Published:
Fortune Brands Reports Third Quarter Results
DEERFIELD, Ill. - (BUSINESS WIRE) - Fortune Brands, Inc. (NYSE: FO), the company behind leading consumer
brands including Jim Beam, Titleist and Moen, today reported results for
the third quarter of 2009. Net sales for the third quarter were $1.72
billion, down 11%, reflecting flat sales for the company's spirits
business, and more moderate revenue decreases for the golf and home
products brands. Diluted earnings per share were $0.82, and excluding
one-time items, diluted EPS before charges/gains was $0.77.
Given its third-quarter performance and signs of stabilization in the
U.S. new-home construction market, the company raised the bottom end of
its full-year earnings target range. The company is now targeting to
deliver EPS before charges/gains for 2009 of $2.10-2.30 versus its
previous target of $2.00-2.30.
"Despite the challenges of the global economy and the overall U.S.
housing market, Fortune Brands continued to deliver results and
operating margins at the forefront of our categories," said Bruce
Carbonari, chairman and chief executive officer of Fortune Brands. "Each
of our businesses performed at or above our expectations in the quarter.
"Consumers are clearly remaining cautious, but our innovative
new-product programs, trusted brands and compelling value propositions
are helping us compete successfully in the marketplace," Carbonari
continued. "In the third quarter, we also remained focused on our
successful initiatives to reduce cost structures, improve global supply
chains and enhance our cash position. These initiatives are benefiting
Fortune Brands and helping position the company for future growth.
"Spirits sales were flat in the quarter, benefiting from higher sales of
Jim Beam bourbon and Canadian Club whisky, the Cruzan acquisition, and
strong growth in emerging markets, offset by soft results in other
international markets," Carbonari added. The company's spirits revenues
also benefited from previously disclosed required accounting for the
company's route-to-market initiatives, largely offset by unfavorable
foreign exchange. "Amidst signs the U.S. housing downturn is
decelerating, our share-gain initiatives across product categories
helped sales in our home products business decline at a more moderate
pace than in the prior two quarters. And in golf, we outperformed the
industry with successful new products and double-digit constant-currency
sales gains in Europe and Korea that partly offset a double-digit
decrease in the United States," said Carbonari. Notable new products
contributing to the company's results included the first full quarter of
Red Stag by Jim Beam, eco-friendly Moen faucets, energy-efficient
Simonton windows, innovative Master Lock products, the new Titleist Pro
V1 family of golf balls, and the Titleist 909 series of drivers,
fairways and hybrid clubs.
Operating income in the spirits business reflected the impact of
previously disclosed costs associated with the company's route-to-market
initiatives. In both the home products and golf segments, operating
income reflected adverse operating leverage, tempered by the impact of
lower cost structures in these businesses.
For the third quarter of 2009:
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Net income was $124.1 million, or $0.82 per diluted share, compared to
$2.21 per diluted share in the year-ago quarter.
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Comparisons were adversely impacted by a net gain, including
discontinued operations, of $1.10 per diluted share in the
year-ago quarter that more than offset a net gain of $0.05 per
share in the current period.
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Excluding one-time items in both the current and prior-year periods,
diluted EPS before charges/gains was $0.77 compared to $1.11 in the
year-ago quarter.
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Foreign exchange adversely impacted EPS by $0.07 per share.
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Net sales were $1.72 billion, down 11%.
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On a comparable basis - excluding excise taxes, foreign exchange,
acquisitions/divestitures, and the impact of required accounting
related to spirits route-to-market initiatives - total net sales
would have remained down 11%.
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Comparable net sales by business unit were: spirits down 4%; golf
down 7%; home & hardware down 17%.
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Operating income was $204.5 million.
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Operating income before charges/gains was $212.6 million.
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Return on equity before charges/gains was 7%.
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Return on invested capital before charges/gains was 5%.
Raising Low End of Earnings Target &
Reaffirming Free Cash Flow Target
"Looking to the balance of 2009, we now believe EPS before charges/gains
will be in the range of $2.10-2.30 for 2009, as compared to our previous
target of $2.00-2.30," Carbonari continued. "While we are encouraged by
the continued stability of our spirits business and signs of
stabilization in new-home construction, we anticipate that consumers
will remain cautious in the months ahead, and that the overall home
products market - particularly for big-ticket remodeling purchases -
will continue to be challenging into 2010. In addition, our fourth
quarter results will also reflect the impact of adverse operating
leverage in the seasonally small quarter for golf and home products, as
well as a double-digit year-over-year boost in brand investment behind
key spirits brands."
