View Filing Data

^[1]

$ 4,157.4

$ 3,591.1

$ 3,328.6

Selling, general and administrative expenses

2,718.6

2,421.1

2,332.1

1,043.1

976.9

900.6

Business separation costs

13.2

11.1

14.4

Restructuring charges

4.2

4.5

4.7

Asset impairment charges

21.2

15.8

90.0

2.4

Related party interest expense, net

357.1

161.7

(15.6)

23.2

External interest expense

7.2

8.7

3.2

Other expense (income), net

5.0

(1.0)

1.6

Income (loss) before income taxes

344.9

154.0

(43.6)

114.0

34.3

(9.0)

Less: Noncontrolling interests

230.9

119.7

(34.6)

1.2

1.0

NET INCOME (LOSS) ATTRIBUTABLE TO HOME & SECURITY

$ 229.7

$ 118.7

$ (35.6)

BASIC EARNINGS (LOSS) PER COMMON SHARE

^[2]

$ 1.39

$ 0.74

$ (0.23)

DILUTED EARNINGS (LOSS) PER COMMON SHARE

^[2]

$ 1.34

$ 0.71

$ (0.23)

Basic average number of shares outstanding

^[2]

165.5

160.6

155.2

Diluted average number of shares outstanding

^[2]

171.3

166.1

155.2

Dividends declared per common share

$ 0.42

[1]

Based on country of destination

[2]

On September 27, 2011, shares of Home & Security common stock (par value $0.01 per share) were split from 1,000 shares issued and outstanding and 100,000 shares authorized to approximately 155.1 million shares issued and outstanding and 750 million shares authorized. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated adjusting the number of Home & Security shares for the stock split for periods prior to September 27, 2011.

Consolidated Statements of Income (Parenthetical)	Sep. 27, 2011 $ / shares shares
Common stock, shares issued	155,100,000
Common stock, shares outstanding	155,052,629
Common stock, shares authorized	750,000,000
Before Stock Split
Common Stock, par value \| $ / shares	$ 0.01
Common stock, shares issued	1,000
Common stock, shares outstanding	1,000
Common stock, shares authorized	100,000

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

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Other comprehensive income (loss), before tax:

$ 230.9

$ 119.7

$ (34.6)

Foreign currency translation adjustments

(10.2)

8.4

(1.8)

Unrealized gains (losses) on derivatives:

Unrealized holding gains arising during period

3.0

0.4

0.7

Less: reclassification adjustment for gains included in net income

(2.0)

(0.8)

(1.9)

Unrealized gains (losses) on derivatives

1.0

(0.4)

(1.2)

Defined benefit plans:

Prior service credit arising during period

34.7

29.4

1.7

Net actuarial gain (loss) arising during period

111.3

(7.0)

(24.6)

Transfer of corporate plan from Fortune Brands, Inc.

(5.3)

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

(27.3)

(2.3)

0.7

Defined benefit plans

118.7

20.1

(27.5)

Other comprehensive income (loss), before tax

109.5

28.1

(30.5)

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

^[1]

(44.7)

(8.1)

11.6

Other comprehensive income (loss), net of tax

64.8

20.0

(18.9)

COMPREHENSIVE INCOME (LOSS)

295.7

139.7

(53.5)

Less: comprehensive income attributable to noncontrolling interest

1.2

1.0

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HOME & SECURITY

$ 294.5

$ 138.7

$ (54.5)

[1]	Income tax (expense) benefit on unrealized gains (losses) on derivatives of $(0.2) million, $0.1 million and $0.5 million and on defined benefit plans of $(44.5) million, $(8.2) million and $11.1 million in 2013, 2012 and 2011, respectively.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Unrealized gains (losses) on derivatives, tax	$ (0.2)	$ 0.1	$ 0.5
Defined benefit plans, tax	$ (44.5)	$ (8.2)	$ 11.1

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2013

Dec. 31, 2012

Current assets

Cash and cash equivalents

$ 241.4

$ 336.0

Accounts receivable less allowances for discounts, doubtful accounts and returns

477.1

381.7

Inventories

471.6

357.2

Other current assets

137.3

153.0

TOTAL CURRENT ASSETS

1,327.4

1,227.9

Property, plant and equipment, net of accumulated depreciation

534.4

509.4

Other intangible assets, net of accumulated amortization

^[1]

1,519.9

1,381.4

752.9

683.6

Other assets

43.5

71.6

TOTAL ASSETS

4,178.1

3,873.9

Current liabilities

Notes payable to banks

6.0

5.5

Current portion of long-term debt

22.5

Accounts payable

343.8

287.0

Other current liabilities

388.9

317.4

TOTAL CURRENT LIABILITIES

738.7

632.4

Long-term debt

350.0

297.5

Deferred income taxes

245.8

224.0

Accrued defined benefit plans

108.5

252.7

Other non-current liabilities

82.0

82.6

TOTAL LIABILITIES

1,525.0

1,489.2

Equity

Common stock

^[2]

1.7

1.6

Paid-in capital

2,431.3

2,324.8

Accumulated other comprehensive income

95.4

30.6

Retained earnings

200.8

41.0

Treasury stock

(79.8)

(16.9)

TOTAL HOME & SECURITY EQUITY

2,649.4

2,381.1

Noncontrolling interests

3.7

3.6

TOTAL EQUITY

2,653.1

2,384.7

TOTAL LIABILITIES AND EQUITY

$ 4,178.1

$ 3,873.9

[1]	Net of accumulated impairment losses of $541.4 million ($451.3 million in the Advanced Material Windows & Door Systems segment and $90.1 million in the Security & Storage segment).
[2]	Par value $0.01 per share, 169.1 million shares and 164.6 million shares issued at December 31, 2013 and 2012, respectively.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2013	Dec. 31, 2012	Sep. 27, 2011
Common Stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	169.1	164.6	155.1

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
OPERATING ACTIVITIES
NET INCOME (LOSS)	$ 230.9	$ 119.7	$ (34.6)
Non-cash expense (income):
Depreciation	77.2	90.2	97.1
Amortization	13.2	11.1	14.4
Stock-based compensation	26.1	26.9	15.7
Restructuring charges	0.2		1.8
Loss (gain) on sale of property, plant and equipment	0.8	(2.9)	1.7
Asset impairment charges	27.4	15.8	90.0
Recognition of actuarial losses	5.2	42.2	80.0
Deferred taxes	(12.7)	(4.0)	(62.4)
Changes in assets and liabilities including effects subsequent to acquisitions:
(Increase) decrease in accounts receivable	(58.5)	(33.5)	26.9
Increase in inventories	(89.7)	(18.7)	(4.6)
Increase in accounts payable	39.8	22.1	6.7
Decrease (increase) in other assets	32.2	5.5	(40.7)
Increase (decrease) in accrued taxes	5.7	(12.8)	50.4
Increase (decrease) in accrued expenses and other liabilities		21.2	(67.0)
NET CASH PROVIDED BY OPERATING ACTIVITIES	297.8	282.8	175.4
INVESTING ACTIVITIES
Capital expenditures	(96.7)	(75.0)	(68.5)
Proceeds from the disposition of assets	2.2	13.5	3.5
Acquisitions, net of cash acquired	(302.0)	(19.5)	(6.0)
Other investing activities	(0.2)	(5.7)
NET CASH USED IN INVESTING ACTIVITIES	(396.7)	(86.7)	(71.0)
FINANCING ACTIVITIES
Increase in short-term debt	1.3	1.9	1.4
Issuance of long-term debt	220.0	70.0	510.0
Repayment of long-term debt	(190.0)	(156.8)	(120.0)
Proceeds from the exercise of stock options	50.7	104.3	11.0
Excess tax benefit from the exercise of stock-based compensation	26.8	12.2	0.9
Dividends to stockholders	(49.9)
Treasury stock purchases	(52.1)	(8.8)
Net loan payments to Fortune Brands, Inc.			91.2
Dividends to Fortune Brands, Inc.			(548.9)
Fortune Brands, Inc. (payment) capital contribution		(6.0)	15.9
Other financing activities, net	(2.7)	(1.1)	(5.0)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	4.1	15.7	(43.5)
Effect of foreign exchange rate changes on cash	0.2	3.4	(0.8)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(94.6)	215.2	60.1
Cash and cash equivalents at beginning of year	336.0	120.8	60.7
Cash and cash equivalents at end of year	241.4	336.0	120.8
Cash paid during the year for:
Interest paid	6.7	7.1	2.6
Dividends declared but not paid	20.0
Related Party
Cash paid during the year for:
Interest paid			63.7
Taxing authorities
Cash paid during the year for:
Income taxes paid to (received from)	89.4	55.9	23.0
Fortune Brands, Inc.
Cash paid during the year for:
Income taxes paid to (received from)	$ (1.2)	$ 3.0	$ 7.6

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

Total

Common Stock

Paid-In Capital

Accumulated Other Comprehensive Income

Retained Earnings (Deficit)

Treasury Stock

Non- controlling Interests

Beginning Balance at Dec. 31, 2010

$ (56.7)

$ 703.3

$ 29.5

$ (793.0)

$ 3.5

Comprehensive income:

Other comprehensive income

(34.6)

(35.6)

1.0

(18.9)

Stock-based compensation

26.6

Tax benefit on exercise of stock options

1.2

Dividends declared to Fortune Brands, Inc.

(574.3)

Change in legal structure

^[1]

(750.9)

750.9

Fortune Brands, Inc. capital contribution

^[2]

2,782.1

Common stock split

$ 1.6

(1.6)

Treasury stock purchase

(0.1)

$ (0.1)

Dividends paid to noncontrolling interests

(0.8)

Ending Balance at Dec. 31, 2011

2,124.5

1.6

2,186.4

10.6

(77.7)

(0.1)

3.7

Comprehensive income:

Other comprehensive income

119.7

118.7

1.0

20.0

Stock options exercised

104.4

Stock-based compensation

19.4

27.1

(7.7)

Tax benefit on exercise of stock options

12.0

Separation-related adjustments

(5.1)

Treasury stock purchase

(9.1)

Dividends paid to noncontrolling interests

(1.1)

Ending Balance at Dec. 31, 2012

2,384.7

1.6

2,324.8

30.6

41.0

(16.9)

3.6

Comprehensive income:

Other comprehensive income

230.9

229.7

1.2

64.8

Stock options exercised

50.8

0.1

50.7

Stock-based compensation

14.5

25.7

(11.2)

Tax benefit on exercise of stock options

^[3]

30.1

Treasury stock purchase

(51.7)

Dividends ($0.42 per Common share)

(69.9)

Dividends paid to noncontrolling interests

(1.1)

Ending Balance at Dec. 31, 2013

$ 2,653.1

$ 1.7

$ 2,431.3

$ 95.4

$ 200.8

$ (79.8)

$ 3.7

[1]	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.
[2]	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 15, "Related Party Transactions."
[3]	Includes $4.1 million of adjustments related to prior years' vested and unvested restricted stock units.

Consolidated Statements of Equity (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($) $ / shares
Dividends per Common share \| $ / shares	$ 0.42
Adjustments related to prior years' vested and unvested Restricted Stock Units \| $	$ 4.1

Background and Basis of Presentation

12 Months Ended

Dec. 31, 2013

Background and Basis of Presentation

1. Background and Basis of Presentation

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

Separation On September 27, 2011, the board of directors of Fortune Brands, Inc. (our “Former Parent”) approved the spin-off of Home & Security into an independent, publicly-traded company (the “Separation”). On October 3, 2011, the Separation was completed, with the stockholders of our Former Parent receiving one share of Home & Security common stock for each share of Former Parent common stock held on September 20, 2011. 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 latter payments represented U.S. cash balances generated from August 26, 2011, the date of the conversion of the Company from a Delaware limited liability company to a Delaware corporation, through the date of the Separation. Following the Separation, our Former Parent changed its name to Beam Inc. and retained no ownership interest in Home & Security. On October 4, 2011, our common stock began trading “regular-way” on the New York Stock Exchange under the ticker symbol “FBHS”.

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 included in this Annual Report on Form 10-K were derived principally from the consolidated financial statements of the Company. Prior to the Separation, the Company was a wholly-owned subsidiary of our Former Parent. Our financial statements for periods prior to the Separation were derived from the historical results of operations and historical basis of assets and liabilities, and include allocations of certain general corporate expenses of our 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 year ended December 31, 2011, these allocations totaled $23.4 million. 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. The consolidated financial statements included in this Annual Report on Form 10-K for periods prior to the Separation may not necessarily reflect the Company’s results of operations, financial condition and cash flows 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.

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Significant Accounting Policies

Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

2. Significant Accounting Policies

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

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

Allowances for Doubtful Accounts Trade receivables are recorded at the stated amount, less allowances for discounts, doubtful accounts and returns. The allowances for doubtful accounts represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency), or discounts related to early payment of accounts receivables by our customers. The allowances include provisions for certain customers where a risk of default has been specifically identified. In addition, the allowances include a provision for customer defaults on a general formula basis when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The assessment of the likelihood of customer defaults is based on various factors, including the length of time the receivables are past due, historical collection experience and existing economic conditions. In accordance with this policy, our allowance for doubtful accounts was $6.8 million and $9.0 million as of December 31, 2013 and 2012, respectively.

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

We also use the last-in, first-out (“LIFO”) inventory method in those product groups in which metals inventories comprise a significant portion of our inventories. LIFO inventories at December 31, 2013 and 2012 were $228.8 million (with a current cost of $257.5 million) and $163.6 million (with a current cost of $193.9 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, 2013 and 2012, the carrying value of assets held for sale was not material. Estimated useful lives of the related assets are as follows:

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

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

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

Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. In addition, beginning for 2012 year-end intangible asset impairment testing, we adopted the new Accounting Standards Update that allows us to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test.

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

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

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

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

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

We record liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where we evaluate whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, we perform the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from our estimates. In future periods, changes in facts, circumstances, and new information may require us to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in the consolidated statement of income and consolidated balance sheet in the period in which such changes occur. As of December 31, 2013, we had liabilities for unrecognized tax benefits pertaining to uncertain tax positions totaling $23.7 million. It is reasonably possible that the unrecognized tax benefits may decrease in the range of $2.5 million to $3.5 million in the next 12 months primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings.

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

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

Customer Program Costs Customer programs and incentives are a common practice in our businesses. Our businesses incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for in either “net sales” or the category “selling, general and administrative expenses” at the time the program is initiated and/or the revenue is recognized. The costs are predominantly recognized in “net sales” and include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, 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). The costs typically recognized in “selling, general and administrative expenses” include product displays, point of sale materials, and media production costs. The costs included in the “selling, general and administrative expenses” category were $46.0 million, $46.2 million and $47.4 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising costs; marketing costs; selling costs, including commissions; research and development costs; shipping and handling costs, including warehousing costs; and general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $189.7 million, $181.3 million and $164.1 million in 2013, 2012 and 2011, respectively.

Advertising costs, which amounted to $205.3 million, $182.4 million and $180.4 million in 2013, 2012 and 2011, 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 $56.7 million, $49.9 million and $49.8 million in 2013, 2012 and 2011, respectively. Advertising costs recorded in selling, general and administrative expenses were $148.6 million, $132.5 million and $130.6 million in 2013, 2012 and 2011, respectively.

Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $55.6 million, $47.0 million and $35.1 million in 2013, 2012 and 2011, 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. Diluted earnings per common share include the impact of all potentially dilutive securities outstanding during the year. In periods prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share because no Home & Security stock-based awards were outstanding prior to the Separation. See Note 20, “Earnings Per Share,” for further discussion.

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

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

Net deferred currency gains of $2.3 million and $0.6 million were reclassified into earnings for the years ended December 31, 2013 and 2012, respectively. Net deferred currency losses of $0.5 million were reclassified into earnings in 2011. Based on foreign exchange rates as of December 31, 2013, we estimate that $1.3 million of net currency derivative gains included in AOCI as of December 31, 2013 will be reclassified to earnings within the next twelve months.

Recently Issued Accounting Standards

Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists

In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides explicit guidance on presentation in financial statements. The amendment is effective for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements.

Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 clarifies the accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The ASU also clarifies the treatment of business combinations achieved in stages involving a foreign entity. The amendment is effective prospectively for reporting periods beginning after December 15, 2013 (calendar year 2014 for Home & Security). We believe that adoption of this standard will not have a material impact on our financial statements.

Balance Sheet Information

12 Months Ended

Dec. 31, 2013

Balance Sheet Information

3. Balance Sheet Information

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



(In millions)	2013		2012
Inventories:
Raw materials and supplies	$	184.6	$	144.3
Work in process		52.5		38.6
Finished products		234.5		174.3
Total inventories	$	471.6	$	357.2

Property, plant and equipment:
Land and improvements	$	53.8	$	47.6
Buildings and improvements to leaseholds		374.5		324.5
Machinery and equipment		1,066.3		1,056.3
Construction in progress		61.5		62.8
Property, plant and equipment, gross		1,556.1		1,491.2
Less: accumulated depreciation		1,021.7		981.8
Property, plant and equipment, net of accumulated depreciation	$	534.4	$	509.4

Other current liabilities:
Accrued salaries, wages and other compensation	$	128.9	$	109.0
Accrued customer programs		122.6		102.8
Other accrued expenses		137.4		105.6
Total other current liabilities	$	388.9	$	317.4

Acquisitions

12 Months Ended

Dec. 31, 2013

Acquisitions

4. Acquisitions

In June 2013, our Kitchen & Bath Cabinetry business acquired 100% of the voting equity of Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops for a purchase price of approximately $302 million, subject to certain post-closing adjustments. We paid the purchase price using a combination of cash on hand and borrowings under our existing credit facilities. This acquisition greatly expanded our offerings of bathroom cabinetry products. Net sales of WoodCrafters in the last six months of 2013 were approximately $115 million and WoodCrafters’ operating income was not material to the Company.

The following table summarizes the preliminary allocation of the purchase price to estimated fair values of assets acquired and liabilities assumed as of the date of the acquisition. This allocation is expected to change after asset and liability valuations are finalized.



