Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 01, 2017 | Jul. 01, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | STANLEY BLACK & DECKER, INC. | ||
Trading Symbol | SWK | ||
Entity Central Index Key | 93,556 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 152,584,499 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 16,900,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net Sales | $ 11,406.9 | $ 11,171.8 | $ 11,338.6 |
Costs and Expenses | |||
Cost of sales | 7,139.7 | 7,099.8 | 7,235.9 |
Selling, general and administrative | 2,602 | 2,459.1 | 2,575 |
Provision for doubtful accounts | 21.9 | 27.3 | 20.9 |
Other-net | 196.9 | 222 | 239.6 |
Restructuring charges and asset impairments | 49 | 47.6 | 18.8 |
Interest income | (23.2) | (15.2) | (13.6) |
Interest expense | 194.5 | 180.4 | 177.2 |
Costs and Expenses, Total | 10,180.8 | 10,021 | 10,253.8 |
Earnings from continuing operations before income taxes | 1,226.1 | 1,150.8 | 1,084.8 |
Income taxes on continuing operations | 261.2 | 248.6 | 227.1 |
Earnings from continuing operations | 964.9 | 902.2 | 857.7 |
Less: Net (loss) earnings attributable to non-controlling interests | (0.4) | (1.6) | 0.5 |
Net earnings from continuing operations attributable to common shareowners | 965.3 | 903.8 | 857.2 |
Loss from discontinued operations before income taxes | 0 | (19.3) | (104) |
Income tax expense (benefit) on discontinued operations | 0 | 0.8 | (7.7) |
Net loss from discontinued operations | 0 | (20.1) | (96.3) |
Net Earnings Attributable to Common Shareowners | $ 965.3 | $ 883.7 | $ 760.9 |
Basic earnings (loss) per share of common stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 6.61 | $ 6.10 | $ 5.49 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | (0.14) | (0.62) |
Earnings Per Share, Basic | 6.61 | 5.96 | 4.87 |
Diluted earnings (loss) per share of common stock: | |||
Continuing operations (USD per share) | 6.51 | 5.92 | 5.37 |
Discontinued operations (USD per share) | 0 | (0.13) | (0.60) |
Total diluted earnings per share of common stock (USD per share) | $ 6.51 | $ 5.79 | $ 4.76 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net earnings | $ 965.3 | $ 883.7 | $ 760.9 |
Other comprehensive (loss) income: | |||
Currency translation adjustment and other | (285.4) | (504.1) | (726.3) |
Unrealized gains (losses) on cash flow hedges, net of tax | 5.8 | (1.2) | 26.4 |
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 76.8 | 49 | 39.6 |
Pension losses, net of tax | (24.2) | 32.3 | (110.9) |
Other Comprehensive Income (Loss), Net of Tax | (227) | (424) | (771.2) |
Comprehensive (loss) income attributable to common shareowners | $ 738.3 | $ 459.7 | $ (10.3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 1,131.8 | $ 465.4 |
Accounts and notes receivable, net | 1,302.8 | 1,331.8 |
Inventories, net | 1,478 | 1,526.4 |
Prepaid expenses | 193.2 | 172.4 |
Assets held for sale | 523.4 | 0 |
Other current assets | 159.3 | 166.1 |
Total Current Assets | 4,788.5 | 3,662.1 |
Property, Plant and Equipment, net | 1,451.2 | 1,450.2 |
Goodwill | 6,694 | 7,084.3 |
Customer Relationships, net | 635.7 | 778.7 |
Trade Names, net | 1,560.1 | 1,641.8 |
Other Intangible Assets, Net | 103.7 | 121 |
Other Assets | 401.7 | 389.7 |
Total Assets | 15,634.9 | 15,127.8 |
Current Liabilities | ||
Short-term borrowings | 4.3 | 2.5 |
Current maturities of long-term debt | 7.8 | 5.1 |
Accounts payable | 1,640.4 | 1,533.1 |
Accrued expenses | 1,101.5 | 1,261.9 |
Liabilities held for sale | 53.5 | 0 |
Total Current Liabilities | 2,807.5 | 2,802.6 |
Long-Term Debt | 3,815.3 | 3,792.1 |
Deferred Taxes | 735.4 | 825.9 |
Post-retirement Benefits | 644.3 | 669.4 |
Other Liabilities | 1,258.8 | 1,178.6 |
Stanley Black & Decker, Inc. Shareowners’ Equity | ||
Preferred stock, without par value: Authorized and unissued 10,000,000 shares | 0 | 0 |
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2016 and 2015 Issued 176,902,738 shares in 2016 and 2015 | 442.3 | 442.3 |
Retained earnings | 5,127.3 | 4,491.7 |
Additional paid in capital | 4,774.4 | 4,421.7 |
Accumulated other comprehensive loss | (1,921.2) | (1,694.2) |
ESOP | (25.9) | (34.9) |
Shareowners' equity subtotal | 8,396.9 | 7,626.6 |
Less: common stock in treasury (24,342,971 shares in 2016 and 22,958,447 shares in 2015) | (2,029.9) | (1,815) |
Stanley Black & Decker, Inc. Shareowners’ Equity | 6,367 | 5,811.6 |
Non-controlling interests | 6.6 | 47.6 |
Total Shareowners’ Equity | 6,373.6 | 5,859.2 |
Total Liabilities and Shareowners’ Equity | $ 15,634.9 | $ 15,127.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Jan. 02, 2016 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares unissued | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Issued | 176,902,738 | 176,902,738 |
Cost of common stock in treasury, shares | 24,342,971 | 22,958,447 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Operating Activities: | |||
Net earnings attributable to common shareowners | $ 965.3 | $ 883.7 | $ 760.9 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Depreciation and amortization of property, plant and equipment | 263.6 | 256.9 | 263.4 |
Amortization of intangibles | 144.4 | 157.1 | 186.4 |
Asset impairments | 10.7 | 9.8 | 63.1 |
Stock-based compensation expense | 81.2 | 67.9 | 57.1 |
Provision for doubtful accounts | 21.9 | 29.5 | 22.1 |
Deferred tax (benefit) expense | (25.7) | (1.3) | 42.4 |
Other non-cash items | 29.3 | 18.8 | 12.3 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (69.4) | (41.3) | 81.6 |
Inventories | (23.9) | (54.7) | (175.9) |
Accounts payable | 159.7 | (9.7) | 71.7 |
Deferred revenue | (9.2) | 7.7 | 12.8 |
Accrued expenses | (28.1) | (59) | 59.7 |
Other current assets | 26 | 19.8 | 25.8 |
Accrued expenses | 1.2 | (12.6) | (13.2) |
Defined benefit liabilities | (56.8) | (65.8) | (155) |
Other long-term liabilities | 42.5 | (13) | (58.5) |
Other long-term assets | (47.5) | (11.5) | 39.2 |
Net cash provided by operating activities | 1,485.2 | 1,182.3 | 1,295.9 |
Investing Activities: | |||
Capital expenditures | (347) | (311.4) | (291) |
Proceeds from sales of assets | (10.6) | (29.1) | (15.4) |
Business acquisitions, net of cash acquired | (59.3) | (17.6) | (3.2) |
Proceeds (payments) from sales of businesses, net of cash sold | 24 | 0 | (3.9) |
Proceeds (payments) from net investment hedge settlements | 104.7 | 137.7 | (61.4) |
Payments for (Proceeds from) Other Investing Activities | (17) | (42.8) | (38.1) |
Net cash used in investing activities | (284) | (205) | (382.2) |
Financing Activities: | |||
Payments on long-term debt | 0 | (16.1) | (46.6) |
Proceeds from (Repayments of) Short-term Debt | 1.9 | 1.2 | (391) |
Stock purchase contract fees | (13.8) | (17) | (16.4) |
Purchase of common stock for treasury | (374.1) | (649.8) | (28.2) |
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 632.5 | 0 |
Payments for Repurchase of Preferred Stock and Preference Stock | 0 | (632.5) | 0 |
Forward stock purchase contract | 147.4 | 0 | 0 |
Payments to Noncontrolling Interests | (12.5) | (33.5) | 0 |
Termination of interest rate swaps | 27 | 0 | (33.4) |
Proceeds from issuances of common stock | 418.5 | 163.5 | 71.3 |
Other | (330.9) | (319.9) | (321.3) |
Proceeds from (Payments for) Other Financing Activities | (1.8) | (4) | (0.6) |
Net cash used in financing activities | (433.1) | (875.6) | (766.2) |
Effect of exchange rate changes on cash | (101.7) | (132.9) | (147.1) |
Increase (decrease) in cash and cash equivalents | 666.4 | (31.2) | 0.4 |
Cash and cash equivalents, beginning of year | 465.4 | 496.6 | 496.2 |
Cash and cash equivalents, end of year | $ 1,131.8 | $ 465.4 | $ 496.6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareowners' Equity - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ESOP | Treasury Stock [Member] | Non- Controlling Interests |
Beginning Balance at Dec. 28, 2013 | $ 6,880.5 | $ 0 | $ 442.3 | $ 4,878.6 | $ 3,484.9 | $ (499) | $ (53.2) | $ (1,454.4) | $ 81.3 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net earnings | 761.4 | 760.9 | 0.5 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (771.2) | (771.2) | |||||||
Cash dividends declared - $1.80 per share in 2012, $1.64 per share in 2011 and $1.34 per share in 2010 | (321.3) | (321.3) | |||||||
Issuance of common stock | (60.4) | (69.4) | (129.8) | ||||||
Treasury Stock, Forward Share Repurchase Contracts | (150) | ||||||||
Equity units — non-cash stock contract fees | (150) | ||||||||
Payments for Repurchase of Common Stock | $ 28.2 | ||||||||
Repurchase of common stock (9,227,564 shares) | 340,576 | ||||||||
Noncontrolling Interest, Increase from Business Combination | $ 1.6 | 1.6 | |||||||
Non-controlling interest buyout | (0.6) | (0.6) | |||||||
Issuance of preferred stock | 0 | ||||||||
Accelerated Share Repurchase Program, Adjustment | (28.2) | (28.2) | |||||||
Stock-based compensation related | 57.1 | 57.1 | |||||||
Tax benefit related to stock options exercised | 10.8 | 10.8 | |||||||
ESOP and related tax benefit | 11.4 | 1.8 | 9.6 | ||||||
Ending Balance at Jan. 03, 2015 | 6,511.9 | 0 | 442.3 | 4,727.1 | 3,926.3 | (1,270.2) | (43.6) | (1,352.8) | 82.8 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net earnings | 882.1 | 883.7 | (1.6) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (424) | (424) | |||||||
Cash dividends declared - $1.80 per share in 2012, $1.64 per share in 2011 and $1.34 per share in 2010 | (319.9) | (319.9) | |||||||
Issuance of common stock | (135.3) | (96.1) | (231.4) | ||||||
Treasury Stock, Forward Share Repurchase Contracts | (350) | (350) | |||||||
Payments for Repurchase of Common Stock | $ 649.8 | ||||||||
Repurchase of common stock (9,227,564 shares) | 9,227,564 | ||||||||
Non-controlling interest buyout | $ (32.8) | (0.8) | (33.6) | ||||||
Issuance of preferred stock | (632.5) | (632.5) | (220.1) | ||||||
Accelerated Share Repurchase Program, Adjustment | (649.8) | 263.9 | (913.7) | ||||||
Stock Issued During Period, Value, New Issues | 632.5 | 632.5 | |||||||
Stock-based compensation related | 67.9 | 67.9 | |||||||
Tax benefit related to stock options exercised | 28.2 | 28.2 | |||||||
ESOP and related tax benefit | 10.3 | 1.6 | 8.7 | ||||||
Ending Balance at Jan. 02, 2016 | 5,859.2 | 0 | 442.3 | 4,421.7 | 4,491.7 | (1,694.2) | (34.9) | (1,815) | 47.6 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net earnings | 964.9 | 965.3 | (0.4) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (227) | (227) | |||||||
Cash dividends declared - $1.80 per share in 2012, $1.64 per share in 2011 and $1.34 per share in 2010 | (330.9) | (330.9) | |||||||
Issuance of common stock | (407) | (20.9) | (386.1) | ||||||
Treasury Stock, Forward Share Repurchase Contracts | 0 | (150) | (150) | ||||||
Payments for Repurchase of Common Stock | 374.1 | ||||||||
Repurchase of common stock- 12,613,068 shares in 2012, 164,710 shares in 2011 and 79,357 shares in 2010 | $ (374.1) | 76.9 | (451) | ||||||
Repurchase of common stock (9,227,564 shares) | 4,651,463 | ||||||||
Non-controlling interest buyout | $ (28.4) | (12.2) | (40.6) | ||||||
Issuance of preferred stock | 0 | ||||||||
Stock-based compensation related | 81.2 | 81.2 | |||||||
Tax benefit related to stock options exercised | 11.5 | 11.5 | |||||||
ESOP and related tax benefit | 10.2 | 1.2 | 9 | ||||||
Ending Balance at Dec. 31, 2016 | $ 6,373.6 | $ 0 | $ 442.3 | $ 4,774.4 | $ 5,127.3 | $ (1,921.2) | $ (25.9) | $ (2,029.9) | $ 6.6 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareowners' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Cash dividends declared, (USD per share) | $ 2.26 | $ 2.14 | $ 2.04 |
Treasury Stock, Shares, Acquired | 3,940,087 | 340,576 | |
Stock Repurchased During Period, Shares | 4,651,463 | 9,227,564 | 340,576 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 02, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Stanley Black & Decker, Inc. and Subsidiaries Fiscal years ended December 31, 2016 , January 2, 2016 , and January 3, 2015 (Millions of Dollars) ADDITIONS Beginning Balance Charged To Costs And Expenses Charged To Other Accounts (b) (a) Deductions Ending Balance Allowance for Doubtful Accounts: Year Ended 2016 $ 72.9 $ 21.9 $ 4.8 $ (22.1 ) $ 77.5 Year Ended 2015 $ 60.7 $ 27.3 $ 0.7 $ (15.8 ) $ 72.9 Year Ended 2014 $ 64.4 $ 20.9 $ (8.3 ) $ (16.3 ) $ 60.7 Tax Valuation Allowance: Year Ended 2016 (c) $ 480.7 $ 74.5 $ 4.4 $ (34.1 ) $ 525.5 Year Ended 2015 $ 551.9 $ 30.5 $ 1.7 $ (103.4 ) $ 480.7 Year Ended 2014 $ 549.7 $ 90.0 $ (16.3 ) $ (71.5 ) $ 551.9 (a) With respect to the allowance for doubtful accounts, deductions represent amounts charged-off less recoveries of accounts previously charged-off. (b) Amounts represent the impact of foreign currency translation, acquisitions and net transfers to/from other accounts. (c) Refer to Note Q, Income Taxes , of the Notes to Consolidated Financial Statements in Item 8 for further discussion. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in the fiscal year 2016 , 52 weeks in the fiscal year 2015 and 53 weeks in the fiscal year 2014 . During the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. The Company recast segment net sales and profit for all years presented to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. In December 2016, the Company announced the sale of the majority of its mechanical security businesses within the Security segment to Dormakaba for $725 million in cash. This pending divestiture includes the commercial hardware brands of Best Access, phi Precision and GMT, and is expected to close in the first quarter of 2017. In addition, the Company sold a small business within the Tools & Storage segment in January 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements. In addition, the assets and liabilities expected to be included in these sales have been classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion. During the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations as held for sale based on management's intention to sell these businesses. In July 2015, the Company completed the sale of these businesses. In 2014, the Company sold two small businesses within the Security and Industrial segments. The operating results of these businesses have been reported as discontinued operations in the Consolidated Financial Statements. Refer to Note T, Divestitures, for further discussion. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from these estimates. Certain amounts reported in the previous years have been reclassified to conform to the 2016 presentation. FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. Financing receivables are initially recorded at fair value, less impairments or provisions for credit losses. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts using two methods. First, a specific reserve is established for individual accounts where information indicates the customers may have an inability to meet financial obligations. Second, a reserve is determined for all customers based on a range of percentages applied to aging categories. These percentages are based on historical collection and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost or market because LIFO is not permitted for statutory reporting outside the U.S. See Note C, Inventories , for a quantification of the LIFO impact on inventory valuation. PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows: Useful Life (Years) Land improvements 10 —20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 5 Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by ASU 2011-08, "Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment," or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For the qualitative assessments, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2016, 2015 or 2014, with the exception of the goodwill and intangible assets related to the Security segment's Spain & Italy operations, which were classified as held for sale in the fourth quarter of 2014 and subsequently sold in 2015. Refer to Note T, Divestitures, for further discussion. FINANCIAL INSTRUMENTS — Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. The Company recognizes all derivative instruments, such as interest rate swap agreements, foreign currency options, commodity contracts and foreign exchange contracts, in the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are effective, are recorded in other comprehensive income (loss), and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income would generally be recognized in earnings. Changes in the fair value of derivatives used as hedges of the net investment in foreign operations, to the extent they are effective, are reported in other comprehensive income (loss) and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under ASC 815, “Derivatives and Hedging”, including any portion that is considered ineffective, are reported in earnings in the same caption where the hedged items are recognized. Changes in the fair value of derivatives not designated as hedges under ASC 815 are reported in earnings in Other-net. Refer to Note I, Derivative Financial Instruments, for further discussion. The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap. REVENUE RECOGNITION — General: The majority of the Company’s revenues result from the sale of tangible products, where revenue is recognized when the earnings process is complete, collectability is reasonably assured, and the risks and rewards of ownership have transferred to the customer, which generally occurs upon shipment of the finished product, but sometimes is upon delivery to customer facilities. Provisions for customer volume rebates, product returns, discounts and allowances are recorded as a reduction of revenue in the same period the related sales are recorded. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is an identifiable benefit and evidence of the fair value of the advertising, in which case the expense is classified as Selling, general, and administrative expense. Multiple Element Arrangements: Approximately eight percent of the Company’s revenues are generated from multiple element arrangements, primarily in the Security segment. When a sales agreement involves multiple elements, deliverables are separately identified and consideration is allocated based on their relative selling price in accordance with ASC 605-25, “Revenue Recognition — Multiple-Element Arrangements.” Sales of security monitoring systems may have multiple elements, including equipment, installation and monitoring services. For these arrangements, the Company assesses its revenue arrangements to determine the appropriate units of accounting, with each deliverable provided under the arrangement considered a separate unit of accounting. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring services. The Company’s contract sales for the installation of security intruder systems and other construction-related projects are recorded under the percentage-of-completion method. Profits recognized on security contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. For certain short duration and less complex installation contracts, revenue is recognized upon contract completion and customer acceptance. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities on the Consolidated Balance Sheets, as appropriate. COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of inbound freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. SG&A costs include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $124.1 million in 2016 , $101.7 million in 2015 , and $121.5 million in 2014 . Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $232.5 million in 2016 , $211.9 million in 2015 , and $206.5 million in 2014 . Cooperative advertising with customers classified as SG&A expense amounted to $6.6 million in 2016 , $6.4 million in 2015 , and $6.2 million in 2014 . SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound freight are reported in Cost of sales. Shipping costs associated with outbound freight are reported as a reduction of Net Sales and amounted to $184.0 million , $183.0 million , and $226.2 million in 2016 , 2015 , and 2014 , respectively. Distribution costs are classified as SG&A and amounted to $235.6 million , $229.3 million and $243.2 million in 2016 , 2015 and 2014 , respectively. STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, "Income Taxes", which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carry forwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes on continuing operations in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to Stanley Black & Decker, Inc., less earnings allocated to restricted stock units with non-forfeitable dividend rights (if applicable), divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. NEW ACCOUNTING STANDARDS — In January 2017, the Financial Accounting Standards Boards ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The new standard eliminates the exception to the principle in ASC 740, for all intra-entity sales of assets other than inventory, to be deferred, until the transferred asset is sold to a third party or otherwise recovered through use. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. These standards are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company will adopt this guidance in the first quarter of 2017 and does not expect it to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ". The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The objective of this update is to simplify the presentation of deferred income taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent in the statement of financial position. The amendments in this update do not affect the current requirement to offset deferred tax assets and liabilities for each tax-paying component within a tax jurisdiction. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, and can be applied either prospectively or retrospectively. Early adoption is permitted. T he Company elected to early adopt the ASU in the fourth quarter of 2016 on a prospective basis. Prior periods were not retrospectively adjusted. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This ASU is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard in the first quarter of 2016 and it did not have an impact on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements. This ASU provides additional guidance to ASU 2015-03, discussed further below, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. |
ACCOUNTS AND NOTES RECEIVABLE
ACCOUNTS AND NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS AND NOTES RECEIVABLE | ACCOUNTS AND NOTES RECEIVABLE (Millions of Dollars) 2016 2015 Trade accounts receivable $ 1,137.2 $ 1,165.0 Trade notes receivable 140.1 130.6 Other accounts receivable 103.0 109.1 Gross accounts and notes receivable 1,380.3 1,404.7 Allowance for doubtful accounts (77.5 ) (72.9 ) Accounts and notes receivable, net $ 1,302.8 $ 1,331.8 Long-term trade notes receivable, net $ 180.9 $ 182.1 Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover anticipated credit losses. Long-term trade financing receivables of $180.9 million and $182.1 million at December 31, 2016 and January 2, 2016 , respectively, are reported within Other Assets in the Consolidated Balance Sheets. Financing receivables and long-term financing receivables are predominantly related to certain security equipment leases with commercial businesses. Generally, the Company retains legal title to any equipment leases and bears the right to repossess such equipment in an event of default. All financing receivables are interest bearing and the Company has not classified any financing receivables as held-for-sale. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. The Company has an accounts receivable sale program that expires on January 5, 2018. According to the terms of that program the Company is required to sell certain of its trade accounts receivables at fair value to a wholly owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS”). The BRS, in turn, must sell such receivables to a third-party financial institution (“Purchaser”) for cash and a deferred purchase price receivable. The Purchaser’s maximum cash investment in the receivables at any time is $100.0 million . The purpose of the program is to provide liquidity to the Company. The Company accounts for these transfers as sales under ASC 860 “Transfers and Servicing.” Receivables are derecognized from the Company’s Consolidated Balance Sheets when the BRS sells those receivables to the Purchaser. The Company has no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. At December 31, 2016 , the Company did not record a servicing asset or liability related to its retained responsibility, based on its assessment of the servicing fee, market values for similar transactions and its cost of servicing the receivables sold. At December 31, 2016 and January 2, 2016 , $100.5 million and $100.4 million , respectively, of net receivables were derecognized. Gross receivables sold amounted to $1,832.9 million ( $1,548.3 million , net) for the year ended December 31, 2016 and $1,580.4 million ( $1,373.5 million , net) for the year ended January 2, 2016 . These sales resulted in a pre-tax loss of $4.8 million and $3.9 million , respectively, for the years ended December 31, 2016 and January 2, 2016 , respectively. These pre-tax losses include servicing fees of $0.9 million and $0.6 million , respectively, for the years ended December 31, 2016 and January 2, 2016 . Proceeds from transfers of receivables to the Purchaser totaled $1,500.8 million and $1,350.4 million for the years ended December 31, 2016 and January 2, 2016 , respectively. Collections of previously sold receivables, including deferred purchase price receivables, and all fees, which are settled one month in arrears, resulted in payments to the Purchaser of $1,500.8 million and $1,350.4 million for the years ended December 31, 2016 and January 2, 2016 , respectively. The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $83.2 million at December 31, 2016 and $41.1 million at January 2, 2016 . The deferred purchase price receivable will be repaid in cash as receivables are collected, generally within 30 days , and as such the carrying value of the receivable recorded approximates fair value. Delinquencies and credit losses on receivables sold were $0.1 million and $0.3 million for the years ended December 31, 2016 and January 2, 2016 , respectively. Cash inflows related to the deferred purchase price receivable totaled $514.3 million and $416.9 million for the years ended December 31, 2016 and January 2, 2016 , respectively. All cash flows under the program are reported as a component of changes in accounts receivable within operating activities in the Consolidated Statements of Cash Flows since all the cash from the Purchaser is either: 1) received upon the initial sale of the receivable; or 2) from the ultimate collection of the underlying receivables and the underlying receivables are not subject to significant risks, other than credit risk, given their short-term nature. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (Millions of Dollars) 2016 2015 Finished products $ 1,044.2 $ 1,085.0 Work in process 133.3 136.1 Raw materials 300.5 305.3 Total $ 1,478.0 $ 1,526.4 Net inventories in the amount of $662.8 million at December 31, 2016 and $651.0 million at January 2, 2016 were valued at the lower of LIFO cost or market. If the LIFO method had not been used, inventories would have been $11.3 million higher than reported at December 31, 2016 and $26.7 million higher than reported at January 2, 2016 . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (Millions of Dollars) 2016 2015 Land $ 107.3 $ 129.2 Land improvements 37.0 36.0 Buildings 519.3 525.3 Leasehold improvements 114.2 98.9 Machinery and equipment 2,008.5 1,979.9 Computer software 373.9 397.5 Property, plant & equipment, gross $ 3,160.2 $ 3,166.8 Less: accumulated depreciation and amortization (1,709.0 ) (1,716.6 ) Property, plant & equipment, net $ 1,451.2 $ 1,450.2 Depreciation and amortization expense associated with property, plant and equipment was as follows: (Millions of Dollars) 2016 2015 2014 Depreciation $ 221.8 $ 219.2 $ 229.5 Amortization 41.8 37.7 33.9 Depreciation and amortization expense $ 263.6 $ 256.9 $ 263.4 The amounts above are inclusive of depreciation and amortization expense for discontinued operations amounting to $2.7 million in 2014. |
MERGER AND ACQUISITIONS
MERGER AND ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
MERGER AND ACQUISITIONS | ACQUISITIONS PENDING ACQUISITIONS On January 5, 2017, the Company announced that it had entered into a definitive agreement to purchase the Craftsman brand from Sears Holdings, which provides the Company with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings channels. The agreement consists of a $525 million cash payment at closing, $250 million at the end of year three, and future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15. After year 15, Sears Holdings will have a perpetual license to continue selling in Sears-related channels in exchange for a 3% royalty payment to the Company. The Craftsman results will be consolidated into the Company's Tools & Storage segment. The transaction, which is expected to be accounted for as a business combination, is expected to close during 2017 subject to customary closing conditions, including regulatory approvals. On October 12, 2016, the Company announced that it had entered into a definitive agreement to acquire the Tools business of Newell Brands ("Newell Tools"), which includes the industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®, for $1.95 billion in cash. Newell Tools will be consolidated into the Tools & Storage segment and will enhance the Company’s position within the global tools & storage industry and broaden its product offerings and solutions to customers and end-users, particularly within power tool accessories. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2017. 2016 ACQUISITIONS During 2016, the Company completed five small acquisitions for a total purchase price of $59.3 million , net of cash acquired, which are being integrated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is substantially complete with the exception of certain minor items and will be completed within the measurement period. 2015 ACQUISITIONS The Company completed two small acquisitions for a total purchase price of $17.2 million , net of cash acquired, which have been consolidated into the Company's Security segment. ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS As noted above, the Company completed five small acquisitions in 2016 and two small acquisitions in 2015, which did not have a significant impact on the Company's Consolidated Statements of Operations for the years ended December 31, 2016 or January 2, 2016. The Company did not complete any acquisitions during 2014. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL — The changes in the carrying amount of goodwill by segment are as follows: (Millions of Dollars) Tools & Storage Security Industrial Total Balance January 2, 2016 $ 3,343.4 $ 2,317.2 $ 1,423.7 $ 7,084.3 Reclassification to Assets held for sale (5.7 ) (297.1 ) — (302.8 ) Acquisitions 3.0 21.6 — 24.6 Foreign currency translation and other (92.9 ) (34.7 ) 15.5 (112.1 ) Balance December 31, 2016 $ 3,247.8 $ 2,007.0 $ 1,439.2 $ 6,694.0 As previously discussed, the assets and liabilities expected to be included in the sales of the mechanical security businesses within the Security segment and the small business within the Tools & Storage segment have been classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. As a result, in accordance with ASC 350, "Intangibles - Goodwill and Other," a portion of the goodwill associated with the Security and Tools & Storage segments was allocated to these businesses. The amounts allocated were based on the relative fair values of the businesses to be sold and the portions of the reporting units that were retained. Accordingly, goodwill for the Security and Tools & Storage segments was reduced by $297.1 million and $5.7 million , respectively, and classified within Assets held for sale on the Consolidated Balance Sheets as of December 31, 2016. As required by the Company's policy, goodwill and indefinite-lived trade names were tested for impairment in the third quarter of 2016 . The Company assessed the fair value of its Infrastructure reporting unit utilizing a discounted cash flow valuation model as had been done in previous years and determined that the fair value exceeded the respective carrying amount. The key assumptions used were the discount rate and perpetual growth rate applied to cash flow projections. Also inherent in the discounted cash flow valuation were near-term revenue growth rates over the next five years. These assumptions contemplated business, market and overall economic conditions. For the remaining four reporting units, the Company determined qualitatively that it was not more likely than not that goodwill was impaired, and thus, the quantitative goodwill impairment test was not required. In making this determination, the Company considered the significant excess of fair value over carrying amount as calculated in the most recent quantitative analysis performed in conjunction with the 2015 annual impairment test, each reporting unit's 2016 performance compared to prior year and their respective industries, analyst multiples and other positive qualitative information, all of which indicated that it is more likely than not that the fair values of the four reporting units were greater than the respective carrying amounts. Based on this evaluation of internal and external qualitative factors, the Company concluded that the quantitative goodwill impairment test was not required for these four reporting units. The fair values of the Company's indefinite-lived trade names were assessed using both qualitative assessments, which considered relevant key external and internal factors, and quantitative analyses, which utilized discounted cash flow valuation models taking into consideration appropriate discount rates, royalty rates and perpetual growth rates applied to projected sales. Based on the results of this testing, the Company determined that the fair values of each of its indefinite-lived trade names exceeded their respective carrying amounts. During the fourth quarter of 2016, in connection with its quarterly forecasting cycle, the Company updated the forecasted operating results for each of its businesses based on the most recent financial results and best estimates of future operations. The updated forecasts reflected an expected decline in near-term revenue growth and profitability for the Infrastructure reporting unit within the Industrial segment, primarily due to ongoing difficult market conditions in the oil & gas industry, mainly related to project delays as a result of continued geopolitical challenges and a cyclical slowdown in offshore pipeline activity, as well as a slower than expected recovery in the scrap steel market. Accordingly, in connection with the preparation of the Consolidated Financial Statements for the year ended December 31, 2016, the Company performed an updated impairment analysis with respect to the Infrastructure reporting unit, which included approximately $269 million of goodwill at year-end. Based on this analysis, which included revised assumptions of near-term revenue growth and profitability levels, it was determined that the fair value of the Infrastructure reporting unit exceeded its carrying value by 14% . Therefore, management concluded it was not more likely than not that an impairment had occurred. Management is confident in the long-term viability and success of the Infrastructure reporting unit based on the strong long-term growth prospects of the markets and geographies served, the Company's continued commitment to, and investments in, organic growth initiatives (including solid progress being made with respect to Breakthrough Innovation projects under the SFS 2.0 program), and Infrastructure's leading market position in its respective industries. In the event that future operating results of any of the Company's reporting units do not meet current expectations, management, based upon conditions at the time, would consider taking restructuring or other actions as necessary to maximize revenue growth and profitability. A thorough analysis of all the facts and circumstances existing at that time would need to be performed to determine if recording an impairment loss would be appropriate. INTANGIBLE ASSETS — Intangible assets at December 31, 2016 and January 2, 2016 were as follows: 2016 2015 (Millions of Dollars) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized Intangible Assets — Definite lives Patents and copyrights $ 40.7 $ (36.5 ) $ 50.6 $ (44.2 ) Trade names 152.0 (100.4 ) 164.8 (100.8 ) Customer relationships 1,614.6 (978.9 ) 1,774.2 (995.5 ) Other intangible assets 258.2 (158.7 ) 263.3 (148.7 ) Total $ 2,065.5 $ (1,274.5 ) $ 2,252.9 $ (1,289.2 ) Total indefinite-lived trade names are $1,508.5 million at December 31, 2016 and $1,577.8 million at January 2, 2016 . The year-over-year decrease is due to a reclassification of $65.2 million to Assets held for sale relating to the previously discussed pending sale of the majority of the Company's mechanical security businesses within the Security segment and currency fluctuations. In addition, net definite-lived intangible assets totaling $31.8 million were reclassified to Assets held for sale as of December 31, 2016. Aggregate intangible assets amortization expense by segment was as follows: (Millions of Dollars) 2016 2015 2014 Tools & Storage $ 36.8 $ 39.0 $ 40.7 Security 57.8 61.3 78.8 Industrial 49.8 56.8 66.9 Consolidated $ 144.4 $ 157.1 $ 186.4 The 2014 amounts above are inclusive of amortization expense for discontinued operations amounting to $2.9 million . Future amortization expense in each of the next five years amounts to $125.7 million for 2017 , $116.3 million for 2018 , $107.9 million for 2019 , $90.1 million for 2020 , $81.8 million for 2021 and $269.2 million thereafter. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses at December 31, 2016 and January 2, 2016 were as follows: (Millions of Dollars) 2016 2015 Payroll and related taxes $ 268.0 $ 271.8 Income and other taxes 117.6 157.6 Customer rebates and sales returns 68.2 66.5 Insurance and benefits 87.4 71.8 Accrued restructuring costs 35.6 58.7 Derivative financial instruments 49.8 49.8 Warranty costs 68.8 67.8 Deferred revenue 81.9 89.2 Forward share purchase contract — 150.0 Other 324.2 278.7 Total $ 1,101.5 $ 1,261.9 |
LONG-TERM DEBT AND FINANCING AR
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS Long-term debt and financing arrangements at December 31, 2016 and January 2, 2016 follow: December 31, 2016 January 2, 2016 (Millions of Dollars) Interest Rate Original Notional Unamortized Discount Unamortized Gain/(Loss) Terminated Swaps (1) Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2018 (2) 2.45% $ 632.5 $ — $ — $ — $ (3.3 ) $ 629.2 $ 627.5 Notes payable due 2018 (2) 345.0 — — — (1.9 ) 343.1 343.8 Notes payable 2021 3.40% 400.0 (0.2 ) 17.1 — (1.7 ) 415.2 405.9 Notes payable due 2022 2.90% 754.3 (0.3 ) — — (3.7 ) 750.3 749.6 Notes payable due 2028 7.05% 150.0 — 12.5 12.2 — 174.7 167.0 Notes payable due 2040 5.20% 400.0 (0.2 ) (34.9 ) — (3.2 ) 361.7 360.1 Notes payable due 2052 (junior subordinated) 5.75% 750.0 — — — (19.6 ) 730.4 729.9 Notes payable due 2053 (junior subordinated) 5.75% 400.0 — 4.8 — (8.3 ) 396.5 394.2 Other, payable in varying amounts through 2022 0.00% - 2.27% 22.0 — — — — 22.0 19.2 Total long-term debt, including current maturities $ 3,853.8 $ (0.7 ) $ (0.5 ) $ 12.2 $ (41.7 ) $ 3,823.1 $ 3,797.2 Less: Current maturities of long-term debt (7.8 ) (5.1 ) Long-term debt $ 3,815.3 $ 3,792.1 (1) Unamortized gain/loss associated with interest rate swaps are more fully discussed in Note I, Derivative Financial Instruments (2) See full discussion on 2018 Notes Payable below. Aggregate annual principal maturities of long-term debt for each of the years from 2017 to 2021 are $5.7 million , $982.3 million , $6.5 million , $3.0 million , $401.7 million , respectively, and $2,454.6 million thereafter. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $12.2 million of unamortized fair value adjustments made in purchase accounting, which increased the Black & Decker note payable due 2028, as well as a loss of $1.2 million pertaining to unamortized termination gain/loss on interest rate swaps and unamortized discount on the notes as described in Note I, Derivative Financial Instruments and $41.7 million of unamortized deferred financing fees. Interest paid during 2016 , 2015 and 2014 amounted to $176.6 million , $161.5 million and $166.4 million , respectively. In the first quarter of 2016, the Company adopted ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires debt issuance costs related to recognized debt liabilities to be presented in the balance sheet as a direct deduction from the debt liability rather than an asset. Accordingly, at December 31, 2016, approximately $41.7 million of deferred debt costs were presented as a direct deduction within Long-Term Debt on the Company's Consolidated Balance Sheets. Furthermore, the Company reclassified approximately $45.0 million of deferred debt issuance costs from Other Assets to Long-Term Debt as of January 2, 2016. In December 2013, the Company issued $400.0 million aggregate principal amount of 5.75% fixed-to-floating rate junior subordinated debentures maturing December 15, 2053 (“2053 Junior Subordinated Debentures”). The 2053 Junior Subordinated Debentures bears interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears to, but excluding December 15, 2018. From and including December 15, 2018, the 2053 Junior Subordinated Debentures will bear interest at an annual rate equal to three-month LIBOR plus 4.304% payable quarterly in arrears. The 2053 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company’s existing and future senior debt. The 2053 Junior Subordinated Debentures rank equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company received proceeds from the offering of $392.0 million , net of $8.0 million of underwriting discounts and commissions, before offering expenses. The Company used the net proceeds primarily to repay commercial paper borrowings. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2053 Junior Subordinated Debentures) of up to five consecutive years. Deferral of interest payments cannot extend beyond the maturity date of the debentures. The 2053 Junior Subordinated Debentures include an optional redemption provision whereby the Company may elect to redeem the debentures, in whole or in part, at a "make-whole" premium based on United States Treasury rates, plus accrued and unpaid interest if redeemed before December 15, 2018, or at 100% of their principal amount plus accrued and unpaid interest if redeemed after December 15, 2018. In addition, the Company may redeem the debentures in whole, but not in part, before December 15, 2018, if certain changes in tax laws, regulations or interpretations occur at 100% of their principal amount plus accrued and unpaid interest. In November 2012, the Company issued $800.0 million of senior unsecured term notes, maturing on November 1, 2022 (“2022 Term Notes”) with fixed interest payable semi-annually, in arrears, at a rate of 2.90% per annum. The 2022 Term Notes are unsecured and rank equally with all of the Company's existing and future unsecured and unsubordinated debt. The Company received net proceeds of $793.9 million which reflects a discount of $0.7 million and $5.4 million of underwriting expenses and other fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of short term borrowings. The 2022 Term Notes include a Change of Control provision that would apply should a Change of Control event (as defined in the Indenture governing the 2022 Term Notes) occur. The Change of Control provision states that the holders of the 2022 Term Notes may require the Company to repurchase, in cash, all of the outstanding 2022 Term Notes for a purchase price at 101.0% of the original principal amount, plus any accrued and unpaid interest outstanding up to the repurchase date. In December 2014, the Company repurchased $45.7 million of the 2022 Term Notes and paid $45.3 million cash and recognized a net pre-tax gain of less than $0.1 million after expensing $0.3 million of related loan discount costs and deferred financing fees. At December 31, 2016, the Company's carrying value includes $0.3 million of unamortized discount. In July 2012, the Company issued $750.0 million of junior subordinated debentures, maturing on July 25, 2052 (“2052 Junior Subordinated Debentures”) with fixed interest payable quarterly, in arrears, at a rate of 5.75% per annum. The 2052 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company's existing and future senior debt. The Company received net proceeds of $729.4 million and paid $20.6 million of fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of debt and refinancing of near term debt maturities. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2052 Junior Subordinated Debentures) of up to five consecutive years per period. Deferral of interest payments cannot extend beyond the maturity date of the debentures. Additionally, the 2052 Junior Subordinated Debentures include an optional redemption whereby the Company may elect to redeem the debentures, in whole or in part, at the redemption price plus accrued and unpaid interest if redeemed before July 25, 2017, or at 100% of their principal amount plus accrued and unpaid interest if redeemed after July 25, 2017. Commercial Paper and Credit Facilities At December 31, 2016 and January 2, 2016 , the Company had no commercial paper borrowings outstanding against the Company’s $2.0 billion commercial paper program. The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $2.0 billion commercial paper program. As of December 31, 2016, the Company has not drawn on this commitment. In addition, the Company has short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating $588.5 million , of which $493.8 million was available at December 31, 2016. Short-term arrangements are reviewed annually for renewal. At December 31, 2016, the aggregate amount of committed and uncommitted, long- and short-term lines was $2.3 billion . At December 31, 2016, $4.3 million was recorded as short-term borrowings outstanding against uncommitted lines excluding commercial paper. In addition, $94.7 million of the short-term credit lines was utilized primarily pertaining to outstanding letters of credit for which there are no required or reported debt balances. The weighted average interest rates on short-term borrowings, primarily commercial paper, for the fiscal years ended December 31, 2016 and January 2, 2016 were 0.6% and 0.4% , respectively. In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issue d to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. In February 2017, the Company issued €600.0 million in Euro denominated commercial paper under its $3.0 billion U.S. Dollar and Euro commercial paper program which has been designated as a Net Investment Hedge as described in more detail in Note I, Derivative Financial Instruments . Also in January 2017, the Company executed a 364-day $1.3 billion committed credit facility (the "2017 Credit Agreement"). The 2017 Credit Agreement consists of a $1.3 billion revolving credit loan and a sub-limit of an amount equal to the EURO equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by January 17, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program, also authorized and amended in January 2017 as discussed above. Equity Units In December 2013, the Company issued 3,450,000 Equity Units (the “Equity Units”), each with a stated value of $100 . The Equity Units were initially comprised of a 1/10, or 10% , undivided beneficial ownership in a $1,000 principal amount 2.25% junior subordinated note due 2018 (the “2018 Junior Subordinated Note”) and a forward common stock purchase contract (the “Equity Purchase Contract”). The Company received approximately $334.7 million in cash proceeds from the Equity Units, net of underwriting discounts and commissions, before offering expenses, and recorded $345.0 million in long-term debt. The proceeds were used primarily to repay commercial paper borrowings. The Company also used $9.7 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. Equity Purchase Contracts: On November 17, 2016, the Company settled all Equity Purchase Contracts by issuing 3,504,165 million common shares and received $345.0 million in cash proceeds generated from the remarketing described in detail below. The number of shares of common stock issuable upon settlement of each purchase contract (the “settlement rate”) was rounded to the nearest ten-thousandth of a share and was determined by calculating the applicable market value, equal to the average of the daily volume-weighted average price of common stock for each of the 20 consecutive trading days during the market value averaging period, October 21, 2016 through November 17, 2016. The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period was 1.0157 (equivalent to the purchase contract settlement rate and a conversion price of $98.45 per common share). Holders of the Equity Purchase Contracts were paid contract adjustment payments (“contract adjustment payments”) at a rate of 4.00% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year, commencing February 17, 2014. The $40.2 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity upon issuance of the Equity Units and a related liability for the present value of the cash payments of $40.2 million was recorded. As each quarterly contract adjustment payment was made, the related liability was relieved with the difference between the cash payment and the present value accreted to interest expense over the three-year term. On November 17, 2016, the Company made the final contract adjustment payment. 2018 Junior Subordinated Notes: The $345.0 million aggregate principal amount of the 2018 Junior Subordinated Notes will mature on November 17, 2018. Prior to November 17, 2016, the 2018 Junior Subordinated Notes bore interest at a rate of 2.25% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year, commencing February 17, 2014. The 2018 Junior Subordinated Notes were unsecured and ranked subordinate and junior in right of payment to the Company’s existing and future senior indebtedness. The 2018 Junior Subordinated Notes initially ranked equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company successfully remarketed the 2018 Junior Subordinated Notes on November 17, 2016 ("Subordinated Notes"). In connection with the remarketing, the interest rate on the notes was reset, effective on the settlement date to a rate of 1.622% per annum, payable semi-annually in arrears on May 17 and November 17 of each year, commencing May 17, 2017 and maturing on November 17, 2018. Following settlement of the remarketing, the Subordinated Notes remain the Company’s direct, unsecured general obligations and are subordinated and junior in right of payment to the Company’s existing and future senior indebtedness, but the Subordinated Notes rank senior in right of payment to specified junior indebtedness on the terms and to the extent set forth in the indentures governing such junior indebtedness. The remarketing resulted in proceeds of $345.0 million , which the Company did not directly receive, and were automatically applied to satisfy in full the related unit holders’ obligations to purchase common stock under their Equity Purchase Contracts. Interest expense of $0.7 million was recorded for 2016 related to the contractual interest coupon on the Subordinated Notes based on the annual rate of 1.622% . Interest expense of $6.8 million in 2016, and $7.8 million for both 2015 and 2014 was recorded related to the 2.25% contractual interest coupon on the 2018 Junior Subordinated Notes. The unamortized deferred remarketing and discount costs of the Subordinated Notes at December 31, 2016 is $1.9 million and will be recorded to interest expense over the term of the underlying notes. Capped Call Transactions : In order to offset the potential economic dilution associated with the common shares issuable upon settlement of the Equity Purchase Contracts, the Company entered into capped call transactions with a major financial institution (the “counterparty”). The capped call transactions covered, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts. The capped call transactions have a term of approximately three years and initially had a lower strike price of $98.80 , which corresponds to the minimum settlement rate of the Equity Purchase Contracts, and an upper strike price of $112.91 , which is approximately 40% higher than the closing price of the Company's common stock on November 25, 2013, and are subject to customary anti-dilution adjustments. The Company paid $9.7 million of cash to fund the cost of the capped call transactions, which was recorded as a reduction of Shareowners’ Equity. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares of common stock. Convertible Preferred Units In November 2010, the Company issued 6,325,000 Convertible Preferred Units (the “Convertible Preferred Units”), each with a stated amount of $100 . The Convertible Preferred Units were comprised of a 1/10, or 10% , undivided beneficial ownership in a $1,000 principal amount junior subordinated note (the “Note”) and a Purchase Contract (the “Purchase Contract”) obligating holders to purchase one share of the Company’s 4.75% Series B Perpetual Cumulative Convertible Preferred Stock (the “Convertible Preferred Stock”). The Company received $613.5 million in cash proceeds from the Convertible Preferred Units offering, net of underwriting fees. Purchase Contracts: Each Purchase Contract obligated the holder to purchase, on November 17, 2015, for $100 , one newly-issued share of Convertible Preferred Stock. Holders of the Purchase Contracts were paid contract adjustment payments at a rate of 0.50% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year. The $14.9 million present value of the contract adjustment payments reduced Shareowners’ Equity at inception. As each quarterly contract adjustment payment was made, the related liability was relieved with the difference between the cash payment and the present value of the contract adjustment payment recorded as interest expense. In accordance with the Purchase Contracts, on November 17, 2015, the Company issued 6,325,000 shares of Convertible Preferred Stock and made the final contract adjustment payment on the Purchase Contracts. The purchase price for the Convertible Preferred Stock was paid using the proceeds of the remarketing described below. Convertible Preferred Stock: Holders of the Convertible Preferred Stock were entitled to receive cumulative cash dividends at the rate of 4.75% per annum of the $100 liquidation preference per share of the Convertible Preferred Stock. Dividends on the Convertible Preferred Stock were payable, when, as and if declared by the Company’s board of directors, quarterly in arrears in conjunction with the contract adjustment payments. On November 18, 2015, the Company informed holders that it would redeem, on December 24, 2015 (the “Redemption Date”), all outstanding shares of Convertible Preferred Stock that had not previously been converted at a redemption price of $100.49 per share in cash (the “Redemption Price”), which was equal to the liquidation preference per share of Convertible Preferred Stock of $100 , plus accrued and unpaid dividends thereon to, but excluding, the Redemption Date. Substantially all of the holders of Convertible Preferred Stock elected to convert their shares of Convertible Preferred Stock prior to the Redemption Date. The Company elected to settle all conversions of Convertible Preferred Stock through combination settlement, with a specified dollar amount of $100 . The amounts due upon conversion were equal to the sum of the Daily Settlement Amounts for each of the 20 consecutive trading days during the observation period, November 23, 2015 through December 21, 2015. Daily Settlement Amount means, for each of the 20 consecutive trading days during the observation period: (1) cash equal to the lesser of (A) $5.00 and (B) 1/20th of the product of the (i) applicable conversion rate on such trading day and (ii) the daily volume-weighted average price of common stock on such trading day (the “Daily Conversion Value”); and (2) to the extent the Daily Conversion Value for such trading day exceeds $5.00 , a number of shares of common stock equal to (A) the difference between such Daily Conversion Value and $5.00 , divided by (B) the daily volume-weighted average price for such trading day. The Company settled all conversions on December 24, 2015 by paying $632.5 million in cash for the $100 par value per share of Convertible Preferred Stock and issuing 2.9 million common shares for the excess value of the conversion feature above the $100 face value per share of Convertible Preferred Stock. The conversion rates used in calculating the Daily Conversion Value during the observation period, were 1.3763 (equivalent to a conversion price set at $72.66 per common share) prior to December 2, 2015 and 1.3789 (equivalent to a conversion price set at $72.52 per common share) on and after December 2, 2015. Notes: The $632.5 million principal amount of the Notes are due November 17, 2018. At maturity, the Company is obligated to repay the principal in cash. The Notes initially bore interest at an initial rate of 4.25% per annum, payable quarterly in arrears on the same dates as the contract adjustment payments. The Notes are the Company’s direct, unsecured general obligations and are subordinated and junior in right of payment to the Company’s existing and future senior indebtedness. The Notes initially ranked equally in right of payment with all of the Company’s other junior subordinated debt. The interest rate, payment dates and ranking of the notes were reset in connection with the remarketing, as described below. The Notes were initially pledged as collateral to guarantee the obligations of holders of Purchase Contracts to purchase Convertible Preferred Stock. Upon completion of the remarketing, the Notes were released from that pledge arrangement. The Company successfully remarketed the Notes on November 5, 2015. In connection with the remarketing, the interest rate on the notes was reset, effective on the November 17, 2015 settlement date of the remarketing, to a rate of 2.45% per annum, payable semi-annually in arrears on May 17 and November 17 of each year, commencing May 17, 2016. Following settlement of the remarketing, the Notes remain the Company’s direct, unsecured general obligations subordinated and junior in right of payment to the Company’s existing and future senior indebtedness, but the Notes rank senior in right of payment to specified junior indebtedness on the terms and to the extent set forth in the indentures governing such junior indebtedness. The remarketing resulted in proceeds of $632.5 million . The Company did not directly receive any proceeds from the remarketing. Instead, the proceeds of remarketing were automatically applied to satisfy in full the related unit holders’ obligations to purchase Convertible Preferred Stock under their Purchase Contracts. Interest expense of $15.5 million and $1.9 million was recorded in 2016 and 2015, respectively, related to the contractual interest coupon on the 2018 Subordinated Notes based upon the 2.45% annual rate and $23.3 million was recorded in 2015, and $26.9 million in 2014 , related to the contractual interest coupon on the Notes based upon the 4.25% annual rate. The unamortized deferred issuance cost of the Notes was $3.3 million at December 31, 2016, and will be recorded to interest expense over the term of the underlying Notes. Equity Option: In order to offset the common shares that were deliverable upon conversion of shares of Convertible Preferred Stock, the Company entered into capped call transactions (equity options) with certain major financial institutions (the “capped call counterparties”). The capped call transactions cover, subject to anti-dilution adjustments, the number of shares of common stock equal to the number of shares of common stock underlying the maximum number of shares of Convertible Preferred Stock issuable upon settlement of the Purchase Contracts. Each of the capped call transactions had an original term of approximately five years and initially had a lower strike price of $75.00 , which corresponded to the initial conversion price of the Convertible Preferred Stock, and an upper strike price of $97.95 , which was approximately 60% higher than the closing price of the common stock on November 1, 2010. The Company paid $50.3 million of cash to fund the cost of the capped call transactions, which was recorded as a reduction of Shareowners’ Equity. On August 5, 2015, the Company terminated the capped call options on its common stock and received 1,692,778 shares of common stock. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. As part of the Company’s risk management program, a variety of financial instruments such as interest rate swaps, currency swaps, purchased currency options, foreign exchange contracts and commodity contracts, are used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, "Derivatives and Hedging," management designates its derivative instruments as cash flow hedges, fair value hedges or net investment hedges. Generally, commodity price exposures are not hedged with derivative financial instruments and instead are actively managed through customer pricing initiatives, procurement-driven cost reduction initiatives and other productivity improvement projects. Financial instruments are not utilized for speculative purposes. A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 31, 2016 and January 2, 2016 follows: (Millions of Dollars) Balance Sheet Classification 2016 2015 Balance Sheet Classification 2016 2015 Derivatives designated as hedging instruments: Interest Rate Contracts Cash Flow LT other assets $ — $ — LT other liabilities $ 47.3 $ 41.1 Interest Rate Contracts Fair Value Other current assets — 14.9 Accrued expenses — 2.5 LT other assets — 1.4 LT other liabilities — 5.2 Foreign Exchange Contracts Cash Flow Other current assets 37.6 21.9 Accrued expenses 1.6 1.8 LT other assets — 3.7 LT other liabilities — — Net Investment Hedge Other current assets 44.1 30.3 Accrued expenses 1.8 4.8 LT other assets — — LT other liabilities 0.5 — $ 81.7 $ 72.2 $ 51.2 $ 55.4 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 28.5 $ 7.1 Accrued expenses $ 46.4 $ 40.7 $ 28.5 $ 7.1 $ 46.4 $ 40.7 The counterparties to all of the above mentioned financial instruments are major international financial institutions. The Company is exposed to credit risk for net exchanges under these agreements, but not for the notional amounts. The credit risk is limited to the asset amounts noted above. The Company limits its exposure and concentration of risk by contracting with diverse financial institutions and does not anticipate non-performance by any of its counterparties. Further, as more fully discussed in Note M, Fair Value Measurements , the Company considers non-performance risk of its counterparties at each reporting period and adjusts the carrying value of these assets accordingly. The risk of default is considered remote. In 2016 and 2015 , significant cash flows related to derivatives including those that are separately discussed below resulted in net cash received of $94.7 million and $144.4 million , respectively. CASH FLOW HEDGES — There was a $46.3 million and a $52.1 million after-tax loss as of December 31, 2016 and January 2, 2016 , respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax gain of $9.0 million is expected to be reclassified to earnings as the hedged transactions occur or as amounts are amortized within the next twelve months. The ultimate amount recognized will vary based on fluctuations of the hedged currencies and interest rates through the maturity dates. The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for the twelve months ended December 31, 2016 and January 2, 2016 (in millions): Year-to-date 2016 (Loss) Gain 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 $ (6.2 ) Interest Expense $ — $ — Foreign Exchange Contracts $ 19.3 Cost of sales $ 21.7 $ — Year-to-date 2015 (Loss) Gain 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 $ (6.8 ) Interest Expense $ — $ — Foreign Exchange Contracts $ 52.5 Cost of sales $ 57.4 $ — * Includes ineffective portion and amount excluded from effectiveness testing on derivatives. For 2016 and 2015 , the hedged items’ impact to the Consolidated Statement of Operations was a loss of $21.7 million and a loss of $57.4 million , respectively, in Cost of Sales. There was no impact related to the interest rate contracts’ hedged items for any period presented. For 2016 and 2015 , an after-tax gain of $3.3 million and $22.4 million , respectively, and for 2014 an after-tax loss of $7.5 million were reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative financial instruments) during the periods in which the underlying hedged transactions affected earnings. Interest Rate Contracts: The Company enters into interest rate swap agreements in order to obtain the lowest cost source of funds within a targeted range of variable to fixed-rate debt proportions. As of December 31, 2016 , and January 2, 2016 , the Company had $400 million of forward starting swaps outstanding which were executed in 2014. The objective of the hedges is to offset the expected variability on future payments associated with the interest rate on debt instruments expected to be issued in 2018. Gains or losses on the swaps are recorded in Accumulated other comprehensive loss and will be subsequently reclassified into earnings as the future interest expense is recognized in earnings or as ineffectiveness occurs. Foreign Currency Contracts Forward Contracts: Through its global businesses, the Company enters into transactions and makes investments denominated in multiple currencies that give rise to foreign currency risk. The Company and its subsidiaries regularly purchase inventory from subsidiaries with functional currencies different than their own, which creates currency-related volatility in the Company’s results of operations. The Company utilizes forward contracts to hedge these forecasted purchases and sales of inventory. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portion of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations in Other, net. At December 31, 2016 and January 2, 2016 , the notional values of the forward currency contracts outstanding was $503.8 million and $439.3 million , respectively, maturing on various dates through 2017 . Purchased Option Contracts: The Company and its subsidiaries enter into various intercompany transactions whereby the notional values are denominated in currencies other than the functional currencies of the party executing the trade. In order to better match the cash flows of its intercompany obligations with cash flows from operations, the Company enters into purchased option contracts. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portions of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations in Other, net. At December 31, 2016 , the notional value of option contracts outstanding was $252.0 million , maturing on various dates through 2017. As of January 2, 2016 , the notional value of purchased option contracts was $197.4 million , maturing on various dates in 2016. FAIR VALUE HEDGES Interest Rate Risk: In an effort to optimize the mix of fixed versus floating rate debt in the Company’s capital structure, the Company enters into interest rate swaps. In previous years, the Company entered into interest rate swaps on the first five years of the Company's $400 million 5.75% notes due 2053, interest rate swaps with notional values which equaled the Company's $400 million 3.40% notes due 2021 and the Company's $150 million 7.05% notes due 2028. These interest rate swaps effectively converted the Company's fixed rate debt to floating rate debt based on LIBOR, thereby hedging the fluctuation in fair value resulting from changes in interest rates. In the second quarter of 2016, the Company terminated all of the above interest rate swaps. The terminations resulted in cash receipts of $27.0 million . This gain was deferred and will be amortized to earnings over the remaining life of the notes. The changes in fair value of the interest rate swaps during the period were recognized in earnings as well as the offsetting changes in fair value of the underlying notes. There were no open contracts as of December 31, 2016 and the notional value of open contracts was $950.0 million as of January 2, 2016 . A summary of the fair value adjustments relating to these swaps is as follows (in millions): Year-to-Date 2016 Year-to-Date 2015 Income Statement Classification Gain/(Loss) on Swaps* Gain /(Loss) on Borrowings Gain/(Loss) on Swaps* Gain /(Loss) on Borrowings Interest Expense $ (3.3 ) $ 3.8 $ 11.8 $ (11.8 ) * Includes ineffective portion and amount excluded from effectiveness testing on derivatives. In addition to the fair value adjustments in the table above, the net swap accruals for each period and amortization of the gains on terminated swaps are also reported as a reduction of interest expense and totaled $6.9 million and $14.2 million for 2016 and 2015 , respectively. Interest expense on the underlying debt was $19.9 million (for the period prior to termination of the derivatives) and $47.1 million for 2016 and 2015 , respectively. NET INVESTMENT HEDGES Foreign Exchange Contracts: The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were a gain of $88.6 million and $11.8 million at December 31, 2016 and January 2, 2016 , respectively. As of December 31, 2016 , the Company had foreign exchange contracts that mature on various dates through 2017 with notional values totaling $1.0 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment. Of the $1.0 billion discussed above, $136.1 million hedging a portion of the British pound sterling net investments had been de-designated as of December 31, 2016. As of January 2, 2016 , the Company had foreign exchange contracts maturing on various dates through 2016 with notional values totaling $1.9 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Japanese yen, Swedish krona, Euro and Canadian denominated net investment. For the year ended December 31, 2016 and January 2, 2016 , maturing foreign exchange contracts resulted in net cash received of $104.7 million and $137.7 million , respectively. Gains and losses on net investment hedges remain in Accumulated other comprehensive loss until disposal of the underlying assets. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations in Other, net. The pre-tax gain or loss from fair value changes was as follows (in millions): Year-to-Date 2016 Year-to-Date 2015 Income Statement Classification Amount Recorded in OCI Gain (Loss) Effective Portion Recorded in Income Statement Ineffective Portion* Recorded in Income Statement Amount Recorded in OCI Gain (Loss) Effective Portion Recorded in Income Statement Ineffective Portion* Recorded in Income Statement Other-net $ 117.8 $ — $ — $ 75.5 $ — $ — *Includes ineffective portion and amount excluded from effectiveness testing. In February 2017, the Company issued €600.0 million in Euro denominated commercial paper under its $3.0 billion U.S. Dollar and Euro commercial paper program which has been designated as a Net Investment Hedge against a portion of its EUR denominated net investment. The notional amount of the Euro commercial paper program matches the portion of the net investment designated as being hedged and they are denominated in the same currency; therefore, the Company does not expect to incur any ineffectiveness. UNDESIGNATED HEDGES Foreign Exchange Contracts: Currency swaps and foreign exchange forward contracts are used to reduce risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (such as affiliate loans, payables and receivables). The objective of these practices is to minimize the impact of foreign currency fluctuations on operating results. The total notional amount of the forward contracts outstanding at December 31, 2016 was $1.5 billion maturing on various dates through 2017. The total notional amount of the forward contracts outstanding at January 2, 2016 was $2.0 billion maturing on various dates through 2016. The income statement impacts related to derivatives not designated as hedging instruments for 2016 and 2015 are as follows (in millions): Derivatives Not Designated as Hedging Instruments under ASC 815 Income Statement Classification Year-to-Date 2016 Year-to-Date 2015 Foreign Exchange Contracts Other-net $ (21.1 ) $ (8.9 ) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK EARNINGS PER SHARE — The following table reconciles net earnings attributable to common shareowners and the weighted average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 31, 2016 , January 2, 2016 , and January 3, 2015 . Earnings per Share Computation: 2016 2015 2014 Numerator (in millions): Net earnings from continuing operations attributable to common shareowners $ 965.3 $ 903.8 $ 857.2 Net loss from discontinued operations — (20.1 ) (96.3 ) Net earnings attributable to common shareowners $ 965.3 $ 883.7 $ 760.9 2016 2015 2014 Denominator (in thousands): Basic earnings per share –– weighted-average shares 146,041 148,234 156,090 Dilutive effect of stock options and awards 2,166 4,472 3,647 Diluted earnings per share –– weighted-average shares 148,207 152,706 159,737 2016 2015 2014 Earnings (loss) per share of common stock: Basic earnings (loss) per share of common stock: Continuing operations $ 6.61 $ 6.10 $ 5.49 Discontinued operations — (0.14 ) (0.62 ) Total basic earnings per share of common stock $ 6.61 $ 5.96 $ 4.87 Diluted earnings (loss) per share of common stock: Continuing operations $ 6.51 $ 5.92 $ 5.37 Discontinued operations — (0.13 ) (0.60 ) Total dilutive earnings per share of common stock $ 6.51 $ 5.79 $ 4.76 The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands): 2016 2015 2014 Number of stock options 734 646 634 As described in detail below, under "Other Equity Arrangements," the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100 , between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during 2014 and certain months in 2015 and 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million . COMMON STOCK ACTIVITY — Common stock activity for 2016 , 2015 and 2014 was as follows: 2016 2015 2014 Outstanding, beginning of year 153,944,291 157,125,450 155,479,230 Issued from treasury 4,870,761 6,046,405 1,986,796 Returned to treasury (6,255,285 ) (9,227,564 ) (340,576 ) Outstanding, end of year 152,559,767 153,944,291 157,125,450 Shares subject to the forward share purchase contract (3,645,510 ) (5,249,332 ) (1,603,822 ) Outstanding, less shares subject to the forward share purchase contract 148,914,257 148,694,959 155,521,628 In 2016, the Company repurchased 3,940,087 shares of common stock for approximately $374.1 million . Additionally, the Company net-share settled capped call options on its common stock and received 711,376 shares during 2016. In November 2016, the Company issued 3,504,165 shares of common stock to settle the purchase contracts of the 2013 Equity Units. In December 2015, the Company issued 2,869,169 shares of common stock to settle the conversion feature of the Convertible Preferred Stock issued and redeemed through a combination settlement. See "Other Equity Arrangements" below for further details of the above transactions. In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million , plus an additional amount related to the forward component of the contract. In November 2016, the Company amended the settlement date to April 2019, or earlier at the Company's option. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in March 2015 and factored into the calculation of weighted average shares outstanding at that time. In October 2014, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $150.0 million , plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than October 2016, or earlier at the Company’s option, for the 1,603,822 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in October 2014 and factored into the calculation of weighted average shares outstanding at that time. In October 2016, the Company physically settled the contract, receiving 1,603,822 shares for a settlement amount of $147.4 million . These shares are reflected as "Returned to treasury" in the table above. COMMON STOCK RESERVED — Common stock shares reserved for issuance under various employee and director stock plans at December 31, 2016 and January 2, 2016 are as follows: 2016 2015 Employee stock purchase plan 1,936,093 2,104,326 Other stock-based compensation plans 4,998,983 7,994,342 Total shares reserved 6,935,076 10,098,668 PREFERRED STOCK PURCHASE RIGHTS — Prior to March 10, 2016, each outstanding share of common stock had a 1 share purchase right. Each purchase right could be exercised to purchase one two-hundredth of a share of Series A Junior Participating Preferred Stock at an exercise price of $220.00 , subject to adjustment. The rights, which did not have voting rights, expired on March 10, 2016 . There were no outstanding rights or shares of Series A Junior Participating Preferred Stock as of December 31, 2016 . STOCK-BASED COMPENSATION PLANS — The Company has stock-based compensation plans for salaried employees and non-employee members of the Board of Directors. The plans provide for discretionary grants of stock options, restricted stock units and other stock-based awards. The plans are generally administered by the Compensation and Organization Committee of the Board of Directors, consisting of non-employee directors. Stock Option Valuation Assumptions: Stock options are granted at the fair market value of the Company’s stock on the date of grant and have a 10 -year term. Generally, stock option grants vest ratably over 4 years from the date of grant. The following describes how certain assumptions affecting the estimated fair value of stock options are determined: the dividend yield is computed as the annualized dividend rate at the date of grant divided by the strike price of the stock option; expected volatility is based on an average of the market implied volatility and historical volatility for the 5.25 year expected life; the risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the option; and a seven percent forfeiture rate is assumed. The Company uses historical data in order to estimate forfeitures and holding period behavior for valuation purposes. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used to value grants made in 2016 , 2015 and 2014 . 2016 2015 2014 Average expected volatility 24.1 % 25.0 % 27.0 % Dividend yield 2.0 % 2.0 % 2.2 % Risk-free interest rate 2.0 % 1.9 % 1.8 % Expected term 5.3 years 5.3 years 5.3 years Fair value per option $ 23.41 $ 21.94 $ 19.98 Weighted average vesting period 2.4 years 2.8 years 2.8 years Stock Options: The number of stock options and weighted-average exercise prices as of December 31, 2016 are as follows: Options Price Outstanding, beginning of year 6,042,839 $ 77.36 Granted 1,250,198 118.97 Exercised (718,275 ) 65.98 Forfeited (141,176 ) 95.15 Outstanding, end of year 6,433,586 $ 86.33 Exercisable, end of year 3,897,279 $ 71.21 At December 31, 2016 , the range of exercise prices on outstanding stock options was $30.03 to $121.63 . Stock option expense was $22.8 million , $16.7 million and $16.5 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. At December 31, 2016 , the Company had $36.2 million of unrecognized pre-tax compensation expense for stock options. This expense will be recognized over the remaining vesting periods which are 2.4 years on a weighted average basis. During 2016 , the Company received $47.4 million in cash from the exercise of stock options. The related tax benefit from the exercise of these options was $13.0 million . During 2016 , 2015 and 2014 , the total intrinsic value of options exercised was $35.9 million , $102.7 million and $33.7 million , respectively. When options are exercised, the related shares are issued from treasury stock. ASC 718, “Compensation — Stock Compensation,” requires the benefit arising from tax deductions in excess of recognized compensation cost to be classified as a financing cash flow. To quantify the recognized compensation cost on which the excess tax benefit is computed, both actual compensation expense recorded and pro-forma compensation cost reported in disclosures are considered. An excess tax benefit is generated on the extent to which the actual gain, or spread, an optionee receives upon exercise of an option exceeds the fair value determined at the grant date; that excess spread over the fair value of the option times the applicable tax rate represents the excess tax benefit. In 2016 , 2015 and 2014 , the Company reported $9.1 million , $21.2 million and $7.3 million , respectively, of excess tax benefits as a financing cash flow within the proceeds from issuance of common stock caption. Outstanding and exercisable stock option information at December 31, 2016 follows: Outstanding Stock Options Exercisable Stock Options Exercise Price Ranges Options Weighted- average Remaining Contractual Life Weighted- average Exercise Price Options Weighted- Weighted- $35.00 and below 56,460 1.96 $ 33.00 56,460 1.96 $ 33.00 $35.01 — 50.00 93,799 2.75 48.65 93,799 2.75 48.65 $50.01 — higher 6,283,327 6.90 87.37 3,747,020 5.41 72.35 6,433,586 6.79 $ 86.33 3,897,279 5.30 $ 71.21 Compensation cost for new grants is recognized on a straight-line basis over the vesting period. The expense for retirement eligible employees (those aged 55 and over and with 10 or more years of service) is recognized by the date they become retirement eligible, as such employees may retain their options for the 10 year contractual term in the event they retire prior to the end of the vesting period stipulated in the grant. As of December 31, 2016, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $187.8 million and $169.5 million , respectively. Employee Stock Purchase Plan: The Employee Stock Purchase Plan (“ESPP”) enables eligible employees in the United States and Canada to subscribe at any time to purchase shares of common stock on a monthly basis at the lower of 85.0% of the fair market value of the shares on the grant date ( $86.87 per share for fiscal year 2016 purchases) or 85.0% of the fair market value of the shares on the last business day of each month. A maximum of 6,000,000 shares are authorized for subscription. During 2016 , 2015 and 2014 , 168,233 shares, 182,039 shares and 128,144 shares, respectively, were issued under the plan at average prices of $84.46 , $71.80 , and $71.69 per share, respectively, and the intrinsic value of the ESPP purchases was $4.8 million , $5.4 million and $1.9 million , respectively. For 2016 , the Company received $14.2 million in cash from ESPP purchases, and there was no related tax benefit. The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. ESPP compensation cost is recognized ratably over the one -year term based on actual employee stock purchases under the plan. The fair value of the employees’ purchase rights under the ESPP was estimated using the following assumptions for 2016 , 2015 and 2014 , respectively: dividend yield of 2.1% , 2.2% and 2.5% ; expected volatility of 20.0% , 19.0% and 25.0% ; risk-free interest rates of 0.5% , 0.1% , and 0.1% ; and expected lives of one year. The weighted average fair value of those purchase rights granted in 2016 , 2015 and 2014 was $29.68 , $31.41 and $17.10 , respectively. Total compensation expense recognized for ESPP amounted to $4.7 million for 2016 , $5.4 million for 2015 , and $2.1 million for 2014 . Restricted Share Units and Awards: Compensation cost for restricted share units and awards, including restricted shares granted to French employees in lieu of RSUs, (collectively “RSUs”) granted to employees is recognized ratably over the vesting term, which varies but is generally 4 years. RSU grants totaled 445,155 shares, 349,768 shares and 559,955 shares in 2016 , 2015 and 2014 , respectively. The weighted-average grant date fair value of RSUs granted in 2016 , 2015 and 2014 was $118.20 , $107.43 and $93.67 per share, respectively. Total compensation expense recognized for RSUs amounted to $32.6 million , $30.9 million and $26.0 million in 2016 , 2015 and 2014 , respectively. The actual tax benefit received in the period the shares were delivered was $11.4 million . The excess tax benefit recognized was $2.4 million , $7.0 million , and $3.5 million in 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , unrecognized compensation expense for RSUs amounted to $79.8 million and this cost will be recognized over a weighted-average period of 2.2 years. A summary of non-vested restricted stock unit and award activity as of December 31, 2016 , and changes during the twelve month period then ended is as follows: Restricted Share Units & Awards Weighted Average Grant Date Fair Value Non-vested at January 2, 2016 1,086,669 $ 88.19 Granted 445,155 118.20 Vested (315,766 ) 117.19 Forfeited (84,034 ) 103.95 Non-vested at December 31, 2016 1,132,024 $ 100.53 The total fair value of shares vested (market value on the date vested) during 2016 , 2015 and 2014 was $37.0 million , $72.2 million and $64.5 million , respectively. Non-employee members of the Board of Directors received restricted share-based grants which must be cash settled and accordingly mark-to-market accounting is applied. Additionally, the Board of Directors were granted restricted share units for which compensation expense of $1.1 million was recognized for 2016 , 2015 and 2014 . Long-Term Performance Awards: The Company has granted Long Term Performance Awards (“LTIPs”) under its 2009 and 2013 Long Term Incentive Plans to senior management employees for achieving Company performance measures. Awards are payable in shares of common stock, which may be restricted if the employee has not achieved certain stock ownership levels, and generally no award is made if the employee terminates employment prior to the payout date. LTIP grants were made in 2014 , 2015 and 2016 . Each grant has separate annual performance goals for each year within the respective three year performance period. Earnings per share and cash flow return on investment represent 75% of the share payout of each grant. There is a third market-based element, representing 25% of the total grant, which measures the Company’s common stock return relative to peers over the performance period. The ultimate delivery of shares will occur in 2017 , 2018 and 2019 for the 2014 , 2015 and 2016 grants, respectively. Total payouts are based on actual performance in relation to these goals. Expense recognized for these performance awards amounted to $20.0 million in 2016 , $13.8 million in 2015 , and $11.4 million in 2014 . With the exception of the market-based award, in the event performance goals are not met, compensation cost is not recognized and any previously recognized compensation cost is reversed. A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: Share Units Weighted Average Grant Date Fair Value Non-vested at January 2, 2016 842,541 $ 78.83 Granted 261,081 86.56 Vested (162,136 ) 71.42 Forfeited (140,412 ) 72.11 Non-vested at December 31, 2016 801,074 $ 84.03 OTHER EQUITY ARRANGEMENTS In November 2013, the Company purchased from certain financial institutions “out-of-the-money” capped call options on 12.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $73.5 million , or an average of $6.03 per share. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase. The premium paid was recorded as a reduction of Shareowners’ equity. The contracts for the options provide that they may, at the Company’s election, subject to certain conditions, be cash settled, physically settled, modified-physically settled, or net-share settled (the default settlement method). The capped call options had various expiration dates and initially had an average lower strike price of $86.07 and an average upper strike price of $106.56 , subject to customary market adjustments. In February 2015, the Company net-share settled 9.1 million of the 12.2 million capped call options on its common stock and received 911,077 shares using an average reference price of $96.46 per common share. Additionally, the Company purchased directly from the counterparties participating in the net-share settlement, 3,381,162 shares for $326.1 million , equating to an average price of $96.46 per share. In February 2016, the Company net-share settled the remaining 3.1 million capped call options on its common stock and received 293,142 shares using an average reference price of $94.34 per common share. Additionally, the Company purchased 1,316,858 shares directly from the counterparty participating in the net-share settlement for $124.2 million . The Company also repurchased 2,446,287 shares of common stock in February 2016 for $230.9 million , equating to an average price of $94.34 . Equity Units and Capped Call Transactions As described more fully in Note H, Long-Term Debt and Financing Arrangements , in December 2013, the Company issued Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts. The Equity Purchase Contracts obligated the holders to purchase on November 17, 2016, for $100 , between 1.0122 and 1.2399 shares of the Company’s common stock, which are equivalent to an initial settlement price of $98.80 and $80.65 , respectively, per share of common stock. In accordance with the Equity Purchase Contracts, on November 17, 2016, the Company issued 3,504,165 shares of common shares and received additional cash proceeds of $345.0 million . The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period, was 1.0157 (equivalent to the minimum settlement rate and a conversion price of $98.45 per common share) on November 17, 2016. Contemporaneously with the issuance of the Equity Units described above, the Company paid $9.7 million , or an average of $2.77 per option, to enter into capped call transactions on 3.5 million shares of common stock with a major financial institution. The purpose of the capped call transactions is to offset the potential economic dilution associated with the common shares issuable upon the settlement of the Equity Purchase Contracts. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. The $9.7 million premium paid was recorded as a reduction to equity. The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts at the 1.0122 minimum settlement rate. The capped call transactions had a term of approximately three years and initially had a lower strike price of $98.80 , which corresponded to a minimum settlement rate of the Equity Purchase Contracts, and an upper strike price of $112.91 , which was approximately 40% higher than the closing price of the Company’s common stock on November 25, 2013, subject to customary anti-dilution adjustments. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares using an average reference price of $117.84 per common share. Convertible Preferred Units and Equity Option As described more fully in Note H, Long-Term Debt and Financing Arrangements , in November 2010 , the Company issued Convertible Preferred Units comprised of $632.5 million of Notes due November 17, 2018 and Purchase Contracts. The Purchase Contracts obligated the holders to purchase, on November 17, 2015 , 6.3 million shares, for $100 per share, of the Company’s 4.75% Series B Cumulative Convertible Preferred Stock (the “Convertible Preferred Stock”). In accordance with the Purchase Contracts, on November 17, 2015, the Company issued 6.3 million shares of Convertible Preferred Stock resulting in cash proceeds to the Company of $632.5 million . On November 18, 2015, the Company informed holders that it would redeem all outstanding shares of Convertible Preferred Stock on December 24, 2015 (the “Redemption Date”) at $100.49 per share in cash (the “Redemption Price”), which is equal to the liquidation preference of $100 per share of Convertible Preferred Stock, plus accrued and unpaid dividends thereon to, but excluding, the Redemption Date. The Company settled all conversions on December 24, 2015 by paying cash for the $100 par value, or $632.5 million in total, and issuing 2.9 million common shares for the excess value of the conversion feature above the $100 face value per share of Convertible Preferred Stock. The conversion rates used in calculating the Daily Conversion during the observation period, were 1.3763 (equivalent to a conversion price set at $72.66 per common share) prior to December 2, 2015 and 1.3789 (equivalent to a conversion price set at $72.52 per common share) on and after December 2, 2015. In November 2010 , contemporaneously with the issuance of the Convertible Preferred Units described above, the Company paid $50.3 million , or an average of $5.97 per option, to enter into capped call transactions (equity options) on 8.4 million shares of common stock with certain major financial institutions. The purpose of the capped call transactions was to offset the common shares that may be deliverable upon conversion of shares of Convertible Preferred Stock. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. The $50.3 million premium paid was recorded as a reduction to equity. The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares of common stock equal to the number of shares of common stock underlying the maximum number of shares of Convertible Preferred Stock issuable upon settlement of the Purchase Contracts. Each of the capped call transactions had a term of approximately five years and initially had a lower strike price of $75.00 , which corresponded to the initial conversion price of the Convertible Preferred Stock, and an upper strike price of $97.95 , which was approximately 60% higher than the closing price of the common stock on November 1, 2010 . On August 5, 2015, the Company net-share settled the capped call options on its common stock and received 1,692,778 shares using an average reference price of $103.97 per common share. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: (Millions of Dollars) Currency translation adjustment and other Unrealized (losses) gains on cash flow hedges, net of tax Unrealized (losses) gains on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - January 3, 2015 $ (796.8 ) $ (50.9 ) $ (37.2 ) $ (385.3 ) $ (1,270.2 ) Other comprehensive (loss) income before reclassifications (504.1 ) 21.2 49.0 21.3 (412.6 ) Reclassification adjustments to earnings — (22.4 ) — 11.0 (11.4 ) Net other comprehensive (loss) income (504.1 ) (1.2 ) 49.0 32.3 (424.0 ) Balance - January 2, 2016 (1,300.9 ) (52.1 ) 11.8 (353.0 ) (1,694.2 ) Other comprehensive (loss) income before reclassifications (285.4 ) 9.1 76.8 (36.3 ) (235.8 ) Reclassification adjustments to earnings — (3.3 ) — 12.1 8.8 Net other comprehensive (loss) income (285.4 ) 5.8 76.8 (24.2 ) (227.0 ) Balance - December 31, 2016 $ (1,586.3 ) $ (46.3 ) $ 88.6 $ (377.2 ) $ (1,921.2 ) (Millions of Dollars) 2016 2015 Components of accumulated other comprehensive loss Reclassification adjustments Reclassification adjustments Affected line item in Consolidated Statements of Operations Realized gains on cash flow hedges $ 21.7 $ 57.4 Cost of sales Realized losses on cash flow hedges (15.1 ) (15.1 ) Interest Expense Total before taxes $ 6.6 $ 42.3 Tax effect (3.3 ) (19.9 ) Income taxes on continuing operations Realized gains on cash flow hedges, net of tax $ 3.3 $ 22.4 Amortization of defined benefit pension items: Actuarial losses and prior service costs / credits $ (10.4 ) $ (9.7 ) Cost of sales Actuarial losses and prior service costs / credits (6.9 ) (6.4 ) Selling, general and administrative Total before taxes (17.3 ) (16.1 ) Tax effect 5.2 5.1 Income taxes on continuing operations Amortization of defined benefit pension items, net of tax $ (12.1 ) $ (11.0 ) |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP ”) Most U.S. employees may contribute from 1% to 25% of their eligible compensation to a tax-deferred 401(k) savings plan, subject to restrictions under tax laws. Employees generally direct the investment of their own contributions into various investment funds. An employer match benefit is provided under the plan equal to one-half of each employee’s tax-deferred contribution up to the first 7% of their compensation. Participants direct the entire employer match benefit such that no participant is required to hold the Company’s common stock in their 401(k) account. The employer match benefit totaled $21.9 million , $21.1 million and $19.9 million in 2016 , 2015 and 2014 , respectively. In addition to the regular employer match, $4.3 million will be allocated to the employee's accounts for forfeitures and a surplus resulting from appreciation of the Company's share value in 2016. In addition, approximately 7,700 U.S. salaried and non-union hourly employees are eligible to receive a non-contributory benefit under the Core benefit plan. Core benefit allocations range from 2% to 6% of eligible employee compensation based on age. Core transition benefit allocations and additional Core transition benefit allocations were made under the plan for the years 2011-2015 for certain employees who were previously eligible for Cornerstone account allocations (the predecessor to the Core benefit plan) and certain employees who were previously eligible to accrue benefits under specified defined benefit plans. No Core transition benefit allocations or additional Core transition benefit allocations were made after December 31, 2015. Allocations for benefits earned under the Core plan were $17.6 million in 2016 , $22.1 million in 2015 and $20.7 million in 2014 . Assets held in participant Core accounts are invested in target date retirement funds which have an age-based allocation of investments. Shares of the Company's common stock held by the ESOP were purchased with the proceeds of borrowings from the Company in 1991 ("1991 internal loan"). Shareowners' equity reflects a reduction equal to the cost basis of unearned (unallocated) shares purchased with the internal borrowings. In 2016 , 2015 and 2014 , the Company made additional contributions to the ESOP for $7.9 million , $7.2 million , and $9.4 million , respectively, which were used by the ESOP to make additional payments on the 1991 internal loan. These payments triggered the release of 219,492 , 184,753 and 230,032 shares of unallocated stock, respectively. Net ESOP activity recognized is comprised of the cost basis of shares released, the cost of the aforementioned Core and 401(k) match defined contribution benefits, less the fair value of shares released and dividends on unallocated ESOP shares. The Company’s net ESOP activity resulted in income of $3.1 million in 2016 and expense of $0.8 million in 2015 and $0.7 million in 2014 . ESOP expense is affected by the market value of the Company’s common stock on the monthly dates when shares are released. The market value of shares released averaged $112.12 in 2016 , $101.79 per share in 2015 and $88.05 per share in 2014 . Unallocated shares are released from the trust based on current period debt principal and interest payments as a percentage of total future debt principal and interest payments. Dividends on both allocated and unallocated shares may be used for debt service and to credit participant accounts for dividends earned on allocated shares. Dividends paid on the shares acquired with the 1991 internal loan were used solely to pay internal loan debt service in all periods. Dividends on ESOP shares, which are charged to shareowners’ equity as declared, were $9.0 million in 2016 , $9.7 million in 2015 and $10.6 million in 2014 , net of the tax benefit which is recorded within equity. Dividends on ESOP shares were utilized entirely for debt service in all years. Interest costs incurred by the ESOP on the 1991 internal loan, which have no earnings impact, were $3.1 million , $3.8 million and $4.7 million for 2016 , 2015 and 2014 , respectively. Both allocated and unallocated ESOP shares are treated as outstanding for purposes of computing earnings per share. As of December 31, 2016 , the cumulative number of ESOP shares allocated to participant accounts was 14,145,330 , of which participants held 2,386,937 shares, and the number of unallocated shares was 1,396,027 . At December 31, 2016 , there were 21,732 released shares in the ESOP trust holding account pending allocation. The Company made cash contributions totaling $4.2 million in 2016 , $4.4 million in 2015 and $3.4 million in 2014 excluding additional contributions of $7.9 million , $7.2 million and $9.4 million in 2016 , 2015 and 2014 , respectively, as discussed previously. PENSION AND OTHER BENEFIT PLANS — The Company sponsors pension plans covering most domestic hourly and certain executive employees, and approximately 14,500 foreign employees. Benefits are generally based on salary and years of service, except for U.S. collective bargaining employees whose benefits are based on a stated amount for each year of service. The Company contributes to a number of multi-employer plans for certain collective bargaining U.S. employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefit to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers. c. If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. In addition, the Company also contributes to a number of multiemployer plans outside of the U.S. The foreign plans are insured, therefore, the Company’s obligation is limited to the payment of insurance premiums. The Company has assessed and determined that none of the multiemployer plans to which it contributes are individually significant to the Company’s financial statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the contract period. In addition to the multiemployer plans, various other defined contribution plans are sponsored worldwide. The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows: (Millions of Dollars) 2016 2015 2014 Multi-employer plan expense $ 5.1 $ 4.0 $ 4.0 Other defined contribution plan expense $ 15.4 $ 11.7 $ 14.0 The components of net periodic pension (benefit) expense are as follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2014 2016 2015 2014 Service cost $ 9.4 $ 7.0 $ 8.9 $ 12.5 $ 14.4 $ 13.1 Interest cost 45.3 54.0 56.4 37.0 46.8 59.3 Expected return on plan assets (67.9 ) (74.9 ) (72.1 ) (44.5 ) (56.5 ) (61.0 ) Prior service cost amortization 5.2 1.8 1.1 0.3 0.9 0.3 Actuarial loss amortization 7.1 7.2 0.9 5.9 7.5 7.0 Settlement / curtailment loss — — — 0.7 1.5 0.3 Net periodic pension (benefit) expense $ (0.9 ) $ (4.9 ) $ (4.8 ) $ 11.9 $ 14.6 $ 19.0 The Company provides medical and dental benefits for certain retired employees in the United States and Canada. Approximately 13,300 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements: Other Benefit Plans (Millions of Dollars) 2016 2015 2014 Service cost $ 0.6 $ 0.5 $ 1.0 Interest cost 1.7 2.1 2.7 Prior service credit amortization (1.2 ) (1.3 ) (1.4 ) Actuarial loss amortization — — (0.1 ) Net periodic post-retirement expense $ 1.1 $ 1.3 $ 2.2 In the first quarter of 2016, the Company changed the method used to estimate the service and interest cost components of net periodic pension (benefit) expense. The new estimation method uses a full yield curve approach by applying specific spot rates along the yield curve used in the determination of the pension benefit obligation, to their underlying projected cash flows, and provides a more precise measurement of the service and interest cost components. Previously, the Company used a single weighted average discount rate derived from the corresponding yield curve used to measure the pension benefit obligation. The change is applied prospectively as a change in estimate that is inseparable from a change in accounting principle and reduced service and interest cost for the year ended December 31, 2016 by approximately $13.9 million . Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2016 are as follows: (Millions of Dollars) 2016 Current year actuarial loss $ 122.1 Amortization of actuarial loss (13.0 ) Prior service credit from plan amendments (39.4 ) Amortization of prior service costs (4.3 ) Settlement / curtailment loss (0.8 ) Currency / other (31.1 ) Total increase recognized in accumulated other comprehensive loss (pre-tax) $ 33.5 The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs during 2017 total $15.1 million , representing amortization of actuarial losses. The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below. U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2016 2015 2016 2015 2016 2015 Change in benefit obligation Benefit obligation at end of prior year $ 1,385.7 $ 1,460.5 $ 1,374.2 $ 1,540.4 $ 61.0 $ 69.8 Service cost 9.4 7.0 12.5 14.4 0.6 0.5 Interest cost 45.3 54.0 37.0 46.8 1.7 2.1 Settlements/curtailments — — (5.7 ) (8.0 ) — — Actuarial loss (gain) 41.5 (45.8 ) 229.7 (86.7 ) (0.7 ) (2.1 ) Plan amendments 1.8 5.8 (40.4 ) 0.2 (0.8 ) — Foreign currency exchange rates — — (190.0 ) (76.2 ) 0.3 (1.5 ) Participant contributions — — 0.3 0.3 — — Expenses paid from assets and other (5.5 ) (3.4 ) (2.0 ) (1.3 ) — — Benefits paid (119.2 ) (92.4 ) (55.8 ) (55.7 ) (7.9 ) (7.8 ) Benefit obligation at end of year $ 1,359.0 $ 1,385.7 $ 1,359.8 $ 1,374.2 $ 54.2 $ 61.0 Change in plan assets Fair value of plan assets at end of prior year $ 1,081.5 $ 1,174.1 $ 1,047.3 $ 1,115.7 $ — $ — Actual return on plan assets 90.9 (19.3 ) 169.4 8.3 — — Participant contributions — — 0.3 0.3 — — Employer contributions 19.4 22.5 29.5 35.5 7.9 7.8 Settlements — — (5.5 ) (6.4 ) — — Foreign currency exchange rate changes — — (167.9 ) (48.2 ) — — Expenses paid from assets and other (5.5 ) (3.4 ) (2.0 ) (2.2 ) — — Benefits paid (119.2 ) (92.4 ) (55.8 ) (55.7 ) (7.9 ) (7.8 ) Fair value of plan assets at end of plan year $ 1,067.1 $ 1,081.5 $ 1,015.3 $ 1,047.3 $ — $ — Funded status — assets less than benefit obligation $ (291.9 ) $ (304.2 ) $ (344.5 ) $ (326.9 ) $ (54.2 ) $ (61.0 ) Unrecognized prior service cost (credit) 5.8 9.1 (35.0 ) 2.3 (6.2 ) (6.6 ) Unrecognized net actuarial loss 267.2 255.8 296.7 233.5 0.5 1.4 Unrecognized net transition obligation — — 0.1 0.1 — — Net amount recognized $ (18.9 ) $ (39.3 ) $ (82.7 ) $ (91.0 ) $ (59.9 ) $ (66.2 ) U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2016 2015 2016 2015 2016 2015 Amounts recognized in the Consolidated Balance Sheets Prepaid benefit cost (non-current) $ — $ — $ 0.2 $ 2.9 $ — $ — Current benefit liability (25.8 ) (11.0 ) (10.0 ) (7.9 ) (5.9 ) (6.7 ) Non-current benefit liability (266.1 ) (293.2 ) (334.7 ) (321.9 ) (48.3 ) (54.3 ) Net liability recognized $ (291.9 ) $ (304.2 ) $ (344.5 ) $ (326.9 ) $ (54.2 ) $ (61.0 ) Accumulated other comprehensive loss (pre-tax): Prior service cost (credit) $ 5.8 $ 9.1 $ (35.0 ) $ 2.3 $ (6.2 ) $ (6.6 ) Actuarial loss 267.2 255.8 296.7 233.5 0.5 1.4 Transition liability — — 0.1 0.1 — — $ 273.0 $ 264.9 $ 261.8 $ 235.9 $ (5.7 ) $ (5.2 ) Net amount recognized $ (18.9 ) $ (39.3 ) $ (82.7 ) $ (91.0 ) $ (59.9 ) $ (66.2 ) The accumulated benefit obligation for all defined benefit pension plans was $2,666.7 million at December 31, 2016 and $2,714.0 million at January 2, 2016 . Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2016 2015 Projected benefit obligation $ 1,359.0 $ 1,385.7 $ 1,334.1 $ 894.5 Accumulated benefit obligation $ 1,353.0 $ 1,383.9 $ 1,290.7 $ 855.5 Fair value of plan assets $ 1,067.1 $ 1,081.5 $ 990.5 $ 566.9 Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2016 2015 Projected benefit obligation $ 1,359.0 $ 1,385.7 $ 1,359.0 $ 921.7 Accumulated benefit obligation $ 1,353.0 $ 1,383.9 $ 1,313.2 $ 879.4 Fair value of plan assets $ 1,067.1 $ 1,081.5 $ 1,014.4 $ 591.9 The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 4.00 % 4.25 % 3.75 % 2.50 % 3.25 % 3.25 % 3.50 % 3.75 % 3.25 % Rate of compensation increase 3.00 % 6.00 % 6.00 % 3.75 % 3.25 % 3.50 % 3.50 % 3.50 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 4.25 % 3.75 % 4.50 % 3.25 % 3.25 % 4.00 % 3.75 % 3.25 % 4.00 % Rate of compensation increase 6.00 % 6.00 % 6.00 % 3.25 % 3.50 % 3.75 % 3.50 % 3.50 % 3.50 % Expected return on plan assets 6.50 % 6.50 % 7.00 % 4.75 % 5.25 % 5.75 % — — — The expected rate of return on plan assets is determined considering the returns projected for the various asset classes and the relative weighting for each asset class. The Company will use a 5.35% weighted-average expected rate of return assumption to determine the 2017 net periodic benefit cost. PENSION PLAN ASSETS — Plan assets are invested in equity securities, government and corporate bonds and other fixed income securities, money market instruments and insurance contracts. The Company’s worldwide asset allocations at December 31, 2016 and January 2, 2016 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows (in millions): Asset Category 2016 Level 1 Level 2 Cash and cash equivalents $ 50.8 $ 35.3 $ 15.5 Equity securities U.S. equity securities 303.8 100.7 203.1 Foreign equity securities 254.1 75.8 178.3 Fixed income securities Government securities 687.0 227.0 460.0 Corporate securities 687.9 687.9 Insurance contracts 35.0 35.0 Other 63.8 63.8 Total $ 2,082.4 $ 438.8 $ 1,643.6 Asset Category 2015 Level 1 Level 2 Cash and cash equivalents $ 58.1 $ 39.7 $ 18.4 Equity securities U.S. equity securities 296.3 50.4 245.9 Foreign equity securities 269.0 43.2 225.8 Fixed income securities Government securities 696.7 248.3 448.4 Corporate securities 716.9 — 716.9 Insurance contracts 33.2 — 33.2 Other 58.6 — 58.6 Total $ 2,128.8 $ 381.6 $ 1,747.2 U.S. and foreign equity securities primarily consist of companies with large market capitalizations and to a lesser extent mid and small capitalization securities. Government securities primarily consist of U.S. Treasury securities and foreign government securities with de minimus default risk. Corporate fixed income securities include publicly traded U.S. and foreign investment grade and to a small extent high yield securities. Assets held in insurance contracts are invested in the general asset pools of the various insurers, mainly debt and equity securities with guaranteed returns. Other investments include diversified private equity holdings. The level 2 investments are primarily comprised of institutional mutual funds that are not publicly traded; the investments held in these mutual funds are generally level 1 publicly traded securities. The Company's investment strategy for pension assets focuses on a liability-matching approach with gradual de-risking taking place over a period of many years. The Company utilizes the current funded status to transition the portfolio toward investments that better match the duration and cash flow attributes of the underlying liabilities. Assets approximating 50% of the Company's current pension liabilities have been invested in fixed income securities, using a liability / asset matching duration strategy, with the primary goal of mitigating exposure to interest rate movements and preserving the overall funded status of the underlying plans. Plan assets are broadly diversified and are invested to ensure adequate liquidity for immediate and medium term benefit payments. The Company’s target asset allocations include 25% - 45% in equity securities, 50% - 70% in fixed income securities and up to 10% in other securities. In 2016 and 2015, the funded status percentage (total plan assets divided by total projected benefit obligation) of all global pension plans was 77% , improved from 76% in 2014. CONTRIBUTIONS — The Company’s funding policy for its defined benefit plans is to contribute amounts determined annually on an actuarial basis to provide for current and future benefits in accordance with federal law and other regulations. The Company expects to contribute approximately $65.6 million to its pension and other post-retirement benefit plans in 2017. EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years : (Millions of Dollars) Total Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 Future payments $ 1,451.4 $ 187.9 $ 139.4 $ 137.3 $ 139.5 $ 141.6 $ 705.7 These benefit payments will be funded through a combination of existing plan assets, the returns on those assets, and amounts to be contributed in the future by the Company. HEALTH CARE COST TRENDS — The weighted average annual assumed rate of increase in the per-capita cost of covered benefits (i.e., health care cost trend rate) is assumed to be 7.0% for 2017, reducing gradually to 4.5% by 2028 and remaining at that level thereafter. A one percentage point change in the assumed health care cost trend rate would affect the post-retirement benefit obligation as of December 31, 2016 by approximately $1.6 million to $1.8 million , and would have an immaterial effect on the net periodic post-retirement benefit cost. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FASB ASC 820, "Fair Value Measurement," defines, establishes a consistent framework for measuring, and expands disclosure requirements about fair value. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs and significant value drivers are observable. Level 3 — Instruments that are valued using unobservable inputs. The Company holds various derivative financial instruments that are employed to manage risks, including foreign currency and interest rate exposures. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value of derivatives through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining the fair value of these financial instruments for which Level 1 evidence does not exist, the Company considers various factors including the following: exchange or market price quotations of similar instruments, time value and volatility factors, the Company’s own credit rating and the credit rating of the counter-party. The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels: (Millions of Dollars) Total Carrying Value Level 1 Level 2 December 31, 2016 Money market fund $ 4.3 $ 4.3 $ — Derivative assets $ 110.2 $ — $ 110.2 Derivative liabilities $ 97.6 $ — $ 97.6 January 2, 2016: Money market fund $ 7.0 $ 7.0 $ — Derivative assets $ 79.3 $ — $ 79.3 Derivative liabilities $ 96.1 $ — $ 96.1 The Company had no significant non-recurring fair value measurements, nor any financial assets or liabilities measured using Level 3 inputs, during 2016 and 2015 . As discussed in Note T, Divestitures, the Company recorded a pre-tax impairment loss of $60.7 million in the fourth quarter of 2014 in order to measure the Security segment's Spain and Italy operations at their estimated fair values less cost to sell. The estimated fair values were determined using Level 3 inputs, including relevant market information as well as a discounted cash flow analysis based on estimated projections. The following table presents the carrying values and fair values of the Company's financial assets and liabilities, as well as the Company's debt, as of December 31, 2016 and January 2, 2016 : December 31, 2016 January 2, 2016 (Millions of Dollars) Carrying Value Fair Value Carrying Value Fair Value Other investments $ 8.9 $ 9.2 $ 11.7 $ 11.7 Derivative assets $ 110.2 $ 110.2 $ 79.3 $ 79.3 Derivative liabilities $ 97.6 $ 97.6 $ 96.1 $ 96.1 Long-term debt, including current portion $ 3,823.1 $ 3,967.4 $ 3,797.2 $ 4,034.4 The other investments relate to the West Coast Loading Corporation ("WCLC") trust and are considered Level 1 instruments within the fair value hierarchy. The long-term debt instruments are considered Level 2 instruments and are measured using a discounted cash flow analysis based on the Company’s marginal borrowing rates. The differences between the carrying values and fair values of long-term debt are attributable to the stated interest rates differing from the Company's marginal borrowing rates. The fair values of the Company's variable rate short-term borrowings approximate their carrying values at December 31, 2016 and January 2, 2016 . The fair values of foreign currency and interest rate swap agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement values. As discussed in Note B, Accounts and Notes Receivable , the Company has a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable will be repaid in cash as receivables are collected, generally within 30 days, and as such the carrying value of the receivable approximates fair value. Refer to Note I, Derivative Financial Instruments , for more details regarding derivative financial instruments, Note S, Contingencies, for more details regarding the other investments related to the WCLC trust, and Note H, Long-Term Debt and Financing Arrangements , for more information regarding the carrying values of the long-term debt. |
OTHER COSTS AND EXPENSES
OTHER COSTS AND EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Other Costs and Expenses [Abstract] | |
OTHER COSTS AND EXPENSES | OTHER COSTS AND EXPENSES Other-net is primarily comprised of intangible asset amortization expense (see Note F, Goodwill and Intangible Assets ), currency related gains or losses, environmental remediation expense and other charges primarily consisting of merger and acquisition-related transaction costs, as well as pension curtailments and settlements. Research and development costs, which are classified in SG&A, were $204.4 million , $188.0 million and $174.6 million for fiscal years 2016 , 2015 and 2014 , respectively. |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS A summary of the restructuring reserve activity from January 2, 2016 to December 31, 2016 is as follows (in millions): 1/2/2016 Net Additions Usage Currency 12/31/2016 Severance and related costs $ 44.3 $ 27.3 $ (50.0 ) $ (0.2 ) $ 21.4 Facility closures and asset impairments 14.4 21.7 (21.0 ) (0.9 ) 14.2 Total $ 58.7 $ 49.0 $ (71.0 ) $ (1.1 ) $ 35.6 During 2016 , the Company recognized net restructuring charges and asset impairments of $49.0 million . This amount reflects $27.3 million of net severance charges associated with the reduction of 1,326 employees. The Company also recognized $11.0 million of facility closure costs and $10.7 million of asset impairments. The majority of the $35.6 million of reserves remaining as of December 31, 2016 is expected to be utilized within the next twelve months. Segments: The $49 million of net restructuring charges and asset impairments for the twelve months ended December 31, 2016 includes: $13 million of net charges pertaining to the Tools & Storage segment; $17 million of net charges pertaining to the Security segment; $9 million of net charges pertaining to the Industrial segment; and $10 million of net charges pertaining to Corporate. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS As previously discussed, in the first quarter of 2015 the Company combined the CDIY business with certain complementary elements of the IAR and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. The Company recast segment net sales and profit for all years to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. The Company classifies its business into three reportable segments, which also represent its operating segments: Tools & Storage, Security and Industrial. The Tools & Storage segment is comprised of the Power Tools and Hand Tools, Accessories & Storage ("HTAS") businesses. The Power Tools business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders as well as pneumatic tools and fasteners including nail guns, nails, staplers, and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers, and related accessories, and home products such as hand held vacuums, paint tools, and cleaning appliances. The HTAS business sells measuring, leveling and layout tools, planes, hammers, demolition tools, knives, saws, chisels, and industrial and automotive tools. Power tool accessories include drill bits, router bits, abrasives and saw blades. Storage products include tool boxes, sawhorses, medical cabinets, and engineered storage solution products. The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which markets asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business sells automatic doors, commercial hardware, locking mechanisms, electronic keyless entry systems, keying systems, tubular and mortise door locksets. The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific applications. The product lines include stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld studs, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners. The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories. The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for doubtful accounts (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Segment profit excludes the corporate overhead expense element of SG&A, interest income, interest expense, other-net (inclusive of intangible asset amortization expense), restructuring charges, and income taxes. Refer to Note O, Restructuring Charges and Asset Impairments , for the amount of net restructuring charges by segment, and Note F, Goodwill and Intangible Assets , for intangible amortization expense by segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and cost for certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets. Net sales and long-lived assets are attributed to the geographic regions based on the geographic locations of the end customer and the Company subsidiary, respectively. BUSINESS SEGMENTS (Millions of Dollars) 2016 2015 2014 Net Sales Tools & Storage $ 7,469.2 $ 7,140.7 $ 7,033.0 Security 2,097.4 2,092.9 2,261.2 Industrial 1,840.3 1,938.2 2,044.4 Consolidated $ 11,406.9 $ 11,171.8 $ 11,338.6 Segment Profit Tools & Storage $ 1,266.9 $ 1,170.1 $ 1,074.4 Security 269.2 239.6 259.2 Industrial 304.4 339.9 350.6 Segment Profit 1,840.5 1,749.6 1,684.2 Corporate overhead (197.2 ) (164.0 ) (177.4 ) Other-net (196.9 ) (222.0 ) (239.6 ) Restructuring charges and asset impairments (49.0 ) (47.6 ) (18.8 ) Interest income 23.2 15.2 13.6 Interest expense (194.5 ) (180.4 ) (177.2 ) Earnings from continuing operations before income taxes $ 1,226.1 $ 1,150.8 $ 1,084.8 Capital and Software Expenditures Tools & Storage $ 227.3 $ 191.7 $ 183.0 Security 38.6 35.9 27.9 Industrial 81.1 83.8 74.3 Discontinued operations — — 5.8 Consolidated $ 347.0 $ 311.4 $ 291.0 Depreciation and Amortization Tools & Storage $ 203.0 $ 196.5 $ 193.9 Security 98.2 105.2 127.8 Industrial 106.8 112.3 122.5 Discontinued operations $ — $ — $ 5.6 Consolidated $ 408.0 $ 414.0 $ 449.8 Segment Assets Tools & Storage $ 8,512.4 $ 8,492.9 $ 8,568.2 Security 3,139.0 3,741.6 3,972.0 Industrial 3,359.0 3,438.7 3,501.8 15,010.4 15,673.2 16,042.0 Assets held for sale 523.4 — 29.5 Corporate assets 101.1 (545.4 ) (268.1 ) Consolidated $ 15,634.9 $ 15,127.8 $ 15,803.4 Corporate assets primarily consist of cash, deferred taxes, and property, plant and equipment. Based on the nature of the Company's cash pooling arrangements, at times corporate-related cash accounts will be in a net liability position. Sales to the Home Depot were 14% , 13% , and 11% of the Tools & Storage segment net sales in 2016 , 2015 and 2014 , respectively. Sales to Lowes were 15% , 14% and 13% of the Tools & Storage segment net sales in 2016 , 2015 and 2014 , respectively. GEOGRAPHIC AREAS (Millions of Dollars) 2016 2015 2014 Net Sales United States $ 6,135.6 $ 5,882.0 $ 5,492.4 Canada 515.3 516.3 591.3 Other Americas 635.6 706.5 788.4 France 582.7 595.7 695.6 Other Europe 2,468.6 2,371.5 2,585.3 Asia 1,069.1 1,099.8 1,185.6 Consolidated $ 11,406.9 $ 11,171.8 $ 11,338.6 Property, Plant & Equipment United States $ 663.4 $ 676.0 $ 639.7 Canada 29.3 19.1 20.9 Other Americas 95.8 82.6 82.2 France 57.5 64.8 74.7 Other Europe 322.3 328.4 333.2 Asia 282.9 279.3 303.4 Consolidated $ 1,451.2 $ 1,450.2 $ 1,454.1 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows: (Millions of Dollars) 2016 2015 Deferred tax liabilities: Depreciation $ 108.7 $ 99.6 Amortization of intangibles 851.2 868.5 Liability on undistributed foreign earnings 260.7 319.9 Discharge of indebtedness 6.2 9.3 Inventories 6.2 — Deferred revenue 27.3 25.5 Other 61.7 66.8 Total deferred tax liabilities $ 1,322.0 $ 1,389.6 Deferred tax assets: Employee benefit plans $ 362.5 $ 361.1 Doubtful accounts and other customer allowances 19.3 19.0 Inventories — 16.1 Accruals 110.4 135.6 Restructuring charges 4.9 12.6 Operating loss, capital loss and tax credit carryforwards 590.3 562.5 Currency and derivatives 45.1 42.2 Other 126.7 82.7 Total deferred tax assets $ 1,259.2 $ 1,231.8 Net Deferred Tax Liabilities before Valuation Allowance $ 62.8 $ 157.8 Valuation allowance $ 525.5 $ 480.7 Net Deferred Tax Liabilities after Valuation Allowance $ 588.3 $ 638.5 ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," provides that a liability related to an unrecognized tax benefit should be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. As a result, the Company reclassified $12.7 million of unrecognized tax benefits as of December 31, 2016 and $30.1 million of unrecognized tax benefits as of January 2, 2016 , which is reflected in the Operating loss, capital loss and tax credit carryforwards line in the table above. The year-over-year reduction in the amount of the reclassification is primarily due to the utilization of foreign tax credits and research and development credits during 2016. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” The objective of this update is to simplify the presentation of deferred income taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent in the consolidated balance sheet. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, and can be applied either prospectively or retrospectively. The Company elected to early adopt the pronouncement in the fourth quarter of 2016 on a prospective basis. Prior periods were not retrospectively adjusted. The Company’s liability on undistributed foreign earnings decreased by $59.2 million during 2016 , of which $38.7 million was recorded to the income tax provision and $20.5 million was recorded to currency translation adjustments within Accumulated other comprehensive loss. The amount recorded to currency translation adjustments was driven by the significant fluctuations in foreign exchange rates during 2016 , which had the effect of reducing the liability. The amount recorded to the income tax provision is primarily related to a remeasurement of the liability due to a reduction in the taxable earnings and profits of a foreign subsidiary. Net operating loss carryforwards of $1.240 billion as of December 31, 2016 , are available to reduce future tax obligations of certain U.S. and foreign companies. The net operating loss carryforwards have various expiration dates beginning in 2017 with certain jurisdictions having indefinite carry forward periods. The U.S. federal capital loss carry forward of $671.2 million begins expiring in 2017. The capital loss carryforward is primarily attributable to the sale of shares for the U.S. HHI business during the tax year ended December 29, 2012. A valuation allowance is recorded on certain deferred tax assets if it has been determined it is more likely than not that all or a portion of these assets will not be realized. The Company recorded a valuation allowance of $525.5 million and $480.7 million on deferred tax assets existing as of December 31, 2016 and January 2, 2016 , respectively. The valuation allowance is primarily attributable to foreign and state net operating loss carryforwards and a U.S. federal capital loss carryforward, the majority of which was realized upon the sale of the HHI business. Capital losses are only allowed to offset capital gains, none of which was utilized in 2016. During 2016, the Company recorded a valuation allowance of $27.9 million against a deferred tax asset established under ASC 740-30-25-9 for the excess of the outside tax basis over the financial reporting basis for investments in businesses to be sold in 2017, which are classified as Held for Sale on the Company's Consolidated Balance Sheets as of December 31, 2016. The classification of deferred taxes as of December 31, 2016 and January 2, 2016 is as follows: 2016 2015 (Millions of Dollars) Deferred Tax Asset Deferred Tax Liability Deferred Deferred Tax Liability Current $ — $ — $ (85.4 ) $ 18.5 Non-current (147.1 ) 735.4 (120.5 ) 825.9 Total $ (147.1 ) $ 735.4 $ (205.9 ) $ 844.4 Income tax expense (benefit) attributable to continuing operations consisted of the following: (Millions of Dollars) 2016 2015 2014 Current: Federal $ 84.8 $ 64.4 $ 18.4 Foreign 191.5 171.4 141.1 State 10.6 14.1 17.1 Total current $ 286.9 $ 249.9 $ 176.6 Deferred: Federal $ 18.2 $ 64.2 $ 55.3 Foreign (26.1 ) (47.3 ) (19.3 ) State (17.8 ) (18.2 ) 14.5 Total deferred (25.7 ) (1.3 ) 50.5 Income taxes on continuing operations $ 261.2 $ 248.6 $ 227.1 Net income taxes paid during 2016 , 2015 and 2014 were $233.3 million , $191.6 million and $113.7 million , respectively. The 2016 , 2015 and 2014 amounts include refunds of $30.5 million , $31.0 million and $47.1 million , respectively, primarily related to prior year overpayments and closing of tax audits. The reconciliation of the U.S. federal statutory income tax provision to the income tax provision on continuing operations is as follows: (Millions of Dollars) 2016 2015 2014 Tax at statutory rate $ 429.1 $ 402.9 $ 379.7 State income taxes, net of federal benefits 12.5 14.9 24.3 Difference between foreign and federal income tax (158.5 ) (166.9 ) (178.0 ) Tax reserve accrual 32.0 43.9 1.1 Audit settlements (10.5 ) 1.3 (5.3 ) NOL/capital loss & valuation allowance related items 31.1 (21.6 ) 2.7 Foreign dividends and related items 13.7 19.1 25.6 Change in deferred tax liabilities on undistributed foreign earnings (38.7 ) (31.0 ) (6.0 ) Statutory income tax rate change 1.7 4.8 (0.6 ) Basis difference for businesses Held for Sale (27.9 ) — — Other-net (23.3 ) (18.8 ) (16.4 ) Income taxes on continuing operations $ 261.2 $ 248.6 $ 227.1 The components of earnings from continuing operations before income taxes consisted of the following: (Millions of Dollars) 2016 2015 2014 United States $ 305.9 $ 405.5 $ 234.4 Foreign 920.2 745.3 850.4 Earnings from continuing operations before income taxes $ 1,226.1 $ 1,150.8 $ 1,084.8 Except for certain legacy Black & Decker foreign earnings, as described below, all remaining undistributed foreign earnings of the Company at December 31, 2016 , in the amount of approximately $4.867 billion , are considered to be invested indefinitely or will be remitted substantially free of additional tax. Accordingly, no provision has been made for tax that might be payable upon remittance of such earnings, nor is it practicable to determine the amount of this liability. As of December 31, 2016 , the amount of earnings subject to repatriation is $1.229 billion for which a deferred tax liability of $260.7 million exists. The Company’s liabilities for unrecognized tax benefits relate to U.S. and various foreign jurisdictions. The following table summarizes the activity related to the unrecognized tax benefits: (Millions of Dollars) 2016 2015 2014 Balance at beginning of year $ 283.1 $ 280.8 $ 269.5 Additions based on tax positions related to current year 14.9 23.2 27.4 Additions based on tax positions related to prior years 53.9 24.3 40.1 Reductions based on tax positions related to prior years (34.2 ) (14.3 ) (30.9 ) Settlements 5.4 (21.5 ) (5.9 ) Statute of limitations expirations (13.3 ) (9.4 ) (19.4 ) Balance at end of year $ 309.8 $ 283.1 $ 280.8 The gross unrecognized tax benefits at December 31, 2016 and January 2, 2016 includes $291.1 million and $262.2 million , respectively, of tax benefits that, if recognized, would impact the effective tax rate. The liability for potential penalties and interest related to unrecognized tax benefits was increased by $4.6 million in 2016 , decreased by $0.1 million in 2015 and increased by $22.0 million in 2014 . The liability for potential penalties and interest totaled $64.1 million as of December 31, 2016 , $59.5 million as of January 2, 2016 , and $59.6 million as of January 3, 2015 . The Company classifies all tax-related interest and penalties as income tax expense. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits or final decisions in transfer pricing matters. The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. Tax years 2008 and 2009 have been settled with the Internal Revenue Service as of December 23, 2014 and tax years 2010, 2011, and 2012 are currently under audit. The Company also files many state and foreign income tax returns in jurisdictions with varying statutes of limitations. Tax years 2012 and forward generally remain subject to examination by most state tax authorities. In significant foreign jurisdictions, tax years 2010 and forward generally remain subject to examination. |
COMMITMENTS AND GUARANTEES
COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND GUARANTEES | COMMITMENTS AND GUARANTEES COMMITMENTS — The Company has non-cancelable operating lease agreements, principally related to facilities, vehicles, machinery and equipment. Minimum payments have not been reduced by minimum sublease rentals of $5.4 million due in the future under non-cancelable subleases. Rental expense, exclusive of sublease income, for operating leases was $124.2 million in 2016 , $121.5 million in 2015 , and $135.9 million in 2014 . The following is a summary of the Company’s future commitments which span more than one future fiscal year: (Millions of Dollars) Total 2017 2018 2019 2020 2021 Thereafter Operating lease obligations $ 404.5 $ 94.5 $ 78.2 $ 62.4 $ 46.9 $ 35.0 $ 87.5 Marketing commitments 69.7 33.3 20.7 15.7 — — — Total $ 474.2 $ 127.8 $ 98.9 $ 78.1 $ 46.9 $ 35.0 $ 87.5 The Company has numerous assets, predominantly real estate, vehicles and equipment, under various lease arrangements. The Company routinely exercises various lease renewal options and from time to time purchases leased assets for fair value at the end of lease terms. The Company is a party to synthetic leases for one of its major distribution centers and two of its office buildings. The programs qualify as operating leases for accounting purposes, where only the monthly lease cost is recorded in earnings and the liability and value of the underlying assets are off-balance sheet. As of December 31, 2016 , the estimated fair value of assets and remaining obligation for the properties were $67.2 million and $58.4 million , respectively. GUARANTEES — The Company's financial guarantees at December 31, 2016 are as follows: (Millions of Dollars) Term Maximum Potential Payment Carrying Amount of Liability Guarantees on the residual values of leased properties One to four years $ 58.4 $ — Standby letters of credit Up to three years 71.1 — Commercial customer financing arrangements Up to six years 70.5 22.1 Total $ 200.0 $ 22.1 The Company has guaranteed a portion of the residual value arising from its previously mentioned synthetic leases. The lease guarantees aggregate $58.4 million while the fair value of the underlying assets is estimated at $67.2 million . The related assets would be available to satisfy the guarantee obligations and therefore it is unlikely the Company will incur any future loss associated with these lease guarantees. The Company has issued $71.1 million in standby letters of credit that guarantee future payments which may be required under certain insurance programs. The Company provides various limited and full recourse guarantees to financial institutions that provide financing to U.S. and Canadian Mac Tool distributors and franchisees for their initial purchase of the inventory and truck necessary to function as a distributor and franchisee. In addition, the Company provides limited and full recourse guarantees to financial institutions that extend credit to certain end retail customers of its U.S. Mac Tool distributors and franchisees. The gross amount guaranteed in these arrangements is $70.5 million and the $22.1 million carrying value of the guarantees issued is recorded in debt and other liabilities as appropriate in the Consolidated Balance Sheets. The Company provides product and service warranties which vary across its businesses. The types of warranties offered generally range from one year to limited lifetime, while certain products carry no warranty. Further, the Company sometimes incurs discretionary costs to service its products in connection with product performance issues. Historical warranty and service claim experience forms the basis for warranty obligations recognized. Adjustments are recorded to the warranty liability as new information becomes available. Following is a summary of the warranty liability activity for the years ended December 31, 2016 , January 2, 2016 , and January 3, 2015 : (Millions of Dollars) 2016 2015 2014 Balance beginning of period $ 105.4 $ 109.6 $ 121.1 Warranties and guarantees issued 97.2 91.8 98.0 Warranty payments and currency (99.2 ) (96.0 ) (109.5 ) Balance end of period $ 103.4 $ 105.4 $ 109.6 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is involved in various legal proceedings relating to environmental issues, employment, product liability, workers’ compensation claims and other matters. The Company periodically reviews the status of these proceedings with both inside and outside counsel, as well as an actuary for risk insurance. Management believes that the ultimate disposition of these matters will not have a material adverse effect on operations or financial condition taken as a whole. In connection with the 2010 merger with Black & Decker, the Company assumed certain commitments and contingent liabilities. Black & Decker is a party to litigation and administrative proceedings with respect to claims involving the discharge of hazardous substances into the environment. Some of these assert claims for damages and liability for remedial investigations and clean-up costs with respect to sites that have never been owned or operated by Black & Decker but at which Black & Decker has been identified as a potentially responsible party ("PRP"). Other matters involve current and former manufacturing facilities. The Environmental Protection Agency (“EPA”) has asserted claims in federal court in Rhode Island against certain current and former affiliates of Black & Decker related to environmental contamination found at the Centredale Manor Restoration Project Superfund ("Centredale") site, located in North Providence, Rhode Island. The EPA has discovered a variety of contaminants at the site, including but not limited to, dioxins, polychlorinated biphenyls, and pesticides. The EPA alleges that Black & Decker and certain of its current and former affiliates are liable for site clean-up costs under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as successors to the liability of Metro-Atlantic, Inc., a former operator at the site, and demanded reimbursement of the EPA’s costs related to this site. Black & Decker and certain of its current and former affiliates contest the EPA's allegation that they are responsible for the contamination, and have asserted contribution claims, counterclaims and cross-claims against a number of other PRPs, including the federal government as well as insurance carriers. The EPA released its Record of Decision ("ROD") in September 2012, which identified and described the EPA's selected remedial alternative for the site. Black & Decker and certain of its current and former affiliates are contesting the EPA's selection of the remedial alternative set forth in the ROD, on the grounds that the EPA's actions were arbitrary and capricious and otherwise not in accordance with law, and have proposed other equally-protective, more cost-effective alternatives. On June 10, 2014, the EPA issued an Administrative Order under Sec. 106 of CERCLA, instructing Emhart Industries, Inc. and Black & Decker to perform the remediation of Centredale pursuant to the ROD. Black & Decker and Emhart Industries, Inc. dispute the factual, legal and scientific bases cited by the EPA for such an Order and have provided the EPA with numerous good-faith bases for Black & Decker’s and Emhart Industries, Inc.’s declination to comply with the Order at this time. Black & Decker and Emhart Industries, Inc. continue to vigorously litigate the issue of their liability for environmental conditions at the Centredale site, including the completion of the Phase 1 trial in late July, 2015. The Court in this initial phase of trial found that dioxin contamination at the Centredale site was not “divisible”, and that Emhart was jointly and severally liable for dioxin contamination at the Site. The next two phases of trial will address whether the EPA’s proposed remedy for the Site is “arbitrary and capricious”, and if necessary, the allocation of liability to other parties who may have contributed to contamination of the Site with dioxins, PCB’s and other contaminants of concern. The second phase of the trial addressing the remedy and certain other issues commenced on September 26, 2016 and is currently scheduled to continue with subsequent briefing and argument through April 2017. The Company's estimated remediation costs related to the Centredale site (including the EPA’s past costs as well as costs of additional investigation, remediation, and related costs such as EPA’s oversight costs, less escrowed funds contributed by primary PRPs who have reached settlement agreements with the EPA), which the Company considers to be probable and reasonably estimable, range from approximately $68.1 million to $139.7 million , with no amount within that range representing a more likely outcome until such time as the litigation is resolved through judgment or compromise. The Company’s reserve for this environmental remediation matter of $68.1 million reflects the fact that the EPA considers Metro-Atlantic, Inc. to be a primary source of contamination at the site. As the specific nature of the environmental remediation activities that may be mandated by the EPA at this site have not yet been finally determined through the on-going litigation, the ultimate remedial costs associated with the site may vary from the amount accrued by the Company at December 31, 2016 . In the normal course of business, the Company is involved in various lawsuits and claims. In addition, the Company is a party to a number of proceedings before federal and state regulatory agencies relating to environmental remediation. Also, the Company, along with many other companies, has been named as a PRP in a number of administrative proceedings for the remediation of various waste sites, including 31 active Superfund sites. Current laws potentially impose joint and several liabilities upon each PRP. In assessing its potential liability at these sites, the Company has considered the following: whether responsibility is being disputed, the terms of existing agreements, experience at similar sites, and the Company’s volumetric contribution at these sites. The Company’s policy is to accrue environmental investigatory and remediation costs for identified sites when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. The amount of liability recorded is based on an evaluation of currently available facts with respect to each individual site and includes such factors as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. The liabilities recorded do not take into account any claims for recoveries from insurance or third parties. As assessments and remediation progress at individual sites, the amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. As of December 31, 2016 and January 2, 2016 , the Company had reserves of $160.9 million and $170.7 million , respectively, for remediation activities associated with Company-owned properties, as well as for Superfund sites, for losses that are probable and estimable. Of the 2016 amount, $18.9 million is classified as current and $142.0 million as long-term which is expected to be paid over the estimated remediation period. As of December 31, 2016 , the Company has recorded $13.2 million in other assets related to funding received by the EPA and placed in a trust in accordance with the final settlement with the EPA, embodied in a Consent Decree approved by the United States District Court for the Central District of California on July 3, 2013. Per the Consent Decree, Emhart Industries, Inc. (a dissolved, former indirectly wholly-owned subsidiary of The Black & Decker Corporation) (“Emhart”) has agreed to be responsible for an interim remedy at a site located in Rialto, California and formerly operated by West Coast Loading Corporation (“WCLC”), a defunct company for which Emhart was alleged to be liable as a successor. The remedy will be funded by (i) the amounts received from the EPA as gathered from multiple parties, and, to the extent necessary, (ii) Emhart's affiliate. The interim remedy requires the construction of a water treatment facility and the filtering of ground water at or around the site for a period of approximately 30 years or more. Accordingly, as of December 31, 2016 , the Company's cash obligation associated with the aforementioned remediation activities including WCLC is $147.7 million . The range of environmental remediation costs that is reasonably possible is $128.3 million to $267.1 million which is subject to change in the near term. The Company may be liable for environmental remediation of sites it no longer owns. Liabilities have been recorded on those sites in accordance with policy. The Company and approximately 60 other companies comprise the Lower Passaic Cooperating Parties Group (the “CPG”). The CPG members and other companies are parties to a May 2007 Administrative Settlement Agreement and Order on Consent (“AOC”) with the EPA to perform a remedial investigation/feasibility study (“RI/FS”) of the lower seventeen miles of the Lower Passaic River in New Jersey (the “River”). The Company’s potential liability stems from former operations in Newark, New Jersey. As an interim step related to the 2007 AOC, on June 18, 2012, the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a Record of Decision selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River. There has been no determination as to how the RI/FS will be modified in light of the EPA’s decision to implement a final action for the lower 8.3 miles of the River. At this time, the Company cannot reasonably estimate its liability related to the remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the RI/FS is ongoing, the ultimate remedial approach and associated cost for the upper portion of the River has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. On September 30, 2016, Occidental Chemical Corporation entered into an agreement with EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the river. The environmental liability for certain sites that have cash payments beyond the current year that are fixed or reliably determinable have been discounted using a rate of 0.3% to 3.0% , depending on the expected timing of disbursements. The discounted and undiscounted amount of the liability relative to these sites is $48.6 million and $58.5 million , respectively. The payments relative to these sites are expected to be $6.7 million in 2017 , $5.6 million in 2018 , $3.0 million in 2019 , $3.0 million in 2020 , $3.0 million in 2021 , and $37.2 million thereafter. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. Subject to the imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in connection with these matters in excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | uring the fourth quarter of 2016, the Company announced the sale of the majority of its mechanical security businesses within the Security segment to Dormakaba for $725 million . This pending divestiture includes the commercial hardware brands of Best Access, phi Precision and GMT. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions including regulatory approvals. In addition, the Company sold a small business within the Tools & Storage segment in January 2017 for approximately $25 million . Neither of these disposals qualify as discontinued operations and therefore, are included in the Company's continuing operations for all periods presented. Pre-tax income for these businesses totaled $43.9 million , $28.0 million and $31.6 million , respectively, for the years ended December 31, 2016, January 2, 2016 and January 3, 2015. The assets and liabilities of these businesses that are expected to be included in the sale are classified as held for sale as of December 31, 2016 on the Company's Consolidated Balance Sheets and totaled $523.4 million and $53.5 million , respectively. There were no assets or liabilities held for sale as of January 2, 2016 . The carrying amounts of the assets and liabilities that were classified as held for sale as of December 31, 2016 are presented in the following table: (Millions of Dollars) 2016 Accounts and notes receivable, net $ 35.3 Inventories, net 33.2 Property, Plant and Equipment, net 52.3 Goodwill and other intangibles, net 399.8 Other Assets 2.8 Total assets $ 523.4 Accounts payable and accrued expenses $ 38.0 Other liabilities 15.5 Total liabilities $ 53.5 Disposals Prior to Adoption of ASU 2014-08 In the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations (“Security Spain and Italy”) as held for sale based on management's intention to sell these businesses. As a result of this decision, the Company recorded a pre-tax impairment loss of $60.7 million in 2014 to remeasure the disposal group at estimated fair value less costs to sell. In July 2015, the Company completed the sale of these businesses resulting in an insignificant incremental loss. Security Spain and Italy operations have been reported as discontinued operations in the Company's Consolidated Financial Statements for the years ended January 2, 2016 and January 3, 2015, as follows: (Millions of Dollars) 2015 2014 Net Sales $ 39.4 $ 118.4 Loss from discontinued operations before income taxes (19.3 ) (104.0 ) Income tax expense (benefit) on discontinued operations 0.8 (7.7 ) Net loss from discontinued operations $ (20.1 ) $ (96.3 ) |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (unaudited) Quarter (Millions of Dollars, except per share amounts) First Second Third Fourth Year 2016 Net sales $ 2,672.1 $ 2,932.4 $ 2,882.0 $ 2,920.4 $ 11,406.9 Gross profit 977.6 1,128.9 1,084.1 1,076.6 4,267.2 Selling, general and administrative expenses 627.8 666.9 645.4 683.8 2,623.9 Net earnings from continuing operations 188.6 271.5 249.0 255.8 964.9 Less: Net (loss) earnings attributable to non-controlling interest (0.8 ) — 0.1 0.3 (0.4 ) Net earnings from continuing operations attributable to Stanley Black & Decker, Inc. 189.4 271.5 248.9 255.5 965.3 Net loss from discontinued operations — — — — — Net earnings attributable to Stanley Black & Decker, Inc. $ 189.4 $ 271.5 $ 248.9 $ 255.5 $ 965.3 Basic earnings per common share: Continuing operations $ 1.30 $ 1.87 $ 1.71 $ 1.74 $ 6.61 Discontinued operations — — — — — Total basic earnings per common share $ 1.30 $ 1.87 $ 1.71 $ 1.74 $ 6.61 Diluted earnings per common share: Continuing operations $ 1.28 $ 1.84 $ 1.68 $ 1.71 $ 6.51 Discontinued operations — — — — — Total diluted earnings per common share $ 1.28 $ 1.84 $ 1.68 $ 1.71 $ 6.51 2015 Net sales $ 2,630.0 $ 2,866.9 $ 2,829.5 $ 2,845.4 $ 11,171.8 Gross profit 973.6 1,057.2 1,027.0 1,014.2 4,072.0 Selling, general and administrative expenses 623.0 644.5 608.3 610.6 2,486.4 Net earnings from continuing operations 166.0 235.5 233.4 267.3 902.2 Less: Net (loss) earnings attributable to non-controlling interest (0.8 ) (0.2 ) (0.7 ) 0.1 (1.6 ) Net earnings from continuing operations attributable to Stanley Black & Decker, Inc. 166.8 235.7 234.1 267.2 903.8 Net loss from discontinued operations (4.5 ) (8.5 ) (5.4 ) (1.7 ) (20.1 ) Net earnings attributable to Stanley Black & Decker, Inc. $ 162.3 $ 227.2 $ 228.7 $ 265.5 $ 883.7 Basic earnings (loss) per common share: Continuing operations $ 1.10 $ 1.59 $ 1.60 $ 1.83 $ 6.10 Discontinued operations (0.03 ) (0.06 ) (0.04 ) (0.01 ) (0.14 ) Total basic earnings per common share $ 1.07 $ 1.53 $ 1.57 $ 1.82 $ 5.96 Diluted earnings (loss) per common share: Continuing operations $ 1.07 $ 1.54 $ 1.55 $ 1.78 $ 5.92 Discontinued operations (0.03 ) (0.06 ) (0.04 ) (0.01 ) (0.13 ) Total diluted earnings per common share $ 1.04 $ 1.49 $ 1.52 $ 1.77 $ 5.79 |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in the fiscal year 2016 , 52 weeks in the fiscal year 2015 and 53 weeks in the fiscal year 2014 . During the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. The Company recast segment net sales and profit for all years presented to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. In December 2016, the Company announced the sale of the majority of its mechanical security businesses within the Security segment to Dormakaba for $725 million in cash. This pending divestiture includes the commercial hardware brands of Best Access, phi Precision and GMT, and is expected to close in the first quarter of 2017. In addition, the Company sold a small business within the Tools & Storage segment in January 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements. In addition, the assets and liabilities expected to be included in these sales have been classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion. During the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations as held for sale based on management's intention to sell these businesses. In July 2015, the Company completed the sale of these businesses. In 2014, the Company sold two small businesses within the Security and Industrial segments. |
FOREIGN CURRENCY | FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. |
CASH EQUIVALENTS | CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. |
ACCOUNTS AND FINANCING RECEIVABLE | ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. Financing receivables are initially recorded at fair value, less impairments or provisions for credit losses. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts using two methods. First, a specific reserve is established for individual accounts where information indicates the customers may have an inability to meet financial obligations. Second, a reserve is determined for all customers based on a range of percentages applied to aging categories. These percentages are based on historical collection and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. |
INVENTORIES | INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost or market because LIFO is not permitted for statutory reporting outside the U.S. See Note C, Inventories , for a quantification of the LIFO impact on inventory valuation. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows: Useful Life (Years) Land improvements 10 —20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 5 Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by ASU 2011-08, "Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment," or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For the qualitative assessments, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2016, 2015 or 201 |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS — Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. The Company recognizes all derivative instruments, such as interest rate swap agreements, foreign currency options, commodity contracts and foreign exchange contracts, in the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are effective, are recorded in other comprehensive income (loss), and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income would generally be recognized in earnings. Changes in the fair value of derivatives used as hedges of the net investment in foreign operations, to the extent they are effective, are reported in other comprehensive income (loss) and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under ASC 815, “Derivatives and Hedging”, including any portion that is considered ineffective, are reported in earnings in the same caption where the hedged items are recognized. Changes in the fair value of derivatives not designated as hedges under ASC 815 are reported in earnings in Other-net. Refer to Note I, Derivative Financial Instruments, for further discussion. The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap. |
REVENUE RECOGNITION | REVENUE RECOGNITION — General: The majority of the Company’s revenues result from the sale of tangible products, where revenue is recognized when the earnings process is complete, collectability is reasonably assured, and the risks and rewards of ownership have transferred to the customer, which generally occurs upon shipment of the finished product, but sometimes is upon delivery to customer facilities. Provisions for customer volume rebates, product returns, discounts and allowances are recorded as a reduction of revenue in the same period the related sales are recorded. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is an identifiable benefit and evidence of the fair value of the advertising, in which case the expense is classified as Selling, general, and administrative expense. Multiple Element Arrangements: Approximately eight percent of the Company’s revenues are generated from multiple element arrangements, primarily in the Security segment. When a sales agreement involves multiple elements, deliverables are separately identified and consideration is allocated based on their relative selling price in accordance with ASC 605-25, “Revenue Recognition — Multiple-Element Arrangements.” Sales of security monitoring systems may have multiple elements, including equipment, installation and monitoring services. For these arrangements, the Company assesses its revenue arrangements to determine the appropriate units of accounting, with each deliverable provided under the arrangement considered a separate unit of accounting. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring services. The Company’s contract sales for the installation of security intruder systems and other construction-related projects are recorded under the percentage-of-completion method. Profits recognized on security contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. For certain short duration and less complex installation contracts, revenue is recognized upon contract completion and customer acceptance. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities on the Consolidated Balance Sheets, as appropriate. |
COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE | COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of inbound freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. SG&A costs include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. |
ADVERTISING COSTS | ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $124.1 million in 2016 , $101.7 million in 2015 , and $121.5 million in 2014 . Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $232.5 million in 2016 , $211.9 million in 2015 , and $206.5 million in 2014 . Cooperative advertising with customers classified as SG&A expense amounted to $6.6 million in 2016 , $6.4 million in 2015 , and $6.2 million in 2014 . |
SALES TAXES | SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. |
SHIPPING AND HANDLING COSTS | SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound freight are reported in Cost of sales. Shipping costs associated with outbound freight are reported as a reduction of Net Sales and amounted to $184.0 million , $183.0 million , and $226.2 million in 2016 , 2015 , and 2014 , respectively. Distribution costs are classified as SG&A and amounted to $235.6 million , $229.3 million and $243.2 million in 2016 , 2015 and 2014 , respectively. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. |
POSTRETIREMENT DEFINED BENEFIT PLAN | POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. |
INCOME TAXES | INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, "Income Taxes", which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carry forwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes on continuing operations in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. |
EARNINGS PER SHARE | EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to Stanley Black & Decker, Inc., less earnings allocated to restricted stock units with non-forfeitable dividend rights (if applicable), divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Depreciation and Amortization, Estimated Useful Lives of Assets | Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows: Useful Life (Years) Land improvements 10 —20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 5 |
ACCOUNTS AND NOTES RECEIVABLE (
ACCOUNTS AND NOTES RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS AND FINANCING RECEIVABLE | (Millions of Dollars) 2016 2015 Trade accounts receivable $ 1,137.2 $ 1,165.0 Trade notes receivable 140.1 130.6 Other accounts receivable 103.0 109.1 Gross accounts and notes receivable 1,380.3 1,404.7 Allowance for doubtful accounts (77.5 ) (72.9 ) Accounts and notes receivable, net $ 1,302.8 $ 1,331.8 Long-term trade notes receivable, net $ 180.9 $ 182.1 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | (Millions of Dollars) 2016 2015 Finished products $ 1,044.2 $ 1,085.0 Work in process 133.3 136.1 Raw materials 300.5 305.3 Total $ 1,478.0 $ 1,526.4 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (Millions of Dollars) 2016 2015 Land $ 107.3 $ 129.2 Land improvements 37.0 36.0 Buildings 519.3 525.3 Leasehold improvements 114.2 98.9 Machinery and equipment 2,008.5 1,979.9 Computer software 373.9 397.5 Property, plant & equipment, gross $ 3,160.2 $ 3,166.8 Less: accumulated depreciation and amortization (1,709.0 ) (1,716.6 ) Property, plant & equipment, net $ 1,451.2 $ 1,450.2 |
Depreciation and Amortization Expense Associated with Property, Plant and Equipment | Depreciation and amortization expense associated with property, plant and equipment was as follows: (Millions of Dollars) 2016 2015 2014 Depreciation $ 221.8 $ 219.2 $ 229.5 Amortization 41.8 37.7 33.9 Depreciation and amortization expense $ 263.6 $ 256.9 $ 263.4 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill by Segment | GOODWILL — The changes in the carrying amount of goodwill by segment are as follows: (Millions of Dollars) Tools & Storage Security Industrial Total Balance January 2, 2016 $ 3,343.4 $ 2,317.2 $ 1,423.7 $ 7,084.3 Reclassification to Assets held for sale (5.7 ) (297.1 ) — (302.8 ) Acquisitions 3.0 21.6 — 24.6 Foreign currency translation and other (92.9 ) (34.7 ) 15.5 (112.1 ) Balance December 31, 2016 $ 3,247.8 $ 2,007.0 $ 1,439.2 $ 6,694.0 |
Intangible Assets | INTANGIBLE ASSETS — Intangible assets at December 31, 2016 and January 2, 2016 were as follows: 2016 2015 (Millions of Dollars) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized Intangible Assets — Definite lives Patents and copyrights $ 40.7 $ (36.5 ) $ 50.6 $ (44.2 ) Trade names 152.0 (100.4 ) 164.8 (100.8 ) Customer relationships 1,614.6 (978.9 ) 1,774.2 (995.5 ) Other intangible assets 258.2 (158.7 ) 263.3 (148.7 ) Total $ 2,065.5 $ (1,274.5 ) $ 2,252.9 $ (1,289.2 ) |
Aggregate Intangible Assets Amortization Expense by Segment | Aggregate intangible assets amortization expense by segment was as follows: (Millions of Dollars) 2016 2015 2014 Tools & Storage $ 36.8 $ 39.0 $ 40.7 Security 57.8 61.3 78.8 Industrial 49.8 56.8 66.9 Consolidated $ 144.4 $ 157.1 $ 186.4 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses at December 31, 2016 and January 2, 2016 were as follows: (Millions of Dollars) 2016 2015 Payroll and related taxes $ 268.0 $ 271.8 Income and other taxes 117.6 157.6 Customer rebates and sales returns 68.2 66.5 Insurance and benefits 87.4 71.8 Accrued restructuring costs 35.6 58.7 Derivative financial instruments 49.8 49.8 Warranty costs 68.8 67.8 Deferred revenue 81.9 89.2 Forward share purchase contract — 150.0 Other 324.2 278.7 Total $ 1,101.5 $ 1,261.9 |
LONG-TERM DEBT AND FINANCING 38
LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | Long-term debt and financing arrangements at December 31, 2016 and January 2, 2016 follow: December 31, 2016 January 2, 2016 (Millions of Dollars) Interest Rate Original Notional Unamortized Discount Unamortized Gain/(Loss) Terminated Swaps (1) Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2018 (2) 2.45% $ 632.5 $ — $ — $ — $ (3.3 ) $ 629.2 $ 627.5 Notes payable due 2018 (2) 345.0 — — — (1.9 ) 343.1 343.8 Notes payable 2021 3.40% 400.0 (0.2 ) 17.1 — (1.7 ) 415.2 405.9 Notes payable due 2022 2.90% 754.3 (0.3 ) — — (3.7 ) 750.3 749.6 Notes payable due 2028 7.05% 150.0 — 12.5 12.2 — 174.7 167.0 Notes payable due 2040 5.20% 400.0 (0.2 ) (34.9 ) — (3.2 ) 361.7 360.1 Notes payable due 2052 (junior subordinated) 5.75% 750.0 — — — (19.6 ) 730.4 729.9 Notes payable due 2053 (junior subordinated) 5.75% 400.0 — 4.8 — (8.3 ) 396.5 394.2 Other, payable in varying amounts through 2022 0.00% - 2.27% 22.0 — — — — 22.0 19.2 Total long-term debt, including current maturities $ 3,853.8 $ (0.7 ) $ (0.5 ) $ 12.2 $ (41.7 ) $ 3,823.1 $ 3,797.2 Less: Current maturities of long-term debt (7.8 ) (5.1 ) Long-term debt $ 3,815.3 $ 3,792.1 |
DERIVATIVE FINANCIAL INSTRUME39
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivatives | A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 31, 2016 and January 2, 2016 follows: (Millions of Dollars) Balance Sheet Classification 2016 2015 Balance Sheet Classification 2016 2015 Derivatives designated as hedging instruments: Interest Rate Contracts Cash Flow LT other assets $ — $ — LT other liabilities $ 47.3 $ 41.1 Interest Rate Contracts Fair Value Other current assets — 14.9 Accrued expenses — 2.5 LT other assets — 1.4 LT other liabilities — 5.2 Foreign Exchange Contracts Cash Flow Other current assets 37.6 21.9 Accrued expenses 1.6 1.8 LT other assets — 3.7 LT other liabilities — — Net Investment Hedge Other current assets 44.1 30.3 Accrued expenses 1.8 4.8 LT other assets — — LT other liabilities 0.5 — $ 81.7 $ 72.2 $ 51.2 $ 55.4 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 28.5 $ 7.1 Accrued expenses $ 46.4 $ 40.7 $ 28.5 $ 7.1 $ 46.4 $ 40.7 |
Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income into Earnings for Active Derivative Financial Instruments | The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for the twelve months ended December 31, 2016 and January 2, 2016 (in millions): Year-to-date 2016 (Loss) Gain 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 $ (6.2 ) Interest Expense $ — $ — Foreign Exchange Contracts $ 19.3 Cost of sales $ 21.7 $ — Year-to-date 2015 (Loss) Gain 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 $ (6.8 ) Interest Expense $ — $ — Foreign Exchange Contracts $ 52.5 Cost of sales $ 57.4 $ — * Includes ineffective portion and amount excluded from effectiveness testing on derivatives. |
Fair Value Adjustments Relating to Swaps | A summary of the fair value adjustments relating to these swaps is as follows (in millions): Year-to-Date 2016 Year-to-Date 2015 Income Statement Classification Gain/(Loss) on Swaps* Gain /(Loss) on Borrowings Gain/(Loss) on Swaps* Gain /(Loss) on Borrowings Interest Expense $ (3.3 ) $ 3.8 $ 11.8 $ (11.8 ) |
Details of Pre-Tax Amounts of Gains and Losses on Net Investment Hedges | The pre-tax gain or loss from fair value changes was as follows (in millions): Year-to-Date 2016 Year-to-Date 2015 Income Statement Classification Amount Recorded in OCI Gain (Loss) Effective Portion Recorded in Income Statement Ineffective Portion* Recorded in Income Statement Amount Recorded in OCI Gain (Loss) Effective Portion Recorded in Income Statement Ineffective Portion* Recorded in Income Statement Other-net $ 117.8 $ — $ — $ 75.5 $ — $ — *Includes ineffective portion and amount excluded from effectiveness testing. |
Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The income statement impacts related to derivatives not designated as hedging instruments for 2016 and 2015 are as follows (in millions): Derivatives Not Designated as Hedging Instruments under ASC 815 Income Statement Classification Year-to-Date 2016 Year-to-Date 2015 Foreign Exchange Contracts Other-net $ (21.1 ) $ (8.9 ) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings Per Share | The following table reconciles net earnings attributable to common shareowners and the weighted average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 31, 2016 , January 2, 2016 , and January 3, 2015 . Earnings per Share Computation: 2016 2015 2014 Numerator (in millions): Net earnings from continuing operations attributable to common shareowners $ 965.3 $ 903.8 $ 857.2 Net loss from discontinued operations — (20.1 ) (96.3 ) Net earnings attributable to common shareowners $ 965.3 $ 883.7 $ 760.9 2016 2015 2014 Denominator (in thousands): Basic earnings per share –– weighted-average shares 146,041 148,234 156,090 Dilutive effect of stock options and awards 2,166 4,472 3,647 Diluted earnings per share –– weighted-average shares 148,207 152,706 159,737 2016 2015 2014 Earnings (loss) per share of common stock: Basic earnings (loss) per share of common stock: Continuing operations $ 6.61 $ 6.10 $ 5.49 Discontinued operations — (0.14 ) (0.62 ) Total basic earnings per share of common stock $ 6.61 $ 5.96 $ 4.87 Diluted earnings (loss) per share of common stock: Continuing operations $ 6.51 $ 5.92 $ 5.37 Discontinued operations — (0.13 ) (0.60 ) Total dilutive earnings per share of common stock $ 6.51 $ 5.79 $ 4.76 |
Weighted-Average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding | The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands): 2016 2015 2014 Number of stock options 734 646 634 |
Common Stock Share Activity | Common stock activity for 2016 , 2015 and 2014 was as follows: 2016 2015 2014 Outstanding, beginning of year 153,944,291 157,125,450 155,479,230 Issued from treasury 4,870,761 6,046,405 1,986,796 Returned to treasury (6,255,285 ) (9,227,564 ) (340,576 ) Outstanding, end of year 152,559,767 153,944,291 157,125,450 Shares subject to the forward share purchase contract (3,645,510 ) (5,249,332 ) (1,603,822 ) Outstanding, less shares subject to the forward share purchase contract 148,914,257 148,694,959 155,521,628 |
Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans | Common stock shares reserved for issuance under various employee and director stock plans at December 31, 2016 and January 2, 2016 are as follows: 2016 2015 Employee stock purchase plan 1,936,093 2,104,326 Other stock-based compensation plans 4,998,983 7,994,342 Total shares reserved 6,935,076 10,098,668 |
Weighted Average Assumptions that were Granted as Part of Merger | 2016 2015 2014 Average expected volatility 24.1 % 25.0 % 27.0 % Dividend yield 2.0 % 2.0 % 2.2 % Risk-free interest rate 2.0 % 1.9 % 1.8 % Expected term 5.3 years 5.3 years 5.3 years Fair value per option $ 23.41 $ 21.94 $ 19.98 Weighted average vesting period 2.4 years 2.8 years 2.8 years |
Number of Stock Options and Weighted-average Exercise Prices | The number of stock options and weighted-average exercise prices as of December 31, 2016 are as follows: Options Price Outstanding, beginning of year 6,042,839 $ 77.36 Granted 1,250,198 118.97 Exercised (718,275 ) 65.98 Forfeited (141,176 ) 95.15 Outstanding, end of year 6,433,586 $ 86.33 Exercisable, end of year 3,897,279 $ 71.21 |
Outstanding and Exercisable Stock Option | Outstanding and exercisable stock option information at December 31, 2016 follows: Outstanding Stock Options Exercisable Stock Options Exercise Price Ranges Options Weighted- average Remaining Contractual Life Weighted- average Exercise Price Options Weighted- Weighted- $35.00 and below 56,460 1.96 $ 33.00 56,460 1.96 $ 33.00 $35.01 — 50.00 93,799 2.75 48.65 93,799 2.75 48.65 $50.01 — higher 6,283,327 6.90 87.37 3,747,020 5.41 72.35 6,433,586 6.79 $ 86.33 3,897,279 5.30 $ 71.21 |
Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards | A summary of non-vested restricted stock unit and award activity as of December 31, 2016 , and changes during the twelve month period then ended is as follows: Restricted Share Units & Awards Weighted Average Grant Date Fair Value Non-vested at January 2, 2016 1,086,669 $ 88.19 Granted 445,155 118.20 Vested (315,766 ) 117.19 Forfeited (84,034 ) 103.95 Non-vested at December 31, 2016 1,132,024 $ 100.53 |
Restricted Share Units & Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards | A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: Share Units Weighted Average Grant Date Fair Value Non-vested at January 2, 2016 842,541 $ 78.83 Granted 261,081 86.56 Vested (162,136 ) 71.42 Forfeited (140,412 ) 72.11 Non-vested at December 31, 2016 801,074 $ 84.03 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Expense for Defined Contribution Plans | The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows: (Millions of Dollars) 2016 2015 2014 Multi-employer plan expense $ 5.1 $ 4.0 $ 4.0 Other defined contribution plan expense $ 15.4 $ 11.7 $ 14.0 |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2016 are as follows: (Millions of Dollars) 2016 Current year actuarial loss $ 122.1 Amortization of actuarial loss (13.0 ) Prior service credit from plan amendments (39.4 ) Amortization of prior service costs (4.3 ) Settlement / curtailment loss (0.8 ) Currency / other (31.1 ) Total increase recognized in accumulated other comprehensive loss (pre-tax) $ 33.5 |
Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets | Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2016 2015 Projected benefit obligation $ 1,359.0 $ 1,385.7 $ 1,359.0 $ 921.7 Accumulated benefit obligation $ 1,353.0 $ 1,383.9 $ 1,313.2 $ 879.4 Fair value of plan assets $ 1,067.1 $ 1,081.5 $ 1,014.4 $ 591.9 The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below. U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2016 2015 2016 2015 2016 2015 Change in benefit obligation Benefit obligation at end of prior year $ 1,385.7 $ 1,460.5 $ 1,374.2 $ 1,540.4 $ 61.0 $ 69.8 Service cost 9.4 7.0 12.5 14.4 0.6 0.5 Interest cost 45.3 54.0 37.0 46.8 1.7 2.1 Settlements/curtailments — — (5.7 ) (8.0 ) — — Actuarial loss (gain) 41.5 (45.8 ) 229.7 (86.7 ) (0.7 ) (2.1 ) Plan amendments 1.8 5.8 (40.4 ) 0.2 (0.8 ) — Foreign currency exchange rates — — (190.0 ) (76.2 ) 0.3 (1.5 ) Participant contributions — — 0.3 0.3 — — Expenses paid from assets and other (5.5 ) (3.4 ) (2.0 ) (1.3 ) — — Benefits paid (119.2 ) (92.4 ) (55.8 ) (55.7 ) (7.9 ) (7.8 ) Benefit obligation at end of year $ 1,359.0 $ 1,385.7 $ 1,359.8 $ 1,374.2 $ 54.2 $ 61.0 Change in plan assets Fair value of plan assets at end of prior year $ 1,081.5 $ 1,174.1 $ 1,047.3 $ 1,115.7 $ — $ — Actual return on plan assets 90.9 (19.3 ) 169.4 8.3 — — Participant contributions — — 0.3 0.3 — — Employer contributions 19.4 22.5 29.5 35.5 7.9 7.8 Settlements — — (5.5 ) (6.4 ) — — Foreign currency exchange rate changes — — (167.9 ) (48.2 ) — — Expenses paid from assets and other (5.5 ) (3.4 ) (2.0 ) (2.2 ) — — Benefits paid (119.2 ) (92.4 ) (55.8 ) (55.7 ) (7.9 ) (7.8 ) Fair value of plan assets at end of plan year $ 1,067.1 $ 1,081.5 $ 1,015.3 $ 1,047.3 $ — $ — Funded status — assets less than benefit obligation $ (291.9 ) $ (304.2 ) $ (344.5 ) $ (326.9 ) $ (54.2 ) $ (61.0 ) Unrecognized prior service cost (credit) 5.8 9.1 (35.0 ) 2.3 (6.2 ) (6.6 ) Unrecognized net actuarial loss 267.2 255.8 296.7 233.5 0.5 1.4 Unrecognized net transition obligation — — 0.1 0.1 — — Net amount recognized $ (18.9 ) $ (39.3 ) $ (82.7 ) $ (91.0 ) $ (59.9 ) $ (66.2 ) U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2016 2015 2016 2015 2016 2015 Amounts recognized in the Consolidated Balance Sheets Prepaid benefit cost (non-current) $ — $ — $ 0.2 $ 2.9 $ — $ — Current benefit liability (25.8 ) (11.0 ) (10.0 ) (7.9 ) (5.9 ) (6.7 ) Non-current benefit liability (266.1 ) (293.2 ) (334.7 ) (321.9 ) (48.3 ) (54.3 ) Net liability recognized $ (291.9 ) $ (304.2 ) $ (344.5 ) $ (326.9 ) $ (54.2 ) $ (61.0 ) Accumulated other comprehensive loss (pre-tax): Prior service cost (credit) $ 5.8 $ 9.1 $ (35.0 ) $ 2.3 $ (6.2 ) $ (6.6 ) Actuarial loss 267.2 255.8 296.7 233.5 0.5 1.4 Transition liability — — 0.1 0.1 — — $ 273.0 $ 264.9 $ 261.8 $ 235.9 $ (5.7 ) $ (5.2 ) Net amount recognized $ (18.9 ) $ (39.3 ) $ (82.7 ) $ (91.0 ) $ (59.9 ) $ (66.2 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for all defined benefit pension plans was $2,666.7 million at December 31, 2016 and $2,714.0 million at January 2, 2016 . Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2016 2015 Projected benefit obligation $ 1,359.0 $ 1,385.7 $ 1,334.1 $ 894.5 Accumulated benefit obligation $ 1,353.0 $ 1,383.9 $ 1,290.7 $ 855.5 Fair value of plan assets $ 1,067.1 $ 1,081.5 $ 990.5 $ 566.9 |
Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs | The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 4.00 % 4.25 % 3.75 % 2.50 % 3.25 % 3.25 % 3.50 % 3.75 % 3.25 % Rate of compensation increase 3.00 % 6.00 % 6.00 % 3.75 % 3.25 % 3.50 % 3.50 % 3.50 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 4.25 % 3.75 % 4.50 % 3.25 % 3.25 % 4.00 % 3.75 % 3.25 % 4.00 % Rate of compensation increase 6.00 % 6.00 % 6.00 % 3.25 % 3.50 % 3.75 % 3.50 % 3.50 % 3.50 % Expected return on plan assets 6.50 % 6.50 % 7.00 % 4.75 % 5.25 % 5.75 % — — — |
Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy | The Company’s worldwide asset allocations at December 31, 2016 and January 2, 2016 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows (in millions): Asset Category 2016 Level 1 Level 2 Cash and cash equivalents $ 50.8 $ 35.3 $ 15.5 Equity securities U.S. equity securities 303.8 100.7 203.1 Foreign equity securities 254.1 75.8 178.3 Fixed income securities Government securities 687.0 227.0 460.0 Corporate securities 687.9 687.9 Insurance contracts 35.0 35.0 Other 63.8 63.8 Total $ 2,082.4 $ 438.8 $ 1,643.6 Asset Category 2015 Level 1 Level 2 Cash and cash equivalents $ 58.1 $ 39.7 $ 18.4 Equity securities U.S. equity securities 296.3 50.4 245.9 Foreign equity securities 269.0 43.2 225.8 Fixed income securities Government securities 696.7 248.3 448.4 Corporate securities 716.9 — 716.9 Insurance contracts 33.2 — 33.2 Other 58.6 — 58.6 Total $ 2,128.8 $ 381.6 $ 1,747.2 |
Expected Future Benefit Payments | EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years : (Millions of Dollars) Total Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 Future payments $ 1,451.4 $ 187.9 $ 139.4 $ 137.3 $ 139.5 $ 141.6 $ 705.7 |
Pension Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Net Periodic Pension Expense | The components of net periodic pension (benefit) expense are as follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2016 2015 2014 2016 2015 2014 Service cost $ 9.4 $ 7.0 $ 8.9 $ 12.5 $ 14.4 $ 13.1 Interest cost 45.3 54.0 56.4 37.0 46.8 59.3 Expected return on plan assets (67.9 ) (74.9 ) (72.1 ) (44.5 ) (56.5 ) (61.0 ) Prior service cost amortization 5.2 1.8 1.1 0.3 0.9 0.3 Actuarial loss amortization 7.1 7.2 0.9 5.9 7.5 7.0 Settlement / curtailment loss — — — 0.7 1.5 0.3 Net periodic pension (benefit) expense $ (0.9 ) $ (4.9 ) $ (4.8 ) $ 11.9 $ 14.6 $ 19.0 |
Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Net Periodic Pension Expense | Approximately 13,300 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements: Other Benefit Plans (Millions of Dollars) 2016 2015 2014 Service cost $ 0.6 $ 0.5 $ 1.0 Interest cost 1.7 2.1 2.7 Prior service credit amortization (1.2 ) (1.3 ) (1.4 ) Actuarial loss amortization — — (0.1 ) Net periodic post-retirement expense $ 1.1 $ 1.3 $ 2.2 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels: (Millions of Dollars) Total Carrying Value Level 1 Level 2 December 31, 2016 Money market fund $ 4.3 $ 4.3 $ — Derivative assets $ 110.2 $ — $ 110.2 Derivative liabilities $ 97.6 $ — $ 97.6 January 2, 2016: Money market fund $ 7.0 $ 7.0 $ — Derivative assets $ 79.3 $ — $ 79.3 Derivative liabilities $ 96.1 $ — $ 96.1 |
Summary of Company's Financial Instruments Carrying and Fair Values | The following table presents the carrying values and fair values of the Company's financial assets and liabilities, as well as the Company's debt, as of December 31, 2016 and January 2, 2016 : December 31, 2016 January 2, 2016 (Millions of Dollars) Carrying Value Fair Value Carrying Value Fair Value Other investments $ 8.9 $ 9.2 $ 11.7 $ 11.7 Derivative assets $ 110.2 $ 110.2 $ 79.3 $ 79.3 Derivative liabilities $ 97.6 $ 97.6 $ 96.1 $ 96.1 Long-term debt, including current portion $ 3,823.1 $ 3,967.4 $ 3,797.2 $ 4,034.4 |
RESTRUCTURING AND ASSET IMPAI43
RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from January 2, 2016 to December 31, 2016 is as follows (in millions): 1/2/2016 Net Additions Usage Currency 12/31/2016 Severance and related costs $ 44.3 $ 27.3 $ (50.0 ) $ (0.2 ) $ 21.4 Facility closures and asset impairments 14.4 21.7 (21.0 ) (0.9 ) 14.2 Total $ 58.7 $ 49.0 $ (71.0 ) $ (1.1 ) $ 35.6 |
BUSINESS SEGMENTS AND GEOGRAP44
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS (Millions of Dollars) 2016 2015 2014 Net Sales Tools & Storage $ 7,469.2 $ 7,140.7 $ 7,033.0 Security 2,097.4 2,092.9 2,261.2 Industrial 1,840.3 1,938.2 2,044.4 Consolidated $ 11,406.9 $ 11,171.8 $ 11,338.6 Segment Profit Tools & Storage $ 1,266.9 $ 1,170.1 $ 1,074.4 Security 269.2 239.6 259.2 Industrial 304.4 339.9 350.6 Segment Profit 1,840.5 1,749.6 1,684.2 Corporate overhead (197.2 ) (164.0 ) (177.4 ) Other-net (196.9 ) (222.0 ) (239.6 ) Restructuring charges and asset impairments (49.0 ) (47.6 ) (18.8 ) Interest income 23.2 15.2 13.6 Interest expense (194.5 ) (180.4 ) (177.2 ) Earnings from continuing operations before income taxes $ 1,226.1 $ 1,150.8 $ 1,084.8 Capital and Software Expenditures Tools & Storage $ 227.3 $ 191.7 $ 183.0 Security 38.6 35.9 27.9 Industrial 81.1 83.8 74.3 Discontinued operations — — 5.8 Consolidated $ 347.0 $ 311.4 $ 291.0 Depreciation and Amortization Tools & Storage $ 203.0 $ 196.5 $ 193.9 Security 98.2 105.2 127.8 Industrial 106.8 112.3 122.5 Discontinued operations $ — $ — $ 5.6 Consolidated $ 408.0 $ 414.0 $ 449.8 Segment Assets Tools & Storage $ 8,512.4 $ 8,492.9 $ 8,568.2 Security 3,139.0 3,741.6 3,972.0 Industrial 3,359.0 3,438.7 3,501.8 15,010.4 15,673.2 16,042.0 Assets held for sale 523.4 — 29.5 Corporate assets 101.1 (545.4 ) (268.1 ) Consolidated $ 15,634.9 $ 15,127.8 $ 15,803.4 |
GEOGRAPHIC AREAS | GEOGRAPHIC AREAS (Millions of Dollars) 2016 2015 2014 Net Sales United States $ 6,135.6 $ 5,882.0 $ 5,492.4 Canada 515.3 516.3 591.3 Other Americas 635.6 706.5 788.4 France 582.7 595.7 695.6 Other Europe 2,468.6 2,371.5 2,585.3 Asia 1,069.1 1,099.8 1,185.6 Consolidated $ 11,406.9 $ 11,171.8 $ 11,338.6 Property, Plant & Equipment United States $ 663.4 $ 676.0 $ 639.7 Canada 29.3 19.1 20.9 Other Americas 95.8 82.6 82.2 France 57.5 64.8 74.7 Other Europe 322.3 328.4 333.2 Asia 282.9 279.3 303.4 Consolidated $ 1,451.2 $ 1,450.2 $ 1,454.1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows: (Millions of Dollars) 2016 2015 Deferred tax liabilities: Depreciation $ 108.7 $ 99.6 Amortization of intangibles 851.2 868.5 Liability on undistributed foreign earnings 260.7 319.9 Discharge of indebtedness 6.2 9.3 Inventories 6.2 — Deferred revenue 27.3 25.5 Other 61.7 66.8 Total deferred tax liabilities $ 1,322.0 $ 1,389.6 Deferred tax assets: Employee benefit plans $ 362.5 $ 361.1 Doubtful accounts and other customer allowances 19.3 19.0 Inventories — 16.1 Accruals 110.4 135.6 Restructuring charges 4.9 12.6 Operating loss, capital loss and tax credit carryforwards 590.3 562.5 Currency and derivatives 45.1 42.2 Other 126.7 82.7 Total deferred tax assets $ 1,259.2 $ 1,231.8 Net Deferred Tax Liabilities before Valuation Allowance $ 62.8 $ 157.8 Valuation allowance $ 525.5 $ 480.7 Net Deferred Tax Liabilities after Valuation Allowance $ 588.3 $ 638.5 |
Classification of Deferred Taxes | The classification of deferred taxes as of December 31, 2016 and January 2, 2016 is as follows: 2016 2015 (Millions of Dollars) Deferred Tax Asset Deferred Tax Liability Deferred Deferred Tax Liability Current $ — $ — $ (85.4 ) $ 18.5 Non-current (147.1 ) 735.4 (120.5 ) 825.9 Total $ (147.1 ) $ 735.4 $ (205.9 ) $ 844.4 |
Income Tax Expense (Benefit) Attributable to Continuing Operations | Income tax expense (benefit) attributable to continuing operations consisted of the following: (Millions of Dollars) 2016 2015 2014 Current: Federal $ 84.8 $ 64.4 $ 18.4 Foreign 191.5 171.4 141.1 State 10.6 14.1 17.1 Total current $ 286.9 $ 249.9 $ 176.6 Deferred: Federal $ 18.2 $ 64.2 $ 55.3 Foreign (26.1 ) (47.3 ) (19.3 ) State (17.8 ) (18.2 ) 14.5 Total deferred (25.7 ) (1.3 ) 50.5 Income taxes on continuing operations $ 261.2 $ 248.6 $ 227.1 |
Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations | The reconciliation of the U.S. federal statutory income tax provision to the income tax provision on continuing operations is as follows: (Millions of Dollars) 2016 2015 2014 Tax at statutory rate $ 429.1 $ 402.9 $ 379.7 State income taxes, net of federal benefits 12.5 14.9 24.3 Difference between foreign and federal income tax (158.5 ) (166.9 ) (178.0 ) Tax reserve accrual 32.0 43.9 1.1 Audit settlements (10.5 ) 1.3 (5.3 ) NOL/capital loss & valuation allowance related items 31.1 (21.6 ) 2.7 Foreign dividends and related items 13.7 19.1 25.6 Change in deferred tax liabilities on undistributed foreign earnings (38.7 ) (31.0 ) (6.0 ) Statutory income tax rate change 1.7 4.8 (0.6 ) Basis difference for businesses Held for Sale (27.9 ) — — Other-net (23.3 ) (18.8 ) (16.4 ) Income taxes on continuing operations $ 261.2 $ 248.6 $ 227.1 |
Components of Earnings from Continuing Operations Before Income Taxes | The components of earnings from continuing operations before income taxes consisted of the following: (Millions of Dollars) 2016 2015 2014 United States $ 305.9 $ 405.5 $ 234.4 Foreign 920.2 745.3 850.4 Earnings from continuing operations before income taxes $ 1,226.1 $ 1,150.8 $ 1,084.8 |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: (Millions of Dollars) 2016 2015 2014 Balance at beginning of year $ 283.1 $ 280.8 $ 269.5 Additions based on tax positions related to current year 14.9 23.2 27.4 Additions based on tax positions related to prior years 53.9 24.3 40.1 Reductions based on tax positions related to prior years (34.2 ) (14.3 ) (30.9 ) Settlements 5.4 (21.5 ) (5.9 ) Statute of limitations expirations (13.3 ) (9.4 ) (19.4 ) Balance at end of year $ 309.8 $ 283.1 $ 280.8 |
COMMITMENTS AND GUARANTEES (Tab
COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Company's Future Commitments | The following is a summary of the Company’s future commitments which span more than one future fiscal year: (Millions of Dollars) Total 2017 2018 2019 2020 2021 Thereafter Operating lease obligations $ 404.5 $ 94.5 $ 78.2 $ 62.4 $ 46.9 $ 35.0 $ 87.5 Marketing commitments 69.7 33.3 20.7 15.7 — — — Total $ 474.2 $ 127.8 $ 98.9 $ 78.1 $ 46.9 $ 35.0 $ 87.5 |
Summary of Guarantees | The Company's financial guarantees at December 31, 2016 are as follows: (Millions of Dollars) Term Maximum Potential Payment Carrying Amount of Liability Guarantees on the residual values of leased properties One to four years $ 58.4 $ — Standby letters of credit Up to three years 71.1 — Commercial customer financing arrangements Up to six years 70.5 22.1 Total $ 200.0 $ 22.1 |
Summary of Warranty Liability Activity | Following is a summary of the warranty liability activity for the years ended December 31, 2016 , January 2, 2016 , and January 3, 2015 : (Millions of Dollars) 2016 2015 2014 Balance beginning of period $ 105.4 $ 109.6 $ 121.1 Warranties and guarantees issued 97.2 91.8 98.0 Warranty payments and currency (99.2 ) (96.0 ) (109.5 ) Balance end of period $ 103.4 $ 105.4 $ 109.6 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Operating Results, Assets and Liabilities of Divested Businesses | (Millions of Dollars) 2015 2014 Net Sales $ 39.4 $ 118.4 Loss from discontinued operations before income taxes (19.3 ) (104.0 ) Income tax expense (benefit) on discontinued operations 0.8 (7.7 ) Net loss from discontinued operations $ (20.1 ) $ (96.3 ) |
Schedule II - Valuation and Q48
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Allowance for Doubtful Accounts | ||||
Movement in Valuation Allowances and Reserves | ||||
Beginning balance | $ 72.9 | $ 60.7 | $ 64.4 | |
Charged to Costs and Expenses | 21.9 | 27.3 | 20.9 | |
Charged To Other Accounts | [1],[2] | (4.8) | (0.7) | (8.3) |
Deductions | [3] | (22.1) | (15.8) | (16.3) |
Ending balance | 77.5 | 72.9 | 60.7 | |
Tax Valuation Allowance | ||||
Movement in Valuation Allowances and Reserves | ||||
Beginning balance | 480.7 | 551.9 | 549.7 | |
Charged to Costs and Expenses | 74.5 | 30.5 | 90 | |
Charged To Other Accounts | [1],[2] | (4.4) | (1.7) | (16.3) |
Deductions | [3] | (34.1) | (103.4) | (71.5) |
Ending balance | $ 525.5 | $ 480.7 | $ 551.9 | |
[1] | (c)Refer to Note Q, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. | |||
[2] | Amounts represent the impact of foreign currency translation, acquisitions and net transfers to/from other accounts. | |||
[3] | With respect to the allowance for doubtful accounts, deductions represent amounts charged-off less recoveries of accounts previously charged-off. |
Depreciation and Amortization,
Depreciation and Amortization, Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of finite lived intangible asset, minimum | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of finite lived intangible asset, minimum | 5 years |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 28, 2013Entity | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Fiscal Period Duration | 364 days | 364 days | 371 days | |
Proceeds (payments) from sales of businesses, net of cash sold | $ 725 | |||
Revenue recognition, multiple element arrangement percentage | 8.00% | |||
Vesting period of stock-based compensation grants | 4 years | |||
Minimum service year to be eligible to stock-based compensation benefits | 10 years | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Stock-based compensation, minimum retirement age for eligibility | 55 years | |||
Selling, General and Administrative Expense | ||||
Significant Accounting Policies [Line Items] | ||||
Advertising costs | $ 124.1 | $ 101.7 | $ 121.5 | |
Shipping and distribution costs | 235.6 | 229.3 | 243.2 | |
Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Shipping and distribution costs | 184 | 183 | 226.2 | |
Net Sales [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cooperative Advertising Expense | 232.5 | 211.9 | 206.5 | |
SG&A [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cooperative Advertising Expense | $ 6.6 | $ 6.4 | $ 6.2 | |
Other Businesses [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number Of Entities Classified As Held for Sale | Entity | 2 |
ACCOUNTS AND NOTES RECEIVABLE51
ACCOUNTS AND NOTES RECEIVABLE (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,137.2 | $ 1,165 |
Trade notes receivable | 140.1 | 130.6 |
Other accounts receivable | 103 | 109.1 |
Gross accounts and notes receivable | 1,380.3 | 1,404.7 |
Allowance for doubtful accounts | (77.5) | (72.9) |
Accounts and notes receivable, net | $ 1,302.8 | $ 1,331.8 |
ACCOUNTS AND NOTES RECEIVABLE -
ACCOUNTS AND NOTES RECEIVABLE - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash Flows Between Transferor and Transferee, Servicing Fees | $ 0.9 | $ 0.6 |
Net receivables derecognized | 100.5 | 100.4 |
Pre-tax loss from sale of receivables | 4.8 | (3.9) |
Payment to the Purchaser | 1,500.8 | 1,350.4 |
Proceeds from transfers of receivables to the purchaser | 1,500.8 | 1,350.4 |
Sale of receivables, deferred purchase price | $ 83.2 | 41.1 |
Deferred purchase price receivable collection period | 30 days | |
Cash inflows related to the deferred purchase price receivable | $ 514.3 | 416.9 |
Gross receivables sold | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables sold | 1,832.9 | 1,580.4 |
Net receivables sold | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables sold | 1,548.3 | 1,373.5 |
Other assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term trade notes receivable, net | 180.9 | 182.1 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash investment purchaser allowed to have in transferors receivables | 100 | |
Delinquencies and credit losses on receivables sold | $ 0.1 | $ 0.3 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,044.2 | $ 1,085 |
Work in process | 133.3 | 136.1 |
Raw materials | 300.5 | 305.3 |
Total | $ 1,478 | $ 1,526.4 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Net inventory amount valued at lower of LIFO cost or market | $ 662.8 | $ 651 |
Increase in inventories if LIFO method had not been used | $ 11.3 | $ 26.7 |
PROPERTY, PLANT AND EQUIPMENT55
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 3,160.2 | $ 3,166.8 | |
Less: accumulated depreciation and amortization | (1,709) | (1,716.6) | |
Property, Plant and Equipment, net | 1,451.2 | 1,450.2 | $ 1,454.1 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 107.3 | 129.2 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 37 | 36 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 519.3 | 525.3 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 114.2 | 98.9 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 2,008.5 | 1,979.9 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 373.9 | $ 397.5 |
Depreciation and Amortization E
Depreciation and Amortization Expense Associated with Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 221.8 | $ 219.2 | $ 229.5 |
Amortization | 41.8 | 37.7 | 33.9 |
Depreciation and amortization expense | $ 263.6 | $ 256.9 | 263.4 |
Depreciation and amortization expense, discontinued operations | $ 2.7 |
MERGER AND ACQUISITIONS - Estim
MERGER AND ACQUISITIONS - Estimated Fair Values of Major Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Business Acquisition [Line Items] | ||
Goodwill | $ 6,694 | $ 7,084.3 |
MERGER AND ACQUISITIONS - Addit
MERGER AND ACQUISITIONS - Additional Information (Detail) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($)Acquisition | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Feb. 01, 2032 | Feb. 01, 2020USD ($) | Feb. 28, 2017 | Oct. 12, 2016USD ($) | |
Business Acquisition [Line Items] | |||||||
Number of businesses acquired during the period | Acquisition | 5 | ||||||
Purchase price for acquisitions | $ 59.3 | $ 17.6 | $ 3.2 | ||||
Goodwill acquired, FAS 141R | $ (6,694) | $ (7,084.3) | |||||
Craftsman Acquisition [Member] [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration To Be Transferred | $ 525 | ||||||
Newell Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration To Be Transferred | $ 1,950 | ||||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Number of businesses acquired during the period | Acquisition | 2 | ||||||
Purchase price for acquisitions | $ 17.2 | ||||||
Scenario, Forecast [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability, Current | 3.00% | ||||||
Scenario, Forecast [Member] | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Payable | $ 250 | ||||||
Scenario, Forecast [Member] | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability, Current | 2.50% | ||||||
Scenario, Forecast [Member] | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability, Current | 3.50% |
GOODWILL AND INTANGIBLE ASSET59
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | $ 302.8 |
Goodwill | |
Balance January 2, 2016 | 7,084.3 |
Acquisitions | 24.6 |
Foreign currency translation and other | (112.1) |
Balance December 31, 2016 | 6,694 |
Construction and Do It Yourself | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | 5.7 |
Goodwill | |
Balance January 2, 2016 | 3,343.4 |
Acquisitions | 3 |
Foreign currency translation and other | (92.9) |
Balance December 31, 2016 | 3,247.8 |
Security Segment Business [Domain] | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | 297.1 |
Goodwill | |
Balance January 2, 2016 | 2,317.2 |
Acquisitions | 21.6 |
Foreign currency translation and other | (34.7) |
Balance December 31, 2016 | 2,007 |
Industrial Segment | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | 0 |
Goodwill | |
Balance January 2, 2016 | 1,423.7 |
Acquisitions | 0 |
Foreign currency translation and other | 15.5 |
Balance December 31, 2016 | $ 1,439.2 |
Infrastructure business [Member] | Industrial Segment | |
Goodwill [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 14.00% |
GOODWILL AND INTANGIBLE ASSET60
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 03, 2015 | Jan. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | $ 65.2 | ||
Amortization of intangible assets, discontinued operations | $ 2.9 | ||
Gross Carrying Amount | 2,065.5 | $ 2,252.9 | |
Accumulated Amortization | (1,274.5) | (1,289.2) | |
Patents and copyrights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 40.7 | 50.6 | |
Accumulated Amortization | (36.5) | (44.2) | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 152 | 164.8 | |
Accumulated Amortization | (100.4) | (100.8) | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,614.6 | 1,774.2 | |
Accumulated Amortization | (978.9) | (995.5) | |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 258.2 | 263.3 | |
Accumulated Amortization | $ (158.7) | $ (148.7) |
GOODWILL AND INTANGIBLE ASSET61
GOODWILL AND INTANGIBLE ASSETS - Aggregate Intangible Assets Amortization Expense by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 6,694 | $ 7,084.3 | |
Amortization of intangible assets, discontinued operations | $ 2.9 | ||
Amortization of intangible Assets | 144.4 | 157.1 | 186.4 |
Construction and Do It Yourself | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 3,247.8 | 3,343.4 | |
Amortization of intangible Assets | 36.8 | 39 | 40.7 |
Security Segment Business [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,007 | 2,317.2 | |
Industrial Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,439.2 | 1,423.7 | |
Amortization of intangible Assets | 49.8 | 56.8 | 66.9 |
Securities Industry [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible Assets | $ 57.8 | $ 61.3 | $ 78.8 |
GOODWILL AND INTANGIBLE ASSET62
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Jan. 03, 2015 | Jan. 02, 2016 | |
Goodwill [Line Items] | ||||
Goodwill | $ 6,694 | $ 6,694 | $ 7,084.3 | |
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | 65.2 | |||
definite-lived Intangible Assets, Written off Related to Sale of Business Unit | 31.8 | |||
Total indefinite-lived trade names | 1,508.5 | 1,508.5 | 1,577.8 | |
Amortization of intangible assets, discontinued operations | $ 2.9 | |||
Future amortization expense in 2013 | 125.7 | 125.7 | ||
Future amortization expense in 2014 | 116.3 | 116.3 | ||
Future amortization expense in 2015 | 107.9 | 107.9 | ||
Future amortization expense in 2016 | 90.1 | 90.1 | ||
Future amortization expense in 2017 | 81.8 | 81.8 | ||
Future amortization expense thereafter | 269.2 | 269.2 | ||
Construction and Do It Yourself | ||||
Goodwill [Line Items] | ||||
Goodwill | 3,247.8 | 3,247.8 | 3,343.4 | |
Security Segment Business [Domain] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,007 | 2,007 | $ 2,317.2 | |
Infrastructure business [Member] | Security Segment Business [Domain] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 269 | $ 269 |
ACCRUED EXPENSES (Detail)
ACCRUED EXPENSES (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Payables and Accruals [Abstract] | ||
Payroll and related taxes | $ 268 | $ 271.8 |
Income and other taxes | 117.6 | 157.6 |
Customer rebates and sales returns | 68.2 | 66.5 |
Insurance and benefits | 87.4 | 71.8 |
Accrued restructuring costs | 35.6 | 58.7 |
Derivative financial instruments | 49.8 | 49.8 |
Warranty costs | 68.8 | 67.8 |
Deferred revenue | 81.9 | 89.2 |
Payment on Forward Share Purchase Contract | 0 | 150 |
Other | 324.2 | 278.7 |
Total | $ 1,101.5 | $ 1,261.9 |
LONG-TERM DEBT AND FINANCING 64
LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Detail) - USD ($) | Dec. 15, 2018 | Nov. 17, 2016 | Nov. 30, 2016 | Dec. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Feb. 28, 2017 | Jan. 01, 2017 | Feb. 01, 2016 | Dec. 24, 2015 | Oct. 03, 2015 | Apr. 04, 2015 | Dec. 28, 2013 | Jan. 01, 2011 | Nov. 30, 2010 |
Debt Instrument [Line Items] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,300,000,000 | $ 2,300,000,000 | |||||||||||||||||
sub-limit on revolving credit facility | $ 400,000,000 | ||||||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 711,376 | 711,376 | 293,142 | 1,692,778 | 911,077 | ||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | $ (147,400,000) | $ 0 | $ 0 | |||||||||||||||
Commercial Paper Current Borrowing Capacity | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||||||||||
Temporary Equity, Redemption Price Per Share | $ 5 | $ 5 | |||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 100.49 | ||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | ||||||||||||||||||
Present value of the contract adjustment payments | 40,200,000 | $ 14,900,000 | |||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 418,234 | |||||||||||||||||
Gains (Losses) on Extinguishment of Debt | 100,000 | ||||||||||||||||||
Amortization of Debt Discount (Premium) | 300,000 | ||||||||||||||||||
Fair Value Adjustment Of Interest Rate Swap | $ (1,200,000) | $ (1,200,000) | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Less: Current maturities of long-term debt | (7,800,000) | (7,800,000) | (5,100,000) | ||||||||||||||||
Long-Term Debt | 3,815,300,000 | 3,815,300,000 | 3,792,100,000 | ||||||||||||||||
Long-term debt, interest rate | 4.25% | ||||||||||||||||||
Preferred Stock, Value, Issued | 0 | 0 | 0 | $ 632,500,000 | $ 632,500,000 | ||||||||||||||
Debt Instrument, Face Amount | 3,853,800,000 | 3,853,800,000 | |||||||||||||||||
Unamortized debt discount | (700,000) | (700,000) | |||||||||||||||||
Interest expense | 194,500,000 | 180,400,000 | 177,200,000 | ||||||||||||||||
Debt issuance costs | 3,300,000 | ||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 500,000 | 500,000 | |||||||||||||||||
Fair Value Adjustment Of Debt | 12,200,000 | 12,200,000 | |||||||||||||||||
Debt Issuance Costs, Net | (41,700,000) | (41,700,000) | (45,000,000) | ||||||||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 3,823,100,000 | 3,823,100,000 | 3,797,200,000 | ||||||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 98.45 | 98.45 | 407,000,000 | $ 135,300,000 | $ 60,400,000 | ||||||||||||||
Commercial Paper Maximum Borrowing Capacity | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||
Debt Instrument, Unamortized Discount, Noncurrent | $ 1,900,000 | $ 1,900,000 | |||||||||||||||||
Minimum | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 0.00% | 0.00% | 0.00% | ||||||||||||||||
Maximum | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 2.27% | 2.27% | 2.27% | ||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | ||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 345,000,000 | $ 343,100,000 | $ 343,100,000 | $ 343,800,000 | $ 345,000,000 | ||||||||||||||
Long-term debt, interest rate | 1.622% | 1.622% | 2.45% | 2.25% | |||||||||||||||
Debt Instrument, Face Amount | $ 345,000,000 | $ 345,000,000 | |||||||||||||||||
Interest expense | 6,800,000 | $ 7,800,000 | |||||||||||||||||
Debt Issuance Costs, Net | (1,900,000) | (1,900,000) | |||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 0 | 0 | |||||||||||||||||
Fair Value Adjustment Of Debt | $ 0 | $ 0 | |||||||||||||||||
Junior Subordinated Debt [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 2.25% | 2.25% | |||||||||||||||||
Interest expense | $ 700,000 | ||||||||||||||||||
Convertible notes payable due in 2018 (subordinated) | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | ||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | 3,504,165 | ||||||||||||||||||
Long-term debt, including current maturities | $ 632,500,000 | ||||||||||||||||||
Long-term debt, interest rate | 2.25% | 4.25% | |||||||||||||||||
Debt Instrument, Face Amount | $ 632,500,000 | ||||||||||||||||||
Interest expense | $ 23,300,000 | $ 26,900,000 | |||||||||||||||||
Notes 2 Point 45 Percent due 2018 [Member] [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.45% | 2.45% | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 629,200,000 | $ 629,200,000 | 627,500,000 | ||||||||||||||||
Long-term debt, interest rate | 2.45% | 2.45% | |||||||||||||||||
Debt Instrument, Face Amount | $ 632,500,000 | $ 632,500,000 | |||||||||||||||||
Debt Issuance Costs, Net | (3,300,000) | (3,300,000) | |||||||||||||||||
Notes 2 Point 45 Percent due 2018 [Member] [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||||
Notes 2 Point 45 Percent due 2018 [Member] [Member] | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 0 | 0 | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Convertible Notes Payable two Point four Five Percent Due Twenty Eighteen [Member] [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Interest expense | 15,500,000 | 1,900,000 | |||||||||||||||||
Notes payable due 2021 | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | 415,200,000 | 415,200,000 | $ 405,900,000 | ||||||||||||||||
Long-term debt, interest rate | 3.40% | ||||||||||||||||||
Notes payable due 2022 | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 750,300,000 | $ 750,300,000 | $ 749,600,000 | ||||||||||||||||
Long-term debt, interest rate | 2.90% | 2.90% | 2.90% | 2.90% | |||||||||||||||
Debt Instrument, Face Amount | $ 800,000,000 | $ 45,700,000 | |||||||||||||||||
Unamortized debt discount | (700,000) | ||||||||||||||||||
Debt issuance costs | $ 5,400,000 | ||||||||||||||||||
Debt Issuance Costs, Net | $ (3,700,000) | $ (3,700,000) | |||||||||||||||||
Notes payable due 2022 | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 0 | 0 | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Notes payable due 2028 | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 174,700,000 | $ 174,700,000 | $ 167,000,000 | ||||||||||||||||
Long-term debt, interest rate | 7.05% | 7.05% | 7.05% | ||||||||||||||||
Debt Issuance Costs, Net | $ 0 | $ 0 | |||||||||||||||||
Notes payable due 2028 | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Fair Value Adjustment Of Interest Rate Swap | (12,200,000) | (12,200,000) | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Debt Instrument, Face Amount | 150,000,000 | 150,000,000 | |||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | (12,500,000) | (12,500,000) | |||||||||||||||||
Fair Value Adjustment Of Debt | 12,200,000 | 12,200,000 | |||||||||||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 361,700,000 | $ 361,700,000 | $ 360,100,000 | ||||||||||||||||
Long-term debt, interest rate | 5.20% | 5.20% | 5.20% | ||||||||||||||||
Unamortized debt discount | $ (200,000) | $ (200,000) | |||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | (34,900,000) | (34,900,000) | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Debt Issuance Costs, Net | (3,200,000) | (3,200,000) | |||||||||||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Debt Instrument, Face Amount | 400,000,000 | 400,000,000 | |||||||||||||||||
Notes payable due 2052 (junior subordinated) | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 730,400,000 | $ 730,400,000 | $ 729,900,000 | ||||||||||||||||
Long-term debt, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||||||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||
Debt issuance costs | $ 20,600,000 | ||||||||||||||||||
Debt Issuance Costs, Net | (19,600,000) | (19,600,000) | |||||||||||||||||
Notes payable due 2052 (junior subordinated) | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||||
Notes payable due 2052 (junior subordinated) | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 0 | 0 | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Notes 5 Point 75 Percent due 2053 [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | $ 396,500,000 | $ 396,500,000 | $ 394,200,000 | $ 400,000,000 | |||||||||||||||
Long-term debt, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | $ 400,000,000 | |||||||||||||||||
Debt issuance costs | $ 8,000,000 | ||||||||||||||||||
Debt Issuance Costs, Net | (8,300,000) | (8,300,000) | |||||||||||||||||
Notes 5 Point 75 Percent due 2053 [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | (4,800,000) | (4,800,000) | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Other, payable in varying amounts through 2021 | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, including current maturities | 22,000,000 | 22,000,000 | $ 19,200,000 | ||||||||||||||||
Debt Instrument, Face Amount | 22,000,000 | 22,000,000 | |||||||||||||||||
Debt Issuance Costs, Net | $ 0 | $ 0 | |||||||||||||||||
Other, payable in varying amounts through 2021 | Minimum | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 0.00% | 0.00% | 0.00% | ||||||||||||||||
Other, payable in varying amounts through 2021 | Maximum | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 2.53% | 2.53% | 2.53% | ||||||||||||||||
Other, payable in varying amounts through 2021 | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | $ 0 | $ 0 | |||||||||||||||||
Other, payable in varying amounts through 2021 | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | 0 | 0 | |||||||||||||||||
Fair Value Adjustment Of Debt | $ 0 | $ 0 | |||||||||||||||||
Notes paybable due 2022 | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | $ (300,000) | ||||||||||||||||||
Notes 3 Point 4 Percent Due in 2021 [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Long-term debt, interest rate | 3.40% | 3.40% | |||||||||||||||||
Debt Issuance Costs, Net | $ (1,700,000) | $ (1,700,000) | |||||||||||||||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Debt Instrument, Face Amount | 400,000,000 | 400,000,000 | |||||||||||||||||
Unamortized debt discount | (200,000) | (200,000) | |||||||||||||||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | (17,100,000) | (17,100,000) | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||||
Notes Payable due 2022 [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Debt Instrument, Face Amount | 754,300,000 | 754,300,000 | |||||||||||||||||
Unamortized debt discount | (300,000) | (300,000) | |||||||||||||||||
Notes 7 Point 05 Percent Due in 2028 [Member] | Fixed To Floating Interest Rate Swap [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Unamortized debt discount | $ 0 | $ 0 | |||||||||||||||||
Treasury Stock [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,900,000 | ||||||||||||||||||
Common Stock | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | |||||||||||||||||
Common Stock | Minimum | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Commercial Paper Amount Outstanding | $ 600,000,000 | ||||||||||||||||||
Scenario, Forecast [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.304% | ||||||||||||||||||
2017 Credit Agreement [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000,000 | ||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,300,000,000 |
LONG-TERM DEBT AND FINANCING 65
LONG-TERM DEBT AND FINANCING ARRANGEMENTS - Additional Information (Detail) | Nov. 17, 2016USD ($)$ / sharesshares | Nov. 30, 2016shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shares | Nov. 30, 2012USD ($) | Jul. 31, 2012USD ($)deferral_period | Nov. 30, 2010USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | Jan. 03, 2015USD ($)shares | Dec. 24, 2015$ / shares | Oct. 03, 2015$ / sharesshares | Dec. 28, 2013USD ($)$ / sharesshares | Jan. 01, 2011USD ($) | Nov. 03, 2010$ / shares |
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount of long-term debt maturing in year one | $ 5,700,000 | $ 5,700,000 | |||||||||||||||
Principal amount of long-term debt maturing in year two | 982,300,000 | 982,300,000 | |||||||||||||||
Principal amount of long-term debt maturing in year three | 6,500,000 | 6,500,000 | |||||||||||||||
Principal amount of long-term debt maturing in year four | 3,000,000 | 3,000,000 | |||||||||||||||
Principal amount of long-term debt maturing in year five | 401,700,000 | 401,700,000 | |||||||||||||||
Principal amount of long-term debt maturing after year five | 2,454,600,000 | 2,454,600,000 | |||||||||||||||
Fair Value Adjustment Of Debt | 12,200,000 | 12,200,000 | |||||||||||||||
Fair value adjustment and unamortized gain termination of swap | (1,200,000) | (1,200,000) | |||||||||||||||
Interest paid | 176,600,000 | $ 161,500,000 | $ 166,400,000 | ||||||||||||||
Repayments of Long-term Debt | 0 | 16,100,000 | 46,600,000 | ||||||||||||||
Long-term debt, face amount | 3,853,800,000 | 3,853,800,000 | |||||||||||||||
Long-term debt, interest rate | 4.25% | ||||||||||||||||
Unamortized debt discount | 700,000 | 700,000 | |||||||||||||||
Debt issuance costs | 3,300,000 | ||||||||||||||||
Payments of debt extinguishment costs | $ 45,300,000 | ||||||||||||||||
Gain on debt extinguishment | (100,000) | ||||||||||||||||
Amortization of Debt Discount (Premium) | 300,000 | ||||||||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Commercial Paper Current Borrowing Capacity | 2,000,000,000 | 2,000,000,000 | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,300,000,000 | 2,300,000,000 | |||||||||||||||
Short-term credit lines | $ 4,300,000 | $ 2,500,000 | $ 4,300,000 | $ 2,500,000 | |||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 2.5 | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | shares | 3,504,165 | 418,234 | |||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Preferred stock dividend rate | 4.75% | ||||||||||||||||
Call option, aggregate premium | $ 9,700,000 | $ 50,300,000 | |||||||||||||||
Convertible preferred stock, liquidation preference | $ / shares | $ 100.49 | ||||||||||||||||
Purchase contracts, annual contract adjustment payment | 4.00% | 0.50% | 4.00% | 0.50% | |||||||||||||
Present value of the contract adjustment payments | $ 14,900,000 | $ 40,200,000 | $ 40,200,000 | ||||||||||||||
Interest expense recorded | $ 194,500,000 | $ 180,400,000 | $ 177,200,000 | ||||||||||||||
Adjusted strike price (USD per share) | $ / shares | $ 117.84 | $ 117.84 | |||||||||||||||
Stock Exercise Price Per Share Percentage Greater Than Closing Price | $ / shares | $ 0.40 | $ 0.40 | $ 0.60 | ||||||||||||||
Common Stock, Shares, Issued | shares | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | 176,902,738 | ||||||||||||
Common Stock | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | shares | 1.0157 | 1.0157 | |||||||||||||||
Convertible Preferred Units | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Conversion price (USD per share) | $ / shares | $ 72.52 | $ 72.52 | $ 72.66 | ||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Preferred stock dividend rate | 4.75% | ||||||||||||||||
Convertible preferred stock, liquidation preference | $ / shares | $ 100 | $ 100 | |||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | shares | 1.3789 | 1.3789 | 1.3763 | ||||||||||||||
Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 2.27% | 2.27% | 2.27% | 2.27% | |||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Adjusted strike price (USD per share) | $ / shares | $ 97.95 | $ 112.91 | $ 112.91 | ||||||||||||||
Maximum | Convertible Preferred Units | |||||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | shares | 1.2399 | 1.2399 | |||||||||||||||
Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Adjusted strike price (USD per share) | $ / shares | $ 75 | $ 98.80 | $ 98.80 | ||||||||||||||
Minimum | Common Stock | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | shares | 1.0122 | 1.0122 | 1.0122 | ||||||||||||||
New Credit Facility | |||||||||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,750,000,000 | $ 1,750,000,000 | |||||||||||||||
Committed Credit Facility | |||||||||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Line of credit, foreign currency sublimit | 400,000,000 | 400,000,000 | |||||||||||||||
Line of Credit | |||||||||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 588,500,000 | 588,500,000 | |||||||||||||||
Line of credit facility, available borrowing capacity | 493,800,000 | 493,800,000 | |||||||||||||||
Short-term credit lines | $ 4,300,000 | $ 4,300,000 | |||||||||||||||
Weighted average interest rates on short-term borrowings | 0.60% | 0.40% | 0.60% | 0.40% | |||||||||||||
Letter of Credit [Member] | |||||||||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Short-term credit lines | $ 94,700,000 | $ 94,700,000 | |||||||||||||||
Notes payable due 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | $ 800,000,000 | $ 45,700,000 | $ 45,700,000 | ||||||||||||||
Long-term debt, interest rate | 2.90% | 2.90% | 2.90% | 2.90% | 2.90% | ||||||||||||
Proceeds from debt issuance | $ 793,900,000 | ||||||||||||||||
Unamortized debt discount | 700,000 | ||||||||||||||||
Debt issuance costs | $ 5,400,000 | ||||||||||||||||
Long-term debt, repurchase price as a percent of principal amount | 101.00% | ||||||||||||||||
Long-term debt, including current maturities | $ 750,300,000 | $ 749,600,000 | $ 750,300,000 | $ 749,600,000 | |||||||||||||
Notes payable due 2022 | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||
Notes paybable due 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt discount | $ 300,000 | $ 300,000 | |||||||||||||||
Notes payable due 2052 (junior subordinated) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | $ 750,000,000 | $ 750,000,000 | |||||||||||||||
Long-term debt, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||
Proceeds from debt issuance | $ 729,400,000 | ||||||||||||||||
Debt issuance costs | 20,600,000 | ||||||||||||||||
Junior subordinated notes | $ 750,000,000 | ||||||||||||||||
Number of consecutive deferral periods | deferral_period | 5 | ||||||||||||||||
Threshold percentage of principal plus accrued interest for redemption | 100.00% | ||||||||||||||||
Long-term debt, including current maturities | $ 730,400,000 | $ 729,900,000 | $ 730,400,000 | $ 729,900,000 | |||||||||||||
Notes payable due 2052 (junior subordinated) | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||
Notes payable due 2052 (junior subordinated) | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||
Notes payable due 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 3.40% | 3.40% | |||||||||||||||
Long-term debt, including current maturities | 415,200,000 | $ 405,900,000 | 415,200,000 | $ 405,900,000 | |||||||||||||
Notes 5 Point 75 Percent due 2053 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | $ 400,000,000 | $ 400,000,000 | |||||||||||||||
Long-term debt, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||
Proceeds from debt issuance | 392,000,000 | ||||||||||||||||
Debt issuance costs | $ 8,000,000 | ||||||||||||||||
Long-term debt, repurchase price as a percent of principal amount | 100.00% | 100.00% | |||||||||||||||
Long-term debt, including current maturities | $ 396,500,000 | $ 394,200,000 | $ 396,500,000 | $ 394,200,000 | $ 400,000,000 | ||||||||||||
Notes 5 Point 75 Percent due 2053 [Member] | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | 0 | 0 | |||||||||||||||
Unamortized debt discount | $ 0 | $ 0 | |||||||||||||||
Notes payable due 2028 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 7.05% | 7.05% | 7.05% | 7.05% | |||||||||||||
Long-term debt, including current maturities | $ 174,700,000 | $ 167,000,000 | $ 174,700,000 | $ 167,000,000 | |||||||||||||
Notes payable due 2028 | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | 12,200,000 | 12,200,000 | |||||||||||||||
Fair value adjustment and unamortized gain termination of swap | (12,200,000) | (12,200,000) | |||||||||||||||
Long-term debt, face amount | 150,000,000 | 150,000,000 | |||||||||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | $ 0 | $ 0 | |||||||||||||||
Long-term debt, interest rate | 5.20% | 5.20% | 5.20% | 5.20% | |||||||||||||
Unamortized debt discount | $ 200,000 | $ 200,000 | |||||||||||||||
Long-term debt, including current maturities | 361,700,000 | $ 360,100,000 | 361,700,000 | $ 360,100,000 | |||||||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | 400,000,000 | 400,000,000 | |||||||||||||||
Notes payable due in 2018 (junior subordinated) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from debt issuance | $ 613,500,000 | ||||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | shares | 6,325,000 | 6,325,000 | |||||||||||||||
Preferred stock units, stated amount | $ / shares | $ 100 | ||||||||||||||||
Conversion premium for convertible notes | 10.00% | ||||||||||||||||
Principal amount denominator | $ 1,000 | ||||||||||||||||
Share purchase requirement | shares | 1 | ||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | $ 345,000,000 | $ 345,000,000 | |||||||||||||||
Long-term debt, interest rate | 1.622% | 2.45% | 1.622% | 2.45% | 2.25% | ||||||||||||
Proceeds from debt issuance | $ 334,700,000 | ||||||||||||||||
Long-term debt, including current maturities | $ 345,000,000 | $ 343,100,000 | $ 343,800,000 | 343,100,000 | $ 343,800,000 | $ 345,000,000 | |||||||||||
Commercial Paper and Credit Facilities [Abstract] | |||||||||||||||||
Equity Unit Shares Issuable Upon Conversion | shares | 3,450,000 | ||||||||||||||||
Equity Unit Shares Issuable Upon Conversion [Abstract] | |||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 100 | $ 100 | |||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Conversion premium for convertible notes | 10.00% | ||||||||||||||||
Principal amount denominator | $ 1,000 | ||||||||||||||||
Interest expense recorded | 6,800,000 | $ 7,800,000 | |||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt discount | 0 | 0 | |||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | $ 0 | $ 0 | |||||||||||||||
Junior Subordinated Debt [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 2.25% | 2.25% | |||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Interest expense recorded | $ 700,000 | ||||||||||||||||
Convertible notes payable due in 2018 (subordinated) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | $ 632,500,000 | ||||||||||||||||
Long-term debt, interest rate | 2.25% | 2.25% | 4.25% | ||||||||||||||
Long-term debt, including current maturities | $ 632,500,000 | ||||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | shares | 3,504,165 | ||||||||||||||||
Interest expense recorded | 23,300,000 | $ 26,900,000 | |||||||||||||||
Convertible Notes Payable two Point four Five Percent Due Twenty Eighteen [Member] [Member] | |||||||||||||||||
Convertible Preferred Units [Abstract] | |||||||||||||||||
Interest expense recorded | $ 15,500,000 | 1,900,000 | |||||||||||||||
Notes Payable, Other Payables [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, face amount | 22,000,000 | 22,000,000 | |||||||||||||||
Long-term debt, including current maturities | $ 22,000,000 | $ 19,200,000 | $ 22,000,000 | $ 19,200,000 | |||||||||||||
Notes Payable, Other Payables [Member] | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 2.53% | 2.53% | 2.53% | 2.53% | |||||||||||||
Notes Payable, Other Payables [Member] | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt, interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||
Notes Payable, Other Payables [Member] | Fixed to Floating Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt discount | $ 0 | $ 0 | |||||||||||||||
Notes Payable, Other Payables [Member] | Fixedto Floating Interest Rate Swaps Terminated [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair Value Adjustment Of Debt | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME66
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Cash Flow Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (3.3) | $ (22.4) | $ (7.5) |
Cash Flow Hedges | Foreign Exchange Forward [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 503.8 | 439.3 | |
Fair Value Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Proceeds from Derivative Instrument, Financing Activities | 27 | ||
Derivative, Notional Amount | 950 | ||
Net Investment Hedging | Foreign Exchange Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 1,000 | ||
Designated as Hedging Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 81.7 | 72.2 | |
Fair value of liability derivatives | 51.2 | 55.4 | |
Designated as Hedging Instruments | Cash Flow Hedges | Interest Rate Contracts | LT other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 47.3 | 41.1 | |
Designated as Hedging Instruments | Cash Flow Hedges | Interest Rate Contracts | LT other assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 0 | |
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Accrued expense | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 1.6 | 1.8 | |
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 0 | |
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 37.6 | 21.9 | |
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 3.7 | |
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts | Accrued expense | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 2.5 | |
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts | LT other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 5.2 | |
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 14.9 | |
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts | LT other assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 1.4 | |
Designated as Hedging Instruments | Net Investment Hedging | Accrued expense | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 1.8 | 4.8 | |
Designated as Hedging Instruments | Net Investment Hedging | LT other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | ||
Fair value of liability derivatives | 0.5 | 0 | |
Designated as Hedging Instruments | Net Investment Hedging | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 44.1 | 30.3 | |
Designated as Hedging Instruments | Net Investment Hedging | LT other assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | ||
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 28.5 | 7.1 | |
Fair value of liability derivatives | 46.4 | 40.7 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued expense | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 46.4 | 40.7 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | $ 28.5 | $ 7.1 |
DERIVATIVE FINANCIAL INSTRUME67
DERIVATIVE FINANCIAL INSTRUMENTS - Detail Pre-tax Amounts Reclassified from Accumulated Other Comprehensive Loss into Earnings for Active Derivative Financial Instruments (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 9 | |||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 3.3 | $ 22.4 | $ 7.5 | |
Interest Rate Contracts | Interest expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) recorded in OCI | 6.2 | 6.8 | ||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0 | 0 | ||
Gain (Loss) recognized in income (Ineffective Portion) | 0 | 0 | ||
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) recorded in OCI | (19.3) | (52.5) | ||
Gain (Loss) recognized in income (Ineffective Portion) | [1] | 0 | 0 | |
Foreign Exchange Contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | $ (21.7) | $ 57.4 | ||
[1] | * Includes ineffective portion and amount excluded from effectiveness testing on derivatives. |
DERIVATIVE FINANCIAL INSTRUME68
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value Adjustments Relating to Swaps (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Jan. 02, 2016 | Oct. 31, 2012 | Jan. 31, 2012 | Jan. 01, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 4.25% | ||||
Long-term debt, face amount | $ 3,853.8 | ||||
Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Loss on Derivative | 6.9 | $ 14.2 | |||
Derivative, Notional Amount | 950 | ||||
Interest Expense, Debt | 19.9 | 47.1 | |||
Fair Value Hedges | Interest expenses | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Gain/(Loss) on Swaps | 3.3 | 11.8 | |||
Gain /(Loss) on Borrowings | $ 3.8 | $ 11.8 | |||
Notes 7 Point 05 Percent Due 2028 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 7.05% | 7.05% | |||
Notes 7 Point 05 Percent Due 2028 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 150 | ||||
Notes 7 Point 05 Percent Due in 2028 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 7.05% | ||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 5.20% | 5.20% | |||
Notes 3 Point 4 Percent Due in 2021 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 3.40% | ||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 3.40% | ||||
Derivative, Notional Amount | $ 400 |
DERIVATIVE FINANCIAL INSTRUME69
DERIVATIVE FINANCIAL INSTRUMENTS - Details of Foreign Exchange Contracts Pre-Tax Amounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Oct. 31, 2012 | Jan. 01, 2011 | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Debt Instrument, Face Amount | $ 3,853.8 | |||||
Long-term debt, interest rate | 4.25% | |||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | (104.7) | $ (137.7) | $ 61.4 | |||
Cash Flow Hedges | Foreign Exchange Forward | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | 503.8 | 439.3 | ||||
Cash Flow Hedges | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Amount Recorded in OCI Gain (Loss) | 19.3 | 52.5 | ||||
Ineffective Portion Recorded in Income Statement | [1] | 0 | 0 | |||
Cash Flow Hedges | Foreign Exchange Option [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | 252 | 197.4 | ||||
Fair Value Hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | 950 | |||||
Net Investment Hedging | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Hedging Activities Effect Net Of Tax | (88.6) | (11.8) | ||||
Derivative, Notional Amount | 1,000 | |||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 104.7 | 137.7 | ||||
Net Investment Hedging | Foreign Exchange Contracts | Other, net | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Amount Recorded in OCI Gain (Loss) | 117.8 | (75.5) | ||||
Effective Portion Recorded in Income Statement | 0 | 0 | ||||
Ineffective Portion Recorded in Income Statement | $ 0 | 0 | ||||
Notes 3 Point 4 Percent Due in 2021 [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Long-term debt, interest rate | 3.40% | |||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Fair Value Hedges | Interest Rate Risk [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Long-term debt, interest rate | 3.40% | |||||
Derivative, Notional Amount | $ 400 | |||||
Currency British Pound Sterling [Member] | Net Investment Hedging | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | $ 1,000 | $ 1,900 | ||||
[1] | * Includes ineffective portion and amount excluded from effectiveness testing on derivatives. |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS - Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | Jan. 01, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |||
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other, net | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Amount of gain (loss) recorded in Income on derivative, year to date | $ (21.1) | $ (8.9) | ||
Not Designated as Hedging Instrument | Forward Contracts | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | 1,500 | $ 2,000 | ||
Fair Value Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | $ 950 | |||
Notes 5 Point 75 Percent due 2053 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | 5.75% | |
Notes 5 Point 75 Percent due 2053 [Member] | Fair Value Hedging [Member] | Interest Rate Risk [Member] | ||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||
Derivative, Notional Amount | $ 400 |
DERIVATIVE FINANCIAL INSTRUME71
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Jan. 01, 2017 | Oct. 31, 2012 | Jan. 31, 2012 | Jan. 01, 2011 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Commercial Paper Maximum Borrowing Capacity | $ 3,000 | $ 3,000 | |||||
Payments for (Proceeds from) Derivative Instruments | 94.7 | $ 144.4 | |||||
Long-term debt, face amount | 3,853.8 | ||||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 136.1 | ||||||
Long-term debt, interest rate | 4.25% | ||||||
Matured foreign exchange contracts, net cash payment | $ (104.7) | $ (137.7) | $ 61.4 | ||||
Notes payable due 2021 | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Long-term debt, interest rate | 3.40% | ||||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Long-term debt, interest rate | 5.20% | 5.20% | |||||
Not Designated as Hedging Instrument | Forward Contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | $ 1,500 | $ 2,000 | |||||
Cash Flow Hedges | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
After-tax gain (loss) for cash flow hedge effectiveness in accumulated other comprehensive loss | (46.3) | (52.1) | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | (3.3) | (22.4) | $ (7.5) | ||||
Cash Flow Hedges | Foreign Exchange Contracts | Cost of Sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged item impact on Consolidated Statement of Operations | 21.7 | (57.4) | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 21.7 | (57.4) | |||||
Cash Flow Hedges | Interest Rate Swap | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | $ 400 | ||||||
Cash Flow Hedges | Foreign Exchange Forward | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
De-designated forward currency contracts, maturity year | 2,017 | ||||||
Derivative, Notional Amount | $ 503.8 | 439.3 | |||||
Cash Flow Hedges | Foreign Exchange Option | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | 252 | 197.4 | |||||
Fair Value Hedges | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | 950 | ||||||
Net swap accruals and amortization of gains on terminated swaps | 6.9 | 14.2 | |||||
Interest Expense, Debt | 19.9 | 47.1 | |||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes payable due 2021 | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | $ 400 | ||||||
Long-term debt, interest rate | 3.40% | ||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 7 Point 05 Percent Due in 2028 [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Long-term debt, interest rate | 7.05% | ||||||
Net Investment Hedging | Foreign Exchange Contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | 1,000 | ||||||
Gain (loss) included in accumulated other comprehensive income (loss) | (88.6) | (11.8) | |||||
Matured foreign exchange contracts, net cash payment | 104.7 | 137.7 | |||||
Net Investment Hedging | Foreign Exchange Contracts | Currency British Pound Sterling [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | 1,000 | $ 1,900 | |||||
Net Investment Hedging | Currency Swap [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Notional Amount | $ 250 |
CAPITAL STOCK - Reconciliation
CAPITAL STOCK - Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Numerator | |||||||||||
Net earnings attributable to Stanley Black & Decker, Inc. | $ 255.5 | $ 248.9 | $ 271.5 | $ 189.4 | $ 267.2 | $ 234.1 | $ 235.7 | $ 166.8 | $ 965.3 | $ 903.8 | $ 857.2 |
Net loss from discontinued operations | 0 | 0 | 0 | 0 | 1.7 | 5.4 | 8.5 | 4.5 | 0 | 20.1 | 96.3 |
Net earnings | $ 255.5 | $ 248.9 | $ 271.5 | $ 189.4 | $ 265.5 | $ 228.7 | $ 227.2 | $ 162.3 | $ 965.3 | $ 883.7 | $ 760.9 |
Denominator | |||||||||||
Basic earnings per share -- weighted-average shares | 146,041 | 148,234 | 156,090 | ||||||||
Potential Dilutive Securities That Could Be Included In Computation Of Earnings Per Share Amount | 2,166 | 4,472 | 3,647 | ||||||||
Diluted earnings per share -- weighted-average shares | 148,207 | 152,706 | 159,737 | ||||||||
Basic earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | $ 1.74 | $ 1.71 | $ 1.87 | $ 1.30 | $ 1.83 | $ 1.60 | $ 1.59 | $ 1.10 | $ 6.61 | $ 6.10 | $ 5.49 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | (0.01) | (0.04) | (0.06) | (0.03) | 0 | (0.14) | (0.62) |
Total basic earnings per share of common stock (USD per share) | 1.74 | 1.71 | 1.87 | 1.30 | 1.82 | 1.57 | 1.53 | 1.07 | 6.61 | 5.96 | 4.87 |
Diluted earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | 1.71 | 1.68 | 1.84 | 1.28 | 1.78 | 1.55 | 1.54 | 1.07 | 6.51 | 5.92 | 5.37 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | (0.01) | (0.04) | (0.06) | (0.03) | 0 | (0.13) | (0.60) |
Total diluted earnings per share of common stock (USD per share) | $ 1.71 | $ 1.68 | $ 1.84 | $ 1.28 | $ 1.77 | $ 1.52 | $ 1.49 | $ 1.04 | $ 6.51 | $ 5.79 | $ 4.76 |
CAPITAL STOCK - Weighted-averag
CAPITAL STOCK - Weighted-average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Millions | Nov. 17, 2016 | Nov. 30, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Oct. 03, 2015 | Dec. 28, 2013 | Nov. 30, 2010 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | ||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 418,234 | ||||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | |||||
Stock options | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from the computation of EPS | 734,000 | 646,000 | 634,000 | |||||
Notes 2 Point 25 Percent due 2018 [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Long-term debt, including current maturities | $ 345 | $ 343.1 | $ 343.8 | $ 345 | ||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||
Convertible notes payable due in 2018 (subordinated) | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Long-term debt, including current maturities | $ 632.5 | |||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | 3,504,165 | |||||||
Common Stock | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | ||||||
Common Stock | Minimum | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | |||||
Convertible Preferred Units | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Convertible Notes Conversion Rate Number Of Common Stock Shares | 1.3789 | 1.3763 | ||||||
Convertible Preferred Units | Maximum | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Convertible Notes Conversion Rate Number Of Common Stock Shares | 1.2399 | 1.2399 |
CAPITAL STOCK - Common Stock Sh
CAPITAL STOCK - Common Stock Share Activity (Detail) - USD ($) $ in Millions | Nov. 17, 2016 | Feb. 08, 2016 | Feb. 01, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Oct. 31, 2014 | Nov. 30, 2010 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Oct. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | 3,381,162 | 3,940,087 | 340,576 | |||||||
Payments for Repurchase of Common Stock | $ 230.9 | $ 124.2 | $ 326.1 | $ 374.1 | $ 649.8 | $ 28.2 | ||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 911,077 | 711,376 | 1,692,778 | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 418,234 | ||||||||||
Forward share purchase contract | $ 147.4 | $ 150 | $ 350 | |||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345 | $ (147.4) | $ 0 | $ 0 | ||||||||
Common Stock Share Activity | ||||||||||||
Outstanding, beginning of year | 157,125,450 | 153,944,291 | 157,125,450 | 155,479,230 | ||||||||
Issued from treasury | 4,870,761 | 6,046,405 | 1,986,796 | |||||||||
Outstanding, end of year | 152,559,767 | 153,944,291 | 157,125,450 | |||||||||
Shares subject to the forward share purchase contract | (1,603,822) | (1,603,822) | (3,645,510) | (3,645,510) | (5,249,332) | (1,603,822) | ||||||
Outstanding, less shares subject to the forward share purchase contract | 148,914,257 | 148,694,959 | 155,521,628 | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 6,255,285 | |||||||||||
Stock Repurchased During Period, Shares | (4,651,463) | (9,227,564) | (340,576) | |||||||||
Convertible Preferred Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Conversion of Stock, Shares Issued | 8,433,123 | 2,869,169 | 3,500,000 | |||||||||
Call Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Option Indexed to Issuer's Equity, Shares | 3,100,000 | 9,100,000 | 12,200,000 |
CAPITAL STOCK - Common Stock 75
CAPITAL STOCK - Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans (Detail) - shares | Dec. 31, 2016 | Jan. 02, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 6,935,076 | 10,098,668 |
Employee stock purchase plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 1,936,093 | 2,104,326 |
Other stock-based compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 4,998,983 | 7,994,342 |
CAPITAL STOCK - Assumptions use
CAPITAL STOCK - Assumptions used for Black-Scholes valuation of Options (Detail) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 24.10% | 25.00% | 27.00% |
Dividend yield | 2.00% | 2.00% | 2.20% |
Risk-free interest rate | 2.00% | 1.90% | 1.80% |
Expected term | 5 years 3 months | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 23.41 | $ 21.94 | $ 19.98 |
Weighted average vesting period | 2 years 4 months 24 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
CAPITAL STOCK - Assumptions u77
CAPITAL STOCK - Assumptions used in Valuation of Pre-merger Black and Decker Stock Options (Detail) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 24.10% | 25.00% | 27.00% |
Dividend yield | 2.00% | 2.00% | 2.20% |
Risk-free interest rate | 2.00% | 1.90% | 1.80% |
Expected term | 5 years 3 months | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 23.41 | $ 21.94 | $ 19.98 |
CAPITAL STOCK - Number of Stock
CAPITAL STOCK - Number of Stock Options and Weighted-average Exercise Prices (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Options | |
Outstanding, beginning of year (in shares) | shares | 6,042,839 |
Granted (in shares) | shares | 1,250,198 |
Exercised (in shares) | shares | (718,275) |
Forfeited (in shares) | shares | (141,176) |
Outstanding, end of year (in shares) | shares | 6,433,586 |
Exercisable, end of year (in shares) | shares | 3,897,279 |
Price | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 77.36 |
Granted (USD per share) | $ / shares | 118.97 |
Exercised (USD per share) | $ / shares | 65.98 |
Forfeited (USD per share) | $ / shares | 95.15 |
Outstanding, end of year (USD per share) | $ / shares | 86.33 |
Exercisable, end of year (USD per share) | $ / shares | $ 71.21 |
CAPITAL STOCK - Outstanding and
CAPITAL STOCK - Outstanding and Exercisable Stock Option (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 187.8 | |
Oustanding Stock Options, Options (in shares) | 6,433,586 | 6,042,839 |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 9 months 15 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 86.33 | |
Exercisable Stock Options, Options (in shares) | 3,897,279 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 3 months 18 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 71.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 169.5 | |
$35.00 and below | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 56,460 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 1 year 11 months 16 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 33 | |
Exercisable Stock Options, Options (in shares) | 56,460 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 1 year 11 months 16 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 33 | |
$35.01 - 50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 93,799 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 48.65 | |
Exercisable Stock Options, Options (in shares) | 93,799 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 48.65 | |
$50.01 - higher | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 6,283,327 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 10 months 24 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 87.37 | |
Exercisable Stock Options, Options (in shares) | 3,747,020 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 4 months 28 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 72.35 | |
Restricted Share Units & Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days |
CAPITAL STOCK - Summary of Non-
CAPITAL STOCK - Summary of Non-vested Restricted Stock Unit Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Weighted Average Grant Date Fair Value | |||
Excess Tax Benefit from Share-based Compensation | $ 9.1 | $ 21.2 | $ 7.3 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 11.4 | ||
Share Units | |||
Non-vested, Beginning Balance (in shares) | 1,086,669 | ||
Granted (in shares) | 445,155 | 349,768 | 559,955 |
Vested (in shares) | (315,766) | ||
Forfeited (in shares) | (84,034) | ||
Non-vested, Ending Balance (in shares) | 1,132,024 | 1,086,669 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, Beginning Balance (USD per share) | $ 88.19 | ||
Granted (USD per share) | 118.20 | $ 107.43 | $ 93.67 |
Vested (USD per share) | 117.19 | ||
Forfeited (USD per share) | 103.95 | ||
Non-vested, Ending Balance (USD per share) | $ 100.53 | $ 88.19 | |
Excess Tax Benefit from Share-based Compensation | $ 2.4 | $ 7 | $ 3.5 |
CAPITAL STOCK - Summary of Long
CAPITAL STOCK - Summary of Long-Term Performance Awards Activity (Detail) - Long-Term Performance Awards | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Units | |
Non-vested, Beginning Balance (in shares) | shares | 842,541 |
Granted (in shares) | shares | 261,081 |
Vested (in shares) | shares | (162,136) |
Forfeited (in shares) | shares | (140,412) |
Non-vested, Ending Balance (in shares) | shares | 801,074 |
Weighted Average Grant Date Fair Value | |
Non-vested, Beginning Balance (USD per share) | $ / shares | $ 78.83 |
Granted (USD per share) | $ / shares | 86.56 |
Vested (USD per share) | $ / shares | 71.42 |
Forfeited (USD per share) | $ / shares | 72.11 |
Non-vested, Ending Balance (USD per share) | $ / shares | $ 84.03 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information, Earnings Per Share (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Class of Warrant or Right [Line Items] | |
Long-term debt, face amount | $ 3,853.8 |
CAPITAL STOCK - Additional In83
CAPITAL STOCK - Additional Information, Common Stock Share Activity (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2014 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Class of Stock [Line Items] | ||||||
Repurchase of common stock, shares | (4,651,463) | (9,227,564) | (340,576) | |||
Forward share purchase contract | $ 147.4 | $ 150 | $ 350 | |||
Forward share purchase contract, shares purchased | 1,603,822 | 1,603,822 | 3,645,510 | 3,645,510 | 5,249,332 | 1,603,822 |
CAPITAL STOCK - Additional In84
CAPITAL STOCK - Additional Information, Preferred Stock Purchase Rights (Detail) - 12 months ended Dec. 31, 2016 - Series A Preferred Stock | $ / shares | SEK / shares |
Class of Stock [Line Items] | ||
Preferred stock purchase right, purchase rights granted per share of common stock | SEK / shares | SEK 1 | |
Preferred stock purchase right, exercise price (USD per right) | $ / shares | $ 220 | |
Preferred stock purchase right, expiration date | Mar. 10, 2016 |
CAPITAL STOCK - Additional In85
CAPITAL STOCK - Additional Information, Stock Option Valuation Assumptions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 35.9 | $ 102.7 | $ 33.7 |
Stock options vesting period | 4 years | ||
Fair value assumption for stock options, historical volatility expected life | 5 years 3 months | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options term | 10 years | ||
Stock options vesting period | 4 years |
CAPITAL STOCK - Additional In86
CAPITAL STOCK - Additional Information, Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 81.2 | $ 67.9 | $ 57.1 |
Cash received from exercise of stock options | 47.4 | ||
Tax benefit from exercise of stock options | 13 | ||
Aggregate intrinsic value | 35.9 | 102.7 | 33.7 |
Excess Tax Benefit from Share-based Compensation | $ 9.1 | 21.2 | 7.3 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, minimum retirement age for eligibility | 55 years | ||
Number of years of service to be eligible for employee retirement compensation | 10 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price Ranges, lower (USD per share) | $ 30.03 | ||
Exercise Price Ranges, upper (USD per share) | $ 121.63 | ||
Share-based Compensation | $ 22.8 | $ 16.7 | $ 16.5 |
Unrecognized pre-tax compensation expense | $ 36.2 | ||
Number of years of service to be eligible for employee retirement compensation | 2 years 4 months 24 days |
CAPITAL STOCK - Additional In87
CAPITAL STOCK - Additional Information, Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Weighted average exercise price (USD per share) | $ 118.97 | ||
Aggregate intrinsic value | $ 35.9 | $ 102.7 | $ 33.7 |
Stock-based compensation expense | $ 81.2 | $ 67.9 | $ 57.1 |
Employee Stock Purchase Plans | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee stock purchase plan, discounted purchase price percentage | 85.00% | ||
Weighted average exercise price (USD per share) | $ 86.87 | ||
Employee stock purchase plan, shares authorized for subscription | 6,000,000 | ||
Employee stock purchase plan, shares issued | 168,233 | 182,039 | 128,144 |
Employee stock purchase plan, price per share | $ 84.46 | $ 71.80 | $ 71.69 |
Aggregate intrinsic value | $ 4.8 | $ 5.4 | $ 1.9 |
Cash received related to ESPP purchases | $ 14.2 | ||
Expected term | 1 year | ||
Dividend yield | 2.10% | 2.20% | 2.50% |
Expected volatility | 20.00% | 19.00% | 25.00% |
Risk-free interest rate | 0.50% | 0.10% | 0.10% |
Weighted average fair value of purchase rights granted | $ 29.68 | $ 31.41 | $ 17.10 |
Stock-based compensation expense | $ 4.7 | $ 5.4 | $ 2.1 |
CAPITAL STOCK - Additional In88
CAPITAL STOCK - Additional Information, Restricted Share Units and Awards (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock-based compensation expense | $ 81.2 | $ 67.9 | $ 57.1 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 9.1 | 21.2 | 7.3 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1.1 | $ 1.1 | $ 1.1 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Restricted stock units and awards, granted (in shares) | 445,155 | 349,768 | 559,955 |
Weighted average grant date fair value, granted (USD per share) | $ 118.20 | $ 107.43 | $ 93.67 |
Stock-based compensation expense | $ 32.6 | $ 30.9 | $ 26 |
Stock-based compensation, tax benefit | 11.4 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 2.4 | 7 | 3.5 |
Unrecognized pre-tax compensation expense | $ 79.8 | ||
Unrecognized pre-tax compensation expense, weighted average recognition period | 2 years 2 months 12 days | ||
Total fair value of shares vested | $ 37 | $ 72.2 | $ 64.5 |
CAPITAL STOCK - Additional In89
CAPITAL STOCK - Additional Information, Long-Term Performance Awards (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
Earnings per share and return on capital employed as percentage of share based payment | 75.00% | ||
Market based element as percentage of share based payment | 25.00% | ||
Long term performance awards, grant year | 2,019 | 2,018 | 2,017 |
Share-based Compensation | $ 81.2 | $ 67.9 | $ 57.1 |
Long-Term Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 20 | $ 13.8 | $ 11.4 |
CAPITAL STOCK - Additional In90
CAPITAL STOCK - Additional Information, Other Equity Arrangements (Detail) - USD ($) | Nov. 17, 2016 | Feb. 08, 2016 | Feb. 01, 2016 | Nov. 10, 2010 | Nov. 30, 2016 | Dec. 31, 2013 | Nov. 30, 2010 | Dec. 31, 2016 | Oct. 03, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 24, 2015 | Dec. 28, 2013 | Nov. 03, 2010 |
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Purchase of common stock for treasury | $ 230,900,000 | $ 124,200,000 | $ 326,100,000 | $ 374,100,000 | $ 649,800,000 | $ 28,200,000 | ||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 711,376 | 1,692,778 | 911,077 | 711,376 | |||||||||||
Call option, aggregate premium | $ 9,700,000 | 50,300,000 | ||||||||||||||
Number of net-share settled options exercised (in shares) | 718,275 | |||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 100.49 | |||||||||||||||
Preferred Stock, Value, Issued | $ 632,500,000 | $ 0 | $ 0 | $ 0 | $ 632,500,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | |||||||||||||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | ||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 94.34 | $ 94.34 | $ 103.97 | $ 96.46 | ||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | 3,381,162 | 3,940,087 | 340,576 | |||||||||||
Convertible conversion warrant strike price percentage higher than previous price on November 1, 2010 | 60.00% | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 418,234 | ||||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 98.45 | $ 98.45 | $ 407,000,000 | $ 135,300,000 | $ 60,400,000 | |||||||||||
Stock Exercise Price Per Share | $ 117.84 | $ 117.84 | ||||||||||||||
Stock Exercise Price Per Share Percentage Greater Than Closing Price | 0.40 | 0.40 | $ 0.60 | |||||||||||||
Maximum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Stock Exercise Price Per Share | $ 97.95 | 112.91 | 112.91 | |||||||||||||
Minimum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Stock Exercise Price Per Share | $ 75 | $ 98.80 | $ 98.80 | |||||||||||||
Call Option [Member] | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Call option, aggregate premium | $ 50,300,000 | |||||||||||||||
Call option, average price | $ 5.97 | $ 2.77 | ||||||||||||||
Call Option [Member] | Maximum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Strike price | 97.95 | |||||||||||||||
Call Option [Member] | Minimum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Call Options Term Of Maturity-1 | 5 years | |||||||||||||||
Strike price | $ 75 | |||||||||||||||
Treasury Stock [Member] | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,900,000 | |||||||||||||||
Common Stock | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | ||||||||||||||
Common Stock | Maximum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Purchase of common stock for treasury | $ 80.65 | |||||||||||||||
Common Stock | Minimum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Purchase of common stock for treasury | $ 98.80 | |||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | |||||||||||||
Convertible Preferred Stock [Member] | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Convertible preferred units issued | 6,325,000 | 6,300,000 | 6,300,000 | |||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 100 | |||||||||||||||
Stated interest rate | 4.75% | |||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | 1.3789 | 1.3763 | 1.3789 | |||||||||||||
Conversion of Stock, Shares Issued | 8,433,123 | 2,869,169 | 3,500,000 | |||||||||||||
Conversion price (USD per share) | $ 72.52 | $ 72.66 | $ 72.52 | |||||||||||||
Convertible Preferred Stock [Member] | Maximum | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | 1.2399 | 1.2399 | ||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Long-term debt, including current maturities | $ 345,000,000 | $ 343,100,000 | $ 343,100,000 | $ 343,800,000 | $ 345,000,000 | |||||||||||
Equity Unit Shares Issuable Upon Conversion | 3,450,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||||||||||
Convertible notes payable due in 2018 (subordinated) | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Long-term debt, including current maturities | $ 632,500,000 | |||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | |||||||||||||||
Call Option [Member] | ||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, number of call options purchased | 3,100,000 | 9,100,000 | 12,200,000 | |||||||||||||
Option indexed to issuer's equity, premium amount | $ 73,500,000 | |||||||||||||||
Option indexed to issuer's equity, average premium price per share (USD per share) | $ 6.03 | |||||||||||||||
Option indexed to issuer's equity, average lower strike price (USD per share) | 86.07 | |||||||||||||||
Option indexed to issuer's equity, average upper strike price (USD per share) | $ 106.56 |
ACCUMULATED OTHER COMPREHENSI91
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,921.2) | $ (1,694.2) | $ (1,270.2) |
ACCUMULATED OTHER COMPREHENSI92
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,921.2) | $ (1,694.2) | $ (1,270.2) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (235.8) | (412.6) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 8.8 | (11.4) | |
Other Comprehensive Income (Loss), Net of Tax | (227) | (424) | (771.2) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,586.3) | (1,300.9) | (796.8) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (285.4) | (504.1) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (285.4) | (504.1) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (46.3) | (52.1) | (50.9) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 9.1 | 21.2 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3.3) | (22.4) | |
Other Comprehensive Income (Loss), Net of Tax | 5.8 | (1.2) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 88.6 | 11.8 | (37.2) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 76.8 | 49 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 76.8 | 49 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (377.2) | (353) | $ (385.3) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (36.3) | 21.3 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 12.1 | 11 | |
Other Comprehensive Income (Loss), Net of Tax | $ (24.2) | $ 32.3 |
ACCUMULATED OTHER COMPREHENSI93
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | $ (261.2) | $ (248.6) | $ (227.1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 6.6 | 42.3 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | 3.3 | 19.9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 3.3 | 22.4 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | 5.2 | 5.1 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (12.1) | (11) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | (17.3) | (16.1) | |
Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (6.9) | (6.4) | |
Cost of Sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 21.7 | 57.4 | |
Cost of Sales [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (10.4) | (9.7) | |
Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (15.1) | $ (15.1) |
EMPLOYEE BENEFIT PLANS - Expens
EMPLOYEE BENEFIT PLANS - Expense for Defined Contribution Plans Aside from ESOP Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Employee Benefits and Share-based Compensation | $ 4.3 | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 7.9 | $ 7.2 | $ 9.4 | |
Multi-employer plan expense | 5.1 | 4 | 4 | |
Other defined contribution plan expense | $ 15.4 | $ 11.7 | 14 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 219,492 | 184,753 | 230,032 | |
Employee Stock Ownership Plan (ESOP), Plan | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | 21,732 | |||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 4.2 | $ 4.4 | $ 3.4 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 13.9 | ||
Settlement / curtailment loss (gain) | 0.8 | ||
Pension Benefit, U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 9.4 | $ 7 | $ 8.9 |
Interest cost | 45.3 | 54 | 56.4 |
Expected return on plan assets | (67.9) | (74.9) | (72.1) |
Prior service cost amortization | 5.2 | 1.8 | 1.1 |
Actuarial loss amortization | 7.1 | 7.2 | 0.9 |
Settlement / curtailment loss (gain) | 0 | 0 | 0 |
Net periodic pension expense | (0.9) | (4.9) | (4.8) |
Pension Benefit, Non-U.S Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 12.5 | 14.4 | 13.1 |
Interest cost | 37 | 46.8 | 59.3 |
Expected return on plan assets | (44.5) | (56.5) | (61) |
Prior service cost amortization | 0.3 | 0.9 | 0.3 |
Actuarial loss amortization | 5.9 | 7.5 | 7 |
Settlement / curtailment loss (gain) | 0.7 | 1.5 | 0.3 |
Net periodic pension expense | $ 11.9 | $ 14.6 | $ 19 |
EMPLOYEE BENEFIT PLANS - Net 96
EMPLOYEE BENEFIT PLANS - Net Periodic Post-Retirement Benefit Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss (gain) | $ 0.8 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | $ 0.5 | $ 1 |
Interest cost | 1.7 | 2.1 | 2.7 |
Prior service credit amortization | (1.2) | (1.3) | (1.4) |
Actuarial loss amortization | 0 | 0 | (0.1) |
Net periodic pension expense | $ 1.1 | $ 1.3 | $ 2.2 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Current year actuarial loss | $ 122.1 |
Amortization of actuarial loss | (13) |
Prior service cost from plan amendments | (39.4) |
Amortization of prior service costs | 4.3 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (0.8) |
Currency / other | (31.1) |
Total loss recognized in other comprehensive income (pre-tax) | $ 33.5 |
EMPLOYEE BENEFIT PLANS - Chan98
EMPLOYEE BENEFIT PLANS - Changes in Pension and Other Post-Retirement Benefit Obligations, Fair Value Of Plan Assets, as well as Amounts Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current benefit liability | $ (644.3) | $ (669.4) | |
Pension Benefit, U.S. Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,385.7 | $ 1,460.5 | |
Service cost | 9.4 | 7 | 8.9 |
Interest cost | 45.3 | 54 | 56.4 |
Settlements/curtailments | 0 | 0 | |
Actuarial (gain) loss | 41.5 | (45.8) | |
Plan amendments | 1.8 | 5.8 | |
Foreign currency exchange rates | 0 | 0 | |
Participant contributions | 0 | 0 | |
Acquisitions, divestitures and other | (5.5) | (3.4) | |
Benefits paid | (119.2) | (92.4) | |
Benefit obligation at end of year | 1,359 | 1,385.7 | |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,081.5 | 1,174.1 | |
Actual return on plan assets | 90.9 | (19.3) | |
Participant contributions | 0 | 0 | |
Employer contributions | 19.4 | 22.5 | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Acquisitions, divestitures and other | (5.5) | (3.4) | |
Benefits paid | (119.2) | (92.4) | |
Fair value of plan assets at end of plan year | 1,067.1 | 1,081.5 | |
Net liability recognized | (291.9) | (304.2) | |
Unrecognized prior service cost (credit) | (5.8) | (9.1) | |
Unrecognized net actuarial loss | 267.2 | 255.8 | |
Unrecognized net transition obligation | 0 | 0 | |
Net amount recognized | (18.9) | (39.3) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0 | 0 | |
Current benefit liability | (25.8) | (11) | |
Non-current benefit liability | (266.1) | (293.2) | |
Net liability recognized | (291.9) | (304.2) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 5.8 | 9.1 | |
Actuarial loss | 267.2 | 255.8 | |
Unrecognized net transition obligation | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 273 | 264.9 | |
Net amount recognized | (18.9) | (39.3) | |
Pension Benefit, Non-U.S Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,374.2 | 1,540.4 | |
Service cost | 12.5 | 14.4 | 13.1 |
Interest cost | 37 | 46.8 | 59.3 |
Settlements/curtailments | (5.7) | (8) | |
Actuarial (gain) loss | 229.7 | (86.7) | |
Plan amendments | (40.4) | 0.2 | |
Foreign currency exchange rates | (190) | (76.2) | |
Participant contributions | 0.3 | 0.3 | |
Acquisitions, divestitures and other | (2) | (1.3) | |
Benefits paid | (55.8) | (55.7) | |
Benefit obligation at end of year | 1,359.8 | 1,374.2 | |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,047.3 | 1,115.7 | |
Actual return on plan assets | 169.4 | 8.3 | |
Participant contributions | 0.3 | 0.3 | |
Employer contributions | 29.5 | 35.5 | |
Settlements | (5.5) | (6.4) | |
Foreign currency exchange rate changes | (167.9) | (48.2) | |
Acquisitions, divestitures and other | (2) | (2.2) | |
Benefits paid | (55.8) | (55.7) | |
Fair value of plan assets at end of plan year | 1,015.3 | 1,047.3 | |
Net liability recognized | (344.5) | (326.9) | |
Unrecognized prior service cost (credit) | 35 | (2.3) | |
Unrecognized net actuarial loss | 296.7 | 233.5 | |
Unrecognized net transition obligation | 0.1 | 0.1 | |
Net amount recognized | (82.7) | (91) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.2 | 2.9 | |
Current benefit liability | (10) | (7.9) | |
Non-current benefit liability | (334.7) | (321.9) | |
Net liability recognized | (344.5) | (326.9) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (35) | 2.3 | |
Actuarial loss | 296.7 | 233.5 | |
Unrecognized net transition obligation | 0.1 | 0.1 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 261.8 | 235.9 | |
Net amount recognized | (82.7) | (91) | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 61 | 69.8 | |
Service cost | 0.6 | 0.5 | 1 |
Interest cost | 1.7 | 2.1 | 2.7 |
Settlements/curtailments | 0 | 0 | |
Actuarial (gain) loss | (0.7) | (2.1) | |
Plan amendments | (0.8) | 0 | |
Foreign currency exchange rates | 0.3 | (1.5) | |
Participant contributions | 0 | 0 | |
Acquisitions, divestitures and other | 0 | 0 | |
Benefits paid | (7.9) | (7.8) | |
Benefit obligation at end of year | 54.2 | 61 | |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 0 | $ 0 | |
Actual return on plan assets | 0 | 0 | |
Participant contributions | 0 | 0 | |
Employer contributions | 7.9 | 7.8 | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Acquisitions, divestitures and other | 0 | 0 | |
Benefits paid | (7.9) | (7.8) | |
Fair value of plan assets at end of plan year | 0 | 0 | |
Net liability recognized | (54.2) | (61) | |
Unrecognized prior service cost (credit) | 6.2 | 6.6 | |
Unrecognized net actuarial loss | 0.5 | 1.4 | |
Unrecognized net transition obligation | 0 | 0 | |
Net amount recognized | (59.9) | (66.2) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0 | 0 | |
Current benefit liability | (5.9) | (6.7) | |
Non-current benefit liability | (48.3) | (54.3) | |
Net liability recognized | (54.2) | (61) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (6.2) | (6.6) | |
Actuarial loss | 0.5 | 1.4 | |
Unrecognized net transition obligation | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | (5.7) | (5.2) | |
Net amount recognized | $ (59.9) | $ (66.2) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension Plans in which Accumulated Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,359 | $ 1,385.7 |
Accumulated benefit obligation | 1,353 | 1,383.9 |
Fair value of plan assets | 1,067.1 | 1,081.5 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,334.1 | 894.5 |
Accumulated benefit obligation | 1,290.7 | 855.5 |
Fair value of plan assets | $ 990.5 | $ 566.9 |
EMPLOYEE BENEFIT PLANS - Pen100
EMPLOYEE BENEFIT PLANS - Pension Plans in which Projected Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,359 | $ 1,385.7 |
Accumulated benefit obligation | 1,353 | 1,383.9 |
Fair value of plan assets | 1,067.1 | 1,081.5 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,359 | 921.7 |
Accumulated benefit obligation | 1,313.2 | 879.4 |
Fair value of plan assets | $ 1,014.4 | $ 591.9 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs (Detail) | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Weighted-average assumptions used to determine net periodic benefit cost: | ||||
Expected return on plan assets | 5.35% | |||
Pension Benefit, U.S. Plans | ||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||
Discount rate | 4.00% | 4.25% | 3.75% | |
Rate of compensation increase | 3.00% | 6.00% | 6.00% | |
Weighted-average assumptions used to determine net periodic benefit cost: | ||||
Discount rate | 4.25% | 3.75% | 4.50% | |
Rate of compensation increase | 6.00% | 6.00% | 6.00% | |
Expected return on plan assets | 6.50% | 6.50% | 7.00% | |
Pension Benefit, Non-U.S Plans | ||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||
Discount rate | 2.50% | 3.25% | 3.25% | |
Rate of compensation increase | 3.75% | 3.25% | 3.50% | |
Weighted-average assumptions used to determine net periodic benefit cost: | ||||
Discount rate | 3.25% | 3.25% | 4.00% | |
Rate of compensation increase | 3.25% | 3.50% | 3.75% | |
Expected return on plan assets | 4.75% | 5.25% | 5.75% | |
Other Benefits, U.S Plans | ||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||
Discount rate | 3.50% | 3.75% | 3.25% | |
Rate of compensation increase | 3.50% | 3.50% | 3.50% | |
Weighted-average assumptions used to determine net periodic benefit cost: | ||||
Discount rate | 3.75% | 3.25% | 4.00% | |
Rate of compensation increase | 3.50% | 3.50% | 3.50% | |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocations by Asset Category and Level of Valuation Inputs with in Fair Value Hierarchy (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Funded Percentage | 76.00% | 77.00% |
Level 1 | Defined Benefit Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 438.8 | $ 381.6 |
Level 1 | Defined Benefit Pension | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Defined Benefit Pension | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Defined Benefit Pension | Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 35.3 | 39.7 |
Level 1 | Defined Benefit Pension | Equity Securities | U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 100.7 | 50.4 |
Level 1 | Defined Benefit Pension | Equity Securities | Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 75.8 | 43.2 |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 227 | 248.3 |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | |
Level 2 | Defined Benefit Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,643.6 | 1,747.2 |
Level 2 | Defined Benefit Pension | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 35 | 33.2 |
Level 2 | Defined Benefit Pension | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 63.8 | 58.6 |
Level 2 | Defined Benefit Pension | Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 15.5 | 18.4 |
Level 2 | Defined Benefit Pension | Equity Securities | U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 203.1 | 245.9 |
Level 2 | Defined Benefit Pension | Equity Securities | Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 178.3 | 225.8 |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 460 | 448.4 |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 687.9 | 716.9 |
Fair Value | Defined Benefit Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,082.4 | 2,128.8 |
Fair Value | Defined Benefit Pension | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 35 | 33.2 |
Fair Value | Defined Benefit Pension | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 63.8 | 58.6 |
Fair Value | Defined Benefit Pension | Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 50.8 | 58.1 |
Fair Value | Defined Benefit Pension | Equity Securities | U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 303.8 | 296.3 |
Fair Value | Defined Benefit Pension | Equity Securities | Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 254.1 | 269 |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 687 | 696.7 |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 687.9 | $ 716.9 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Future Benefit Payments (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Expected Future Benefit Payments, ten Fiscal Years Thereafter | 10 years |
Total | $ 1,451.4 |
Year 1 | 187.9 |
Year 2 | 139.4 |
Year 3 | 137.3 |
Year 4 | 139.5 |
Year 5 | 141.6 |
Years 6-10 | $ 705.7 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)employee$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | Jan. 03, 2015USD ($)$ / shares | Dec. 28, 2013shares | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Allocations for benefits earned under the Cornerstone plan | $ 17.6 | $ 22.1 | $ 20.7 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 7.9 | $ 7.2 | 9.4 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 219,492 | 184,753 | 230,032 | |
Net income (expense) from ESOP activities | $ 3.1 | $ 0.8 | 0.7 | |
Defined benefit plans amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs | 15.1 | |||
Accumulated benefit obligation for defined benefit pension plans | $ 2,666.7 | 2,714 | ||
Weighted-average long-term rate of return assumption percentage used in determination of net periodic benefit expense | 5.35% | |||
Percentage of pension liabilities invested in fixed income securities | 50.00% | |||
Target allocations in equity securities minimum range | 25.00% | |||
Target allocations in equity securities maximum range | 45.00% | |||
Target allocations in fixed income securities minimum range | 50.00% | |||
Target allocations in fixed income securities maximum range | 70.00% | |||
Target allocations in other securities range, maximum | 10.00% | |||
Expected pension and other post retirement benefit plans | $ 65.6 | |||
Assumed health care cost trend rate for next year | 7.00% | |||
Assumed ultimate trend rate for health care cost | 4.50% | |||
Expected year when ultimate health care cost trend rate to be reached | 2,028 | |||
Medical and dental benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees covered by benefit plans | employee | 13,300 | |||
Employee Defined Contribution Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer contribution | $ 21.9 | $ 21.1 | $ 19.9 | |
Foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employees covered by pension plan | employee | 14,500 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 1.6 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 1.8 | |||
Employee Stock Ownership Plan (ESOP), Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit employer matches participant contributions percentage | 7.00% | |||
ESOP, average fair value of shares released | $ / shares | $ 112.12 | $ 101.79 | $ 88.05 | |
Dividends paid on the shares used to pay internal loan debt service | $ 9 | $ 9.7 | $ 10.6 | |
Interest costs incurred by ESOP | $ 3.1 | 3.8 | 4.7 | |
Number of ESOP shares allocated to participant accounts | shares | 14,145,330 | |||
Number of ESOP shares allocated to participant accounts held | shares | 2,386,937 | |||
Number of ESOP unallocated shares | shares | 1,396,027 | |||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | shares | 21,732 | |||
Employer cash contributions | $ 4.2 | $ 4.4 | $ 3.4 | |
Employee Stock Ownership Plan (ESOP), Plan | Core Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees covered by benefit plans | employee | 7,700 | |||
Employee Stock Ownership Plan (ESOP), Plan | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit employer matches participant contributions percentage | 1.00% | |||
Employee Stock Ownership Plan (ESOP), Plan | Minimum | Core Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer contribution (percent) | 2.00% | |||
Employee Stock Ownership Plan (ESOP), Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit employer matches participant contributions percentage | 25.00% | |||
Employee Stock Ownership Plan (ESOP), Plan | Maximum | Core Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer contribution (percent) | 6.00% |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Each of Hierarchy Levels (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 03, 2015 | Jan. 03, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | $ 110.2 | $ 79.3 | ||
Derivatives liabilities | 97.6 | 96.1 | ||
Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivatives liabilities | 0 | 0 | ||
Money market fund | 4.3 | 7 | ||
Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 110.2 | 79.3 | ||
Derivatives liabilities | 97.6 | 96.1 | ||
Money market fund | 0 | 0 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 110.2 | 79.3 | ||
Derivatives liabilities | 97.6 | 96.1 | ||
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 110.2 | 79.3 | ||
Derivatives liabilities | 97.6 | 96.1 | ||
Money market fund | $ 4.3 | $ 7 | ||
Security Spain & Italy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of Long-Lived Assets Held-for-use | $ 60.7 | $ 60.7 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Company's Financial Instruments Carrying and Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | $ 9.2 | $ 11.7 |
Long-term Debt, Fair Value | 3,967.4 | 4,034.4 |
Derivative assets | 110.2 | 79.3 |
Derivative liabilities | 97.6 | 96.1 |
Total Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 8.9 | 11.7 |
Long-term debt, including current portion | 3,823.1 | 3,797.2 |
Derivative assets | 110.2 | 79.3 |
Derivative liabilities | $ 97.6 | $ 96.1 |
OTHER COSTS AND EXPENSES - Addi
OTHER COSTS AND EXPENSES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Other Costs and Expenses [Abstract] | |||
Research and development costs | $ 204.4 | $ 188 | $ 174.6 |
RESTRUCTURING AND ASSET IMPA108
RESTRUCTURING AND ASSET IMPAIRMENTS - Summary of Restructuring Reserve Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 10.7 | $ 9.8 | $ 63.1 |
Restructuring Reserve | |||
Reserve, Beginning Balance | 58.7 | ||
Net Additions | 49 | ||
Usage | (71) | ||
Currency | (1.1) | ||
Reserve, Ending Balance | 35.6 | 58.7 | |
Facility closures | |||
Restructuring Reserve | |||
Reserve, Beginning Balance | 14.4 | ||
Net Additions | 21.7 | ||
Usage | (21) | ||
Currency | (0.9) | ||
Reserve, Ending Balance | 14.2 | 14.4 | |
Employee Severance [Member] | |||
Restructuring Reserve | |||
Reserve, Beginning Balance | 44.3 | ||
Net Additions | 27.3 | ||
Usage | (50) | ||
Currency | (0.2) | ||
Reserve, Ending Balance | 21.4 | $ 44.3 | |
2012 Actions | Series of Individually Immaterial Business Acquisitions | |||
Restructuring Reserve | |||
Net Additions | $ 49 |
RESTRUCTURING AND ASSET IMPA109
RESTRUCTURING AND ASSET IMPAIRMENTS - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)employee | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | $ 49 | ||
Number Of Employees Included In Plan | employee | 1,326 | ||
Asset impairments | $ 10.7 | $ 9.8 | $ 63.1 |
Restructuring reserves | 35.6 | $ 58.7 | |
Construction and Do It Yourself | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 13 | ||
Securities Industry [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 17 | ||
Industrial Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 9 | ||
Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 10 | ||
Acquisition | 2012 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 49 | ||
Severance and related charges | 27.3 | ||
Facility closure costs | $ 11 |
BUSINESS SEGMENTS AND GEOGRA110
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Business Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 2,920.4 | $ 2,882 | $ 2,932.4 | $ 2,672.1 | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630 | $ 11,406.9 | $ 11,171.8 | $ 11,338.6 |
Segment Profit | 1,840.5 | 1,749.6 | 1,684.2 | ||||||||
Corporate overhead | (197.2) | (164) | (177.4) | ||||||||
Other-net | (196.9) | (222) | (239.6) | ||||||||
Restructuring charges and asset impairments | (49) | (47.6) | (18.8) | ||||||||
Interest income | 23.2 | 15.2 | 13.6 | ||||||||
Interest expense | (194.5) | (180.4) | (177.2) | ||||||||
Earnings from continuing operations before income taxes | 1,226.1 | 1,150.8 | 1,084.8 | ||||||||
Capital and Software Expenditures | 347 | 311.4 | 291 | ||||||||
Depreciation and Amortization, Discontinued Operations | 0 | 0 | 5.6 | ||||||||
Depreciation and amortization of property, plant and equipment | 263.6 | 256.9 | 263.4 | ||||||||
Total Assets | (15,127.8) | (15,803.4) | (15,634.9) | (15,127.8) | (15,803.4) | ||||||
Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 7,469.2 | 7,140.7 | 7,033 | ||||||||
Segment Profit | 1,266.9 | 1,170.1 | 1,074.4 | ||||||||
Capital and Software Expenditures | 227.3 | 191.7 | 183 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 203 | 196.5 | 193.9 | ||||||||
Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 81.1 | 83.8 | 74.3 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 106.8 | 112.3 | 122.5 | ||||||||
Total Segments excluding Non Op [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization of property, plant and equipment | 408 | 414 | 449.8 | ||||||||
Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 38.6 | 35.9 | 27.9 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 98.2 | 105.2 | 127.8 | ||||||||
Corporate Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (545.4) | (268.1) | 101.1 | (545.4) | (268.1) | ||||||
Continuing Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (15,673.2) | (16,042) | (15,010.4) | (15,673.2) | (16,042) | ||||||
Continuing Operations [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (8,492.9) | (8,568.2) | (8,512.4) | (8,492.9) | (8,568.2) | ||||||
Continuing Operations [Member] | Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,840.3 | 1,938.2 | 2,044.4 | ||||||||
Segment Profit | 304.4 | 339.9 | 350.6 | ||||||||
Total Assets | (3,438.7) | (3,501.8) | (3,359) | (3,438.7) | (3,501.8) | ||||||
Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,097.4 | 2,092.9 | 2,261.2 | ||||||||
Segment Profit | 269.2 | 239.6 | 259.2 | ||||||||
Total Assets | (3,741.6) | (3,972) | (3,139) | (3,741.6) | (3,972) | ||||||
Discontinued operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 0 | 0 | 5.8 | ||||||||
Total Assets | $ 0 | $ (29.5) | $ (523.4) | $ 0 | $ (29.5) | ||||||
Home Depot [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 14.00% | 13.00% | 11.00% |
BUSINESS SEGMENTS AND GEOGRA111
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Areas (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | $ 2,920.4 | $ 2,882 | $ 2,932.4 | $ 2,672.1 | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630 | $ 11,406.9 | $ 11,171.8 | $ 11,338.6 |
Property, plant & equipment | 1,450.2 | 1,454.1 | 1,451.2 | 1,450.2 | 1,454.1 | ||||||
United States | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 6,135.6 | 5,882 | 5,492.4 | ||||||||
Property, plant & equipment | 676 | 639.7 | 663.4 | 676 | 639.7 | ||||||
Canada | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 515.3 | 516.3 | 591.3 | ||||||||
Property, plant & equipment | 19.1 | 20.9 | 29.3 | 19.1 | 20.9 | ||||||
Other Americas | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 635.6 | 706.5 | 788.4 | ||||||||
Property, plant & equipment | 82.6 | 82.2 | 95.8 | 82.6 | 82.2 | ||||||
FRANCE | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 582.7 | 595.7 | 695.6 | ||||||||
Property, plant & equipment | 64.8 | 74.7 | 57.5 | 64.8 | 74.7 | ||||||
Other Europe | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 2,468.6 | 2,371.5 | 2,585.3 | ||||||||
Property, plant & equipment | 328.4 | 333.2 | 322.3 | 328.4 | 333.2 | ||||||
Asia | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 1,069.1 | 1,099.8 | 1,185.6 | ||||||||
Property, plant & equipment | $ 279.3 | $ 303.4 | $ 282.9 | $ 279.3 | $ 303.4 |
BUSINESS SEGMENTS AND GEOGRA112
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Construction and Do It Yourself | Home Depot [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 14.00% | 13.00% | 11.00% |
Construction and Do It Yourself | Lowes | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 15.00% | 14.00% | 13.00% |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ (235.8) | $ (412.6) | |
Income Tax Reconciliation Change In Undistributed Earnings | 59.2 | 31 | $ 6 |
Deferred Tax Assets, Capital Loss Carryforwards | 0 | ||
Deferred tax liabilities: | |||
Depreciation | 108.7 | 99.6 | |
Amortization of intangibles | 851.2 | 868.5 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 260.7 | 319.9 | |
Discharge of Indebtedness | 6.2 | 9.3 | |
Inventories | 6.2 | 0 | |
Deferred revenue | 27.3 | 25.5 | |
Other | 61.7 | 66.8 | |
Total deferred tax liabilities | 1,322 | 1,389.6 | |
Deferred tax assets: | |||
Employee benefit plans | 362.5 | 361.1 | |
Doubtful accounts and other customer allowances | 19.3 | 19 | |
Deferred Tax Assets, Inventory | 0 | 16.1 | |
Accruals | 110.4 | 135.6 | |
Restructuring charges | 4.9 | 12.6 | |
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 590.3 | 562.5 | |
Currency and derivatives | 45.1 | 42.2 | |
Other | 126.7 | 82.7 | |
Total deferred tax assets | 1,259.2 | 1,231.8 | |
Net Deferred Tax Liabilities before Valuation Allowance | 62.8 | 157.8 | |
Valuation allowance | 525.5 | 480.7 | |
Net Deferred Tax Liabilities after Valuation Allowance | 588.3 | 638.5 | |
Discontinued Operations, Held-for-sale [Member] | |||
Deferred tax assets: | |||
Valuation allowance | 27.9 | ||
Accumulated Translation Adjustment [Member] | |||
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (285.4) | (504.1) | |
Income Tax Reconciliation Change In Undistributed Earnings | 20.5 | ||
income tax provision [Member] | |||
Valuation Allowance [Line Items] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 38.7 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Deferred tax assets: | |||
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 12.7 | $ 30.1 | |
United States | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Capital Loss Carryforwards | $ 671.2 |
INCOME TAXES - Classification o
INCOME TAXES - Classification of Deferred Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Reconciliation Change In Undistributed Earnings | $ 59.2 | $ 31 | $ 6 |
Valuation allowance | 525.5 | 480.7 | |
Operating Loss Carryforwards | 1,240 | ||
Deferred tax asset current | 0 | (85.4) | |
Deferred tax asset non-current | (147.1) | (120.5) | |
Total | (147.1) | (205.9) | |
Deferred tax liability current | 0 | 18.5 | |
Deferred tax liability non-current | 735.4 | 825.9 | |
Total | 735.4 | 844.4 | |
Deferred Tax Assets, Capital Loss Carryforwards | 0 | ||
income tax provision [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 38.7 | ||
Accumulated Translation Adjustment [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 20.5 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
unrecognized tax benefit, Increase (Decrease) | 12.7 | $ 30.1 | |
United States | |||
Deferred Tax Assets, Capital Loss Carryforwards | 671.2 | ||
Discontinued Operations, Held-for-sale [Member] | |||
Valuation allowance | $ 27.9 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) Attributable to Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Valuation allowance | $ 525.5 | $ 480.7 | |
Income Taxes Paid, Net | 233.3 | 191.6 | $ 113.7 |
Current: | |||
Federal | 84.8 | 64.4 | 18.4 |
Foreign | 191.5 | 171.4 | 141.1 |
State | 10.6 | 14.1 | 17.1 |
Total current | 286.9 | 249.9 | 176.6 |
Deferred: | |||
Federal | 18.2 | 64.2 | 55.3 |
Foreign | (26.1) | (47.3) | (19.3) |
State | (17.8) | (18.2) | 14.5 |
Total deferred | (25.7) | (1.3) | 42.4 |
Income taxes on continuing operations | 261.2 | 248.6 | 227.1 |
Income Tax Refund | 30.5 | 31 | 47.1 |
Continuing Operations [Member] | |||
Deferred: | |||
Total deferred | (25.7) | $ (1.3) | $ 50.5 |
Discontinued Operations, Held-for-sale [Member] | |||
Valuation allowance | $ 27.9 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Tax at statutory rate | $ 429.1 | $ 402.9 | $ 379.7 |
State income taxes, net of federal benefits | 12.5 | 14.9 | 24.3 |
Difference between foreign and federal income tax | (158.5) | (166.9) | (178) |
Tax accrual reserve | 32 | 43.9 | 1.1 |
Audit settlements | (10.5) | (1.3) | (5.3) |
NOL & Valuation Allowance related items | 31.1 | (21.6) | 2.7 |
Foreign dividends and related items | (13.7) | (19.1) | (25.6) |
Change in deferred tax liabilities on undistributed foreign earnings | (59.2) | (31) | (6) |
Statutory income tax rate change | 1.7 | 4.8 | (0.6) |
Tax Provision Basis Difference for Businesses Held for Sale | (27.9) | 0 | 0 |
Other-net | (23.3) | (18.8) | (16.4) |
Income taxes on continuing operations | 261.2 | $ 248.6 | $ 227.1 |
income tax provision [Member] | |||
Change in deferred tax liabilities on undistributed foreign earnings | $ (38.7) |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Refund | $ 30.5 | $ 31 | $ 47.1 |
Taxes Provided For On Repatriated Earnings | 1,229 | ||
United States | 305.9 | 405.5 | 234.4 |
Foreign | 920.2 | 745.3 | 850.4 |
Earnings from continuing operations before income taxes | 1,226.1 | $ 1,150.8 | $ 1,084.8 |
Deferred Tax Liability Related To Amounts That May Be Repatriated | $ 260.7 |
INCOME TAXES - Summary of Activ
INCOME TAXES - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 525.5 | $ 480.7 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 291.1 | 262.2 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | 283.1 | 280.8 | $ 269.5 |
Additions based on tax positions related to current year | 14.9 | 23.2 | 27.4 |
Additions based on tax positions related to prior years | 53.9 | 24.3 | 40.1 |
Reductions based on tax positions related to prior years | (34.2) | (14.3) | (30.9) |
Settlements | (5.4) | (21.5) | (5.9) |
Statute of limitations expirations | (13.3) | (9.4) | (19.4) |
Balance at end of year | 309.8 | 283.1 | 280.8 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 4.6 | 0.1 | 22 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 64.1 | 59.5 | $ 59.6 |
Adjustments for New Accounting Pronouncement [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
unrecognized tax benefit, Increase (Decrease) | $ 12.7 | $ 30.1 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 525.5 | $ 480.7 |
The Black & Decker Corporation | ||
Operating Loss Carryforwards [Line Items] | ||
Undistributed Earnings, Basic | $ 4,867 |
COMMITMENTS AND GUARANTEES - Ad
COMMITMENTS AND GUARANTEES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | $ 200 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 22.1 | ||
Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 67.2 | ||
Guarantee Obligations Maximum Potential Payment | 58.4 | ||
Guarantees on the residual values of leased properties | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 67.2 | ||
Guarantee Obligations Maximum Potential Payment | 58.4 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | ||
Standby letters of credit | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 71.1 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | ||
Commercial customer financing arrangements | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 70.5 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 22.1 | ||
Noncancelable Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Sublease rentals | 5.4 | ||
Rent expenses under operating lease | $ 124.2 | $ 121.5 | $ 135.9 |
COMMITMENTS AND GUARANTEES - Su
COMMITMENTS AND GUARANTEES - Summary of Future Commitements For Operating Lease Obligations (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Schedule of Operating Leases [Line Items] | |
Total | $ 474.2 |
2,013 | 127.8 |
2,014 | 98.9 |
2,015 | 78.1 |
2,016 | 46.9 |
2,017 | 35 |
Thereafter | 87.5 |
Operating lease obligations | |
Schedule of Operating Leases [Line Items] | |
Total | 404.5 |
2,013 | 94.5 |
2,014 | 78.2 |
2,015 | 62.4 |
2,016 | 46.9 |
2,017 | 35 |
Thereafter | 87.5 |
Marketing and other commitments | |
Schedule of Operating Leases [Line Items] | |
Total | 69.7 |
2,013 | 33.3 |
2,014 | 20.7 |
2,015 | 15.7 |
2,016 | 0 |
2,017 | 0 |
Thereafter | $ 0 |
COMMITMENTS AND GUARANTEES - Fi
COMMITMENTS AND GUARANTEES - Financial Guarantees (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 200 |
Carrying Amount of Liability | 22.1 |
Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 58.4 |
Carrying Amount of Liability | $ 0 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Term | P3Y |
Maximum Potential Payment | $ 71.1 |
Carrying Amount of Liability | $ 0 |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Term | P6Y |
Maximum Potential Payment | $ 70.5 |
Carrying Amount of Liability | $ 22.1 |
Minimum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P1Y |
Maximum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P4Y |
COMMITMENTS AND GUARANTEES - Ch
COMMITMENTS AND GUARANTEES - Changes in Carrying Amount of Product and Service Warranties (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Summary of warranty liability activity | |||
Beginning balance | $ 105.4 | $ 109.6 | $ 121.1 |
Warranties and guarantees issued | 97.2 | 91.8 | 98 |
Warranty payments and currency | (99.2) | (96) | (109.5) |
Ending balance | $ 103.4 | $ 105.4 | $ 109.6 |
CONTINGENCIES - Additional Info
CONTINGENCIES - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)sites | Jan. 02, 2016USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Superfund Sites | sites | 31 | |
Reserve for environmental loss contingencies, EPA funded amount | $ 13.2 | |
Environmental remediation. Period construction of treatment facility to be maintained | 30 years | |
Undiscounted environmental liability expected to be paid 2013 | $ 6.7 | |
Accrual for Environmental Loss Contingencies, Undiscounted, Second Year | 5.6 | |
Undiscounted environmental liability expected to be paid in 2015 | 3 | |
Undiscounted environmental liability expected to be paid in 2016 | 3 | |
Undiscounted environmental liability expected to be paid in 2017 | 3 | |
Undiscounted environmental liability expected to be paid thereafter | 37.2 | |
Leased Sites | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Discounted environmental liability | 48.6 | |
Undiscounted environmental liability | 58.5 | |
Centredale Site | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Reserve for environmental remediation costs | 68.1 | |
Property, Plant and Equipment, Other Types | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Reserve for environmental remediation costs | 160.9 | $ 170.7 |
Reserve for environmental remediation costs, current | 18.9 | |
Reserve for environmental remediation costs, noncurrent | 142 | |
Reserve for environmental loss contingencies, obligation after EPA funding | $ 147.7 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental liability discount rate | 0.30% | |
Minimum | Centredale Site | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 68.1 | |
Minimum | Property, Plant and Equipment, Other Types | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 128.3 | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental liability discount rate | 3.00% | |
Maximum | Centredale Site | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 139.7 | |
Maximum | Property, Plant and Equipment, Other Types | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 267.1 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Apr. 01, 2017USD ($) | Jan. 03, 2015USD ($) | Sep. 28, 2013Entity | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 725 | |||||
Accounts and notes receivable, net | 35.3 | |||||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax | 43.9 | $ 28 | $ 31.6 | |||
Inventories, net | 33.2 | |||||
Property, Plant and Equipment, net | 52.3 | |||||
Goodwill and other intangibles, net | 399.8 | |||||
Other Assets | 2.8 | |||||
Total assets | 523.4 | |||||
Accounts payable and accrued expenses | 38 | |||||
Other liabilities | 15.5 | |||||
Liabilities held for sale | 53.5 | 0 | ||||
Small Business in Security Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | 725 | |||||
Other Businesses [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number Of Entities Classified As Held for Sale | Entity | 2 | |||||
Security Spain & Italy [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liabilities held for sale | $ 53.5 | $ 0 | ||||
Security Spain & Italy [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 60.7 | $ 60.7 | ||||
Subsequent Event [Member] | small business in Tools & Storage segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 25 |
DISCONTINUED OPERATIONS - Opera
DISCONTINUED OPERATIONS - Operating Results of Divested Businesses (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | $ 0 | $ 523.4 | $ 0 | ||||||||
Operating results of discontinued operations: | |||||||||||
Net Sales | 39.4 | $ 118.4 | |||||||||
(Loss) earnings from discontinued operations before income taxes (including pretax gain on HHI sale of $384.7 million in 2012) | 0 | 19.3 | 104 | ||||||||
Income tax (benefit) expense on discontinued operations (including income taxes associated with the gain on HHI sale of $25.8 million in 2012) | 0 | (0.8) | 7.7 | ||||||||
Net loss from discontinued operations | 0 | $ 0 | $ 0 | $ 0 | $ (1.7) | $ (5.4) | $ (8.5) | $ (4.5) | 0 | (20.1) | $ (96.3) |
Carrying amounts of assets and liabilites of discontinued operations | |||||||||||
Assets Held-for-sale, Current | 0 | 523.4 | 0 | ||||||||
Liabilities of Assets Held-for-sale | 0 | 53.5 | 0 | ||||||||
Security Spain & Italy [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 523.4 | ||||||||||
Liabilities of Disposal Group, Including Discontinued Operation, Current | $ 0 | 53.5 | $ 0 | ||||||||
Carrying amounts of assets and liabilites of discontinued operations | |||||||||||
Assets Held-for-sale, Current | $ 523.4 |
SELECTED QUARTERLY FINANCIAL127
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA- Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
merger and acquisition related charges [Abstract] | |
Net Additions | $ 49 |
SELECTED QUARTERLY FINANCIAL128
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net Sales | $ 2,920.4 | $ 2,882 | $ 2,932.4 | $ 2,672.1 | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630 | $ 11,406.9 | $ 11,171.8 | $ 11,338.6 |
Gross Profit | 1,076.6 | 1,084.1 | 1,128.9 | 977.6 | 1,014.2 | 1,027 | 1,057.2 | 973.6 | 4,267.2 | 4,072 | |
Selling, General and Administrative Expense, Total including Allowance for Doubtful Accounts | 683.8 | 645.4 | 666.9 | 627.8 | 610.6 | 608.3 | 644.5 | 623 | 2,623.9 | 2,486.4 | |
Earnings from continuing operations | 255.8 | 249 | 271.5 | 188.6 | 267.3 | 233.4 | 235.5 | 166 | 964.9 | 902.2 | 857.7 |
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | 0.3 | 0.1 | 0 | (0.8) | 0.1 | (0.7) | (0.2) | (0.8) | (0.4) | (1.6) | 0.5 |
Net earnings from continuing operations attributable to common shareowners | 255.5 | 248.9 | 271.5 | 189.4 | 267.2 | 234.1 | 235.7 | 166.8 | 965.3 | 903.8 | 857.2 |
Net loss from discontinued operations | 0 | 0 | 0 | 0 | (1.7) | (5.4) | (8.5) | (4.5) | 0 | (20.1) | (96.3) |
Net Earnings Attributable to Common Shareowners | $ 255.5 | $ 248.9 | $ 271.5 | $ 189.4 | $ 265.5 | $ 228.7 | $ 227.2 | $ 162.3 | $ 965.3 | $ 883.7 | $ 760.9 |
Continuing operations (USD per share) | $ 1.74 | $ 1.71 | $ 1.87 | $ 1.30 | $ 1.83 | $ 1.60 | $ 1.59 | $ 1.10 | $ 6.61 | $ 6.10 | $ 5.49 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | (0.01) | (0.04) | (0.06) | (0.03) | 0 | (0.14) | (0.62) |
Total basic earnings per share of common stock (USD per share) | 1.74 | 1.71 | 1.87 | 1.30 | 1.82 | 1.57 | 1.53 | 1.07 | 6.61 | 5.96 | 4.87 |
Continuing operations (USD per share) | 1.71 | 1.68 | 1.84 | 1.28 | 1.78 | 1.55 | 1.54 | 1.07 | 6.51 | 5.92 | 5.37 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | (0.01) | (0.04) | (0.06) | (0.03) | 0 | (0.13) | (0.60) |
Total diluted earnings per share of common stock (USD per share) | $ 1.71 | $ 1.68 | $ 1.84 | $ 1.28 | $ 1.77 | $ 1.52 | $ 1.49 | $ 1.04 | $ 6.51 | $ 5.79 | $ 4.76 |