Connecticut | 06-0548860 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title Of Each Class | Trading Symbol(s) | Name Of Each Exchange on Which Registered | |||||||||
Common Stock | $2.50 Par Value per Share | SWK | New York Stock Exchange | ||||||||
Corporate Units | New York Stock Exchange | ||||||||||
Large Accelerated Filer | þ | Accelerated Filer | ¨ | |||||||||||
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ☐ | |||||||||||
Emerging Growth Company | ☐ |
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SIGNATURES | |||||||||||
Owned | Leased | Total | |||
Tools & Storage | 45 | 20 | 65 | ||
Industrial | 15 | 6 | 21 | ||
Security | 1 | 2 | 3 | ||
Corporate | 2 | 1 | 3 | ||
Total | 63 | 29 | 92 |
Owned | Leased | Total | |||||||||||||||
Tools & Storage | 43 | 22 | 65 | ||||||||||||||
Industrial | 15 | 6 | 21 | ||||||||||||||
Security | 1 | 2 | 3 | ||||||||||||||
Corporate | 2 | 1 | 3 | ||||||||||||||
Total | 61 | 31 | 92 |
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | |||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTER: | QUARTER: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First | $ | 138.92 | $ | 115.69 | $ | 0.66 | $ | 175.91 | $ | 150.84 | $ | 0.63 | First | $ | 172.53 | $ | 72.03 | $ | 0.69 | $ | 138.92 | $ | 115.69 | $ | 0.66 | |||||||||||||||||||||||||||||||||||||
Second | $ | 153.08 | $ | 127.22 | $ | 0.66 | $ | 157.38 | $ | 132.81 | $ | 0.63 | Second | $ | 148.23 | $ | 92.13 | $ | 0.69 | $ | 153.08 | $ | 127.22 | $ | 0.66 | |||||||||||||||||||||||||||||||||||||
Third | $ | 152.51 | $ | 128.85 | $ | 0.69 | $ | 154.36 | $ | 131.84 | $ | 0.66 | Third | $ | 166.25 | $ | 135.61 | $ | 0.70 | $ | 152.51 | $ | 128.85 | $ | 0.69 | |||||||||||||||||||||||||||||||||||||
Fourth | $ | 167.76 | $ | 135.09 | $ | 0.69 | $ | 147.51 | $ | 108.45 | $ | 0.66 | Fourth | $ | 190.94 | $ | 161.48 | $ | 0.70 | $ | 167.76 | $ | 135.09 | $ | 0.69 | |||||||||||||||||||||||||||||||||||||
Total | $ | 2.70 | $ | 2.58 | Total | $ | 2.78 | $ | 2.70 |
2020 | Total Number Of Shares Purchased (a) | Average Price Paid Per Share | Total Number Of Shares Purchased As Part Of A Publicly Announced Plan or Program | Maximum Number Of Shares That May Yet Be Purchased Under The Program (b) | ||||||||||||||||||||||
September 27 - October 31 | 3,494 | $ | 175.67 | —�� | 11,450,000 | |||||||||||||||||||||
November 1 - November 28 | 11 | $ | 164.57 | — | 11,450,000 | |||||||||||||||||||||
November 29 - January 2 | 79,591 | $ | 176.76 | — | 11,450,000 | |||||||||||||||||||||
Total | 83,096 | $ | 176.71 | — | 11,450,000 |
2019 | Total Number Of Shares Purchased (a) | Average Price Paid Per Share | Total Number Of Shares Purchased As Part Of A Publicly Announced Plan or Program | Maximum Number Of Shares That May Yet Be Purchased Under The Program (b) | |||||||||
September 29 - November 2 | 6,078 | $ | 146.11 | — | 11,500,000 | ||||||||
November 3 - November 30 | — | $ | — | — | 11,500,000 | ||||||||
December 1 - December 28 | 93,854 | $ | 155.57 | — | 11,500,000 | ||||||||
Total | 99,932 | $ | 154.99 | — | 11,500,000 |
THE POINTS IN THE ABOVE TABLE ARE AS FOLLOWS: | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Stanley Black & Decker | $ | 100.00 | $ | 113.49 | $ | 124.45 | $ | 187.28 | $ | 133.56 | $ | 190.15 | |||||||||||
S&P 500 | $ | 100.00 | $ | 101.40 | $ | 113.51 | $ | 138.29 | $ | 131.08 | $ | 174.29 | |||||||||||
S&P 500 Industrials | $ | 100.00 | $ | 102.95 | $ | 113.41 | $ | 139.18 | $ | 133.88 | $ | 179.13 |
THE POINTS IN THE ABOVE TABLE ARE AS FOLLOWS: | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||
Stanley Black & Decker | $ | 100.00 | $ | 109.65 | $ | 165.01 | $ | 117.68 | $ | 167.54 | $ | 183.69 | |||||||||||||||||||||||
S&P 500 | $ | 100.00 | $ | 111.95 | $ | 136.38 | $ | 129.28 | $ | 171.90 | $ | 202.96 | |||||||||||||||||||||||
S&P 500 Industrials | $ | 100.00 | $ | 110.16 | $ | 135.19 | $ | 130.05 | $ | 174.00 | $ | 213.76 |
(Millions of Dollars, Except Per Share Amounts) | 2019 (a) | 2018 (b) | 2017 (c) | 2016 | 20151 | (Millions of Dollars, Except Per Share Amounts) | 2020 (a) (As Restated) (h) | 2019 (b) (As Restated) (h) | 2018 (c) (As Restated) (h) | 2017 (d) (As Restated) (i) | 2016 | |||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 14,442 | $ | 13,982 | $ | 12,967 | $ | 11,594 | $ | 11,172 | Net sales | $ | 14,535 | $ | 14,442 | $ | 13,982 | $ | 12,967 | $ | 11,594 | |||||||||||||||||||||||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 956 | $ | 605 | $ | 1,227 | $ | 968 | $ | 904 | ||||||||||||||||||||||||||||||||||||||||||
Net loss from discontinued operations(d) | $ | — | $ | — | $ | — | $ | — | $ | (20 | ) | |||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 956 | $ | 605 | $ | 1,227 | $ | 968 | $ | 884 | Net Earnings Attributable to Common Shareowners | $ | 1,210 | $ | 954 | $ | 603 | $ | 1,226 | $ | 968 | |||||||||||||||||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.44 | $ | 4.06 | $ | 8.20 | $ | 6.63 | $ | 6.10 | ||||||||||||||||||||||||||||||||||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | — | $ | — | $ | (0.14 | ) | |||||||||||||||||||||||||||||||||||||||||
Total basic earnings per share | $ | 6.44 | $ | 4.06 | $ | 8.20 | $ | 6.63 | $ | 5.96 | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.35 | $ | 3.99 | $ | 8.05 | $ | 6.53 | $ | 5.92 | ||||||||||||||||||||||||||||||||||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | — | $ | — | $ | (0.13 | ) | |||||||||||||||||||||||||||||||||||||||||
Total diluted earnings per share | $ | 6.35 | $ | 3.99 | $ | 8.05 | $ | 6.53 | $ | 5.79 | ||||||||||||||||||||||||||||||||||||||||||
Percent of net sales (Continuing operations): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | Net Earnings Attributable to Common Shareowners - Diluted | $ | 1,211 | $ | 956 | $ | 604 | $ | 1,226 | $ | 968 | |||||||||||||||||||||||||||||||||||||||||
Earnings per share of common stock: | Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 7.85 | $ | 6.43 | $ | 4.05 | $ | 8.19 | $ | 6.63 | |||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 7.46 | $ | 6.11 | $ | 3.85 | $ | 7.88 | $ | 6.53 | |||||||||||||||||||||||||||||||||||||||||
Percent of net sales: | Percent of net sales: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 66.7 | % | 65.3 | % | 63.1 | % | 63.2 | % | 63.6 | % | Cost of sales | 65.8 | % | 66.7 | % | 65.3 | % | 63.1 | % | 63.2 | % | |||||||||||||||||||||||||||||||
Selling, general and administrative(e) | 21.1 | % | 22.7 | % | 23.1 | % | 22.7 | % | 22.3 | % | Selling, general and administrative(e) | 21.3 | % | 21.1 | % | 22.7 | % | 23.1 | % | 22.7 | % | |||||||||||||||||||||||||||||||
Other, net | 1.7 | % | 2.1 | % | 2.1 | % | 1.6 | % | 2.0 | % | Other, net | 1.8 | % | 1.7 | % | 2.1 | % | 2.1 | % | 1.6 | % | |||||||||||||||||||||||||||||||
Restructuring charges | 1.1 | % | 1.1 | % | 0.4 | % | 0.4 | % | 0.4 | % | Restructuring charges | 0.6 | % | 1.1 | % | 1.1 | % | 0.4 | % | 0.4 | % | |||||||||||||||||||||||||||||||
Interest, net | 1.6 | % | 1.5 | % | 1.4 | % | 1.5 | % | 1.5 | % | Interest, net | 1.4 | % | 1.6 | % | 1.5 | % | 1.4 | % | 1.5 | % | |||||||||||||||||||||||||||||||
Earnings before income taxes and equity interest | 7.8 | % | 7.3 | % | 11.8 | % | 10.6 | % | 10.3 | % | Earnings before income taxes and equity interest | 8.7 | % | 7.8 | % | 7.3 | % | 11.8 | % | 10.6 | % | |||||||||||||||||||||||||||||||
Net earnings from continuing operations attributable to common shareowners | 6.6 | % | 4.3 | % | 9.5 | % | 8.3 | % | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | Net Earnings Attributable to Common Shareowners | 8.3 | % | 6.6 | % | 4.3 | % | 9.5 | % | 8.3 | % | |||||||||||||||||||||||||||||||||||||||||
Balance sheet data: | Balance sheet data: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets(f) | $ | 20,597 | $ | 19,408 | $ | 19,098 | $ | 15,655 | $ | 15,128 | Total assets(f) | $ | 23,566 | $ | 20,597 | $ | 19,408 | $ | 19,098 | $ | 15,655 | |||||||||||||||||||||||||||||||
Long-term debt, including current maturities | $ | 3,180 | $ | 3,822 | $ | 3,806 | $ | 3,806 | $ | 3,797 | Long-term debt, including current maturities | $ | 4,245 | $ | 3,180 | $ | 3,822 | $ | 3,806 | $ | 3,806 | |||||||||||||||||||||||||||||||
Stanley Black & Decker, Inc.’s shareowners’ equity | $ | 9,136 | $ | 7,836 | $ | 8,302 | $ | 6,374 | $ | 5,816 | Stanley Black & Decker, Inc.’s shareowners’ equity | $ | 11,060 | $ | 9,136 | $ | 7,836 | $ | 8,302 | $ | 6,374 | |||||||||||||||||||||||||||||||
Ratios: | Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt to total capital | 27.8 | % | 34.9 | % | 31.5 | % | 37.4 | % | 39.5 | % | Total debt to total capital | 27.7 | % | 27.8 | % | 34.9 | % | 31.5 | % | 37.4 | % | |||||||||||||||||||||||||||||||
Income tax rate - continuing operations | 14.2 | % | 40.7 | % | 19.7 | % | 21.3 | % | 21.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Income tax rate | Income tax rate | 3.3 | % | 14.2 | % | 40.7 | % | 19.7 | % | 21.3 | % | |||||||||||||||||||||||||||||||||||||||||
Common stock data: | Common stock data: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends per share | $ | 2.70 | $ | 2.58 | $ | 2.42 | $ | 2.26 | $ | 2.14 | Dividends per share | $ | 2.78 | $ | 2.70 | $ | 2.58 | $ | 2.42 | $ | 2.26 | |||||||||||||||||||||||||||||||
Equity per basic share at year-end | $ | 60.97 | $ | 53.07 | $ | 55.20 | $ | 42.80 | $ | 39.11 | Equity per basic share at year-end | $ | 70.40 | $ | 60.97 | $ | 53.07 | $ | 55.20 | $ | 42.80 | |||||||||||||||||||||||||||||||
Market price per share — high | $ | 167.76 | $ | 175.91 | $ | 170.03 | $ | 125.78 | $ | 110.17 | Market price per share — high | $ | 190.94 | $ | 167.76 | $ | 175.91 | $ | 170.03 | $ | 125.78 | |||||||||||||||||||||||||||||||
Market price per share — low | $ | 115.69 | $ | 108.45 | $ | 115.75 | $ | 90.14 | $ | 90.51 | Market price per share — low | $ | 72.03 | $ | 115.69 | $ | 108.45 | $ | 115.75 | $ | 90.14 | |||||||||||||||||||||||||||||||
Weighted-average shares outstanding (in 000’s): | Weighted-average shares outstanding (in 000’s): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 148,365 | 148,919 | 149,629 | 146,041 | 148,234 | Basic | 154,176 | 148,365 | 148,919 | 149,629 | 146,041 | |||||||||||||||||||||||||||||||||||||||||
Diluted | 150,558 | 151,643 | 152,449 | 148,207 | 152,706 | Diluted | 162,427 | 156,381 | 156,780 | 155,573 | 148,207 | |||||||||||||||||||||||||||||||||||||||||
Other information: | Other information: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average number of employees | 61,755 | 60,785 | 57,076 | 53,231 | 51,815 | |||||||||||||||||||||||||||||||||||||||||||||||
Average number of employees(g) | Average number of employees(g) | 62,606 | 61,755 | 60,785 | 57,076 | 53,231 | ||||||||||||||||||||||||||||||||||||||||||||||
Shareowners of record at end of year | 9,360 | 9,727 | 10,014 | 10,313 | 10,603 | Shareowners of record at end of year | 9,064 | 9,360 | 9,727 | 10,014 | 10,313 |
(c)The Company's 2018 results include $450 million of pre-tax charges related to acquisitions, an environmental remediation settlement, a non-cash fair value adjustment, a cost reduction program, an incremental freight charge related to a service provider's bankruptcy, and a loss related to a previously divested business. As a result, as a percentage of Net sales, Cost of sales was 47 basis points higher, Selling, general, & administrative was 113 basis points higher, Other, net was 77 basis points higher, Restructuring charges was 84 basis points higher, and Earnings before income taxes was 322 basis points lower. The Company also recorded a net tax charge of $181 million, which is comprised of charges related to the Tax Cuts and Jobs Act ("the Act"), partially offset by the tax benefit of the above pre-tax charges. Overall, the amounts described above resulted in a decrease to the Company's 2018 Net earnings attributable to common shareowners of $631 million (or $4.03 per diluted share). |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net sales | $ | 10,330 | $ | 10,062 | $ | 9,814 | |||||||||||
Segment profit | $ | 1,842 | $ | 1,533 | $ | 1,393 | |||||||||||
% of Net sales | 17.8 | % | 15.2 | % | 14.2 | % |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 10,062 | $ | 9,814 | $ | 9,045 | |||||
Segment profit | $ | 1,533 | $ | 1,393 | $ | 1,439 | |||||
% of Net sales | 15.2 | % | 14.2 | % | 15.9 | % |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net sales | $ | 2,353 | $ | 2,435 | $ | 2,188 | |||||||||||
Segment profit | $ | 226 | $ | 334 | $ | 320 | |||||||||||
% of Net sales | 9.6 | % | 13.7 | % | 14.6 | % |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 2,435 | $ | 2,188 | $ | 1,974 | |||||
Segment profit | $ | 334 | $ | 320 | $ | 346 | |||||
% of Net sales | 13.7 | % | 14.6 | % | 17.5 | % |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 1,945 | $ | 1,981 | $ | 1,947 | |||||
Segment profit | $ | 127 | $ | 169 | $ | 212 | |||||
% of Net sales | 6.5 | % | 8.5 | % | 10.9 | % |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net sales | $ | 1,852 | $ | 1,945 | $ | 1,981 | |||||||||||
Segment profit | $ | 109 | $ | 127 | $ | 169 | |||||||||||
% of Net sales | 5.9 | % | 6.5 | % | 8.5 | % |
(Millions of Dollars) | December 28, 2019 | Net Additions | Usage | Currency | January 2, 2021 | ||||||||||||||||||||||||
Severance and related costs | $ | 140.3 | $ | 63.9 | $ | (111.0) | $ | (5.7) | $ | 87.5 | |||||||||||||||||||
Facility closures and asset impairments | 7.5 | 19.1 | (23.9) | — | 2.7 | ||||||||||||||||||||||||
Total | $ | 147.8 | $ | 83.0 | $ | (134.9) | $ | (5.7) | $ | 90.2 |
(Millions of Dollars) | December 29, 2018 | Net Additions | Usage | Currency | December 28, 2019 | ||||||||||||||
Severance and related costs | $ | 105.7 | $ | 131.9 | $ | (97.4 | ) | $ | 0.1 | $ | 140.3 | ||||||||
Facility closures and asset impairments | 3.1 | 22.2 | (17.9 | ) | 0.1 | 7.5 | |||||||||||||
Total | $ | 108.8 | $ | 154.1 | $ | (115.3 | ) | $ | 0.2 | $ | 147.8 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net cash provided by operating activities | $ | 2,022 | $ | 1,506 | $ | 1,261 | |||||||||||
Less: capital and software expenditures | (348) | (425) | (492) | ||||||||||||||
Free cash flow | $ | 1,674 | $ | 1,081 | $ | 769 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net cash provided by operating activities | $ | 1,506 | $ | 1,261 | $ | 669 | |||||
Less: capital and software expenditures | (425 | ) | (492 | ) | (443 | ) | |||||
Free cash flow | $ | 1,081 | $ | 769 | $ | 226 |
Payments Due by Period | ||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Total | 2020 | 2021-2022 | 2023-2024 | Thereafter | (Millions of Dollars) | Total | 2021 | 2022-2023 | 2024-2025 | Thereafter | |||||||||||||||||||||||||||||||||||||
Long-term debt (a) | $ | 4,704 | $ | — | $ | 1,154 | $ | — | $ | 3,550 | Long-term debt (a) | $ | 4,300 | $ | — | $ | — | $ | — | $ | 4,300 | |||||||||||||||||||||||||||
Interest payments on long-term debt (b) | 2,224 | 177 | 340 | 282 | 1,425 | Interest payments on long-term debt (b) | 3,363 | 161 | 324 | 324 | 2,554 | |||||||||||||||||||||||||||||||||||||
Short-term borrowings | 336 | 336 | — | — | — | Short-term borrowings | 2 | 2 | — | — | — | |||||||||||||||||||||||||||||||||||||
Lease obligations | 607 | 144 | 193 | 113 | 157 | Lease obligations | 599 | 141 | 192 | 118 | 148 | |||||||||||||||||||||||||||||||||||||
Inventory purchase commitments (c) | 523 | 523 | — | — | — | Inventory purchase commitments (c) | 545 | 545 | — | — | — | |||||||||||||||||||||||||||||||||||||
Deferred compensation | 30 | 4 | 1 | 1 | 24 | Deferred compensation | 28 | 1 | 1 | 1 | 25 | |||||||||||||||||||||||||||||||||||||
Marketing commitments | 34 | 25 | 9 | — | — | Marketing commitments | 39 | 27 | 12 | — | — | |||||||||||||||||||||||||||||||||||||
Derivatives (d) | 41 | — | 41 | — | — | Derivatives (d) | 177 | 174 | 3 | — | — | |||||||||||||||||||||||||||||||||||||
Forward stock purchase contract (e) | 350 | — | 350 | — | — | Forward stock purchase contract (e) | 350 | — | 350 | — | — | |||||||||||||||||||||||||||||||||||||
Pension funding obligations (f) | 38 | 38 | — | — | — | Pension funding obligations (f) | 41 | 41 | — | — | — | |||||||||||||||||||||||||||||||||||||
Contract adjustment fees (g) | 138 | 59 | 79 | — | — | Contract adjustment fees (g) | 78 | 39 | 39 | — | — | |||||||||||||||||||||||||||||||||||||
Purchase price (h) | 250 | 250 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
U.S. income tax (i) | 344 | 9 | 70 | 153 | 112 | |||||||||||||||||||||||||||||||||||||||||||
U.S. income tax (h) | U.S. income tax (h) | 325 | 35 | 91 | 197 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 9,619 | $ | 1,565 | $ | 2,237 | $ | 549 | $ | 5,268 | Total contractual cash obligations | $ | 9,847 | $ | 1,166 | $ | 1,012 | $ | 640 | $ | 7,029 |
(a)Future payments on long-term debt encompass all payments related to aggregate debt maturities, excluding certain fair value adjustments included in long-term debt, as discussed further in |
Amount of Commitment Expirations Per Period | ||||||||||||||||||||
(Millions of Dollars) | Total | 2020 | 2021-2022 | 2023-2024 | Thereafter | |||||||||||||||
U.S. lines of credit | $ | 3,000 | $ | 1,000 | $ | — | $ | 2,000 | $ | — |
Amount of Commitment Expirations Per Period | ||||||||||||||||||||||||||||||||
(Millions of Dollars) | Total | 2021 | 2022-2023 | 2024-2025 | Thereafter | |||||||||||||||||||||||||||
U.S. lines of credit | $ | 3,000 | $ | 1,000 | $ | 2,000 | $ | — | $ | — |
Name and Age | Office | Date Elected to Office | ||||||||||||
