NEW BRITAIN, Conn.,
Jan. 22, 2019 /PRNewswire/
-- Stanley Black & Decker (NYSE: SWK) today
announced full year and fourth quarter 2018 financial results.
- Full Year Revenues Totaled $14.0
Billion, Up 8% Versus Prior Year, With 5% Organic
Growth
- Full Year Operating Margin Rate Was 12.4%; Excluding Charges,
Full Year Operating Margin Rate Remained Strong At 13.6% Despite
$370 Million In External
Headwinds
- Full Year Diluted GAAP EPS Was $4.26; Excluding Charges, Full Year Diluted EPS
Was $8.15, Up 9% Versus Prior Year,
As Price, Lower Expenses And Volume Leverage More Than Offset The
Impacts Of Commodity Inflation, Currency And Tariffs
- 4Q'18 Revenues Totaled $3.6
Billion, Up 5% Versus Prior Year, Including Robust Organic
Growth Of 6%
- 4Q'18 Diluted GAAP EPS Was ($0.45); Excluding Charges, 4Q'18 Diluted EPS Was
$2.11
- Expect 2019 Full Year Diluted GAAP EPS Of $7.45 To $7.65;
Adjusted EPS Of $8.45 - $8.65; 2019 Free Cash Flow Conversion Expected To
Approximate 85% - 90%.
4Q'18 Key Points:
- Net sales for the quarter were $3.6
billion, up 5% versus prior year, as volume (+5%),
acquisitions (+2%) and price (+1%) more than offset currency
(-3%).
- Gross margin rate for the quarter was 33.3%. Excluding
charges, the rate was down 280 basis points from prior year as
volume leverage, productivity and price were more than offset by
external headwinds, including commodity inflation, foreign exchange
and tariffs.
- SG&A expenses were 21.5% of sales. Excluding charges,
SG&A expenses were 20.1% of sales compared to 22.7% in 4Q'17,
primarily reflecting prudent cost management.
- Restructuring charges for the quarter were $102.2 million primarily related to the cost
reduction program. Excluding the 4Q'18 cost reduction
program, restructuring charges for the quarter were $0.4 million compared to $4.9 million in 4Q'17.
- Tax rate was 129.7%, which primarily reflects a net charge due
to the finalization of the impact of U.S. tax reform.
Excluding charges, tax rate was 17.3%.
- Working capital turns for the quarter were 8.8, down 0.3 turns
from prior year primarily as a result of carrying higher levels of
inventory associated with the Craftsman rollout.
- Free cash flow conversion for the full year was 119%.
Excluding charges associated with U.S. tax reform, free cash flow
conversion was approximately 90%.
James M. Loree, President &
CEO, commented, "Stanley Black &
Decker delivered a strong performance in 2018, overcoming
approximately $370 million in
external headwinds and an increasingly dynamic operating
environment. Our team delivered total revenue growth of 8% with
above-market organic growth of 5%, adjusted earnings per share
expansion of 9% and solid free cash flow conversion. From a
strategic capital deployment perspective, we repurchased
$500 million in shares and announced
plans to expand our position in the lawn and garden space by
partnering with MTD and adding IES Attachments to our industrial
portfolio.
"We continue to be well-positioned to deliver share gains as we
leverage our robust growth catalysts, which include the continued
Craftsman brand rollout, Lenox and Irwin revenue synergies,
FlexVolt, e-commerce, emerging markets and new innovations.
The organization is keenly focused on margin accretion as we
realize the benefits from our $250
million cost reduction program, execute price recovery
actions in response to external headwinds, and implement an array
of new margin enhancement
initiatives.
"As we head into 2019, our seasoned management team will act
with agility and speed to respond to the underlying operating
environment by leveraging our SFS 2.0 operating system, while
deploying our growth and margin initiatives to deliver a successful
year and continue to make progress against the 22/22 vision."
4Q'18 Segment
Results
|
|
($ in M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit Ex-
Charges1
|
Profit
Rate
|
Profit Rate
Ex-
Charges1
|
|
|
|
|
|
|
|
Tools &
Storage
|
$2,582
|
$382.8
|
$14.5
|
$397.3
|
14.8%
|
15.4%
|
|
|
|
|
|
|
|
Industrial
|
$549
|
$68.4
|
$3.9
|
$72.3
|
12.5%
|
13.2%
|
|
|
|
|
|
|
|
Security
|
$504
|
$30.2
|
$30.4
|
$60.6
|
6.0%
|
12.0%
|
1 See
Merger And Acquisition (M&A) Related Charges And
Other On Page 5
|
- Tools & Storage net sales increased 4% versus 4Q'17 due to
volume (+5%), and price (+2%) partially offset by currency
(-3%). Each region contributed to the strong organic growth
for the quarter with North America
+10%, Europe +4% and emerging
markets +3%. North America organic growth was driven by
continued benefits from new product innovation, the rollout of the
Craftsman brand and price realization. Europe growth was supported by new products
and successful commercial actions overcoming weaker market
conditions. Emerging markets growth was attributable to
mid-price-point product releases, strong e-commerce growth,
Lenox/Irwin revenue synergies and pricing actions, which were
partially offset by severe market contractions in Argentina and Turkey. Overall Tools
& Storage segment profit rate was 15.4%, excluding charges,
down from the 4Q'17 rate of 16.3%, as the benefits from volume
leverage, pricing and cost control were more than offset by the
impact from currency, commodity inflation and tariffs.
- Industrial net sales increased 14% versus 4Q'17 as acquisitions
(+12%), and volume (+4%) were partially offset by currency
(-2%). Engineered Fastening organic revenues were up 1% due
to higher systems shipments and fastener penetration gains in the
automotive business which overcame a decline in global light
vehicle production. Infrastructure organic revenues were up 18%
primarily due to stronger North American pipeline project activity
in Oil & Gas as well as higher Hydraulic Tools volumes.
Overall Industrial segment profit rate was 13.2%, excluding
charges, down from the 4Q'17 rate of 15.4%, as productivity gains
and cost control were more than offset by commodity inflation, the
modestly dilutive impact from the acquisition of Nelson Fasteners
and unfavorable mix.
- Security net sales declined 1% versus 4Q'17 as bolt-on
commercial electronic security acquisitions (+3%) and price (+1%)
were more than offset by currency (-2%) and lower volume (-3%).
North America organic growth declined 2% as higher volumes
within automatic doors and healthcare were offset by lower
installations in commercial electronic security. Europe declined 2% organically as growth
within Sweden was offset by
weakness in the UK and France.
Overall Security segment profit rate, excluding charges, was
12.0%, which was up 100 basis points versus the prior year, as a
focus on cost containment was partially offset by continued
investments to support the business transformation in commercial
electronic security.
2019 Outlook
Donald Allan Jr., Executive Vice
President and CFO, commented, "During 2018 we successfully
navigated dynamic end markets and overcame multiple external
headwinds while delivering a strong overall financial
performance. We are preparing for a similar operating
environment in 2019, and expect to generate above-market organic
growth of approximately 4%, adjusted earnings per share expansion
of 4% - 6% versus prior year and continued strong free cash flow
generation, which will primarily be allocated toward achieving our
deleveraging objectives in 2019."
Management expects its 2019 EPS to be $7.45 - $7.65 on a
GAAP basis and $8.45 - $8.65 on an adjusted basis. Free cash flow
conversion is expected to approximate 85% - 90%, as we make the
payments associated with the 4Q'18 cost reduction
program.
The following represents key 2019 adjusted EPS assumptions:
- Organic volume (~+$0.30 to +$0.40)
- Benefit from the cost reduction program, net of modest
investments (~ +$1.05)
- Incremental tariffs, commodity inflation and currency partially
offset by pricing (~ -$0.90 to
-$1.00)
- Tax rate to approximate 17.5% (~ -$0.15)
- The benefits from the MTD partnership and lower shares
partially offset by higher interest expense (~+$0.10)
Allan continued, "The organization remains focused on
operational excellence and strong day-to-day execution in alignment
with our SFS 2.0 operating system. The Company is developing
and executing a new set of value creating initiatives intended to
help offset external headwinds, withstand continued volatility and
support margin expansion. We are confident that we are
well-positioned to deliver sustained above-market organic growth
with operating leverage, strong free cash flow conversion and
top-quartile shareholder returns over the
long-term."
Merger And Acquisition ("M&A") Related Charges And
Other
Total M&A related and other charges in 4Q'18 were
$161.9 million, primarily related to
restructuring and deal and integration costs. Gross margin
included $1.1 million of these
charges while SG&A included $52.3
million. Other, net and Restructuring included
$6.7 million and $101.8 million of these charges,
respectively.
The Company will host a conference call with investors today,
January 22, 2019, at 8:00 am ET. A slide presentation which will
accompany the call will be available at
www.stanleyblackanddecker.com and will remain available after the
call.
The call will be accessible by telephone within the U.S. at
(877) 930-8285, from outside the U.S. at +1 (253) 336-8297, and via
the Internet at www.stanleyblackanddecker.com. To participate,
please register on the website at least fifteen minutes prior to
the call and download and install any necessary audio
software. Please use the conference identification number
7675217. A replay will also be available two hours after the call
and can be accessed at (855) 859-2056 or +1 (404) 537-3406 using
the passcode 7675217. The replay will also be available as a
podcast within 24 hours and can be accessed on our website and via
iTunes.
