Fortune brands delivers solid profit results while executing transformational actions amidst a challenging environment
Deerfield, ill.--(business wire)--fortune brands innovations, inc. (nyse: fbin or “fortune brands” or the “company”), an industry-leading home, security and commercial building products company, today announced fourth quarter and full-year 2022 results. “our teams delivered impressive fourth quarter and full year results in the face of a challenging environment while executing several transformative initiatives,” said fortune brands chief executive officer nicholas fink. “these initiatives should enable us to deliver our long-term targets and will also help us navigate the short-term challenges we expect to face in 2023. our fourth quarter margin results demonstrate that we can protect margins even in a declining market. we head into 2023 well-prepared and will remain laser focused on delivering above-market sales results, preserving margin and generating cash. i am confident in the long-term potential of this company and the team’s ability to deliver – regardless of the environment.” fourth quarter 2022 fbin results from continuing operations for the fourth quarter of 2022, fbin sales were $1.1 billion, a decrease of 7 percent over the fourth quarter of 2021. operating income was $182.2 million, compared to $195.4 million in the prior-year quarter, a decrease of 7 percent. operating income before charges / gains was $196.1 million versus $197.2 million in 2021. operating margin was 16.1 percent, compared to 16.0 percent in the fourth quarter of 2021. operating margin before charges / gains was 17.3 percent, compared to 16.2 percent in the fourth quarter of 2021, an improvement of 110 basis points. for each fbin segment in the fourth quarter of 2022, compared to the prior-year quarter: water innovations sales decreased 9 percent, primarily due to continued inventory destocking, covid-impacts to sales in china and declining sales volumes. excluding the impact of the extra fiscal week and fx, net sales decreased around 11 percent. operating margin before charges / gains was 24.0 percent, driven by cost controls and price realization. outdoors & security sales decreased 5 percent, driven by channel destocking and a return to regular seasonality across the segment. excluding the impact of the extra fiscal week and fx, sales declined 7 percent. operating margin before charges / gains was 14.8 percent, driven by cost controls and price realization. full year 2022 fbin results from continuing operations for the full year 2022, fbin sales were $4.7 billion, a decrease of 2 percent from 2021, and a decrease of 2 percent when excluding the impact of the 53rd week and fx. operating income was $774.3 million, compared to $811.2 million in the prior year, a decrease of 5 percent. operating income before charges / gains was $809.7 million, compared to $829.2 million during the previous year, down 2 percent. operating margin was 16.4 percent, compared to 16.9 percent in 2021. operating margin before charges / gains was 17.1 percent, down 20 basis points over full year 2021. “our teams delivered solid 2022 results in a challenging environment. our fourth quarter sales results reflect the sudden demand change we experienced following 400 basis points of fed rate increases from may through december. this unusual pace of rate increases abruptly changed housing affordability and channel partner inventory plans, impacting our second half sales growth. additionally, it created inefficiencies that we expect to impact first quarter 2023 margins. however, our teams have reacted decisively to alter our cost structure, production planning and our inventory in a manner that we expect will protect margins and improve cash generation in 2023,” said fortune brands chief financial officer patrick hallinan. “we remain highly focused on driving outperformance, including above-market growth, margin preservation and enhancement and cash generation in 2023 and over the