(In millions)
Accounts receivable	$	41.4
Inventories		25.4
Property, plant and equipment		29.6
Goodwill		142.3
Identifiable intangible assets		89.4
Other assets		8.9
Total assets		337.0
Other current liabilities and accruals		35.0
Net assets acquired	$	302.0

As of the acquisition date, substantially all of the acquired goodwill was tax deductible. Goodwill primarily represents expected supply chain synergies. Identifiable intangible assets primarily consisted of customer relationships ($75.9 million) and technology ($9.6 million). The useful lives of these identifiable intangible assets are 18 years and 10 years, respectively.

The following unaudited pro forma summary presents consolidated financial information as if WoodCrafters had been acquired on January 1, 2012. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and WoodCrafters. The pro forma results include adjustments for the impact of a preliminary allocation of the purchase price and interest expense associated with debt that would have been incurred in connection with the acquisition. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2012. In addition, the unaudited pro forma information should not be deemed to be indicative of future results.



(In millions)	2013		2012
Net sales	$	4,264.8	$	3,771.0
Net income attributable to Home & Security		240.8		126.6
Basic earnings per common share	$	1.45	$	0.79
Diluted earnings per common share	$	1.41	$	0.76

In December 2012, our Security & Storage business acquired a company for approximately $20 million in cash. Purchase price adjustments and the allocation of the purchase price were finalized in the first quarter of 2013. Our December 31, 2012 balance sheet was retrospectively adjusted to reflect the purchase price adjustments in accordance with ASC requirements for Business Combinations, in particular a reduction in goodwill of $5.6 million and an increase in definite-lived intangible assets of $5.9 million. The acquisition was not material for the purposes of supplemental disclosure and did not have a material impact on our consolidated financial statements.

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).

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Goodwill and Identifiable Intangible Assets

Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2013

5. Goodwill and Identifiable 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, 2011^(a)	$	491.2		$	569.7	$	230.2		$	75.5		$	1,366.6
2012 translation adjustments		0.6			—		—			0.2			0.8
Acquisition-related adjustments		—			—		(1.1	)		15.1			14.0
Balance at December 31, 2012^(a)	$	491.8		$	569.7	$	229.1		$	90.8		$	1,381.4
2013 translation adjustments		(2.4	)		—		—			(1.4	)		(3.8	)
Acquisition-related adjustments		142.3			—		—			—			142.3
Balance at December 31, 2013^(a)	$	631.7		$	569.7	$	229.1		$	89.4		$	1,519.9

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

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

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2013 and 2012 were as follows:


	As of December 31, 2013							As of December 31, 2012
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets — tradenames	$	597.2	$	(42.0	)^(a)	$	555.2	$	603.4	$	(42.0	)^(a)	$	561.4
Amortizable intangible assets
Tradenames		19.6		(7.4	)		12.2		17.8		(6.9	)		10.9
Customer and contractual relationships		348.6		(182.5	)		166.1		274.2		(174.4	)		99.8
Patents/proprietary technology		63.2		(43.8	)		19.4		52.6		(41.1	)		11.5
Total		431.4		(233.7	)		197.7		344.6		(222.4	)		122.2
Total identifiable intangibles	$	1,028.6	$	(275.7	)	$	752.9	$	948.0	$	(264.4	)	$	683.6

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

The decrease in the net book value of indefinite-lived intangible assets, principally tradenames, from December 31, 2012 to December 31, 2013 of $6.2 million was due to foreign currency adjustments. The $86.8 million increase in gross amortizable identifiable intangible assets was predominantly due to the acquisition of WoodCrafters ($89.4 million).

We expect to record intangible amortization of approximately $16 million in 2014, trending down to $12 million in 2018.

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

As of December 31, 2013, the fair value of each of our reporting units except for one of the reporting units in the Advanced Material Doors & Windows segment exceeded the carrying value by a substantial margin. The estimated excess fair value of this reporting unit is less than 10%. In addition, for one of the tradenames within this reporting unit, fair value exceeded its carrying value by less than 10%. Accordingly, a reduction in the estimated fair value of this reporting unit or tradename could trigger an impairment. As of December 31, 2013, the book value of the goodwill of this reporting unit and this tradename was $86.1 million and $58.4 million, respectively. Factors influencing fair value estimates of this reporting unit that could trigger future impairment are enumerated in the final paragraph of this footnote.

In the fourth quarter of 2012, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $15.8 million. These charges were recorded on the asset impairment charges line of the income statement. The impairment charges in our Advanced Material Windows & Door Systems segment were $9.9 million and the impairment charge in our Kitchen & Bath Cabinetry segment was $5.9 million. These charges were primarily the result of an increase in our market-participant cost of capital discount rates. One tradename in the Kitchen & Bath Cabinetry segment was also impacted by reduced revenue growth expectations for high-end discretionary cabinet purchases developed during our annual planning process that was completed in the fourth quarter.

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 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. Our revenue and profit margin expectations were lowered based upon the results of our annual planning process that was completed in the fourth quarter of 2011 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.

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

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

External Debt and Financing Arrangements

Asset Impairment Charges

12 Months Ended

Dec. 31, 2013

Asset Impairment Charges

6. Asset Impairment Charges

At the end of the third quarter of 2013, our Kitchen and Bath Cabinetry segment completed an evaluation of its information technology strategy. The evaluation considered opportunities arising from the improving U.S. home market conditions. As a result of this evaluation, the segment abandoned certain software developed for internal use in order to redirect financial resources toward developing more flexible systems that provide industry leading content for consumers and more advanced tools for designers to deliver a superior purchasing experience for their customers. The abandonment of this internal use software resulted in a pre-tax impairment charge of $21.2 million, which was recorded in operating income on the asset impairment charges line of the income statement and reduced property, plant and equipment.

External Debt and Financing Arrangements

12 Months Ended

Dec. 31, 2013

7. External Debt and Financing Arrangements

We have a $650 million committed revolving credit facility, as well as a $350 million term loan. In July 2013, these facilities were renewed under essentially the same terms and conditions, extending the maturity date from October 2016 to July 2018. On December 31, 2013 and 2012, our outstanding borrowings in aggregate under the revolving credit facility and term loan were $350.0 million and $320.0 million, respectively. The interest rates under these facilities are variable based on LIBOR at the time of the borrowing and the Company’s leverage as measured by a debt to Adjusted EBITDA ratio. Based upon the Company’s debt to Adjusted EBITDA ratio, the Company’s borrowing rate could range from LIBOR + 1.0% to LIBOR + 2.0%. The credit facilities also include a minimum Consolidated Interest Coverage Ratio requirement of 3.0 to 1.0. The Consolidated Interest Coverage Ratio is defined as the ratio of Adjusted EBITDA to Consolidated Interest Expense. Adjusted EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other adjustments. Consolidated Interest Expense is as disclosed in our financial statements. The credit facilities also include a Maximum Leverage Ratio of 3.5 to 1.0 as measured by the ratio of our debt to Adjusted EBITDA. The Maximum Leverage Ratio is permitted to increase to 3.75 to 1.0 for three succeeding quarters in the event of an acquisition. At December 31, 2013, we were in compliance with our debt covenant ratios.

At December 31, 2013 and 2012, there were $6.0 million and $5.5 million of external short-term borrowings outstanding, respectively, comprised of notes payable to banks that are used for general corporate purposes. These amounts pertained to uncommitted bank lines of credit in China and India, which provide for unsecured borrowings for working capital of up to $22.7 million in aggregate, as of December 31, 2013 and 2012. The weighted-average interest rates on these borrowings were 12.3%, 13.0 % and 14.3% in 2013, 2012 and 2011, respectively.

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



(In millions)	2013		2012
$650 million revolving credit agreement due July 2018	$	—	$	—
$350 million term loan due July 2018		350.0		320.0
Total debt		350.0		320.0
Less: current portion		—		22.5
Total long-term debt	$	350.0	$	297.5

Term loan amortization payments during the next five years as of December 31, 2013 are zero in 2014, $17.5 million in 2015, $35.0 million in 2016, $35.0 million in 2017 and $262.5 million in 2018.

In our debt agreements, there are normal and customary events of default which would permit the lenders to accelerate the debt if not cured within applicable grace periods, such as failure to pay principal or interest when due or a change in control of the Company. There were no events of default as of December 31, 2013.

Financial Instruments

12 Months Ended

Dec. 31, 2013

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. 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, 2013 and 2012.

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

For derivative instruments that are designated as fair value hedges, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized on the same line of the statement of income. The effective portions of cash flow hedges are reported in 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, 2013 was $182.1 million, representing a net settlement receivable of $1.8 million. Based on foreign exchange rates as of December 31, 2013, we estimate that $1.3 million of net foreign currency derivative gains included in OCI as of December 31, 2013 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, 2013 and 2012 were:



		Fair Value

(In millions)	Location	2013		2012
Assets:
Foreign exchange contracts	Other current assets	$	2.1	$	1.0
Commodity contracts	Other current assets		—		0.2
Net investment hedges	Other current assets		0.6		—
	Total assets	$	2.7	$	1.2
Liabilities:
Foreign exchange contracts	Other current liabilities	$	0.3	$	0.8
Commodity contracts	Other current liabilities		—		0.1
	Total liabilities	$	0.3	$	0.9

The effects of derivative financial instruments on the consolidated statements of income in 2013, 2012 and 2011 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2013		2012			2011
Cash flow	Net sales	$	—	$	0.2		$	(0.6	)
	Cost of products sold		2.0		0.6			2.5
Fair value	Other income (expense), net		1.2		(0.3	)		—
Total		$	3.2	$	0.5		$	1.9

For cash flow hedges that are effective, the amounts recognized in OCI were $3.0 million and $0.4 million in 2013 and 2012, respectively. In the years ended December 31, 2013, 2012 and 2011, the ineffective portion of cash flow hedges recognized in other expense (income), net, was insignificant.

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

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Measurements

9. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 were as follows:



	Fair Value

(In millions)	2013		2012
Assets:
Derivative asset financial instruments (level 2)	$	2.7	$	1.2
Deferred compensation program assets (level 1)		3.5		3.6
Total assets	$	6.2	$	4.8
Liabilities:
Derivative liability financial instruments (level 2)	$	0.3	$	0.9

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

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

The carrying value of the Company’s long-term debt as of December 31, 2013 and 2012 of $350.0 million and $320.0 million, respectively, approximated its fair value. The fair value of the Company’s long-term debt was determined primarily by using broker quotes, which are level 2 inputs.

In 2013, 2012 and 2011, we recorded pre-tax intangible asset impairment charges of $21.2 million, $15.8 million and $90.0 million, respectively. Refer to Note 5, “Goodwill and Identifiable Intangible Assets,” and Note 6, “Asset Impairment Charges,” for additional information. In accordance with ASC requirements for Fair Value Measurements, below is the disclosure for assets measured at fair value on a non-recurring basis. There were no losses for indefinite-lived intangible assets in 2013.



(in millions)	2012				2011

	Fair Value Measurements Using Significant Unobservable Inputs (level 3)		Total Losses		Fair Value Measurements Using Significant Unobservable Inputs (level 3)		Total Losses
Indefinite-lived intangible assets	$	249.7	$	15.8	$	227.0	$	90.0

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

Capital Stock

12 Months Ended

Dec. 31, 2013

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 2013 and 2012 were as follows:



	Common Shares						Treasury Shares

	2013			2012			2013		2012
Balance at the beginning of the year		163,855,647			156,008,132			700,102		3,357
Stock plan shares issued		4,516,507			8,544,260			—		—
Shares surrendered by optionees		(296,100	)		(342,498	)		296,100		342,498
Common stock repurchases		(1,408,118	)		(354,247	)		1,408,118		354,247
Balance at the end of the year		166,667,936			163,855,647			2,404,320		700,102

In the second quarter of 2013, our Board of Directors declared our first dividend since becoming a publicly-traded company in October 2011, declaring a regular quarterly cash dividend of $0.10 per share of our common stock. In December 2013, our Board of Directors increased the quarterly cash dividend by 20% to $0.12 per share of our common stock.

The Company has 60,000,000 authorized shares of preferred stock, par value $0.01 per share. At December 31, 2013, no shares of our preferred stock were outstanding. Our Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue our preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock.

On July 25, 2012, our Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $150 million of shares of our outstanding common stock over the three years ending July 25, 2015. At December 31, 2013, the Company’s total remaining share repurchase authorization was $89.2 million. On February 25, 2014, our Board of Directors approved a second repurchase program that authorizes the Company to repurchase up to $150 million of shares of our outstanding common stock over the two years ending February 25, 2016. The share repurchase programs do not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time.

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

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Restructuring and Other Charges

Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation

11. Stock-Based Compensation

As of December 31, 2013, we had awards outstanding under two Long-Term Incentive Plans, the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan (the “Plan”) and the 2011 Long-Term Incentive Plan (the “2011 Plan”, and together with the Plan the “Plans”). During 2013, our stockholders approved the Plan, which provides for the granting of stock options, performance share awards, restricted stock units, and other equity-based awards, to employees, directors and consultants. As of December 31, 2013, 8.7 million shares of common stock were authorized for issuance under the Plan. In addition, shares of common stock may be automatically added to the number of shares of common stock that may be issued as awards expire, are terminated, cancelled or forfeited, or are used to satisfy withholding taxes with respect to existing awards under the 2011 Plan. No new stock-based awards can be made under the 2011 Plan, but there are outstanding awards under the 2011 Plan that continue to vest and/or be exercisable. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares. Prior to the Separation, employees of Home & Security participated in our Former Parent’s stock-based compensation plans.

At the time of the Separation, certain outstanding equity awards granted by our Former Parent and held by Home & Security employees were converted into Home & Security equity awards. 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.

Pre-tax stock-based compensation expense was as follows:



(In millions)	2013		2012		2011
Stock option awards	$	8.3	$	12.5	$	14.1
Restricted stock units		10.8		10.0		1.6
Performance awards		6.7		3.3		—
Director awards		0.9		1.1		—
Total pre-tax expense		26.7		26.9		15.7
Tax benefit		9.7		9.7		5.3
Total after tax expense	$	17.0	$	17.2	$	10.4

Compensation costs that were capitalized in inventory were not material.

Restricted Stock Units

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

A summary of activity with respect to restricted stock units outstanding under the Plans related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		1,767,268		$	14.49
Granted		389,350			34.83
Vested		(730,421	)		13.85
Cancelled		(128,901	)		17.24
Non-vested at December 31, 2013		1,297,296		$	20.68

The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2013 was approximately $14.2 million, and the weighted-average period of time over which this cost will be recognized is 1.9 years. The fair value of restricted stock units that vested during 2013 and 2012 was $26.9 million and $18.5 million, respectively. There were no restricted stock units that vested during 2011.

Stock Option Awards

The conversion of stock options constituted a modification of those stock option awards in accordance with ASC requirements for Compensation — Stock Compensation 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 in 2011 of $2.4 million related to previously vested options, which was recorded in business separation costs in the statement of income.

All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. Stock options granted under the Plans generally vest over a three-year period and have a maturity of ten years from the grant date. Home & Security stock options converted from awards granted by our Former Parent prior to the Separation retained the vesting schedule and expiration date of the original terms and conditions of the stock option awards.

The fair value of Home & Security options granted subsequent to the Separation and our Former Parent’s stock options granted to Home & Security employees prior to the Separation 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

	2013		2012		2011		2011
Current expected dividend yield		1.5%		1.5%		1.5%		2.0%
Expected volatility		32.0%		35.0%		39.0%		33.2%
Risk-free interest rate		1.1%		1.2%		1.2%		2.3%
Expected term		6.0 years		6.0 years		6.5 years		5.5 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 year ended December 31, 2011 was $16.98.

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, at a similar stage of life and with similar market capitalization because 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 Securities and Exchange Commission’s safe harbor guidelines. The dividend yield is based on the Company’s estimated dividend over the expected term. The weighted-average grant date fair value of stock options granted under the Plans during the years ended December 31, 2013, 2012 and 2011 was $9.02, $5.80 and $4.20, respectively.

A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2012		13,070,134		$	13.14
Granted		727,200			33.25
Exercised		(3,770,311	)		13.48
Expired/forfeited		(377,463	)		16.60
Outstanding at December 31, 2013		9,649,560		$	14.39

Options outstanding and exercisable at December 31, 2013 were as follows:



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

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $11.99		2,788,572		3.0	$	9.71		2,788,572	$	9.71
12.00 to 14.00		4,590,316		6.9		13.07		2,557,659		13.21
14.01 to 40.96		2,270,672		6.5		22.82		968,430		17.69
		9,649,560		5.8	$	14.39		6,314,661	$	12.35

^(a)	At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million.

^(b)	At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million.

The remaining unrecognized compensation cost related to unvested awards at December 31, 2013 was approximately $9.4 million, and the weighted-average period of time over which this cost will be recognized is 1.7 years. The fair value of options that vested during the years ended December 31, 2013, 2012 and 2011 was $12.4 million, $10.8 million and $10.0 million, respectively. The intrinsic value of Home & Security stock options exercised in the years ended December 31, 2013, 2012 and 2011 was $97.1 million, $70.2 million and $10.0 million, respectively.

Performance Awards

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

The following table summarizes information about performance share awards as of December 31, 2013, as well as activity during the year then ended, based on the target award amounts in the performance share award agreements:



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		328,100		$	19.47
Granted		210,500			34.40
Cancelled		(39,100	)		24.38
Non-vested at December 31, 2013		499,500		$	25.38

No awards were made prior to 2012. The remaining unrecognized pre-tax compensation cost related to performance share awards at December 31, 2013 was approximately $11.0 million, and the weighted-average period of time over which this cost will be recognized is 1.7 years.

Director Awards

Starting in 2012, stock awards compensate outside directors under the Plan. Awards are issued annually in the second quarter as part of the compensation to outside directors. In addition, outside directors can elect to have director fees paid in stock or can elect to defer payment of stock. Compensation cost is expensed at the time of an award based on the fair value of a share at the date of the award. In 2013 and 2012, we awarded 24,672 and 52,208 shares of common stock to outside directors with a weighted average fair value on the date of the award of $36.47 and $20.46, respectively.

