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 | | |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | |
| Net Sales | $ | 3,720.8 | | | $ | — | | | $ | 3,720.8 | | | $ | 3,798.9 | | | $ | — | | | $ | 3,798.9 | | | $ | 3,779.7 | | | $ | — | | | $ | 3,779.7 | | | |
| Gross profit | 1,387.8 | | | 4.4 | | | 1,392.2 | | | 1,361.8 | | | 1.3 | | | 1,363.1 | | | 1,215.6 | | | 5.1 | | | 1,220.7 | | | |
| % of Net Sales | 37.3 | % | | | | 37.4 | % | | 35.8 | % | | | | 35.9 | % | | 32.2 | % | | | | 32.3 | % | | |
| Selling, general and administrative | 719.1 | | | (15.0) | | | 704.1 | | | 767.1 | | | (18.4) | | | 748.7 | | | 773.5 | | | (18.7) | | | 754.8 | | | |
| % of Net Sales | 19.3 | % | | | | 18.9 | % | | 20.2 | % | | | | 19.7 | % | | 20.5 | % | | | | 20.0 | % | | |
| Operating profit | 668.7 | | | 19.4 | | | 688.1 | | | 594.7 | | | 19.7 | | | 614.4 | | | 442.1 | | | 23.8 | | | 465.9 | | | |
| % of Net Sales | 18.0 | % | | | | 18.5 | % | | 15.7 | % | | | | 16.2 | % | | 11.7 | % | | | | 12.3 | % | | |
| Earnings from continuing operations before income taxes and equity interest | 573.3 | | | 23.8 | | | 597.1 | | | 495.4 | | | 33.2 | | | 528.6 | | | 369.2 | | | 32.5 | | | 401.7 | | | |
| Income taxes on continuing operations | 115.5 | | | 6.0 | | | 121.5 | | | 67.3 | | | 8.4 | | | 75.7 | | | (0.5) | | | 6.8 | | | 6.3 | | | |
| Share of net earnings of equity method investment | 1.8 | | | 0.2 | | | 2.0 | | | 4.4 | | | 11.0 | | | 15.4 | | | 9.8 | | | — | | | 9.8 | | | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | 451.0 | | | 18.0 | | | 469.0 | | | 429.0 | | | 35.8 | | | 464.8 | | | 380.0 | | | 25.7 | | | 405.7 | | | |
| Diluted earnings per share of common stock - Continuing operations | $ | 2.74 | | | $ | 0.11 | | | $ | 2.85 | | | $ | 2.60 | | | $ | 0.21 | | | $ | 2.81 | | | $ | 2.30 | | | $ | 0.15 | | | $ | 2.45 | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Fourth Quarter 2021 | | Year-to-Date 2021 | | | | | | | | |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | | | | | | | |
| Net Sales | $ | 3,981.9 | | | $ | — | | | $ | 3,981.9 | | | $ | 15,281.3 | | | $ | — | | | $ | 15,281.3 | | | | | | | | | |
| Gross profit | 1,127.0 | | | 28.2 | | | 1,155.2 | | | 5,092.2 | | | 39.0 | | | 5,131.2 | | | | | | | | | |
| % of Net Sales | 28.3 | % | | | | 29.0 | % | | 33.3 | % | | | | 33.6 | % | | | | | | | | |
| Selling, general and administrative | 933.4 | | | (131.5) | | | 801.9 | | | 3,193.1 | | | (183.6) | | | 3,009.5 | | | | | | | | | |
| % of Net Sales | 23.4 | % | | | | 20.1 | % | | 20.9 | % | | | | 19.7 | % | | | | | | | | |
| Operating profit | 193.6 | | | 159.7 | | | 353.3 | | | 1,899.1 | | | 222.6 | | | 2,121.7 | | | | | | | | | |
| % of Net Sales | 4.9 | % | | | | 8.9 | % | | 12.4 | % | | | | 13.9 | % | | | | | | | | |
| Earnings from continuing operations before income taxes and equity interest | 149.0 | | | 104.4 | | | 253.4 | | | 1,586.9 | | | 193.9 | | | 1,780.8 | | | | | | | | | |
| Income taxes on continuing operations | (127.2) | | | 42.9 | | | (84.3) | | | 55.1 | | | 64.1 | | | 119.2 | | | | | | | | | |
| Share of net earnings of equity method investment | 3.0 | | | — | | | 3.0 | | | 19.0 | | | 11.2 | | | 30.2 | | | | | | | | | |
| Net earnings from continuing operations attributable to common shareowners - Diluted | 279.6 | | | 61.5 | | | 341.1 | | | 1,539.6 | | | 141.0 | | | 1,680.6 | | | | | | | | | |
| Diluted earnings per share of common stock - Continuing operations | $ | 1.69 | | | $ | 0.37 | | | $ | 2.06 | | | $ | 9.33 | | | $ | 0.85 | | | $ | 10.18 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the automatic doors business following the announced divestiture in April 2022. The results of this business have been recorded as discontinued operations as part of the Security divestiture. | | |
| 2 | 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. | | |
| 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 2021 | | Second Quarter 2021 | | Third Quarter 2021 |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 |
| NET SALES | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | $ | 3,062.9 | | | $ | — | | | $ | 3,062.9 | | | $ | 3,196.5 | | | $ | — | | | $ | 3,196.5 | | | $ | 3,185.9 | | | $ | — | | | $ | 3,185.9 | |
| Industrial | 657.7 | | | — | | | 657.7 | | | 602.2 | | | — | | | 602.2 | | | 593.5 | | | — | | | 593.5 | |
| Segment Net Sales | 3,720.6 | | | — | | | 3,720.6 | | | 3,798.7 | | | — | | | 3,798.7 | | | 3,779.4 | | | — | | | 3,779.4 | |
| Corporate Overhead | 0.2 | | | — | | | 0.2 | | | 0.2 | | | — | | | 0.2 | | | 0.3 | | | — | | | 0.3 | |
| Total | $ | 3,720.8 | | | $ | — | | | $ | 3,720.8 | | | $ | 3,798.9 | | | $ | — | | | $ | 3,798.9 | | | $ | 3,779.7 | | | $ | — | | | $ | 3,779.7 | |
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | $ | 644.7 | | | $ | 4.2 | | | $ | 648.9 | | | $ | 627.0 | | | $ | 9.2 | | | $ | 636.2 | | | $ | 478.5 | | | $ | 14.2 | | | $ | 492.7 | |
| Industrial | 99.8 | | | 3.6 | | | 103.4 | | | 60.5 | | | 3.0 | | | 63.5 | | | 42.6 | | | 3.2 | | | 45.8 | |
| Segment Profit | 744.5 | | | 7.8 | | | 752.3 | | | 687.5 | | | 12.2 | | | 699.7 | | | 521.1 | | | 17.4 | | | 538.5 | |
| Corporate Overhead | (75.8) | | | 11.6 | | | (64.2) | | | (92.8) | | | 7.5 | | | (85.3) | | | (79.0) | | | 6.4 | | | (72.6) | |
| Total | $ | 668.7 | | | $ | 19.4 | | | $ | 688.1 | | | $ | 594.7 | | | $ | 19.7 | | | $ | 614.4 | | | $ | 442.1 | | | $ | 23.8 | | | $ | 465.9 | |
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | 21.0 | % | | | | 21.2 | % | | 19.6 | % | | | | 19.9 | % | | 15.0 | % | | | | 15.5 | % |
| Industrial | 15.2 | % | | | | 15.7 | % | | 10.0 | % | | | | 10.5 | % | | 7.2 | % | | | | 7.7 | % |
| Total | 20.0 | % | | | | 20.2 | % | | 18.1 | % | | | | 18.4 | % | | 13.8 | % | | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | |
| | Fourth Quarter 2021 | | Year-To-Date 2021 | | | | | | |
| | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | GAAP1 | | Acquisition- Related Charges & Other2 | | Non-GAAP3 | | | | | | |
| NET SALES | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | $ | 3,372.1 | | | $ | — | | | $ | 3,372.1 | | | $ | 12,817.4 | | | $ | — | | | $ | 12,817.4 | | | | | | | |
| Industrial | 609.7 | | | — | | | 609.7 | | | 2,463.1 | | | — | | | 2,463.1 | | | | | | | |
| Segment Net Sales | 3,981.8 | | | — | | | 3,981.8 | | | 15,280.5 | | | — | | | 15,280.5 | | | | | | | |
| Corporate Overhead | 0.1 | | | — | | | 0.1 | | | 0.8 | | | — | | | 0.8 | | | | | | | |
| Total | $ | 3,981.9 | | | $ | — | | | $ | 3,981.9 | | | $ | 15,281.3 | | | $ | — | | | $ | 15,281.3 | | | | | | | |
| SEGMENT PROFIT | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | $ | 235.2 | | | $ | 150.8 | | | $ | 386.0 | | | $ | 1,985.4 | | | $ | 178.4 | | | $ | 2,163.8 | | | | | | | |
| Industrial | 53.7 | | | 3.3 | | | 57.0 | | | 256.6 | | | 13.1 | | | 269.7 | | | | | | | |
| Segment Profit | 288.9 | | | 154.1 | | | 443.0 | | | 2,242.0 | | | 191.5 | | | 2,433.5 | | | | | | | |
| Corporate Overhead | (95.3) | | | 5.6 | | | (89.7) | | | (342.9) | | | 31.1 | | | (311.8) | | | | | | | |
| Total | $ | 193.6 | | | $ | 159.7 | | | $ | 353.3 | | | $ | 1,899.1 | | | $ | 222.6 | | | $ | 2,121.7 | | | | | | | |
| Segment Profit as a Percentage of Net Sales | | | | | | | | | | | | | | | | | |
| Tools & Outdoor | 7.0 | % | | | | 11.4 | % | | 15.5 | % | | | | 16.9 | % | | | | | | |
| Industrial | 8.8 | % | | | | 9.3 | % | | 10.4 | % | | | | 10.9 | % | | | | | | |
| Total | 7.3 | % | | | | 11.1 | % | | 14.7 | % | | | | 15.9 | % | | | | | | |
| | | | | | | | | | | | | | | | | | |
| 1 | The Company’s results represent continuing operations and exclude the automatic doors business following the announced divestiture in April 2022. The results of this business have been recorded as discontinued operations as part of the Security divestiture. |
| 2 | 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. |
| 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. |
