View Filing Data

Recognition of actuarial losses (gains)

$ (34.6)

$ 65.0

$ (38.2)

Non-cash pre-tax (income) expense:

Depreciation

97.1

95.9

115.0

Amortization

14.4

15.7

16.1

Stock-based compensation

15.7

11.7

7.8

Restructuring charges

1.8

0.5

19.1

Asset impairment charges

90.0

80.0

(3.5)

(5.2)

Deferred taxes

(62.4)

27.1

(21.8)

Changes in assets and liabilities including effects subsequent to acquisitions:

Decrease (increase) in accounts receivable

26.9

(20.8)

43.3

(Increase) decrease in inventories

(4.6)

(34.4)

45.1

Increase in accounts payable

6.7

16.3

12.6

(Increase) decrease in other assets

(39.0)

(5.0)

17.0

Increase (decrease) in accrued taxes

50.4

(14.4)

38.9

(Decrease) increase in accrued expenses and other liabilities

(67.0)

(15.2)

19.6

NET CASH PROVIDED BY OPERATING ACTIVITIES

175.4

138.9

269.3

INVESTING ACTIVITIES

Capital expenditures

(68.5)

(58.3)

(43.3)

Acquisitions, net of cash acquired

(6.0)

Proceeds from the disposition of assets

3.5

2.6

11.3

NET CASH USED IN INVESTING ACTIVITIES

(71.0)

(55.7)

(32.0)

FINANCING ACTIVITIES

Increase in short-term debt

1.4

1.7

1.1

Issuance of long-term debt

510.0

Repayment of long-term debt

(120.0)

(7.1)

(5.0)

Proceeds from the exercise of stock options

11.0

Net loan payments to Fortune Brands, Inc.

91.2

(96.6)

(238.6)

Dividends to Fortune Brands, Inc.

(548.9)

Fortune Brands, Inc. capital contribution(a)

^[1]

15.9

20.3

21.7

Other financing activities, net

(4.1)

0.3

(1.0)

NET CASH USED IN FINANCING ACTIVITIES

(43.5)

(81.4)

(221.8)

Effect of foreign exchange rate changes on cash

(0.8)

1.1

(6.8)

NET INCREASE IN CASH AND CASH EQUIVALENTS

60.1

2.9

8.7

Cash and cash equivalents at beginning of year

60.7

57.8

49.1

Cash and cash equivalents at end of year

120.8

60.7

57.8

Cash paid during the year for:

External interest

2.6

0.6

0.5

Related party interest

63.7

121.7

100.8

Income taxes paid directly to (received from) taxing authorities

23.0

23.7

(1.0)

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

$ 7.6

$ (0.8)

$ (9.4)

[1]	The allocation of general and administrative expenses provided by Fortune Brands, Inc. (net of tax) is included in the Consolidated Statements of Income and treated as a capital contribution. Refer to Note 3, "Related Party Transactions."

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

Common Stock [Member]

Paid-In Capital [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

Retained Deficit [Member]

Treasury Stock [Member]

Non-controlling Interests [Member]

Total

Balance at Dec. 31, 2008

$ 640.7

$ (6.7)

$ (817.8)

$ 3.1

$ (180.7)

Comprehensive income:

Derivative instruments (net of tax benefit/expense)

(39.0)

0.8

(38.2)

Translation adjustments

31.2

(3.6)

Defined benefit plan adjustments (net of tax expense)

1.9

Total comprehensive income (loss)

29.5

(39.0)

0.8

(8.7)

Dividends paid to noncontrolling interests

(1.0)

^[1]

29.8

Balance at Dec. 31, 2009

670.5

22.8

(856.8)

2.9

(160.6)

Comprehensive income:

Derivative instruments (net of tax benefit/expense)

63.8

1.2

65.0

Translation adjustments

5.4

0.5

Defined benefit plan adjustments (net of tax expense)

0.8

Total comprehensive income (loss)

6.7

63.8

1.2

71.7

Dividends paid to noncontrolling interests

(0.6)

^[1]

32.8

Balance at Dec. 31, 2010

703.3

29.5

(793.0)

3.5

(56.7)

Comprehensive income:

Derivative instruments (net of tax benefit/expense)

(35.6)

1.0

(34.6)

Translation adjustments

(1.8)

(0.7)

Defined benefit plan adjustments (net of tax expense)

(16.4)

Total comprehensive income (loss)

(18.9)

(35.6)

1.0

(53.5)

Common stock split

$ 1.6

(1.6)

Dividends paid to noncontrolling interests

(0.8)

Treasury stock purchase

$ (0.1)

(0.1)

Dividends declared to Fortune Brands, Inc.

(574.3)

Change in legal structure

^[2]

(750.9)

750.9

Stock-based compensation

26.6

Tax benefit on excercise of stock options

1.2

Consolidated Statements Of Equity [Abstract]

^[1]

2,782.1

Balance at Dec. 31, 2011

$ 1.6

$ 2,186.4

$ 10.6

$ (77.7)

$ (0.1)

$ 3.7

$ 2,124.5

[1]

The allocation of general and administrative expenses, stock-based compensation and the tax benefit on exercise of options provided by Fortune Brands, Inc. (net of tax) is included in the Consolidated Statements of Income and treated as a capital contribution. In addition, in 2011, Fortune Brands, Inc. made equity contributions totaling $2.7 billion to the Company. Any remaining related party loan balances to/from Fortune Brands, Inc. were capitalized immediately prior to the Separation. Refer to Note 3, "Related Party Transactions."

[2]

In August 2011, the Company converted from a Delaware limited liability company to a Delaware corporation. As a result, the retained deficit is included as additional paid-in-capital in accordance with SEC Staff Accounting Bulletin Topic 4:B.

Consolidated Statements Of Equity (Parenthetical) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Derivative instruments, tax (expense) benefit

$ 0.5

$ 0.3

$ 2.2

Defined benefit plan adjustments, tax (expense) benefit

11.1

5.0

2.3

^[1]

$ 2,782.1

$ 32.8

$ 29.8

[1]

Background And Basis Of Presentation	12 Months Ended
Background And Basis Of Presentation	Dec. 31, 2011
Background And Basis Of Presentation [Abstract]
Background And Basis Of Presentation	1. Background and Basis of Presentation Separation On September 27, 2011, the board of directors of Fortune Brands, Inc. ("Former Parent") approved the spin-off of Fortune Brands Home & Security, Inc. into an independent, publicly traded company (the "Separation"). References to "Home & Security," "the Company," "we," "our" and "us" refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. The Separation was accomplished by increasing the total number of issued and outstanding shares of Home & Security common stock such that 155,052,629 shares of Home & Security common stock were available for distribution to the holders of common stock of our Former Parent (the "Distribution"). The Separation was accomplished pursuant to a Separation and Distribution Agreement, dated September 27, 2011, between our Former Parent and the Company. On October 3, 2011, the Separation was completed, with stockholders of our Former Parent receiving one share of Home & Security common stock for each share of Former Parent common stock held as of 6:00 p.m. New York City Time on September 20, 2011. In addition, we paid a dividend of $548.9 million to our Former Parent prior to the Separation on October 3, 2011 and made a payment of $6.0 million to our Former Parent on January 3, 2012. Following the Separation, our Former Parent changed its name to Beam Inc. and retained no ownership interest in Home & Security. Home & Security and Beam Inc. have separate public ownership, boards of directors and management. A registration statement on Form 10, as amended (the "Form 10"), describing the Separation was filed by Home & Security with the Securities and Exchange Commission ("SEC") and was declared effective on September 2, 2011. On October 4, 2011, our common stock began trading "regular-way" on the New York Stock Exchange under the ticker symbol "FBHS". The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction, security applications and storage. Basis of Presentation The consolidated financial statements include the accounts of Home & Security and its majority-owned subsidiaries. The Company's subsidiaries operate on a 52 or 53-week fiscal year. The consolidated financial statements and segment information included in this Annual Report on Form 10-K have been derived principally from the consolidated financial statements of the Company, which prior to the Separation was a wholly-owned subsidiary of our Former Parent, using the historical results of operations, and historical basis of assets and liabilities. Our historical financial statements include allocations of certain general corporate expenses of Former Parent incurred directly by our Former Parent. These allocated expenses include costs associated with legal, finance, treasury, accounting, internal audit and general management services and are included in "Corporate" in the accompanying segment information. During the years ended December 31, 2011, 2010 and 2009, these allocations totaled $23.4 million, $32.0 million and $34.2 million, respectively. The 2011 allocation is for nine months only (January 1, 2011 through the date of the Separation) because Home & Security became an independent company on October 3, 2011. Management believes that the assumptions and methodologies underlying the allocation of these general corporate expenses are reasonable. However, such expenses may not be indicative of the actual level of expense that would have been incurred by the Company if it had operated as a stand-alone company or of the costs expected to be incurred in the future. The consolidated financial statements included in this Annual Report on Form 10-K may not necessarily reflect the Company's results of operations, financial condition and cash flows in the future or what its results of operations, financial condition and cash flows would have been had the Company been a stand-alone company during the periods presented.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Number 46R
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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Significant Accounting Policies [Abstract]

Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

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 experience and existing economic conditions. In accordance with this policy, our allowance for doubtful accounts was $10.6 million and $14.7 million as of December 31, 2011 and 2010, respectively.

Inventories The majority of our inventories are accounted for using the first-in, first-out (FIFO) 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 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, 2011 and 2010 were $159.2 million (with a current cost of $185.6 million) and $152.3 million (with a current cost of $179.2 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. As of December 31, 2011 and 2010, the carrying value of assets held for sale was not material. 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

Long-lived Assets In accordance with authoritative guidance on property, plant and equipment (Accounting Standards Codification ("ASC") 360), a long-lived asset (including amortizable identifiable intangible assets) or asset group is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of the long-lived asset or asset group. The cash flows are based on our best estimate of future cash flows derived from the most recent business projections. If this comparison indicates that there is an impairment, the amount of the impairment is calculated based on fair value. Fair value is estimated primarily using discounted expected future cash flows on a market-participant basis.

Goodwill and Indefinite-lived Intangible Assets In accordance with authoritative guidance on goodwill and other intangible assets (ASC 350), 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 and market 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 operating results of the reporting units to determine each reporting unit's fair value. The Company's reporting units are operating segments, or one level below the operating segment. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying value of a reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of a reporting unit is estimated based on a hypothetical allocation of each reporting unit's fair value to all of its underlying assets and liabilities in accordance with the requirements of ASC 350. Both of the reporting units within Advanced Material Windows & Door Systems have goodwill and tradenames for which a 10% reduction in the fair value could trigger an impairment charge in future periods. As of December 31, 2011, these reporting units had indefinite-lived tradenames with an aggregate book value of $227.0 million and goodwill with an aggregate book value of $230.2 million.

ASC 350 requires that purchased intangible assets other than goodwill be amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life.

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

Defined Benefit Plans We provide a range of benefits to employees and retired employees, including pension, postretirement, post-employment and health care benefits.

In the fourth quarter of 2011, we elected to change our method of recognizing defined benefit costs. Previously, for our defined benefit plans, we used a calculated value for the market-related value of plan assets reflecting changes in the fair value of plan assets over a five-year period. In addition, actuarial gains or losses in excess of 10 percent of the greater of the market-related value of plan assets or the plans' projected benefit obligation (the "corridor") were recognized over the remaining service life of plan participants. For postretirement benefit plans, we used a dual corridor where actuarial gains or losses in excess of 20 percent of the projected benefit obligation were recognized faster. Under our new accounting method, we recognize changes in the fair value of plan assets and net actuarial gains or losses in excess of the corridor immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We believe that this new policy is preferable as it reduces the delay in recognition of actuarial gains and losses outside the corridor. This change has been reported through retrospective application of the new policy to all periods presented. The impacts of adjustments made to the financial statements are summarized below:

Consolidated Statement of Income



(In millions, except per share amounts)	Year Ended December 31, 2011

	Before Accounting Change		Revised			Effect of Change
Cost of products sold	$	2,297.3	$	2,332.1		$	34.8
Selling, general and administrative expenses		868.9		900.6			31.7
Operating income (loss)		50.9		(15.6	)		(66.5	)
Income (loss) before income taxes		22.9		(43.6	)		(66.5	)
Income tax provision		15.9		(9.0	)		(24.9	)
Net income (loss)		7.0		(34.6	)		(41.6	)
Net income (loss) attributable to Home & Security		6.0		(35.6	)		(41.6	)
Basic and diluted earnings (loss) per common share		0.04		(0.23	)		(0.27	)



(In millions, except per share amounts)	Year Ended December 31, 2010							Year Ended December 31, 2009

	Previously Reported		Revised		Effect of Change			Previously Reported			Revised			Effect of Change
Cost of products sold	$	2,182.4	$	2,177.1	$	(5.3	)	$	2,104.3		$	2,101.7		$	(2.6	)
Selling, general and administrative expenses		839.6		834.3		(5.3	)		815.2			813.1			(2.1	)
Operating income		187.8		198.4		10.6			49.4			54.1			4.7
Income (loss) before income taxes		72.5		83.1		10.6			(34.8	)		(30.1	)		4.7
Income tax provision		14.1		18.1		4.0			6.3			8.1			1.8
Net income (loss)		58.4		65.0		6.6			(41.1	)		(38.2	)		2.9
Net income (loss) attributable to Home & Security		57.2		63.8		6.6			(41.9	)		(39.0	)		2.9
Basic and diluted earnings (loss) per common share		0.37		0.41		0.04			(0.27	)		(0.25	)		0.02

Consolidated Balance Sheet


(In millions)	Year Ended December 31, 2010
	Previously Reported			Revised			Effect of Change
Inventories	$	333.0		$	332.1		$	(0.9	)
Loans to Former Parent		572.8			571.7			(1.1	)
Other current assets		127.1			127.3			0.2
Total assets		4,259.4			4,257.6			(1.8	)
Accumulated other comprehensive loss		(76.3	)		29.5			105.8
Retained deficit		(685.4	)		(793.0	)		(107.6	)
Total Home & Security equity		(58.4	)		(60.2	)		(1.8	)
Total equity		(54.9	)		(56.7	)		(1.8	)
Total liabilities and equity		4,259.4			4,257.6			(1.8	)

Consolidated Statement of Cash Flows



(In millions)	Year Ended December 31, 2010									Year Ended December 31, 2009

	Previously Reported			Revised			Effect of Change			Previously Reported			Revised			Effect of Change
Cash flows from operating activities:
Net income (loss)	$	58.4		$	65.0		$	6.6		$	(41.1	)	$	(38.2	)	$	2.9
Recognition of actuarial gains		—			(3.5	)		(3.5	)		—			(5.2	)		(5.2	)
Deferred taxes		23.0			27.1			4.1			(23.7	)		(21.8	)		1.9
(Decrease) increase in accrued expenses and other liabilities		(8.0	)		(15.2	)		(7.2	)		19.2			19.6			0.4

Consolidated Statement of Equity



(In millions)	Year Ended December 31, 2010									Year Ended December 31, 2009

	Previously Reported			Revised			Effect of Change			Previously Reported			Revised			Effect of Change
Retained (deficit) earnings
Beginning balance	$	(742.6	)	$	(856.8	)		(114.2	)	$	(700.7	)	$	(817.8	)	$	(117.1	)
Net income (loss) attributable to Home & Security		57.2			63.8			6.6			(41.9	)		(39.0	)		2.9
Ending balance		(685.4	)		(793.0	)		(107.6	)		(742.6	)		(856.8	)		(114.2	)
Accumulated other comprehensive loss (income)
Beginning balance		(90.1	)		22.8			112.9			(122.2	)		(6.7	)		115.5
Defined benefit plan adjustments		7.9			0.8			(7.1	)		4.5			1.9			(2.6	)
Ending balance		(76.3	)		29.5			105.8			(90.1	)		22.8			112.9
Total equity		(54.9	)		(56.7	)		(1.8	)		(159.3	)		(160.6	)		(1.3	)

We record amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. 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 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 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 the Company's plans, which are presented in Note 12, "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 the Company's financial position or results of operations. We will continue to monitor these assumptions as market conditions warrant.

Litigation Contingencies Our businesses are subject to risks related to threatened or pending litigation and are routinely defendants in lawsuits associated with the normal conduct of business. Liabilities and costs associated with litigation-related loss contingencies require estimates and judgments based on our knowledge of the facts and circumstances surrounding each matter and the advice of our legal counsel. We record liabilities for litigation-related losses when a loss is probable and we can reasonably estimate the amount of the loss in accordance with authoritative guidance on contingencies (ASC 450). We evaluate the measurement of recorded liabilities each reporting period based on the 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 authoritative guidance on income taxes (ASC 740), 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.

The Company is included in the consolidated U.S. federal income tax return of our Former Parent through the date of Separation. The current and deferred tax expense recorded in the consolidated financial statements has been determined by applying the provisions of ASC 740 as if the Company were a separate taxpayer.

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 results of operations and financial condition in the period in which such changes occur. As of December 31, 2011, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $35.4 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $3 million to $15 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

As a result of the Separation and related transactions, the Company remitted foreign earnings and recorded an associated tax liability of approximately $9.1 million during 2011. However, as a stand-alone company, we intend to permanently reinvest the earnings of our foreign subsidiaries. Consequently, we have not provided deferred income taxes on undistributed earnings of foreign subsidiaries.

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 employee benefit 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 recognized in "net sales" include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. The costs typically recognized in "selling, general and administrative expenses" include product displays, point of sale materials, and media production costs. 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, level 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).

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 $154.0 million, $133.2 million and $121.9 million in 2011, 2010 and 2009, respectively.

Advertising costs, which amounted to $181.6 million, $173.5 million and $152.3 million in 2011, 2010 and 2009, respectively, are principally expensed as incurred. Advertising costs include product displays, media production costs, and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $49.8 million, $49.8 million and $44.6 million in 2011, 2010 and 2009, respectively. Advertising costs recorded in selling, general and administrative expenses were $131.8 million, $123.7 million and $107.7 million in 2011, 2010 and 2009, respectively.

Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $35.1 million, $33.4 million and $31.7 million in 2011, 2010 and 2009, respectively, are expensed as incurred.

Stock-based Compensation Stock-based compensation expense, measured as the fair value of an award on the date of grant, is recognized in the financial statements over the period that an employee is required to provide services in exchange for the award. The fair value of each option award is measured on the date of grant using the Black-Scholes option-pricing model. The fair value of each performance award is based on the stock price at the date of grant and the probability of meeting performance targets. The fair value of each restricted stock unit granted is equal to the share price at the date of grant. See Note 11, "Stock-Based Compensation," for additional information.

Earnings Per Share Earnings per common share is calculated by dividing net income attributable to Home & Security by the weighted-average number of shares of common stock outstanding during the year. The number of basic and diluted shares outstanding are the same. See Note 19, "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 (income), net.

Derivative Financial Instruments In accordance with authoritative guidance on derivatives and hedging (ASC 815), 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 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.

Derivative gains or losses included in AOCI are reclassified into earnings at the time the forecasted revenue or expense is recognized. Deferred currency losses of $0.5 million were reclassified into earnings for the year ended December 31, 2011. Deferred currency gains of $0.1 million and $3.5 million were reclassified into earnings in 2010 and 2009, respectively. Based on foreign exchange rates as of December 31, 2011, we estimate that $1.0 million of net currency derivative losses included in OCI as of December 31, 2011 will be reclassified to earnings within the next twelve months.

Recently Issued Accounting Standards

Revenue Arrangements with Multiple Deliverables

In October 2009, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) 2009-13, "Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force." This guidance allows entities to allocate consideration in multiple deliverable arrangements in a manner that reflects a transaction's economics. The guidance requires expanded disclosure. It was effective for fiscal years beginning on or after June 15, 2010 (calendar year 2011 for Home & Security) and could be applied either prospectively or retrospectively. Adoption of this standard did not have a material impact on our financial statements and disclosures.

Fair Value Measurement

In May 2011, the FASB issued new guidance on fair value measurement and disclosure requirements (ASU 2011-04, "Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs"). The new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. The amendment is effective for interim and annual periods beginning after December 15, 2011 (calendar year 2012 for Home & Security). We do not believe that adoption of this standard will have a material impact on our financial statements and disclosures.

Presentation of Comprehensive Income

In June 2011, the FASB issued ASU 2011-05, "Statement of Comprehensive Income." This standard requires entities to present items of net income and other comprehensive income either in one continuous statement or in two separate, but consecutive, statements. The new requirements are effective for public entities as of the beginning of the fiscal year that begins after December 15, 2011 (calendar year 2012 for Home & Security). Full retrospective application is required. Early adoption is permitted. We believe that adoption of this standard will not have a material impact on our financial statements.

Testing Goodwill for Impairment

In September 2011, the FASB issued ASU 2011-08, "Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment," to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The amendment is effective for interim and annual periods beginning after December 15, 2011 (calendar year 2012 for Home & Security). Early adoption is permitted. We are assessing the impact the adoption of this standard will have on our financial statements. We believe that adoption of this standard will not have a material impact on our financial statements.

Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

3. Related Party Transactions

Prior to the Separation, Home & Security had certain related party relationships with our Former Parent and its subsidiaries, as discussed below. Pursuant to the Separation and Distribution Agreement, the Indemnification Agreement and certain other agreements, our Former Parent agreed to indemnify us from certain liabilities and we agreed to indemnify our Former Parent from certain liabilities, as discussed further in the sections entitled "Certain Relationships and Related Party Transactions — Agreements with Fortune Brands, Inc." included in the Form 10. Indemnities that we may be required to provide our Former Parent may be significant and could negatively impact our business, particularly indemnities relating to our actions that could impact the tax-free nature of the Distribution. Third parties could also seek to hold us responsible for any of the liabilities that our Former Parent has agreed to retain. Even if we ultimately succeed in recovering from our Former Parent any amounts for which we are held liable, we may be temporarily required to bear these losses ourselves.

Upon the Separation, our Former Parent ceased providing financing, cash management and treasury services to the Company. Immediately prior to the Separation, on October 3, 2011, Home & Security paid a dividend to our Former Parent in the amount of $500 million. In addition, the Company paid a dividend of $48.9 million to our Former Parent, prior to the Separation on October 3, 2011 and made a payment of $6.0 million to our Former Parent on January 3, 2012. These two payments represented U.S. cash balances generated from August 26, 2011, the date of the conversion of Fortune Brands Home & Security LLC from a Delaware limited liability company to a Delaware corporation, through the date of the Separation.

Financing and Cash Management Historically, our Former Parent provided financing, cash management and treasury services to Home & Security. The Company's U.S. cash balances were swept by our Former Parent on a daily basis, and the Company received funding from our Former Parent for operating and investing cash needs. Cash transferred to and from the Company was recorded in the form of loans from or to our Former Parent in the accompanying financial statements. Loans accrued interest at rates ranging from 1.3% to 6.0%. The weighted-average interest rate on loans to/from our Former Parent was 3.4%, 4.4% and 3.0% in 2011, 2010 and 2009, respectively. Related party interest expense and income are shown below.



(In millions)	2011			2010			2009
Related party interest expense	$	29.3		$	130.9		$	89.7
Related party interest income		(6.1	)		(14.9	)		(4.8	)
Related party interest, net	$	23.2		$	116.0		$	84.9

A summary of outstanding loans to/from our Former Parent as of December 31, 2011, 2010 and 2009 is shown below. In 2011, our Former Parent made equity contributions totaling $2.7 billion to Home & Security capitalizing all outstanding loan balances.



(In millions)	2011		2010			2009
Loans to Former Parent — current	$	—	$	(571.7	)	$	(523.4	)
Loans from Former Parent — long-term		—		3,214.0			3,224.9
Net loans from Former Parent	$	—	$	2,642.3		$	2,701.5

General and Administrative Services Until consummation of the Separation, our Former Parent performed certain functions and services on behalf of Home & Security. Refer to Note 1, "Background and Basis of Presentation," for additional information.

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 7: 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.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Balance Sheet Information [Abstract]

Balance Sheet Information

12 Months Ended

Dec. 31, 2011

Balance Sheet Information

4. Balance Sheet Information

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



(In millions)	2011		2010
Inventories:
Raw materials and supplies	$	137.1	$	140.7
Work in process		39.9		39.1
Finished products		159.3		152.3
Total inventories	$	336.3	$	332.1

Property, plant and equipment:
Land and improvements	$	48.9	$	53.8
Buildings and improvements to leaseholds		328.2		334.0
Machinery and equipment		1,058.2		1,041.4
Construction in progress		42.1		32.1
Property, plant and equipment, gross		1,477.4		1,461.3
Less: accumulated depreciation		951.6		911.3
Property, plant and equipment, net of accumulated depreciation	$	525.8	$	550.0

Other current liabilities:
Accrued salaries, wages and other compensation	$	74.7	$	105.5
Accrued customer programs		76.8		90.7
Other accrued expenses		164.3		124.5
Total other current liabilities	$	315.8	$	320.7

Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets [Abstract]

Goodwill And Other Intangible Assets

5. Goodwill and Other Intangible Assets

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


(In millions)	Kitchen & Bath Cabinetry			Plumbing & Accessories		Advanced Material Windows & Door Systems			Security & Storage			Total Goodwill
Balance at December 31, 2009:
Goodwill	$	490.3		$	569.7	$	679.3		$	165.4		$	1,904.7
Accumulated impairment losses		—			—		(451.3	)		(90.1	)		(541.4	)
Total goodwill, net		490.3			569.7		228.0			75.3		$	1,363.3
2010 translation adjustments		1.4			—		—			0.2			1.6
Balance at December 31, 2010:
Goodwill		491.7			569.7		679.3			165.6		$	1,906.3
Accumulated impairment losses		—			—		(451.3	)		(90.1	)		(541.4	)
Total goodwill, net		491.7			569.7		228.0			75.5		$	1,364.9
2011 translation adjustments		(0.5	)		—		—			—			(0.5	)
Acquisition-related adjustments		—			—		2.2			—			2.2
Balance at December 31, 2011:
Goodwill		491.2			569.7		681.5			165.6		$	1,908.0
Accumulated impairment losses		—			—		(451.3	)		(90.1	)		(541.4	)
Total goodwill, net	$	491.2		$	569.7	$	230.2		$	75.5		$	1,366.6

We also had indefinite-lived intangible assets, principally tradenames, of $574.8 million and $665.9 million as of December 31, 2011 and 2010, respectively. The decrease of $91.1 million was primarily due to tradename impairments in the Advanced Material Windows & Door Systems segment (see discussion below).

Amortizable identifiable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, 5 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion and other relevant factors. The gross carrying value and accumulated amortization of amortizable intangible assets were $326.2 million and $203.7 million, respectively, as of December 31, 2011, compared to $325.0 million and $192.1 million, respectively, as of December 31, 2010. The gross carrying value increase of $1.2 million was due to the acquisition of a regional windows business ($5.8 million), partially offset by the write-down of a regional cabinet tradename ($4.1 million) and changes in foreign currency translation adjustments ($0.5 million).

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2011 and 2010 were as follows:


	As of December 31, 2011							As of December 31, 2010
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets — tradenames	$	616.8	$	(42.0	)^(a)	$	574.8	$	707.9	$	(42.0	)^(a)	$	665.9
Amortizable intangible assets
Tradenames		15.5		(5.4	)		10.1		17.3		(7.0	)		10.3
Customer and contractual relationships		270.2		(163.7	)		106.5		267.2		(152.0	)		115.2
Patents/proprietary technology		40.5		(34.6	)		5.9		40.5		(33.1	)		7.4
Total		326.2		(203.7	)		122.5		325.0		(192.1	)		132.9
Total identifiable intangibles	$	943.0	$	(245.7	)	$	697.3	$	1,032.9	$	(234.1	)	$	798.8

^(a)	Accumulated amortization prior to the adoption of revised authoritative guidance on goodwill and other intangibles assets.

The Company expects to record intangible amortization of approximately $11 million in 2012 through 2016.