Stanley Black & Decker, an
S&P 500 company, is a diversified global provider of hand
tools, power tools and related accessories, electronic security
solutions, healthcare solutions, engineered fastening systems, and
more. Learn more at www.stanleyblackanddecker.com.
Investor Contacts:
Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833
Cort Kaufman
Director, Investor Relations
cort.kaufman@sbdinc.com
(860) 515-2741
Media Contacts:
Shannon Lapierre
Vice President, Communications & Public Relations
shannon.lapierre@sbdinc.com
(860) 827-3575
Organic sales growth is defined as total sales growth less the
sales of companies acquired and divested in the past twelve months
and any foreign currency impacts. Operating margin is defined as
sales less cost of sales and selling, general and administrative
expenses. Management uses operating margin and its percentage
of net sales as key measures to assess the performance of the
Company as a whole, as well as the related measures at the segment
level. Free cash flow is defined as cash flow from operations less
capital and software expenditures. Management considers free cash
flow an important indicator of its liquidity, as well as its
ability to fund future growth and to provide a return to the
shareowners. Free cash flow does not include deductions for
mandatory debt service, other borrowing activity, discretionary
dividends on the Company's common stock and business acquisitions,
among other items. Free cash flow conversion is defined as
free cash flow divided by net income. Adjusted free cash flow
conversion excludes tax charges related to recently enacted U.S.
tax legislation. The normalized statement of operations and
business segment information, as reconciled to GAAP on pages 12 to
15 for 2018 and 2017, are considered relevant to aid analysis of
the Company's margin and earnings results aside from the material
impact of the acquisition-related charges, non-cash fair value
adjustment, gains or losses on sales of businesses, environmental
remediation settlement, cost reduction program, and tax charges
related to recently enacted U.S. tax legislation, as
applicable.
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are not historical,
including but not limited to those regarding the Company's ability
to deliver: (i) financial performance in-line with 2019 guidance
and (ii) sustained above-market organic growth with operating
leverage, strong free cash flow conversion and top-quartile
shareholder returns over the long-term, (collectively, the
"Results"); are "forward-looking statements" and subject to risk
and uncertainty.
The Company's ability to deliver the Results as described above
is based on current expectations and involves inherent risks and
uncertainties, including factors listed below and other factors
that could delay, divert, or change any of them, and could cause
actual outcomes and results to differ materially from current
expectations. In addition to the risks, uncertainties and other
factors discussed in this press release, the risks, uncertainties
and other factors that could cause or contribute to actual results
differing materially from those expressed or implied in the
forward-looking statements include, without limitation, those set
forth under Item 1A Risk Factors of the Company's Annual Report on
Form 10-K and any material changes thereto set forth in any
subsequent Quarterly Reports on Form 10-Q, or those contained in
the Company's other filings with the Securities and Exchange
Commission, and those set forth below.
The Company's ability to deliver the Results is dependent, or
based, upon: (i) the Company's ability to deliver successful
innovation in its products and services; (ii) the Company's ability
to invest in product, brand and commercialization of the Craftsman
brand and the continued successful integration of Nelson Fasteners;
(iii) the Company's ability to deliver organic growth; (iv) the
Company's ability to limit the impact from: commodity inflation;
foreign currency headwinds; and the impact of any tariffs on
imported goods ; (v) closed acquisitions, cost and price actions
and improved productivity; and share repurchases (vi) core
(non M&A) restructuring charges; (vii) 2019 core tax rate;
(viii) the Company's ability to identify, successfully close and
integrate appropriate acquisition opportunities, within desired
timeframes at reasonable cost, including the IES transaction ; (ix)
successful integration of existing and any newly acquired
businesses and formation of new business platforms; (x) the
continued acceptance of technologies used in the Company's products
and services, including DEWALT FLEXVOLT™ product; (xi) the
Company's ability to manage existing franchisee relationships;
(xii) the Company's ability to minimize costs associated with any
sale or discontinuance of a business or product line, including any
severance, restructuring, legal or other costs; (xiii) the proceeds
realized with respect to any business or product line disposals;
(xiv) the extent of any asset impairments with respect to any
businesses or product lines that are sold or discontinued; (xv) the
success of the Company's efforts to manage freight costs, steel and
other commodity costs as well as capital expenditures; (xvi) the
Company's ability to sustain or increase prices in order to, among
other things, offset or mitigate the impact of steel, aluminum,
freight, energy, non-ferrous commodity and other commodity costs
and any inflation increases and/or currency impacts; (xvii) the
Company's ability to generate free cash flow and maintain a strong
debt to capital ratio; (xviii) the Company's ability to identify
and effectively execute productivity improvements and cost
reductions, while minimizing any associated restructuring charges;
(xix) the Company's ability to obtain favorable settlement of tax
audits; (xx) the ability of the Company to generate earnings
sufficient to realize future income tax benefits during periods
when temporary differences become deductible; (xxi) the continued
ability of the Company to access credit markets under satisfactory
terms; (xxii) the Company's ability to negotiate satisfactory price
and payment terms under which the Company buys and sells goods,
services, materials and products; (xxiii) the Company's ability to
successfully develop, market and achieve sales from new products
and services; and (xxiv) the ability of the Company to proactively
manage the impact of the legislative changes brought about by the
U.S. Tax Cuts and Jobs Act.
