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^[1]

$ 5,283.3

$ 4,984.9

$ 4,579.4

Selling, general and administrative expenses

3,350.8

3,180.3

2,997.5

1,194.8

1,129.9

1,047.6

Loss on sale of product line (see Note 4)

31.7

28.1

21.6

2.4

Asset impairment charges

3.2

Income from continuing operations before income taxes

8.3

13.9

16.6

OPERATING INCOME

692.1

632.7

496.1

Interest expense

49.4

49.1

31.9

Other expense, net

7.9

1.5

4.3

634.8

582.1

459.9

Income taxes

159.5

169.7

153.4

Income from continuing operations, net of tax

475.3

412.4

306.5

(Loss) income from discontinued operations, net of tax

(2.6)

0.8

9.0

NET INCOME

472.7

413.2

315.5

Less: Noncontrolling interests

0.1

0.5

NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS

$ 472.6

$ 413.2

$ 315.0

Basic earnings (loss) per common share

Net income attributable to Fortune Brands common shareholders

$ 3.10

$ 2.67

$ 1.92

Discontinuing operations

(0.02)

0.01

0.05

3.08

2.68

1.97

Diluted earnings (loss) per common share

Net income attributable to Fortune Brands common shareholders

3.05

2.61

1.88

Discontinuing operations

(0.02)

0.01

0.05

$ 3.03

$ 2.62

$ 1.93

Basic average number of shares outstanding

153.2

154.3

159.5

Diluted average number of shares outstanding

155.8

157.8

163.0

Dividends declared per common share

$ 0.74

$ 0.66

$ 0.58

[1]	Based on country of destination

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net income

$ 472.7

$ 413.2

$ 315.5

Other comprehensive (loss) income, before tax:

Foreign currency translation adjustments

33.8

(14.7)

(44.3)

Unrealized (losses) gains on derivatives:

Unrealized holding (losses) gains arising during period

(1.8)

(6.7)

6.8

Less: reclassification adjustment for losses (gains) included in net income

(0.9)

3.5

(3.6)

Unrealized (losses) gains on derivatives

(2.7)

(3.2)

3.2

Defined benefit plans:

Prior service credit (cost) arising during period

12.1

(0.1)

Prior service credit (cost) recognition due to settlement and curtailment

0.1

(1.0)

Net actuarial gain (loss) arising during period

6.2

(1.9)

6.3

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

(5.1)

(13.5)

(13.4)

Defined benefit plans

1.1

(3.2)

(8.2)

Other comprehensive income (loss), before tax

32.2

(21.1)

(49.3)

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

^[1]

0.5

1.7

3.5

Other comprehensive income (loss), net of tax

32.7

(19.4)

(45.8)

COMPREHENSIVE INCOME

505.4

393.8

269.7

Less: comprehensive income attributable to noncontrolling interest

0.5

COMPREHENSIVE INCOME ATTRIBUTABLE TO FORTUNE BRANDS

$ 505.4

$ 393.8

$ 269.2

[1]	Income tax benefit (expense) on unrealized (losses) gains on derivatives of $0.9 million, $0.5 million and $(0.5) million and on defined benefit plans of $(0.4) million, $1.2 million and $4.0 million in 2017, 2016 and 2015, respectively.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unrealized (losses) gains on derivatives, tax	$ 0.9	$ 0.5	$ (0.5)
Defined benefit plans, tax	$ (0.4)	$ 1.2	$ 4.0

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Current assets

Cash and cash equivalents

$ 323.0

$ 251.5

Accounts receivable less allowances for discounts, doubtful accounts and returns

555.3

550.7

Inventories

580.8

531.1

Other current assets

142.6

111.9

TOTAL CURRENT ASSETS

1,601.7

1,445.2

Property, plant and equipment, net of accumulated depreciation

740.0

662.5

Other intangible assets, net of accumulated amortization

^[1]

1,912.0

1,833.8

1,162.4

1,107.0

Other assets

95.3

80.0

TOTAL ASSETS

5,511.4

5,128.5

Current liabilities

Accounts payable

428.8

393.8

Other current liabilities

478.0

449.0

TOTAL CURRENT LIABILITIES

906.8

842.8

Long-term debt

1,507.6

1,431.1

Deferred income taxes

166.8

163.5

Accrued defined benefit plans

175.9

216.2

Other non-current liabilities

153.2

111.9

TOTAL LIABILITIES

2,910.3

2,765.5

Commitments (Note 17) and Contingencies (Note 22)

Equity

Common stock

^[2]

1.7

Paid-in capital

2,724.9

2,653.8

Accumulated other comprehensive loss

(39.2)

(71.9)

Retained earnings

1,174.2

814.6

Treasury stock

(1,262.1)

(1,036.7)

TOTAL FORTUNE BRANDS EQUITY

2,599.5

2,361.5

Noncontrolling interests

1.6

1.5

TOTAL EQUITY

2,601.1

2,363.0

TOTAL LIABILITIES AND EQUITY

$ 5,511.4

$ 5,128.5

[1]	Net of accumulated impairment losses of $399.5 million in the Doors segment.
[2]	Common stock, par value $0.01 per share, 179.8 million shares and 177.7 million shares issued at December 31, 2017 and 2016, respectively.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2017	Dec. 31, 2016
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	179.8	177.7

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

OPERATING ACTIVITIES

Net income

$ 472.7

$ 413.2

$ 315.5

Non-cash expense (income):

Depreciation

98.6

94.6

93.5

Amortization of intangibles

31.7

28.1

21.6

Stock-based compensation

43.0

32.0

27.6

Loss (gain) on sale of property, plant and equipment

(0.1)

1.0

0.9

1.2

(0.5)

Loss on sale of product line

2.4

Asset impairment charges

15.3

Recognition of actuarial (gains) losses

(0.5)

1.9

8.6

Deferred taxes

(18.7)

(25.8)

(13.6)

Amortization of deferred financing costs

2.0

3.6

0.6

Changes in assets and liabilities including effects subsequent to acquisitions:

Decrease (increase) in accounts receivable

1.0

(39.1)

(6.9)

(Increase) decrease in inventories

(24.8)

52.4

(69.8)

Increase (decrease) in accounts payable

24.0

57.6

(16.0)

(Increase) decrease in other assets

(28.3)

10.7

(24.4)

(Decrease) increase in accrued taxes

(24.4)

0.3

6.7

Increase in accrued expenses and other liabilities

5.4

19.9

68.6

NET CASH PROVIDED BY OPERATING ACTIVITIES

600.3

650.5

429.2

INVESTING ACTIVITIES

Capital expenditures

^[1]

(165.0)

(149.3)

(128.5)

Proceeds from the disposition of assets

0.4

3.9

2.5

Proceeds from sale of product line

1.5

Cost of acquisitions, net of cash acquired

(124.6)

(239.7)

(652.8)

NET CASH USED IN INVESTING ACTIVITIES

(287.7)

(385.1)

(766.6)

FINANCING ACTIVITIES

(Decrease) increase in short-term debt

(1.1)

0.8

Issuance of long-term debt

640.0

1,065.0

1,748.9

Repayment of long-term debt

(565.0)

(805.0)

(1,250.0)

Proceeds from the exercise of stock options

28.5

25.5

28.9

Excess tax benefit from the exercise of stock-based compensation

30.7

Employee withholding taxes paid related to stock-based compensation

(10.6)

(10.1)

(18.1)

Deferred acquisition payments

(17.9)

Dividends to stockholders

(110.3)

(98.2)

(89.5)

Treasury stock purchases

(214.8)

(424.5)

(51.7)

Other financing activities, net

(2.0)

(1.2)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

(250.1)

(250.4)

398.8

Effect of foreign exchange rate changes on cash

9.0

(2.0)

(14.8)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

71.5

13.0

46.6

Cash and cash equivalents at beginning of year

251.5

238.5

191.9

Cash and cash equivalents at end of year

323.0

251.5

238.5

Cash paid during the year for:

Interest

44.4

43.7

26.0

Income taxes paid directly to taxing authorities

169.7

172.1

102.2

Income taxes (received from) paid to Fortune Brands, Inc.

(0.6)

2.0

Dividends declared but not paid

$ 30.4

$ 27.6

25.6

Discontinued Operations [Member]

Non-cash expense (income):

Loss on sale of product line

16.7

INVESTING ACTIVITIES

Proceeds from sale of product line

$ 12.2

[1]	Capital expenditures of $17.2 million, $11.9 million and $20.0 million that have not been paid as of December 31, 2017, 2016 and 2015, respectively, were excluded from the Statement of Cash Flows.

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capital expenditures incurred but not yet paid	$ 17.2	$ 11.9	$ 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, 2014	$ 2,263.1	$ 1.7	$ 2,517.3	$ (6.7)	$ 279.5	$ (532.3)	$ 3.6
Comprehensive income:
Net income	315.5				315.0		0.5
Other comprehensive (loss) income	(45.8)			(45.8)
Stock options exercised	28.9		28.9
Stock-based compensation	9.5		27.6			(18.1)
Tax benefit on exercise of stock options	28.4		28.4
Treasury stock purchase	(51.7)					(51.7)
Dividends ($0.58 per common share) in 2015, ($0.66 per common share) in 2016 and ($0.74 per common share) in 2017	(92.9)				(92.9)
Dividends paid to noncontrolling interests	(1.2)						(1.2)
Ending Balance at Dec. 31, 2015	2,453.8	1.7	2,602.2	(52.5)	501.6	(602.1)	2.9
Comprehensive income:
Net income	413.2				413.2
Other comprehensive (loss) income	(19.4)			(19.4)
Stock options exercised	25.5		25.5
Stock-based compensation	21.9		32.0			(10.1)
Treasury stock purchase	(424.5)					(424.5)
Dividends ($0.58 per common share) in 2015, ($0.66 per common share) in 2016 and ($0.74 per common share) in 2017	(100.2)				(100.2)
Dividends paid to noncontrolling interests	(1.4)						(1.4)
Other	(5.9)		(5.9)
Ending Balance at Dec. 31, 2016	2,363.0	1.7	2,653.8	(71.9)	814.6	(1,036.7)	1.5
Comprehensive income:
Net income	472.7				472.6		0.1
Other comprehensive (loss) income	32.7			32.7
Stock options exercised	28.5		28.5
Stock-based compensation	32.0		42.6			(10.6)
Treasury stock purchase	(214.8)					(214.8)
Dividends ($0.58 per common share) in 2015, ($0.66 per common share) in 2016 and ($0.74 per common share) in 2017	(113.0)				(113.0)
Ending Balance at Dec. 31, 2017	$ 2,601.1	$ 1.7	$ 2,724.9	$ (39.2)	$ 1,174.2	$ (1,262.1)	$ 1.6

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Dividends per Common share	$ 0.74	$ 0.66	$ 0.58

Background and Basis of Presentation

12 Months Ended

Dec. 31, 2017

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.

Basis of Presentation The consolidated financial statements in this Annual Report on Form 10-K have been derived from the accounts of the Company and its wholly-owned subsidiaries. The Company’s consolidated financial statements are based on a fiscal year ending December 31. Certain of the Company’s subsidiaries operate on a 52 or 53 week fiscal year ending during the month of December. In December 2017 and 2016, there were certain transactions that resulted in approximately $38 million and $49 million of net cash outflows, respectively, relating to payments made to third parties in the normal course of business during the period between the year-end of our wholly-owned subsidiaries and the Company’s year-end.

In October 2017, we acquired Victoria +Albert, a UK-based premium brand of standalone bathtubs, sink, tub fillers, faucets and other accessories. In July 2017, we acquired Shaws Since1897 Limited (“Shaws”), a UK-based luxury plumbing products company that specializes in manufacturing and selling fireclay sinks and selling brassware and accessories in partnership with Perrin & Rowe. The financial results of both of the acquisitions were included in the Company’s consolidated balance sheets as of December 31, 2017 and in the Company’s consolidated statements of income and statements of cash flow beginning in October 2017 and July 2017, respectively.

In September 2016, we acquired ROHL LLC (“ROHL”) and in a related transaction, we acquired TCL Manufacturing which gave us ownership of Perrin & Rowe Limited (“Perrin & Rowe”), and in May 2016, we acquired Riobel Inc (“Riobel”). The financial results of ROHL, Perrin & Rowe and Riobel were included in the Company’s consolidated balance sheets as of December 31, 2017 and 2016, and in the Company’s consolidated statements of income and statements of cash flow beginning in September 2016 and May 2016, respectively.

In September 2015, we completed the sale of Waterloo Industries, Inc. (“Waterloo”). 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 2015.

In May 2015, we acquired Norcraft Companies, Inc. (“Norcraft”). The financial results of Norcraft were included in the Company’s consolidated statements of income and statements of cash flow beginning in May 2015 and the consolidated balance sheets as of December 31, 2017 and 2016.

The cash flows from discontinued operations for 2017, 2016 and 2015 were not separately classified on the accompanying consolidated statements of cash flows. Information on Business Segments was revised to exclude these discontinued operations.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

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 $3.3 million and $7.4 million as of December 31, 2017 and 2016, 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, 2017 and 2016 were $245.6 million (with a current cost of $259.3 million) and $235.5 million (with a current cost of $244.4 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:


Buildings and leasehold improvements			15 to 40 years
Machinery and equipment			3 to 10 years
Software			3 to 7 years

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.

During 2017, we recorded an impairment of $5.1 million related to a long lived asset to be disposed of in selling, general and administrative expenses.

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 based on that difference, if any.

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 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 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 events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that lag our assumptions, actions of key customers, volatility of discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending and a decrease in royalty rates. We 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.

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. Service cost for 2017 relates to benefit accruals in an hourly Union defined benefit plan in our Security segment. Benefit accruals under all other defined benefit pension plans were frozen as of December 31, 2016.

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.

Insurance Reserves We provide for expenses associated with workers’ compensation and product liability obligations when such amounts are probable and can be reasonably estimated. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability.

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, 2017, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $87.5 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $1.5 million to $21.5 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued regarding the application of U.S. GAAP to situations where a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 on December 22, 2017 (the “Tax Act”). In accordance with SAB 118, we have calculated and included our best estimate of the impact of the Tax Act in our year end income tax provision. In accordance with our understanding of the Tax Act and guidance available, a provisional net tax benefit of $25.7 million was recorded in the fourth quarter of 2017. This provisional amount includes a tax benefit of $62.4 million due to the remeasurement of the Company’s net deferred tax liabilities, tax expense on deemed repatriation of foreign earnings of $28.5 million and tax expense of $8.2 million on foreign earnings not considered permanently reinvested. The impact of the Tax Act may differ from these estimates, possibly materially, due to, among other things, refinement of calculations due to additional analysis, changes in interpretations, assumptions made and additional guidance that may be issued. Any subsequent adjustment, related to the aforementioned, will be recorded in current tax expense when such analysis is completed or such guidance is issued.

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 $62.4 million, $44.1 million and $43.2 million for the years ended December 31, 2017, 2016 and 2015, 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 $204.7 million, $197.0 million and $184.6 million in 2017, 2016 and 2015, respectively.

Advertising costs, which amounted to $233.2 million, $199.1 million and $195.4 million in 2017, 2016 and 2015, respectively, are principally expensed as incurred. Advertising costs include product displays, marketing administration costs, media production costs and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $65.6 million, $52.5 million and $63.2 million in 2017, 2016 and 2015, respectively. Advertising costs recorded in selling, general and administrative expenses were $167.6 million, $146.6 million and $132.2 million in 2017, 2016 and 2015, respectively.

Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $50.7 million, $53.1 million and $48.7 million in 2017, 2016 and 2015, 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 share award is based on the average of the high and low share prices on the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the average of the high and low share prices on 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.

Deferred currency gains/(losses) of $0.4 million, $(3.5) million and $3.6 million (before tax impact) were reclassified into earnings for the year ended December 31, 2017, 2016 and 2015, respectively. Based on foreign exchange rates as of December 31, 2017, we estimate that $3.0 million of net currency derivative losses included in AOCI as of December 31, 2017 will be reclassified to earnings within the next twelve months.

Recently Issued Accounting Standards

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which clarifies the accounting for revenue arising from contracts with customers and specifies the disclosures that an entity should include in its financial statements. The standard is effective for annual reporting periods beginning after December 15, 2017 (calendar year 2018 for Fortune Brands). During 2016, the FASB issued certain amendments to the standard relating to the principal versus agent guidance, accounting for licenses of intellectual property and identifying performance obligations as well as the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. The effective date and transition requirements for these amendments are the same as those of the original ASU. Our key considerations pursuant to ASU 2014-09 during the assessment period were the control of goods (i.e., timing of revenue recognition), separate performance obligations and customer rights of return (i.e., the reclassification on the balance sheet of the customer rights of return from accounts receivable to a refund liability as well as the recognition of a corresponding asset). We will adopt the new standard using the modified retrospective method beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a “right-of-use” asset and lease liability but recognize related expenses in a manner similar to current accounting. The guidance also eliminates current real estate-specific provisions for all entities. The standard is effective for annual periods beginning after December 15, 2018 (calendar year 2019 for Fortune Brands) and earlier application is permitted. We are assessing the impact the adoption of this standard will have on our financial statements.

Clarifying Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets

In May 2017, the FASB issued ASU 2017-05 that clarifies the scope and application of various standards for the sale of nonfinancial assets (e.g. PP&E including real estate, intangible assets, materials and supplies). The standard distinguishes between a sale to customer vs non-customer. Sales to customers are in scope of the new revenue standard. It also clarifies a derecognition model for nonfinancial assets that do not represent a business. We will adopt the new standard beginning January 1, 2018 consistent with the effective date for the new revenue recognition standard. The adoption of the standard will not have a material effect on our financial statements.