In the fourth quarter of 2011, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $90.0 million ($55.3 million after tax) in our Advanced Material Windows & Door Systems segment. These charges were primarily the result of reduced revenue growth and profit margin expectations associated with our Simonton tradename over the next two to three years. Our revenue and profit margin expectations were lowered based upon the results of our annual planning process that was completed in the fourth quarter and included consideration of our actual fourth quarter 2011 results, including lower 2011 sales due to the expiration of U.S. tax incentives for purchases of energy-efficient home products, as well as our projection of the recovery of the U.S. home products market. Both of the reporting units within Advanced Material Windows & Door Systems have tradenames and goodwill. Any future reduction in the estimated fair value of the tradename would result in an impairment charge. The estimated excess fair value in the reporting units of the Advanced Material Windows & Door Systems segment is less than 10% and accordingly, any further reduction in the estimated fair values could trigger a goodwill impairment charge in future periods. As of December 31, 2011, these reporting units had indefinite-lived tradenames with an aggregate book value of $227.0 million and goodwill with an aggregate book value of $230.2 million.

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

We did not record any goodwill or indefinite-lived intangible asset impairment charges in 2010 or 2009.

The Company cannot predict the occurrence of certain events that might adversely affect the carrying value of goodwill and other intangible assets. Such events may include, but are not limited to, the impact of the economic environment, a material negative change in relationships with significant customers, and strategic decisions made in response to economic and competitive conditions. While our cash flow projections used to assess impairment of our goodwill and other intangible assets are influenced by a number of variables, they are most significantly influenced by our projection for the recovery of the U.S. home products markets in the next 3 to 5 years. We reevaluate our projection of the U.S. home products market periodically and in connection with our annual operating plans finalized in the fourth quarter of each year. The U.S. home products market is highly dependent on U.S. new home construction which has fallen to, and remains at, near historic lows. Our projection for the U.S. home products markets is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, and the rate of home foreclosures. Significant changes in these and other factors could cause us to change our cash flow projections in future periods which could trigger impairment of goodwill or indefinite-lived intangible assets in the period in which such changes occur.

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

Acquisition	12 Months Ended
Acquisition	Dec. 31, 2011
Acquisition [Abstract]
Acquisition	6. Acquisition In the third quarter of 2011, we acquired a regional windows business for $6 million in cash. This acquisition was not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements.

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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External Debt And Financing Arrangements [Abstract]

External Debt And Financing Arrangements

12 Months Ended

Dec. 31, 2011

External Debt And Financing Arrangements

7. External Debt and Financing Arrangements

On August 22, 2011, we signed a $650 million, 5-year committed revolving credit facility as well as a $350 million, 5-year term loan. Both facilities are to be used for general corporate purposes, including for financing the $500 million dividend we paid to our Former Parent immediately prior to the Separation. On October 4, 2011, Home & Security made an initial borrowing of $510 million under these facilities. On December 31, 2011, our outstanding borrowing under these facilities was $400.0 million. The interest rates under these facilities are variable based on LIBOR at the time of the borrowing and the Company's leverage as measured by a debt to Adjusted EBITDA ratio. Based upon the Company's debt to Adjusted EBITDA ratio, the Company's borrowing rate could range from LIBOR + 1.0% to LIBOR + 2.0%. The credit facilities also include a minimum Consolidated Interest Coverage Ratio requirement of 3.0 to 1.0. The Consolidated Interest Coverage Ratio is defined as the ratio of Adjusted EBITDA to Consolidated Interest Expense. Adjusted EBITDA is defined as consolidated net income before interest expense, income taxes, and depreciation and amortization of intangible assets, losses from asset impairments, and certain other adjustments. Consolidated Interest Expense is as disclosed in our financial statements. The credit facility also includes a Maximum Leverage Ratio of 3.5 to 1.0 as measured by the ratio of our debt to Adjusted EBITDA. The Maximum Leverage Ratio is permitted to increase to 3.75 to 1.0 for three succeeding quarters in the event of an acquisition.

At December 31, 2011 and 2010, there were $3.8 million and $3.0 million of external short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes. These amounts pertained to uncommitted bank lines of credit in China and India, which provide for unsecured borrowings for working capital of up to $22.7 million and $15.5 million, as of December 31, 2011 and 2010, respectively. The weighted-average interest rates on these borrowings were 14.3%, 3.2% and 9.8% in 2011, 2010 and 2009, respectively. There were no amounts outstanding under committed short-term bank credit agreements at December 31, 2011 and 2010.

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



(In millions)	2011		2010
$650 million revolving credit agreement due October 2016	$	50.0	$	—
$350 million term loan due October 2016		350.0		—
Industrial revenue bonds due in 2016		6.8		6.8
Industrial revenue bonds due in 2021 (repaid in December 2011)		—		10.0
Total debt		406.8		16.8
Less: current portion		17.5		—
Total long-term debt	$	389.3	$	16.8

Term loan amortization payments during the next five years as of December 31, 2011 were $17.5 million in 2012, $33.3 million in 2013, $29.9 million in 2014, $26.9 million in 2015, and the remaining $242.4 million in 2016.

The interest rates on the long-term debt are based on a floating rate. In our debt agreements, there are normal and customary events of default which would permit the lenders of any debt agreement 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, 2011.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Financial Instruments

12 Months Ended

Dec. 31, 2011

Financial Instruments [Abstract]

Financial Instruments

8. 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. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company.

Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. From time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. There were no material commodity swap contracts outstanding for the years ended December 31, 2011 and 2010.

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 income statement. Any ineffectiveness was immaterial in the years ended December 31, 2011 and 2010. The effective portions of cash flow hedges are reported in OCI and are recognized in the statement of income when the hedged item affects earnings. The ineffective portion of all hedges is recognized in current period earnings. In addition, changes in the fair value of all economic hedge transactions are immediately recognized in current period earnings. Our primary foreign currency hedge contracts pertain to the Canadian dollar, the Chinese yuan and the Mexican peso. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2011 was $142.3 million, representing a net settlement receivable of $1.5 million. Based on foreign exchange rates as of December 31, 2011, we estimate that $1.0 million of net foreign currency derivative losses included in other comprehensive income as of December 31, 2011 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, 2011 and 2010 were:



		Fair Value

(In millions)		2011		2010
Assets:
Foreign exchange contracts	Other current assets	$	2.5	$	1.2
Commodity contracts	Other current assets		0.1		2.0
	Total assets	$	2.6	$	3.2
Liabilities:
Foreign exchange contracts	Other current liabilities	$	1.0	$	1.0
Commodity contracts	Other current liabilities		0.5		—
	Total liabilities	$	1.5	$	1.0

The effects of derivative financial instruments on the consolidated statements of income and OCI for the years ended December 31, 2011 and 2010 were:



(In millions)	Gain (Loss) Recognized in Income

	Location

Type of hedge		2011			2010
Cash flow	Net sales	$	(0.6	)	$	(0.5	)
	Cost of products sold		1.6			1.8
Fair value	Other income (expense), net		—			0.3
Total		$	1.0		$	1.6

For cash flow hedges that are effective, the amounts recognized in OCI were $0.8 million and $2.1 million in 2011 and 2010, respectively. In the years ended December 31, 2011, 2010 and 2009, the ineffective portion of cash flow hedges recognized in other expense (income), net, was insignificant.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

9. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 and 2010 were as follows:



(In millions)	Fair Value

	2011		2010
Assets:
Derivative asset financial instruments (level 2)	$	2.6	$	3.2
Deferred compensation program assets (level 1)		4.2		5.1
Total assets	$	6.8	$	8.3
Liabilities:
Derivative liability financial instruments (level 2)	$	1.5	$	1.0

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.

Authoritative guidance on fair value measurement (ASC 820) establishes 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 that are Level 3.

Because the interest rate on the Company's long-term debt is variable, the aggregate carrying value at December 31, 2011 and 2010 of $406.8 million and $16.8 million, respectively, approximates the fair value.

In 2011, we recorded intangible asset impairment charges of $90.0 million. Refer to Note 5, "Goodwill and Other Intangible Assets," for additional information. In accordance with ASC 820, below is the disclosure for assets measured at fair value on a nonrecurring basis.



(in millions)	Fair Value Measurements Using Significant Unobservable Inputs (level 3)		Total Losses
Indefinite-lived intangible assets	$	227.0	$	90.0

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Number 157
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Capital Stock

12 Months Ended

Dec. 31, 2011

Capital Stock [Abstract]

Capital Stock

10. 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 2011 and 2010 were as follows:



	Common Shares					Treasury Shares

	2011			2010		2011		2010
Balance at the beginning of the year		1,000			1,000		—		—
Stock split on September 27, 2011		155,051,629			—		—		—
Stock plan shares issued		958,860			—		—		—
Shares surrendered by optionees		(3,357	)		—		3,357		—
Balance at the end of the year		156,008,132			1,000		3,357		—

Since the Separation, no dividends have been paid on our common stock.

The Company has 60,000,000 authorized shares of preferred stock, par value $0.01 per share. Of the 60,000,000 shares authorized, 750,000 shares have been designated as Series A Junior Participating Preferred Stock, par value $0.01 per share. At December 31, 2011, no shares of our preferred stock were outstanding, and we have no present plans to issue any shares of preferred stock. 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.

Effective September 6, 2011, the Company's Board of Directors adopted a stockholder rights plan (the "Rights Plan") and declared a dividend distribution of one right for each outstanding share of common stock. Each right entitles the holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at an initial exercise price of $65.00 per one one-thousandth of a share. The Rights Plan is intended to protect the Company's stockholders against any coercive, unfair or inadequate tender offers and other abusive takeover tactics that may or may not occur and to preserve the Company's long-term value for the benefit of its stockholders. Rights become exercisable after ten days following the acquisition by a person or group of 15% or more of the Company's outstanding common stock, or ten business days (or later if determined by the Board of Directors in accordance with the plan) after the commencement of a tender offer or exchange offer to acquire 15% or more of the outstanding common stock. If such a person or group acquires 15% or more of the common stock, each right (other than such person's or group's rights, which will become void) will entitle the holder to purchase, at the exercise price, common stock having a market value equal to twice the exercise price. In certain circumstances, the rights may be redeemed by the Company at an initial redemption price of $0.01 per right. If not redeemed, the rights will expire on October 3, 2012.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: 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=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 17: 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.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 18: 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=6928386&loc=d3e21506-112644

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

Prior to and in connection with the Separation, the Company adopted, and our Former Parent as its sole stockholder prior to the Separation approved, the Fortune Brands Home & Security, Inc. 2011 Long-Term Incentive Plan (the "Plan"). The Plan provides for the granting of stock options, performance share awards, restricted stock units, and other equity-based awards, to employees and consultants. A maximum of 30.0 million shares of common stock may be awarded under the Plan. As of December 31, 2011, 6.7 million shares of Home & Security common stock were available for issuance under this Plan. Upon the exercise of stock options or the payout of restricted stock units, shares of common stock are issued from authorized common shares. Prior to the Separation, employees of Home & Security participated in our Former Parents' stock-based compensation plans.

At the time of the Separation, all outstanding equity awards granted by our Former Parent held by Home & Security employees were converted into Home & Security equity. The manner of conversion for each employee was determined based on the type of award, vesting status of the award, and the employment status of the employee at the Separation date of October 3, 2011.

The conversion of stock options constituted a modification of those stock option awards under the provisions of ASC 718 because certain awards did not have antidilution provisions. Stock-based compensation relating to the incremental fair value between Former Parent awards held prior to the Separation and Home & Security awards subsequent to the modification resulted in additional pre-tax stock-based compensation charges of $2.4 million related to previously vested options.

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

Restricted stock units have been granted to certain officers of the Company and represent the right to receive unrestricted shares of stock based on service. Certain restricted stock units are also subject to attaining specific performance criteria and are generally subject to performance criteria. Compensation cost is recognized over the service period. The fair value of each restricted stock unit granted is equal to the share price at the date of grant. Restricted stock units generally vest after a three-year period (although certain grants vest after two or four years).

The fair value of Home & Security options granted subsequent to the Separation and our Former Parents' stock options granted to Home & Security employees prior to the Separation for the years ended December 31, 2011, 2010 and 2009 was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:



	Home & Security grants		Former Parent grants

	2011		2011		2010		2009
Current expected dividend yield		1.5%		2.0%		2.1%		2.1%
Expected volatility		39.0%		33.2%		34.1%		33.3%
Risk-free interest rate		1.2%		2.3%		2.2%		2.1%
Expected term		6.5 years		5.5 years		4.5 years		4.5 years

For periods presented prior to the Separation date of October 3, 2011, all stock-based compensation awards were made by our Former Parent and used our Former Parent assumptions for volatility, dividend yield and term. The weighted-average grant date fair value of stock options granted by our Former Parent during the years ended December 31, 2011, 2010 and 2009 was $16.98, $11.28 and $10.81, respectively.

Home & Security assumptions were utilized for grants made on or after October 4, 2011. The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, stage of life and with similar market capitalization since there is not sufficient historical volatility data for Home & Security common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. It is based on the simplified method from the SEC'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 Plan during the years ended December 31, 2011 was $4.20.

In the year ended December 31, 2011, we recognized pre-tax stock-based compensation expense for stock options in net income of $14.1 million ($9.4 million after tax). In the year ended December 31, 2010, we recognized pre-tax stock-based compensation expense for stock options in net income of $11.7 million ($7.9 million after tax). In the year ended December 31 2009, we recognized pre-tax stock-based compensation expense for stock options in net income of $7.8 million ($6.1 million after tax). Of the total pre-tax stock-based compensation expense, the amounts included in selling, general and administrative expenses in the consolidated statements of income were $12.8 million, $9.9 million and $5.9 million, in 2011, 2010 and 2009, respectively. Compensation costs that were capitalized in cost of products sold were not material.

A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2011 is as follows. All awards granted have been adjusted to reflect the conversion as of the date of the Separation as all stock options prior to the Separation were options in our Former Parent stock. With respect to the Former Parent stock options granted prior to Separation, the converted Home & Security stock options retained the vesting schedule and expiration date of the original Former Parent stock options.



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2010		—			—
Converted on October 4, 2011		19,676,324		$	13.22
Granted		2,312,600			12.30
Exercised		(958,860	)		11.50
Expired/forfeited		(884,044	)		17.10
Outstanding at December 31, 2011^(a)		20,146,020		$	13.03

^(a)	At December 31, 2011, the weighted-average remaining contractual life of options outstanding was 5.0 years and the aggregate intrinsic value of options outstanding was $83.6 million.

Options outstanding and exercisable at December 31, 2011 were as follows:



	Options Outstanding						Options Exercisable^(a)

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $11.99		6,412,512		4.6	$	9.77		1,957,109	$	9.89
12.00 to 14.00		8,287,274		7.3		12.96		2,688,137		12.54
14.01 to 18.36		5,446,234		2.0		16.97		5,319,679		17.02
		20,146,020		5.0	$	13.03		9,964,925	$	14.41

^(a)	At December 31, 2011, the weighted-average remaining contractual life of options exercisable was 2.6 years and the aggregate intrinsic value of options exercisable was $29.1 million.

The remaining unrecognized compensation cost related to unvested awards at December 31, 2011 was approximately $21.4 million, and the weighted-average period of time over which this cost will be recognized is 2.5 years. The fair value of options that vested during the years ended December 31, 2011, 2010 and 2009 was $10.0 million, $9.0 million and $8.6 million, respectively. The intrinsic value of Home & Security stock options exercised in the years ended December 31, 2011, 2010 and 2009 was $10.0 million, $3.7 million and $0.3 million, respectively.

A summary of activity with respect to restricted stock units outstanding under the Plan related to Home & Security and our Former Parent employees for the year ended December 31, 2011 is as follows. All awards granted prior to October 4, 2011 have been adjusted to reflect the conversion as of the date of the Separation as all restricted stock units outstanding prior to the Separation were in our Former Parent's stock.



	Number of Restricted Stock Units		Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2010		—		—
Converted Former Parent restricted stock units		841,862	$	10.89
Converted Former Parent performance awards		538,539		7.63
Granted		799,500		12.15
Non-vested at December 31, 2011		2,179,901	$	10.55

The pre-tax compensation cost for restricted stock units recorded in 2011, 2010 and 2009 was $1.6 million ($1.0 million after tax), $1.2 million ($0.7 million after tax) and $1.6 million ($1.0 million after tax), respectively. At December 31, 2011, 18,000 restricted stock units were vested. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2011 was approximately $13.3 million, and the weighted-average period of time over which this cost will be recognized is 3.0 years.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Defined Benefit Plans

12 Months Ended

Dec. 31, 2011

Defined Benefit Plans [Abstract]

Defined Benefit Plans

12. Defined Benefit Plans

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

The Company provides postretirement health care and life insurance benefits to certain retirees. Many employees and retirees outside the United States are covered by government health care programs.



Obligations and Funded Status at December 31	Pension Benefits						Postretirement Benefits
(In millions)	2011			2010			2011			2010
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	557.3		$	527.3		$	90.4		$	91.7
Service cost		12.9			12.7			0.4			0.5
Interest cost		31.0			30.6			4.4			4.7
Actuarial loss		72.8			15.4			5.2			—
Participants' contributions		—			—			0.8			0.6
Benefits paid		(26.2	)		(28.7	)		(7.4	)		(7.8	)
Plan curtailment gain		(17.3	)		—			—			—
Medicare Part D reimbursement		—			—			0.1			0.7
Transfer of Corporate plan from Former Parent		9.0			—			—			—
Projected benefit obligation at end of year	$	639.5		$	557.3		$	93.9		$	90.4
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	621.5		$	523.0
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	503.9		$	411.3		$	—		$	—
Actual return on plan assets		(2.7	)		60.1			—			—
Employer contributions		1.1			61.2			6.5			6.5
Participants' contributions		—			—			0.8			0.6
Medicare Part D reimbursement		—			—			0.1			0.7
Benefits paid		(26.2	)		(28.7	)		(7.4	)		(7.8	)
Transfer of Corporate plan from Former Parent		1.8			—			—			—
Fair value of plan assets at end of year	$	477.9		$	503.9		$	—		$	—
Funded Status (Fair value of plan assets less PBO)	$	(161.6	)	$	(53.4	)	$	(93.9	)	$	(90.4	)

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)	2011			2010			2011			2010
Current benefit payment liability	$	(0.7	)	$	(0.7	)	$	(6.6	)	$	(7.1	)
Accrued benefit liability		(160.9	)		(52.7	)		(87.3	)		(83.3	)
Net amount recognized (pre-tax)	$	(161.6	)	$	(53.4	)	$	(93.9	)	$	(90.4	)

In the third and fourth quarters of 2011, we communicated to employees our decision to freeze all of our pension plans by December 31, 2016. As a result, we remeasured our pension liabilities, updating our pension measurement assumptions, and recorded pension curtailment charges totaling $1.8 million.

In 2012, we expect to make pension contributions of approximately $20 million, the minimum funding requirement.