The Company's ability to deliver the Results is also dependent
upon: (i) the success of the Company's marketing and sales efforts,
including the ability to develop and market new and innovative
products at the right price points in both existing and new
markets; (ii) the ability of the Company to maintain or improve
production rates in the Company's manufacturing facilities, respond
to significant changes in product demand and fulfill demand for new
and existing products; (iii) the Company's ability to continue
improvements in working capital through effective management of
accounts receivable and inventory levels; (iv) the ability to
continue successfully managing and defending claims and litigation;
(v) the success of the Company's efforts to mitigate any adverse
earnings impact resulting from significant currency fluctuations;
(vi) the geographic distribution of the Company's earnings; (vii)
the commitment to and success of the Stanley Fulfillment System
including, core innovation, breakthrough innovation, digital and
commercial excellence and functional transformation; and (viii)
successful implementation with expected results of cost reduction
programs.
The Company's ability to achieve the Results will also be
affected by external factors. These external factors include:
challenging global geopolitical and macroeconomic environment,
possibly including impact from "Brexit" or other similar actions
from other EU member states; the economic environment of emerging
markets, particularly Latin
America, Russia,
China and Turkey; pricing pressure and other changes
within competitive markets; the continued consolidation of
customers particularly in consumer channels; inventory management
pressures on the Company's customers; the impact tightened credit
markets may have on the Company or its customers or suppliers; the
extent to which the Company has to write-off accounts receivable or
assets or experiences supply chain disruptions in connection with
bankruptcy filings by customers or suppliers; increasing
competition; changes in laws, regulations and policies that affect
the Company, including, but not limited to trade, monetary, tax and
fiscal policies and laws; the timing and extent of any inflation or
deflation; the impact of poor weather conditions on sales; currency
exchange fluctuations; the impact of dollar/foreign currency
exchange and interest rates on the competitiveness of products and
the Company's debt program; the strength of the U.S. and European
economies; the impact from demand changes within world-wide markets
associated with homebuilding and remodeling; the impact of events
that cause or may cause disruption in the Company's supply,
manufacturing, distribution and sales networks such as war,
terrorist activities, and political unrest, including hostilities
on the Korean Peninsula; and recessionary or expansive trends in
the economies of the world in which the Company operates. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that
may arise after the date hereof.
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
3,634.7
|
|
$
3,464.2
|
|
$ 13,982.4
|
|
$ 12,966.6
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,424.0
|
|
2,218.2
|
|
9,080.5
|
|
8,188.3
|
|
Gross
margin
|
|
1,210.7
|
|
1,246.0
|
|
4,901.9
|
|
4,778.3
|
|
% of Net
Sales
|
|
33.3%
|
|
36.0%
|
|
35.1%
|
|
36.9%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
781.4
|
|
795.8
|
|
3,171.7
|
|
2,999.2
|
|
% of Net
Sales
|
|
21.5%
|
|
23.0%
|
|
22.7%
|
|
23.1%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
429.3
|
|
450.2
|
|
1,730.2
|
|
1,779.1
|
|
% of Net
Sales
|
|
11.8%
|
|
13.0%
|
|
12.4%
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
Other -
net
|
|
50.3
|
|
52.9
|
|
287.0
|
|
269.2
|
|
Loss (gain) on sales
of businesses
|
|
-
|
|
1.0
|
|
0.8
|
|
(264.1)
|
|
Pension
settlement
|
|
-
|
|
(0.6)
|
|
-
|
|
12.2
|
|
Restructuring
charges
|
|
102.2
|
|
8.6
|
|
160.3
|
|
51.5
|
|
Income from
operations
|
|
276.8
|
|
388.3
|
|
1,282.1
|
|
1,710.3
|
|
|
|
|
|
|
|
|
|
|
|
Interest -
net
|
|
55.0
|
|
46.6
|
|
209.2
|
|
182.5
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