The company also reaffirmed its 2009 target to generate free cash flow
in the range of $400 million after dividends and net capital
expenditures. Benefiting from factors including its free-cash-flow
initiatives and bond issuance in June, the company is now in an undrawn
position on its existing revolving credit facility and remains in a
strong liquidity position.
About Fortune Brands
Fortune Brands, Inc. is a leading consumer brands company. Its operating
companies have premier brands and leading market positions in distilled
spirits, home and hardware, and golf products. Beam Global Spirits &
Wine, Inc. is the company's premium spirits business. Major spirits
brands include Jim Beam and Maker's Mark bourbon, Sauza tequila,
Canadian Club whisky, Courvoisier cognac, Cruzan rum, Teacher's and
Laphroaig Scotch, EFFEN vodka and DeKuyper cordials. Home and hardware
brands include Moen faucets, Aristokraft, Omega, Diamond and Kitchen
Craft cabinetry, Therma-Tru door systems, Simonton windows, Master Lock
security products and Waterloo storage and organization products sold by
units of Fortune Brands Home & Hardware LLC. Acushnet Company's golf
brands include Titleist, Cobra and FootJoy. Fortune Brands,
headquartered in Deerfield, Illinois, is traded on the New York Stock
Exchange under the ticker symbol FO and is included in the S&P 500 Index
and the MSCI World Index.
To receive company news releases by e-mail, please visit www.fortunebrands.com.
Forward-Looking Statements
This press release contains statements relating to future results, which
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Readers are cautioned that
these forward-looking statements speak only as of the date hereof, and
the company does not assume any obligation to update, amend or clarify
them to reflect events, new information or circumstances occurring after
the date of this release. Actual results may differ materially from
those projected as a result of certain risks and uncertainties,
including but not limited to: general economic conditions, including the
U.S. housing and remodeling market; competitive market pressures
(including pricing pressures); customer defaults and related bad debt
expense; consolidation of trade customers; successful development of new
products and processes; ability to secure and maintain rights to
intellectual property; risks pertaining to strategic acquisitions and
joint ventures, including the potential financial effects and
performance of such acquisitions or joint ventures, and integration of
acquisitions and the related confirmation or remediation of internal
controls over financial reporting; changes related to the company's
spirits business organization, including its U.S. and international
distribution structure; ability to attract and retain qualified
personnel; weather; risks associated with doing business outside the
United States, including currency exchange rate risks; commodity and
energy price volatility; costs of certain employee and retiree benefits
and returns on pension assets; dependence on performance of distributors
and other marketing arrangements; the impact of excise tax increases on
distilled spirits; changes in golf equipment regulatory standards and
other regulatory developments; potential liabilities, costs and
uncertainties of litigation; impairment in the carrying value of
goodwill or other acquired intangibles; historical consolidated
financial statements that may not be indicative of future conditions and
results; interest rate fluctuations; volatility of financial and credit
markets, which could affect access to capital for the company, its
customers and consumers; any possible downgrades of the company's credit
ratings; as well as other risks and uncertainties detailed from time to
time in the company's Securities and Exchange Commission filings.
Use of Non-GAAP Financial Information
This press release includes measures not derived in accordance with
generally accepted accounting principles ("GAAP" ), such as diluted
earnings per share before charges/gains, operating income before
charges/gains, comparable net sales, return on equity before
charges/gains, return on invested capital before charges/gains, and free
cash flow. These measures should not be considered in isolation or as a
substitute for any measure derived in accordance with GAAP, and may also
be inconsistent with similar measures presented by other companies.
Reconciliation of these measures to the most closely comparable GAAP
measures, and reasons for the company's use of these measures, are
presented in the attached pages.
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FORTUNE BRANDS, INC.
