v3.25.2
Information on Business Segments
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Information on Business Segments

14. Information on Business Segments

The Company’s operations are structured into three segments, Water, Outdoors and Security. These segments are strategic business units with differing products and services.

The chief operating decision maker (“CODM”), our Chief Executive Officer, uses operating income to evaluate the performance of our segments and to make resource allocation decisions. Segment operating income excludes unallocated corporate costs. Operating income is the primary measure of segment profitability used in internal management reporting to the CODM. This measure is used to view operating trends, perform analytical comparisons and benchmark performance between periods, and to evaluate historical and forecasted financial performance as well as performance relative to our competitors. The monthly and quarterly results provided to the CODM include the net sales and operating income or loss of the consolidated Company and each segment. These financial results are reviewed against budget and the prior year in evaluating the performance of the segment. The CODM is also regularly provided qualitative and quantitative metrics to establish an understanding of drivers to the overall performance. The metrics provided include information at a functional level for the Company's operations and supply chain in addition to each segment. These metrics also include service and quality ratings, brand awareness, market performance and outlook, working capital efficiency, operational plant efficiency, commodity pricing, capital spending and an overview of transformation initiatives.

The significant expense categories and amounts shown below align with the segment level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts below. Other operating expenses principally consist of cost of sales and selling, general and administrative expenses, which are not provided to the CODM in managing performance of the operating segments.

The Water segment manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals, predominantly under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek, Schaub and SpringWell brands. The Outdoors segment includes fiberglass and steel entry door systems under the Therma-Tru brand name, storm, screen and security doors under the Larson brand name, composite decking and railing under the Fiberon brand name, urethane millwork under the Fypon brand name and wide-opening exterior door systems and outdoor enclosures under the Solar Innovations brand. The Security segment includes locks, safety and security devices, connected and mechanical lock out tag out solutions and electronic security products under the Master Lock, American Lock, Yale and August brands, and fire-resistant safes, security containers and commercial cabinets under the SentrySafe brand. Corporate expenses consist primarily of headquarters administrative expenses.

 

Net sales and operating income for the twenty-six weeks ended June 28, 2025 and June 29, 2024 by segment were as follows:

 

(In millions)

 

Water

 

 

Outdoors

 

 

Security

 

 

Twenty-Six Weeks Ended June 28, 2025

 

Net sales

 

$

1,212.3

 

 

$

683.6

 

 

$

340.6

 

 

$

2,236.5

 

Depreciation

 

 

26.0

 

 

 

31.7

 

 

 

6.3

 

 

 

64.0

 

Amortization of intangibles

 

 

20.0

 

 

 

15.0

 

 

 

2.0

 

 

 

37.0

 

Other segment items (1)

 

 

907.0

 

 

 

572.2

 

 

 

293.6

 

 

 

1,772.8

 

Unallocated expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

94.1

 

Total operating income

 

$

259.3

 

 

$

64.7

 

 

$

38.7

 

 

$

268.6

 

(1) Other segment items recognized during the twenty-six weeks ended June 28, 2025 include cost of sales and selling, general, and administrative expenses.

 

(In millions)

 

Water

 

 

Outdoors

 

 

Security

 

 

Twenty-Six Weeks Ended June 29, 2024

 

Net sales

 

$

1,284.9

 

 

$

704.4

 

 

$

360.2

 

 

$

2,349.5

 

Depreciation

 

 

19.5

 

 

 

31.6

 

 

 

13.2

 

 

 

64.3

 

Amortization of intangibles

 

 

19.5

 

 

 

15.0

 

 

 

1.6

 

 

 

36.1

 

Other segment items (1)

 

 

953.7

 

 

 

571.8

 

 

 

291.9

 

 

 

1,817.4

 

Unallocated expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

77.2

 

Total operating income

 

$

292.2

 

 

$

86.0

 

 

$

53.5

 

 

$

354.5

 

(1) Other segment items recognized during the twenty-six weeks ended June 29, 2024 include cost of sales and selling, general, and administrative expenses.

Net sales and operating income for the thirteen weeks ended June 28, 2025 and June 29, 2024 by segment were as follows:

 

(In millions)

 

Water

 

 

Outdoors

 

 

Security

 

 

Thirteen Weeks Ended June 28, 2025

 

Net sales

 

$

646.9

 

 

$

378.8

 

 

$

177.6

 

 

$

1,203.3

 

Depreciation

 

 

13.4

 

 

 

15.5

 

 

 

2.4

 

 

 

31.3

 

Amortization of intangibles

 

 

10.1

 

 

 

7.5

 

 

 

1.4

 

 

 

19.0

 

Other segment items (1)

 

 

467.4

 

 

 

313.7

 

 

 

151.1

 

 

 

932.2

 

Unallocated expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49.2

 

Total operating income

 

$

156.0

 

 

$

42.1

 

 

$

22.7

 

 

$

171.6

 

(1) Other segment items recognized during the thirteen weeks ended June 28, 2025 include cost of sales and selling, general, and administrative expenses.

 

(In millions)

 

Water

 

 

Outdoors

 

 

Security

 

 

Thirteen Weeks Ended June 29, 2024

 

Net sales

 

$

659.6

 

 

$

389.4

 

 

$

191.0

 

 

$

1,240.0

 

Depreciation

 

 

11.6

 

 

 

21.2

 

 

 

3.8

 

 

 

36.6

 

Amortization of intangibles

 

 

10.0

 

 

 

7.5

 

 

 

0.8

 

 

 

18.3

 

Other segment items (1)

 

 

487.1

 

 

 

308.9

 

 

 

152.0

 

 

 

948.0

 

Unallocated expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

38.0

 

Total operating income

 

$

150.9

 

 

$

51.8

 

 

$

34.4

 

 

$

199.1

 

(1) Other segment items recognized during the thirteen weeks ended June 29, 2024 include cost of sales and selling, general, and administrative expenses.