[January 29, 2015] |
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Stanley Black & Decker Reports 4Q And Full Year 2014 Results
Stanley Black & Decker (NYSE: SWK) today announced fourth
quarter and full year 2014 financial results.
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4Q'14 Revenues Increased 3% To $3.0 Billion; Organic Growth Of 7%
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4Q'14 Operating Margin Expanded 170 Basis Points To 13.2%; Excluding
Charges, Operating Margin Expanded 50 Basis Points To 13.7%
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4Q'14 Diluted GAAP EPS Was $1.37; Excluding Charges, 4Q'14 Diluted EPS
Was $1.56
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Full Year Revenues Increased 4% to $11.3 Billion; Organic Growth Of 5%
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Full Year Operating Margin Expanded 220 Basis Points To 13.3%;
Excluding Charges, Operating Margin Expanded 90 Basis Points To 13.6%
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Full Year Diluted GAAP EPS Was $5.37; Excluding Charges, Diluted EPS
Was $5.67
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2014 Free Cash Flow Record Of $1.0 Billion; Working Capital Turns
Reached 9.2
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Expect 2015 Full Year EPS Of $5.65 To $5.85 On A GAAP Basis (Inclusive
Of $0.25 In Restructuring Charges) And Free Cash Flow Of At Least $1.0
Billion
4Q'14 Key Points:
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Net sales for the period were $3.0 billion, up 3% versus the prior
year, primarily attributable to volume (+6%) and price (+1%),
partially offset by currency (-4%).
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The gross margin rate for the quarter was 35.2%. Excluding charges the
gross margin rate was 35.3%, down 50 basis points from the prior year
rate of 35.8%, as favorable volume, price, productivity and cost
actions were more than offset by unfavorable currency and lower
Security margins.
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SG&A expenses were 22.1% of sales. Excluding charges, SG&A expenses
were 21.6% of sales, compared to 22.6% in 4Q'13.
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Operating margin rate was 13.2%. Excluding charges, operating margin
rate was 13.7%, up 50 basis points from 4Q'13, as actions taken to
improve profitability and generate operating leverage more than offset
unfavorable currency.
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The tax rate was 17.6%. Excluding charges, the tax rate was 18.3%, 360
basis points lower than last year's rate due primarily to the
favorable shift of earnings to lower taxed jurisdictions, the passage
of U.S. tax legislation and settlement of various income tax audits in
the fourth quarter.
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Working capital turns for the quarter were 9.2, up 1.1 turns from
4Q'13. Free cash flow for the quarter was $636 million consistent with
4Q'13.
Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented,
"We were very pleased with our performance in the fourth quarter and for
the full year. Our commitment to well balanced capital allocation
priorities combined with our focus on key operational levers produced
favorable organic growth, operating leverage and free cash flow results
despite adverse currency and volatile macro environments.
"As we look to 2015 we continue to enjoy strong operating momentum
amidst similar operating conditions and, as a consequence, are well
positioned to manage through another challenging environment. Our
long-term strategy and financial objectives remain intact, and we are
confident in our ability to continue to generate strong underlying
organic revenue, earnings and cash flow growth while producing
meaningful returns for shareholders."
4Q'14 Segment Results
($ in M)
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4Q' 14 Segment Results
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Sales
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Profit
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Charges1
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Profit
Ex-Charges1
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Profit Rate
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Profit Rate
Ex-Charges1
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CDIY
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$1,496
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$244.5
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$0.3
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$244.8
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16.3%
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16.4%
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Industrial
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$891
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$136.7
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$2.2
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$138.9
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15.3%
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15.6%
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Security
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$595
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$69.7
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$3.1
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$72.8
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11.7%
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12.2%
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1 See Merger And Acquisition (M&A) One-Time Charges On Page 5
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CDIY net sales increased 7% versus 4Q'13 as a result of volume (+10%)
and price (+1%), partially offset by currency (-4%). Organic growth
was strong in all regions led by North America (+14%). North America
realized share gains and benefitted from continued brisk underlying
tool demand across all channels driven primarily by new products and a
robust holiday sell-in and sell-through season. Europe (+7%)
maintained its trend of strong organic growth as new products and an
expanded retail footprint continued to generate market share gains, in
spite of a challenged economic backdrop. Organic growth accelerated
within the emerging markets (+7%) led by Latin America, despite
persistently volatile economic conditions across all emerging markets.
Excluding charges, overall segment profit rate was 16.4%, up from the
4Q'13 rate of 14.8%, as volume leverage, price, productivity and cost
management more than offset currency pressures.
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Industrial net sales increased 1% versus 4Q'13 as a result of volume
(+5%) and modestly positive price, partially offset by currency (-4%).
Engineered Fastening achieved 10% organic growth driven by both strong
global automotive and electronic revenues. Organic sales for the
Industrial and Automotive Repair ("IAR") business were up 5% with
solid performances in both the North American and European tools
businesses. Infrastructure organic growth was down 10% as strong
hydraulic tools growth was negated by lower oil & gas revenues due to
the recent contraction in oil prices and resulting slowdown in
pipeline construction. Overall Industrial segment profit rate
excluding charges was 15.6%, relatively consistent with the 4Q'13 rate
of 15.8%, reflecting favorable volume leverage, productivity gains and
cost control, offset by currency.
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Security net sales decreased 1% versus 4Q'13 as organic growth of 3%
driven by volume (+2%) and price (+1%), was offset by currency (-4%).
Organic growth within North America and emerging markets ("NA & EM")
of 5% was primarily a result of strong performances within the
commercial electronics and automatic doors businesses. Europe's
organic growth rate was flat, a significant improvement versus prior
quarters. Europe order rates were up mid-single digits for the quarter
with attrition rates for the year stabilized within the target range
of 10-12%.
Overall Security segment profit rate excluding
charges was 12.2%, a slight increase from the 3Q'14 rate of 12.1% and
down 80 basis points from the 4Q'13 rate of 13.0%. The year-over-year
decrease in Security's segment rate for the quarter resulted primarily
from the expected temporary project mix impact within North America
which more than offset a 110 basis point improvement within Europe.
The Security segment profit rate excluding charges for the full year
of 11.7% was flat with the prior year.
President and Chief Operating Officer, James M. Loree, commented, "The
fourth quarter represented another solid quarter of organic growth,
margin expansion and cash flow generation for the Company. Our CDIY and
Industrial segments maintained their impressive performance for the year
from both an organic growth and operating leverage perspective, led by
developed markets, while growth in the emerging markets continued to
outpace the underlying volatile and slowing markets due in large part to
the initial successes of our mid-price point product launches.
"We continued to see positive signs within the European Security
business as its operating margin rate, which improved sequentially and
increased 110 basis points above the prior year, and order growth met
expectations for the quarter. Additionally, in the fourth quarter we
announced our decision to divest Security's operations in Spain and
Italy, allowing us to focus our efforts on the regions with stronger
structural characteristics and thus the highest growth and margin
potential. The combination of this action and other operational
improvements in both Europe and North America, give us confidence that
we can continue to show both top and bottom line improvement within
Security during 2015."
2015 Outlook
Donald Allan Jr., Senior Vice President and CFO, commented, "In 2015 we
expect to build off the momentum we generated during 2014 towards
achieving our long-term financial objectives. Investing in our business
strategically and focusing on operational excellence will position us to
deliver organic growth of approximately 3-4% during 2015 in a
continuously challenging global macroeconomic climate and drive
operating leverage, resulting in 2015 EPS of $5.65 - $5.85 on a GAAP
basis which includes $50 million or $0.25 EPS in restructuring charges.
"We have made the decision to provide our guidance for 2015 on a GAAP
basis given the significant reduction in annual restructuring and other
one-time charges, which were more pronounced in prior years due to
sizable M&A activity during 2010 - 2013."
The following summarizes the key 2015 planning assumptions:
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Organic growth of approximately 3-4% (approximately +$0.45 - $0.55)
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Cost actions within Security and other businesses, pricing and
commodity deflation (approximately +$0.50)
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Lower average share count due to repurchases of shares weighted to the
second half of 2015 (approximately +$0.09 - $0.12)
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Foreign exchange headwinds of approximately $140 million
(approximately - $0.70 - $0.75)
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The tax rate will be relatively consistent with the 2014 rate
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Free cash flow is expected to be at least $1 billion
Mr. Allan added, "We also remain committed to our near-term capital
allocation plan of modest debt deleveraging, completed at the end of
2014, reducing our share count by the equivalent of approximately $1
billion of shares and supporting a strong and growing dividend. These
actions combined with our near-term operational improvements are
expected to result in continued improvement to our cash flow return on
investment during 2015."
Merger And Acquisition (M&A) One-Time Charges
4Q'14: Total one-time charges in 4Q'14 of $39.9 million primarily relate
to integration and consulting costs. Gross margin includes $0.3 million
of these one-time charges while SG&A includes $14.1 million. $5.6
million of these costs that impact the Company's operating margin are
included in segment results, with the remainder in corporate overhead.
Also included in one-time charges are $1.1 million in Other, net as well
as $24.4 million in net Restructuring charges.
2014: Total one-time charges in 2014 of $53.9 million primarily relate
to integration and consulting costs. Gross margin includes $1.8 million
of these one-time charges while SG&A includes $31.6 million. $14.7
million of these costs that impact the Company's operating margin are
included in segment results, with the remainder in corporate overhead.
Also included in one-time charges are $1.7 million in Other, net as well
as $18.8 million in net Restructuring charges.
The Company will host a conference call with investors today, Thursday,
January 29, at 8:00am ET. A slide presentation which will accompany the
call will be available at www.stanleyblackanddecker.com
and will remain available after the call.
You can also access the slides via the Stanley Black & Decker Investor
Relations iPad & iPhone app from the Apple App Store by searching for
"SWK Investor Relations".
The call will be accessible by telephone at 1 (800) 708-4540, from
outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com.
To participate, please register on the web site at least fifteen minutes
prior to the call and download and install any necessary audio software.
Please use the conference identification number 3868-1018. A replay will
also be available two hours after the call and can be accessed at 1
(888) 843-7419 or +1 (630) 652-3042 using the passcode 3868-1018#. The
replay will also be available as a podcast within 24 hours and can be
accessed on our website and via iTunes.
Stanley Black & Decker, an S&P 500 company, is a diversified global
provider of hand tools, power tools and related accessories, mechanical
access solutions and electronic security solutions, healthcare
solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.
These results reflect the Company's continuing operations. In 4Q'14, the
Company classified the results of the Security segment's Spain and Italy
operations as held for sale based on management's intention to sell
these operations. The operating results of Security Spain and Italy have
been reported as discontinued operations for 2014 and 2013. In 3Q'13,
the Company classified two small businesses within the Security and
Industrial segments as held for sale based on management's intention to
sell these businesses. The businesses within the Security and Industrial
segments were sold during 2014. The operating results of these
businesses, including the related losses on sale, have been reported as
discontinued operations for 2013 and through the date of sale for 2014.
Total sales reported as discontinued operations were $25.2 million and
$34.8 million for 4Q'14 and 4Q'13, respectively, and $118.4 million and
$150.1 million for 2014 and 2013, respectively.
The Company recast 2013 segment net sales and profit between the CDIY
and Industrial segments to align reporting with the current management
of the Company's operations in the emerging markets to be comparable
with the current year presentation. There is no impact to the
consolidated financial statements of the Company as a result of this
segment realignment. Organic sales growth is defined as total sales
growth less the sales of companies acquired in the past twelve months
and any foreign currency impacts. Operating margin is defined as sales
less cost of sales and selling, general and administrative expenses.
Management uses operating margin and its percentage of net sales as key
measures to assess the performance of the Company as a whole, as well as
the related measures at the segment level. Free cash flow is defined as
cash flow from operations less capital and software expenditures.
Management considers free cash flow an important indicator of its
liquidity, as well as its ability to fund future growth and to provide a
return to the shareowners. Free cash flow does not include deductions
for mandatory debt service, other borrowing activity, discretionary
dividends on the Company's common stock and business acquisitions, among
other items. The normalized statement of operations and business segment
information, as reconciled to GAAP on pages 13 to 16 for 2014 and 2013,
are considered relevant to aid analysis of the Company's operating
performance and earnings results aside from the material impact of the
one-time charges and payments associated with the Black & Decker merger,
the Niscayah and Infastech acquisitions and other smaller acquisitions
of the Company. Normalized free cash flow, as reconciled from the
associated GAAP measures on page 11 for 2014 and 2013 is considered a
meaningful pro forma metric to aid the understanding of the Company's
cash flow performance aside from the material impact of the M&A-related
payments and charges.
CAUTIONARY STATEMENTS Under the Private Securities Litigation
Reform Act of 1995
Statements in this press release that are not historical, including but
not limited to those regarding the Company's ability to: (i) achieve
full year 2015 EPS of $5.65 - $5.85 on a GAAP basis (including $50
million or $0.25 EPS in restructuring charges); (ii) generate free cash
flow of at least $1.0 billion for 2015 ; (iii) continue to show both top
and bottom line improvement within Security during 2015; (iv) reduce its
share count by the equivalent of approximately $1.0 billion of shares
and support a strong and growing dividend; and (v) improve our cash flow
return on investment through 2015 (collectively, the "Results"); are
"forward looking statements" and subject to risk and uncertainty.
The Company's ability to deliver the Results as described above is based
on current expectations and involves inherent risks and uncertainties,
including factors listed below and other factors that could delay,
divert, or change any of them, and could cause actual outcomes and
results to differ materially from current expectations. In addition to
the risks, uncertainties and other factors discussed in this press
release, the risks, uncertainties and other factors that could cause or
contribute to actual results differing materially from those expressed
or implied in the forward looking statements include, without
limitation, those set forth under Item 1A Risk Factors of the Company's
Annual Report on Form 10-K and any material changes thereto set forth in
any subsequent Quarterly Reports on Form 10-Q, or those contained in the
Company's other filings with the Securities and Exchange Commission, and
those set forth below.
The Company's ability to deliver the Results is dependent, or based,
upon: (i) the Company's ability to capitalize on operational
improvements in both Security Europe and North America as well as
execute on its divestiture of Security's operations in Spain and Italy;
(ii) the Company's ability to invest in its business strategically and
focus on operational excellence to deliver organic growth of
approximately 3-4% ( approximately $0.45 - $0.55) during 2015; (iii) the
Company's ability to execute upon cost actions within Security and other
businesses and to benefit from pricing and commodity deflation
(approximately +$0.50); (iv) the Company's ability to lower average
share count due to repurchases of shares mostly in the second half of
2015 (approximately +$0.09 - $0.12); (v) foreign exchange headwinds
being approximately $140 million (approximately - $0.70 - $0.75) in
2015; (vi) the Company's ability to achieve a tax rate relatively
consistent with the 2014 tax rate; (vii); the Company's ability to limit
one-time restructuring charges to approximately $50 million in 2015;
(viii) successful integration of acquisitions completed during the year,
as well as integration of existing businesses; (ix) the continued
acceptance of technologies used in the Company's products and services;
(x) the Company's ability to manage existing Sonitrol franchisee and Mac
Tools relationships; (xi) the Company's ability to minimize costs
associated with any sale or discontinuance of a business or product
line, including any severance, restructuring, legal or other costs;
(xii) the proceeds realized with respect to any business or product line
disposals; (xiii) the extent of any asset impairments with respect to
any businesses or product lines that are sold or discontinued; (xiv) the
success of the Company's efforts to manage freight costs, steel and
other commodity costs as well as capital expenditures; (xv) the
Company's ability to sustain or increase prices in order to, among other
things, offset or mitigate the impact of steel, freight, energy,
non-ferrous commodity and other commodity costs and any inflation
increases and/or currency impacts; (xvi) the Company's ability to
generate free cash flow and maintain a strong debt to capital ratio;
(xvii) the Company's ability to identify and effectively execute
productivity improvements and cost reductions, while minimizing any
associated restructuring charges; (xviii) the Company's ability to
obtain favorable settlement of tax audits; (xix) the ability of the
Company to generate earnings sufficient to realize future income tax
benefits during periods when temporary differences become deductible;
(xx) the continued ability of the Company to access credit markets under
satisfactory terms; (xxi) the Company's ability to negotiate
satisfactory price and payment terms under which the Company buys and
sells goods, services, materials and products; (xxii) the Company's
ability to successfully develop, market and achieve sales from new
products and services; and (xxiii) the availability of cash to
repurchase shares when conditions are right.
The Company's ability to deliver the Results is also dependent upon: (i)
the success of the Company's marketing and sales efforts, including the
ability to develop and market new and innovative products at the right
price points in both existing and new markets; (ii) the ability of the
Company to maintain or improve production rates in the Company's
manufacturing facilities, respond to significant changes in product
demand and fulfill demand for new and existing products; (iii) the
Company's ability to continue improvements in working capital through
effective management of accounts receivable and inventory levels; (iv)
the ability to continue successfully managing and defending claims and
litigation; (v) the success of the Company's efforts to mitigate any
adverse earnings impact resulting from increases generated by, for
example, increases in the cost of energy or significant Euro, Canadian
Dollar, Chinese Renminbi or other currency fluctuations; (vi) the
geographic distribution of the Company's earnings; (vii) the commitment
to and success of the Stanley Fulfillment System; and (viii) successful
implementation with expected results of cost reduction programs.
The Company's ability to achieve the Results will also be affected by
external factors. These external factors include: challenging global
geopolitical and macroeconomic environment; the economic environment of
emerging markets, particularly Latin America, Russia and Turkey; pricing
pressure and other changes within competitive markets; the continued
consolidation of customers particularly in consumer channels; inventory
management pressures on the Company's customers; the impact the
tightened credit markets may have on the Company or its customers or
suppliers; the extent to which the Company has to write off accounts
receivable or assets or experiences supply chain disruptions in
connection with bankruptcy filings by customers or suppliers; increasing
competition; changes in laws, regulations and policies that affect the
Company, including, but not limited to trade, monetary, tax and fiscal
policies and laws; the timing and extent of any inflation or deflation;
the impact of poor weather conditions on sales; currency exchange
fluctuations; the impact of dollar/foreign currency exchange and
interest rates on the competitiveness of products and the Company's debt
program; the strength of the U.S. and European economies; the extent to
which world-wide markets associated with homebuilding and remodeling
stabilize and rebound; the impact of events that cause or may cause
disruption in the Company's supply, manufacturing, distribution and
sales networks such as war, terrorist activities, and political unrest;
and recessionary or expansive trends in the economies of the world in
which the Company operates. The Company undertakes no obligation to
publicly update or revise any forward-looking statements to reflect
events or circumstances that may arise after the date hereof.
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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited, Millions of Dollars Except Per Share Amounts)
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FOURTH QUARTER
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YEAR TO DATE
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2014
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2013
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2014
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2013
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NET SALES
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$
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2,982.5
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$
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2,880.6
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$
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11,338.6
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$
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10,889.5
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COSTS AND EXPENSES
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Cost of sales
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1,931.4
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1,853.8
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7,235.9
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6,985.8
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Gross margin
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1,051.1
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1,026.8
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4,102.7
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3,903.7
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% of Net Sales
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35.2
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%
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35.6
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%
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36.2
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%
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35.8
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%
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Selling, general and administrative
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658.3
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696.9
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2,595.9
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2,690.6
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% of Net Sales
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22.1
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%
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24.2
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%
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22.9
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%
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24.7
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%
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Operating margin
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392.8
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329.9
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1,506.8
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1,213.1
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% of Net Sales
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13.2
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%
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11.5
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%
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13.3
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%
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11.1
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%
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Other - net
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60.5
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98.2
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239.6
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304.5
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Restructuring charges
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24.4
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133.2
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18.8
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173.7
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Income from operations
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307.9
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98.5
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1,248.4
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734.9
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Interest - net
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42.2
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38.3
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163.6
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147.3
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|
|
|
|
|
|
|
|
|
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
|
265.7
|
|
|
|
|
|
60.2
|
|
|
|
|
|
1,084.8
|
|
|
|
|
|
587.6
|
|
|
|
Income tax expense (benefit) on continuing operations
|
|
|
|
46.7
|
|
|
|
|
|
(10.2
|
)
|
|
|
|
|
227.1
|
|
|
|
|
|
68.6
|
|
|
NET EARNINGS FROM CONTINUING OPERATIONS
|
|
|
|
219.0
|
|
|
|
|
|
70.4
|
|
|
|
|
|
857.7
|
|
|
|
|
|
519.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net (loss) earnings attributable to non-controlling interests
|
|
|
|
(0.3
|
)
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
0.5
|
|
|
|
|
|
(1.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO COMMON SHAREOWNERS
|
|
|
|
|
219.3
|
|
|
|
|
|
70.5
|
|
|
|
|
|
857.2
|
|
|
|
|
|
520.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM DISCONTINUED OPERATIONS
|
|
|
|
(73.5
|
)
|
|
|
|
|
(14.4
|
)
|
|
|
|
|
(96.3
|
)
|
|
|
|
|
(29.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS
|
|
|
$
|
145.8
|
|
|
|
|
$
|
56.1
|
|
|
|
|
$
|
760.9
|
|
|
|
|
$
|
490.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.41
|
|
|
|
|
$
|
0.45
|
|
|
|
|
$
|
5.49
|
|
|
|
|
$
|
3.35
|
|
|
|
Discontinued operations
|
|
|
|
|
(0.47
|
)
|
|
|
|
|
(0.09
|
)
|
|
|
|
|
(0.62
|
)
|
|
|
|
|
(0.19
|
)
|
|
|
Total basic earnings per share of common stock
|
|
|
$
|
0.94
|
|
|
|
|
$
|
0.36
|
|
|
|
|
$
|
4.87
|
|
|
|
|
$
|
3.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.37
|
|
|
|
|
$
|
0.44
|
|
|
|
|
$
|
5.37
|
|
|
|
|
$
|
3.28
|
|
|
|
Discontinued operations
|
|
|
|
|
(0.46
|
)
|
|
|
|
|
(0.09
|
)
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
(0.19
|
)
|
|
|
Total diluted earnings per share of common stock
|
|
|
$
|
0.91
|
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
4.76
|
|
|
|
|
$
|
3.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER SHARE
|
|
|
|
$
|
0.52
|
|
|
|
|
$
|
0.50
|
|
|
|
|
$
|
2.04
|
|
|
|
|
$
|
1.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE SHARES OUTSTANDING (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
155,799
|
|
|
|
|
|
155,512
|
|
|
|
|
|
156,090
|
|
|
|
|
|
155,237
|
|
|
|
Diluted
|
|
|
|
|
160,013
|
|
|
|
|
|
159,200
|
|
|
|
|
|
159,737
|
|
|
|
|
|
158,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited, Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
January 3,
|
|
|
|
December 28,
|
|
|
|
2015
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
496.6
|
|
|
|
$
|
496.2
|
|
Accounts and notes receivable, net
|
|
1,396.7
|
|
|
|
|
1,578.5
|
|
Inventories, net
|
|
|
1,562.7
|
|
|
|
|
1,473.3
|
|
Assets held for sale
|
|
|
29.5
|
|
|
|
|
136.9
|
|
Other current assets
|
|
|
463.3
|
|
|
|
|
331.7
|
|
Total current assets
|
|
3,948.8
|
|
|
|
|
4,016.6
|
|
Property, plant and equipment, net
|
|
1,454.1
|
|
|
|
|
1,478.6
|
|
Goodwill and other intangibles, net
|
|
10,027.2
|
|
|
|
|
10,600.0
|
|
Other assets
|
|
|
114.6
|
|
|
|
|
439.9
|
|
Total assets
|
|
$
|
15,544.7
|
|
|
|
$
|
16,535.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREOWNERS' EQUITY
|
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
7.5
|
|
|
|
$
|
402.6
|
|
Accounts payable
|
|
|
1,579.2
|
|
|
|
|
1,552.9
|
|
Accrued expenses
|
|
|
1,221.9
|
|
|
|
|
1,219.5
|
|
Liabilities held for sale
|
|
|
23.4
|
|
|
|
|
61.0
|
|
Total current liabilities
|
|
2,832.0
|
|
|
|
|
3,236.0
|
|
Long-term debt
|
|
|
3,839.8
|
|
|
|
|
3,799.4
|
|
Other long-term liabilities
|
|
|
2,343.8
|
|
|
|
|
2,619.2
|
|
Stanley Black & Decker, Inc. shareowners' equity
|
|
6,446.3
|
|
|
|
|
6,799.2
|
|
Non-controlling interests' equity
|
|
82.8
|
|
|
|
|
81.3
|
|
Total liabilities and equity
|
$
|
15,544.7
|
|
|
|
$
|
16,535.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH FLOW ACTIVITY
|
(Unaudited, Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
|
|
|
YEAR TO DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
|
$
|
219.0
|
|
|
|
$
|
70.4
|
|
|
|
$
|
857.7
|
|
|
|
$
|
519.0
|
|
|
|
Net loss from discontinued operations
|
|
|
|
(73.5
|
)
|
|
|
|
(14.4
|
)
|
|
|
|
(96.3
|
)
|
|
|
|
(29.7
|
)
|
|
|
Depreciation and amortization
|
|
|
|
112.4
|
|
|
|
|
118.6
|
|
|
|
|
449.8
|
|
|
|
|
441.3
|
|
|
|
Changes in working capital1
|
|
|
|
433.2
|
|
|
|
|
384.9
|
|
|
|
|
(9.8
|
)
|
|
|
|
13.3
|
|
|
|
Other
|
|
|
|
|
56.2
|
|
|
|
|
172.2
|
|
|
|
|
80.2
|
|
|
|
|
(75.9
|
)
|
|
|
Net cash provided by operating activities
|
|
|
|
747.3
|
|
|
|
|
731.7
|
|
|
|
|
1,281.6
|
|
|
|
|
868.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software expenditures
|
|
|
|
(111.6
|
)
|
|
|
|
(95.0
|
)
|
|
|
|
(291.0
|
)
|
|
|
|
(340.3
|
)
|
|
|
(Payments) proceeds from sales of businesses / assets
|
|
|
|
(1.3
|
)
|
|
|
|
1.0
|
|
|
|
|
11.5
|
|
|
|
|
97.5
|
|
|
|
Acquisitions, net of cash acquired
|
|
|
|
-
|
|
|
|
|
(7.3
|
)
|
|
|
|
(3.2
|
)
|
|
|
|
(933.9
|
)
|
|
|
Premium paid on debt extinguishment
|
|
|
|
-
|
|
|
|
|
(42.8
|
)
|
|
|
|
-
|
|
|
|
|
(42.8
|
)
|
|
|
Proceeds from long-term borrowings
|
|
|
|
-
|
|
|
|
|
726.7
|
|
|
|
|
-
|
|
|
|
|
726.7
|
|
|
|
Proceeds from issuances of common stock
|
|
|
|
34.6
|
|
|
|
|
15.9
|
|
|
|
|
85.6
|
|
|
|
|
154.6
|
|
|
|
Net short-term (repayments) borrowings
|
|
|
|
(424.8
|
)
|
|
|
|
(810.8
|
)
|
|
|
|
(391.0
|
)
|
|
|
|
388.7
|
|
|
|
Net investment hedge settlements
|
|
|
|
3.6
|
|
|
|
|
(3.4
|
)
|
|
|
|
(61.4
|
)
|
|
|
|
3.6
|
|
|
|
Cash dividends on common stock
|
|
|
|
(80.8
|
)
|
|
|
|
(77.7
|
)
|
|
|
|
(321.3
|
)
|
|
|
|
(312.7
|
)
|
|
|
Purchases of common stock for treasury
|
|
|
|
(7.5
|
)
|
|
|
|
(6.6
|
)
|
|
|
|
(28.2
|
)
|
|
|
|
(39.2
|
)
|
|
|
Premium paid for equity option
|
|
|
|
-
|
|
|
|
|
(83.2
|
)
|
|
|
|
-
|
|
|
|
|
(83.2
|
)
|
|
|
Payment on long-term debt
|
|
|
|
(45.7
|
)
|
|
|
|
(300.5
|
)
|
|
|
|
(46.6
|
)
|
|
|
|
(302.2
|
)
|
|
|
Payment on forward share purchase contract
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(350.0
|
)
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(84.0
|
)
|
|
|
|
(11.6
|
)
|
|
|
|
(147.1
|
)
|
|
|
|
(44.9
|
)
|
|
|
Other
|
|
|
|
|
(20.0
|
)
|
|
|
|
(9.3
|
)
|
|
|
|
(88.5
|
)
|
|
|
|
(9.7
|
)
|
|
|
Net cash used in investing and financing activities
|
|
|
|
(737.5
|
)
|
|
|
|
(704.6
|
)
|
|
|
|
(1,281.2
|
)
|
|
|
|
(1,087.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Cash and Cash Equivalents
|
|
|
|
9.8
|
|
|
|
|
27.1
|
|
|
|
|
0.4
|
|
|
|
|
(219.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of Period
|
|
|
|
486.8
|
|
|
|
|
469.1
|
|
|
|
|
496.2
|
|
|
|
|
716.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period
|
|
|
$
|
496.6
|
|
|
|
$
|
496.2
|
|
|
|
$
|
496.6
|
|
|
|
$
|
496.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow Computation2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash inflow
|
|
|
$
|
747.3
|
|
|
|
$
|
731.7
|
|
|
|
$
|
1,281.6
|
|
|
|
$
|
868.0
|
|
|
Less: capital and software expenditures
|
|
|
|
(111.6
|
)
|
|
|
|
(95.0
|
)
|
|
|
|
(291.0
|
)
|
|
|
|
(340.3
|
)
|
|
Free cash inflow (before dividends)
|
|
|
$
|
635.7
|
|
|
|
$
|
636.7
|
|
|
|
$
|
990.6
|
|
|
|
$
|
527.7
|
|
|
Merger & Acquisition-related charges and payments4
|
|
|
|
36.1
|
|
|
|
|
69.4
|
|
|
|
|
152.2
|
|
|
|
|
351.7
|
|
|
Free cash inflow, normalized (before dividends)3
|
|
|
$
|
671.8
|
|
|
|
$
|
706.1
|
|
|
|
$
|
1,142.8
|
|
|
|
$
|
879.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
The change in working capital is comprised of accounts receivable,
inventory, accounts payable and deferred revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,3
|
|
Free cash flow is defined as cash flow from operations less
capital and software expenditures. Management considers free cash
flow an important measure of its liquidity, as well as its
ability to fund future growth and to provide a return to the
shareowners. Free cash flow does not include deductions for
mandatory debt service, other borrowing activity, discretionary
dividends on the Company's common stock and business acquisitions, among
other items. Normalized free cash flow, as reconciled above, is
considered a meaningful pro forma metric to aid the understanding
of the Company's cash flow performance aside from the material
impact of merger and acquisition-related activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
Merger & Acquisition-related charges and payments relate primarily
to the Black & Decker merger and Niscayah and Infastech
acquisitions, including facility closure-related charges,
employee-related charges and integration costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT INFORMATION
|
(Unaudited, Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
|
|
YEAR TO DATE
|
|
|
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
1,496.4
|
|
|
|
$
|
1,397.4
|
|
|
$
|
5,559.3
|
|
|
|
$
|
5,271.4
|
|
|
|
Industrial
|
|
|
|
891.4
|
|
|
|
|
881.3
|
|
|
|
3,498.8
|
|
|
|
|
3,302.6
|
|
|
|
Security
|
|
|
|
594.7
|
|
|
|
|
601.9
|
|
|
|
2,280.5
|
|
|
|
|
2,315.5
|
|
|
|
Total
|
|
|
$
|
2,982.5
|
|
|
|
$
|
2,880.6
|
|
|
$
|
11,338.6
|
|
|
|
$
|
10,889.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
244.5
|
|
|
|
$
|
202.8
|
|
|
$
|
871.5
|
|
|
|
$
|
777.1
|
|
|
|
Industrial
|
|
|
|
136.7
|
|
|
|
|
135.1
|
|
|
|
553.5
|
|
|
|
|
456.7
|
|
|
|
Security
|
|
|
|
69.7
|
|
|
|
|
66.8
|
|
|
|
259.2
|
|
|
|
|
233.3
|
|
|
|
Segment Profit
|
|
|
|
450.9
|
|
|
|
|
404.7
|
|
|
|
1,684.2
|
|
|
|
|
1,467.1
|
|
|
|
Corporate Overhead
|
|
|
|
(58.1
|
)
|
|
|
|
(74.8
|
)
|
|
|
(177.4
|
)
|
|
|
|
(254.0
|
)
|
|
|
Total
|
|
|
$
|
392.8
|
|
|
|
$
|
329.9
|
|
|
$
|
1,506.8
|
|
|
|
$
|
1,213.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
|
16.3
|
%
|
|
|
|
14.5
|
%
|
|
|
15.7
|
%
|
|
|
|
14.7
|
%
|
|
|
Industrial
|
|
|
|
15.3
|
%
|
|
|
|
15.3
|
%
|
|
|
15.8
|
%
|
|
|
|
13.8
|
%
|
|
|
Security
|
|
|
|
11.7
|
%
|
|
|
|
11.1
|
%
|
|
|
11.4
|
%
|
|
|
|
10.1
|
%
|
|
|
Segment Profit
|
|
|
|
15.1
|
%
|
|
|
|
14.0
|
%
|
|
|
14.9
|
%
|
|
|
|
13.5
|
%
|
|
|
Corporate Overhead
|
|
|
|
(1.9
|
%)
|
|
|
|
(2.6
|
%)
|
|
|
(1.6
|
%)
|
|
|
|
(2.3
|
%)
|
|
|
Total
|
|
|
|
13.2
|
%
|
|
|
|
11.5
|
%
|
|
|
13.3
|
%
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited, Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER 2014
|
|
|
|
|
|
Reported
|
|
Merger & Acquisition- Related Charges1
|
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
1,051.1
|
|
|
$
|
0.3
|
|
|
|
|
$
|
1,051.4
|
|
|
% of Net Sales
|
|
|
|
|
35.2
|
%
|
|
|
|
|
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
658.3
|
|
|
|
(14.1
|
)
|
|
|
|
$
|
644.2
|
|
|
% of Net Sales
|
|
|
|
|
22.1
|
%
|
|
|
|
|
|
|
21.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
392.8
|
|
|
|
14.4
|
|
|
|
|
|
407.2
|
|
|
% of Net Sales
|
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
265.7
|
|
|
|
39.9
|
|
|
|
|
|
305.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on continuing operations
|
|
|
|
46.7
|
|
|
|
9.1
|
|
|
|
|
|
55.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
|
|
219.3
|
|
|
|
30.8
|
|
|
|
|
|
250.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share of common stock
|
|
|
$
|
1.37
|
|
|
$
|
0.19
|
|
|
|
|
$
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Merger and acquisition-related charges relate primarily to
integration and consulting costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER 2013
|
|
|
|
|
|
Reported
|
|
Merger & Acquisition- Related and
Other Charges2
|
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
1,026.8
|
|
|
$
|
3.1
|
|
|
|
|
$
|
1,029.9
|
|
|
% of Net Sales
|
|
|
|
|
35.6
|
%
|
|
|
|
|
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
696.9
|
|
|
|
(45.8
|
)
|
|
|
|
|
651.1
|
|
|
% of Net Sales
|
|
|
|
|
24.2
|
%
|
|
|
|
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
329.9
|
|
|
|
48.9
|
|
|
|
|
|
378.8
|
|
|
% of Net Sales
|
|
|
|
|
11.5
|
%
|
|
|
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
60.2
|
|
|
|
212.2
|
|
|
|
|
|
272.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense on continuing operations
|
|
|
|
(10.2
|
)
|
|
|
69.9
|
|
|
|
|
|
59.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
|
|
70.5
|
|
|
|
142.3
|
|
|
|
|
|
212.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share of common stock
|
|
|
$
|
0.44
|
|
|
$
|
0.89
|
|
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
Merger and acquisition-related and other charges relate primarily
to the Black & Decker merger and Niscayah and Infastech acquisitions,
including facility closure-related charges, employee-related
charges and integration costs, as well as cost containment charges.
Other charges relate to the loss on extinguishment of debt.
|
3
|
|
The normalized 2014 and 2013 information, as reconciled to GAAP
above, is considered relevant to aid analysis of the Company's margin
and earnings results aside from the material impact of the merger
& acquisition-related and other charges.
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited, Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO DATE 2014
|
|
|
|
|
|
Reported
|
|
|
|
Merger & Acquisition- Related Charges1
|
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
4,102.7
|
|
|
|
|
$
|
1.8
|
|
|
|
|
$
|
4,104.5
|
|
|
% of Net Sales
|
|
|
|
|
36.2
|
%
|
|
|
|
|
|
|
|
|
36.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
2,595.9
|
|
|
|
|
|
(31.6
|
)
|
|
|
|
|
2,564.3
|
|
|
% of Net Sales
|
|
|
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
1,506.8
|
|
|
|
|
|
33.4
|
|
|
|
|
|
1,540.2
|
|
|
% of Net Sales
|
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
1,084.8
|
|
|
|
|
|
53.9
|
|
|
|
|
|
1,138.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on continuing operations
|
|
|
|
227.1
|
|
|
|
|
|
5.2
|
|
|
|
|
|
232.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
|
|
857.2
|
|
|
|
|
|
48.7
|
|
|
|
|
|
905.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share of common stock
|
|
|
$
|
5.37
|
|
|
|
|
$
|
0.30
|
|
|
|
|
$
|
5.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Merger and acquisition-related charges relate primarily to
integration and consulting costs, as well as employee-related
matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO DATE 2013
|
|
|
|
|
|
Reported
|
|
|
|
Merger & Acquisition- Related and
Other Charges2
|
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
3,903.7
|
|
|
|
|
$
|
29.5
|
|
|
|
|
$
|
3,933.2
|
|
|
% of Net Sales
|
|
|
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
36.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
2,690.6
|
|
|
|
|
|
(135.7
|
)
|
|
|
|
|
2,554.9
|
|
|
% of Net Sales
|
|
|
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
1,213.1
|
|
|
|
|
|
165.2
|
|
|
|
|
|
1,378.3
|
|
|
% of Net Sales
|
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
587.6
|
|
|
|
|
|
390.3
|
|
|
|
|
|
977.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on continuing operations
|
|
|
|
68.6
|
|
|
|
|
|
120.0
|
|
|
|
|
|
188.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
|
|
520.0
|
|
|
|
|
|
270.3
|
|
|
|
|
|
790.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share of common stock
|
|
|
$
|
3.28
|
|
|
|
|
$
|
1.70
|
|
|
|
|
$
|
4.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
Merger and acquisition-related and other charges relate primarily
to the Black & Decker merger and Niscayah and Infastech acquisitions,
including facility closure-related charges, employee-related
charges and integration costs, as well as cost containment charges.
Other charges relate to the loss on extinguishment of debt.