Stock Compensation Scope of Modification Accounting

In May 2017, the FASB issued ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance provides a relief to entities that make non-substantive changes to their share-based payment awards and will result in fewer changes to the terms of an award being accounted for as modifications. We will adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Presentation of Net Periodic Pension and Postretirement Cost

In March 2017, the FASB issued ASU 2017-07, which requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Companies will present the other components (i.e., amortization of prior service cost/credits, interest cost, expected return on plan assets and actuarial gains/losses) separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. We will retrospectively adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business and therefore business combination guidance would apply. The new standard requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset (i.e., a business) or a group of similar identifiable assets (i.e., not a business). The guidance also requires a business to include at least one substantive process and narrows the definition of outputs (e.g., revenues with customers). We will adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, according to which entities are no longer required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The prior standard did not address the classification of activity related to restricted cash and restricted cash equivalents in the statement of cash flows and this has resulted in diversity in cash flows presentation. We will adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Intra-Entity Transfers of Assets Other Than Inventory

In October 2016, the FASB issued ASU 2016-16, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory (e.g., intangible assets) when the transfer occurs. Under the current guidance companies are required to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized (e.g., depreciated, amortized or impaired). We will adopt the new standard beginning January 1, 2018 using a “modified retrospective” (i.e., with a cumulative adjustment to retained earnings at adoption). The adoption of this standard will not have a material effect on our financial statements.

Classification of Certain Cash Receipts and Cash Payments

In September 2016 the FASB issued ASU 2016-15, which changes how an entity classifies certain cash receipts and cash payments on its statement of cash flows. The key changes that may potentially impact our financial statements include the following: 1) Cash payments for debt prepayment or extinguishment costs would be classified as financing cash outflows; 2) Contingent consideration payments that are not made within three months after the consummation of a business combination would be classified as financing (if the payment is made up to the acquisition date fair value of liability) or operating outflows (if in excess of acquisition fair value). Cash payments made “soon after” the consummation of a business combination generally would be classified as cash outflows for investing activities; 3) Insurance settlement proceeds would be classified based on the nature of the loss; and 4) Company-owned life insurance settlement proceeds would be presented as investing cash inflows, and premiums would be classified as investing or operating cash outflows, or a combination of both. We will retrospectively adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, which requires entities to measure investments in unconsolidated entities (other than those accounted for using the equity method of accounting) at fair value through the income statement. There will no longer be an available-for-sale classification (with changes in fair value reported in Other Comprehensive Income). In addition, the cost method is eliminated for equity investments without readily determinable fair values. We will adopt the new standard beginning January 1, 2018. The adoption of this standard will not have a material effect on our financial statements.

Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU 2017-12 that amends current hedge accounting model. The new standard eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item (which is consistent with our current practice). The change in fair value for qualifying cash flow and net investment hedges will be included in Other comprehensive income (until they are reclassified into the income statement). The standard also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The standard is effective as of January 1, 2019 and earlier application is permitted. We are assessing the impact the adoption of this standard will have on our financial statements.

Financial Instruments — Credit Losses

In June 2016, the FASB issued ASU 2016-13, which changes the impairment model for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance applies to most financial assets measured at amortized cost, including trade and other receivables and loans as well as off-balance-sheet credit exposures (e.g., loan commitments and standby letters of credit). The standard will replace the “incurred loss” approach under the current guidance with an “expected loss” model that requires an entity to estimate its lifetime “expected credit loss.” The standard is effective January 1, 2020 and early application is permitted beginning January 1, 2019. We are assessing the impact the adoption of this standard will have on our financial statements.

Balance Sheet Information

12 Months Ended

Dec. 31, 2017

Balance Sheet Information

3. Balance Sheet Information

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



(In millions)	2017		2016
Inventories:
Raw materials and supplies	$	224.9	$	207.6
Work in process		58.3		55.9
Finished products		297.6		267.6
Total inventories	$	580.8	$	531.1

Property, plant and equipment:
Land and improvements	$	58.7	$	57.0
Buildings and improvements to leaseholds		464.1		429.4
Machinery and equipment		1,167.5		1,079.8
Construction in progress		90.1		64.5
Property, plant and equipment, gross		1,780.4		1,630.7
Less: accumulated depreciation		1,040.4		968.2
Property, plant and equipment, net of accumulated depreciation	$	740.0	$	662.5

Other current liabilities:
Accrued salaries, wages and other compensation	$	105.9	$	112.6
Accrued customer programs		142.8		129.3
Accrued taxes		61.4		46.3
Dividends payable		30.4		27.6
Other accrued expenses		137.5		133.2
Total other current liabilities	$	478.0	$	449.0

Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2017

Acquisitions and Dispositions

4. Acquisitions and Dispositions

In October 2017, we acquired Victoria + Albert, a UK manufacturer of luxury freestanding tubs and basins. In July 2017, we acquired Shaws, a UK-based luxury plumbing products company that specializes in manufacturing and selling fireclay sinks and selling brassware and accessories in partnership with Perrin & Rowe. The total combined purchase price was approximately $125 million, net of cash acquired and deferred acquisition payments and subject to certain post-closing adjustments. Net sales and operating income in the twelve months ended December 31, 2017 from these acquisitions were not material to the Company. We financed the transactions using cash on hand and borrowings under our existing credit facility. The results of the operations are included in the Plumbing segment from the date of acquisition. We do not expect any portion of goodwill to be deductible for income tax purposes.

In April 2017, we completed the sale of Field ID, our cloud-based inspection and safety compliance software product line included in our Security segment. We recorded a pre-tax loss of $2.4 million and a pre-tax impairment charge to write down the long-lived assets included in this disposal group to fair value of $3.2 million as a result of this sale (See Note 7). The estimated tax expense on the sale was insignificant. Field ID did not qualify for presentation as a discontinued operation in our financial statements.

In September 2016, we acquired ROHL, a California-based luxury plumbing company. In a related transaction, we also acquired Perrin & Rowe, a UK manufacturer and designer of luxury kitchen and bathroom plumbing products. The total combined purchase price was approximately $166 million (including $3 million of liabilities assumed), subject to certain post-closing adjustments. We financed the transaction using cash on hand and borrowings under our existing credit facility. Net sales and operating income in the twelve months ended December 31, 2016 were not material to the Company. The results of operations are included in the Plumbing segment. The goodwill expected to be deductible for income tax purposes is approximately $49 million.

In May 2016, we acquired Riobel, a Canadian plumbing company specializing in premium showroom bath and shower fittings, for a total purchase price of $94.6 million in cash, subject to certain post-closing adjustments. We financed the transaction using cash on hand and borrowings under our existing credit facility. Net sales and operating income in the twelve months ended December 31, 2016 were not material to the Company. The results of operations are included in the Plumbing segment. We do not expect any portion of goodwill to be deductible for income tax purposes.

Discontinued Operations

12 Months Ended

Dec. 31, 2017

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 $16.9 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, 2014 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 the twelve months ended December 31, 2017, the loss on discontinued operations is primarily related to the prior sale of the Waterloo tool storage and Simonton window businesses.

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Identifiable Intangible Assets

6. Goodwill and Identifiable Intangible Assets

We had goodwill of $1,912.0 million and $1,833.8 million as of December 31, 2017 and 2016, respectively. The increase of $78.2 million was primarily due to the acquisitions of Shaws and Victoria + Albert . 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, 2015^(a)	$	937.7		$	578.6		$	143.0	$	96.0	$	1,755.3
2016 translation adjustments		0.8			(2.3	)		—		0.3		(1.2	)
Acquisition-related adjustments		(14.2	)		93.9			—		—		79.7
Balance at December 31, 2016^(a)	$	924.3		$	670.2		$	143.0	$	96.3	$	1,833.8
2017 translation adjustments		2.0			3.3			—		1.2		6.5
Acquisition-related adjustments		—			71.7			—		—		71.7
Balance at December 31, 2017^(a)	$	926.3		$	745.2		$	143.0	$	97.5	$	1,912.0

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

We also had identifiable intangible assets, principally tradenames, of $1,162.4 million and $1,107.0 million as of December 31, 2017 and 2016, respectively. The $88.2 million increase in gross identifiable intangible assets was primarily due to acquisition-related adjustments in our Plumbing segment (See Note 4) as well as foreign translation adjustments, partially offset by impairment charges during the first quarter of 2017 related to our decision to sell Field ID (See Note 4 and 7).

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2017 and 2016 were as follows:


	As of December 31, 2017							As of December 31, 2016
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived tradenames	$	709.9	$	—		$	709.9	$	671.8	$	—		$	671.8
Amortizable intangible assets
Tradenames		15.7		(9.9	)		5.8		15.8		(7.3	)		8.5
Customer and contractual relationships		663.8		(232.0	)		431.8		611.9		(203.1	)		408.8
Patents/proprietary technology		60.2		(45.3	)		14.9		61.9		(44.0	)		17.9
Total		739.7		(287.2	)		452.5		689.6		(254.4	)		435.2
Total identifiable intangibles	$	1,449.6	$	(287.2	)	$	1,162.4	$	1,361.4	$	(254.4	)	$	1,107.0

Amortizable intangible assets, principally tradenames and customer relationships, are subject to amortization on a straight-line basis over their estimated useful life, ranging from 2 to 20 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 $33 million in 2018, $30 million in 2019, $30 million in 2020, $30 million in 2021, and $29 million in 2022.

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 2017, 2016 and 2015, we did not record any asset impairment charges associated with goodwill or indefinite-lived intangible assets. As of December 31, 2017, the fair value of two tradenames in the Cabinets segment exceeded their carrying value by less than 10%. Accordingly, a reduction in the estimated fair value of these tradenames could trigger an impairment. As of December 31, 2017, the total carrying value of these tradenames was $217.8 million. Factors influencing our fair value estimates of the tradenames are described in the following paragraph.

The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that lag our assumptions, actions of key customers, volatility of discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and decline in the trading price of our common stock. We 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.

- Definition

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.

+ References + Details

Asset Impairment Charges

12 Months Ended

Dec. 31, 2017

Asset Impairment Charges

7. Asset Impairment Charges

In January 2017, we committed to a plan to sell Field ID, our cloud-based inspection and safety compliance software product line included in our Security segment. In accordance with FASB Accounting Standards Codification (“ASC”) 360, as a result of our decision to sell, during the first quarter of 2017 we recorded $3.2 million of pre-tax impairment charges to write down the long-lived assets included in this disposal group to fair value, based upon their estimated fair value less cost to sell. These charges consisted of approximately $3.0 million for definite-lived intangible assets and $0.2 million for fixed assets. We completed the sale of Field ID in April 2017.

External Debt and Financing Arrangements

12 Months Ended

Dec. 31, 2017

External Debt and Financing Arrangements

8. External Debt and Financing Arrangements

In June 2016, the Company amended and restated its credit agreement to combine and rollover the existing revolving credit facility and term loan into a new standalone $1.25 billion revolving credit facility. This amendment and restatement of the credit agreement was a non-cash transaction for the Company. Terms and conditions of the credit agreement, including the total commitment amount, essentially remained the same. The revolving credit facility will mature in June 2021 and borrowings thereunder will be used for general corporate purposes. On December 31, 2017 and 2016, our outstanding borrowings under these facilities were $615.0 million and $540.0 million, respectively. At December 31, 2017 and 2016, the current portion of long-term debt was zero. Interest rates under the facility are variable based on LIBOR at the time of the borrowing and the Company’s long-term credit rating and can range from LIBOR + 0.9% to LIBOR + 1.5%. As of December 31, 2017, we were in compliance with all covenants under this facility. As a result of the refinancing, we wrote-off prepaid debt issuance costs of approximately $1.3 million as of June 30, 2016.

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, 2017 and 2016, the outstanding amount of the Senior Notes, net of underwriting commissions and price discounts, was $892.6 million and $891.1 million, respectively.

We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $23.5 million in aggregate, of which zero were outstanding, as of December 31, 2017 and 2016. The weighted-average interest rates on these borrowings were zero, 1.5% and 1.0% in 2017, 2016 and 2015 respectively.

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



(In millions)	2017		2016
$400 million unsecured senior note due June 2020	$	398.3	$	397.6
$500 million unsecured senior note due June 2025		494.3		493.5
$1,250 million revolving credit agreement due June 2021		615.0		540.0
Total debt		1,507.6		1,431.1
Less: current portion		—		—
Total long-term debt	$	1,507.6	$	1,431.1

Senior Notes payments during the next five years as of December 31, 2017 are zero in 2018 through 2019, $400 million in 2020 and zero in 2021 through 2022.

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, 2017.

Financial Instruments

12 Months Ended

Dec. 31, 2017

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. As a result, 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, 2017 and 2016.

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 changes in fair value for net investment hedges are recognized in the statement of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. 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 British pound, and the Mexican peso. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2017 was $282.8 million, representing a net settlement liability of $4.8 million. Based on foreign exchange rates as of December 31, 2017, we estimate that $3.0 million of net foreign currency derivative losses included in OCI as of December 31, 2017 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, 2017 and 2016 were:



		Fair Value

(In millions)	Location	2017		2016
Assets:
Foreign exchange contracts	Other current assets	$	0.8	$	2.8
Commodity contracts	Other current assets		0.2		—
Net investment hedges	Other current assets		—		0.6
	Total assets	$	1.0	$	3.4
Liabilities:
Foreign exchange contracts	Other current liabilities	$	5.6	$	2.9
Net investment hedges	Other current liabilities		0.8		0.2
	Total liabilities	$	6.4	$	3.1

The effects of derivative financial instruments on the consolidated statements of income in 2017, 2016 and 2015 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2017			2016			2015
Cash flow	Cost of products sold	$	0.9		$	(3.5	)	$	3.6
Fair value	Other (income) expense, net		(2.0	)		2.0			8.2
Total		$	(1.1	)	$	(1.5	)	$	11.8

The effective portion of cash flow hedges recognized in other comprehensive income were net losses of $(1.8) million and $(6.7) million in 2017 and 2016, respectively. In the years ended December 31, 2017, 2016 and 2015, the ineffective portion of cash flow hedges recognized in other (income) expense, net, was insignificant.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Measurements

10. Fair Value Measurements

The carrying value and fair value of debt as of December 31, 2017 and 2016 were as follows:



(In millions)	December 31, 2017				December 31, 2016

	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility	$	615.0	$	615.0	$	540.0	$	540.0
Senior Notes, net of underwriting commissions and price discounts		892.6		926.3		891.1		919.2

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 Senior Notes is determined primarily using broker quotes, which are level 2 inputs.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 were as follows:



(In millions)	Fair Value

	2017		2016
Assets:
Derivative asset financial instruments (level 2)	$	1.0	$	3.4
Deferred compensation program assets (level 2)		7.5		4.5
Total assets	$	8.5	$	7.9
Liabilities:
Derivative liability financial instruments (level 2)	$	6.4	$	3.1

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.

During the second quarter of 2016, we entered into a joint venture arrangement with a partner to operate a manufacturing facility in China. Under the arrangement, we are required to make certain fixed payments to our partner each year starting in June 2017 and through June 2024 (final year of the agreement) and also purchase the outstanding preferred shares of our partner in 2024. During the second quarter of 2016, we recognized the fair value of $8.2 million of these contractual payments, including a redemption of the preferred shares ($7.2 million within other non-current liabilities and $1.0 million due within one year in other current liabilities). We have also recognized the excess of $5.2 million of this liability fair value over the $3.0 million cash contributed by our partner within paid-in capital.

- Definition

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.

+ References + Details

Capital Stock

12 Months Ended

Dec. 31, 2017

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 2017 and 2016 were as follows:



	Common Shares						Treasury Shares

	2017			2016			2017		2016
Balance at the beginning of the year		153,412,050			159,906,032			24,305,930		15,293,877
Stock plan shares issued		2,068,746			2,518,071			—		—
Shares surrendered by optionees		(180,537	)		(204,538	)		180,537		204,538
Common stock repurchases		(3,393,462	)		(8,807,515	)		3,393,462		8,807,515
Balance at the end of the year		151,906,797			153,412,050			27,879,929		24,305,930

In December 2017, our Board of Directors increased the quarterly cash dividend by 11% to $0.20 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, 2017, 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 2017, we repurchased approximately 3.4 million shares of outstanding common stock under the Company’s share repurchase program at a cost of $214.8 million. As of December 31, 2017, the Company’s total remaining share repurchase authorization under the remaining program was approximately $558.4 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.

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive (Loss) Income

12. Accumulated Other Comprehensive (Loss) Income

The reclassifications out of accumulated other comprehensive (loss) income for the year ended December 31, 2017 and 2016 were as follows:



(In millions)

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

	2017			2016
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	0.4		$	(3.5	)	Cost of products sold
Commodity contracts		0.5			—		Cost of products sold
		0.9			(3.5	)	Total before tax
		(0.1	)		—		Tax expense
	$	0.8		$	(3.5	)	Net of tax
Defined benefit plan items
Amortization of prior service cost	$	5.1		$	13.5		(a)
Recognition of actuarial gains (losses)		0.5			(1.9	)	(a)
		5.6			11.6		Total before tax
		(2.0	)		(4.3	)	Tax expense
	$	3.6		$	7.3		Net of tax
Total reclassifications for the period	$	4.4		$	3.8		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.