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



(In millions)	Pension Benefits			Postretirement Benefits
Net actuarial loss (gain) at December 31, 2009	$	47.9		$	(3.3	)
Recognition of actuarial (losses) gains		(0.6	)		4.1
Current year actuarial gain		(7.6	)		—
Net actuarial gain due to settlements		(0.9	)		—
Net actuarial loss at December 31, 2010		38.8			0.8
Recognition of actuarial losses		(80.0	)		—
Current year actuarial loss		38.7			5.2
Transfer of Corporate plan from Former Parent		5.3			—
Net actuarial gain due to curtailments and settlements		60.7			—
Net actuarial loss at December 31, 2011	$	63.5		$	6.0
Net prior service cost at December 31, 2009	$	3.0		$	1.7
Amortization		(0.5	)		(0.3	)
Net prior service cost at December 31, 2010		2.5			1.4
Prior service cost gain recognition due to curtailments		(1.7	)		—
Amortization		(0.3	)		(0.4	)
Net prior service cost at December 31, 2011	$	0.5		$	1.0
Total at December 31, 2011	$	64.0		$	7.0

The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year are amortization of net prior service costs related pension and postretirement benefits of $0.3 million each.

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit Cost	Pension Benefits									Postretirement Benefits

(In millions)	2011			2010			2009			2011		2010			2009
Service cost	$	12.9		$	12.7		$	11.7		$	0.5	$	0.4		$	0.6
Interest cost		31.0			30.6			30.5			4.4		4.7			5.4
Expected return on plan assets		(41.3	)		(37.1	)		(30.0	)		—		—			—
Recognition of actuarial losses (gains)		80.0			0.6			(2.8	)		—		(4.1	)		(2.4	)
Amortization of prior service cost		0.3			0.5			0.5			0.4		0.3			0.3
Curtailment and settlement losses		1.8			0.9			1.8			—		—			—
Net periodic benefit cost	$	84.7		$	8.2		$	11.7		$	5.3	$	1.3		$	3.9



Assumptions	Pension Benefits			Postretirement Benefits

	2011	2010	2009	2011	2010	2009
Weighted-Average Assumptions Used To Determine Benefit Obligations at December 31:
Discount rate	4.9%	5.8%		4.6%	5.3%
Rate of compensation increase	4.0%	4.0%		—	—
Weighted-Average Assumptions Used To Determine Net Cost for Years Ended December 31:
Discount rate	5.8%	6.0%	6.5%	5.3%	5.8%	6.5%
Expected long-term rate of return on plan assets	8.5%	8.5%	8.4%	—	—	—
Rate of compensation increase	4.0%	4.0%	4.0%	—	—	—



	Postretirement Benefits

	2011	2010
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	8.0/7.5%⁽ ^a ⁾	7.5%
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)	5%	5%
Year that the rate reaches the ultimate trend rate	2017	2016

^(a)	Pre-65 initial rate is 8.0% and post-65 rate is 7.5%

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:



(In millions)	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost	$	0.5	$	(0.5	)
Effect on postretirement benefit obligation		9.8		(8.4	)

Plan Assets

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2011 were as follows:


(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Cash and cash equivalents	$	8.2	$	8.2	$	—
Group annuity/insurance contracts		20.0		—		20.0
Commingled funds:
Equity		275.2		275.2		—
Fixed income		135.1		135.1		—
Multi-strategy hedge funds		17.5		—		17.5
Real estate		21.9		—		21.9
Total	$	477.9	$	418.5	$	59.4

A reconciliation of Level 3 measurements as of December 31, 2011 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds			Real estate		Total
Beginning balance	$	14.3	$	14.8		$	15.7	$	44.8
Actual return on assets related to assets still held		0.7		(0.2	)		2.5		3.0
Allocation of assets related to Separation		5.0		2.9			3.7		11.6
Ending balance	$	20.0	$	17.5		$	21.9	$	59.4

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2010 were as follows:



(In millions)	Total as of balance sheet date		Level 1 – Quoted prices in active markets for identical assets		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Cash and cash equivalents	$	2.4	$	—	$	2.4	$	—
Equities:
Former Parent stock		51.2		51.2		—		—
U.S.		143.1		143.1		—		—
International		41.5		41.5		—		—
Fixed income		62.3		—		62.3		—
Group annuity/insurance contracts		14.3		—		—		14.3
Commingled funds:
Equity		76.7		—		76.7		—
Fixed income		81.9		—		81.9		—
Multi-strategy hedge funds		14.8		—		—		14.8
Real estate		15.7		—		—		15.7
Total	$	503.9	$	235.8	$	223.3	$	44.8

A reconciliation of Level 3 measurements as of December 31, 2010 was as follows:



				Commingled Funds

(In millions)	Group annuity/ insurance contracts			Multi-strategy hedge funds		Real estate		Total
Beginning balance	$	14.6		$	12.9	$	8.2	$	35.7
Actual return on assets related to assets still held		(0.3	)		1.9		2.0		3.6
Purchases, sales and settlements		—			—		5.5		5.5
Ending balance	$	14.3		$	14.8	$	15.7	$	44.8

Our defined benefit trusts own a variety of assets including equity, fixed income and real estate securities as well as group annuity/insurance contracts and fund-of-hedge funds. Equity securities are traded on national stock exchanges and are valued at daily closing prices. Fixed income securities are valued at daily closing prices or institutional mid-evaluation prices provided by independent industry-recognized pricing sources. Real estate securities are valued based on recent market appraisals of underlying property as well as valuation methodologies to determine the most probable cash price in a competitive market. Valuations of group annuity/insurance contracts and fund-of-hedge funds are based on daily closing prices of underlying securities or institutional evaluation prices consistent with industry practices.

Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. Master trusts were established to hold the assets of our domestic defined benefit plans. The U.S. defined benefit asset allocation policy of these trusts allows for an equity allocation of 45% to 75%, a fixed income allocation of 25% to 50%, a cash allocation of up to 25% and other investments up to 20%. Asset allocations are based on the underlying liability structure and local regulations. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.

Our expected 7.8% blended long-term rate of return on plan assets is determined based on long-term historical performance of plan assets, current asset allocation and projected long-term rates of return from pension investment consultants.

Defined Contribution Plan Contributions

We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions related to these plans amounted to $17.6 million, $14.8 million and $13.0 million in 2011, 2010 and 2009, respectively.

Estimated Future Retirement Benefit Payments

The following retirement benefit payments, which reflect expected future service, are expected to be paid:



			Postretirement Benefits
(In millions)	Pension Benefits		Before Medicare Subsidy		Medicare Subsidy
2012	$	29.2	$	7.2	$	0.6
2013		30.6		6.7		—
2014		32.2		6.8		—
2015		33.9		6.7		—
2016		35.7		6.6		—
Years 2017-2021		200.4		33.7		—

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.

The entire disclosure for pension and other postretirement benefits.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
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-Name Emerging Issues Task Force (EITF)
-Number 03-2
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-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
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-Number FAS106-2
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
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-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

13. Income Taxes

The components of (loss) income before income taxes and noncontrolling interests were as follows:



(In millions)	2011			2010		2009
Domestic operations	$	(73.1	)	$	43.2	$	(68.8	)
Foreign operations		29.5			39.9		38.7
(Loss) income before income taxes and noncontrolling interests	$	(43.6	)	$	83.1	$	(30.1	)

A reconciliation of income taxes at the 35% federal statutory income tax rate to income taxes from continuing operations was as follows:



(In millions)	2011			2010			2009
Income tax (benefit) expense computed at federal statutory income tax rate	$	(15.3	)	$	29.1		$	(10.5	)
Other income taxes, net of federal tax benefit		(1.8	)		(2.2	)		(2.2	)
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(5.3	)		(2.3	)		(4.7	)
Tax effect on foreign dividends		10.2			—			22.1
Tax benefit on income attributable to domestic production activities		(2.6	)		1.2			(0.5	)
Net adjustments for uncertain tax positions		(9.7	)		(8.0	)		7.2
Net effect of rate changes on deferred taxes		(2.9	)		(1.2	)		0.6
Valuation allowance increases		16.8			—			—
Miscellaneous other, net		1.6			1.5			(3.9	)
Income tax (benefit) provision as reported	$	(9.0	)	$	18.1		$	8.1
Effective income tax rate		20.6	%		21.8	%		(26.9	)%

The effective tax rate in 2011 was unfavorably impacted due to the recording of valuation allowances related to state and foreign net operating loss carryforwards and an income tax expense on foreign dividends, $9.1 million of which related to foreign dividends received in preparation for the Separation. The 2011 effective rate was favorably impacted by a tax benefit related to conclusion of foreign and state income tax audits and enacted changes in state tax laws. The effective tax rate in 2010 was favorably impacted by a tax benefit related to the final settlement of a U.S. federal income tax audit covering the 2004 to 2007 years.

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


(In millions)	2011			2010			2009
Unrecognized tax benefits — beginning of year	$	38.8		$	56.3		$	43.9
Gross additions — current year tax positions		2.3			2.8			3.4
Gross additions — prior year tax positions		7.2			1.5			12.3
Gross reductions — prior year tax positions		(12.0	)		(1.0	)		(2.9	)
Gross reductions — settlements with taxing authorities		(0.4	)		(19.9	)		(0.6	)
Impact of change in foreign exchange rates		(0.5	)		1.2			0.9
Impact due to expiration of statutes of limitations		—			(2.1	)		(0.7	)
Unrecognized tax benefits — end of year	$	35.4		$	38.8		$	56.3

The amount of UTBs that, if recognized as of December 31, 2011, would affect the Company's effective tax rate was $31.5 million.

It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $3 million to $15 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 2011, we recognized an interest and penalty benefit of approximately $1.4 million, primarily driven by audit resolutions. In 2010 and 2009, we recognized interest benefit of $0.8 million and interest expense of $3.0 million, respectively. At December 31, 2011 and 2010, we had accruals for the payment of interest and penalties of $11.9 million and $13.3 million, respectively.