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CONSOLIDATED STATEMENT OF INCOME
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(In millions, except per share amounts)
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(Unaudited)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2009
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2008
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% Change
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2009
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2008
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% Change
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Net Sales
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$
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1,717.9
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$
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1,921.8
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(10.6
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$
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4,897.6
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$
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5,823.3
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(15.9
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Cost of goods sold
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892.7
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1,005.4
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(11.2
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2,569.6
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3,080.2
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(16.6
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Excise taxes on spirits
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125.3
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122.5
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2.3
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350.0
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346.3
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1.1
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Advertising, selling, general
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and administrative expenses
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478.8
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488.8
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(2.0
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1,415.6
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1,506.8
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(6.1
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Amortization of intangibles
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8.5
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12.4
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(31.5
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25.2
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37.3
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(32.4
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Asset impairment charges
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-
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-
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-
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-
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324.3
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(100.0
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Restructuring
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and restructuring-related items
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8.1
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37.9
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(78.6
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79.3
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62.4
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27.1
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Operating Income
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204.5
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254.8
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(19.7
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457.9
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466.0
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(1.7
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Interest expense
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55.1
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60.4
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(8.8
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161.0
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179.2
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(10.2
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Other (income) expense, net
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(6.9
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(285.1
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(97.6
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7.2
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(271.0
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102.7
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Income from Continuing Operations
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before income taxes
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156.3
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479.5
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(67.4
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289.7
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557.8
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(48.1
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Income tax expense
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31.1
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171.4
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(81.9
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55.0
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185.4
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(70.3
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Income from Continuing Operations, net of tax
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$
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125.2
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$
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308.1
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(59.4
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$
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234.7
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$
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372.4
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(37.0
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Income from Discontinued Operations, net of tax
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-
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30.2
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(100.0
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-
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152.5
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(100.0
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Net Income
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$
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125.2
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$
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338.3
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(63.0
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$
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234.7
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$
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524.9
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(55.3
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Less: Net Loss/(Income) attributable to noncontrolling interests
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1.1
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2.4
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(54.2
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3.4
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(67.5
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105.0
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Net Income attributable to Fortune Brands
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$
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124.1
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$
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335.9
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(63.1
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$
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231.3
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$
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592.4
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(61.0
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Amounts attributable to Fortune Brands
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common shareholders:
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Income from continuing operations, net of tax
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$
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124.1
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$
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305.7
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(59.4
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$
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231.3
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$
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439.9
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(47.4
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Discontinued operations, net of tax
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-
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30.2
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(100.0
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-
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152.5
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(100.0
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Net income
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$
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124.1
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$
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335.9
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(63.1
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$
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231.3
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$
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592.4
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(61.0
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Earnings Per Common Share, Basic:
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Income from continuing operations attributable to
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Fortune Brands common shareholders
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$
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0.82
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$
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2.04
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(59.8
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$
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1.54
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$
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2.89
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(46.7
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Income from discontinued operations attributable to
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Fortune Brands common shareholders
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-
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0.20
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(100.0
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-
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1.00
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(100.0
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Net Income attributable to Fortune Brands
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common shareholders
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$
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0.82
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$
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2.24
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(63.4
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)
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$
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1.54
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$
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3.89
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(60.4
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Earnings Per Common Share, Diluted:
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Income from continuing operations attributable to
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|
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Fortune Brands common shareholders
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$
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0.82
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$
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2.01
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(59.2
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)
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$
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1.53
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$
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2.85
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(46.3
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)
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Income from discontinued operations attributable to
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Fortune Brands common shareholders
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|
-
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0.20
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(100.0
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-
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0.98
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(100.0
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Net Income attributable to Fortune Brands
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common shareholders
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$
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0.82
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$
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2.21
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(62.9
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)
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$
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1.53
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$
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3.83
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(60.1
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)
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Avg. Common Shares Outstanding
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Basic
|
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|
150.3
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|
|
150.0
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|
0.2
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|
|
|
|
|
150.2
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|
|
152.3
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|
|
(1.4
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)
|
|
|
Diluted
|
|
|
152.0
|
|
|
|
151.9
|
|
|
0.1
|
|
|
|
|
|
151.7
|
|
|
154.5
|
|
|
(1.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
150.3
|
|
|
149.9
|
|
|
0.3
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
152.0
|
|
|
151.7
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS, INC.