long term.” balance sheet and liquidity at the end of the year, net debt was $2.0 billion and net debt to ebitda from continuing operations before charges / gains was 2.1x. the company had $643 million in cash and $1,250 million of availability under its revolving credit facility. during the fourth quarter, the company used a portion of the proceeds from the dividend from the cabinets spin-off to pay down all outstanding variable rate debt. during the fourth quarter, the company repurchased approximately $39 million in common stock and for the full year, repurchased approximately $580 million in common stock. annual outlook based on the company’s assumption of a total global market decline of 6.5 percent to 8.5 percent, with the u.s. housing market also declining 6.5 percent to 8.5 percent, the company expects full-year 2023 sales to be down 5 percent to 7 percent with operating margins between 16 percent and 17 percent, implying decremental operating leverage of between 25 percent and 30 percent. the company expects eps before charges / gains to be in the range of $3.60 to $3.80. for 2023, the company expects to generate free cash flow of approximately $475 million, with a cash conversion rate of around 100 percent. reflecting further on the future of fortune brands innovations, fink stated: “we successfully executed a spin-off of our cabinets business, unlocking greater shareholder value for both companies by allowing us to focus on and invest in our unique growth opportunities. we rebranded our entire company, with our new identity reflecting our evolution as a business focused on driving accelerated growth in our categories through brand and innovation. to better enable this focus and to make our business more efficient, we reorganized the company from a decentralized structure with separate businesses to an aligned operating model that prioritizes activities that are core to brand, innovation and channel. additionally, we placed our global supply chain resources under a unified leadership team to fully leverage the scale and execution excellence across our total business. these transformative changes will enable us to deliver on the long-term targets we set forth during our investor day and will also help us navigate the short-term challenges we expect to face in 2023.” conference call details today at 5:00 p.m. et, fortune brands will host an investor conference call to discuss results. a live internet audio webcast of the conference call will be available on the fortune brands website at ir.fbin.com/upcoming-events. it is recommended that listeners log on at least 10 minutes prior to the start of the call. a recorded replay of the call will be made available on the company’s website shortly after the call has ended. about fortune brands innovations fortune brands innovations, inc. (nyse: fbin), headquartered in deerfield, ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. the company’s growing portfolio of brands includes moen, house of rohl, aqualisa, therma-tru, larson, fiberon, master lock and sentrysafe. to learn more about fbin, its brands and environmental, social and governance (esg) commitments, visit www.fbin.com. cautionary statement concerning forward-looking statements this press release contains certain “forward-looking statements” made within the meaning of the private securities litigation reform act of 1995. forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: general business strategies, market potential, anticipated future financial performance, the potential of our brands, the housing market and other matters. statements preceded by, followed by or that otherwise include the words “believes”, “positioned”, “expects”, “estimates”, “plans”, “look to”, “outlook”, “intend”, and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including, but not limited to: the expected benefits and costs of the cabinets business spin-off transaction; the tax-free nature of the cabinets business spin-off; general business and economic