We file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The U.S. Internal Revenue Service ("IRS") is currently examining the Company's 2008 and 2009 federal income tax returns. We have tax years that remain open and subject to examination by tax authorities in Canada for years after 2005.

Income taxes in 2011, 2010 and 2009 were as follows:



(In millions)	2011			2010			2009
Current
Federal	$	26.0		$	(36.5	)	$	15.8
Foreign		8.9			25.5			23.0
State and other		16.9			(0.9	)		(5.3	)
Deferred
Federal, state and other		(66.8	)		33.6			(24.4	)
Foreign		6.0			(3.6	)		(1.0	)
Total income tax (benefit) provision	$	(9.0	)	$	18.1		$	8.1

The components of net deferred tax assets (liabilities) as of December 31, 2011 and 2010 were as follows:



(In millions)	2011			2010
Deferred Tax Assets:
Compensation and benefits	$	23.8		$	19.9
Defined benefit plans		97.0			55.4
Capitalized inventories		8.4			5.1
Accounts receivable		7.1			6.5
Other accrued expenses		33.5			29.4
Net operating loss and other tax carryforwards		32.6			55.9
Valuation allowance		(22.2	)		(37.8	)
Miscellaneous		21.9			20.0
Total deferred tax assets		202.1			154.4
Deferred Tax Liabilities:
LIFO inventories		(10.8	)		(10.9	)
Fixed assets		(67.5	)		(56.8	)
Identifiable intangible assets		(250.4	)		(285.7	)
Miscellaneous		(31.4	)		(29.7	)
Total deferred tax liabilities		(360.1	)		(383.1	)
Net deferred tax liability	$	(158.0	)	$	(228.7	)

In accordance with authoritative guidance on accounting for income taxes, (ASC 740), deferred taxes were classified in the consolidated balance sheets as of December 31, 2011 and 2010 as follows:



(In millions)	2011			2010
Other current assets	$	42.9		$	38.8
Other current liabilities		(2.8	)		(1.9	)
Other assets		6.0			1.8
Deferred income taxes		(204.1	)		(267.4	)
Net deferred tax liability	$	(158.0	)	$	(228.7	)

As of December 31, 2011 and 2010, the Company had deferred tax assets relating to net operating losses, and other tax carryforwards of $32.6 million and $55.9 million, respectively, of which approximately $4.0 million will expire between 2013 and 2019, and the remainder which will expire in 2020 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.

As a result of the Separation, the Company remitted foreign earnings and recorded an associated tax liability of approximately $9.1 million during 2011. However, as a stand-alone company, the Company intends to permanently reinvest earnings of foreign subsidiaries. Consequently, we have not provided deferred income taxes on undistributed earnings of foreign subsidiaries. The undistributed earnings of foreign subsidiaries that are considered permanently reinvested were $95.0 million and $98.0 million in the aggregate for the years ended December 31, 2011 and 2010, respectively. A quantification of the associated deferred tax liability on these undistributed earnings has not been made, as the determination of such liability is not practicable.

In general, under the Tax Allocation Agreement that we entered into with our Former Parent, Home & Security is responsible for all taxes to the extent such taxes are attributable to the Home & Security business, and we agreed to indemnify our Former Parent for these taxes. Our Former Parent will be responsible for all taxes to the extent such taxes are not attributable to the Home & Security business and our Former Parent has agreed to indemnify us for these taxes. As a former subsidiary of our Former Parent, Home & Security has several liabilities with our Former Parent to the IRS for the consolidated federal income taxes of our Former Parent's group relating to the taxable periods ending on or prior to the Distribution. Although Home & Security will continue to be severally liable with our Former Parent for this liability following the Distribution, under the Tax Allocation Agreement, our Former Parent agreed to indemnify us for amounts relating to this liability to the extent not attributable to the Home & Security business. Though valid as between the parties, the Tax Allocation Agreement will not be binding on the IRS. The Tax Allocation Agreement also contains restrictions on the ability of our Former Parent and Home & Security to take actions that could cause the Distribution or certain internal transactions undertaken in anticipation of the Separation to fail to qualify for tax-free or tax-favored treatment. These restrictions apply for the two-year period after the Distribution, unless our Former Parent or Home & Security, as applicable, obtains a private letter ruling from the IRS or an unqualified opinion of a nationally recognized law firm that such action will not cause the Distribution or the internal transactions undertaken in anticipation of the Separation to fail to qualify for tax-favored treatment, and such letter ruling or opinion, as the case may be, is acceptable to our Former Parent. Moreover, the Tax Allocation Agreement generally provides that each of Home & Security and our Former Parent is responsible for any taxes imposed as a result of the failure of the Distribution or the internal transactions to qualify for tax-favored treatment under the Code if such failure is attributable to certain post-distribution actions taken by such party or in respect of such party or such party's stockholders after the Distribution, regardless of whether the actions occur more than two years after the Distribution, the other party consents to such actions or such party obtains a favorable letter ruling or tax opinion.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: 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.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Restructuring And Other Charges [Abstract]

Restructuring And Other Charges

12 Months Ended

Dec. 31, 2011

Restructuring And Other Charges

14. Restructuring and Other Charges

Pre-tax restructuring and other charges for the year ended December 31, 2011 were:



	Year Ended December 31, 2011
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold			Total Charges
Kitchen & Bath Cabinetry	$	3.7	$	9.0		$	12.7
Plumbing & Accessories		—		(0.1	)		(0.1	)
Advanced Material Windows & Door Systems		1.0		6.4			7.4
Total	$	4.7	$	15.3		$	20.0

^(a)

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

Pretax restructuring and other charges of $20.0 million in 2011 primarily related to cabinet and window manufacturing facility closures. These charges consisted of $3.5 million for workforce reductions including employee benefit curtailments, $11.5 million primarily for accelerated depreciation for facilities that were closed in the fourth quarter of 2011, tradename impairment charges of $1.9 million, and $3.1 million of other costs.

Pre-tax restructuring and other charges for the year ended December 31, 2010 were:



	Year Ended December 31, 2010
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)			Total Charges
Kitchen & Bath Cabinetry	$	2.5	$	—	$	—		$	2.5
Advanced Material Windows & Door Systems		2.4		1.0		(0.4	)		3.0
Security & Storage		3.1		—		3.9			7.0
Total	$	8.0	$	1.0	$	3.5		$	12.5

^(a)

^(b)	Selling, general and administrative expenses

Pretax restructuring and other charges of $12.5 million in 2010 primarily related to product line integration and facility consolidations. These charges consisted of $4.9 million for workforce reductions, $0.5 million of fixed asset write-downs, $3.9 million primarily for accelerated depreciation for facilities that will be closed, and $3.2 million of other costs.

Pre-tax restructuring and other charges for the year ended December 31, 2009 were:



	Year Ended December 31, 2009
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Kitchen & Bath Cabinetry	$	14.5	$	12.7	$	2.1	$	29.3
Plumbing & Accessories		2.7		0.3		—		3.0
Advanced Material Windows & Door Systems		3.9		13.1		1.9		18.9
Security & Storage		0.7		—		0.1		0.8
Total	$	21.8	$	26.1	$	4.1	$	52.0

^(a)

^(b)	Selling, general and administrative expenses

Restructuring and other charges of $52.0 million in 2009 were primarily due to supply chain realignment and capacity and cost reduction initiatives, including the announced closure of seven additional U.S. manufacturing facilities, as well as workforce reductions. Restructuring charges of $21.8 million primarily consisted of $11.7 million for workforce reductions, $5.2 million for fixed assets write-downs, and $4.9 million for lease contract termination and other costs. Other charges consisted primarily of accelerated depreciation associated with facilities being closed.

Reconciliation of Restructuring Liability



(In millions)	Balance at 12/31/10		2011 Provision			Cash Expenditures^(a)			Non-Cash Write-offs^(b)			Balance at 12/31/11
Workforce reduction costs	$	6.1	$	1.7		$	(4.8	)	$	—		$	3.0
Asset write-downs		—		(0.2	)		0.2			—			—
Contract termination costs		—		0.1			(0.1	)		—			—
Other		—		3.1			(1.2	)		(1.9	)		—
Total	$	6.1	$	4.7			(5.9	)	$	(1.9	)	$	3.0

^(a)	Cash expenditures for asset write-downs include proceeds received on asset disposals.

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



(In millions)	Balance at 12/31/09		2010 Provision		Cash Expenditures^(a)			Non-Cash Write-offs^(b)			Balance at 12/31/10
Workforce reduction costs	$	3.8	$	4.9	$	(2.7	)	$	0.1		$	6.1
Asset write-downs		—		0.5		1.0			(1.5	)		—
Other		0.1		2.6		(2.0	)		(0.7	)		—
Total	$	3.9	$	8.0		(3.7	)	$	(2.1	)	$	6.1

^(a)	Cash expenditures for asset write-downs include proceeds received on asset disposals.

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

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

Information On Business Segments [Abstract]

Business Separation Costs	12 Months Ended
Business Separation Costs	Dec. 31, 2011
Business Separation Costs [Abstract]
Business Separation Costs	15. Business Separation Costs We recorded $2.4 million of business separation costs during the year ended December 31, 2011 related to non-cash non-recurring costs associated with the modification of share-based compensation awards as a result of the Separation.

Commitments

12 Months Ended

Dec. 31, 2011

Commitments [Abstract]

Commitments

16. Commitments

Purchase Obligations

Purchase obligations of the Company as of December 31, 2011 were $243.7 million, of which $237.0 million is due in one year. Purchase obligations include contracts for raw materials and finished goods purchases; selling and administrative services and capital expenditures. As of December 31, 2011, there were no material commitments for capital expenditures.