James M. Loree | President & Chief Executive Officer since August 2016. President & Chief Operating Officer (2013); Executive Vice President and Chief Operating Officer (2009); Executive Vice President Finance and Chief Financial Officer (1999). | 7/19/1999 | ||||||||||||
Donald Allan, Jr. | Executive Vice President & Chief Financial Officer since October 2016. Senior Vice President & Chief Financial Officer (2010); Vice President & Chief Financial Officer (2009); Vice President & Corporate Controller (2002); Corporate Controller (2000); Assistant Controller (1999). | 10/24/2006 | ||||||||||||
Jeffery D. Ansell | Executive Vice President, Stanley Black & Decker since July 2020. Executive Vice President & President, Tools & Storage | 2/22/2006 | ||||||||||||
Janet M. Link (51) | Senior Vice President, General Counsel and Secretary since July 2017. Executive Vice President, General Counsel, JC Penney Company, Inc. (2015); Vice President, Deputy General Counsel, JC Penney Company, Inc. (2014); Vice President, Deputy General Counsel, Clear Channel Companies (2013). | 7/19/2017 | ||||||||||||
Jaime A. Ramirez | Executive Vice President & President, Global Tools & Storage since July 2020. Senior Vice President & Chief Operating Officer, Tools & Storage | 3/12/2010 | ||||||||||||
Senior Vice President | ||||||||||||||
President, Stanley Engineered Fastening | 3/12/2010 | |||||||||||||
Robert H. Raff | President, Stanley Security since November 2016. President, Stanley Electronic Security North America (2015); President, North America Sales, Construction & DIY (2010); President, Stanley National Hardware (2007); Vice President of Latin America, Construction & DIY (2005); General Manager, Construction & DIY (2002). | 4/19/2018 | ||||||||||||
Robert Blackburn | Senior Vice President of Global Operations since May | 5/6/2019 | ||||||||||||
Graham N. Robinson (52) | Senior Vice President & President, Stanley Industrial since April 2020. President, Honeywell Industrial Safety (Honeywell International) (2018); President, Honeywell Sensing and Internet of Things (Honeywell International) (2016); Chief Marketing Officer and Vice President, Global Strategy & Marketing, Automation and Control Solutions (Honeywell International) (2014). | 4/17/2020 | ||||||||||||
Stephen Subasic (52) | Senior Vice President, Chief Human Resources Officer since January 2021. Vice President, Human Resources & Corporate Talent Management (2019); Vice President, Human Resources, Global Tools & Storage (2015); Vice President, Human Resources, Construction & DIY (2011). | 2/18/2021 |
(A) | (B) | (C) | |||||||||||||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options and stock awards | Weighted-average exercise price of outstanding options | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) | ||||||||||||||||||||
Equity compensation plans approved by security holders | 8,004,647 | (1) | $ | 138.84 | (2) | 9,594,743 | (3) | ||||||||||||||||
Equity compensation plans not approved by security holders (4) | — | — | — | ||||||||||||||||||||
Total | 8,004,647 | $ | 138.84 | 9,594,743 |
(A) | (B) | (C) | |||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options and stock awards | Weighted-average exercise price of outstanding options | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) | ||||||||
Equity compensation plans approved by security holders | 8,768,923 | (1) | $ | 122.42 | (2) | 12,924,290 | (3) | ||||
Equity compensation plans not approved by security holders (4) | — | — | — | ||||||||
Total | 8,768,923 | $ | 122.42 | 12,924,290 |
(4)U.S. employees are eligible to contribute from 1% to 25% of their salary to a qualified tax deferred savings plan as described in the Employee Stock Ownership Plan ("ESOP") section of Note L, Employee Benefit Plans, of the Notes to the Consolidated Financial Statements in Item 8. The Company contributes an amount equal to one half of the employee contribution up to the first 7% of salary. There is a non-qualified tax deferred savings plan for highly compensated salaried employees which mirrors the qualified plan provisions, but was not specifically approved by security holders. Eligible highly compensated salaried U.S. employees are eligible to contribute from 1% to 50% of their salary to the non-qualified tax deferred savings plan. The same matching arrangement was provided for highly compensated salaried employees in the non-qualified plan, to the extent the match was not fully met in the qualified plan, except that the arrangement for these employees is outside of the ESOP, and is not funded in advance of distributions. Effective January 1, 2019, the Company, at its discretion, will determine whether matching and core contributions will be made for the non-qualified tax deferred savings plan for a particular year. If the Company decides to make matching contributions for a year, it will make contributions, in an amount determined in its discretion, that may constitute part or all of or more than the matching contributions that would have been made pursuant to the |
Schedule II — Valuation and Qualifying Accounts is included in Item 15 (page | ||
Management’s Report on Internal Control Over Financial Reporting (page | ||
Report of Independent Registered Public Accounting Firm — Financial Statement Opinion (page | ||
Report of Independent Registered Public Accounting Firm — Internal Control Opinion (page | ||
Consolidated Statements of Operations — fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 | ||
Consolidated Statements of Comprehensive Income — fiscal years ended | ||
Consolidated Balance Sheets — January 2, 2021 and December 28, 2019 (page 74). | ||
Consolidated Statements of Cash Flows — fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 | ||
Consolidated Statements of Changes in Shareowners’ Equity — fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 | ||
Notes to Consolidated Financial Statements (page | ||
Selected Quarterly Financial Data (Unaudited) (page | ||
Consent of Independent Registered Public Accounting Firm (Exhibit 23). |
STANLEY BLACK & DECKER, INC. | |||||||||||||
By: | /s/ James M. Loree | ||||||||||||
Date: | |||||||||||||
January 31, 2022 |
64 |
ADDITIONS | |||||||||||||||||||
Beginning Balance | Charged To Costs And Expenses | Charged To Other Accounts (b) | (a) Deductions | Ending Balance | |||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||||
Year Ended 2019 | $ | 102.0 | $ | 33.0 | $ | 5.9 | $ | (28.5 | ) | $ | 112.4 | ||||||||
Year Ended 2018 | $ | 80.4 | $ | 28.0 | $ | 12.5 | $ | (18.9 | ) | $ | 102.0 | ||||||||
Year Ended 2017 | $ | 78.5 | $ | 16.3 | $ | 8.9 | $ | (23.3 | ) | $ | 80.4 | ||||||||
Tax Valuation Allowance: | |||||||||||||||||||
Year Ended 2019 (c) | $ | 626.7 | $ | 461.5 | $ | (0.5 | ) | $ | (22.7 | ) | $ | 1,065.0 | |||||||
Year Ended 2018 | $ | 516.7 | $ | 146.2 | $ | (6.4 | ) | $ | (29.8 | ) | $ | 626.7 | |||||||
Year Ended 2017 | $ | 525.5 | $ | 262.4 | $ | 22.8 | $ | (294.0 | ) | $ | 516.7 |
ADDITIONS | |||||||||||||||||||||||||||||
Beginning Balance | Charged To Costs And Expenses | Charged To Other Accounts (b) | (a) Deductions | Ending Balance | |||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||
Year Ended 2020 | $ | 112.4 | $ | 41.1 | $ | 23.7 | $ | (36.1) | $ | 141.1 | |||||||||||||||||||
Year Ended 2019 | $ | 102.0 | $ | 33.0 | $ | 5.9 | $ | (28.5) | $ | 112.4 | |||||||||||||||||||
Year Ended 2018 | $ | 80.4 | $ | 28.0 | $ | 12.5 | $ | (18.9) | $ | 102.0 | |||||||||||||||||||
Tax Valuation Allowance: | |||||||||||||||||||||||||||||
Year Ended 2020 (c) | $ | 1,065.0 | $ | 312.0 | $ | (8.6) | $ | (309.5) | $ | 1,058.9 | |||||||||||||||||||
Year Ended 2019 | $ | 626.7 | $ | 461.5 | $ | (0.5) | $ | (22.7) | $ | 1,065.0 | |||||||||||||||||||
Year Ended 2018 | $ | 516.7 | $ | 146.2 | $ | (6.4) | $ | (29.8) | $ | 626.7 |
(a)With respect to the allowance for credit losses, deductions represent amounts charged-off less recoveries of accounts previously charged-off. |
/s/ James M. Loree | |||||
James M. Loree, |
/s/ Donald Allan, Jr. | |||||
Donald Allan, Jr., |
Accounting for Acquisition of | ||||||||
Description of the Matter | As discussed in Note E of the consolidated financial statements, the Company acquired the Auditing the Company's accounting for the acquired intangible assets involved subjective auditor judgment due to the significant estimation required in management’s determination of the fair value of |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s accounting for business combinations. Our audit procedures included, among other procedures, testing controls over the valuation of To test the estimated fair value of the | |||||||
Annual Test of Impairment of Goodwill in the Infrastructure Reporting Unit | ||||||||
Description of the Matter | At Auditing management’s annual goodwill impairment test for the Infrastructure reporting unit was challenging and highly judgmental due to the significant estimation |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the determination of fair value, including the significant assumption of revenue growth discussed above, used in the Infrastructure goodwill impairment analysis.Our audit procedures included, among other procedures, testing controls over the Company’s budgetary process and management’s review of that information. To test the estimated fair value of the Infrastructure reporting unit, we performed audit procedures that included, among other procedures, assessing the Company’s methodologies and testing the | |||||||
Uncertain Tax Positions |
Description of the Matter | At Auditing the measurement and determination of whether a tax position is more likely than not to be upheld under examination is challenging and subjective due to the Company’s global operations, the many tax jurisdictions in which it operates, the distinctive nature and unique facts and circumstances of each tax position and the interpretations of tax law and legal rulings. Many of these same factors also make it challenging to audit the completeness of the uncertain tax reserves. | |||||||
How We Addressed the Matter in Our Audit | We identified and tested controls around the Company’s judgments and determinations on tax positions, including the Company’s process to verify that all uncertain tax positions are identified and considered as part of the analysis, controls addressing completeness of the uncertain tax positions and the determination of the more-likely-than-not amount of the positions to be upheld. With the support of our tax professionals, we performed an evaluation of the Company’s estimates with respect to uncertain tax positions including the technical merits of the Company’s tax positions. This included assessing the Company’s analysis of jurisdictions with potential tax liabilities and other international tax considerations. We considered the Company’s judgments and the factors involved with each significant tax position. To support our evaluation, we used our knowledge of, and experience with, the application of international and local income tax laws by the relevant income tax authorities to evaluate the Company’s accounting for those tax positions. We analyzed the Company’s assumptions and data used to determine the amount of tax benefit to recognize and tested the completeness and accuracy of the data used to determine the amount of tax benefits recognized and tested the accuracy of such calculations. We also evaluated the Company’s income tax disclosures included in Note Q to the consolidated financial statements in relation to these matters. |
2020 | 2019 | 2018 | |||||||||||||||
(As Restated) (1) | (As Restated) (1) | (As Restated) (1) | |||||||||||||||
Net Sales | $ | 14,534.6 | $ | 14,442.2 | $ | 13,982.4 | |||||||||||
Costs and Expenses | |||||||||||||||||
Cost of sales | $ | 9,566.7 | $ | 9,636.7 | $ | 9,131.3 | |||||||||||
Selling, general and administrative | 3,048.5 | 3,008.0 | 3,143.7 | ||||||||||||||
Provision for credit losses | 41.1 | 33.0 | 28.0 | ||||||||||||||
Other, net | 262.8 | 249.1 | 287.0 | ||||||||||||||
Loss (gain) on sales of businesses | 13.5 | (17.0) | 0.8 | ||||||||||||||
Restructuring charges | 83.0 | 154.1 | 160.3 | ||||||||||||||
Loss on debt extinguishments | 46.9 | 17.9 | — | ||||||||||||||
Interest income | (18.0) | (53.9) | (68.7) | ||||||||||||||
Interest expense | 223.1 | 284.3 | 277.9 | ||||||||||||||
$ | 13,267.6 | $ | 13,312.2 | $ | 12,960.3 | ||||||||||||
Earnings before income taxes and equity interest | 1,267.0 | 1,130.0 | 1,022.1 | ||||||||||||||
Income taxes | 41.4 | 160.8 | 416.3 | ||||||||||||||
Net earnings before equity interest | $ | 1,225.6 | $ | 969.2 | $ | 605.8 | |||||||||||
Share of net earnings (losses) of equity method investment | 9.1 | (11.2) | — | ||||||||||||||
Net earnings | $ | 1,234.7 | $ | 958.0 | $ | 605.8 | |||||||||||
Less: Net earnings attributable to non-controlling interests | 0.9 | 2.2 | 0.6 | ||||||||||||||
Net earnings attributable to Stanley Black & Decker, Inc. | $ | 1,233.8 | $ | 955.8 | $ | 605.2 | |||||||||||
Less: Preferred stock dividends and beneficial conversion feature | 24.1 | 1.8 | 1.8 | ||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,209.7 | $ | 954.0 | $ | 603.4 | |||||||||||
Add: Contract adjustment payments accretion | 1.7 | 1.7 | 0.9 | ||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 1,211.4 | $ | 955.7 | $ | 604.3 | |||||||||||
Earnings per share of common stock: | |||||||||||||||||
Basic | $ | 7.85 | $ | 6.43 | $ | 4.05 | |||||||||||
Diluted | $ | 7.46 | $ | 6.11 | $ | 3.85 |
2019 | 2018 | 2017 | |||||||||
Net Sales | $ | 14,442.2 | $ | 13,982.4 | $ | 12,966.6 | |||||
Costs and Expenses | |||||||||||
Cost of sales | $ | 9,636.7 | $ | 9,131.3 | $ | 8,188.3 | |||||
Selling, general and administrative | 3,008.0 | 3,143.7 | 2,982.9 | ||||||||
Provision for doubtful accounts | 33.0 | 28.0 | 16.3 | ||||||||
Other, net | 249.1 | 287.0 | 269.2 | ||||||||
(Gain) loss on sales of businesses | (17.0 | ) | 0.8 | (264.1 | ) | ||||||
Pension settlement | — | — | 12.2 | ||||||||
Restructuring charges | 154.1 | 160.3 | 51.5 | ||||||||
Loss on debt extinguishment | 17.9 | — | — | ||||||||
Interest income | (53.9 | ) | (68.7 | ) | (40.1 | ) | |||||
Interest expense | 284.3 | 277.9 | 222.6 | ||||||||
$ | 13,312.2 | $ | 12,960.3 | $ | 11,438.8 | ||||||
Earnings before income taxes and equity interest | 1,130.0 | 1,022.1 | 1,527.8 | ||||||||
Income taxes | 160.8 | 416.3 | 300.9 | ||||||||
Net earnings before equity interest | $ | 969.2 | $ | 605.8 | $ | 1,226.9 | |||||
Share of net loss of equity method investment | $ | (11.2 | ) | $ | — | $ | — | ||||
Net earnings | $ | 958.0 | $ | 605.8 | $ | 1,226.9 | |||||
Less: Net earnings (loss) attributable to non-controlling interests | 2.2 | 0.6 | (0.4 | ) | |||||||
Net Earnings Attributable to Common Shareowners | $ | 955.8 | $ | 605.2 | $ | 1,227.3 | |||||
Earnings per share of common stock: | |||||||||||
Basic | $ | 6.44 | $ | 4.06 | $ | 8.20 | |||||
Diluted | $ | 6.35 | $ | 3.99 | $ | 8.05 |
2020 | 2019 | 2018 | |||||||||||||||
(As Restated) (1) | (As Restated) (1) | (As Restated) (1) | |||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,209.7 | $ | 954.0 | $ | 603.4 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Currency translation adjustment and other | 281.9 | (36.0) | (373.0) | ||||||||||||||
(Losses) gains on cash flow hedges, net of tax | (48.8) | (27.4) | 85.8 | ||||||||||||||
(Losses) gains on net investment hedges, net of tax | (24.5) | 34.0 | 59.9 | ||||||||||||||
Pension (losses) gains, net of tax | (37.7) | (40.9) | 2.1 | ||||||||||||||
Other comprehensive income (loss) | $ | 170.9 | $ | (70.3) | $ | (225.2) | |||||||||||
Comprehensive income attributable to common shareowners | $ | 1,380.6 | $ | 883.7 | $ | 378.2 |
2019 | 2018 | 2017 | |||||||||
Net Earnings Attributable to Common Shareowners | $ | 955.8 | $ | 605.2 | $ | 1,227.3 | |||||
Other comprehensive (loss) income: | |||||||||||
Currency translation adjustment and other | (36.0 | ) | (373.0 | ) | 478.5 | ||||||
Unrealized (losses) gains on cash flow hedges, net of tax | (27.4 | ) | 85.8 | (66.3 | ) | ||||||
Unrealized gains (losses) on net investment hedges, net of tax | 34.0 | 59.9 | (85.2 | ) | |||||||
Pension (losses) gains, net of tax | (40.9 | ) | 2.1 | 5.5 | |||||||
Other comprehensive (loss) income | $ | (70.3 | ) | $ | (225.2 | ) | $ | 332.5 | |||
Comprehensive income attributable to common shareowners | $ | 885.5 | $ | 380.0 | $ | 1,559.8 |
2020 | 2019 | ||||||||||
(As Restated) (1) | (As Restated) (1) | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 1,381.0 | $ | 297.7 | |||||||
Accounts and notes receivable, net | 1,512.2 | 1,454.6 | |||||||||
Inventories, net | 2,737.4 | 2,255.0 | |||||||||
Prepaid expenses | 370.7 | 395.4 | |||||||||
Other current assets | 34.7 | 53.9 | |||||||||
Total Current Assets | 6,036.0 | 4,456.6 | |||||||||
Property, Plant and Equipment, net | 2,053.8 | 1,959.5 | |||||||||
Goodwill | 10,038.1 | 9,237.5 | |||||||||
Customer Relationships, net | 1,735.1 | 1,317.3 | |||||||||
Trade Names, net | 2,277.3 | 2,253.6 | |||||||||
Other Intangible Assets, net | 43.0 | 51.1 | |||||||||
Other Assets | 1,383.0 | 1,321.0 | |||||||||
Total Assets | $ | 23,566.3 | $ | 20,596.6 | |||||||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Short-term borrowings | $ | 1.5 | $ | 337.3 | |||||||
Current maturities of long-term debt | — | 3.1 | |||||||||
Accounts payable | 2,446.4 | 2,087.8 | |||||||||
Accrued expenses | 2,110.4 | 1,977.5 | |||||||||
Total Current Liabilities | 4,558.3 | 4,405.7 | |||||||||
Long-Term Debt | 4,245.4 | 3,176.4 | |||||||||
Deferred Taxes | 568.0 | 731.2 | |||||||||
Post-Retirement Benefits | 642.6 | 609.4 | |||||||||
Other Liabilities | 2,485.6 | 2,531.7 | |||||||||
Commitments and Contingencies (Notes R and S) | 0 | 0 | |||||||||
Shareowners’ Equity | |||||||||||
Stanley Black & Decker, Inc. Shareowners’ Equity | |||||||||||
Preferred stock, without par value: Authorized 10,000,000 shares in 2020 and 2019 Issued and outstanding 1,500,000 shares in 2020 and 2019 | 1,370.3 | 1,230.0 | |||||||||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2020 and 2019 Issued 176,902,738 shares in 2020 and 2019 | 442.3 | 442.3 | |||||||||
Retained earnings | 7,542.2 | 6,768.1 | |||||||||
Additional paid in capital | 4,967.8 | 4,767.6 | |||||||||
Accumulated other comprehensive loss | (1,713.7) | (1,884.6) | |||||||||
ESOP | — | (2.3) | |||||||||
12,608.9 | 11,321.1 | ||||||||||
Less: cost of common stock in treasury (16,150,476 shares in 2020 and 23,396,329 shares in 2019) | (1,549.3) | (2,184.8) | |||||||||
Stanley Black & Decker, Inc. Shareowners’ Equity | 11,059.6 | 9,136.3 | |||||||||
Non-controlling interests | 6.8 | 5.9 | |||||||||
Total Shareowners’ Equity | 11,066.4 | 9,142.2 | |||||||||
Total Liabilities and Shareowners’ Equity | $ | 23,566.3 | $ | 20,596.6 |
2019 | 2018 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 297.7 | $ | 288.7 | |||
Accounts and notes receivable, net | 1,454.6 | 1,607.8 | |||||
Inventories, net | 2,255.0 | 2,373.5 | |||||
Prepaid expenses | 395.4 | 240.5 | |||||
Other current assets | 53.9 | 58.9 | |||||
Total Current Assets | 4,456.6 | 4,569.4 | |||||
Property, Plant and Equipment, net | 1,959.5 | 1,915.2 | |||||
Goodwill | 9,237.5 | 8,956.7 | |||||
Customer Relationships, net | 1,317.3 | 1,165.2 | |||||
Trade Names, net | 2,253.6 | 2,254.8 | |||||
Other Intangible Assets, net | 51.1 | 64.4 | |||||
Other Assets | 1,321.0 | 482.3 | |||||
Total Assets | $ | 20,596.6 | $ | 19,408.0 | |||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||
Current Liabilities | |||||||
Short-term borrowings | $ | 337.3 | $ | 376.1 | |||
Current maturities of long-term debt | 3.1 | 2.5 | |||||
Accounts payable | 2,087.8 | 2,233.2 | |||||
Accrued expenses | 1,977.5 | 1,389.8 | |||||
Total Current Liabilities | 4,405.7 | 4,001.6 | |||||
Long-Term Debt | 3,176.4 | 3,819.8 | |||||
Deferred Taxes | 731.2 | 705.3 | |||||
Post-Retirement Benefits | 609.4 | 595.4 | |||||
Other Liabilities | 2,531.7 | 2,446.0 | |||||
Commitments and Contingencies (Notes R and S) | |||||||
Shareowners’ Equity | |||||||
Stanley Black & Decker, Inc. Shareowners’ Equity | |||||||
Preferred stock, without par value: Authorized 10,000,000 shares in 2019 and 2018 Issued and outstanding 1,500,000 shares in 2019 and 750,000 shares in 2018 | 1,500.0 | 750.0 | |||||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2019 and 2018 Issued 176,902,738 shares in 2019 and 2018 | 442.3 | 442.3 | |||||
Retained earnings | 6,772.8 | 6,219.0 | |||||
Additional paid in capital | 4,492.9 | 4,621.0 | |||||
Accumulated other comprehensive loss | (1,884.6 | ) | (1,814.3 | ) | |||
ESOP | (2.3 | ) | (10.5 | ) | |||
11,321.1 | 10,207.5 | ||||||
Less: cost of common stock in treasury (23,396,329 shares in 2019 and 25,600,288 shares in 2018) | (2,184.8 | ) | (2,371.3 | ) | |||
Stanley Black & Decker, Inc. Shareowners’ Equity | 9,136.3 | 7,836.2 | |||||
Non-controlling interests | 5.9 | 3.7 | |||||
Total Shareowners’ Equity | 9,142.2 | 7,839.9 | |||||
Total Liabilities and Shareowners’ Equity | $ | 20,596.6 | $ | 19,408.0 |
2020 | 2019 | 2018 | |||||||||||||||
(As Restated) (1) | |||||||||||||||||
Operating Activities: | |||||||||||||||||
Net earnings | $ | 1,234.7 | $ | 958.0 | $ | 605.8 | |||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization of property, plant and equipment | 376.5 | 372.8 | 331.2 | ||||||||||||||
Amortization of intangibles | 201.6 | 187.4 | 175.3 | ||||||||||||||
Inventory step-up amortization | 29.0 | 7.4 | 9.6 | ||||||||||||||
Loss (gain) on sales of businesses | 13.5 | (17.0) | 0.8 | ||||||||||||||
Loss on debt extinguishments | 46.9 | 17.9 | — | ||||||||||||||
Stock-based compensation expense | 109.1 | 88.8 | 76.5 | ||||||||||||||
Provision for credit losses | 41.1 | 33.0 | 28.0 | ||||||||||||||
Share of net (earnings) losses of equity method investment | (9.1) | 11.2 | — | ||||||||||||||
Deferred tax (benefit) expense | (241.7) | (17.9) | 191.1 | ||||||||||||||
Other non-cash items | 44.7 | (13.8) | 10.1 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (39.6) | 137.8 | (48.8) | ||||||||||||||
Inventories | (401.5) | 137.7 | (401.6) | ||||||||||||||
Accounts payable | 310.4 | (169.1) | 211.0 | ||||||||||||||
Deferred revenue | (0.3) | 8.5 | 1.5 | ||||||||||||||
Other current assets | (100.2) | (183.6) | (4.4) | ||||||||||||||
Other long-term assets | (14.0) | (37.3) | 28.9 | ||||||||||||||
Accrued expenses | 381.7 | 123.6 | 70.1 | ||||||||||||||
Defined benefit liabilities | (40.2) | (47.6) | (44.7) | ||||||||||||||
Other long-term liabilities | 79.5 | (92.1) | 20.5 | ||||||||||||||
Net cash provided by operating activities | 2,022.1 | 1,505.7 | 1,260.9 | ||||||||||||||
Investing Activities: | |||||||||||||||||
Capital and software expenditures | (348.1) | (424.7) | (492.1) | ||||||||||||||
Sales of assets | 19.9 | 100.1 | 45.2 | ||||||||||||||
Business acquisitions, net of cash acquired | (1,324.4) | (685.4) | (524.6) | ||||||||||||||
Sales of businesses, net of cash sold | 59.1 | 76.6 | (3.0) | ||||||||||||||
Purchases of investments | (18.7) | (260.6) | (21.7) | ||||||||||||||
Net investment hedge settlements | 41.0 | 8.0 | 25.7 | ||||||||||||||
Other | (5.9) | (22.6) | (18.6) | ||||||||||||||
Net cash used in investing activities | (1,577.1) | (1,208.6) | (989.1) | ||||||||||||||
Financing Activities: | |||||||||||||||||
Payments on long-term debt | (1,154.3) | (1,150.0) | (977.5) | ||||||||||||||
Proceeds from debt issuances, net of fees | 2,222.5 | 496.2 | 990.0 | ||||||||||||||
Net short-term (repayments) borrowings | (342.6) | (18.1) | 433.2 | ||||||||||||||
Stock purchase contract fees | (59.8) | (40.3) | (40.3) | ||||||||||||||
Purchases of common stock for treasury | (26.2) | (27.5) | (527.1) | ||||||||||||||
Proceeds from issuance of 2019 Equity Units | — | 735.0 | — | ||||||||||||||
Proceeds from issuance of remarketed preferred stock | 750.0 | — | — | ||||||||||||||
Premium paid on equity options | — | (19.2) | (57.3) | ||||||||||||||
Premium paid on debt extinguishment | (48.7) | — | — | ||||||||||||||
Proceeds from issuances of common stock | 147.0 | 146.0 | 38.5 | ||||||||||||||
Craftsman deferred purchase price | (250.0) | — | — | ||||||||||||||
Craftsman contingent consideration | (45.9) | — | — | ||||||||||||||
CAM contingent consideration | (94.4) | — | — | ||||||||||||||
Termination of interest rate swaps | (20.5) | (1.0) | (22.7) | ||||||||||||||
Cash dividends on common stock | (431.8) | (402.0) | (384.9) | ||||||||||||||
Cash dividends on preferred stock | (18.8) | — | — | ||||||||||||||
Other | (10.6) | (11.6) | (13.5) | ||||||||||||||
Net cash provided by (used in) financing activities | 615.9 | (292.5) | (561.6) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 22.8 | (1.4) | (53.9) | ||||||||||||||
Change in cash, cash equivalents and restricted cash | 1,083.7 | 3.2 | (343.7) | ||||||||||||||
Cash, cash equivalents and restricted cash, beginning of year | 314.6 | 311.4 | 655.1 | ||||||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 1,398.3 | $ | 314.6 | $ | 311.4 |
2019 | 2018 | 2017 | |||||||||
Operating Activities: | |||||||||||
Net earnings | $ | 958.0 | $ | 605.8 | $ | 1,226.9 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property, plant and equipment | 372.8 | 331.2 | 296.9 | ||||||||
Amortization of intangibles | 187.4 | 175.3 | 163.8 | ||||||||
Inventory step-up amortization | 7.4 | 9.6 | 43.2 | ||||||||
(Gain) loss on sales of businesses | (17.0 | ) | 0.8 | (264.1 | ) | ||||||
Loss on debt extinguishment | 17.9 | — | — | ||||||||
Stock-based compensation expense | 88.8 | 76.5 | 78.7 | ||||||||
Provision for doubtful accounts | 33.0 | 28.0 | 16.3 | ||||||||
Share of net loss of equity method investment | 11.2 | — | — | ||||||||
Deferred tax (benefit) expense | (17.9 | ) | 191.1 | (103.0 | ) | ||||||
Other non-cash items | (13.8 | ) | 10.1 | 24.4 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 137.8 | (48.8 | ) | (905.6 | ) | ||||||
Inventories | 137.7 | (401.6 | ) | (303.0 | ) | ||||||
Accounts payable | (169.1 | ) | 211.0 | 240.4 | |||||||
Deferred revenue | 8.5 | 1.5 | 1.6 | ||||||||
Other current assets | (183.6 | ) | (4.4 | ) | (5.9 | ) | |||||
Other long-term assets | (37.3 | ) | 28.9 | 84.9 | |||||||
Accrued expenses | 123.6 | 70.1 | 123.3 | ||||||||
Defined benefit liabilities | (47.6 | ) | (44.7 | ) | (66.5 | ) | |||||
Other long-term liabilities | (92.1 | ) | 20.5 | 16.2 | |||||||
Net cash provided by operating activities | 1,505.7 | 1,260.9 | 668.5 | ||||||||
Investing Activities: | |||||||||||
Capital and software expenditures | (424.7 | ) | (492.1 | ) | (442.4 | ) | |||||
Sales of assets | 100.1 | 45.2 | 50.2 | ||||||||
Business acquisitions, net of cash acquired | (685.4 | ) | (524.6 | ) | (2,583.5 | ) | |||||
Sales of businesses, net of cash sold | 76.6 | (3.0 | ) | 756.9 | |||||||
Purchases of investments | (260.6 | ) | (21.7 | ) | (17.9 | ) | |||||
Net investment hedge settlements | 8.0 | 25.7 | (23.3 | ) | |||||||
Proceeds related to deferred purchase price receivable | — | — | 704.7 | ||||||||
Other | (22.6 | ) | (18.6 | ) | (11.5 | ) | |||||
Net cash used in investing activities | (1,208.6 | ) | (989.1 | ) | (1,566.8 | ) | |||||
Financing Activities: | |||||||||||
Payments on long-term debt | (1,150.0 | ) | (977.5 | ) | (2.8 | ) | |||||
Proceeds from debt issuances, net of fees | 496.2 | 990.0 | — | ||||||||
Net short-term (repayments) borrowings | (18.1 | ) | 433.2 | (76.7 | ) | ||||||
Stock purchase contract fees | (40.3 | ) | (40.3 | ) | (20.0 | ) | |||||
Purchases of common stock for treasury | (27.5 | ) | (527.1 | ) | (28.7 | ) | |||||
Proceeds from issuances of preferred stock | 735.0 | — | 726.0 | ||||||||
Premium paid on equity options | (19.2 | ) | (57.3 | ) | (25.1 | ) | |||||
Proceeds from issuances of common stock | 146.0 | 38.5 | 90.8 | ||||||||
Cash dividends on common stock | (402.0 | ) | (384.9 | ) | (362.9 | ) | |||||
Other | (12.6 | ) | (36.2 | ) | (5.4 | ) | |||||
Net cash (used in) provided by financing activities | (292.5 | ) | (561.6 | ) | 295.2 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1.4 | ) | (53.9 | ) | 81.0 | ||||||
Change in cash, cash equivalents and restricted cash | 3.2 | (343.7 | ) | (522.1 | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 311.4 | 655.1 | 1,177.2 | ||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 314.6 | $ | 311.4 | $ | 655.1 |
January 2, 2021 | December 28, 2019 | ||||||||||
Cash and cash equivalents | $ | 1,381.0 | $ | 297.7 | |||||||
Restricted cash included in Other current assets | 17.3 | 16.9 | |||||||||
Cash, cash equivalents and restricted cash | $ | 1,398.3 | $ | 314.6 |
December 28, 2019 | December 29, 2018 | ||||||
Cash and cash equivalents | $ | 297.7 | $ | 288.7 | |||
Restricted cash included in Other current assets | 16.9 | 22.7 | |||||
Cash, cash equivalents and restricted cash | $ | 314.6 | $ | 311.4 |
Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests | Shareowners’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
(As Restated) (1) | (As Restated) (1) | (As Restated) (1) | (As Restated) (1) | (As Restated) (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 30, 2017 | $ | 606.1 | $ | 442.3 | $ | 4,788.2 | $ | 5,997.6 | $ | (1,589.1) | $ | (18.8) | $ | (1,924.1) | $ | 2.8 | $ | 8,305.0 | |||||||||||||||||||||||||||||||||||
Net earnings | 605.2 | 0.6 | 605.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (225.2) | (225.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared — $2.58 per share | (384.9) | (384.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (941,854 shares) | (41.4) | 79.9 | 38.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (3,677,435 shares) | (527.1) | (527.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest buyout | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premium paid on equity option | (57.3) | (57.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related | 76.5 | 76.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP | 8.3 | 8.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature | 1.8 | (1.8) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 29, 2018 | $ | 607.9 | $ | 442.3 | $ | 4,766.0 | $ | 6,216.1 | $ | (1,814.3) | $ | (10.5) | $ | (2,371.3) | $ | 3.7 | $ | 7,839.9 | |||||||||||||||||||||||||||||||||||
Net earnings | 955.8 | 2.2 | 958.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (70.3) | (70.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared — $2.70 per share | (402.0) | (402.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (2,391,336 shares) | (68.0) | 214.0 | 146.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (187,377 shares) | (27.5) | (27.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock (750,000 shares) | 620.3 | 620.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premium paid on equity option | (19.2) | (19.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related | 88.8 | 88.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP | 8.2 | 8.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature | 1.8 | (1.8) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 28, 2019 | $ | 1,230.0 | $ | 442.3 | $ | 4,767.6 | $ | 6,768.1 | $ | (1,884.6) | $ | (2.3) | $ | (2,184.8) | $ | 5.9 | $ | 9,142.2 | |||||||||||||||||||||||||||||||||||
Net earnings | 1,233.8 | 0.9 | 1,234.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 170.9 | 170.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared — $2.78 per common share | (431.8) | (431.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared — $50.00 per annum per preferred share | (23.4) | (23.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (2,010,644 shares) | (32.1) | 179.1 | 147.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (228,541 shares) | 10.0 | (36.2) | (26.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of original Series C Preferred Stock (5,463,750 shares) | (610.4) | 113.2 | 492.6 | (4.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of remarketed Series C Preferred Stock | 750.0 | 750.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related | 109.1 | 109.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP | 2.3 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | (3.8) | (3.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature | 0.7 | (0.7) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 2, 2021 | $ | 1,370.3 | $ | 442.3 | $ | 4,967.8 | $ | 7,542.2 | $ | (1,713.7) | $ | — | $ | (1,549.3) | $ | 6.8 | $ | 11,066.4 |
Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests | Shareowners’ Equity | |||||||||||||||||||||||||||
Balance December 31, 2016 | $ | — | $ | 442.3 | $ | 4,774.4 | $ | 5,134.3 | $ | (1,921.6 | ) | $ | (25.9 | ) | $ | (2,029.9 | ) | $ | 6.6 | $ | 6,380.2 | ||||||||||||||
Net earnings | 1,227.3 | (0.4 | ) | 1,226.9 | |||||||||||||||||||||||||||||||
Other comprehensive income | 332.5 | 332.5 | |||||||||||||||||||||||||||||||||
Cash dividends declared — $2.42 per share | (362.9 | ) | (362.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock (1,680,339) | (43.7 | ) | 134.5 | 90.8 | |||||||||||||||||||||||||||||||
Repurchase of common stock (202,075 shares) | (28.7 | ) | (28.7 | ) | |||||||||||||||||||||||||||||||
Issuance of preferred stock (750,000 shares) | 750.0 | (24.0 | ) | 726.0 | |||||||||||||||||||||||||||||||
Equity units - stock contract fees | (117.1 | ) | (117.1 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest dissolution | (3.4 | ) | (3.4 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (25.1 | ) | (25.1 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation related | 78.7 | 78.7 | |||||||||||||||||||||||||||||||||
ESOP | 7.1 | 7.1 | |||||||||||||||||||||||||||||||||
Balance December 30, 2017 | $ | 750.0 | $ | 442.3 | $ | 4,643.2 | $ | 5,998.7 | $ | (1,589.1 | ) | $ | (18.8 | ) | $ | (1,924.1 | ) | $ | 2.8 | $ | 8,305.0 | ||||||||||||||
Net earnings | 605.2 | 0.6 | 605.8 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (225.2 | ) | (225.2 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.58 per share | (384.9 | ) | (384.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock (941,854) | (41.4 | ) | 79.9 | 38.5 | |||||||||||||||||||||||||||||||
Repurchase of common stock (3,677,435 shares) | (527.1 | ) | (527.1 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (57.3 | ) | (57.3 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest buyout | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||
Stock-based compensation related | 76.5 | 76.5 | |||||||||||||||||||||||||||||||||
ESOP | 8.3 | 8.3 | |||||||||||||||||||||||||||||||||
Balance December 29, 2018 | $ | 750.0 | $ | 442.3 | $ | 4,621.0 | $ | 6,219.0 | $ | (1,814.3 | ) | $ | (10.5 | ) | $ | (2,371.3 | ) | $ | 3.7 | $ | 7,839.9 | ||||||||||||||
Net earnings | 955.8 | 2.2 | 958.0 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (70.3 | ) | (70.3 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.70 per share | (402.0 | ) | (402.0 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock (2,391,336) | (68.0 | ) | 214.0 | 146.0 | |||||||||||||||||||||||||||||||
Repurchase of common stock (187,377 shares) | (27.5 | ) | (27.5 | ) | |||||||||||||||||||||||||||||||
Issuance of preferred stock (750,000 shares) | 750.0 | (15.5 | ) | 734.5 | |||||||||||||||||||||||||||||||
Equity units - stock contract fees | (114.2 | ) | (114.2 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (19.2 | ) | (19.2 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation related | 88.8 | 88.8 | |||||||||||||||||||||||||||||||||