INCOME TAXES
|
|
221.8
|
|
341.7
|
|
1,072.9
|
|
1,527.8
|
|
Income
taxes
|
|
287.7
|
|
60.6
|
|
427.0
|
|
300.9
|
NET (LOSS)
EARNINGS
|
|
(65.9)
|
|
281.1
|
|
645.9
|
|
1,226.9
|
|
|
|
|
|
|
|
|
|
|
|
Less: net gain (loss)
attributable to non-controlling interests
|
0.8
|
|
(0.4)
|
|
0.6
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS
|
$
(66.7)
|
|
$
281.5
|
|
$
645.3
|
|
$
1,227.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.45)
|
|
$
1.88
|
|
$
4.33
|
|
$
8.20
|
|
Diluted
|
|
$
(0.45)
|
|
$
1.84
|
|
$
4.26
|
|
$
8.05
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE
|
|
$
0.66
|
|
$
0.63
|
|
$
2.58
|
|
$
2.42
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING (in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
147,582
|
|
150,080
|
|
148,919
|
|
149,629
|
|
Diluted
|
|
147,582
|
|
153,412
|
|
151,643
|
|
152,449
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
December
29,
|
|
December
30,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
311.4
|
|
$
637.5
|
|
Accounts and notes
receivable, net
|
|
1,607.8
|
|
1,628.7
|
|
Inventories,
net
|
|
2,373.5
|
|
2,018.4
|
|
Other current
assets
|
|
276.7
|
|
274.4
|
|
Total current assets
|
|
4,569.4
|
|
4,559.0
|
|
Property, plant and
equipment, net
|
|
1,915.2
|
|
1,742.5
|
|
Goodwill and other
intangibles, net
|
|
12,441.1
|
|
12,283.5
|
|
Other
assets
|
|
482.3
|
|
512.7
|
|
Total assets
|
|
$
19,408.0
|
|
$
19,097.7
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
376.1
|
|
$
5.3
|
|
Current maturities of
long-term debt
|
|
2.5
|
|
977.5
|
|
Accounts
payable
|
|
2,233.2
|
|
2,021.0
|
|
Accrued
expenses
|
|
1,339.0
|
|
1,387.7
|
|
Total current liabilities
|
|
3,950.8
|
|
4,391.5
|
|
Long-term
debt
|
|
3,819.8
|
|
2,828.2
|
|
Other long-term
liabilities
|
|
3,757.4
|
|
3,573.0
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
7,876.3
|
|
8,302.2
|
|
Non-controlling
interests' equity
|
|
3.7
|
|
2.8
|
|
Total liabilities and shareowners' equity
|
$
19,408.0
|
|
$
19,097.7
|
STANLEY
BLACK & DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH
FLOW ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
|
|
$
(65.9)
|
|
$
281.1
|
|
$
645.9
|
|
$ 1,226.9
|
|
|
Depreciation and
amortization
|
|
|
125.5
|
|
122.7
|
|
506.5
|
|
460.7
|
|
|
Loss (gain) on sales
of businesses
|
|
|
-
|
|
1.0
|
|
0.8
|
|
(264.1)
|
|
|
Changes in working
capital1
|
|
|
779.2
|
|
287.3
|
|
(237.9)
|
|
(966.6)
|
|
|
Other
|
|
|
|
382.0
|
|
23.1
|
|
345.6
|
|
211.6
|
|
|
Net cash provided
by operating activities
|
|
|
1,220.8
|
|
715.2
|
|
1,260.9
|
|
668.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(164.7)
|
|
(164.5)
|
|
(492.1)
|
|
(442.4)
|
|
|
Proceeds (payments)
from sales of businesses, net of cash sold
|
|
|
-
|
|
11.6
|
|
(3.0)
|
|
756.9
|
|
|
Business
acquisitions, net of cash acquired
|
|
|
(2.7)
|
|
(1.4)
|
|
(524.6)
|
|
(2,583.5)
|
|
|
Net investment hedge
settlements
|
|
|
10.5
|
|
8.3
|
|
25.7
|
|
(23.3)
|
|
|
Proceeds related to
deferred purchase price receivable
|
|
|
-
|
|
235.6
|
|
-
|
|
704.7
|
|
|
Payments on long-term
debt
|
|
|
(977.5)
|
|
-
|
|
(977.5)
|
|
(2.8)
|
|
|
Proceeds from debt
issuance, net of fees
|
|
|
990.0
|
|
-
|
|
990.0
|
|
-
|
|
|
Stock purchase
contract fees
|
|
|
(10.0)
|
|
(10.1)
|
|
(40.3)
|
|
(20.0)
|
|
|
Net short-term
(repayments) borrowings
|
|
|
(1,011.9)
|
|
(575.9)
|
|
433.2
|
|
(76.7)
|
|
|
Premium paid on
equity option
|
|
|
-
|
|
-
|
|
(57.3)
|
|
(25.1)
|
|
|
Proceeds from
issuance of preferred stock
|
|
|
-
|
|
-
|
|
-
|
|
727.5
|
|
|
Proceeds from
issuances of common stock
|
|
|
5.7
|
|
43.3
|
|
38.5
|
|
90.8
|
|
|
Purchases of common
stock for treasury
|
|
|
(12.6)
|
|
(12.5)
|
|
(527.1)
|
|
(28.7)
|
|
|
Cash dividends on
common stock
|
|
|
(98.4)
|
|
(95.0)
|
|
(384.9)
|
|
(362.9)
|
|
|
Effect of exchange
rate changes on cash
|
|
|
0.2
|
|
(0.5)
|
|
(53.9)
|
|
81.0
|
|
|
Other
|
|
|
|
(6.7)
|
|
17.7
|
|
(31.3)
|
|
13.9
|
|
|
Net cash used in
investing and financing activities
|
|
|
(1,278.1)
|
|
(543.4)
|
|
(1,604.6)
|
|
(1,190.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(57.3)
|
|
171.8
|
|
(343.7)
|
|
(522.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
368.7
|
|
483.3
|
|
655.1
|
|
1,177.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
311.4
|
|
$
655.1
|
|
$
311.4
|
|
$
655.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Operating cash
flow
|
|
|
$
1,220.8
|
|
$
715.2
|
|
$ 1,260.9
|
|
$
668.5
|
|
Less: capital and
software expenditures
|
|
|
(164.7)
|
|
(164.5)
|
|
(492.1)
|
|
(442.4)
|
|
Free cash flow
(before dividends)
|
|
|
$
1,056.1
|
|
$
550.7
|
|
$
768.8
|
|
$
226.1
|
|
Impact of recently
adopted accounting standards3
|
|
|
|
|
235.6
|
|
|
|
750.1
|
|
Free cash flow
(before dividends), as previously reported3
|
|
|
|
|
$
786.3
|
|
|
|
$
976.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
29, 2018
|
|
December
30, 2017
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
311.4
|
|
$
637.5
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
-
|
|
17.6
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
$
311.4
|
|
$
655.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Working capital is
comprised of accounts receivable, inventory, accounts payable and
deferred revenue.
|
2
|
Free cash flow is
defined as cash flow from operations less capital and software
expenditures. Management considers free cash flow an important
measure of its liquidity, as well as its ability to fund future
growth and to provide a return to the shareowners. Free cash flow
does not include deductions for mandatory debt service, other
borrowing activity, discretionary dividends on the Company's common
stock and business acquisitions, among other
items.
|
3
|
Free cash flow as
reported was $786.3 million and $976.2 million for the three and
twelve months ended December 30, 2017, respectively. As a
result of the adoption of Accounting Standards Update ("ASU")
2016-15, "Classification of Certain Cash Receipts and Cash
Payments" and ASU 2016-18, "Restricted Cash," free cash flow has
decreased by $235.6 million and $750.1 million for the three and
twelve months ended December 30, 2017, respectively.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$ 2,582.4
|
|
$ 2,473.5
|
|
$ 9,814.0
|
|
$ 9,045.0
|
|
Industrial
|
|
548.5
|
|
480.3
|
|
2,187.8
|
|
1,974.3
|
|
Security
|
|
503.8
|
|
510.4
|
|
1,980.6
|
|
1,947.3
|
|
Total
|
|
$
3,634.7
|
|
$
3,464.2
|
|
$ 13,982.4
|
|
$ 12,966.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
382.8
|
|
$
388.4
|
|
$ 1,439.0
|
|
$ 1,438.9
|
|
Industrial
|
|
68.4
|
|
73.9
|
|
322.8
|
|
345.9
|
|
Security
|
|
30.2
|
|
55.2
|
|
171.2
|
|
211.7
|
|
Segment
Profit
|
|
481.4
|
|
517.5
|
|
1,933.0
|
|
1,996.5
|
|
Corporate
Overhead
|
|
(52.1)
|
|
(67.3)
|
|
(202.8)
|
|
(217.4)
|
|
Total
|
|
$
429.3
|
|
$
450.2
|
|
$ 1,730.2
|
|
$ 1,779.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.8%
|
|
15.7%
|
|
14.7%
|
|
15.9%
|
|
Industrial
|
|
12.5%
|
|
15.4%
|
|
14.8%
|
|
17.5%
|
|
Security
|
|
6.0%
|
|
10.8%
|
|
8.6%
|
|
10.9%
|
|
Segment
Profit
|
|
13.2%
|
|
14.9%
|
|
13.8%
|
|
15.4%
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
(1.9%)
|
|
(1.5%)
|
|
(1.7%)
|
|
Total
|
|
11.8%
|
|
13.0%
|
|
12.4%
|
|
13.7%
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2018
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other1
|
|
Normalized4
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,210.7
|
|
$
1.1
|
|
$
1,211.8
|
|
% of Net
Sales
|
|
33.3%
|
|
|
|
33.3%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
781.4
|
|
(52.3)
|
|
$
729.1
|
|
% of Net
Sales
|
|
21.5%
|
|
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
429.3
|
|
53.4
|
|
482.7
|
|
% of Net
Sales
|
|
11.8%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
221.8
|
|
161.9
|
|
383.7
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
287.7
|
|
(221.5)
|
|
66.2
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
attributable to common shareowners
|
(66.7)
|
|
383.4
|
|
316.7
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share of common stock2
|
$
(0.45)
|
|
$
2.56
|
|
$
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to integration and consulting
costs, a cost reduction program, and a tax charge related to
recently enacted U.S. tax legislation.