conditions; our reliance on the north american repair and remodel and new home construction activity levels; our reliance on key customers and suppliers; our ability to maintain our strong brands and to develop innovative products while maintaining our competitive positions; our ability to improve organizational productivity and global supply chain efficiency; our ability to obtain raw materials and finished goods in a timely and cost-effective manner; the impact of sustained inflation, including global commodity and energy availability and price volatility; the impact of trade-related tariffs and risks with uncertain trade environments or changes in government and industry regulatory standards; our ability to attract and retain qualified personnel and other labor constraints; the uncertainties relating to the impact of covid-19 on the company’s business and results; our ability to achieve the anticipated benefits of our strategic initiatives; our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire; and the other factors discussed in our securities filings, including in item 1a of our annual report on form 10-k for the year ended december 31, 2021, filed with the securities and exchange commission. the forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release. 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 from continuing operations before charges / gains, operating income from continuing operations before charges / gains, operating margin from continuing operations before charges / gains, ebitda from continuing operations before charges / gains, net debt, net debt to ebitda from continuing operations before charges / gains, free cash flow, and sales excluding the impact of the 53rd week and fx. these non-gaap 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. reconciliations of these measures to the applicable most closely comparable gaap measures, and reasons for the company’s use of these measures, are presented in the attached pages. 2022 2021 2022 2021 $ 641.5 $ 703.6 (9 ) $ 2,570.1 $ 2,761.2 (7 ) 490.4 514.4 (5 ) 2,152.9 2,039.9 6 $ 1,131.9 $ 1,218.0 (7 ) $ 4,723.0 $ 4,801.1 (2 ) $ 708.8 $ 744.8 (5 ) $ 3,199.7 $ 2,855.0 12 75.7 - nm 75.7 - nm $ 784.5 $ 744.8 5 $ 3,275.4 $ 2,855.0 15 $ 1,916.4 $ 1,962.8 (2 ) $ 7,998.4 $ 7,656.1 4 2022 2021 2022 2021 $ 154.2 $ 146.6 5 $ 151.8 $ 146.5 4 72.8 81.8 (11 ) 66.3 80.1 (17 ) (30.9 ) (31.2 ) (1 ) (35.9 ) (31.2 ) 15 $ 196.1 $ 197.2 (1 ) $ 182.2 $ 195.4 (7 ) $ 1.07 $ 0.96 11 $ 0.99 $ 0.93 6 $ 0.49 $ 0.36 38 $ (0.14 ) $ 0.36 (139 ) $ 1.56 $ 1.32 18 $ 0.85 $ 1.29 (34 ) $ 236.0 $ 232.2 2 $ 128.2 $ 127.5 1 2022 2021 2022 2021 $ 622.8 $ 632.7 (2 ) $ 614.6 $ 629.7 (2 ) 311.6 305.0 2 289.6 291.9 (1 ) (124.7 ) (108.5 ) 15 (129.9 ) (110.4 ) 18 $ 809.7 $ 829.2 (2 ) $ 774.3 $ 811.2 (5 ) $ 4.24 $ 4.16 2 $ 4.11 $ 4.01 2 $ 2.08 $ 1.57 32 $ 1.12 $ 1.53 (27 ) $ 6.32 $ 5.73 10 $ 5.23 $ 5.53 (6 ) $ 951.5 $ 961.3 (1 ) $ 539.9 $ 559.7 (4 ) 2022 2021 $ 642.5 $ 425.6 521.9 580.4 1,021.3 889.5 274.8 135.0 - 714.0 2,460.5 2,744.5 783.7 670.8 1,640.6 1,538.9 1,000.7 968.1 235.3 235.3 - 1,778.6 $ 6,120.8 $ 7,936.2 $ 599.2 $ 400.0 421.6 561.0 526.4 646.4 - 363.7 1,547.2 1,971.1 2,074.2 2,309.8 136.9 78.5 278.1 359.9 - 152.2 4,036.4 4,871.5 2,084.4 3,064.7 2,084.4 3,064.7 $ 6,120.8 $ 7,936.2 2022 2021 $ 686.7 $ 772.4 191.6 189.1 (1.2 ) 0.8 45.2 42.5 14.8 1.7 - 5.0 46.4 - 57.3 55.4 (474.5 ) (378.2 ) $ 566.3 $ 688.7 $ (246.1 ) $ (214.2 ) 8.2 1.9 (214.1 ) 5.2 $ (452.0 ) $ (207.1 ) $ (37.1 ) $ 135.0 1.1 41.8 (580.1 ) (447.7 ) (145.6 ) (143.0 ) 940.0 - (56.3 ) - (49.5 ) (14.7 ) $ 72.5 $ (428.6 ) $ (14.6 ) $ (1.9 ) $ 172.2 $ 51.1 476.1 425.0 $ 648.3 $ 476.1 2022 2021 $ 329.5 $ 518.2 $ 475.0 246.1 214.2 250.0 - 300.0 8.2 1.9 - 1.1 41.8 - $ 566.3 $ 688.7 $ 725.0 - 775.0 2022 2021 2022 2021 $ 1,131.9 $ 1,218.0 (7 ) $ 4,723.0 $ 4,801.1 (2 ) 659.6 722.1 (9 ) 2,790.1 2,840.6 (2 ) 267.3 288.7 (7 ) 1,077.9 1,093.8 (1 ) 12.6 11.1 14 48.3 46.3 4 10.2 0.7 100 32.4 9.2 252 182.2 195.4 (7 ) 774.3 811.2 (5 ) 33.8 21.1 60 119.2 84.3 41 (7.0 ) (0.2 ) 100 (12.0 ) 0.5 100 155.4 174.5 (11 ) 667.1 726.4 (8 ) 27.2 47.0 (42 ) 127.2 166.7 (24 ) $ 128.2 $ 127.5 1 $ 539.9 $ 559.7 (4 ) (18.3 ) 47.7 (138 ) 146.8 212.7 (31 ) $ 109.9 $ 175.2 (37 ) $ 686.7 $ 772.4 (11 ) $ 109.9 $ 175.2 (37 ) $ 686.7 $ 772.4 (11 ) $ 0.99 $ 0.93 6 $ 4.11 $ 4.01 2 $ (0.14 ) $ 0.35 (141 ) $ 1.12 $ 1.52 (27 ) $ 0.85 $ 1.28 (34 ) $ 5.23 $ 5.53 (6 ) 129.0 137.3 (6 ) 131.3 139.5 (6 ) 2022 2021 2022 2021 $ 236.0 $ 232.2 2 $ 951.5 $ 961.3 (1 ) $ (21.9 ) $ (21.7 ) 1 $ (82.7 ) $ (78.7 ) 5 (12.6 ) (11.1 ) 14 (48.3 ) (46.3 ) 4 (13.9 ) (4.0 ) 248 (35.4 ) (20.2 ) 75 (33.8 ) (21.1 ) 60 (119.2 ) (84.3 ) 41 - - - - (4.5 ) (100 ) 1.6 0.2 700 1.2 (0.9 ) (233 ) (27.2 ) (47.0 ) (42 ) (127.2 ) (166.7 ) (24 ) $ 128.2 $ 127.5 1 $ 539.9 $ 559.7 (4 ) $ 599.2 2,074.2 2,673.4 642.5 $ 2,030.9 $ 951.5 2.1 2022 2021 2022 2021 $ 1.07 $ 0.96 11 $ 4.24 $ 4.16 2 (0.09 ) (0.03 ) 200 (0.20 ) (0.13 ) 54 - - - - (0.02 ) (100 ) 0.01 - nm 0.01 - nm - - - 0.06 - nm $ 0.99 $ 0.93 6 $ 4.11 $ 4.01 2 $ 1.07 $ 0.96 11 $ 4.24 $ 4.16 2 0.48 0.36 33 2.07 1.57 32 $ 1.55 $ 1.32 17 $ 6.31 $ 5.73 (12 ) 0.01 - nm 0.01 - nm $ 1.56 $ 1.32 18 $ 6.32 $ 5.73 10 $ 1.56 $ 1.32 18 $ 6.32 $ 5.73 10 $ 1.07 $ 0.96 11 $ 4.24 $ 4.16 2 (0.09 ) (0.03 ) 200 (0.20 ) (0.13 ) 54 - - - - (0.02 ) (100 ) 0.01 nm 0.01 - nm - - - 0.06 - nm $ 0.99 $ 0.93 6 $ 4.11 $ 4.01 2 0.49 0.36 38 2.08 1.57 32 (0.49 ) - nm (0.71 ) (0.04 ) 100 (0.01 ) - nm (0.01 ) - nm (0.12 ) - nm (0.27 ) - nm (0.01 ) - nm 0.03 - nm $ (0.14 ) $ 0.36 (139 ) $ 1.12 $ 1.53 (27 ) $ 0.85 $ 1.29 (34 ) $ 5.23 $ 5.53 (6 ) 2022 2021 2022 2021 $ 641.5 $ 703.6 (9 ) $ 2,570.1 $ 2,761.2 (7 ) 490.4 514.4 (5 ) 2,152.9 2,039.9 6 $ 1,131.9 $ 1,218.0 (7 ) $ 4,723.0 $ 4,801.1 (2 ) $ 151.8 $ 146.5 4 $ 614.6 $ 629.7 (2 ) 66.3 80.1 (17 ) 289.6 291.9 (1 ) (35.9 ) (31.2 ) 15 (129.9 ) (110.4 ) 18 $ 182.2 $ 195.4 (7 ) $ 774.3 $ 811.2 (5 ) $ 154.2 $ 146.6 5 $ 622.8 $ 632.7 (2 ) 72.8 81.8 (11 ) 311.6 305.0 2 (30.9 ) (31.2 ) (1 ) (124.7 ) (108.5 ) 15 196.1 197.2 (1 ) 809.7 829.2 (2 ) (13.9 ) (1.8 ) 672 (35.4 ) (18.0 ) 97 $ 182.2 $ 195.4 (7 ) $ 774.3 $ 811.2 (5 ) 2022 $ 1,131.9 - - - - - 659.6 0.1 - - - - 267.3 (3.8 ) - - - - 12.6 - - - - - 10.2 (10.2 ) - - - - 182.2 13.9 - - - - 196.1 33.8 - - - - - (7.0 ) - 1.6 - - - 155.4 13.9 (1.6 ) - - - 167.7 27.2 3.4 (0.4 ) - - - $ 128.2 10.5 (1.2 ) - - - $ 137.5 (18.3 ) 62.8 1.2 15.4 0.7 1.3 $ 63.1 $ 109.9 73.3 - 15.4 0.7 1.3 $ 200.6 129.0 129.0 $ 0.99 $ 1.07 $ (0.14 ) $ 0.49 $ 0.85 $ 1.56 2021 $ 1,218.0 - - - - - 722.1 (0.6 ) - - - - 288.7 (0.5 ) - - - - 11.1 - - - - - 0.7 (0.7 ) - - - - 195.4 1.8 - - - - 197.2 21.1 - - - - - (0.2 ) (2.2 ) 0.2 - - - 174.5 4.0 (0.2 ) - - - 178.3 47.0 (0.9 ) - - - - $ 127.5 4.9 (0.2 ) - - - $ 132.2 127.5 4.9 (0.2 ) - - - $ 132.2 47.7 1.0 - - 0.1 $ 48.8 $ 175.2 5.9 (0.2 ) - 0.1 - $ 181.0 137.3 137.3 $ 0.93 $ 0.96 $ 0.35 $ 0.36 $ 1.28 $ 1.32 2022 year to date $ 4,723.0 - - - - - - 2,790.1 4.4 - - - - - 1,077.9 (7.4 ) - - - - - 48.3 - - - - - - 32.4 (32.4 ) - - - - - 774.3 35.4 - - - - - 809.7 119.2 - - - - - - (12.0 ) - 1.2 - - - - 667.1 35.4 (1.2 ) - - - - 701.3 127.2 9.8 (0.3 ) - - 8.4 - $ 539.9 25.6 (0.9 ) - - (8.4 ) - $ 556.2 $ 146.8 91.3 1.3 35.1 - (3.4 ) 1.3 $ 272.4 $ 686.7 116.9 0.4 35.1 - (11.8 ) 1.3 $ 828.6 131.3 131.3 $ 4.11 $ 4.24 $ 1.12 $ 2.08 $ 5.23 $ 6.32 2021 $ 4,801.1 - - - - - - 2,840.6 (5.4 ) - - - - - 1,093.8 (3.4 ) - - - - - 46.3 - - - - - - 9.2 (9.2 ) - - - - - 811.2 18.0 - - - - - 829.2 84.3 - - - - - - 0.5 (2.2 ) (0.9 ) - (4.5 ) - - 726.4 20.2 0.9 - 4.5 - - 752.0 166.7 3.6 0.3 - 1.1 - - $ 559.7 16.6 0.6 - 3.4 - - $ 580.3 $ 212.7 6.3 - - - 0.2 - $ 219.2 $ 772.4 22.9 0.6 - 3.4 0.2 - $ 799.5 139.5 139.5 $ 4.01 $ 4.16 1.52 1.57 $ 5.53 $ 5.73 24.0 % 20.8 % (0.3 %) - 23.7 % 20.8 % 14.8 % 15.9 % (1.3 %) (0.3 %) 13.5 % 15.6 % 17.3 % 16.2 % (1.2 %) (0.2 %) 16.1 % 16.0 % 17.1 % 17.3 % (0.7 %) (0.4 %) 16.4 % 16.9 % (11%) 4% (2%) (9%) (7%) 3% (1%) (5%) (2%) 1% (1%) (2%) $ 3.60 - 3.80 $ 4.24 (15) - (10 ) $ 3.70 $ 4.24 (13 ) (0.20 ) (0.20 ) - 0.01 - - - 0.06 $ 3.50 $ 4.11 (15 ) $ 3.40 - 3.60 $ 4.11 (17) - (12 ) definitions of terms: non-gaap measures (a) operating income (loss) from continuing operations before charges/gains is calculated as operating income derived in accordance with gaap, excluding restructuring and other charges/gains. operating income (loss) from continuing operations before charges/gains is a measure not derived in accordance with gaap. management uses this measure to evaluate the returns generated by the company and its business segments. management believes this measure provides investors with helpful supplemental information regarding the underlying performance of the company from period to period. this measure may be inconsistent with similar measures presented by other companies. (b) diluted earnings per share from continuing operations before charges/gains is calculated as income from continuing operations on a diluted per-share basis, excluding restructuring and other charges/gains, defined benefit plan actuarial losses/gains, loss on equity investments, and tax items. this measure is not in accordance with gaap. management uses this measure to evaluate the company's overall performance and believes it provides investors with helpful supplemental information about the company's underlying performance from period to period. however, this measure may not be consistent with similar measures presented by other companies. (c) diluted earnings per share from discontinued operations before charges/gains is calculated as income from discontinued operations on a diluted per-share basis, excluding restructuring and other charges/gains and seperation costs, asset impairment charges, defined benefit plan actuarial losses/gains and tax items. this measure is not in accordance with gaap. management uses this measure to evaluate the discontinued operations performance and believes it provides investors with helpful supplemental information about the discontinued operations underlying performance from period to period. however, this measure may not be consistent with similar measures presented by other companies. (d) diluted earnings per share for fortune brands home & security, inclusive of masterbrand cabinets before charges/gains, is calculated by combining income from continuing operations before charges/gains on a per-share basis, to income from the discontinued masterbrand cabinets segment through the separation date 12/14/2022 and masterbrands cabinets for post-separation 12/15/2022 through 12/25/2022 on a per-share basis. this calculation excludes restructuring and other charges/gains and separation costs, defined benefit plan actuarial losses/gains, asset impairment charges and tax items. this measure is not in accordance with gaap and is used by management to evaluate the overall performance of the company, including the contribution of the masterbrand cabinets segment. management believes this measure provides investors with helpful supplemental information about the company's underlying performance from period to period. however, this measure may not be consistent with similar measures presented by other companies. (e) ebitda from continuing operations before charges/gains is calculated as income from continuing operations in accordance with gaap, excluding depreciation, amortization of intangible assets, restructuring and other charges/gains, interest expense, defined benefit plan actuarial losses/gains, loss on equity investments, and income taxes. ebitda before charges/gains is a measure not derived in accordance with gaap. management uses this measure to assess returns generated by the company. management believes this measure provides investors with helpful supplemental information about the company's ability to fund internal growth, make acquisitions and repay debt and related interest. this measure may be inconsistent with similar measures presented by other companies. (f) loss on equity investments is related to our investment in flo. (g) total fortune brands home & security inclusive of