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES AND OPERATING INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2009
|
|
2008
|
|
% Change
|
|
|
|
2009
|
|
2008
|
|
% Change
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
|
$
|
636.9
|
|
|
$
|
636.3
|
|
|
|
0.1
|
|
|
|
|
$
|
1,723.2
|
|
|
$
|
1,759.5
|
|
|
(2.1
|
)
|
|
|
Home and Hardware
|
|
|
802.4
|
|
|
|
977.6
|
|
|
|
(17.9
|
)
|
|
|
|
|
2,183.0
|
|
|
|
2,907.1
|
|
|
(24.9
|
)
|
|
|
Golf
|
|
|
278.6
|
|
|
|
307.9
|
|
|
|
(9.5
|
)
|
|
|
|
|
991.4
|
|
|
|
1,156.7
|
|
|
(14.3
|
)
|
|
|
Total Net Sales
|
|
$
|
1,717.9
|
|
|
$
|
1,921.8
|
|
|
|
(10.6
|
)
|
|
|
|
$
|
4,897.6
|
|
|
$
|
5,823.3
|
|
|
(15.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
|
$
|
145.4
|
|
|
$
|
150.4
|
|
|
|
(3.3
|
)
|
|
|
|
$
|
414.3
|
|
|
$
|
417.6
|
|
|
(0.8
|
)
|
|
|
Home and Hardware
|
|
|
70.8
|
|
|
|
95.9
|
|
|
|
(26.2
|
)
|
|
|
|
|
51.9
|
|
|
|
(45.9
|
)
|
|
213.1
|
|
|
|
Golf
|
|
|
9.7
|
|
|
|
24.0
|
|
|
|
(59.6
|
)
|
|
|
|
|
62.3
|
|
|
|
143.6
|
|
|
(56.6
|
)
|
|
|
Corporate expenses
|
|
|
(21.4
|
)
|
|
|
(15.5
|
)
|
|
|
(38.1
|
)
|
|
|
|
|
(70.6
|
)
|
|
|
(49.3
|
)
|
|
(43.2
|
)
|
|
|
Total Operating Income
|
|
$
|
204.5
|
|
|
$
|
254.8
|
|
|
|
(19.7
|
)
|
|
|
|
$
|
457.9
|
|
|
$
|
466.0
|
|
|
(1.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Before Charges/Gains (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
|
$
|
149.2
|
|
|
$
|
172.4
|
|
|
|
(13.5
|
)
|
|
|
|
$
|
421.7
|
|
|
$
|
451.6
|
|
|
(6.6
|
)
|
|
|
Home and Hardware
|
|
|
74.7
|
|
|
|
111.8
|
|
|
|
(33.2
|
)
|
|
|
|
|
95.5
|
|
|
|
306.8
|
|
|
(68.9
|
)
|
|
|
Golf
|
|
|
10.1
|
|
|
|
24.0
|
|
|
|
(57.9
|
)
|
|
|
|
|
86.9
|
|
|
|
143.6
|
|
|
(39.5
|
)
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses
|
|
|
(21.4
|
)
|
|
|
(15.5
|
)
|
|
|
(38.1
|
)
|
|
|
|
|
(66.9
|
)
|
|
|
(49.3
|
)
|
|
(35.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Before Charges/Gains
|
|
|
212.6
|
|
|
|
292.7
|
|
|
|
(27.4
|
)
|
|
|
|
|
537.2
|
|
|
|
852.7
|
|
|
(37.0
|
)
|
|
|
Restructuring and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
restructuring-related items
|
|
|
(8.1
|
)
|
|
|
(37.9
|
)
|
|
|
78.6
|
|
|
|
|
|
(79.3
|
)
|
|
|
(62.4
|
)
|
|
(27.1
|
)
|
|
|
Asset impairment charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
(324.3
|
)
|
|
(100.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
204.5
|
|
|
$
|
254.8
|
|
|
|
(19.7
|
)
|
|
|
|
$
|
457.9
|
|
|
$
|
466.0
|
|
|
(1.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating Income Before Charges/Gains is Operating Income
derived in accordance with GAAP excluding restructuring,
restructuring-related items and other one-time items. Operating
Income Before Charges/Gains is a measure not derived in accordance
with GAAP. Management uses this measure to determine the returns
generated by our operating segments and to evaluate and identify
cost reduction initiatives. Management believes this measure
provides investors with helpful supplemental information regarding
the performance of the company from year-to-year. This measure may
be inconsistent with similar measures presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
2009 Full Year
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Targeted Range
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (b)
|
|
$
|
326.3
|
|
|
$
|
482.7
|
|
|
$
|
414.0
|
|
$
|
370.5
|
|
|
$
|
375 - 425
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations - Sale of Wine Business
|
|
|
-
|
|
|
|
17.0
|
|
|
|
-
|
|
|
(31.0
|
)
|
|
|
-
|
|
|
|
|
|
Net Capital Expenditures
|
|
|
27.4
|
|
|
|
29.8
|
|
|
|
76.8
|
|
|
94.9
|
|
|
|
180
|
|
|
|
|
|
Dividends Paid
|
|
|
28.6
|
|
|
|
66.1
|
|
|
|
123.5
|
|
|
195.1
|
|
|
152*
|
|
|
|
|
Cash Flow From Operations
|
|
$
|
382.3
|
|
|
$
|
595.6
|
|
|
$
|
614.3
|
|
$
|
629.5
|
|
|
$
|
707 - 757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Free Cash Flow is Cash Flow from Operations less net capital
expenditures and dividends paid to stockholders. It additionally
excludes credits and payments of taxes on the discontinued operation
sale of the wine business. Free Cash Flow is a measure not derived
in accordance with GAAP. Management believes that Free Cash Flow
provides investors with helpful supplemental information about the
company's ability to fund internal growth, make acquisitions, repay
debt and repurchase common stock. This measure may be inconsistent
with similar measures presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Assumes current dividend rate and basic shares outstanding on
September 30, 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS BEFORE CHARGES/GAINS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from Continuing Operations Before Charges/Gains is Net Income
from Continuing Operations calculated on a per-share basis excluding
restructuring, restructuring-related and other one-time items.
