3		(105.4	)		(11.1	)		(114.3	)
Net income		41.2			93.6		(20.9	)		45.4			159.3
Net income attributable to Fortune Brands		40.8			93.3		(21.1	)		45.1			158.1
Basic earnings (loss) per common share
Continuing operations		0.28			0.52		0.53			0.36			1.68
Discontinued operations		(0.03	)		0.05		(0.66	)		(0.07	)		(0.70	)
Net income attributable to Fortune Brands		0.25			0.57		(0.13	)		0.29			0.98
Diluted earnings (loss) per common share
Continuing operations		0.27			0.51		0.52			0.35			1.64
Discontinued operations		(0.03	)		0.04		(0.65	)		(0.07	)		(0.69	)
Net income attributable to Fortune Brands		0.24			0.55		(0.13	)		0.28			0.95

In 2015, we recorded pre-tax defined benefit plan actuarial losses of $2.5 million — $2.8 million ($1.8 million after tax or $0.01 million per diluted share) in the third quarter, and $(0.3) million ($(0.2) million after tax or zero per diluted share) in the fourth quarter.

In 2014, we recorded pre-tax defined benefit plan actuarial losses of $13.7 million—$0.6 million ($0.4 million after tax or zero per diluted share) in the first quarter, $1.1 million ($0.7 million after tax or $0.01 million per diluted share) in the third quarter, and $12.0 million ($7.6 million after tax or $0.04 per diluted share) in the fourth quarter.

Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2015

20. Earnings Per Share

The computations of earnings (loss) per common share were as follows:



(In millions, except per share data)	2015		2014			2013
Income from continuing operations, net of tax	$	306.5	$	273.6		$	209.0
Less: Noncontrolling interests		0.5		1.2			1.2
Income from continuing operations for EPS		306.0		272.4			207.8
Income (loss) from discontinued operations		9.0		(114.3	)		21.9
Net income attributable to Fortune Brands	$	315.0	$	158.1		$	229.7
Earnings (loss) per common share
Basic
Continuing operations	$	1.92	$	1.68		$	1.26
Discontinued operations		0.05		(0.70	)		0.13
Net income attributable to Fortune Brands common stockholders	$	1.97	$	0.98		$	1.39
Diluted
Continuing operations	$	1.88	$	1.64		$	1.21
Discontinued operations		0.05		(0.69	)		0.13
Net income attributable to Fortune Brands common stockholders	$	1.93	$	0.95		$	1.34
Basic average shares outstanding		159.5		161.8			165.5
Stock-based awards		3.5		4.5			5.8
Diluted average shares outstanding		163.0		166.3			171.3
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.7		0.5			0.4

Other Expense, Net

12 Months Ended

Dec. 31, 2015

Other Expense, Net

21. Other Expense, Net

The components of other expense, net for the years ended December 31, 2015, 2014 and 2013 were as follows:



(In millions)	2015		2014			2013
Asset impairment charges	$	—	$	1.6		$	6.2
Other items, net		4.3		(0.4	)		(0.9	)
Total other expense, net	$	4.3	$	1.2		$	5.3

In 2014 and 2013, we recorded impairment charges of $1.6 million and $6.2 million, respectively, pertaining to different cost method investments due to an other-than-temporary declines in the fair value of the investments. As a result of the impairments, the carrying value of the investments was reduced to zero and the Company is not subject to further impairment or funding obligations with regard to this investment.

Contingencies

12 Months Ended

Dec. 31, 2015

Contingencies

22. Contingencies

Litigation

The Company is a defendant in lawsuits associated with the normal conduct of its businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’s results of operations, cash flows or financial condition, and, where appropriate, these actions are being vigorously contested. Accordingly the Company believes the likelihood of material loss is remote.

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 Fortune Brands. Several of our subsidiaries have been designated as potentially responsible parties (“PRP”) under “Superfund” or similar state laws. As of December 31, 2015, ten such instances have not been dismissed, settled or otherwise resolved. In calendar year 2015, none of our subsidiaries were identified as a PRP in any new instances and no instances were settled, dismissed or otherwise resolved. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have an adverse effect on our results of operations, cash flows or financial condition. At December 31, 2015 and 2014, we had accruals of $2.8 million, relating to environmental compliance and clean up including, but not limited to, the above mentioned Superfund sites.

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
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-Name Accounting Standards Codification
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-Paragraph 6
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Schedule II Valuation and Qualifying Accounts

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2015
Subsequent Event	23. Subsequent Event On February 16, 2016, the Company’s Board of Directors authorized the repurchase of up to $400 million of shares of the Company’s common stock over the two years ending February 16, 2018. The share repurchase programs do not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time.

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2015

Schedule II Valuation and Qualifying Accounts

For the years ended December 31, 2015, 2014 and 2013



(In millions)	Balance at Beginning of Period		Charged to Expense			Write-offs and Deductions^(a)		Business Acquisition^(b)		Balance at End of Period
2015:
Allowance for cash discounts, returns and sales allowances	$	45.1	$	150.7		$	145.5	$	—	$	50.3
Allowance for doubtful accounts		5.4		2.8			2.4		—		5.8
Allowance for deferred tax assets		12.0		6.4			—		1.3		19.7

2014:
Allowance for cash discounts, returns and sales allowances	$	33.9	$	129.6		$	118.4	$	—	$	45.1
Allowance for doubtful accounts		5.8		1.3			1.7		—		5.4
Allowance for deferred tax assets		19.8		(7.8	)		—		—		12.0

2013:
Allowance for cash discounts, returns and sales allowances	$	32.7	$	122.1		$	120.9	$	—	$	33.9
Allowance for doubtful accounts		7.9		0.5			2.6		—		5.8
Allowance for deferred tax assets		18.8		1.0			—		—		19.8

^(a)	Net of recoveries of amounts written off in prior years and immaterial foreign currency impact.

^(b)	Represents a valuation allowance on an acquired net operating loss carryforward (Norcraft Canada)

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less are included in cash and cash equivalents.

Allowances for Doubtful Accounts

Inventories

Property, Plant and Equipment

Long-lived Assets

Goodwill and Indefinite-lived Intangible Assets

Defined Benefit Plans

Litigation Contingencies

Income Taxes

Revenue Recognition

Cost of Products Sold

Customer Program Costs

Selling, General and Administrative Expenses

Stock-based Compensation

Earnings Per Share

Foreign Currency Translation

Derivative Financial Instruments

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Balance Sheet Classification of Deferred Taxes

Simplifying Accounting for Measurement-Period Adjustments

Simplifying Subsequent Measurement of Inventory

Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share

Simplifying the Presentation of Debt Issuance Costs

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

Revenue from Contracts with Customers

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Estimated Useful Lives of Property Plant and Equipment

Estimated useful lives of the related assets are as follows:

Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2015

Supplemental Information on Balance Sheets

Supplemental information on our year-end consolidated balance sheets is as follows:



(In millions)	2015		2014
Inventories:
Raw materials and supplies	$	237.8	$	178.1
Work in process		60.2		54.0
Finished products		257.6		230.1
Total inventories	$	555.6	$	462.2

Property, plant and equipment:
Land and improvements	$	56.2	$	48.5
Buildings and improvements to leaseholds		407.6		356.3
Machinery and equipment		1,005.6		920.2
Construction in progress		82.3		71.3
Property, plant and equipment, gross		1,551.7		1,396.3
Less: accumulated depreciation		923.8		856.5
Property, plant and equipment, net of accumulated depreciation	$	627.9	$	539.8

Other current liabilities:
Accrued salaries, wages and other compensation	$	118.0	$	69.8
Accrued customer programs		124.8		102.5
Accrued taxes		43.3		28.0
Other accrued expenses		126.8		121.7
Total other current liabilities	$	412.9	$	322.0

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Norcraft Companies, Inc [Member]

Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed

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



(In millions)
Accounts receivable	$	31.0
Inventories		28.4
Property, plant and equipment		45.7
Goodwill		304.7
Identifiable intangible assets		360.0
Other assets		9.4
Total assets		779.2
Deferred tax liabilities		101.4
Other liabilities and accruals		29.2
Net assets acquired^(a)	$	648.6

^(a)	Net assets exclude $15.5 million of cash transferred to the Company as the result of the Norcraft acquisition.

Proforma Consolidated Financial Information



(In millions, except per share amounts)	2015		2014
Net sales	$	4,721.8	$	4,387.8
Income from continuing operations		323.1		269.7
Basic earnings per common share	$	2.02	$	1.66
Diluted earnings per common share	$	1.98	$	1.61

WoodCrafters Home Products, LLC

Proforma Consolidated Financial Information



(In millions except per share amounts)	2013
Net sales	$	3,811.0
Net income attributable to Fortune Brands		240.8
Basic earnings per common share	$	1.45
Diluted earnings per common share	$	1.41

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2015

Summary of the Results of Discontinued Operations



(in millions)	2015			2014			2013
Net sales	$	78.2		$	369.4		$	453.8
(Loss) income from discontinued operations before income taxes	$	(16.0	)	$	(90.8	)	$	34.4
Income tax (benefit) expense		(25.0	)		23.5			12.5
Income (loss) from discontinued operations, net of tax	$	9.0		$	(114.3	)	$	21.9

The following table summarizes the major classes of assets and liabilities of Waterloo, which is reflected as a discontinued operation on the consolidated balance sheet as of December 31, 2014:



(in millions)	2014
Accounts receivable, net	$	40.1
Inventories		15.9
Other current assets		7.3
Total current assets		63.3
Property, plant and equipment, net		13.3
Other non-current assets		4.0
Total assets	$	80.6
Accounts payable	$	8.5
Other current liabilities		9.0
Total current liabilities		17.5
Other non-current liabilities		3.4
Total liabilities	$	20.9

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Change in Net Carrying Amount of Goodwill by Segment

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

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



(In millions)	Cabinets			Plumbing			Doors		Security			Total Goodwill
Balance at December 31, 2013^(a)	$	631.7		$	569.7		$	143.0	$	89.4		$	1,433.8
2014 translation adjustments		(2.7	)		—			—		(1.4	)		(4.1	)
Acquisition-related adjustments		1.1			25.9			—		11.1			38.1
Balance at December 31, 2014^(a)	$	630.1		$	595.6		$	143.0	$	99.1		$	1,467.8
2015 translation adjustments		(4.9	)		—			—		(2.7	)		(7.6	)
Acquisition-related adjustments		312.5			(17.0	)		—		(0.4	)		295.1
Balance at December 31, 2015^(a)	$	937.7		$	578.6		$	143.0	$	96.0		$	1,755.3

^(a)	Net of accumulated impairment losses of $399.5 million in the Doors segment.

Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2015 and 2014 were as follows:


	As of December 31, 2015							As of December 31, 2014
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets—tradenames	$	680.6	$	(42.0	)^(a)	$	638.6	$	542.7	$	(42.0	)^(a)	$	500.7
Amortizable intangible assets
Tradenames		19.1		(8.6	)		10.5		14.6		(6.4	)		8.2
Customer and contractual relationships		511.2		(177.4	)		333.8		294.2		(164.0	)		130.2
Patents/proprietary technology		54.7		(40.9	)		13.8		57.7		(40.3	)		17.4
Total		585.0		(226.9	)		358.1		366.5		(210.7	)		155.8
Total identifiable intangibles	$	1,265.6	$	(268.9	)	$	996.7	$	909.2	$	(252.7	)	$	656.5

^(a)	Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets.

