Fortune Brands Innovations, Inc. Commitments Disclosure
17. Commitments
Purchase Obligations
Purchase obligations of the Company as of December 27, 2025 were $456.1 million, of which $429.9 million is due within one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures.
Product Warranties
We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms, and those expenses are recorded in the period in which the concession is made. 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 2025, 2024, and 2023.
(In millions) |
|
2025 |
|
|
|
2024 |
|
|
2023 |
|
|||
Reserve balance at the beginning of the year |
|
$ |
20.2 |
|
|
|
$ |
18.4 |
|
|
$ |
20.1 |
|
Provision for warranties issued |
|
|
7.9 |
|
|
|
|
9.0 |
|
|
|
8.7 |
|
Settlements made (in cash or in kind) |
|
|
(7.5 |
) |
|
|
|
(9.1 |
) |
|
|
(10.4 |
) |
Acquisition |
|
|
— |
|
|
|
|
2.0 |
|
|
|
— |
|
Foreign currency |
|
|
(0.7 |
) |
|
|
|
(0.1 |
) |
|
|
— |
|
Reserve balance at end of year |
|
$ |
19.9 |
|
|
|
$ |
20.2 |
|
|
$ |
18.4 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2015 | Feb 25, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.