STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | YEAR TO DATE 2014 | | | | | | | | YEAR TO DATE 2013 | | |
| | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 | | | | | | | | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 | | | | | | |
NET SALES | | | | | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | $ | 7,033.0 |
| | $ | — |
| | $ | 7,033.0 |
| | | | | | | | $ | 6,705.0 |
| | $ | — |
| | $ | 6,705.0 |
| | | | | | |
Industrial | | 2,044.4 |
| | — |
| | 2,044.4 |
| | | | | | | | 1,888.6 |
| | — |
| | 1,888.6 |
| | | | | | |
Security | | 2,261.2 |
| | — |
| | 2,261.2 |
| | | | | | | | 2,295.9 |
| | — |
| | 2,295.9 |
| | | | | | |
Total | | $ | 11,338.6 |
| | $ | — |
| | $ | 11,338.6 |
| |
|
| | | | | | $ | 10,889.5 |
| | $ | — |
| | $ | 10,889.5 |
| | | | | | |
SEGMENT PROFIT | | | | | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | $ | 1,074.4 |
| | $ | 4.1 |
| | $ | 1,078.5 |
| | | | | | | | $ | 951.7 |
| | $ | 17.9 |
| | $ | 969.6 |
| | | | | | |
Industrial | | 350.6 |
| | 3.7 |
| | 354.3 |
| | | | | | | | 280.2 |
| | 20.1 |
| | 300.3 |
| | | | | | |
Security | | 259.2 |
| | 6.9 |
| | 266.1 |
| | | | | | | | 235.2 |
| | 37.8 |
| | 273.0 |
| | | | | | |
Segment Profit | | 1,684.2 |
| | 14.7 |
| | 1,698.9 |
| |
|
| | | | | | 1,467.1 |
| | 75.8 |
| | 1,542.9 |
| | | | | | |
Corporate Overhead | | (177.4 | ) | | 18.7 |
| | (158.7 | ) | | | | | | | | (254.0 | ) | | 89.4 |
| | (164.6 | ) | | | | | | |
Total | | $ | 1,506.8 |
| | $ | 33.4 |
| | $ | 1,540.2 |
| |
|
| | | | | | $ | 1,213.1 |
| | $ | 165.2 |
| | $ | 1,378.3 |
| | | | | | |
Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | 15.3 | % | | | | 15.3 | % | |
|
| | | | | | 14.2 | % | |
| | 14.5 | % | | | | | | |
Industrial | | 17.1 | % | | | | 17.3 | % | |
|
| | | | | | 14.8 | % | |
| | 15.9 | % | | | | | | |
Security | | 11.5 | % | | | | 11.8 | % | |
|
| | | | | | 10.2 | % | |
| | 11.9 | % | | | | | | |
Segment Profit | | 14.9 | % | | | | 15.0 | % | |
|
| | | | | | 13.5 | % | |
| | 14.2 | % | | | | | | |
Corporate Overhead | | (1.6 | )% | | | | (1.4 | )% | |
|
| | | | | | (2.3 | )% | |
| | (1.5 | )% | | | | | | |
Total | | 13.3 | % | | | | 13.6 | % | |
|
| | | | | | 11.1 | % | |
| | 12.7 | % | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | FIRST QUARTER 2014 | | SECOND QUARTER 2014 | | THIRD QUARTER 2014 | | FOURTH QUARTER 2014 |
| | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 | | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 | | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 | | GAAP1 | | Merger & Acquisition-Related Charges2 | | Normalized3 |
NET SALES | | | | | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | $ | 1,574.8 |
| | $ | — |
| | $ | 1,574.8 |
| | $ | 1,771.8 |
| | $ | — |
| | $ | 1,771.8 |
| | $ | 1,806.4 |
| | $ | — |
| | $ | 1,806.4 |
| | $ | 1,880.0 |
| | $ | — |
| | $ | 1,880.0 |
|
Industrial | | 497.4 |
| | — |
| | 497.4 |
| | 516.7 |
| | — |
| | 516.7 |
| | 517.7 |
| | — |
| | 517.7 |
| | 512.6 |
| | — |
| | 512.6 |
|
Security | | 544.9 |
| | — |
| | 544.9 |
| | 571.6 |
| | — |
| | 571.6 |
| | 554.8 |
| | — |
| | 554.8 |
| | 589.9 |
| | — |
| | 589.9 |
|
Total | | $ | 2,617.1 |
| | $ | — |
| | $ | 2,617.1 |
| | $ | 2,860.1 |
| | $ | — |
| | $ | 2,860.1 |
| | $ | 2,878.9 |
| | $ | — |
| | $ | 2,878.9 |
| | $ | 2,982.5 |
| | $ | — |
| | $ | 2,982.5 |
|
SEGMENT PROFIT | | | | | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | $ | 212.8 |
| | $ | 1.6 |
| | $ | 214.4 |
| | $ | 276.9 |
| | $ | 0.8 |
| | $ | 277.7 |
| | $ | 284.1 |
| | $ | 0.6 |
| | $ | 284.7 |
| | $ | 300.6 |
| | $ | 1.1 |
| | $ | 301.7 |
|
Industrial | | 86.7 |
| | 1.0 |
| | 87.7 |
| | 91.5 |
| | 0.6 |
| | 92.1 |
| | 91.5 |
| | 0.7 |
| | 92.2 |
| | 80.9 |
| | 1.4 |
| | 82.3 |
|
Security | | 52.8 |
| | 2.2 |
| | 55.0 |
| | 69.4 |
| | 1.2 |
| | 70.6 |
| | 67.6 |
| | 0.4 |
| | 68.0 |
| | 69.4 |
| | 3.1 |
| | 72.5 |
|
Segment Profit | | 352.3 |
| | 4.8 |
| | 357.1 |
| | 437.8 |
| | 2.6 |
| | 440.4 |
| | 443.2 |
| | 1.7 |
| | 444.9 |
| | 450.9 |
| | 5.6 |
| | 456.5 |
|
Corporate Overhead | | (36.5 | ) | | 2.5 |
| | (34.0 | ) | | (45.1 | ) | | 3.0 |
| | (42.1 | ) | | (37.7 | ) | | 4.4 |
| | (33.3 | ) | | (58.1 | ) | | 8.8 |
| | (49.3 | ) |
Total | | $ | 315.8 |
| | $ | 7.3 |
| | $ | 323.1 |
| | $ | 392.7 |
| | $ | 5.6 |
| | $ | 398.3 |
| | $ | 405.5 |
| | $ | 6.1 |
| | $ | 411.6 |
| | $ | 392.8 |
| | $ | 14.4 |
| | $ | 407.2 |
|
Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | | | | |
Tools & Storage | | 13.5 | % | | | | 13.6 | % | | 15.6 | % | | | | 15.7 | % | | 15.7 | % | | | | 15.8 | % | | 16.0 | % | | | | 16.0 | % |
Industrial | | 17.4 | % | | | | 17.6 | % | | 17.7 | % | | | | 17.8 | % | | 17.7 | % | | | | 17.8 | % | | 15.8 | % | | | | 16.1 | % |
Security | | 9.7 | % | | | | 10.1 | % | | 12.1 | % | | | | 12.4 | % | | 12.2 | % | | | | 12.3 | % | | 11.8 | % | | | | 12.3 | % |
Segment Profit | | 13.5 | % | | | | 13.6 | % | | 15.3 | % | | | | 15.4 | % | | 15.4 | % | | | | 15.5 | % | | 15.1 | % | | | | 15.3 | % |
Corporate Overhead | | (1.4 | )% | | | | (1.3 | )% | | (1.6 | )% | | | | (1.5 | )% | | (1.3 | )% | | | | (1.2 | )% | | (1.9 | )% | | | | (1.7 | )% |
Total | | 12.1 | % | | | | 12.3 | % | | 13.7 | % | | | | 13.9 | % | | 14.1 | % | | | | 14.3 | % | | 13.2 | % | | | | 13.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | |
1 |
| Reported, as adjusted for the combination of the complementary elements of the CDIY, IAR and Healthcare businesses ("the combination"). |
2 |
| Merger and acquisition-related charges in 2014, as adjusted for the combination, relate primarily to integration and consulting costs. Merger and acquisition-related charges in 2013, as adjusted for the combination, relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs. |
3 |
| The normalized 2014 and 2013 information adjusted for the combination, as reconciled to GAAP adjusted for the combination above, is considered relevant to aid analysis of the Company's margin and earnings results aside from the material impact of the merger & acquisition-related charges. |