|
|
|
|
|
|
For the third quarter of 2009, EPS from Continuing Operations Before
Charges/Gains is Net Income from Continuing Operations calculated on
a per-share basis excluding $8.1 million ($5.4 million after tax or
$0.03 per diluted share) of restructuring and restructuring-related
items and a gain of $12.5 million ($0.08 per diluted share) related
to a dividend distribution from our Maxxium investment.
|
|
|
|
|
|
For the nine month period ended September 30, 2009, EPS from
Continuing Operations Before Charges/Gains is Net Income from
Continuing Operations calculated on a per-share basis excluding
$79.3 million ($49.8 million after tax or $0.32 per diluted share)
of restructuring and restructuring-related items and a gain of $12.5
million ($0.08 per diluted share) related to a dividend distribution
from our Maxxium investment.
|
|
|
|
|
|
For the third quarter of 2008, EPS from Continuing Operations Before
Charges/Gains is Net Income from Continuing Operations calculated on
a per-share basis excluding $37.9 million ($24.6 million after tax
or $0.16 per diluted share) of restructuring and
restructuring-related items, the write down of the Maxxium
international spirits distribution joint venture investment of $25.4
million ($0.17 per diluted share), a gain on the termination of the
Future Brands U.S. spirits distribution joint venture of $228.8
million ($142.7 million after tax or $0.94 per diluted share), and
an accelerated Future Brands deferred gain of $72.0 million ($44.9
million after tax or $0.29 per diluted share).
|
|
|
|
|
|
For the nine month period ended September 30, 2008, EPS from
Continuing Operations Before Charges/Gains is Net Income from
Continuing Operations calculated on a per-share basis excluding
$62.4 million ($40.8 million after tax or $0.27 per diluted share)
of restructuring and restructuring-related items, asset impairment
charges of $324.3 million ($310.7 million after tax or $2.01 per
diluted share), tax-related credits of $98.2 million ($0.64 per
diluted share), the write down of the Maxxium international
spirits distribution joint venture investment of $50.5 million
($0.33 per diluted share), an after-tax gain resulting from the
repurchase of the Beam Global minority interest of $81.5 million
($0.53 per diluted share), a gain on the termination of the Future
Brands U.S. spirits distribution joint venture of $228.8 million
($142.7 million after tax or $0.92 per diluted share), an
accelerated Future Brands deferred gain of $72.0 million ($44.9
million after tax or $0.29 per diluted share), and V&S auction
process costs of $8.2 million ($5.2 million after tax or $0.03 per
diluted share).
|
|
|
|
|
|
EPS from Continuing Operations Before Charges/Gains is a measure not
derived in accordance with GAAP. Management uses this measure to
evaluate the overall performance of the company and believes this
measure provides investors with helpful supplemental information
regarding the underlying performance of the company from
year-to-year. This measure may be inconsistent with similar measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2009
|
|
2008
|
|
% Change
|
|
|
|
2009
|
|
2008
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before Charges/Gains
|
|
0.78
|
|
|
1.12
|
|
|
(30.4
|
)
|
|
|
|
1.79
|
|
|
3.15
|
|
|
(43.2
|
)
|
|
|
Maxxium distribution gain
|
|
0.08
|
|
|
-
|
|
|
-
|
|
|
|
|
0.08
|
|
|
-
|
|
|
-
|
|
|
|
V&S auction process costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(0.03
|
)
|
|
-
|
|
|
|
Maxxium investment write-down
|
|
-
|
|
|
(0.17
|
)
|
|
-
|
|
|
|
|
-
|
|
|
(0.33
|
)
|
|
-
|
|
|
|
Accelerated Future Brands Deferred Gain
|
|
-
|
|
|
0.30
|
|
|
-
|
|
|
|
|
-
|
|
|
0.29
|
|
|
-
|
|
|
|
Gain on Future Brands termination
|
|
-
|
|
|
0.95
|
|
|
-
|
|
|
|
|
-
|
|
|
0.94
|
|
|
-
|
|
|
|
Tax-related credits
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
0.64
|
|
|
-
|
|
|
|
Asset impairment charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(2.04
|
)
|
|
-
|
|
|
|
Beam Global minority interest repurchase
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
0.54
|
|
|
-
|
|
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and restructuring-related items
|
|
(0.04
|
)
|
|
(0.16
|
)
|
|
75.0
|
|
|
|
|
(0.33
|
)
|
|
(0.27
|
)
|
|
(22.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
0.82
|
|
|
2.04
|
|
|
(59.8
|
)
|
|
|
|
1.54
|
|
|
2.89
|
|
|
(46.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations
|
|
-
|
|
|
0.20
|
|
|
(100.0
|
)
|
|
|
|
-
|
|
|
1.00
|
|
|
(100.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
0.82
|
|
|
2.24
|
|
|
(63.4
|
)
|
|
|
|
1.54
|
|
|
3.89
|
|
|
(60.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before Charges/Gains
|
|
0.77
|
|
|
1.11
|
|
|
(30.6
|
)
|
|
|
|
1.77
|
|
|
3.11
|
|
|
(43.1
|
)
|
|
|
Maxxium distribution gain
|
|
0.08
|
|
|
-
|
|
|
-
|
|
|
|
|
0.08
|
|
|
-
|
|
|
-
|
|
|
|
V&S auction process costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(0.03
|
)
|
|
-
|
|
|
|
Maxxium investment write-down
|
|
-
|
|
|
(0.17
|
)
|
|
-
|
|
|
|
|
-
|
|
|
(0.33
|
)
|
|
-
|
|
|
|
Accelerated Future Brands Deferred Gain
|
|
-
|
|
|
0.29
|
|
|
-
|
|
|
|
|
-
|
|
|
0.29
|
|
|
-
|
|
|
|
Gain on Future Brands termination
|
|
-
|
|
|
0.94
|
|
|
-
|
|
|
|
|
-
|
|
|
0.92
|
|
|
-
|
|
|
|
Tax-related credits
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
0.64
|
|
|
-
|
|
|
|
Asset impairment charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(2.01
|
)
|
|
-
|
|
|
|
Beam Global minority interest repurchase
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
0.53
|
|
|
-
|
|
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and restructuring-related items
|
|
(0.03
|
)
|
|
(0.16
|
)
|
|
81.3
|
|
|
|
|
(0.32
|
)
|
|
(0.27
|
)
|
|
(18.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Income from Continuing Operations
|
|
0.82
|
|
|
2.01
|
|
|
(59.2
|
)
|
|
|
|
1.53
|
|
|
2.85
|
|
|
(46.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations
|
|
-
|
|
|
0.20
|
|
|
(100.0
|
)
|
|
|
|
-
|
|
|
0.98
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
0.82
|
|
|
2.21
|
|
|
(62.9
|
)
|
|
|
|
1.53
|
|
|
3.83
|
|
|
(60.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM DISCONTINUED
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations in the three months and nine
months ended September 30, 2008 consists primarily of income tax
benefits related to a capital loss carry forward position associated
with the disposal of our U.S. Wine business.
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
RESTRUCTURING-RELATED ITEMS
|
|
|
|
|
The company recorded pre-tax restructuring and restructuring-related
items of $8.1 million ($5.4 million after tax or $0.03 per diluted
share) in the three-month period ended September 30, 2009. For
Spirits, these charges relate to previously announced business
repositioning including supply chain activities and route to market
initiatives. For Home and Hardware, the charges relate to supply
chain realignment, and capacity and cost reduction initiatives. For
Golf, the charges relate to cost reduction initiatives and supply
chain realignment.
|
|
|
|
|
|
The company recorded pre-tax restructuring and restructuring-related
items of $79.3 million ($49.8 million after tax or $0.32 per diluted
share) in the nine-month period ended September 30, 2009. For
Spirits, these charges relate to previously announced business
repositioning including supply chain activities and route to market
initiatives. For Home and Hardware, the charges relate to supply
chain realignment, capacity and cost reduction initiatives and exit
of a select low return product offering. For Golf, the charges
relate to cost reduction initiatives and supply chain realignment.
For Corporate, the charges relate to the disposal of corporate fixed
assets.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2009
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
Restructuring-Related Items
|
|
|
|
|
Restructuring
|
Cost of Sales Charges
|
SG & A Charges
|
Total
|
|
|
Spirits
|
$
|
0.6
|
$
|
-
|
|
$
|
3.2
|
$
|
3.8
|
|
|
Home and Hardware
|
|
0.8
|
|
0.9
|
|
|
2.2
|
|
3.9
|
|
|
Golf
|
|
0.1
|
|
(0.2
|
)
|
|
0.5
|
|
0.4
|
|
|
Total
|
$
|
1.5
|
$
|
0.7
|
|
$
|
5.9
|
$
|
8.1
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
|
2.7
|
|
|
Net charge
|
|
|
|
$
|
5.4
|
|
|
Charge per common share
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.04
|
|
|
Diluted
|
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2009
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
Restructuring-Related Items
|
|
|
|
|
Restructuring
|
Cost of Sales Charges
|
SG & A Charges
|
Total
|
|
|
Spirits
|
$
|
4.9
|
$
|
0.6
|
|
$
|
1.9
|
$
|
7.4
|
|
|
Home and Hardware
|
|
16.8
|
|
23.6
|
|
|
3.2
|
|
43.6
|
|
|
Golf
|
|
21.8
|
|
1.3
|
|
|
1.5
|
|
24.6
|
|
|
Corporate
|
$
|
3.7
|
$
|
-
|
|
$
|
-
|
$
|
3.7
|
|
|
Total
|
$
|
47.2
|
$
|
25.5
|
|
$
|
6.6
|
$
|
79.3
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
|
29.5
|
|
|
Net charge
|
|
|
|
$
|
49.8
|
|
|
Charge per common share
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.33
|
|
|
Diluted
|
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF FULL YEAR 2009
EARNINGS TARGET TO GAAP
|
|
|
|
|
For the full year, the company is currently targeting diluted EPS
Before Charges/Gains from continuing operations to be in the range
of $2.10 to $2.30 per share. On a GAAP basis, the company is
currently targeting diluted EPS from continuing operations to be in
the range of $1.60 to $1.80 per share.
|
|
|
EPS Before Charges/Gains from continuing operations is Net Income
calculated on a per-share basis excluding restructuring,
restructuring-related and other one-time items.
|
|
|
EPS Before Charges/Gains from continuing operations is a measure not
derived in accordance with GAAP. Management uses this measure to
evaluate the overall performance of the company and believes this
measure provides investors with helpful supplemental information
regarding the underlying performance of the company from
year-to-year. This measure may be inconsistent with similar measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
260.1
|
|
|
|
$
|
175.5
|
|
|
Accounts receivable, net
|
|
|
969.0
|
|
|
|
|
1,060.8
|
|
|
Inventories
|
|
|
2,024.2
|
|
|
|
|
2,091.0
|
|
|
Other current assets
|
|
|
445.6
|
|
|
|
|
426.1
|
|
|
Total current assets
|
|
|
3,698.9
|
|
|
|
|
3,753.4
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
1,463.5
|
|
|
|
|
1,613.5
|
|
|
Intangibles resulting from
|
|
|
|
|
|
|
|
|
business acquisitions, net
|
|
|
6,867.3
|
|
|
|
|
7,656.1
|
|
|
Other assets
|
|
|
302.0
|
|
|
|
|
316.9
|
|
|
Total assets
|
|
$
|
12,331.7
|
|
|
|
$
|
13,339.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
36.4
|
|
|
|
$
|
889.1
|
|
|
Current portion of long-term debt
|
|
|
11.7
|
|
|
|
|
425.9
|
|
|
Other current liabilities
|
|
|
1,340.1
|
|
|
|
|
1,259.0
|
|
|
Total current liabilities
|
|
|
1,388.2
|
|
|
|
|
2,574.0
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
4,428.4
|
|
|
|
|
3,484.6
|
|
|
Other long-term liabilities
|
|
|
1,430.0
|
|
|
|
|
1,612.3
|
|
|
Total liabilities
|
|
|
7,246.6
|
|
|
|
|
7,670.9
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
5,071.0
|
|
|
|
|
5,654.1
|
|
|
Noncontrolling interests
|
|
|
14.1
|
|
|
|
|
14.9
|
|
|
Total equity
|
|
|
5,085.1
|
|
|
|
|
5,669.0
|
|
|
Total liabilities and equity
|
|
$
|
12,331.7
|
|
|
|
$
|
13,339.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS, INC.