Defined Benefit Plans

12 Months Ended

Dec. 31, 2013

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

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



(In millions)	Pension Benefits						Postretirement Benefits

Obligations and Funded Status at December 31	2013			2012			2013			2012
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	722.5		$	639.5		$	73.3		$	93.9
Service cost		11.4			12.1			0.3			0.5
Interest cost		30.1			30.7			1.7			3.9
Plan amendments		—			0.4			(34.7	)		(29.8	)
Actuarial (gain) loss		(73.0	)		66.0			(0.3	)		9.9
Participants’ contributions		—			—			0.5			0.8
Benefits paid		(28.7	)		(26.2	)		(7.0	)		(6.4	)
Medicare Part D reimbursement		—			—			0.4			0.5
Projected benefit obligation at end of year	$	662.3		$	722.5		$	34.2		$	73.3
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	648.5		$	703.3
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	536.8		$	477.9		$	—		$	—
Actual return on plan assets		74.6			63.7			—			—
Employer contributions		1.1			21.4			6.1			5.1
Participants’ contributions		—			—			0.5			0.8
Medicare Part D reimbursement		—			—			0.4			0.5
Benefits paid		(28.7	)		(26.2	)		(7.0	)		(6.4	)
Fair value of plan assets at end of year	$	583.8		$	536.8		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(78.5	)	$	(185.7	)	$	(34.2	)	$	(73.3	)

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)	2013			2012			2013			2012
Current benefit payment liability	$	(0.8	)	$	(0.8	)	$	(3.5	)	$	(5.5	)
Accrued benefit liability		(77.7	)		(184.9	)		(30.7	)		(67.8	)
Net amount recognized	$	(78.5	)	$	(185.7	)	$	(34.2	)	$	(73.3	)

In the fourth quarter of 2012 and first half of 2013, we amended certain postretirement benefit plans to reduce health benefits for certain current and retired employees. The impact of these changes was a reduction in accrued retiree benefit plans of $29.8 million in 2012 and $34.7 million in 2013, and we recognized actuarial losses of $4.0 million in 2013 due to a decrease in the discount rate and a resulting lower threshold for loss recognition because of the reduced postretirement obligation. Liability reduction resulting from these plan amendments are recorded as amortization of prior service credits in net income in accordance with accounting requirements. In addition, in the first quarter of 2013, we communicated to certain employees our decision to freeze an hourly pension plan by December 31, 2016. As a result, we remeasured our pension liability, updating our pension measurement assumptions, and recorded a $20.0 million reduction in the liability. The curtailment charge associated with this pension freeze was insignificant. See Note 22, “Accumulated Other Comprehensive Income,” for information on the impact on accumulated other comprehensive income. In the third and fourth quarters of 2011, we communicated to employees our decision to freeze salaried and certain hourly non-union pension plans by December 31, 2016. As a result, we remeasured our pension liabilities, updated our pension measurement assumptions, and recorded pension curtailment charges totaling $1.8 million.

In the first quarter of 2014, we amended certain postretirement benefit plans to reduce health benefits for certain current and retired employees. The reduction in accrued retiree benefit plans is estimated to be $14.7 million and will be recorded in the first quarter of 2014. Of this reduction, $11.7 million will be recorded as amortization of prior service credit in net income over the next two to three years. In addition, in the first quarter of 2014, we expect to recognize actuarial gains of $0.6 million and one-time prior service credits in net income of $3.7 million.

In 2014, we expect to make pension cash contributions of approximately $10 million.

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 at December 31, 2011		63.5			6.0
Recognition of actuarial loss		(30.6	)		(11.6	)
Current year actuarial loss		39.3			9.9
Net actuarial loss at December 31, 2012	$	72.2		$	4.3
Recognition of actuarial gain		(0.9	)		(4.5	)
Current year actuarial gain		(105.6	)		(0.3	)
Net actuarial gain at December 31, 2013	$	(34.3	)	$	(0.5	)
Net prior service cost at December 31, 2011		0.5			1.0
Prior service cost (credit) recognition due to plan amendments		0.4			(29.8	)
Amortization		(0.3	)		2.6
Net prior service cost (credit) at December 31, 2012	$	0.6		$	(26.2	)
Prior service credit recognition due to plan amendments		—			(34.7	)
Amortization		(0.1	)		27.4
Net prior service cost (credit) at December 31, 2013	$	0.5		$	(33.5	)
Total at December 31, 2013	$	(33.8	)	$	(34.0	)

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 (credits) related pension benefits of $0.1 million and postretirement benefits of $(19.4) million.

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit Cost	Pension Benefits									Postretirement Benefits

(In millions)	2013			2012			2011			2013			2012			2011
Service cost	$	11.4		$	12.1		$	12.9		$	0.3		$	0.5		$	0.5
Interest cost		30.1			30.7			31.0			1.7			3.9			4.4
Expected return on plan assets		(41.8	)		(36.8	)		(41.3	)		—			—			—
Recognition of actuarial losses		0.8			30.6			80.0			4.4			11.6			—
Amortization of prior service cost (credits)		0.1			0.3			0.3			(27.4	)		(2.6	)		0.4
Curtailment and settlement losses		0.1			—			1.8			0.1			—			—
Net periodic benefit cost	$	0.7		$	36.9		$	84.7		$	(20.9	)	$	13.4		$	5.3



Assumptions	Pension Benefits			Postretirement Benefits

	2013	2012	2011	2013	2012	2011
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	5.0%	4.2%		4.3%	3.7%
Rate of compensation increase	4.0%	4.0%		—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.2%	4.9%	5.8%	3.7%	4.6%	5.3%
Expected long-term rate of return on plan assets	7.8%	7.8%	8.5%	—	—	—
Rate of compensation increase	4.0%	4.0%	4.0%	—	—	—



	Postretirement Benefits

	2013			2012
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31:
Health care cost trend rate assumed for next year		7.1/7.5	%^(a)		7.5/7.0	%^(a)
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		5.0	%
Year that the rate reaches the ultimate trend rate		2022			2017

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

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	$	0.1	$	(0.1	)
Effect on postretirement benefit obligation		1.8		(2.0	)

Plan Assets

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2013 were as follows:


(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	21.2	$	—	$	21.2
Commingled funds:
Cash and cash equivalents		8.1		8.1		—
Equity		278.6		278.6		—
Fixed income		232.6		232.6		—
Multi-strategy hedge funds		20.5		—		20.5
Real estate		22.8		—		22.8
Total	$	583.8	$	519.3	$	64.5

A reconciliation of Level 3 measurements as of December 31, 2013 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate			Total
January 1, 2013	$	20.6	$	18.8	$	24.4		$	63.8
Actual return on assets related to assets still held		0.6		1.7		3.4			5.7
Purchases, sales and settlements		—		—		(5.0	)		(5.0	)
December 31, 2013	$	21.2	$	20.5	$	22.8		$	64.5

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2012 were as follows:



(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	20.6	$	—	$	20.6
Commingled funds:
Cash and cash equivalents		6.3		6.3		—
Equity		331.5		331.5		—
Fixed income		135.2		135.2		—
Multi-strategy hedge funds		18.8		—		18.8
Real estate		24.4		—		24.4
Total	$	536.8	$	473.0	$	63.8

A reconciliation of Level 3 measurements as of December 31, 2012 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2012	$	20.0	$	17.5	$	21.9	$	59.4
Actual return on assets related to assets still held		0.6		1.3		2.5		4.4
December 31, 2012	$	20.6	$	18.8	$	24.4	$	63.8

Our defined benefit trust owns 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 standard 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. A Master Trust was established to hold the assets of our domestic defined benefit plans. The U.S. defined benefit asset allocation policy of the trust allows for an equity allocation of 0% to 75%, a fixed income allocation of 25% to 100%, a cash allocation of up to 25% and other investments up to 20%. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure.

Our 2014 expected blended long-term rate of return on plan assets of 7.4% was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants.

Estimated Future Retirement Benefit Payments

The following retirement benefit payments are expected to be paid:


(In millions)	Pension Benefits		Postretirement Benefits
2014	$	32.2	$	3.4
2015		34.1		3.4
2016		36.0		3.4
2017		37.5		2.8
2018		39.0		2.8
Years 2019-2023		215.0		12.7

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.

Defined Contribution Plan Contributions

We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions by the Company related to these plans amounted to $18.7 million, $16.1 million and $17.8 million in 2013, 2012 and 2011, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes

13. Income Taxes

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



(In millions)	2013		2012		2011
Domestic operations	$	276.9	$	95.0	$	(73.1	)
Foreign operations		68.0		59.0		29.5
Income (loss) before income taxes and noncontrolling interests	$	344.9	$	154.0	$	(43.6	)

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



(In millions)	2013			2012			2011
Income tax expense (benefit) computed at federal statutory income tax rate	$	120.7		$	53.9		$	(15.3	)
Other income taxes, net of federal tax benefit		8.0			3.8			(1.8	)
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(10.2	)		(7.0	)		(5.3	)
Tax effect on foreign dividends		—			12.4			10.2
Tax benefit on income attributable to domestic production activities		(5.8	)		(2.2	)		(2.6	)
Net adjustments for uncertain tax positions		2.0			(11.0	)		(9.7	)
Net effect of rate changes on deferred taxes		(3.0	)		(0.2	)		(2.9	)
Prior period items		—			(3.9	)		—
Valuation allowance increase (decrease)		2.1			(8.9	)		16.8
Miscellaneous other, net		0.2			(2.6	)		1.6
Income tax expense (benefit) as reported	$	114.0		$	34.3		$	(9.0	)
Effective income tax rate		33.1	%		22.3	%		20.6	%

The effective income tax rate for 2013 was unfavorably impacted by an increase in the valuation allowance related to an investment impairment charge for which we cannot presently record an income tax benefit. The effective income tax rate in 2013 was favorably impacted by $3.0 million of deferred tax benefits associated with the enacted repeal of the Mexican Business Flat Tax, under the 2014 Mexican Tax Reform Package and the extension of the U.S. research and development credit under The American Taxpayer Relief Act of 2012. The effective income tax rate was also favorably impacted by an increased benefit attriburable to domestic production activities. The effective income tax rate in 2012 was favorably impacted by a tax benefit related to the final settlement of a U.S. federal income tax audit covering the 2008 to 2009 years and a decrease in valuation allowance due to certain reorganization actions among our foreign subsidiaries. The effective rate in 2012 was unfavorably impacted by an income tax expense on foreign dividends. The effective income 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. The 2011 effective income tax 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.

On September 13, 2013, the Treasury Department and Internal Revenue Service issued the final tangible property repair regulations that are effective for years beginning on or after January 1, 2014. While the final impact of these regulations on our financial statements will not be determined until our 2014 income tax return is filed, we do not expect it to have a material impact on our results of operations or cash flows.

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


(In millions)	2013			2012			2011
Unrecognized tax benefits — beginning of year	$	20.8		$	35.4		$	38.8
Gross additions — current year tax positions		4.4			2.8			2.3
Gross additions — prior year tax positions		0.7			0.6			7.2
Gross additions — purchase accounting adjustments		1.6			—			—
Gross reductions — prior year tax positions		(3.2	)		(13.5	)		(12.0	)
Gross reductions — settlements with taxing authorities		(0.6	)		(4.0	)		(0.4	)
Impact of change in foreign exchange rates		—			—			(0.5	)
Impact due to expiration of statutes of limitations		—			(0.5	)		—
Unrecognized tax benefits — end of year	$	23.7		$	20.8		$	35.4

The amount of UTBs that, if recognized as of December 31, 2013, would affect the Company’s effective tax rate was $23.4 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $2.5 million to $3.5 million primarily as a result of the conclusion of U.S. state and foreign income tax proceedings.

We classify interest and penalty accruals related to UTBs as income tax expense. In 2013, we recognized an interest and penalty benefit of approximately $0.2 million. In 2012, we recognized an interest and penalty benefit of approximately $1.7 million, primarily driven by audit resolutions. In 2011, we recognized an interest and penalty benefit of $1.4 million. At December 31, 2013 and 2012, we had accruals for the payment of interest and penalties of $9.9 million and $10.2 million, respectively.

We file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently under examination by the U.S. Internal Revenue Service (“IRS”) for the periods related to 2010 and 2011. We have tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2008, Mexico for years after 2006 and China for years after 2009.

Income taxes in 2013, 2012 and 2011 were as follows:



(In millions)	2013			2012			2011
Current
Federal	$	102.8		$	17.6		$	26.0
Foreign		12.8			13.1			8.9
State and other		11.2			4.1			16.9
Deferred
Federal, state and other		(13.0	)		4.8			(66.8	)
Foreign		0.2			(5.3	)		6.0
Total income tax expense (benefit)	$	114.0		$	34.3		$	(9.0	)

The components of net deferred tax assets (liabilities) as of December 31, 2013 and 2012 were as follows:



(In millions)	2013			2012
Deferred tax assets:
Compensation and benefits	$	36.8		$	32.8
Defined benefit plans		44.2			84.3
Capitalized inventories		13.1			13.8
Accounts receivable		6.8			6.9
Other accrued expenses		17.7			18.0
Net operating loss and other tax carryforwards		25.5			32.7
Valuation allowance		(20.7	)		(19.2	)
Miscellaneous		14.7			10.7
Total deferred tax assets		138.1			180.0
Deferred tax liabilities:
LIFO inventories		(12.5	)		(12.5	)
Fixed assets		(63.4	)		(69.4	)
Identifiable intangible assets		(252.9	)		(253.6	)
Miscellaneous		(8.1	)		(12.3	)
Total deferred tax liabilities		(336.9	)		(347.8	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2013 and 2012 as follows:



(In millions)	2013			2012
Other current assets	$	46.2		$	55.6
Other current liabilities		(0.6	)		(1.2	)
Other assets		1.4			1.8
Deferred income taxes		(245.8	)		(224.0	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)

As of December 31, 2013 and 2012, the Company had deferred tax assets relating to net operating losses and other tax carryforwards of $25.5 million and $32.7 million, respectively, of which approximately $1.4 million will expire between 2014 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.

The undistributed earnings of foreign subsidiaries that are considered indefinitely reinvested were $156.1 million at December 31, 2013. A quantification of the associated deferred tax liability on these undistributed earnings has not been made, as the determination of such liability is not practicable.

In October, 2011, we separated from our Former Parent. During 2012, we analyzed the subsidiary legal and capital structures inherited from our Former Parent to assess their compatibility with our strategies as a new independent company. Based on this analysis, in the fourth quarter of 2012, we committed to a plan to reorganize certain foreign subsidiaries and adjust their capital structures to better align with our business strategy as a new independent company. As part of this plan, we committed to a non-recurring remittance of certain foreign earnings and recorded an associated tax liability of $12.4 million. In 2011, prior to the Separation and at the direction of our Former Parent, we remitted foreign earnings and recorded an associated tax liability of $9.1 million. We have not provided deferred income taxes on the remaining undistributed earnings of foreign subsidiaries.

In general, under the Tax Allocation Agreement that we entered into with our Former Parent, 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. Although Home & Security will continue to be severally liable with our Former Parent for this liability following the Separation, 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. 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 of all the shares of our common stock owned by our Former Parent to stockholders of our Former Parent as of September 20, 2011 (the “Distribution”) to qualify for tax-favored treatment under the Internal Revenue 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.

Restructuring and Other Charges

12 Months Ended

Dec. 31, 2013

14. Restructuring and Other Charges

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



	Year Ended December 31, 2013
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Kitchen & Bath Cabinetry	$	2.2	$	0.1	$	—	$	2.3
Plumbing & Accessories		0.6		0.6		0.2		1.4
Advanced Material Windows & Door Systems		1.4		—		—		1.4
Total	$	4.2	$	0.7	$	0.2	$	5.1

^(a)

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

^(b)	Selling, general and administrative expenses

2013 restructuring and other charges related to supply chain initiatives.

Pre-tax restructuring and other charges for the year ended December 31, 2012 were:



	Year Ended December 31, 2012
(In millions)	Restructuring Charges			Other Charges^(a)			Total Charges
Kitchen & Bath Cabinetry	$	4.7		$	8.9		$	13.6
Advanced Material Windows & Door Systems		0.8			(3.4	)		(2.6	)
Security & Storage		(1.0	)		—			(1.0	)
Total	$	4.5		$	5.5		$	10.0

^(a)

“Other Charges,” which were recorded in cost of products sold in 2012, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.

In August 2012, we announced and initiated a restructuring action in the Kitchen & Bath Cabinetry segment. As a result of the restructuring, in 2012 we recorded restructuring and other charges of approximately $12 million due to the planned closure of our Martinsville, Virginia cabinet manufacturing facility. Pre-tax charges included $3.2 million of workforce reduction and exit costs to close the facility and to consolidate manufacturing at other facilities and $8.5 million of other charges, primarily accelerated depreciation of long-lived assets associated with the closed facility. The restructuring actions were undertaken to further enhance the efficiency and flexibility of the Company’s supply chains.

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



	Year Ended December 31, 2011
(In millions)	Restructuring Charges		Other Charges^(a)			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,” which were recorded in cost of products sold in 2011, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.

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.

The Company’s restructuring liability was not material as of December 31, 2013, 2012 and 2011.

Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions

15. 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 entered into in connection with the Separation, our Former Parent agreed to indemnify us from certain liabilities and we agreed to indemnify our Former Parent from certain liabilities. 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 latter payments represented U.S. cash balances generated from August 26, 2011, the date of the conversion of the Company from a Delaware limited liability company to a Delaware corporation, through the date of the Separation. In addition, in the fourth quarter of 2012, we paid $3.0 million to our Former Parent for the final settlement of the Home & Security portion of our Former Parent’s consolidated 2011 federal income tax return. In the second quarter of 2013, we received $1.2 million from our Former Parent for the final settlement of 2011 state income tax returns in which Home & Security companies were included, net of a state audit payment that was owed to our Former Parent.

