EXHIBIT 99.0
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS (Unaudited)
(Millions of Dollars)
Reportable Business Segments
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Power Hardware Fastening Currency Corporate,
Tools & & Home & Assembly Translation Adjustments,
Year Ended December 31, 2001 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated
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Sales to unaffiliated customers $3,008.9 $766.2 $478.4 $4,253.5 $ (7.9) $ - $4,245.6
Segment profit (loss)
(for Consolidated, operating
income before restructuring
and exit costs) 250.0 59.1 68.4 377.5 .4 (30.3) 347.6
Depreciation and amortization 85.2 33.7 14.3 133.2 .4 25.8 159.4
Capital expenditures 85.1 33.1 15.4 133.6 .4 .8 134.8
Year Ended December 31, 2000
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Sales to unaffiliated customers $3,072.4 $831.5 $489.3 $4,393.2 $ 81.7 $ - $4,474.9
Segment profit (loss)
(for Consolidated, operating
income before restructuring
and exit costs and gain on sale
of business) 349.4 113.5 80.4 543.3 8.4 (29.4) 522.3
Depreciation and amortization 83.4 34.3 15.9 133.6 3.4 26.4 163.4
Capital expenditures 138.6 30.8 25.6 195.0 4.4 .8 200.2
Year Ended December 31, 1999
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Sales to unaffiliated customers $2,937.3 $824.8 $470.2 $4,232.3 $216.5 $ - $4,448.8
Segment profit (loss)
(for Consolidated,
operating income) 355.9 118.8 77.8 552.5 20.2 (36.4) 536.3
Depreciation and amortization 80.8 29.9 14.7 125.4 6.9 27.7 160.0
Capital expenditures 100.2 36.3 25.0 161.5 9.3 .3 171.1
The reconciliation of segment profit to the Corporation's earnings before
income taxes for each of the three years in the period ended December 31, 2001,
in millions of dollars, is as follows:
Year Ended December 31,
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2001 2000 1999
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Segment profit for total reportable business segments $377.5 $543.3 $552.5
Items excluded from segment profit:
Adjustment of budgeted foreign exchange rates to
actual rates .4 8.4 20.2
Depreciation of Corporate property and amortization
of certain goodwill (25.8) (26.4) (27.7)
Adjustment to businesses' postretirement benefit
expenses booked in consolidation 41.3 36.4 24.8
Adjustment to eliminate net interest and non-operating
expenses from results of certain operations in Brazil,
Venezuela, and Turkey .4 .3 1.0
Other adjustments booked in consolidation directly
related to reportable business segments (1.0) (14.4) (12.4)
Amounts allocated to businesses in arriving at segment
profit in excess of (less than) Corporate center operating
expenses, eliminations, and other amounts identified above (45.2) (25.3) (22.1)
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Operating income before restructuring and exit costs
and gain on sale of business 347.6 522.3 536.3
Restructuring and exit costs 99.8 39.1 -
Gain on sale of business - 20.1 -
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Operating income 247.8 503.3 536.3
Interest expense, net of interest income 84.3 104.2 95.8
Other expense (income) 8.2 (5.5) (.8)
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Earnings before income taxes $155.3 $404.6 $441.3
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Reportable Business Segments
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Power Hardware Fastening Currency Corporate,
Tools & & Home & Assembly Translation Adjustments,
Quarter Ended April 1, 2001 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated
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Sales to unaffiliated customers $634.5 $197.1 $120.0 $ 951.6 $10.4 $ - $ 962.0
Segment profit (loss) (for
Consolidated, operating income) 35.1 17.5 19.0 71.6 .7 .1 72.4
Depreciation and amortization 22.6 10.0 3.6 36.2 .6 6.5 43.3
Capital expenditures 25.3 9.4 3.0 37.7 .6 .5 38.8
Quarter Ended July 1, 2001
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Sales to unaffiliated customers $745.8 $187.6 $124.0 $1,057.4 $(7.7) $ - $1,049.7
Segment profit (loss) (for
Consolidated, operating income) 54.5 8.4 20.3 83.2 (.1) 1.1 84.2
Depreciation and amortization 22.0 8.8 3.8 34.6 (.1) 6.6 41.1
Capital expenditures 19.2 8.2 3.1 30.5 (.1) .2 30.6
Quarter Ended September 30, 2001
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Sales to unaffiliated customers $741.2 $185.2 $118.1 $1,044.5 $(5.3) $ - $1,039.2
Segment profit (loss) (for
Consolidated, operating income) 77.9 16.1 14.5 108.5 .1 (19.6) 89.0
Depreciation and amortization 20.2 8.0 4.0 32.2 (.1) 6.3 38.4
Capital expenditures 20.1 7.3 3.6 31.0 - - 31.0
Quarter Ended December 31, 2001
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Sales to unaffiliated customers $887.4 $196.3 $116.3 $1,200.0 $(5.3) $ - $1,194.7
