MasterBrand, Inc.MBC

MasterBrand, Inc. Segments Disclosure

10-KFiled Feb 13, 20262 min read
Segment Information
The Company has one operating and reportable segment that is organized based on the nature of products the Company sells, its production and distribution mode, the internal management structure and information that is regularly provided to the chief operating decision maker (“CODM”) for the purpose of assessing performance and allocating resources.

The Company is the largest manufacturer of residential cabinets in North America with a portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. Our production and distribution modes were determined to be a single reportable segment, as discrete financial information by sale distribution channel and by customer shipping location is limited to sale-related metrics, as disclosed in Note 4, "Revenue from Contracts with Customers."

Our chief executive officer is our CODM. The CODM uses net income predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances from net income on a monthly basis when making decisions about allocating capital resources to the reportable segment. The CODM also uses net income for evaluating the performance of the reportable segment and in determining the compensation of certain employees.
The following summarizes the significant and other operating expenses reviewed by the CODM:

(U.S. Dollars presented in millions)202520242023
Net sales$2,734.7 $2,700.4 $2,726.2 
Less:
Raw materials979.0 962.3 988.1 
Production labor and overhead928.1 861.1 836.7 
Non-production associate-related costs210.6 199.2 196.2 
Distribution costs163.1 161.8 169.4 
Commissions59.0 47.2 48.4 
Provision for bad debt17.8 0.4 1.9 
Amortization of intangibles25.6 20.2 15.3 
Other segment items (a)
232.5 212.5 163.9 
Interest expense74.1 74.0 65.2 
Gain on sale of asset— (4.3)— 
Other (income) expense, net(1.4)(2.3)2.4 
Income tax expense19.6 42.4 56.7 
Consolidated net income$26.7 $125.9 $182.0 
(a)    Other segment items include outside service costs, acquisition-related costs, restructuring charges and other expenses.

The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM does not review segment assets at a different asset level or category.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 19, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValueGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance