STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| | FOURTH QUARTER | | YEAR-TO-DATE |
| | 2021 | | 2020 | | 2021 | | 2020 |
| NET SALES | $ | 4,068.3 | | | $ | 4,002.7 | | | $ | 15,617.2 | | | $ | 13,057.7 | |
| COSTS AND EXPENSES | | | | | | | |
| Cost of sales | 2,915.8 | | | 2,598.4 | | | 10,423.0 | | | 8,652.3 | |
| Gross profit | 1,152.5 | | | 1,404.3 | | | 5,194.2 | | | 4,405.4 | |
| % of Net Sales | 28.3 | % | | 35.1 | % | | 33.3 | % | | 33.7 | % |
| Selling, general and administrative | 946.8 | | | 747.5 | | | 3,240.4 | | | 2,628.5 | |
| % of Net Sales | 23.3 | % | | 18.7 | % | | 20.7 | % | | 20.1 | % |
| Operating profit | 205.7 | | | 656.8 | | | 1,953.8 | | | 1,776.9 | |
| % of Net sales | 5.1 | % | | 16.4 | % | | 12.5 | % | | 13.6 | % |
| Other - net | 2.3 | | | 62.8 | | | 122.1 | | | 264.7 | |
| (Gain) loss on sales of businesses | (3.0) | | | 13.5 | | | 0.6 | | | 13.5 | |
| Restructuring charges | 1.7 | | | 10.3 | | | 14.5 | | | 73.8 | |
| Income from operations | 204.7 | | | 570.2 | | | 1,816.6 | | | 1,424.9 | |
| Interest - net | 43.8 | | | 50.0 | | | 175.6 | | | 205.1 | |
| EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INTEREST | 160.9 | | | 520.2 | | | 1,641.0 | | | 1,219.8 | |
| Income taxes on continuing operations | (127.6) | | | 68.2 | | | 61.4 | | | 43.0 | |
| NET EARNINGS FROM CONTINUING OPERATIONS BEFORE EQUITY INTEREST | 288.5 | | | 452.0 | | | 1,579.6 | | | 1,176.8 | |
| Share of net earnings (losses) of equity method investment | 3.0 | | | (5.0) | | | 19.0 | | | 9.1 | |
| NET EARNINGS FROM CONTINUING OPERATIONS | 291.5 | | | 447.0 | | | 1,598.6 | | | 1,185.9 | |
| Less: Net (losses) earnings attributable to non-controlling interests | — | | | 0.4 | | | (1.7) | | | 0.9 | |
| NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC. | $ | 291.5 | | | $ | 446.6 | | | $ | 1,600.3 | | | $ | 1,185.0 | |
| Less: Preferred stock dividends | — | | | 9.3 | | | 14.2 | | | 24.1 | |
| NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 291.5 | | | $ | 437.3 | | | $ | 1,586.1 | | | $ | 1,160.9 | |
| Add: Contract adjustment payments accretion | 0.4 | | | 0.2 | | | 1.3 | | | 1.7 | |
| NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED | $ | 291.9 | | | $ | 437.5 | | | $ | 1,587.4 | | | $ | 1,162.6 | |
| Earnings from discontinued operations before income taxes | 14.2 | | | 19.9 | | | 70.2 | | | 47.2 | |
| Income taxes on discontinued operations | (22.5) | | | (0.8) | | | (18.7) | | | (1.6) | |
| NET EARNINGS FROM DISCONTINUED OPERATIONS | $ | 36.7 | | | $ | 20.7 | | | $ | 88.9 | | | $ | 48.8 | |
| NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED | $ | 328.6 | | | $ | 458.2 | | | $ | 1,676.3 | | | $ | 1,211.4 | |
| NET EARNINGS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC. | $ | 328.2 | | | $ | 467.3 | | | $ | 1,689.2 | | | $ | 1,233.8 | |
| | | | | | | |
| BASIC EARNINGS PER SHARE OF COMMON STOCK | | | | | | | |
| Continuing operations | $ | 1.83 | | | $ | 2.79 | | | $ | 9.99 | | | $ | 7.53 | |
| Discontinued operations | $ | 0.23 | | | $ | 0.13 | | | $ | 0.56 | | | $ | 0.32 | |
| Total basic earnings per share of common stock | $ | 2.06 | | | $ | 2.92 | | | $ | 10.55 | | | $ | 7.85 | |
| DILUTED EARNINGS PER SHARE OF COMMON STOCK | | | | | | | |
| Continuing operations | $ | 1.77 | | | $ | 2.68 | | | $ | 9.62 | | | $ | 7.16 | |
| Discontinued operations | $ | 0.22 | | | $ | 0.13 | | | $ | 0.54 | | | $ | 0.30 | |
| Total diluted earnings per share of common stock | $ | 1.99 | | | $ | 2.80 | | | $ | 10.16 | | | $ | 7.46 | |
| DIVIDENDS PER SHARE OF COMMON STOCK | $ | 0.79 | | | $ | 0.70 | | | $ | 2.98 | | | $ | 2.78 | |
| WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands) | | | | | | | |
| Basic | 159,605 | | | 156,866 | | | 158,760 | | | 154,176 | |
| Diluted | 165,383 | | | 163,529 | | | 165,024 | | | 162,427 | |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | |
| | January 1, 2022 | | January 2, 2021 |
| ASSETS | | | | |
| Cash and cash equivalents | | $ | 142.3 | | | $ | 1,241.9 | |
| Accounts and notes receivable, net | | 1,560.8 | | | 1,164.5 | |
| Inventories, net | | 5,446.8 | | | 2,638.9 | |
| Current assets held for sale | | 765.6 | | | 631.6 | |
| Other current assets | | 610.9 | | | 359.1 | |
| Total current assets | | 8,526.4 | | | 6,036.0 | |
| Property, plant and equipment, net | | 2,347.1 | | | 1,973.1 | |
| Goodwill and other intangibles, net | | 13,490.6 | | | 11,924.2 | |
| Long-term assets held for sale | | 2,472.5 | | | 2,575.1 | |
| Other assets | | 1,361.0 | | | 1,057.9 | |
| Total assets | | $ | 28,197.6 | | | $ | 23,566.3 | |
| LIABILITIES AND SHAREOWNERS’ EQUITY | | | | |
| Short-term borrowings | | $ | 2,241.1 | | | $ | 1.5 | |
| Current maturities of long-term debt | | 1.3 | | | — | |
| Accounts payable | | 3,438.9 | | | 2,320.0 | |
| Accrued expenses | | 2,681.0 | | | 1,835.9 | |
| Current liabilities held for sale | | 398.2 | | | 400.9 | |
| Total current liabilities | | 8,760.5 | | | 4,558.3 | |
| Long-term debt | | 4,353.6 | | | 4,245.4 | |
| Long-term liabilities held for sale | | 130.4 | | | 162.9 | |
| Other long-term liabilities | | 3,360.7 | | | 3,533.3 | |
| Stanley Black & Decker, Inc. shareowners’ equity | | 11,590.5 | | | 11,059.6 | |
| Non-controlling interests’ equity | | 1.9 | | | 6.8 | |
| Total liabilities and shareowners' equity | | $ | 28,197.6 | | | $ | 23,566.3 | |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | FOURTH QUARTER | | YEAR-TO-DATE |
| | 2021 | | 2020 | | 2021 | | 2020 |
| OPERATING ACTIVITIES | | | | | | | |
| Net earnings from continuing operations | $ | 291.5 | | | $ | 447.0 | | | $ | 1,598.6 | | | $ | 1,185.9 | |
| Net earnings from discontinued operations | 36.7 | | | 20.7 | | | 88.9 | | | 48.8 | |
| Depreciation and amortization | 146.5 | | | 147.0 | | | 577.1 | | | 578.1 | |
| (Gain) loss on sales of businesses | (3.0) | | | 13.5 | | | 0.6 | | | 13.5 | |
| Share of net (earnings) losses of equity method investment | (3.0) | | | 5.0 | | | (19.0) | | | (9.1) | |
| Changes in working capital1 | (117.3) | | | 536.5 | | | (1,490.8) | | | (131.0) | |
| Other | 20.5 | | | 252.2 | | | (92.3) | | | 335.9 | |
| Net cash provided by operating activities | 371.9 | | | 1,421.9 | | | 663.1 | | | 2,022.1 | |
| INVESTING AND FINANCING ACTIVITIES | | | | | | | |
| Capital and software expenditures | (196.6) | | | (138.6) | | | (519.1) | | | (348.1) | |
| Proceeds from sales of assets | 1.3 | | | 12.5 | | | 8.4 | | | 19.9 | |
| Proceeds from sales of businesses, net of cash sold | 7.2 | | | 59.1 | | | 5.3 | | | 59.1 | |
| Business acquisitions, net of cash acquired | (2,033.0) | | | (23.8) | | | (2,043.8) | | | (1,324.4) | |
| Purchases of investments | (0.9) | | | (4.1) | | | (15.4) | | | (18.7) | |
| Net investment hedge settlements | (1.2) | | | — | | | (55.1) | | | 41.0 | |
| Payments on long-term debt | (1.5) | | | (1,154.3) | | | (1.5) | | | (1,154.3) | |
| Proceeds from debt issuance, net of fees | — | | | 739.9 | | | — | | | 2,222.5 | |
| Stock purchase contract fees | (9.9) | | | (9.9) | | | (39.4) | | | (59.8) | |
| Net short-term borrowings (repayments) | 2,073.9 | | | (0.8) | | | 2,224.6 | | | (342.6) | |
| Premium paid on debt extinguishment | — | | | (48.7) | | | — | | | (48.7) | |
| Proceeds from issuance of remarketed preferred stock | — | | | — | | | — | | | 750.0 | |
| Proceeds from issuances of common stock | 23.3 | | | 53.2 | | | 131.4 | | | 147.0 | |
| Purchases of common stock for treasury | (14.2) | | | (15.0) | | | (34.3) | | | (26.2) | |
| Redemption and conversion of preferred stock | — | | | — | | | (750.0) | | | — | |
| Craftsman deferred purchase price | — | | | — | | | — | | | (250.0) | |
| Craftsman contingent consideration | (7.8) | | | (6.9) | | | (29.3) | | | (45.9) | |
| CAM contingent consideration | — | | | (94.4) | | | — | | | (94.4) | |
| Termination of forward starting interest rate swaps | (75.3) | | | — | | | (75.3) | | | (20.5) | |
| Cash dividends on common stock | (127.1) | | | (110.8) | | | (474.8) | | | (431.8) | |
| Cash dividends on preferred stock | — | | | (9.4) | | | (18.9) | | | (18.8) | |
| Effect of exchange rate changes on cash | (15.6) | | | 30.7 | | | (61.5) | | | 22.8 | |
| Other | (3.1) | | | 1.6 | | | (17.9) | | | (16.5) | |
| Net cash used in investing and financing activities | (380.5) | | | (719.7) | | | (1,766.6) | | | (938.4) | |
| (Decrease) increase in cash, cash equivalents and restricted cash | (8.6) | | | 702.2 | | | (1,103.5) | | | 1,083.7 | |
| Cash, cash equivalents and restricted cash, beginning of period | 303.4 | | | 696.1 | | | 1,398.3 | | | 314.6 | |
| Cash, cash equivalents and restricted cash, end of period | $ | 294.8 | | | $ | 1,398.3 | | | $ | 294.8 | | | $ | 1,398.3 | |
| | | | | | | | |
| Free Cash Flow Computation2 | | | | | | | |
| Net cash provided by operating activities | $ | 371.9 | | | $ | 1,421.9 | | | $ | 663.1 | | | $ | 2,022.1 | |
| Less: capital and software expenditures | (196.6) | | | (138.6) | | | (519.1) | | | (348.1) | |
| Free cash flow (before dividends) | $ | 175.3 | | | $ | 1,283.3 | | | $ | 144.0 | | | $ | 1,674.0 | |
| | | | | | | | |
| Reconciliation of Cash, Cash Equivalents and Restricted Cash | | | | | | | |
| | January 1, 2022 | | January 2, 2021 | | | | |
| Cash and cash equivalents | $ | 142.3 | | | $ | 1,241.9 | | | | | |
| Restricted cash included in Other current assets | 7.6 | | | 17.3 | | | | | |
| Cash and cash equivalents included in Current assets held for sale | 144.9 | | | 139.1 | | | | | |
| Cash, cash equivalents and restricted cash | $ | 294.8 | | | $ | 1,398.3 | | | | | |
| | | | | | | | |
| 1 | Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue. |
| 2 | Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common and preferred stock and business acquisitions, among other items. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | FOURTH QUARTER | | YEAR-TO-DATE |
| | 2021 | | 2020 | | 2021 | | 2020 |
| NET SALES | | | | | | | |
| Tools & Storage | $ | 3,372.1 | | | $ | 3,257.6 | | | $ | 12,817.4 | | | $ | 10,329.7 | |
| Industrial | 609.7 | | | 657.9 | | | 2,463.1 | | | 2,352.7 | |
| Segment Net Sales | 3,981.8 | | | 3,915.5 | | | 15,280.5 | | | 12,682.4 | |
| Corporate Overhead & Other1 | 86.5 | | | 87.2 | | | 336.7 | | | 375.3 | |
| Total | $ | 4,068.3 | | | $ | 4,002.7 | | | $ | 15,617.2 | | | $ | 13,057.7 | |
| SEGMENT PROFIT | | | | | | | |
| Tools & Storage | $ | 235.2 | | | $ | 657.4 | | | $ | 1,985.4 | | | $ | 1,820.3 | |
| Industrial | 53.7 | | | 87.5 | | | 256.6 | | | 220.6 | |
| Segment Profit | 288.9 | | | 744.9 | | | 2,242.0 | | | 2,040.9 | |
| Corporate Overhead & Other1 | (83.2) | | | (88.1) | | | (288.2) | | | (264.0) | |
| Total | $ | 205.7 | | | $ | 656.8 | | | $ | 1,953.8 | | | $ | 1,776.9 | |
| Segment Profit as a Percentage of Net Sales | | | | | | | |
| Tools & Storage | 7.0 | % | | 20.2 | % | | 15.5 | % | | 17.6 | % |
| Industrial | 8.8 | % | | 13.3 | % | | 10.4 | % | | 9.4 | % |
| Segment Profit | 7.3 | % | | 19.0 | % | | 14.7 | % | | 16.1 | % |
| | | | | | | | |
| 1 | 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. Amounts above exclude the results of the Company's remaining commercial electronic security and healthcare security business lines which are reported as discontinued operations for all periods presented. |
|
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | FOURTH QUARTER 2021 |
| | | GAAP | | Acquisition- Related Charges & Other1 | | Non-GAAP3 |
| Gross profit | | $ | 1,152.5 | | | $ | 28.2 | | | $ | 1,180.7 | |
| % of Net Sales | | 28.3 | % | | | | 29.0 | % |
| Selling, general and administrative | | 946.8 | | | (132.2) | | | 814.6 | |
| % of Net Sales | | 23.3 | % | | | | 20.0 | % |
| Operating profit | | 205.7 | | | 160.4 | | | 366.1 | |
| % of Net Sales | | 5.1 | % | | | | 9.0 | % |
| Earnings from continuing operations before income taxes and equity interest | | 160.9 | | | 105.0 | | | 265.9 | |
| Income taxes on continuing operations | | (127.6) | | | 43.2 | | | (84.4) | |
| Share of net earnings of equity method investment | | 3.0 | | | — | | | 3.0 | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | | 291.9 | | | 61.8 | | | 353.7 | |
| Diluted earnings per share of common stock - Continuing operations | | $ | 1.77 | | | $ | 0.37 | | | $ | 2.14 | |
| Total diluted earnings per share of common stock | | $ | 1.99 | | | $ | 0.44 | | | $ | 2.43 | |
| | | | | | | |
| 1 | Acquisition-related charges and other relate primarily to a non-cash fair value adjustment, non-cash inventory step-up charges, deal costs and restructuring, partially offset by a gain on investment. |
| | | | | | | |
| | | FOURTH QUARTER 2020 |
| | | GAAP | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| Gross profit | | $ | 1,404.3 | | | $ | 9.2 | | | $ | 1,413.5 | |
| % of Net Sales | | 35.1 | % | | | | 35.3 | % |
| Selling, general and administrative | | 747.5 | | | (19.3) | | | 728.2 | |
| % of Net Sales | | 18.7 | % | | | | 18.2 | % |
| Operating profit | | 656.8 | | | 28.5 | | | 685.3 | |
| % of Net Sales | | 16.4 | % | | | | 17.1 | % |
| Earnings from continuing operations before income taxes and equity interest | | 520.2 | | | 66.3 | | | 586.5 | |
| Income taxes on continuing operations | | 68.2 | | | 13.6 | | | 81.8 | |
| Share of net losses of equity method investment | | (5.0) | | | 2.9 | | | (2.1) | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | | 437.5 | | | 55.6 | | | 493.1 | |
| Diluted earnings per share of common stock - Continuing operations | | $ | 2.68 | | | $ | 0.34 | | | $ | 3.02 | |
| | | | | | | |
| 2 | Acquisition-related charges and other relate primarily to the extinguishment of debt, a net loss on the sales of businesses and margin resiliency initiatives, partially offset by a release of a contingent consideration liability relating to the CAM acquisition. |
| 3 | The non-GAAP 2021 and 2020 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 EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | YEAR-TO-DATE 2021 |
| | | GAAP | | Acquisition- Related Charges & Other1 | | Non-GAAP3 |
| Gross profit | | $ | 5,194.2 | | | $ | 39.0 | | | $ | 5,233.2 | |
| % of Net Sales | | 33.3 | % | | | | 33.5 | % |
| Selling, general and administrative | | 3,240.4 | | | (184.5) | | | 3,055.9 | |
| % of Net Sales | | 20.7 | % | | | | 19.6 | % |
| Operating profit | | 1,953.8 | | | 223.5 | | | 2,177.3 | |
| % of Net Sales | | 12.5 | % | | | | 13.9 | % |
| Earnings from continuing operations before income taxes and equity interest | | 1,641.0 | | | 194.7 | | | 1,835.7 | |
| Income taxes on continuing operations | | 61.4 | | | 64.4 | | | 125.8 | |
| Share of net earnings of equity method investment | | 19.0 | | | 11.2 | | | 30.2 | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | | 1,587.4 | | | 141.5 | | | 1,728.9 | |
| Diluted earnings per share of common stock - Continuing operations | | $ | 9.62 | | | $ | 0.86 | | | $ | 10.48 | |
| Total diluted earnings per share of common stock | | $ | 10.16 | | | $ | 1.04 | | | $ | 11.20 | |
| | | | | | | |
| 1 | Acquisition-related charges and other relate primarily to a non-cash fair value adjustment, functional transformation initiatives, non-cash inventory step-up charges, deal costs, facility-related costs and restructuring, partially offset by a gain on investment. |
| | | | | | | |
| | | YEAR-TO-DATE 2020 |
| | | GAAP | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| Gross profit | | $ | 4,405.4 | | | $ | 61.7 | | | $ | 4,467.1 | |
| % of Net Sales | | 33.7 | % | | | | 34.2 | % |
| Selling, general and administrative | | 2,628.5 | | | (123.2) | | | 2,505.3 | |
| % of Net Sales | | 20.1 | % | | | | 19.2 | % |
| Operating profit | | 1,776.9 | | | 184.9 | | | 1,961.8 | |
| % of Net Sales | | 13.6 | % | | | | 15.0 | % |
| Earnings from continuing operations before income taxes and equity interest | | 1,219.8 | | | 325.9 | | | 1,545.7 | |
| Income taxes on continuing operations | | 43.0 | | | 192.5 | | | 235.5 | |
| Share of net earnings of equity method investment | | 9.1 | | | 9.8 | | | 18.9 | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | | 1,162.6 | | | 143.2 | | | 1,305.8 | |
| Diluted earnings per share of common stock - Continuing operations | | $ | 7.16 | | | $ | 0.88 | | | $ | 8.04 | |
| | | | | | | |
| 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 2021 and 2020 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 TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | FOURTH QUARTER 2021 |
| | | GAAP | | Acquisition- Related Charges and Other1 | | Non-GAAP3 |
| SEGMENT PROFIT | | | | | | |
| Tools & Storage | | $ | 235.2 | | | $ | 150.8 | | | $ | 386.0 | |
| Industrial | | 53.7 | | | 3.3 | | | 57.0 | |
| Segment Profit | | 288.9 | | | 154.1 | | | 443.0 | |
| Corporate Overhead & Other4 | | (83.2) | | | 6.3 | | | (76.9) | |
| Total | | $ | 205.7 | | | $ | 160.4 | | | $ | 366.1 | |
| Segment Profit as a Percentage of Net Sales | | | | | | |
| Tools & Storage | | 7.0 | % | | | | 11.4 | % |
| Industrial | | 8.8 | % | | | | 9.3 | % |
| Segment Profit | | 7.3 | % | | | | 11.1 | % |
| | | | | | | |
| 1 | Acquisition-related charges and other relate primarily to a non-cash fair value adjustment and non-cash inventory step-up charges. |
| | | | | | | |
| | | FOURTH QUARTER 2020 |
| | | GAAP | | Acquisition- Related Charges and Other2 | | Non-GAAP3 |
| SEGMENT PROFIT | | | | | | |
| Tools & Storage | | $ | 657.4 | | | $ | 9.3 | | | $ | 666.7 | |
| Industrial | | 87.5 | | | 7.7 | | | 95.2 | |
| Segment Profit | | 744.9 | | | 17.0 | | | 761.9 | |
| Corporate Overhead & Other4 | | (88.1) | | | 11.5 | | | (76.6) | |
| Total | | $ | 656.8 | | | $ | 28.5 | | | $ | 685.3 | |
| Segment Profit as a Percentage of Net Sales | | | | | | |
| Tools & Storage | | 20.2 | % | | | | 20.5 | % |
| Industrial | | 13.3 | % | | | | 14.5 | % |
| Segment Profit | | 19.0 | % | | | | 19.5 | % |
| | | | | | | |
| 2 | Acquisition-related charges and other relate primarily to integration costs and margin resiliency initiatives. |
| 3 | The non-GAAP 2021 and 2020 business segment 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 | 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. Amounts above exclude the results of the Company's remaining commercial electronic security and healthcare security business lines which are reported as discontinued operations for all periods presented. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | YEAR-TO-DATE 2021 |
| | | GAAP | | Acquisition- Related Charges and Other1 | | Non-GAAP3 |
| SEGMENT PROFIT | | | | | | |
| Tools & Storage | | $ | 1,985.4 | | | $ | 178.4 | | | $ | 2,163.8 | |
| Industrial | | 256.6 | | | 13.1 | | | 269.7 | |
| Segment Profit | | 2,242.0 | | | 191.5 | | | 2,433.5 | |
| Corporate Overhead & Other4 | | (288.2) | | | 32.0 | | | (256.2) | |
| Total | | $ | 1,953.8 | | | $ | 223.5 | | | $ | 2,177.3 | |
| Segment Profit as a Percentage of Net Sales | | | | | | |
| Tools & Storage | | 15.5 | % | | | | 16.9 | % |
| Industrial | | 10.4 | % | | | | 10.9 | % |
| Segment Profit | | 14.7 | % | | | | 15.9 | % |
| | | | | | | |
| 1 | Acquisition-related charges and other relate primarily to a non-cash fair value adjustment, functional transformation initiatives, non-cash inventory step-up charges and facility-related costs. |
| | | | | | | |
| | | YEAR-TO-DATE 2020 |
| | | GAAP | | Acquisition- Related Charges and Other2 | | Non-GAAP3 |
| SEGMENT PROFIT | | | | | | |
| Tools & Storage | | $ | 1,820.3 | | | $ | 46.4 | | | $ | 1,866.7 | |
| Industrial | | 220.6 | | | 67.1 | | | 287.7 | |
| Segment Profit | | 2,040.9 | | | 113.5 | | | 2,154.4 | |
| Corporate Overhead & Other4 | | (264.0) | | | 71.4 | | | (192.6) | |
| Total | | $ | 1,776.9 | | | $ | 184.9 | | | $ | 1,961.8 | |
| Segment Profit as a Percentage of Net Sales | | | | | | |
| Tools & Storage | | 17.6 | % | | | | 18.1 | % |
| Security | | 9.4 | % | | | | 12.2 | % |
| Segment Profit | | 16.1 | % | | | | 17.0 | % |
| | | | | | | |
| 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 2021 and 2020 business segment 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 | 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. Amounts above exclude the results of the Company's remaining commercial electronic security and healthcare security business lines which are reported as discontinued operations for all periods presented. |
