|
|
| THE SUPPLEMENTAL FINANCIAL INFORMATION BELOW REFLECTS THE 2018 ADOPTION OF ASU 2014-09 AND 2017-07 |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FIRST QUARTER 2017 | | SECOND QUARTER 2017 | | THIRD QUARTER 2017 |
| | | Reported1 | | Acquisition- Related Charges and Other2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges and Other2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges and Other2 | | Normalized3 |
| Net Sales | | $ | 2,856.3 |
| | $ | — |
| | $ | 2,856.3 |
| | $ | 3,286.7 |
| | $ | — |
| | $ | 3,286.7 |
| | $ | 3,359.4 |
| | $ | — |
| | $ | 3,359.4 |
|
| Gross margin | | 1,066.0 |
| | 6.8 |
| | 1,072.8 |
| | 1,213.3 |
| | 26.1 |
| | 1,239.4 |
| | 1,253.0 |
| | 9.6 |
| | 1,262.6 |
|
| % of Net Sales | | 37.3 | % | | | | 37.6 | % | | 36.9 | % | | | | 37.7 | % | | 37.3 | % | | | | 37.6 | % |
| Selling, general and administrative | | 690.3 |
| | (10.7 | ) | | 679.6 |
| | 744.2 |
| | (8.7 | ) | | 735.5 |
| | 768.9 |
| | (7.4 | ) | | 761.5 |
|
| % of Net Sales | | 24.2 | % | | | | 23.8 | % | | 22.6 | % | | | | 22.4 | % | | 22.9 | % | | | | 22.7 | % |
| Operating margin | | 375.7 |
| | 17.5 |
| | 393.2 |
| | 469.1 |
| | 34.8 |
| | 503.9 |
| | 484.1 |
| | 17.0 |
| | 501.1 |
|
| % of Net Sales | | 13.2 | % | | | | 13.8 | % | | 14.3 | % | | | | 15.3 | % | | 14.4 | % | | | | 14.9 | % |
| Earnings before income taxes | | 473.4 |
| | (211.2 | ) | | 262.2 |
| | 358.3 |
| | 43.0 |
| | 401.3 |
| | 354.4 |
| | 33.3 |
| | 387.7 |
|
| Income taxes | | 79.7 |
| | (14.1 | ) | | 65.6 |
| | 80.7 |
| | 13.6 |
| | 94.3 |
| | 79.9 |
| | 9.3 |
| | 89.2 |
|
| Net earnings attributable to common shareowners | | 393.7 |
| | (197.1 | ) | | 196.6 |
| | 277.6 |
| | 29.4 |
| | 307.0 |
| | 274.5 |
| | 24.0 |
| | 298.5 |
|
| Diluted earnings per share of common stock | | $ | 2.60 |
| | $ | (1.30 | ) | | $ | 1.30 |
| | $ | 1.82 |
| | $ | 0.19 |
| | $ | 2.02 |
| | $ | 1.80 |
| | $ | 0.15 |
| | $ | 1.96 |
|
| | | | | | | | | | | | | | | | | | | |
| | | FOURTH QUARTER 2017 | | YEAR-TO-DATE 2017 | | | | YEAR-TO-DATE 2016 | | |
| | | Reported1 | | Acquisition- Related Charges and Other2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges and Other2 | | Normalized3 | | | | Reported1 | | |
| Net Sales | | $ | 3,464.2 |
| | $ | — |
| | $ | 3,464.2 |
| | $ | 12,966.6 |
| | $ | — |
| | $ | 12,966.6 |
| | | | $ | 11,593.5 |
| | |
| Gross margin | | 1,246.0 |
| | 4.3 |
| | 1,250.3 |
| | 4,778.3 |
| | 46.8 |
| | 4,825.1 |
| | | | 4,268.0 |
| | |
| % of Net Sales | | 36.0 | % | | | | 36.1 | % | | 36.9 | % | | | | 37.2 | % | | | | 36.8 | % | | |
| Selling, general and administrative | | 795.8 |
| | (10.9 | ) | | 784.9 |
| | 2,999.2 |
| | (37.7 | ) | | 2,961.5 |
| | | | 2,632.5 |
| | |
| % of Net Sales | | 23.0 | % | | | | 22.7 | % | | 23.1 | % | | | | 22.8 | % | | | | 22.7 | % | | |
| Operating margin | | 450.2 |
| | 15.2 |
| | 465.4 |
| | 1,779.1 |
| | 84.5 |
| | 1,863.6 |
| | | | 1,635.5 |
| | |
| % of Net Sales | | 13.0 | % | | | | 13.4 | % | | 13.7 | % | | | | 14.4 | % | | | | 14.1 | % | | |
| Earnings before income taxes | | 341.7 |
| | 27.1 |
| | 368.8 |
| | 1,527.8 |
| | (107.8 | ) | | 1,420.0 |
| | | | 1,229.3 |
| | |
| Income taxes | | 60.6 |
| | (26.1 | ) | | 34.5 |
| | 300.9 |
| | (17.3 | ) | | 283.6 |
| | | | 261.7 |
| | |
| Net earnings attributable to common shareowners | | 281.5 |
| | 53.2 |
| | 334.7 |
| | 1,227.3 |
| | (90.5 | ) | | 1,136.8 |
| | | | 968.0 |
| | |
| Diluted earnings per share of common stock | | $ | 1.84 |
| | $ | 0.34 |
| | $ | 2.18 |
| | $ | 8.05 |
| | $ | (0.59 | ) | | $ | 7.46 |
| | | | $ | 6.53 |
| | |
|
| |
| 1 | Reported, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07. These new standards will be adopted by the Company in the first quarter of 2018 and will be applied retrospectively. |
| 2 | Acquisition-related charges and other relates primarily to inventory step-up, integration and consulting costs, gains or losses on sales of businesses, and a one-time net tax charge related to the recently enacted U.S. tax legislation. |
| 3 | The normalized 2017 information, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07, as reconciled to GAAP adjusted for these impacts above, is considered relevant to aid analysis of the Company's margin and earnings results aside from the material impact of the acquisition-related charges, gains or losses on sales of businesses, and a one-time net tax charge related to the recently enacted U.S. tax legislation. |
|
|
| THE SUPPLEMENTAL FINANCIAL INFORMATION BELOW REFLECTS THE 2018 ADOPTION OF ASU 2014-09 AND 2017-07 |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FIRST QUARTER 2017 | | SECOND QUARTER 2017 | | THIRD QUARTER 2017 |
| (Unaudited, Millions of Dollars) | | Reported1 | | Acquisition- Related Charges2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges2 | | Normalized3 |
| NET SALES | | | | | |
| | | | | | | | | | | | |
| Tools & Storage | | $ | 1,894.9 |
| | $ | — |
| | $ | 1,894.9 |
| | $ | 2,307.4 |
| | $ | — |
| | $ | 2,307.4 |
| | $ | 2,369.2 |
| | $ | — |
| | $ | 2,369.2 |
|
| Industrial | | 479.7 |
| | — |
| | 479.7 |
| | 503.4 |
| | — |
| | 503.4 |
| | 510.9 |
| | — |
| | 510.9 |
|
| Security | | 481.7 |
| | — |
| | 481.7 |
| | 475.9 |
| | — |
| | 475.9 |
| | 479.3 |
| | — |
| | 479.3 |
|
| Total | | $ | 2,856.3 |
| | $ | — |
| | $ | 2,856.3 |
| | $ | 3,286.7 |
| | $ | — |
| | $ | 3,286.7 |
| | $ | 3,359.4 |
| | $ | — |
| | $ | 3,359.4 |
|
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | $ | 284.5 |
| | $ | 17.3 |
| | $ | 301.8 |
| | $ | 371.9 |
| | $ | 34.1 |
| | $ | 406.0 |
| | $ | 394.1 |
| | $ | 16.8 |
| | $ | 410.9 |
|
| Industrial | | 85.1 |
| | — |
| | 85.1 |
| | 94.7 |
| | — |
| | 94.7 |
| | 92.2 |
| | — |
| | 92.2 |
|
| Security | | 50.7 |
| | 0.2 |
| | 50.9 |
| | 51.8 |
| | 0.7 |
| | 52.5 |
| | 54.0 |
| | — |
| | 54.0 |
|
| Segment Profit | | 420.3 |
| | 17.5 |
| | 437.8 |
| | 518.4 |
| | 34.8 |
| | 553.2 |
| | 540.3 |
| | 16.8 |
| | 557.1 |
|
| Corporate Overhead | | (44.6 | ) | | — |
| | (44.6 | ) | | (49.3 | ) | | — |
| | (49.3 | ) | | (56.2 | ) | | 0.2 |
| | (56.0 | ) |
| Total | | $ | 375.7 |
| | $ | 17.5 |
| | $ | 393.2 |
| | $ | 469.1 |
| | $ | 34.8 |
| | $ | 503.9 |
| | $ | 484.1 |
| | $ | 17.0 |
| | $ | 501.1 |
|
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | 15.0 | % | | | | 15.9 | % | | 16.1 | % | | | | 17.6 | % | | 16.6 | % | | | | 17.3 | % |
| Industrial | | 17.7 | % | | | | 17.7 | % | | 18.8 | % | | | | 18.8 | % | | 18.0 | % | | | | 18.0 | % |
| Security | | 10.5 | % | | | | 10.6 | % | | 10.9 | % | | | | 11.0 | % | | 11.3 | % | | | | 11.3 | % |
| Segment Profit | | 14.7 | % | | | | 15.3 | % | | 15.8 | % | | | | 16.8 | % | | 16.1 | % | | | | 16.6 | % |
| Corporate Overhead | | (1.6 | )% | | | | (1.6 | )% | | (1.5 | )% | | | | (1.5 | )% | | (1.7 | )% | | | | (1.7 | )% |
| Total | | 13.2 | % | | | | 13.8 | % | | 14.3 | % | | | | 15.3 | % | | 14.4 | % | | | | 14.9 | % |
| | | FOURTH QUARTER 2017 | | YEAR-TO-DATE 2017 | | | | YEAR-TO-DATE 2016 | | |
| (Unaudited, Millions of Dollars) | | Reported1 | | Acquisition- Related Charges2 | | Normalized3 | | Reported1 | | Acquisition- Related Charges2 | | Normalized3 | | | | Reported1 | | |
| NET SALES | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | $ | 2,473.5 |
| | $ | — |
| | $ | 2,473.5 |
| | $ | 9,045.0 |
| | $ | — |
| | $ | 9,045.0 |
| | | | $ | 7,619.2 |
| |
|
|
| Industrial | | 480.3 |
| | — |
| | 480.3 |
| | 1,974.3 |
| | — |
| | 1,974.3 |
| | | | 1,864.0 |
| |
|
|
| Security | | 510.4 |
| | — |
| | 510.4 |
| | 1,947.3 |
| | — |
| | 1,947.3 |
| | | | 2,110.3 |
| |
|
|
| Total | | $ | 3,464.2 |
| | $ | — |
| | $ | 3,464.2 |
| | $ | 12,966.6 |
| | $ | — |
| | $ | 12,966.6 |
| |
|
| | $ | 11,593.5 |
| |
|
|
SEGMENT PROFIT | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | $ | 388.4 |
| | $ | 13.6 |
| | $ | 402.0 |
| | $ | 1,438.9 |
| | $ | 81.8 |
| | $ | 1,520.7 |
| | | | $ | 1,258.4 |
| |
|
|
| Industrial | | 73.9 |
| | — |
| | 73.9 |
| | 345.9 |
| | — |
| | 345.9 |
| | | | 300.1 |
| |
|
|
| Security | | 55.2 |
| | 1.1 |
| | 56.3 |
| | 211.7 |
| | 2.0 |
| | 213.7 |
| | | | 267.9 |
| |
|
|
| Segment Profit | | 517.5 |
| | 14.7 |
| | 532.2 |
| | 1,996.5 |
| | 83.8 |
| | 2,080.3 |
| |
|
| | 1,826.4 |
| |
|
|
| Corporate Overhead | | (67.3 | ) | | 0.5 |
| | (66.8 | ) | | (217.4 | ) | | 0.7 |
| | (216.7 | ) | | | | (190.9 | ) | |
|
|
| Total | | $ | 450.2 |
| | $ | 15.2 |
| | $ | 465.4 |
| | $ | 1,779.1 |
| | $ | 84.5 |
| | $ | 1,863.6 |
| |
|
| | $ | 1,635.5 |
| |
|
|
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | 15.7 | % | | | | 16.3 | % | | 15.9 | % | | | | 16.8 | % | | | | 16.5 | % | | |
| Industrial | | 15.4 | % | | | | 15.4 | % | | 17.5 | % | | | | 17.5 | % | | | | 16.1 | % | | |
| Security | | 10.8 | % | | | | 11.0 | % | | 10.9 | % | | | | 11.0 | % | | | | 12.7 | % | | |
| Segment Profit | | 14.9 | % | | | | 15.4 | % | | 15.4 | % | | | | 16.0 | % | | | | 15.8 | % | | |
| Corporate Overhead | | (1.9 | )% | | | | (1.9 | )% | | (1.7 | )% | | | | (1.7 | )% | | | | (1.6 | )% | | |
| Total | | 13.0 | % | | | | 13.4 | % | | 13.7 | % | | | | 14.4 | % | |
|
| | 14.0 | % | |
|
|
|
| |
| 1 | Reported, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07. These new standards will be adopted by the Company in the first quarter of 2018 and will be applied retrospectively. |
| 2 | Acquisition-related charges relate primarily to inventory step-up, integration and consulting costs. |
| 3 | The normalized 2017 information, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07, as reconciled to GAAP adjusted for these impacts above, is considered relevant to aid analysis of the Company's segment profit results aside from the material impact of the acquisition-related charges. |
