Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 13, 2023 | Jul. 01, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-05224 | ||
Entity Registrant Name | STANLEY BLACK & DECKER, INC. | ||
Entity Incorporation, State or Country Code | CT | ||
Entity Tax Identification Number | 06-0548860 | ||
Entity Address, Address Line One | 1000 STANLEY DRIVE | ||
Entity Address, City or Town | NEW BRITAIN | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06053 | ||
City Area Code | 860 | ||
Local Phone Number | 225-5111 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | SWK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 15.9 | ||
Entity Common Stock, Shares Outstanding | 153,023,886 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of shareholders (the "2023 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0000093556 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Hartford, Connecticut |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement [Abstract] | |||
Net Sales | $ 16,947.4 | $ 15,281.3 | $ 12,750 |
Costs and Expenses | |||
Cost of sales | 12,663.3 | 10,189.1 | 8,431.9 |
Selling, general and administrative | 3,355.7 | 3,193.1 | 2,554.7 |
Provision for credit losses | 14.3 | 0 | 24.6 |
Other, net | 274.8 | 189.5 | 215.7 |
Loss on sales of businesses | 8.4 | 0.6 | 13.5 |
Restructuring charges | 140.8 | 14.5 | 73.8 |
Gain on equity method investment | 0 | (68) | 0 |
Asset impairment charge | 168.4 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | 46.9 |
Interest income | (54.7) | (9.8) | (17.5) |
Interest expense | 338.5 | 185.4 | 222.7 |
Costs and Expenses | 16,909.5 | 13,694.4 | 11,566.3 |
Earnings from continuing operations before income taxes and equity interest | 37.9 | 1,586.9 | 1,183.7 |
Income taxes on continuing operations | (132.4) | 55.1 | 38 |
Net earnings from continuing operations before equity interest | 170.3 | 1,531.8 | 1,145.7 |
Share of net earnings of equity method investment | 0 | 19 | 9.1 |
Net earnings from continuing operations | 170.3 | 1,550.8 | 1,154.8 |
Less: Net earnings (losses) attributable to non-controlling interests | 0.2 | (1.7) | 0.9 |
Net earnings from continuing operations attributable to Stanley Black & Decker, Inc. | 170.1 | 1,552.5 | 1,153.9 |
Less: Preferred stock dividends and beneficial conversion feature | 5.8 | 14.2 | 24.1 |
Net Earnings from Continuing Operations Attributable to Common Shareowners | 164.3 | 1,538.3 | 1,129.8 |
Add: Contract adjustment payments accretion | 1.2 | 1.3 | 1.7 |
Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted | 165.5 | 1,539.6 | 1,131.5 |
Earnings from discontinued operations before income taxes (including 2022 pre-tax gain on Security sale of $1,197.4 million) | 1,210.9 | 124.3 | 83.3 |
Income taxes on discontinued operations (including 2022 income taxes for gain on Security sale of $312.5 million) | 318.5 | (12.4) | 3.4 |
Net earnings from discontinued operations | 892.4 | 136.7 | 79.9 |
Net Earnings Attributable to Common Shareowners - Diluted | 1,057.9 | 1,676.3 | 1,211.4 |
Net Earnings Attributable to Stanley Black & Decker, Inc. | $ 1,062.5 | $ 1,689.2 | $ 1,233.8 |
Basic earnings per share of common stock: | |||
Continuing operation (in dollars per share) | $ 1.11 | $ 9.69 | $ 7.33 |
Discontinued operations (in dollars per share) | 6.02 | 0.86 | 0.52 |
Total basic earnings per share of common stock (in dollars per share) | 7.13 | 10.55 | 7.85 |
Diluted earnings per share of common stock: | |||
Continuing operations (in dollars per share) | 1.06 | 9.33 | 6.97 |
Discontinued operations (in dollars per share) | 5.70 | 0.83 | 0.49 |
Total diluted earnings per share of common stock (in dollars per share) | $ 6.76 | $ 10.16 | $ 7.46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings from Continuing Operations Attributable to Common Shareowners | $ 164.3 | $ 1,538.3 | $ 1,129.8 |
Net earnings from discontinued operations | 892.4 | 136.7 | 79.9 |
Net earnings from discontinued operations | 1,056.7 | 1,675 | 1,209.7 |
Other comprehensive (loss) income: | |||
Currency translation adjustment and other | (364.4) | (307.7) | 281.9 |
Gains (losses) on cash flow hedges, net of tax | 5.3 | 53.2 | (48.8) |
Gains (losses) on net investment hedges, net of tax | 2 | (1) | (24.5) |
Pension gains (losses), net of tax | 83.2 | 123.6 | (37.7) |
Other comprehensive (loss) income | (273.9) | (131.9) | 170.9 |
Comprehensive income attributable to common shareowners | $ 782.8 | $ 1,543.1 | $ 1,380.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 395.6 | $ 142.1 |
Accounts and notes receivable, net | 1,231 | 1,481.7 |
Inventories, net | 5,861.1 | 5,419.9 |
Current assets held for sale | 0 | 869.6 |
Prepaid expenses | 441.4 | 507 |
Other current assets | 45.6 | 106.1 |
Total Current Assets | 7,974.7 | 8,526.4 |
Property, Plant and Equipment, net | 2,353.1 | 2,336.8 |
Goodwill | 8,502.7 | 8,590.7 |
Customer Relationships, net | 1,821.3 | 2,000 |
Trade Names, net | 2,645.7 | 2,681.8 |
Other Intangible Assets, net | 7.8 | 13.2 |
Long-term assets held for sale | 0 | 2,635.8 |
Other Assets | 1,658 | 1,395.3 |
Total Assets | 24,963.3 | 28,180 |
Current Liabilities | ||
Short-term borrowings | 2,102.9 | 2,241.1 |
Current maturities of long-term debt | 1.2 | 1.3 |
Accounts payable | 2,344.4 | 3,423.6 |
Accrued expenses | 2,120.7 | 2,641 |
Liabilities held for sale | 0 | 460.4 |
Total Current Liabilities | 6,569.2 | 8,767.4 |
Long-Term Debt | 5,352.9 | 4,353.6 |
Deferred Taxes | 709.2 | 711.2 |
Post-Retirement Benefits | 353.9 | 474.1 |
Long-term liabilities held for sale | 0 | 137.4 |
Other Liabilities | 2,263.9 | 2,143.9 |
Commitments and Contingencies (Notes R and S) | ||
Stanley Black & Decker, Inc. Shareowners’ Equity | ||
Preferred stock, without par value: Authorized 10,000,000 shares in 2022 and 2021 Issued and outstanding 750,000 shares in 2021 | 0 | 620.3 |
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2022 and 2021 Issued 176,902,738 shares in 2022 and 2021 | 442.3 | 442.3 |
Retained earnings | 9,333.3 | 8,742.4 |
Additional paid in capital | 5,055.6 | 4,999.2 |
Accumulated other comprehensive loss | (2,119.5) | (1,845.6) |
Shareowners' equity subtotal | 12,711.7 | 12,958.6 |
Less: cost of common stock in treasury (23,919,208 shares in 2022 and 13,573,962 shares in 2021) | (2,999.6) | (1,368.1) |
Stanley Black & Decker, Inc. Shareowners’ Equity | 9,712.1 | 11,590.5 |
Non-controlling interests | 2.1 | 1.9 |
Total Shareowners’ Equity | 9,714.2 | 11,592.4 |
Total Liabilities and Shareowners’ Equity | $ 24,963.3 | $ 28,180 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 750,000 | |
Preferred stock, shares outstanding (in shares) | 750,000 | |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, issued (in shares) | 176,902,738 | 176,902,738 |
Cost of common stock in treasury (in shares) | 23,919,208 | 13,573,962 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Operating Activities: | |||
Net earnings from continuing operations | $ 170.3 | $ 1,550.8 | $ 1,154.8 |
Net earnings from discontinued operations | 892.4 | 136.7 | 79.9 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | |||
Depreciation and amortization of property, plant and equipment | 369.7 | 374 | 376.5 |
Amortization of intangibles | 202.5 | 203.1 | 201.6 |
Inventory step-up amortization | 80.3 | 20.7 | 29 |
Loss on sales of businesses | 8.4 | 0.6 | 13.5 |
Gain on equity method investment | 0 | (68) | 0 |
Loss on debt extinguishment | 0 | 0 | 46.9 |
Gain on sale of discontinued operations | (1,197.4) | 0 | 0 |
Asset impairment charge | 168.4 | 0 | 0 |
Craftsman contingent consideration remeasurement from MTD acquisition | 0 | 101.1 | 0 |
Stock-based compensation expense | 90.7 | 118.3 | 109.1 |
Provision for credit losses | 30 | 18.7 | 41.1 |
Share of net earnings of equity method investment | 0 | (19) | (9.1) |
Deferred tax benefit | (271.7) | (386.9) | (241.7) |
Other non-cash items | 72.1 | 27.7 | 44.7 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 109 | (280.6) | (39.6) |
Inventories | (792.4) | (1,970.4) | (401.5) |
Accounts payable | (991.4) | 758.3 | 310.4 |
Deferred revenue | (29.9) | 1.9 | (0.3) |
Other current assets | 15.6 | (166.8) | (100.2) |
Other long-term assets | (351.3) | (438.8) | (14) |
Accrued expenses | (176.3) | 444 | 381.7 |
Defined benefit liabilities | (31.9) | (40) | (40.2) |
Other long-term liabilities | 173.4 | 277.7 | 79.5 |
Net cash (used in) provided by operating activities | (1,459.5) | 663.1 | 2,022.1 |
Investing Activities: | |||
Capital and software expenditures | (530.4) | (519.1) | (348.1) |
Sales of assets | 41.7 | 8.4 | 19.9 |
Business acquisitions, net of cash acquired | (71.9) | (2,043.8) | (1,324.4) |
Sales of businesses, net of cash sold | 4,147.1 | 5.3 | 59.1 |
Net investment hedge settlements | 10.6 | (55.1) | 41 |
Other | (24.5) | (19.5) | (24.6) |
Net cash provided by (used in) investing activities | 3,572.6 | (2,623.8) | (1,577.1) |
Financing Activities: | |||
Payments on long-term debt | 0 | (1.5) | (1,154.3) |
Proceeds from debt issuances, net of fees | 992.6 | 0 | 2,222.5 |
Net short-term commercial paper (repayments) borrowings | (138.1) | 2,224.6 | (342.6) |
Stock purchase contract fees | (39.4) | (39.4) | (59.8) |
Credit facility borrowings | 2,500 | 0 | 0 |
Credit facility repayments | (2,500) | 0 | 0 |
Purchases of common stock for treasury | (2,323) | (34.3) | (26.2) |
Proceeds from issuance of remarketed preferred stock | 750 | 0 | 750 |
Redemption and conversion of preferred stock | (750) | (750) | 0 |
Premium paid on debt extinguishment | 0 | 0 | (48.7) |
Proceeds from issuances of common stock | 38.7 | 131.4 | 147 |
Termination of interest rate swaps | 22.7 | (75.3) | (20.5) |
Cash dividends on common stock | (465.8) | (474.8) | (431.8) |
Cash dividends on preferred stock | (5.8) | (18.9) | (18.8) |
Other | (11.7) | (13.8) | (10.6) |
Net cash (used in) provided by financing activities | (1,971.1) | 918.7 | 615.9 |
Effect of exchange rate changes on cash and cash equivalents | (31.9) | (61.5) | 22.8 |
Change in cash, cash equivalents and restricted cash | 110.1 | (1,103.5) | 1,083.7 |
Cash, cash equivalents and restricted cash, beginning of year | 294.8 | 1,398.3 | 314.6 |
Cash, cash equivalents and restricted cash, end of year | 404.9 | 294.8 | 1,398.3 |
Supplemental Cash Flow Information [Abstract] | |||
Cash and cash equivalents | 395.6 | 142.1 | |
Restricted cash included in Other current assets | 9.3 | 7.6 | |
Cash and cash equivalents included in Current assets held for sale | 0 | 145.1 | |
Cash, cash equivalents and restricted cash | 404.9 | 294.8 | 1,398.3 |
Craftsman | |||
Financing Activities: | |||
Contingent consideration | (41.3) | (29.3) | (45.9) |
Consolidated Aerospace Manufacturing (CAM) | |||
Financing Activities: | |||
Contingent consideration | 0 | 0 | (94.4) |
Craftsman Deferred | |||
Financing Activities: | |||
Contingent consideration | $ 0 | $ 0 | $ (250) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareowners' Equity - USD ($) $ in Millions | Total | Cumulative effect adjustment | Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Retained Earnings Cumulative effect adjustment | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests |
Beginning balance at Dec. 28, 2019 | $ 9,142.2 | $ (3.8) | $ 1,230 | $ 442.3 | $ 4,767.6 | $ 6,768.1 | $ (3.8) | $ (1,884.6) | $ (2.3) | $ (2,184.8) | $ 5.9 |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net earnings | 1,234.7 | 1,233.8 | 0.9 | ||||||||
Other comprehensive income (loss) | 170.9 | 170.9 | |||||||||
Cash dividends declared ,shares | (431.8) | (431.8) | |||||||||
Cash dividends declared, preferred share | (23.4) | (23.4) | |||||||||
Issuance of common stock | 147 | (32.1) | 179.1 | ||||||||
Repurchase of common stock | (26.2) | 10 | (36.2) | ||||||||
Conversion of original Series C preferred stock | (4.6) | (610.4) | 113.2 | 492.6 | |||||||
Issuance of remarketed Series C Preferred Stock | 750 | 750 | |||||||||
Stock-based compensation related | 109.1 | 109.1 | |||||||||
ESOP | 2.3 | 2.3 | |||||||||
Beneficial conversion feature | 0 | 0.7 | (0.7) | ||||||||
Ending balance at Jan. 02, 2021 | 11,066.4 | 1,370.3 | 442.3 | 4,967.8 | 7,542.2 | (1,713.7) | 0 | (1,549.3) | 6.8 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net earnings | 1,687.5 | 1,689.2 | (1.7) | ||||||||
Other comprehensive income (loss) | (131.9) | (131.9) | |||||||||
Cash dividends declared ,shares | (474.8) | (474.8) | |||||||||
Cash dividends declared, preferred share | (14.2) | (14.2) | |||||||||
Issuance of common stock | 131.4 | (19) | 150.4 | ||||||||
Repurchase of common stock | (34.3) | 72.2 | (106.5) | ||||||||
Redemption and conversion of preferred stock | (750) | (750) | (137.3) | 137.3 | |||||||
Non-controlling interest buyout | (6) | (2.8) | (3.2) | ||||||||
Stock-based compensation related | 118.3 | 118.3 | |||||||||
Ending balance at Jan. 01, 2022 | 11,592.4 | 620.3 | 442.3 | 4,999.2 | 8,742.4 | (1,845.6) | 0 | (1,368.1) | 1.9 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net earnings | 1,062.7 | 1,062.5 | 0.2 | ||||||||
Other comprehensive income (loss) | (273.9) | (273.9) | |||||||||
Cash dividends declared ,shares | (465.8) | (465.8) | |||||||||
Cash dividends declared, preferred share | (5.8) | (5.8) | |||||||||
Issuance of common stock | 38.7 | (76.9) | 115.6 | ||||||||
Repurchase of common stock | (2,323) | (2,323) | |||||||||
Conversion of original Series D Preferred Stock | (1.8) | (620.3) | 42.6 | 575.9 | |||||||
Issuance of remarketed Series C Preferred Stock | 750 | 750 | |||||||||
Redemption and conversion of preferred stock | (750) | (750) | |||||||||
Stock-based compensation related | 90.7 | 90.7 | |||||||||
Ending balance at Dec. 31, 2022 | $ 9,714.2 | $ 0 | $ 442.3 | $ 5,055.6 | $ 9,333.3 | $ (2,119.5) | $ 0 | $ (2,999.6) | $ 2.1 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareowners' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Accounting standards update, extensible enumeration | Accounting Standards Update 2016-13 [Member] | |||
Cash dividends declared (in dollars per share) | $ 3.18 | $ 2.98 | $ 2.78 | |
Cash dividend declared, preferred share (in dollars per share) | $ 75 | $ 50 | $ 50 | |
Issuance of common stock (in shares) | 988,474 | 1,636,532 | 2,010,644 | |
Repurchase of common stock (in shares) | 16,057,220 | 529,073 | 228,541 | |
Redemption of remarketed Series D preferred stock (in shares) | 750,000 | |||
Conversion of original Series C preferred stock (in shares) | 4,723,500 | 5,463,750 | ||
Redemption and conversion of preferred stock (in shares) | 1,469,055 | |||
Issuance of remarketed Series D preferred stock (in shares) | 750,000 | |||
Net earnings | $ 1,062.7 | $ 1,687.5 | $ 1,234.7 | |
Other comprehensive income (loss) | $ (273.9) | $ (131.9) | $ 170.9 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement [Abstract] | |
Gain on sale of discontinued operations | $ 1,197.4 |
Income taxes for gain on Security sale | $ 312.5 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, 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, 2022, January 1, 2022, and January 2, 2021 (Millions of Dollars) ADDITIONS Beginning Charged To Charged (a) Ending Allowance for Credit Losses: Year Ended 2022 $ 95.9 $ 14.3 $ 16.9 $ (20.5) $ 106.6 Year Ended 2021 $ 106.2 $ — $ 3.8 $ (14.1) $ 95.9 Year Ended 2020 $ 91.5 $ 24.6 $ 7.4 $ (17.3) $ 106.2 Tax Valuation Allowance: Year Ended 2022 (c) $ 1,067.2 $ 21.2 $ (5.9) $ (50.0) $ 1,032.5 Year Ended 2021 $ 1,001.9 $ 190.7 $ 61.1 $ (186.5) $ 1,067.2 Year Ended 2020 $ 1,006.4 $ 296.9 $ (18.2) $ (283.2) $ 1,001.9 (a) With respect to the allowance for credit losses, deductions represent amounts charged-off less recoveries of accounts previously charged-off. (b) Amounts represent the impact of foreign currency translation, acquisitions, divestitures 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. The prior year amounts in the table above have been recast to exclude the amounts relating to businesses classified as discontinued operations. Refer to Note T, Divestitures , of the Notes to Consolidated Financial Statements in Item 8 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 fiscal years 2022 and 2021, and 53 weeks in the fiscal year 2020. On August 19, 2022, the Company completed the sale of its Oil & Gas business. This divestiture does not qualify for discontinued operations, and therefore, the results of the Oil & Gas business are included in the Company's continuing operations for all periods presented through the date of sale. There were no assets or liabilities held for sale relating to the Oil & Gas business as of January 1, 2022. On July 22, 2022, the Company completed the previously announced sale of its Convergent Security Solutions ("CSS") business comprised of the commercial electronic security and healthcare businesses. On July 5, 2022, the Company completed the previously announced sale of its Mechanical Access Solutions ("MAS") business, the automatic doors business. The assets and liabilities related to CSS and MAS are classified as held for sale on the Company's Consolidated Balance Sheets as of January 1, 2022. The CSS and MAS divestitures represent a single plan to exit the Security segment and are considered a strategic shift that will have a major effect on the Company’s operations and financial results. The operating results of CSS and MAS have been reported as discontinued operations in the Consolidated Financial Statements. Amounts previously reported have been reclassified to conform to this presentation in accordance with Accounting Standards Codification ("ASC") 205, Presentation of Financial Statements ("ASC 205"), to allow for meaningful comparison of continuing operations. In November 2020, the Company sold its commercial electronic security businesses in five countries in Europe and emerging markets within the Security segment. In October 2020, the Company sold a product line in Oil & Gas within the Industrial segment. The operating results of these businesses have been reported in the Consolidated Financial Statements through their respective dates of sale in 2020. The divestitures above are part of the Company's strategic commitment to simplify and streamline its portfolio to focus on the core Tools & Outdoor and Industrial businesses. Refer to Note T, Divestitures , for further discussion on these transactions. In December 2021, the Company acquired the remaining 80 percent ownership stake in MTD Holdings Inc. ("MTD"), a privately held global manufacturer of outdoor power equipment. The Company previously acquired a 20 percent interest in MTD in January 2019. Prior to closing on the remaining 80 percent ownership stake, the Company applied the equity method of accounting to the 20% investment in MTD. In November 2021, the Company acquired Excel Industries ("Excel"), a leading designer and manufacturer of premium commercial and residential turf-care equipment. These acquisitions were accounted for as business combinations using the acquisition method of accounting and the results subsequent to the dates of acquisition are included in the Company's Tools & Outdoor segment. In February 2020, the Company acquired Consolidated Aerospace Manufacturing, LLC ("CAM"). This acquisition was accounted for as a business combination using the acquisition method of accounting and the results subsequent to the date of acquisition are included in the Company's Industrial segment. Refer to Note E, Acquisitions and Investments , for further discussion on these transactions. 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 previous years have been reclassified to conform to the 2022 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 credit losses. 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. The Company's payment terms are generally consistent with the industries in which its businesses operate and typically range from 30-90 days globally. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. The Company does not adjust the promised amount of consideration for the effects of a significant financing component when the period between transfer of the product and receipt of payment is less than one year. Any significant financing components for contracts greater than one year are included in revenue over time. ALLOWANCE FOR CREDIT LOSSES — The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables. The allowance is determined using two methods. The amounts calculated from each of these methods are combined to determine the total amount reserved. 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 rates, write-off experience, and forecasts of future economic conditions. 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 and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. Refer to Note C, Inventories , Net , 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 Land improvements 10 — 20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 7 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 generally 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 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 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 a 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. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For a qualitative assessment, 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 royalty savings attributable to owning the intangible assets. Intangible assets with definite lives are amortized over their estimated useful lives to reflect 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 2022, 2021 or 2020 as part of the Company's annual impairment testing. Goodwill totaling $39.0 million was allocated to the Oil & Gas business based on the relative fair value of the business disposed, resulting in a reduction of goodwill which was included in the impairment loss relating to the Oil & Gas business in the second quarter of 2022. 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. 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, may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. The Company recognizes all derivative instruments on the balance sheet 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) ("OCI"), 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 included in the assessment of effectiveness, are recorded in OCI 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 accumulated other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in OCI and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis in Other, net over the term of the hedge. 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. Changes in the fair value of derivatives not designated as hedges are reported in Other, net in the Consolidated Statements of Operations. Refer to Note I, Financial Instruments , for further discussion. REVENUE RECOGNITION — The Company’s revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). For its contracts with customers, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. The majority of the Company’s revenues are recorded at a point in time from the sale of tangible products. A portion of the Company’s revenues within the Oil & Gas business, disposed in the third quarter of 2022, were generated from equipment leased to custome rs. Customer arrangements are identified as leases if they include transfer of a tangible asset which is provided to the customer in exchange for payments typically at fixed rates payable monthly, quarterly or annually. Customer leases may include terms to allow for extension of leases for a short period of time, but typically do not provide for customer termination prior to the initial term. Some customer leases include terms to allow the customer to purchase the underlying asset, which occurs occasionally, and virtually no customer leases include residual value guarantee clauses. For Oil & Gas leases, underlying assets were assessed for functionality at termination of the lease and, if necessary, an impairment to the leased asset value was recorded. Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated using historical averages adjusted for any expected changes due to current business conditions. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense. The Company’s revenues can be generated from contracts with multiple performance obligations. When a contract involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation. The Company utilized the output method for contract sales in the Oil & Gas business. The output method recognizes revenue based on direct measurements of the customer value of the goods or services transferred to date relative to the remaining goods or services promised under the contract. The output method includes methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered. The Company sold the Oil & Gas business in the third quarter of 2022. Refer to Note T, Divestitures , for further discussion Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. Incremental costs of obtaining or fulfilling a contract with a customer that are expected to be recovered are recognized and classified in Other current assets or Other assets in the Consolidated Balance Sheets and are typically amortized over the contract period. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less. 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, as appropriate, in the Consolidated Balance Sheets. Refer to Note B, Accounts and Notes Receivable, Net, for further discussion. 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. Cost of sales is primarily comprised of 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. Selling, general & administrative costs ("SG&A") 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 $118.9 million in 2022, $98.6 million in 2021 and $76.6 million in 2020. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $358.1 million in 2022, $374.1 million in 2021 and $351.0 million in 2020. Cooperative advertising with customers classified as SG&A expense amounted to $31.8 million in 2022, $19.5 million in 2021 and $15.8 million in 2020. 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 and outbound freight are reported in Cost of sales. Other distribution costs, primarily relating to salary and facility costs, are classified in SG&A and amounted to $498.7 million, $416.1 million and $346.9 million in 2022, 2021 and 2020, 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 three 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 earnings in the period that includes the enactment date. The Company recognizes the tax on global intangible low-taxed income as a period expense in the period the tax is incurred. 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 carryforwards. 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 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, litigation, or other proceedings with taxing authorities. 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. Refer to Note Q, Income Taxes, for further discussion. EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to common shareowners 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 or the if-converted method, as applicable, when the effect is dilutive. NEW ACCOUNTING STANDARDS ADOPTED — In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The new standard improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency. The new standard requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company elected to early adopt this standard in the first quarter of 2022 and it did not have a material impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings per share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Equity (Subtopic 815-40). The new standard clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted this standard prospectively in the first quarter of 2022 and it did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06 , Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The new standard reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and amends the guidance for the derivatives scope exception for contracts in an entity's own equity. The standard also amends and makes targeted improvements to the related earnings per share guidance. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2022, using the modified retrospective method, which has no impact to prior periods. In accordance with the standard, the Company increased weighted-average shares outstanding used to calculate diluted earnings per share for the year ended December 31, 2022 by 3.6 million shares, as required by the use of the if-converted method for convertible instruments that may be settled in cash or shares. See Note J, Capital Stock , for further discussion. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The new standard provides optional expedients and exceptions that companies can apply during a limited time period to account for contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. Companies may elect to apply these optional expedients and exceptions beginning March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to clarify the scope of Topic 848 and provide explicit guidance to help companies applying optional expedients and exceptions . This ASU is effective immediately for all entities that have applied optional expedients and exceptions. The Company applied certain optional expedients and exceptions as needed to comply with regulatory and tax authorities for the transition to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date Topic of 848 , effective upon issuance, to defer the sunset date of Topic 848 from December 2022 to December 2024 following the cessation of LIBOR being moved to June 2023. The Com |
ACCOUNTS AND NOTES RECEIVABLE,
ACCOUNTS AND NOTES RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS AND NOTES RECEIVABLE, NET | ACCOUNTS AND NOTES RECEIVABLE, NET (Millions of Dollars) December 31, 2022 January 1, 2022 Trade accounts receivable $ 1,142.0 $ 1,398.2 Trade notes receivable 100.1 75.3 Other accounts receivable 95.5 104.1 Accounts and notes receivable 1,337.6 1,577.6 Allowance for credit losses (106.6) (95.9) Accounts and notes receivable, net $ 1,231.0 $ 1,481.7 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. The changes in the allowance for credit losses for the years ended December 31, 2022 and January 1, 2022 are as follows: (Millions of Dollars) 2022 2021 Balance beginning of period $ 95.9 $ 106.2 Charged to costs and expenses 14.3 — Other, including recoveries and deductions (a) (3.6) (10.3) Balance end of period $ 106.6 $ 95.9 (a) Amounts represent charge-offs less recoveries, the impacts of foreign currency translation, acquisitions, divestitures and net transfers to/from other accounts. At December 31, 2022 and January 1, 2022, the Industrial segment operating lease receivable was $0.7 million and $21.2 million, respectively, from leasing equipment to customers. Net sales The Company has an accounts receivable sale program. According to the terms, the Company sells certain of its trade accounts receivables at fair value to a wholly owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS"). The BRS, in turn, can sell such receivables to a third-party financial institution (“Purchaser”) for cash. The Purchaser’s maximum cash investment in the receivables at any time is $110.0 million . The purpose of the program is to provide liquidity to the Company. These transfers qualify as sales under ASC 860, Transfers and Servicing, and 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. At December 31, 2022, 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, 2022 and January 1, 2022, net receivables of approximately $110.0 million and $100.0 million, respectively, were derecognized. Proceeds from transfers of receivables to the Purchaser totaled $496.4 million and $447.7 million for the years ended December 31, 2022 and January 1, 2022, respectively, and payments to the Purchaser totaled $486.4 million and $434.5 million, respectively. The program resulted in a pre-tax loss of $4.1 million and $2.0 million for the years ended December 31, 2022 and January 1, 2022, respectively, which included service fees of $0.9 million and $0.9 million, 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 received upon the initial sale of the receivable. As of December 31, 2022 and January 1, 2022, the Company's deferred revenue totaled $122.9 million and $117.1 million, respectively, of which $29.6 million and $35.0 million, respectively, was classified as current. Revenue recognized for the years ended December 31, 2022 and January 1, 2022 that was previously deferred as of January 1, 2022 and January 2, 2021 totaled $22.9 million |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET (Millions of Dollars) December 31, 2022 January 1, 2022 Finished products $ 3,460.8 $ 3,486.2 Work in process 338.7 394.8 Raw materials 2,061.6 1,538.9 Total $ 5,861.1 $ 5,419.9 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (Millions of Dollars) December 31, 2022 January 1, 2022 Land $ 137.7 $ 143.1 Land improvements 59.7 60.8 Buildings 793.0 738.5 Leasehold improvements 191.7 167.2 Machinery and equipment 3,394.4 3,394.5 Computer software 501.4 470.6 Property, plant & equipment, gross $ 5,077.9 $ 4,974.7 Less: accumulated depreciation and amortization (2,724.8) (2,637.9) Property, plant & equipment, net $ 2,353.1 $ 2,336.8 Depreciation and amortization expense associated with property, plant and equipment was as follows: (Millions of Dollars) 2022 2021 2020 Depreciation $ 330.4 $ 326.3 $ 332.6 Amortization 39.3 47.7 43.9 Depreciation and amortization expense $ 369.7 $ 374.0 $ 376.5 The amounts above are inclusive of depreciation and amortization expense for discontinued operations amounting to |
ACQUISITIONS AND INVESTMENTS
ACQUISITIONS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS 2021 ACQUISITIONS MTD On December 1, 2021, the Company acquired the remaining 80 percent ownership stake in MTD, a privately held global manufacturer of outdoor power equipment, for $1.5 billion, net of cash acquired. The Company previously acquired a 20 percent interest in MTD in January 2019 for $234 million. The Company’s pre-existing 20 percent equity investment in MTD was remeasured at fair value of $295.1 million as of the transaction date based on the purchase price for the remaining 80 percent ownership, which was calculated using an EBITDA-based formula. As a result, the Company recorded a $68.0 million gain on investment during the fourth quarter of 2021. MTD designs, manufactures and distributes lawn tractors, zero turn ride on mowers, walk behind mowers, snow blowers, residential robotic mowers, hand-held outdoor power equipment and garden tools for both residential and professional consumers under well-known brands like CUB CADET® and TROY-BILT®. This combination created a global leader in the outdoor category, with strong brands and growth opportunities. The results of MTD subsequent to the date of acquisition are included in the Company's Tools & Outdoor segment. The MTD acquisition was accounted for as a business combination using the acquisition method of accounting, which requires, among other things, certain assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The acquisition accounting for MTD is complete. The measurement period adjustments recorded in 2022, primarily related to working capital accounts and opening balance sheet contingencies, did not have a material impact to the Company's Consolidated Financial Statements. The following table summarizes the acquisition date value of identifiable net assets acquired and liabilities assumed adjusted for measurement period adjustments: (Millions of Dollars) Cash and cash equivalents $ 111.5 Accounts receivable, net 270.5 Inventories, net 855.7 Prepaid expenses and other assets 56.9 Property, plant and equipment 256.9 Trade names 390.0 Customer relationships 460.0 Other assets 38.5 Accounts payable (394.6) Accrued expenses (201.1) Deferred revenue (0.9) Long-term debt (110.9) Deferred taxes (214.3) Other liabilities (68.4) Total identifiable net assets $ 1,449.8 Goodwill 486.9 Total consideration $ 1,936.7 The weighted-average useful life assigned to the definite-lived intangible assets was 15 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business and assembled workforce. Goodwill of $0.6 million will be deductible for tax purposes. Excel On November 12, 2021, the Company acquired Excel Industries ("Excel") for $373.7 million, net of cash acquired. Excel is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the HUSTLER® brand. Excel was a strategically important bolt-on acquisition as the Company builds an outdoor products leader. The results of Excel subsequent to the date of acquisition are included in the Company's Tools & Outdoor segment. The Excel acquisition was accounted for as a business combination using the acquisition method of accounting. The acquisition accounting for Excel is complete. The measurement period adjustments recorded in 2022 did not have a material impact to the Company's Consolidated Financial Statements. The acquisition date value of identifiable net assets acquired, which included $31.4 million of working capital, $43.6 million of deferred tax liabilities, and $203.5 million of intangible assets, was $195.5 million. The related goodwill was $178.2 million. The amount allocated to intangible assets included $158.0 million for customer relationships. The weighted-average useful life assigned to the intangible assets was 14 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business and assembled workforce. Goodwill is not expected to be deductible for tax purposes. Other 2021 Acquisitions During 2021, the Company completed two other acquisitions for a total purchase price of $202.7 million, net of cash acquired. The acquisition date value of the identifiable net assets acquired was $43.9 million and working capital was $30.6 million. The related goodwill was $158.8 million. The acquisition accounting for these acquisitions is complete. The measurement period adjustments recorded in 2022 did not have a material impact to the Company's Consolidated Financial Statements. The results of these acquisitions subsequent to the dates of acquisition are included in the Company's Tools & Outdoor segment. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business and assembled workforce. Goodwill of $47.9 million related to these acquisitions will be deductible for tax purposes. 2020 ACQUISITION CAM On February 24, 2020, the Company acquired CAM for a total estimated purchase price of approximately $1.46 billion, net of cash acquired. The purchase price consisted of an initial cash payment of approximately $1.30 billion, net of cash acquired, and future payments up to $200.0 million contingent on The Boeing Company ("Boeing") 737 MAX Airplanes receiving Federal Aviation Administration ("FAA") authorization to return to service and Boeing achieving certain production levels, which were valued at $155.3 million as of the acquisition date. In November 2020, the FAA rescinded the 737 MAX grounding order and as a result of the subsequent return to revenue service of the 737 MAX in December 2020, the Company paid $100.0 million to the former owners of CAM. The remaining contingent consideration was remeasured at January 2, 2021 and the Company concluded the achievement of certain production levels based on Boeing’s future forecast was remote and released the remaining $55.3 million contingent consideration liability in the fourth quarter of 2020 to the Consolidated Statements of Operations in Other, net. The period for the remaining contingent consideration ended in June 2022 and, consistent with the Company's expectations, Boeing did not meet the required production levels at that time. CAM is an industry-leading manufacturer of specialty fasteners and components for the aerospace and defense markets. The acquisition further diversified the Company's presence in the industrial markets and expanded its portfolio of specialty fasteners in the aerospace and defense markets. The results of CAM subsequent to the date of acquisition are included in the Company's Industrial segment. The CAM acquisition was accounted for as a business combination using the acquisition method of accounting. The following table summarizes the acquisition date value of identifiable net assets acquired and liabilities assumed adjusted for measurement period adjustments: (Millions of Dollars) Cash and cash equivalents $ 35.8 Accounts receivable, net 48.3 Inventories, net 124.3 Prepaid expenses and other assets 2.6 Property, plant and equipment 127.9 Trade names 25.0 Customer relationships 565.0 Accounts payable (25.9) Accrued expenses (26.9) Deferred taxes (16.3) Other liabilities (0.3) Total identifiable net assets $ 859.5 Goodwill 632.3 Contingent consideration (155.3) Total consideration paid $ 1,336.5 The weighted-average useful life assigned to the intangible assets was 20 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business and assembled workforce. Goodwill of $569.8 million will be deductible for tax purposes. ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS Actual Impact from Acquisitions The Company did not complete any material acquisitions during 2022. As such, there was no material impact from new acquisitions on the Company's Consolidated Statements of Operations for the year ended December 31, 2022. Pro-forma Impact from Acquisitions The following table presents supplemental pro-forma information as if the 2021 acquisitions had occurred on December 29, 2019. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net sales and net earnings would have been had the Company completed the acquisitions on the aforementioned date. In addition, the pro-forma consolidated results do not purport to project the future results of the Company. (Millions of Dollars, except per share amounts) 2022 2021 Net sales $ 16,947.4 $ 17,890.8 Net earnings from continuing operations attributable to common shareowners - Diluted 318.3 1,666.0 Diluted earnings per share of common stock - Continuing operations $ 2.03 $ 10.10 2022 Pro-forma Results The 2022 pro-forma results were calculated by combining the actual results of Stanley Black & Decker, Inc. for the year ended December 31, 2022, inclusive of the results of MTD and Excel, with the following adjustment: • Because the 2021 acquisitions were assumed to occur on December 29, 2019, there were no acquisition-related costs or inventory step-up charges factored into the 2022 pro-forma period, as such expenses would have occurred in the first year following the assumed acquisition date. 2021 Pro-forma Results The 2021 pro-forma results were calculated by combining the results of Stanley Black & Decker, Inc. with the stand-alone results of the 2021 acquisitions for their respective pre-acquisition period. Accordingly, the following adjustments were made: • Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the acquisition accounting that would have been incurred from January 2, 2021 to the acquisition dates. • Because the 2021 acquisitions were assumed to occur on December 29, 2019, there were no acquisition-related costs or inventory step-up charges factored into the 2021 pro-forma year, as such expenses would have occurred in the first year following the assumed acquisition date. • Because the MTD acquisition was assumed to occur on December 29, 2019, the gain on investment and remeasurement of the Craftsman contingent consideration liability due to additional forecasted Craftsman sales resulting from the acquisition of MTD was not factored into the 2021 pro-forma year, as such gain and expense would have occurred in the first year following the assumed acquisition date. INVESTMENTS |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