ESOP | 8.2 | 8.2 | |||||||||||||||||||||||||||||||||
Balance December 28, 2019 | $ | 1,500.0 | $ | 442.3 | $ | 4,492.9 | $ | 6,772.8 | $ | (1,884.6 | ) | $ | (2.3 | ) | $ | (2,184.8 | ) | $ | 5.9 | $ | 9,142.2 |
Year Ended January 2, 2021 | |||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,210.4 | $ | (0.7) | $ | 1,209.7 | |||||||||||
Add: Contract adjustment payments accretion | — | 1.7 | 1.7 | ||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 1,210.4 | $ | 1.0 | $ | 1,211.4 | |||||||||||
Earnings per share of common stock: | |||||||||||||||||
Basic | $ | 7.85 | $ | — | $ | 7.85 | |||||||||||
Diluted | $ | 7.77 | $ | (0.31) | $ | 7.46 | |||||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||||||||
Basic | 154,176 | — | 154,176 | ||||||||||||||
Diluted | 155,861 | 6,566 | 162,427 | ||||||||||||||
Comprehensive income attributable to common shareowners | $ | 1,381.3 | $ | (0.7) | $ | 1,380.6 |
Year Ended December 28, 2019 | |||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 955.8 | $ | (1.8) | $ | 954.0 | |||||||||||
Add: Contract adjustment payments accretion | — | 1.7 | 1.7 | ||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 955.8 | $ | (0.1) | $ | 955.7 | |||||||||||
Earnings per share of common stock: | |||||||||||||||||
Basic | $ | 6.44 | $ | (0.01) | $ | 6.43 | |||||||||||
Diluted | $ | 6.35 | $ | (0.24) | $ | 6.11 | |||||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||||||||
Basic | 148,365 | — | 148,365 | ||||||||||||||
Diluted | 150,558 | 5,823 | 156,381 | ||||||||||||||
Comprehensive income attributable to common shareowners | $ | 885.5 | $ | (1.8) | $ | 883.7 |
Year Ended December 29, 2018 | |||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 605.2 | $ | (1.8) | $ | 603.4 | |||||||||||
Add: Contract adjustment payments accretion | — | 0.9 | 0.9 | ||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 605.2 | $ | (0.9) | $ | 604.3 | |||||||||||
Earnings per share of common stock: | |||||||||||||||||
Basic | $ | 4.06 | $ | (0.01) | $ | 4.05 | |||||||||||
Diluted | $ | 3.99 | $ | (0.14) | $ | 3.85 | |||||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||||||||
Basic | 148,919 | — | 148,919 | ||||||||||||||
Diluted | 151,643 | 5,137 | 156,780 | ||||||||||||||
Comprehensive income attributable to common shareowners | $ | 380.0 | $ | (1.8) | $ | 378.2 |
January 2, 2021 | |||||||||||||||||
(Millions of Dollars) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Preferred stock, without par value | $ | 1,500.0 | $ | (129.7) | $ | 1,370.3 | |||||||||||
Retained earnings | $ | 7,547.6 | $ | (5.4) | $ | 7,542.2 | |||||||||||
Additional paid in capital | $ | 4,832.7 | $ | 135.1 | $ | 4,967.8 | |||||||||||
Total Shareowners’ Equity | $ | 11,066.4 | $ | — | $ | 11,066.4 |
December 28, 2019 | |||||||||||||||||
(Millions of Dollars) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Preferred stock, without par value | $ | 1,500.0 | $ | (270.0) | $ | 1,230.0 | |||||||||||
Retained earnings | $ | 6,772.8 | $ | (4.7) | $ | 6,768.1 | |||||||||||
Additional paid in capital | $ | 4,492.9 | $ | 274.7 | $ | 4,767.6 | |||||||||||
Total Shareowners’ Equity | $ | 9,142.2 | $ | — | $ | 9,142.2 |
December 29, 2018 | |||||||||||||||||
(Millions of Dollars) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Preferred stock, without par value | $ | 750.0 | $ | (142.1) | $ | 607.9 | |||||||||||
Retained earnings | $ | 6,219.0 | $ | (2.9) | $ | 6,216.1 | |||||||||||
Additional paid in capital | $ | 4,621.0 | $ | 145.0 | $ | 4,766.0 | |||||||||||
Total Shareowners’ Equity | $ | 7,839.9 | $ | — | $ | 7,839.9 |
December 30, 2017 | |||||||||||||||||
(Millions of Dollars) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Preferred stock, without par value | $ | 750.0 | $ | (143.9) | $ | 606.1 | |||||||||||
Retained earnings | $ | 5,998.7 | $ | (1.1) | $ | 5,997.6 | |||||||||||
Additional paid in capital | $ | 4,643.2 | $ | 145.0 | $ | 4,788.2 | |||||||||||
Total Shareowners’ Equity | $ | 8,305.0 | $ | — | $ | 8,305.0 |
January 2, 2021 | |||||||||||||||||
(Millions of Dollars) | As Previously Reported | Restatement Impacts | As Restated | ||||||||||||||
Proceeds from issuance of remarketed preferred stock | $ | — | $ | 750.0 | $ | 750.0 | |||||||||||
Proceeds from issuances of common stock | $ | 897.0 | $ | (750.0) | $ | 147.0 | |||||||||||
Net cash provided by financing activities | $ | 615.9 | $ | — | $ | 615.9 |
Useful Life (Years) | ||||||||
Land improvements | 10 — 20 | |||||||
Buildings | 40 | |||||||
Machinery and equipment | 3 — 15 | |||||||
Computer software | 3 — 7 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Trade accounts receivable | $ | 1,345.7 | $ | 1,284.0 | |||||||
Trade notes receivable | 156.1 | 156.7 | |||||||||
Other accounts receivable | 151.5 | 126.3 | |||||||||
Gross accounts and notes receivable | 1,653.3 | 1,567.0 | |||||||||
Allowance for credit losses | (141.1) | (112.4) | |||||||||
Accounts and notes receivable, net | $ | 1,512.2 | $ | 1,454.6 | |||||||
Long-term receivable, net | $ | 139.9 | $ | 146.1 |
(Millions of Dollars) | 2019 | 2018 | |||||
Trade accounts receivable | $ | 1,284.0 | $ | 1,437.1 | |||
Trade notes receivable | 156.7 | 150.0 | |||||
Other accounts receivable | 126.3 | 122.7 | |||||
Gross accounts and notes receivable | 1,567.0 | 1,709.8 | |||||
Allowance for doubtful accounts | (112.4 | ) | (102.0 | ) | |||
Accounts and notes receivable, net | $ | 1,454.6 | $ | 1,607.8 | |||
Long-term receivable, net | $ | 146.1 | $ | 153.7 |
(Millions of Dollars) | Balance December 28, 2019 | Cumulative Effect Adjustment (a) | Charged To Costs and Expenses | Charged To Other Accounts (b) | Deductions (c) | Balance January 2, 2021 | ||||||||||||||||||||||||||||||||
Accounts receivable | $ | 99.3 | $ | 2.9 | $ | 41.1 | $ | 15.3 | $ | (31.9) | $ | 126.7 | ||||||||||||||||||||||||||
Notes receivable | $ | 13.1 | $ | 0.9 | $ | — | $ | 4.6 | $ | (4.2) | $ | 14.4 | ||||||||||||||||||||||||||
Total | $ | 112.4 | $ | 3.8 | $ | 41.1 | $ | 19.9 | $ | (36.1) | $ | 141.1 |
(Millions of Dollars) | Total | Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | Thereafter | |||||||||||||||||||||||||||||||||||||
Finance receivables | $ | 209.5 | $ | 80.3 | $ | 56.5 | $ | 38.9 | $ | 21.4 | $ | 8.1 | $ | 4.3 | ||||||||||||||||||||||||||||||
Operating leases | $ | 39.7 | $ | 38.5 | $ | 0.9 | $ | 0.3 | $ | — | $ | — | $ | — |
(Millions of Dollars) | Total | Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | Thereafter | |||||||||||||||||||||
Finance receivables | $ | 210.5 | $ | 78.2 | $ | 59.7 | $ | 39.8 | $ | 20.6 | $ | 12.2 | $ | — | ||||||||||||||
Operating leases | $ | 47.7 | $ | 45.5 | $ | 1.3 | $ | 0.7 | $ | 0.2 | $ | — | $ | — |
(Millions of Dollars) | 2020 | 2019 | ||||||||||||||||||
Sales-type lease revenue | $ | 113.0 | $ | 88.9 | ||||||||||||||||
Lease interest revenue | 13.3 | 12.7 | ||||||||||||||||||
Operating lease revenue | 131.5 | 148.9 | ||||||||||||||||||
Total lease revenue | $ | 257.8 | $ | 250.5 | ||||||||||||||||
Sales-type lease profit | $ | 45.0 | $ | 35.3 |
(Millions of Dollars) | 2019 | |||
Sales-type lease revenue | $ | 88.9 | ||
Lease interest revenue | 12.7 | |||
Operating lease revenue | 148.9 | |||
Total lease revenue | $ | 250.5 | ||
Sales-type lease profit | $ | 35.3 |
(Millions of Dollars) | 2019 | 2018 | |||||
Finished products | $ | 1,526.0 | $ | 1,707.4 | |||
Work in process | 162.0 | 150.8 | |||||
Raw materials | 567.0 | 515.3 | |||||
Total | $ | 2,255.0 | $ | 2,373.5 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Finished products | $ | 1,922.5 | $ | 1,526.0 | |||||||
Work in process | 222.3 | 162.0 | |||||||||
Raw materials | 592.6 | 567.0 | |||||||||
Total | $ | 2,737.4 | $ | 2,255.0 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Land | $ | 140.5 | $ | 112.2 | |||||||
Land improvements | 56.4 | 52.6 | |||||||||
Buildings | 655.2 | 630.3 | |||||||||
Leasehold improvements | 192.6 | 172.1 | |||||||||
Machinery and equipment | 3,077.5 | 2,812.8 | |||||||||
Computer software | 557.7 | 510.8 | |||||||||
Property, plant & equipment, gross | $ | 4,679.9 | $ | 4,290.8 | |||||||
Less: accumulated depreciation and amortization | (2,626.1) | (2,331.3) | |||||||||
Property, plant & equipment, net | $ | 2,053.8 | $ | 1,959.5 |
(Millions of Dollars) | 2019 | 2018 | |||||
Land | $ | 112.2 | $ | 115.9 | |||
Land improvements | 52.6 | 52.2 | |||||
Buildings | 630.3 | 625.6 | |||||
Leasehold improvements | 172.1 | 157.8 | |||||
Machinery and equipment | 2,812.8 | 2,566.1 | |||||
Computer software | 510.8 | 452.5 | |||||
Property, plant & equipment, gross | $ | 4,290.8 | $ | 3,970.1 | |||
Less: accumulated depreciation and amortization | (2,331.3 | ) | (2,054.9 | ) | |||
Property, plant & equipment, net | $ | 1,959.5 | $ | 1,915.2 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Depreciation | $ | 332.6 | $ | 325.2 | $ | 288.4 | |||||||||||
Amortization | 43.9 | 47.6 | 42.8 | ||||||||||||||
Depreciation and amortization expense | $ | 376.5 | $ | 372.8 | $ | 331.2 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Depreciation | $ | 325.2 | $ | 288.4 | $ | 253.6 | |||||
Amortization | 47.6 | 42.8 | 43.3 | ||||||||
Depreciation and amortization expense | $ | 372.8 | $ | 331.2 | $ | 296.9 |
(Millions of Dollars) | |||||
Cash and cash equivalents | $ | 35.8 | |||
Accounts receivable, net | 48.3 | ||||
Inventories, net | 124.3 | ||||
Prepaid expenses and other assets | 2.6 | ||||
Property, plant and equipment | 127.0 | ||||
Trade names | 25.0 | ||||
Customer relationships | 565.0 | ||||
Accounts payable | (25.9) | ||||
Accrued expenses | (26.9) | ||||
Deferred taxes | (16.3) | ||||
Other liabilities | (0.3) | ||||
Total identifiable net assets | $ | 858.6 | |||
Goodwill | 633.2 | ||||
Contingent consideration | (155.3) | ||||
Total consideration paid | $ | 1,336.5 |
(Millions of Dollars) | |||
Cash and cash equivalents | $ | 20.0 | |
Accounts and notes receivable, net | 19.7 | ||
Inventories, net | 195.5 | ||
Prepaid expenses and other current assets | 27.1 | ||
Property, plant and equipment, net | 112.4 | ||
Trade names | 283.0 | ||
Customer relationships | 548.0 | ||
Other assets | 8.8 | ||
Accounts payable | (70.3 | ) | |
Accrued expenses | (40.7 | ) | |
Deferred taxes | (269.4 | ) | |
Other liabilities | (7.9 | ) | |
Total identifiable net assets | $ | 826.2 | |
Goodwill | 1,031.8 | ||
Total consideration paid | $ | 1,858.0 |
(Millions of Dollars) | 2020 | ||||
Net sales | $ | 233.9 | |||
Net loss attributable to common shareowners | $ | (89.4) |
(Millions of Dollars) | 2019 | ||
Net sales | $ | 291.1 | |
Net loss attributable to common shareowners | $ | (1.7 | ) |
(Millions of Dollars, except per share amounts) | 2020 (As Restated) | 2019 (As Restated) | |||||||||
Net sales | $ | 14,592.6 | $ | 14,903.7 | |||||||
Net earnings attributable to common shareowners - Diluted | 1,257.7 | 922.9 | |||||||||
Diluted earnings per share | $ | 7.74 | $ | 5.90 |
(Millions of Dollars, except per share amounts) | 2019 | 2018 | |||||
Net sales | $ | 14,524.6 | $ | 14,448.6 | |||
Net earnings attributable to common shareowners | 977.8 | 620.3 | |||||
Diluted earnings per share | $ | 6.49 | $ | 4.09 |
(Millions of Dollars) | Tools & Storage | Industrial | Security | Total | |||||||||||||||||||
Balance December 29, 2018 | $ | 5,154.3 | $ | 1,679.7 | $ | 2,122.7 | $ | 8,956.7 | |||||||||||||||
Acquisitions | (1.3) | 320.5 | 8.2 | 327.4 | |||||||||||||||||||
Foreign currency translation and other | 8.8 | (4.7) | (50.7) | (46.6) | |||||||||||||||||||
Balance December 28, 2019 | $ | 5,161.8 | $ | 1,995.5 | $ | 2,080.2 | $ | 9,237.5 | |||||||||||||||
Acquisitions | 0.1 | 635.7 | 14.9 | 650.7 | |||||||||||||||||||
Foreign currency translation and other | 85.8 | 15.3 | 48.8 | 149.9 | |||||||||||||||||||
Balance January 2, 2021 | $ | 5,247.7 | $ | 2,646.5 | $ | 2,143.9 | $ | 10,038.1 |
(Millions of Dollars) | Tools & Storage | Industrial | Security | Total | |||||||||||
Balance December 30, 2017 | $ | 5,189.7 | $ | 1,454.4 | $ | 2,132.0 | $ | 8,776.1 | |||||||
Acquisitions | 59.8 | 225.5 | 55.0 | 340.3 | |||||||||||
Foreign currency translation and other | (95.2 | ) | (0.2 | ) | (64.3 | ) | (159.7 | ) | |||||||
Balance December 29, 2018 | $ | 5,154.3 | $ | 1,679.7 | $ | 2,122.7 | $ | 8,956.7 | |||||||
Acquisitions | (1.3 | ) | 320.5 | 8.2 | 327.4 | ||||||||||
Foreign currency translation and other | 8.8 | (4.7 | ) | (50.7 | ) | (46.6 | ) | ||||||||
Balance December 28, 2019 | $ | 5,161.8 | $ | 1,995.5 | $ | 2,080.2 | $ | 9,237.5 |
2020 | 2019 | ||||||||||||||||||||||
(Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
Amortized Intangible Assets — Definite lived | |||||||||||||||||||||||
Patents and copyrights | $ | 45.5 | $ | (44.0) | $ | 42.4 | $ | (41.5) | |||||||||||||||
Trade names | 220.8 | (141.1) | 194.5 | (127.2) | |||||||||||||||||||
Customer relationships | 3,369.1 | (1,634.0) | 2,739.0 | (1,421.7) | |||||||||||||||||||
Other intangible assets | 232.4 | (190.9) | 233.1 | (182.9) | |||||||||||||||||||
Total | $ | 3,867.8 | $ | (2,010.0) | $ | 3,209.0 | $ | (1,773.3) |
2019 | 2018 | ||||||||||||||
(Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Amortized Intangible Assets — Definite lives | |||||||||||||||
Patents and copyrights | $ | 42.4 | $ | (41.5 | ) | $ | 42.5 | $ | (40.6 | ) | |||||
Trade names | 194.5 | (127.2 | ) | 170.8 | (114.9 | ) | |||||||||
Customer relationships | 2,739.0 | (1,421.7 | ) | 2,435.0 | (1,269.8 | ) | |||||||||
Other intangible assets | 233.1 | (182.9 | ) | 236.1 | (173.6 | ) | |||||||||
Total | $ | 3,209.0 | $ | (1,773.3 | ) | $ | 2,884.4 | $ | (1,598.9 | ) |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Tools & Storage | $ | 73.1 | $ | 75.5 | $ | 68.0 | |||||
Industrial | 69.6 | 50.7 | 45.4 | ||||||||
Security | 44.7 | 49.1 | 50.4 | ||||||||
Consolidated | $ | 187.4 | $ | 175.3 | $ | 163.8 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Tools & Storage | $ | 61.5 | $ | 73.1 | $ | 75.5 | |||||||||||
Industrial | 96.6 | 69.6 | 50.7 | ||||||||||||||
Security | 43.5 | 44.7 | 49.1 | ||||||||||||||
Consolidated | $ | 201.6 | $ | 187.4 | $ | 175.3 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Payroll and related taxes | $ | 324.2 | $ | 262.4 | |||||||
Income and other taxes | 241.0 | 243.9 | |||||||||
Customer rebates and sales returns | 229.6 | 112.0 | |||||||||
Insurance and benefits | 80.4 | 69.8 | |||||||||
Restructuring costs | 90.2 | 147.8 | |||||||||
Derivative financial instruments | 185.3 | 22.4 | |||||||||
Warranty costs | 81.5 | 69.6 | |||||||||
Deferred revenue | 108.7 | 108.9 | |||||||||
Freight costs | 93.5 | 72.9 | |||||||||
Environmental costs | 46.7 | 57.8 | |||||||||
Deferred purchase price | — | 249.2 | |||||||||
Current lease liability | 138.8 | 141.3 | |||||||||
Other | 490.5 | 419.5 | |||||||||
Total | $ | 2,110.4 | $ | 1,977.5 |
(Millions of Dollars) | 2019 | 2018 | |||||
Payroll and related taxes | $ | 262.4 | $ | 297.0 | |||
Income and other taxes | 243.9 | 67.5 | |||||
Customer rebates and sales returns | 112.0 | 116.6 | |||||
Insurance and benefits | 69.8 | 69.4 | |||||
Restructuring costs | 147.8 | 108.8 | |||||
Derivative financial instruments | 22.4 | 7.5 | |||||
Warranty costs | 69.6 | 65.5 | |||||
Deferred revenue | 108.9 | 98.6 | |||||
Freight costs | 72.9 | 87.3 | |||||
Environmental costs | 57.8 | 58.1 | |||||
Deferred purchase price | 249.2 | — | |||||
Current lease liability | 141.3 | — | |||||
Other | 419.5 | 413.5 | |||||
Total | $ | 1,977.5 | $ | 1,389.8 |
December 28, 2019 | December 29, 2018 | ||||||||||||||||||||||
(Millions of Dollars) | Interest Rate | Original Notional | Unamortized Discount | Unamortized Gain (Loss) Terminated Swaps1 | Purchase Accounting FV Adjustment | Deferred Financing Fees | Carrying Value | Carrying Value | |||||||||||||||
Notes payable due 2021 | 3.40% | $ | 400.0 | $ | (0.1 | ) | $ | 6.7 | $ | — | $ | (0.6 | ) | $ | 406.0 | $ | 409.1 | ||||||
Notes payable due 2022 | 2.90% | 754.3 | (0.2 | ) | — | — | (1.8 | ) | 752.3 | 751.6 | |||||||||||||
Notes payable due 2026 | 3.40% | 500.0 | (0.6 | ) | — | — | (2.9 | ) | 496.5 | — | |||||||||||||
Notes payable due 2028 | 7.05% | 150.0 | — | 9.3 | 9.0 | — | 168.3 | 170.4 | |||||||||||||||
Notes payable due 2028 | 4.25% | 500.0 | (0.3 | ) | — | — | (3.9 | ) | 495.8 | 495.7 | |||||||||||||
Notes payable due 2040 | 5.20% | 400.0 | (0.2 | ) | (30.5 | ) | — | (2.8 | ) | 366.5 | 364.9 | ||||||||||||
Notes payable due 2048 | 4.85% | 500.0 | (0.5 | ) | — | — | (5.4 | ) | 494.1 | 494.4 | |||||||||||||
Notes payable due 2052 (junior subordinated) | 5.75% | — | — | — | — | — | — | 731.6 | |||||||||||||||
Notes payable due 2053 (junior subordinated) | 7.08% | — | — | — | — | — | — | 396.7 | |||||||||||||||
Other, payable in varying amounts through 20222 | 0.00% - 4.50% | — | — | — | — | — | — | 7.9 | |||||||||||||||
Total long-term debt, including current maturities | $ | 3,204.3 | $ | (1.9 | ) | $ | (14.5 | ) | $ | 9.0 | $ | (17.4 | ) | $ | 3,179.5 | $ | 3,822.3 | ||||||
Less: Current maturities of long-term debt | (3.1 | ) | (2.5 | ) | |||||||||||||||||||
Long-term debt | $ | 3,176.4 | $ | 3,819.8 |
January 2, 2021 | December 29, 2019 | ||||||||||||||||||||||||||||
(Millions of Dollars) | Interest Rate | Original Notional | Unamortized Discount | Unamortized Gain (Loss) Terminated Swaps1 | Purchase Accounting FV Adjustment | Deferred Financing Fees | Carrying Value | Carrying Value | |||||||||||||||||||||
Notes payable due 2021 | 3.40% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 406.0 | ||||||||||||||
Notes payable due 2022 | 2.90% | — | — | — | — | — | — | 752.3 | |||||||||||||||||||||