|
2
|
The normalized
diluted earnings per share for the fourth quarter of 2018 is
calculated using diluted weighted-average shares outstanding of
149.849 million.
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2017
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other3
|
|
Normalized4
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,246.0
|
|
$
4.3
|
|
$
1,250.3
|
|
% of Net
Sales
|
|
36.0%
|
|
|
|
36.1%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
795.8
|
|
(10.9)
|
|
$
784.9
|
|
% of Net
Sales
|
|
23.0%
|
|
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
450.2
|
|
15.2
|
|
465.4
|
|
% of Net
Sales
|
|
13.0%
|
|
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
341.7
|
|
27.1
|
|
368.8
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
60.6
|
|
(26.1)
|
|
34.5
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
281.5
|
|
53.2
|
|
334.7
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.84
|
|
$
0.34
|
|
$
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, gains or losses on sales of
businesses, and a net tax charge related to recently enacted U.S.
tax legislation.
|
4
|
The normalized 2018
and 2017 information, as reconciled to GAAP above, is considered
relevant to aid analysis of the Company's margin and earnings
results aside from the material impact of the acquisition-related
charges, gains or losses on sales of businesses, cost reduction
program, and tax charges related to recently enacted U.S. tax
legislation, as applicable.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2018
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
4,901.9
|
|
$
14.9
|
|
$
4,916.8
|
|
% of Net
Sales
|
|
35.1%
|
|
|
|
35.2%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
3,171.7
|
|
(157.8)
|
|
$
3,013.9
|
|
% of Net
Sales
|
|
22.7%
|
|
|
|
21.6%
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,730.2
|
|
172.7
|
|
1,902.9
|
|
% of Net
Sales
|
|
12.4%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,072.9
|
|
399.1
|
|
1,472.0
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
427.0
|
|
(191.5)
|
|
235.5
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
645.3
|
|
590.6
|
|
1,235.9
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
4.26
|
|
$
3.89
|
|
$
8.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, a non-cash fair value adjustment,
an environmental remediation settlement, a cost reduction program,
and tax charges related to recently enacted U.S. tax
legislation.
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2017
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
4,778.3
|
|
$
46.8
|
|
$
4,825.1
|
|
% of Net
Sales
|
|
36.9%
|
|
|
|
37.2%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,999.2
|
|
(37.7)
|
|
$
2,961.5
|
|
% of Net
Sales
|
|
23.1%
|
|
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,779.1
|
|
84.5
|
|
1,863.6
|
|
% of Net
Sales
|
|
13.7%
|
|
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,527.8
|
|
(107.8)
|
|
1,420.0
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
300.9
|
|
(17.3)
|
|
283.6
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
1,227.3
|
|
(90.5)
|
|
1,136.8
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
8.05
|
|
$
(0.59)
|
|
$
7.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, gains or losses on sales of
businesses, and a net tax charge related to recently enacted U.S.
tax legislation.