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 & Outdoor Industrial Total Balance January 2, 2021 $ 5,246.6 $ 2,646.5 $ 7,893.1 Acquisitions 777.3 (0.5) 776.8 Foreign currency translation and other (50.2) (29.0) (79.2) Balance January 1, 2022 $ 5,973.7 $ 2,617.0 $ 8,590.7 Acquisitions 90.5 — 90.5 Foreign currency translation and other (124.5) (54.0) (178.5) Balance December 31, 2022 $ 5,939.7 $ 2,563.0 $ 8,502.7 Goodwill totaling $2,088.0 million and $2,143.9 million from the previously reported Security segment was reclassified to assets held for sale as of January 1, 2022 and January 2, 2021, respectively. In July 2022, the Company completed the sale of its Security segment and $2,001.4 million of goodwill was included in the gain on sale in the third quarter of 2022. In addition, $39.0 million of goodwill was allocated to the Oil & Gas business based on the relative fair value of the business disposed, and was included in the determination of the impairment loss relating to the Oil & Gas business in the second quarter of 2022. Refer to Note T, Divestitures , for further discussion. As required by the Company's policy, goodwill and indefinite-lived trade names were tested for impairment in the third quarter of 2022. The Company assessed the fair values of its three reporting units utilizing a discounted cash flow valuation model. The key assumptions used were discount rates and perpetual growth rates applied to cash flow projections. Also inherent in the discounted cash flow valuations were near-term revenue growth rates over the next six years. These assumptions contemplated business, market and overall economic conditions. Based on the results of the annual impairment testing performed in the third quarter of 2022, the Company determined that the fair values of each of its reporting units exceeded their respective carrying amounts. INTANGIBLE ASSETS — Intangible assets at December 31, 2022 and January 1, 2022 were as follows: 2022 2021 (Millions of Dollars) Gross Accumulated Gross Accumulated Amortized Intangible Assets — Definite lived Patents and copyrights $ 25.8 $ (25.6) $ 27.0 $ (26.6) Trade names 247.7 (118.0) 275.9 (118.8) Customer relationships 2,881.2 (1,059.9) 3,027.5 (1,027.5) Other intangible assets 129.6 (122.0) 147.6 (134.8) Total $ 3,284.3 $ (1,325.5) $ 3,478.0 $ (1,307.7) Net intangibles totaling $182.2 million were recognized as assets held for sale as of January 1, 2022. Indefinite-lived trade names totaled $2.516 billion at December 31, 2022 and $2.525 billion at January 1, 2022. The year-over-year change is primarily due to currency fluctuations. The fair values of the Company's indefinite-lived trade names were assessed using 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 the annual impairment testing performed in the third quarter of 2022, the Company determined that the fair values of its indefinite-lived trade names exceeded their respective carrying amounts. Intangible assets amortization expense by segment was as follows: (Millions of Dollars) 2022 2021 2020 Tools & Outdoor $ 108.1 $ 64.1 $ 61.5 Industrial 94.4 99.9 96.6 Discontinued Operations — 39.1 43.5 Consolidated $ 202.5 $ 203.1 $ 201.6 Future amortization expense in each of the next five years amounts to $191.3 million for 2023, $186.1 million for 2024, $172.8 million for 2025, $162.2 million for 2026, $154.1 million for 2027 and $1,092.3 million thereafter. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES (Millions of Dollars) December 31, 2022 January 1, 2022 Payroll and related taxes $ 192.0 $ 346.4 Income and other taxes 260.7 306.0 Customer rebates and sales returns 376.6 408.5 Insurance and benefits 95.3 83.0 Restructuring costs 62.3 31.7 Derivative financial instruments 16.1 8.7 Warranty costs 99.8 103.6 Deferred revenue 29.6 35.0 Freight costs 220.3 221.9 Environmental costs 39.4 46.1 Current lease liability 114.1 115.5 Forward stock purchase contract — 330.4 Accrued interest 49.0 80.7 Other 565.5 523.5 Total $ 2,120.7 $ 2,641.0 |
LONG-TERM DEBT AND FINANCING AR
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS December 31, 2022 January 1, 2022 (Millions of Dollars) Interest Rate Notional Value Unamortized Discount Unamortized Gain (Loss) Terminated Swaps 1 Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2025 2.30% $ 500.0 $ (0.5) $ — $ — $ (1.8) $ 497.7 $ — Notes payable due 2026 3.40% 500.0 (0.3) — — (1.4) 498.3 497.8 Notes payable due 2026 3.42% 25.0 — — 1.4 — 26.4 24.9 Notes payable due 2026 1.84% 26.7 — — 1.3 — 28.0 28.4 Notes payable due 2028 7.05% 150.0 — 6.0 5.8 — 161.8 163.9 Notes payable due 2028 4.25% 500.0 (0.2) — — (2.6) 497.2 496.8 Notes payable due 2028 3.52% 50.0 — — 3.8 (0.1) 53.7 49.9 Notes payable due 2030 2.30% 750.0 (1.8) — — (3.7) 744.5 743.7 Notes payable due 2032 3.00% 500.0 (0.9) — — (3.2) 495.9 — Notes payable due 2040 5.20% 400.0 (0.2) (26.1) — (2.4) 371.3 369.7 Notes payable due 2048 4.85% 500.0 (0.5) — — (4.7) 494.8 494.6 Notes payable due 2050 2.75% 750.0 (1.9) — — (7.8) 740.3 740.0 Notes payable due 2060 (junior subordinated) 4.00% 750.0 — — — (8.8) 741.2 740.9 Other, payable in varying amounts 2024 through 2027 4.10%-4.31% 3.0 — — — — 3.0 4.3 Total long-term debt, including current maturities $ 5,404.7 $ (6.3) $ (20.1) $ 12.3 $ (36.5) $ 5,354.1 $ 4,354.9 Less: Current maturities of long-term debt (1.2) (1.3) Long-term debt $ 5,352.9 $ 4,353.6 1 Unamortized gain (loss) associated with interest rate swaps are more fully discussed in Note I, Financial Instruments. As of December 31, 2022, the total aggregate annual principal maturities of long-term debt for the next five years and thereafter are as follows: $1.2 million in 2023, $1.1 million in 2024, $500.5 million in 2025, $551.9 million in 2026, and $4,350.0 million thereafter. There are immaterial principal maturities of long-term debt in 2027. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $12.3 million of unamortized fair value adjustments made in acquisition accounting, which increased the Black & Decker note payable due 2028 and MTD notes payable due 2026 and 2028, as well as a net loss of $26.4 million pertaining to unamortized termination gains and losses on interest rate swaps and unamortized discounts on the notes as described in Note I, Financial Instruments, and $36.5 million of unamortized deferred financing fees. In February 2022, the Company issued $500.0 million of senior unsecured term notes maturing February 24, 2025 ("2025 Term Notes") and $500.0 million of senior unsecured term notes maturing May 15, 2032 (“2032 Term Notes”). The 2025 Term Notes accrue interest at a fixed rate of 2.3% per annum and the 2032 Term Notes at a fixed rate of 3.0% per annum, with interest payable semi-annually in arrears, and rank equally in right of payment with all of the Company's existing and future unsecured unsubordinated debt. The Company received total net proceeds from this offering of approximately $992.6 million, net of approximately $7.4 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 indebtedness under the commercial paper facilities. In 2021, the Company assumed $110.9 million and $3.0 million of long-term debt from the acquisitions of MTD and Excel, respectively. In November 2020, the Company redeemed the 3.4% senior unsecured term notes due 2021 (“2021 Term Notes”) and the 2.9% senior unsecured term notes due 2022 (“2022 Term Notes”) for approximately $1.2 billion representing the outstanding principal amounts, accrued and unpaid interest, and a make-whole premium. The Company recognized a net pre-tax loss of $46.9 million from the extinguishment, which was comprised of the $48.7 million make-whole premium payment and a $1.7 million loss related to the write-off of deferred financing fees, partially offset by a $3.5 million gain relating to the write-off of unamortized fair value swap terminations. The Company also recognized a pre-tax loss of $19.6 million relating to the unamortized loss on cash flow swap terminations related to the 2022 Term Notes. Refer to Note I, Financial Instruments, for further discussion. Commercial Paper and Credit Facilities The Company has a $3.5 billion commercial paper program which includes Euro denominated borrowings in addition to U.S. Dollars. As of December 31, 2022 and January 1, 2022, the Company had commercial paper borrowings outstanding of $2.1 billion and $2.2 billion, respectively. The Company has a five-year $2.5 billion committed credit facility (the “5-Year Credit Agreement”). Borrowings under the 5-Year Credit Agreement may be made in U.S. Dollars, Euros or Pounds Sterling. A sub-limit amount of $814.3 million is designated for swing line advances which may be drawn in Euros pursuant to the terms of the 5-Year Credit Agreement. Borrowings bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and specific terms of the 5-Year Credit Agreement. The Company must repay all advances under the 5-Year Credit Agreement by the earlier of September 8, 2026 or upon termination. The 5-Year Credit Agreement is designated to be a liquidity back-stop for the Company's $3.5 billion U.S. Dollar and Euro commercial paper program. As of December 31, 2022, and January 1, 2022, the Company had not drawn on its five-year committed credit facility. In September 2022, the Company terminated its 364-D ay $1.0 billion comm itted credit facility (the "364-Day Credit Agreement"), dated September 2021. There were no outstanding borrowings under the 364-Day Credit Agreement upon termination and as of January 1, 2022 . Contemporaneously, the Company entered into a $1.5 billion s yndicated 364-Day Credit Agreement (the “Syndicated 364-Day Credit Agreement”) which is a revolving credit loan. Borrowings under the Syndicated 364-Day Credit Agreement may be made in U.S. Dollars or Euros and bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and pursuant to the terms of the Syndicated 364-Day Credit Agreement. The Company must repay all advances under the Syndicated 364-Day Credit Agreement by the earlier of September 6, 2023 or upon termination. The Company may, however, convert all advances outstanding upon termination into a term loan that shall be repaid in full no later than the first anniversary of the termination date provided that the Company, among other things, pays a fee to the administrative agent for the account of each lender. The Syndicated 364-Day Credit Agreement serves as part of the liquidity back-stop for the Company’s $3.5 billion U.S. Dollar and Euro commercial paper program. As of December 31, 2022, the Company had not drawn on its Syndicated 364-Day Credit Agreement . In September 2022, the Company terminated its second 364-Day $1.0 billion committed credit facility (the "Second 364-Day Credit A greement"), dated November 2021, and replaced it with a $0.5 billion revolving credit loan (the "Club 364-Day Credit Agreement"). There were no outstanding borrowings under the Second 364-Day Credit Agreement upon termination and as of January 1, 2022 . Borrowings under the Club 364-Day Credit Agreement may be made in U.S. Dollars and Euros and bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and pursuant to the terms of the Club 364-Day Credit Agreement. The Company must repay all advances under the Club 364-Day Credit Agreement by the earlier of September 6, 2023 or u pon termination. The Company may, however, convert all advances outstanding upon termination into a term loan that shall be repaid in full no later than the firs t anniversary of the termination date provided that the Company, among other things, pays a fee to the administrative agent for the account of each lender. As of December 31, 2022, the Company had not drawn on its Club 364-Day Credit Agreement . In August 2022, the Company paid $2.5 billion to settle the outstanding amount of its third 364-Day committed credit facility (the "Third 364-Day Credit Agreement"), dated January 2022, usi ng proceeds from the sales of the Security and Oil & Gas businesses and subsequently terminated the agreement. There were no outstanding borrowings under the Third 364-Day Credit Agreement upon terminatio n. The Company did not incur any termination penalties in connection with the termination. In addition, the Company has other short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating to $281.8 million, of which $191.8 million was available at December 31, 2022. The $90 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. Short-term arrangements are reviewed annually for renewal. At December 31, 2022, the aggregate amount of short-term and long-term committed and uncommitted lines of credit was approximately $4.8 billion. In addition, at December 31, 2022, $2.1 billion was recorded as short-term commercial paper borrowings. The weighted-average interest rates on U.S. dollar denominated short-term borrowings for the years ended December 31, 2022 and January 1, 2022 were 2.3% and 0.1%, respectively. The weighted-average interest rate on Euro denominated short-term borrowings for the year ended January 1, 2022 was negative 0.5%. For the year ended December 31, 2022, the Company had not drawn on its Euro denominated short-term borrowings. Interest paid relating to the Company's indebtedness, including long-term debt and commercial paper borrowings, during 2022, 2021 and 2020 amounted to $320.8 million, $177.1 million and $191.6 million, respectively. The Company has an interest coverage covenant that must be maintained to permit continued access to its committed credit facilities described above. The interest coverage ratio tested for covenant compliance compares adjusted Earnings Before Interest, Taxes, Depreciation and Amortization to adjusted Interest Expense ("Adjusted EBITDA"/"Adjusted Interest Expense"). In February 2023, the Company entered into amendments to its 5-Year Credit Agreement, Syndicated 364-Day Credit Agreement, and Club 364-Day Credit Agreement to: (a) amend the definition of Adjusted EBITDA to allow for additional adjustment addbacks, not to exceed $500 million in the aggregate, for amounts incurred during each four fiscal quarter period beginning with the period ending in the third quarter of 2023 through the period ending in the second quarter of 2024, and (b) amend the minimum interest coverage ratio from 3.5 times to not less than 1.5 to 1.0 times computed quarterly, on a rolling twelve months (last twelve months) basis, for the period from and including the third quarter of 2023 through the second quarter of 2024. The minimum interest coverage ratio will revert back to 3.5 times for periods after the second quarter of 2024. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 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, may be 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, 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, 2022 and January 1, 2022 follows: (Millions of Dollars) Balance Sheet 2022 2021 Balance Sheet 2022 2021 Derivatives designated as hedging instruments: Interest Rate Contracts Cash Flow Other current assets $ — $ 1.2 Accrued expenses $ — $ 1.9 Foreign Exchange Contracts Cash Flow Other current assets 4.5 18.3 Accrued expenses 4.2 0.8 Net Investment Hedge Other current assets — 2.5 Accrued expenses — — LT other assets — 3.3 LT other liabilities — — Total Designated as hedging instruments $ 4.5 $ 25.3 $ 4.2 $ 2.7 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 7.7 $ 7.8 Accrued expenses $ 11.9 $ 6.0 Total $ 12.2 $ 33.1 $ 16.1 $ 8.7 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. As of December 31, 2022 and January 1, 2022, there were no assets that had been posted as collateral related to the above mentioned financial instruments. Cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $86.2 million in 2022, net cash paid of $166.8 million in 2021, and net cash received of $33.4 million in 2020. CASH FLOW HEDGES — There were after-tax mark-to-market losses of $44.5 million and $49.8 million as of December 31, 2022 and January 1, 2022, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $2.9 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 of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for 2022, 2021 and 2020: 2022 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ 23.4 Interest expense $ (5.8) $ — Foreign Exchange Contracts $ 30.6 Cost of sales $ 53.3 $ — 2021 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ 14.9 Interest expense $ (3.9) $ — Foreign Exchange Contracts $ 24.1 Cost of sales $ (26.1) $ — 2020 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ (70.9) Interest expense $ (16.3) $ — Foreign Exchange Contracts $ (16.1) Cost of sales $ 12.4 $ — A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations for 2022, 2021 and 2020 is as follows: 2022 2021 2020 (Millions of dollars) Cost of Sales Interest Expense Cost of Sales Interest Expense Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded $ 12,663.3 $ 338.5 $ 10,189.1 $ 185.4 $ 8,431.9 $ 222.7 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (53.3) $ — $ 26.1 $ — $ (12.4) $ — Gain (loss) reclassified from OCI into Income $ 53.3 $ — $ (26.1) $ — $ 12.4 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (5.8) $ — $ (3.9) $ — $ (16.3) 1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. For 2022, after-tax gains of $26.4 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. For 2021 and 2020, after-tax losses of $17.0 million and $15.4 million, respectively, were reclassified. 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. The cash flows stemming from the maturity and termination of such interest rate swaps designated as cash flow hedges discussed below are presented within financing activities in the Consolidated Statements of Cash Flows. The Company has no outstanding forward starting swaps as of December 31, 2022, and had $400.0 million of forward starting swaps outstanding as of January 1, 2022. During 2021, the Company entered into forward starting interest rate swaps totaling $400.0 million to offset expected variability on future interest rate payments associated with debt instruments expected to be issued in the future. During 2022, these swaps were terminated resulting in a gain of $22.7 million which was recorded in Accumulated other comprehensive loss and is being amortized to interest expense over future periods. In addition, during 2021, swaps entered into in 2019 totaling $400.0 million matured resulting in a loss of $75.3 million, which was recorded in Accumulated other comprehensive loss and is being amortized to interest expense over future periods. During 2020, the Company entered into forward starting interest rate swaps totaling $1.0 billion to offset expected variability on future interest rate payments associated with debt instruments expected to be issued in the future. The Company terminated these swaps in 2020 resulting in a loss of $20.5 million, which was recorded in Accumulated other comprehensive loss and is being amortized to interest expense over future periods. In December 2020, the Company redeemed all of the outstanding 2021 Term Notes and 2022 Term Notes, as further discussed in Note H, Long-Term Debt and Financing Arrangements. As a result, the Company recorded a pre-tax loss of $19.6 million relating to the remaining unamortized loss on cash flow swap terminations related to the 2022 Term Notes. 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 are recorded in Cost of sales as the hedged item affects earnings. There are no components excluded from the assessment of effectiveness for these contracts. At December 31, 2022, and January 1, 2022, the notional values of the forward currency contracts outstanding were $281.7 million, maturing in 2023, and $512.1 million, maturing in 2022, respectively. 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 prior years, the Company entered into interest rate swaps related to certain of its notes payable which were subsequently terminated. Amortization of the gain/loss on previously terminated swaps is reported as a reduction of interest expense. Prior to termination, the changes in fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. The Company did not have any active fair value interest rate swaps at December 31, 2022 or January 1, 2022. A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations for 2022, 2021 and 2020 is as follows: 2022 2021 2020 (Millions of dollars) Interest Expense Interest Expense Interest Expense Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded $ 338.5 $ 185.4 $ 222.7 Amortization of gain on terminated swaps $ (0.4) $ (0.4) $ (3.0) In December 2020, the Company redeemed all of the outstanding 2021 Term Notes and 2022 Term Notes, as further discussed in Note H, Long-Term Debt and Financing Arrangements. As a result, the Company recorded a pre-tax gain of $3.5 million relating to the remaining unamortized gain on fair value swap terminations related to the 2021 Term Notes. A summary of the amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of December 31, 2022 and January 1, 2022 is as follows: (Millions of dollars) 2022 Carrying Amount of Hedged Liability 1 2022 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current maturities of long-term debt $ 1.2 Terminated Swaps $ — Long-Term Debt $ 533.1 Terminated Swaps $ (20.1) 1 Represents hedged items no longer designated in qualifying fair value hedging relationships. (Millions of dollars) 2021 Carrying Amount of Hedged Liability 1 2021 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current maturities of long-term debt $ 1.3 Terminated Swaps $ — Long-Term Debt $ 533.6 Terminated Swaps $ (20.4) 1 Represents hedged items no longer designated in qualifying fair value hedging relationships. 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 gains of $73.8 million and $71.8 million at December 31, 2022 and January 1, 2022, respectively. As of December 31, 2022, the Company has no outstanding foreign exchange contracts. As of January 1, 2022, the Company had a foreign exchange contract with a notional value of $75.0 million maturing in 2022 hedging a portion of its Taiwan dollar denominated net investments and a cross currency swap with a notional value of $100.0 million maturing in 2023 hedging a portion of its Japanese yen denominated net investments. During 2022, this swap was terminated resulting in a gain of $4.0 million. Maturing foreign exchange contracts resulted in net cash received of $10.6 million in 2022, net cash paid of $55.1 million during 2021 and net cash received of $41.0 million during 2020. Gains and losses on net investment hedges remain in Accumulated other comprehensive loss until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness are recognized in earnings in Other, net on a straight-line basis over the term of the hedge. 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 gains and losses from fair value changes during 2022, 2021 and 2020 were as follows: 2022 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ 6.1 $ 0.6 Other, net $ 0.7 $ 0.7 Cross Currency Swap $ (1.2) $ 2.5 Other, net $ 1.5 $ 1.5 Non-derivative designated as Net Investment Hedge $ (0.1) $ — Other, net $ — $ — 2021 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ (1.2) $ 1.6 Other, net $ 1.5 $ 1.5 Cross Currency Swap $ 11.7 $ 24.6 Other, net $ 3.7 $ 3.7 Non-derivative designated as Net Investment Hedge $ (6.7) $ — Other, net $ — $ — 2020 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ 0.8 $ — Other, net $ — $ — Cross Currency Swap $ (5.4) $ 60.7 Other, net $ 18.2 $ 18.2 Non-derivative designated as Net Investment Hedge $ (8.5) $ — Other, net $ — $ — 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, 2022 was $1.1 billion maturing on various dates through 2023. The total notional amount of the forward contracts outstanding at January 1, 2022 was $1.2 billion maturing on various dates through 2022. The gain (loss) recorded in the Consolidated Statements of Operations from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for 2022, 2021 and 2020 are as follows: (Millions of Dollars) Income Statement 2022 2021 2020 Foreign Exchange Contracts Other-net $ 5.0 $ (10.8) $ (15.7) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, January 1, 2022, and January 2, 2021. 2022 2021 2020 Numerator (in millions): Net Earnings from Continuing Operations Attributable to Common Shareowners $ 164.3 $ 1,538.3 $ 1,129.8 Add: Contract adjustment payments accretion 1.2 1.3 1.7 Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted 165.5 1,539.6 1,131.5 Net earnings from discontinued operations 892.4 136.7 79.9 Net Earnings Attributable to Common Shareowners - Diluted $ 1,057.9 $ 1,676.3 $ 1,211.4 2022 2021 2020 Denominator (in thousands): Basic weighted-average shares outstanding 148,170 158,760 154,176 Dilutive effect of stock contracts and awards 8,383 6,264 8,251 Diluted weighted-average shares outstanding 156,553 165,024 162,427 Earnings per share of common stock: Basic earnings per share of common stock: Continuing operations $ 1.11 $ 9.69 $ 7.33 Discontinued operations $ 6.02 $ 0.86 $ 0.52 Total basic earnings per share of common stock $ 7.13 $ 10.55 $ 7.85 Diluted earnings per share of common stock: Continuing operations $ 1.06 $ 9.33 $ 6.97 Discontinued operations $ 5.70 $ 0.83 $ 0.49 Total dilutive earnings per share of common stock $ 6.76 $ 10.16 $ 7.46 The following weighted-average stock options were not included in the computation of weighted-average diluted shares outstanding because the effect would be anti-dilutive (in thousands): 2022 2021 2020 Number of stock options 4,019 1,039 2,376 In November 2019, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million ( “ 2019 Equity Units”). Each unit had a stated amount of $100 and initial ly consisted of a three-year forward stock purchase contract ( “ 2022 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on November 15, 2022, for a price of $100 and a 10% beneficial ownership interest in one share of 0% Series D Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share ( “ Series D Preferred Stock”). The shares associated with the forward stock purchase contracts component of the 2019 Equity Units have been reflected in diluted earnings per share using the if-converted method. In November 2022, the Company generated cash proceeds of $750 million from the successful remarketing of the Series D Preferred Stock (the "Remarketed Series D Preferred Stock"). Upon completion of the remarketing, the holders of the 2019 Equity Units received 4,723,500 common shares and the Company issued 750,000 shares of Remarketed Series D Preferred Stock. Holders of the Remarketed Series D Preferred Stock were entitled to receive cumulative dividends, if declared by the Board of Directors, at an initial fixed rate equal to 7.5% per annum of the $1,000 per share liquidation preference (equivalent to $75.00 per annum per share). On November 15, 2022, the Company informed holders that it would redeem all outstanding shares of the Remarketed Series D Preferred Stock on December 22, 2022 at $1,007.71 per share in cash, which was equal to 100% of the liquidation preference of a share of Remarketed Series D Preferred Stock, plus accumulated and unpaid dividends to, but excluding December 22, 2022. In December 2022, the Company redeemed the Remarketed Series D Preferred Stock, paying $750 million in cash. Upon the adoption of ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) , beginning in the first quarter of 2022, the common shares that would be required to settle the applicable conversion value of the Series D Preferred Stock were included in the denominator of diluted earnings per share using the if-converted method. In accordance with the standard, the Company increased weighted-average shares outstanding used to calculate diluted earnings per share for the year ended December 31, 2022 by 3.6 million shares. In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million ( “ 2017 Equity Units”). Each unit had a stated amount of $100 and initially consisted of a three-year forward stock purchase contract ( “ 2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). The shares associated with the forward stock purchase contracts component of the 2017 Equity Units have been reflected in diluted earnings per share using the if-converted method. In May 2020, the Company successfully remarketed the Series C Preferred Stock (the “ Remarketed Series C Preferred Stock”) resulting in cash proceeds of $750.0 million. Upon completion of the remarketing, the holders of the 2017 Equity Units received 5,463,750 common shares and the Company issued 750,000 shares of Remarketed Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. Holders of the Remarketed Series C Preferred Stock were entitled to receive cumulative dividends, if declared by the Board of Directors, at an initial fixed rate equal to 5.0% per annum of the $1,000 per share liquidation preference (equivalent to $50.00 per annum per share). Beginning on May 15, 2020, the holders had the option to convert the Remarketed Series C Preferred Stock into common stock. At the election of the Company, upon conversion, the Company could deliver cash, common stock, or a combination thereof. In connection with the remarketing, the conversion rate was reset to 6.7352 shares of the Company's common stock per one share of Remarketed Series C Preferred Stock, which was equivalent to a conversion price of approximately $148.47 per share of common stock. On April 28, 2021, the Company informed holders that it would redeem all outstanding shares of the Remarketed Series C Preferred Stock on June 3, 2021 at $1,002.50 per share in cash, which was equal to 100% of the liquidation preference of a share of Remarketed Series C Preferred Stock, plus accumulated and unpaid dividends to, but excluding June 3, 2021. If a holder elected to convert its shares of Remarketed Series C Preferred Stock prior to June 3, 2021, the Company elected a combination settlement with a specified cash amount of $1,000 per share. In June 2021, the Company redeemed the Remarketed Series C Preferred Stock and settled all conversions, paying $750 million in cash and issuing 1,469,055 common shares. The conversion rate used was 6.7548 (equivalent to a conversion price set at $148.04 per common share). Prior to the Series C redemption date, the Remarketed Series C Preferred Stock was excluded from the denominator of the diluted earnings per share calculation on the basis that the Remarketed Series C Preferred Stock would be settled in cash except to the extent that the conversion value exceeded its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference were included in the denominator of diluted earnings per share in periods in which they were dilutive. See “ Other Equity Arrangements” below for further details of the above transactions. COMMON STOCK ACTIVITY — Common stock activity for 2022, 2021 and 2020 was as follows: 2022 2021 2020 Outstanding, beginning of year 163,328,776 160,752,262 153,506,409 Issued from treasury 5,711,974 3,105,587 7,474,394 Returned to treasury (16,057,220) (529,073) (228,541) Outstanding, end of year 152,983,530 163,328,776 160,752,262 Shares subject to the forward share purchase contract (3,645,510) (3,645,510) (3,645,510) Outstanding, less shares subject to the forward share purchase contract 149,338,020 159,683,266 157,106,752 In March 2022, the Company executed accelerated share repurchase ("ASR") agreements with a notional amount of $2.0 billion, which was funded through borrowings under one of its existing 364-Day committed credit facilities. The ASR terms provided for an initial delivery of 85% of the total notional share equivalent at execution or 10,756,770 shares of common stock. In May 2022, the Company received an additional 3,211,317 shares in aggregate, determined by the volume-weighted average price of the Company’s common stock during the term of the transaction. The final shares delivered reflect a blended settlement price of $143.18 per share for the entire transaction. In February 2022, the Company also executed open market share repurchases for a total of 1,888,601 shares of common stock for $300.0 million. Upon completion of the remarketing of the Series D Preferred Stock in November 2022, the holders of the 2019 Equity Units received 4,723,500 common shares and the Company issued 750,000 shares of Remarketed Series D Preferred Stock. Upon completion of the remarketing of the Series C Preferred Stock in May 2020, the holders of the 2017 Equity Units received 5,463,750 shares of common stock and the Company issued 750,000 shares of Remarketed Series C Preferred Stock. In June 2021, the Company redeemed the Remarketed Series C Preferred Stock and settled all conversions, paying $750 million in cash and issuing 1,469,055 common shares. 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 2022, the Company amended the forward share purchase contract and updated the final settlement date to November 2024, 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. COMMON STOCK RESERVED — Common stock shares reserved for issuance under various employee and director stock plans at December 31, 2022 and January 1, 2022 are as follows: 2022 2021 Employee stock purchase plan 1,251,699 1,388,655 Other stock-based compensation plans 8,403,765 5,260,005 Total shares reserved 9,655,464 6,648,660 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. On February 16, 2022, the Board of Directors adopted the 2022 Omnibus Award Plan (the “2022 Plan”) and authorized the issuance of 9,800,000 shares of the Company’s common stock in connection with awards pursuant to the 2022 Plan and no further awards will be issued under the Company’s 2018 Omnibus Award Plan (the “2018 Plan”). As discussed further below, the Company has granted stock options, restricted share units and awards, performance stock units, and long-term performance awards, under the 2022 Plan and 2018 Plan to senior management employees and non-employee members of the Board of Directors. The plans are generally administered by the Compensation and Talent Development 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 common stock on the date of grant and have a maximum 10-year term. Generally, stock option grants vest ratably over three The following describes how certain assumptions affecting the estimated fair value of stock options are determined: the expected volatility is based on an average of the market implied volatility and historical volatility for the expected life; the dividend yield is computed as the annualized dividend rate at the date of the grant divided by the strike price of the stock option; the risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the option; and a forfeiture rate of seven to nine percent 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 2022, 2021 and 2020: 2022 2021 2020 Average expected volatility 38.6 % 34.0 % 35.0 % Dividend yield 3.7 % 1.6 % 1.6 % Risk-free interest rate 3.2 % 1.3 % 0.4 % Expected life 4.2 years 5.3 years 5.3 years Fair value per option $ 20.00 $ 52.39 $ 48.36 Weighted-average vesting period 1.7 years 2.9 years 2.8 years Stock Options: The number of stock options and weighted-average exercise prices as of December 31, 2022 are as follows: Options Price Outstanding, beginning of year 5,573,672 $ 151.46 Granted 868,139 78.83 Exercised (295,451) 86.30 Forfeited (864,647) 169.79 Outstanding, end of year 5,281,713 $ 140.22 Exercisable, end of year 3,591,149 $ 145.59 At December 31, 2022, the range of exercise prices on outstanding stock options was $77.83 to $193.97 per share. Stock option expense was $27.1 million, $36.4 million and $31.6 million for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. At December 31, 2022, the Company had $40.5 million of unrecognized pre-tax compensation expense for stock options. This expense will be recognized over the remaining vesting periods which are 2.3 years on a weighted-average basis. During 2022, the Company received $25.5 million in cash from the exercise of stock options. The related cash tax benefit from the exercise of these options wa s $1.2 million . During 2022, 2021 and 2020, the total intrinsic value of options exercised was $4.6 million, $85.3 million and $104.3 million, respectively. When options are exercised, the related shares are issued from treasury stock. 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. During 2022, the shortfall recognized was $0.1 million. During 2021 and 2020, the excess tax benefit arising from tax deductions in excess of recognized compensation cost totaled $14.1 million and $17.6 million, respectively, and was recorded in income tax expense. Outstanding and exercisable stock option information at December 31, 2022 follows: Outstanding Stock Options Exercisable Stock Options Exercise Price Ranges Options Weighted- Weighted- Options Weighted- Weighted- $100.00 and below 1,045,223 8.29 $ 80.46 207,890 1.69 $ 91.05 100.01 — 165.00 2,257,043 5.24 132.05 2,078,188 5.05 131.04 165.01 — higher 1,979,447 7.10 181.09 1,305,071 6.37 177.45 5,281,713 6.54 $ 140.22 3,591,149 5.34 $ 145.59 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, 2022, both the aggregate intrinsic value of stock options outstanding and stock options exercisable was zero. Employee Stock Purchase Plan: The Employee Stock Purchase Plan (“ESPP”) enables eligible employees in the United States, Canada and Israel to purchase shares of the Company's common stock at the lower of 85.0% of the fair market value of the shares on the grant date ($151.46 per share for fiscal year 2022 purchases) or 85.0% of the fair market value of the shares on the last business day of each month. A maximum of 1,600,000 shares are authorized for subscription. During 2022, 2021 and 2020, 136,956 shares, 92,307 shares and 119,038 shares, respectively, were issued under the plan at average prices of $96.09, $150.21, and $110.97 per share, respectively, and the intrinsic value of the ESPP purchases was $2.3 million, $3.9 million and $3.3 million, respectively. For 2022, the Company received $13.2 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 2022, 2021 and 2020, respectively: dividend yield of 1.7%, 1.6% and 1.7%; expected volatility of 25.0%, 55.0% and 28.0%; risk-free interest rates of 0.2%, 0.1%, and 1.6%; and expected lives of one year. The weighted-average fair value of those purchase rights granted in 2022, 2021 and 2020 was $38.51, $45.46 and $41.02, respectively. Total compensation expense recognized for ESPP was $3.3 million in 2022, $4.4 million in 2021 and $3.9 million in 2020. 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 three Total compensation expense recognized for RSUs amounted to $50.6 million, $47.3 million and $35.6 million in 2022, 2021 and 2020, respectively. The actual tax benefit received related to the shares that were delivered in 2022 was $6.2 million . The shortfall recognized in 2022 was $3.6 million. The e xcess tax benefit recognized in 2021 and 2020 was $2.5 million and $2.3 million, respectively. As of December 31, 2022, unrecognized compensation expense for RSUs amounted to $94.1 million and will be recognized over a weighted-average period of 1.9 years. A summary of non-vested restricted share units and award activity as of December 31, 2022, and changes during the year then ended is as follows: Restricted Share Weighted-Average Non-vested at January 1, 2022 978,351 $ 173.06 Granted 870,848 85.05 Vested (308,783) 163.11 Forfeited (273,954) 171.08 Non-vested at December 31, 2022 1,266,462 $ 115.02 The total fair value of vested RSUs (market value on the date vested) during 2022, 2021 and 2020 was $38.9 million, $53.3 million and $58.5 million, respectively. Prior to 2020, non-employee members of the Board of Directors received annual restricted share-based grants which must be cash settled and accordingly mark-to-market accounting is applied. In 2022, the Company recognized $9.8 million of income for these awards. In 2021 and 2020, the Company recognized $1.1 million and $1.6 million of expense for these awards, respectively. Beginning in 2020, the annual grant issued to non-employee members of the Board of Directors is stock settled. The expense related to the annual grant in 2022, 2021, and 2020 was $1.8 million, $2.0 million, and $1.4 million respectively. Additionally, members of the Board of Directors were granted restricted share units for which compensation expense of $1.2 million, $1.4 million, and $1.0 million was recognized for 2022, 2021 and 2020, respectively. Management Incentive Compensation Plan Performance Stock Units: In 2020 and 2019, the Company granted Performance Stock Units (collectively "MICP-PSUs") under the Management Incentive Compensation Plan ("MICP") to participating employees. Awards are payable in shares of common stock and generally no award is made if the employee terminates employment prior to the settlement dates. The delivery of the shares related to the 2020 and 2019 MICP-PSU grant will occur ratably in 2021, 2022, and 2023 for the 2020 MICP and in 2020, 2021, and 2022 for the 2019 MICP. The total shares to be delivered are based on actual 2020 and 2019 performance in relation to the established goals. A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: MICP PSUs Weighted-Average Non-vested at January 1, 2022 249,730 $ 100.73 Granted — — Vested (144,923) 104.32 Forfeited (37,109) 99.75 Non-vested at December 31, 2022 67,698 $ 93.58 Compensation cost for these performance awards is recognized ratably over the vesting term of three years. Total expense recognized in 2022, 2021 and 2020 related to these MICP-PSUs approximated $9.1 million, $15.7 million and $18.5 million, respectively. The actual tax benefit received related to the shares that were delivered in 2022 and 2021 was $3.6 million a nd $5.6 million, respectively. Long-Term Performance Awards: The Company has granted Long-Term Performance Awards (“LTIP”) under its 2022 Omnibus Award Plan and 2018 Omnibus Award Plan 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 settlement date. LTIP grants were made in 2020, 2021 and 2022. Each grant has two separate annual performance goals for each year within the respective three-year performance period and one market-based metric measured over the three-year performance period. Earnings per share and cash flow return on investment represent 75% of the grant value. The market-based metric, representing 25% of the total grant value measures the Company’s common stock return relative to peers over the three-year performance period. The ultimate delivery of shares will occur in 2023, 2024, and 2025 for the 2020, 2021 and 2022 grants, respectively. Share settlements are based on actual performance in relation to these goals. In 2022, income of $2.4 million was recognized related to these performance awards. Expense recognized for these performance awards amounted to $11.1 million in 2021 and $17.1 million in 2020. With the exception of the market-based metric comprising 25% of the award, in the event performance goals are not met, compensation cost is not recognized and any previously recognized compensation cost is reversed. The actual tax benefit received related to the shares that were delivered in 2022 and 2021 was $1.3 million and $0.8 million, respectively. The shortfall recognized in 2022 was less than $0.1 million. The excess tax benefit recognized was $0.1 million and $0.7 million in 2021 and 2020, respectively. A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: LTIP Units Weighted-Average Non-vested at January 1, 2022 649,806 $ 145.90 Granted 250,518 157.05 Vested (92,589) 123.56 Forfeited (273,149) 139.67 Non-vested at December 31, 2022 534,586 $ 158.18 OTHER EQUITY ARRANGEMENTS 2019 Equity Units and Capped Call Transactions In November 2019, in conjunction with the issuance of the 2019 Equity Units, as further discussed above, the Company received approximately $734.5 million in cash proceeds, net of offering expenses and underwriting costs and commissions. The proceeds were attributed to the issuance of 750,000 shares of Series D Preferred Stock for $620.3 million and $114.2 million for the present value of the quarterly payments to holders of the 2022 Purchase Contracts (“Contract Adjustment Payments”), as discussed further below. The proceeds were used, together with cash on hand, to redeem long-term debt. The Company also used $19.2 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. The 2019 Equity Units were accounted for as one unit of account based on the economic linkage between the 2022 Purchase Contracts and Series D Preferred Stock, as well as the combination criteria outlined in ASC 815. The 2019 Equity Units represented mandatorily convertible preferred stock. In November 2019, the Company issued 750,000 shares of Series D Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock initially did not bear any dividends and the liquidation preference of the convertible preferred stock did not accrete. The convertible preferred stock had no maturity date and remained outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock generally had no voting rights. The Series D Preferred Stock was pledged as collateral to support holders’ purchase obligations under the 2022 Purchase Contracts. In November 2022, upon completion of the remarketing, the holders of the 2019 Equity Units converted their Series D Preferred Stock, valued at $620.3 million, and received 4,723,500 common shares using a reference price of $131.32 per common share. The Company generated cash proceeds of $750.0 million from the successful remarketing and issued 750,000 shares of Remarketed Series D Preferred Stock. The Company paid Contract Adjustment Payments to holders of the 2022 Purchase Contracts at a rate of 5.25% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, which commenced on February 15, 2020. The $114.2 million present value of the Contract Adjustment Payments reduced the Series D Preferred Stock at inception. As each quarterly Contract Adjustment Payment was made, the related liability was reduced and the difference between the cash payment and the present value accreted to interest expense, approximately $1.3 million per year over the three-year term. On November 15, 2022, the Company paid the final contract adjustment payment related to the 2022 Purchase Contracts. Capped Call Transactions In order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series D Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference, the Company entered into capped call transactions with three major financial institutions. The Company paid $19.2 million, or an average of $4.90 per option, to enter into capped call transactions on 3.9 million shares of common stock. The $19.2 million premium paid was recorded as a reduction of Shareowners’ Equity. The capped call transactions had a term of approximately three years and were intended to cover the number of shares issuable upon conversion of the Series D Preferred Stock. Subject to customary anti-dilution adjustments, the capped call had an initial lower strike price of $191.34, which corresponded to the minimum 5.2263 settlement rate of the Series D Preferred Stock, and an upper strike price of $207.29, which was approximately 30% higher than the closing price of the Company’s common stock on November 7, 2019. In November 2022, the capped call options expired out of the money. 2017 Equity Units and Capped Call Transactions In conjunction with the issuance of the 2017 Equity Units in May 2017, as further discussed abo ve, t he Company received approximately $727.5 million in cash proceeds, net of offering expenses and underwriting costs and commissions. The proceeds were attributed to the issuance of 750,000 shares of Series C Preferred Stock for $605.0 million, $117.1 million for the present value of the Contract Adjustment Payments, and a beneficial conversion feature of $5.4 million. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. The 2017 Equity Units were accounted for as one unit of account based on the economic linkage between the 2020 Purchase Contracts and the Series C Preferred Stock, as well as the combination criteria outlined in ASC 815. The 2017 Equity Units represented mandatorily convertible preferred stock. In May 2017, the Company issued 750,000 shares of Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock initially did not bear any dividends and the liquidation preference of the convertible preferred stock did not accrete. The convertible preferred stock had no maturity date and remained outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock generally had no voting rights. The Series C Preferred Stock was pledged as collateral to support holders’ purchase obligations under the 2020 Purchase Contracts. As discussed further above, the Company successfully remarketed the Series C Preferred Stock in May 2020. Subsequent to the remarketing, holders of the Remarketed Series C Preferred Stock were entitled to receive, if declared by the Board of Directors, cumulative dividends (i) from, and including May 15, 2020 to, but excluding, May 15, 2023 (the "dividend step-up date ” ) at a fixed rate equal to 5.0% per annum of the $1,000 per share liquidation preference (equivalent to $50.00 per annum per share) and (ii) from, and including, the dividend step-up date at a fixed rate equal to 10.0% per annum of the $1,000 per share liquidation preference (equivalent to $100.00 per annum per share). Dividends were cumulative on the $1,000 liquidation preference per share and were payable, as declared by the Board of Directors, quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2020. Dividends accrued on the Remarketed Series C Preferred Stock reduced net earnings for purposes of calculating earnings per share. In May 2020, the Company generated cash proceeds of $750.0 million from the successful remarketing of the Series C Preferred Stock. Upon completion of the remarketing in May 2020, the holders of the 2017 Equity Units received 5,463,750 common shares using the maximum settlement rate of 0.7285 (equivalent to a reference price of $137.26 per common share), and the Company issued 750,000 shares of Remarketed Series C Preferred Stock. The Company paid Contract Adjustment Payments to the holders of the 2020 Purchase Contracts at a rate of 5.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, which commenced August 15, 2017. The $117.1 million initial present value of these Contract Adjustment Payments reduced the Series C Preferred Stock at inception. As each quarterly Contract Adjustment Payment was made, the related liability was reduced and the difference between the cash payments and the present value accreted to interest expense, approximately $1.3 million per year over the three-year term. On May 15, 2020, the Company paid the final contract adjustment payment related to the 2020 Purchase Contracts. Capped Call Transactions In May 2017, the Company entered into capped call transactions with three major financial institutions (the “counterparties”) in order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series C Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. The Company paid $25.1 million, or an average of $5.43 per option, to enter into capped call transactions on 4.6 million shares of common stock. The $25.1 million premium paid was recorded as a reduction of Shareowners' Equity. The capped call transactions had a term of approximately three years and were intended to cover the number of shares issuable upon conversion of the Series C Preferred Stock. Subject to customary anti-dilution adjustments, the capped call had an initial lower strike price of $162.27, which corresponded to the minimum 6.1627 settlement rate of the Series C Preferred Stock at inception, and an upper strike price of $179.53, which was approximately 30% higher than the closing price of the Company ’ s common stock on May 11, 2017. In June 2020, the capped call options expired out of the money. 2018 Capped Call Transactions In March 2018, the Company purchased from a financial in stitution “at-the money” ca pped call options with an approximate term of three years, on 3. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSSThe 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 (Losses) gains on cash flow hedges, net of tax Gains (losses) on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - January 2, 2021 $ (1,235.3) $ (103.0) $ 72.8 $ (448.2) $ (1,713.7) Other comprehensive (loss) income before reclassifications (307.7) 36.2 2.9 107.0 (161.6) Reclassification adjustments to earnings — 17.0 (3.9) 16.6 29.7 Net other comprehensive (loss) income (307.7) 53.2 (1.0) 123.6 (131.9) Balance - January 1, 2022 $ (1,543.0) $ (49.8) $ 71.8 $ (324.6) $ (1,845.6) Other comprehensive (loss) income before reclassifications (328.3) 31.7 3.7 73.4 (219.5) Adjustments related to sales of businesses (36.1) — — — (36.1) Reclassification adjustments to earnings — (26.4) (1.7) 9.8 (18.3) Net other comprehensive (loss) income (364.4) 5.3 2.0 83.2 (273.9) Balance - December 31, 2022 $ (1,907.4) $ (44.5) $ 73.8 $ (241.4) $ (2,119.5) The Company uses the portfolio method for releasing the stranded tax effects from Accumulated other comprehensive loss. The reclassifications out of Accumulated other comprehensive loss for the years ended December 31, 2022 and January 1, 2022 were as follows: (Millions of Dollars) 2022 2021 Components of Accumulated other comprehensive loss Reclassification adjustments Reclassification adjustments Affected line item in Consolidated Statements of Operations Realized gains (losses) on cash flow hedges $ 53.3 $ (26.1) Cost of sales Realized losses on cash flow hedges (5.8) (3.9) Interest expense Total before taxes $ 47.5 $ (30.0) Tax effect (21.1) 13.0 Income taxes Realized gains (losses) on cash flow hedges, net of tax $ 26.4 $ (17.0) Realized gains on net investment hedges $ 2.2 $ 5.2 Other, net Tax effect (0.5) (1.3) Income taxes Realized gains on net investment hedges, net of tax $ 1.7 $ 3.9 Actuarial losses and prior service costs / credits (13.3) (21.0) Other, net Settlement losses — (1.1) Other, net Total before taxes (13.3) (22.1) Tax effect 3.5 5.5 Income taxes Amortization of defined benefit pension items, net of tax $ (9.8) $ (16.6) |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP ”) — Most U.S. employees may make contributions that do not exceed 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 $32.2 million, $28.0 million and $9.2 million in 2022, 2021 and 2020, respectively. In 2020, the employer match benefit was suspended from the second quarter to the end of the year. Prior to 2021, shares of the Company's common stock that were purchased with the proceeds of borrowings from the Company in 1991 ("1991 internal loan") were held by the ESOP. Shareowners' equity reflected a reduction equal to the cost basis of unallocated shares purchased with the internal borrowings. Unallocated shares were 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 were 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. There were no unallocated shares remaining as of December 31, 2022, as all shares in the ESOP trust holding account were released as of the first quarter of 2020. The Company’s net ESOP activity resulted in expense of $61.1 million, $59.1 million, and $4.4 million in 2022, 2021, and 2020 respectively. Net ESOP activity recognized for 2022 and 2021 is comprised of the aforementioned Core and 401(k) match defined contribution benefits. Net ESOP activity for 2020 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 and was affected by the market value of the Company’s common stock on the monthly dates when shares were released. The weighted-average market value of shares released was $146.08 per share in 2020. The Company made cash contributions totaling $67.8 million in 2022, $35.7 million in 2021 and $9.2 million in 2020, excluding additional contributions of $7.2 million in 2020, which was used by the ESOP to make additional payments on the 1991 internal loan. These payments triggered the release of 226,212 shares of unallocated stock in 2020. Dividends on ESOP shares, which were charged to shareowners’ equity as declared, were $1.3 million in 2020, net of the tax benefit which was recorded in earnings. Interest costs incurred by the ESOP on the 1991 internal loan, which had no earnings impact, were $0.1 million for 2020. Both allocated and unallocated ESOP shares were treated as outstanding for purposes of computing earnings per share. PENSION AND OTHER BENEFIT PLANS — The Company sponsors pension plans covering most domestic hourly and certain executive employees, and approximately 14,300 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 multi-employer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multi-employer 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 multi-employer 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 multi-employer 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 multi-employer plans to which it contributes are individually significant to the Company’s Consolidated 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 multi-employer plans, various other defined contribution plans are sponsored worldwide. As of December 31, 2022 and January 2, 2021, the Company had $95.6 million and $135.8 million, respectively, of liabilities pertaining to an unfunded supplemental defined contribution plan for certain U.S. employees. The expense (benefit) for defined contribution plans, aside from the earlier discussed ESOP plans, are as follows: (Millions of Dollars) 2022 2021 2020 Multi-employer plan expense $ 6.0 $ 7.1 $ 7.8 Other defined contribution plan (benefit) expense $ (2.4) $ 28.6 $ 24.9 The components of net periodic pension (benefit) expense are as follows: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2022 2021 2020 2022 2021 2020 Service cost $ 6.2 $ 6.5 $ 6.8 $ 15.1 $ 17.6 $ 16.1 Interest cost 33.6 23.0 35.3 22.9 16.7 22.5 Expected return on plan assets (60.9) (54.9) (58.7) (37.7) (39.9) (41.2) Amortization of prior service cost (credit) 0.9 1.1 1.0 (0.7) (0.8) (0.7) Actuarial loss amortization 5.9 9.2 8.5 7.9 12.2 11.7 Special termination benefit — — — — — 0.2 Settlement / curtailment loss 0.2 0.4 — 0.2 0.7 0.6 Net periodic pension (benefit) expense $ (14.1) $ (14.7) $ (7.1) $ 7.7 $ 6.5 $ 9.2 The Company provides medical and dental benefits for certain retired employees in the United States, Brazil, and Canada. Approximately 20,800 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following: Other Benefit Plans (Millions of Dollars) 2022 2021 2020 Service cost $ 0.3 $ 0.4 $ 0.6 Interest cost 1.5 0.9 1.5 Amortization of prior service credit — (0.7) (1.3) Actuarial (gain) loss amortization (0.7) — 0.3 Settlement / curtailment gain (0.4) — — Special termination benefit 6.9 — 16.1 Net periodic post-retirement expense $ 7.6 $ 0.6 $ 17.2 The components of net periodic post-retirement benefit expense other than the service cost component are included in Other, net Changes in plan assets and benefit obligations recognized in Accumulated other comprehensive loss in 2022 are as follows: (Millions of Dollars) 2022 Current year actuarial gain $ (75.1) Amortization of actuarial loss (13.3) Prior service cost from plan amendments 1.2 Settlement / curtailment loss — Currency / other (24.5) Total gain recognized in Accumulated other comprehensive loss (pre-tax) $ (111.7) 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) 2022 2021 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at end of prior year $ 1,458.2 $ 1,404.3 $ 1,490.4 $ 1,622.3 $ 50.3 $ 61.2 Service cost 6.2 6.5 15.1 17.6 0.3 0.4 Interest cost 33.6 23.0 22.9 16.7 1.5 0.9 Special termination benefit — — — — 6.9 — Settlements/curtailments (10.7) (0.8) (4.4) (15.3) (0.4) — Actuarial gain (314.7) (47.2) (409.5) (92.4) (9.5) (6.6) Plan amendments 0.7 0.8 0.1 0.1 0.4 — Foreign currency exchange rate changes — — (133.1) (37.7) (0.2) (0.2) Participant contributions — — 0.2 0.2 — — Acquisitions, divestitures, and other (4.5) 152.4 2.2 28.9 — — Benefits paid (85.3) (80.8) (52.9) (50.0) (6.5) (5.4) Benefit obligation at end of year $ 1,083.5 $ 1,458.2 $ 931.0 $ 1,490.4 $ 42.8 $ 50.3 Change in plan assets Fair value of plan assets at end of prior year $ 1,340.1 $ 1,191.5 $ 1,226.6 $ 1,229.6 $ — $ — Actual return on plan assets (279.0) 63.4 (281.3) 17.9 — — Participant contributions — — 0.2 0.2 — — Employer contributions 7.0 13.8 18.4 20.8 6.5 5.4 Settlements (11.0) (0.8) (4.4) (13.7) — — Foreign currency exchange rate changes — — (121.0) (15.6) — — Acquisitions, divestitures, and other (4.5) 153.0 (2.2) 37.4 — — Benefits paid (85.3) (80.8) (52.9) (50.0) (6.5) (5.4) Fair value of plan assets at end of plan year $ 967.3 $ 1,340.1 $ 783.4 $ 1,226.6 $ — $ — Funded status — assets less than benefit obligation $ (116.2) $ (118.1) $ (147.6) $ (263.8) $ (42.8) $ (50.3) Unrecognized prior service cost (credit) 2.9 3.5 (13.8) (16.4) 0.4 0.1 Unrecognized net actuarial loss (gain) 233.2 213.4 143.1 268.3 (18.3) (9.7) Net amount recognized $ 119.9 $ 98.8 $ (18.3) $ (11.9) $ (60.7) $ (59.9) U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2022 2021 2022 2021 2022 2021 Amounts recognized in the Consolidated Balance Sheets Prepaid benefit cost (non-current) $ 4.1 $ 0.6 $ 67.7 $ 62.4 $ — $ — Current benefit liability (6.1) (6.0) (9.5) (10.3) (8.9) (7.5) Non-current benefit liability (114.2) (112.7) (205.8) (315.9) (33.9) (42.8) Net liability recognized $ (116.2) $ (118.1) $ (147.6) $ (263.8) $ (42.8) $ (50.3) Accumulated other comprehensive loss (pre-tax): Prior service cost (credit) $ 2.9 $ 3.5 $ (13.8) $ (16.4) $ 0.4 $ 0.1 Actuarial loss (gain) 233.2 213.4 143.1 268.3 (18.3) (9.7) 236.1 216.9 129.3 251.9 (17.9) (9.6) Net amount recognized $ 119.9 $ 98.8 $ (18.3) $ (11.9) $ (60.7) $ (59.9) Actuarial losses and gains reflected in the table above are driven by changes in demographic experience, changes in assumptions, and differences in actual returns on investments compared to estimated returns from the prior year. For the year ended December 31, 2022, the overall funded position improved and the benefit obligation decreased primarily driven by the improvement in the single equivalent discount rate used to measure these obligations. However, the actual return on plan assets during the year was less than assumed which partially offsets and decreases the funded position. The accumulated benefit obligation for all benefit plans was $2.023 billion at December 31, 2022 and $2.943 billion at January 1, 2022. The following table provides information regarding pension plans in which accumulated benefit obligations exceed plan assets as of December 31, 2022 and January 1, 2022: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2022 2021 2022 2021 Accumulated benefit obligation $ 982.3 $ 1,299.8 $ 208.7 $ 326.1 Fair value of plan assets $ 862.0 $ 1,184.6 $ 25.7 $ 50.3 The following table provides information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets as of December 31, 2022 and January 1, 2022: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2022 2021 2022 2021 Projected benefit obligation $ 982.3 $ 1,303.3 $ 266.7 $ 399.1 Fair value of plan assets $ 862.0 $ 1,184.6 $ 51.3 $ 72.9 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 2022 2021 2020 2022 2021 2020 2022 2021 2020 Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 5.36 % 2.80 % 2.39 % 4.70 % 1.78 % 1.31 % 5.47 % 2.84 % 2.19 % Rate of compensation increase — 3.00 % 3.56 % 3.64 % 3.56 % 3.29 % — — 3.50 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate - service cost 3.14 % 2.95 % 3.58 % 2.67 % 1.41 % 1.57 % 4.41 % 4.42 % 5.62 % Discount rate - interest cost 2.28 % 1.68 % 2.75 % 1.69 % 1.06 % 1.61 % 2.25 % 1.60 % 3.36 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.57 % 3.27 % 3.30 % — — 3.50 % Expected return on plan assets 4.69 % 4.75 % 5.25 % 3.41 % 3.25 % 3.90 % — — — 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 cla ss. The Company will use a 6.03% weighted-average expected rate of return assumption to determine the 2023 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, 2022 and January 1, 2022 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820, Fair Value Measurement , were as follows: Asset Category (Millions of Dollars) 2022 Level 1 Level 2 Cash and cash equivalents $ 42.3 $ 28.2 $ 14.1 Equity securities U.S. equity securities 181.9 66.2 115.7 Foreign equity securities 123.3 33.0 90.3 Fixed income securities Government securities 619.3 236.7 382.6 Corporate securities 702.5 — 702.5 Insurance contracts 36.7 — 36.7 Other 44.7 — 44.7 Total $ 1,750.7 $ 364.1 $ 1,386.6 Asset Category (Millions of Dollars) 2021 Level 1 Level 2 Cash and cash equivalents $ 74.2 $ 55.7 $ 18.5 Equity securities U.S. equity securities 323.3 92.5 230.8 Foreign equity securities 205.9 44.8 161.1 Fixed income securities Government securities 871.1 340.7 530.4 Corporate securities 996.3 — 996.3 Insurance contracts 49.6 — 49.6 Other 46.3 — 46.3 Total $ 2,566.7 $ 533.7 $ 2,033.0 U.S. and foreign equity securities primarily consist of companies with large market capitalization 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 approximately 10%-30% in equity securities, approximately 60%-80% in fixed income securities and approximately 10% in other securities. The funded status percentage (total plan assets divided by total projected benefit obligation) of all global pension plans was 87% in both 2022 and 2021 and 80% in 2020. 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 approxim ately $37 million to its pension and other post-retirement benefit plans in 2023. EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid over the next 10 years as follows: (Millions of Dollars) Total Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 Future payments $ 1,451.7 $ 151.6 $ 149.0 $ 146.6 $ 144.6 $ 143.5 $ 716.4 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 6.7% for 2022, reducing gradually to 4.6% by 2031 and remaining at that level thereafter. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. The Company holds various financial instruments to manage these risks. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value of these financial instruments through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining fair value 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 counterparty. 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 Level 1 Level 2 Level 3 December 31, 2022 Money market fund $ 9.4 $ 9.4 $ — $ — Equity security $ 3.2 $ 3.2 $ — $ — Deferred compensation plan investments $ 19.0 $ 19.0 $ — $ — Derivative assets $ 12.2 $ — $ 12.2 $ — Derivative liabilities $ 16.1 $ — $ 16.1 $ — Contingent consideration liability $ 268.7 $ — $ — $ 268.7 January 1, 2022 Money market fund $ 11.0 $ 11.0 $ — $ — Equity security $ 13.8 $ 13.8 $ — $ — Deferred compensation plan investments $ 26.2 $ 26.2 $ — $ — Derivative assets $ 33.1 $ — $ 33.1 $ — Derivative liabilities $ 8.7 $ — $ 8.7 $ — Contingent consideration liability $ 288.6 $ — $ — $ 288.6 The following table provides information about the Company's financial assets and liabilities not carried at fair value: December 31, 2022 January 1, 2022 (Millions of Dollars) Carrying Fair Carrying Fair Other investments $ 9.3 $ 9.3 $ 11.2 $ 11.6 Long-term debt, including current portion $ 5,354.1 $ 4,662.9 $ 4,354.9 $ 4,850.2 The money market fund and other investments related to the West Coast Loading Corporation ("WCLC") trust are considered Level 1 instruments within the fair value hierarchy. The equity security is considered a Level 1 instrument and is recorded at its quoted market price. The deferred compensation plan investments are considered Level 1 instruments and are recorded at their quoted market price. 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, 2022 and January 1, 2022. The fair values of derivative financial instruments in the table above are based on current settlement values. As part of the Craftsman® brand acquisition in March 2017, the Company recorded a contingent consideration liability representing the Company's obligation to make future payments to Transform Holdco, LLC, which operates Sears and Kmart retail locations, of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker, Inc. channels through March 2032. During the year ended December 31, 2022, the Company paid $41.3 million for royalties owed. The Company will continue making future payments quarterly through the second quarter of 2032. The estimated fair value of the contingent consideration liability is determined using a discounted cash flow analysis taking into consideration future sales projections, forecasted payments to Transform Holdco, LLC, based on contractual royalty rates, and the related tax impacts. The estimated fair value of the contingent consideration liability was $268.7 million and $288.6 million as of December 31, 2022 and January 1, 2022, respectively. Adjustments to the contingent consideration liability, with the exception of cash payments, are recorded in SG&A in the Consolidated Statements of Operations. A 100-basis point reduction in the discount rate would result in an increase to the liability of approximately $8.6 million as of December 31, 2022. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company's judgments used to determine the estimated contingent consideration liability discussed above, including estimated future sales projections, can materially impact the Company's results of operations. The Company had no significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during 2022 or 2021. Refer to Note I, 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 Company's long-term debt. |
OTHER COSTS AND EXPENSES
OTHER COSTS AND EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Other Costs and Expenses [Abstract] | |
OTHER COSTS AND EXPENSES | OTHER COSTS AND EXPENSES Other, net Note F, Goodwill and Intangible Assets ), currency-related gains or losses, environmental remediation expense, deal costs and related consulting costs, and certain pension gains or losses. Deal costs and related consulting costs of $9.8 million, $24.2 million, and $27.4 million were included in Other, net for the years ended December 31, 2022, January 1, 2022, and January 2, 2021, respectively. In 2022, Other, net also included a $7.1 million special termination benefit charge associated with a voluntary retirement program. In 2020, Other, net included a $19.6 million loss relating to the unamortized loss on cash flow swap terminations, a $14.1 million special termination benefit charge associated with a voluntary retirement program, and a $55.3 million release of a contingent consideration liability relating to the CAM acquisition. Refer to Note E, Acquisitions and Investments, for further discussion of the CAM contingent consideration. The year-over-year increase in 2022 in Other, net was primarily driven by higher intangible asset amortization expense and appreciation of investments in 2021. The year-over-year decrease in 2021 in Other, net was primarily due to appreciation of investments. During 2020, the Company recognized pre-tax charges of approximately $185.0 million related to the comprehensive cost reduction and efficiency program in response to the impact of the COVID-19 pandemic. The charges were primarily related to costs associated with a voluntary retirement program as well as restructuring costs related to headcount actions. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES A summary of the restructuring reserve activity from January 1, 2022 to December 31, 2022 is as follows: (Millions of Dollars) January 1, 2022 Net Usage Currency December 31, 2022 Severance and related costs $ 28.2 $ 125.9 $ (98.7) $ 1.6 $ 57.0 Facility closures and asset impairments 3.5 14.9 (13.2) 0.1 5.3 Total $ 31.7 $ 140.8 $ (111.9) $ 1.7 $ 62.3 During 2022, the Company recognized net restructuring charges of $140.8 million, primarily related to severance and related costs. The majority of the $62.3 million of reserves remaining as of December 31, 2022 is expected to be utilized within the next 12 months. Segments: The $140.8 million of net restructuring charges for the year ended December 31, 2022 includes: $80.7 million pertaining to the Tools & Outdoor segment; $25.9 million pertaining to the Industrial segment; and $34.2 million pertaining to Corporate. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS The Company’s operations are classified into two reportable business segments: Tools & Outdoor and Industrial. The Tools & Outdoor segment is comprised of the Power Tools Group ("PTG"), Hand Tools, Accessories & Storage ("HTAS") and Outdoor Power Equipment ("Outdoor") businesses. The PTG 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, and concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER® brand, and home products such as hand-held vacuums, paint tools and cleaning appliances. The HTAS business sells hand tools, power tool accessories and storage products. Hand tools include measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, screwdriver bits, router bits, abrasives, saw blades and threading products. Storage products include tool boxes, sawhorses, medical cabinets and engineered storage solution products. The Outdoor business primarily sells corded and cordless electric lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, pressure washers and related accessories, and gas powered lawn and garden products, including lawn tractors, zero turn ride on mowers, walk behind mowers, snow blowers, residential robotic mowers, utility terrain vehicles (UTVs), hand-held outdoor power equipment, garden tools, and parts and accessories to professionals and consumers under the DEWALT®, CUB CADET®, BLACK+DECKER®, CRAFTSMAN®, TROY-BILT®, and HUSTLER® brand names. The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells highly engineered components such as fasteners, fittings and various engineered products, which are designed for specific application across multiple verticals. The product lines include externally threaded fasteners, blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, high-strength structural fasteners, axel swage, latches, heat shields, pins, and couplings. The Infrastructure business sells hydraulic tools and high quality, performance-driven heavy equipment attachment tools for off-highway applications. The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for credit losses (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, right-of-use lease assets and intangible 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) 2022 2021 2020 Net Sales Tools & Outdoor $ 14,423.7 $ 12,817.4 $ 10,329.7 Industrial 2,523.4 2,463.1 2,352.7 Corporate Overhead & Other 0.3 0.8 67.6 Consolidated $ 16,947.4 $ 15,281.3 $ 12,750.0 Segment Profit Tools & Outdoor $ 971.9 $ 1,985.4 $ 1,820.3 Industrial 236.2 256.6 220.6 Segment Profit 1,208.1 2,242.0 2,040.9 Corporate Overhead & Other (294.0) (342.9) (302.1) Other, net (274.8) (189.5) (215.7) Loss on sales of businesses (8.4) (0.6) (13.5) Restructuring charges (140.8) (14.5) (73.8) Gain on equity method investment — 68.0 — Asset impairment charge (168.4) — — Loss on debt extinguishment — — (46.9) Interest income 54.7 9.8 17.5 Interest expense (338.5) (185.4) (222.7) Earnings from continuing operations before income taxes and equity interest $ 37.9 $ 1,586.9 $ 1,183.7 Capital and Software Expenditures Tools & Outdoor $ 438.5 $ 375.8 $ 228.6 Industrial 85.6 123.3 102.2 Corporate Overhead & Other — — 0.2 Discontinued operations 6.3 20.0 17.1 Consolidated $ 530.4 $ 519.1 $ 348.1 Depreciation and Amortization Tools & Outdoor $ 387.6 $ 312.9 $ 311.2 Industrial 184.2 201.4 200.0 Corporate Overhead & Other — — 0.3 Discontinued operations 0.4 62.8 66.6 Consolidated $ 572.2 $ 577.1 $ 578.1 Segment Assets 2022 2021 Tools & Outdoor $ 20,202.0 $ 19,537.9 Industrial 5,284.8 5,627.8 25,486.8 25,165.7 Assets held for sale — 3,505.4 Corporate assets (523.5) (491.1) Consolidated $ 24,963.3 $ 28,180.0 Corporate Overhead & 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, as well as the corporate overhead element of SG&A, which is not allocated to the business segments. Corporate assets primarily consist of cash, deferred taxes, property, plant and equipment and right-of-use lease assets. Based on the nature of the Company's cash pooling arrangements, at times corporate-related cash accounts will be in a net liability position. Lowe's accounted for approximately 15%, 15% and 17% of the Company's consolidated net sales in 2022, 2021 and 2020, respectively, while The Home Depot accounted for approximately 13%, 15% and 14% of the Company's consolidated net sales in 2022, 2021 and 2020, respectively. As described in Note A, Significant Accounting Policies , the Company recognizes revenue at a point in time from the sale of tangible products or over time depending on when the performance obligation is satisfied. For the years ended December 31, 2022, January 1, 2022, and January 2, 2021, the majority of the Company’s revenue was recognized at the time of sale. The percent of total segment revenue recognized over time for the Industrial segment for the years ended December 31, 2022, January 1, 2022 and January 2, 2021 was 4.6%, 6.6% and 9.2%, respectively. The following table is a further disaggregation of the Industrial segment revenue for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Engineered Fastening $ 1,874.8 $ 1,842.1 $ 1,717.8 Infrastructure 648.6 621.0 634.9 Industrial $ 2,523.4 $ 2,463.1 $ 2,352.7 GEOGRAPHIC AREAS (Millions of Dollars) 2022 2021 2020 Net Sales United States $ 10,733.1 $ 9,073.1 $ 7,828.3 Canada 835.7 696.0 575.0 Other Americas 839.4 833.6 587.9 France 489.8 488.8 393.0 Other Europe 2,664.9 2,847.2 2,288.7 Asia 1,384.5 1,342.6 1,077.1 Consolidated $ 16,947.4 $ 15,281.3 $ 12,750.0 December 31, 2022 January 1, 2022 Property, Plant & Equipment, net United States $ 1,465.8 $ 1,433.6 Canada 7.4 21.6 Other Americas 249.8 178.1 France 30.7 36.6 Other Europe 272.9 318.9 Asia 326.5 348.0 Consolidated $ 2,353.1 $ 2,336.8 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Significant components of the Company’s deferred tax assets and liabilities from continuing operations at the end of each fiscal year were as follows: (Millions of Dollars) 2022 2021 Deferred tax liabilities: Depreciation $ 160.1 $ 132.2 Intangible assets 907.5 917.3 Liability on undistributed foreign earnings 45.4 48.2 Lease right-of-use asset 108.2 106.5 Inventory 59.4 79.6 Other 46.7 48.4 Total deferred tax liabilities $ 1,327.3 $ 1,332.2 Deferred tax assets: Employee benefit plans $ 130.9 $ 204.2 Basis differences in liabilities 104.0 100.4 Operating loss, capital loss and tax credit carryforwards 817.4 830.7 Lease liability 110.4 109.7 Intangible assets 556.8 417.7 Basis difference in debt obligations 268.0 205.1 Capitalized research and development costs 134.7 86.0 Other 204.3 206.6 Total deferred tax assets $ 2,326.5 $ 2,160.4 Net Deferred Tax Asset before Valuation Allowance $ 999.2 $ 828.2 Valuation Allowance $ (1,032.5) $ (1,067.2) Net Deferred Tax Liability after Valuation Allowance $ (33.3) $ (239.0) The increase in intangible deferred tax assets relates to the intra-entity asset transfer of certain intangible assets between two of the Company's foreign subsidiaries. The recognized deferred tax benefit represents the difference between the basis of the intellectual property for financial statement purposes and the basis of the intellectual property for tax purposes. 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 $1,032.5 million and $1,067.2 million on deferred tax assets existing as of December 31, 2022 and January 1, 2022, respectively. The valuation allowances in 2022 and 2021 are primarily attributable to foreign and state net operating loss carryforwards, intangible assets, foreign capital loss carryforwards, and state tax credits. As of December 31, 2022, the Company has approximately $5.2 billion of unremitted foreign earnings and profits. Of the total amount, the Company has provided for deferred taxes of $45.4 million on approximately $1.5 billion, which is not indefinitely reinvested primarily due to the changes brought about by the Tax Cuts and Jobs Act. The Company otherwise continues to consider the remaining undistributed earnings of its foreign subsidiaries to be permanently reinvested based on its current plans for use outside of the U.S. and accordingly no taxes have been provided on such earnings. The cash held by the Company’s non-U.S. subsidiaries for indefinite reinvestment is generally used to finance foreign operations and investments, including acquisitions. The income taxes applicable to such earnings and other outside basis differences are not readily determinable or practicable to calculate. Net operating loss carryforwards of $3.0 billion as of December 31, 2022 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 2023 with certain jurisdictions having indefinite carryforward periods. The foreign capital loss carryforwards of $56.5 million as of December 31, 2022 have indefinite carryforward periods. U.S. foreign tax credit carryforward balance as of December 31, 2022 totaled $22.5 million with various expiration dates beginning in 2029. U.S. foreign tax credit carryforward of $12.9 million is included in unrecognized tax benefits and subject to an annual limitation, which constitutes a change of ownership as defined under the Internal Revenue Code Section 382. State tax credit carryforward balance as of December 31, 2022 totaled $23.2 million. The carryforward balance is made up of various credit types spanning multiple state taxing jurisdictions and various expiration dates beginning in 2023. On August 9, 2022, the U.S. government enacted the Creating Helpful Incentives to Produce Semiconductors (“CHIPS Act”), which includes an advanced manufacturing investment tax credit and tax incentives related to semiconductor manufacturing, among other provisions. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”), which imposes a new corporate alternative minimum tax (“CAMT”), an excise tax on stock buybacks, and significant tax incentives for energy and climate initiatives, among other provisions. The CAMT is effective for tax years beginning after December 31, 2022, while the excise tax applies to repurchases of stock after December 31, 2022. The effective dates of the energy related incentives vary. In response to a technical inquiry, the FASB provided guidance permitting a company to make an accounting policy election to either consider the effect of CAMT when evaluating the need for, and the amount of, a valuation allowance or account for the effects on deferred tax assets in the period they arise. The Company has elected to account for the effects of CAMT on deferred tax assets in the period they arise. The Company evaluated the impacts of the CHIPS Act and the IRA and concluded that they do not have a material impact on the Company’s consolidated financial statements. The components of earnings from continuing operations before income taxes and equity interest consisted of the following: (Millions of Dollars) 2022 2021 2020 United States $ (1,233.8) $ (77.7) $ 144.5 Foreign 1,271.7 1,664.6 1,039.2 Earnings before income taxes and equity interest $ 37.9 $ 1,586.9 $ 1,183.7 Income taxes on continuing operations consisted of the following: (Millions of Dollars) 2022 2021 2020 Current: Federal $ (79.0) $ 0.3 $ 55.4 Foreign 248.6 388.0 183.2 State (16.7) 31.8 19.8 Total current $ 152.9 $ 420.1 $ 258.4 Deferred: Federal $ (61.2) $ (124.7) $ (25.1) Foreign (222.5) (210.1) (192.1) State (1.6) (30.2) (3.2) Total deferred (285.3) (365.0) (220.4) Income taxes $ (132.4) $ 55.1 $ 38.0 Net income taxes paid for continuing operations during 2022, 2021 and 2020 were $482.6 million, $441.8 million and $241.6 million, respectively. The 2022, 2021 and 2020 amounts include refunds of $41.8 million, $50.1 million and $43.8 million, respectively, primarily related to prior year overpayments and settlement of tax audits. The reconciliation of the U.S. federal statutory income tax provision to Income taxes on continuing operations in the Consolidated Statements of Operations is as follows: (Millions of Dollars) 2022 2021 2020 Tax at statutory rate $ 8.0 $ 333.2 $ 248.6 State income taxes, net of federal benefits (19.3) 1.4 12.0 Foreign tax rate differential (28.8) (63.5) (58.6) Uncertain tax benefits 26.3 49.6 17.7 Change in valuation allowance (25.1) (11.9) (12.7) Change in deferred tax liabilities on undistributed foreign earnings 12.8 23.1 (118.8) Stock-based compensation 7.3 (6.3) (9.2) Change in tax rates (5.5) (31.1) (0.3) Tax credits (8.8) (6.7) (6.0) Capital loss — — (40.4) U.S. federal tax expense (benefit) on foreign earnings 55.7 (118.1) 2.0 Intra-entity asset transfer of intellectual property (153.3) (114.2) (27.7) Other (1.7) (0.4) 31.4 Income taxes $ (132.4) $ 55.1 $ 38.0 The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course, the Company is subject to examinations by taxing authorities throughout the world. The Internal Revenue Service is currently examining the Company's consolidated U.S. income tax returns for the 2017 through 2019 tax years. With few exceptions, as of December 31, 2022, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2012. 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 from continuing operations: (Millions of Dollars) 2022 2021 2020 Balance at beginning of year $ 487.7 $ 428.3 $ 392.0 Additions based on tax positions related to current year 27.2 33.6 27.8 Additions based on tax positions related to prior years 41.1 53.5 34.4 Reductions based on tax positions related to prior years (37.8) (17.2) (19.0) Settlements (7.0) (1.3) (0.5) Statute of limitations expirations (8.5) (9.2) (6.4) Balance at end of year $ 502.7 $ 487.7 $ 428.3 The gross unrecognized tax benefits from continuing operations at December 31, 2022 and January 1, 2022 include $496.0 million and $478.4 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 from continuing operations decreased by $11.2 million in 2022, increased by $9.6 million in 2021 and decreased by $3.4 million in 2020. The liability for potential penalties and interest totaled $48.8 million as of December 31, 2022, $60.0 million as of January 1, 2022, and $49.2 million as of January 2, 2021. 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 twelve months. However, based on the uncertainties associated with finalizing audits with the relevant tax authorities including formal legal proceedings, it is not possible to reasonably estimate the impact of any such change. |
COMMITMENTS AND GUARANTEES
COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND GUARANTEES | COMMITMENTS AND GUARANTEES COMMITMENTS — The Company has numerous assets, predominantly real estate, vehicles and equipment, under various lease arrangements. At inception of arrangements with vendors, the Company determines whether the contract is or contains a lease based on each party’s rights and obligations under the arrangement. If the lease arrangement also contains non-lease components, the lease and non-lease elements are separately accounted for in accordance with the appropriate accounting guidance for each item. From time to time, lease arrangements allow for, and the Company executes, the purchase of the underlying leased asset. Lease arrangements may also contain renewal options or early termination options. As part of its lease liability and right-of-use asset calculation, consideration is given to the likelihood of exercising any extension or termination options. Leases with expected durations of less than twelve months from inception (i.e. short-term leases) are excluded from the Company’s calculation of lease liabilities and right-of-use assets, as permitted by ASC 842, Leases . The following is a summary of the Company's right-of-use-assets and lease liabilities: (Millions of Dollars) December 31, 2022 January 1, 2022 Right-of-use assets $ 431.5 $ 426.0 Lease liabilities $ 440.5 $ 439.1 Weighted-average incremental borrowing rate 3.6 % 3.5 % Weighted-average remaining term 6 years 6 years Right-of-use assets are included within Other assets Accrued expenses Other liabilities As a result of acquiring right-of-use assets from new leases entered into during the years ended December 31, 2022 and January 1, 2022, the Company's lease liabilities increased approximately $115.8 million and $84.1 million, respectively. The Company has variable rate leases for certain manufacturing facilities, distribution centers and office buildings in which the periodic rental payments vary based on benchmark interest rates. The following is a summary of the Company's total lease cost for the years ended December 31, 2022, January 1, 2022, and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Operating lease cost $ 147.1 $ 126.3 $ 116.7 Short-term lease cost 27.6 25.5 21.0 Variable lease cost 5.9 5.9 7.0 Sublease income (2.5) (1.3) (0.3) Total lease cost $ 178.1 $ 156.4 $ 144.4 During 2022, 2021, and 2020, the Company paid $124.1 million, $110.8 million, and $111.2 million respectively, relating to leases included in the measurement of its lease liability and right-of-use asset. The following is a summary of the Company's future lease obligations on an undiscounted basis at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Lease obligations $ 490.4 $ 116.2 $ 94.4 $ 70.8 $ 61.0 $ 46.4 $ 101.6 The following is a summary of the Company’s future marketing commitments at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Marketing commitments $ 81.6 $ 45.1 $ 22.1 $ 7.2 $ 7.2 $ — $ — As of December 31, 2022, the Company had unrecognized commitments that require the future purchase of goods or services (unconditional purchase obligations) to provide it with access to products and services at competitive prices. These obligations consist of supplier agreements with long-term minimum material purchase requirements and freight forwarding arrangements with minimum quantity commitments. The following is a summary of the Company's unconditional purchase obligations related to these agreements at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Supplier agreements $ 339.0 $ 142.2 $ 130.8 $ 56.0 $ 10.0 $ — $ — GUARANTEES — The Company's financial guarantees at December 31, 2022 are as follows: (Millions of Dollars) Term Maximum Carrying Guarantees on the residual values of leased properties One $ 156.6 $ — Standby letters of credit Up to three years 174.0 — Commercial customer financing arrangements Up to six years 79.7 12.7 Total $ 410.3 $ 12.7 The Company has guaranteed a portion of the residual values associated with the variable rate leases mentioned previously. The lease guarantees are for an amount up to $156.6 million while the fair value of the underlying assets is estimated at $189.5 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 guarantees. The Company has issued $174.0 million in standby letters of credit that guarantee future payments which may be required under certain insurance programs and in relation to certain environmental remediation activities described more fully in Note S, Contingencies . 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 trucks 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 $79.7 million and the $12.7 million carrying value of the guarantees issued is recorded in Other liabilities in the Consolidated Balance Sheets. The Company provides warranties on certain products across its businesses. The types of product warranties offered generally range from one year to limited lifetime. There are also certain products with 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. The changes in the carrying amount of product warranties for the years ended December 31, 2022, January 1, 2022, and January 2, 2021 are as follows: (Millions of Dollars) 2022 2021 2020 Balance beginning of period $ 134.5 $ 107.9 $ 94.4 Warranties and guarantees issued 155.3 150.1 126.9 Warranties assumed in acquisitions — 33.4 — Warranty payments and currency (163.2) (156.9) (113.4) Balance end of period $ 126.6 $ 134.5 $ 107.9 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [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 the normal course of business, the Company is a party to administrative proceedings and litigation, before federal and state regulatory agencies, relating to environmental remediation with respect to claims involving the discharge of hazardous substances into the environment, generally at current and former manufacturing facilities. In addition, some of these claims assert that the Company is responsible for damages and liability, for remedial investigation and clean-up costs, with respect to sites that have never been owned or operated by the Company, but the Company has been identified as a potentially responsible party ("PRP"). 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 at current and former manufacturing facilities and has also been named as a PRP in certain administrative proceedings. The Company, along with many other companies, has been named as a PRP in numerous administrative proceedings for the remediation of various waste sites, including 26 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. If 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, 2022 and January 1, 2022, the Company had reserves of $129.3 million and $159.1 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 December 31, 2022 amount, $39.4 million is classified as current and $89.9 million as long-term which is expected to be paid over the estimated remediation period. As of December 31, 2022, the range of environmental remediation costs that is reasonably possible is $58.5 million to $220.1 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 the Company's policy. As of December 31, 2022, the Company has recorded $16.4 million in other assets related to funding received by the Environmental Protection Agency (“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 and liquidated 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. As of December 31, 2022, the Company's net cash obligation associated with remediation activities, including WCLC assets, is $112.9 million. The EPA also asserted claims in federal court in Rhode Island against Black & Decker and Emhart related to environmental contamination found at the Centredale Manor Restoration Project Superfund Site ("Centredale"), located in North Providence, Rhode Island. The EPA discovered a variety of contaminants at the site, including but not limited to, dioxins, polychlorinated biphenyls, and pesticides. The EPA alleged that Black & Decker and Emhart 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 Emhart then vigorously litigated the issue of their liability for environmental conditions at the Centredale site, including completing trial on Phase 1 of the proceedings in late July 2015 and completing trial on Phase 2 of the proceedings in April 2017. On July 9, 2018, a Consent Decree was lodged with the United States District Court documenting the terms of a settlement between the Company and the United States for reimbursement of EPA's past costs and remediation of environmental contamination found at the Centredale site. The terms of the Consent Decree were subject to public comment and Court approval. After a full hearing on March 19, 2019, the Court approved and entered the Consent Decree on April 8, 2019. The settlement resolves outstanding issues relating to Phase 1 and 2 of the litigation with the United States. The Company is complying with the terms of the settlement. The District Court's entry of the Consent Decree was appealed by several PRPs at the site to the United States Court of Appeals for the First Circuit. The District Court's actions were affirmed by the First Circuit on February 17, 2021. Phase 3 of the litigation, is addressing the potential allocation of liability to other PRPs who may have contributed to contamination of the Centredale site with dioxins, polychlorinated biphenyls and other contaminants of concern. As of December 31, 2022, the Company has a remaining reserve of $35.2 million for this site. The Company and approximately 47 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 ("ROD") 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. On September 30, 2016, Occidental Chemical Corporation ("OCC") entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the River. The remedial design is expected to be substantially completed in 2023. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking CERCLA cost recovery or contribution for past costs relating to various investigations and cleanups OCC has conducted or is conducting in connection with the River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost ($165 million) to complete the remedial design for the cleanup plan for the lower 8.3 miles of the River. OCC also seeks a declaratory judgment to hold the defendants liable for their proper shares of future response costs for OCC's ongoing activities in connection with the River. The Company and other defendants have answered the complaint and currently are engaged in discovery with OCC. On February 24, 2021, the Company and other defendants filed a third party complaint against the Passaic Valley Sewerage Commissioners and forty-two municipalities to require those entities to pay their equitable share of response costs. On October 10, 2018, the EPA issued a letter directing the CPG to prepare a streamlined feasibility study for the upper 9 miles of the River based on an iterative approach using adaptive management strategies. The CPG submitted a revi sed draft Interim Remedy Feasibility Study to the EPA on December 4, 2020, which identifies various targeted dredge and cap alternatives with costs that range from $420 million to $468 million (net present value). The EPA approved the Interim Remedy Feasibility Study on December 11, 2020. The EPA issued the Interim Remedy Proposed Plan on April 14, 2021, selecting an alternative that the EPA estimates will cost $441 million (net present value). The CPG continues to conduct work to complete the RI/FS for the entire 17-mile River. The EPA issued the Interim Remedy ROD on September 28, 2021. 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 and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. In a letter dated May 17, 2017, the EPA stated that these 20 parties did not discharge any of the eight hazardous substances identified as the contaminants of concern in the lower 8.3 mile ROD. In the March 30, 2017 letter, the EPA stated that other parties who did not discharge dioxins, furans or polychlorinated biphenyls (which are considered the contaminants of concern posing the greatest risk to human health or the environment) may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third-party allocator. The EPA subsequently clarified this statement to say that such parties would be eligible to be "funding parties" for the lower 8.3 mile remedial action with each party's share of the costs determined by the EPA based on the allocation process and the remaining parties would be "work parties" for the remedial action. The Company asserts that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible to be a "funding party" for the lower 8.3 mile remedial action. The Company participated in the allocation process. The allocator selected by the EPA issued a confidential allocation report on December 28, 2020, which was reviewed by the EPA. As a result of the allocation process, on February 11, 2022, the EPA and certain parties (including the Company) reached an agreement in principle for a cash-out settlement for remediation of the entire 17-mile Lower Passaic River. On December 16, 2022, the United States lodged a Consent Decree with the United States District Court for the District of New Jersey in United States v. Alden Leeds, Inc. et al. (No. 2:22-cv-07326) that addresses the liability of 85 parties (including the Company) for an aggregate amount of $150 million based on the EPA-sponsored allocation report that found OCC 99.4% responsible for the cleanup costs of the River. The Consent Decree is subject to a 45-day public comment period (which may be extended by the Court) after which the Court will enter or disapprove the Consent Decree. On December 20, 2022, various defendants (including the Company) in the OCC litigation filed an unopposed motion to stay the litigation for six months. The Court has not yet ruled on the motion to stay. At this time, the Company cannot reasonably estimate its liability related to the litigation and remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the OCC litigation is pending and the EPA settlement process has not been completed and requires court approval. Per the terms of a Final Order and Judgment approved by the United States District Court for the Middle District of Florida on January 22, 1991, Emhart is responsible for a percentage of remedial costs arising out of the Kerr McGee Chemical Corporation Superfund Site located in Jacksonville, Florida. On March 15, 2017, the Company received formal notification from the EPA that the EPA had issued a ROD selecting the preferred alternative identified in the Proposed Cleanup Plan. As of December 31, 2022, the Company has reserved $21.1 million for this site. 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 3.7% to 4.8%, depending on the expected timing of disbursements. The discounted and undiscounted amount of the liability relative to these sites is $38.6 million and $48.7 million, respectively. The payments relative to these sites are expected to be $3.2 million in 2023, $3.5 million in 2024, $3.2 million in 2025, $3.1 million in 2026, $2.7 million in 2027, and $33.0 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. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES 2022 DIVESTITURES Oil & Gas business On August 19, 2022, the Company completed the previously announced sale of its Oil & Gas business comprised of the pipeline services and equipment businesses to Pipeline Technique Limited and recognized a pre-tax loss of $8.6 million. This divestiture did not qualify for discontinued operations and therefore, its results are included in the Company's continuing operations within the Industrial segment for all periods presented through the date of sale. Following is the pre-tax (losses) income for this business for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Pre-tax (losses) income $ (2.7) $ (16.8) $ 9.1 In addition, the Company recognized a $168.4 million pre-tax asset impairment charge to adjust the carrying amount of the long-lived assets of the Oil & Gas business to its fair value less the costs to sell during the second quarter of 2022. Commercial Electronic Security and Healthcare businesses On July 22, 2022, the Company completed the previously announced sale of its Convergent Security Solutions ("CSS") business comprised of the commercial electronic security and healthcare businesses to Securitas AB for net proceeds of $3.1 billion and a pre-tax gain of $588 million. As part of the purchase and sale agreement, the Company will perform transition services relating to certain administrative functions for Securitas AB for an initial period of one year or less, pending integration of these functions into their pre-existing business processes. A portion of the $3.1 billion net proceeds received at closing was deferred to reimburse the Company for transition service costs expected to be incurred. Mechanical Access Solutions business On July 5, 2022, the Company completed the sale of its Mechanical Access Solutions ("MAS") business comprised of the automatic doors business to Allegion plc for net proceeds of $922.2 million and a pre-tax gain of $609 million. As part of the purchase and sale agreement, the Company will perform transition services relating to certain administrative functions for Allegion plc for an initial period of two years or less, pending integration of these functions into their pre-existing business processes. The CSS and MAS divestitures represent a single plan to exit the Security segment and are considered a strategic shift that will have a major effect on the Company’s operations and financial results. As such, the operating results of CSS and MAS are reported as discontinued operations. Amounts previously reported have been reclassified to conform to this presentation to allow for meaningful comparison of continuing operations. These divestitures allow the Company to invest in other areas that fit into its long-term strategy. Summarized operating results of discontinued operations are presented in the following table for each fiscal year ended: (Millions of Dollars) 2022 2021 2020 Net Sales $ 1,056.3 $ 1,971.4 $ 1,784.7 Cost of sales 687.5 1,258.7 1,134.8 Selling, general, and administrative (1) 308.0 529.2 510.4 Gain on sale of discontinued operations 1,197.4 — — Other, net and restructuring charges 47.3 59.2 56.2 Earnings from discontinued operations before income taxes $ 1,210.9 $ 124.3 $ 83.3 Income taxes on discontinued operations 318.5 (12.4) 3.4 Net earnings from discontinued operations $ 892.4 $ 136.7 $ 79.9 (1) Includes provision for credit losses. The following table presents the significant non-cash items and capital expenditures for the discontinued operations with respect to CSS and MAS that are included in the Consolidated Statements of Cash Flows for each fiscal year ended: (Millions of Dollars) 2022 2021 2020 Depreciation and amortization $ 0.4 $ 62.8 $ 66.6 Capital expenditures $ 6.3 $ 20.0 $ 17.1 Stock-based compensation $ 17.5 $ 7.9 $ 6.1 As of January 1, 2022, the assets and liabilities related to CSS and MAS were classified as held for sale on the Company's Consolidated Balance Sheets. There were no assets or liabilities held for sale relating to the Oil & Gas business as of January 1, 2022. The carrying amounts of the assets and liabilities that were aggregated in assets held for sale and liabilities held for sale as of January 1, 2022 are presented in the following table: (Millions of Dollars) January 1, 2022 Cash and cash equivalents $ 145.1 Accounts and notes receivable, net 513.9 Inventories, net 169.4 Other current assets 41.2 Property, plant and equipment, net 84.3 Goodwill and other intangibles, net 2,270.2 Other assets 281.3 Total assets $ 3,505.4 Accounts payable and accrued expenses $ 460.4 Other long-term liabilities 137.4 Total liabilities $ 597.8 2020 DIVESTITURES On November 2, 2020, the Company sold its commercial electronic security businesses in five countries in Europe and emerging markets within the Security segment, which resulted in net proceeds of $60.9 million. The Company also sold a product line within Oil & Gas in the Industrial segment during the fourth quarter of 2020. As a result of these sales, the Company recognized a net pre-tax loss of $13.5 million in 2020, consisting of a $17.7 million loss on the sale of a product line within Oil & Gas partially offset by a $4.2 million gain on the sale of the commercial electronic security businesses. During the first quarter of 2021, the Company recognized a pre-tax loss of $1.0 million as a result of the finalization of the purchase price for the commercial electronic security divestiture. These divestitures allow the Company to invest in other areas that fit into its long-term strategy. These disposals do not qualify as discontinued operations and are included in the Company's Consolidated Statements of Operations for all periods presented through their respective dates of sale in 2020. Pre-tax income for these businesses totaled $4.1 million for the year ended January 2, 2021. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Data [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | SELECTED QUARTERLY FINANCIAL DATA (unaudited) Quarter (Millions of Dollars, except per share amounts) First Second Third Fourth Year 2022 Net Sales $ 4,448.0 $ 4,393.0 $ 4,119.6 $ 3,986.8 $ 16,947.4 Gross profit 1,305.4 1,207.1 1,018.1 753.5 4,284.1 Selling, general and administrative (1) 960.3 852.7 799.8 757.2 3,370.0 Net earnings (loss) from continuing operations 155.6 78.7 36.6 (100.6) 170.3 Less: Net earnings attributable to non-controlling interest 0.1 0.1 — — 0.2 Less: Preferred stock dividends and beneficial conversion feature — — — 5.8 5.8 Net Earnings (Loss) from Continuing Operations Attributable to Common Shareowners $ 155.5 $ 78.6 $ 36.6 $ (106.4) $ 164.3 Add: Contract adjustment payments accretion 0.3 0.4 0.3 0.2 1.2 Net Earnings (Loss) from Continuing Operations Attributable to Common Shareowners - Diluted $ 155.8 $ 79.0 $ 36.9 $ (106.2) $ 165.5 Net earnings from discontinued operations 19.8 9.0 808.0 55.6 892.4 Net Earnings (Loss) Attributable to Common Shareowners - Diluted $ 175.6 $ 88.0 $ 844.9 $ (50.6) $ 1,057.9 Basic earnings (loss) per share of common stock: Continuing operations $ 1.00 $ 0.54 $ 0.25 $ (0.72) $ 1.11 Discontinued operations $ 0.13 $ 0.06 $ 5.60 $ 0.38 $ 6.02 Total basic earnings (loss) per share of common stock $ 1.13 $ 0.60 $ 5.85 $ (0.35) $ 7.13 Diluted earnings (loss) per share of common stock: Continuing operations $ 0.94 $ 0.51 $ 0.24 $ (0.72) $ 1.06 Discontinued operations $ 0.12 $ 0.06 $ 5.26 $ 0.37 $ 5.70 Total diluted earnings (loss) per share of common stock $ 1.06 $ 0.57 $ 5.50 $ (0.34) $ 6.76 2021 Net Sales $ 3,720.8 $ 3,798.9 $ 3,779.7 $ 3,981.9 $ 15,281.3 Gross profit 1,387.8 1,361.8 1,215.6 1,127.0 5,092.2 Selling, general and administrative (1) 719.1 767.1 773.5 933.4 3,193.1 Net earnings from continuing operations 459.6 432.5 379.5 279.2 1,550.8 Less: Net losses attributable to non-controlling interest (0.6) (1.0) (0.1) — (1.7) Less: Preferred stock dividends and beneficial conversion feature 9.4 4.8 — — 14.2 Net Earnings from Continuing Operations Attributable to Common Shareowners $ 450.8 $ 428.7 $ 379.6 $ 279.2 $ 1,538.3 Add: Contract adjustment payments accretion 0.2 0.3 0.4 0.4 1.3 Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted $ 451.0 $ 429.0 $ 380.0 $ 279.6 $ 1,539.6 Net earnings from discontinued operations 27.2 26.0 34.6 48.9 136.7 Net Earnings Attributable to Common Shareowners - Diluted $ 478.2 $ 455.0 $ 414.6 $ 328.5 $ 1,676.3 Basic earnings per share of common stock: Continuing operations $ 2.86 $ 2.70 $ 2.38 $ 1.75 $ 9.69 Discontinued operations $ 0.17 $ 0.16 $ 0.22 $ 0.31 $ 0.86 Total basic earnings per share of common stock $ 3.04 $ 2.87 $ 2.60 $ 2.06 $ 10.55 Diluted earnings per share of common stock: Continuing operations $ 2.74 $ 2.60 $ 2.30 $ 1.69 $ 9.33 Discontinued operations $ 0.17 $ 0.16 $ 0.21 $ 0.30 $ 0.83 Total diluted earnings per share of common stock $ 2.91 $ 2.75 $ 2.51 $ 1.99 $ 10.16 (1) Includes provision for credit losses. The 2022 year-to-date results above include $642 million of pre-tax acquisition-related and other charges and an $84 million tax benefit related to these charges. The net impact of the above items and effect on diluted earnings per share by quarter was as follows: Acquisition-Related Charges & Other Diluted EPS Impact • Q1 2022 — $221 million loss ($192 million after-tax) $(1.16) per diluted share • Q2 2022 — $248 million loss ($195 million after-tax) $(1.26) per diluted share • Q3 2022 — $119 million loss ($79 million after-tax) $(0.52) per diluted share • Q4 2022 — $54 million loss ($92 million after-tax) $(0.62) per diluted share The 2021 year-to-date results above include $194 million of pre-tax acquisition-related and other charges, a $64 million tax benefit related to these charges, as well as $11 million of after-tax charges related to the Company's share of equity method investment earnings. The net impact of the above items and effect on diluted earnings per share by quarter was as follows: Acquisition-Related Charges & Other Diluted EPS Impact • Q1 2021 — $24 million loss ($18 million after-tax and equity interest) $(0.11) per diluted share • Q2 2021 — $33 million loss ($36 million after-tax and equity interest) $(0.21) per diluted share • Q3 2021 — $33 million loss ($26 million after-tax and equity interest) $(0.15) per diluted share • Q4 2021 — $104 million loss ($61 million after-tax and equity interest) $(0.37) per diluted share |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 fiscal years 2022 and 2021, and 53 weeks in the fiscal year 2020. On August 19, 2022, the Company completed the sale of its Oil & Gas business. This divestiture does not qualify for discontinued operations, and therefore, the results of the Oil & Gas business are included in the Company's continuing operations for all periods presented through the date of sale. There were no assets or liabilities held for sale relating to the Oil & Gas business as of January 1, 2022. On July 22, 2022, the Company completed the previously announced sale of its Convergent Security Solutions ("CSS") business comprised of the commercial electronic security and healthcare businesses. On July 5, 2022, the Company completed the previously announced sale of its Mechanical Access Solutions ("MAS") business, the automatic doors business. The assets and liabilities related to CSS and MAS are classified as held for sale on the Company's Consolidated Balance Sheets as of January 1, 2022. The CSS and MAS divestitures represent a single plan to exit the Security segment and are considered a strategic shift that will have a major effect on the Company’s operations and financial results. The operating results of CSS and MAS have been reported as discontinued operations in the Consolidated Financial Statements. Amounts previously reported have been reclassified to conform to this presentation in accordance with Accounting Standards Codification ("ASC") 205, Presentation of Financial Statements ("ASC 205"), to allow for meaningful comparison of continuing operations. In November 2020, the Company sold its commercial electronic security businesses in five countries in Europe and emerging markets within the Security segment. In October 2020, the Company sold a product line in Oil & Gas within the Industrial segment. The operating results of these businesses have been reported in the Consolidated Financial Statements through their respective dates of sale in 2020. The divestitures above are part of the Company's strategic commitment to simplify and streamline its portfolio to focus on the core Tools & Outdoor and Industrial businesses. Refer to Note T, Divestitures , for further discussion on these transactions. In December 2021, the Company acquired the remaining 80 percent ownership stake in MTD Holdings Inc. ("MTD"), a privately held global manufacturer of outdoor power equipment. The Company previously acquired a 20 percent interest in MTD in January 2019. Prior to closing on the remaining 80 percent ownership stake, the Company applied the equity method of accounting to the 20% investment in MTD. In November 2021, the Company acquired Excel Industries ("Excel"), a leading designer and manufacturer of premium commercial and residential turf-care equipment. These acquisitions were accounted for as business combinations using the acquisition method of accounting and the results subsequent to the dates of acquisition are included in the Company's Tools & Outdoor segment. In February 2020, the Company acquired Consolidated Aerospace Manufacturing, LLC ("CAM"). This acquisition was accounted for as a business combination using the acquisition method of accounting and the results subsequent to the date of acquisition are included in the Company's Industrial segment. Refer to Note E, Acquisitions and Investments , for further discussion on these transactions. |
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 credit losses. 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. The Company's payment terms are generally consistent with the industries in which its businesses operate and typically range from 30-90 days globally. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. The Company does not adjust the promised amount of consideration for the effects of a significant financing component when the period between transfer of the product and receipt of payment is less than one year. Any significant financing components for contracts greater than one year are included in revenue over time. |
Allowance For Credit Losses | ALLOWANCE FOR CREDIT LOSSES — The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables. The allowance is determined using two methods. The amounts calculated from each of these methods are combined to determine the total amount reserved. 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 rates, write-off experience, and forecasts of future economic conditions. 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 and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. Refer to Note C, Inventories , Net , 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 Land improvements 10 — 20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 7 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 generally 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 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 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 a 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. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For a qualitative assessment, 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 royalty savings attributable to owning the intangible assets. Intangible assets with definite lives are amortized over their estimated useful lives to reflect 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 2022, 2021 or 2020 as part of the Company's annual impairment testing. Goodwill totaling $39.0 million was allocated to the Oil & Gas business based on the relative fair value of the business disposed, resulting in a reduction of goodwill which was included in the impairment loss relating to the Oil & Gas business in the second quarter of 2022. Refer to Note T, Divestitures |
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. 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, may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. The Company recognizes all derivative instruments on the balance sheet 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) ("OCI"), 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 included in the assessment of effectiveness, are recorded in OCI 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 accumulated other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in OCI and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis in Other, net over the term of the hedge. 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. Changes in the fair value of derivatives not designated as hedges are reported in Other, net in the Consolidated Statements of Operations. Refer to Note I, Financial Instruments |
Revenue Recognition and Shipping and Handling Costs | REVENUE RECOGNITION — The Company’s revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). For its contracts with customers, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. The majority of the Company’s revenues are recorded at a point in time from the sale of tangible products. A portion of the Company’s revenues within the Oil & Gas business, disposed in the third quarter of 2022, were generated from equipment leased to custome rs. Customer arrangements are identified as leases if they include transfer of a tangible asset which is provided to the customer in exchange for payments typically at fixed rates payable monthly, quarterly or annually. Customer leases may include terms to allow for extension of leases for a short period of time, but typically do not provide for customer termination prior to the initial term. Some customer leases include terms to allow the customer to purchase the underlying asset, which occurs occasionally, and virtually no customer leases include residual value guarantee clauses. For Oil & Gas leases, underlying assets were assessed for functionality at termination of the lease and, if necessary, an impairment to the leased asset value was recorded. Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated using historical averages adjusted for any expected changes due to current business conditions. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense. The Company’s revenues can be generated from contracts with multiple performance obligations. When a contract involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation. The Company utilized the output method for contract sales in the Oil & Gas business. The output method recognizes revenue based on direct measurements of the customer value of the goods or services transferred to date relative to the remaining goods or services promised under the contract. The output method includes methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered. The Company sold the Oil & Gas business in the third quarter of 2022. Refer to Note T, Divestitures , for further discussion Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. Incremental costs of obtaining or fulfilling a contract with a customer that are expected to be recovered are recognized and classified in Other current assets or Other assets in the Consolidated Balance Sheets and are typically amortized over the contract period. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less. 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, as appropriate, in the Consolidated Balance Sheets. |
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. Cost of sales is primarily comprised of freight, direct materials, direct labor as well as overhead which |
Advertising Costs | ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. |
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. |
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 three |
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 earnings in the period that includes the enactment date. The Company recognizes the tax on global intangible low-taxed income as a period expense in the period the tax is incurred. 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 carryforwards. 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 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, litigation, or other proceedings with taxing authorities. 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 common shareowners 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 or the if-converted method, as applicable, when the effect is dilutive. |
New Accounting Standards Adopted and Recently Issued Accounting Standards Not Yet Adopted | NEW ACCOUNTING STANDARDS ADOPTED — In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The new standard improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency. The new standard requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company elected to early adopt this standard in the first quarter of 2022 and it did not have a material impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings per share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Equity (Subtopic 815-40). The new standard clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted this standard prospectively in the first quarter of 2022 and it did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06 , Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The new standard reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and amends the guidance for the derivatives scope exception for contracts in an entity's own equity. The standard also amends and makes targeted improvements to the related earnings per share guidance. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2022, using the modified retrospective method, which has no impact to prior periods. In accordance with the standard, the Company increased weighted-average shares outstanding used to calculate diluted earnings per share for the year ended December 31, 2022 by 3.6 million shares, as required by the use of the if-converted method for convertible instruments that may be settled in cash or shares. See Note J, Capital Stock , for further discussion. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The new standard provides optional expedients and exceptions that companies can apply during a limited time period to account for contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. Companies may elect to apply these optional expedients and exceptions beginning March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to clarify the scope of Topic 848 and provide explicit guidance to help companies applying optional expedients and exceptions . This ASU is effective immediately for all entities that have applied optional expedients and exceptions. The Company applied certain optional expedients and exceptions as needed to comply with regulatory and tax authorities for the transition to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date Topic of 848 , effective upon issuance, to defer the sunset date of Topic 848 from December 2022 to December 2024 following the cessation of LIBOR being moved to June 2023. The Company's adoption of these standards did not have a material impact on its consolidated financial statements. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED — In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new standard requires that a buyer in a supplier finance program disclose sufficient information about the key terms of the program, the amount of outstanding confirmed obligations at period end, where the obligations are presented in the balance sheet, and a rollforward of the obligations during the annual period. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments in this update should be applied retrospectively to all periods in which a balance sheet is presented, except for the rollforward requirement, which is applied prospectively. The Company will adopt this disclosure guidance in the first quarter of 2023 related to its supplier finance programs. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The new standard clarifies that a contractual restriction on the sale of an equity security should not be considered in measuring the fair value of the security. The new standard also requires certain disclosures related to equity securities with contractual sale restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied prospectively. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method . The new standard expands and clarifies the use of the portfolio layer method for fair value hedges of interest rate risk. The new standard allows non-prepayable financial assets to also be included in a closed portfolio which is hedged using the portfolio layer method. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The new guidance on hedging multiple layers in a closed portfolio should be applied prospectively and the guidance on the accounting for fair value basis adjustments should be applied on a modified retrospective basis. The Company will adopt this guidance in the first quarter of 2023 and does not expect it to have a material impact on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant And Equipment | Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows: Useful Life Land improvements 10 — 20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 7 (Millions of Dollars) December 31, 2022 January 1, 2022 Land $ 137.7 $ 143.1 Land improvements 59.7 60.8 Buildings 793.0 738.5 Leasehold improvements 191.7 167.2 Machinery and equipment 3,394.4 3,394.5 Computer software 501.4 470.6 Property, plant & equipment, gross $ 5,077.9 $ 4,974.7 Less: accumulated depreciation and amortization (2,724.8) (2,637.9) Property, plant & equipment, net $ 2,353.1 $ 2,336.8 |
ACCOUNTS AND NOTES RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts and Financing Receivable | (Millions of Dollars) December 31, 2022 January 1, 2022 Trade accounts receivable $ 1,142.0 $ 1,398.2 Trade notes receivable 100.1 75.3 Other accounts receivable 95.5 104.1 Accounts and notes receivable 1,337.6 1,577.6 Allowance for credit losses (106.6) (95.9) Accounts and notes receivable, net $ 1,231.0 $ 1,481.7 |
Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for credit losses for the years ended December 31, 2022 and January 1, 2022 are as follows: (Millions of Dollars) 2022 2021 Balance beginning of period $ 95.9 $ 106.2 Charged to costs and expenses 14.3 — Other, including recoveries and deductions (a) (3.6) (10.3) Balance end of period $ 106.6 $ 95.9 (a) Amounts represent charge-offs less recoveries, the impacts of foreign currency translation, acquisitions, divestitures and net transfers to/from other accounts. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (Millions of Dollars) December 31, 2022 January 1, 2022 Finished products $ 3,460.8 $ 3,486.2 Work in process 338.7 394.8 Raw materials 2,061.6 1,538.9 Total $ 5,861.1 $ 5,419.9 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows: Useful Life Land improvements 10 — 20 Buildings 40 Machinery and equipment 3 — 15 Computer software 3 — 7 (Millions of Dollars) December 31, 2022 January 1, 2022 Land $ 137.7 $ 143.1 Land improvements 59.7 60.8 Buildings 793.0 738.5 Leasehold improvements 191.7 167.2 Machinery and equipment 3,394.4 3,394.5 Computer software 501.4 470.6 Property, plant & equipment, gross $ 5,077.9 $ 4,974.7 Less: accumulated depreciation and amortization (2,724.8) (2,637.9) Property, plant & equipment, net $ 2,353.1 $ 2,336.8 |
Depreciation and Amortization Expense, Property, Plant and Equipment | Depreciation and amortization expense associated with property, plant and equipment was as follows: (Millions of Dollars) 2022 2021 2020 Depreciation $ 330.4 $ 326.3 $ 332.6 Amortization 39.3 47.7 43.9 Depreciation and amortization expense $ 369.7 $ 374.0 $ 376.5 |
ACQUISITIONS AND INVESTMENTS -
ACQUISITIONS AND INVESTMENTS - Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the acquisition date value of identifiable net assets acquired and liabilities assumed adjusted for measurement period adjustments: (Millions of Dollars) Cash and cash equivalents $ 111.5 Accounts receivable, net 270.5 Inventories, net 855.7 Prepaid expenses and other assets 56.9 Property, plant and equipment 256.9 Trade names 390.0 Customer relationships 460.0 Other assets 38.5 Accounts payable (394.6) Accrued expenses (201.1) Deferred revenue (0.9) Long-term debt (110.9) Deferred taxes (214.3) Other liabilities (68.4) Total identifiable net assets $ 1,449.8 Goodwill 486.9 Total consideration $ 1,936.7 (Millions of Dollars) Cash and cash equivalents $ 35.8 Accounts receivable, net 48.3 Inventories, net 124.3 Prepaid expenses and other assets 2.6 Property, plant and equipment 127.9 Trade names 25.0 Customer relationships 565.0 Accounts payable (25.9) Accrued expenses (26.9) Deferred taxes (16.3) Other liabilities (0.3) Total identifiable net assets $ 859.5 Goodwill 632.3 Contingent consideration (155.3) Total consideration paid $ 1,336.5 |
Business Acquisition, Pro Forma Information | The following table presents supplemental pro-forma information as if the 2021 acquisitions had occurred on December 29, 2019. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net sales and net earnings would have been had the Company completed the acquisitions on the aforementioned date. In addition, the pro-forma consolidated results do not purport to project the future results of the Company. (Millions of Dollars, except per share amounts) 2022 2021 Net sales $ 16,947.4 $ 17,890.8 Net earnings from continuing operations attributable to common shareowners - Diluted 318.3 1,666.0 Diluted earnings per share of common stock - Continuing operations $ 2.03 $ 10.10 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 & Outdoor Industrial Total Balance January 2, 2021 $ 5,246.6 $ 2,646.5 $ 7,893.1 Acquisitions 777.3 (0.5) 776.8 Foreign currency translation and other (50.2) (29.0) (79.2) Balance January 1, 2022 $ 5,973.7 $ 2,617.0 $ 8,590.7 Acquisitions 90.5 — 90.5 Foreign currency translation and other (124.5) (54.0) (178.5) Balance December 31, 2022 $ 5,939.7 $ 2,563.0 $ 8,502.7 |
Intangible Assets | INTANGIBLE ASSETS — Intangible assets at December 31, 2022 and January 1, 2022 were as follows: 2022 2021 (Millions of Dollars) Gross Accumulated Gross Accumulated Amortized Intangible Assets — Definite lived Patents and copyrights $ 25.8 $ (25.6) $ 27.0 $ (26.6) Trade names 247.7 (118.0) 275.9 (118.8) Customer relationships 2,881.2 (1,059.9) 3,027.5 (1,027.5) Other intangible assets 129.6 (122.0) 147.6 (134.8) Total $ 3,284.3 $ (1,325.5) $ 3,478.0 $ (1,307.7) |
Intangible Assets Amortization Expense by Segment | Intangible assets amortization expense by segment was as follows: (Millions of Dollars) 2022 2021 2020 Tools & Outdoor $ 108.1 $ 64.1 $ 61.5 Industrial 94.4 99.9 96.6 Discontinued Operations — 39.1 43.5 Consolidated $ 202.5 $ 203.1 $ 201.6 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (Millions of Dollars) December 31, 2022 January 1, 2022 Payroll and related taxes $ 192.0 $ 346.4 Income and other taxes 260.7 306.0 Customer rebates and sales returns 376.6 408.5 Insurance and benefits 95.3 83.0 Restructuring costs 62.3 31.7 Derivative financial instruments 16.1 8.7 Warranty costs 99.8 103.6 Deferred revenue 29.6 35.0 Freight costs 220.3 221.9 Environmental costs 39.4 46.1 Current lease liability 114.1 115.5 Forward stock purchase contract — 330.4 Accrued interest 49.0 80.7 Other 565.5 523.5 Total $ 2,120.7 $ 2,641.0 |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | December 31, 2022 January 1, 2022 (Millions of Dollars) Interest Rate Notional Value Unamortized Discount Unamortized Gain (Loss) Terminated Swaps 1 Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2025 2.30% $ 500.0 $ (0.5) $ — $ — $ (1.8) $ 497.7 $ — Notes payable due 2026 3.40% 500.0 (0.3) — — (1.4) 498.3 497.8 Notes payable due 2026 3.42% 25.0 — — 1.4 — 26.4 24.9 Notes payable due 2026 1.84% 26.7 — — 1.3 — 28.0 28.4 Notes payable due 2028 7.05% 150.0 — 6.0 5.8 — 161.8 163.9 Notes payable due 2028 4.25% 500.0 (0.2) — — (2.6) 497.2 496.8 Notes payable due 2028 3.52% 50.0 — — 3.8 (0.1) 53.7 49.9 Notes payable due 2030 2.30% 750.0 (1.8) — — (3.7) 744.5 743.7 Notes payable due 2032 3.00% 500.0 (0.9) — — (3.2) 495.9 — Notes payable due 2040 5.20% 400.0 (0.2) (26.1) — (2.4) 371.3 369.7 Notes payable due 2048 4.85% 500.0 (0.5) — — (4.7) 494.8 494.6 Notes payable due 2050 2.75% 750.0 (1.9) — — (7.8) 740.3 740.0 Notes payable due 2060 (junior subordinated) 4.00% 750.0 — — — (8.8) 741.2 740.9 Other, payable in varying amounts 2024 through 2027 4.10%-4.31% 3.0 — — — — 3.0 4.3 Total long-term debt, including current maturities $ 5,404.7 $ (6.3) $ (20.1) $ 12.3 $ (36.5) $ 5,354.1 $ 4,354.9 Less: Current maturities of long-term debt (1.2) (1.3) Long-term debt $ 5,352.9 $ 4,353.6 1 Unamortized gain (loss) associated with interest rate swaps are more fully discussed in Note I, Financial Instruments. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and January 1, 2022 follows: (Millions of Dollars) Balance Sheet 2022 2021 Balance Sheet 2022 2021 Derivatives designated as hedging instruments: Interest Rate Contracts Cash Flow Other current assets $ — $ 1.2 Accrued expenses $ — $ 1.9 Foreign Exchange Contracts Cash Flow Other current assets 4.5 18.3 Accrued expenses 4.2 0.8 Net Investment Hedge Other current assets — 2.5 Accrued expenses — — LT other assets — 3.3 LT other liabilities — — Total Designated as hedging instruments $ 4.5 $ 25.3 $ 4.2 $ 2.7 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 7.7 $ 7.8 Accrued expenses $ 11.9 $ 6.0 Total $ 12.2 $ 33.1 $ 16.1 $ 8.7 |
Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income into Earnings for Active Derivative Financial Instruments | The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for 2022, 2021 and 2020: 2022 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ 23.4 Interest expense $ (5.8) $ — Foreign Exchange Contracts $ 30.6 Cost of sales $ 53.3 $ — 2021 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ 14.9 Interest expense $ (3.9) $ — Foreign Exchange Contracts $ 24.1 Cost of sales $ (26.1) $ — 2020 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ (70.9) Interest expense $ (16.3) $ — Foreign Exchange Contracts $ (16.1) Cost of sales $ 12.4 $ — A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations for 2022, 2021 and 2020 is as follows: 2022 2021 2020 (Millions of dollars) Cost of Sales Interest Expense Cost of Sales Interest Expense Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded $ 12,663.3 $ 338.5 $ 10,189.1 $ 185.4 $ 8,431.9 $ 222.7 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (53.3) $ — $ 26.1 $ — $ (12.4) $ — Gain (loss) reclassified from OCI into Income $ 53.3 $ — $ (26.1) $ — $ 12.4 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (5.8) $ — $ (3.9) $ — $ (16.3) 1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. The pre-tax gains and losses from fair value changes during 2022, 2021 and 2020 were as follows: 2022 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ 6.1 $ 0.6 Other, net $ 0.7 $ 0.7 Cross Currency Swap $ (1.2) $ 2.5 Other, net $ 1.5 $ 1.5 Non-derivative designated as Net Investment Hedge $ (0.1) $ — Other, net $ — $ — 2021 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ (1.2) $ 1.6 Other, net $ 1.5 $ 1.5 Cross Currency Swap $ 11.7 $ 24.6 Other, net $ 3.7 $ 3.7 Non-derivative designated as Net Investment Hedge $ (6.7) $ — Other, net $ — $ — 2020 (Millions of Dollars) Total Gain (Loss) Recorded in OCI Excluded Component Recorded in OCI Income Statement Classification Total Gain (Loss) Reclassified from OCI to Income Excluded Component Amortized from OCI to Income Forward Contracts $ 0.8 $ — Other, net $ — $ — Cross Currency Swap $ (5.4) $ 60.7 Other, net $ 18.2 $ 18.2 Non-derivative designated as Net Investment Hedge $ (8.5) $ — Other, net $ — $ — |
Summary of Pre-tax effects of fair value hedging on Statement of Operations | A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations for 2022, 2021 and 2020 is as follows: 2022 2021 2020 (Millions of dollars) Interest Expense Interest Expense Interest Expense Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded $ 338.5 $ 185.4 $ 222.7 Amortization of gain on terminated swaps $ (0.4) $ (0.4) $ (3.0) A summary of the amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of December 31, 2022 and January 1, 2022 is as follows: (Millions of dollars) 2022 Carrying Amount of Hedged Liability 1 2022 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current maturities of long-term debt $ 1.2 Terminated Swaps $ — Long-Term Debt $ 533.1 Terminated Swaps $ (20.1) 1 Represents hedged items no longer designated in qualifying fair value hedging relationships. (Millions of dollars) 2021 Carrying Amount of Hedged Liability 1 2021 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current maturities of long-term debt $ 1.3 Terminated Swaps $ — Long-Term Debt $ 533.6 Terminated Swaps $ (20.4) |
Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The gain (loss) recorded in the Consolidated Statements of Operations from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for 2022, 2021 and 2020 are as follows: (Millions of Dollars) Income Statement 2022 2021 2020 Foreign Exchange Contracts Other-net $ 5.0 $ (10.8) $ (15.7) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
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, 2022, January 1, 2022, and January 2, 2021. 2022 2021 2020 Numerator (in millions): Net Earnings from Continuing Operations Attributable to Common Shareowners $ 164.3 $ 1,538.3 $ 1,129.8 Add: Contract adjustment payments accretion 1.2 1.3 1.7 Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted 165.5 1,539.6 1,131.5 Net earnings from discontinued operations 892.4 136.7 79.9 Net Earnings Attributable to Common Shareowners - Diluted $ 1,057.9 $ 1,676.3 $ 1,211.4 2022 2021 2020 Denominator (in thousands): Basic weighted-average shares outstanding 148,170 158,760 154,176 Dilutive effect of stock contracts and awards 8,383 6,264 8,251 Diluted weighted-average shares outstanding 156,553 165,024 162,427 Earnings per share of common stock: Basic earnings per share of common stock: Continuing operations $ 1.11 $ 9.69 $ 7.33 Discontinued operations $ 6.02 $ 0.86 $ 0.52 Total basic earnings per share of common stock $ 7.13 $ 10.55 $ 7.85 Diluted earnings per share of common stock: Continuing operations $ 1.06 $ 9.33 $ 6.97 Discontinued operations $ 5.70 $ 0.83 $ 0.49 Total dilutive earnings per share of common stock $ 6.76 $ 10.16 $ 7.46 |
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 weighted-average diluted shares outstanding because the effect would be anti-dilutive (in thousands): 2022 2021 2020 Number of stock options 4,019 1,039 2,376 |
Common Stock Share Activity | Common stock activity for 2022, 2021 and 2020 was as follows: 2022 2021 2020 Outstanding, beginning of year 163,328,776 160,752,262 153,506,409 Issued from treasury 5,711,974 3,105,587 7,474,394 Returned to treasury (16,057,220) (529,073) (228,541) Outstanding, end of year 152,983,530 163,328,776 160,752,262 Shares subject to the forward share purchase contract (3,645,510) (3,645,510) (3,645,510) Outstanding, less shares subject to the forward share purchase contract 149,338,020 159,683,266 157,106,752 |
Common Stock Shares Reserved | Common stock shares reserved for issuance under various employee and director stock plans at December 31, 2022 and January 1, 2022 are as follows: 2022 2021 Employee stock purchase plan 1,251,699 1,388,655 Other stock-based compensation plans 8,403,765 5,260,005 Total shares reserved 9,655,464 6,648,660 |
Weighted Average Assumptions | The following weighted-average assumptions were used to value grants made in 2022, 2021 and 2020: 2022 2021 2020 Average expected volatility 38.6 % 34.0 % 35.0 % Dividend yield 3.7 % 1.6 % 1.6 % Risk-free interest rate 3.2 % 1.3 % 0.4 % Expected life 4.2 years 5.3 years 5.3 years Fair value per option $ 20.00 $ 52.39 $ 48.36 Weighted-average vesting period 1.7 years 2.9 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, 2022 are as follows: Options Price Outstanding, beginning of year 5,573,672 $ 151.46 Granted 868,139 78.83 Exercised (295,451) 86.30 Forfeited (864,647) 169.79 Outstanding, end of year 5,281,713 $ 140.22 Exercisable, end of year 3,591,149 $ 145.59 |
Outstanding and Exercisable Stock Option | Outstanding and exercisable stock option information at December 31, 2022 follows: Outstanding Stock Options Exercisable Stock Options Exercise Price Ranges Options Weighted- Weighted- Options Weighted- Weighted- $100.00 and below 1,045,223 8.29 $ 80.46 207,890 1.69 $ 91.05 100.01 — 165.00 2,257,043 5.24 132.05 2,078,188 5.05 131.04 165.01 — higher 1,979,447 7.10 181.09 1,305,071 6.37 177.45 5,281,713 6.54 $ 140.22 3,591,149 5.34 $ 145.59 |
Summary of Non-Vested Restricted Stock Unit Activity | A summary of non-vested restricted share units and award activity as of December 31, 2022, and changes during the year then ended is as follows: Restricted Share Weighted-Average Non-vested at January 1, 2022 978,351 $ 173.06 Granted 870,848 85.05 Vested (308,783) 163.11 Forfeited (273,954) 171.08 Non-vested at December 31, 2022 1,266,462 $ 115.02 A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: MICP PSUs Weighted-Average Non-vested at January 1, 2022 249,730 $ 100.73 Granted — — Vested (144,923) 104.32 Forfeited (37,109) 99.75 Non-vested at December 31, 2022 67,698 $ 93.58 A summary of the activity pertaining to the maximum number of shares that may be issued is as follows: LTIP Units Weighted-Average Non-vested at January 1, 2022 649,806 $ 145.90 Granted 250,518 157.05 Vested (92,589) 123.56 Forfeited (273,149) 139.67 Non-vested at December 31, 2022 534,586 $ 158.18 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (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 (Losses) gains on cash flow hedges, net of tax Gains (losses) on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - January 2, 2021 $ (1,235.3) $ (103.0) $ 72.8 $ (448.2) $ (1,713.7) Other comprehensive (loss) income before reclassifications (307.7) 36.2 2.9 107.0 (161.6) Reclassification adjustments to earnings — 17.0 (3.9) 16.6 29.7 Net other comprehensive (loss) income (307.7) 53.2 (1.0) 123.6 (131.9) Balance - January 1, 2022 $ (1,543.0) $ (49.8) $ 71.8 $ (324.6) $ (1,845.6) Other comprehensive (loss) income before reclassifications (328.3) 31.7 3.7 73.4 (219.5) Adjustments related to sales of businesses (36.1) — — — (36.1) Reclassification adjustments to earnings — (26.4) (1.7) 9.8 (18.3) Net other comprehensive (loss) income (364.4) 5.3 2.0 83.2 (273.9) Balance - December 31, 2022 $ (1,907.4) $ (44.5) $ 73.8 $ (241.4) $ (2,119.5) |
Reclassification Out of Accumulated Other Comprehensive Loss | The reclassifications out of Accumulated other comprehensive loss for the years ended December 31, 2022 and January 1, 2022 were as follows: (Millions of Dollars) 2022 2021 Components of Accumulated other comprehensive loss Reclassification adjustments Reclassification adjustments Affected line item in Consolidated Statements of Operations Realized gains (losses) on cash flow hedges $ 53.3 $ (26.1) Cost of sales Realized losses on cash flow hedges (5.8) (3.9) Interest expense Total before taxes $ 47.5 $ (30.0) Tax effect (21.1) 13.0 Income taxes Realized gains (losses) on cash flow hedges, net of tax $ 26.4 $ (17.0) Realized gains on net investment hedges $ 2.2 $ 5.2 Other, net Tax effect (0.5) (1.3) Income taxes Realized gains on net investment hedges, net of tax $ 1.7 $ 3.9 Actuarial losses and prior service costs / credits (13.3) (21.0) Other, net Settlement losses — (1.1) Other, net Total before taxes (13.3) (22.1) Tax effect 3.5 5.5 Income taxes Amortization of defined benefit pension items, net of tax $ (9.8) $ (16.6) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Expense for Defined Contribution Plans | The expense (benefit) for defined contribution plans, aside from the earlier discussed ESOP plans, are as follows: (Millions of Dollars) 2022 2021 2020 Multi-employer plan expense $ 6.0 $ 7.1 $ 7.8 Other defined contribution plan (benefit) expense $ (2.4) $ 28.6 $ 24.9 |
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) 2022 2021 2020 2022 2021 2020 Service cost $ 6.2 $ 6.5 $ 6.8 $ 15.1 $ 17.6 $ 16.1 Interest cost 33.6 23.0 35.3 22.9 16.7 22.5 Expected return on plan assets (60.9) (54.9) (58.7) (37.7) (39.9) (41.2) Amortization of prior service cost (credit) 0.9 1.1 1.0 (0.7) (0.8) (0.7) Actuarial loss amortization 5.9 9.2 8.5 7.9 12.2 11.7 Special termination benefit — — — — — 0.2 Settlement / curtailment loss 0.2 0.4 — 0.2 0.7 0.6 Net periodic pension (benefit) expense $ (14.1) $ (14.7) $ (7.1) $ 7.7 $ 6.5 $ 9.2 Other Benefit Plans (Millions of Dollars) 2022 2021 2020 Service cost $ 0.3 $ 0.4 $ 0.6 Interest cost 1.5 0.9 1.5 Amortization of prior service credit — (0.7) (1.3) Actuarial (gain) loss amortization (0.7) — 0.3 Settlement / curtailment gain (0.4) — — Special termination benefit 6.9 — 16.1 Net periodic post-retirement expense $ 7.6 $ 0.6 $ 17.2 |
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 2022 are as follows: (Millions of Dollars) 2022 Current year actuarial gain $ (75.1) Amortization of actuarial loss (13.3) Prior service cost from plan amendments 1.2 Settlement / curtailment loss — Currency / other (24.5) Total gain recognized in Accumulated other comprehensive loss (pre-tax) $ (111.7) |
Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets | 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) 2022 2021 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at end of prior year $ 1,458.2 $ 1,404.3 $ 1,490.4 $ 1,622.3 $ 50.3 $ 61.2 Service cost 6.2 6.5 15.1 17.6 0.3 0.4 Interest cost 33.6 23.0 22.9 16.7 1.5 0.9 Special termination benefit — — — — 6.9 — Settlements/curtailments (10.7) (0.8) (4.4) (15.3) (0.4) — Actuarial gain (314.7) (47.2) (409.5) (92.4) (9.5) (6.6) Plan amendments 0.7 0.8 0.1 0.1 0.4 — Foreign currency exchange rate changes — — (133.1) (37.7) (0.2) (0.2) Participant contributions — — 0.2 0.2 — — Acquisitions, divestitures, and other (4.5) 152.4 2.2 28.9 — — Benefits paid (85.3) (80.8) (52.9) (50.0) (6.5) (5.4) Benefit obligation at end of year $ 1,083.5 $ 1,458.2 $ 931.0 $ 1,490.4 $ 42.8 $ 50.3 Change in plan assets Fair value of plan assets at end of prior year $ 1,340.1 $ 1,191.5 $ 1,226.6 $ 1,229.6 $ — $ — Actual return on plan assets (279.0) 63.4 (281.3) 17.9 — — Participant contributions — — 0.2 0.2 — — Employer contributions 7.0 13.8 18.4 20.8 6.5 5.4 Settlements (11.0) (0.8) (4.4) (13.7) — — Foreign currency exchange rate changes — — (121.0) (15.6) — — Acquisitions, divestitures, and other (4.5) 153.0 (2.2) 37.4 — — Benefits paid (85.3) (80.8) (52.9) (50.0) (6.5) (5.4) Fair value of plan assets at end of plan year $ 967.3 $ 1,340.1 $ 783.4 $ 1,226.6 $ — $ — Funded status — assets less than benefit obligation $ (116.2) $ (118.1) $ (147.6) $ (263.8) $ (42.8) $ (50.3) Unrecognized prior service cost (credit) 2.9 3.5 (13.8) (16.4) 0.4 0.1 Unrecognized net actuarial loss (gain) 233.2 213.4 143.1 268.3 (18.3) (9.7) Net amount recognized $ 119.9 $ 98.8 $ (18.3) $ (11.9) $ (60.7) $ (59.9) U.S. Plans Non-U.S. Plans Other Benefits (Millions of Dollars) 2022 2021 2022 2021 2022 2021 Amounts recognized in the Consolidated Balance Sheets Prepaid benefit cost (non-current) $ 4.1 $ 0.6 $ 67.7 $ 62.4 $ — $ — Current benefit liability (6.1) (6.0) (9.5) (10.3) (8.9) (7.5) Non-current benefit liability (114.2) (112.7) (205.8) (315.9) (33.9) (42.8) Net liability recognized $ (116.2) $ (118.1) $ (147.6) $ (263.8) $ (42.8) $ (50.3) Accumulated other comprehensive loss (pre-tax): Prior service cost (credit) $ 2.9 $ 3.5 $ (13.8) $ (16.4) $ 0.4 $ 0.1 Actuarial loss (gain) 233.2 213.4 143.1 268.3 (18.3) (9.7) 236.1 216.9 129.3 251.9 (17.9) (9.6) Net amount recognized $ 119.9 $ 98.8 $ (18.3) $ (11.9) $ (60.7) $ (59.9) The following table provides information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets as of December 31, 2022 and January 1, 2022: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2022 2021 2022 2021 Projected benefit obligation $ 982.3 $ 1,303.3 $ 266.7 $ 399.1 Fair value of plan assets $ 862.0 $ 1,184.6 $ 51.3 $ 72.9 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table provides information regarding pension plans in which accumulated benefit obligations exceed plan assets as of December 31, 2022 and January 1, 2022: U.S. Plans Non-U.S. Plans (Millions of Dollars) 2022 2021 2022 2021 Accumulated benefit obligation $ 982.3 $ 1,299.8 $ 208.7 $ 326.1 Fair value of plan assets $ 862.0 $ 1,184.6 $ 25.7 $ 50.3 |
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 2022 2021 2020 2022 2021 2020 2022 2021 2020 Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 5.36 % 2.80 % 2.39 % 4.70 % 1.78 % 1.31 % 5.47 % 2.84 % 2.19 % Rate of compensation increase — 3.00 % 3.56 % 3.64 % 3.56 % 3.29 % — — 3.50 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate - service cost 3.14 % 2.95 % 3.58 % 2.67 % 1.41 % 1.57 % 4.41 % 4.42 % 5.62 % Discount rate - interest cost 2.28 % 1.68 % 2.75 % 1.69 % 1.06 % 1.61 % 2.25 % 1.60 % 3.36 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.57 % 3.27 % 3.30 % — — 3.50 % Expected return on plan assets 4.69 % 4.75 % 5.25 % 3.41 % 3.25 % 3.90 % — — — |
Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy | The Company’s worldwide asset allocations at December 31, 2022 and January 1, 2022 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820, Fair Value Measurement , were as follows: Asset Category (Millions of Dollars) 2022 Level 1 Level 2 Cash and cash equivalents $ 42.3 $ 28.2 $ 14.1 Equity securities U.S. equity securities 181.9 66.2 115.7 Foreign equity securities 123.3 33.0 90.3 Fixed income securities Government securities 619.3 236.7 382.6 Corporate securities 702.5 — 702.5 Insurance contracts 36.7 — 36.7 Other 44.7 — 44.7 Total $ 1,750.7 $ 364.1 $ 1,386.6 Asset Category (Millions of Dollars) 2021 Level 1 Level 2 Cash and cash equivalents $ 74.2 $ 55.7 $ 18.5 Equity securities U.S. equity securities 323.3 92.5 230.8 Foreign equity securities 205.9 44.8 161.1 Fixed income securities Government securities 871.1 340.7 530.4 Corporate securities 996.3 — 996.3 Insurance contracts 49.6 — 49.6 Other 46.3 — 46.3 Total $ 2,566.7 $ 533.7 $ 2,033.0 |
Expected Future Benefit Payments | EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid over the next 10 years as follows: (Millions of Dollars) Total Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 Future payments $ 1,451.7 $ 151.6 $ 149.0 $ 146.6 $ 144.6 $ 143.5 $ 716.4 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Level 1 Level 2 Level 3 December 31, 2022 Money market fund $ 9.4 $ 9.4 $ — $ — Equity security $ 3.2 $ 3.2 $ — $ — Deferred compensation plan investments $ 19.0 $ 19.0 $ — $ — Derivative assets $ 12.2 $ — $ 12.2 $ — Derivative liabilities $ 16.1 $ — $ 16.1 $ — Contingent consideration liability $ 268.7 $ — $ — $ 268.7 January 1, 2022 Money market fund $ 11.0 $ 11.0 $ — $ — Equity security $ 13.8 $ 13.8 $ — $ — Deferred compensation plan investments $ 26.2 $ 26.2 $ — $ — Derivative assets $ 33.1 $ — $ 33.1 $ — Derivative liabilities $ 8.7 $ — $ 8.7 $ — Contingent consideration liability $ 288.6 $ — $ — $ 288.6 |
Summary of Company's Financial Instruments Carrying and Fair Values | The following table provides information about the Company's financial assets and liabilities not carried at fair value: December 31, 2022 January 1, 2022 (Millions of Dollars) Carrying Fair Carrying Fair Other investments $ 9.3 $ 9.3 $ 11.2 $ 11.6 Long-term debt, including current portion $ 5,354.1 $ 4,662.9 $ 4,354.9 $ 4,850.2 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from January 1, 2022 to December 31, 2022 is as follows: (Millions of Dollars) January 1, 2022 Net Usage Currency December 31, 2022 Severance and related costs $ 28.2 $ 125.9 $ (98.7) $ 1.6 $ 57.0 Facility closures and asset impairments 3.5 14.9 (13.2) 0.1 5.3 Total $ 31.7 $ 140.8 $ (111.9) $ 1.7 $ 62.3 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | BUSINESS SEGMENTS (Millions of Dollars) 2022 2021 2020 Net Sales Tools & Outdoor $ 14,423.7 $ 12,817.4 $ 10,329.7 Industrial 2,523.4 2,463.1 2,352.7 Corporate Overhead & Other 0.3 0.8 67.6 Consolidated $ 16,947.4 $ 15,281.3 $ 12,750.0 Segment Profit Tools & Outdoor $ 971.9 $ 1,985.4 $ 1,820.3 Industrial 236.2 256.6 220.6 Segment Profit 1,208.1 2,242.0 2,040.9 Corporate Overhead & Other (294.0) (342.9) (302.1) Other, net (274.8) (189.5) (215.7) Loss on sales of businesses (8.4) (0.6) (13.5) Restructuring charges (140.8) (14.5) (73.8) Gain on equity method investment — 68.0 — Asset impairment charge (168.4) — — Loss on debt extinguishment — — (46.9) Interest income 54.7 9.8 17.5 Interest expense (338.5) (185.4) (222.7) Earnings from continuing operations before income taxes and equity interest $ 37.9 $ 1,586.9 $ 1,183.7 Capital and Software Expenditures Tools & Outdoor $ 438.5 $ 375.8 $ 228.6 Industrial 85.6 123.3 102.2 Corporate Overhead & Other — — 0.2 Discontinued operations 6.3 20.0 17.1 Consolidated $ 530.4 $ 519.1 $ 348.1 Depreciation and Amortization Tools & Outdoor $ 387.6 $ 312.9 $ 311.2 Industrial 184.2 201.4 200.0 Corporate Overhead & Other — — 0.3 Discontinued operations 0.4 62.8 66.6 Consolidated $ 572.2 $ 577.1 $ 578.1 Segment Assets 2022 2021 Tools & Outdoor $ 20,202.0 $ 19,537.9 Industrial 5,284.8 5,627.8 25,486.8 25,165.7 Assets held for sale — 3,505.4 Corporate assets (523.5) (491.1) Consolidated $ 24,963.3 $ 28,180.0 |
Business Segments | The following table is a further disaggregation of the Industrial segment revenue for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Engineered Fastening $ 1,874.8 $ 1,842.1 $ 1,717.8 Infrastructure 648.6 621.0 634.9 Industrial $ 2,523.4 $ 2,463.1 $ 2,352.7 |
Geographic Areas | GEOGRAPHIC AREAS (Millions of Dollars) 2022 2021 2020 Net Sales United States $ 10,733.1 $ 9,073.1 $ 7,828.3 Canada 835.7 696.0 575.0 Other Americas 839.4 833.6 587.9 France 489.8 488.8 393.0 Other Europe 2,664.9 2,847.2 2,288.7 Asia 1,384.5 1,342.6 1,077.1 Consolidated $ 16,947.4 $ 15,281.3 $ 12,750.0 December 31, 2022 January 1, 2022 Property, Plant & Equipment, net United States $ 1,465.8 $ 1,433.6 Canada 7.4 21.6 Other Americas 249.8 178.1 France 30.7 36.6 Other Europe 272.9 318.9 Asia 326.5 348.0 Consolidated $ 2,353.1 $ 2,336.8 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities from continuing operations at the end of each fiscal year were as follows: (Millions of Dollars) 2022 2021 Deferred tax liabilities: Depreciation $ 160.1 $ 132.2 Intangible assets 907.5 917.3 Liability on undistributed foreign earnings 45.4 48.2 Lease right-of-use asset 108.2 106.5 Inventory 59.4 79.6 Other 46.7 48.4 Total deferred tax liabilities $ 1,327.3 $ 1,332.2 Deferred tax assets: Employee benefit plans $ 130.9 $ 204.2 Basis differences in liabilities 104.0 100.4 Operating loss, capital loss and tax credit carryforwards 817.4 830.7 Lease liability 110.4 109.7 Intangible assets 556.8 417.7 Basis difference in debt obligations 268.0 205.1 Capitalized research and development costs 134.7 86.0 Other 204.3 206.6 Total deferred tax assets $ 2,326.5 $ 2,160.4 Net Deferred Tax Asset before Valuation Allowance $ 999.2 $ 828.2 Valuation Allowance $ (1,032.5) $ (1,067.2) Net Deferred Tax Liability after Valuation Allowance $ (33.3) $ (239.0) |
Classification of Deferred Taxes | The components of earnings from continuing operations before income taxes and equity interest consisted of the following: (Millions of Dollars) 2022 2021 2020 United States $ (1,233.8) $ (77.7) $ 144.5 Foreign 1,271.7 1,664.6 1,039.2 Earnings before income taxes and equity interest $ 37.9 $ 1,586.9 $ 1,183.7 |
Income Tax Expense (Benefit) Attributable to Continuing Operations | Income taxes on continuing operations consisted of the following: (Millions of Dollars) 2022 2021 2020 Current: Federal $ (79.0) $ 0.3 $ 55.4 Foreign 248.6 388.0 183.2 State (16.7) 31.8 19.8 Total current $ 152.9 $ 420.1 $ 258.4 Deferred: Federal $ (61.2) $ (124.7) $ (25.1) Foreign (222.5) (210.1) (192.1) State (1.6) (30.2) (3.2) Total deferred (285.3) (365.0) (220.4) Income taxes $ (132.4) $ 55.1 $ 38.0 |
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 Income taxes on continuing operations in the Consolidated Statements of Operations is as follows: (Millions of Dollars) 2022 2021 2020 Tax at statutory rate $ 8.0 $ 333.2 $ 248.6 State income taxes, net of federal benefits (19.3) 1.4 12.0 Foreign tax rate differential (28.8) (63.5) (58.6) Uncertain tax benefits 26.3 49.6 17.7 Change in valuation allowance (25.1) (11.9) (12.7) Change in deferred tax liabilities on undistributed foreign earnings 12.8 23.1 (118.8) Stock-based compensation 7.3 (6.3) (9.2) Change in tax rates (5.5) (31.1) (0.3) Tax credits (8.8) (6.7) (6.0) Capital loss — — (40.4) U.S. federal tax expense (benefit) on foreign earnings 55.7 (118.1) 2.0 Intra-entity asset transfer of intellectual property (153.3) (114.2) (27.7) Other (1.7) (0.4) 31.4 Income taxes $ (132.4) $ 55.1 $ 38.0 |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits from continuing operations: (Millions of Dollars) 2022 2021 2020 Balance at beginning of year $ 487.7 $ 428.3 $ 392.0 Additions based on tax positions related to current year 27.2 33.6 27.8 Additions based on tax positions related to prior years 41.1 53.5 34.4 Reductions based on tax positions related to prior years (37.8) (17.2) (19.0) Settlements (7.0) (1.3) (0.5) Statute of limitations expirations (8.5) (9.2) (6.4) Balance at end of year $ 502.7 $ 487.7 $ 428.3 |
COMMITMENTS AND GUARANTEES (Tab
COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Assets And Liabilities, Lessee | The following is a summary of the Company's right-of-use-assets and lease liabilities: (Millions of Dollars) December 31, 2022 January 1, 2022 Right-of-use assets $ 431.5 $ 426.0 Lease liabilities $ 440.5 $ 439.1 Weighted-average incremental borrowing rate 3.6 % 3.5 % Weighted-average remaining term 6 years 6 years |
Summary of Lease Cost | The following is a summary of the Company's total lease cost for the years ended December 31, 2022, January 1, 2022, and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Operating lease cost $ 147.1 $ 126.3 $ 116.7 Short-term lease cost 27.6 25.5 21.0 Variable lease cost 5.9 5.9 7.0 Sublease income (2.5) (1.3) (0.3) Total lease cost $ 178.1 $ 156.4 $ 144.4 |
Operating Lease Maturity Schedule | The following is a summary of the Company's future lease obligations on an undiscounted basis at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Lease obligations $ 490.4 $ 116.2 $ 94.4 $ 70.8 $ 61.0 $ 46.4 $ 101.6 |
Summary of Company's Future Commitments | The following is a summary of the Company’s future marketing commitments at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Marketing commitments $ 81.6 $ 45.1 $ 22.1 $ 7.2 $ 7.2 $ — $ — |
Summary Of Unrecorded Unconditional Purchase Obligations Disclosure | The following is a summary of the Company's unconditional purchase obligations related to these agreements at December 31, 2022: (Millions of Dollars) Total 2023 2024 2025 2026 2027 Thereafter Supplier agreements $ 339.0 $ 142.2 $ 130.8 $ 56.0 $ 10.0 $ — $ — |
Summary of Guarantees | The Company's financial guarantees at December 31, 2022 are as follows: (Millions of Dollars) Term Maximum Carrying Guarantees on the residual values of leased properties One $ 156.6 $ — Standby letters of credit Up to three years 174.0 — Commercial customer financing arrangements Up to six years 79.7 12.7 Total $ 410.3 $ 12.7 |
Summary of Warranty Liability Activity | The changes in the carrying amount of product warranties for the years ended December 31, 2022, January 1, 2022, and January 2, 2021 are as follows: (Millions of Dollars) 2022 2021 2020 Balance beginning of period $ 134.5 $ 107.9 $ 94.4 Warranties and guarantees issued 155.3 150.1 126.9 Warranties assumed in acquisitions — 33.4 — Warranty payments and currency (163.2) (156.9) (113.4) Balance end of period $ 126.6 $ 134.5 $ 107.9 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Pre Tax Losses | Following is the pre-tax (losses) income for this business for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: (Millions of Dollars) 2022 2021 2020 Pre-tax (losses) income $ (2.7) $ (16.8) $ 9.1 |
Schedule of Discontinued Operations | Summarized operating results of discontinued operations are presented in the following table for each fiscal year ended: (Millions of Dollars) 2022 2021 2020 Net Sales $ 1,056.3 $ 1,971.4 $ 1,784.7 Cost of sales 687.5 1,258.7 1,134.8 Selling, general, and administrative (1) 308.0 529.2 510.4 Gain on sale of discontinued operations 1,197.4 — — Other, net and restructuring charges 47.3 59.2 56.2 Earnings from discontinued operations before income taxes $ 1,210.9 $ 124.3 $ 83.3 Income taxes on discontinued operations 318.5 (12.4) 3.4 Net earnings from discontinued operations $ 892.4 $ 136.7 $ 79.9 (1) Includes provision for credit losses. The following table presents the significant non-cash items and capital expenditures for the discontinued operations with respect to CSS and MAS that are included in the Consolidated Statements of Cash Flows for each fiscal year ended: (Millions of Dollars) 2022 2021 2020 Depreciation and amortization $ 0.4 $ 62.8 $ 66.6 Capital expenditures $ 6.3 $ 20.0 $ 17.1 Stock-based compensation $ 17.5 $ 7.9 $ 6.1 As of January 1, 2022, the assets and liabilities related to CSS and MAS were classified as held for sale on the Company's Consolidated Balance Sheets. There were no assets or liabilities held for sale relating to the Oil & Gas business as of January 1, 2022. The carrying amounts of the assets and liabilities that were aggregated in assets held for sale and liabilities held for sale as of January 1, 2022 are presented in the following table: (Millions of Dollars) January 1, 2022 Cash and cash equivalents $ 145.1 Accounts and notes receivable, net 513.9 Inventories, net 169.4 Other current assets 41.2 Property, plant and equipment, net 84.3 Goodwill and other intangibles, net 2,270.2 Other assets 281.3 Total assets $ 3,505.4 Accounts payable and accrued expenses $ 460.4 Other long-term liabilities 137.4 Total liabilities $ 597.8 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Quarter (Millions of Dollars, except per share amounts) First Second Third Fourth Year 2022 Net Sales $ 4,448.0 $ 4,393.0 $ 4,119.6 $ 3,986.8 $ 16,947.4 Gross profit 1,305.4 1,207.1 1,018.1 753.5 4,284.1 Selling, general and administrative (1) 960.3 852.7 799.8 757.2 3,370.0 Net earnings (loss) from continuing operations 155.6 78.7 36.6 (100.6) 170.3 Less: Net earnings attributable to non-controlling interest 0.1 0.1 — — 0.2 Less: Preferred stock dividends and beneficial conversion feature — — — 5.8 5.8 Net Earnings (Loss) from Continuing Operations Attributable to Common Shareowners $ 155.5 $ 78.6 $ 36.6 $ (106.4) $ 164.3 Add: Contract adjustment payments accretion 0.3 0.4 0.3 0.2 1.2 Net Earnings (Loss) from Continuing Operations Attributable to Common Shareowners - Diluted $ 155.8 $ 79.0 $ 36.9 $ (106.2) $ 165.5 Net earnings from discontinued operations 19.8 9.0 808.0 55.6 892.4 Net Earnings (Loss) Attributable to Common Shareowners - Diluted $ 175.6 $ 88.0 $ 844.9 $ (50.6) $ 1,057.9 Basic earnings (loss) per share of common stock: Continuing operations $ 1.00 $ 0.54 $ 0.25 $ (0.72) $ 1.11 Discontinued operations $ 0.13 $ 0.06 $ 5.60 $ 0.38 $ 6.02 Total basic earnings (loss) per share of common stock $ 1.13 $ 0.60 $ 5.85 $ (0.35) $ 7.13 Diluted earnings (loss) per share of common stock: Continuing operations $ 0.94 $ 0.51 $ 0.24 $ (0.72) $ 1.06 Discontinued operations $ 0.12 $ 0.06 $ 5.26 $ 0.37 $ 5.70 Total diluted earnings (loss) per share of common stock $ 1.06 $ 0.57 $ 5.50 $ (0.34) $ 6.76 2021 Net Sales $ 3,720.8 $ 3,798.9 $ 3,779.7 $ 3,981.9 $ 15,281.3 Gross profit 1,387.8 1,361.8 1,215.6 1,127.0 5,092.2 Selling, general and administrative (1) 719.1 767.1 773.5 933.4 3,193.1 Net earnings from continuing operations 459.6 432.5 379.5 279.2 1,550.8 Less: Net losses attributable to non-controlling interest (0.6) (1.0) (0.1) — (1.7) Less: Preferred stock dividends and beneficial conversion feature 9.4 4.8 — — 14.2 Net Earnings from Continuing Operations Attributable to Common Shareowners $ 450.8 $ 428.7 $ 379.6 $ 279.2 $ 1,538.3 Add: Contract adjustment payments accretion 0.2 0.3 0.4 0.4 1.3 Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted $ 451.0 $ 429.0 $ 380.0 $ 279.6 $ 1,539.6 Net earnings from discontinued operations 27.2 26.0 34.6 48.9 136.7 Net Earnings Attributable to Common Shareowners - Diluted $ 478.2 $ 455.0 $ 414.6 $ 328.5 $ 1,676.3 Basic earnings per share of common stock: Continuing operations $ 2.86 $ 2.70 $ 2.38 $ 1.75 $ 9.69 Discontinued operations $ 0.17 $ 0.16 $ 0.22 $ 0.31 $ 0.86 Total basic earnings per share of common stock $ 3.04 $ 2.87 $ 2.60 $ 2.06 $ 10.55 Diluted earnings per share of common stock: Continuing operations $ 2.74 $ 2.60 $ 2.30 $ 1.69 $ 9.33 Discontinued operations $ 0.17 $ 0.16 $ 0.21 $ 0.30 $ 0.83 Total diluted earnings per share of common stock $ 2.91 $ 2.75 $ 2.51 $ 1.99 $ 10.16 (1) Includes provision for credit losses. Acquisition-Related Charges & Other Diluted EPS Impact • Q1 2022 — $221 million loss ($192 million after-tax) $(1.16) per diluted share • Q2 2022 — $248 million loss ($195 million after-tax) $(1.26) per diluted share • Q3 2022 — $119 million loss ($79 million after-tax) $(0.52) per diluted share • Q4 2022 — $54 million loss ($92 million after-tax) $(0.62) per diluted share The 2021 year-to-date results above include $194 million of pre-tax acquisition-related and other charges, a $64 million tax benefit related to these charges, as well as $11 million of after-tax charges related to the Company's share of equity method investment earnings. The net impact of the above items and effect on diluted earnings per share by quarter was as follows: Acquisition-Related Charges & Other Diluted EPS Impact • Q1 2021 — $24 million loss ($18 million after-tax and equity interest) $(0.11) per diluted share • Q2 2021 — $33 million loss ($36 million after-tax and equity interest) $(0.21) per diluted share • Q3 2021 — $33 million loss ($26 million after-tax and equity interest) $(0.15) per diluted share • Q4 2021 — $104 million loss ($61 million after-tax and equity interest) $(0.37) per diluted share |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Allowance for Credit Losses: | |||
Movement in Valuation Allowances and Reserves | |||
Beginning Balance | $ 95.9 | $ 106.2 | $ 91.5 |
Charged To Costs And Expenses | 14.3 | 0 | 24.6 |
Charged To Other Accounts | 16.9 | 3.8 | 7.4 |
Deductions | (20.5) | (14.1) | (17.3) |
Ending Balance | 106.6 | 95.9 | 106.2 |
Tax Valuation Allowance: | |||
Movement in Valuation Allowances and Reserves | |||
Beginning Balance | 1,067.2 | 1,001.9 | 1,006.4 |
Charged To Costs And Expenses | 21.2 | 190.7 | 296.9 |
Charged To Other Accounts | (5.9) | 61.1 | (18.2) |
Deductions | (50) | (186.5) | (283.2) |
Ending Balance | $ 1,032.5 | $ 1,067.2 | $ 1,001.9 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) shares in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) age shares | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Dec. 31, 2021 | Dec. 01, 2021 | Nov. 30, 2020 country | Jan. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||||||
Number of countries | country | 5 | ||||||
Minimum service year to be eligible to stock-based compensation benefits | 10 years | ||||||
Increase in weighted-average shares outstanding (in shares) | shares | 3.6 | ||||||
Oil And Gas Business | |||||||
Significant Accounting Policies [Line Items] | |||||||
Goodwill, transfers | $ 39 | ||||||
MTD | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percent of ownership interest acquired | 20% | ||||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period of stock-based compensation grants | 3 years | ||||||
Stock-based compensation, minimum retirement age for eligibility | age | 55 | ||||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period of stock-based compensation grants | 4 years | ||||||
Net Sales | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cooperative advertising expense | $ 358.1 | $ 374.1 | $ 351 | ||||
Selling, General and Administrative Expenses | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cooperative advertising expense | 31.8 | 19.5 | 15.8 | ||||
Selling, General and Administrative Expense | |||||||
Significant Accounting Policies [Line Items] | |||||||
Advertising costs | 118.9 | 98.6 | 76.6 | ||||
Production and distribution costs | $ 498.7 | $ 416.1 | $ 346.9 | ||||
MTD | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of voting interests acquired | 80% | 80% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Property Plant And Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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] | |
Property, plant and equipment, useful life | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
ACCOUNTS AND NOTES RECEIVABLE_3
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,142 | $ 1,398.2 |
Trade notes receivable | 100.1 | 75.3 |
Other accounts receivable | 95.5 | 104.1 |
Accounts and notes receivable | 1,337.6 | 1,577.6 |
Allowance for credit losses | (106.6) | (95.9) |
Accounts and notes receivable, net | $ 1,231 | $ 1,481.7 |
ACCOUNTS AND NOTES RECEIVABLE_4
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance beginning of period | $ 95.9 | $ 106.2 | |
Charged to costs and expenses | 14.3 | 0 | $ 24.6 |
Other, including recoveries and deductions | (3.6) | (10.3) | |
Balance end of period | $ 106.6 | $ 95.9 | $ 106.2 |
ACCOUNTS AND NOTES RECEIVABLE_5
ACCOUNTS AND NOTES RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Receivables [Abstract] | ||
Operating lease receivable | $ 0.7 | $ 21.2 |
Operating lease, lease income, statement of income or comprehensive income | Net Sales | Net Sales |
Operating lease revenue | $ 39.8 | $ 62 |
Maximum cash investment in receivables | 110 | |
Net receivables derecognized | 110 | 100 |
Proceeds from transfers of receivables | 496.4 | 447.7 |
Payments to purchaser | 486.4 | 434.5 |
Pretax loss on sale | 4.1 | 2 |
Payment to the purchaser, servicing fees | 0.9 | 0.9 |
Deferred revenue | 122.9 | 117.1 |
Deferred revenue, current | 29.6 | 35 |
Deferred revenue recognized | $ 22.9 | $ 24 |
INVENTORIES, NET - Schedule (De
INVENTORIES, NET - Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 3,460.8 | $ 3,486.2 |
Work in process | 338.7 | 394.8 |
Raw materials | 2,061.6 | 1,538.9 |
Total | $ 5,861.1 | $ 5,419.9 |
INVENTORIES, NET - Additional I
INVENTORIES, NET - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Net inventory amount valued at lower of LIFO cost or market | $ 3,400 | $ 2,600 |
Increase in inventories if LIFO method had not been used | $ 486.9 | $ 215.6 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 5,077.9 | $ 4,974.7 |
Less: accumulated depreciation and amortization | (2,724.8) | (2,637.9) |
Property, Plant and Equipment, net | 2,353.1 | 2,336.8 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | 137.7 | 143.1 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | 59.7 | 60.8 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | 793 | 738.5 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | 191.7 | 167.2 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | 3,394.4 | 3,394.5 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment, gross | $ 501.4 | $ 470.6 |
PROPETY, PLANT AND EQUIPMENT -
PROPETY, PLANT AND EQUIPMENT - Depreciation and Amortization Expense Associated with Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 330.4 | $ 326.3 | $ 332.6 |
Amortization | 39.3 | 47.7 | 43.9 |
Depreciation and amortization expense | 369.7 | 374 | 376.5 |
Depreciation and amortization, discontinued operations | $ 0.4 | $ 23.7 | $ 23.1 |
ACQUISITIONS AND INVESTMENTS _2
ACQUISITIONS AND INVESTMENTS - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 01, 2021 USD ($) | Nov. 12, 2021 USD ($) | Jan. 02, 2021 USD ($) | Feb. 24, 2020 USD ($) | Dec. 31, 2020 USD ($) | Jan. 31, 2019 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) business | Jan. 02, 2021 USD ($) | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||||||
Gain on equity method investment | $ 0 | $ 68,000,000 | $ 0 | ||||||||
Goodwill acquired | $ 7,893,100,000 | $ 8,590,700,000 | 8,502,700,000 | 8,590,700,000 | 7,893,100,000 | ||||||
Business acquisition, net of cash acquired | $ 71,900,000 | 2,043,800,000 | $ 1,324,400,000 | ||||||||
MTD | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent of ownership interest acquired | 20% | ||||||||||
Payment to acquire equity method investment | $ 234,000,000 | ||||||||||
MTD | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of voting interests acquired | 80% | 80% | |||||||||
Estimated purchase price | $ 1,500,000,000 | ||||||||||
Equity method, fair value, remeasurement | $ 295,100,000 | ||||||||||
Gain on equity method investment | 68,000,000 | ||||||||||
Weighted average useful life assigned | 15 years | ||||||||||
Expected tax deductible amount of acquired goodwill | $ 600,000 | ||||||||||
Total consideration | 1,936,700,000 | ||||||||||
Deferred taxes | 214,300,000 | ||||||||||
Identifiable net assets acquired | 1,449,800,000 | ||||||||||
Goodwill acquired | $ 486,900,000 | ||||||||||
Excel Industries | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life assigned | 14 years | ||||||||||
Expected tax deductible amount of acquired goodwill | $ 0 | ||||||||||
Total consideration | 373,700,000 | ||||||||||
Working capital acquired | 31,400,000 | ||||||||||
Deferred taxes | 43,600,000 | ||||||||||
Finite-lived intangible assets acquired | 203,500,000 | ||||||||||
Identifiable net assets acquired | 195,500,000 | ||||||||||
Goodwill acquired | 178,200,000 | ||||||||||
Excel Industries | Customer relationships | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible assets acquired | $ 158,000,000 | ||||||||||
2021 Aquisitions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated purchase price | 202,700,000 | ||||||||||
Expected tax deductible amount of acquired goodwill | 47,900,000 | 47,900,000 | |||||||||
Working capital acquired | 30,600,000 | 30,600,000 | |||||||||
Identifiable net assets acquired | 43,900,000 | 43,900,000 | |||||||||
Goodwill acquired | $ 158,800,000 | $ 158,800,000 | |||||||||
Number of businesses acquired during the period | business | 2 | ||||||||||
Consolidated Aerospace Manufacturing (CAM) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated purchase price | $ 1,460,000,000 | ||||||||||
Weighted average useful life assigned | 20 years | ||||||||||
Expected tax deductible amount of acquired goodwill | $ 569,800,000 | ||||||||||
Total consideration | 1,336,500,000 | ||||||||||
Deferred taxes | 16,300,000 | ||||||||||
Identifiable net assets acquired | 859,500,000 | ||||||||||
Goodwill acquired | 632,300,000 | ||||||||||
Business acquisition, net of cash acquired | 1,300,000,000 | ||||||||||
Possible future contingent consideration payable (up to) | 200,000,000 | ||||||||||
Fair value of contingent consideration as of acquisition date | $ 155,300,000 | ||||||||||
Consideration paid | $ 100,000,000 | ||||||||||
Remaining fair value of contingent consideration | $ 55,300,000 |
ACQUISITIONS AND INVESTMENTS _3
ACQUISITIONS AND INVESTMENTS - Estimated Fair Values of Major Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 01, 2021 | Feb. 24, 2020 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,502.7 | $ 8,590.7 | $ 7,893.1 | ||
MTD | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 111.5 | ||||
Accounts receivable, net | 270.5 | ||||
Inventories, net | 855.7 | ||||
Prepaid expenses and other assets | 56.9 | ||||
Property, plant and equipment | 256.9 | ||||
Other assets | 38.5 | ||||
Accounts payable | (394.6) | ||||
Accrued expenses | (201.1) | ||||
Deferred revenue | (0.9) | ||||
Long-term debt | (110.9) | $ (110.9) | |||
Deferred taxes | (214.3) | ||||
Other liabilities | (68.4) | ||||
Total identifiable net assets | 1,449.8 | ||||
Goodwill | 486.9 | ||||
Total consideration | 1,936.7 | ||||
MTD | Trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 390 | ||||
MTD | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 460 | ||||
Consolidated Aerospace Manufacturing (CAM) | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 35.8 | ||||
Accounts receivable, net | 48.3 | ||||
Inventories, net | 124.3 | ||||
Prepaid expenses and other assets | 2.6 | ||||
Property, plant and equipment | 127.9 | ||||
Accounts payable | (25.9) | ||||
Accrued expenses | (26.9) | ||||
Deferred taxes | (16.3) | ||||
Other liabilities | (0.3) | ||||
Total identifiable net assets | 859.5 | ||||
Goodwill | 632.3 | ||||
Contingent consideration | (155.3) | ||||
Total consideration | 1,336.5 | ||||
Consolidated Aerospace Manufacturing (CAM) | Trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 25 | ||||
Consolidated Aerospace Manufacturing (CAM) | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 565 |
ACQUISITIONS AND INVESTMENTS _4
ACQUISITIONS AND INVESTMENTS - Supplemental Pro-Forma (Details) - 2021 Acquisitions - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Business Acquisition [Line Items] | ||
Net sales | $ 16,947.4 | $ 17,890.8 |
Net earnings from continuing operations attributable to common shareowners - Diluted | $ 318.3 | $ 1,666 |
Diluted earnings per share of common stock - continuing operations (in dollars per share) | $ 2.03 | $ 10.10 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 8,590.7 | $ 7,893.1 |
Acquisitions | 90.5 | 776.8 |
Foreign currency translation and other | (178.5) | (79.2) |
Goodwill, ending balance | 8,502.7 | 8,590.7 |
Tools & Outdoor | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 5,973.7 | 5,246.6 |
Acquisitions | 90.5 | 777.3 |
Foreign currency translation and other | (124.5) | (50.2) |
Goodwill, ending balance | 5,939.7 | 5,973.7 |
Industrial | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,617 | 2,646.5 |
Acquisitions | 0 | (0.5) |
Foreign currency translation and other | (54) | (29) |
Goodwill, ending balance | $ 2,563 | $ 2,617 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) reportingUnit | Oct. 01, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Goodwill [Line Items] | ||||
Held for sale, goodwill | $ 2,001.4 | $ 2,088 | $ 2,143.9 | |
Disposal group, intangible assets | 182.2 | |||
Total indefinite-lived trade names | $ 2,516 | $ 2,525 | ||
Future amortization expense in 2023 | 191.3 | |||
Future amortization expense in 2024 | 186.1 | |||
Future amortization expense in 2025 | 172.8 | |||
Future amortization expense in 2026 | 162.2 | |||
Future amortization expense in 2027 | 154.1 | |||
Future amortization expense thereafter | 1,092.3 | |||
Oil And Gas Business | ||||
Goodwill [Line Items] | ||||
Goodwill, transfers | $ 39 | |||
Valuation Technique, Discounted Cash Flow | ||||
Goodwill [Line Items] | ||||
Number of reporting units | reportingUnit | 3 | |||
Goodwill and intangible asset impairment, valuation assumptions, term | 6 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,284.3 | $ 3,478 |
Accumulated Amortization | (1,325.5) | (1,307.7) |
Patents and copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 25.8 | 27 |
Accumulated Amortization | (25.6) | (26.6) |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 247.7 | 275.9 |
Accumulated Amortization | (118) | (118.8) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,881.2 | 3,027.5 |
Accumulated Amortization | (1,059.9) | (1,027.5) |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 129.6 | 147.6 |
Accumulated Amortization | $ (122) | $ (134.8) |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Aggregate Intangible Assets Amortization Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 202.5 | $ 203.1 | $ 201.6 |
Discontinued Operations | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 0 | 39.1 | 43.5 |
Tools & Outdoor | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 108.1 | 64.1 | 61.5 |
Industrial | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 94.4 | $ 99.9 | $ 96.6 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Payables and Accruals [Abstract] | ||
Payroll and related taxes | $ 192 | $ 346.4 |
Income and other taxes | 260.7 | 306 |
Customer rebates and sales returns | 376.6 | 408.5 |
Insurance and benefits | 95.3 | 83 |
Restructuring costs | 62.3 | 31.7 |
Derivative financial instruments | 16.1 | 8.7 |
Warranty costs | 99.8 | 103.6 |
Deferred revenue | 29.6 | 35 |
Freight costs | 220.3 | 221.9 |
Environmental costs | 39.4 | 46.1 |
Current lease liability | 114.1 | 115.5 |
Forward stock purchase contract | 0 | 330.4 |
Accrued interest | 49 | 80.7 |
Other | 565.5 | 523.5 |
Total | $ 2,120.7 | $ 2,641 |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING ARRANGEMENTS - Schedule (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | |||
Notional Value | $ 5,404,700,000 | ||
Unamortized Discount | (6,300,000) | ||
Unamortized gain (loss) terminated swaps | (20,100,000) | ||
Purchase Accounting FV Adjustment | 12,300,000 | ||
Deferred Financing Fees | (36,500,000) | ||
Carrying Value | 5,354,100,000 | $ 4,354,900,000 | |
Less: Current maturities of long-term debt | (1,200,000) | (1,300,000) | |
Long-term debt | $ 5,352,900,000 | 4,353,600,000 | |
Notes payable due 2025 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.30% | 2.30% | |
Notional Value | $ 500,000,000 | $ 500,000,000 | |
Unamortized Discount | (500,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (1,800,000) | ||
Carrying Value | $ 497,700,000 | 0 | |
Notes payable due 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.40% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (300,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (1,400,000) | ||
Carrying Value | $ 498,300,000 | 497,800,000 | |
Notes payable due 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.42% | ||
Notional Value | $ 25,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 1,400,000 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 26,400,000 | 24,900,000 | |
Notes payable due 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.84% | ||
Notional Value | $ 26,700,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 1,300,000 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 28,000,000 | 28,400,000 | |
Notes payable due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7.05% | ||
Notional Value | $ 150,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 6,000,000 | ||
Purchase Accounting FV Adjustment | 5,800,000 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 161,800,000 | 163,900,000 | |
Notes payable due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (200,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,600,000) | ||
Carrying Value | $ 497,200,000 | 496,800,000 | |
Notes payable due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.52% | ||
Notional Value | $ 50,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 3,800,000 | ||
Deferred Financing Fees | (100,000) | ||
Carrying Value | $ 53,700,000 | 49,900,000 | |
Notes payable due 2030 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.30% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | (1,800,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (3,700,000) | ||
Carrying Value | $ 744,500,000 | 743,700,000 | |
Notes payable due 2032 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3% | 3% | |
Notional Value | $ 500,000,000 | $ 500,000,000 | |
Unamortized Discount | (900,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (3,200,000) | ||
Carrying Value | $ 495,900,000 | 0 | |
Notes payable due 2040 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.20% | ||
Notional Value | $ 400,000,000 | ||
Unamortized Discount | (200,000) | ||
Unamortized gain (loss) terminated swaps | (26,100,000) | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,400,000) | ||
Carrying Value | $ 371,300,000 | 369,700,000 | |
Notes payable due 2048 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.85% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (500,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (4,700,000) | ||
Carrying Value | $ 494,800,000 | 494,600,000 | |
Notes payable due 2050 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.75% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | (1,900,000) | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (7,800,000) | ||
Carrying Value | $ 740,300,000 | 740,000,000 | |
Notes payable due 2060 (junior subordinated) | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (8,800,000) | ||
Carrying Value | 741,200,000 | 740,900,000 | |
Other, payable in varying amounts 2024 through 2027 | |||
Debt Instrument [Line Items] | |||
Notional Value | 3,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized gain (loss) terminated swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 3,000,000 | $ 4,300,000 | |
Other, payable in varying amounts 2024 through 2027 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.10% | ||
Other, payable in varying amounts 2024 through 2027 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.31% |
LONG-TERM DEBT AND FINANCING _4
LONG-TERM DEBT AND FINANCING ARRANGEMENTS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2023 | Feb. 28, 2023 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Sep. 30, 2022 USD ($) | Aug. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 01, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Long-term debt, maturity, year one | $ 1,200,000 | ||||||||||
Long-term debt, maturity, year two | 1,100,000 | ||||||||||
Long-term debt, maturity, year three | 500,500,000 | ||||||||||
Long-term debt, maturity, year four | 551,900,000 | ||||||||||
Long-term debt, maturity, after year five | 4,350,000,000 | ||||||||||
Fair value adjustment and unamortized gain (loss) termination of swap | (26,400,000) | ||||||||||
Debt issuance costs | 36,500,000 | ||||||||||
Debt instrument, face amount | 5,404,700,000 | ||||||||||
Proceeds from debt, net of issuance costs | 992,600,000 | ||||||||||
Debt issuance costs | $ 7,400,000 | ||||||||||
Loss on debt extinguishment | 0 | $ 0 | $ 46,900,000 | ||||||||
Maximum borrowing capacity | 3,500,000,000 | ||||||||||
Commercial paper amount outstanding | 2,100,000,000 | 2,200,000,000 | |||||||||
Line of credit facility, maximum borrowing capacity | 4,800,000,000 | ||||||||||
Short-term credit lines | 2,102,900,000 | 2,241,100,000 | |||||||||
Interest paid | 320,800,000 | 177,100,000 | $ 191,600,000 | ||||||||
Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Adjustment addback amount | $ 500,000,000 | ||||||||||
Debt instrument, lower minimum interest coverage ratio | 3.5 | 1.5 | |||||||||
Debt instrument, minimum interest coverage ratio | 3.5 | ||||||||||
MTD | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt acquired | 110,900,000 | $ 110,900,000 | |||||||||
Excel Industries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt acquired | $ 3,000,000 | ||||||||||
Commercial Paper | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 3,500,000,000 | ||||||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | 281,800,000 | ||||||||||
Line of credit facility, available borrowing capacity | 191,800,000 | ||||||||||
Short-term credit lines | $ 90,000,000 | ||||||||||
Line of Credit | United States of America, Dollars | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rates on short-term borrowings | 2.30% | 0.10% | |||||||||
Line of Credit | Euro Member Countries, Euro | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rates on short-term borrowings | 0.50% | ||||||||||
Notes payable due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | $ 0 | ||||||||||
Debt instrument, face amount | $ 150,000,000 | ||||||||||
Interest rate | 7.05% | ||||||||||
Notes payable due 2028 | Fixed To Floating Interest Rate Swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value adjustment and unamortized gain (loss) termination of swap | $ 12,300,000 | ||||||||||
Notes payable due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | 1,800,000 | ||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||||||||
Interest rate | 2.30% | 2.30% | |||||||||
Notes payable due 2032 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | $ 3,200,000 | ||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||||||||
Interest rate | 3% | 3% | |||||||||
5 Year Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, term | 5 years | 5 years | |||||||||
Line of credit facility, current borrowing capacity | $ 2,500,000,000 | ||||||||||
Line of credit drawn | 0 | $ 0 | |||||||||
5 Year Credit Facility | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, term | 5 years | ||||||||||
Committed Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount of credit facility foreign currency sublimit | $ 814,300,000 | ||||||||||
September 2021 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commercial paper amount outstanding | $ 0 | ||||||||||
Long-term debt, term | 364 days | 364 days | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||
September 2022 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||||||
Long-term debt, term | 364 days | 364 days | |||||||||
Line of credit drawn | $ 0 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||||||
September 2022 Credit Agreement | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, term | 364 days | ||||||||||
November 2021 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, term | 364 days | ||||||||||
Line of credit facility, current borrowing capacity | $ 1,000,000,000 | ||||||||||
September 2022 Club Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commercial paper amount outstanding | $ 0 | ||||||||||
Long-term debt, term | 364 days | 364 days | |||||||||
Line of credit drawn | $ 0 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | ||||||||||
September 2022 Club Credit Agreement | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, term | 364 days | ||||||||||
January 2022 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commercial paper amount outstanding | $ 0 | ||||||||||
Long-term debt, term | 364 days | ||||||||||
Line of credit facility, fair value of amount outstanding | $ 2,500,000,000 | ||||||||||
Notes Payable Due 2021 And 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Early repayment of senior debt | $ 1,200,000,000 | ||||||||||
Loss on debt extinguishment | 46,900,000 | ||||||||||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | 48,700,000 | ||||||||||
Write off of deferred debt issuance cost | 1,700,000 | ||||||||||
Gain (loss) on fair value hedges recognized in earnings | $ 3,500,000 | ||||||||||
Notes payable due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.40% | ||||||||||
Notes Payable due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.90% | ||||||||||
Loss on debt extinguishment | $ 19,600,000 | ||||||||||
Notes Payable due 2022 | Fixed To Floating Interest Rate Swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on fair value hedges recognized in earnings | $ (19,600,000) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 12.2 | $ 33.1 |
Derivative liabilities | 16.1 | 8.7 |
Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12.2 | 33.1 |
Derivative liabilities | 16.1 | 8.7 |
Designated as Hedging Instruments | Cash Flow Hedging | Interest Rate Contracts Cash Flow | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 1.2 |
Designated as Hedging Instruments | Cash Flow Hedging | Interest Rate Contracts Cash Flow | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 1.9 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4.5 | 18.3 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4.2 | 0.8 |
Designated as Hedging Instruments | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4.5 | 25.3 |
Derivative liabilities | 4.2 | 2.7 |
Designated as Hedging Instruments | Net Investment Hedging | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 2.5 |
Designated as Hedging Instruments | Net Investment Hedging | LT other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 3.3 |
Designated as Hedging Instruments | Net Investment Hedging | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Designated as Hedging Instruments | Net Investment Hedging | LT other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7.7 | 7.8 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 11.9 | $ 6 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash (received) paid related to derivatives | $ (86,200,000) | $ 166,800,000 | $ (33,400,000) | |
After-tax gains (losses), other comprehensive income, cash flow hedge | 26,400,000 | (17,000,000) | (15,400,000) | |
Loss on debt extinguishment | 0 | 0 | 46,900,000 | |
Gain on derivative instruments, pretax | 4,000,000 | |||
Net cash received from foreign exchange contracts | (10,600,000) | 55,100,000 | (41,000,000) | |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cumulative changes in AOCI from hedging activities, net of tax | 73,800,000 | 71,800,000 | ||
Not Designated as Hedging Instrument | Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | 1,100,000,000 | 1,200,000,000 | ||
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive (loss) income, cash flow hedge, (loss) gain, before reclassification, after tax | (44,500,000) | (49,800,000) | ||
Cash flow hedge loss to be reclassified within twelve months | 2,900,000 | |||
Cash Flow Hedging | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive (loss) income, cash flow hedge, (loss) gain, before reclassification, after tax | 22,700,000 | (75,300,000) | (20,500,000) | |
Notional amount | 400,000,000 | 1,000,000,000 | ||
Cash Flow Hedging | Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | 0 | 400,000,000 | ||
Cash Flow Hedging | Foreign Exchange Forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | 281,700,000 | 512,100,000 | ||
Fair Value Hedges | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive (loss) income, cash flow hedge, (loss) gain, before reclassification, after tax | $ 3,500,000 | |||
Net Investment Hedging | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net cash received from foreign exchange contracts | $ 10,600,000 | 55,100,000 | $ 41,000,000 | |
Net Investment Hedging | Cross Currency Swap | Japan, Yen | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | 100,000,000 | |||
Net Investment Hedging | Cross Currency Swap | Foreign Currency | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | $ 75,000,000 | |||
Notes Payable due 2022 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on debt extinguishment | $ 19,600,000 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives Designated as Cash Flow Hedges in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Foreign Exchange Contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from OCI to Income | $ 0 | $ 0 | $ 0 |
Foreign Exchange Contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from OCI to Income | 53.3 | (26.1) | 12.4 |
Cash Flow Hedging | Interest Rate Contracts Cash Flow | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recorded in OCI | 23.4 | 14.9 | (70.9) |
Gain (Loss) Reclassified from OCI to Income | (5.8) | (3.9) | (16.3) |
Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | 0 | 0 | 0 |
Cash Flow Hedging | Foreign Exchange Contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recorded in OCI | 30.6 | 24.1 | (16.1) |
Gain (Loss) Reclassified from OCI to Income | 53.3 | (26.1) | 12.4 |
Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | $ 0 | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Pretax
FINANCIAL INSTRUMENTS - Pretax Effect of Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative [Line Items] | |||
Cost of sales | $ 12,663.3 | $ 10,189.1 | $ 8,431.9 |
Interest Expense | 338.5 | 185.4 | 222.7 |
Foreign Exchange Contracts | Cost of sales | |||
Derivative [Line Items] | |||
Hedged Items | (53.3) | 26.1 | (12.4) |
Gain (loss) reclassified from OCI into Income | 53.3 | (26.1) | 12.4 |
Foreign Exchange Contracts | Discount rate - interest cost | |||
Derivative [Line Items] | |||
Hedged Items | 0 | 0 | 0 |
Gain (loss) reclassified from OCI into Income | 0 | 0 | 0 |
Interest Rate Swap | Cost of sales | |||
Derivative [Line Items] | |||
Gain (loss) reclassified from OCI into Income | 0 | 0 | 0 |
Interest Rate Swap | Discount rate - interest cost | |||
Derivative [Line Items] | |||
Gain (loss) reclassified from OCI into Income | $ (5.8) | $ (3.9) | $ (16.3) |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Adjustments Relating to Swaps (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded | $ 338.5 | $ 185.4 | $ 222.7 |
Current maturities of long-term debt | 1.2 | 1.3 | |
Long-Term Debt | 533.1 | 533.6 | |
Unamortized gain (loss) terminated swaps | (20.1) | ||
Fair Value Hedges | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Amortization of gain on terminated swaps | (0.4) | (0.4) | $ (3) |
Fair Value Hedges | Other Current Liabilities | Designated as Hedging Instruments | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Unamortized gain (loss) terminated swaps | 0 | 0 | |
Fair Value Hedges | Long-term Debt | Designated as Hedging Instruments | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Unamortized gain (loss) terminated swaps | $ (20.1) | $ (20.4) |
FINANCIAL INSTRUMENTS - Details
FINANCIAL INSTRUMENTS - Details of Foreign Exchange Contracts Pre-Tax Amounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Non-derivative designated as net investment hedge, total gain (loss) recorded in OCI | $ (0.1) | $ (6.7) | $ (8.5) |
Non-derivative designated as net investment hedge, excluded component recorded in OCI | 0 | 0 | 0 |
Non derivative instruments, gain (loss) amortized from accumulated other comprehensive income into income, net | 0 | 0 | 0 |
Other Expense | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Non-derivative designated as net investment hedge, excluded component amortized from OCI to income | 0 | 0 | 0 |
Forward Contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Total Gain (Loss) Recorded in OCI | 6.1 | (1.2) | 0.8 |
Excluded Component Recorded in OCI | 0.6 | 1.6 | 0 |
Other comprehensive income (loss), derivative, excluded component, increase (decrease), adjustments, before tax | 0.7 | 1.5 | 0 |
Forward Contracts | Other Expense | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Total Gain (Loss) Reclassified from OCI to Income | 0.7 | 1.5 | 0 |
Cross Currency Swap | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Total Gain (Loss) Recorded in OCI | (1.2) | 11.7 | (5.4) |
Excluded Component Recorded in OCI | 2.5 | 24.6 | 60.7 |
Other comprehensive income (loss), derivative, excluded component, increase (decrease), adjustments, before tax | 1.5 | 3.7 | 18.2 |
Cross Currency Swap | Other Expense | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Total Gain (Loss) Reclassified from OCI to Income | $ 1.5 | $ 3.7 | $ 18.2 |
FINANCIAL INSTRUMENTS - Income
FINANCIAL INSTRUMENTS - Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Foreign Exchange Contracts | Other, net | |||
Derivative [Line Items] | |||
Amount of gain (loss) recorded in Income on derivative, year to date | $ 5 | $ (10.8) | $ (15.7) |
CAPITAL STOCK - Earnings Per Sh
CAPITAL STOCK - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Numerator | |||||||||||
Net Earnings (Loss) from Continuing Operations Attributable to Common Shareowners - Diluted | $ (106.4) | $ 36.6 | $ 78.6 | $ 155.5 | $ 279.2 | $ 379.6 | $ 428.7 | $ 450.8 | $ 164.3 | $ 1,538.3 | $ 1,129.8 |
Add: Contract adjustment payments accretion | 0.2 | 0.3 | 0.4 | 0.3 | 0.4 | 0.4 | 0.3 | 0.2 | 1.2 | 1.3 | 1.7 |
Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted | (106.2) | 36.9 | 79 | 155.8 | 279.6 | 380 | 429 | 451 | 165.5 | 1,539.6 | 1,131.5 |
Net earnings from discontinued operations | 55.6 | 808 | 9 | 19.8 | 48.9 | 34.6 | 26 | 27.2 | 892.4 | 136.7 | 79.9 |
Net Earnings Attributable to Common Shareowners - Diluted | $ (50.6) | $ 844.9 | $ 88 | $ 175.6 | $ 328.5 | $ 414.6 | $ 455 | $ 478.2 | $ 1,057.9 | $ 1,676.3 | $ 1,211.4 |
Denominator | |||||||||||
Basic weighted-average shares outstanding (in shares) | 148,170 | 158,760 | 154,176 | ||||||||
Dilutive effect of stock contracts and awards (in shares) | 8,383 | 6,264 | 8,251 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 156,553 | 165,024 | 162,427 | ||||||||
Basic earnings per share of common stock: | |||||||||||
Continuing operation (in dollars per share) | $ (0.72) | $ 0.25 | $ 0.54 | $ 1 | $ 1.75 | $ 2.38 | $ 2.70 | $ 2.86 | $ 1.11 | $ 9.69 | $ 7.33 |
Discontinued operations (in dollars per share) | 0.38 | 5.60 | 0.06 | 0.13 | 0.31 | 0.22 | 0.16 | 0.17 | 6.02 | 0.86 | 0.52 |
Total basic earnings per share of common stock (in dollars per share) | (0.35) | 5.85 | 0.60 | 1.13 | 2.06 | 2.60 | 2.87 | 3.04 | 7.13 | 10.55 | 7.85 |
Diluted earnings per share of common stock: | |||||||||||
Continuing operations (in dollars per share) | (0.72) | 0.24 | 0.51 | 0.94 | 1.69 | 2.30 | 2.60 | 2.74 | 1.06 | 9.33 | 6.97 |
Discontinued operations (in dollars per share) | 0.37 | 5.26 | 0.06 | 0.12 | 0.30 | 0.21 | 0.16 | 0.17 | 5.70 | 0.83 | 0.49 |
Total diluted earnings per share of common stock (in dollars per share) | $ (0.34) | $ 5.50 | $ 0.57 | $ 1.06 | $ 1.99 | $ 2.51 | $ 2.75 | $ 2.91 | $ 6.76 | $ 10.16 | $ 7.46 |
CAPITAL STOCK - Weighted-Averag
CAPITAL STOCK - Weighted-Average Diluted Shares Outstanding (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of stock options (in shares) | 4,019 | 1,039 | 2,376 |
CAPITAL STOCK - Earning Per Sha
CAPITAL STOCK - Earning Per Share, Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 03, 2021 | Apr. 28, 2021 | May 15, 2020 | Nov. 30, 2022 | Jun. 30, 2021 | May 31, 2020 | Nov. 30, 2019 | May 31, 2017 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity units issued (in shares) | 7,500,000 | ||||||||||
Shares issued, price per share (in dollars per share) | $ 131.32 | ||||||||||
Common stock, forward purchase contract | 3 years | 3 years | 3 years | ||||||||
Preferred stock, dividend rate | 5% | ||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Conversion of stock (in shares) | 4,723,500 | 5,463,750 | |||||||||
Preferred stock, shares issued (in shares) | 750,000 | 750,000 | |||||||||
Preferred stock, dividend rate (in dollars per share) | $ 50 | ||||||||||
Payments for repurchase of preferred stock and preference stock | $ 750 | $ 750 | $ 0 | ||||||||
Redemption and conversion of preferred stock (in shares) | 1,469,055 | 1,469,055 | |||||||||
Preferred stock conversion rate number of common stock shares (in shares) | 6.1627 | 5.2263 | |||||||||
Preferred stock, redemption price before redemption date (in dollars per share) | $ 148.04 | ||||||||||
Equity Units And Capped Call Transactions Commenced In 2019 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares issued, price per share (in dollars per share) | $ 100 | $ 100 | |||||||||
Beneficial ownership in one share of preferred stock | 10% | 10% | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||
Forward contract indexed to issuer's equity, forward rate (in dollars per share) | $ 100 | ||||||||||
Equity Units And Capped Call Transactions Commenced in 2017 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 750,000 | ||||||||||
Series D Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity units issued (in shares) | 7,500,000 | ||||||||||
Equity unit | $ 750 | ||||||||||
Preferred stock, dividend rate | 7.50% | ||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | ||||||||||
Proceeds from issuance of convertible preferred stock | $ 750 | ||||||||||
Conversion of stock (in shares) | 4,723,500 | ||||||||||
Preferred stock, shares issued (in shares) | 750,000 | 750,000 | |||||||||
Preferred stock, dividend rate (in dollars per share) | $ 75 | ||||||||||
Preferred stock, redemption price (in dollars per share) | $ 1,007.71 | ||||||||||
Preferred stock, redemption price, percentage of liquidation preference | 100% | ||||||||||
Payments for repurchase of preferred stock and preference stock | $ 750 | ||||||||||
Series D Preferred Stock | Equity Units And Capped Call Transactions Commenced In 2019 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Preferred stock, dividend rate | 0% | ||||||||||
Series D Preferred Stock | Equity Units And Capped Call Transactions Commenced in 2017 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Conversion of stock (in shares) | 4,723,500 | ||||||||||
Series C Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity unit | $ 750 | ||||||||||
Preferred stock, dividend rate | 5% | ||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||
Proceeds from issuance of convertible preferred stock | $ 750 | ||||||||||
Conversion of stock (in shares) | 5,463,750 | ||||||||||
Preferred stock, shares issued (in shares) | 750,000 | ||||||||||
Preferred stock, dividend rate (in dollars per share) | $ 50 | ||||||||||
Preferred stock, redemption price (in dollars per share) | $ 1,002.5 | ||||||||||
Preferred stock, redemption price, percentage of liquidation preference | 100% | ||||||||||
Payments for repurchase of preferred stock and preference stock | $ 750 | ||||||||||
Redemption and conversion of preferred stock (in shares) | 1,469,055 | ||||||||||
Preferred stock conversion rate number of common stock shares (in shares) | 6.7548 | ||||||||||
Series C Preferred Stock | Equity Units And Capped Call Transactions Commenced In 2019 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Preferred stock, dividend rate | 0% | ||||||||||
Series C Preferred Stock | Equity Units And Capped Call Transactions Commenced in 2017 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | ||||||||||
Preferred stock conversion rate (in shares) | 6.7352 | ||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 148.47 |
CAPITAL STOCK - Common Stock Ac
CAPITAL STOCK - Common Stock Activity (Details) - shares | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Mar. 31, 2015 | |
Common Stock, Shares, Activity [Roll Forward] | ||||
Outstanding, beginning of year (in shares) | 163,328,776 | 160,752,262 | 153,506,409 | |
Issued from treasury (in shares) | 5,711,974 | 3,105,587 | 7,474,394 | |
Returned to treasury (in shares) | (16,057,220) | (529,073) | (228,541) | |
Outstanding, end of year (in shares) | 152,983,530 | 163,328,776 | 160,752,262 | |
Shares subject to the forward share purchase contract (in shares) | (3,645,510) | (3,645,510) | (3,645,510) | (3,645,510) |
Outstanding, less shares subject to the forward share purchase contract (in shares) | 149,338,020 | 159,683,266 | 157,106,752 |
CAPITAL STOCK - Common Stock, A
CAPITAL STOCK - Common Stock, Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | May 31, 2020 | Mar. 31, 2015 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | May 31, 2022 | Feb. 28, 2022 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Forward share purchase contract, shares purchased (in shares) | 3,645,510 | 3,645,510 | 3,645,510 | 3,645,510 | |||||||
Shares issued, price per share (in dollars per share) | $ 131.32 | ||||||||||
Conversion of stock (in shares) | 4,723,500 | 5,463,750 | |||||||||
Preferred stock, shares issued (in shares) | 750,000 | 750,000 | |||||||||
Payments for repurchase of preferred stock and preference stock | $ 750 | $ 750 | $ 0 | ||||||||
Increase in weighted-average shares outstanding (in shares) | 3,600,000 | ||||||||||
Redemption and conversion of preferred stock (in shares) | 1,469,055 | 1,469,055 | |||||||||
Forward share purchase contract | $ 350 | ||||||||||
2020 Credit Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Long-term debt, term | 364 days | ||||||||||
Accelerated Share Repurchase | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 2,000 | ||||||||||
Stock repurchase program, percent of shares for initial delivery | 85% | ||||||||||
Forward share purchase contract, shares purchased (in shares) | 10,756,770 | 3,211,317 | |||||||||
Shares issued, price per share (in dollars per share) | $ 143.18 | ||||||||||
Open Market, Share Repurchase | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 300 | ||||||||||
Forward share purchase contract, shares purchased (in shares) | 1,888,601 | ||||||||||
Series C Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Conversion of stock (in shares) | 5,463,750 | ||||||||||
Preferred stock, shares issued (in shares) | 750,000 | ||||||||||
Payments for repurchase of preferred stock and preference stock | $ 750 | ||||||||||
Redemption and conversion of preferred stock (in shares) | 1,469,055 |
CAPITAL STOCK - Common Stock Sh
CAPITAL STOCK - Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans (Details) - shares | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved (in shares) | 9,655,464 | 6,648,660 |
Employee stock purchase plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved (in shares) | 1,251,699 | 1,388,655 |
Other stock-based compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Shares reserved (in shares) | 8,403,765 | 5,260,005 |
CAPITAL STOCK - Stock-based Com
CAPITAL STOCK - Stock-based Compensation Plans, Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) age goal $ / shares shares | Jan. 01, 2022 USD ($) $ / shares shares | Jan. 02, 2021 USD ($) $ / shares shares | Feb. 16, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 90.7 | $ 118.3 | $ 109.1 | |
Cash received from exercise of stock options | 25.5 | |||
Tax benefit from exercise of stock options | 1.2 | |||
Aggregate intrinsic value | $ 4.6 | 85.3 | 104.3 | |
Weighted average exercise price (in dollars per share) | $ / shares | $ 78.83 | |||
Shares granted, before forfeiture | $ 9.8 | 1.1 | 1.6 | |
Number of annual performance goals | goal | 2 | |||
Award performance period | 3 years | |||
Earnings per share and return on capital employed as percentage of share based payment | 75% | |||
Market based elements as a percentage of share based payment | 25% | |||
2022 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plan, shares authorized for subscription (in shares) | shares | 9,800,000 | |||
2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plan, shares authorized for subscription (in shares) | shares | 0 | |||
Non Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted, before forfeiture | $ 1.8 | 2 | 1.4 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 3 years | |||
Number of years of service to be eligible for employee retirement compensation | 10 years | |||
Stock-based compensation, minimum retirement age for eligibility | age | 55 | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 4 years | |||
Employee Stock Purchase Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plan, shares authorized for subscription (in shares) | shares | 1,600,000 | |||
Stock-based compensation expense | $ 3.3 | 4.4 | 3.9 | |
Aggregate intrinsic value | $ 2.3 | $ 3.9 | $ 3.3 | |
Employee stock purchase plan, discounted purchase price percentage | 85% | |||
Weighted average exercise price (in dollars per share) | $ / shares | $ 151.46 | |||
Employee stock purchase plan, shares issued (in shares) | shares | 136,956 | 92,307 | 119,038 | |
Employee stock purchase plan (USD per share) | $ / shares | $ 96.09 | $ 150.21 | $ 110.97 | |
Cash received related to ESPP purchases | $ 13.2 | |||
Expected life | 1 year | |||
Dividend yield | 1.70% | 1.60% | 1.70% | |
Average expected volatility | 25% | 55% | 28% | |
Risk-free interest rate | 0.20% | 0.10% | 1.60% | |
Fair value per option (in dollars per share) | $ / shares | $ 38.51 | $ 45.46 | $ 41.02 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options term | 10 years | |||
Exercise price ranges, lower (in dollars per share) | $ / shares | $ 77.83 | |||
Exercise price ranges, upper (in dollars per share) | $ / shares | $ 193.97 | |||
Stock-based compensation expense | $ 27.1 | $ 36.4 | $ 31.6 | |
Unrecognized pre-tax compensation expense | $ 40.5 | |||
Number of years of service to be eligible for employee retirement compensation | 2 years 3 months 18 days | |||
Stock-based compensation, tax benefit | $ 0.1 | $ 14.1 | $ 17.6 | |
Expected life | 4 years 2 months 12 days | 5 years 3 months 18 days | 5 years 3 months 18 days | |
Dividend yield | 3.70% | 1.60% | 1.60% | |
Average expected volatility | 38.60% | 34% | 35% | |
Risk-free interest rate | 3.20% | 1.30% | 0.40% | |
Fair value per option (in dollars per share) | $ / shares | $ 20 | $ 52.39 | $ 48.36 | |
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 3 years | |||
Forfeiture rate | 7% | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 4 years | |||
Forfeiture rate | 9% | |||
Restricted Share Units & Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 50.6 | $ 47.3 | $ 35.6 | |
Unrecognized pre-tax compensation expense | $ 94.1 | |||
Stock-based compensation, tax benefit | $ 6.2 | |||
Granted (in shares) | shares | 870,848 | 463,084 | 325,448 | |
Granted (in dollars per share) | $ / shares | $ 85.05 | $ 193.66 | $ 165.44 | |
Excess tax benefit | $ 3.6 | $ 2.5 | $ 2.3 | |
Unrecognized pre-tax compensation expense, weighted average recognition period | 1 year 10 months 24 days | |||
Total fair value of shares vested | $ 38.9 | 53.3 | 58.5 | |
Restricted Share Units & Awards | Non Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.2 | 1.4 | 1 | |
Restricted Share Units & Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 3 years | |||
Restricted Share Units & Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 4 years | |||
MICP PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 3 years | |||
Stock-based compensation expense | $ 9.1 | 15.7 | 18.5 | |
Stock-based compensation, tax benefit | 3.6 | 5.6 | ||
Long-Term Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.4 | 11.1 | 17.1 | |
Stock-based compensation, tax benefit | $ 1.3 | 0.8 | ||
Granted (in shares) | shares | 250,518 | |||
Granted (in dollars per share) | $ / shares | $ 157.05 | |||
Market based elements as a percentage of share based payment | 25% | |||
Excess tax benefits | $ 0.1 | $ 0.1 | $ 0.7 |
CAPITAL STOCK - Assumptions Use
CAPITAL STOCK - Assumptions Used for Black-Scholes Valuation of Options (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 38.60% | 34% | 35% |
Dividend yield | 3.70% | 1.60% | 1.60% |
Risk-free interest rate | 3.20% | 1.30% | 0.40% |
Expected life | 4 years 2 months 12 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Fair value per option (in dollars per share) | $ 20 | $ 52.39 | $ 48.36 |
Weighted-average vesting period | 1 year 8 months 12 days | 2 years 10 months 24 days | 2 years 9 months 18 days |
CAPITAL STOCK - Number of Stock
CAPITAL STOCK - Number of Stock Options and Weighted-average Exercise Prices (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Options | |
Outstanding, beginning of year (in shares) | shares | 5,573,672 |
Granted (in shares) | shares | 868,139 |
Exercised (in shares) | shares | (295,451) |
Forfeited (in shares) | shares | (864,647) |
Outstanding, end of year (in shares) | shares | 5,281,713 |
Exercisable, end of year (in shares) | shares | 3,591,149 |
Price | |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 151.46 |
Granted (in dollars per share) | $ / shares | 78.83 |
Exercised (in dollars per share) | $ / shares | 86.30 |
Forfeited (in dollars per share) | $ / shares | 169.79 |
Outstanding, end of year (in dollars per share) | $ / shares | 140.22 |
Exercisable, end of year (in dollars per share) | $ / shares | $ 145.59 |
CAPITAL STOCK - Outstanding and
CAPITAL STOCK - Outstanding and Exercisable Stock Option (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options, options (in shares) | 5,281,713 | 5,573,672 |
Outstanding stock options, weighted average remaining contractual life | 6 years 6 months 14 days | |
Outstanding stock options, weighted-average exercise price (in dollars per share) | $ 140.22 | |
Exercisable stock options, options (in shares) | 3,591,149 | |
Exercisable stock options, weighted-average remaining contractual life | 5 years 4 months 2 days | |
Exercisable stock options, weighted-average exercise price (in dollars per share) | $ 145.59 | |
$100.00 and below | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options, options (in shares) | 1,045,223 | |
Outstanding stock options, weighted average remaining contractual life | 8 years 3 months 14 days | |
Outstanding stock options, weighted-average exercise price (in dollars per share) | $ 80.46 | |
Exercisable stock options, options (in shares) | 207,890 | |
Exercisable stock options, weighted-average remaining contractual life | 1 year 8 months 8 days | |
Exercisable stock options, weighted-average exercise price (in dollars per share) | $ 91.05 | |
Exercise price ranges, upper (in dollars per share) | $ 100 | |
100.01 — 165.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options, options (in shares) | 2,257,043 | |
Outstanding stock options, weighted average remaining contractual life | 5 years 2 months 26 days | |
Outstanding stock options, weighted-average exercise price (in dollars per share) | $ 132.05 | |
Exercisable stock options, options (in shares) | 2,078,188 | |
Exercisable stock options, weighted-average remaining contractual life | 5 years 18 days | |
Exercisable stock options, weighted-average exercise price (in dollars per share) | $ 131.04 | |
Exercise price ranges, upper (in dollars per share) | 165 | |
Exercise price ranges, lower (in dollars per share) | $ 100.01 | |
165.01 — higher | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options, options (in shares) | 1,979,447 | |
Outstanding stock options, weighted average remaining contractual life | 7 years 1 month 6 days | |
Outstanding stock options, weighted-average exercise price (in dollars per share) | $ 181.09 | |
Exercisable stock options, options (in shares) | 1,305,071 | |
Exercisable stock options, weighted-average remaining contractual life | 6 years 4 months 13 days | |
Exercisable stock options, weighted-average exercise price (in dollars per share) | $ 177.45 | |
Exercise price ranges, lower (in dollars per share) | $ 165.01 |
CAPITAL STOCK - Summary of Non-
CAPITAL STOCK - Summary of Non-vested Restricted Stock Unit Activity (Details) - Restricted Share Units & Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
MICP PSUs | |||
Non-vested, beginning balance (in shares) | 978,351 | ||
Granted (in shares) | 870,848 | 463,084 | 325,448 |
Vested (in shares) | (308,783) | ||
Forfeited (in shares) | (273,954) | ||
Non-vested, ending balance (in shares) | 1,266,462 | 978,351 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested, beginning balance (in dollars per share) | $ 173.06 | ||
Granted (in dollars per share) | 85.05 | $ 193.66 | $ 165.44 |
Vested (in dollars per share) | 163.11 | ||
Forfeited (in dollars per share) | 171.08 | ||
Non-vested, ending balance (in dollars per share) | $ 115.02 | $ 173.06 |
CAPITAL STOCK - Summary of Long
CAPITAL STOCK - Summary of Long-Term Performance Awards Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Management Incentive Compensation Plan Performance Stock Units | |
MICP PSUs | |
Non-vested, beginning balance (in shares) | shares | 249,730 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (144,923) |
Forfeited (in shares) | shares | (37,109) |
Non-vested, ending balance (in shares) | shares | 67,698 |
Weighted-Average Grant Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 100.73 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 104.32 |
Forfeited (in dollars per share) | $ / shares | 99.75 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 93.58 |
Long-Term Performance Awards | |
MICP PSUs | |
Non-vested, beginning balance (in shares) | shares | 649,806 |
Granted (in shares) | shares | 250,518 |
Vested (in shares) | shares | (92,589) |
Forfeited (in shares) | shares | (273,149) |
Non-vested, ending balance (in shares) | shares | 534,586 |
Weighted-Average Grant Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 145.90 |
Granted (in dollars per share) | $ / shares | 157.05 |
Vested (in dollars per share) | $ / shares | 123.56 |
Forfeited (in dollars per share) | $ / shares | 139.67 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 158.18 |
CAPITAL STOCK - Other Equity Ar
CAPITAL STOCK - Other Equity Arrangements, Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
May 15, 2023 $ / shares | Jun. 03, 2021 shares | Jun. 09, 2020 $ / shares | May 15, 2020 $ / shares | Nov. 07, 2019 | Nov. 30, 2022 USD ($) $ / shares shares | May 31, 2020 USD ($) $ / shares shares | Feb. 29, 2020 $ / shares shares | Nov. 30, 2019 USD ($) $ / shares shares | Mar. 31, 2018 USD ($) $ / shares shares | May 31, 2017 USD ($) financial_institution $ / shares shares | Jul. 03, 2021 $ / shares shares | Dec. 31, 2022 USD ($) age $ / shares shares | May 23, 2023 $ / shares | Jan. 01, 2022 USD ($) shares | Apr. 28, 2021 $ / shares | |
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, shares issued (in shares) | shares | 750,000 | 750,000 | ||||||||||||||
Preferred stock, value, issued | $ | $ 0 | $ 620.3 | ||||||||||||||
Purchase of call options | $ | $ 19.2 | $ 25.1 | $ 19.2 | |||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||||
Conversion of stock (in shares) | shares | 4,723,500 | 5,463,750 | ||||||||||||||
Shares issued, price per share (in dollars per share) | $ 131.32 | |||||||||||||||
Proceeds from issuance or sale of equity | $ | $ 750 | |||||||||||||||
Derivative, forward interest rate | 5.375% | |||||||||||||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ | $ 117.1 | $ 114.2 | ||||||||||||||
Accretion expense | $ | $ 1.3 | |||||||||||||||
Option indexed to issuer's equity, number of financial institutions | age | 3 | |||||||||||||||
Option indexed to issuer's equity (in shares) | shares | 3,900,000 | |||||||||||||||
Option indexed to issuer's equity, term | 3 years | |||||||||||||||
Preferred stock conversion rate number of common stock shares (in shares) | shares | 6.1627 | 5.2263 | ||||||||||||||
Upper strike percentage against closing price | 30% | |||||||||||||||
Debt Instrument, convertible, beneficial conversion feature | $ | $ 5.4 | |||||||||||||||
Preferred stock, dividend rate | 5% | |||||||||||||||
Preferred stock, dividend rate (in dollars per share) | $ 50 | |||||||||||||||
Convertible preferred stock, shares issued upon conversion (in shares) | shares | 0.7285 | |||||||||||||||
Preferred stock, convertible, conversion price (in dollars per share) | $ 137.26 | |||||||||||||||
Common stock, forward purchase contract | 3 years | 3 years | 3 years | |||||||||||||
Forecast | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |||||||||||||||
Preferred stock, dividend rate | 10% | |||||||||||||||
Preferred stock, dividend rate (in dollars per share) | $ 100 | |||||||||||||||
Call Option | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Call option, average price (in dollars per share) | $ 4.90 | |||||||||||||||
Equity Units And Capped Call Transactions Commenced In 2019 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Equity unit proceeds | $ | $ 734.5 | |||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Shares issued, price per share (in dollars per share) | $ 100 | $ 100 | ||||||||||||||
Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Equity unit proceeds | $ | $ 727.5 | |||||||||||||||
Preferred stock, shares issued (in shares) | shares | 750,000 | |||||||||||||||
Call option, average price (in dollars per share) | $ 5.43 | |||||||||||||||
Option indexed to issuer's equity (in shares) | shares | 4,600,000 | |||||||||||||||
Adjustments to additional paid in capital, other | $ | $ 25.1 | |||||||||||||||
Equity Units And Capped Call Transactions Commenced in 2018 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity (in shares) | shares | 3,200,000 | |||||||||||||||
Option indexed to issuer's equity, term | 3 years | |||||||||||||||
Option indexed to issuer's equity, settlement alternatives, shares received (in shares) | shares | 344,004 | |||||||||||||||
Option indexed to issuer's equity, settlement alternatives, average reference price (in dollars per share) | $ 162.26 | |||||||||||||||
2019 Equity Units | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Derivative, forward interest rate | 5.25% | |||||||||||||||
Accretion expense | $ | $ 1.3 | |||||||||||||||
2019 Equity Units | Equity Units And Capped Call Transactions Commenced In 2019 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Forward contract indexed to issuers equity, contract | 3 years | |||||||||||||||
Minimum | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 191.34 | |||||||||||||||
Maximum | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 207.29 | |||||||||||||||
Series D Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, shares issued (in shares) | shares | 750,000 | 750,000 | ||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |||||||||||||||
Conversion of stock (in shares) | shares | 4,723,500 | |||||||||||||||
Preferred stock, dividend rate | 7.50% | |||||||||||||||
Preferred stock, dividend rate (in dollars per share) | $ 75 | |||||||||||||||
Series D Preferred Stock | Equity Units And Capped Call Transactions Commenced In 2019 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, dividend rate | 0% | |||||||||||||||
Series D Preferred Stock | Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Conversion of stock (in shares) | shares | 4,723,500 | |||||||||||||||
Option indexed to issuer's equity, term | 3 years | |||||||||||||||
Series D Preferred Stock | 2019 Equity Units | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, value, issued | $ | $ 620.3 | |||||||||||||||
Series D Preferred Stock | 2019 Equity Units | Equity Units And Capped Call Transactions Commenced In 2019 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, quarterly payments | $ | 114.2 | |||||||||||||||
Series C Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, shares issued (in shares) | shares | 750,000 | |||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Conversion of stock (in shares) | shares | 5,463,750 | |||||||||||||||
Preferred stock conversion rate number of common stock shares (in shares) | shares | 6.7548 | |||||||||||||||
Preferred stock, dividend rate | 5% | |||||||||||||||
Preferred stock, dividend rate (in dollars per share) | $ 50 | |||||||||||||||
Series C Preferred Stock | Equity Units And Capped Call Transactions Commenced In 2019 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, dividend rate | 0% | |||||||||||||||
Series C Preferred Stock | Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | 1,000 | |||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 148.47 | |||||||||||||||
Options indexed to issuer's equity, number of counterparties | financial_institution | 3 | |||||||||||||||
Option indexed to issuer's equity, strike price as a percentage of closing stock price | 30% | |||||||||||||||
Series C Preferred Stock | Equity Units And Capped Call Transactions Commenced in 2018 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price as a percentage of closing stock price | 30% | |||||||||||||||
Series C Preferred Stock | 2017 Equity Units | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, value, issued | $ | 605 | |||||||||||||||
Series C Preferred Stock | 2017 Equity Units | Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, quarterly payments | $ | $ 117.1 | |||||||||||||||
Series C Preferred Stock | Minimum | Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 162.27 | |||||||||||||||
Series C Preferred Stock | Minimum | Equity Units And Capped Call Transactions Commenced in 2018 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 148.34 | |||||||||||||||
Series C Preferred Stock | Maximum | Equity Units And Capped Call Transactions Commenced in 2017 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 179.53 | |||||||||||||||
Series C Preferred Stock | Maximum | Equity Units And Capped Call Transactions Commenced in 2018 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Option indexed to issuer's equity, strike price (in dollars per share) | $ 165 | $ 209.80 | ||||||||||||||
Common Stock | Equity Units And Capped Call Transactions Commenced in 2018 | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Purchase of call options | $ | $ 57.3 | |||||||||||||||
Call option, average price (in dollars per share) | $ 17.96 | |||||||||||||||
Option indexed to issuer's equity (in shares) | shares | 3,200,000 | |||||||||||||||
Option indexed to issuer's equity, settlement alternatives, shares, at fair value (in shares) | shares | 600,000 | |||||||||||||||
Option indexed to issuer's equity, settlement alternatives, shares received (in shares) | shares | 61,767 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 11,592.4 | $ 11,066.4 | $ 9,142.2 |
Other comprehensive (loss) income before reclassifications | (219.5) | (161.6) | |
Adjustments related to sales of businesses | (36.1) | ||
Reclassification adjustments to earnings | (18.3) | 29.7 | |
Net other comprehensive (loss) income | (273.9) | (131.9) | 170.9 |
Ending balance | 9,714.2 | 11,592.4 | 11,066.4 |
Currency translation adjustment and other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,543) | (1,235.3) | |
Other comprehensive (loss) income before reclassifications | (328.3) | (307.7) | |
Adjustments related to sales of businesses | (36.1) | ||
Reclassification adjustments to earnings | 0 | 0 | |
Net other comprehensive (loss) income | (364.4) | (307.7) | |
Ending balance | (1,907.4) | (1,543) | (1,235.3) |
(Losses) gains on cash flow hedges, net of tax | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (49.8) | (103) | |
Other comprehensive (loss) income before reclassifications | 31.7 | 36.2 | |
Adjustments related to sales of businesses | 0 | ||
Reclassification adjustments to earnings | (26.4) | 17 | |
Net other comprehensive (loss) income | 5.3 | 53.2 | |
Ending balance | (44.5) | (49.8) | (103) |
Gains (losses) on net investment hedges, net of tax | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 71.8 | 72.8 | |
Other comprehensive (loss) income before reclassifications | 3.7 | 2.9 | |
Adjustments related to sales of businesses | 0 | ||
Reclassification adjustments to earnings | (1.7) | (3.9) | |
Net other comprehensive (loss) income | 2 | (1) | |
Ending balance | 73.8 | 71.8 | 72.8 |
Pension (losses) gains, net of tax | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (324.6) | (448.2) | |
Other comprehensive (loss) income before reclassifications | 73.4 | 107 | |
Adjustments related to sales of businesses | 0 | ||
Reclassification adjustments to earnings | 9.8 | 16.6 | |
Net other comprehensive (loss) income | 83.2 | 123.6 | |
Ending balance | (241.4) | (324.6) | (448.2) |
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,845.6) | (1,713.7) | (1,884.6) |
Net other comprehensive (loss) income | (273.9) | (131.9) | 170.9 |
Ending balance | $ (2,119.5) | $ (1,845.6) | $ (1,713.7) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | $ 12,663.3 | $ 10,189.1 | $ 8,431.9 |
Other, net | 274.8 | 189.5 | 215.7 |
Interest expense | 338.5 | 185.4 | 222.7 |
Tax effect | 132.4 | (55.1) | (38) |
Net Earnings Attributable to Stanley Black & Decker, Inc. | 1,062.5 | 1,689.2 | $ 1,233.8 |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | 53.3 | (26.1) | |
Interest expense | (5.8) | (3.9) | |
Total before taxes | 47.5 | (30) | |
Tax effect | (21.1) | 13 | |
Net Earnings Attributable to Stanley Black & Decker, Inc. | 26.4 | (17) | |
Accumulated Net Investment Hedge Gain (Loss) Including Portion Attributable To Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other, net | 2.2 | 5.2 | |
Tax effect | (0.5) | (1.3) | |
Net Earnings Attributable to Stanley Black & Decker, Inc. | 1.7 | 3.9 | |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before taxes | (13.3) | (22.1) | |
Tax effect | 3.5 | 5.5 | |
Net Earnings Attributable to Stanley Black & Decker, Inc. | (9.8) | (16.6) | |
Actuarial losses and prior service costs / credits | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other, net | (13.3) | (21) | |
Settlement losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other, net | $ 0 | $ 1.1 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) $ / shares shares | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employer match percentage of employee's tax-deferred contribution | 50% | ||
Allocations for benefits earned under the cornerstone plan | $ 28.9 | $ 31.1 | $ 5.4 |
Employee stock ownership plan, expenses | 61.1 | 59.1 | 4.4 |
Employer discretionary contribution amount | $ 7.2 | ||
Defined contribution plan, liability | 95.6 | 135.8 | |
Accumulated benefit obligation for defined benefit pension plans | $ 2,023 | $ 2,943 | |
Expected return on plan assets | 6.03% | ||
Percentage of pension liabilities invested in fixed income securities | 50% | ||
Target allocation percentage of assets, equity securities, minimum | 10% | ||
Target allocation percentage of assets, equity securities, maximum | 30% | ||
Target allocations in fixed income securities minimum range | 60% | ||
Target allocations in fixed income securities maximum range | 80% | ||
Target allocations in other securities range, maximum | 10% | ||
Funded percentage | 87% | 87% | 80% |
Expected pension and other post retirement benefit plans | $ 37 | ||
Assumed health care cost trend rate for next year | 6.70% | ||
Assumed ultimate trend rate for health care cost | 4.60% | ||
Non-U.S. Plans | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employees covered by pension plan | employee | 14,300 | ||
Expected return on plan assets | 3.41% | 3.25% | 3.90% |
Medical and dental benefits | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Number of employees covered by benefit plans | employee | 20,800 | ||
Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 7% | ||
ESOP, average fair value of shares released (in dollars per share) | $ / shares | $ 146.08 | ||
Employer cash contributions | $ 67.8 | $ 35.7 | $ 9.2 |
Unallocated shares of stock released (in shares) | shares | 226,212 | ||
Dividends paid on ESOP shares | $ 1.3 | ||
Interest costs incurred by ESOP | 0.1 | ||
Employee Defined Contribution Plans | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined contribution plan, employer contribution | $ 32.2 | $ 28 | $ 9.2 |
Core Benefit Plan | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Number of employees covered by benefit plans | employee | 9,370 | ||
Minimum | Core Benefit Plan | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined contribution plan, employer contribution | 2% | ||
Maximum | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 25% | ||
Maximum | Core Benefit Plan | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined contribution plan, employer contribution | 6% |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Retirement Benefits [Abstract] | |||
Multi-employer plan expense | $ 6 | $ 7.1 | $ 7.8 |
Other defined contribution plan (benefit) expense | $ (2.4) | $ 28.6 | $ 24.9 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss | $ 0 | ||
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6.2 | $ 6.5 | $ 6.8 |
Interest cost | 33.6 | 23 | 35.3 |
Expected return on plan assets | (60.9) | (54.9) | (58.7) |
Amortization of prior service cost (credit) | 0.9 | 1.1 | 1 |
Actuarial loss amortization | 5.9 | 9.2 | 8.5 |
Special termination benefit | 0 | 0 | 0 |
Settlement / curtailment loss | 0.2 | 0.4 | 0 |
Net periodic pension (benefit) expense | (14.1) | (14.7) | (7.1) |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 15.1 | 17.6 | 16.1 |
Interest cost | 22.9 | 16.7 | 22.5 |
Expected return on plan assets | (37.7) | (39.9) | (41.2) |
Amortization of prior service cost (credit) | (0.7) | (0.8) | (0.7) |
Actuarial loss amortization | 7.9 | 12.2 | 11.7 |
Special termination benefit | 0 | 0 | 0.2 |
Settlement / curtailment loss | 0.2 | 0.7 | 0.6 |
Net periodic pension (benefit) expense | $ 7.7 | $ 6.5 | $ 9.2 |
EMPLOYEE BENEFIT PLANS - Net _2
EMPLOYEE BENEFIT PLANS - Net Periodic Post-Retirement Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss | $ 0 | ||
Defined benefit plan, net periodic benefit cost (credit) excluding service cost, statement of income or comprehensive income | Other, net | Other, net | Other, net |
Other Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.3 | $ 0.4 | $ 0.6 |
Interest cost | 1.5 | 0.9 | 1.5 |
Amortization of prior service cost (credit) | 0 | (0.7) | (1.3) |
Actuarial loss amortization | (0.7) | 0 | 0.3 |
Settlement / curtailment loss | (0.4) | 0 | 0 |
Special termination benefit | 6.9 | 0 | 16.1 |
Net periodic pension (benefit) expense | $ 7.6 | $ 0.6 | $ 17.2 |
EMPLOYEE BENEFIT PLANS - Assets
EMPLOYEE BENEFIT PLANS - Assets and Benefit Obligations Recognized in Other Comprehensive Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Retirement Benefits [Abstract] | |
Current year actuarial gain | $ (75.1) |
Amortization of actuarial loss | (13.3) |
Prior service cost from plan amendments | 1.2 |
Settlement / curtailment loss | 0 |
Currency / other | (24.5) |
Total gain recognized in Accumulated other comprehensive loss (pre-tax) | $ (111.7) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension and Other Post-Retirement Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current benefit liability | $ (353.9) | $ (474.1) | |
Other Benefit Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 50.3 | 61.2 | |
Service cost | 0.3 | 0.4 | $ 0.6 |
Interest cost | 1.5 | 0.9 | 1.5 |
Special termination benefit | 6.9 | 0 | 16.1 |
Settlements/curtailments | (0.4) | 0 | |
Actuarial gain | (9.5) | (6.6) | |
Plan amendments | 0.4 | 0 | |
Foreign currency exchange rate changes | (0.2) | (0.2) | |
Participant contributions | 0 | 0 | |
Acquisitions, divestitures, and other | 0 | 0 | |
Benefits paid | (6.5) | (5.4) | |
Benefit obligation at end of year | 42.8 | 50.3 | 61.2 |
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 | 6.5 | 5.4 | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Acquisitions, divestitures, and other | 0 | 0 | |
Benefits paid | (6.5) | (5.4) | |
Fair value of plan assets at end of plan year | 0 | 0 | 0 |
Funded status — assets less than benefit obligation | (42.8) | (50.3) | |
Unrecognized prior service cost (credit) | 0.4 | 0.1 | |
Unrecognized net actuarial loss (gain) | (18.3) | (9.7) | |
Net amount recognized | (60.7) | (59.9) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0 | 0 | |
Current benefit liability | (8.9) | (7.5) | |
Non-current benefit liability | (33.9) | (42.8) | |
Net liability recognized | (42.8) | (50.3) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 0.4 | 0.1 | |
Actuarial loss (gain) | (18.3) | (9.7) | |
Defined benefit plan, accumulated other comprehensive loss (pre-tax) | (17.9) | (9.6) | |
U.S. Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,458.2 | 1,404.3 | |
Service cost | 6.2 | 6.5 | 6.8 |
Interest cost | 33.6 | 23 | 35.3 |
Special termination benefit | 0 | 0 | 0 |
Settlements/curtailments | (10.7) | (0.8) | |
Actuarial gain | (314.7) | (47.2) | |
Plan amendments | 0.7 | 0.8 | |
Foreign currency exchange rate changes | 0 | 0 | |
Participant contributions | 0 | 0 | |
Acquisitions, divestitures, and other | (4.5) | 152.4 | |
Benefits paid | (85.3) | (80.8) | |
Benefit obligation at end of year | 1,083.5 | 1,458.2 | 1,404.3 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,340.1 | 1,191.5 | |
Actual return on plan assets | (279) | 63.4 | |
Participant contributions | 0 | 0 | |
Employer contributions | 7 | 13.8 | |
Settlements | (11) | (0.8) | |
Foreign currency exchange rate changes | 0 | 0 | |
Acquisitions, divestitures, and other | (4.5) | 153 | |
Benefits paid | (85.3) | (80.8) | |
Fair value of plan assets at end of plan year | 967.3 | 1,340.1 | 1,191.5 |
Funded status — assets less than benefit obligation | (116.2) | (118.1) | |
Unrecognized prior service cost (credit) | 2.9 | 3.5 | |
Unrecognized net actuarial loss (gain) | 233.2 | 213.4 | |
Net amount recognized | 119.9 | 98.8 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 4.1 | 0.6 | |
Current benefit liability | (6.1) | (6) | |
Non-current benefit liability | (114.2) | (112.7) | |
Net liability recognized | (116.2) | (118.1) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 2.9 | 3.5 | |
Actuarial loss (gain) | 233.2 | 213.4 | |
Defined benefit plan, accumulated other comprehensive loss (pre-tax) | 236.1 | 216.9 | |
Non-U.S. Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,490.4 | 1,622.3 | |
Service cost | 15.1 | 17.6 | 16.1 |
Interest cost | 22.9 | 16.7 | 22.5 |
Special termination benefit | 0 | 0 | 0.2 |
Settlements/curtailments | (4.4) | (15.3) | |
Actuarial gain | (409.5) | (92.4) | |
Plan amendments | 0.1 | 0.1 | |
Foreign currency exchange rate changes | (133.1) | (37.7) | |
Participant contributions | 0.2 | 0.2 | |
Acquisitions, divestitures, and other | 2.2 | 28.9 | |
Benefits paid | (52.9) | (50) | |
Benefit obligation at end of year | 931 | 1,490.4 | 1,622.3 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,226.6 | 1,229.6 | |
Actual return on plan assets | (281.3) | 17.9 | |
Participant contributions | 0.2 | 0.2 | |
Employer contributions | 18.4 | 20.8 | |
Settlements | (4.4) | (13.7) | |
Foreign currency exchange rate changes | (121) | (15.6) | |
Acquisitions, divestitures, and other | (2.2) | 37.4 | |
Benefits paid | (52.9) | (50) | |
Fair value of plan assets at end of plan year | 783.4 | 1,226.6 | $ 1,229.6 |
Funded status — assets less than benefit obligation | (147.6) | (263.8) | |
Unrecognized prior service cost (credit) | (13.8) | (16.4) | |
Unrecognized net actuarial loss (gain) | 143.1 | 268.3 | |
Net amount recognized | (18.3) | (11.9) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 67.7 | 62.4 | |
Current benefit liability | (9.5) | (10.3) | |
Non-current benefit liability | (205.8) | (315.9) | |
Net liability recognized | (147.6) | (263.8) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (13.8) | (16.4) | |
Actuarial loss (gain) | 143.1 | 268.3 | |
Defined benefit plan, accumulated other comprehensive loss (pre-tax) | $ 129.3 | $ 251.9 |
EMPLOYEE BENEFIT PLANS - Accumu
EMPLOYEE BENEFIT PLANS - Accumulated Benefit Obligations Exceed Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 982.3 | $ 1,299.8 |
Fair value of plan assets | 862 | 1,184.6 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 208.7 | 326.1 |
Fair value of plan assets | $ 25.7 | $ 50.3 |
EMPLOYEE BENEFIT PLANS - Projec
EMPLOYEE BENEFIT PLANS - Projected Benefit Obligations Exceed Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 982.3 | $ 1,303.3 |
Fair value of plan assets | 862 | 1,184.6 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 266.7 | 399.1 |
Fair value of plan assets | $ 51.3 | $ 72.9 |
EMPLOYEE BENEFIT PLANS - Pens_2
EMPLOYEE BENEFIT PLANS - Pension and Post-Retirement Plan Obligations and Net Costs (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Expected return on plan assets | 6.03% | ||
Other Benefit Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 5.47% | 2.84% | 2.19% |
Rate of compensation increase | 0% | 0% | 3.50% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 0% | 0% | 3.50% |
Expected return on plan assets | 0% | 0% | 0% |
Other Benefit Plans | Discount rate - service cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 4.41% | 4.42% | 5.62% |
Other Benefit Plans | Discount rate - interest cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.25% | 1.60% | 3.36% |
U.S. Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 5.36% | 2.80% | 2.39% |
Rate of compensation increase | 0% | 3% | 3.56% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 3% | 3% | 3% |
Expected return on plan assets | 4.69% | 4.75% | 5.25% |
U.S. Plans | Discount rate - service cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.14% | 2.95% | 3.58% |
U.S. Plans | Discount rate - interest cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.28% | 1.68% | 2.75% |
Non-U.S. Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 4.70% | 1.78% | 1.31% |
Rate of compensation increase | 3.64% | 3.56% | 3.29% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 3.57% | 3.27% | 3.30% |
Expected return on plan assets | 3.41% | 3.25% | 3.90% |
Non-U.S. Plans | Discount rate - service cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.67% | 1.41% | 1.57% |
Non-U.S. Plans | Discount rate - interest cost | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 1.69% | 1.06% | 1.61% |
EMPLOYEE BENEFIT PLANS - Pens_3
EMPLOYEE BENEFIT PLANS - Pension Plan Assets (Details) - Defined Benefit Pension - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 1,750.7 | $ 2,566.7 |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 42.3 | 74.2 |
U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 181.9 | 323.3 |
Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 123.3 | 205.9 |
Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 619.3 | 871.1 |
Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 702.5 | 996.3 |
Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 36.7 | 49.6 |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 44.7 | 46.3 |
Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 364.1 | 533.7 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 28.2 | 55.7 |
Level 1 | U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 66.2 | 92.5 |
Level 1 | Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33 | 44.8 |
Level 1 | Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 236.7 | 340.7 |
Level 1 | Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,386.6 | 2,033 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 14.1 | 18.5 |
Level 2 | U.S. equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 115.7 | 230.8 |
Level 2 | Foreign equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 90.3 | 161.1 |
Level 2 | Government securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 382.6 | 530.4 |
Level 2 | Corporate securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 702.5 | 996.3 |
Level 2 | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 36.7 | 49.6 |
Level 2 | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 44.7 | $ 46.3 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
Total | $ 1,451.7 |
Year 1 | 151.6 |
Year 2 | 149 |
Year 3 | 146.6 |
Year 4 | 144.6 |
Year 5 | 143.5 |
Years 6-10 | $ 716.4 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 12.2 | $ 33.1 |
Derivative liabilities | 16.1 | 8.7 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 9.4 | 11 |
Equity security | 3.2 | 13.8 |
Deferred compensation plan investments | 19 | 26.2 |
Derivative assets | 12.2 | 33.1 |
Derivative liabilities | 16.1 | 8.7 |
Contingent consideration liability | 268.7 | 288.6 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 9.4 | 11 |
Equity security | 3.2 | 13.8 |
Deferred compensation plan investments | 19 | 26.2 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Contingent consideration liability | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 0 | 0 |
Equity security | 0 | 0 |
Deferred compensation plan investments | 0 | 0 |
Derivative assets | 12.2 | 33.1 |
Derivative liabilities | 16.1 | 8.7 |
Contingent consideration liability | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 0 | 0 |
Equity security | 0 | 0 |
Deferred compensation plan investments | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Contingent consideration liability | $ 268.7 | $ 288.6 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Carrying and Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 9.3 | $ 11.2 |
Long-term debt, including current portion | 5,354.1 | 4,354.9 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 9.3 | 11.6 |
Long-term debt, including current portion | $ 4,662.9 | $ 4,850.2 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Mar. 31, 2017 | |
Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business combination, contingent consideration, liability, measurement input | 0.0100 | |||
Craftsman | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Craftsman contingent consideration | $ 41.3 | $ 29.3 | $ 45.9 | |
Contingent consideration liability | 268.7 | $ 288.6 | ||
Estimated increase in liability due to reduction in discount rate | $ 8.6 | |||
Minimum | Craftsman | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Obligation to make future payments based on future sales as a percentage | 2.50% | |||
Maximum | Craftsman | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Obligation to make future payments based on future sales as a percentage | 3.50% |
OTHER COSTS AND EXPENSES (Detai
OTHER COSTS AND EXPENSES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Business Acquisition [Line Items] | |||||||||||
Environmental remediation expense, statement of income or comprehensive income | Other, net | ||||||||||
Pre-tax acquisition charges | $ 54 | $ 119 | $ 248 | $ 221 | $ 104 | $ 33 | $ 33 | $ 24 | $ 642 | $ 194 | |
Business combination acquisition related costs related to retirement benefit | $ 14.1 | ||||||||||
Research and development costs | 357.4 | 276.3 | 200 | ||||||||
Consolidated Aerospace Manufacturing (CAM) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Special termination benefits cost | 7.1 | ||||||||||
Unamortized loss on cash flow swap termination | 19.6 | ||||||||||
Release of contingent consideration liability | 55.3 | ||||||||||
COVID-19 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restructuring costs | 185 | ||||||||||
Other Expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pre-tax acquisition charges | $ 9.8 | $ 24.2 | $ 27.4 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Restructuring Reserve | |||
Reserve, beginning balance | $ 31.7 | ||
Net Additions | 140.8 | $ 14.5 | $ 73.8 |
Usage | (111.9) | ||
Currency | 1.7 | ||
Reserve, ending balance | 62.3 | 31.7 | |
Severance and related costs | |||
Restructuring Reserve | |||
Reserve, beginning balance | 28.2 | ||
Net Additions | 125.9 | ||
Usage | (98.7) | ||
Currency | 1.6 | ||
Reserve, ending balance | 57 | 28.2 | |
Facility closures and asset impairments | |||
Restructuring Reserve | |||
Reserve, beginning balance | 3.5 | ||
Net Additions | 14.9 | ||
Usage | (13.2) | ||
Currency | 0.1 | ||
Reserve, ending balance | $ 5.3 | $ 3.5 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | $ 140.8 | $ 14.5 | $ 73.8 |
Restructuring reserves | 62.3 | $ 31.7 | |
Corporate Overhead & Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 34.2 | ||
Tools & Outdoor | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 80.7 | ||
Industrial | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 25.9 | ||
Series of Individually Immaterial Business Acquisitions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | $ 140.8 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 country segment | Jan. 01, 2022 | Jan. 02, 2021 | Nov. 30, 2020 country | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Number of countries | 5 | |||
Operating Segments | Industrial | ||||
Segment Reporting Information [Line Items] | ||||
Deferred revenue recognized | 4.60% | 6.60% | 9.20% | |
Small Business in Security Segment | ||||
Segment Reporting Information [Line Items] | ||||
Number of countries | 5 | |||
Lowes | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 15% | 15% | 17% | |
Home Depot | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 13% | 15% | 14% |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 3,986.8 | $ 4,119.6 | $ 4,393 | $ 4,448 | $ 3,981.9 | $ 3,779.7 | $ 3,798.9 | $ 3,720.8 | $ 16,947.4 | $ 15,281.3 | $ 12,750 |
Corporate Overhead & Other | (294) | (342.9) | (302.1) | ||||||||
Other, net | (274.8) | (189.5) | (215.7) | ||||||||
Loss on sales of businesses | (8.4) | (0.6) | (13.5) | ||||||||
Restructuring charges | (140.8) | (14.5) | (73.8) | ||||||||
Gain on equity method investment | 0 | 68 | 0 | ||||||||
Asset impairment charge | (168.4) | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | 0 | (46.9) | ||||||||
Interest income | 54.7 | 9.8 | 17.5 | ||||||||
Interest expense | (338.5) | (185.4) | (222.7) | ||||||||
Earnings from continuing operations before income taxes and equity interest | 37.9 | 1,586.9 | 1,183.7 | ||||||||
Capital and Software Expenditures | 530.4 | 519.1 | 348.1 | ||||||||
Capital and software expenditures, discontinued operations | 6.3 | 20 | 17.1 | ||||||||
Depreciation and amortization, discontinued operations | 0.4 | 62.8 | 66.6 | ||||||||
Depreciation and Amortization | 572.2 | 577.1 | 578.1 | ||||||||
Total assets | 0 | 3,505.4 | 0 | 3,505.4 | |||||||
Segment Assets | 24,963.3 | 28,180 | 24,963.3 | 28,180 | |||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Profit | 1,208.1 | 2,242 | 2,040.9 | ||||||||
Segment Assets | 25,486.8 | 25,165.7 | 25,486.8 | 25,165.7 | |||||||
Corporate Overhead & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 0.3 | 0.8 | 67.6 | ||||||||
Capital and Software Expenditures | 0 | 0 | 0.2 | ||||||||
Depreciation and Amortization | 0 | 0 | 0.3 | ||||||||
Segment Assets | (523.5) | (491.1) | (523.5) | (491.1) | |||||||
Tools & Outdoor | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 14,423.7 | 12,817.4 | 10,329.7 | ||||||||
Segment Profit | 971.9 | 1,985.4 | 1,820.3 | ||||||||
Capital and Software Expenditures | 438.5 | 375.8 | 228.6 | ||||||||
Depreciation and Amortization | 387.6 | 312.9 | 311.2 | ||||||||
Segment Assets | 20,202 | 19,537.9 | 20,202 | 19,537.9 | |||||||
Industrial | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,523.4 | 2,463.1 | 2,352.7 | ||||||||
Segment Profit | 236.2 | 256.6 | 220.6 | ||||||||
Capital and Software Expenditures | 85.6 | 123.3 | 102.2 | ||||||||
Depreciation and Amortization | 184.2 | 201.4 | $ 200 | ||||||||
Segment Assets | $ 5,284.8 | $ 5,627.8 | $ 5,284.8 | $ 5,627.8 |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 3,986.8 | $ 4,119.6 | $ 4,393 | $ 4,448 | $ 3,981.9 | $ 3,779.7 | $ 3,798.9 | $ 3,720.8 | $ 16,947.4 | $ 15,281.3 | $ 12,750 |
Industrial | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 2,523.4 | 2,463.1 | 2,352.7 | ||||||||
Industrial | Engineered Fastening | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 1,874.8 | 1,842.1 | 1,717.8 | ||||||||
Industrial | Infrastructure | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 648.6 | $ 621 | $ 634.9 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | $ 3,986.8 | $ 4,119.6 | $ 4,393 | $ 4,448 | $ 3,981.9 | $ 3,779.7 | $ 3,798.9 | $ 3,720.8 | $ 16,947.4 | $ 15,281.3 | $ 12,750 |
Property, Plant and Equipment, net | 2,353.1 | 2,336.8 | 2,353.1 | 2,336.8 | |||||||
United States | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 10,733.1 | 9,073.1 | 7,828.3 | ||||||||
Property, Plant and Equipment, net | 1,465.8 | 1,433.6 | 1,465.8 | 1,433.6 | |||||||
Canada | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 835.7 | 696 | 575 | ||||||||
Property, Plant and Equipment, net | 7.4 | 21.6 | 7.4 | 21.6 | |||||||
Other Americas | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 839.4 | 833.6 | 587.9 | ||||||||
Property, Plant and Equipment, net | 249.8 | 178.1 | 249.8 | 178.1 | |||||||
France | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 489.8 | 488.8 | 393 | ||||||||
Property, Plant and Equipment, net | 30.7 | 36.6 | 30.7 | 36.6 | |||||||
Other Europe | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 2,664.9 | 2,847.2 | 2,288.7 | ||||||||
Property, Plant and Equipment, net | 272.9 | 318.9 | 272.9 | 318.9 | |||||||
Asia | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 1,384.5 | 1,342.6 | $ 1,077.1 | ||||||||
Property, Plant and Equipment, net | $ 326.5 | $ 348 | $ 326.5 | $ 348 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Deferred tax liabilities: | ||
Depreciation | $ 160.1 | $ 132.2 |
Intangible assets | 907.5 | 917.3 |
Liability on undistributed foreign earnings | 45.4 | 48.2 |
Lease right-of-use asset | 108.2 | 106.5 |
Inventory | 59.4 | 79.6 |
Other | 46.7 | 48.4 |
Total deferred tax liabilities | 1,327.3 | 1,332.2 |
Deferred tax assets: | ||
Employee benefit plans | 130.9 | 204.2 |
Basis differences in liabilities | 104 | 100.4 |
Operating loss, capital loss and tax credit carryforwards | 817.4 | 830.7 |
Lease liability | 110.4 | 109.7 |
Intangible assets | 556.8 | 417.7 |
Basis difference in debt obligations | 268 | 205.1 |
Capitalized research and development costs | 134.7 | 86 |
Other | 204.3 | 206.6 |
Total deferred tax assets | 2,326.5 | 2,160.4 |
Net Deferred Tax Asset before Valuation Allowance | 999.2 | 828.2 |
Valuation Allowance | (1,032.5) | (1,067.2) |
Net Deferred Tax Liability after Valuation Allowance | $ (33.3) | $ (239) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 1,032.5 | $ 1,067.2 | |
Undistributed earnings, basic | 5,200 | ||
Liability on undistributed foreign earnings | 45.4 | 48.2 | |
Undistributed earnings of foreign subsidiaries | 1,500 | ||
Operating loss carryforwards | 3,000 | ||
Capital loss carryforwards | 56.5 | ||
Income taxes paid, net | 482.6 | 441.8 | $ 241.6 |
Income tax refund | 41.8 | 50.1 | 43.8 |
Unrecognized tax benefits that would impact effective tax rate | 496 | 478.4 | |
Unrecognized tax benefits, income tax penalties and interest expense (decrease) increase | (11.2) | 9.6 | (3.4) |
Unrecognized tax benefits, income tax penalties and interest accrued | 48.8 | $ 60 | $ 49.2 |
Foreign Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | 22.5 | ||
Tax credit carryforward, subject to limitations | 12.9 | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | $ 23.2 |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (1,233.8) | $ (77.7) | $ 144.5 |
Foreign | 1,271.7 | 1,664.6 | 1,039.2 |
Earnings from continuing operations before income taxes and equity interest | $ 37.9 | $ 1,586.9 | $ 1,183.7 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Current: | |||
Federal | $ (79) | $ 0.3 | $ 55.4 |
Foreign | 248.6 | 388 | 183.2 |
State | (16.7) | 31.8 | 19.8 |
Total current | 152.9 | 420.1 | 258.4 |
Deferred: | |||
Federal | (61.2) | (124.7) | (25.1) |
Foreign | (222.5) | (210.1) | (192.1) |
State | (1.6) | (30.2) | (3.2) |
Total deferred | (285.3) | (365) | (220.4) |
Income taxes on continuing operations | $ (132.4) | $ 55.1 | $ 38 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 8 | $ 333.2 | $ 248.6 |
State income taxes, net of federal benefits | (19.3) | 1.4 | 12 |
Foreign tax rate differential | (28.8) | (63.5) | (58.6) |
Uncertain tax benefits | 26.3 | 49.6 | 17.7 |
Change in valuation allowance | (25.1) | (11.9) | (12.7) |
Change in deferred tax liabilities on undistributed foreign earnings | 12.8 | 23.1 | (118.8) |
Stock-based compensation | 7.3 | (6.3) | (9.2) |
Change in tax rates | (5.5) | (31.1) | (0.3) |
Tax credits | (8.8) | (6.7) | (6) |
Capital loss | 0 | 0 | (40.4) |
U.S. federal tax expense (benefit) on foreign earnings | 55.7 | (118.1) | 2 |
Intra-entity asset transfer of intellectual property | (153.3) | (114.2) | (27.7) |
Other | (1.7) | (0.4) | 31.4 |
Income taxes on continuing operations | $ (132.4) | $ 55.1 | $ 38 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | $ 487.7 | $ 428.3 | $ 392 |
Additions based on tax positions related to current year | 27.2 | 33.6 | 27.8 |
Additions based on tax positions related to prior years | 41.1 | 53.5 | 34.4 |
Reductions based on tax positions related to prior years | (37.8) | (17.2) | (19) |
Settlements | (7) | (1.3) | (0.5) |
Statute of limitations expirations | (8.5) | (9.2) | (6.4) |
Balance at end of year | $ 502.7 | $ 487.7 | $ 428.3 |
COMMITMENTS AND GUARANTEES - Sc
COMMITMENTS AND GUARANTEES - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use assets | $ 431.5 | $ 426 |
Lease liabilities | $ 440.5 | $ 439.1 |
Weighted-average incremental borrowing rate | 3.60% | 3.50% |
Weighted-average remaining term | 6 years | 6 years |
Operating lease, liability, statement of financial position | Accrued Liabilities, Current And Other Liabilities, Noncurrent [Member] | Accrued Liabilities, Current And Other Liabilities, Noncurrent [Member] |
COMMITMENTS AND GUARANTEES - Ad
COMMITMENTS AND GUARANTEES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Guarantor Obligations [Line Items] | |||
Operating lease, right-of-use asset, statement of financial position | Other Assets | Other Assets | |
Operating lease, liability, current, statement of financial position | Accrued expenses | ||
Operating lease, liability, noncurrent, statement of financial position | Other Liabilities | ||
Increase in lease liability | $ 115.8 | $ 84.1 | |
Payments on operating leases | 124.1 | $ 110.8 | $ 111.2 |
Lease guarantees | 410.3 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | $ 12.7 | ||
Product warranties | 1 year | ||
Guarantees on the residual values of leased properties | |||
Guarantor Obligations [Line Items] | |||
Lease guarantees | $ 156.6 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | ||
Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Residual value of leased asset | 189.5 | ||
Standby letters of credit | |||
Guarantor Obligations [Line Items] | |||
Lease guarantees | 174 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | ||
Commercial customer financing arrangements | |||
Guarantor Obligations [Line Items] | |||
Lease guarantees | 79.7 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | $ 12.7 |
COMMITMENTS AND GUARANTEES - Su
COMMITMENTS AND GUARANTEES - Summary of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 147.1 | $ 126.3 | $ 116.7 |
Short-term lease cost | 27.6 | 25.5 | 21 |
Variable lease cost | 5.9 | 5.9 | 7 |
Sublease income | (2.5) | (1.3) | (0.3) |
Total lease cost | $ 178.1 | $ 156.4 | $ 144.4 |
COMMITMENTS AND GUARANTEES - Le
COMMITMENTS AND GUARANTEES - Lease Maturity Schedule (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 490.4 |
2023 | 116.2 |
2024 | 94.4 |
2025 | 70.8 |
2026 | 61 |
2027 | 46.4 |
Thereafter | $ 101.6 |
COMMITMENTS AND GUARANTEES - _2
COMMITMENTS AND GUARANTEES - Summary of Contractual Commitments (Details) - Marketing and other commitments $ in Millions | Dec. 31, 2022 USD ($) |
Guarantor Obligations [Line Items] | |
Total | $ 81.6 |
2023 | 45.1 |
2024 | 22.1 |
2025 | 7.2 |
2026 | 7.2 |
2027 | 0 |
Thereafter | $ 0 |
COMMITMENTS AND GUARANTEES - _3
COMMITMENTS AND GUARANTEES - Summary of Purchase Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 339 |
2023 | 142.2 |
2024 | 130.8 |
2025 | 56 |
2026 | 10 |
2027 | 0 |
Thereafter | $ 0 |
COMMITMENTS AND GUARANTEES - Fi
COMMITMENTS AND GUARANTEES - Financial Guarantees (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 410.3 |
Carrying Amount of Liability | 12.7 |
Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 156.6 |
Carrying Amount of Liability | $ 0 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Term | 3 years |
Maximum Potential Payment | $ 174 |
Carrying Amount of Liability | $ 0 |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Term | 6 years |
Maximum Potential Payment | $ 79.7 |
Carrying Amount of Liability | $ 12.7 |
Minimum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | 1 year |
Maximum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | 9 years |
COMMITMENTS AND GUARANTEES - Ca
COMMITMENTS AND GUARANTEES - Carrying Amount of Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Summary of warranty liability activity | |||
Balance beginning of period | $ 134.5 | $ 107.9 | $ 94.4 |
Warranties and guarantees issued | 155.3 | 150.1 | 126.9 |
Warranties assumed in acquisitions | 0 | 33.4 | 0 |
Warranty payments and currency | (163.2) | (156.9) | (113.4) |
Balance end of period | $ 126.6 | $ 134.5 | $ 107.9 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) ft³ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 16, 2022 USD ($) mi ft³ | Feb. 11, 2022 mi | Apr. 14, 2021 USD ($) mi | Dec. 04, 2020 USD ($) | Oct. 10, 2018 mi | Jun. 30, 2018 USD ($) company mi | May 17, 2017 company hazardousSubstance mi | Mar. 30, 2017 company | Sep. 30, 2016 mi | Mar. 31, 2016 company mi | Mar. 04, 2016 USD ($) mi | Apr. 11, 2014 mi | Apr. 01, 2014 mi | Jun. 18, 2012 mi | Apr. 30, 2015 mi | May 31, 2007 company mi | Dec. 31, 2022 USD ($) site | Jan. 01, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Superfund sites | site | 26 | |||||||||||||||||
Environmental loss contingency, statement of financial position, not disclosed | reserves | reserves | ||||||||||||||||
Reserve for environmental remediation costs, current | $ 39.4 | $ 46.1 | ||||||||||||||||
Environmental loss contingency, noncurrent, statement of financial position, not disclosed | long-term | |||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 150 | $ 441 | $ 1,400 | |||||||||||||||
Reserve for environmental loss contingencies, EPA funded amount | $ 16.4 | |||||||||||||||||
Environmental remediation. period construction of treatment facility to be maintained | 30 years | |||||||||||||||||
Number of miles of river | mi | 10.9 | 17 | 17 | 9 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 10.9 | 17 | 17 | ||||
Cubic yards of settlement | ft³ | 3.5 | |||||||||||||||||
Approximate implementation time | 6 years | |||||||||||||||||
Estimated costs of remediation design | $ 165 | |||||||||||||||||
Number of parties notified | company | 105 | |||||||||||||||||
Number of companies offered cash out settlements | company | 20 | 20 | ||||||||||||||||
Number of hazardous substances | hazardousSubstance | 8 | |||||||||||||||||
Number of defendants | company | 100 | |||||||||||||||||
Environmental exit costs anticipated cost, percentage | 99.40% | |||||||||||||||||
Undiscounted environmental liability expected to be paid in 2023 | $ 3.2 | |||||||||||||||||
Undiscounted environmental liability expected to be paid 2024 | 3.5 | |||||||||||||||||
Undiscounted environmental liability expected to be paid in 2025 | 3.2 | |||||||||||||||||
Undiscounted environmental liability expected to be paid in 2026 | 3.1 | |||||||||||||||||
Undiscounted environmental liability expected to be paid in 2027 | 2.7 | |||||||||||||||||
Undiscounted environmental liability expected to be paid thereafter | 33 | |||||||||||||||||
Lower Passaic Cooperating Parties Group | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Number of companies | company | 47 | |||||||||||||||||
Property, Plant and Equipment, Other Types | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs, reserve | 129.3 | $ 159.1 | ||||||||||||||||
Reserve for environmental remediation costs, current | 39.4 | |||||||||||||||||
Reserve for environmental remediation costs, noncurrent | 89.9 | |||||||||||||||||
Reserve for environmental loss contingencies, obligation after EPA funding | 112.9 | |||||||||||||||||
Estimated environmental remediation expense | 21.1 | |||||||||||||||||
Centredale Site | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 35.2 | |||||||||||||||||
Minimum | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 420 | |||||||||||||||||
Environmental liability discount rate | 3.70% | |||||||||||||||||
Undiscounted environmental liability | $ 38.6 | |||||||||||||||||
Minimum | Property, Plant and Equipment, Other Types | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 58.5 | |||||||||||||||||
Maximum | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 468 | |||||||||||||||||
Environmental liability discount rate | 4.80% | |||||||||||||||||
Undiscounted environmental liability | $ 48.7 | |||||||||||||||||
Maximum | Property, Plant and Equipment, Other Types | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||
Environmental remediation costs deemed probable and reasonable estimable | $ 220.1 |
DIVESTITURES - Additional Infor
DIVESTITURES - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 19, 2022 USD ($) | Jul. 22, 2022 USD ($) | Jul. 05, 2022 USD ($) | Nov. 02, 2020 USD ($) | Jul. 02, 2022 USD ($) | Apr. 03, 2021 USD ($) | Dec. 31, 2022 USD ($) country | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2020 country | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ (8.4) | $ (0.6) | $ (13.5) | ||||||||
Asset impairment charge | 168.4 | 0 | 0 | ||||||||
Number of countries | country | 5 | ||||||||||
Commercial Electronic Security | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | 4.2 | ||||||||||
Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ (2.7) | $ (16.8) | 9.1 | ||||||||
Asset impairment charge | $ 168.4 | ||||||||||
Oil And Gas Business | Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ (8.6) | ||||||||||
Convergent Security Solutions | Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ 588 | ||||||||||
Agreement for divesture of interest in consolidated subsidiaries | $ 3,100 | ||||||||||
Mechanical Access Solutions | Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ 609 | ||||||||||
Proceeds from sales of businesses, net of cash sold | $ 922.2 | ||||||||||
Mechanical Access Solutions | Discontinued Operations, Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Transition services, term | 2 years | ||||||||||
Small Business in Security Segment | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | (13.5) | ||||||||||
Proceeds from sales of businesses, net of cash sold | $ 60.9 | ||||||||||
Number of countries | country | 5 | ||||||||||
Small Business in Security Segment | Oil & Gas Product Line | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | (17.7) | ||||||||||
Small Business in Security Segment | Commercial Electronic Security | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ (1) | ||||||||||
Other Divestures | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss on sales of businesses | $ 4.1 |
DIVESTITURES - Pre Tax Losses (
DIVESTITURES - Pre Tax Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax (losses) income | $ (8.4) | $ (0.6) | $ (13.5) |
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax (losses) income | $ (2.7) | $ (16.8) | $ 9.1 |
DIVESTITURES - Operating Result
DIVESTITURES - Operating Results of Divested Businesses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 1,197.4 | $ 0 | $ 0 |
Earnings from discontinued operations before income taxes | 1,210.9 | 124.3 | 83.3 |
Income taxes on discontinued operations | 318.5 | (12.4) | 3.4 |
Depreciation and amortization | 0.4 | 62.8 | 66.6 |
Cash and cash equivalents included in Current assets held for sale | 0 | 145.1 | |
Total assets | 0 | 3,505.4 | |
Convergent Security Solutions | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | 1,056.3 | 1,971.4 | 1,784.7 |
Cost of sales | 687.5 | 1,258.7 | 1,134.8 |
Selling, general and administrative | 308 | 529.2 | 510.4 |
Other, net and restructuring charges | 47.3 | 59.2 | 56.2 |
Earnings from discontinued operations before income taxes | 1,210.9 | 124.3 | 83.3 |
Income taxes on discontinued operations | 318.5 | (12.4) | 3.4 |
Net earnings from discontinued operations | 892.4 | 136.7 | 79.9 |
Depreciation and amortization | 0.4 | 62.8 | 66.6 |
Capital expenditures | 6.3 | 20 | 17.1 |
Stock-based compensation | 17.5 | 7.9 | 6.1 |
Cash and cash equivalents included in Current assets held for sale | 145.1 | ||
Accounts and notes receivable, net | 513.9 | ||
Inventories, net | 169.4 | ||
Other current assets | 41.2 | ||
Property, plant and equipment, net | 84.3 | ||
Goodwill and other intangibles, net | 2,270.2 | ||
Other assets | 281.3 | ||
Total assets | 3,505.4 | ||
Accounts payable and accrued expenses | 460.4 | ||
Other long-term liabilities | 137.4 | ||
Total liabilities | 597.8 | ||
Convergent Security Solutions | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 1,197.4 | $ 0 | $ 0 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net Sales | $ 3,986.8 | $ 4,119.6 | $ 4,393 | $ 4,448 | $ 3,981.9 | $ 3,779.7 | $ 3,798.9 | $ 3,720.8 | $ 16,947.4 | $ 15,281.3 | $ 12,750 |
Gross profit | 753.5 | 1,018.1 | 1,207.1 | 1,305.4 | 1,127 | 1,215.6 | 1,361.8 | 1,387.8 | 4,284.1 | 5,092.2 | |
Selling, general and administrative | 757.2 | 799.8 | 852.7 | 960.3 | 933.4 | 773.5 | 767.1 | 719.1 | 3,370 | 3,193.1 | |
Net earnings from continuing operations | (100.6) | 36.6 | 78.7 | 155.6 | 279.2 | 379.5 | 432.5 | 459.6 | 170.3 | 1,550.8 | 1,154.8 |
Less: Net earnings attributable to non-controlling interest | 0 | 0 | 0.1 | 0.1 | 0 | (0.1) | (1) | (0.6) | 0.2 | (1.7) | 0.9 |
Less: Preferred stock dividends and beneficial conversion feature | 5.8 | 0 | 0 | 0 | 0 | 0 | 4.8 | 9.4 | 5.8 | 14.2 | 24.1 |
Net Earnings from Continuing Operations Attributable to Common Shareowners | (106.4) | 36.6 | 78.6 | 155.5 | 279.2 | 379.6 | 428.7 | 450.8 | 164.3 | 1,538.3 | 1,129.8 |
Add: Contract adjustment payments accretion | 0.2 | 0.3 | 0.4 | 0.3 | 0.4 | 0.4 | 0.3 | 0.2 | 1.2 | 1.3 | 1.7 |
Net Earnings from Continuing Operations Attributable to Common Shareowners - Diluted | (106.2) | 36.9 | 79 | 155.8 | 279.6 | 380 | 429 | 451 | 165.5 | 1,539.6 | 1,131.5 |
Net earnings from discontinued operations | 55.6 | 808 | 9 | 19.8 | 48.9 | 34.6 | 26 | 27.2 | 892.4 | 136.7 | 79.9 |
Net Earnings Attributable to Common Shareowners - Diluted | $ (50.6) | $ 844.9 | $ 88 | $ 175.6 | $ 328.5 | $ 414.6 | $ 455 | $ 478.2 | $ 1,057.9 | $ 1,676.3 | $ 1,211.4 |
Basic earnings per share of common stock: | |||||||||||
Continuing operation (in dollars per share) | $ (0.72) | $ 0.25 | $ 0.54 | $ 1 | $ 1.75 | $ 2.38 | $ 2.70 | $ 2.86 | $ 1.11 | $ 9.69 | $ 7.33 |
Discontinued operations (in dollars per share) | 0.38 | 5.60 | 0.06 | 0.13 | 0.31 | 0.22 | 0.16 | 0.17 | 6.02 | 0.86 | 0.52 |
Total basic earnings per share of common stock (in dollars per share) | (0.35) | 5.85 | 0.60 | 1.13 | 2.06 | 2.60 | 2.87 | 3.04 | 7.13 | 10.55 | 7.85 |
Diluted earnings per share of common stock: | |||||||||||
Continuing operations (in dollars per share) | (0.72) | 0.24 | 0.51 | 0.94 | 1.69 | 2.30 | 2.60 | 2.74 | 1.06 | 9.33 | 6.97 |
Discontinued operations (in dollars per share) | 0.37 | 5.26 | 0.06 | 0.12 | 0.30 | 0.21 | 0.16 | 0.17 | 5.70 | 0.83 | 0.49 |
Total diluted earnings per share of common stock (in dollars per share) | $ (0.34) | $ 5.50 | $ 0.57 | $ 1.06 | $ 1.99 | $ 2.51 | $ 2.75 | $ 2.91 | $ 6.76 | $ 10.16 | $ 7.46 |
SELECTED QUARTERLY FINANCIAL _4
SELECTED QUARTERLY FINANCIAL DATA (unaudited) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Quarterly Financial Data [Abstract] | ||||||||||
Pre-tax acquisition charges | $ 54 | $ 119 | $ 248 | $ 221 | $ 104 | $ 33 | $ 33 | $ 24 | $ 642 | $ 194 |
Tax benefit related to acquisition | 84 | 64 | $ 84 | 64 | ||||||
After tax charges related to share of equity method investments | $ 92 | $ 79 | $ 195 | $ 192 | $ 61 | $ 26 | $ 36 | $ 18 | $ 11 | |
Acquisition loss per diluted share (in dollars per share) | $ (0.62) | $ (0.52) | $ (1.26) | $ (1.16) | $ (0.37) | $ (0.15) | $ (0.21) | $ (0.11) |