|
|
Reconciliation of Income Statement - GAAP to Before Charges/Gains
|
|
September 2009 - Third Quarter
|
|
$ - millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
Tax credit/
|
|
|
|
Gain on
|
|
Accelerated
|
|
Maxxium
|
|
Before
|
|
|
|
|
and related
|
|
Discontinued
|
|
Maxxium
|
|
Future Brands
|
|
Future Brands
|
|
Distribution
|
|
charges/
|
|
|
GAAP
|
|
expenses
|
|
operations
|
|
write-down
|
|
termination
|
|
deferred gain
|
|
Gain
|
|
gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
1,717.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,717.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
893.4
|
|
|
(0.7
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
892.7
|
|
|
Excise taxes
|
125.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
125.3
|
|
|
Advertising and SG&A
|
484.7
|
|
|
(5.9
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
478.8
|
|
|
Amortization of intangibles
|
8.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8.5
|
|
|
Restructuring expenses
|
1.5
|
|
|
(1.5
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
204.5
|
|
|
8.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
212.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
55.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
55.1
|
|
|
Other expense/(income), net
|
(6.9
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12.5
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
156.3
|
|
|
8.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
31.1
|
|
|
2.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
33.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
125.2
|
|
|
5.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
118.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
125.2
|
|
|
5.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
118.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net Loss attributable
|
|
|
|
|
to noncontrolling interests
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Fortune Brands
|
124.1
|
|
|
5.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
117.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
152.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
152.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from Continuing Operations
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
1,921.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,921.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
1,006.5
|
|
|
(1.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,005.4
|
|
|
Excise taxes
|
122.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
122.5
|
|
|
Advertising and SG&A
|
494.6
|
|
|
(5.8
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
488.8
|
|
|
Amortization of intangibles
|
12.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12.4
|
|
|
Restructuring expenses
|
31.0
|
|
|
(31.0
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
254.8
|
|
|
37.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
292.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
60.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
60.4
|
|
|
Other expense/(income), net
|
(285.1
|
)
|
|
-
|
|
|
-
|
|
|
(25.4
|
)
|
|
228.8
|
|
|
72.0
|
|
|
-
|
|
|
(9.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before taxes
|
479.5
|
|
|
37.9
|
|
|
-
|
|
|
25.4
|
|
|
(228.8
|
)
|
|
(72.0
|
)
|
|
|
|
242.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)/expense
|
171.4
|
|
|
13.3
|
|
|
-
|
|
|
-
|
|
|
(86.1
|
)
|
|
(27.1
|
)
|
|
-
|
|
|
71.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) from Continuing Operations
|
308.1
|
|
|
24.6
|
|
|
-
|
|
|
25.4
|
|
|
(142.7
|
)
|
|
(44.9
|
)
|
|
-
|
|
|
170.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations
|
30.2
|
|
|
-
|
|
|
(30.2
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
338.3
|
|
|
24.6
|
|
|
(30.2
|
)
|
|
25.4
|
|
|
(142.7
|
)
|
|
(44.9
|
)
|
|
-
|
|
|
170.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (Income)/Loss attributable
|
|
|
|
|
to noncontrolling interests
|
2.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Fortune Brands
|
335.9
|
|
|
24.6
|
|
|
(30.2
|
)
|
|
25.4
|
|
|
(142.7
|
)
|
|
(44.9
|
)
|
|
-
|
|
|
168.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from Continuing Operations
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTUNE BRANDS, INC.
|
|
Reconciliation of Income Statement - GAAP to Before Charges/Gains
|
|
September 2009 - Year to Date
|
|
$ - millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
|
|
Accelerated
|
|
|
|
|
|
|
|
|
Restructuring
|
|
Asset
|
|
Tax credit/
|
|
|
|
Minority
|
|
Future
|
|
Future
|
|
V&S
|
|
Maxxium
|
|
Before
|
|
|
|
|
and related
|
|
impairment
|
|
Discontinued
|
|
Maxxium
|
|
interest
|
|
Brands
|
|
Brands
|
|
acquisition
|
|
Distribution
|
|
charges/
|
|
|
GAAP
|
|
expenses
|
|
charges
|
|
operations
|
|
write-down
|
|
write-down
|
|
termination
|
|
deferred gain
|
|
costs
|
|
Gain
|
|
gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO DATE
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
4,897.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,897.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
2,595.1
|
|
|
(25.5
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,569.6
|
|
|
Excise taxes
|
350.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
350.0
|
|
|
Advertising and SG&A
|
1,422.2
|
|
|
(6.6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,415.6
|
|
|
Amortization of intangibles
|
25.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25.2
|
|
|
Restructuring expenses
|
47.2
|
|
|
(47.2
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
457.9
|
|
|
79.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
537.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
161.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
161.0
|
|
|
Other expense, net
|
7.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12.5
|
|
|
19.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
289.7
|
|
|
79.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
356.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
55.0
|
|
|
29.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
84.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
234.7
|
|
|
49.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
272.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
234.7
|
|
|
49.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
272.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net Loss attributable
|
|
|
|
|
|
|
|
|
to noncontrolling interests
|
3.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable
|
|
|
|
|
|
|
|
|
to Fortune Brands
|
231.3
|
|
|
49.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(12.5
|
)
|
|
268.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
151.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from Continuing Operations
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
5,823.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,823.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
3,083.9
|
|
|
(3.7
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,080.2
|
|
|
Excise taxes
|
346.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
346.3
|
|
|
Advertising and SG&A
|
1,524.4
|
|
|
(17.6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,506.8
|
|
|
Amortization of intangibles
|
|
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