|
3
|
|
The normalized 2014 and 2013 information, as reconciled to GAAP
above, is considered relevant to aid analysis of the Company's margin
and earnings results aside from the material impact of the merger
& acquisition-related and other charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited, Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER 2014
|
|
|
|
|
|
Reported
|
|
Merger & Acquisition- Related Charges1
|
|
Normalized3
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
244.5
|
|
|
$
|
0.3
|
|
$
|
244.8
|
|
|
|
Industrial
|
|
|
|
136.7
|
|
|
|
2.2
|
|
|
138.9
|
|
|
|
Security
|
|
|
|
69.7
|
|
|
|
3.1
|
|
|
72.8
|
|
|
|
Segment Profit
|
|
|
|
450.9
|
|
|
|
5.6
|
|
|
456.5
|
|
|
|
Corporate Overhead
|
|
|
|
(58.1
|
)
|
|
|
8.8
|
|
|
(49.3
|
)
|
|
|
Total
|
|
|
$
|
392.8
|
|
|
$
|
14.4
|
|
$
|
407.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
|
16.3
|
%
|
|
|
|
|
16.4
|
%
|
|
|
Industrial
|
|
|
|
15.3
|
%
|
|
|
|
|
15.6
|
%
|
|
|
Security
|
|
|
|
11.7
|
%
|
|
|
|
|
12.2
|
%
|
|
|
Segment Profit
|
|
|
|
15.1
|
%
|
|
|
|
|
15.3
|
%
|
|
|
Corporate Overhead
|
|
|
|
(1.9
|
%)
|
|
|
|
|
(1.7
|
%)
|
|
|
Total
|
|
|
|
13.2
|
%
|
|
|
|
|
13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Merger and acquisition-related charges relate primarily to
integration and consulting costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER 2013
|
|
|
|
|
|
Reported
|
|
Merger & Acquisition- Related Charges2
|
|
Normalized3
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
202.8
|
|
|
$
|
3.8
|
|
$
|
206.6
|
|
|
|
Industrial
|
|
|
|
135.1
|
|
|
|
4.0
|
|
|
139.1
|
|
|
|
Security
|
|
|
|
66.8
|
|
|
|
11.4
|
|
|
78.2
|
|
|
|
Segment Profit
|
|
|
|
404.7
|
|
|
|
19.2
|
|
|
423.9
|
|
|
|
Corporate Overhead
|
|
|
|
(74.8
|
)
|
|
|
29.7
|
|
|
(45.1
|
)
|
|
|
Total
|
|
|
$
|
329.9
|
|
|
$
|
48.9
|
|
$
|
378.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
|
14.5
|
%
|
|
|
|
|
14.8
|
%
|
|
|
Industrial
|
|
|
|
15.3
|
%
|
|
|
|
|
15.8
|
%
|
|
|
Security
|
|
|
|
11.1
|
%
|
|
|
|
|
13.0
|
%
|
|
|
Segment Profit
|
|
|
|
14.0
|
%
|
|
|
|
|
14.7
|
%
|
|
|
Corporate Overhead
|
|
|
|
(2.6
|
%)
|
|
|
|
|
(1.6
|
%)
|
|
|
Total
|
|
|
|
11.5
|
%
|
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
Merger and acquisition-related charges relate primarily to the
Black & Decker merger and Niscayah and Infastech acquisitions,
including facility closure-related charges, employee-related
charges and integration costs.
|
3
|
|
The normalized 2014 and 2013 business segment information, as
reconciled to GAAP above, is considered relevant to aid analysis
of the Company's segment profit results aside from the
material impact of the merger and acquisition-related charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited, Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO DATE 2014
|
|
|
|
|
|
Reported
|
|
|
Merger & Acquisition- Related Charges1
|
|
|
Normalized3
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
871.5
|
|
|
|
$
|
1.0
|
|
|
$
|
872.5
|
|
|
|
Industrial
|
|
|
|
553.5
|
|
|
|
|
6.8
|
|
|
|
560.3
|
|
|
|
Security
|
|
|
|
259.2
|
|
|
|
|
6.9
|
|
|
|
266.1
|
|
|
|
Segment Profit
|
|
|
|
1,684.2
|
|
|
|
|
14.7
|
|
|
|
1,698.9
|
|
|
|
Corporate Overhead
|
|
|
|
(177.4
|
)
|
|
|
|
18.7
|
|
|
|
(158.7
|
)
|
|
|
Total
|
|
|
$
|
1,506.8
|
|
|
|
$
|
33.4
|
|
|
$
|
1,540.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
|
15.7
|
%
|
|
|
|
|
|
|
15.7
|
%
|
|
|
Industrial
|
|
|
|
15.8
|
%
|
|
|
|
|
|
|
16.0
|
%
|
|
|
Security
|
|
|
|
11.4
|
%
|
|
|
|
|
|
|
11.7
|
%
|
|
|
Segment Profit
|
|
|
|
14.9
|
%
|
|
|
|
|
|
|
15.0
|
%
|
|
|
Corporate Overhead
|
|
|
|
(1.6
|
%)
|
|
|
|
|
|
|
(1.4
|
%)
|
|
|
Total
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Merger and acquisition-related charges relate primarily to
integration and consulting costs, as well as employee-related
matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR TO DATE 2013
|
|
|
|
|
|
Reported
|
|
|
Merger & Acquisition- Related Charges2
|
|
|
Normalized3
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
$
|
777.1
|
|
|
|
$
|
13.0
|
|
|
$
|
790.1
|
|
|
|
Industrial
|
|
|
|
456.7
|
|
|
|
|
24.8
|
|
|
|
481.5
|
|
|
|
Security
|
|
|
|
233.3
|
|
|
|
|
38.0
|
|
|
|
271.3
|
|
|
|
Segment Profit
|
|
|
|
1,467.1
|
|
|
|
|
75.8
|
|
|
|
1,542.9
|
|
|
|
Corporate Overhead
|
|
|
|
(254.0
|
)
|
|
|
|
89.4
|
|
|
|
(164.6
|
)
|
|
|
Total
|
|
|
$
|
1,213.1
|
|
|
|
$
|
165.2
|
|
|
$
|
1,378.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
|
Construction & DIY
|
|
|
|
14.7
|
%
|
|
|
|
|
|
|
15.0
|
%
|
|
|
Industrial
|
|
|
|
13.8
|
%
|
|
|
|
|
|
|
14.6
|
%
|
|
|
Security
|
|
|
|
10.1
|
%
|
|
|
|
|
|
|
11.7
|
%
|
|
|
Segment Profit
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
14.2
|
%
|
|
|
Corporate Overhead
|
|
|
|
(2.3
|
%)
|
|
|
|
|
|
|
(1.5
|
%)
|
|
|
Total
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
Merger and acquisition-related charges relate primarily to the
Black & Decker merger and Niscayah and Infastech acquisitions,
including facility closure-related charges, employee-related
charges and integration costs.
|
3
|
|
The normalized 2014 and 2013 business segment information, as
reconciled to GAAP above, is considered relevant to aid analysis
of the Company's segment profit results aside from the
material impact of the merger and acquisition-related charges.
|
[ Back To TMCnet.com's Homepage ]
|