Segment Data

9 Months Ended

Aug. 02, 2024

Segment Reporting [Abstract]

Segment Data

3 Segment Data

The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment determination is based on the manner in which the company's chief operating decision maker ("CODM") organizes segments for making operating and investment decisions and assessing performance. In the third quarter of fiscal 2024, the company modified the level at which information was being reviewed, including modification to the reporting packages and materials regularly reviewed by the CODM to evaluate the company’s operating results to assess performance and allocate resources. As a result, the company has identified nine operating segments which are aggregated into two reportable segments: Professional and Residential. There was no impact to results at the reportable segment level as the changes comprised of combining certain operating segments within the Professional reportable segment. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's remaining activities are presented as "Other" due to their insignificance. The company's Other activities consist of the company's wholly-owned domestic distribution company, the company's corporate activities, and the elimination of intersegment revenues and expenses.

The following tables present summarized financial information concerning the company’s reportable business segments and Other activities (dollars in millions):

Three Months Ended August 2, 2024	Professional		Residential		Other		Total
Net sales	$	880.9	$	267.5	$	8.5	$	1,156.9
Intersegment gross sales (eliminations)	17.2		0.1		(17.3)		—
Earnings (loss) before income taxes	$	165.7	$	32.6	$	(54.1)	$	144.2
Nine Months Ended August 2, 2024	Professional		Residential		Other		Total
Net sales	$	2,643.0	$	843.2	$	21.6	$	3,507.8
Intersegment gross sales (eliminations)	39.0		0.2		(39.2)		—
Earnings (loss) before income taxes	469.2		92.2		(157.9)		403.5
Total assets	$	2,714.6	$	576.9	$	439.9	$	3,731.4

Three Months Ended August 4, 2023	Professional		Residential		Other		Total
Net sales	$	896.3	$	175.3	$	10.2	$	1,081.8
Intersegment gross sales (eliminations)	11.7		—		(11.7)		—
Earnings (loss) before income taxes1	$	13.0	$	3.8	$	(45.4)	$	(28.6)
Nine Months Ended August 4, 2023	Professional		Residential		Other		Total
Net sales	$	2,845.7	$	705.8	$	18.5	$	3,570.0
Intersegment gross sales (eliminations)	35.5		0.1		(35.6)		—
Earnings (loss) before income taxes1	384.6		64.4		(135.4)		313.6
Total assets	$	2,723.1	$	537.9	$	324.9	$	3,585.9

1 The Professional reportable segment earnings (loss) before income taxes includes $151.3 million of non-cash impairment charges recorded during the preparation of the financial statements for the third quarter of fiscal 2023 related to the Intimidator operating segment. For additional information regarding the impairment charges, refer to Note 5, Goodwill and Other Intangible Assets, Net.

The following table presents the details of operating loss before income taxes for the company's Other activities:

	Three Months Ended				Nine Months Ended
(Dollars in millions)	August 2, 2024		August 4, 2023		August 2, 2024		August 4, 2023
Corporate expenses	$	(44.5)	$	(34.0)	$	(135.1)	$	(110.7)
Interest expense	(14.5)		(15.0)		(47.4)		(43.8)
Earnings from the company's wholly-owned domestic distribution company and other income, net	4.9		3.6		24.6		19.1
Total operating loss	$	(54.1)	$	(45.4)	$	(157.9)	$	(135.4)