Notes payable due 2026 | 3.40% | 500.0 | (0.5) | — | — | (2.3) | 497.2 | 496.5 | |||||||||||||||||||||
Notes payable due 2028 | 7.05% | 150.0 | — | 8.2 | 7.9 | — | 166.1 | 168.3 | |||||||||||||||||||||
Notes payable due 2028 | 4.25% | 500.0 | (0.3) | — | — | (3.5) | 496.2 | 495.8 | |||||||||||||||||||||
Notes payable due 2030 | 2.30% | 750.0 | (2.3) | — | — | (4.8) | 742.9 | — | |||||||||||||||||||||
Notes payable due 2040 | 5.20% | 400.0 | (0.2) | (29.0) | — | (2.7) | 368.1 | 366.5 | |||||||||||||||||||||
Notes payable due 2048 | 4.85% | 500.0 | (0.5) | — | — | (5.2) | 494.3 | 494.1 | |||||||||||||||||||||
Notes payable due 2050 | 2.75% | 750.0 | (2.0) | — | — | (8.1) | 739.9 | — | |||||||||||||||||||||
Notes payable due 2060 (junior subordinated) | 4.00% | 750.0 | — | — | — | (9.3) | 740.7 | — | |||||||||||||||||||||
Total long-term debt, including current maturities | $ | 4,300 | $ | (5.8) | $ | (20.8) | $ | 7.9 | $ | (35.9) | $ | 4,245.4 | $ | 3,179.5 | |||||||||||||||
Less: Current maturities of long-term debt | — | (3.1) | |||||||||||||||||||||||||||
Long-term debt | $ | 4,245.4 | $ | 3,176.4 |
(Millions of Dollars) | Balance Sheet Classification | 2020 | 2019 | Balance Sheet Classification | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest Rate Contracts Cash Flow | Other current assets | $ | — | $ | — | Accrued expenses | $ | 90.9 | $ | — | ||||||||||||||||||||||||||||
LT other assets | — | — | LT other liabilities | — | 40.5 | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts Cash Flow | Other current assets | — | 7.0 | Accrued expenses | 23.7 | 7.8 | ||||||||||||||||||||||||||||||||
Net Investment Hedge | Other current assets | 3.5 | 18.6 | Accrued expenses | 55.1 | 8.5 | ||||||||||||||||||||||||||||||||
LT other assets | — | — | LT other liabilities | 5.7 | 2.6 | |||||||||||||||||||||||||||||||||
Non-derivative designated as hedging instrument: | ||||||||||||||||||||||||||||||||||||||
Net Investment Hedge | — | — | Short-term borrowings | — | 335.5 | |||||||||||||||||||||||||||||||||
Total Designated as hedging instruments | $ | 3.5 | $ | 25.6 | $ | 175.4 | $ | 394.9 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other current assets | $ | 10.5 | $ | 3.7 | Accrued expenses | $ | 15.6 | $ | 6.1 | ||||||||||||||||||||||||||||
Total | $ | 14.0 | $ | 29.3 | $ | 191.0 | $ | 401.0 |
(Millions of Dollars) | Balance Sheet Classification | 2019 | 2018 | Balance Sheet Classification | 2019 | 2018 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest Rate Contracts Cash Flow | LT other assets | $ | — | $ | — | LT other liabilities | $ | 40.5 | $ | — | ||||||||||
Foreign Exchange Contracts Cash Flow | Other current assets | 7.0 | 18.1 | Accrued expenses | 7.8 | 0.6 | ||||||||||||||
Net Investment Hedge | Other current assets | 18.6 | 5.7 | Accrued expenses | 8.5 | 1.5 | ||||||||||||||
LT other assets | — | — | LT other liabilities | 2.6 | 13.8 | |||||||||||||||
Non-derivative designated as hedging instrument: | ||||||||||||||||||||
Net Investment Hedge | — | — | Short-term borrowings | 335.5 | 228.9 | |||||||||||||||
Total Designated as hedging instruments | $ | 25.6 | $ | 23.8 | $ | 394.9 | $ | 244.8 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other current assets | $ | 3.7 | $ | 9.1 | Accrued expenses | $ | 6.1 | $ | 5.4 | ||||||||||
Total | $ | 29.3 | $ | 32.9 | $ | 401.0 | $ | 250.2 |
2020 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | ||||||||||||||||||||||
Interest Rate Contracts | $ | (70.9) | Interest expense | $ | (16.3) | $ | — | |||||||||||||||||||
Foreign Exchange Contracts | $ | (16.1) | Cost of sales | $ | 12.4 | $ | — |
2019 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | ||||||||||
Interest Rate Contracts | $ | (40.5 | ) | Interest expense | $ | (16.2 | ) | $ | — | |||||
Foreign Exchange Contracts | $ | (16.7 | ) | Cost of sales | $ | (6.5 | ) | $ | — |
2018 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | ||||||||||
Interest Rate Contracts | $ | 33.1 | Interest expense | $ | (15.3 | ) | $ | — | ||||||
Foreign Exchange Contracts | $ | 35.9 | Cost of sales | $ | (17.9 | ) | $ | — |
2019 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | ||||||||||||||||||||||
Interest Rate Contracts | $ | (40.5) | Interest expense | $ | (16.2) | $ | — | |||||||||||||||||||
Foreign Exchange Contracts | $ | (16.7) | Cost of sales | $ | (6.5) | $ | — |
2017 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||||||||||||||||||||||||||||
2018 (Millions of Dollars) | 2018 (Millions of Dollars) | Gain (Loss) Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion) | |||||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | (8.4 | ) | Interest expense | $ | — | $ | — | Interest Rate Contracts | $ | 33.1 | Interest expense | $ | (15.3) | $ | — | ||||||||||||||||||||||||
Foreign Exchange Contracts | $ | (66.6 | ) | Cost of sales | $ | 8.4 | $ | — | Foreign Exchange Contracts | $ | 35.9 | Cost of sales | $ | (17.9) | $ | — |
2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars) | Cost of Sales | Interest Expense | Cost of Sales | Interest Expense | (Millions of dollars) | Cost of Sales | Interest Expense | Cost of Sales | Interest Expense | Cost of Sales | Interest Expense | |||||||||||||||||||||||||||||||||||||||
Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded | $ | 9,636.7 | $ | 284.3 | $ | 9,131.3 | $ | 277.9 | Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded | $ | 9,566.7 | $ | 223.1 | $ | 9,636.7 | $ | 284.3 | $ | 9,131.3 | $ | 277.9 | |||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | Gain (loss) on cash flow hedging relationships: | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts: | Foreign Exchange Contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||
Hedged Items | $ | 6.5 | $ | — | $ | 17.9 | $ | — | Hedged Items | $ | (12.4) | $ | — | $ | 6.5 | $ | — | $ | 17.9 | $ | — | |||||||||||||||||||||||||||||
Gain (loss) reclassified from OCI into Income | $ | (6.5 | ) | $ | — | $ | (17.9 | ) | $ | — | Gain (loss) reclassified from OCI into Income | $ | 12.4 | $ | — | $ | (6.5) | $ | — | $ | (17.9) | $ | — | |||||||||||||||||||||||||||
Interest Rate Swap Agreements: | Interest Rate Swap Agreements: | |||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) reclassified from OCI into Income 1 | $ | — | $ | (16.2 | ) | $ | — | $ | (15.3 | ) | Gain (loss) reclassified from OCI into Income 1 | $ | — | $ | (16.3) | $ | — | $ | (16.2) | $ | — | $ | (15.3) |
2020 | 2019 | 2018 | ||||||||||||||||||
(Millions of dollars) | Interest Expense | Interest Expense | Interest Expense | |||||||||||||||||
Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded | $ | 223.1 | $ | 284.3 | $ | 277.9 | ||||||||||||||
Amortization of gain on terminated swaps | $ | (3.0) | $ | (7.7) | $ | (3.2) |
(Millions of dollars) | 2019 Interest Expense | 2018 Interest Expense | |||||
Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded | $ | 284.3 | $ | 277.9 | |||
Amortization of gain on terminated swaps | $ | (7.7 | ) | $ | (3.2 | ) |
(Millions of dollars) | 2019 Carrying Amount of Hedged Liability1 | 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | ||||||||
Current maturities of long-term debt | $ | 3.1 | Terminated Swaps | $ | 3.1 | |||||
Long-Term Debt | $ | 3,176.4 | Terminated Swaps | $ | (17.5 | ) |
(Millions of dollars) | 2020 Carrying Amount of Hedged Liability1 | 2020 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | ||||||||||||||||||
Current maturities of long-term debt | $ | — | Terminated Swaps | $ | — | |||||||||||||||
Long-Term Debt | $ | 4,245.4 | Terminated Swaps | $ | (20.8) |
(Millions of dollars) | 2018 Carrying Amount of Hedged Liability1 | 2018 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | (Millions of dollars) | 2019 Carrying Amount of Hedged Liability1 | 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | |||||||||||||||||||||||||
Current maturities of long-term debt | $ | 2.5 | Terminated Swaps | $ | 2.1 | Current maturities of long-term debt | $ | 3.1 | Terminated Swaps | $ | 3.1 | |||||||||||||||||||
Long-Term Debt | $ | 3,819.8 | Terminated Swaps | $ | (10.0 | ) | Long-Term Debt | $ | 3,176.4 | Terminated Swaps | $ | (17.5) |
2020 | ||||||||||||||||||||||||||||||||
(Millions of Dollars) | Total Gain (Loss) Recorded in OCI | Excluded Component Recorded in OCI | Income Statement Classification | Total Gain (Loss) Reclassified from OCI to Income | Excluded Component Amortized from OCI to Income | |||||||||||||||||||||||||||
Forward Contracts | $ | 0.8 | $ | — | Other, net | $ | — | $ | — | |||||||||||||||||||||||
Cross Currency Swap | $ | (5.4) | $ | 60.7 | Other, net | $ | 18.2 | $ | 18.2 | |||||||||||||||||||||||
Option Contracts | $ | — | $ | — | Other, net | $ | — | $ | — | |||||||||||||||||||||||
Non-derivative designated as Net Investment Hedge | $ | (8.5) | $ | — | Other, net | $ | — | $ | — |
2019 | ||||||||||||||||||
(Millions of Dollars) | Total Gain (Loss) Recorded in OCI | Excluded Component Recorded in OCI | Income Statement Classification | Total Gain (Loss) Reclassified from OCI to Income | Excluded Component Amortized from OCI to Income | |||||||||||||
Forward Contracts | $ | 6.4 | $ | 4.6 | Other, net | $ | 4.3 | $ | 4.3 | |||||||||
Cross Currency Swap | $ | 54.8 | $ | 48.8 | Other, net | $ | 29.9 | $ | 29.9 | |||||||||
Option Contracts | $ | (3.7 | ) | $ | — | Other, net | $ | — | $ | — | ||||||||
Non-derivative designated as Net Investment Hedge | $ | 21.7 | $ | — | Other, net | $ | — | $ | — |
2018 | ||||||||||||||||||
(Millions of Dollars) | Total Gain (Loss) Recorded in OCI | Excluded Component Recorded in OCI | Income Statement Classification | Total Gain (Loss) Reclassified from OCI to Income | Excluded Component Amortized from OCI to Income | |||||||||||||
Forward Contracts | $ | 37.1 | $ | 8.6 | Other, net | $ | 8.2 | $ | 8.2 | |||||||||
Cross Currency Swap | $ | (2.3 | ) | $ | 5.8 | Other, net | $ | 6.8 | $ | 6.8 | ||||||||
Option Contracts | $ | (2.0 | ) | $ | — | Other, net | $ | — | $ | — | ||||||||
Non-derivative designated as Net Investment Hedge | $ | 61.8 | $ | — | Other, net | $ | — | $ | — |
2017 | ||||||||||||
Income Statement Classification (Millions of Dollars) | Amount Recorded in OCI Gain (Loss) | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | |||||||||
Other-net | $ | (131.3 | ) | $ | — | $ | — |
2019 | ||||||||||||||||||||||||||||||||
(Millions of Dollars) | Total Gain (Loss) Recorded in OCI | Excluded Component Recorded in OCI | Income Statement Classification | Total Gain (Loss) Reclassified from OCI to Income | Excluded Component Amortized from OCI to Income | |||||||||||||||||||||||||||
Forward Contracts | $ | 6.4 | $ | 4.6 | Other, net | $ | 4.3 | $ | 4.3 | |||||||||||||||||||||||
Cross Currency Swap | $ | 54.8 | $ | 48.8 | Other, net | $ | 29.9 | $ | 29.9 | |||||||||||||||||||||||
Option Contracts | $ | (3.7) | $ | — | Other, net | $ | — | $ | — | |||||||||||||||||||||||
Non-derivative designated as Net Investment Hedge | $ | 21.7 | $ | — | Other, net | $ | — | $ | — |
2018 | ||||||||||||||||||||||||||||||||
(Millions of Dollars) | Total Gain (Loss) Recorded in OCI | Excluded Component Recorded in OCI | Income Statement Classification | Total Gain (Loss) Reclassified from OCI to Income | Excluded Component Amortized from OCI to Income | |||||||||||||||||||||||||||
Forward Contracts | $ | 37.1 | $ | 8.6 | Other, net | $ | 8.2 | $ | 8.2 | |||||||||||||||||||||||
Cross Currency Swap | $ | (2.3) | $ | 5.8 | Other, net | $ | 6.8 | $ | 6.8 | |||||||||||||||||||||||
Option Contracts | $ | (2.0) | $ | — | Other, net | $ | — | $ | — | |||||||||||||||||||||||
Non-derivative designated as Net Investment Hedge | $ | 61.8 | $ | — | Other, net | $ | — | $ | — |
(Millions of Dollars) | Income Statement Classification | 2020 | 2019 | 2018 | |||||||||||||||||||
Foreign Exchange Contracts | Other-net | $ | (15.7) | $ | (4.1) | $ | 17.0 |
(Millions of Dollars) | Income Statement Classification | 2019 | 2018 | 2017 | |||||||||
Foreign Exchange Contracts | Other-net | $ | (4.1 | ) | $ | 17.0 | $ | 51.5 |
2020 (As Restated) | 2019 (As Restated) | 2018 (As Restated) | |||||||||||||||
Numerator (in millions): | |||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,209.7 | $ | 954.0 | $ | 603.4 | |||||||||||
Add: Contract adjustment payments accretion | $ | 1.7 | $ | 1.7 | $ | 0.9 | |||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 1,211.4 | $ | 955.7 | $ | 604.3 |
2019 | 2018 | 2017 | |||||||||
Numerator (in millions): | |||||||||||
Net Earnings Attributable to Common Shareowners | $ | 955.8 | $ | 605.2 | $ | 1,227.3 |
Denominator (in thousands): | ||||||||
Basic weighted-average shares outstanding | 148,365 | 148,919 | 149,629 | |||||
Dilutive effect of stock contracts and awards | 2,193 | 2,724 | 2,820 | |||||
Diluted weighted-average shares outstanding | 150,558 | 151,643 | 152,449 |
Earnings per share of common stock: | |||||||||||
Basic | $ | 6.44 | $ | 4.06 | $ | 8.20 | |||||
Diluted | $ | 6.35 | $ | 3.99 | $ | 8.05 |
Denominator (in thousands): | |||||||||||||||||
Basic weighted-average shares outstanding | 154,176 | 148,365 | 148,919 | ||||||||||||||
Dilutive effect of stock contracts and awards | 8,251 | 8,016 | 7,861 | ||||||||||||||
Diluted weighted-average shares outstanding | 162,427 | 156,381 | 156,780 |
Earnings per share of common stock: | |||||||||||||||||
Basic | $ | 7.85 | $ | 6.43 | $ | 4.05 | |||||||||||
Diluted | $ | 7.46 | $ | 6.11 | $ | 3.85 |
2020 | 2019 | 2018 | |||||||||||||||
Number of stock options | 2,376 | 2,151 | 1,339 | ||||||||||||||
2019 | 2018 | 2017 | ||||||
Number of stock options | 2,151 | 1,339 | 389 |
2020 | 2019 | 2018 | |||||||||||||||
Outstanding, beginning of year | 153,506,409 | 151,302,450 | 154,038,031 | ||||||||||||||
Issued from treasury | 7,474,394 | 2,391,336 | 941,854 | ||||||||||||||
Returned to treasury | (228,541) | (187,377) | (3,677,435) | ||||||||||||||
Outstanding, end of year | 160,752,262 | 153,506,409 | 151,302,450 | ||||||||||||||
Shares subject to the forward share purchase contract | (3,645,510) | (3,645,510) | (3,645,510) | ||||||||||||||
Outstanding, less shares subject to the forward share purchase contract | 157,106,752 | 149,860,899 | 147,656,940 |
2019 | 2018 | 2017 | ||||||
Outstanding, beginning of year | 151,302,450 | 154,038,031 | 152,559,767 | |||||
Issued from treasury | 2,391,336 | 941,854 | 1,680,339 | |||||
Returned to treasury | (187,377 | ) | (3,677,435 | ) | (202,075 | ) | ||
Outstanding, end of year | 153,506,409 | 151,302,450 | 154,038,031 | |||||
Shares subject to the forward share purchase contract | (3,645,510 | ) | (3,645,510 | ) | (3,645,510 | ) | ||
Outstanding, less shares subject to the forward share purchase contract | 149,860,899 | 147,656,940 | 150,392,521 |
2020 | 2019 | ||||||||||
Employee stock purchase plan | 1,480,962 | 1,593,759 | |||||||||
Other stock-based compensation plans | 8,113,781 | 11,330,531 | |||||||||
Total shares reserved | 9,594,743 | 12,924,290 |
2019 | 2018 | ||||
Employee stock purchase plan | 1,593,759 | 1,606,224 | |||
Other stock-based compensation plans | 11,330,531 | 14,277,893 | |||
Total shares reserved | 12,924,290 | 15,884,117 |
2019 | 2018 | 2017 | |||||||||
Average expected volatility | 25.0 | % | 23.0 | % | 20.0 | % | |||||
Dividend yield | 1.8 | % | 2.0 | % | 1.5 | % | |||||
Risk-free interest rate | 1.5 | % | 2.9 | % | 2.2 | % | |||||
Expected term | 5.3 years | 5.3 years | 5.2 years | ||||||||
Fair value per option | $ | 30.09 | $ | 26.54 | $ | 30.71 | |||||
Weighted-average vesting period | 2.8 years | 2.9 years | 2.9 years |
2020 | 2019 | 2018 | |||||||||||||||
Average expected volatility | 35.0 | % | 25.0 | % | 23.0 | % | |||||||||||
Dividend yield | 1.6 | % | 1.8 | % | 2.0 | % | |||||||||||
Risk-free interest rate | 0.4 | % | 1.5 | % | 2.9 | % | |||||||||||
Expected life | 5.3 years | 5.3 years | 5.3 years | ||||||||||||||
Fair value per option | $ | 48.36 | $ | 30.09 | $ | 26.54 | |||||||||||
Weighted-average vesting period | 2.8 years | 2.8 years | 2.9 years |
Options | Price | ||||||||||
Outstanding, beginning of year | 6,454,671 | $ | 122.42 | ||||||||
Granted | 1,103,538 | 179.85 | |||||||||
Exercised | (1,419,699) | 94.24 | |||||||||
Forfeited | (263,264) | 148.68 | |||||||||
Outstanding, end of year | 5,875,246 | $ | 138.84 | ||||||||
Exercisable, end of year | 3,289,889 | $ | 121.65 |
Options | Price | |||||
Outstanding, beginning of year | 7,352,263 | $ | 107.36 | |||
Granted | 1,225,750 | 150.69 | ||||
Exercised | (1,851,761 | ) | 78.17 | |||
Forfeited | (271,581 | ) | 144.05 | |||
Outstanding, end of year | 6,454,671 | $ | 122.42 | |||
Exercisable, end of year | 3,720,639 | $ | 105.71 |
Outstanding Stock Options | Exercisable Stock Options | ||||||||||||||||
Exercise Price Ranges | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | |||||||||||
$75.00 and below | 991,566 | 1.64 | $ | 64.69 | 991,566 | 1.64 | $ | 64.69 | |||||||||
$75.01 — $125.00 | 2,154,836 | 5.91 | 107.44 | 1,932,443 | 5.80 | 106.10 | |||||||||||
$125.01 and higher | 3,308,269 | 8.97 | 149.48 | 796,630 | 8.13 | 155.84 | |||||||||||
6,454,671 | 6.83 | $ | 122.42 | 3,720,639 | 5.19 | $ | 105.71 |
Outstanding Stock Options | Exercisable Stock Options | ||||||||||||||||||||||||||||||||||
Exercise Price Ranges | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | |||||||||||||||||||||||||||||
$75.00 and below | 427,354 | 1.47 | $ | 67.96 | 427,354 | 1.47 | $ | 67.96 | |||||||||||||||||||||||||||
$75.01 — $125.00 | 1,483,536 | 4.97 | 108.40 | 1,483,536 | 4.97 | 108.40 | |||||||||||||||||||||||||||||
$125.01 and higher | 3,964,356 | 8.55 | 157.87 | 1,378,999 | 7.70 | 152.56 | |||||||||||||||||||||||||||||