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. The weighted-average interest rate on loans to/from our Former Parent was 3.4% in 2011. Related party interest expense and income in 2011 were $29.3 million and $6.1 million, respectively, netting to expense of $23.2 million.

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. 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.

Information on Business Segments

Business Separation Costs	12 Months Ended
Business Separation Costs	Dec. 31, 2013
Business Separation Costs	16. 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, 2013

Commitments

17. Commitments

Purchase Obligations

Purchase obligations of the Company as of December 31, 2013 were $298.8 million, of which $283.9 million is due in one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures.

Lease Commitments

Future minimum rental payments under non-cancelable operating leases as of December 31, 2013 were as follows:


(In millions)
2014	$	29.4
2015		24.0
2016		17.0
2017		8.4
2018		6.1
Remainder		4.4
Total minimum rental payments	$	89.3

Total rental expense for all operating leases (reduced by minor amounts from subleases) amounted to $47.9 million, $49.3 million and $35.2 million in 2013, 2012 and 2011, respectively.

Product Warranties

We generally record warranty expense at the time of sale. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the years ended December 31, 2013, 2012 and 2011.



(In millions)	2013			2012			2011
Reserve balance at the beginning of the year	$	14.3		$	13.9		$	12.6
Provision for warranties issued		20.1			17.5			18.9
Settlements made (in cash or in kind)		(19.2	)		(17.1	)		(17.6	)
Reserve balance at end of year	$	15.2		$	14.3		$	13.9

Information on Business Segments

12 Months Ended

Dec. 31, 2013

18. Information on Business Segments

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

The Kitchen & Bath Cabinetry segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Kitchen Craft, Kitchen Classics, Omega, Schrock, Homecrest, Decorá, Diamond and Kemper. In addition, cabinets are distributed under the Martha Stewart Living and Thomasville Cabinetry brand names. The Plumbing & Accessories segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks predominantly under the Moen brand. The Advanced Material Windows & Door Systems segment 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. The Security & Storage segment includes locks, safety and security devices and electronic security products under the Master Lock brand name, and tool storage and garage organization products under the Sears Craftsman and Waterloo brand names.

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



(In millions)	2013		2012		2011
Net sales:
Kitchen & Bath Cabinetry	$	1,642.2	$	1,326.6	$	1,256.3
Plumbing & Accessories		1,287.0		1,100.7		962.8
Advanced Material Windows & Door Systems		657.8		587.2		552.9
Security & Storage		570.4		576.6		556.6
Net sales	$	4,157.4	$	3,591.1	$	3,328.6

Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2013, 2012 and 2011. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 14%, 13% and 13% of net sales in 2013, 2012 and 2011, respectively. Net sales to Lowe’s were 13%, 13% and 15% of net sales in 2013, 2012 and 2011, respectively.



(In millions)	2013			2012			2011

Operating income (loss):
Kitchen & Bath Cabinetry	$	97.1		$	20.5		$	5.7
Plumbing & Accessories		228.3			169.2			138.0
Advanced Material Windows & Door Systems		14.4			(1.0	)		(101.2	)
Security & Storage		90.4			75.4			62.6
Less: Corporate expenses^(a)		(73.1	)		(102.4	)		(120.7	)
Operating income (loss)	$	357.1		$	161.7		$	(15.6	)

Total assets:
Kitchen & Bath Cabinetry	$	1,588.0		$	1,248.5		$	1,273.2
Plumbing & Accessories		1,176.3			1,081.7			1,065.0
Advanced Material Windows & Door Systems		766.1			778.2			804.2
Security & Storage		461.8			459.8			399.9
Corporate^(b)		185.9			305.7			95.6
Total assets	$	4,178.1		$	3,873.9		$	3,637.9
^(a) Below is a table detailing Corporate expenses:

Corporate expenses:
General and administrative expense^(c)	$	(78.0	)	$	(63.7	)	$	(44.1	)
Business separation costs		—			—			(2.4	)
Defined benefit plan costs		10.1			3.5			5.8
Defined benefit plan recognition of actuarial losses		(5.2	)		(42.2	)		(80.0	)
Total Corporate expenses	$	(73.1	)	$	(102.4	)	$	(120.7	)

^(b)	Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent.

^(c)	General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011.



(In millions)	2013			2012			2011
Depreciation expense:
Kitchen & Bath Cabinetry	$	29.3		$	38.8		$	38.6
Plumbing & Accessories		16.7			18.1			18.2
Advanced Material Windows & Door Systems		16.9			18.5			25.8
Security & Storage		13.0			13.3			14.0
Corporate		1.3			1.5			0.5
Depreciation expense	$	77.2		$	90.2		$	97.1

Amortization of intangible assets:
Kitchen & Bath Cabinetry	$	5.1		$	3.3		$	6.0
Advanced Material Windows & Door Systems		7.5			7.5			7.9
Security & Storage		0.6			0.3			0.5
Amortization of intangible assets	$	13.2		$	11.1		$	14.4

Capital expenditures:
Kitchen & Bath Cabinetry	$	36.4		$	27.7		$	29.1
Plumbing & Accessories		25.3			19.1			16.5
Advanced Material Windows & Door Systems		13.6			15.0			13.5
Security & Storage		18.9			13.0			9.4
Corporate		2.5			0.2			—
Capital expenditures, gross		96.7			75.0			68.5
Less: proceeds from disposition of assets		(2.2	)		(13.5	)		(3.5	)
Capital expenditures, net	$	94.5		$	61.5		$	65.0

Net sales by geographic region^(a):
United States	$	3,479.4		$	2,969.1		$	2,755.0
Canada		418.1			405.3			390.3
China and other international		259.9			216.7			183.3
Net sales	$	4,157.4		$	3,591.1		$	3,328.6

Property, plant and equipment, net:
United States	$	439.2		$	428.9		$	443.7
Mexico		55.6			37.0			39.1
Canada		29.4			32.7			32.8
China and other international		10.2			10.8			10.2
Property, plant and equipment, net	$	534.4		$	509.4		$	525.8

^(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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Other Expense (Income), Net

Quarterly Financial Data

12 Months Ended

Dec. 31, 2013

Quarterly Financial Data

19. Quarterly Financial Data

Unaudited

(In millions, except per share amounts)



2013	1^st		2^nd		3^rd		4^th		Full Year
Net sales	$	890.0	$	1,040.4	$	1,125.1	$	1,101.9	$	4,157.4
Gross profit		300.2		377.0		384.9		376.7		1,438.8
Operating income		56.6		106.5		98.6		95.4		357.1
Net income		37.5		64.2		64.6		64.6		230.9
Net income attributable to Home & Security		37.3		64.0		64.2		64.2		229.7
Basic earnings per common share		0.23		0.39		0.39		0.39		1.39
Diluted earnings per common share		0.22		0.37		0.37		0.37		1.34

In the third quarter of 2013, we recorded pre-tax asset impairment charges in our Kitchen & Bath Cabinetry segment of $21.2 million ($13.8 after tax or $0.08 per diluted share) associated with the abandonment of certain internal use software. We recorded pre-tax defined benefit plan actuarial losses of $5.2 million in 2013 — $4.6 million ($3.1 million after tax or $0.02 per diluted share) in the first quarter, $0.7 million ($0.4 million after tax or $— per diluted share) in the second quarter, $0.3 million ($0.2 million after tax or $— per diluted share) in the third quarter and a gain of $0.4 million ($0.4 million after tax or $— per diluted share) in the fourth quarter.



2012	1^st		2^nd		3^rd		4^th		Full Year
Net sales	$	798.8	$	935.3	$	909.1	$	947.9	$	3,591.1
Gross profit		246.8		317.4		302.3		303.5		1,170.0
Operating income		21.3		72.3		60.6		7.5		161.7
Net income		13.0		47.9		40.2		18.6		119.7
Net income attributable to Home & Security		12.5		47.8		40.0		18.4		118.7
Basic earnings per common share		0.08		0.30		0.25		0.11		0.74
Diluted earnings per common share		0.08		0.29		0.24		0.11		0.71

In the fourth quarter of 2012, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $15.8 million ($9.7 million after tax or $0.06 per diluted share). We recorded pre-tax defined benefit plan actuarial losses of $42.2 million in 2012 — $3.7 million ($2.3 million after tax or $0.01 per diluted share) in the third quarter and $38.5 million ($23.9 million after tax or $0.14 per diluted share) in the fourth quarter.

Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

20. Earnings Per Share

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



(In millions, except per share data)	2013		2012		2011
Net income (loss) attributable to Home & Security	$	229.7	$	118.7	$	(35.6	)
Basic earnings (loss) per common share	$	1.39	$	0.74	$	(0.23	)
Diluted earnings (loss) per common share	$	1.34	$	0.71	$	(0.23	)
Basic average shares outstanding		165.5		160.6		155.2
Diluted average shares outstanding		171.3		166.1		155.2
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.4		0.7		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 total number of issued and outstanding shares was increased 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. In periods prior to the Separation, the same number of shares was used to calculate basic and diluted earnings per share because 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, 2013

21. Other Expense (Income), Net

The components of other expense (income), net for the years ended December 31, 2013, 2012 and 2011 were as follows:



(In millions)	2013			2012			2011
Foreign currency transaction losses	$	—		$	—		$	2.7
Asset impairment charge		6.2			—			—
Other items, net		(1.2	)		(1.0	)		(1.1	)
Total other expense (income), net	$	5.0		$	(1.0	)	$	1.6

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

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income

22. Accumulated Other Comprehensive Income

The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 were as follows:



(In millions)

Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Statement of Comprehensive Income
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	2.3		Cost of products sold
Commodity contract		(0.3	)	Cost of products sold

		2.0		Total before tax
		(0.7	)	Tax expense

	$	1.3		Net of tax
Defined benefit plan items
Amortization of prior service cost	$	27.3		^(a)
Recognition of actuarial losses		(5.2	)	^(a)
Curtailment and settlement losses		(0.2	)	^(a)

		21.9		Total before tax
		(8.4	)	Tax expense

	$	13.5		Net of tax


Total reclassifications for the period	$	14.8		Net of tax

^(a)	These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, “Defined Benefit Plans,” for additional information.

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			Derivative Hedging Gain			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2010	$	56.9		$	1.2		$	(28.6	)	$	29.5
Changes during year		(1.8	)		(0.7	)		(16.4	)		(18.9	)
Balance at December 31, 2011		55.1			0.5			(45.0	)		10.6
Changes during year		8.4			(0.3	)		11.9			20.0
Balance at December 31, 2012	$	63.5		$	0.2		$	(33.1	)	$	30.6
Amounts classified into accumulated other comprehensive income		(10.2	)		2.0			87.8			79.6
Amounts reclassified from accumulated other comprehensive income		—			(1.3	)		(13.5	)		(14.8	)
Net current period other comprehensive income		(10.2	)		0.7			74.3			64.8
Balance at December 31, 2013	$	53.3		$	0.9		$	41.2		$	95.4

Contingencies

12 Months Ended

Dec. 31, 2013

Contingencies

23. 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, 2013, eight such instances have not been dismissed, settled or otherwise resolved. In calendar year 2013, we were identified as a PRP in one new instance, which we settled in 2013. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have an adverse effect on our results of operations, cash flows or financial condition. At December 31, 2013 and 2012, we had accruals of $5.6 million and $6.8 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Schedule II Valuation and Qualifying Accounts

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Schedule II Valuation and Qualifying Accounts

For the years ended December 31, 2013, 2012 and 2011



(In millions)	Balance at Beginning of Period		Charged to Expense			Write-offs and Deductions^(a)		Other			Balance at End of Period
2013:
Allowance for cash discounts, returns and sales allowances	$	35.4	$	133.4		$	133.0	$	—		$	35.8
Allowance for doubtful accounts		9.0		0.7			2.9		—			6.8
Allowance for deferred tax assets		19.2		1.5			—		—			20.7

2012:
Allowance for cash discounts, returns and sales allowances	$	39.3	$	138.0		$	142.1	$	0.2		$	35.4
Allowance for doubtful accounts		10.6		1.6			3.2		—			9.0
Allowance for deferred tax assets		26.6		(7.4	)		—		—			19.2

2011:
Allowance for cash discounts, returns and sales allowances	$	37.3	$	157.8		$	155.8	$	—		$	39.3
Allowance for doubtful accounts		14.7		1.5			5.6		—			10.6
Allowance for deferred tax assets		41.9		21.5			—		(36.8	)		26.6

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

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Use of Estimates

Cash and Cash Equivalents

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

Allowances for Doubtful Accounts

Inventories

Property, Plant and Equipment

Long-lived Assets

Goodwill and Indefinite-lived Intangible Assets

Defined Benefit Plans

Litigation Contingencies

Income Taxes

Revenue Recognition

Selling, General and Administrative Expenses

Customer Program Costs

Stock-based Compensation

Earnings Per Share

Foreign Currency Translation

Derivative Financial Instruments

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists

Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Estimated Useful Lives of Property Plant and Equipment

Estimated useful lives of the related assets are as follows:

Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2013

Supplemental Information on Balance Sheets

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



(In millions)	2013		2012
Inventories:
Raw materials and supplies	$	184.6	$	144.3
Work in process		52.5		38.6
Finished products		234.5		174.3
Total inventories	$	471.6	$	357.2

Property, plant and equipment:
Land and improvements	$	53.8	$	47.6
Buildings and improvements to leaseholds		374.5		324.5
Machinery and equipment		1,066.3		1,056.3
Construction in progress		61.5		62.8
Property, plant and equipment, gross		1,556.1		1,491.2
Less: accumulated depreciation		1,021.7		981.8
Property, plant and equipment, net of accumulated depreciation	$	534.4	$	509.4

Other current liabilities:
Accrued salaries, wages and other compensation	$	128.9	$	109.0
Accrued customer programs		122.6		102.8
Other accrued expenses		137.4		105.6
Total other current liabilities	$	388.9	$	317.4

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

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



(In millions)
Accounts receivable	$	41.4
Inventories		25.4
Property, plant and equipment		29.6
Goodwill		142.3
Identifiable intangible assets		89.4
Other assets		8.9
Total assets		337.0
Other current liabilities and accruals		35.0
Net assets acquired	$	302.0

Proforma Consolidated Financial Information



(In millions)	2013		2012
Net sales	$	4,264.8	$	3,771.0
Net income attributable to Home & Security		240.8		126.6
Basic earnings per common share	$	1.45	$	0.79
Diluted earnings per common share	$	1.41	$	0.76

Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Change in Net Carrying Amount of Goodwill by Segment

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



(In millions)	Kitchen & Bath Cabinetry			Plumbing & Accessories		Advanced Material Windows & Door Systems			Security & Storage			Total Goodwill
Balance at December 31, 2011^(a)	$	491.2		$	569.7	$	230.2		$	75.5		$	1,366.6
2012 translation adjustments		0.6			—		—			0.2			0.8
Acquisition-related adjustments		—			—		(1.1	)		15.1			14.0
Balance at December 31, 2012^(a)	$	491.8		$	569.7	$	229.1		$	90.8		$	1,381.4
2013 translation adjustments		(2.4	)		—		—			(1.4	)		(3.8	)
Acquisition-related adjustments		142.3			—		—			—			142.3
Balance at December 31, 2013^(a)	$	631.7		$	569.7	$	229.1		$	89.4		$	1,519.9

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

Gross Carrying Value and Accumulated Amortization by Class of Intangible Assets

The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2013 and 2012 were as follows:


	As of December 31, 2013							As of December 31, 2012
(In millions)	Gross Carrying Amounts		Accumulated Amortization			Net Book Value		Gross Carrying Amounts		Accumulated Amortization			Net Book Value
Indefinite-lived intangible assets — tradenames	$	597.2	$	(42.0	)^(a)	$	555.2	$	603.4	$	(42.0	)^(a)	$	561.4
Amortizable intangible assets
Tradenames		19.6		(7.4	)		12.2		17.8		(6.9	)		10.9
Customer and contractual relationships		348.6		(182.5	)		166.1		274.2		(174.4	)		99.8
Patents/proprietary technology		63.2		(43.8	)		19.4		52.6		(41.1	)		11.5
Total		431.4		(233.7	)		197.7		344.6		(222.4	)		122.2
Total identifiable intangibles	$	1,028.6	$	(275.7	)	$	752.9	$	948.0	$	(264.4	)	$	683.6

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

External Debt and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2013

Components of External Long-Term Debt

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



(In millions)	2013		2012
$650 million revolving credit agreement due July 2018	$	—	$	—
$350 million term loan due July 2018		350.0		320.0
Total debt		350.0		320.0
Less: current portion		—		22.5
Total long-term debt	$	350.0	$	297.5

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-02.22)
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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Fair Values of Derivative Instruments

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2013 and 2012 were:



		Fair Value

(In millions)	Location	2013		2012
Assets:
Foreign exchange contracts	Other current assets	$	2.1	$	1.0
Commodity contracts	Other current assets		—		0.2
Net investment hedges	Other current assets		0.6		—
	Total assets	$	2.7	$	1.2
Liabilities:
Foreign exchange contracts	Other current liabilities	$	0.3	$	0.8
Commodity contracts	Other current liabilities		—		0.1
	Total liabilities	$	0.3	$	0.9

Effects of Derivative Financial Instruments on Consolidated Statements of Income

The effects of derivative financial instruments on the consolidated statements of income in 2013, 2012 and 2011 were:



(In millions)	Gain (Loss) Recognized in Income

Type of hedge	Location	2013		2012			2011
Cash flow	Net sales	$	—	$	0.2		$	(0.6	)
	Cost of products sold		2.0		0.6			2.5
Fair value	Other income (expense), net		1.2		(0.3	)		—
Total		$	3.2	$	0.5		$	1.9

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 were as follows:



	Fair Value

(In millions)	2013		2012
Assets:
Derivative asset financial instruments (level 2)	$	2.7	$	1.2
Deferred compensation program assets (level 1)		3.5		3.6
Total assets	$	6.2	$	4.8
Liabilities:
Derivative liability financial instruments (level 2)	$	0.3	$	0.9

Assets Measured at Fair Value on Nonrecurring Basis

In accordance with ASC requirements for Fair Value Measurements, below is the disclosure for assets measured at fair value on a non-recurring basis. There were no losses for indefinite-lived intangible assets in 2013.