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, 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	)
Amounts classified into accumulated other comprehensive (loss) income		(14.7	)		(6.2	)		5.3			(15.6	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			3.5			(7.3	)		(3.8	)
Net current period other comprehensive (loss) income		(14.7	)		(2.7	)		(2.0	)		(19.4	)
Balance at December 31, 2016	$	(28.0	)	$	(0.6	)	$	(43.3	)	$	(71.9	)
Amounts classified into accumulated other comprehensive (loss) income		33.8			(1.0	)		4.3			37.1
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(0.8	)		(3.6	)		(4.4	)
Net current period other comprehensive (loss) income		33.8			(1.8	)		0.7			32.7
Balance at December 31, 2017	$	5.8		$	(2.4	)	$	(42.6	)	$	(39.2	)

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Stock-Based Compensation

13. Stock-Based Compensation

As of December 31, 2017, 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”). Our stockholders approved the Plan in 2013, 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, 2017, approximately six 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 the required 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 stock options under the 2011 Plan that continue to 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)	2017		2016		2015
Stock option awards	$	7.4	$	7.2	$	7.4
Restricted stock units		21.6		17.2		13.4
Performance awards		13.6		6.7		5.9
Director awards		1.0		0.9		0.9
Total pre-tax expense		43.6		32.0		27.6
Tax benefit		15.2		11.4		9.9
Total after tax expense	$	28.4	$	20.6	$	17.7

Included in compensation costs are cash-settled restricted stock units of $0.6 million that are classified as a liability. 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 through each vesting date. Restricted stock units granted to certain officers are also subject to attaining specific performance criteria. In addition, certain employees can elect to defer receipt of a portion of their RSU awards upon vesting. 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, 2017 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2016		723,398		$	49.22
Granted		408,608			58.59
Vested		(338,988	)		48.13
Forfeited		(64,953	)		53.56
Non-vested at December 31, 2017		728,065		$	54.59

The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2017 was approximately $18.9 million, and the weighted-average period of time over which this cost will be recognized is 1.5 years. The fair value of restricted stock units that vested during 2017, 2016 and 2015 was $20.3 million, $16.4 million and $24.9 million, respectively.

Stock Option Awards

Stock options were granted to officers and certain 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:



	2017		2016		2015
Current expected dividend yield		1.4%		1.4%		1.5%
Expected volatility		26.0%		30.0%		27.0%
Risk-free interest rate		1.9%		1.3%		1.8%
Expected term		5.5 years		5.5 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. In 2017 and 2016, the expected term was determined based on the historical employee exercise behavior and the contractual term of the options. In 2015, the expected term was determined 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, 2017, 2016 and 2015 was $13.49, $12.70 and $11.58, respectively.

A summary of Fortune Brands stock option activity related to Fortune Brands and employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2017 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2016		4,815,291		$	27.34
Granted		603,230			58.43
Exercised		(1,605,999	)		17.73
Expired/forfeited		(129,564	)		37.02
Outstanding at December 31, 2017		3,682,958		$	36.28

Options outstanding and exercisable at December 31, 2017 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	104,500		3.8	$	12.30		104,500	$	12.30
13.00 to 20.00	1,250,011		3.6		16.17		1,250,011		16.17
20.01 to 65.41	2,328,447		7.4		48.16		1,220,692		42.82
	3,682,958		6.0	$	36.28		2,575,203	$	28.64

^(a)	At December 31, 2017, the aggregate intrinsic value of options outstanding was $118.4 million.

^(b)	At December 31, 2017, the weighted-average remaining contractual life of options exercisable was 4.9 years and the aggregate intrinsic value of options exercisable was $102.5 million.

The remaining unrecognized compensation cost related to unvested awards at December 31, 2017 was $6.0 million, and the weighted-average period of time over which this cost will be recognized is 1.4 years. The fair value of options that vested during the years ended December 31, 2017, 2016 and 2015 was $6.8 million, $6.0 million and $7.8 million, respectively. The intrinsic value of Fortune Brands stock options exercised in the years ended December 31, 2017, 2016 and 2015 was $70.6 million, $88.1 million and $78.0 million, respectively.

Performance Awards

Performance share awards were granted to officers and certain employees of the Company under the Plans and represent the right to earn shares of Company common stock based on the achievement of or company-wide performance conditions, including cumulative diluted earnings per share, average return on invested capital, average return on net tangible assets and EBITDA 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, 2017, as well as activity during the year then ended. The number of Performance share awards granted are shown below at the target award amounts:



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2016		421,600		$	48.00
Granted		160,196			58.02
Vested		(95,183	)		45.13
Forfeited		(58,285	)		48.22
Non-vested at December 31, 2017		428,328		$	52.35

The remaining unrecognized pre-tax compensation cost related to performance share awards at December 31, 2017 was approximately $6.8 million, and the weighted-average period of time over which this cost will be recognized is 1.3 years. The fair value of performance share awards that vested during 2017 was $5.6 million (100,580 shares).

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 2017, 2016 and 2015, we awarded 15,311, 16,471 and 19,695 shares of Company common stock to outside directors with a weighted average fair value on the date of the award of $63.43, $57.37 and $46.21, respectively.

Defined Benefit Plans

12 Months Ended

Dec. 31, 2017

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 these plans have been closed to new hires. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65. 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. Service cost for 2017 relates to benefit accruals in an hourly Union defined benefit plan in our Security segment. Benefit accruals under all other defined benefit pension plans were frozen as of December 31, 2016.

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	2017			2016			2017			2016
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	791.7		$	767.7		$	3.6		$	15.6
Service cost		0.6			9.6			—			—
Interest cost		33.3			34.4			—			0.3
Plan amendments		—			0.1			—			(12.3	)
Actuarial loss (gain)		40.6			11.7			(1.4	)		1.6
Benefits paid		(33.8	)		(31.8	)		(0.4	)		(1.6	)
Foreign exchange		—			—			(0.2	)		—
Projected benefit obligation at end of year	$	832.4		$	791.7		$	1.6		$	3.6
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	832.4		$	791.7
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	577.7		$	561.9		$	—		$	—
Actual return on plan assets		83.2			46.6			—			—
Employer contributions		29.5			1.0			0.5			1.5
Benefits paid		(33.8	)		(31.8	)		(0.5	)		(1.5	)
Fair value of plan assets at end of year	$	656.6		$	577.7		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(175.8	)	$	(214.0	)	$	(1.6	)	$	(3.6	)

The accumulated benefit obligation exceeds the fair value of assets for all pension plans. Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits						Postretirement Benefits

(In millions)	2017			2016			2017			2016
Current benefit payment liability	$	(1.1	)	$	(1.0	)	$	(0.2	)	$	(0.4	)
Accrued benefit liability		(174.7	)		(213.0	)		(1.4	)		(3.2	)
Net amount recognized	$	(175.8	)	$	(214.0	)	$	(1.6	)	$	(3.6	)

In the first quarter of 2013, the Company communicated a plan amendment to reduce health benefits to certain retired employees. Due to the risk of litigation at the time of the initial communication, the Company elected to defer the full recognition of the benefit arising from the plan amendment. Following a favorable court decision in the first quarter of 2016, the Company determined that it would realize the benefit from the plan amendment. As a result, the Company performed a re-measurement of the affected retiree plan liability as of March 31, 2016. This remeasurement resulted in a $10.7 million reduction of accrued retiree benefit plan liabilities and a corresponding increase in prior service credits. In accordance with accounting requirements, the liability reduction from this remeasurement is recorded as amortization of prior service credits in net income. In addition, we recorded a $0.9 million actuarial loss during the first quarter of 2016.

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

As of December 31, 2017, we adopted the new Society of Actuaries MP-2017 mortality tables, resulting in a decrease in our pension benefit obligations of approximately $5.0 million, and a corresponding decrease in deferred actuarial losses in accumulated other comprehensive income. As of December 31, 2016, we adopted the new Society of Actuaries MP-2016 mortality tables, resulting in a decrease in our postretirement obligations of approximately $0.1 million, and a corresponding decrease in deferred actuarial losses in accumulated other comprehensive income.

The amounts in accumulated other comprehensive loss 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 loss at December 31, 2015	$	71.1		$	0.3
Recognition of actuarial loss		—			(1.9	)
Current year actuarial loss		2.3			1.6
Net actuarial loss at December 31, 2016	$	73.4		$	—
Recognition of actuarial (loss) gain		(0.9	)		1.4
Current year actuarial gain		(5.3	)		(1.4	)
Net actuarial loss at December 31, 2017	$	67.2		$	—
Net prior service cost (credit) at December 31, 2015	$	0.1		$	(6.4	)
Prior service cost recognition due to plan amendments		—			(12.2	)
Amortization		—			13.5
Prior service cost recognition due to curtailment		(0.1	)		—
Net prior service cost (credit) at December 31, 2016	$	—		$	(5.1	)
Amortization		—			5.1
Net prior service cost (credit) at December 31, 2017	$	—		$	—
Total at December 31, 2017	$	67.2		$	—

There are no accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year.

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit (Income) Cost	Pension Benefits									Postretirement Benefits

(In millions)	2017			2016			2015			2017			2016			2015
Service cost	$	0.6		$	9.6		$	11.5		$	—		$	—		$	0.1
Interest cost		33.3			34.4			33.7			—			0.3			0.6
Expected return on plan assets		(37.3	)		(37.2	)		(40.2	)		—			—			—
Recognition of actuarial losses (gains)		0.9			—			2.9			(1.4	)		1.9			(0.4	)
Amortization of prior service cost (credits)		—			—			0.1			(5.1	)		(13.5	)		(13.5	)
Net periodic benefit (income) cost	$	(2.5	)	$	6.8		$	8.0		$	(6.5	)	$	(11.3	)	$	(13.2	)



Assumptions	Pension Benefits			Postretirement Benefits

	2017	2016	2015	2017	2016	2015
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	3.8%	4.3%	4.6%	3.4%	3.4%	4.1%
Rate of compensation increase	—	4.0%	4.0%	—	—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.3%	4.6%	4.2%	3.4%	4.1%	3.5%
Expected long-term rate of return on plan assets	6.4%	6.6%	6.8%	—	—	—
Rate of compensation increase	—	4.0%	4.0%	—	—	—



	Postretirement Benefits

	2017			2016
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		7.1/8.4	%^(a)		7.3/8.2	%^(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		2026			2025

^(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 had the following effects in 2017:



(In millions)	1-Percentage- Point Increase			1-Percentage- Point Decrease
Effect on postretirement benefit obligation		(0.1	)		0.1

Plan Assets

The fair value of the pension assets by major category of plan assets as of December 31, 2017 and 2016 were as follows:



(In millions)	Total as of balance sheet date

	2017		2016
Group annuity/insurance contracts (level 3)	$	23.3	$	22.8
Collective trusts:
Cash and cash equivalents		12.5		6.9
Equity		285.9		258.8
Fixed income		277.7		235.4
Multi-strategy hedge funds		24.6		23.1
Real estate		32.6		30.7
Total	$	656.6	$	577.7

A reconciliation of Level 3 measurements was as follows:



	Group annuity/ insurance contracts

(In millions)	2017		2016
January 1	$	22.8	$	22.3
Actual return on assets related to assets still held		0.5		0.5
December 31	$	23.3	$	22.8

Our defined benefit plans Master Trust own a variety of investment assets. All of these investment assets, except for group annuity/insurance contracts are measured using net asset value per share as a practical expedient per ASC 820. Following the retrospective adoption of ASU 2015-07 (Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share) we excluded all investments measured using net asset value per share in the amount of $633.3 million and $554.9 million as of December 31, 2017 and 2016, respectively, from the tabular fair value hierarchy disclosure.

The terms and conditions for redemptions vary for each class of the investment assets valued at net asset value per share as a practical expedient. Real estate assets may be redeemed quarterly with a 45 day redemption notice period. Investment assets in multi-strategy hedge funds may be redeemed semi-annually with a 95 day redemption notice period. Equity, fixed income and cash and cash equivalents have no specified redemption frequency and notice period and may be redeemed daily. As of December 31, 2017 we do not have an intent to sell or otherwise dispose of these investment assets at prices different than the net asset value per share.

Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. The defined benefit asset allocation policy of the plans allow 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 of 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 2018 expected blended long-term rate of return on plan assets of 6.4% 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
2018	$	37.4	$	0.1
2019		39.1		0.1
2020		40.4		0.1
2021		41.6		0.1
2022		43.1		0.1
Years 2023-2027		229.9		0.3

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 $29.1 million, $22.7 million and $18.3 million in 2017, 2016 and 2015, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Taxes

15. Income Taxes

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



(In millions)	2017		2016		2015
Domestic operations	$	554.7	$	513.8	$	387.7
Foreign operations		80.1		68.3		72.2
Income before income taxes and noncontrolling interests	$	634.8	$	582.1	$	459.9

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



(In millions)	2017			2016			2015
Income tax expense computed at federal statutory income tax rate	$	222.2		$	203.7		$	161.0
Other income taxes, net of federal tax benefit		13.4			12.6			9.4
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(8.3	)		(7.6	)		(8.7	)
Tax benefit on income attributable to domestic production activities		(10.9	)		(13.0	)		(12.5	)
Net adjustments for uncertain tax positions		11.6			13.2			4.7
Share-based compensation (ASU 2016-09)		(23.9	)		(27.8	)		—
Tax Act impact		(25.7	)		—			—
Deferred tax impact of state tax rate changes		(2.0	)		(1.1	)		0.2
Valuation allowance increase (decrease)		(5.2	)		(2.1	)		0.8
Miscellaneous other, net		(11.7	)		(8.2	)		(1.5	)
Income tax expense as reported	$	159.5		$	169.7		$	153.4
Effective income tax rate		25.1	%		29.2	%		33.4	%

The 2017 effective income tax rate was favorably impacted by The Tax Cuts and Jobs Act of 2017, (the “Tax Act”). The effective income tax rates for 2017, 2016 and 2015 were favorably impacted by the tax benefit attributable to the Domestic Production Activity (Internal Revenue Code Section 199) Deduction and favorable tax rates in foreign jurisdictions, partially offset by state and local taxes and increases to uncertain tax positions. In addition, the 2017 and 2016 effective income tax rates were favorably impacted by a tax benefit related to share-based compensation. 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. The 2015 effective income tax rate was unfavorably impacted by $2.4 million related to nondeductible acquisition costs.

The Tax Act made significant changes to the U.S. Internal Revenue Code including a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, generally providing for an exemption from federal income tax for dividends received from foreign subsidiaries, and imposing a one-time transition tax on the deemed repatriation of cumulative foreign earnings and profits as of December 31, 2017. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued which deals with the application of US GAAP to situations where a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118 we have calculated our best estimate of the impact of the Tax Act on our 2017 effective income tax rate, based upon available information, limited timing and our understanding of the Tax Act as well as the facts and guidance available at our assessment date of January 22, 2018. As a result, the Company has recorded a provisional net benefit of $25.7 million in the fourth quarter of 2017, the period in which the Tax Act was enacted. This provisional amount includes an estimated reduction in the Company’s net deferred tax liabilities of $62.4 million resulting from the decrease in the federal income tax rate; an estimated deemed repatriation tax liability of $28.5 million; and an estimated net increase to our provision for taxes on foreign earnings not considered permanently reinvested of $8.2 million. The impact of the Tax Act may differ from these estimates, possibly materially, due to, among other things, refinement of calculations due to additional analysis, changes in interpretations, assumptions made and additional guidance that may be issued. Any subsequent adjustment, related to the aforementioned, will be recorded in current tax expense when such analysis is completed or such guidance is issued.

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



(In millions)	2017			2016			2015
Unrecognized tax benefits — beginning of year	$	58.2		$	38.2		$	31.0
Gross additions — current year tax positions		31.0			10.7			4.6
Gross additions — prior year tax positions		10.9			10.4			8.3
Gross additions (reductions) — purchase accounting adjustments		4.0			9.7			0.1
Gross reductions — prior year tax positions		(9.4	)		(9.8	)		(2.1	)
Gross reductions — settlements with taxing authorities		(7.2	)		(1.0	)		(3.6	)
Impact of change in foreign exchange rates		(0.0	)		(0.0	)		(0.1	)
Unrecognized tax benefits — end of year	$	87.5		$	58.2		$	38.2

The amount of UTBs that, if recognized as of December 31, 2017, would affect the Company’s effective tax rate was $53.0 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $1.5 million to $21.5 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 2017, we recognized an interest and penalty expense of approximately $2.0 million. In 2016, we recognized an interest and penalty expense of approximately $1.1 million. In 2015, we recognized an interest and penalty expense of approximately $1.0 million. At December 31, 2017 and 2016, we had accruals for the payment of interest and penalties of $11.8 million and $11.0 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 2013 through 2015, and is open and subject to examination for subsequent tax years. In addition to the U.S., we have tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2012, Mexico for years after 2011 and China for years after 2013.

Income taxes in 2017, 2016 and 2015 were as follows:



(In millions)	2017			2016			2015
Current
Federal	$	133.1		$	150.4		$	130.6
Foreign		22.4			22.3			19.7
State and other		22.8			22.9			16.1
Deferred
Federal, state and other		(27.2	)		(23.9	)		(11.3	)
Foreign		8.4			(2.0	)		(1.7	)
Total income tax expense	$	159.5		$	169.7		$	153.4

The components of net deferred tax assets (liabilities) as of December 31, 2017 and 2016 were as follows:



(In millions)	2017			2016
Deferred tax assets:
Compensation and benefits	$	22.1		$	56.1
Defined benefit plans		43.7			82.5
Capitalized inventories		11.1			13.6
Accounts receivable		7.8			10.3
Other accrued expenses		45.6			41.4
Net operating loss and other tax carryforwards		25.6			39.7
Valuation allowance		(11.0	)		(16.4	)
Miscellaneous		3.7			2.5
Total deferred tax assets		148.6			229.7
Deferred tax liabilities:
LIFO inventories		(4.2	)		(6.7	)
Fixed assets		(44.5	)		(57.1	)
Intangible assets		(232.0	)		(210.4	)
Investment in partnership		(9.2	)		(109.3	)
Miscellaneous		(16.1	)		(0.2	)
Total deferred tax liabilities		(306.0	)		(383.7	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2017 and 2016 as follows:



(In millions)	2017			2016
Other assets	$	9.4		$	9.5
Deferred income taxes		(166.8	)		(163.5	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)

As of December 31, 2017 and 2016, the Company had deferred tax assets relating to net operating losses, capital losses, and other tax carryforwards of $25.6 million and $39.7 million, respectively, of which approximately $8.3 million will expire between 2018 and 2022, and the remainder of which will expire in 2023 and thereafter.

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.

Under the Tax Act, the accumulated foreign earnings and profits of the Company’s foreign subsidiaries are subject to a deemed repatriation tax and should not be subject to additional U.S. federal income tax upon an actual repatriation of those earnings. As a result, the Company has recorded an estimated tax liability of $9.6 million for foreign and state taxes that would be payable on a distribution of those earnings and profits.

We have not provided for deferred taxes on the remaining book over tax outside basis differences of our foreign subsidiaries. The outside basis differences of foreign subsidiaries considered indefinitely reinvested totaled approximately $50 million at December 31, 2017. The associated deferred tax liability on this basis difference would not be material.

Restructuring and Other Charges

12 Months Ended

Dec. 31, 2017

Restructuring and Other Charges

16. Restructuring and Other Charges

Pre-tax restructuring and other charges for the year ended December 31, 2017 were as follows:



	Year Ended December 31, 2017
				Other Charges ^(a)
(In millions)	Restructuring Charges			Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.4		$	1.6	$	2.2	$	5.2
Plumbing		2.8			—		—		2.8
Doors		(0.1	)		—		0.1		—
Security		4.2			5.6		0.7		10.5
Total	$	8.3		$	7.2	$	3.0	$	18.5

^(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, write-off of displays from exiting a customer relationship, 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 of $18.5 million before tax ($12.3 million after tax) in 2017, primarily related to losses on disposal of inventory associated with exiting a product line in our Security segment and exiting a customer relationship in our Cabinets segment, as well as severance costs within our Security, Plumbing and Cabinets segments.

Pre-tax restructuring and other charges for the year ended December 31, 2016 were as follows:



	Year Ended December 31, 2016
			Other Charges ^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.8	$	—	$	—	$	1.8
Plumbing		1.6		0.3		0.2		2.1
Doors		0.4		—		—		0.4
Security		10.1		4.2		0.7		15.0
Total	$	13.9	$	4.5	$	0.9	$	19.3

^(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 2016 primarily related to severance costs and charges associated with the relocation of a manufacturing facility within our Security segment.

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



	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, Cabinets and Corporate segments.

Reconciliation of Restructuring Liability



(In millions)	Balance at 12/31/16		2017 Provision		Cash Expenditures ^(a)			Non-Cash Write-offs ^(b)			Balance at 12/31/17
Workforce reduction costs	$	2.4	$	6.7	$	(3.9	)	$	(0.2	)	$	5.0
Other		0.6		1.6		(1.3	)		(0.1	)		0.8
	$	3.0	$	8.3	$	(5.2	)	$	(0.3	)	$	5.8

^(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 12/31/15		2016 Provision		Cash Expenditures ^(c)			Non-Cash Write-offs ^(d)			Balance at 12/31/16
Workforce reduction costs	$	10.4	$	9.3	$	(17.5	)	$	0.2		$	2.4
Asset disposals		—		0.1		—			(0.1	)		—
Other		0.5		4.5		(4.1	)		(0.3	)		0.6
	$	10.9	$	13.9	$	(21.6	)	$	(0.2	)	$	3.0

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

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

Commitments

12 Months Ended

Dec. 31, 2017

Commitments

17. Commitments

Purchase Obligations

Purchase obligations of the Company as of December 31, 2017 were $397.3 million, of which $371.3 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, 2017 were as follows:


(In millions)
2018	$	31.0
2019		26.9
2020		20.7
2021		15.9
2022		13.0
Remainder		50.7
Total minimum rental payments	$	158.2

Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $42.1 million, $43.5 million and $34.9 million in 2017, 2016 and 2015, respectively.

Product Warranties

We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. 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, 2017, 2016 and 2015.



(In millions)	2017			2016			2015
Reserve balance at the beginning of the year	$	16.2		$	16.0		$	13.0
Provision for warranties issued		25.1			25.8			29.9
Settlements made (in cash or in kind)		(24.3	)		(25.5	)		(28.3	)
Acquisition		—			0.3			1.6
Foreign currency		0.2			(0.4	)		(0.2	)
Reserve balance at end of year	$	17.2		$	16.2		$	16.0

Information on Business Segments

12 Months Ended

Dec. 31, 2017

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, Mid-Continent, Kitchen Craft, Schrock, Homecrest, Omega, Kemper, StarMark and Ultracraft. 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, ROHL, Riobel, Perrin & Rowe, Victoria + Albert, Shaws 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 and American Lock brand names and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand name. Corporate expenses consist of headquarters 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 the periodic remeasurement of our liabilities. Corporate assets consist primarily of cash.

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



(In millions)	2017		2016		2015
Net sales:
Cabinets	$	2,467.1	$	2,397.8	$	2,173.4
Plumbing		1,720.8		1,534.4		1,414.5
Doors		502.9		473.0		439.1
Security		592.5		579.7		552.4
Net sales	$	5,283.3	$	4,984.9	$	4,579.4

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 2017, 2016 and 2015. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 13%, 13% and 14% of net sales in 2017, 2016 and 2015, respectively. Net sales to Lowe’s were 14%, 14% and 14% of net sales in 2017, 2016 and 2015, respectively.



(In millions)	2017			2016			2015

Operating income:
Cabinets	$	267.2		$	257.8		$	192.4
Plumbing		363.6			326.3			285.4
Doors		74.5			61.9			44.0
Security		72.4			66.6			55.9
Less: Corporate expenses^(a)		(85.6	)		(79.9	)		(81.6	)
Operating income	$	692.1		$	632.7		$	496.1
^(a) Below is a table detailing Corporate expenses:
General and administrative expense	$	(85.2	)	$	(80.9	)	$	(70.1	)
Defined benefit plan income		4.2			2.9			6.1
Recognition of defined benefit plan actuarial gains (losses)		0.5			(1.9	)		(2.5	)
Long-lived asset impairment		(5.1	)		—			—
Norcraft transaction costs^(b)		—			—			(15.1	)
Total Corporate expenses	$	(85.6	)	$	(79.9	)	$	(81.6	)

^(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)	2017			2016			2015
Total assets:
Cabinets	$	2,416.3		$	2,349.4		$	2,364.0
Plumbing		1,854.1			1,626.8			1,341.4
Doors		494.8			480.6			483.9
Security		537.4			514.5			520.7
Corporate		208.8			157.2			165.7
Total assets	$	5,511.4		$	5,128.5		$	4,875.7

Depreciation expense:
Cabinets	$	42.8		$	40.1		$	38.1
Plumbing		26.9			24.6			21.3
Doors		9.1			9.0			11.2
Security		16.8			17.2			19.5
Corporate		3.0			3.7			3.4
Depreciation expense	$	98.6		$	94.6		$	93.5

Amortization of intangible assets:
Cabinets	$	19.7		$	18.4		$	14.3
Plumbing		7.7			3.6			1.2
Doors		2.3			3.8			3.8
Security		2.0			2.3			2.3
Amortization of intangible assets	$	31.7		$	28.1		$	21.6

Capital expenditures:
Cabinets	$	63.4		$	61.7		$	61.3
Plumbing		43.5			48.3			27.2
Doors		20.8			12.9			13.3
Security		19.3			25.9			17.3
Corporate		18.0			0.5			9.4
Capital expenditures, gross		165.0			149.3			128.5
Less: proceeds from disposition of assets		(0.4	)		(3.9	)		(2.5	)
Capital expenditures, net	$	164.6		$	145.4		$	126.0

Net sales by geographic region^(a):
United States	$	4,492.2		$	4,258.5		$	3,892.9
Canada		427.6			406.4			385.1
China		202.3			175.0			163.2
Other international		161.2			145.0			138.2
Net sales	$	5,283.3		$	4,984.9		$	4,579.4

Property, plant and equipment, net:
United States	$	562.3		$	499.8		$	498.9
Mexico		89.0			90.8			74.2
Canada		50.5			45.5			39.4
China		24.8			22.7			14.4
Other international		13.4			3.7			1.0
Property, plant and equipment, net	$	740.0		$	662.5		$	627.9

^(a)	Based on country of destination

Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data

19. Quarterly Financial Data

Unaudited

(In millions, except per share amounts)



2017	1^st		2^nd			3^rd		4^th		Full Year
Net sales	$	1,186.8	$	1,365.4		$	1,348.6	$	1,382.5	$	5,283.3
Gross profit		417.0		515.5			507.0		493.0		1,932.5
Operating income		114.9		212.4			201.8		163.0		692.1
Income from continuing operations, net of tax		77.4		140.3			129.6		128.0		475.3
Income (loss) from discontinued operations, net of tax		—		(2.6	)		—		—		(2.6	)
Net income		77.4		137.7			129.6		128.0		472.7
Net income attributable to Fortune Brands		77.4		137.7			129.5		128.0		472.6
Basic earnings (loss) per common share
Continuing operations		0.50		0.91			0.84		0.84		3.10
Discontinued operations		—		(0.02	)		—		—		(0.02	)
Net income attributable to Fortune Brands		0.50		0.89			0.84		0.84		3.08
Diluted earnings (loss) per common share
Continuing operations		0.50		0.90			0.83		0.83		3.05
Discontinued operations		—		(0.02	)		—		—		(0.02	)
Net income attributable to Fortune Brands		0.50		0.88			0.83		0.83		3.03



2016	1^st(a)		2^nd		3^rd		4^th			Full Year
Net sales	$	1,106.5	$	1,297.8	$	1,279.0	$	1,301.6		$	4,984.9
Gross profit		377.8		474.7		478.0		474.1			1,804.6
Operating income		95.5		187.7		183.1		166.4			632.7
Income from continuing operations, net of tax		61.0		125.1		121.9		104.4			412.4
Income (loss) from discontinued operations, net of tax		—		—		1.5		(0.7	)		0.8
Net income		61.0		125.1		123.4		103.7			413.2
Net income attributable to Fortune Brands		61.0		125.2		123.4		103.6			413.2
Basic earnings (loss) per common share
Continuing operations		0.39		0.82		0.79		0.68			2.67
Discontinued operations		—		—		0.01		(0.01	)		0.01
Net income attributable to Fortune Brands		0.39		0.82		0.80		0.67			2.68
Diluted earnings (loss) per common share
Continuing operations		0.38		0.80		0.77		0.67			2.61
Discontinued operations		—		—		0.01		(0.01	)		0.01
Net income attributable to Fortune Brands		0.38		0.80		0.78		0.66			2.62

(a)	Amounts revised to reflect adoption of ASU 2016-09 “Improvements to Employee Share-Based Payment Accounting.”

In 2017, we recorded pre-tax defined benefit plan actuarial gains of $0.5 million — $1.3 million of actuarial gains ($0.9 million after tax) in the third quarter and ($0.8) million of actuarial losses (($0.5) million after tax) in the fourth quarter.

In 2016, we recorded pre-tax defined benefit plan actuarial losses of $1.9 million — $0.9 million ($0.6 million after tax) in the first quarter and $1.0 million ($0.7 million after tax) in the third quarter.

Earnings Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share

20. Earnings Per Share

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



(In millions, except per share data)	2017			2016		2015
Income from continuing operations, net of tax	$	475.3		$	412.4	$	306.5
Less: Noncontrolling interests		0.1			—		0.5
Income from continuing operations for EPS		475.2			412.4		306.0
Income (loss) from discontinued operations		(2.6	)		0.8		9.0
Net income attributable to Fortune Brands	$	472.6		$	413.2	$	315.0
Earnings (loss) per common share
Basic
Continuing operations	$	3.10		$	2.67	$	1.92
Discontinued operations		(0.02	)		0.01		0.05
Net income attributable to Fortune Brands common stockholders	$	3.08		$	2.68	$	1.97
Diluted
Continuing operations	$	3.05		$	2.61	$	1.88
Discontinued operations		(0.02	)		0.01		0.05
Net income attributable to Fortune Brands common stockholders	$	3.03		$	2.62	$	1.93
Basic average shares outstanding		153.2			154.3		159.5
Stock-based awards		2.6			3.5		3.5
Diluted average shares outstanding		155.8			157.8		163.0
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.5			0.5		0.7

Other Expense, Net

12 Months Ended

Dec. 31, 2017

Other Expense, Net

21. Other Expense, Net

The components of other expense, net for the years ended December 31, 2017, 2016 and 2015 were as follows:



(In millions)	2017		2016		2015
Asset impairment charge	$	7.0	$	—	$	—
Other items, net		0.9		1.5		4.3
Total other expense, net	$	7.9	$	1.5	$	4.3

During 2017, we recorded an impairment charge of $7.0 million pertaining to a cost method investment in a development stage home products company due to an other-than-temporary decline in its fair value. As a result of the impairment, the carrying value of the investment 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, 2017

Contingencies

22. Contingencies

Litigation

The Company is a defendant in lawsuits that are ordinary routine litigation matters incidental to its businesses. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’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 (“PRPs”) under “Superfund” or similar state laws. As of December 31, 2016, eleven such instances have not been dismissed, settled or otherwise resolved. In calendar year 2017, none of our subsidiaries were identified as a PRP in a new instance and no instances were settled, dismissed or otherwise resolved. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have an adverse effect on our results of operations, cash flows or financial condition. At December 31, 2017 and 2016, we had accruals of $0.7 million and $1.0 million, respectively, relating to environmental compliance and cleanup including, but not limited to, the above mentioned Superfund sites.

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Schedule II Valuation and Qualifying Accounts

Schedule II Valuation and Qualifying Accounts

For the years ended December 31, 2017, 2016 and 2015



(In millions)	Balance at Beginning of Period		Charged to Expense			Reclassifications^(c)		Write-offs and Deductions^(a)		Business Acquisition^(b)		Balance at End of Period
2017:
Allowance for cash discounts, returns and sales allowances	$	68.2	$	205.7		$	3.0	$	192.9	$	—	$	84.0
Allowance for doubtful accounts		7.4		0.2			—		4.5		0.2		3.3
Allowance for deferred tax assets		16.4		(5.4	)		—		—		—		11.0

2016:
Allowance for cash discounts, returns and sales allowances	$	50.3	$	148.6		$	—	$	130.7	$	—	$	68.2
Allowance for doubtful accounts		5.8		4.3			—		2.7		—		7.4
Allowance for deferred tax assets		19.7		(3.3	)		—		—		—		16.4

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

^(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)

^(c)	Represents a reclassification of certain customer program liabilities to sales allowances (reduction to accounts receivable) in Security segment during 2017.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

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


Buildings and leasehold improvements			15 to 40 years
Machinery and equipment			3 to 10 years
Software			3 to 7 years

Long-lived Assets

During 2017, we recorded an impairment of $5.1 million related to a long lived asset to be disposed of in selling, general and administrative expenses.

Goodwill and Indefinite-lived Intangible Assets

Defined Benefit Plans

Insurance Reserves

Litigation Contingencies

Income Taxes

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

Revenue from Contracts with Customers

Leases

Clarifying Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets

Stock Compensation Scope of Modification Accounting

Presentation of Net Periodic Pension and Postretirement Cost

Clarifying the Definition of a Business

Restricted Cash

Intra-Entity Transfers of Assets Other Than Inventory

Classification of Certain Cash Receipts and Cash Payments

Recognition and Measurement of Financial Assets and Financial Liabilities

Improvements to Accounting for Hedging Activities

Financial Instruments — Credit Losses

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Estimated Useful Lives of Property, Plant and Equipment

Estimated useful lives of the related assets are as follows:


Buildings and leasehold improvements			15 to 40 years
Machinery and equipment			3 to 10 years
Software			3 to 7 years

Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Information on Balance Sheets

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



(In millions)	2017		2016
Inventories:
Raw materials and supplies	$	224.9	$	207.6
Work in process		58.3		55.9
Finished products		297.6		267.6
Total inventories	$	580.8	$	531.1

Property, plant and equipment:
Land and improvements	$	58.7	$	57.0
Buildings and improvements to leaseholds		464.1		429.4
Machinery and equipment		1,167.5		1,079.8
Construction in progress		90.1		64.5
Property, plant and equipment, gross		1,780.4		1,630.7
Less: accumulated depreciation		1,040.4		968.2
Property, plant and equipment, net of accumulated depreciation	$	740.0	$	662.5

Other current liabilities:
Accrued salaries, wages and other compensation	$	105.9	$	112.6
Accrued customer programs		142.8		129.3
Accrued taxes		61.4		46.3
Dividends payable		30.4		27.6
Other accrued expenses		137.5		133.2
Total other current liabilities	$	478.0	$	449.0

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Change in Net Carrying Amount of Goodwill by Segment

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



(In millions)	Cabinets			Plumbing			Doors		Security		Total Goodwill
Balance at December 31, 2015^(a)	$	937.7		$	578.6		$	143.0	$	96.0	$	1,755.3
2016 translation adjustments		0.8			(2.3	)		—		0.3		(1.2	)
Acquisition-related adjustments		(14.2	)		93.9			—		—		79.7
Balance at December 31, 2016^(a)	$	924.3		$	670.2		$	143.0	$	96.3	$	1,833.8
2017 translation adjustments		2.0			3.3			—		1.2		6.5
Acquisition-related adjustments		—			71.7			—		—		71.7
Balance at December 31, 2017^(a)	$	926.3		$	745.2		$	143.0	$	97.5	$	1,912.0

^(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, 2017 and 2016 were as follows:


	As of December 31, 2017							As of December 31, 2016
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived tradenames	$	709.9	$	—		$	709.9	$	671.8	$	—		$	671.8
Amortizable intangible assets
Tradenames		15.7		(9.9	)		5.8		15.8		(7.3	)		8.5
Customer and contractual relationships		663.8		(232.0	)		431.8		611.9		(203.1	)		408.8
Patents/proprietary technology		60.2		(45.3	)		14.9		61.9		(44.0	)		17.9
Total		739.7		(287.2	)		452.5		689.6		(254.4	)		435.2
Total identifiable intangibles	$	1,449.6	$	(287.2	)	$	1,162.4	$	1,361.4	$	(254.4	)	$	1,107.0

External Debt and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2017

Components of External Long-Term Debt

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



(In millions)	2017		2016
$400 million unsecured senior note due June 2020	$	398.3	$	397.6
$500 million unsecured senior note due June 2025		494.3		493.5
$1,250 million revolving credit agreement due June 2021		615.0		540.0
Total debt		1,507.6		1,431.1
Less: current portion		—		—
Total long-term debt	$	1,507.6	$	1,431.1

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Values of Derivative Instruments

The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2017 and 2016 were:



		Fair Value

(In millions)	Location	2017		2016
Assets:
Foreign exchange contracts	Other current assets	$	0.8	$	2.8
Commodity contracts	Other current assets		0.2		—
Net investment hedges	Other current assets		—		0.6
	Total assets	$	1.0	$	3.4
Liabilities:
Foreign exchange contracts	Other current liabilities	$	5.6	$	2.9
Net investment hedges	Other current liabilities		0.8		0.2
	Total liabilities	$	6.4	$	3.1

Effects of Derivative Financial Instruments on Consolidated Statements of Income

The effects of derivative financial instruments on the consolidated statements of income in 2017, 2016 and 2015 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2017			2016			2015
Cash flow	Cost of products sold	$	0.9		$	(3.5	)	$	3.6
Fair value	Other (income) expense, net		(2.0	)		2.0			8.2
Total		$	(1.1	)	$	(1.5	)	$	11.8

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Carrying Value and Fair Value of Debt

The carrying value and fair value of debt as of December 31, 2017 and 2016 were as follows:



(In millions)	December 31, 2017				December 31, 2016

	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility	$	615.0	$	615.0	$	540.0	$	540.0
Senior Notes, net of underwriting commissions and price discounts		892.6		926.3		891.1		919.2

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, 2017 and 2016 were as follows:



(In millions)	Fair Value

	2017		2016
Assets:
Derivative asset financial instruments (level 2)	$	1.0	$	3.4
Deferred compensation program assets (level 2)		7.5		4.5
Total assets	$	8.5	$	7.9
Liabilities:
Derivative liability financial instruments (level 2)	$	6.4	$	3.1

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2017

Common Stock and Treasury Stock Activity

The number of shares of common stock and treasury stock and the share activity for 2017 and 2016 were as follows:



	Common Shares						Treasury Shares

	2017			2016			2017		2016
Balance at the beginning of the year		153,412,050			159,906,032			24,305,930		15,293,877
Stock plan shares issued		2,068,746			2,518,071			—		—
Shares surrendered by optionees		(180,537	)		(204,538	)		180,537		204,538
Common stock repurchases		(3,393,462	)		(8,807,515	)		3,393,462		8,807,515
Balance at the end of the year		151,906,797			153,412,050			27,879,929		24,305,930

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2017

Reclassifications Out of Accumulated Other Comprehensive (Loss) Income

The reclassifications out of accumulated other comprehensive (loss) income for the year ended December 31, 2017 and 2016 were as follows:



(In millions)

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

	2017			2016
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	0.4		$	(3.5	)	Cost of products sold
Commodity contracts		0.5			—		Cost of products sold
		0.9			(3.5	)	Total before tax
		(0.1	)		—		Tax expense
	$	0.8		$	(3.5	)	Net of tax
Defined benefit plan items
Amortization of prior service cost	$	5.1		$	13.5		(a)
Recognition of actuarial gains (losses)		0.5			(1.9	)	(a)
		5.6			11.6		Total before tax
		(2.0	)		(4.3	)	Tax expense
	$	3.6		$	7.3		Net of tax
Total reclassifications for the period	$	4.4		$	3.8		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.

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, 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	)
Amounts classified into accumulated other comprehensive (loss) income		(14.7	)		(6.2	)		5.3			(15.6	)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			3.5			(7.3	)		(3.8	)
Net current period other comprehensive (loss) income		(14.7	)		(2.7	)		(2.0	)		(19.4	)
Balance at December 31, 2016	$	(28.0	)	$	(0.6	)	$	(43.3	)	$	(71.9	)
Amounts classified into accumulated other comprehensive (loss) income		33.8			(1.0	)		4.3			37.1
Amounts reclassified from accumulated other comprehensive (loss) income into earnings		—			(0.8	)		(3.6	)		(4.4	)
Net current period other comprehensive (loss) income		33.8			(1.8	)		0.7			32.7
Balance at December 31, 2017	$	5.8		$	(2.4	)	$	(42.6	)	$	(39.2	)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Pre-Tax Stock-Based Compensation Expense from Continuing Operations

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



(In millions)	2017		2016		2015
Stock option awards	$	7.4	$	7.2	$	7.4
Restricted stock units		21.6		17.2		13.4
Performance awards		13.6		6.7		5.9
Director awards		1.0		0.9		0.9
Total pre-tax expense		43.6		32.0		27.6
Tax benefit		15.2		11.4		9.9
Total after tax expense	$	28.4	$	20.6	$	17.7

Restricted Stock Units Activity

A summary of activity with respect to restricted stock units outstanding under the Plans for the year ended December 31, 2017 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2016		723,398		$	49.22
Granted		408,608			58.59
Vested		(338,988	)		48.13
Forfeited		(64,953	)		53.56
Non-vested at December 31, 2017		728,065		$	54.59

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:



	2017		2016		2015
Current expected dividend yield		1.4%		1.4%		1.5%
Expected volatility		26.0%		30.0%		27.0%
Risk-free interest rate		1.9%		1.3%		1.8%
Expected term		5.5 years		5.5 years		6 years

Stock Option Activity



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2016		4,815,291		$	27.34
Granted		603,230			58.43
Exercised		(1,605,999	)		17.73
Expired/forfeited		(129,564	)		37.02
Outstanding at December 31, 2017		3,682,958		$	36.28

Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2017 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	104,500		3.8	$	12.30		104,500	$	12.30
13.00 to 20.00	1,250,011		3.6		16.17		1,250,011		16.17
20.01 to 65.41	2,328,447		7.4		48.16		1,220,692		42.82
	3,682,958		6.0	$	36.28		2,575,203	$	28.64

^(a)	At December 31, 2017, the aggregate intrinsic value of options outstanding was $118.4 million.

^(b)	At December 31, 2017, the weighted-average remaining contractual life of options exercisable was 4.9 years and the aggregate intrinsic value of options exercisable was $102.5 million.

Summarizes Information of Performance Share Awards



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2016		421,600		$	48.00
Granted		160,196			58.02
Vested		(95,183	)		45.13
Forfeited		(58,285	)		48.22
Non-vested at December 31, 2017		428,328		$	52.35

Defined Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Obligations and Funded Status



(In millions)	Pension Benefits						Postretirement Benefits

Obligations and Funded Status at December 31	2017			2016			2017			2016
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	791.7		$	767.7		$	3.6		$	15.6
Service cost		0.6			9.6			—			—
Interest cost		33.3			34.4			—			0.3
Plan amendments		—			0.1			—			(12.3	)
Actuarial loss (gain)		40.6			11.7			(1.4	)		1.6
Benefits paid		(33.8	)		(31.8	)		(0.4	)		(1.6	)
Foreign exchange		—			—			(0.2	)		—
Projected benefit obligation at end of year	$	832.4		$	791.7		$	1.6		$	3.6
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	832.4		$	791.7
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	577.7		$	561.9		$	—		$	—
Actual return on plan assets		83.2			46.6			—			—
Employer contributions		29.5			1.0			0.5			1.5
Benefits paid		(33.8	)		(31.8	)		(0.5	)		(1.5	)
Fair value of plan assets at end of year	$	656.6		$	577.7		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(175.8	)	$	(214.0	)	$	(1.6	)	$	(3.6	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits						Postretirement Benefits

(In millions)	2017			2016			2017			2016
Current benefit payment liability	$	(1.1	)	$	(1.0	)	$	(0.2	)	$	(0.4	)
Accrued benefit liability		(174.7	)		(213.0	)		(1.4	)		(3.2	)
Net amount recognized	$	(175.8	)	$	(214.0	)	$	(1.6	)	$	(3.6	)

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

The amounts in accumulated other comprehensive loss 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 loss at December 31, 2015	$	71.1		$	0.3
Recognition of actuarial loss		—			(1.9	)
Current year actuarial loss		2.3			1.6
Net actuarial loss at December 31, 2016	$	73.4		$	—
Recognition of actuarial (loss) gain		(0.9	)		1.4
Current year actuarial gain		(5.3	)		(1.4	)
Net actuarial loss at December 31, 2017	$	67.2		$	—
Net prior service cost (credit) at December 31, 2015	$	0.1		$	(6.4	)
Prior service cost recognition due to plan amendments		—			(12.2	)
Amortization		—			13.5
Prior service cost recognition due to curtailment		(0.1	)		—
Net prior service cost (credit) at December 31, 2016	$	—		$	(5.1	)
Amortization		—			5.1
Net prior service cost (credit) at December 31, 2017	$	—		$	—
Total at December 31, 2017	$	67.2		$	—

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 (Income) Cost	Pension Benefits									Postretirement Benefits

(In millions)	2017			2016			2015			2017			2016			2015
Service cost	$	0.6		$	9.6		$	11.5		$	—		$	—		$	0.1
Interest cost		33.3			34.4			33.7			—			0.3			0.6
Expected return on plan assets		(37.3	)		(37.2	)		(40.2	)		—			—			—
Recognition of actuarial losses (gains)		0.9			—			2.9			(1.4	)		1.9			(0.4	)
Amortization of prior service cost (credits)		—			—			0.1			(5.1	)		(13.5	)		(13.5	)
Net periodic benefit (income) cost	$	(2.5	)	$	6.8		$	8.0		$	(6.5	)	$	(11.3	)	$	(13.2	)

Schedule of Assumptions Used



Assumptions	Pension Benefits			Postretirement Benefits

	2017	2016	2015	2017	2016	2015
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	3.8%	4.3%	4.6%	3.4%	3.4%	4.1%
Rate of compensation increase	—	4.0%	4.0%	—	—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.3%	4.6%	4.2%	3.4%	4.1%	3.5%
Expected long-term rate of return on plan assets	6.4%	6.6%	6.8%	—	—	—
Rate of compensation increase	—	4.0%	4.0%	—	—	—

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



	Postretirement Benefits

	2017			2016
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		7.1/8.4	%^(a)		7.3/8.2	%^(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		2026			2025

^(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 had the following effects in 2017:



(In millions)	1-Percentage- Point Increase			1-Percentage- Point Decrease
Effect on postretirement benefit obligation		(0.1	)		0.1

Fair Value of Pension Assets by Major Category of Plan Assets

The fair value of the pension assets by major category of plan assets as of December 31, 2017 and 2016 were as follows:



(In millions)	Total as of balance sheet date

	2017		2016
Group annuity/insurance contracts (level 3)	$	23.3	$	22.8
Collective trusts:
Cash and cash equivalents		12.5		6.9
Equity		285.9		258.8
Fixed income		277.7		235.4
Multi-strategy hedge funds		24.6		23.1
Real estate		32.6		30.7
Total	$	656.6	$	577.7

Reconciliation of Level Three Measurements

A reconciliation of Level 3 measurements was as follows:



	Group annuity/ insurance contracts

(In millions)	2017		2016
January 1	$	22.8	$	22.3
Actual return on assets related to assets still held		0.5		0.5
December 31	$	23.3	$	22.8

Schedule of Expected Benefit Payments

The following retirement benefit payments are expected to be paid:



(In millions)	Pension Benefits		Postretirement Benefits
2018	$	37.4	$	0.1
2019		39.1		0.1
2020		40.4		0.1
2021		41.6		0.1
2022		43.1		0.1
Years 2023-2027		229.9		0.3

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017		2016		2015
Domestic operations	$	554.7	$	513.8	$	387.7
Foreign operations		80.1		68.3		72.2
Income before income taxes and noncontrolling interests	$	634.8	$	582.1	$	459.9

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)	2017			2016			2015
Income tax expense computed at federal statutory income tax rate	$	222.2		$	203.7		$	161.0
Other income taxes, net of federal tax benefit		13.4			12.6			9.4
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(8.3	)		(7.6	)		(8.7	)
Tax benefit on income attributable to domestic production activities		(10.9	)		(13.0	)		(12.5	)
Net adjustments for uncertain tax positions		11.6			13.2			4.7
Share-based compensation (ASU 2016-09)		(23.9	)		(27.8	)		—
Tax Act impact		(25.7	)		—			—
Deferred tax impact of state tax rate changes		(2.0	)		(1.1	)		0.2
Valuation allowance increase (decrease)		(5.2	)		(2.1	)		0.8
Miscellaneous other, net		(11.7	)		(8.2	)		(1.5	)
Income tax expense as reported	$	159.5		$	169.7		$	153.4
Effective income tax rate		25.1	%		29.2	%		33.4	%

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)	2017			2016			2015
Unrecognized tax benefits — beginning of year	$	58.2		$	38.2		$	31.0
Gross additions — current year tax positions		31.0			10.7			4.6
Gross additions — prior year tax positions		10.9			10.4			8.3
Gross additions (reductions) — purchase accounting adjustments		4.0			9.7			0.1
Gross reductions — prior year tax positions		(9.4	)		(9.8	)		(2.1	)
Gross reductions — settlements with taxing authorities		(7.2	)		(1.0	)		(3.6	)
Impact of change in foreign exchange rates		(0.0	)		(0.0	)		(0.1	)
Unrecognized tax benefits — end of year	$	87.5		$	58.2		$	38.2

Income Taxes

Income taxes in 2017, 2016 and 2015 were as follows:



(In millions)	2017			2016			2015
Current
Federal	$	133.1		$	150.4		$	130.6
Foreign		22.4			22.3			19.7
State and other		22.8			22.9			16.1
Deferred
Federal, state and other		(27.2	)		(23.9	)		(11.3	)
Foreign		8.4			(2.0	)		(1.7	)
Total income tax expense	$	159.5		$	169.7		$	153.4

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2017 and 2016 were as follows:



(In millions)	2017			2016
Deferred tax assets:
Compensation and benefits	$	22.1		$	56.1
Defined benefit plans		43.7			82.5
Capitalized inventories		11.1			13.6
Accounts receivable		7.8			10.3
Other accrued expenses		45.6			41.4
Net operating loss and other tax carryforwards		25.6			39.7
Valuation allowance		(11.0	)		(16.4	)
Miscellaneous		3.7			2.5
Total deferred tax assets		148.6			229.7
Deferred tax liabilities:
LIFO inventories		(4.2	)		(6.7	)
Fixed assets		(44.5	)		(57.1	)
Intangible assets		(232.0	)		(210.4	)
Investment in partnership		(9.2	)		(109.3	)
Miscellaneous		(16.1	)		(0.2	)
Total deferred tax liabilities		(306.0	)		(383.7	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2017 and 2016 as follows:



(In millions)	2017			2016
Other assets	$	9.4		$	9.5
Deferred income taxes		(166.8	)		(163.5	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)

Restructuring and Other Charges (Tables)

12 Months Ended

Dec. 31, 2017

Pre Tax Restructuring and Other Charges

Pre-tax restructuring and other charges for the year ended December 31, 2017 were as follows:



	Year Ended December 31, 2017
				Other Charges ^(a)
(In millions)	Restructuring Charges			Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.4		$	1.6	$	2.2	$	5.2
Plumbing		2.8			—		—		2.8
Doors		(0.1	)		—		0.1		—
Security		4.2			5.6		0.7		10.5
Total	$	8.3		$	7.2	$	3.0	$	18.5

^(a)

^(b)	Selling, general and administrative expenses



	Year Ended December 31, 2016
			Other Charges ^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Cabinets	$	1.8	$	—	$	—	$	1.8
Plumbing		1.6		0.3		0.2		2.1
Doors		0.4		—		—		0.4
Security		10.1		4.2		0.7		15.0
Total	$	13.9	$	4.5	$	0.9	$	19.3

^(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



	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

Reconciliation of Restructuring Liability

Reconciliation of Restructuring Liability



(In millions)	Balance at 12/31/16		2017 Provision		Cash Expenditures ^(a)			Non-Cash Write-offs ^(b)			Balance at 12/31/17
Workforce reduction costs	$	2.4	$	6.7	$	(3.9	)	$	(0.2	)	$	5.0
Other		0.6		1.6		(1.3	)		(0.1	)		0.8
	$	3.0	$	8.3	$	(5.2	)	$	(0.3	)	$	5.8

^(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 12/31/15		2016 Provision		Cash Expenditures ^(c)			Non-Cash Write-offs ^(d)			Balance at 12/31/16
Workforce reduction costs	$	10.4	$	9.3	$	(17.5	)	$	0.2		$	2.4
Asset disposals		—		0.1		—			(0.1	)		—
Other		0.5		4.5		(4.1	)		(0.3	)		0.6
	$	10.9	$	13.9	$	(21.6	)	$	(0.2	)	$	3.0

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

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

Commitments (Tables)

12 Months Ended

Dec. 31, 2017

Future Minimum Rental Payments under Non-Cancelable Operating Leases

Future minimum rental payments under non-cancelable operating leases as of December 31, 2017 were as follows:


(In millions)
2018	$	31.0
2019		26.9
2020		20.7
2021		15.9
2022		13.0
Remainder		50.7
Total minimum rental payments	$	158.2

The following table summarizes activity related to our product warranty liability for the years ended December 31, 2017, 2016 and 2015.



(In millions)	2017			2016			2015
Reserve balance at the beginning of the year	$	16.2		$	16.0		$	13.0
Provision for warranties issued		25.1			25.8			29.9
Settlements made (in cash or in kind)		(24.3	)		(25.5	)		(28.3	)
Acquisition		—			0.3			1.6
Foreign currency		0.2			(0.4	)		(0.2	)
Reserve balance at end of year	$	17.2		$	16.2		$	16.0

Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017		2016		2015
Net sales:
Cabinets	$	2,467.1	$	2,397.8	$	2,173.4
Plumbing		1,720.8		1,534.4		1,414.5
Doors		502.9		473.0		439.1
Security		592.5		579.7		552.4
Net sales	$	5,283.3	$	4,984.9	$	4,579.4



(In millions)	2017			2016			2015

Operating income:
Cabinets	$	267.2		$	257.8		$	192.4
Plumbing		363.6			326.3			285.4
Doors		74.5			61.9			44.0
Security		72.4			66.6			55.9
Less: Corporate expenses^(a)		(85.6	)		(79.9	)		(81.6	)
Operating income	$	692.1		$	632.7		$	496.1
^(a) Below is a table detailing Corporate expenses:
General and administrative expense	$	(85.2	)	$	(80.9	)	$	(70.1	)
Defined benefit plan income		4.2			2.9			6.1
Recognition of defined benefit plan actuarial gains (losses)		0.5			(1.9	)		(2.5	)
Long-lived asset impairment		(5.1	)		—			—
Norcraft transaction costs^(b)		—			—			(15.1	)
Total Corporate expenses	$	(85.6	)	$	(79.9	)	$	(81.6	)

^(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)	2017			2016			2015
Total assets:
Cabinets	$	2,416.3		$	2,349.4		$	2,364.0
Plumbing		1,854.1			1,626.8			1,341.4
Doors		494.8			480.6			483.9
Security		537.4			514.5			520.7
Corporate		208.8			157.2			165.7
Total assets	$	5,511.4		$	5,128.5		$	4,875.7

Depreciation expense:
Cabinets	$	42.8		$	40.1		$	38.1
Plumbing		26.9			24.6			21.3
Doors		9.1			9.0			11.2
Security		16.8			17.2			19.5
Corporate		3.0			3.7			3.4
Depreciation expense	$	98.6		$	94.6		$	93.5

Amortization of intangible assets:
Cabinets	$	19.7		$	18.4		$	14.3
Plumbing		7.7			3.6			1.2
Doors		2.3			3.8			3.8
Security		2.0			2.3			2.3
Amortization of intangible assets	$	31.7		$	28.1		$	21.6

Capital expenditures:
Cabinets	$	63.4		$	61.7		$	61.3
Plumbing		43.5			48.3			27.2
Doors		20.8			12.9			13.3
Security		19.3			25.9			17.3
Corporate		18.0			0.5			9.4
Capital expenditures, gross		165.0			149.3			128.5
Less: proceeds from disposition of assets		(0.4	)		(3.9	)		(2.5	)
Capital expenditures, net	$	164.6		$	145.4		$	126.0

Net sales by geographic region^(a):
United States	$	4,492.2		$	4,258.5		$	3,892.9
Canada		427.6			406.4			385.1
China		202.3			175.0			163.2
Other international		161.2			145.0			138.2
Net sales	$	5,283.3		$	4,984.9		$	4,579.4

Property, plant and equipment, net:
United States	$	562.3		$	499.8		$	498.9
Mexico		89.0			90.8			74.2
Canada		50.5			45.5			39.4
China		24.8			22.7			14.4
Other international		13.4			3.7			1.0
Property, plant and equipment, net	$	740.0		$	662.5		$	627.9

^(a)	Based on country of destination

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Quarterly Financial Data

(In millions, except per share amounts)



2017	1^st		2^nd			3^rd		4^th		Full Year
Net sales	$	1,186.8	$	1,365.4		$	1,348.6	$	1,382.5	$	5,283.3
Gross profit		417.0		515.5			507.0		493.0		1,932.5
Operating income		114.9		212.4			201.8		163.0		692.1
Income from continuing operations, net of tax		77.4		140.3			129.6		128.0		475.3
Income (loss) from discontinued operations, net of tax		—		(2.6	)		—		—		(2.6	)
Net income		77.4		137.7			129.6		128.0		472.7
Net income attributable to Fortune Brands		77.4		137.7			129.5		128.0		472.6
Basic earnings (loss) per common share
Continuing operations		0.50		0.91			0.84		0.84		3.10
Discontinued operations		—		(0.02	)		—		—		(0.02	)
Net income attributable to Fortune Brands		0.50		0.89			0.84		0.84		3.08
Diluted earnings (loss) per common share
Continuing operations		0.50		0.90			0.83		0.83		3.05
Discontinued operations		—		(0.02	)		—		—		(0.02	)
Net income attributable to Fortune Brands		0.50		0.88			0.83		0.83		3.03



2016	1^st(a)		2^nd		3^rd		4^th			Full Year
Net sales	$	1,106.5	$	1,297.8	$	1,279.0	$	1,301.6		$	4,984.9
Gross profit		377.8		474.7		478.0		474.1			1,804.6
Operating income		95.5		187.7		183.1		166.4			632.7
Income from continuing operations, net of tax		61.0		125.1		121.9		104.4			412.4
Income (loss) from discontinued operations, net of tax		—		—		1.5		(0.7	)		0.8
Net income		61.0		125.1		123.4		103.7			413.2
Net income attributable to Fortune Brands		61.0		125.2		123.4		103.6			413.2
Basic earnings (loss) per common share
Continuing operations		0.39		0.82		0.79		0.68			2.67
Discontinued operations		—		—		0.01		(0.01	)		0.01
Net income attributable to Fortune Brands		0.39		0.82		0.80		0.67			2.68
Diluted earnings (loss) per common share
Continuing operations		0.38		0.80		0.77		0.67			2.61
Discontinued operations		—		—		0.01		(0.01	)		0.01
Net income attributable to Fortune Brands		0.38		0.80		0.78		0.66			2.62

(a)	Amounts revised to reflect adoption of ASU 2016-09 “Improvements to Employee Share-Based Payment Accounting.”

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Computations of Earnings (Loss) per Common Share

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



(In millions, except per share data)	2017			2016		2015
Income from continuing operations, net of tax	$	475.3		$	412.4	$	306.5
Less: Noncontrolling interests		0.1			—		0.5
Income from continuing operations for EPS		475.2			412.4		306.0
Income (loss) from discontinued operations		(2.6	)		0.8		9.0
Net income attributable to Fortune Brands	$	472.6		$	413.2	$	315.0
Earnings (loss) per common share
Basic
Continuing operations	$	3.10		$	2.67	$	1.92
Discontinued operations		(0.02	)		0.01		0.05
Net income attributable to Fortune Brands common stockholders	$	3.08		$	2.68	$	1.97
Diluted
Continuing operations	$	3.05		$	2.61	$	1.88
Discontinued operations		(0.02	)		0.01		0.05
Net income attributable to Fortune Brands common stockholders	$	3.03		$	2.62	$	1.93
Basic average shares outstanding		153.2			154.3		159.5
Stock-based awards		2.6			3.5		3.5
Diluted average shares outstanding		155.8			157.8		163.0
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.5			0.5		0.7

Other Expense, Net (Tables)

12 Months Ended

Dec. 31, 2017

Components of Other Expense , Net

The components of other expense, net for the years ended December 31, 2017, 2016 and 2015 were as follows:



(In millions)	2017		2016		2015
Asset impairment charge	$	7.0	$	—	$	—
Other items, net		0.9		1.5		4.3
Total other expense, net	$	7.9	$	1.5	$	4.3

Background and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Basis of Presentation [Line Items]
Payments made to third parties	$ 38	$ 49

Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Significant Of Accounting Policies [Line Items]
Highly liquid investments included in cash and cash equivalents, maturity period			3 months
Allowances for doubtful accounts	$ 3,300,000		$ 3,300,000	$ 7,400,000
Inventories	580,800,000		580,800,000	531,100,000
Impairment of long-lived asset		$ 3,000,000
Unrecognized tax benefits pertaining to uncertain tax positions	87,500,000		87,500,000	58,200,000	$ 38,200,000	$ 31,000,000
Income taxes, estimated net benefit	25,700,000
Tax Reform deferred tax impact of tax rate changes			62,400,000
Tax reform deemed repatriation tax Impact			28,500,000
Tax reform impact on earnings not permanently reinvested			8,200,000
Advertising costs			233,200,000	199,100,000	195,400,000
Advertising costs, reduction to net sales			65,600,000	52,500,000	63,200,000
Research and development expenses			50,700,000	53,100,000	48,700,000
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	(3,000,000)		(3,000,000)
Cash flow hedge [Member] \| Foreign exchange contracts [Member]
Significant Of Accounting Policies [Line Items]
Gain (loss) reclassified from Accumulated OCI into earnings			400,000	(3,500,000)	3,600,000
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings	(3,000,000)		(3,000,000)
Selling, general and administrative Expenses [Member]
Significant Of Accounting Policies [Line Items]
Impairment of long-lived asset			5,100,000
Customer program costs			62,400,000	44,100,000	43,200,000
Shipping and handling costs			204,700,000	197,000,000	184,600,000
Advertising costs			167,600,000	146,600,000	$ 132,200,000
Minimum [Member]
Significant Of Accounting Policies [Line Items]
Reasonably possible decrease in unrecognized tax benefits	1,500,000		1,500,000
Maximum [Member]
Significant Of Accounting Policies [Line Items]
Reasonably possible decrease in unrecognized tax benefits	$ 21,500,000		$ 21,500,000
Income Approach
Significant Of Accounting Policies [Line Items]
Goodwill recoverability weighted percentage	80.00%		80.00%
Market Approach
Significant Of Accounting Policies [Line Items]
Goodwill recoverability weighted percentage	20.00%		20.00%
Metals inventories [Member]
Significant Of Accounting Policies [Line Items]
LIFO inventories	$ 245,600,000		$ 245,600,000	235,500,000
Inventories	$ 259,300,000		$ 259,300,000	$ 244,400,000

Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Detail)	12 Months Ended
	Dec. 31, 2017
Buildings and Leasehold Improvements \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	15 years
Buildings and Leasehold 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, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventories:
Raw materials and supplies	$ 224.9	$ 207.6
Work in process	58.3	55.9
Finished products	297.6	267.6
Total inventories	580.8	531.1
Property, plant and equipment:
Land and improvements	58.7	57.0
Buildings and improvements to leaseholds	464.1	429.4
Machinery and equipment	1,167.5	1,079.8
Construction in progress	90.1	64.5
Property, plant and equipment, gross	1,780.4	1,630.7
Less: accumulated depreciation	1,040.4	968.2
Property, plant and equipment, net of accumulated depreciation	740.0	662.5	$ 627.9
Other current liabilities:
Accrued salaries, wages and other compensation	105.9	112.6
Accrued customer programs	142.8	129.3
Accrued taxes	61.4	46.3
Dividends payable	30.4	27.6
Other accrued expenses	137.5	133.2
Total other current liabilities	$ 478.0	$ 449.0

Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
	Sep. 30, 2016	May 31, 2016	Mar. 31, 2017	Dec. 31, 2017
Acquisitions and Dispositions [Line Items]
Loss on sale of product line				$ 2.4
Asset impairment charge			$ 3.2	3.2
TCL Manufacturing Limited and ROHL [Member]
Acquisitions and Dispositions [Line Items]
Business acquisition purchase price	$ 166.0
Business acquisition, liabilities assumed	$ 3.0
Goodwill expected to be deductible for income tax purposes				49.0
Riobel [Member]
Acquisitions and Dispositions [Line Items]
Payment to acquire business		$ 94.6
Victoria Plus Albert and Shaws [Member]
Acquisitions and Dispositions [Line Items]
Business acquisition purchase price				$ 125.0

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business	$ 1.5
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 (loss) on sale of business, discontinued operations		$ 7.0
Discontinued operation beginning period		Jan. 01, 2014
Pre-tax loss on sale of discontinued operations		$ 16.9
Transaction and other sale-related costs of discontinued operation		2.8
Estimated tax effect on sale of discontinued operation		$ 26.5

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

12 Months Ended

Dec. 31, 2017

USD ($)

asset_group

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Other intangible assets, net of accumulated amortization

^[1]

$ 1,912.0

$ 1,833.8

$ 1,755.3

1,162.4

1,107.0

Expected intangible amortization expense in 2018

33.0

Expected intangible amortization expense in 2019

30.0

Expected intangible amortization expense in 2020

30.0

Expected intangible amortization expense in 2021

30.0

Expected intangible amortization expense in 2022

29.0

Asset impairment charge

0.0

Carrying value of tradenames

709.9

671.8

Plumbing [Member]

Increase in gross identifiable intangible assets

^[1]

745.2

670.2

578.6

88.2

Cabinets [Member]

Number of tradenames, with the fair value exceeded their carrying value | asset_group

^[1]

$ 926.3

$ 924.3

$ 937.7

Carrying value of tradenames

$ 217.8

Victoria Plus Albert and Shaws [Member]

Goodwill increase (decrease) due to acquisition-related

$ 78.2

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

Amortizable identifiable intangible assets, estimated useful life

2 years

Maximum [Member] | Cabinets [Member] | Tradenames [Member]

Percentage of fair value of reporting unit in excess of carrying amount

10.00%

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

Amortizable identifiable intangible assets, estimated useful life

20 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, 2017

Dec. 31, 2016

^[1]

$ 1,833.8

$ 1,755.3

Acquisition-related adjustments

6.5

(1.2)

71.7

79.7

^[1]

1,912.0

1,833.8

Cabinets [Member]

^[1]

924.3

937.7

Acquisition-related adjustments

2.0

0.8

(14.2)

^[1]

926.3

924.3

Plumbing [Member]

^[1]

670.2

578.6

Acquisition-related adjustments

3.3

(2.3)

71.7

93.9

^[1]

745.2

670.2

Doors [Member]

^[1]

143.0

^[1]

143.0

Security [Member]

^[1]

96.3

96.0

1.2

0.3

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

^[1]

$ 97.5

$ 96.3

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

Goodwill and Identifiable Intangible Assets - Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Gross Carrying Amounts, Total identifiable intangibles	$ 1,449.6	$ 1,361.4
Accumulated Amortization, Total identifiable intangibles	(287.2)	(254.4)
Net Book Value, Total identifiable intangibles	1,162.4	1,107.0
Gross Carrying Amounts, Indefinite-lived tradenames	709.9	671.8
Net Book Value, Indefinite-lived tradenames	709.9	671.8
Gross Carrying Amounts, Finite Lived	739.7	689.6
Accumulated Amortization, Finite Lived	(287.2)	(254.4)
Net Book Value, Finite Lived	452.5	435.2
Tradenames [Member]
Intangible Assets [Line Items]
Gross Carrying Amounts, Finite Lived	15.7	15.8
Accumulated Amortization, Finite Lived	(9.9)	(7.3)
Net Book Value, Finite Lived	5.8	8.5
Customer and contractual relationships [Member]
Intangible Assets [Line Items]
Gross Carrying Amounts, Finite Lived	663.8	611.9
Accumulated Amortization, Finite Lived	(232.0)	(203.1)
Net Book Value, Finite Lived	431.8	408.8
Patents/proprietary technology [Member]
Intangible Assets [Line Items]
Gross Carrying Amounts, Finite Lived	60.2	61.9
Accumulated Amortization, Finite Lived	(45.3)	(44.0)
Net Book Value, Finite Lived	$ 14.9	$ 17.9

Asset Impairment Charges - Additional information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2017
Asset Impairment Charges [Line Items]
Asset impairment charge	$ 3.2	$ 3.2
Definite-lived intangible assets	3.0
Fixed Assets	$ 0.2

External Debt and Financing Arrangements - Additional Information (Detail) - USD ($)		1 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Revolving credit facility, extended expiration date			2021-06
Current portion of long-term debt			$ 0	$ 0
Prepaid debt issuance cost, write off	$ 1,300,000
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital			23,500,000	23,500,000
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding			$ 0	$ 0
Weighted-average interest rates on borrowings			0.00%	1.50%	1.00%
LIBOR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR			0.90%
LIBOR [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR			1.50%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Term loan, outstanding borrowings			$ 615,000,000	$ 540,000,000
Current portion of long-term debt			0	0
Line of Credit Facility, Maximum Borrowing Capacity			1,250,000,000	1,250,000,000
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Senior unsecured notes, price		$ 900,000,000
Senior notes, outstanding amount			892,600,000	$ 891,100,000
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%
Amended and Restated Credit Agreement [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,250,000,000
Senior Notes
Debt Instrument [Line Items]
Long-term debt payments in 2018			0
Long-term debt payments in 2019			0
Long-term debt payments in 2020			400,000,000
Long-term debt payments in 2021			0
Long-term debt payments in 2022			$ 0

External Debt and Financing Arrangements - Components of External Long-Term Debt (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 1,507,600,000	$ 1,431,100,000
Less: current portion	0	0
Total long-term debt	1,507,600,000	1,431,100,000
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty [Member]
Debt Instrument [Line Items]
Long-term debt	398,300,000	397,600,000
Senior Unsecured Notes [Member] \| Notes Due June Twenty Twenty Five [Member]
Debt Instrument [Line Items]
Long-term debt	494,300,000	493,500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	615,000,000	540,000,000
Less: current portion	$ 0	$ 0