5,875,246 | 7.13 | $ | 138.84 | 3,289,889 | 5.66 | $ | 121.65 |
Restricted Share Units & Awards | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 29, 2018 | 1,074,735 | $ | 129.65 | |||
Granted | 282,598 | 149.14 | ||||
Vested | (372,571 | ) | 119.92 | |||
Forfeited | (118,242 | ) | 136.62 | |||
Non-vested at December 28, 2019 | 866,520 | $ | 139.23 |
Restricted Share Units & Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Non-vested at December 28, 2019 | 866,520 | $ | 139.23 | ||||||||
Granted | 325,448 | 165.44 | |||||||||
Vested | (291,523) | 134.48 | |||||||||
Forfeited | (69,061) | 137.98 | |||||||||
Non-vested at January 2, 2021 | 831,384 | $ | 151.26 |
Share Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Non-vested at December 28, 2019 | 346,011 | $ | 127.27 | ||||||||||||||
Granted | 508,860 | 93.58 | |||||||||||||||
Vested | (62,613) | 127.27 | |||||||||||||||
Forfeited | (199,223) | 122.60 | |||||||||||||||
Non-vested at January 2, 2021 | 593,035 | $ | 99.93 |
Share Units | Weighted-Average Grant Date Fair Value | ||||||||||
Non-vested at December 28, 2019 | 607,532 | $ | 131.46 | ||||||||
Granted | 205,964 | 154.07 | |||||||||
Vested | (97,560) | 119.34 | |||||||||
Forfeited | (107,198) | 122.78 | |||||||||
Non-vested at January 2, 2021 | 608,738 | $ | 142.58 |
Share Units | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 29, 2018 | 627,407 | $ | 116.85 | |||
Granted | 639,957 | 123.01 | ||||
Vested | (154,217 | ) | 86.56 | |||
Forfeited | (105,910 | ) | 91.12 | |||
Non-vested at December 28, 2019 | 1,007,237 | $ | 128.10 |
(Millions of Dollars) | Currency translation adjustment and other | (Losses) gains on cash flow hedges, net of tax | Gains (losses) on net investment hedges, net of tax | Pension (losses) gains, net of tax | Total | ||||||||||||||||||||||||
Balance - December 29, 2018 | $ | (1,481.2) | $ | (26.8) | $ | 63.3 | $ | (369.6) | $ | (1,814.3) | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (36.0) | (40.5) | 60.0 | (53.3) | (69.8) | ||||||||||||||||||||||||
Reclassification adjustments to earnings | — | 13.1 | (26.0) | 12.4 | (0.5) | ||||||||||||||||||||||||
Net other comprehensive (loss) income | (36.0) | (27.4) | 34.0 | (40.9) | (70.3) | ||||||||||||||||||||||||
Balance - December 28, 2019 | $ | (1,517.2) | $ | (54.2) | $ | 97.3 | $ | (410.5) | $ | (1,884.6) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 266.2 | (64.2) | (38.3) | (53.4) | 110.3 | ||||||||||||||||||||||||
Adjustments related to sales of businesses | 15.7 | — | — | 0.6 | 16.3 | ||||||||||||||||||||||||
Reclassification adjustments to earnings | — | 15.4 | 13.8 | 15.1 | 44.3 | ||||||||||||||||||||||||
Net other comprehensive income (loss) | 281.9 | (48.8) | (24.5) | (37.7) | 170.9 | ||||||||||||||||||||||||
Balance - January 2, 2021 | $ | (1,235.3) | $ | (103.0) | $ | 72.8 | $ | (448.2) | $ | (1,713.7) |
(Millions of Dollars) | Currency translation adjustment and other | Unrealized (losses) gains on cash flow hedges, net of tax | Unrealized gains (losses) on net investment hedges, net of tax | Pension (losses) gains, net of tax | Total | ||||||||||||||
Balance - December 30, 2017 | $ | (1,108.2 | ) | $ | (112.6 | ) | $ | 3.4 | $ | (371.7 | ) | $ | (1,589.1 | ) | |||||
Other comprehensive (loss) income before reclassifications | (373.0 | ) | 70.4 | 71.2 | (9.7 | ) | (241.1 | ) | |||||||||||
Reclassification adjustments to earnings | — | 15.4 | (11.3 | ) | 11.8 | 15.9 | |||||||||||||
Net other comprehensive (loss) income | (373.0 | ) | 85.8 | 59.9 | 2.1 | (225.2 | ) | ||||||||||||
Balance - December 29, 2018 | $ | (1,481.2 | ) | $ | (26.8 | ) | $ | 63.3 | $ | (369.6 | ) | $ | (1,814.3 | ) | |||||
Other comprehensive (loss) income before reclassifications | (36.0 | ) | (40.5 | ) | 60.0 | (53.3 | ) | (69.8 | ) | ||||||||||
Reclassification adjustments to earnings | — | 13.1 | (26.0 | ) | 12.4 | (0.5 | ) | ||||||||||||
Net other comprehensive (loss) income | (36.0 | ) | (27.4 | ) | 34.0 | (40.9 | ) | (70.3 | ) | ||||||||||
Balance - December 28, 2019 | $ | (1,517.2 | ) | $ | (54.2 | ) | $ | 97.3 | $ | (410.5 | ) | $ | (1,884.6 | ) |
(Millions of Dollars) | 2019 | 2018 | ||||||||
Components of accumulated other comprehensive loss | Reclassification adjustments | Reclassification adjustments | Affected line item in Consolidated Statements of Operations | |||||||
Realized losses on cash flow hedges | $ | (6.5 | ) | $ | (17.9 | ) | Cost of sales | |||
Realized losses on cash flow hedges | (16.2 | ) | (15.3 | ) | Interest expense | |||||
Total before taxes | $ | (22.7 | ) | $ | (33.2 | ) | ||||
Tax effect | 9.6 | 17.8 | Income taxes | |||||||
Realized losses on cash flow hedges, net of tax | $ | (13.1 | ) | $ | (15.4 | ) | ||||
Realized gains on net investment hedges | $ | 34.2 | $ | 15.0 | Other, net | |||||
Tax effect | (8.2 | ) | (3.7 | ) | Income taxes | |||||
Realized gains on net investment hedges, net of tax | $ | 26.0 | $ | 11.3 | ||||||
Actuarial losses and prior service costs / credits | (15.3 | ) | (14.8 | ) | Other, net | |||||
Settlement losses | (1.0 | ) | (0.7 | ) | Other, net | |||||
Total before taxes | (16.3 | ) | (15.5 | ) | ||||||
Tax effect | 3.9 | 3.7 | Income taxes | |||||||
Amortization of defined benefit pension items, net of tax | $ | (12.4 | ) | $ | (11.8 | ) |
(Millions of Dollars) | 2020 | 2019 | ||||||||||||||||||
Components of accumulated other comprehensive loss | Reclassification adjustments | Reclassification adjustments | Affected line item in Consolidated Statements of Operations | |||||||||||||||||
Realized gains (losses) on cash flow hedges | $ | 12.4 | $ | (6.5) | Cost of sales | |||||||||||||||
Realized losses on cash flow hedges | (19.6) | — | Other, net | |||||||||||||||||
Realized losses on cash flow hedges | (16.3) | (16.2) | Interest expense | |||||||||||||||||
Total before taxes | $ | (23.5) | $ | (22.7) | ||||||||||||||||
Tax effect | 8.1 | 9.6 | Income taxes | |||||||||||||||||
Realized losses on cash flow hedges, net of tax | $ | (15.4) | $ | (13.1) | ||||||||||||||||
Realized (losses) gains on net investment hedges | $ | (18.2) | $ | 34.2 | Other, net | |||||||||||||||
Tax effect | 4.4 | (8.2) | Income taxes | |||||||||||||||||
Realized (losses) gains on net investment hedges, net of tax | $ | (13.8) | $ | 26.0 | ||||||||||||||||
Actuarial losses and prior service costs / credits | (19.5) | (15.3) | Other, net | |||||||||||||||||
Settlement losses | (0.6) | (1.0) | Other, net | |||||||||||||||||
Total before taxes | (20.1) | (16.3) | ||||||||||||||||||
Tax effect | 5.0 | 3.9 | Income taxes | |||||||||||||||||
Amortization of defined benefit pension items, net of tax | $ | (15.1) | $ | (12.4) |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Multi-employer plan expense | $ | 7.8 | $ | 7.2 | $ | 7.3 | |||||||||||
Other defined contribution plan expense | $ | 29.7 | $ | 36.2 | $ | 12.9 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Multi-employer plan expense | $ | 7.2 | $ | 7.3 | $ | 7.2 | |||||
Other defined contribution plan expense | $ | 36.2 | $ | 12.9 | $ | 27.5 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Service cost | $ | 6.8 | $ | 12.3 | $ | 7.5 | $ | 16.1 | $ | 14.6 | $ | 15.2 | |||||||||||||||||||||||
Interest cost | 35.3 | 47.1 | 42.8 | 22.5 | 30.3 | 28.6 | |||||||||||||||||||||||||||||
Expected return on plan assets | (58.7) | (61.7) | (68.7) | (41.2) | (45.6) | (46.5) | |||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 1.0 | 1.0 | 1.1 | (0.7) | (0.6) | (1.3) | |||||||||||||||||||||||||||||
Actuarial loss amortization | 8.5 | 8.0 | 7.8 | 11.7 | 8.6 | 8.5 | |||||||||||||||||||||||||||||
Special termination benefit | — | — | — | 0.2 | — | — | |||||||||||||||||||||||||||||
Settlement / curtailment loss | — | — | — | 0.6 | 1.0 | 0.7 | |||||||||||||||||||||||||||||
Net periodic pension (benefit) expense | $ | (7.1) | $ | 6.7 | $ | (9.5) | $ | 9.2 | $ | 8.3 | $ | 5.2 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Service cost | $ | 12.3 | $ | 7.5 | $ | 8.7 | $ | 14.6 | $ | 15.2 | $ | 13.7 | |||||||||||
Interest cost | 47.1 | 42.8 | 43.2 | 30.3 | 28.6 | 29.1 | |||||||||||||||||
Expected return on plan assets | (61.7 | ) | (68.7 | ) | (64.4 | ) | (45.6 | ) | (46.5 | ) | (45.5 | ) | |||||||||||
Amortization of prior service cost (credit) | 1.0 | 1.1 | 1.1 | (0.6 | ) | (1.3 | ) | (1.2 | ) | ||||||||||||||
Actuarial loss amortization | 8.0 | 7.8 | 8.3 | 8.6 | 8.5 | 9.4 | |||||||||||||||||
Settlement / curtailment loss | — | — | 2.9 | 1.0 | 0.7 | 12.7 | |||||||||||||||||
Net periodic pension expense (benefit) | $ | 6.7 | $ | (9.5 | ) | $ | (0.2 | ) | $ | 8.3 | $ | 5.2 | $ | 18.2 |
Other Benefit Plans | |||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | $ | 0.6 | $ | 0.3 | $ | 0.5 | |||||||||||
Interest cost | 1.5 | 1.6 | 1.6 | ||||||||||||||
Amortization of prior service credit | (1.3) | (1.4) | (1.3) | ||||||||||||||
Actuarial loss amortization | 0.3 | (0.3) | — | ||||||||||||||
Special termination benefit | 16.1 | — | — | ||||||||||||||
Net periodic post-retirement expense | $ | 17.2 | $ | 0.2 | $ | 0.8 |
Other Benefit Plans | |||||||||||
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Service cost | $ | 0.3 | $ | 0.5 | $ | 0.6 | |||||
Interest cost | 1.6 | 1.6 | 1.7 | ||||||||
Amortization of prior service credit | (1.4 | ) | (1.3 | ) | (1.4 | ) | |||||
Actuarial loss amortization | (0.3 | ) | — | — | |||||||
Net periodic post-retirement expense | $ | 0.2 | $ | 0.8 | $ | 0.9 |
(Millions of Dollars) | 2020 | ||||
Current year actuarial loss | $ | 51.9 | |||
Amortization of actuarial loss | (19.5) | ||||
Prior service cost from plan amendments | 0.2 | ||||
Settlement / curtailment loss | (0.6) | ||||
Currency / other | 18.4 | ||||
Total loss recognized in Accumulated other comprehensive loss (pre-tax) | $ | 50.4 |
(Millions of Dollars) | 2019 | ||
Current year actuarial loss | $ | 63.3 | |
Amortization of actuarial loss | (15.3 | ) | |
Prior service cost from plan amendments | 2.1 | ||
Settlement / curtailment loss | (1.0 | ) | |
Currency / other | 4.2 | ||
Total loss recognized in accumulated other comprehensive loss (pre-tax) | $ | 53.3 |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 1,325.4 | $ | 1,260.9 | $ | 1,449.9 | $ | 1,305.3 | $ | 52.2 | $ | 44.8 | |||||||||||||||||||||||
Service cost | 6.8 | 12.3 | 16.1 | 14.6 | 0.6 | 0.3 | |||||||||||||||||||||||||||||
Interest cost | 35.3 | 47.1 | 22.5 | 30.3 | 1.5 | 1.6 | |||||||||||||||||||||||||||||
Special termination benefit | — | — | 0.2 | — | 16.1 | — | |||||||||||||||||||||||||||||
Settlements/curtailments | — | — | (5.5) | (6.0) | — | — | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 123.3 | 130.4 | 112.0 | 140.6 | (2.9) | 8.6 | |||||||||||||||||||||||||||||
Plan amendments | 0.1 | 1.4 | 0.1 | 0.7 | — | — | |||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 84.9 | 25.8 | (1.8) | — | |||||||||||||||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||||||||||||||
Acquisitions, divestitures, and other | (4.0) | (10.0) | (6.5) | (2.2) | — | 2.4 | |||||||||||||||||||||||||||||
Benefits paid | (82.6) | (116.7) | (51.7) | (59.5) | (4.5) | (5.5) | |||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 1,404.3 | $ | 1,325.4 | $ | 1,622.3 | $ | 1,449.9 | $ | 61.2 | $ | 52.2 | |||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of prior year | $ | 1,103.5 | $ | 1,020.7 | $ | 1,093.5 | $ | 974.3 | $ | — | $ | — | |||||||||||||||||||||||
Actual return on plan assets | 160.9 | 190.0 | 119.3 | 133.2 | — | — | |||||||||||||||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||||||||||||||
Employer contributions | 13.7 | 19.5 | 22.0 | 22.6 | 4.5 | 5.5 | |||||||||||||||||||||||||||||
Settlements | — | — | (5.2) | (5.6) | — | — | |||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 55.6 | 30.4 | — | — | |||||||||||||||||||||||||||||
Acquisitions, divestitures, and other | (4.0) | (10.0) | (4.2) | (2.2) | — | — | |||||||||||||||||||||||||||||
Benefits paid | (82.6) | (116.7) | (51.7) | (59.5) | (4.5) | (5.5) | |||||||||||||||||||||||||||||
Fair value of plan assets at end of plan year | $ | 1,191.5 | $ | 1,103.5 | $ | 1,229.6 | $ | 1,093.5 | $ | — | $ | — | |||||||||||||||||||||||
Funded status — assets less than benefit obligation | $ | (212.8) | $ | (221.9) | $ | (392.7) | $ | (356.4) | $ | (61.2) | $ | (52.2) | |||||||||||||||||||||||
Unrecognized prior service cost (credit) | 3.8 | 4.7 | (17.4) | (17.5) | (0.6) | (2.0) | |||||||||||||||||||||||||||||
Unrecognized net actuarial loss (gain) | 278.7 | 266.2 | 360.3 | 318.7 | (3.2) | 1.1 | |||||||||||||||||||||||||||||
Net amount recognized | $ | 69.7 | $ | 49.0 | $ | (49.8) | $ | (55.2) | $ | (65.0) | $ | (53.1) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 1,260.9 | $ | 1,365.3 | $ | 1,305.3 | $ | 1,446.1 | $ | 44.8 | $ | 52.3 | |||||||||||
Service cost | 12.3 | 7.5 | 14.6 | 15.2 | 0.3 | 0.5 | |||||||||||||||||
Interest cost | 47.1 | 42.8 | 30.3 | 28.6 | 1.6 | 1.6 | |||||||||||||||||
Settlements/curtailments | — | — | (6.0 | ) | (4.3 | ) | — | — | |||||||||||||||
Actuarial loss (gain) | 130.4 | (106.2 | ) | 140.6 | (64.1 | ) | 8.6 | (6.2 | ) | ||||||||||||||
Plan amendments | 1.4 | 0.2 | 0.7 | 16.0 | — | 0.1 | |||||||||||||||||
Foreign currency exchange rates | — | — | 25.8 | (77.0 | ) | — | (1.0 | ) | |||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Acquisitions, divestitures, and other | (10.0 | ) | 34.0 | (2.2 | ) | 3.4 | 2.4 | 1.9 | |||||||||||||||
Benefits paid | (116.7 | ) | (82.7 | ) | (59.5 | ) | (58.9 | ) | (5.5 | ) | (4.4 | ) | |||||||||||
Benefit obligation at end of year | $ | 1,325.4 | $ | 1,260.9 | $ | 1,449.9 | $ | 1,305.3 | $ | 52.2 | $ | 44.8 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at end of prior year | $ | 1,020.7 | $ | 1,114.1 | $ | 974.3 | $ | 1,099.2 | $ | — | $ | — | |||||||||||
Actual return on plan assets | 190.0 | (52.9 | ) | 133.2 | (18.6 | ) | — | — | |||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Employer contributions | 19.5 | 19.4 | 22.6 | 20.9 | 5.5 | 4.4 | |||||||||||||||||
Settlements | — | — | (5.6 | ) | (4.2 | ) | — | — | |||||||||||||||
Foreign currency exchange rate changes | — | — | 30.4 | (61.5 | ) | — | — | ||||||||||||||||
Acquisitions, divestitures, and other | (10.0 | ) | 22.8 | (2.2 | ) | (2.9 | ) | — | — | ||||||||||||||
Benefits paid | (116.7 | ) | (82.7 | ) | (59.5 | ) | (58.9 | ) | (5.5 | ) | (4.4 | ) | |||||||||||
Fair value of plan assets at end of plan year | $ | 1,103.5 | $ | 1,020.7 | $ | 1,093.5 | $ | 974.3 | $ | — | $ | — | |||||||||||
Funded status — assets less than benefit obligation | $ | (221.9 | ) | $ | (240.2 | ) | $ | (356.4 | ) | $ | (331.0 | ) | $ | (52.2 | ) | $ | (44.8 | ) | |||||
Unrecognized prior service cost (credit) | 4.7 | 4.3 | (17.5 | ) | (18.2 | ) | (2.0 | ) | (3.4 | ) | |||||||||||||
Unrecognized net actuarial loss (gain) | 266.2 | 272.0 | 318.7 | 270.8 | 1.1 | (7.6 | ) | ||||||||||||||||
Net amount recognized | $ | 49.0 | $ | 36.1 | $ | (55.2 | ) | $ | (78.4 | ) | $ | (53.1 | ) | $ | (55.8 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Prepaid benefit cost (non-current) | $ | — | $ | — | $ | 0.2 | $ | 0.1 | $ | — | $ | — | |||||||||||||||||||||||
Current benefit liability | (7.3) | (7.6) | (10.2) | (9.1) | (6.8) | (4.5) | |||||||||||||||||||||||||||||
Non-current benefit liability | (205.5) | (214.3) | (382.7) | (347.4) | (54.4) | (47.7) | |||||||||||||||||||||||||||||
Net liability recognized | $ | (212.8) | $ | (221.9) | $ | (392.7) | $ | (356.4) | $ | (61.2) | $ | (52.2) |
Accumulated other comprehensive loss (pre-tax): | |||||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | 3.8 | $ | 4.7 | $ | (17.4) | $ | (17.5) | $ | (0.6) | $ | (2.0) | |||||||||||||||||||||||
Actuarial loss (gain) | 278.7 | 266.2 | 360.3 | 318.7 | (3.2) | 1.1 | |||||||||||||||||||||||||||||
282.5 | 270.9 | 342.9 | 301.2 | (3.8) | (0.9) | ||||||||||||||||||||||||||||||
Net amount recognized | $ | 69.7 | $ | 49.0 | $ | (49.8) | $ | (55.2) | $ | (65.0) | $ | (53.1) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid benefit cost (non-current) | $ | — | $ | — | $ | 0.1 | $ | 1.0 | $ | — | $ | — | |||||||||||
Current benefit liability | (7.6 | ) | (7.7 | ) | (9.1 | ) | (9.1 | ) | (4.5 | ) | (4.8 | ) | |||||||||||
Non-current benefit liability | (214.3 | ) | (232.5 | ) | (347.4 | ) | (322.9 | ) | (47.7 | ) | (40.0 | ) | |||||||||||
Net liability recognized | $ | (221.9 | ) | $ | (240.2 | ) | $ | (356.4 | ) | $ | (331.0 | ) | $ | (52.2 | ) | $ | (44.8 | ) | |||||
Accumulated other comprehensive loss (pre-tax): | |||||||||||||||||||||||
Prior service cost (credit) | $ | 4.7 | $ | 4.3 | $ | (17.5 | ) | $ | (18.2 | ) | $ | (2.0 | ) | $ | (3.4 | ) | |||||||
Actuarial loss (gain) | 266.2 | 272.0 | 318.7 | 270.8 | 1.1 | (7.6 | ) | ||||||||||||||||
$ | 270.9 | $ | 276.3 | $ | 301.2 | $ | 252.6 | $ | (0.9 | ) | $ | (11.0 | ) | ||||||||||
Net amount recognized | $ | 49.0 | $ | 36.1 | $ | (55.2 | ) | $ | (78.4 | ) | $ | (53.1 | ) | $ | (55.8 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Projected benefit obligation | $ | 1,325.4 | $ | 1,260.9 | $ | 1,447.2 | $ | 1,275.7 | |||||||
Accumulated benefit obligation | $ | 1,323.7 | $ | 1,257.6 | $ | 1,390.1 | $ | 1,228.6 | |||||||
Fair value of plan assets | $ | 1,103.5 | $ | 1,020.7 | $ | 1,090.8 | $ | 945.0 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Accumulated benefit obligation | $ | 1,401.5 | $ | 1,323.7 | $ | 1,531.8 | $ | 1,390.1 | |||||||||||||||
Fair value of plan assets | $ | 1,191.5 | $ | 1,103.5 | $ | 1,201.3 | $ | 1,090.8 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Projected benefit obligation | $ | 1,404.3 | $ | 1,325.4 | $ | 1,619.9 | $ | 1,448.6 | |||||||||||||||