(in millions)	2012				2011

	Fair Value Measurements Using Significant Unobservable Inputs (level 3)		Total Losses		Fair Value Measurements Using Significant Unobservable Inputs (level 3)		Total Losses
Indefinite-lived intangible assets	$	249.7	$	15.8	$	227.0	$	90.0

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2013

Common Stock and Treasury Stock Activity

The number of shares of common stock and treasury stock and the share activity for 2013 and 2012 were as follows:



	Common Shares						Treasury Shares

	2013			2012			2013		2012
Balance at the beginning of the year		163,855,647			156,008,132			700,102		3,357
Stock plan shares issued		4,516,507			8,544,260			—		—
Shares surrendered by optionees		(296,100	)		(342,498	)		296,100		342,498
Common stock repurchases		(1,408,118	)		(354,247	)		1,408,118		354,247
Balance at the end of the year		166,667,936			163,855,647			2,404,320		700,102

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Pre-Tax Stock-Based Compensation Expense

Pre-tax stock-based compensation expense was as follows:



(In millions)	2013		2012		2011
Stock option awards	$	8.3	$	12.5	$	14.1
Restricted stock units		10.8		10.0		1.6
Performance awards		6.7		3.3		—
Director awards		0.9		1.1		—
Total pre-tax expense		26.7		26.9		15.7
Tax benefit		9.7		9.7		5.3
Total after tax expense	$	17.0	$	17.2	$	10.4

Restricted Stock Units Activity



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		1,767,268		$	14.49
Granted		389,350			34.83
Vested		(730,421	)		13.85
Cancelled		(128,901	)		17.24
Non-vested at December 31, 2013		1,297,296		$	20.68

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



	Home & Security Grants						Former Parent Grants

	2013		2012		2011		2011
Current expected dividend yield		1.5%		1.5%		1.5%		2.0%
Expected volatility		32.0%		35.0%		39.0%		33.2%
Risk-free interest rate		1.1%		1.2%		1.2%		2.3%
Expected term		6.0 years		6.0 years		6.5 years		5.5 years

Stock Option Activity

A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2012		13,070,134		$	13.14
Granted		727,200			33.25
Exercised		(3,770,311	)		13.48
Expired/forfeited		(377,463	)		16.60
Outstanding at December 31, 2013		9,649,560		$	14.39

Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2013 were as follows:



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

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $11.99		2,788,572		3.0	$	9.71		2,788,572	$	9.71
12.00 to 14.00		4,590,316		6.9		13.07		2,557,659		13.21
14.01 to 40.96		2,270,672		6.5		22.82		968,430		17.69
		9,649,560		5.8	$	14.39		6,314,661	$	12.35

^(a)	At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million.

^(b)	At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million.

Summarizes Information of Performance Share Awards



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		328,100		$	19.47
Granted		210,500			34.40
Cancelled		(39,100	)		24.38
Non-vested at December 31, 2013		499,500		$	25.38

Defined Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Obligations and Funded Status



(In millions)	Pension Benefits						Postretirement Benefits

Obligations and Funded Status at December 31	2013			2012			2013			2012
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year	$	722.5		$	639.5		$	73.3		$	93.9
Service cost		11.4			12.1			0.3			0.5
Interest cost		30.1			30.7			1.7			3.9
Plan amendments		—			0.4			(34.7	)		(29.8	)
Actuarial (gain) loss		(73.0	)		66.0			(0.3	)		9.9
Participants’ contributions		—			—			0.5			0.8
Benefits paid		(28.7	)		(26.2	)		(7.0	)		(6.4	)
Medicare Part D reimbursement		—			—			0.4			0.5
Projected benefit obligation at end of year	$	662.3		$	722.5		$	34.2		$	73.3
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	$	648.5		$	703.3
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	536.8		$	477.9		$	—		$	—
Actual return on plan assets		74.6			63.7			—			—
Employer contributions		1.1			21.4			6.1			5.1
Participants’ contributions		—			—			0.5			0.8
Medicare Part D reimbursement		—			—			0.4			0.5
Benefits paid		(28.7	)		(26.2	)		(7.0	)		(6.4	)
Fair value of plan assets at end of year	$	583.8		$	536.8		$	—		$	—
Funded status (Fair value of plan assets less PBO)	$	(78.5	)	$	(185.7	)	$	(34.2	)	$	(73.3	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits						Postretirement Benefits

(In millions)	2013			2012			2013			2012
Current benefit payment liability	$	(0.8	)	$	(0.8	)	$	(3.5	)	$	(5.5	)
Accrued benefit liability		(77.7	)		(184.9	)		(30.7	)		(67.8	)
Net amount recognized	$	(78.5	)	$	(185.7	)	$	(34.2	)	$	(73.3	)

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

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



(In millions)	Pension Benefits			Postretirement Benefits
Net actuarial loss at December 31, 2011		63.5			6.0
Recognition of actuarial loss		(30.6	)		(11.6	)
Current year actuarial loss		39.3			9.9
Net actuarial loss at December 31, 2012	$	72.2		$	4.3
Recognition of actuarial gain		(0.9	)		(4.5	)
Current year actuarial gain		(105.6	)		(0.3	)
Net actuarial gain at December 31, 2013	$	(34.3	)	$	(0.5	)
Net prior service cost at December 31, 2011		0.5			1.0
Prior service cost (credit) recognition due to plan amendments		0.4			(29.8	)
Amortization		(0.3	)		2.6
Net prior service cost (credit) at December 31, 2012	$	0.6		$	(26.2	)
Prior service credit recognition due to plan amendments		—			(34.7	)
Amortization		(0.1	)		27.4
Net prior service cost (credit) at December 31, 2013	$	0.5		$	(33.5	)
Total at December 31, 2013	$	(33.8	)	$	(34.0	)

Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits

Components of net periodic benefit cost were as follows:



Components of Net Periodic Benefit Cost	Pension Benefits									Postretirement Benefits

(In millions)	2013			2012			2011			2013			2012			2011
Service cost	$	11.4		$	12.1		$	12.9		$	0.3		$	0.5		$	0.5
Interest cost		30.1			30.7			31.0			1.7			3.9			4.4
Expected return on plan assets		(41.8	)		(36.8	)		(41.3	)		—			—			—
Recognition of actuarial losses		0.8			30.6			80.0			4.4			11.6			—
Amortization of prior service cost (credits)		0.1			0.3			0.3			(27.4	)		(2.6	)		0.4
Curtailment and settlement losses		0.1			—			1.8			0.1			—			—
Net periodic benefit cost	$	0.7		$	36.9		$	84.7		$	(20.9	)	$	13.4		$	5.3

Schedule of Assumptions Used



Assumptions	Pension Benefits			Postretirement Benefits

	2013	2012	2011	2013	2012	2011
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	5.0%	4.2%		4.3%	3.7%
Rate of compensation increase	4.0%	4.0%		—	—
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.2%	4.9%	5.8%	3.7%	4.6%	5.3%
Expected long-term rate of return on plan assets	7.8%	7.8%	8.5%	—	—	—
Rate of compensation increase	4.0%	4.0%	4.0%	—	—	—

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



	Postretirement Benefits

	2013			2012
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31:
Health care cost trend rate assumed for next year		7.1/7.5	%^(a)		7.5/7.0	%^(a)
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		5.0	%
Year that the rate reaches the ultimate trend rate		2022			2017

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

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

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



(In millions)	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost	$	0.1	$	(0.1	)
Effect on postretirement benefit obligation		1.8		(2.0	)

Reconciliation of Level Three Measurements

A reconciliation of Level 3 measurements as of December 31, 2013 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate			Total
January 1, 2013	$	20.6	$	18.8	$	24.4		$	63.8
Actual return on assets related to assets still held		0.6		1.7		3.4			5.7
Purchases, sales and settlements		—		—		(5.0	)		(5.0	)
December 31, 2013	$	21.2	$	20.5	$	22.8		$	64.5

A reconciliation of Level 3 measurements as of December 31, 2012 was as follows:



			Commingled Funds

(In millions)	Group annuity/ insurance contracts		Multi-strategy hedge funds		Real estate		Total
January 1, 2012	$	20.0	$	17.5	$	21.9	$	59.4
Actual return on assets related to assets still held		0.6		1.3		2.5		4.4
December 31, 2012	$	20.6	$	18.8	$	24.4	$	63.8

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

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2013 were as follows:


(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	21.2	$	—	$	21.2
Commingled funds:
Cash and cash equivalents		8.1		8.1		—
Equity		278.6		278.6		—
Fixed income		232.6		232.6		—
Multi-strategy hedge funds		20.5		—		20.5
Real estate		22.8		—		22.8
Total	$	583.8	$	519.3	$	64.5

Pension assets by major category of plan assets and the type of fair value measurement as of December 31, 2012 were as follows:



(In millions)	Total as of balance sheet date		Level 2 – Significant other observable inputs		Level 3 – Significant unobservable inputs
Group annuity/insurance contracts	$	20.6	$	—	$	20.6
Commingled funds:
Cash and cash equivalents		6.3		6.3		—
Equity		331.5		331.5		—
Fixed income		135.2		135.2		—
Multi-strategy hedge funds		18.8		—		18.8
Real estate		24.4		—		24.4
Total	$	536.8	$	473.0	$	63.8

Schedule of Expected Benefit Payments

The following retirement benefit payments are expected to be paid:


(In millions)	Pension Benefits		Postretirement Benefits
2014	$	32.2	$	3.4
2015		34.1		3.4
2016		36.0		3.4
2017		37.5		2.8
2018		39.0		2.8
Years 2019-2023		215.0		12.7

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Loss Income Before Income Taxes and Noncontrolling Interests

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



(In millions)	2013		2012		2011
Domestic operations	$	276.9	$	95.0	$	(73.1	)
Foreign operations		68.0		59.0		29.5
Income (loss) before income taxes and noncontrolling interests	$	344.9	$	154.0	$	(43.6	)

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

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



(In millions)	2013			2012			2011
Income tax expense (benefit) computed at federal statutory income tax rate	$	120.7		$	53.9		$	(15.3	)
Other income taxes, net of federal tax benefit		8.0			3.8			(1.8	)
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(10.2	)		(7.0	)		(5.3	)
Tax effect on foreign dividends		—			12.4			10.2
Tax benefit on income attributable to domestic production activities		(5.8	)		(2.2	)		(2.6	)
Net adjustments for uncertain tax positions		2.0			(11.0	)		(9.7	)
Net effect of rate changes on deferred taxes		(3.0	)		(0.2	)		(2.9	)
Prior period items		—			(3.9	)		—
Valuation allowance increase (decrease)		2.1			(8.9	)		16.8
Miscellaneous other, net		0.2			(2.6	)		1.6
Income tax expense (benefit) as reported	$	114.0		$	34.3		$	(9.0	)
Effective income tax rate		33.1	%		22.3	%		20.6	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

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


(In millions)	2013			2012			2011
Unrecognized tax benefits — beginning of year	$	20.8		$	35.4		$	38.8
Gross additions — current year tax positions		4.4			2.8			2.3
Gross additions — prior year tax positions		0.7			0.6			7.2
Gross additions — purchase accounting adjustments		1.6			—			—
Gross reductions — prior year tax positions		(3.2	)		(13.5	)		(12.0	)
Gross reductions — settlements with taxing authorities		(0.6	)		(4.0	)		(0.4	)
Impact of change in foreign exchange rates		—			—			(0.5	)
Impact due to expiration of statutes of limitations		—			(0.5	)		—
Unrecognized tax benefits — end of year	$	23.7		$	20.8		$	35.4

Income Taxes

Income taxes in 2013, 2012 and 2011 were as follows:



(In millions)	2013			2012			2011
Current
Federal	$	102.8		$	17.6		$	26.0
Foreign		12.8			13.1			8.9
State and other		11.2			4.1			16.9
Deferred
Federal, state and other		(13.0	)		4.8			(66.8	)
Foreign		0.2			(5.3	)		6.0
Total income tax expense (benefit)	$	114.0		$	34.3		$	(9.0	)

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2013 and 2012 were as follows:



(In millions)	2013			2012
Deferred tax assets:
Compensation and benefits	$	36.8		$	32.8
Defined benefit plans		44.2			84.3
Capitalized inventories		13.1			13.8
Accounts receivable		6.8			6.9
Other accrued expenses		17.7			18.0
Net operating loss and other tax carryforwards		25.5			32.7
Valuation allowance		(20.7	)		(19.2	)
Miscellaneous		14.7			10.7
Total deferred tax assets		138.1			180.0
Deferred tax liabilities:
LIFO inventories		(12.5	)		(12.5	)
Fixed assets		(63.4	)		(69.4	)
Identifiable intangible assets		(252.9	)		(253.6	)
Miscellaneous		(8.1	)		(12.3	)
Total deferred tax liabilities		(336.9	)		(347.8	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2013 and 2012 as follows:



(In millions)	2013			2012
Other current assets	$	46.2		$	55.6
Other current liabilities		(0.6	)		(1.2	)
Other assets		1.4			1.8
Deferred income taxes		(245.8	)		(224.0	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)

Restructuring and Other Charges (Tables)

12 Months Ended

Dec. 31, 2013

Pre Tax Restructuring and Other Charges

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



	Year Ended December 31, 2013
			Other Charges^(a)
(In millions)	Restructuring Charges		Cost of Products Sold		SG&A^(b)		Total Charges
Kitchen & Bath Cabinetry	$	2.2	$	0.1	$	—	$	2.3
Plumbing & Accessories		0.6		0.6		0.2		1.4
Advanced Material Windows & Door Systems		1.4		—		—		1.4
Total	$	4.2	$	0.7	$	0.2	$	5.1

^(a)

^(b)	Selling, general and administrative expenses

2013 restructuring and other charges related to supply chain initiatives.

Pre-tax restructuring and other charges for the year ended December 31, 2012 were:



	Year Ended December 31, 2012
(In millions)	Restructuring Charges			Other Charges^(a)			Total Charges
Kitchen & Bath Cabinetry	$	4.7		$	8.9		$	13.6
Advanced Material Windows & Door Systems		0.8			(3.4	)		(2.6	)
Security & Storage		(1.0	)		—			(1.0	)
Total	$	4.5		$	5.5		$	10.0

^(a)

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



	Year Ended December 31, 2011
(In millions)	Restructuring Charges		Other Charges^(a)			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)

Commitments (Tables)

12 Months Ended

Dec. 31, 2013

Future Minimum Rental Payments under Non-Cancelable Operating Leases

Future minimum rental payments under non-cancelable operating leases as of December 31, 2013 were as follows:


(In millions)
2014	$	29.4
2015		24.0
2016		17.0
2017		8.4
2018		6.1
Remainder		4.4
Total minimum rental payments	$	89.3

The following table summarizes activity related to our product warranty liability for the years ended December 31, 2013, 2012 and 2011.



(In millions)	2013			2012			2011
Reserve balance at the beginning of the year	$	14.3		$	13.9		$	12.6
Provision for warranties issued		20.1			17.5			18.9
Settlements made (in cash or in kind)		(19.2	)		(17.1	)		(17.6	)
Reserve balance at end of year	$	15.2		$	14.3		$	13.9

Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2013

Net Sales and Operating Income by Segment

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



(In millions)	2013		2012		2011
Net sales:
Kitchen & Bath Cabinetry	$	1,642.2	$	1,326.6	$	1,256.3
Plumbing & Accessories		1,287.0		1,100.7		962.8
Advanced Material Windows & Door Systems		657.8		587.2		552.9
Security & Storage		570.4		576.6		556.6
Net sales	$	4,157.4	$	3,591.1	$	3,328.6



(In millions)	2013			2012			2011

Operating income (loss):
Kitchen & Bath Cabinetry	$	97.1		$	20.5		$	5.7
Plumbing & Accessories		228.3			169.2			138.0
Advanced Material Windows & Door Systems		14.4			(1.0	)		(101.2	)
Security & Storage		90.4			75.4			62.6
Less: Corporate expenses^(a)		(73.1	)		(102.4	)		(120.7	)
Operating income (loss)	$	357.1		$	161.7		$	(15.6	)

Total assets:
Kitchen & Bath Cabinetry	$	1,588.0		$	1,248.5		$	1,273.2
Plumbing & Accessories		1,176.3			1,081.7			1,065.0
Advanced Material Windows & Door Systems		766.1			778.2			804.2
Security & Storage		461.8			459.8			399.9
Corporate^(b)		185.9			305.7			95.6
Total assets	$	4,178.1		$	3,873.9		$	3,637.9
^(a) Below is a table detailing Corporate expenses:

Corporate expenses:
General and administrative expense^(c)	$	(78.0	)	$	(63.7	)	$	(44.1	)
Business separation costs		—			—			(2.4	)
Defined benefit plan costs		10.1			3.5			5.8
Defined benefit plan recognition of actuarial losses		(5.2	)		(42.2	)		(80.0	)
Total Corporate expenses	$	(73.1	)	$	(102.4	)	$	(120.7	)

^(b)	Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent.

^(c)	General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011.



(In millions)	2013			2012			2011
Depreciation expense:
Kitchen & Bath Cabinetry	$	29.3		$	38.8		$	38.6
Plumbing & Accessories		16.7			18.1			18.2
Advanced Material Windows & Door Systems		16.9			18.5			25.8
Security & Storage		13.0			13.3			14.0
Corporate		1.3			1.5			0.5
Depreciation expense	$	77.2		$	90.2		$	97.1

Amortization of intangible assets:
Kitchen & Bath Cabinetry	$	5.1		$	3.3		$	6.0
Advanced Material Windows & Door Systems		7.5			7.5			7.9
Security & Storage		0.6			0.3			0.5
Amortization of intangible assets	$	13.2		$	11.1		$	14.4

Capital expenditures:
Kitchen & Bath Cabinetry	$	36.4		$	27.7		$	29.1
Plumbing & Accessories		25.3			19.1			16.5
Advanced Material Windows & Door Systems		13.6			15.0			13.5
Security & Storage		18.9			13.0			9.4
Corporate		2.5			0.2			—
Capital expenditures, gross		96.7			75.0			68.5
Less: proceeds from disposition of assets		(2.2	)		(13.5	)		(3.5	)
Capital expenditures, net	$	94.5		$	61.5		$	65.0

Net sales by geographic region^(a):
United States	$	3,479.4		$	2,969.1		$	2,755.0
Canada		418.1			405.3			390.3
China and other international		259.9			216.7			183.3
Net sales	$	4,157.4		$	3,591.1		$	3,328.6

Property, plant and equipment, net:
United States	$	439.2		$	428.9		$	443.7
Mexico		55.6			37.0			39.1
Canada		29.4			32.7			32.8
China and other international		10.2			10.8			10.2
Property, plant and equipment, net	$	534.4		$	509.4		$	525.8

^(a)	Based on country of destination

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Quarterly Financial Data

(In millions, except per share amounts)



2013	1^st		2^nd		3^rd		4^th		Full Year
Net sales	$	890.0	$	1,040.4	$	1,125.1	$	1,101.9	$	4,157.4
Gross profit		300.2		377.0		384.9		376.7		1,438.8
Operating income		56.6		106.5		98.6		95.4		357.1
Net income		37.5		64.2		64.6		64.6		230.9
Net income attributable to Home & Security		37.3		64.0		64.2		64.2		229.7
Basic earnings per common share		0.23		0.39		0.39		0.39		1.39
Diluted earnings per common share		0.22		0.37		0.37		0.37		1.34



2012	1^st		2^nd		3^rd		4^th		Full Year
Net sales	$	798.8	$	935.3	$	909.1	$	947.9	$	3,591.1
Gross profit		246.8		317.4		302.3		303.5		1,170.0
Operating income		21.3		72.3		60.6		7.5		161.7
Net income		13.0		47.9		40.2		18.6		119.7
Net income attributable to Home & Security		12.5		47.8		40.0		18.4		118.7
Basic earnings per common share		0.08		0.30		0.25		0.11		0.74
Diluted earnings per common share		0.08		0.29		0.24		0.11		0.71

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Computations of Earnings Loss per Common Share

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



(In millions, except per share data)	2013		2012		2011
Net income (loss) attributable to Home & Security	$	229.7	$	118.7	$	(35.6	)
Basic earnings (loss) per common share	$	1.39	$	0.74	$	(0.23	)
Diluted earnings (loss) per common share	$	1.34	$	0.71	$	(0.23	)
Basic average shares outstanding		165.5		160.6		155.2
Diluted average shares outstanding		171.3		166.1		155.2
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.4		0.7		22.1

Other Expense (Income), Net (Tables)

12 Months Ended

Dec. 31, 2013

Components of Other Expense Income Net

The components of other expense (income), net for the years ended December 31, 2013, 2012 and 2011 were as follows:



(In millions)	2013			2012			2011
Foreign currency transaction losses	$	—		$	—		$	2.7
Asset impairment charge		6.2			—			—
Other items, net		(1.2	)		(1.0	)		(1.1	)
Total other expense (income), net	$	5.0		$	(1.0	)	$	1.6

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Reclassifications Out of Accumulated Other Comprehensive Income

The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 were as follows:



(In millions)

Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Statement of Comprehensive Income
Gains (losses) on cash flow hedges
Foreign exchange contracts	$	2.3		Cost of products sold
Commodity contract		(0.3	)	Cost of products sold

		2.0		Total before tax
		(0.7	)	Tax expense

	$	1.3		Net of tax
Defined benefit plan items
Amortization of prior service cost	$	27.3		^(a)
Recognition of actuarial losses		(5.2	)	^(a)
Curtailment and settlement losses		(0.2	)	^(a)

		21.9		Total before tax
		(8.4	)	Tax expense

	$	13.5		Net of tax


Total reclassifications for the period	$	14.8		Net of tax

^(a)	These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, “Defined Benefit Plans,” for additional information.

Components of and Changes in Accumulated Other Comprehensive Income

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



(In millions)	Foreign Currency Adjustments			Derivative Hedging Gain			Defined Benefit Plan Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2010	$	56.9		$	1.2		$	(28.6	)	$	29.5
Changes during year		(1.8	)		(0.7	)		(16.4	)		(18.9	)
Balance at December 31, 2011		55.1			0.5			(45.0	)		10.6
Changes during year		8.4			(0.3	)		11.9			20.0
Balance at December 31, 2012	$	63.5		$	0.2		$	(33.1	)	$	30.6
Amounts classified into accumulated other comprehensive income		(10.2	)		2.0			87.8			79.6
Amounts reclassified from accumulated other comprehensive income		—			(1.3	)		(13.5	)		(14.8	)
Net current period other comprehensive income		(10.2	)		0.7			74.3			64.8
Balance at December 31, 2013	$	53.3		$	0.9		$	41.2		$	95.4

Background and Basis of Presentation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions			12 Months Ended
	Jan. 03, 2012	Oct. 03, 2011	Dec. 31, 2011
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Dividend to Former Parent	$ 6.0	$ 48.9	$ 548.9
Former Parent
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Allocated general corporate expenses			$ 23.4
Home and Security
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Number of Home & Security common share Former Parent receiving for each common share		1
Dividend to Former Parent		$ 500.0

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Significant Accounting Policies [Line Items]
Highly liquid investments included in cash and cash equivalents, maturity period	3 months
Allowances for doubtful accounts	$ 6.8	$ 9.0
Inventories	471.6	357.2
Unrecognized tax benefits pertaining to uncertain tax positions	23.7	20.8	$ 35.4	$ 38.8
Reasonably possible decrease in total unrecognized tax benefits, minimum	(2.5)
Reasonably possible decrease in total unrecognized tax benefits, maximum	(3.5)
Selling, general and administrative expenses	1,043.1	976.9	900.6
Advertising costs	205.3	182.4	180.4
Research and development expenses	55.6	47.0	35.1
Estimated amount of net foreign currency derivative gains in other comprehensive income reclassified to earnings	1.3
Cash flow \| Foreign exchange contracts
Significant Accounting Policies [Line Items]
Gain (loss) reclassified from Accumulated OCI into earnings	2.3	0.6	(0.5)
Selling, General and Administrative Expenses
Significant Accounting Policies [Line Items]
Customer program costs	46.0	46.2	47.4
Shipping And Handling Expense
Significant Accounting Policies [Line Items]
Selling, general and administrative expenses	189.7	181.3	164.1
Advertising
Significant Accounting Policies [Line Items]
Selling, general and administrative expenses	148.6	132.5	130.6
Advertising costs, reduction to net sales	$ 56.7	49.9	$ 49.8
Income Approach
Significant Accounting Policies [Line Items]
Goodwill Recoverabilty Weighted Percentage	80.00%
Market Approach
Significant Accounting Policies [Line Items]
Goodwill Recoverabilty Weighted Percentage	20.00%
Metals inventories
Significant Accounting Policies [Line Items]
LIFO inventories	$ 228.8	163.6
Inventories	$ 257.5	$ 193.9

Estimated Useful Lives of Property Plant and Equipment (Detail)	12 Months Ended
	Dec. 31, 2013
Building and Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	15 years
Building and Building Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	40 years
Machinery and Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	3 years
Machinery and Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	10 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful life	7 years

Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Inventories:
Raw materials and supplies	$ 184.6	$ 144.3
Work in process	52.5	38.6
Finished products	234.5	174.3
Total inventories	471.6	357.2
Property, plant and equipment:
Land and improvements	53.8	47.6
Buildings and improvements to leaseholds	374.5	324.5
Machinery and equipment	1,066.3	1,056.3
Construction in progress	61.5	62.8
Property, plant and equipment, gross	1,556.1	1,491.2
Less: accumulated depreciation	1,021.7	981.8
Property, plant and equipment, net of accumulated depreciation	534.4	509.4	$ 525.8
Other current liabilities:
Accrued salaries, wages and other compensation	128.9	109.0
Accrued customer programs	122.6	102.8
Other accrued expenses	137.4	105.6
Total other current liabilities	$ 388.9	$ 317.4

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

1 Months Ended

3 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Sep. 30, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

^[1]

Business acquisition, cash paid

$ 1,101.9

$ 1,125.1

$ 1,040.4

$ 890.0

$ 947.9

$ 909.1

$ 935.3

$ 798.8

$ 4,157.4

^[1]

$ 3,591.1

^[1]

$ 3,328.6

$ 6.0

Purchase price adjustment, reduction in goodwill

$ 142.3

14.0

Security & Storage

Business acquisition, cash paid

$ 20.0

Purchase price adjustment, reduction in goodwill

(5.6)

$ 15.1

Increase in definite-lived intangible assets

$ 5.9

WoodCrafters Home Products, LLC

Business acquisition purchase price

$ 302.0

Percentage of ownership acquired

$ 115.0

100.00%

WoodCrafters Home Products, LLC | Customer Relationships

Identifiable intangible assets

$ 75.9

Amortizable identifiable intangible assets, estimated useful life

18 years

WoodCrafters Home Products, LLC | Technology

Identifiable intangible assets

$ 9.6

Amortizable identifiable intangible assets, estimated useful life

10 years

[1]	Based on country of destination

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

Dec. 31, 2013

Jun. 30, 2013

Dec. 31, 2012

Dec. 31, 2011

WoodCrafters Home Products, LLC

^[1]

$ 1,519.9

$ 1,381.4

$ 1,366.6

Property, plant and equipment

Accounts receivable

$ 41.4

Inventories

25.4

29.6

Identifiable intangible assets

142.3

89.4

Other assets

8.9

Total assets

337.0

Other current liabilities and accruals

35.0

Net assets acquired

$ 302.0

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

Proforma Consolidated Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Net sales	$ 4,264.8	$ 3,771.0
Net income attributable to Home & Security	$ 240.8	$ 126.6
Basic earnings per common share	$ 1.45	$ 0.79
Diluted earnings per common share	$ 1.41	$ 0.76

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

3 Months Ended

12 Months Ended

Mar. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

^[1]

$ 1,381.4

$ 1,366.6

Translation adjustments

(3.8)

0.8

142.3

14.0

^[1]

1,519.9

1,381.4

Kitchen & Bath Cabinetry

^[1]

491.8

491.2

Translation adjustments

(2.4)

0.6

142.3

^[1]

631.7

491.8

Plumbing & Accessories

^[1]

569.7

Advanced Material Windows & Door Systems

^[1]

569.7

^[1]

229.1

230.2

(1.1)

^[1]

229.1

Security & Storage

^[1]

90.8

75.5

Translation adjustments

(1.4)

0.2

$ (5.6)

15.1

Indefinite-lived Intangible Assets [Line Items]

^[1]

$ 89.4

$ 90.8

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

Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Goodwill [Line Items]
Accumulated impairment losses	$ 541.4
Advanced Material Windows & Door Systems
Goodwill [Line Items]
Accumulated impairment losses	451.3
Security & Storage
Goodwill [Line Items]
Accumulated impairment losses	$ 90.1

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

3 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2013

Amortizable identifiable intangible assets acquired

$ 86.8

Expected intangible amortization expense in 2014

$ 16.0

16.0

Expected intangible amortization expense in 2015

15.0

Expected intangible amortization expense in 2016

14.0

Expected intangible amortization expense in 2017

13.0

Expected intangible amortization expense in 2018

12.0

Indefinite-lived intangible assets impairment charges

^[1]

1,519.9

$ 1,381.4

$ 1,366.6

$ 1,519.9

$ 1,381.4

21.2

15.8

90.0

Market recovery projection period

3 years

WoodCrafters Home Products, LLC

Indefinite-lived Intangible Assets [Line Items]

Acquisition of identifiable intangible assets

$ 89.4

Minimum | Tradenames And Customer Relationship

$ 142.3

Indefinite-lived Intangible Assets [Line Items]

Amortizable identifiable intangible assets, estimated useful life

5 years

Maximum | Tradenames And Customer Relationship

Indefinite-lived Intangible Assets [Line Items]

Amortizable identifiable intangible assets, estimated useful life

30 years

Tradenames

Indefinite-lived Intangible Assets [Line Items]

Decrease in indefinite-lived tradenames

$ 6.2

Indefinite-lived tradenames

58.4

Advanced Material Windows & Door Systems

Indefinite-lived Intangible Assets [Line Items]

Advanced Material Windows & Door Systems | Tradenames

^[1]

229.1

230.2

229.1

Indefinite-lived Intangible Assets [Line Items]

Indefinite-lived intangible assets impairment charges

9.9

Advanced Material Windows & Door Systems | Tradenames | Pre Tax

Indefinite-lived Intangible Assets [Line Items]

Indefinite-lived intangible assets impairment charges

90.0

15.8

Kitchen & Bath Cabinetry

Indefinite-lived Intangible Assets [Line Items]

Kitchen & Bath Cabinetry | Tradenames

^[1]

631.7

491.8

$ 491.2

631.7

$ 491.8

Indefinite-lived Intangible Assets [Line Items]

Indefinite-lived intangible assets impairment charges

$ 5.9

Advanced Material Windows and Door Systems

Indefinite-lived Intangible Assets [Line Items]

Advanced Material Windows and Door Systems | Maximum

$ 86.1

Indefinite-lived Intangible Assets [Line Items]

Percentage of estimated excess fair value

10.00%

Advanced Material Windows and Door Systems | Tradenames | Maximum

Indefinite-lived Intangible Assets [Line Items]

Percentage of estimated excess fair value

10.00%

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

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

Dec. 31, 2013

Dec. 31, 2012

$ 1,028.6

$ 948.0

(275.7)

(264.4)

Indefinite-lived intangible assets-tradenames

752.9

683.6

597.2

603.4

^[1]

(42.0)

Amortizable intangible assets

555.2

561.4

431.4

344.6

(233.7)

(222.4)

Amortizable intangible assets | Tradenames

197.7

122.2

19.6

17.8

(7.4)

(6.9)

Amortizable intangible assets | Customer and contractual relationships

12.2

10.9

348.6

274.2

(182.5)

(174.4)

Amortizable intangible assets | Patents/proprietary technology

166.1

99.8

63.2

52.6

(43.8)

(41.1)

$ 19.4

$ 11.5

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

Asset Impairment Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Asset Impairment Charges [Line Items]
Asset impairment charge	$ 6.2	$ 21.2	$ 21.2	$ 15.8	$ 90.0

External Debt and Financing Arrangements - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 650.0	$ 650.0
Term loan	$ 350.0	350.0
Revolving credit facility, extended expiration date	2018-07
Term loan, extended expiration date	2018-07
Term loan, outstanding borrowings	$ 350.0	320.0
Credit facility, minimum Consolidated Interest Coverage Ratio	3.0
Increase Maximum Leverage Ratio	3.75
Notes payable to banks	$ 6.0	5.5
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital	$ 22.7	$ 22.7
Weighted-average interest rates on borrowings	12.30%	13.00%	14.30%
Term loan amortization payments in 2014	$ 0.0
Term loan amortization payments in 2015	17.5
Term loan amortization payments in 2016	35.0
Term loan amortization payments in 2017	35.0
Term loan amortization payments in 2018	$ 262.5
Debt To Ebitda Ratio
Debt Instrument [Line Items]
Credit facility, maximum Leverage Ratio	3.5
LIBOR \| Minimum
Debt Instrument [Line Items]
Interest rate over LIBOR	1.00%
LIBOR \| Maximum
Debt Instrument [Line Items]
Interest rate over LIBOR	2.00%

Components of External Long - Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
$650 million revolving credit agreement due July 2018
$350 million term loan due July 2018	350.0	320.0
Total debt	350.0	320.0
Less: current portion		22.5
Total long-term debt	$ 350.0	$ 297.5

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

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

Components of External Long - Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 650	$ 650
Revolving credit facility, expiration date	2018-07
Term loan	$ 350	$ 350
Term loan, expiration date	2018-07

Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Derivative [Line Items]
Foreign exchange contracts period, minimum	12 months
Foreign exchange contracts period, maximum	15 months
Notional amount of foreign currency derivative hedges	$ 182.1
Net settlement receivable	1.8
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings	1.3
Cash flow
Derivative [Line Items]
Gain (Loss) Recognized in OCI	$ 3.0	$ 0.4

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 2.7	$ 1.2
Derivative liabilities, fair value	0.3	0.9
Foreign exchange contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	2.1	1.0
Foreign exchange contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value	0.3	0.8
Commodity contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value		0.2
Commodity contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities, fair value		$ 0.1
Net investment \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 0.6

Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ 3.2	$ 0.5	$ 1.9
Cash flow \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income		0.2	(0.6)
Cash flow \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	2.0	0.6	$ 2.5
Fair value \| Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income	$ 1.2	$ (0.3)

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 6.2	$ 4.8
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset financial instruments (level 2)	2.7	1.2
Derivative liability financial instruments (level 2)	0.3	0.9
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation program assets	$ 3.5	$ 3.6

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying value	$ 350.0	$ 320.0
Pre-tax indefinite-lived intangible assets impairment charges	21.2	15.8	$ 90.0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net of current portion	$ 350.0	$ 320.0

Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Indefinite-lived intangible assets impairment charges	$ 21.2	$ 15.8	$ 90.0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Indefinite-lived intangible assets impairment charges		15.8	90.0
Fair Value, Measurements, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Indefinite-lived intangible assets		$ 249.7	$ 227.0

Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Feb. 25, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012	Jul. 25, 2012	Sep. 27, 2011
Class of Stock [Line Items]
Common stock, shares authorized		750,000,000		750,000,000		750,000,000
Common Stock, par value		$ 0.01		$ 0.01
Dividend declared, per share		$ 0.12	$ 0.10
Percentage of increase in quarterly cash dividend		20.00%
Preferred stock, shares authorized		60,000,000
Preferred stock, par value		$ 0.01
Stock repurchase program, authorized amount		$ 150.0
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 89.2
Share repurchase approval period					3 years
Share repurchase program, repurchase period end date					Jul. 25, 2015
Subsequent Event
Class of Stock [Line Items]
Stock repurchase program, authorized amount	$ 150.0
Share repurchase approval period	2 years
Share repurchase program, repurchase period end date	Feb. 25, 2016

Common Stock and Treasury Stock Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Common shares
Balance at the beginning of the year	163,855,647	156,008,132
Stock plan shares issued	4,516,507	8,544,260
Shares surrendered by optionees	(296,100)	(342,498)
Common stock repurchases	(1,408,118)	(354,247)
Balance at the end of the year	166,667,936	163,855,647
Treasury shares
Balance at the beginning of the year	700,102	3,357
Stock plan shares issued
Shares surrendered by optionees	296,100	342,498
Common stock repurchases	1,408,118	354,247
Balance at the end of the year	2,404,320	700,102

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive Plan, common stock available for issuance	8,700,000
Plan modification, additional pre-tax stock-based compensation charges			$ 2.4
Incentive Plan, options vesting period	3 years
Incentive Plan, options maturity period	10 years
Incentive Plan, weighted-average grant date fair value of stock options granted	$ 9.02	$ 5.80	$ 4.20
Unrecognized compensation cost related to unvested option	$ 9.4
Fair value of options vested	12.4	$ 10.8	$ 10.0
Intrinsic value of stock options exercised	$ 97.1	70.2	10.0
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, weighted-average recognition period	1 year 8 months 12 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost	$ 14.2
Unrecognized compensation cost, weighted-average recognition period	1 year 10 months 24 days
Fair value of restricted stock units vested	$ 26.9	$ 18.5	$ 0.0
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost	$ 11.0
Unrecognized compensation cost, weighted-average recognition period	1 year 8 months 12 days
Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards issued	24,672	52,208
Common stock issued to outside directors	$ 36.47	$ 20.46
Former Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive Plan, weighted-average grant date fair value of stock options granted			$ 16.98

Pre-Tax Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 26.1	$ 26.9	$ 15.7
Tax benefit	9.7	9.7	5.3
Total after tax expense	17.0	17.2	10.4
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	8.3	12.5	14.1
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	10.8	10.0	1.6
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	6.7	3.3
Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	0.9	1.1
Pre Tax
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 26.7	$ 26.9	$ 15.7

Restricted Stock Units Activity (Detail)	12 Months Ended
Restricted Stock Units Activity (Detail)	Dec. 31, 2013 $ / shares shares
Number of Restricted Stock Units
Non-vested at December 31, 2012 \| shares	328,100
Granted \| shares	210,500
Cancelled \| shares	(39,100)
Non-vested at December 31, 2013 \| shares	499,500
Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012 \| $ / shares	$ 19.47
Granted \| $ / shares	34.40
Cancelled \| $ / shares	24.38
Non-vested at December 31, 2013 \| $ / shares	$ 25.38
Restricted Stock Units (RSUs)
Number of Restricted Stock Units
Non-vested at December 31, 2012 \| shares	1,767,268
Granted \| shares	389,350
Vested \| shares	(730,421)
Cancelled \| shares	(128,901)
Non-vested at December 31, 2013 \| shares	1,297,296
Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012 \| $ / shares	$ 14.49
Granted \| $ / shares	34.83
Vested \| $ / shares	13.85
Cancelled \| $ / shares	17.24
Non-vested at December 31, 2013 \| $ / shares	$ 20.68

Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Home and Security
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current expected dividend yield	1.50%	1.50%	1.50%
Expected volatility	32.00%	35.00%	39.00%
Risk-free interest rate	1.10%	1.20%	1.20%
Expected term	6 years	6 years	6 years 6 months
Former Parent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Current expected dividend yield			2.00%
Expected volatility			33.20%
Risk-free interest rate			2.30%
Expected term			5 years 6 months

Stock Option Activity (Detail)	12 Months Ended
Stock Option Activity (Detail)	Dec. 31, 2013 $ / shares shares
Options
Outstanding at December 31, 2012 \| shares	13,070,134
Granted \| shares	727,200
Exercised \| shares	(3,770,311)
Expired/forfeited \| shares	(377,463)
Outstanding at December 31, 2013 \| shares	9,649,560
Weighted-Average Exercise Price
Outstanding at December 31, 2012 \| $ / shares	$ 13.14
Granted \| $ / shares	33.25
Exercised \| $ / shares	13.48
Expired/forfeited \| $ / shares	16.60
Outstanding at December 31, 2013 \| $ / shares	$ 14.39

Options Outstanding and Exercisable (Detail)

12 Months Ended

Dec. 31, 2013

$ / shares

Options Outstanding, Weighted-Average Remaining Contractual Life

9,649,560

^[1]

5 years 9 months 18 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 14.39

^[1]

Options Exercisable, Weighted-Average Exercise Price

6,314,661

^[2]

$ 12.35

^[2]

Exercise Price Range One

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

Range of Exercise Prices, Lower limit

9.00

Range of Exercise Prices, upper limit

$ 11.99

Options Outstanding, Weighted-Average Remaining Contractual Life

2,788,572

^[1]

3 years

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 9.71

^[1]

Options Exercisable, Weighted-Average Exercise Price

2,788,572

^[2]

$ 9.71

^[2]

Exercise Price Range Two

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

Range of Exercise Prices, Lower limit

12.00

Range of Exercise Prices, upper limit

$ 14.00

Options Outstanding, Weighted-Average Remaining Contractual Life

4,590,316

^[1]

6 years 10 months 24 days

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 13.07

^[1]

Options Exercisable, Weighted-Average Exercise Price

2,557,659

^[2]

$ 13.21

^[2]

Exercise Price Range Three

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

Range of Exercise Prices, Lower limit

14.01

Range of Exercise Prices, upper limit

$ 40.96

Options Outstanding, Weighted-Average Remaining Contractual Life

2,270,672

^[1]

6 years 6 months

^[1]

Options Outstanding, Weighted-Average Exercise Price

$ 22.82

^[1]

Options Exercisable, Weighted-Average Exercise Price

968,430

^[2]

$ 17.69

^[2]

[1]	At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million.
[2]	At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million.

Options Outstanding and Exercisable (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, aggregate intrinsic value	$ 302.1
Options exercisable, weighted-average remaining contractual life	4 years 6 months
Options exercisable, aggregate intrinsic value	$ 210.6

Summarizes Information of Performance Share Awards (Detail)	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at December 31, 2012 \| shares	328,100
Granted \| shares	210,500
Cancelled \| shares	(39,100)
Non-vested at December 31, 2013 \| shares	499,500
Non-vested at December 31, 2012 \| $ / shares	$ 19.47
Granted \| $ / shares	34.40
Cancelled \| $ / shares	24.38
Non-vested at December 31, 2013 \| $ / shares	$ 25.38

Defined Benefit Plans - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended		12 Months Ended
	Dec. 31, 2012 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2013 USD ($) Age	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans	$ (29.8)	$ (34.7)				$ (5.3)
Recognition of actuarial (losses) gains				$ (5.2)	$ (42.2)	(80.0)
Expected pension contributions in 2014				$ 10.0
Defined benefit plans, blended long-term rate of return on plan assets				7.40%
Defined Contribution Plan, cash contributions				$ 18.7	16.1	$ 17.8
Equity Securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, minimum				0.00%
Defined benefit asset allocation, maximum				75.00%
Fixed income
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, minimum				25.00%
Defined benefit asset allocation, maximum				100.00%
Cash and cash equivalents
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum				25.00%
Other Investment
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit asset allocation, maximum				20.00%
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans					(0.4)
Recognition of actuarial (losses) gains				$ 73.0	$ (66.0)
Defined benefit plans, reduction in liability		(20.0)
Defined benefit plans, curtailment charges			$ 1.8
Defined benefit plans, amortization of net prior service costs				$ 0.1
Defined benefit plans, blended long-term rate of return on plan assets				7.80%	7.80%	8.50%
Pension Benefits \| Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plans, retirement benefits payment commencement age \| Age				55
Pension Benefits \| Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plans, retirement benefits payment commencement age \| Age				65
Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans				$ 34.7	$ 29.8
Recognition of actuarial (losses) gains		$ (4.0)		0.3	$ (9.9)
Defined benefit plans, amortization of net prior service costs				(19.4)
Postretirement Benefits \| Scenario, Forecast In the first quarter of 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Reduction in accrued retiree benefit plans				(14.7)
Recognition of actuarial (losses) gains				0.6
Defined benefit plans, curtailment charges				3.7
Defined benefit plans, amortization of net prior service costs				$ 11.7
Postretirement Benefits \| Minimum \| Scenario, Forecast In the first quarter of 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Period of prior service credit in net income				2 years
Postretirement Benefits \| Maximum \| Scenario, Forecast In the first quarter of 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Period of prior service credit in net income				3 years

Obligations and Funded Status (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2012	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Change in the Projected Benefit Obligation (PBO):
Plan amendments	$ 29.8	$ 34.7			$ 5.3
Actuarial (gain) loss			$ 5.2	$ 42.2	80.0
Change in Plan Assets:
Fair value of plan assets at beginning of year		536.8	536.8
Fair value of plan assets at end of year	536.8		583.8	536.8
Pension Benefits
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year		722.5	722.5	639.5
Service cost			11.4	12.1
Interest cost			30.1	30.7
Plan amendments				0.4
Actuarial (gain) loss			(73.0)	66.0
Benefits paid			(28.7)	(26.2)
Projected benefit obligation at end of year	722.5		662.3	722.5	639.5
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases)	703.3		648.5	703.3
Change in Plan Assets:
Fair value of plan assets at beginning of year		536.8	536.8	477.9
Actual return on plan assets			74.6	63.7
Employer contributions			1.1	21.4
Benefits paid			(28.7)	(26.2)
Fair value of plan assets at end of year	536.8		583.8	536.8	477.9
Funded status (Fair value of plan assets less PBO)	(185.7)		(78.5)	(185.7)
Postretirement Benefits
Change in the Projected Benefit Obligation (PBO):
Projected benefit obligation at beginning of year		73.3	73.3	93.9
Service cost			0.3	0.5
Interest cost			1.7	3.9
Plan amendments			(34.7)	(29.8)
Actuarial (gain) loss		$ 4.0	(0.3)	9.9
Participants' contributions			0.5	0.8
Benefits paid			(7.0)	(6.4)
Medicare Part D reimbursement			0.4	0.5
Projected benefit obligation at end of year	73.3		34.2	73.3	$ 93.9
Change in Plan Assets:
Employer contributions			6.1	5.1
Participants' contributions			0.5	0.8
Medicare Part D reimbursement			0.4	0.5
Benefits paid			(7.0)	(6.4)
Funded status (Fair value of plan assets less PBO)	$ (73.3)		$ (34.2)	$ (73.3)

Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit liability	$ (108.5)	$ (252.7)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(0.8)	(0.8)
Accrued benefit liability	(77.7)	(184.9)
Net amount recognized	(78.5)	(185.7)
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Current benefit payment liability	(3.5)	(5.5)
Accrued benefit liability	(30.7)	(67.8)
Net amount recognized	$ (34.2)	$ (73.3)

Amounts in Accumulated Other Comprehensive Income that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2013	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss			$ 5.2	$ 42.2	$ 80.0
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss			(73.0)	66.0
Prior service cost (credit) recognition due to plan amendments		$ (1.8)
Pension Benefits \| Other Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	$ 72.2		72.2	63.5
Actuarial (gain) loss			(0.9)	(30.6)
Current year actuarial gain			(105.6)	39.3
Ending Balance		63.5	(34.3)	72.2	63.5
Beginning Balance	0.6		0.6	0.5
Prior service cost (credit) recognition due to plan amendments				0.4
Amortization			(0.1)	(0.3)
Ending Balance		0.5	0.5	0.6	0.5
Total at December 31, 2013			(33.8)
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Actuarial (gain) loss	4.0		(0.3)	9.9
Postretirement Benefits \| Other Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	4.3		4.3	6.0
Actuarial (gain) loss			(4.5)	(11.6)
Current year actuarial gain			(0.3)	9.9
Ending Balance		6.0	(0.5)	4.3	6.0
Beginning Balance	$ (26.2)		(26.2)	1.0
Prior service cost (credit) recognition due to plan amendments			(34.7)	(29.8)
Amortization			27.4	2.6
Ending Balance		$ 1.0	(33.5)	$ (26.2)	$ 1.0
Total at December 31, 2013			$ (34.0)

Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial losses		$ 5.2	$ 42.2	$ 80.0
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost		11.4	12.1
Interest cost		30.1	30.7
Recognition of actuarial losses		(73.0)	66.0
Amortization of prior service cost (credits)		0.1
Pension Benefits \| Net Periodic Benefit Cost
Defined Benefit Plan Disclosure [Line Items]
Service cost		11.4	12.1	12.9
Interest cost		30.1	30.7	31.0
Expected return on plan assets		(41.8)	(36.8)	(41.3)
Recognition of actuarial losses		0.8	30.6	80.0
Amortization of prior service cost (credits)		0.1	0.3	0.3
Curtailment and settlement losses		0.1		1.8
Net periodic benefit cost		0.7	36.9	84.7
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost		0.3	0.5
Interest cost		1.7	3.9
Recognition of actuarial losses	$ 4.0	(0.3)	9.9
Amortization of prior service cost (credits)		(19.4)
Postretirement Benefits \| Net Periodic Benefit Cost
Defined Benefit Plan Disclosure [Line Items]
Service cost		0.3	0.5	0.5
Interest cost		1.7	3.9	4.4
Recognition of actuarial losses		4.4	11.6
Amortization of prior service cost (credits)		(27.4)	(2.6)	0.4
Curtailment and settlement losses		0.1
Net periodic benefit cost		$ (20.9)	$ 13.4	$ 5.3

Schedule of Assumptions Used (Detail)	12 Months Ended
Schedule of Assumptions Used (Detail)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Expected long-term rate of return on plan assets	7.40%
Pension Benefits
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	5.00%	4.20%
Rate of compensation increase	4.00%	4.00%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	4.20%	4.90%	5.80%
Expected long-term rate of return on plan assets	7.80%	7.80%	8.50%
Rate of compensation increase	4.00%	4.00%	4.00%
Postretirement Benefits
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31:
Discount rate	4.30%	3.70%
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31:
Discount rate	3.70%	4.60%	5.30%

Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost (Detail) - Postretirement Benefits

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Defined Benefit Plan Disclosure [Line Items]

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

4.50%

5.00%

Year that the rate reaches the ultimate trend rate

2022

2017

Pre Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

7.10%

7.50%

Post Age Sixty Five

Defined Benefit Plan Disclosure [Line Items]

Health care cost trend rate assumed for next year

^[1]

7.50%

7.00%

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

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Effect on total of service and interest cost	$ 0.1
Effect on postretirement benefit obligation	1.8
Effect on total of service and interest cost	(0.1)
Effect on postretirement benefit obligation	$ (2.0)

Pension Assets by Major Category of Plan Assets and Type of Fair Value Measurement (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	$ 583.8	$ 536.8
Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	21.2	20.6
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	8.1	6.3
Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	278.6	331.5
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	232.6	135.2
Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	20.5	18.8
Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	22.8	24.4
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	519.3	473.0
Level 2 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	8.1	6.3
Level 2 \| Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	278.6	331.5
Level 2 \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	232.6	135.2
Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	64.5	63.8
Level 3 \| Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	21.2	20.6
Level 3 \| Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	20.5	18.8
Level 3 \| Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value asset measurements	$ 22.8	$ 24.4

Reconciliation of Level Three Measurements (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	$ 63.8	$ 59.4
Actual return on assets related to assets still held	5.7	4.4
Purchases, sales and settlements	(5.0)
Ending balance	64.5	63.8
Group annuity/insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	20.6	20.0
Actual return on assets related to assets still held	0.6	0.6
Ending balance	21.2	20.6
Commingled Funds \| Multi-strategy hedge funds
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	18.8	17.5
Actual return on assets related to assets still held	1.7	1.3
Ending balance	20.5	18.8
Commingled Funds \| Real estate
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	24.4	21.9
Actual return on assets related to assets still held	3.4	2.5
Purchases, sales and settlements	(5.0)
Ending balance	$ 22.8	$ 24.4

Schedule of Expected Benefit Payments (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2014	$ 32.2
2015	34.1
2016	36.0
2017	37.5
2018	39.0
Years 2019-2023	215.0
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
2014	3.4
2015	3.4
2016	3.4
2017	2.8
2018	2.8
Years 2019-2023	$ 12.7

Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Income Before Income Tax [Line Items]
Domestic operations	$ 276.9	$ 95.0	$ (73.1)
Foreign operations	68.0	59.0	29.5
Income (loss) before income taxes	$ 344.9	$ 154.0	$ (43.6)

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2011
Income Taxes [Line Items]
Reconciliation of income taxes	35.00%
Net effect of rate changes on deferred taxes	$ (3.0)	$ (0.2)	$ (2.9)
Unrecognized tax benefits that would impact effective tax rate	23.4
Reasonably possible decrease in unrecognized tax benefits, minimum	(2.5)
Reasonably possible decrease in unrecognized tax benefits, maximum	(3.5)
Unrecognized tax benefits, interest and penalty benefit recognized	0.2	1.7	$ 1.4
Unrecognized tax benefits, accrued interest and penalties	9.9	10.2
Deferred tax assets, net operating losses and other tax carryforwards	25.5	32.7
Undistributed earnings of foreign subsidiaries	156.1
Tax liability associated with remittance of certain foreign earnings		12.4		$ 9.1
Expire In Twenty Thirteen Through Twenty Nineteen
Income Taxes [Line Items]
Deferred tax assets, net operating losses and other tax carryforwards	$ 1.4	$ 1.4
Minimum
Income Taxes [Line Items]
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period	2020

Reconciliation of Income Taxes at Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reconciliation Of Income Taxes [Line Items]
Income tax expense (benefit) computed at federal statutory income tax rate	$ 120.7	$ 53.9	$ (15.3)
Other income taxes, net of federal tax benefit	8.0	3.8	(1.8)
Foreign taxes at a different rate than U.S. federal statutory income tax rate	(10.2)	(7.0)	(5.3)
Tax effect on foreign dividends		12.4	10.2
Tax benefit on income attributable to domestic production activities	(5.8)	(2.2)	(2.6)
Net adjustments for uncertain tax positions	2.0	(11.0)	(9.7)
Net effect of rate changes on deferred taxes	(3.0)	(0.2)	(2.9)
Prior period items		(3.9)
Valuation allowance increase (decrease)	2.1	(8.9)	16.8
Miscellaneous other, net	0.2	(2.6)	1.6
Income tax expense (benefit) as reported	$ 114.0	$ 34.3	$ (9.0)
Effective income tax rate	33.10%	22.30%	20.60%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Unrecognized Tax Benefits [Line Items]
Unrecognized tax benefits - beginning of year	$ 20.8	$ 35.4	$ 38.8
Gross additions - current year tax positions	4.4	2.8	2.3
Gross additions - prior year tax positions	0.7	0.6	7.2
Gross additions - purchase accounting adjustments	1.6
Gross reductions - prior year tax positions	(3.2)	(13.5)	(12.0)
Gross reductions - settlements with taxing authorities	(0.6)	(4.0)	(0.4)
Impact of change in foreign exchange rates			(0.5)
Impact due to expiration of statutes of limitations		(0.5)
Unrecognized tax benefits - end of year	$ 23.7	$ 20.8	$ 35.4

Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current
Federal	$ 102.8	$ 17.6	$ 26.0
Foreign	12.8	13.1	8.9
State and other	11.2	4.1	16.9
Deferred
Federal, state and other	(13.0)	4.8	(66.8)
Foreign	0.2	(5.3)	6.0
Income tax expense (benefit) as reported	$ 114.0	$ 34.3	$ (9.0)

Components of Net Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Net deferred tax liability
Other current assets	$ 46.2	$ 55.6
Other current liabilities	(0.6)	(1.2)
Other assets	1.4	1.8
Deferred income taxes	(245.8)	(224.0)
Net deferred tax liability	(198.8)	(167.8)
Deferred tax assets:
Compensation and benefits	36.8	32.8
Defined benefit plans	44.2	84.3
Capitalized inventories	13.1	13.8
Accounts receivable	6.8	6.9
Other accrued expenses	17.7	18.0
Net operating loss and other tax carryforwards	25.5	32.7
Valuation allowance	(20.7)	(19.2)
Miscellaneous	14.7	10.7
Total deferred tax assets	138.1	180.0
Deferred tax liabilities:
LIFO inventories	(12.5)	(12.5)
Fixed assets	(63.4)	(69.4)
Identifiable intangible assets	(252.9)	(253.6)
Miscellaneous	(8.1)	(12.3)
Total deferred tax liabilities	(336.9)	(347.8)
Net deferred tax liability	$ (198.8)	$ (167.8)

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

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

$ 4.2

$ 4.5

$ 4.7

0.7

^[1]

5.5

^[2]

15.3

^[3]

SG&A

^[1],[4]

0.2

5.1

10.0

20.0

Kitchen & Bath Cabinetry

2.2

4.7

3.7

0.1

^[1]

8.9

^[2]

9.0

^[3]

2.3

13.6

12.7

Plumbing & Accessories

0.6

0.6

^[1]

(0.1)

^[3]

SG&A

^[1],[4]

0.2

Advanced Material Windows & Door Systems

1.4

(0.1)

1.4

0.8

1.0

(3.4)

^[2]

6.4

^[3]

$ 1.4

(2.6)

$ 7.4

Security & Storage

(1.0)

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

$ (1.0)

[1]	"Other Charges" represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.
[2]	"Other Charges," which were recorded in cost of products sold in 2012, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.
[3]	"Other Charges," which were recorded in cost of products sold in 2011, represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities.
[4]	Selling, general and administrative expenses

Restructuring and Other Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Workforce reduction and exit cost						$ 2.4
Restructuring and other charges				$ 5.1	$ 10.0	20.0
Indefinite-lived intangible assets impairment charges	$ 21.2	$ 15.8	$ 90.0
Other restructuring costs				4.2	4.5	4.7
Kitchen & Bath Cabinetry
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges				2.3	13.6	12.7
Other restructuring costs				2.2	$ 4.7	3.7
Other \| Kitchen & Bath Cabinetry
Restructuring Cost and Reserve [Line Items]
Expected non-cash charges for accelerated depreciation				8.5
Pre Tax
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges						20.0
Accelerated depreciation of facilities						11.5
Other restructuring costs						3.1
Pre Tax \| Kitchen & Bath Cabinetry
Restructuring Cost and Reserve [Line Items]
Expected restructuring and related charges				12.0
Pre Tax \| Workforce reduction costs
Restructuring Cost and Reserve [Line Items]
Workforce reduction and exit cost						3.5
Pre Tax \| Workforce reduction costs \| Kitchen & Bath Cabinetry
Restructuring Cost and Reserve [Line Items]
Workforce reduction and exit cost				$ 3.2
Pre Tax \| Restructuring Charges
Restructuring Cost and Reserve [Line Items]
Indefinite-lived intangible assets impairment charges						$ 1.9

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions			3 Months Ended		12 Months Ended
	Jan. 03, 2012	Oct. 03, 2011	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Dividend to Former Parent	$ 6.0	$ 48.9			$ 548.9
Federal income tax portion to former parent				$ 3.0
Weighted-average interest rate on loans					3.40%
Related party interest expense					$ 29.3
Related party interest income					6.1
Related party interest, net					$ (23.2)
State and Local Jurisdiction
Related Party Transaction [Line Items]
Proceeds from final settlement of 2011 income tax returns			$ 1.2
Home and Security
Related Party Transaction [Line Items]
Dividend to Former Parent		$ 500.0

Business Separation Costs - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($)
Separation and Merger Transaction [Line Items]
Plan modification, additional pre-tax stock-based compensation charges	$ 2.4

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitment And Contingencies [Line Items]
Purchase obligations	$ 298.8
Purchase obligations due in one year	283.9
Operating leases, rent expense net	$ 47.9	$ 49.3	$ 35.2

Future Minimum Rental Payments under Non-Cancelable Operating Leases (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Schedule of Operating Leases [Line Items]
2014	$ 29.4
2015	24.0
2016	17.0
2017	8.4
2018	6.1
Remainder	4.4
Total minimum rental payments	$ 89.3

Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Product Warranty Liability [Line Items]
Reserve balance at the beginning of the year	$ 14.3	$ 13.9	$ 12.6
Provision for warranties issued	20.1	17.5	18.9
Settlements made (in cash or in kind)	(19.2)	(17.1)	(17.6)
Reserve balance at end of year	$ 15.2	$ 14.3	$ 13.9

Net Sales and Operating Income by Segment (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

$ 1,101.9

$ 1,125.1

$ 1,040.4

$ 890.0

$ 947.9

$ 909.1

$ 935.3

$ 798.8

$ 4,157.4

^[1]

$ 3,591.1

^[1]

$ 3,328.6

^[1]

95.4

98.6

106.5

56.6

7.5

60.6

72.3

21.3

357.1

161.7

(15.6)

4,178.1

3,873.9

4,178.1

3,873.9

3,637.9

96.7

75.0

68.5

Less: proceeds from disposition of assets

(73.1)

(102.4)

(120.7)

(2.2)

(13.5)

(3.5)

Capital expenditures, net

77.2

90.2

97.1

94.5

61.5

65.0

13.2

11.1

14.4

1,101.9

$ 1,125.1

$ 1,040.4

$ 890.0

947.9

$ 909.1

$ 935.3

$ 798.8

4,157.4

^[1]

3,591.1

^[1]

3,328.6

^[1]

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

534.4

509.4

534.4

509.4

525.8

Corporate

^[2]

(73.1)

(102.4)

(120.7)

^[3]

185.9

305.7

185.9

305.7

95.6

2.5

0.2

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

1.3

1.5

0.5

UNITED STATES

^[1]

3,479.4

2,969.1

2,755.0

^[1]

3,479.4

2,969.1

2,755.0

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

439.2

428.9

439.2

428.9

443.7

Canada

^[1]

418.1

405.3

390.3

^[1]

418.1

405.3

390.3

China and other international

29.4

32.7

29.4

32.7

32.8

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

^[1]

259.9

216.7

183.3

^[1]

259.9

216.7

183.3

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

10.2

10.8

10.2

10.8

10.2

MEXICO

General and administrative expense | Corporate

55.6

37.0

55.6

37.0

39.1

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

Business separation costs | Corporate

^[4]

(78.0)

(63.7)

(44.1)

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

Defined benefit plan costs | Corporate

(2.4)

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

Defined Benefit Plan Contributions | Corporate

10.1

3.5

5.8

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

Kitchen and Bath Cabinetry

(5.2)

(42.2)

(80.0)

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

1,588.0

1,248.5

1,588.0

1,248.5

1,273.2

36.4

27.7

29.1

29.3

38.8

38.6

Kitchen and Bath Cabinetry | Operating Segments

5.1

3.3

6.0

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

1,642.2

1,326.6

1,256.3

97.1

20.5

5.7

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

1,642.2

1,326.6

1,256.3

Plumbing and Accessories

1,176.3

1,081.7

1,176.3

1,081.7

1,065.0

25.3

19.1

16.5

Plumbing and Accessories | Operating Segments

16.7

18.1

18.2

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

1,287.0

1,100.7

962.8

228.3

169.2

138.0

Advanced Material Windows and Door Systems

1,287.0

1,100.7

962.8

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

766.1

778.2

766.1

778.2

804.2

13.6

15.0

13.5

16.9

18.5

25.8

Advanced Material Windows and Door Systems | Operating Segments

7.5

7.9

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

657.8

587.2

552.9

14.4

(1.0)

(101.2)

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

657.8

587.2

552.9

Security and Storage

$ 461.8

$ 459.8

461.8

459.8

399.9

18.9

13.0

9.4

13.0

13.3

14.0

Security and Storage | Operating Segments

0.6

0.3

0.5

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

570.4

576.6

556.6

90.4

75.4

62.6

Quarterly Financial Data [Line Items]

$ 570.4

$ 576.6

$ 556.6

[1]	Based on country of destination
[2]	Below is a table detailing Corporate expenses:
[3]	Corporate assets at December 31, 2013 and 2012 primarily consisted of cash and at December 31, 2010 predominantly consisted of short-term loans to our Former Parent.
[4]	General and administrative expense included a $23.4 million allocation of general corporate expenses incurred directly by our Former Parent in the first nine months of 2011.

Information on Business Segments - Additional Information (Detail) - Customer	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Number of customers accounted for greater than 10% of net sales	2	2	2
Net Sales \| The Home Depot, Inc.
Segment Reporting Information [Line Items]
Percentage of net sales to major customer	14.00%	13.00%	13.00%
Net Sales \| Lowe's Companies, Inc
Segment Reporting Information [Line Items]
Percentage of net sales to major customer	13.00%	13.00%	15.00%

Net Sales and Operating Income by Segment (Parenthetical) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2011 USD ($)
Former Parent
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Corporate expenses	$ 23.4

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

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

$ 1,101.9

$ 1,125.1

$ 1,040.4

$ 890.0

$ 947.9

$ 909.1

$ 935.3

$ 798.8

$ 4,157.4

^[1]

$ 3,591.1

^[1]

$ 3,328.6

^[1]

Gross profit

376.7

384.9

377.0

300.2

303.5

302.3

317.4

246.8

1,438.8

1,170.0

95.4

98.6

106.5

56.6

7.5

60.6

72.3

21.3

357.1

161.7

(15.6)

Net income attributable to Home & Security

64.6

64.2

37.5

18.6

40.2

47.9

13.0

230.9

119.7

(34.6)

$ 64.2

$ 64.0

$ 37.3

$ 18.4

$ 40.0

$ 47.8

$ 12.5

$ 229.7

$ 118.7

$ (35.6)

Basic earnings per common share

$ 0.39

$ 0.23

$ 0.11

$ 0.25

$ 0.30

$ 0.08

$ 1.39

^[2]

$ 0.74

^[2]

$ (0.23)

^[2]

Diluted earnings per common share

$ 0.37

$ 0.22

$ 0.11

$ 0.24

$ 0.29

$ 0.08

$ 1.34

^[2]

$ 0.71

^[2]

$ (0.23)

^[2]

[1]

Based on country of destination

[2]

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

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

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

Quarterly Financial Data - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended							9 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information [Line Items]
Actuarial loss									$ (5.2)	$ (42.2)	$ (80.0)
Asset impairment charges			$ 6.2					$ 21.2	21.2	$ 15.8	$ 90.0
Indefinite-lived intangible assets impairment charges	$ 21.2				$ 15.8		$ 90.0
Kitchen and Bath Cabinetry
Quarterly Financial Information [Line Items]
Indefinite-lived intangible assets impairment charges per diluted share		$ 0.08
Tradenames
Quarterly Financial Information [Line Items]
Actuarial loss per diluted share	$ 0.00	$ 0.00	$ 0.00	$ 0.02	$ 0.14	$ 0.01
Tradenames \| Advanced Material Windows & Door Systems
Quarterly Financial Information [Line Items]
Indefinite-lived intangible assets impairment charges per diluted share										$ 0.06
Indefinite-lived intangible assets impairment charges					$ 9.9
Pre Tax \| Kitchen and Bath Cabinetry
Quarterly Financial Information [Line Items]
Asset impairment charges		$ 21.2
Pre Tax \| Tradenames
Quarterly Financial Information [Line Items]
Actuarial loss	$ (0.4)	(0.3)	$ (0.7)	$ (4.6)	(38.5)	$ (3.7)			$ (5.2)	$ (42.2)
Pre Tax \| Tradenames \| Advanced Material Windows & Door Systems
Quarterly Financial Information [Line Items]
Indefinite-lived intangible assets impairment charges							$ 90.0			15.8
After Tax \| Kitchen and Bath Cabinetry
Quarterly Financial Information [Line Items]
Asset impairment charges		13.8
After Tax \| Tradenames
Quarterly Financial Information [Line Items]
Actuarial loss	$ (0.4)	$ (0.2)	$ (0.4)	$ (3.1)	$ (23.9)	$ (2.3)
After Tax \| Tradenames \| Advanced Material Windows & Door Systems
Quarterly Financial Information [Line Items]
Indefinite-lived intangible assets impairment charges										$ 9.7

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

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Net income (loss) attributable to Home & Security

$ 64.2

$ 64.0

$ 37.3

$ 18.4

$ 40.0

$ 47.8

$ 12.5

$ 229.7

$ 118.7

$ (35.6)

BASIC EARNINGS (LOSS) PER COMMON SHARE

$ 0.39

$ 0.23

$ 0.11

$ 0.25

$ 0.30

$ 0.08

$ 1.39

^[1]

$ 0.74

^[1]

$ (0.23)

^[1]

DILUTED EARNINGS (LOSS) PER COMMON SHARE

$ 0.37

$ 0.22

$ 0.11

$ 0.24

$ 0.29

$ 0.08

$ 1.34

^[1]

$ 0.71

^[1]

$ (0.23)

^[1]

Basic average shares outstanding

^[1]

165.5

160.6

155.2

Diluted average shares outstanding

^[1]

171.3

166.1

155.2

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

0.4

0.7

22.1

[1]

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

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

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

Earnings Per Share - Additional Information (Detail)	Sep. 27, 2011 shares
Earnings Per Share Disclosure [Line Items]
Common stock, shares issued and outstanding	155,052,629

Components of Other Expense Income Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency transaction losses			$ 2.7
Asset impairment charge	$ 6.2
Other items, net	(1.2)	$ (1.0)	(1.1)
Total other expense (income), net	$ 5.0	$ (1.0)	$ 1.6

Other Expense, Net - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Components of Other Income (Expense) [Line Items]
Impairment charge	$ 6,200,000	$ 21,200,000	$ 21,200,000	$ 15,800,000	$ 90,000,000
Carrying value of the investment	$ 0

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

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Amortization of prior service cost

$ (27.3)

$ (2.3)

$ 0.7

(2,718.6)

(2,421.1)

(2,332.1)

(114.0)

(34.3)

9.0

Reclassification out of Accumulated Other Comprehensive Income

$ 64.6

$ 64.2

$ 37.5

$ 18.6

$ 40.2

$ 47.9

$ 13.0

230.9

$ 119.7

$ (34.6)

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

Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain

14.8

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

Income (loss) before income taxes

2.0

(0.7)

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

1.3

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

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

2.3

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

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

(0.3)

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

Amortization of prior service cost

^[1]

27.3

Recognition of actuarial losses

^[1]

(5.2)

Curtailment and settlement losses

^[1]

(0.2)

Income (loss) before income taxes

21.9

(8.4)

$ 13.5

[1]	These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 12, "Defined Benefit Plans," for additional information.

Components of and Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 30.6	$ 10.6	$ 29.5
Amounts classified into accumulated other comprehensive income	79.6
Amounts reclassified from accumulated other comprehensive income	(14.8)
Changes during year	64.8	20.0	(18.9)
Ending Balance	95.4	30.6	10.6
Foreign Currency Adjustments
Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	63.5	55.1	56.9
Amounts classified into accumulated other comprehensive income	(10.2)
Changes during year	(10.2)	8.4	(1.8)
Ending Balance	53.3	63.5	55.1
Derivative Hedging Gain
Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	0.2	0.5	1.2
Amounts classified into accumulated other comprehensive income	2.0
Amounts reclassified from accumulated other comprehensive income	(1.3)
Changes during year	0.7	(0.3)	(0.7)
Ending Balance	0.9	0.2	0.5
Defined Benefit Plan Adjustments
Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(33.1)	(45.0)	(28.6)
Amounts classified into accumulated other comprehensive income	87.8
Amounts reclassified from accumulated other comprehensive income	(13.5)
Changes during year	74.3	11.9	(16.4)
Ending Balance	$ 41.2	$ (33.1)	$ (45.0)

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