External Debt and Financing Arrangements - Components of External Long-Term Debt (Parenthetical) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2015
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount			$ 900,000,000
Notes Due June Twenty Twenty [Member] \| Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 400,000,000	$ 400,000,000
Debt instrument, maturity date	2020-06	2020-06
Notes Due June Twenty Twenty Five [Member] \| Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 500,000,000	$ 500,000,000
Debt instrument, maturity date	2025-06	2025-06
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,250,000,000	$ 1,250,000,000
Revolving credit facility, expiration date	2021-06	2021-06

Financial Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Net settlement payable	$ 4,800,000
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings within 12 months	$ (3,000,000)
Minimum [Member]
Derivative [Line Items]
Foreign exchange contracts period	12 months
Maximum [Member]
Derivative [Line Items]
Foreign exchange contracts period	15 months
Foreign exchange contracts [Member]
Derivative [Line Items]
Notional amount of foreign currency derivative hedges	$ 282,800,000
Cash flow hedge [Member]
Derivative [Line Items]
Net losses recognized in OCI	(1,800,000)	$ (6,700,000)
Cash flow hedge [Member] \| Foreign exchange contracts [Member]
Derivative [Line Items]
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings within 12 months	$ (3,000,000)

Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 1.0	$ 3.4
Derivative liabilities, fair value	6.4	3.1
Net investment hedges [Member] \| Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, fair value		0.6
Net investment hedges [Member] \| Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	0.8	0.2
Foreign exchange contracts [Member] \| Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	0.8	2.8
Foreign exchange contracts [Member] \| Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	5.6	$ 2.9
Commodity Contracts [Member] \| Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 0.2

Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ (1.1)	$ (1.5)	$ 11.8
Cash flow hedge [Member] \| Cost of products sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	0.9	(3.5)	3.6
Fair value hedge [Member] \| Other (income) expense, net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ (2.0)	$ 2.0	$ 8.2

Fair Value Measurements - Carrying Value and Fair Value of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Carrying Value \| Revolving Credit Facility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	$ 615.0	$ 540.0
Carrying Value \| Senior Unsecured Notes [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	892.6	891.1
Fair Value \| Revolving Credit Facility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	615.0	540.0
Fair Value \| Senior Unsecured Notes [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	$ 926.3	$ 919.2

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Dec. 31, 2017
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets or liabilities measured at fair value on recurring basis		$ 0
Fixed payments to partner, year	2017-06
Fixed payments to partner, year	2024-06
Purchase of outstanding preferred shares, year	2024
Additional paid in capital excess of cash contributed	$ 5,200,000
Cash contribution by partner in joint venture	3,000,000
Level 3 [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Joint Venture liability (level 3)	8,200,000
Level 3 [Member] \| Other Noncurrent Liabilities [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Joint Venture liability (level 3)	7,200,000
Level 3 [Member] \| Other current liabilities [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Joint Venture liability (level 3)	$ 1,000,000

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset financial instruments (level 2)	$ 1.0	$ 3.4
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	8.5	7.9
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset financial instruments (level 2)	1.0	3.4
Deferred compensation program assets (level 2)	7.5	4.5
Derivative liability financial instruments (level 2)	$ 6.4	$ 3.1

Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
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	11.00%
Dividend declared, per share	$ 0.20
Preferred stock, shares authorized	60,000,000
Preferred stock, par value	$ 0.01
Common stock repurchases	3,393,462	8,807,515
Treasury stock purchases	$ 214.8	$ 424.5	$ 51.7
Stock repurchase program, remaining authorized repurchase amount	$ 558.4

Capital Stock - Common Stock and Treasury Stock Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Common shares
Balance at the beginning of the year	153,412,050	159,906,032
Stock plan shares issued	2,068,746	2,518,071
Shares surrendered by optionees	(180,537)	(204,538)
Common stock repurchases	(3,393,462)	(8,807,515)
Balance at the end of the year	151,906,797	153,412,050
Treasury shares
Balance at the beginning of the year	24,305,930	15,293,877
Stock plan shares issued	0	0
Shares surrendered by optionees	180,537	204,538
Common stock repurchases	3,393,462	8,807,515
Balance at the end of the year	27,879,929	24,305,930

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, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

^[1]

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest

$ 3,350.8

$ 3,180.3

$ 2,997.5

(634.8)

(582.1)

(459.9)

Tax (expense) benefit

159.5

169.7

153.4

Income (Loss) from Continuing Operations Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ (128.0)

$ (129.6)

$ (140.3)

$ (77.4)

$ (104.4)

$ (121.9)

$ (125.1)

$ (61.0)

(475.3)

(412.4)

(306.5)

Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax

4.4

3.8

Derivative Hedging Losses (Gains) [Member]

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

Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax

0.8

(3.5)

1.8

Prior service cost [Member]

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

Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax

^[2]

5.1

13.5

Actuarial gains (losses) [Member]

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

Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax

^[2]

0.5

(1.9)

Defined benefit plan items [Member]

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

Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax

5.6

11.6

Reclassification from AOCI, Current Period, Tax

(2.0)

(4.3)

Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax

3.6

7.3

$ 2.8

Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member]

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

Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest

0.9

(3.5)

Tax (expense) benefit

(0.1)

Income (Loss) from Continuing Operations Net of Tax, Including Portion Attributable to Noncontrolling Interest

0.8

(3.5)

Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | Foreign exchange contracts [Member]

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

Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | Commodity Contracts [Member]

0.4

$ (3.5)

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

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

$ 0.5

[1]	Amounts revised to reflect adoption of ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting."
[2]	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.

Accumulated Other Comprehensive Loss - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 2,363.0	$ 2,453.8	$ 2,263.1
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(4.4)	(3.8)
Other comprehensive income (loss), net of tax	32.7	(19.4)	(45.8)
Ending Balance	2,601.1	2,363.0	2,453.8
Foreign Currency Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(28.0)	(13.3)	31.0
Amounts classified into accumulated other comprehensive (loss) income	33.8	(14.7)	(44.3)
Other comprehensive income (loss), net of tax	33.8	(14.7)	(44.3)
Ending Balance	5.8	(28.0)	(13.3)
Derivative Hedging Losses (Gains) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(0.6)	2.1	(0.6)
Amounts classified into accumulated other comprehensive (loss) income	(1.0)	(6.2)	4.5
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(0.8)	3.5	(1.8)
Other comprehensive income (loss), net of tax	(1.8)	(2.7)	2.7
Ending Balance	(2.4)	(0.6)	2.1
Defined benefit plan items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(43.3)	(41.3)	(37.1)
Amounts classified into accumulated other comprehensive (loss) income	4.3	5.3	(1.4)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(3.6)	(7.3)	(2.8)
Other comprehensive income (loss), net of tax	0.7	(2.0)	(4.2)
Ending Balance	(42.6)	(43.3)	(41.3)
Accumulated Other Comprehensive (Loss) Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(71.9)	(52.5)	(6.7)
Amounts classified into accumulated other comprehensive (loss) income	37.1	(15.6)	(41.2)
Amounts reclassified from accumulated other comprehensive (loss) income into earnings	(4.4)	(3.8)	(4.6)
Other comprehensive income (loss), net of tax	32.7	(19.4)	(45.8)
Ending Balance	$ (39.2)	$ (71.9)	$ (52.5)

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive Plan, common stock available for issuance	6,000,000
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	$ 13.49	$ 12.70	$ 11.58
Unrecognized compensation cost related to unvested option	$ 6.0
Fair value of options vested	6.8	$ 6.0	$ 7.8
Intrinsic value of stock options exercised	$ 70.6	88.1	78.0
Performance Condition Achievement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of performance share awards vested	100,580
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs classified as liability	$ 0.6
Unrecognized pre-tax compensation cost	$ 18.9
Unrecognized compensation cost, weighted-average recognition period	1 year 6 months
Fair value of performance share awards vested	$ 20.3	$ 16.4	$ 24.9
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, weighted-average recognition period	1 year 4 months 24 days
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost	$ 6.8
Unrecognized compensation cost, weighted-average recognition period	1 year 3 months 19 days
Fair value of performance share awards vested	$ 5.6
Number of performance share awards vested	95,183
Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards issued	15,311	16,471	19,695
Common stock issued to outside directors	$ 63.43	$ 57.37	$ 46.21

Stock-Based Compensation - Pre-Tax Stock-Based Compensation Expense from Continuing Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 43.6	$ 32.0	$ 27.6
Tax benefit	15.2	11.4	9.9
Total after tax expense	28.4	20.6	17.7
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	7.4	7.2	7.4
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	21.6	17.2	13.4
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	13.6	6.7	5.9
Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1.0	$ 0.9	$ 0.9

Stock-Based Compensation - Restricted Stock Units Activity (Detail) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Number of Restricted Stock Units
Non-vested at December 31, 2016 \| shares	723,398
Granted \| shares	408,608
Vested \| shares	(338,988)
Forfeited \| shares	(64,953)
Non-vested at December 31, 2017 \| shares	728,065
Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2016 \| $ / shares	$ 49.22
Granted \| $ / shares	58.59
Vested \| $ / shares	48.13
Forfeited \| $ / shares	53.56
Non-vested at December 31, 2017 \| $ / shares	$ 54.59

Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current expected dividend yield	1.40%	1.40%	1.50%
Expected volatility	26.00%	30.00%	27.00%
Risk-free interest rate	1.90%	1.30%	1.80%
Expected term	5 years 6 months	5 years 6 months	6 years

Stock-Based Compensation - Stock Option Activity (Detail)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Options
Outstanding at December 31, 2016 \| shares	4,815,291
Granted \| shares	603,230
Exercised \| shares	(1,605,999)
Expired/forfeited \| shares	(129,564)
Outstanding at December 31, 2017 \| shares	3,682,958
Weighted-Average Exercise Price
Outstanding at December 31, 2016 \| $ / shares	$ 27.34
Granted \| $ / shares	58.43
Exercised \| $ / shares	17.73
Expired/forfeited \| $ / shares	37.02
Outstanding at December 31, 2017 \| $ / shares	$ 36.28

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

12 Months Ended

Dec. 31, 2017

$ / shares

Options Outstanding, Weighted-Average Remaining Contractual Life

3,682,958

^[1]

6 years

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 36.28

^[1]

Options Exercisable, Weighted-Average Exercise Price

2,575,203

^[2]

$ 28.64

^[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

104,500

^[1]

3 years 9 months 18 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 12.30

^[1]

Options Exercisable, Weighted-Average Exercise Price

104,500

^[2]

$ 12.30

^[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

1,250,011

^[1]

3 years 7 months 6 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 16.17

^[1]

Options Exercisable, Weighted-Average Exercise Price

1,250,011

^[2]

$ 16.17

^[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

$ 65.41

Options Outstanding, Weighted-Average Remaining Contractual Life

2,328,447

^[1]

7 years 4 months 24 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 48.16

^[1]

Options Exercisable, Weighted-Average Exercise Price

1,220,692

^[2]

$ 42.82

^[2]

[1]	At December 31, 2017, the aggregate intrinsic value of options outstanding was $118.4 million.
[2]	At December 31, 2017, the weighted-average remaining contractual life of options exercisable was 4.9 years and the aggregate intrinsic value of options exercisable was $102.5 million.

Stock-Based Compensation - Options Outstanding and Exercisable (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, aggregate intrinsic value	$ 118.4
Options exercisable, weighted-average remaining contractual life	4 years 10 months 25 days
Options exercisable, aggregate intrinsic value	$ 102.5

Stock-Based Compensation - Summarizes Information of Performance Share Awards (Detail) - Performance Awards	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at December 31, 2016 \| shares	421,600
Granted \| shares	160,196
Vested \| shares	(95,183)
Forfeited \| shares	(58,285)
Non-vested at December 31, 2017 \| shares	428,328
Non-vested at December 31, 2016 \| $ / shares	$ 48.00
Granted \| $ / shares	58.02
Vested \| $ / shares	45.13
Forfeited \| $ / shares	48.22
Non-vested at December 31, 2017 \| $ / shares	$ 52.35

Defined Benefit Plans - Additional Information (Detail)	3 Months Ended		12 Months Ended
Defined Benefit Plans - Additional Information (Detail)	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2017 USD ($) Age	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains		$ (2,500,000)	$ 500,000	$ (1,900,000)	$ (8,600,000)
Accumulated other comprehensive income, net periodic benefit cost			$ 0
Defined benefit plans, blended long-term rate of return on plan assets			6.40%
Defined Contribution Plan, cash contributions			$ 29,100,000	22,700,000	$ 18,300,000
Postretirement Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans	$ (10,700,000)			12,300,000
Prior service credits amortized over the next 5 months	10,700,000
Recognition of actuarial (losses) gains	$ (900,000)		1,400,000	(1,600,000)
Pension Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans				(100,000)
Recognition of actuarial (losses) gains			(40,600,000)	(11,700,000)
Defined benefit plans, increase (decrease) in liability			$ 5,000,000	$ 100,000
Defined benefit plans, blended long-term rate of return on plan assets			6.40%	6.60%	6.80%
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 \| Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum			0.00%
Equity Securities \| Maximum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum			75.00%
Fixed income \| Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum			25.00%
Fixed income \| Maximum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
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%
Group annuity/insurance contracts (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Investments measured using net asset value per share			$ 633,300,000	$ 554,900,000
Real estate [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets redemption notice period			45 days
Investment Assets [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets redemption notice period			95 days
Defined benefit plan items [Member] \| Waterloo [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Recognition of actuarial (losses) gains		$ (6,100,000)

Defined Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in the Projected Benefit Obligation (PBO):
Recognition of actuarial losses (gains)		$ 2.5	$ (0.5)	$ 1.9	$ 8.6
Change in Plan Assets:
Fair value of plan assets at beginning of year			577.7
Fair value of plan assets at end of year			656.6	577.7
Pension Benefits [Member]
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$ 767.7		791.7	767.7
Service cost			0.6	9.6
Interest cost			33.3	34.4
Plan amendments				0.1
Recognition of actuarial losses (gains)			40.6	11.7
Benefits paid			(33.8)	(31.8)
Projected benefit obligation at end of year			832.4	791.7	767.7
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)			832.4	791.7
Change in Plan Assets:
Fair value of plan assets at beginning of year	561.9		577.7	561.9
Actual return on plan assets			83.2	46.6
Employer contributions			29.5	1.0
Benefits paid			(33.8)	(31.8)
Fair value of plan assets at end of year			656.6	577.7	561.9
Funded status (Fair value of plan assets less PBO)			(175.8)	(214.0)
Postretirement Benefits [Member]
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	15.6		3.6	15.6
Interest cost				0.3
Plan amendments	10.7			(12.3)
Recognition of actuarial losses (gains)	$ 0.9		(1.4)	1.6
Benefits paid			(0.4)	(1.6)
Foreign exchange			(0.2)
Projected benefit obligation at end of year			1.6	3.6	$ 15.6
Change in Plan Assets:
Employer contributions			0.5	1.5
Benefits paid			(0.5)	(1.5)
Funded status (Fair value of plan assets less PBO)			$ (1.6)	$ (3.6)

Defined Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit liability	$ (175.9)	$ (216.2)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(1.1)	(1.0)
Accrued benefit liability	(174.7)	(213.0)
Net amount recognized	(175.8)	(214.0)
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(0.2)	(0.4)
Accrued benefit liability	(1.4)	(3.2)
Net amount recognized	$ (1.6)	$ (3.6)

Defined Benefit Plans - Amounts in Accumulated Other Comprehensive loss that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial (gains) losses		$ 2.5	$ (0.5)	$ 1.9	$ 8.6
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial (gains) losses			40.6	11.7
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial (gains) losses	$ 0.9		(1.4)	1.6
Other Accumulated Other Comprehensive Income \| Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	71.1		73.4	71.1
Recognition of actuarial (gains) losses			(0.9)
Current year actuarial loss (gain)			(5.3)	2.3
Ending Balance			67.2	73.4	71.1
Beginning Balance	0.1			0.1
Prior service cost recognition due to curtailment				(0.1)
Ending Balance					0.1
Total at December 31, 2017			67.2
Other Accumulated Other Comprehensive Income \| Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	0.3			0.3
Recognition of actuarial (gains) losses			1.4	(1.9)
Current year actuarial loss (gain)			(1.4)	1.6
Ending Balance					0.3
Beginning Balance	$ (6.4)		(5.1)	(6.4)
Prior service cost recognition due to plan amendments				(12.2)
Amortization			$ 5.1	13.5
Ending Balance				$ (5.1)	$ (6.4)

Defined Benefit Plans - Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial losses (gains)		$ 2.5	$ (0.5)	$ 1.9	$ 8.6
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost			0.6	9.6
Interest cost			33.3	34.4
Recognition of actuarial losses (gains)			40.6	11.7
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost				0.3
Recognition of actuarial losses (gains)	$ 0.9		(1.4)	1.6
Amortization of prior service cost (credits)	$ 10.7
Net Periodic Benefit Cost \| Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost			0.6	9.6	11.5
Interest cost			33.3	34.4	33.7
Expected return on plan assets			(37.3)	(37.2)	(40.2)
Recognition of actuarial losses (gains)			0.9		2.9
Amortization of prior service cost (credits)					0.1
Net periodic benefit (income) cost			(2.5)	6.8	8.0
Net Periodic Benefit Cost \| Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost					0.1
Interest cost				0.3	0.6
Recognition of actuarial losses (gains)			(1.4)	1.9	(0.4)
Amortization of prior service cost (credits)			(5.1)	(13.5)	(13.5)
Net periodic benefit (income) cost			$ (6.5)	$ (11.3)	$ (13.2)