Fair value of plan assets | $ | 1,191.5 | $ | 1,103.5 | $ | 1,227.0 | $ | 1,092.0 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Projected benefit obligation | $ | 1,325.4 | $ | 1,260.9 | $ | 1,448.6 | $ | 1,301.7 | |||||||
Accumulated benefit obligation | $ | 1,323.7 | $ | 1,257.6 | $ | 1,391.2 | $ | 1,252.7 | |||||||
Fair value of plan assets | $ | 1,103.5 | $ | 1,020.7 | $ | 1,092.0 | $ | 969.7 |
Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at year end: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 2.39 | % | 3.20 | % | 4.20 | % | 1.31 | % | 1.80 | % | 2.62 | % | 2.19 | % | 3.64 | % | 4.03 | % | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.00 | % | 3.50 | % | 3.00 | % | 3.29 | % | 3.30 | % | 3.44 | % | 3.50 | % | 3.50 | % | 3.50 | % | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate - service cost | 3.58 | % | 4.43 | % | 3.72 | % | 1.57 | % | 2.37 | % | 2.15 | % | 5.62 | % | 5.22 | % | 5.11 | % | |||||||||||||||||||||||||||||||||||
Discount rate - interest cost | 2.75 | % | 3.86 | % | 3.16 | % | 1.61 | % | 2.37 | % | 2.20 | % | 3.36 | % | 4.04 | % | 3.77 | % | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.30 | % | 3.44 | % | 3.45 | % | 3.50 | % | 3.50 | % | 3.50 | % | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | 5.25 | % | 6.25 | % | 6.25 | % | 3.90 | % | 4.73 | % | 4.37 | % | — | — | — |
Pension Benefits | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Other Benefits | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||||||||||||||||||||||||
Discount rate | 3.20 | % | 4.20 | % | 3.53 | % | 1.80 | % | 2.62 | % | 2.24 | % | 3.64 | % | 4.03 | % | 3.53 | % | ||||||||
Rate of compensation increase | 3.50 | % | 3.00 | % | 3.00 | % | 3.30 | % | 3.44 | % | 3.45 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||||
Discount rate - service cost | 4.43 | % | 3.72 | % | 4.10 | % | 2.37 | % | 2.15 | % | 2.27 | % | 5.22 | % | 5.11 | % | 4.53 | % | ||||||||
Discount rate - interest cost | 3.86 | % | 3.16 | % | 3.30 | % | 2.37 | % | 2.20 | % | 2.31 | % | 4.04 | % | 3.77 | % | 2.93 | % | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.44 | % | 3.45 | % | 3.63 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Expected return on plan assets | 6.25 | % | 6.25 | % | 6.25 | % | 4.73 | % | 4.37 | % | 4.41 | % | — | — | — |
Asset Category (Millions of Dollars) | 2019 | Level 1 | Level 2 | Asset Category (Millions of Dollars) | 2020 | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 35.8 | $ | 16.1 | $ | 19.7 | Cash and cash equivalents | $ | 83.2 | $ | 69.0 | $ | 14.2 | |||||||||||||||
Equity securities | Equity securities | |||||||||||||||||||||||||||
U.S. equity securities | 321.4 | 111.1 | 210.3 | U.S. equity securities | 329.4 | 91.2 | 238.2 | |||||||||||||||||||||
Foreign equity securities | 259.4 | 95.8 | 163.6 | Foreign equity securities | 234.1 | 65.7 | 168.4 | |||||||||||||||||||||
Fixed income securities | Fixed income securities | |||||||||||||||||||||||||||
Government securities | 741.6 | 271.5 | 470.1 | Government securities | 821.6 | 285.8 | 535.8 | |||||||||||||||||||||
Corporate securities | 751.5 | — | 751.5 | Corporate securities | 867.6 | — | 867.6 | |||||||||||||||||||||
Insurance contracts | 39.0 | — | 39.0 | Insurance contracts | 41.7 | — | 41.7 | |||||||||||||||||||||
Other | 48.3 | — | 48.3 | Other | 43.5 | — | 43.5 | |||||||||||||||||||||
Total | $ | 2,197.0 | $ | 494.5 | $ | 1,702.5 | Total | $ | 2,421.1 | $ | 511.7 | $ | 1,909.4 |
Asset Category (Millions of Dollars) | 2018 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 139.5 | $ | 113.6 | $ | 25.9 | |||||
Equity securities | |||||||||||
U.S. equity securities | 248.7 | 83.4 | 165.3 | ||||||||
Foreign equity securities | 220.0 | 85.2 | 134.8 | ||||||||
Fixed income securities | |||||||||||
Government securities | 642.3 | 205.5 | 436.8 | ||||||||
Corporate securities | 656.6 | — | 656.6 | ||||||||
Insurance contracts | 37.1 | — | 37.1 | ||||||||
Other | 50.8 | — | 50.8 | ||||||||
Total | $ | 1,995.0 | $ | 487.7 | $ | 1,507.3 |
Asset Category (Millions of Dollars) | 2019 | Level 1 | Level 2 | ||||||||||||||
Cash and cash equivalents | $ | 35.8 | $ | 16.1 | $ | 19.7 | |||||||||||
Equity securities | |||||||||||||||||
U.S. equity securities | 321.4 | 111.1 | 210.3 | ||||||||||||||
Foreign equity securities | 259.4 | 95.8 | 163.6 | ||||||||||||||
Fixed income securities | |||||||||||||||||
Government securities | 741.6 | 271.5 | 470.1 | ||||||||||||||
Corporate securities | 751.5 | — | 751.5 | ||||||||||||||
Insurance contracts | 39.0 | — | 39.0 | ||||||||||||||
Other | 48.3 | — | 48.3 | ||||||||||||||
Total | $ | 2,197.0 | $ | 494.5 | $ | 1,702.5 |
(Millions of Dollars) | Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Years 6-10 | |||||||||||||||||||||
Future payments | $ | 1,393.7 | $ | 138.5 | $ | 138.6 | $ | 139.1 | $ | 140.9 | $ | 139.8 | $ | 696.8 |
(Millions of Dollars) | Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Years 6-10 | |||||||||||||||||||||||||||||||||||||
Future payments | $ | 1,440.2 | $ | 146.5 | $ | 146.4 | $ | 148.6 | $ | 146.4 | $ | 144.6 | $ | 707.7 |
(Millions of Dollars) | Total Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||
December 28, 2019 | |||||||||||||||
Money market fund | $ | 1.2 | $ | 1.2 | $ | — | $ | — | |||||||
Derivative assets | $ | 29.3 | $ | — | $ | 29.3 | $ | — | |||||||
Derivative liabilities | $ | 65.5 | $ | — | $ | 65.5 | $ | — | |||||||
Non-derivative hedging instrument | $ | 335.5 | $ | — | $ | 335.5 | $ | — | |||||||
Contingent consideration liability | $ | 196.1 | $ | — | $ | — | $ | 196.1 | |||||||
December 29, 2018 | |||||||||||||||
Money market fund | $ | 4.8 | $ | 4.8 | $ | — | $ | — | |||||||
Derivative assets | $ | 32.9 | $ | — | $ | 32.9 | $ | — | |||||||
Derivative liabilities | $ | 21.3 | $ | — | $ | 21.3 | $ | — | |||||||
Non-derivative hedging instrument | $ | 228.9 | $ | — | $ | 228.9 | $ | — | |||||||
Contingent consideration liability | $ | 169.2 | $ | — | $ | — | $ | 169.2 |
(Millions of Dollars) | Total Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
January 2, 2021 | |||||||||||||||||||||||
Money market fund | $ | 10.3 | $ | 10.3 | $ | — | $ | — | |||||||||||||||
Derivative assets | $ | 14.0 | $ | — | $ | 14.0 | $ | — | |||||||||||||||
Derivative liabilities | $ | 191.0 | $ | — | $ | 191.0 | $ | — | |||||||||||||||
Contingent consideration liability | $ | 187.0 | $ | — | $ | — | $ | 187.0 | |||||||||||||||
December 28, 2019 | |||||||||||||||||||||||
Money market fund | $ | 1.2 | $ | 1.2 | $ | — | $ | — | |||||||||||||||
Derivative assets | $ | 29.3 | $ | — | $ | 29.3 | $ | — | |||||||||||||||
Derivative liabilities | $ | 65.5 | $ | — | $ | 65.5 | $ | — | |||||||||||||||
Non-derivative hedging instrument | $ | 335.5 | $ | — | $ | 335.5 | $ | — | |||||||||||||||
Contingent consideration liability | $ | 196.1 | $ | — | $ | — | $ | 196.1 |
December 28, 2019 | December 29, 2018 | ||||||||||||||
(Millions of Dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Other investments | $ | 14.4 | $ | 14.8 | $ | 7.6 | $ | 7.7 | |||||||
Long-term debt, including current portion | $ | 3,179.5 | $ | 3,601.0 | $ | 3,822.3 | $ | 3,905.4 |
January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||
(Millions of Dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Other investments | $ | 13.3 | $ | 13.9 | $ | 14.4 | $ | 14.8 | |||||||||||||||
Long-term debt, including current portion | $ | 4,245.4 | $ | 4,934.5 | $ | 3,179.5 | $ | 3,601.0 |
(Millions of Dollars) | December 29, 2018 | Net Additions | Usage | Currency | December 28, 2019 | ||||||||||||||
Severance and related costs | $ | 105.7 | $ | 131.9 | $ | (97.4 | ) | $ | 0.1 | $ | 140.3 | ||||||||
Facility closures and asset impairments | 3.1 | 22.2 | (17.9 | ) | 0.1 | 7.5 | |||||||||||||
Total | $ | 108.8 | $ | 154.1 | $ | (115.3 | ) | $ | 0.2 | $ | 147.8 |
(Millions of Dollars) | December 28, 2019 | Net Additions | Usage | Currency | January 2, 2021 | ||||||||||||||||||||||||
Severance and related costs | $ | 140.3 | $ | 63.9 | $ | (111.0) | $ | (5.7) | $ | 87.5 | |||||||||||||||||||
Facility closures and asset impairments | 7.5 | 19.1 | (23.9) | — | 2.7 | ||||||||||||||||||||||||
Total | $ | 147.8 | $ | 83.0 | $ | (134.9) | $ | (5.7) | $ | 90.2 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net Sales | |||||||||||
Tools & Storage | $ | 10,062.1 | $ | 9,814.0 | $ | 9,045.0 | |||||
Industrial | 2,434.7 | 2,187.8 | 1,974.3 | ||||||||
Security | 1,945.4 | 1,980.6 | 1,947.3 | ||||||||
Consolidated | $ | 14,442.2 | $ | 13,982.4 | $ | 12,966.6 | |||||
Segment Profit | |||||||||||
Tools & Storage | $ | 1,533.3 | $ | 1,393.1 | $ | 1,438.9 | |||||
Industrial | 334.1 | 319.8 | 345.9 | ||||||||
Security | 126.6 | 169.3 | 211.7 | ||||||||
Segment Profit | 1,994.0 | 1,882.2 | 1,996.5 | ||||||||
Corporate overhead | (229.5 | ) | (202.8 | ) | (217.4 | ) | |||||
Other, net | (249.1 | ) | (287.0 | ) | (269.2 | ) | |||||
Gain (loss) on sales of businesses | 17.0 | (0.8 | ) | 264.1 | |||||||
Pension settlement | — | — | (12.2 | ) | |||||||
Restructuring charges | (154.1 | ) | (160.3 | ) | (51.5 | ) | |||||
Loss on debt extinguishment | (17.9 | ) | — | — | |||||||
Interest income | 53.9 | 68.7 | 40.1 | ||||||||
Interest expense | (284.3 | ) | (277.9 | ) | (222.6 | ) | |||||
Earnings before income taxes and equity interest | $ | 1,130.0 | $ | 1,022.1 | $ | 1,527.8 | |||||
Capital and Software Expenditures | |||||||||||
Tools & Storage | $ | 297.2 | $ | 353.7 | $ | 327.2 | |||||
Industrial | 89.6 | 95.8 | 76.2 | ||||||||
Security | 37.9 | 42.6 | 39.0 | ||||||||
Consolidated | $ | 424.7 | $ | 492.1 | $ | 442.4 | |||||
Depreciation and Amortization | |||||||||||
Tools & Storage | $ | 327.8 | $ | 300.1 | $ | 271.9 | |||||
Industrial | 159.3 | 125.9 | 107.4 | ||||||||
Security | 73.1 | 80.5 | 81.4 | ||||||||
Consolidated | $ | 560.2 | $ | 506.5 | $ | 460.7 | |||||
Segment Assets | |||||||||||
Tools & Storage | $ | 13,642.4 | $ | 13,122.6 | $ | 12,870.3 | |||||
Industrial | 4,207.0 | 3,620.5 | 3,413.3 | ||||||||
Security | 3,448.6 | 3,413.6 | 3,407.0 | ||||||||
21,298.0 | 20,156.7 | 19,690.6 | |||||||||
Corporate assets | (701.4 | ) | (748.7 | ) | (592.9 | ) | |||||
Consolidated | $ | 20,596.6 | $ | 19,408.0 | $ | 19,097.7 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net Sales | |||||||||||||||||
Tools & Storage | $ | 10,329.7 | $ | 10,062.1 | $ | 9,814.0 | |||||||||||
Industrial | 2,352.7 | 2,434.7 | 2,187.8 | ||||||||||||||
Security | 1,852.2 | 1,945.4 | 1,980.6 | ||||||||||||||
Consolidated | $ | 14,534.6 | $ | 14,442.2 | $ | 13,982.4 | |||||||||||
Segment Profit | |||||||||||||||||
Tools & Storage | $ | 1,841.7 | $ | 1,533.3 | $ | 1,393.1 | |||||||||||
Industrial | 225.6 | 334.1 | 319.8 | ||||||||||||||
Security | 108.7 | 126.6 | 169.3 | ||||||||||||||
Segment Profit | 2,176.0 | 1,994.0 | 1,882.2 | ||||||||||||||
Corporate overhead | (297.7) | (229.5) | (202.8) | ||||||||||||||
Other, net | (262.8) | (249.1) | (287.0) | ||||||||||||||
(Loss) gain on sales of businesses | (13.5) | 17.0 | (0.8) | ||||||||||||||
Restructuring charges | (83.0) | (154.1) | (160.3) | ||||||||||||||
Loss on debt extinguishments | (46.9) | (17.9) | — | ||||||||||||||
Interest income | 18.0 | 53.9 | 68.7 | ||||||||||||||
Interest expense | (223.1) | (284.3) | (277.9) | ||||||||||||||
Earnings before income taxes and equity interest | $ | 1,267.0 | $ | 1,130.0 | $ | 1,022.1 | |||||||||||
Capital and Software Expenditures | |||||||||||||||||
Tools & Storage | $ | 225.6 | $ | 297.2 | $ | 353.7 | |||||||||||
Industrial | 101.6 | 89.6 | 95.8 | ||||||||||||||
Security | 20.9 | 37.9 | 42.6 | ||||||||||||||
Consolidated | $ | 348.1 | $ | 424.7 | $ | 492.1 | |||||||||||
Depreciation and Amortization | |||||||||||||||||
Tools & Storage | $ | 308.5 | $ | 327.8 | $ | 300.1 | |||||||||||
Industrial | 199.4 | 159.3 | 125.9 | ||||||||||||||
Security | 70.2 | 73.1 | 80.5 | ||||||||||||||
Consolidated | $ | 578.1 | $ | 560.2 | $ | 506.5 | |||||||||||
Segment Assets | |||||||||||||||||
Tools & Storage | $ | 14,294.9 | $ | 13,642.4 | $ | 13,122.6 | |||||||||||
Industrial | 5,621.4 | 4,207.0 | 3,620.5 | ||||||||||||||
Security | 3,493.5 | 3,448.6 | 3,413.6 | ||||||||||||||
23,409.8 | 21,298.0 | 20,156.7 | |||||||||||||||
Corporate assets | 156.5 | (701.4) | (748.7) | ||||||||||||||
Consolidated | $ | 23,566.3 | $ | 20,596.6 | $ | 19,408.0 |
2020 | 2019 | 2018 | |||||||||||||||
Industrial | 9.2 | % | 10.9 | % | 11.9 | % | |||||||||||
Security | 44.4 | % | 45.8 | % | 44.9 | % |
2019 | 2018 | 2017 | ||||||
Industrial | 10.9 | % | 11.9 | % | 13.4 | % | ||
Security | 45.8 | % | 44.9 | % | 48.1 | % |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Engineered Fastening | $ | 1,717.8 | $ | 1,738.5 | $ | 1,766.6 | |||||||||||
Infrastructure | 634.9 | 696.2 | 421.2 | ||||||||||||||
Industrial | $ | 2,352.7 | $ | 2,434.7 | $ | 2,187.8 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Engineered Fastening | $ | 1,738.5 | $ | 1,766.6 | $ | 1,554.3 | |||||
Infrastructure | 696.2 | 421.2 | 420.0 | ||||||||
Industrial | $ | 2,434.7 | $ | 2,187.8 | $ | 1,974.3 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Net Sales | |||||||||||||||||
United States | $ | 8,800.5 | $ | 8,472.1 | $ | 7,700.3 | |||||||||||
Canada | 687.0 | 609.9 | 628.3 | ||||||||||||||
Other Americas | 595.5 | 717.9 | 801.5 | ||||||||||||||
France | 581.3 | 610.2 | 627.8 | ||||||||||||||
Other Europe | 2,791.0 | 2,870.8 | 2,989.9 | ||||||||||||||
Asia | 1,079.3 | 1,161.3 | 1,234.6 | ||||||||||||||
Consolidated | $ | 14,534.6 | $ | 14,442.2 | $ | 13,982.4 | |||||||||||
Property, Plant & Equipment, net | |||||||||||||||||
United States | $ | 1,156.7 | $ | 1,046.8 | $ | 1,018.3 | |||||||||||
Canada | 25.5 | 27.4 | 25.5 | ||||||||||||||
Other Americas | 121.0 | 117.9 | 112.7 | ||||||||||||||
France | 54.9 | 57.3 | 63.9 | ||||||||||||||
Other Europe | 349.2 | 352.3 | 356.9 | ||||||||||||||
Asia | 346.5 | 357.8 | 337.9 | ||||||||||||||
Consolidated | $ | 2,053.8 | $ | 1,959.5 | $ | 1,915.2 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Net Sales | |||||||||||
United States | $ | 8,472.1 | $ | 7,700.3 | $ | 7,025.7 | |||||
Canada | 609.9 | 628.3 | 583.3 | ||||||||
Other Americas | 717.9 | 801.5 | 790.7 | ||||||||
France | 610.2 | 627.8 | 623.8 | ||||||||
Other Europe | 2,870.8 | 2,989.9 | 2,791.1 | ||||||||
Asia | 1,161.3 | 1,234.6 | 1,152.0 | ||||||||
Consolidated | $ | 14,442.2 | $ | 13,982.4 | $ | 12,966.6 | |||||
Property, Plant & Equipment | |||||||||||
United States | $ | 1,046.8 | $ | 1,018.3 | $ | 850.2 | |||||
Canada | 27.4 | 25.5 | 30.0 | ||||||||
Other Americas | 117.9 | 112.7 | 111.2 | ||||||||
France | 57.3 | 63.9 | 65.1 | ||||||||
Other Europe | 352.3 | 356.9 | 378.0 | ||||||||
Asia | 357.8 | 337.9 | 308.0 | ||||||||
Consolidated | $ | 1,959.5 | $ | 1,915.2 | $ | 1,742.5 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | 148.9 | $ | 144.9 | |||||||
Intangible assets | 741.4 | 737.1 | |||||||||
Liability on undistributed foreign earnings | 29.7 | 159.3 | |||||||||
Lease right-of-use asset | 126.5 | 129.7 | |||||||||
Other | 128.3 | 89.5 | |||||||||
Total deferred tax liabilities | $ | 1,174.8 | $ | 1,260.5 | |||||||
Deferred tax assets: | |||||||||||
Employee benefit plans | $ | 244.2 | $ | 235.4 | |||||||
Basis differences in liabilities | 89.7 | 82.0 | |||||||||
Operating loss, capital loss and tax credit carryforwards | 808.7 | 1,100.3 | |||||||||
Lease liability | 129.6 | 129.6 | |||||||||
Intangible assets | 301.3 | 5.3 | |||||||||
Capitalized research and development costs | 52.6 | — | |||||||||
Other | 217.4 | 149.2 | |||||||||
Total deferred tax assets | $ | 1,843.5 | $ | 1,701.8 | |||||||
Net Deferred Tax Asset before Valuation Allowance | $ | 668.7 | $ | 441.3 | |||||||
Valuation Allowance | $ | (1,058.9) | $ | (1,065.0) | |||||||
Net Deferred Tax Liability after Valuation Allowance | $ | (390.2) | $ | (623.7) |
(Millions of Dollars) | 2019 | 2018 | |||||
Deferred tax liabilities: | |||||||
Depreciation | $ | 144.9 | $ | 128.5 | |||
Amortization of intangibles | 731.8 | 672.8 | |||||
Liability on undistributed foreign earnings | 159.3 | 202.5 | |||||
Lease right-of-use asset | 129.7 | — | |||||
Other | 89.5 | 73.9 | |||||
Total deferred tax liabilities | $ | 1,255.2 | $ | 1,077.7 | |||
Deferred tax assets: | |||||||
Employee benefit plans | $ | 235.4 | $ | 222.1 | |||
Basis differences in liabilities | 82.0 | 93.3 | |||||
Operating loss, capital loss and tax credit carryforwards | 1,100.3 | 710.6 | |||||
Lease liability | 129.6 | — | |||||
Other | 149.2 | 147.3 | |||||
Total deferred tax assets | $ | 1,696.5 | $ | 1,173.3 | |||
Net Deferred Tax Asset before Valuation Allowance | $ | 441.3 | $ | 95.6 | |||
Valuation Allowance | $ | (1,065.0 | ) | $ | (626.7 | ) | |
Net Deferred Tax Liability after Valuation Allowance | $ | (623.7 | ) | $ | (531.1 | ) |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 181.2 | $ | 214.5 | $ | 444.1 | |||||||||||
Foreign | 1,085.8 | 915.5 | 578.0 | ||||||||||||||
Earnings before income taxes and equity interest | $ | 1,267.0 | $ | 1,130.0 | $ | 1,022.1 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
United States | $ | 214.5 | $ | 444.1 | $ | 715.2 | |||||
Foreign | 915.5 | 578.0 | 812.6 | ||||||||
Earnings before income taxes and equity interest | $ | 1,130.0 | $ | 1,022.1 | $ | 1,527.8 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Current: | |||||||||||
Federal | $ | (23.7 | ) | $ | 25.4 | $ | 590.6 | ||||
Foreign | 195.9 | 175.0 | 224.6 | ||||||||
State | 6.5 | 24.8 | 25.4 | ||||||||
Total current | $ | 178.7 | $ | 225.2 | $ | 840.6 | |||||
Deferred: | |||||||||||
Federal | $ | 5.7 | $ | 29.7 | $ | (513.0 | ) | ||||
Foreign | (32.9 | ) | 132.7 | (33.0 | ) | ||||||
State | 9.3 | 28.7 | 6.3 | ||||||||
Total deferred | (17.9 | ) | 191.1 | (539.7 | ) | ||||||
Income taxes | $ | 160.8 | $ | 416.3 | $ | 300.9 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 62.7 | $ | (23.7) | $ | 25.4 | |||||||||||
Foreign | 199.8 | 195.9 | 175.0 | ||||||||||||||
State | 20.6 | 6.5 | 24.8 | ||||||||||||||
Total current | $ | 283.1 | $ | 178.7 | $ | 225.2 | |||||||||||
Deferred: | |||||||||||||||||
Federal | $ | (29.4) | $ | 5.7 | $ | 29.7 | |||||||||||
Foreign | (208.8) | (32.9) | 132.7 | ||||||||||||||
State | (3.5) | 9.3 | 28.7 | ||||||||||||||
Total deferred | (241.7) | (17.9) | 191.1 | ||||||||||||||
Income taxes | $ | 41.4 | $ | 160.8 | $ | 416.3 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Tax at statutory rate | $ | 237.3 | $ | 214.6 | $ | 534.1 | |||||
State income taxes, net of federal benefits | 22.1 | 24.7 | 13.3 | ||||||||
Foreign tax rate differential | (53.3 | ) | (33.2 | ) | (149.0 | ) | |||||
Uncertain tax benefits | (53.1 | ) | 4.5 | 64.4 | |||||||
Change in valuation allowance | 10.5 | 5.1 | (5.4 | ) | |||||||
Change in deferred tax liabilities on undistributed foreign earnings | — | — | (94.1 | ) | |||||||
Basis difference for businesses Held for Sale | — | — | 27.9 | ||||||||
Stock-based compensation | (24.1 | ) | (4.1 | ) | (23.2 | ) | |||||
Sale of businesses | 6.7 | — | (47.3 | ) | |||||||
U.S. Federal tax reform | — | 199.6 | 23.6 | ||||||||
Other | 14.7 | 5.1 | (43.4 | ) | |||||||
Income taxes | $ | 160.8 | $ | 416.3 | $ | 300.9 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Tax at statutory rate | $ | 266.1 | $ | 237.3 | $ | 214.6 | |||||||||||
State income taxes, net of federal benefits | 13.0 | 22.1 | 24.7 | ||||||||||||||
Foreign tax rate differential | (41.9) | (53.3) | (33.2) | ||||||||||||||
Uncertain tax benefits | 20.3 | (53.1) | 4.5 | ||||||||||||||
Change in valuation allowance | (26.8) | 10.5 | 5.1 | ||||||||||||||
Change in deferred tax liabilities on undistributed foreign earnings | (118.8) | — | — | ||||||||||||||
Stock-based compensation | (9.8) | (24.1) | (4.1) | ||||||||||||||
U.S. Federal tax reform | — | — | 199.6 | ||||||||||||||
Capital loss | (40.4) | — | — | ||||||||||||||
U.S. federal tax on foreign earnings | (17.7) | 4.1 | 2.7 | ||||||||||||||
Intra-entity asset transfer of intellectual property | (27.7) | — | — | ||||||||||||||
Other | 25.1 | 17.3 | 2.4 | ||||||||||||||
Income taxes | $ | 41.4 | $ | 160.8 | $ | 416.3 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Balance at beginning of year | $ | 406.3 | $ | 406.3 | $ | 387.8 | |||||||||||
Additions based on tax positions related to current year | 29.1 | 48.6 | 28.3 | ||||||||||||||
Additions based on tax positions related to prior years | 35.8 | 78.5 | 103.0 | ||||||||||||||
Reductions based on tax positions related to prior years | (19.3) | (91.1) | (91.5) | ||||||||||||||
Settlements | (0.5) | (0.3) | (2.5) | ||||||||||||||
Statute of limitations expirations | (7.9) | (35.7) | (18.8) | ||||||||||||||
Balance at end of year | $ | 443.5 | $ | 406.3 | $ | 406.3 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Balance at beginning of year | $ | 406.3 | $ | 387.8 | $ | 309.8 | |||||
Additions based on tax positions related to current year | 48.6 | 28.3 | 34.6 | ||||||||
Additions based on tax positions related to prior years | 78.5 | 103.0 | 82.5 | ||||||||
Reductions based on tax positions related to prior years | (91.1 | ) | (91.5 | ) | (4.2 | ) | |||||
Settlements | (0.3 | ) | (2.5 | ) | (0.3 | ) | |||||
Statute of limitations expirations | (35.7 | ) | (18.8 | ) | (34.6 | ) | |||||
Balance at end of year | $ | 406.3 | $ | 406.3 | $ | 387.8 |
(Millions of Dollars) | 2020 | 2019 | |||||||||
Operating lease cost | $ | 155.4 | $ | 151.6 | |||||||
Short-term lease cost | 26.3 | 26.6 | |||||||||
Variable lease cost | 7.0 | 8.5 | |||||||||
Sublease income | (0.8) | (2.8) | |||||||||
Total lease cost | $ | 187.9 | $ | 183.9 |
(Millions of Dollars) | 2019 | ||
Operating lease cost | $ | 151.6 | |
Short-term lease cost | 26.6 | ||
Variable lease cost | 8.5 | ||
Sublease income | (2.8 | ) | |
Total lease cost | $ | 183.9 |
(Millions of Dollars) | Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||||||||||||||
Lease obligations | $ | 599.3 | $ | 141.4 | $ | 109.6 | $ | 82.3 | $ | 68.3 | $ | 50.1 | $ | 147.6 |
(Millions of Dollars) | Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||||
Lease obligations | $ | 607.4 | $ | 144.1 | $ | 110.7 | $ | 82.4 | $ | 59.4 | $ | 53.7 | $ | 157.1 |
(Millions of Dollars) | Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||||||||||||||
Marketing commitments | $ | 39.4 | $ | 27.2 | $ | 11.8 | $ | 0.4 | $ | — | $ | — | $ | — |
(Millions of Dollars) | Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||||
Marketing commitments | $ | 34.5 | $ | 24.9 | $ | 6.5 | $ | 2.7 | $ | 0.4 | $ | — | $ | — |
(Millions of Dollars) | Term | Maximum Potential Payment | Carrying Amount of Liability | ||||||||||||||
Guarantees on the residual values of leased properties | One to five years | $ | 89.6 | $ | — | ||||||||||||
Standby letters of credit | Up to three years | 162.3 | — | ||||||||||||||
Commercial customer financing arrangements | Up to six years | 64.7 | 7.9 | ||||||||||||||
Total | $ | 316.6 | $ | 7.9 |
(Millions of Dollars) | Term | Maximum Potential Payment | Carrying Amount of Liability | ||||||
Guarantees on the residual values of leased properties | One to five years | $ | 102.6 | $ | — | ||||
Standby letters of credit | Up to three years | 154.4 | — | ||||||
Commercial customer financing arrangements | Up to six years | 64.7 | 6.3 | ||||||
Total | $ | 321.7 | $ | 6.3 |
(Millions of Dollars) | 2020 | 2019 | 2018 | ||||||||||||||
Balance beginning of period | $ | 100.1 | $ | 102.1 | $ | 108.5 | |||||||||||
Warranties and guarantees issued | 128.5 | 128.1 | 110.4 | ||||||||||||||
Warranty payments and currency | (114.8) | (130.1) | (116.8) | ||||||||||||||
Balance end of period | $ | 113.8 | $ | 100.1 | $ | 102.1 |
(Millions of Dollars) | 2019 | 2018 | 2017 | ||||||||
Balance beginning of period | $ | 102.1 | $ | 108.5 | $ | 103.4 | |||||
Warranties and guarantees issued | 128.1 | 110.4 | 105.3 | ||||||||
Warranty payments and currency | (130.1 | ) | (116.8 | ) | (100.2 | ) | |||||
Balance end of period | $ | 100.1 | $ | 102.1 | $ | 108.5 |
(Millions of Dollars) | 2020 | 2019 | 2018 | |||||||||||||||||
Pre-tax income | $ | 4.1 | $ | 3.0 | $ | 4.0 |
(Millions of Dollars) | 2019 | 2018 | 2017 | |||||||||
Pre-tax income | $ | 4.6 | $ | 11.7 | $ | 13.4 |
Quarter | Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars, except per share amounts) | First | Second | Third | Fourth | Year | (Millions of Dollars, except per share amounts) | First | Second | Third | Fourth | Year | |||||||||||||||||||||||||||||||||||||||||
(As Restated) (2) | (As Restated) (2) | (As Restated) (2) | (As Restated) (2) | (As Restated) (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | $ | 3,129.4 | $ | 3,147.4 | $ | 3,850.2 | $ | 4,407.6 | $ | 14,534.6 | |||||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 1,023.1 | 1,012.7 | 1,376.3 | 1,555.8 | 4,967.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative (1) | Selling, general and administrative (1) | 748.5 | 732.0 | 738.9 | 870.2 | 3,089.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | 133.1 | 238.7 | 395.2 | 467.7 | 1,234.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net earnings attributable to non-controlling interest | Less: Net earnings attributable to non-controlling interest | (0.1) | 0.3 | 0.3 | 0.4 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Preferred stock dividends and beneficial conversion feature | Less: Preferred stock dividends and beneficial conversion feature | 0.5 | 4.9 | 9.4 | 9.3 | 24.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | Net Earnings Attributable to Common Shareowners | $ | 132.7 | $ | 233.5 | $ | 385.5 | $ | 458.0 | $ | 1,209.7 | |||||||||||||||||||||||||||||||||||||||||
Add: Contract adjustment payments accretion | Add: Contract adjustment payments accretion | 0.9 | 0.5 | 0.1 | 0.2 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | Net Earnings Attributable to Common Shareowners - Diluted | $ | 133.6 | $ | 234.0 | $ | 385.6 | $ | 458.2 | $ | 1,211.4 | |||||||||||||||||||||||||||||||||||||||||
Earnings per share of common stock: | Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.88 | $ | 1.52 | $ | 2.47 | $ | 2.92 | $ | 7.85 | |||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 0.83 | $ | 1.45 | $ | 2.37 | $ | 2.80 | $ | 7.46 | |||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 3,333.6 | $ | 3,761.3 | $ | 3,633.1 | $ | 3,714.2 | $ | 14,442.2 | Net Sales | $ | 3,333.6 | $ | 3,761.3 | $ | 3,633.1 | $ | 3,714.2 | $ | 14,442.2 | |||||||||||||||||||||||||||||||
Gross profit | 1,105.6 | 1,299.8 | 1,239.5 | 1,160.6 | 4,805.5 | Gross profit | 1,105.6 | 1,299.8 | 1,239.5 | 1,160.6 | 4,805.5 | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative (1) | 778.9 | 782.3 | 756.1 | 723.7 | 3,041.0 | Selling, general and administrative (1) | 778.9 | 782.3 | 756.1 | 723.7 | 3,041.0 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | 170.4 | 357.4 | 231.1 | 199.1 | 958.0 | Net earnings | 170.4 | 357.4 | 231.1 | 199.1 | 958.0 | |||||||||||||||||||||||||||||||||||||||||
Less: Net earnings attributable to non-controlling interest | 0.5 | 1.1 | 0.6 | — | 2.2 | Less: Net earnings attributable to non-controlling interest | 0.5 | 1.1 | 0.6 | — | 2.2 | |||||||||||||||||||||||||||||||||||||||||
Less: Preferred stock dividends and beneficial conversion feature | Less: Preferred stock dividends and beneficial conversion feature | $ | 0.4 | $ | 0.5 | $ | 0.5 | $ | 0.4 | $ | 1.8 | |||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 169.9 | $ | 356.3 | $ | 230.5 | $ | 199.1 | $ | 955.8 | Net Earnings Attributable to Common Shareowners | $ | 169.5 | $ | 355.8 | $ | 230.0 | $ | 198.7 | $ | 954.0 | |||||||||||||||||||||||||||||||
Add: Contract adjustment payments accretion | Add: Contract adjustment payments accretion | 0.4 | 0.4 | 0.4 | 0.5 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | Net Earnings Attributable to Common Shareowners - Diluted | $ | 169.9 | $ | 356.2 | $ | 230.4 | $ | 199.2 | $ | 955.7 | |||||||||||||||||||||||||||||||||||||||||
Earnings per share of common stock: | Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.15 | $ | 2.41 | $ | 1.55 | $ | 1.34 | $ | 6.44 | Basic | $ | 1.15 | $ | 2.40 | $ | 1.55 | $ | 1.33 | $ | 6.43 | |||||||||||||||||||||||||||||||
Diluted | $ | 1.13 | $ | 2.37 | $ | 1.53 | $ | 1.32 | $ | 6.35 | Diluted | $ | 1.09 | $ | 2.29 | $ | 1.48 | $ | 1.26 | $ | 6.11 | |||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 3,209.3 | $ | 3,643.6 | $ | 3,494.8 | $ | 3,634.7 | $ | 13,982.4 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 1,165.7 | 1,287.1 | 1,238.4 | 1,159.9 | 4,851.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative (1) | 785.6 | 805.8 | 798.9 | 781.4 | 3,171.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | 170.1 | 293.4 | 248.3 | (106.0 | ) | 605.8 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net (loss) earnings attributable to non-controlling interest | (0.5 | ) | (0.2 | ) | 0.5 | 0.8 | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Common Shareowners | $ | 170.6 | $ | 293.6 | $ | 247.8 | $ | (106.8 | ) | $ | 605.2 | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.13 | $ | 1.96 | $ | 1.67 | $ | (0.72 | ) | $ | 4.06 | |||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.11 | $ | 1.93 | $ | 1.65 | $ | (0.72 | ) | $ | 3.99 |
First Quarter 2020 | First Quarter 2019 | ||||||||||||||||||||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | As Previously Reported | Restatement Impacts | As Restated | |||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 133.2 | $ | (0.5) | $ | 132.7 | $ | 169.9 | $ | (0.4) | $ | 169.5 | |||||||||||||||||||||||
Add: Contract adjustment payments accretion | — | $ | 0.9 | $ | 0.9 | — | $ | 0.4 | $ | 0.4 | |||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 133.2 | $ | 0.4 | $ | 133.6 | $ | 169.9 | $ | — | $ | 169.9 | |||||||||||||||||||||||
Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | (0.01) | $ | 0.88 | $ | 1.15 | $ | — | $ | 1.15 | |||||||||||||||||||||||
Diluted | $ | 0.88 | $ | (0.05) | $ | 0.83 | $ | 1.13 | $ | (0.04) | $ | 1.09 |
Second Quarter 2020 | Second Quarter 2019 | ||||||||||||||||||||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | As Previously Reported | Restatement Impacts | As Restated | |||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 233.7 | $ | (0.2) | $ | 233.5 | $ | 356.3 | $ | (0.5) | $ | 355.8 | |||||||||||||||||||||||
Add: Contract adjustment payments accretion | — | $ | 0.5 | $ | 0.5 | — | $ | 0.4 | $ | 0.4 | |||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 233.7 | $ | 0.3 | $ | 234.0 | $ | 356.3 | $ | (0.1) | $ | 356.2 | |||||||||||||||||||||||
Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.52 | $ | — | $ | 1.52 | $ | 2.41 | $ | (0.01) | $ | 2.40 | |||||||||||||||||||||||
Diluted | $ | 1.52 | $ | (0.07) | $ | 1.45 | $ | 2.37 | $ | (0.08) | $ | 2.29 |
Third Quarter 2020 | Third Quarter 2019 | ||||||||||||||||||||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | As Previously Reported | Restatement Impacts | As Restated | |||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 385.5 | $ | — | $ | 385.5 | $ | 230.5 | $ | (0.5) | $ | 230.0 | |||||||||||||||||||||||
Add: Contract adjustment payments accretion | — | $ | 0.1 | $ | 0.1 | — | $ | 0.4 | $ | 0.4 | |||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 385.5 | $ | 0.1 | $ | 385.6 | $ | 230.5 | $ | (0.1) | $ | 230.4 | |||||||||||||||||||||||
Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.47 | $ | — | $ | 2.47 | $ | 1.55 | $ | — | $ | 1.55 | |||||||||||||||||||||||
Diluted | $ | 2.44 | $ | (0.07) | $ | 2.37 | $ | 1.53 | $ | (0.05) | $ | 1.48 |
Fourth Quarter 2020 | Fourth Quarter 2019 | ||||||||||||||||||||||||||||||||||
(Millions of Dollars, except per share amounts) | As Previously Reported | Restatement Impacts | As Restated | As Previously Reported | Restatement Impacts | As Restated | |||||||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 458.0 | $ | — | $ | 458.0 | $ | 199.1 | $ | (0.4) | $ | 198.7 | |||||||||||||||||||||||
Add: Contract adjustment payments accretion | — | $ | 0.2 | $ | 0.2 | — | $ | 0.5 | $ | 0.5 | |||||||||||||||||||||||||
Net Earnings Attributable to Common Shareowners - Diluted | $ | 458.0 | $ | 0.2 | $ | 458.2 | $ | 199.1 | $ | 0.1 | $ | 199.2 | |||||||||||||||||||||||
Earnings per share of common stock: | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.92 | $ | — | $ | 2.92 | $ | 1.34 | $ | (0.01) | $ | 1.33 | |||||||||||||||||||||||
Diluted | $ | 2.88 | $ | (0.08) | $ | 2.80 | $ | 1.32 | $ | (0.06) | $ | 1.26 |
Diluted EPS Impact | ||||||||
Acquisition-Related Charges & Other | (As Restated) | |||||||
• Q1 2020 — $62 million loss ($50 million after-tax and equity interest) | $(0.30) per diluted share | |||||||
• Q2 2020 — $169 million loss ($13 million after-tax and equity interest) | $(0.08) per diluted share | |||||||
• Q3 2020 — $89 million loss ($71 million after-tax and equity interest) | $(0.44) per diluted share | |||||||
• Q4 2020 — $80 million loss ($65 million after-tax and equity interest) | $(0.40) per diluted share |
Diluted EPS Impact | ||||||||
Acquisition-Related Charges & Other | ||||||||
• Q1 2019 — $52 million loss ($43 million after-tax and equity interest) | ||||||||
• Q2 2019 — $33 million loss ($44 million after-tax and equity interest) | ||||||||
• Q3 2019 — $114 million loss ($91 million after-tax and equity interest) | ||||||||
• Q4 2019 — $164 million loss ($131 million after-tax and equity interest) |
3.1 | (a) | ||||||||
(b) | |||||||||
(c) | |||||||||
(d) | |||||||||
(e) | |||||||||
(f) | |||||||||
(g) | |||||||||
3.2 | (a) | ||||||||
4.1 | (a) | ||||||||
4.2 | (a) |
(c) | |||||||||
(d) | |||||||||
(e) | |||||||||
(f) | |||||||||
(h) | |||||||||
4.3 | (a) | ||||||||
4.4 | (b) | ||||||||
4.5 | |||||||||
Description of the Company's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of | |||||||||
10.12 | The Stanley Works Non-Employee Directors’ Benefit Trust Agreement dated December 27, 1989 and amended as of January 1, 1991 by and between The Stanley Works and Fleet National Bank, as successor trustee (incorporated by reference to Exhibit (10)(xvii)(a) to the Company’s Annual Report on Form 10-K for year ended December 29, 1990). P | |||||||
(a) | ||||||||
(b) | |||||||||
(c) | |||||||||
10.14 | |||||||||
(a) | |||||||||
(b) | |||||||||
(c) | |||||||||
(d) | |||||||||
(e) | |||||||||
(a) | |||||||||
(b) | |||||||||
(c) | |||||||||
(d) | |||||||||
(e) | |||||||||
(f) | |||||||||
10.17 | ||||||||
10.18 | ||||||||
10.23 | |||||||||
(a) | |||||||||
(b) | |||||||||
Employment Offer Letter, | |||||||||
23 | |||||||||
24 | |||||||||
31.1 | (a) | ||||||||
31.1 | (b) | ||||||||
32.1 | |||||||||
32.2 |
99.1 | Policy on Confidential Proxy Voting and Independent Tabulation and Inspection of Elections as adopted by The Board of Directors October 23, 1991 (incorporated by reference to Exhibit (28)(i) to the Quarterly Report on Form 10-Q for the quarter ended September 28, 1991). P | |||||||
101 | The following materials from Stanley Black & Decker Inc.'s Annual Report on Form ended Consolidated Statements of Operations for the fiscal years ended January 2, 2021, December 28, 2019, and December 29, | |||||||
104 | The cover page of Stanley Black & Decker Inc.'s Annual Report on Form |
* | Management contract or compensation plan or arrangement. | ||||
P | Paper Filing | ||||
** | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |