STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | First Quarter 2021 | | Second Quarter 2021 | | Third Quarter 2021 | | Year-to-Date 2021 |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| Net Sales | $ | 3,803.5 | | | $ | — | | | $ | 3,803.5 | | | $ | 3,880.0 | | | $ | — | | | $ | 3,880.0 | | | $ | 3,865.4 | | | $ | — | | | $ | 3,865.4 | | | $ | 11,548.9 | | | $ | — | | | $ | 11,548.9 | |
| Gross profit | 1,413.7 | | | 4.4 | | | 1,418.1 | | | 1,386.4 | | | 1.3 | | | 1,387.7 | | | 1,241.6 | | | 5.1 | | | 1,246.7 | | | 4,041.7 | | | 10.8 | | | 4,052.5 | |
| % of Net Sales | 37.2 | % | | | | 37.3 | % | | 35.7 | % | | | | 35.8 | % | | 32.1 | % | | | | 32.3 | % | | 35.0 | % | | | | 35.1 | % |
| Selling, general and administrative | 731.3 | | | (15.1) | | | 716.2 | | | 778.5 | | | (18.5) | | | 760.0 | | | 783.8 | | | (18.7) | | | 765.1 | | | 2,293.6 | | | (52.3) | | | 2,241.3 | |
| % of Net Sales | 19.2 | % | | | | 18.8 | % | | 20.1 | % | | | | 19.6 | % | | 20.3 | % | | | | 19.8 | % | | 19.9 | % | | | | 19.4 | % |
| Operating profit | 682.4 | | | 19.5 | | | 701.9 | | | 607.9 | | | 19.8 | | | 627.7 | | | 457.8 | | | 23.8 | | | 481.6 | | | 1,748.1 | | | 63.1 | | | 1,811.2 | |
| % of Net Sales | 17.9 | % | | | | 18.5 | % | | 15.7 | % | | | | 16.2 | % | | 11.8 | % | | | | 12.5 | % | | 15.1 | % | | | | 15.7 | % |
| Earnings from continuing operations before income taxes and equity interest | 587.0 | | | 23.9 | | | 610.9 | | | 508.4 | | | 33.3 | | | 541.7 | | | 384.7 | | | 32.5 | | | 417.2 | | | 1,480.1 | | | 89.7 | | | 1,569.8 | |
| Income taxes on continuing operations | 118.4 | | | 6.0 | | | 124.4 | | | 70.1 | | | 8.4 | | | 78.5 | | | 0.5 | | | 6.8 | | | 7.3 | | | 189.0 | | | 21.2 | | | 210.2 | |
| Share of net earnings of equity method investment | 1.8 | | | 0.2 | | | 2.0 | | | 4.4 | | | 11.0 | | | 15.4 | | | 9.8 | | | — | | | 9.8 | | | 16.0 | | | 11.2 | | | 27.2 | |
| Net earnings from continuing operations attributable to common shareowners - Diluted4 | 461.8 | | | 18.1 | | | 479.9 | | | 439.2 | | | 35.9 | | | 475.1 | | | 394.5 | | | 25.7 | | | 420.2 | | | 1,295.5 | | | 79.7 | | | 1,375.2 | |
| Diluted earnings per share of common stock - Continuing operations4 | $ | 2.81 | | | $ | 0.11 | | | $ | 2.92 | | | $ | 2.66 | | | $ | 0.22 | | | $ | 2.88 | | | $ | 2.39 | | | $ | 0.15 | | | $ | 2.54 | | | $ | 7.86 | | | $ | 0.48 | | | $ | 8.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. |
| 2 | Acquisition-related charges and other relate primarily to functional transformation initiatives, deal costs, facility-related costs and restructuring. |
| 3 | The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods. |
| 4 | Results reflect the restatement of historical financial statements to correct errors related to the accounting for Equity Units as disclosed in the Company's Form 8-K filed on January 26, 2022. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | First Quarter 2020 | | Second Quarter 2020 | | Third Quarter 2020 |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| Net Sales | $ | 2,760.6 | | | $ | — | | | $ | 2,760.6 | | | $ | 2,806.3 | | | $ | — | | | $ | 2,806.3 | | | $ | 3,488.1 | | | $ | — | | | $ | 3,488.1 | |
| Gross profit | 882.7 | | | 8.6 | | | 891.3 | | | 886.5 | | | 37.4 | | | 923.9 | | | 1,231.9 | | | 6.5 | | | 1,238.4 | |
| % of Net Sales | 32.0 | % | | | | 32.3 | % | | 31.6 | % | | | | 32.9 | % | | 35.3 | % | | | | 35.5 | % |
| Selling, general and administrative | 630.6 | | | (17.2) | | | 613.4 | | | 618.3 | | | (59.4) | | | 558.9 | | | 632.1 | | | (27.3) | | | 604.8 | |
| % of Net Sales | 22.8 | % | | | | 22.2 | % | | 22.0 | % | | | | 19.9 | % | | 18.1 | % | | | | 17.3 | % |
| Operating profit | 252.1 | | | 25.8 | | | 277.9 | | | 268.2 | | | 96.8 | | | 365.0 | | | 599.8 | | | 33.8 | | | 633.6 | |
| % of Net Sales | 9.1 | % | | | | 10.1 | % | | 9.6 | % | | | | 13.0 | % | | 17.2 | % | | | | 18.2 | % |
| Earnings from continuing operations before income taxes and equity interest | 135.8 | | | 46.9 | | | 182.7 | | | 118.2 | | | 135.3 | | | 253.5 | | | 445.6 | | | 77.4 | | | 523.0 | |
| Income taxes on continuing operations | 11.3 | | | 9.6 | | | 20.9 | | | (112.5) | | | 151.2 | | | 38.7 | | | 76.0 | | | 18.1 | | | 94.1 | |
| Share of net earnings (losses) of equity method investment | (0.2) | | | 1.0 | | | 0.8 | | | 10.3 | | | 3.2 | | | 13.5 | | | 4.0 | | | 2.7 | | | 6.7 | |
| Net earnings from continuing operations attributable to common shareowners - Diluted4 | 124.8 | | | 38.3 | | | 163.1 | | | 236.3 | | | (12.7) | | | 223.6 | | | 364.0 | | | 62.0 | | | 426.0 | |
| Diluted earnings per share of common stock - Continuing operations4 | $ | 0.77 | | | $ | 0.24 | | | $ | 1.01 | | | $ | 1.46 | | | $ | (0.08) | | | $ | 1.38 | | | $ | 2.24 | | | $ | 0.38 | | | $ | 2.62 | |
| | | | | | | | | | | | | | | | | | |
| | Fourth Quarter 2020 | | Year-to-Date 2020 | | | | | | |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | | | | | |
| Net Sales | $ | 4,002.7 | | | $ | — | | | $ | 4,002.7 | | | $ | 13,057.7 | | | $ | — | | | $ | 13,057.7 | | | | | | | |
| Gross profit | 1,404.3 | | | 9.2 | | | 1,413.5 | | | 4,405.4 | | | 61.7 | | | 4,467.1 | | | | | | | |
| % of Net Sales | 35.1 | % | | | | 35.3 | % | | 33.7 | % | | | | 34.2 | % | | | | | | |
| Selling, general and administrative | 747.5 | | | (19.3) | | | 728.2 | | | 2,628.5 | | | (123.2) | | | 2,505.3 | | | | | | | |
| % of Net Sales | 18.7 | % | | | | 18.2 | % | | 20.1 | % | | | | 19.2 | % | | | | | | |
| Operating profit | 656.8 | | | 28.5 | | | 685.3 | | | 1,776.9 | | | 184.9 | | | 1,961.8 | | | | | | | |
| % of Net Sales | 16.4 | % | | | | 17.1 | % | | 13.6 | % | | | | 15.0 | % | | | | | | |
| Earnings from continuing operations before income taxes and equity interest | 520.2 | | | 66.3 | | | 586.5 | | | 1,219.8 | | | 325.9 | | | 1,545.7 | | | | | | | |
| Income taxes on continuing operations | 68.2 | | | 13.6 | | | 81.8 | | | 43.0 | | | 192.5 | | | 235.5 | | | | | | | |
| Share of net earnings (losses) of equity method investment | (5.0) | | | 2.9 | | | (2.1) | | | 9.1 | | | 9.8 | | | 18.9 | | | | | | | |
| Net earnings from continuing operations attributable to common shareowners - Diluted4 | 437.5 | | | 55.6 | | | 493.1 | | | 1,162.6 | | | 143.2 | | | 1,305.8 | | | | | | | |
| Diluted earnings per share of common stock - Continuing operations4 | $ | 2.68 | | | $ | 0.34 | | | $ | 3.02 | | | $ | 7.16 | | | $ | 0.88 | | | $ | 8.04 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. |
| 2 | Acquisition-related charges and other relate primarily to a cost reduction program, charges related to the extinguishment of debt, a net loss on the sales of businesses, inventory step-up charges, deal costs and margin resiliency initiatives, partially offset by a release of a contingent consideration liability relating to the CAM acquisition and a one-time tax benefit related to a supply chain reorganization. |
| 3 | The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods. |
| 4 | Results reflect the restatement of historical financial statements to correct errors related to the accounting for Equity Units as disclosed in the Company's Form 8-K filed on January 26, 2022. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | First Quarter 2021 | | Second Quarter 2021 | | Third Quarter 2021 | | Year-To-Date 2021 |
| | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| NET SALES | | | | | | | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | $ | 3,062.9 | | | $ | — | | | $ | 3,062.9 | | | $ | 3,196.5 | | | $ | — | | | $ | 3,196.5 | | | $ | 3,185.9 | | | $ | — | | | $ | 3,185.9 | | | $ | 9,445.3 | | | $ | — | | | $ | 9,445.3 | |
| Industrial | | 657.7 | | | — | | | 657.7 | | | 602.2 | | | — | | | 602.2 | | | 593.5 | | | — | | | 593.5 | | | 1,853.4 | | | — | | | 1,853.4 | |
| Segment Net Sales | | 3,720.6 | | | — | | | 3,720.6 | | | 3,798.7 | | | — | | | 3,798.7 | | | 3,779.4 | | | — | | | 3,779.4 | | | 11,298.7 | | | — | | | 11,298.7 | |
| Corporate Overhead & Other | | 82.9 | | | — | | | 82.9 | | | 81.3 | | | — | | | 81.3 | | | 86.0 | | | — | | | 86.0 | | | 250.2 | | | — | | | 250.2 | |
| Total | | $ | 3,803.5 | | | $ | — | | | $ | 3,803.5 | | | $ | 3,880.0 | | | $ | — | | | $ | 3,880.0 | | | $ | 3,865.4 | | | $ | — | | | $ | 3,865.4 | | | $ | 11,548.9 | | | $ | — | | | $ | 11,548.9 | |
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | $ | 644.7 | | | $ | 4.2 | | | $ | 648.9 | | | $ | 627.0 | | | $ | 9.2 | | | $ | 636.2 | | | $ | 478.5 | | | $ | 14.2 | | | $ | 492.7 | | | $ | 1,750.2 | | | $ | 27.6 | | | $ | 1,777.8 | |
| Industrial | | 99.8 | | | 3.6 | | | 103.4 | | | 60.5 | | | 3.0 | | | 63.5 | | | 42.6 | | | 3.2 | | | 45.8 | | | 202.9 | | | 9.8 | | | 212.7 | |
| Segment Profit | | 744.5 | | | 7.8 | | | 752.3 | | | 687.5 | | | 12.2 | | | 699.7 | | | 521.1 | | | 17.4 | | | 538.5 | | | 1,953.1 | | | 37.4 | | | 1,990.5 | |
| Corporate Overhead & Other | | (62.1) | | | 11.7 | | | (50.4) | | | (79.6) | | | 7.6 | | | (72.0) | | | (63.3) | | | 6.4 | | | (56.9) | | | (205.0) | | | 25.7 | | | (179.3) | |
| Total | | $ | 682.4 | | | $ | 19.5 | | | $ | 701.9 | | | $ | 607.9 | | | $ | 19.8 | | | $ | 627.7 | | | $ | 457.8 | | | $ | 23.8 | | | $ | 481.6 | | | $ | 1,748.1 | | | $ | 63.1 | | | $ | 1,811.2 | |
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | | | | | | | | |
| Tools & Storage | | 21.0 | % | | | | 21.2 | % | | 19.6 | % | | | | 19.9 | % | | 15.0 | % | | | | 15.5 | % | | 18.5 | % | | | | 18.8 | % |
| Industrial | | 15.2 | % | | | | 15.7 | % | | 10.0 | % | | | | 10.5 | % | | 7.2 | % | | | | 7.7 | % | | 10.9 | % | | | | 11.5 | % |
| Total | | 20.0 | % | | | | 20.2 | % | | 18.1 | % | | | | 18.4 | % | | 13.8 | % | | | | 14.2 | % | | 17.3 | % | | | | 17.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. Corporate Overhead and Other includes the results of the Mechanical Access Solutions business for all periods presented. |
| 2 | Acquisition-related charges and other relate primarily to functional transformation initiatives and facility-related costs. |
| 3 | The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | First Quarter 2020 | | Second Quarter 2020 | | Third Quarter 2020 |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| NET SALES | | | | | | | | | | | | | | | | | |
| Tools & Storage | $ | 2,070.8 | | | $ | — | | | $ | 2,070.8 | | | $ | 2,197.2 | | | $ | — | | | $ | 2,197.2 | | | $ | 2,804.1 | | | $ | — | | | $ | 2,804.1 | |
| Industrial | 590.7 | | | — | | | 590.7 | | | 517.5 | | | — | | | 517.5 | | | 586.6 | | | — | | | 586.6 | |
| Segment Net Sales | 2,661.5 | | | — | | | 2,661.5 | | | 2,714.7 | | | — | | | 2,714.7 | | | 3,390.7 | | | — | | | 3,390.7 | |
| Corporate Overhead & Other | 99.1 | | | — | | | 99.1 | | | 91.6 | | | — | | | 91.6 | | | 97.4 | | | — | | | 97.4 | |
| Total | $ | 2,760.6 | | | $ | — | | | $ | 2,760.6 | | | $ | 2,806.3 | | | $ | — | | | $ | 2,806.3 | | | $ | 3,488.1 | | | $ | — | | | $ | 3,488.1 | |
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | |
| Tools & Storage | $ | 229.9 | | | $ | 3.1 | | | $ | 233.0 | | | $ | 341.1 | | | $ | 28.4 | | | $ | 369.5 | | | $ | 591.9 | | | $ | 5.6 | | | $ | 597.5 | |
| Industrial | 66.6 | | | 10.4 | | | 77.0 | | | 3.8 | | | 40.6 | | | 44.4 | | | 62.7 | | | 8.4 | | | 71.1 | |
| Segment Profit | 296.5 | | | 13.5 | | | 310.0 | | | 344.9 | | | 69.0 | | | 413.9 | | | 654.6 | | | 14.0 | | | 668.6 | |
| Corporate Overhead & Other | (44.4) | | | 12.3 | | | (32.1) | | | (76.7) | | | 27.8 | | | (48.9) | | | (54.8) | | | 19.8 | | | (35.0) | |
| Total | $ | 252.1 | | | $ | 25.8 | | | $ | 277.9 | | | $ | 268.2 | | | $ | 96.8 | | | $ | 365.0 | | | $ | 599.8 | | | $ | 33.8 | | | $ | 633.6 | |
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | |
| Tools & Storage | 11.1 | % | | | | 11.3 | % | | 15.5 | % | | | | 16.8 | % | | 21.1 | % | | | | 21.3 | % |
| Industrial | 11.3 | % | | | | 13.0 | % | | 0.7 | % | | | | 8.6 | % | | 10.7 | % | | | | 12.1 | % |
| Total | 11.1 | % | | | | 11.6 | % | | 12.7 | % | | | | 15.2 | % | | 19.3 | % | | | | 19.7 | % |
| | | | | | | | | | | | | | | | | | |
| | Fourth Quarter 2020 | | Year-To-Date 2020 | | | | | | |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | | | | | |
| NET SALES | | | | | | | | | | | | | | | | | |
| Tools & Storage | $ | 3,257.6 | | | $ | — | | | $ | 3,257.6 | | | $ | 10,329.7 | | | $ | — | | | $ | 10,329.7 | | | | | | | |
| Industrial | 657.9 | | | — | | | 657.9 | | | 2,352.7 | | | — | | | 2,352.7 | | | | | | | |
| Segment Net Sales | 3,915.5 | | | — | | | 3,915.5 | | | 12,682.4 | | | — | | | 12,682.4 | | | | | | | |
| Corporate Overhead & Other | 87.2 | | | — | | | 87.2 | | | 375.3 | | | — | | | 375.3 | | | | | | | |
| Total | $ | 4,002.7 | | | $ | — | | | $ | 4,002.7 | | | $ | 13,057.7 | | | $ | — | | | $ | 13,057.7 | | | | | | | |
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | |
| Tools & Storage | $ | 657.4 | | | $ | 9.3 | | | $ | 666.7 | | | $ | 1,820.3 | | | $ | 46.4 | | | $ | 1,866.7 | | | | | | | |
| Industrial | 87.5 | | | 7.7 | | | 95.2 | | | 220.6 | | | 67.1 | | | 287.7 | | | | | | | |
| Segment Profit | 744.9 | | | 17.0 | | | 761.9 | | | 2,040.9 | | | 113.5 | | | 2,154.4 | | | | | | | |
| Corporate Overhead & Other | (88.1) | | | 11.5 | | | (76.6) | | | (264.0) | | | 71.4 | | | (192.6) | | | | | | | |
| Total | $ | 656.8 | | | $ | 28.5 | | | $ | 685.3 | | | $ | 1,776.9 | | | $ | 184.9 | | | $ | 1,961.8 | | | | | | | |
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | |
| Tools & Storage | 20.2 | % | | | | 20.5 | % | | 17.6 | % | | | | 18.1 | % | | | | | | |
| Industrial | 13.3 | % | | | | 14.5 | % | | 9.4 | % | | | | 12.2 | % | | | | | | |
| Total | 19.0 | % | | | | 19.5 | % | | 16.1 | % | | | | 17.0 | % | | | | | | |
| | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. Corporate Overhead and Other includes the results of the commercial electronic security business in five countries in Europe and emerging markets through its disposition in the fourth quarter of 2020 and the Mechanical Access Solutions business for all periods presented. |
| 2 | Acquisition-related charges and other relate primarily to integration costs, a cost reduction program, inventory step-up charges and margin resiliency initiatives. |
| 3 | The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods. |