Gross Carrying Value and Accumulated Amortization by Class of Indefinite Lived Intangible Assets

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2015 and 2014 were as follows:


	As of December 31, 2015							As of December 31, 2014
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets—tradenames	$	680.6	$	(42.0	)^(a)	$	638.6	$	542.7	$	(42.0	)^(a)	$	500.7
Amortizable intangible assets
Tradenames		19.1		(8.6	)		10.5		14.6		(6.4	)		8.2
Customer and contractual relationships		511.2		(177.4	)		333.8		294.2		(164.0	)		130.2
Patents/proprietary technology		54.7		(40.9	)		13.8		57.7		(40.3	)		17.4
Total		585.0		(226.9	)		358.1		366.5		(210.7	)		155.8
Total identifiable intangibles	$	1,265.6	$	(268.9	)	$	996.7	$	909.2	$	(252.7	)	$	656.5

^(a)	Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets.

External Debt and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2015

Components of External Long-Term Debt

The components of external long-term debt were as follows:



(In millions)	2015		2014
$400 million unsecured senior note due June 2020	$	397.7	$	—
$500 million unsecured senior note due June 2025		493.9		—
$975 million revolving credit agreement due July 2018		—		145.0
$525 million term loan due July 2018		280.0		525.0
Total debt		1,171.6		670.0
Less: current portion		—		26.3
Total long-term debt	$	1,171.6	$	643.7

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 835
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Fair Values of Derivative Instruments

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2015 and 2014 were:



		Fair Value

(In millions)	Location	2015		2014
Assets:
Foreign exchange contracts	Other current assets	$	6.7	$	5.1
Net investment hedges	Other current assets		0.1		0.5
	Total assets	$	6.8	$	5.6
Liabilities:
Foreign exchange contracts	Other current liabilities	$	3.1	$	5.4

Effects of Derivative Financial Instruments on Consolidated Statements of Income

The effects of derivative financial instruments on the consolidated statements of income in 2015, 2014 and 2013 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2015		2014			2013
Cash flow	Net sales	$	—	$	—		$	—
	Cost of products sold		3.6		0.5			1.9
	Other expense, net		—		(0.4	)		—
Fair value	Other expense, net		8.2		3.6			1.2
Total		$	11.8	$	3.7		$	3.1

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Carrying Value and Fair Value of Debt

The carrying value and fair value of debt as of December 31, 2015 and 2014 were as follows:



(In millions)	December 31, 2015				December 31, 2014

	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility	$	—	$	—	$	145.0	$	145.0
Notes payable to bank		0.8		0.8		—		—
Term loan, including current portion		280.0		280.0		525.0		525.0
Senior Notes, net of underwriting commissions and price discounts		891.6		894.1		—		—

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 were as follows:



(In millions)	Fair Value

	2015		2014
Assets:
Derivative asset financial instruments (level 2)	$	6.8	$	5.6
Deferred compensation program assets (level 2)		3.1		3.3
Total assets	$	9.9	$	8.9
Liabilities:
Derivative liability financial instruments (level 2)	$	3.1	$	5.4

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2015

Common Stock and Treasury Stock Activity

The number of shares of common stock and treasury stock and the share activity for 2015 and 2014 were as follows:



	Common Shares						Treasury Shares

	2015			2014			2015		2014
Balance at the beginning of the year		158,140,128			166,667,936			13,809,889		2,404,320
Stock plan shares issued		3,249,892			2,877,761			—		—
Shares surrendered by optionees		(392,921	)		(288,797	)		392,921		288,797
Common stock repurchases		(1,091,067	)		(11,116,772	)		1,091,067		11,116,772
Balance at the end of the year		159,906,032			158,140,128			15,293,877		13,809,889

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2015

Reclassifications Out of Accumulated Other Comprehensive (Loss) Income

The reclassifications out of accumulated other comprehensive (loss) income for the year ended December 31, 2015 and 2014 were as follows:



(In millions)

Details about Accumulated Other Comprehensive Income Components				Affected Line Item in the Consolidated Statements of Income

	2015			2014
Cumulative translation adjustments	$	—			1.5		Restructuring charges
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	4.0		$	0.5		Cost of products sold
		—			(0.4	)	Other expense, net
Commodity contracts		(0.4	)		—		Cost of products sold
		3.6			0.1		Total before tax
		(1.8	)		(0.1	)	Tax expense
	$	1.8		$	—		Net of tax
Defined benefit plan items
Amortization of prior service cost	$	13.4		$	27.5		(a)
Recognition of actuarial losses		(2.5	)		(13.7	)	(a)
Recognition of prior service in discontinued operations		1.0			—		(b)
Recognition of actuarial losses in discontinued operations		(6.1	)		—		(b)
		5.8			13.8		Total before tax
		(3.0	)		(5.2	)	Tax expense
	$	2.8		$	8.6		Net of tax
Total reclassifications for the period	$	4.6		$	10.1		Net of tax

^(a)	These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 14, “Defined Benefit Plans,” for additional information.

^(b)	These accumulated other comprehensive loss components are included in discontinued operations.

After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income

The after-tax components of and changes in accumulated other comprehensive (loss) income were as follows:



(In millions)	Foreign Currency Adjustments			Derivative Hedging Gain (Loss)			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2012	$	63.5		$	0.2		$	(33.1	)	$	30.6
Amounts classified into accumulated other comprehensive (loss) income		(10.2	)		2.0			87.8			79.6
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(1.3	)		(13.5	)		(14.8	)
Net current period other comprehensive (loss) income		(10.2	)		0.7			74.3			64.8
Balance at December 31, 2013		53.3			0.9			41.2			95.4
Amounts classified into accumulated other comprehensive (loss) income		(20.8	)		(1.5	)		(69.7	)		(92.0	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		(1.5	)		—			(8.6	)		(10.1	)
Net current period other comprehensive (loss) income		(22.3	)		(1.5	)		(78.3	)		(102.1	)
Balance at December 31, 2014		31.0			(0.6	)		(37.1	)		(6.7	)
Amounts classified into accumulated other comprehensive (loss) income		(44.3	)		4.5			(1.4	)		(41.2	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(1.8	)		(2.8	)		(4.6	)
Net current period other comprehensive (loss) income		(44.3	)		2.7			(4.2	)		(45.8	)
Balance at December 31, 2015	$	(13.3	)	$	2.1		$	(41.3	)	$	(52.5	)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Pre-Tax Stock-Based Compensation Expense from Continuing Operations

Pre-tax stock-based compensation expense from continuing operations was as follows:



(In millions)	2015		2014		2013
Stock option awards	$	7.4	$	7.8	$	7.9
Restricted stock units		13.4		11.8		9.6
Performance awards		5.9		7.6		6.5
Director awards		0.9		0.9		0.9
Total pre-tax expense		27.6		28.1		24.9
Tax benefit		9.9		10.5		9.1
Total after tax expense	$	17.7	$	17.6	$	15.8

Restricted Stock Units Activity

A summary of activity with respect to restricted stock units outstanding under the Plans for the year ended December 31, 2015 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		842,937		$	30.79
Granted		427,715			47.38
Vested		(516,990	)		24.44
Forfeited		(67,636	)		43.30
Non-vested at December 31, 2015		686,026		$	44.69

Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options

The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:



	2015		2014		2013
Current expected dividend yield		1.5%		1.5%		1.5%
Expected volatility		27.0%		32.0%		32.0%
Risk-free interest rate		1.8%		1.9%		1.1%
Expected term		6 years		6 years		6 years

Stock Option Activity

A summary of Fortune Brands stock option activity related to Fortune Brands and our Former Parent employees for the year ended December 31, 2015 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2014		7,879,778		$	16.60
Granted		651,700			47.73
Exercised		(2,223,962	)		12.99
Expired/forfeited		(107,990	)		41.14
Outstanding at December 31, 2015		6,199,526		$	20.74

Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2015 were as follows:



	Options Outstanding^(a)						Options Exercisable^(b)

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $12.99		2,391,073		3.4	$	11.02		2,391,073	$	11.02
13.00 to 20.00		2,191,678		5.5		15.64		2,191,678		15.64
20.01 to 47.87		1,616,775		8.2		42.02		508,623		36.66
		6,199,526		5.4	$	20.74		5,091,374	$	15.57

^(a)	At December 31, 2015, the aggregate intrinsic value of options outstanding was $215.5 million.

^(b)	At December 31, 2015, the weighted-average remaining contractual life of options exercisable was 4.7 years and the aggregate intrinsic value of options exercisable was $203.3 million.

Summarizes Information of Performance Share Awards



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		595,700		$	30.06
Granted		163,400			47.52
Vested		(268,390	)		19.47
Forfeited		(47,610	)		37.10
Non-vested at December 31, 2015		443,100		$	42.15

Defined Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Obligations and Funded Status



(In millions)	Pension Benefits						Postretirement Benefits

Obligations and Funded Status at December 31	2015			2014			2015			2014
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	808.6		$	662.3		$	20.1		$	34.2
Service cost		11.5			10.4			0.1			0.1
Interest cost		33.7			32.9			0.6			0.8
Plan amendments		—			—			0.1			(15.3	)
Actuarial (gain) loss		(54.1	)		133.1			(1.3	)		3.9
Participants’ contributions		—			—			—			0.3
Benefits paid		(31.4	)		(30.1	)		(2.6	)		(4.2	)
Medicare Part D reimbursement		—			—			0.3			0.4
Plan curtailment gain		(0.6	)		—			—			—
Plan settlement gain		—			—			(1.6	)		—
Foreign exchange		—			—			(0.1	)		(0.1	)
Projected benefit obligation at end of year	$	767.7		$	808.6		$	15.6		$	20.1
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	759.8		$	793.2
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	608.2		$	583.8		$	—		$	—
Actual return on plan assets		(18.2	)		52.0			—			—
Employer contributions		3.3			2.5			2.3			3.5
Participants’ contributions		—			—			—			0.3
Medicare Part D reimbursement		—			—			0.3			0.4
Benefits paid		(31.4	)		(30.1	)		(2.6	)		(4.2	)
Fair value of plan assets at end of year	$	561.9		$	608.2		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(205.8	)	$	(200.4	)	$	(15.6	)	$	(20.1	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits						Postretirement Benefits

(In millions)	2015			2014			2015			2014
Current benefit payment liability	$	(1.1	)	$	(1.0	)	$	(2.0	)	$	(2.6	)
Accrued benefit liability		(204.7	)		(199.4	)		(13.6	)		(17.5	)
Net amount recognized	$	(205.8	)	$	(200.4	)	$	(15.6	)	$	(20.1	)

Amounts in Accumulated Other Comprehensive Income that have not yet been Recognized as Components of Net Periodic Benefit Cost

The amounts in accumulated other comprehensive income on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows:



(In millions)	Pension Benefits			Postretirement Benefits
Net actuarial gain at December 31, 2013	$	(34.3	)	$	(0.5	)
Recognition of actuarial loss		(12.5	)		(1.2	)
Current year actuarial gain		123.3			2.9
Net actuarial loss at December 31, 2014	$	76.5		$	1.2
Recognition of actuarial (loss) gain		(9.0	)		0.4
Current year actuarial gain (loss)		4.2			(1.3	)
Net actuarial loss due to curtailment		(0.6	)		—
Net actuarial loss at December 31, 2015	$	71.1		$	0.3
Net prior service cost (credit) at December 31, 2013	$	0.5		$	(33.5	)
Prior service credit recognition due to plan amendments		—			(15.3	)
Amortization		(0.1	)		27.6
Net prior service cost (credit) at December 31, 2014	$	0.4		$	(21.2	)
Prior service cost recognition due to plan amendments		—			0.1
Amortization		(0.1	)		13.5
Prior service cost recognition due to curtailment		(0.2	)		—
Prior service credit recognition due to settlement		—			1.2
Net prior service cost (credit) at December 31, 2015	$	0.1		$	(6.4	)
Total at December 31, 2015	$	71.2		$	(6.1	)

Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit Cost	Pension Benefits									Postretirement Benefits

(In millions)	2015			2014			2013			2015			2014			2013
Service cost	$	11.5		$	10.4		$	11.4		$	0.1		$	0.1		$	0.3
Interest cost		33.7			32.9			30.1			0.6			0.8			1.7
Expected return on plan assets		(40.2	)		(42.2	)		(41.8	)		—			—			—
Recognition of actuarial losses (gains)		2.9			12.5			0.8			(0.4	)		1.2			4.4
Amortization of prior service cost (credits)		0.1			0.1			0.1			(13.5	)		(27.6	)		(27.4	)
Curtailment and settlement losses		—			—			0.1			—			—			0.1
Net periodic benefit cost	$	8.0		$	13.7		$	0.7		$	(13.2	)	$	(25.5	)	$	(20.9	)

Schedule of Assumptions Used



Assumptions	Pension Benefits			Postretirement Benefits

	2015	2014	2013	2015	2014	2013
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	4.6%	4.2%		4.1%	3.5%
Rate of compensation increase	4.0%	4.0%		—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.2%	5.0%	4.2%	3.5%	4.3%	3.7%
Expected long-term rate of return on plan assets	6.8%	7.4%	7.8%	—	—	—
Rate of compensation increase	4.0%	4.0%	4.0%	—	—	—

Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost



	Postretirement Benefits

	2015			2014
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31:
Health care cost trend rate assumed for next year		7.3/8.2	%^(a)		7.6/7.5	%^(a)
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		4.5	%
Year that the rate reaches the ultimate trend rate		2024			2022

^(a)	The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate.

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects:



(In millions)	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost	$	—	$	(0.1	)
Effect on postretirement benefit obligation		1.2		(1.3	)

Pension Assets by Major Category of Plan Assets and Type of Fair Value Measurement

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2015 were as follows:


(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	22.3	$	—	$	22.3
Commingled funds:
Cash and cash equivalents		5.8		5.8		—
Equity		249.1		249.1		—
Fixed income		233.8		233.8		—
Multi-strategy hedge funds		22.3		—		22.3
Real estate		28.6		—		28.6
Total	$	561.9	$	488.7	$	73.2

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2014 were as follows:



(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	21.8	$	—	$	21.8
Commingled funds:
Cash and cash equivalents		9.1		9.1		—
Equity		282.6		282.6		—
Fixed income		248.0		248.0		—
Multi-strategy hedge funds		21.6		—		21.6
Real estate		25.1		—		25.1
Total	$	608.2	$	539.7	$	68.5

Reconciliation of Level Three Measurements

A reconciliation of Level 3 measurements as of December 31, 2015 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2015	$	21.8	$	21.6	$	25.1	$	68.5
Actual return on assets related to assets still held		0.5		0.7		3.5		4.7
December 31, 2015	$	22.3	$	22.3	$	28.6	$	73.2

A reconciliation of Level 3 measurements as of December 31, 2014 was as follows:



			Commingled Funds
(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2014	$	21.2	$	20.5	$	22.8	$	64.5
Actual return on assets related to assets still held		0.6		1.1		2.3		4.0
December 31, 2014	$	21.8	$	21.6	$	25.1	$	68.5

Schedule of Expected Benefit Payments

The following retirement benefit payments are expected to be paid:



(In millions)	Pension Benefits		Postretirement Benefits
2016	$	34.6	$	1.8
2017		36.2		1.1
2018		37.6		1.1
2019		39.5		1.0
2020		41.0		1.0
Years 2021-2025		226.4		4.6

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Loss Income Before Income Taxes and Noncontrolling Interests

The components of income from continuing operations before income taxes and noncontrolling interests were as follows:



(In millions)	2015		2014		2013
Domestic operations	$	387.7	$	301.4	$	243.8
Foreign operations		72.2		90.5		66.7
Income before income taxes and noncontrolling interests	$	459.9	$	391.9	$	310.5

Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations

A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision reported was as follows:



(In millions)	2015			2014			2013
Income tax expense computed at federal statutory income tax rate	$	161.0		$	137.2		$	108.7
Other income taxes, net of federal tax benefit		9.4			7.2			7.0
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(8.7	)		(13.4	)		(10.1	)
Tax benefit on income attributable to domestic production activities		(12.5	)		(7.6	)		(5.2	)
Net adjustments for uncertain tax positions		4.7			4.7			3.0
Net effect of rate changes on deferred taxes		0.2			(0.7	)		(1.6	)
Valuation allowance increase (decrease)		0.8			(4.1	)		2.1
Miscellaneous other, net		(1.5	)		(5.0	)		(2.4	)
Income tax expense as reported	$	153.4		$	118.3		$	101.5
Effective income tax rate		33.4	%		30.2	%		32.7	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (UTBs) was as follows:



(In millions)	2015			2014			2013
Unrecognized tax benefits — beginning of year	$	31.0		$	23.7		$	20.8
Gross additions — current year tax positions		4.6			8.7			4.4
Gross additions — prior year tax positions		8.3			2.2			0.7
Gross additions (reductions) — purchase accounting adjustments		0.1			(1.1	)		1.6
Gross reductions — prior year tax positions		(2.1	)		(2.5	)		(3.2	)
Gross reductions — settlements with taxing authorities		(3.6	)		—			(0.6	)
Impact of change in foreign exchange rates		(0.1	)		—			—
Unrecognized tax benefits — end of year	$	38.2		$	31.0		$	23.7

Income Taxes

Income taxes in 2015, 2014 and 2013 were as follows:



(In millions)	2015			2014		2013
Current
Federal	$	130.6		$	86.9	$	96.3
Foreign		19.7			12.3		12.5
State and other		16.1			12.0		11.1
Deferred
Federal, state and other		(11.3	)		2.7		(20.2	)
Foreign		(1.7	)		4.4		1.8
Total income tax expense	$	153.4		$	118.3	$	101.5

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2015 and 2014 were as follows:



(In millions)	2015			2014
Deferred tax assets:
Compensation and benefits	$	32.8		$	32.5
Defined benefit plans		84.4			83.9
Capitalized inventories		12.1			10.9
Accounts receivable		7.7			7.5
Other accrued expenses		23.7			17.2
Net operating loss and other tax carryforwards		39.9			15.8
Valuation allowance		(19.7	)		(12.0	)
Miscellaneous		6.1			3.7
Total deferred tax assets		187.0			159.5
Deferred tax liabilities:
LIFO inventories		(8.2	)		(9.3	)
Fixed assets		(48.5	)		(60.6	)
Identifiable intangible assets		(194.6	)		(205.0	)
Investment in partnership		(129.8	)		—
Miscellaneous		(0.2	)		(1.7	)
Total deferred tax liabilities		(381.3	)		(276.6	)
Net deferred tax liability	$	(194.3	)	$	(117.1	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2015 and 2014 as follows:



(In millions)	2015			2014
Other current assets	$	—		$	33.8
Other current liabilities		—			(2.4	)
Other assets		7.4			2.1
Deferred income taxes		(201.7	)		(150.6	)
Net deferred tax liability	$	(194.3	)	$	(117.1	)

Restructuring and Other Charges (Tables)

12 Months Ended

Dec. 31, 2015

Pre Tax Restructuring and Other Charges

Pre-tax restructuring and other charges for the year ended December 31, 2015 were:



	Year Ended December 31, 2015
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.2	$	0.1	$	—	$	1.3
Plumbing		6.4		0.1		0.6		7.1
Security		8.1		5.3		—		13.4
Corporate		0.9		—		—		0.9
Total	$	16.6	$	5.5	$	0.6	$	22.7

^(a)

^(b)	Selling, general and administrative expenses

Pre-tax restructuring and other charges for the year ended December 31, 2014 were:



	Year Ended December 31, 2014
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	0.4	$	—	$	—	$	0.4
Plumbing		0.5		0.1		0.6		1.2
Security		4.1		—		—		4.1
Corporate		2.0		—		—		2.0
Total	$	7.0	$	0.1	$	0.6	$	7.7

^(a)

^(b)	Selling, general and administrative expenses

Pre-tax restructuring and other charges for the year ended December 31, 2013 were:



	Year Ended December 31, 2013
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	2.2	$	0.1	$	—	$	2.3
Plumbing		0.6		0.6		0.2		1.4
Total	$	2.8	$	0.7	$	0.2	$	3.7

^(a)

^(b)	Selling, general and administrative expenses

Reconciliation of Restructuring Liability

Reconciliation of Restructuring Liability



(In millions)	Balance at 12/31/14		2015 Provision		Cash Expenditures^(a)			Non-Cash Write-offs^(b)			Balance at 12/31/15
Workforce reduction costs	$	7.9	$	13.3	$	(11.2	)	$	0.4		$	10.4
Asset disposals		—		0.7		—			(0.7	)		—
Contract termination costs		—		0.2		—			(0.2	)		—
Other		—		2.4		(0.7	)		(1.2	)		0.5
	$	7.9	$	16.6	$	(11.9	)	$	(1.7	)	$	10.9

^(a)	Cash expenditures primarily related to severance charges.

^(b)	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions.



(In millions)	Balance at 12/31/13		2014 Provision			Cash Expenditures^(c)			Non-Cash Write-offs^(d)		Balance at 12/31/14
Workforce reduction costs	$	1.5	$	8.1		$	(3.1	)	$	1.4	$	7.9
Contract termination costs		0.4		—			(0.4	)		—		—
Other		—		(1.0	)		(0.4	)		1.5		—
	$	1.9	$	7.0		$	(3.9	)	$	2.9	$	7.9

^(c)	Cash expenditures primarily related to severance charges.

^(d)	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions and the benefit from release of a foreign currency gain associated with the dissolution of a foreign entity

Commitments (Tables)

12 Months Ended

Dec. 31, 2015

Future Minimum Rental Payments under Non-Cancelable Operating Leases

Future minimum rental payments under non-cancelable operating leases as of December 31, 2015 were as follows:


(In millions)
2016	$	28.9
2017		23.0
2018		15.5
2019		11.9
2020		7.9
Remainder		27.0
Total minimum rental payments	$	114.2

The following table summarizes activity related to our product warranty liability for the years ended December 31, 2015, 2014 and 2013.



(In millions)	2015			2014			2013
Reserve balance at the beginning of the year	$	13.0		$	10.3		$	9.4
Provision for warranties issued		29.9			24.9			18.3
Settlements made (in cash or in kind)		(28.3	)		(23.6	)		(17.4	)
Acquisition		1.6			1.4			—
Foreign currency		(0.2	)		—			—
Reserve balance at end of year	$	16.0		$	13.0		$	10.3

Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2015

Net Sales and Operating Income by Segment

The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe.