Segment profit (loss) (for
Consolidated, operating income
before restructuring and exit costs) 82.5 17.1 14.6 114.2 (.3) (11.9) 102.0
Depreciation and amortization 20.4 6.9 2.9 30.2 - 6.4 36.6
Capital expenditures 20.5 8.2 5.7 34.4 (.1) .1 34.4
Quarter Ended April 2, 2000
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Sales to unaffiliated customers $660.8 $196.6 $129.1 $ 986.5 $36.7 $ - $1,023.2
Segment profit (loss) (for
Consolidated, operating income
before gain on sale of business) 53.2 19.1 21.9 94.2 3.4 (6.1) 91.5
Depreciation and amortization 20.5 9.8 3.8 34.1 1.5 6.7 42.3
Capital expenditures 50.2 7.1 6.7 64.0 2.4 .2 66.6
Quarter Ended July 2, 2000
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Sales to unaffiliated customers $749.0 $207.7 $124.3 $1,081.0 $25.2 $ - $1,106.2
Segment profit (loss) (for
Consolidated, operating income) 100.0 27.1 21.8 148.9 2.7 (9.0) 142.6
Depreciation and amortization 20.6 9.0 4.1 33.7 .8 6.6 41.1
Capital expenditures 23.7 7.7 5.9 37.3 .8 .3 38.4
Quarter Ended October 1, 2000
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Sales to unaffiliated customers $763.9 $209.7 $119.8 $1,093.4 $17.7 $ - $1,111.1
Segment profit (loss) (for
Consolidated, operating income) 100.7 30.8 19.2 150.7 1.5 (4.0) 148.2
Depreciation and amortization 21.2 7.5 4.0 32.7 .7 6.5 39.9
Capital expenditures 30.8 7.6 5.3 43.7 .9 .1 44.7
Quarter Ended December 31, 2000
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Sales to unaffiliated customers $898.7 $217.5 $116.1 $1,232.3 $ 2.1 $ - $1,234.4
Segment profit (loss) (for
Consolidated, operating income
before restructuring and exit costs) 95.5 36.5 17.5 149.5 .8 (10.3) 140.0
Depreciation and amortization 21.1 8.0 4.0 33.1 .4 6.6 40.1
Capital expenditures 33.9 8.4 7.7 50.0 .3 .2 50.5
The reconciliation of segment profit to the Corporation's earnings (loss)
before income taxes for each of the quarters in the years ended December 31,
2001 and 2000, in millions of dollars, is as follows:
Quarter Ended
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April 1, July 1, September 30, December 31,
2001 2001 2001 2001
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Segment profit for total reportable business segments $71.6 $83.2 $108.5 $114.2
Items excluded from segment profit:
Adjustment of budgeted foreign exchange rates to
actual rates .7 (.1) .1 (.3)
Depreciation of Corporate property and amortization
of certain goodwill (6.5) (6.6) (6.3) (6.4)
Adjustment to businesses' postretirement benefit
expenses booked in consolidation 11.0 9.9 9.4 11.0
Adjustment to eliminate net interest and non-operating
expenses from results of certain operations in Brazil,
Venezuela, and Turkey .2 .1 .1 -
Other adjustments booked in consolidation directly
related to reportable business segments 4.4 .6 (8.3) 2.3
Amounts allocated to businesses in arriving at segment
profit in excess of (less than) Corporate center operating
expenses, eliminations, and other amounts identified above (9.0) (2.9) (14.5) (18.8)
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Operating income before restructuring and exit costs 72.4 84.2 89.0 102.0
Restructuring and exit costs - - - 99.8
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Operating income 72.4 84.2 89.0 2.2
Interest expense, net of interest income 22.4 22.7 20.4 18.8
Other expense 2.7 1.9 2.7 .9
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Earnings (loss) before income taxes $47.3 $59.6 $ 65.9 $(17.5)
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Quarter Ended
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April 2, July 2, October 1, December 31,
2000 2000 2000 2000
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Segment profit for total reportable business segments $ 94.2 $148.9 $150.7 $149.5
Items excluded from segment profit:
Adjustment of budgeted foreign exchange rates to
actual rates 3.4 2.7 1.5 .8
Depreciation of Corporate property and amortization
of certain goodwill (6.7) (6.6) (6.5) (6.6)
Adjustment to businesses' postretirement benefit
expenses booked in consolidation 9.5 8.7 9.0 9.2
Adjustment to eliminate net interest and non-operating
expenses from results of certain operations in Brazil,
Venezuela, and Turkey .1 - .1 .1
Other adjustments booked in consolidation directly
related to reportable business segments (7.0) (5.7) (2.0) .3
Amounts allocated to businesses in arriving at segment
profit in excess of (less than) Corporate center operating
expenses, eliminations, and other amounts identified above (2.0) (5.4) (4.6) (13.3)
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Operating income before restructuring and exit costs
and gain on sale of business 91.5 142.6 148.2 140.0
Restructuring and exit costs - - - 39.1
Gain on sale of business 20.1 - - -
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Operating income 111.6 142.6 148.2 100.9
Interest expense, net of interest income 23.8 25.4 26.5 28.5
Other expense (income) .4 (1.4) (1.6) (2.9)
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Earnings before income taxes $ 87.4 $118.6 $123.3 $ 75.3
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Basis of Presentation:
The Corporation operates in three reportable business segments: Power Tools
and Accessories, Hardware and Home Improvement, and Fastening and Assembly
Systems. The Power Tools and Accessories segment has worldwide responsibility
for the manufacture and sale of consumer and professional power tools and
accessories, electric cleaning and lighting products, and electric lawn and
garden tools, as well as for product service. In addition, the Power Tools and
Accessories segment has responsibility for the sale of security hardware to
customers in Mexico, Central America, the Caribbean, and South America; for the
sale of plumbing products to customers outside the United States and Canada; and
for sales of household products. The Hardware and Home Improvement segment has
worldwide responsibility for the manufacture and sale of security hardware
(except for the sale of security hardware in Mexico, Central America, the
Caribbean, and South America). It also has responsibility for the manufacture of
plumbing products and for the sale of plumbing products to customers in the
United States and Canada. The Fastening and Assembly Systems segment has
worldwide responsibility for the manufacture and sale of fastening and assembly
systems.
The Corporation assesses the performance of its reportable business
segments based upon a number of factors, including segment profit. In general,
segments follow the same accounting policies as those described in Note 1 of the
Corporation's Annual Report on Form 10-K for the year ended December 31, 2001,
except with respect to foreign currency translation and except as further
indicated below. The financial statements of a segment's operating units located
outside of the United States, except those units operating in highly
inflationary economies, are generally measured using the local currency as the
functional currency. For these units located outside of the United States,
segment assets and elements of segment profit are translated using budgeted
rates of exchange. Budgeted rates of exchange are established annually and, once
established, all prior period segment data is restated to reflect the current
year's budgeted rates of exchange. The amounts included in the preceding segment
tables under the captions "Reportable Business Segments" and "Corporate,
Adjustments, & Eliminations" are reflected at the Corporation's budgeted
exchange rates for 2002. The amounts included in the preceding segment tables
under the caption "Currency Translation Adjustments" represent the difference
between consolidated amounts determined using those budgeted rates of exchange
and those determined based upon the rates of exchange applicable under
accounting principles generally accepted in the United States.
Segment profit excludes interest income and expense, non-operating income
and expense, goodwill amortization (except for the amortization of goodwill
associated with certain acquisitions made by the Power Tools and Accessories and
Fastening and Assembly Systems segments), adjustments to eliminate intercompany
profit in inventory, and income tax expense. In addition, segment profit
excludes restructuring and exit costs and the gain on sale of business. For
certain operations located in Brazil, Venezuela, and Turkey, segment profit is
reduced by net interest expense and non-operating expenses. In determining
segment profit, expenses relating to pension and other postretirement benefits
are based solely upon estimated service costs. Corporate expenses, as well as
certain centrally managed expenses, are allocated to each reportable segment
based upon budgeted amounts. While sales and transfers between segments are
accounted for at cost plus a reasonable profit, the effects of intersegment
sales are excluded from the computation of segment profit. Intercompany profit
in inventory is excluded from segment assets and is recognized as a reduction of
cost of sales by the selling segment when the related inventory is sold to an
unaffiliated customer. Because the Corporation compensates the management of its
various businesses on, among other factors, segment profit, the Corporation may
elect to record certain segment-related expense items of an unusual or
non-recurring nature in consolidation rather than reflect such items in segment
profit. In addition, certain segment-related items of income or expense may be
recorded in consolidation in one period and transferred to the various segments
in a later period.