masterbrand cabinets net sales refers to the combined net sales of fortune brands home & security and the discontinued masterbrand cabinets segment through the separation date of 12/14/2022 and and masterbrands cabinets for the post-separation 12/15/2022 through 12/25/2022. this measure provides an overall picture of the total revenue generated by the company, including the contribution of the masterbrand cabinets segment. (h) asset impairment charges for the three and twelve months ending on december 31, 2022, represent pre-tax impairment charges of $20.4 million and $46.4 million, respectively. these charges are related to the indefinite-lived trade names in our discontinued cabinets segment definitions of terms: gaap measures in the first quarter of 2022, our plumbing segment was renamed “water innovations” in order to better align with our key brands and organizational purpose. the plumbing segment name change is to the name only and had no impact on the company’s historical financial position, results of operations, cash flow or segment level results previously reported. in 2018, our water innovations segment entered into a strategic partnership with, and acquired non-controlling equity interests in, flo, a u.s. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. in january 2020, we entered into an agreement to acquire the remaining outstanding shares of flo in a multi-phase transaction. as part of this agreement, we acquired a majority of flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of flo during the first quarter of 2022 for a price based on a multiple of flo’s 2021 sales and adjusted earnings before interest and taxes. on january 30, 2022, we made a final cash payment of $16.7 million to the legacy minority shareholders to acquire such shares which is reflected within other financing, net in our consolidated statements of cash flows. in january 2022, we acquired 100% of the outstanding equity of solar innovations, a leading producer of wide-opening exterior door systems and outdoor enclosures, for a purchase price of $61.6 million, net of cash acquired of $4.8 million. we financed the transaction using cash on hand and borrowings under our revolving credit facility. the results of solar are reported as part of the outdoors & security segment. its complementary product offerings support the segment’s outdoor living strategy. in july 2022, we acquired 100% of the outstanding equity of aqualisa, a leading u.k. manufacturer of shower products known for premium, innovative, smart digital shower systems, for a purchase price of $156.0 million, net of cash acquired of $4.8 million. the results of aqualisa are reported as part of the water innovations segment. its product offerings will enable us to continue to leverage growing trends in water management and connected products. we financed the transaction with borrowings under our existing credit facilities. we have not included pro forma financial information as it is immaterial to our condensed consolidated statements of comprehensive income. the fair value allocated to assets acquired and liabilities assumed as of july 29, 2022, was $156.0 million. on december 14, 2022, the company completed the previously announced spin-off of its cabinets business, masterbrand, inc. ("masterbrand") (the "spin-off"), in a tax-free transaction to the company and our stockholders for u.s. federal income tax purposes, creating two independent, publicly traded companies. in addition, the company's name changed from "fortune brands home & security, inc." to "fortune brands innovations, inc." and its stock ticker changed from "fbhs" to "fbin" which became effective subsequent to the completion of the spin-off. the operating results of the cabinets business are reported as discontinued operations for all periods presented. we have two business segments: water innovations (previously referred to as plumbing) and outdoors & security. our former cabinets segment was disposed of in connection with the spin-off.