(In millions)	2015		2014		2013
Net sales:
Cabinets	$	2,173.4	$	1,787.5	$	1,642.2
Plumbing		1,414.5		1,331.0		1,287.0
Doors		439.1		413.9		371.6
Security		552.4		481.2		402.8
Net sales	$	4,579.4	$	4,013.6	$	3,703.6



(In millions)	2015			2014			2013

Operating income:
Cabinets	$	192.4		$	137.9		$	97.1
Plumbing		285.4			258.9			228.3
Doors		44.0			29.2			15.3
Security		55.9			49.4			55.4
Less: Corporate expenses^(a)		(81.6	)		(71.9	)		(73.1	)
Operating income	$	496.1		$	403.5		$	323.0
^(a) Below is a table detailing Corporate expenses:
General and administrative expense	$	(70.1	)	$	(67.0	)	$	(78.0	)
Defined benefit plan income		6.1			8.8			10.1
Recognition of defined benefit plan actuarial losses		(2.5	)		(13.7	)		(5.2	)
Norcraft transaction costs^(b)		(15.1	)		—			—
Total Corporate expenses	$	(81.6	)	$	(71.9	)	$	(73.1	)

^(b)	Representing external costs directly related to the acquisition of Norcraft and primarily includes expenditures for banking, legal, accounting and other similar services.



(In millions)	2015			2014			2013
Total assets:
Cabinets	$	2,364.0		$	1,603.6		$	1,588.0
Plumbing		1,341.4			1,270.2			1,176.3
Doors		483.9			459.3			462.0
Security		520.7			528.5			361.8
Corporate		168.6			110.7			185.9
Continuing operations		4,878.6			3,972.3			3,774.0
Discontinued operations		—			80.6			404.1
Total assets	$	4,878.6		$	4,052.9		$	4,178.1

Depreciation expense:
Cabinets	$	38.1		$	31.0		$	29.3
Plumbing		21.3			18.5			16.7
Doors		11.2			11.7			11.4
Security		19.5			10.0			8.2
Corporate		3.4			2.0			1.3
Continuing operations		93.5			73.2			66.9
Discontinued operations		—			9.7			10.3
Depreciation expense	$	93.5		$	82.9		$	77.2

Amortization of intangible assets:
Cabinets	$	14.3		$	8.0		$	5.1
Plumbing		1.2			—			—
Doors		3.8			3.8			3.8
Security		2.3			1.3			0.5
Continuing operations		21.6			13.1			9.4
Discontinued operations		—			2.8			3.8
Amortization of intangible assets	$	21.6		$	15.9		$	13.2

Capital expenditures:
Cabinets	$	61.3		$	64.0		$	36.4
Plumbing		27.2			25.8			25.3
Doors		13.3			10.9			7.3
Security		17.3			16.2			12.6
Corporate		9.4			4.8			2.5
Continuing operations		128.5			121.7			84.1
Discontinued operations		—			5.8			12.6
Capital expenditures, gross		128.5			127.5			96.7
Less: proceeds from disposition of assets		(2.5	)		(0.7	)		(2.2	)
Capital expenditures, net	$	126.0		$	126.8		$	94.5

Net sales by geographic region^(a):
United States	$	3,892.9		$	3,313.1		$	3,046.5
Canada		385.1			405.8			413.2
China and other international		301.4			294.7			243.9
Net sales	$	4,579.4		$	4,013.6		$	3,703.6

Property, plant and equipment, net^(b):
United States	$	498.9		$	429.1		$	378.0
Mexico		74.2			72.5			50.8
Canada		39.4			28.4			29.4
China and other international		15.4			9.8			10.1
Property, plant and equipment, net	$	627.9		$	539.8		$	468.3

^(a)	Based on country of destination

^(b)	Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Quarterly Financial Data

(In millions, except per share amounts)



2015	1^st			2^nd		3^rd		4^th		Full Year
Net sales	$	950.8		$	1,165.1	$	1,238.8	$	1,224.7	$	4,579.4
Gross profit		316.9			410.4		434.5		420.1		1,581.9
Operating income		67.3			128.2		160.3		140.3		496.1
Income from continuing operations, net of tax		40.9			78.0		100.0		87.6		306.5
Income (loss) from discontinued operations, net of tax		(0.6	)		1.4		7.8		0.4		9.0
Net income		40.3			79.4		107.8		88.0		315.5
Net income attributable to Fortune Brands		40.0			79.7		107.5		87.8		315.0
Basic earnings (loss) per common share
Continuing operations		0.26			0.49		0.62		0.55		1.92
Discontinued operations		(0.01	)		0.01		0.05		—		0.05
Net income attributable to Fortune Brands		0.25			0.50		0.67		0.55		1.97
Diluted earnings (loss) per common share
Continuing operations		0.25			0.48		0.61		0.54		1.88
Discontinued operations		—			0.01		0.05		—		0.05
Net income attributable to Fortune Brands		0.25			0.49		0.66		0.54		1.93



2014	1^st			2^nd		3^rd			4^th			Full Year
Net sales	$	889.1		$	1,027.2	$	1,057.7		$	1,039.6		$	4,013.6
Gross profit		295.3			361.8		368.0			341.8			1,366.9
Operating income		69.3			125.5		129.5			79.2			403.5
Income from continuing operations, net of tax		46.3			86.3		84.5			56.5			273.6
Income (loss) from discontinued operations, net of tax		(5.1	)		7.3		(105.4	)		(11.1	)		(114.3	)
Net income		41.2			93.6		(20.9	)		45.4			159.3
Net income attributable to Fortune Brands		40.8			93.3		(21.1	)		45.1			158.1
Basic earnings (loss) per common share
Continuing operations		0.28			0.52		0.53			0.36			1.68
Discontinued operations		(0.03	)		0.05		(0.66	)		(0.07	)		(0.70	)
Net income attributable to Fortune Brands		0.25			0.57		(0.13	)		0.29			0.98
Diluted earnings (loss) per common share
Continuing operations		0.27			0.51		0.52			0.35			1.64
Discontinued operations		(0.03	)		0.04		(0.65	)		(0.07	)		(0.69	)
Net income attributable to Fortune Brands		0.24			0.55		(0.13	)		0.28			0.95

Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Computations of Earnings per Common Share

The computations of earnings (loss) per common share were as follows:



(In millions, except per share data)	2015		2014			2013
Income from continuing operations, net of tax	$	306.5	$	273.6		$	209.0
Less: Noncontrolling interests		0.5		1.2			1.2
Income from continuing operations for EPS		306.0		272.4			207.8
Income (loss) from discontinued operations		9.0		(114.3	)		21.9
Net income attributable to Fortune Brands	$	315.0	$	158.1		$	229.7
Earnings (loss) per common share
Basic
Continuing operations	$	1.92	$	1.68		$	1.26
Discontinued operations		0.05		(0.70	)		0.13
Net income attributable to Fortune Brands common stockholders	$	1.97	$	0.98		$	1.39
Diluted
Continuing operations	$	1.88	$	1.64		$	1.21
Discontinued operations		0.05		(0.69	)		0.13
Net income attributable to Fortune Brands common stockholders	$	1.93	$	0.95		$	1.34
Basic average shares outstanding		159.5		161.8			165.5
Stock-based awards		3.5		4.5			5.8
Diluted average shares outstanding		163.0		166.3			171.3
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.7		0.5			0.4

Other Expense, Net (Tables)

12 Months Ended

Dec. 31, 2015

Components of Other Expense , Net

The components of other expense, net for the years ended December 31, 2015, 2014 and 2013 were as follows:



(In millions)	2015		2014			2013
Asset impairment charges	$	—	$	1.6		$	6.2
Other items, net		4.3		(0.4	)		(0.9	)
Total other expense, net	$	4.3	$	1.2		$	5.3

Significant Accounting Policies - Additional Information (Detail) - USD ($)		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Significant Accounting Policies [Line Items]
Highly liquid investments included in cash and cash equivalents, maturity period		3 months
Allowances for doubtful accounts	$ 5,800,000	$ 5,800,000	$ 5,400,000
Inventories	555,600,000	555,600,000	462,200,000
Unrecognized tax benefits pertaining to uncertain tax positions	38,200,000	38,200,000	31,000,000	$ 23,700,000	$ 20,800,000
Selling, general and administrative expenses		1,047,600,000	943,300,000	938,700,000
Advertising costs		195,400,000	200,400,000	197,100,000
Research and development expenses		48,700,000	46,100,000	50,800,000
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	3,100,000	3,100,000
Debt issuance costs	3,000,000
Cash flow hedge [Member] \| Foreign exchange contracts [Member]
Significant Accounting Policies [Line Items]
Gain (loss) reclassified from Accumulated OCI into earnings		3,800,000	0	2,300,000
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	3,100,000	3,100,000
Shipping And Handling Expense
Significant Accounting Policies [Line Items]
Selling, general and administrative expenses		184,600,000	169,700,000	161,200,000
Advertising
Significant Accounting Policies [Line Items]
Selling, general and administrative expenses		132,200,000	133,600,000	140,300,000
Advertising costs, reduction to net sales		63,200,000	66,800,000	56,800,000
Selling, general and administrative expenses [Member]
Significant Accounting Policies [Line Items]
Customer program costs		43,200,000	43,400,000	$ 43,500,000
Minimum [Member]
Significant Accounting Policies [Line Items]
Reasonably possible decrease in unrecognized tax benefits	7,500,000	7,500,000
Maximum [Member]
Significant Accounting Policies [Line Items]
Reasonably possible decrease in unrecognized tax benefits	$ 12,500,000	$ 12,500,000
Income Approach
Significant Accounting Policies [Line Items]
Goodwill recoverability weighted percentage	80.00%	80.00%
Market Approach
Significant Accounting Policies [Line Items]
Goodwill recoverability weighted percentage	20.00%	20.00%
Metals inventories
Significant Accounting Policies [Line Items]
LIFO inventories	$ 227,900,000	$ 227,900,000	197,600,000
Inventories	$ 243,100,000	$ 243,100,000	$ 217,500,000

Significant Accounting Policies - Estimated Useful Lives of Property Plant and Equipment (Detail)	12 Months Ended
	Dec. 31, 2015
Building and Building Improvements \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	15 years
Building and Building Improvements \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	40 years
Machinery and Equipment \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	3 years
Machinery and Equipment \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	10 years
Software \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	3 years
Software \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	7 years

Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Inventories:

Raw materials and supplies

$ 237.8

$ 178.1

Work in process

60.2

54.0

Finished products

257.6

230.1

Total inventories

555.6

462.2

Property, plant and equipment:

Land and improvements

56.2

48.5

Buildings and improvements to leaseholds

407.6

356.3

Machinery and equipment

1,005.6

920.2

Construction in progress

82.3

71.3

Property, plant and equipment, gross

1,551.7

1,396.3

Less: accumulated depreciation

923.8

856.5

Property, plant and equipment, net of accumulated depreciation

^[1]

627.9

539.8

$ 468.3

Other current liabilities:

Accrued salaries, wages and other compensation

118.0

69.8

Accrued customer programs

124.8

102.5

Accrued taxes

43.3

28.0

Other accrued expenses

126.8

121.7

Total other current liabilities

$ 412.9

$ 322.0

[1]	Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.

Acquisitions - Additional Information (Detail) - USD ($)
$ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

May 31, 2015

Mar. 31, 2015

Jul. 31, 2014

Jun. 30, 2013

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 140.3

$ 160.3

$ 128.2

$ 67.3

$ 79.2

$ 129.5

$ 125.5

$ 69.3

$ 496.1

$ 403.5

$ 323.0

Payment to acquire business

1,224.7

$ 1,238.8

$ 1,165.1

$ 950.8

$ 1,039.6

$ 1,057.7

$ 1,027.2

$ 889.1

4,579.4

^[1]

4,013.6

^[1]

$ 3,703.6

^[1]

$ 6.0

295.1

38.1

Plumbing [Member]

Norcraft Companies, Inc [Member]

(17.0)

25.9

$ 648.6

Acquisition related transaction costs

28.0

15.1

Goodwill expected to be deductible for income tax purposes

258.0

60.3

Indefinite intangible assets, tradename

210.0

360.0

$ 150.0

150.0

Payment to acquire business

$ 15.5

Norcraft Companies, Inc [Member] | Operating Income

Inventory purchase accounting adjustment to fair value

$ 2.0

Norcraft Companies, Inc [Member] | Customer Relationships

Amortizable identifiable intangible assets, estimated useful life

20 years

Anaheim Manufacturing Company [Member]

Anaheim Manufacturing Company [Member] | Plumbing [Member]

$ 28.9

$ (17.0)

SentrySafe [Member]

WoodCrafters Home Products, LLC

$ 116.7

WoodCrafters Home Products, LLC | Customer Relationships

$ 302.0

Amortizable identifiable intangible assets, estimated useful life

$ 75.9

18 years

WoodCrafters Home Products, LLC | Technology

Amortizable identifiable intangible assets, estimated useful life

$ 9.6

10 years

[1]	Based on country of destination

Acquisitions - Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Millions

Dec. 31, 2015

May 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Norcraft Companies, Inc [Member]

^[1]

$ 1,755.3

$ 1,467.8

$ 1,433.8

Property, plant and equipment

Accounts receivable

$ 31.0

Inventories

28.4

45.7

304.7

Other liabilities and accruals

$ 150.0

360.0

Other assets

9.4

Total assets

779.2

Deferred tax liabilities

101.4

29.2

Net assets acquired

^[2]

$ 648.6

[1]	Net of accumulated impairment losses of $399.5 million in the Doors segment.
[2]	Net assets exclude $15.5 million of cash transferred to the Company as the result of the Norcraft acquisition.

Acquisitions - Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - USD ($) $ in Millions	1 Months Ended
	May 31, 2015	Mar. 31, 2015
Business Acquisition [Line Items]
Payment to acquire business		$ 6.0
Norcraft Companies, Inc [Member]
Business Acquisition [Line Items]
Payment to acquire business	$ 15.5

Acquisitions - Proforma Consolidated Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Net sales	$ 4,721.8	$ 4,387.8	$ 3,811.0
Income from continuing operations	$ 323.1	$ 269.7	$ 240.8
Basic earnings per common share	$ 2.02	$ 1.66	$ 1.45
Diluted earnings per common share	$ 1.98	$ 1.61	$ 1.41

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business		$ 12.2	$ 130.0
Gain on disposal of discontinued operations			111.2
Restructuring and impairment charges			10.7	$ 27.4
Waterloo [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business		14.0
Gain on disposal of discontinued operations		$ 7.0
Discontinued operation beginning period		Jan. 01, 2013
Pre-tax loss on sale of discontinued operations		$ 16.7
Transaction and other sale-related costs of discontinued operation		2.8
Estimated tax effect on sale of discontinued operation		$ 26.5
Restructuring and impairment charges			$ 14.1
Simonton Windows [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business	$ 130.0

Discontinued Operations - Summary of Operating Results and Summary of Major Classes of Assets and Liabilities Reflected as Discontinued Operations on Consolidated Comprehensive Income and Balance Sheet (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from discontinued operations, net of tax	$ 0.4	$ 7.8	$ 1.4	$ (0.6)	$ (11.1)	$ (105.4)	$ 7.3	$ (5.1)	$ 9.0	$ (114.3)	$ 21.9
Total current assets					63.3					63.3
Total current liabilities					17.5					17.5
Waterloo [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales									78.2
(Loss) income from discontinued operations before income taxes									(16.0)
Income tax (benefit) expense									(25.0)
Income (loss) from discontinued operations, net of tax									$ 9.0
Accounts receivable, net					40.1					40.1
Inventories					15.9					15.9
Other current assets					7.3					7.3
Total current assets					63.3					63.3
Property, plant and equipment, net					13.3					13.3
Other non-current assets					4.0					4.0
Total assets					80.6					80.6
Accounts payable					8.5					8.5
Other current liabilities					9.0					9.0
Total current liabilities					17.5					17.5
Other non-current liabilities					3.4					3.4
Total liabilities					$ 20.9					20.9
Waterloo and Simonton [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales										369.4	453.8
(Loss) income from discontinued operations before income taxes										(90.8)	34.4
Income tax (benefit) expense										23.5	12.5
Income (loss) from discontinued operations, net of tax										$ (114.3)	$ 21.9

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

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Identifiable intangible assets, tradenames

^[1]

$ 1,755.3

$ 1,467.8

$ 1,433.8

996.7

$ 656.5

Expected intangible amortization expense in 2016

26.0

Expected intangible amortization expense in 2017

24.0

Expected intangible amortization expense in 2018

22.0

Expected intangible amortization expense in 2019

21.0

Expected intangible amortization expense in 2020

21.0

Norcraft and Anaheim [Member]

Goodwill increase (decrease) due to acquisition-related adjustments

287.5

Increase in gross identifiable intangible assets acquired

$ 356.4

Minimum [Member] | Tradenames and Customer Relationship [Member]

Amortizable identifiable intangible assets, estimated useful life

3 years

Maximum [Member] | Tradenames and Customer Relationship [Member]

Amortizable identifiable intangible assets, estimated useful life

30 years

[1]	Net of accumulated impairment losses of $399.5 million in the Doors segment.

Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

^[1]

$ 1,467.8

$ 1,433.8

Translation adjustments

(7.6)

(4.1)

295.1

38.1

^[1]

1,755.3

1,467.8

Cabinets [Member]

^[1]

630.1

631.7

Translation adjustments

(4.9)

(2.7)

312.5

1.1

^[1]

937.7

630.1

Plumbing [Member]

^[1]

595.6

569.7

(17.0)

25.9

^[1]

578.6

595.6

Doors [Member]

^[1]

143.0

^[1]

143.0

Security [Member]

^[1]

99.1

89.4

Translation adjustments

(2.7)

(1.4)

(0.4)

11.1

^[1]

$ 96.0

$ 99.1

[1]	Net of accumulated impairment losses of $399.5 million in the Doors segment.

Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Doors [Member]
Goodwill [Line Items]
Accumulated impairment losses	$ 399.5

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

Dec. 31, 2015

Dec. 31, 2014

Gross Carrying Amounts, Total identifiable intangibles

$ 1,265.6

$ 909.2

Accumulated Amortization, Total identifiable intangibles

(268.9)

(252.7)

Net Book Value, Total identifiable intangibles

996.7

656.5

Gross Carrying Amounts, Indefinite-lived tradenames

680.6

542.7

Accumulated Amortization, Indefinite-lived tradenames

^[1]

(42.0)

Net Book Value, Indefinite-lived tradenames

638.6

500.7

585.0

366.5

(226.9)

(210.7)

358.1

155.8

Tradenames

19.1

14.6

(8.6)

(6.4)

Customer and contractual relationships [Member]

10.5

8.2

511.2

294.2

(177.4)

(164.0)

Patents/proprietary technology [Member]

333.8

130.2

54.7

57.7

(40.9)

(40.3)

$ 13.8

$ 17.4

[1]	Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles - Goodwill and Other Assets.

Asset Impairment Charges - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Asset Impairment Charges [Line Items]
Asset impairment charge	$ 0.0	$ 0.0	$ 21.2
Waterloo [Member]
Asset Impairment Charges [Line Items]
Asset impairment charge		9.1
Fixed Assets		8.1
Definite-lived intangible assets		$ 1.0

External Debt and Financing Arrangements - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Revolving credit facility, extended expiration date		2018-07
Term loan, extended expiration date		2018-07
Credit facility, minimum Consolidated Interest Coverage Ratio		3.00%
Maximum Leverage Ratio measured by debt to Adjusted EBITDA		350.00%
Increase Maximum Leverage Ratio		375.00%
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital		$ 25,700,000	$ 25,700,000
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding		$ 800,000	$ 0
Weighted-average interest rates on borrowings		1.00%	7.60%	12.30%
Current portion of long-term debt		$ 0	$ 26,300,000
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Senior unsecured notes, price	$ 900,000,000
Senior notes, outstanding amount		891,600,000
Senior Unsecured Notes [Member] \| Notes Due 2020 [Member]
Debt Instrument [Line Items]
Senior unsecured notes, price	$ 400,000,000
Senior unsecured notes, maturity period	5 years
Senior unsecured notes, maturity year	2020
Senior unsecured notes, coupon rate	3.00%
Senior Unsecured Notes [Member] \| Notes Due 2025 [Member]
Debt Instrument [Line Items]
Senior unsecured notes, price	$ 500,000,000
Senior unsecured notes, maturity period	10 years
Senior unsecured notes, maturity year	2025
Senior unsecured notes, coupon rate	4.00%
Senior Notes
Debt Instrument [Line Items]
Senior notes, outstanding amount		891,600,000
Long-term debt payments 2016		0
Long-term debt payments 2017		0
Long-term debt payments 2018		0
Long-term debt payments 2019		0
Long-term debt payments 2020		$ 400,000,000
LIBOR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR		1.00%
LIBOR [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR		2.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		$ 975,000,000
Term loan, outstanding borrowings		0	145,000,000
Term Loan Facilities [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		525,000,000
Term loan, outstanding borrowings		280,000,000	$ 525,000,000
Long-term debt payments 2016		0
Long-term debt payments 2017		52,500,000
Long-term debt payments 2018		227,500,000
Long-term debt payments 2019		0
Long-term debt payments 2020		$ 0

External Debt and Financing Arrangements - Components of External Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 1,171.6	$ 670.0
Less: current portion	0.0	26.3
Total long-term debt	1,171.6	643.7
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty [Member]
Debt Instrument [Line Items]
Long-term debt	397.7
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty Five [Member]
Debt Instrument [Line Items]
Long-term debt	493.9
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt		145.0
Term Loan Facilities [Member]
Debt Instrument [Line Items]
Long-term debt	$ 280.0	$ 525.0

External Debt and Financing Arrangements - Components of External Long-Term Debt (Parenthetical) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount			$ 900,000,000
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 400,000,000
Debt instrument, maturity date	2020-06
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty Five [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 500,000,000
Debt instrument, maturity date	2025-06
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 975,000,000	$ 975,000,000
Revolving credit facility, expiration date	2018-07	2018-07
Term Loan Facilities [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 525,000,000	$ 525,000,000
Debt instrument, maturity date	2018-07	2018-07

Financial Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Foreign exchange contracts period, minimum	12 months
Foreign exchange contracts period, maximum	15 months
Net settlement asset	$ 3,700,000
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	3,100,000
Foreign exchange contracts [Member]
Derivative [Line Items]
Notional amount of foreign currency derivative hedges	226,700,000
Cash flow hedge [Member]
Derivative [Line Items]
Net gains (losses) recognized in OCI	6,700,000	$ (1,300,000)
Cash flow hedge [Member] \| Foreign exchange contracts [Member]
Derivative [Line Items]
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	$ 3,100,000

Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 6.8	$ 5.6
Net investment hedges [Member] \| Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	0.1	0.5
Foreign exchange contracts [Member] \| Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	6.7	5.1
Foreign exchange contracts [Member] \| Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	$ 3.1	$ 5.4

Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ 11.8	$ 3.7	$ 3.1
Cash flow hedge [Member] \| Cost of products sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	3.6	0.5	1.9
Cash flow hedge [Member] \| Other expense, net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income		(0.4)
Fair value hedge [Member] \| Other expense, net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ 8.2	$ 3.6	$ 1.2

Fair Value Measurement - Carrying Value and Fair Value of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Revolving Credit Facility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Carrying Value	$ 0.0	$ 145.0
Fair Value		145.0
Term Loan Facilities [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Carrying Value	280.0	525.0
Fair Value	280.0	$ 525.0
Notes Payable to Banks [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Carrying Value	0.8
Fair Value	0.8
Senior Notes
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Carrying Value	891.6
Fair Value	$ 894.1

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

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

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets financial instruments (level 2)	$ 6.8	$ 5.6
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9.9	8.9
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets financial instruments (level 2)	6.8	5.6
Deferred compensation program assets (level 2)	3.1	3.3
Derivative liabilities financial instruments (level 2)	$ 3.1	$ 5.4

Fair Value Measurements - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Pre-tax indefinite-lived intangible assets impairment charges	$ 0	$ 0	$ 21,200,000

Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Stock [Line Items]
Common stock, shares authorized	750,000,000	750,000,000
Common Stock, par value	$ 0.01	$ 0.01
Percentage of increase in quarterly cash dividend	14.00%
Dividend declared, per share	$ 0.16
Preferred stock, shares authorized	60,000,000
Preferred stock, par value	$ 0.01
Common stock repurchases	1,091,067	11,116,772
Treasury stock purchases	$ 51.7	$ 439.8	$ 52.1
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 247.8

Capital Stock - Common Stock and Treasury Stock Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Common shares
Balance at the beginning of the year	158,140,128	166,667,936
Stock plan shares issued	3,249,892	2,877,761
Shares surrendered by optionees	(392,921)	(288,797)
Common stock repurchases	(1,091,067)	(11,116,772)
Balance at the end of the year	159,906,032	158,140,128
Treasury shares
Balance at the beginning of the year	13,809,889	2,404,320
Stock plan shares issued	0	0
Shares surrendered by optionees	392,921	288,797
Common stock repurchases	1,091,067	11,116,772
Balance at the end of the year	15,293,877	13,809,889

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

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Amortization of prior service cost

$ (16.6)

$ (7.0)

$ (2.8)

(13.4)

(27.5)

(27.3)

Income from continuing operations before income taxes

(2,997.5)

(2,646.7)

(2,408.5)

Other expense, net

(4.3)

(1.2)

(5.3)

459.9

391.9

310.5

Tax (expense) benefit

(153.4)

(118.3)

(101.5)

Reclassification out of Accumulated Other Comprehensive Income [Member]

$ 88.0

$ 107.8

$ 79.4

$ 40.3

$ 45.4

$ (20.9)

$ 93.6

$ 41.2

315.5

159.3

$ 230.9

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

Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Adjustments [Member]

4.6

10.1

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

Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Hedging Gain Loss [Member]

1.5

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

Other expense, net

(0.4)

Income from continuing operations before income taxes

3.6

0.1

Tax (expense) benefit

(1.8)

(0.1)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Hedging Gain Loss [Member] | Foreign exchange contracts [Member]

1.8

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

Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Hedging Gain Loss [Member] | Commodity contracts

4.0

0.5

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

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

(0.4)

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

Amortization of prior service cost

^[1]

13.4

27.5

Recognition of actuarial losses

^[1]

(2.5)

(13.7)

Income from continuing operations before income taxes

5.8

13.8

Tax (expense) benefit

(3.0)

(5.2)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Adjustments [Member] | Discontinued Operations

2.8

$ 8.6

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

Amortization of prior service cost

^[2]

1.0

Recognition of actuarial losses

^[2]

$ (6.1)

[1]	These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 14, "Defined Benefit Plans," for additional information.
[2]	These accumulated other comprehensive loss components are included in discontinued operations.

Accumulated Other Comprehensive (Loss) Income - After-Tax Components of and Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (6.7)	$ 95.4	$ 30.6
Amounts classified into accumulated other comprehensive (loss) income	(41.2)	(92.0)	79.6
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(4.6)	(10.1)	(14.8)
Net current period other comprehensive (loss) income	(45.8)	(102.1)	64.8
Balance at December 31, 2015	(52.5)	(6.7)	95.4
Foreign Currency Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	31.0	53.3	63.5
Amounts classified into accumulated other comprehensive (loss) income	(44.3)	(20.8)	(10.2)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		(1.5)
Net current period other comprehensive (loss) income	(44.3)	(22.3)	(10.2)
Balance at December 31, 2015	(13.3)	31.0	53.3
Derivative Hedging Gain Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(0.6)	0.9	0.2
Amounts classified into accumulated other comprehensive (loss) income	4.5	(1.5)	2.0
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(1.8)		(1.3)
Net current period other comprehensive (loss) income	2.7	(1.5)	0.7
Balance at December 31, 2015	2.1	(0.6)	0.9
Defined Benefit Plan Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(37.1)	41.2	(33.1)
Amounts classified into accumulated other comprehensive (loss) income	(1.4)	(69.7)	87.8
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(2.8)	(8.6)	(13.5)
Net current period other comprehensive (loss) income	(4.2)	(78.3)	74.3
Balance at December 31, 2015	$ (41.3)	$ (37.1)	$ 41.2

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.

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive Plan, common stock available for issuance	7,000,000
Incentive Plan, options vesting period	3 years
Incentive Plan, options maturity period	10 years
Incentive Plan, weighted-average grant date fair value of stock options granted	$ 11.58	$ 12.72	$ 9.02
Unrecognized compensation cost related to unvested option	$ 6.4
Fair value of options vested	7.8	$ 9.8	$ 12.4
Intrinsic value of stock options exercised	78.0	63.4	97.1
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost	$ 17.8
Unrecognized compensation cost, weighted-average recognition period	1 year 10 months 24 days
Fair value of performance share awards vested	$ 24.9	$ 31.1	$ 26.9
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, weighted-average recognition period	1 year 7 months 6 days
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost	$ 6.4
Unrecognized compensation cost, weighted-average recognition period	1 year 7 months 6 days
Fair value of performance share awards vested	$ 11.8
Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards issued	19,695	22,654	24,672
Common stock issued to outside directors	$ 46.21	$ 40.01	$ 36.47

Stock-Based Compensation - Pre-Tax Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 27.6	$ 28.1	$ 24.9
Tax benefit	9.9	10.5	9.1
Total after tax expense	17.7	17.6	15.8
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	7.4	7.8	7.9
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	13.4	11.8	9.6
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	5.9	7.6	6.5
Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 0.9	$ 0.9	$ 0.9

Stock-Based Compensation - Restricted Stock Units Activity (Detail)	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of Restricted Stock Units
Non-vested at December 31, 2014 \| shares	595,700
Granted \| shares	163,400
Forfeited \| shares	(47,610)
Non-vested at December 31, 2015 \| shares	443,100
Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014	$ 30.06
Granted	47.52
Vested	19.47
Forfeited	37.10
Non-vested at December 31, 2015	$ 42.15
Restricted Stock Units
Number of Restricted Stock Units
Non-vested at December 31, 2014 \| shares	842,937
Granted \| shares	427,715
Vested \| shares	(516,990)
Forfeited \| shares	(67,636)
Non-vested at December 31, 2015 \| shares	686,026
Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014	$ 30.79
Granted	47.38
Vested	24.44
Forfeited	43.30
Non-vested at December 31, 2015	$ 44.69

Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current expected dividend yield	1.50%	1.50%	1.50%
Expected volatility	27.00%	32.00%	32.00%
Risk-free interest rate	1.80%	1.90%	1.10%
Expected term	6 years	6 years	6 years

Stock-Based Compensation - Stock Option Activity (Detail)	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Options
Outstanding at December 31, 2014 \| shares	7,879,778
Granted \| shares	651,700
Exercised \| shares	(2,223,962)
Expired/forfeited \| shares	(107,990)
Outstanding at December 31, 2015 \| shares	6,199,526
Weighted-Average Exercise Price
Outstanding at December 31, 2014 \| $ / shares	$ 16.60
Granted \| $ / shares	47.73
Exercised \| $ / shares	12.99
Expired/forfeited \| $ / shares	41.14
Outstanding at December 31, 2015 \| $ / shares	$ 20.74

Stock-Based Compensation - Options Outstanding and Exercisable (Detail)

12 Months Ended

Dec. 31, 2015

$ / shares

Options Outstanding, Weighted-Average Remaining Contractual Life

6,199,526

^[1]

5 years 4 months 24 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 20.74

^[1]

Options Exercisable, Weighted-Average Exercise Price

5,091,374

^[2]

$ 15.57

^[2]

Exercise Price Range One

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]

Range of Exercise Prices, Lower limit

9.00

Range of Exercise Prices, upper limit

$ 12.99

Options Outstanding, Weighted-Average Remaining Contractual Life

2,391,073

^[1]

3 years 4 months 24 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 11.02

^[1]

Options Exercisable, Weighted-Average Exercise Price

2,391,073

^[2]

$ 11.02

^[2]

Exercise Price Range Two

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]

Range of Exercise Prices, Lower limit

13.00

Range of Exercise Prices, upper limit

$ 20.00

Options Outstanding, Weighted-Average Remaining Contractual Life

2,191,678

^[1]

5 years 6 months

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 15.64

^[1]

Options Exercisable, Weighted-Average Exercise Price

2,191,678

^[2]

$ 15.64

^[2]

Exercise Price Range Three

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]

Range of Exercise Prices, Lower limit

20.01

Range of Exercise Prices, upper limit

$ 47.87

Options Outstanding, Weighted-Average Remaining Contractual Life

1,616,775

^[1]

8 years 2 months 12 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 42.02

^[1]

Options Exercisable, Weighted-Average Exercise Price

508,623

^[2]

$ 36.66

^[2]

[1]	At December 31, 2015, the aggregate intrinsic value of options outstanding was $215.5 million.
[2]	At December 31, 2015, the weighted-average remaining contractual life of options exercisable was 4.7 years and the aggregate intrinsic value of options exercisable was $203.3 million.

Stock-Based Compensation - Options Outstanding and Exercisable (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, aggregate intrinsic value	$ 215.5
Options exercisable, weighted-average remaining contractual life	4 years 8 months 12 days
Options exercisable, aggregate intrinsic value	$ 203.3

Stock-Based Compensation - Summarizes Information of Performance Share Awards (Detail)	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at December 31, 2014 \| shares	595,700
Granted \| shares	163,400
Vested \| shares	(268,390)
Forfeited \| shares	(47,610)
Non-vested at December 31, 2015 \| shares	443,100
Non-vested at December 31, 2014 \| $ / shares	$ 30.06
Granted \| $ / shares	47.52
Vested \| $ / shares	19.47
Forfeited \| $ / shares	37.10
Non-vested at December 31, 2015 \| $ / shares	$ 42.15

Defined Benefit Plans - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($)	Mar. 31, 2014 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2015 USD ($) Age	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Actuarial loss related to acquisition					$ 0.9
Recognition of actuarial (losses) gains	$ (2.5)			$ (8.6)	(13.7)	$ (5.2)
Reduction in accrued retiree benefit plans			$ (34.7)
Defined benefit plans, blended long-term rate of return on plan assets				6.80%
Defined Contribution Plan, cash contributions				$ 18.3	21.5	$ 18.7
Postretirement Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains		$ (0.6)	(4.0)	1.3	(3.9)
Reduction in accrued retiree benefit plans		(15.3)		(0.1)	15.3
Defined benefit plans, curtailment charges		$ (3.5)
Defined benefit plans, amortization of net prior service credits				(5.5)
Pension Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains				54.1	(133.1)
Defined benefit plans, curtailment charges				0.6
Defined benefit plans, increase (decrease) in liability			$ (20.0)	(0.5)	$ 48.0
Defined benefit plans, amortization of net prior service credits				$ 0.0
Defined benefit plans, blended long-term rate of return on plan assets				6.80%	7.40%	7.80%
Pension Benefits [Member] \| Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plans, retirement benefits payment commencement age \| Age				55
Pension Benefits [Member] \| Maximum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plans, retirement benefits payment commencement age \| Age				65
Equity Securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, minimum				0.00%
Defined benefit asset allocation, maximum				75.00%
Fixed income
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, minimum				25.00%
Defined benefit asset allocation, maximum				100.00%
Cash and cash equivalents
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum				25.00%
Other Investment
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum				20.00%
Defined Benefit Plan Adjustments [Member] \| Waterloo [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains	$ (6.1)

Defined Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2014	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in the Projected Benefit Obligation (PBO):
Plan amendments			$ 34.7
Actuarial (gain) loss	$ 2.5			$ 8.6	$ 13.7	$ 5.2
Change in Plan Assets:
Fair value of plan assets at beginning of year				608.2
Fair value of plan assets at end of year				561.9	608.2
Pension Benefits [Member]
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year		$ 662.3		808.6	662.3
Service cost				11.5	10.4
Interest cost				33.7	32.9
Actuarial (gain) loss				(54.1)	133.1
Benefits paid				(31.4)	(30.1)
Plan curtailment gain				(0.6)
Projected benefit obligation at end of year				767.7	808.6	662.3
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)				759.8	793.2
Change in Plan Assets:
Fair value of plan assets at beginning of year		583.8		608.2	583.8
Actual return on plan assets				(18.2)	52.0
Employer contributions				3.3	2.5
Benefits paid				(31.4)	(30.1)
Fair value of plan assets at end of year				561.9	608.2	583.8
Funded status (Fair value of plan assets less PBO)				(205.8)	(200.4)
Postretirement Benefits [Member]
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year		34.2		20.1	34.2
Service cost				0.1	0.1
Interest cost				0.6	0.8
Plan amendments		15.3		0.1	(15.3)
Actuarial (gain) loss		0.6	$ 4.0	(1.3)	3.9
Participants' contributions					0.3
Benefits paid				(2.6)	(4.2)
Medicare Part D reimbursement				0.3	0.4
Plan curtailment gain		$ 3.5
Plan settlement gain				(1.6)
Foreign exchange				(0.1)	(0.1)
Projected benefit obligation at end of year				15.6	20.1	$ 34.2
Change in Plan Assets:
Employer contributions				2.3	3.5
Participants' contributions					0.3
Medicare Part D reimbursement				0.3	0.4
Benefits paid				(2.6)	(4.2)
Funded status (Fair value of plan assets less PBO)				$ (15.6)	$ (20.1)

Defined Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit liability	$ (218.4)	$ (216.9)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(1.1)	(1.0)
Accrued benefit liability	(204.7)	(199.4)
Net amount recognized	(205.8)	(200.4)
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(2.0)	(2.6)
Accrued benefit liability	(13.6)	(17.5)
Net amount recognized	$ (15.6)	$ (20.1)

Defined benefits Plans - Amounts in Accumulated Other Comprehensive Income that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2014	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss	$ 2.5			$ 8.6	$ 13.7	$ 5.2
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss				(54.1)	133.1
Net actuarial loss due to curtailment				(0.6)
Pension Benefits [Member] \| Other Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance		$ (34.3)		76.5	(34.3)
Actuarial (gain) loss				(9.0)	(12.5)
Current year actuarial gain				4.2	123.3
Net actuarial loss due to curtailment				(0.6)
Ending Balance				71.1	76.5	(34.3)
Beginning Balance		0.5		0.4	0.5
Amortization				(0.1)	(0.1)
Prior service cost recognition due to curtailment				(0.2)
Ending Balance				0.1	0.4	0.5
Total at December 31, 2015				71.2
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss		0.6	$ 4.0	(1.3)	3.9
Net actuarial loss due to curtailment		3.5
Postretirement Benefits [Member] \| Other Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance		(0.5)		1.2	(0.5)
Actuarial (gain) loss				0.4	(1.2)
Current year actuarial gain				(1.3)	2.9
Ending Balance				0.3	1.2	(0.5)
Beginning Balance		$ (33.5)		(21.2)	(33.5)
Prior service cost recognition due to plan amendments				0.1	(15.3)
Amortization				13.5	27.6
Prior service credit recognition due to settlement				1.2
Ending Balance				(6.4)	$ (21.2)	$ (33.5)
Total at December 31, 2015				$ (6.1)

Defined Benefit Plans - Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2014	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial losses (gains)	$ 2.5			$ 8.6	$ 13.7	$ 5.2
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost				11.5	10.4
Interest cost				33.7	32.9
Recognition of actuarial losses (gains)				(54.1)	133.1
Amortization of prior service cost (credits)				0.0
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost				0.1	0.1
Interest cost				0.6	0.8
Recognition of actuarial losses (gains)		$ 0.6	$ 4.0	(1.3)	3.9
Amortization of prior service cost (credits)				(5.5)
Net Periodic Benefit Cost \| Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost				11.5	10.4	11.4
Interest cost				33.7	32.9	30.1
Expected return on plan assets				(40.2)	(42.2)	(41.8)
Recognition of actuarial losses (gains)				2.9	12.5	0.8
Amortization of prior service cost (credits)				0.1	0.1	0.1
Curtailment and settlement losses						0.1
Net periodic benefit cost				8.0	13.7	0.7
Net Periodic Benefit Cost \| Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost				0.1	0.1	0.3
Interest cost				0.6	0.8	1.7
Recognition of actuarial losses (gains)				(0.4)	1.2	4.4
Amortization of prior service cost (credits)				(13.5)	(27.6)	(27.4)
Curtailment and settlement losses						0.1
Net periodic benefit cost				$ (13.2)	$ (25.5)	$ (20.9)

Defined Benefit Plans - Schedule of Assumptions Used (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Expected long-term rate of return on plan assets	6.80%
Pension Benefits [Member]
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	4.60%	4.20%
Rate of compensation increase	4.00%	4.00%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.20%	5.00%	4.20%
Expected long-term rate of return on plan assets	6.80%	7.40%	7.80%
Rate of compensation increase	4.00%	4.00%	4.00%
Postretirement Benefits [Member]
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	4.10%	3.50%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	3.50%	4.30%	3.70%

Defined Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost (Detail) - Postretirement Benefits [Member]

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Defined Benefit Plan Disclosure [Line Items]

Rate that the cost trend rate is assumed to decline (the ultimate trend rate)

4.50%

Year that the rate reaches the ultimate trend rate

2024

2022

Pre Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

7.30%

7.60%

Post Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

8.20%

7.50%

[1]	The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate.

Defined Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Effect on total of service and interest cost, 1-Percentage-Point Increase	$ 0.0
Effect on total of service and interest cost, 1-Percentage-Point Increase	1.2
Effect on total of service and interest cost, 1-Percentage-Point Decrease	(0.1)
Effect on total of service and interest cost, 1-Percentage-Point Decrease	$ (1.3)

Defined Benefit Plans - Pension Assets by Major Category of Plan Assets and Type of Fair Value Measurement (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	$ 561.9	$ 608.2
Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	22.3	21.8
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	5.8	9.1
Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	249.1	282.6
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	233.8	248.0
Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	22.3	21.6
Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	28.6	25.1
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	488.7	539.7
Level 2 [Member] \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	5.8	9.1
Level 2 [Member] \| Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	249.1	282.6
Level 2 [Member] \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	233.8	248.0
Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	73.2	68.5
Level 3 \| Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	22.3	21.8
Level 3 \| Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	22.3	21.6
Level 3 \| Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	$ 28.6	$ 25.1

Defined Benefit Plans - Reconciliation of Level Three Measurements (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	$ 68.5	$ 64.5
Actual return on assets related to assets still held	4.7	4.0
Ending balance	73.2	68.5
Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	21.8	21.2
Actual return on assets related to assets still held	0.5	0.6
Ending balance	22.3	21.8
Commingled Funds \| Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	21.6	20.5
Actual return on assets related to assets still held	0.7	1.1
Ending balance	22.3	21.6
Commingled Funds \| Real estate
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	25.1	22.8
Actual return on assets related to assets still held	3.5	2.3
Ending balance	$ 28.6	$ 25.1

Defined Benefit Plans - Schedule of Expected Benefit Payments (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2016	$ 34.6
2017	36.2
2018	37.6
2019	39.5
2020	41.0
Years 2021-2025	226.4
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2016	1.8
2017	1.1
2018	1.1
2019	1.0
2020	1.0
Years 2021-2025	$ 4.6

Income Taxes - Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Income Before Income Tax [Line Items]
Domestic operations	$ 387.7	$ 301.4	$ 243.8
Foreign operations	72.2	90.5	66.7
Income from continuing operations before income taxes	$ 459.9	$ 391.9	$ 310.5

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Line Items]
Reconciliation of income taxes	35.00%
Valuation allowances related to state net operating loss carryforwards		$ 4.1
Increase in effective foreign tax rate	6.00%
Effective income tax rate impact related to nondeductible acquisition costs	$ 2.4
Unrecognized tax benefits that would impact effective tax rate	27.8
Unrecognized tax expense (benefits), interest and penalty expense (benefit) recognized	1.0	0.5	$ (0.2)
Unrecognized tax benefits, accrued interest and penalties	10.2	10.7
Deferred tax assets, net operating losses and other tax carryforwards	39.9	$ 15.8
Deferred tax assets, net operating losses and other tax carryforwards	10.1
Undistributed earnings of foreign subsidiaries	270.1
Tax liability associated with remittance of certain foreign earnings	1.4			$ 12.4
Minimum [Member]
Income Taxes [Line Items]
Reasonably possible decrease in unrecognized tax benefits	$ 7.5
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period	2021
Maximum [Member]
Income Taxes [Line Items]
Reasonably possible decrease in unrecognized tax benefits	$ 12.5

Income Taxes - Reconciliation of Income Taxes at Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation Of Income Taxes [Line Items]
Income tax expense computed at federal statutory income tax rate	$ 161.0	$ 137.2	$ 108.7
Other income taxes, net of federal tax benefit	9.4	7.2	7.0
Foreign taxes at a different rate than U.S. federal statutory income tax rate	(8.7)	(13.4)	(10.1)
Tax benefit on income attributable to domestic production activities	(12.5)	(7.6)	(5.2)
Net adjustments for uncertain tax positions	4.7	4.7	3.0
Net effect of rate changes on deferred taxes	0.2	(0.7)	(1.6)
Valuation allowance increase (decrease)	0.8	(4.1)	2.1
Miscellaneous other, net	(1.5)	(5.0)	(2.4)
Income tax expense as reported	$ 153.4	$ 118.3	$ 101.5
Effective income tax rate	33.40%	30.20%	32.70%

Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Unrecognized Tax Benefits [Line Items]
Unrecognized tax benefits - beginning of year	$ 31.0	$ 23.7	$ 20.8
Gross additions - current year tax positions	4.6	8.7	4.4
Gross additions - prior year tax positions	8.3	2.2	0.7
Gross additions (reductions) - purchase accounting adjustments	0.1	(1.1)	1.6
Gross reductions - prior year tax positions	(2.1)	(2.5)	(3.2)
Gross reductions - settlements with taxing authorities	(3.6)		(0.6)
Impact of change in foreign exchange rates	(0.1)
Unrecognized tax benefits - end of year	$ 38.2	$ 31.0	$ 23.7

Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current
Federal	$ 130.6	$ 86.9	$ 96.3
Foreign	19.7	12.3	12.5
State and other	16.1	12.0	11.1
Deferred
Federal, state and other	(11.3)	2.7	(20.2)
Foreign	(1.7)	4.4	1.8
Income tax expense as reported	$ 153.4	$ 118.3	$ 101.5

Income Taxes - Components of Net Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Compensation and benefits	$ 32.8	$ 32.5
Defined benefit plans	84.4	83.9
Capitalized inventories	12.1	10.9
Accounts receivable	7.7	7.5
Other accrued expenses	23.7	17.2
Net operating loss and other tax carryforwards	39.9	15.8
Valuation allowance	(19.7)	(12.0)
Miscellaneous	6.1	3.7
Total deferred tax assets	187.0	159.5
Deferred tax liabilities:
LIFO inventories	(8.2)	(9.3)
Fixed assets	(48.5)	(60.6)
Identifiable intangible assets	(194.6)	(205.0)
Investment in partnership	(129.8)
Miscellaneous	(0.2)	(1.7)
Total deferred tax liabilities	(381.3)	(276.6)
Net deferred tax liability	(194.3)	(117.1)
Net deferred tax liability
Other current assets		33.8
Other current liabilities		(2.4)
Other assets	7.4	2.1
Deferred income taxes	(201.7)	(150.6)
Net deferred tax liability	$ (194.3)	$ (117.1)

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

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Operating Segments [Member]

$ 16.6

$ 7.0

$ 2.8

16.6

7.0

2.8

Operating Segments [Member] | Cabinets [Member]

22.7

7.7

3.7

1.2

0.4

2.2

Operating Segments [Member] | Plumbing [Member]

1.3

0.4

2.3

6.4

0.5

0.6

Operating Segments [Member] | Security [Member]

7.1

1.2

1.4

8.1

4.1

Operating Segments [Member] | Cost of products sold [Member]

13.4

4.1

Operating Segments [Member] | Cost of products sold [Member] | Cabinets [Member]

^[1]

5.5

0.1

0.7

Operating Segments [Member] | Cost of products sold [Member] | Plumbing [Member]

^[1]

0.1

Operating Segments [Member] | Cost of products sold [Member] | Security [Member]

^[1]

0.1

0.6

Operating Segments [Member] | Selling, general and administrative expenses [Member]

^[1]

5.3

Operating Segments [Member] | Selling, general and administrative expenses [Member] | Plumbing [Member]

^[1],[2]

0.6

0.2

^[1],[2]

0.6

$ 0.2

Corporate [Member]

0.9

2.0

$ 0.9

$ 2.0

[1]

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

[2]

Selling, general and administrative expenses

Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 7.9

$ 1.9

16.6

7.0

$ 2.8

^[1]

(11.9)

(3.9)

(1.7)

^[2]

2.9

^[3]

Workforce Reduction Costs [Member]

10.9

7.9

1.9

7.9

1.5

13.3

8.1

^[1]

(11.2)

(3.1)

0.4

^[2]

1.4

^[3]

10.4

7.9

1.5

Asset Disposals [Member]

0.7

Contract Termination Costs [Member]

^[2]

(0.7)

0.4

0.2

^[1]

(0.4)

^[2]

(0.2)

$ 0.4

Other [Member]

2.4

(1.0)

^[1]

(0.7)

(0.4)

(1.2)

^[2]

$ 1.5

^[3]

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ 0.5

[1]	Cash expenditures primarily related to severance charges.
[2]	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions.
[3]	Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions and the benefit from release of a foreign currency gain associated with the dissolution of a foreign entity

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitment And Contingencies [Line Items]
Purchase obligations	$ 332.9
Purchase obligations due in one year	311.8
Operating leases, rent expense net	$ 34.9	$ 33.4	$ 29.0

Commitments - Future Minimum Rental Payments under Non-Cancelable Operating Leases (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Schedule of Operating Leases [Line Items]
2016	$ 28.9
2017	23.0
2018	15.5
2019	11.9
2020	7.9
Remainder	27.0
Total minimum rental payments	$ 114.2

Commitments - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Product Warranty Liability [Line Items]
Reserve balance at the beginning of the year	$ 13.0	$ 10.3	$ 9.4
Provision for warranties issued	29.9	24.9	18.3
Settlements made (in cash or in kind)	(28.3)	(23.6)	(17.4)
Acquisition	1.6	1.4
Foreign currency	(0.2)
Reserve balance at end of year	$ 16.0	$ 13.0	$ 10.3

Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 1,224.7

$ 1,238.8

$ 1,165.1

$ 950.8

$ 1,039.6

$ 1,057.7

$ 1,027.2

$ 889.1

$ 4,579.4

^[1]

$ 4,013.6

^[1]

$ 3,703.6

^[1]

Recognition of defined benefit plan actuarial losses

140.3

160.3

$ 128.2

$ 67.3

79.2

$ 129.5

$ 125.5

$ 69.3

496.1

403.5

323.0

$ (2.5)

(8.6)

(13.7)

(5.2)

4,878.6

4,052.9

4,878.6

4,052.9

4,178.1

93.5

82.9

77.2

21.6

15.9

13.2

Less: proceeds from disposition of assets

128.5

127.5

96.7

(2.5)

(0.7)

(2.2)

Capital expenditures, net

126.0

126.8

94.5

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

^[2]

627.9

539.8

627.9

539.8

468.3

Continuing Operations

4,878.6

3,972.3

4,878.6

3,972.3

3,774.0

93.5

73.2

66.9

21.6

13.1

9.4

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

128.5

121.7

84.1

Discontinued Operations

80.6

404.1

9.7

10.3

2.8

3.8

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

5.8

12.6

United States

^[1]

3,892.9

3,313.1

3,046.5

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

^[2]

498.9

429.1

498.9

429.1

378.0

Canada

^[1]

385.1

405.8

413.2

China and Other International

^[2]

39.4

28.4

39.4

28.4

29.4

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

^[1]

301.4

294.7

243.9

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

^[2]

15.4

9.8

15.4

9.8

10.1

Mexico

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

^[2]

74.2

72.5

74.2

72.5

50.8

Corporate [Member]

General and administrative expense

^[3]

(81.6)

(71.9)

(73.1)

(70.1)

(67.0)

(78.0)

Defined benefit plan income

6.1

8.8

10.1

Recognition of defined benefit plan actuarial losses

(2.5)

(13.7)

(5.2)

Norcraft transaction costs

^[4]

(15.1)

Total Corporate expenses

(81.6)

(71.9)

(73.1)

168.6

110.7

168.6

110.7

185.9

3.4

2.0

1.3

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

9.4

4.8

2.5

Cabinets [Member]

2,364.0

1,603.6

2,364.0

1,603.6

1,588.0

38.1

31.0

29.3

14.3

8.0

5.1

Cabinets [Member] | Operating Segments [Member]

61.3

64.0

36.4

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

2,173.4

1,787.5

1,642.2

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

192.4

137.9

97.1

Plumbing [Member]

1,341.4

1,270.2

1,341.4

1,270.2

1,176.3

21.3

18.5

16.7

1.2

Plumbing [Member] | Operating Segments [Member]

27.2

25.8

25.3

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

1,414.5

1,331.0

1,287.0

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

285.4

258.9

228.3

Doors [Member]

483.9

459.3

483.9

459.3

462.0

11.2

11.7

11.4

3.8

Doors [Member] | Operating Segments [Member]

13.3

10.9

7.3

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

439.1

413.9

371.6

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

44.0

29.2

15.3

Security [Member]

$ 520.7

$ 528.5

520.7

528.5

361.8

19.5

10.0

8.2

2.3

1.3

0.5

Security [Member] | Operating Segments [Member]

17.3

16.2

12.6

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

552.4

481.2

402.8

Schedule Of Quarterly Financial Data [Line Items]

$ 55.9

$ 49.4

$ 55.4

[1]	Based on country of destination
[2]	Purchases of property, plant and equipment not yet paid for as of December 31, 2015, 2014 and 2013 were $16.1 million, $4.2 million and $0.2 million, respectively.
[3]	Below is a table detailing Corporate expenses: General and administrative expense $ (70.1 ) $ (67.0 ) $ (78.0 ) Defined benefit plan income 6.1 8.8 10.1 Recognition of defined benefit plan actuarial losses (2.5 ) (13.7 ) (5.2 ) Norcraft transaction costs(b) (15.1 ) - - Total Corporate expenses $ (81.6 ) $ (71.9 ) $ (73.1 )
[4]	Representing external costs directly related to the acquisition of Norcraft and primarily includes expenditures for banking, legal, accounting and other similar services.

Information on Business Segments - Additional Information (Detail) - Customer	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Number of customers accounted for greater than 10% of net sales	2	2	2
Customer Concentration Risk \| Net Sales \| The Home Depot, Inc.
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Percentage of net sales to major customer	14.00%	15.00%	14.00%
Customer Concentration Risk \| Net Sales \| Lowe's Companies, Inc
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Percentage of net sales to major customer	14.00%	14.00%	14.00%

Information on Business Segments - Net Sales and Operating Income by Segment (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Purchases of property,plant and equipment not yet paid	$ 16.1	$ 4.2	$ 0.2

Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 1,224.7

$ 1,238.8

$ 1,165.1

$ 950.8

$ 1,039.6

$ 1,057.7

$ 1,027.2

$ 889.1

$ 4,579.4

^[1]

$ 4,013.6

^[1]

$ 3,703.6

^[1]

Gross profit

420.1

434.5

410.4

316.9

341.8

368.0

361.8

295.3

1,581.9

1,366.9

Income from continuing operations, net of tax

140.3

160.3

128.2

67.3

79.2

129.5

125.5

69.3

496.1

403.5

323.0

87.6

100.0

78.0

40.9

56.5

84.5

86.3

46.3

306.5

273.6

209.0

Income (loss) from discontinued operations, net of tax

0.4

7.8

1.4

(0.6)

(11.1)

(105.4)

7.3

(5.1)

9.0

(114.3)

21.9

Net income attributable to Fortune Brands

88.0

107.8

79.4

40.3

45.4

(20.9)

93.6

41.2

315.5

159.3

$ 230.9

$ 87.8

$ 107.5

$ 79.7

$ 40.0

$ 45.1

$ (21.1)

$ 93.3

$ 40.8

$ 315.0

$ 158.1

Basic earnings (loss) per common share

Net income attributable to Fortune Brands

$ 0.55

$ 0.62

$ 0.49

$ 0.26

$ 0.36

$ 0.53

$ 0.52

$ 0.28

$ 1.92

$ 1.68

$ 1.26

Discontinued operations

0.05

0.01

(0.01)

(0.07)

(0.66)

0.05

(0.03)

0.05

(0.70)

0.13

0.55

0.67

0.50

0.25

0.29

(0.13)

0.57

0.25

1.97

0.98

1.39

Diluted earnings (loss) per common share