|
3
|
The normalized 2018
and 2017 information, as reconciled to GAAP above, is considered
relevant to aid analysis of the Company's margin and earnings
results aside from the material impact of the acquisition-related
charges, non-cash fair value adjustment, gain or loss on sales of
businesses, environmental remediation settlement, cost reduction
program, and tax charges related to recently enacted U.S. tax
legislation, as applicable.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related
and Other
Charges1
|
|
Normalized3
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
382.8
|
|
$
14.5
|
|
$
397.3
|
|
|
Industrial
|
|
68.4
|
|
3.9
|
|
72.3
|
|
|
Security
|
|
30.2
|
|
30.4
|
|
60.6
|
|
|
Segment
Profit
|
|
481.4
|
|
48.8
|
|
530.2
|
|
|
Corporate
Overhead
|
|
(52.1)
|
|
4.6
|
|
(47.5)
|
|
|
Total
|
|
$
429.3
|
|
$
53.4
|
|
$
482.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.8%
|
|
|
|
15.4%
|
|
|
Industrial
|
|
12.5%
|
|
|
|
13.2%
|
|
|
Security
|
|
6.0%
|
|
|
|
12.0%
|
|
|
Segment
Profit
|
|
13.2%
|
|
|
|
14.6%
|
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
|
|
(1.3%)
|
|
|
Total
|
|
11.8%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
and other charges relate primarily to integration and consulting
costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2017
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges2
|
|
Normalized3
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
388.4
|
|
$
13.6
|
|
$
402.0
|
|
|
Industrial
|
|
73.9
|
|
-
|
|
73.9
|
|
|
Security
|
|
55.2
|
|
1.1
|
|
56.3
|
|
|
Segment
Profit
|
|
517.5
|
|
14.7
|
|
532.2
|
|
|
Corporate
Overhead
|
|
(67.3)
|
|
0.5
|
|
(66.8)
|
|
|
Total
|
|
$
450.2
|
|
$
15.2
|
|
$
465.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.7%
|
|
|
|
16.3%
|
|
|
Industrial
|
|
15.4%
|
|
|
|
15.4%
|
|
|
Security
|
|
10.8%
|
|
|
|
11.0%
|
|
|
Segment
Profit
|
|
14.9%
|
|
|
|
15.4%
|
|
|
Corporate
Overhead
|
|
(1.9%)
|
|
|
|
(1.9%)
|
|
|
Total
|
|
13.0%
|
|
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges relate primarily to inventory step-up and integration and
consulting costs.
|
3
|
The normalized 2018
and 2017 business segment information, as reconciled to GAAP above,
is considered relevant to aid analysis of the Company's segment
profit results aside from the material impact of the
acquisition-related and other charges, as applicable.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related
and Other
Charges1
|
|
Normalized3
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,439.0
|
|
$
96.7
|
|
$
1,535.7
|
|
|
Industrial
|
|
322.8
|
|
23.0
|
|
345.8
|
|
|
Security
|
|
171.2
|
|
40.3
|
|
211.5
|
|
|
Segment
Profit
|
|
1,933.0
|
|
160.0
|
|
2,093.0
|
|
|
Corporate
Overhead
|
|
(202.8)
|
|
12.7
|
|
(190.1)
|
|
|
Total
|
|
$
1,730.2
|
|
$
172.7
|
|
$
1,902.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.7%
|
|
|
|
15.6%
|
|
|
Industrial
|
|
14.8%
|
|
|
|
15.8%
|
|
|
Security
|
|
8.6%
|
|
|
|
10.7%
|
|
|
Segment
Profit
|
|
13.8%
|
|
|
|
15.0%
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.4%)
|
|
|
Total
|
|
12.4%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
and other charges relate primarily to inventory step-up,
integration and consulting costs, and a non-cash fair value
adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2017
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges2
|
|
Normalized3
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,438.9
|
|
$
81.8
|
|
$
1,520.7
|
|
|
Industrial
|
|
345.9
|
|
-
|
|
345.9
|
|
|
Security
|
|
211.7
|
|
2.0
|
|
213.7
|
|
|
Segment
Profit
|
|
1,996.5
|
|
83.8
|
|
2,080.3
|
|
|
Corporate
Overhead
|
|
(217.4)
|
|
0.7
|
|
(216.7)
|
|
|
Total
|
|
$
1,779.1
|
|
$
84.5
|
|
$
1,863.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.9%
|
|
|
|
16.8%
|
|
|
Industrial
|
|
17.5%
|
|
|
|
17.5%
|
|
|
Security
|
|
10.9%
|
|
|
|
11.0%
|
|
|
Segment
Profit
|
|
15.4%
|
|
|
|
16.0%
|
|
|
Corporate
Overhead
|
|
(1.7%)
|
|
|
|
(1.7%)
|
|
|
Total
|
|
13.7%
|
|
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges relate primarily to inventory step-up and integration and
consulting costs.
|
3
|
The normalized 2018
and 2017 business segment information, as reconciled to GAAP above,
is considered relevant to aid analysis of the Company's segment
profit results aside from the material impact of the
acquisition-related and other charges, as applicable.
|
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SOURCE Stanley Black &
Decker