Defined Benefit Plans - Schedule of Assumptions Used (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Expected long-term rate of return on plan assets	6.40%
Pension Benefits [Member]
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	3.80%	4.30%	4.60%
Rate of compensation increase		4.00%	4.00%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.30%	4.60%	4.20%
Expected long-term rate of return on plan assets	6.40%	6.60%	6.80%
Rate of compensation increase		4.00%	4.00%
Postretirement Benefits [Member]
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	3.40%	3.40%	4.10%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	3.40%	4.10%	3.50%

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, 2017

Dec. 31, 2016

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

2026

2025

Pre Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

7.10%

7.30%

Post Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

8.40%

8.20%

[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, 2017 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Effect on total of service and interest cost, 1-Percentage-Point Increase	$ (0.1)
Effect on total of service and interest cost, 1-Percentage-Point Decrease	$ 0.1

Defined Benefit Plans - Fair Value of Pension Assets by Major Category of Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	$ 656.6	$ 577.7
Group annuity/insurance contracts (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	23.3	22.8
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	12.5	6.9
Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	285.9	258.8
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	277.7	235.4
Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	24.6	23.1
Real estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension assets	$ 32.6	$ 30.7

Defined Benefit Plans - Reconciliation of Level Three Measurements (Detail) - Group annuity/insurance contracts (Level 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	$ 22.8	$ 22.3
Actual return on assets related to assets still held	0.5	0.5
Ending balance	$ 23.3	$ 22.8

Defined Benefit Plans - Schedule of Expected Benefit Payments (Detail) $ in Millions	Dec. 31, 2017 USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2018	$ 37.4
2019	39.1
2020	40.4
2021	41.6
2022	43.1
Years 2023-2027	229.9
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2018	0.1
2019	0.1
2020	0.1
2021	0.1
2022	0.1
Years 2023-2027	$ 0.3

Income Taxes - Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Income Before Income Tax [Line Items]
Domestic operations	$ 554.7	$ 513.8	$ 387.7
Foreign operations	80.1	68.3	72.2
Income before income taxes and noncontrolling interests	$ 634.8	$ 582.1	$ 459.9

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Reconciliation of income taxes			35.00%
Effective income tax rate impact related to nondeductible acquisition costs					$ 2,400,000
Tax Reform deferred tax impact of tax rate changes			$ 62,400,000
Income taxes, estimated net benefit	$ 25,700,000
Tax reform deemed repatriation tax Impact			28,500,000
Tax reform impact on earnings not permanently reinvested			8,200,000
Unrecognized tax benefits that would impact effective tax rate	53,000,000		53,000,000
Unrecognized tax expense (benefits), interest and penalty expense (benefit) recognized			2,000,000	$ 1,100,000	$ 1,000,000
Unrecognized tax benefits, accrued interest and penalties	11,800,000		11,800,000	11,000,000
Deferred tax assets, net operating losses and other tax carryforwards	25,600,000		25,600,000	$ 39,700,000
Deferred tax assets, net operating losses and other tax carryforwards	8,300,000		8,300,000
Undistributed earnings of foreign subsidiaries	50,000,000		50,000,000
Foreign and State Tax [Member]
Income Taxes [Line Items]
Income tax liability for foreign and state taxes			9,600,000
Scenario, Forecast In the first quarter of 2014
Income Taxes [Line Items]
Reconciliation of income taxes		21.00%
Minimum [Member]
Income Taxes [Line Items]
Reasonably possible decrease in unrecognized tax benefits	1,500,000		$ 1,500,000
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period			2023
Maximum [Member]
Income Taxes [Line Items]
Reasonably possible decrease in unrecognized tax benefits	$ 21,500,000		$ 21,500,000

Income Taxes - Reconciliation of Income Taxes at Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation Of Income Taxes [Line Items]
Income tax expense computed at federal statutory income tax rate	$ 222.2	$ 203.7	$ 161.0
Other income taxes, net of federal tax benefit	13.4	12.6	9.4
Foreign taxes at a different rate than U.S. federal statutory income tax rate	(8.3)	(7.6)	(8.7)
Tax benefit on income attributable to domestic production activities	(10.9)	(13.0)	(12.5)
Net adjustments for uncertain tax positions	11.6	13.2	4.7
Share-based compensation (ASU 2016-09)	(23.9)	(27.8)
Tax Act impact	(25.7)
Valuation allowance increase (decrease)	(5.2)	(2.1)	0.8
Miscellaneous other, net	(11.7)	(8.2)	(1.5)
Income tax expense as reported	$ 159.5	$ 169.7	$ 153.4
Effective income tax rate	25.10%	29.20%	33.40%
State and Local Jurisdiction [Member]
Reconciliation Of Income Taxes [Line Items]
Tax Reform deferred tax impact of tax rate changes	$ (2.0)	$ (1.1)	$ 0.2

Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Unrecognized Tax Benefits [Line Items]
Unrecognized tax benefits - beginning of year	$ 58.2	$ 38.2	$ 31.0
Gross additions - current year tax positions	31.0	10.7	4.6
Gross additions - prior year tax positions	10.9	10.4	8.3
Gross additions (reductions) - purchase accounting adjustments	4.0	9.7	0.1
Gross reductions - prior year tax positions	(9.4)	(9.8)	(2.1)
Gross reductions - settlements with taxing authorities	(7.2)	(1.0)	(3.6)
Impact of change in foreign exchange rates	0.0	0.0	(0.1)
Unrecognized tax benefits - end of year	$ 87.5	$ 58.2	$ 38.2

Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
Federal	$ 133.1	$ 150.4	$ 130.6
Foreign	22.4	22.3	19.7
State and other	22.8	22.9	16.1
Deferred
Federal, state and other	(27.2)	(23.9)	(11.3)
Foreign	8.4	(2.0)	(1.7)
Income tax expense as reported	$ 159.5	$ 169.7	$ 153.4

Income Taxes - Components of Net Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Compensation and benefits	$ 22.1	$ 56.1
Defined benefit plans	43.7	82.5
Capitalized inventories	11.1	13.6
Accounts receivable	7.8	10.3
Other accrued expenses	45.6	41.4
Net operating loss and other tax carryforwards	25.6	39.7
Valuation allowance	(11.0)	(16.4)
Miscellaneous	3.7	2.5
Total deferred tax assets	148.6	229.7
Deferred tax liabilities:
LIFO inventories	(4.2)	(6.7)
Fixed assets	(44.5)	(57.1)
Intangible assets	(232.0)	(210.4)
Investment in partnership	(9.2)	(109.3)
Miscellaneous	(16.1)	(0.2)
Total deferred tax liabilities	(306.0)	(383.7)
Net deferred tax liability	(157.4)	(154.0)
Other assets	9.4	9.5
Deferred income taxes	(166.8)	(163.5)
Net deferred tax liability	$ (157.4)	$ (154.0)

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 8.3

$ 13.9

$ 16.6

Cost of products sold [Member]

18.5

19.3

22.7

Selling, general and administrative Expenses [Member]

7.2

4.5

^[1]

5.5

^[2]

Operating Segments [Member] | Cabinets [Member]

3.0

0.9

^[1],[3]

0.6

^[2],[3]

1.4

1.8

1.2

Operating Segments [Member] | Plumbing [Member]

5.2

1.8

1.3

2.8

1.6

6.4

Operating Segments [Member] | Doors [Member]

2.8

2.1

7.1

(0.1)

0.4

Operating Segments [Member] | Security [Member]

0.4

4.2

10.1

8.1

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

10.5

15.0

13.4

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

1.6

0.1

^[2]

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

0.3

^[1]

0.1

^[2]

Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Cabinets [Member]

5.6

4.2

^[1]

5.3

^[2]

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

2.2

Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Doors [Member]

^[3]

0.2

^[1]

0.6

^[2]

Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Security [Member]

0.1

$ 0.7

^[1],[3]

Corporate [Member]

0.9

$ 0.9

[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, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.
[2]	"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.
[3]	Selling, general and administrative expenses

Restructuring and Other Charges - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, before tax	$ 18.5	$ 19.3	$ 22.7
Restructuring and other charges, after tax	$ 12.3

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 3.0

$ 10.9

8.3

13.9

$ 16.6

Cash Expenditures

^[1]

(5.2)

(21.6)

^[2]

(0.3)

(0.2)

Workforce Reduction Costs [Member]

5.8

3.0

10.9

2.4

10.4

6.7

9.3

Cash Expenditures

^[1]

(3.9)

(17.5)

^[2]

(0.2)

0.2

5.0

2.4

10.4

Asset Disposals [Member]

0.1

^[2]

(0.1)

Other [Member]

0.6

0.5

1.6

4.5

Cash Expenditures

^[1]

(1.3)

(4.1)

^[2]

(0.1)

(0.3)

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

$ 0.8

$ 0.6

$ 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.

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitment And Contingencies [Line Items]
Purchase obligations	$ 397.3
Purchase obligations due in one year	371.3
Operating leases, rent expense net	$ 42.1	$ 43.5	$ 34.9

Commitments - Future Minimum Rental Payments under Non-Cancelable Operating Leases (Detail) $ in Millions	Dec. 31, 2017 USD ($)
Schedule of Operating Leases [Line Items]
2018	$ 31.0
2019	26.9
2020	20.7
2021	15.9
2022	13.0
Remainder	50.7
Total minimum rental payments	$ 158.2

Commitments - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Product Warranty Liability [Line Items]
Reserve balance at the beginning of the year	$ 16.2	$ 16.0	$ 13.0
Provision for warranties issued	25.1	25.8	29.9
Settlements made (in cash or in kind)	(24.3)	(25.5)	(28.3)
Acquisition		0.3	1.6
Foreign currency	0.2	(0.4)	(0.2)
Reserve balance at end of year	$ 17.2	$ 16.2	$ 16.0

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

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

^[1]

Sep. 30, 2015

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 1,382.5

$ 1,348.6

$ 1,365.4

$ 1,186.8

$ 1,301.6

$ 1,279.0

$ 1,297.8

$ 1,106.5

$ 5,283.3

^[2]

$ 4,984.9

^[2]

$ 4,579.4

^[2]

163.0

201.8

212.4

114.9

166.4

183.1

187.7

95.5

692.1

632.7

496.1

1,382.5

$ 1,348.6

$ 1,365.4

1,186.8

1,301.6

$ 1,279.0

$ 1,297.8

$ 1,106.5

5,283.3

^[2]

4,984.9

^[2]

4,579.4

^[2]

Recognition of defined benefit plan actuarial gains (losses)

740.0

662.5

740.0

662.5

627.9

$ (2.5)

0.5

(1.9)

(8.6)

Long-lived asset impairment

$ (3.0)

5,511.4

5,128.5

5,511.4

5,128.5

4,875.7

98.6

94.6

93.5

31.7

28.1

21.6

Less: proceeds from disposition of assets

^[3]

165.0

149.3

128.5

(0.4)

(3.9)

(2.5)

Capital expenditures, net

164.6

145.4

126.0

Corporate [Member]

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

General and administrative expense

^[4]

(85.6)

(79.9)

(81.6)

(85.2)

(80.9)

(70.1)

Defined benefit plan income

4.2

2.9

6.1

Recognition of defined benefit plan actuarial gains (losses)

0.5

(1.9)

(2.5)

Long-lived asset impairment

(5.1)

Norcraft transaction costs

^[5]

(15.1)

Total Corporate expenses

(85.6)

(79.9)

(81.6)

208.8

157.2

208.8

157.2

165.7

3.0

3.7

3.4

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

18.0

0.5

9.4

United States

^[2]

4,492.2

4,258.5

3,892.9

^[2]

4,492.2

4,258.5

3,892.9

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

562.3

499.8

562.3

499.8

498.9

Canada

^[2]

427.6

406.4

385.1

^[2]

427.6

406.4

385.1

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

50.5

45.5

50.5

45.5

39.4

China

^[2]

202.3

175.0

163.2

^[2]

202.3

175.0

163.2

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

24.8

22.7

24.8

22.7

14.4

Other International

^[2]

161.2

145.0

138.2

^[2]

161.2

145.0

138.2

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

13.4

3.7

13.4

3.7

1.0

Mexico

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

89.0

90.8

89.0

90.8

74.2

Cabinets [Member]

2,416.3

2,349.4

2,416.3

2,349.4

2,364.0

42.8

40.1

38.1

19.7

18.4

14.3

Cabinets [Member] | Operating Segments [Member]

63.4

61.7

61.3

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

2,467.1

2,397.8

2,173.4

267.2

257.8

192.4

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

2,467.1

2,397.8

2,173.4

Plumbing [Member]

1,854.1

1,626.8

1,854.1

1,626.8

1,341.4

26.9

24.6

21.3

7.7

3.6

1.2

Plumbing [Member] | Operating Segments [Member]

43.5

48.3

27.2

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

1,720.8

1,534.4

1,414.5

363.6

326.3

285.4

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

1,720.8

1,534.4

1,414.5

Doors [Member]

494.8

480.6

494.8

480.6

483.9

9.1

9.0

11.2

2.3

3.8

Doors [Member] | Operating Segments [Member]

20.8

12.9

13.3

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

502.9

473.0

439.1

74.5

61.9

44.0

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

502.9

473.0

439.1

Security [Member]

$ 537.4

$ 514.5

537.4

514.5

520.7

16.8

17.2

19.5

2.0

2.3

Security [Member] | Operating Segments [Member]

19.3

25.9

17.3

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

592.5

579.7

552.4

72.4

66.6

55.9

Schedule Of Quarterly Financial Data [Line Items]

$ 592.5

$ 579.7

$ 552.4

[1]	Amounts revised to reflect adoption of ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting."
[2]	Based on country of destination
[3]	Capital expenditures of $17.2 million, $11.9 million and $20.0 million that have not been paid as of December 31, 2017, 2016 and 2015, respectively, were excluded from the Statement of Cash Flows.
[4]	Below is a table detailing Corporate expenses: General and administrative expense $ (85.2 ) $ (80.9 ) $ (70.1 ) Defined benefit plan income 4.2 2.9 6.1 Recognition of defined benefit plan actuarial gains (losses) 0.5 (1.9 ) (2.5 ) Long-lived asset impairment (5.1 ) - - Norcraft transaction costs(b) - - (15.1 ) Total Corporate expenses $ (85.6 ) $ (79.9 ) $ (81.6 )
[5]	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, 2017	Dec. 31, 2016	Dec. 31, 2015
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	13.00%	13.00%	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%

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

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

^[1]

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 1,382.5

$ 1,348.6

$ 1,365.4

$ 1,186.8

$ 1,301.6

$ 1,279.0

$ 1,297.8

$ 1,106.5

$ 5,283.3

^[2]

$ 4,984.9

^[2]

$ 4,579.4

^[2]

Gross profit

493.0

507.0

515.5

417.0

474.1

478.0

474.7

377.8

1,932.5

1,804.6

Income from continuing operations, net of tax

163.0

201.8

212.4

114.9

166.4

183.1

187.7

95.5

692.1

632.7

496.1

128.0

129.6

140.3

77.4

104.4

121.9

125.1

61.0

475.3

412.4

306.5

Income (loss) from discontinued operations, net of tax

(2.6)

(0.7)

1.5

(2.6)

0.8

9.0

Net income

128.0

129.6

137.7

77.4

103.7

123.4

125.1

61.0

472.7

413.2

$ 315.5

Net income attributable to Fortune Brands

$ 128.0

$ 129.5

$ 137.7

$ 77.4

$ 103.6

$ 123.4

$ 125.2

$ 61.0

$ 472.6

$ 413.2

Basic earnings (loss) per common share

$ 0.84

$ 0.91

$ 0.50

$ 0.68

$ 0.79

$ 0.82

$ 0.39

$ 3.10

$ 2.67

$ 1.92

Net income attributable to Fortune Brands

(0.02)

(0.01)

0.01

(0.02)

0.01

0.05

0.84

0.89

0.50

0.67

0.80

0.82

0.39

3.08

2.68

1.97

Diluted earnings (loss) per common share

0.83

0.90

0.50

0.67

0.77

0.80

0.38

3.05

2.61

1.88

Net income attributable to Fortune Brands

(0.02)

(0.01)

0.01

(0.02)

0.01

0.05

$ 0.83

$ 0.88

$ 0.50

$ 0.66

$ 0.78

$ 0.80

$ 0.38

$ 3.03

$ 2.62

$ 1.93

[1]	Amounts revised to reflect adoption of ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting."
[2]	Based on country of destination

Quarterly Financial Data - Additional Information (Detail) - Tradenames [Member] - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information [Line Items]
Pre-tax defined benefit plan actuarial gains (losses)	$ (0.8)	$ 1.3	$ (1.0)	$ (0.9)	$ 0.5	$ (1.9)
After-tax defined benefit plan actuarial gains (losses)	$ (0.5)	$ 0.9	$ (0.7)	$ (0.6)

Earnings Per Share - Computations of Earnings (Loss) per Common Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

^[1]

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Income from continuing operations, net of tax

$ 128.0

$ 129.6

$ 140.3

$ 77.4

$ 104.4

$ 121.9

$ 125.1

$ 61.0

$ 475.3

$ 412.4

$ 306.5

Less: Noncontrolling interests

0.1

0.5

Income from continuing operations for EPS

475.2

412.4

306.0

Income (loss) from discontinued operations

(2.6)

0.8

9.0

NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS

$ 472.6

$ 413.2

$ 315.0

Basic

$ 0.84

$ 0.91

$ 0.50

$ 0.68

$ 0.79

$ 0.82

$ 0.39

$ 3.10

$ 2.67

$ 1.92

Net income attributable to Fortune Brands common stockholders

(0.02)

(0.01)

0.01

(0.02)

0.01

0.05

0.84

0.89

0.50

0.67

0.80

0.82

0.39

3.08

2.68

1.97

Diluted

0.83

0.90

0.50

0.67

0.77

0.80

0.38

3.05

2.61

1.88