Lease Commitments

Future minimum rental payments under non-cancelable operating leases as of December 31, 2011 were as follows:


(In millions)
2012	$	27.8
2013		19.4
2014		14.9
2015		9.5
2016		5.4
Remainder		7.1
Total minimum rental payments	$	84.1

Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $35.2 million, $34.2 million and $38.1 million in 2011, 2010 and 2009, respectively.

Information On Business Segments

12 Months Ended

Dec. 31, 2011

Information On Business Segments

17. 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 Kitchen & Bath Cabinetry segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and home under brand names including Aristokraft, Kitchen Craft, HomeCrest, Omega, Schrock, Kitchen Classics, Reflections, Diamond, Decorá and Kemper. In addition, cabinets are distributed under the Martha Stewart Living and Thomasville Cabinetry brand names. Plumbing & Accessories includes faucets, bath furnishings, accessories and kitchen sinks predominantly under the Moen brand. Advanced Material Windows & Door Systems includes residential fiberglass and steel entry door systems under the Therma-Tru brand name, vinyl-framed windows and patio doors under the Simonton brand name, and urethane millwork under the Fypon brand name. Security & Storage includes locks, safety and security devices, tool storage and garage organization products under the Master Lock, Sears Craftsman and Waterloo brand names.

Net sales to two of the Company's customers, Lowe's Companies, Inc. and The Home Depot, Inc., each accounted for greater than 10% of the Company's net sales in 2011, 2010 and 2009. In 2011, net sales to these two customers were $491 million (15% of net sales) and $435 million (13% of net sales), respectively.

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



(In millions)	2011			2010			2009
Net sales:
Kitchen & Bath Cabinetry	$	1,256.3		$	1,188.8		$	1,125.7
Plumbing & Accessories		962.8			923.8			835.0
Advanced Material Windows & Door Systems		552.9			600.7			550.8
Security & Storage		556.6			520.2			495.3
Net sales	$	3,328.6		$	3,233.5		$	3,006.8

Operating (loss) income:
Kitchen & Bath Cabinetry	$	5.7		$	28.2		$	(25.1	)
Plumbing & Accessories		138.0			132.5			114.2
Advanced Material Windows & Door Systems		(101.2	)		17.6			(37.5	)
Security & Storage		62.6			54.0			40.7
Less: Corporate expenses⁽ ^a ⁾		(120.7	)		(33.9	)		(38.2	)
Operating (loss) income	$	(15.6	)	$	198.4		$	54.1

Total assets:
Kitchen & Bath Cabinetry	$	1,273.2		$	1,293.1		$	1,275.1
Plumbing & Accessories		1,065.0			1,064.6			1,048.3
Advanced Material Windows & Door Systems		804.2			922.8			935.1
Security & Storage		399.9			402.3			398.4
Corporate⁽ ^b ⁾		95.6			574.8			533.1
Total assets	$	3,637.9		$	4,257.6		$	4,190.0
^(a) Below is a table detailing Corporate expenses.

Corporate expenses:
General and administrative expense	$	(20.7	)	$	(6.7	)	$	(5.2	)
Business separation costs		(2.4	)		—			—
Former Parent general and administrative expense allocation		(23.4	)		(32.0	)		(34.2	)
Defined benefit plan costs		5.8			1.3			(4.0	)
Defined benefit plan recognition of actuarial (losses) gains		(80.0	)		3.5			5.2
Total Corporate expenses	$	(120.7	)	$	(33.9	)	$	(38.2	)

^(b)	Corporate assets at December 31, 2010 and 2009 predominantly consisted of short-term loans to our Former Parent.



(In millions)	2011			2010			2009
Depreciation expense:
Kitchen & Bath Cabinetry	$	38.6		$	34.2		$	46.4
Plumbing & Accessories		18.2			19.5			19.6
Advanced Material Windows & Door Systems		25.8			23.3			34.7
Security & Storage		14.0			18.9			14.3
Corporate		0.5			—			—
Depreciation expense	$	97.1		$	95.9		$	115.0

Amortization of intangible assets:
Kitchen & Bath Cabinetry	$	6.0		$	6.8		$	7.3
Advanced Material Windows & Door Systems		7.9			8.4			8.4
Security & Storage		0.5			0.5			0.4
Amortization of intangible assets	$	14.4		$	15.7		$	16.1

Capital expenditures:
Kitchen & Bath Cabinetry	$	29.1		$	25.0		$	12.1
Plumbing & Accessories		16.5			13.7			14.1
Advanced Material Windows & Door Systems		13.5			9.3			8.2
Security & Storage		9.4			10.3			8.9
Capital expenditures, gross		68.5			58.3			43.3
Less: proceeds from disposition of assets		(3.5	)		(2.6	)		(11.3	)
Capital expenditures, net	$	65.0		$	55.7		$	32.0

Net sales by geographic region^(a):
United States	$	2,755.0		$	2,691.6		$	2,550.6
Canada		390.3			395.2			328.2
China and other international		183.3			146.7			128.0
Net sales	$	3,328.6		$	3,233.5		$	3,006.8

Property, plant and equipment, net:
United States	$	443.7		$	458.7		$	492.7
Mexico		39.1			46.4			52.3
Canada		32.8			33.6			31.9
China and other international		10.2			11.3			13.3
Property, plant and equipment, net	$	525.8		$	550.0		$	590.2

^(a)	Based on country of destination

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 131
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Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data [Abstract]

Quarterly Financial Data

18. Quarterly Financial Data

Unaudited

(In millions, except per share amounts)



2011	1^st			2^nd		3^rd		4^th
Net sales	$	714.8		$	889.7	$	848.0	$	876.1
Gross profit		210.3			291.3		255.8		239.1
Operating income (loss)		7.8			65.2		20.8		(109.4	)
Net (loss) income		(10.3	)		44.1		2.5		(70.9	)
Net (loss) income attributable to Home & Security		(10.5	)		43.7		2.2		(71.0	)
Basic and diluted (loss) earnings per common share		(0.07	)		0.28		0.01		(0.46	)


2010	1^st			2^nd		3^rd		4^th
Net sales	$	698.7		$	878.0	$	813.1	$	843.7
Gross profit		219.6			298.0		272.4		266.4
Operating income		14.0			81.2		66.8		36.4
Net (loss) income		(12.5	)		37.3		28.6		11.6
Net (loss) income attributable to Home & Security		(12.9	)		37.2		28.3		11.2
Basic and diluted (loss) earnings per common share		(0.08	)		0.24		0.18		0.07

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

Other Expense (Income), Net [Abstract]

Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

19. Earnings Per Share

The computations of earnings per common share were as follows:



(In millions, except per share data)	2011			2010		2009
Net (loss) income attributable to Home & Security	$	(35.6	)	$	63.8	$	(39.0	)
Basic and diluted (loss) earnings per common share	$	(0.23	)	$	0.41	$	(0.25	)
Basic and diluted average shares outstanding		155.2			155.1		155.1
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		22.1			—		—

Prior to the Separation, the total number of outstanding shares of the Company's common stock increased significantly. On September 27, 2011, the Separation was accomplished by increasing the total number issued and outstanding shares such that 155,052,629 shares of Home & Security common stock were available for distribution to the holders of common stock of our Former Parent. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of shares of Home & Security common stock for the stock split. Prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share since no Home & Security stock-based awards were outstanding prior to the Separation. Stock-based awards were antidilutive in 2011 due to the Company's net loss.

Other Expense (Income), Net

12 Months Ended

Dec. 31, 2011

Other Expense (Income), Net

20. Other Expense (Income), Net

The components of other expense (income), net, for the years ended December 31, 2011, 2010 and 2009 were as follows:



(In millions)	2011			2010			2009
Foreign currency transaction losses (gains)	$	2.7		$	(0.5	)	$	(1.2	)
Other items, net		(1.1	)		(0.5	)		0.2
Total other expense (income), net	$	1.6		$	(1.0	)	$	(1.0	)

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2011

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

21. Accumulated Other Comprehensive Income

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



(In millions)	Foreign Currency Adjustments			Defined Benefit Plan Adjustments			Derivative Hedging Gain (Loss)			Accumulated Other Comprehensive Income/(Loss)
Balance at December 31, 2008	$	20.3		$	(31.3	)	$	4.3		$	(6.7	)
Changes during year		31.2			1.9			(3.6	)		29.5
Balance at December 31, 2009		51.5			(29.4	)		0.7			22.8
Changes during year		5.4			0.8			0.5			6.7
Balance at December 31, 2010		56.9			(28.6	)		1.2			29.5
Changes during year		(1.8	)		(16.4	)		(0.7	)		(18.9	)
Balance at December 31, 2011	$	55.1		$	(45.0	)	$	0.5		$	10.6

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
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Contingencies	12 Months Ended
Contingencies	Dec. 31, 2011
Contingencies [Abstract]
Contingencies	22. Contingencies Litigation The Company is a defendant in lawsuits associated with the normal conduct of its businesses and operations. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company's results of operations, cash flows or financial condition, and, where appropriate, these actions are being vigorously contested. Environmental Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Home & Security. Several of our subsidiaries have been designated as potentially responsible parties ("PRP") under "Superfund" or similar state laws. As of December 31, 2011, eight instances have not been dismissed, settled 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 a material adverse effect on our results of operations, cash flows or financial condition. At December 31, 2011 and 2010, we had accruals of $7.9 million and $8.2 million, respectively, relating to environmental compliance and clean up including, but not limited to, the above mentioned Superfund sites.

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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